Sustainable supply chain

Valmet has systematically developed and integrated sustainability into its supply chain processes. We engage our suppliers to continuously develop their sustainability performance to ensure transparent and sustainable operations. We strive to develop the transparency and traceability of our entire value chain  from sourcing of raw materials to recycling of our products. 

Valmet's suppliers have different sustainability risk levels, derived from the supplier’s country of origin or purchasing category. For identifying, assessing, and managing various sustainability risks, Valmet has a global supplier sustainability management process.

Valmet's Supplier Code of Conduct sets the basic themes and requirements for all steps in the process, covering themes such as general requirements, sustainability due diligence, human rights, climate and environment, business ethics, intellectual property, information and cyber security, and access to remedy.

We expect all our suppliers to comply with the principles defined in the Code of Conduct and strive towards more sustainable future. The Supplier Code of Conduct also acts as a basis for supplier evaluations, self-assessments and sustainability audits.  

Respect for human and labor rights is central to Valmet’s sustainability due diligence. We focus especially on the human rights risks most relevant to our operations and value chain, such as the conditions of migrant workers, forced and child labor, discrimination, access to grievance and remedy and the health and safety of workers throughout our supply chain.

We identify and address these risks through our supplier management processes, with enhanced due diligence and engagement for suppliers we assess as higher risk. Our approach is guided by our Human Rights Policy Statement, which is aligned with the UN Guiding Principles on Business and Human Rights and the ILO’s core labor standards.

Any concerns related to human rights in our operations can be raised by employees, suppliers and other stakeholders through TrustLine, Valmet’s confidential reporting channel.

Valmet’s supply chain is essential to turning our technologies into reality. By sourcing everything from steel and machinery to site services, we support the delivery of pulp, paper, energy, automation, and flow control solutions worldwide. Supplier collaboration and material choices are central to our decarbonization journey.

As part of our Climate Transition Plan, we have set ambitious targets that guide our actions across our operations and value chain, reflecting our ambition to decarbonize through collaboration. We are focusing on centralizing spend with suppliers that have similar climate ambitions, embedding sustainability commitments throughout the supply chain. Our target is for 50% of spend to be with suppliers with aligned climate targets by 2030. 

Valmet's technologies depend on a steady supply of raw materials from a global base of suppliers. Enhancing responsible sourcing helps us build a more transparent and sustainable supply chain while simultaneously supporting us manage exposure to supply disruptions.

Responsible sourcing is guided by relevant regulations originating from the EU and our global operating environment. Compliance with regulations such as the EUDR, CBAM, REACH, PPWR, POP, PFAS and Conflict Minerals Regulation is at the core of our business.

We work to secure the continuity of supply while ensuring purchased materials are sourced responsibly. Regulatory compliance is supported by screening our purchases and conducting material analysis, making it possible for Valmet to emphasize suppliers who can demonstrate traceability and aligned responsibility practices in their operations.

Engaging suppliers

Valmet works with a diverse base of strategically important suppliers worldwide, some of which are identified as possible sources of sustainability risk based on their country of origin and purchasing category. To further strengthen cooperation with suppliers on sustainability, Valmet runs a Sustainability Engagement Program.

The program supports and monitors suppliers’ performance and provides hands-on, concrete tools and training to help them take the most critical steps in developing their sustainability practices. It is based on the principles of Valmet’s Supplier Code of Conduct and is an integral part of our Supplier Relationship Management (SRM) approach, used to evaluate, manage, and improve suppliers’ sustainability in a globally aligned manner. 

All Valmet suppliers are provided access to a competence-building library with concrete development tools, several e-learning courses, and practical handbooks. Valmet also has a Climate e-learning course for suppliers to specifically address emissions, and how to reduce them.