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Case valmet ungc nordic network 2_12_2015_suppliers and partners

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Case valmet ungc nordic network 2_12_2015_suppliers and partners

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Presentation by Laura Puustjärvi, Head of Sustainabilty at Valmet, at UN Global Compact Nordic Network meeting in Helsinki on December 2, 2015: Compliance of supply chain - how to deal with risks: Case Valmet

Presentation by Laura Puustjärvi, Head of Sustainabilty at Valmet, at UN Global Compact Nordic Network meeting in Helsinki on December 2, 2015: Compliance of supply chain - how to deal with risks: Case Valmet

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Case valmet ungc nordic network 2_12_2015_suppliers and partners

  1. 1. Case Valmet Laura Puustjärvi Head of Sustainability Valmet Compliance of supply chain – how to deal with risks
  2. 2. 2 December, 2015 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
  3. 3. 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 December, 2015 UN Global Compact Nordic Network: Case Valmet3
  4. 4. Sustainable supply chain road map 2014-2016 Enhancing supply chain management and transparency of our value chain 2 December, 2015 UN Global Compact Nordic Network: Case Valmet4 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.
  5. 5. 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 December, 2015 UN Global Compact Nordic Network: Case Valmet5
  6. 6. 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 December, 2015 UN Global Compact Nordic Network: Case Valmet6
  7. 7. 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 2014-20152 December, 2015 UN Global Compact Nordic Network: Case Valmet7
  8. 8. 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: Maplecroft2 December, 2015 UN Global Compact Nordic Network: Case Valmet8
  9. 9.  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 9 Sustainable supply chain program integrated into procurement processes 2 December, 2015 UN Global Compact Nordic Network: Case Valmet
  10. 10. Sustainable supply chain program in numbers Latest developments in 2015 11 000Sustainable 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 41Supplier sustainability audits executed to top spend & high risk country suppliers Valmet partners with certified third party auditor company. 2 December, 201510 UN Global Compact Nordic Network: Case Valmet

Editor's Notes

  • -KPI: comprehesiveness % implementation coverage of global processes
  • -Aikaisemmin vastuullisuuskriteeristö toimittajille käytössä – politiikka voimakkaampi työkalu: johdon ja hallituksen hyväksymä
  • Potentiaaliset riskit niillä alueilla, joilta Valmet tekee suurimman osan ostoistaan, liittyvät järjestäytymisvapauteen, mahdollisen pakkotyövoiman käyttöön sekä työterveyteen ja -turvallisuuteen
  • Esimerkit tasoihin:
    5: konfliktimineraaleiksi luokiteltuja

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