Traceable wood from sustainably managed forests

Metsä Board’s home country, Finland, is the most forested country in Europe. Forests cover approximately 75% of Finland's land area and over the past 40 years the growing stock of the forests has increased by more than 40%. The share of strictly protected forests accounts for 9% of Finland’s total forest area, which is the highest share in the whole Europe.

We procure around 80% of our wood raw material from Finland and Sweden, both of which have a long tradition in forest management, the development of forest and environmental related legislation and forest protection certification systems. The biodiversity of forests and endangered species are both protected by legislation and encouraged through forest certification schemes.

The four species we use for our paperboard production include pine, spruce, birch and aspen. In total, our supply of wood amounts to around eight million cubic meters a year.

We have the wood raw material supply chain in own hands

Wood is the starting point for making pulp and paperboard, so forests are of vital importance to us. Metsä Board procures all its wood through the operations of Metsä Forest. The pulp we use is manufactured either in Metsä Board’s own pulp mills or in the pulp mills of our associated company Metsä Fibre. All these companies are members of Metsä Group, which in turn belongs to over 100,000 Finnish forest owners.

Metsä Group has historically worked closely with forest owners and continues to offer a range of innovative forestry services that enhance the value of their forest assets. Sustainable forestry means forest renewal. Therefore, for each tree harvested we plant four new seedlings – it’s in all of our interests to ensure that forests are regenerated.

In recognition for its sustainable forest management, Metsä Board has achieved a Leadership status in the CDP’s Forest programme for three years in a row since 2015.

Forest certification schemes are voluntary systems which support the well-being of forests and confirm the legality of the origin of the wood. Forest certification is based on inspections carried out by an independent third party. The certification process has two main parts: forest certification and certification of the chain of custody. Forest certification helps to demonstrate to the buyers of wood and paper products that their purchasing decision supports sustainable forestry.

Metsä Group supports forest certification schemes that are suitable for local conditions and are inspected by a reliable and independent third party. We also actively promote forest certification initiatives in all of the regions where we procure wood. The forest areas owned or leased by the Group’s companies are all covered by sustainable forest management certificates.

Tracing system and audits secure responsible wood supply

Metsä Group’s internal auditing procedures and wood origin tracing system control the actions of the wood suppliers and harvesting contractors. The auditing covers a wide range of sustainability issues from the preservation of valuable natural features and the legality of the origin of the wood to social issues such as preserving the rights of indigenous people and safety at work. This work enables us to identify the legal and sustainable origin of the wood, and to officially define the share of certified wood in the wood raw material used in our mills.

Advanced technology facilitates the verification of the origin of wood. Modern information systems and digital maps are used during wood harvesting, enabling the whole wood transportation chain to be traced from the stump to the mill.

On top of our internal audits, the preservation of valuable natural features during forestry operations are also evaluated by forest authorities, external third-party management system audits and forest certification audits.

We know the origins of all the wood we use, whether it comes from certified forests or forests that are otherwise controlled. This ensures wood’s legality and minimises the risk of unacceptable practices along the supply chain. Our chain of custody certificates and wood origin tracing system document the actions of the wood supplier or harvesting contractor, together with the origin of the wood and details of nature management methods.

Our wood suppliers and contractors have also committed themselves to our sustainability principles, which are included in our contracts with them. These commitments extend throughout the supply chain, including all possible sub-suppliers and subcontractors..

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 2017, suppliers that committed to our Supplier Code of Conduct covered 89% 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.

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 made both on-site and off-site, and they are conducted 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.

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.

To monitor all other purchases, we have developed a new tool to systematically conduct sustainability questionnaires with our suppliers and rate them based on criteria such as sustainability management, risk management, and social and environmental responsibility. If a supplier’s operations do not meet our sustainability requirements, we prepare recommendations for corrective actions and monitor their progress.

As an example of this, Metsä Group conducted a large-scale sustainability questionnaire with its main logistics service providers during 2016–2017 to ensure the sustainability of our main logistics flows. By the end of 2017, all 481 main logistics service providers, equalling 90% of Metsä Group’s total annual spend on logistics services, fulfilled the required sustainability criteria.

A corresponding sustainability questionnaire has been addressed to our key raw material providers, and we constantly work on the process to evaluate the sustainability performance of our 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.