Whilst wood and fibre are our main raw materials, we also purchase chemicals and other materials, machinery, equipment and services in a centralised manner.
Metsä Board, as part of Metsä Group, focuses on working with ethical, reliable and environmentally sustainable suppliers, whose responsibility and quality will facilitate long-term cooperation and responsible profitability. We strive to develop cooperation based on trust with our selected key suppliers.
We see no scope for compromise on responsible purchasing and sustainability throughout our supply chains. This enables us to guarantee long-term success both for us and for our business partners, helping us to be a profitable and responsible business operator.
Efficient supply chain management and on-time deliveries are key elements in our business operations. For this reason, we ensure reliable, safe and efficient logistics. Efficiency is attained by maximising delivery volumes using optimised modal selection, return load utilisation and by minimising ‘empty’ kilometres. As our mills are located close to our main raw materials, we are always able to optimise our transport routes.
All our wood purchases come from Northern Europe, and our target is to use local suppliers whenever feasible.
Supplier Code of Conduct included in contracts
Metsä Group launched a Supplier Code of Conduct in 2011 to ensure that the Group only cooperates with suppliers who act responsibly. Metsä Group expects all of its suppliers to commit themselves to responsibility and sustainability, to high standards of business ethics, and good working practices.
Our Supplier Code of Conduct emphasises a respect for human rights and the need for a safe working environment, as well as actions against corruption and bribery. For forced or child labour we have a zero-tolerance.
In 2018, suppliers that committed to our Supplier Code of Conduct covered 95% of our total purchasing spend. The Code of Conduct is nowadays included in all our new and renewed contracts, and the key personnel in our purchasing department have passed specific training on our purchasing policy including ethical and environmental aspects.
In addition, responsibility of our wood suppliers is always assured through the PEFC™ and FSC® Chain of Custody systems that cover all our operations. Chain of custody systems safeguard that the wood does not originate from illegally harvested forests and that the rights of the supply chain workers and indigenous people are respected.
Supplier risk assessment and auditing process
As a member of Metsä Group, we continuously develop a common monitoring process for our suppliers, conduct risk assessments, and prepare audit plans for each of our purchasing categories. Audits are conducted either by Metsä Group's own personnel or by a third-party. One of the most important issues is to ensure is that there are no incidents of child, forced or compulsory labour in our suppliers' operations.
Each supplier is subject to an assessment of the country risk, in addition to which the supplier company's background in terms of trade sanctions, money laundering, corruption, human rights violations and other key risks is checked when necessary. Metsä Board also adopted a corresponding process applicable to customers in 2018.
In 2018, Metsä Board commenced a systematic review to ensure the responsibility of raw material suppliers during the review period. The review includes a self-evaluation form addressed to the suppliers, an assessment of the suppliers from the perspective of sustainability and further measures as necessary. The company has previously conducted an equivalent review of its major logistics suppliers.
Every year, Metsä Group and external parties audit some of the suppliers. These audits also include questions pertaining to the environment and social responsibility. In 2018, Metsä Group and external party conducted 27 and 15 on-site audits, respectively, at Metsä Board's suppliers.
All our mills comply with existing chemical legislation when procuring and utilising chemicals in our production processes. We hold regular discussions with our external material suppliers to verify their REACH pre-registration and registration status. We maintain a detailed database on the most important chemicals used in our production processes, containing key environmental, health and safety information on each of the chemicals concerned.