Case valmet ungc nordic network 2_12_2015_suppliers and partners
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Transcript of Case valmet ungc nordic network 2_12_2015_suppliers and partners
Case Valmet
Laura PuustjärviHead of SustainabilityValmet
Compliance of supply chain – how to deal with risks
2 May 2023 UN Global Compact Nordic Network: Case Valmet2
Valmet’s sustainability agenda
Sustainable supply chain
Responsible operations (HSE)
People and performance
Corporate citizenship
Cost-effective sustainable solutions
We focus on five core areas
2 May 2023 UN Global Compact Nordic Network: Case Valmet3
Global supplier base
Valmet has an extensive supply chain including around 9000 active suppliers in over 50 countries
Over half of our purchases come from Finland and Sweden when measured by supplier spend
Purchases mainly comprise metals-based products and electronic components and services from suppliers in the pulp, paper and energy industries
2 May 2023 UN Global Compact Nordic Network: Case Valmet4
Sustainable supply chain road map 2014-2016Enhancing supply chain management and transparency of our value chain
1. Sustainable Supply Chain Policy: We expect our suppliers to comply with our Sustainable Supply Chain Policy and it is incorporated in all contracts and purchase orders
2. Supplier risk assessment: We have integrated supplier sustainability risk assessment into procurement processes
3. Supplier sustainability self-assessments and audits: We request supplier self-assessments and make audits
4. Training: We have increased the awareness and competences of sustainable procurement practices in the procurement organization
5. Conflict-free minerals and compliance with chemical legislation: We strive to ensure that the materials and components we use do not include legally restricted chemicals or minerals from conflict areas.
2 May 2023 UN Global Compact Nordic Network: Case Valmet5
Requirements for suppliers Target to ensure comprehesive and documented due diligence process
In 2014 Valmet launched Sustainable Supply Chain Policy applicable to all suppliers
Policy is incorporated into all contracts and purchase orders, and communicated to all active suppliers
The policy addresses Valmet´s requirements for its suppliers regarding 1) business ethics, 2) compliance, 3) human rights and labor rights, 4) occupational health and safety, 5) environmental management and 6) product safety
We expect all our suppliers to comply with the principles defined in the policy -it is the starting point for all business relationships with Valmet
The policy acts as a basis for our entire supplier program– Supplier risk evaluations– Self-assessments– Sustainability audits
2 May 2023 UN Global Compact Nordic Network: Case Valmet6
Supplier requirements are founded on selected international guidelines and principles
UN Global Compact (UNGC)
UN Universal Declaration of Human Rights
UN Guidelines for Business and Human Rights
OECD Guidelines for Multinational Enterprises
ILO´s Declaration on Fundamental Principles and Rights at Work
ISO 14001: Standard for Environmental Management Systems
OHSAS 18001: Occupational Health and Safety Assessment Series
2 May 2023 UN Global Compact Nordic Network: Case Valmet7
Potential sustainability risks in supply chain
Business ethics and compliance – Fair competition, strength of law enforcement, corruption and bribery, intellectual
property rights and company assets, transparency and openness
Human rights and labor rights – Forced labor, child labor, freedom of association, equal opportunities and treatment
Occupational health and safety Environmental management
– Hazardous chemicals and waste management, environmental impacts and risks
Product safety– Radiation risks, restricted materials
Source: Maplecroft risk indices 2014-2015
2 May 2023 UN Global Compact Nordic Network: Case Valmet8
Supplier sustainability risk assessment
Supplier assessment by country of purchase and by the purchasing category into five risk categories
Aim is to assess potential negative indirect impacts and risks related to human rights, labor practices, ethical business practices, environmental performance and health and safety
Source: Maplecroft
2 May 2023 UN Global Compact Nordic Network: Case Valmet
Global sustainability pool in procurement
Sustainable supply chain policy is part of Valmet´s General Purchasing Conditions (GPC)
Policy always attached to contracts
Sustainability risk assessment and self-assessment activities integrated into global supplier management tool
Valmet-specific sustainability audit protocol in place
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Sustainable supply chain program integrated into procurement processes
2 May 2023 UN Global Compact Nordic Network: Case Valmet10
Sustainable supply chain program in numbers Latest developments in 2015
11 000 Sustainable Supply Chain policies send out to suppliers globally to inform of Valmet´s sustainability requirements
370Valmet procurement professionals received sustainability training in 2015
100% Of global supplier base assessed based on sustainability risk evaluation tool
41 Supplier sustainability audits executed to top spend & high risk country suppliers Valmet partners with certified third party auditor company.