BUSINESS OPERATIONS AND VALUE CREATION
FINANCIAL DEVELOPMENT
SUSTAINABILITY
GOVERNANCE
We develop the sustainability of our supply chain and products SUSTAINABLE PRODUCTS
The sustainability of packaging is the sum of many things. This is why we invest in traceable, fossil free raw materials, a sustainable supply chain, and the holistic assessment of the environmental impact our paperboards.
Our 2030 target:
WE ARE KEEPING AN INCREASINGLY CLOSE EYE ON THE SUSTAINABILITY OF OUR SUPPLIERS %
A SIZEABLE SHARE OF OUR RAW MATERIALS ARE ALREADY TRACEABLE AND FOSSIL FREE %
100
100
80 90
60 40
80
20 0
19 20 21
TARGET
Suppliers’ commitment to the Supplier Code of Conduct, %
19 20 21
TARGET
Supplier background check passed, %
19 20 21
70
TARGET
Supplier sustainability assessment passed, %
19 20 21
TARGET
Traceability of raw materials, share of total purchases (in euros).,%
19 20 21
TARGET
Fossil free raw materials and packaging materials in dry tonnes, %
* The calculation method has been changed and the figures have been corrected retrospectively. Percentages now include purchases where suppliers have passed a background check or sustainability assessment. Previously, we reported the proportion of all purchases for which suppliers have been made a background check or sustainability assessment.
It is important for us that our customers, suppliers and other partners also operate sustainably. In ensuring sustainability, we follow due diligence as part of the Know Your Business Partner process. The background checks included in the process provide us with a better understanding of who we are working with and thereby allow us to reduce the risk of participating in illegal activities. The checks cover the background of a customer, supplier, or other partner in terms of trade sanctions, money laundering, corruption, human rights violations, and other key risks. We use local suppliers whenever possible. In 2021, 78% of all our purchases (2020: 75%) originated from Finland or Sweden, in which our production units are located.
Our sourcing process includes a number of risk management tools: •
•
•
• • •
The minimum requirements for our suppliers are detailed in our Supplier Code of Conduct. They constitute a part of our purchasing agreements, and our target is for all our suppliers to commit to the Supplier Code of Conduct. The agreements may furthermore contain other sustainability requirements. In our supplier selection process, we assess the sustainability risks of all our suppliers with the help of country risk classifications. We also analyse category-specific risks. The majority of our suppliers are subject to the Know Your Business Partner background check, in addition to which key suppliers and potentially risky suppliers are subject to a separate sustainability assessment. Metsä Group or an external party audits some of the suppliers. We investigate the origin of our raw materials and packaging materials with product safety questionnaires. We monitor the development of sustainability in terms of the suppliers for whom we have recommended development measures.
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