Operating in a sustainable manner
Responsbile supply chain
At Metso, we focus on our core competencies and outsource many work phases to our suppliers. The outsourced work can consist of hazardous and risky activities. Outsourcing also decreases the environmental load of Metso’s operations, but emphasizes our responsibility for the environmental efficiency of our subcontractors and suppliers. We are aware of the risks and also of the opportunities when it comes to taking sustainability issues into account in our supply chain, and we continuously strive to develop better ways to train and assess our suppliers.
Risk mapping of suppliers
To support our sustainability goals and to seize the opportunities sustainability presents, we need close interaction with our suppliers. Therefore, we focus on strengthening the collaboration with our key suppliers and encouraging them to improve their sustainability performance.
Metso’s Code of Conduct and sustainable development criteria for suppliers set the standards that we expect our suppliers to follow, and they are the starting point to any new or existing business relationships.
Building a more transparent supply chain started in 2014 when we carried out a risk mapping of sustainability-related risks within our existing suppliers. By defining the risk levels, we were able to focus on suppliers with the highest potential risks in their operations. For the risk mapping, we utilize Maplecroft’s Human Rights Dataset to identify the risk countries related to the categories Human Security, Labor Rights and Protection, Civil and Political Rights, Access to Remedy and Development. In addition, we also take into account the supplier type and spend. Based on these assessments, we decide if there is a need for third-party audits. We conduct a minimum of 15 third-party sustainability audits yearly.
In 2015 we started conducting comprehensive third-party audits concentrating completely on sustainability issues with Metso’s potential high-risk suppliers. We continued auditing our high-risks suppliers in China and India in 2016 and conducted, in total, 15 third-party audits. Metso’s third-party audits are conducted very thoroughly and cover many sustainability aspects, including HSE, product safety, labor and other human rights, and risk management.
Audit outcomes are analyzed by sustainability experts, and, if necessary, suppliers are required to implement corrective action in a given timeline. Suppliers are required to provide Metso with evidence of the implemented corrective actions and are subjected to a re-audit, if needed. The focus is to increase the sustainability knowledge of our Procurement function so that it has the ability to control the potential correctiveactions comprehensively.
Screening new suppliers is included in Procurement’s ongoing processes, and our target is to evaluate the majority of our new suppliers in higher risk countries against our sustainability criteria.
Based on the sustainability risk assessment of the new supplier, Procurement decides on the need for an in-depth audit and further actions. If the supplier is not able to fulfill our sustainability criteria and the cooperation in developing the supplier’s shortcomings is impossible, the supplier will be declined.
Statement on conflict minerals
Metso acknowledges increasing concern related to the human rights issues of sourcing ores and metals from areas of conflict. Metso is currently not affected by the conflict minerals regulations, and our products also do not affect our customers’ performance with regard to the regulations. Metso is nevertheless committed to conducting business in a sustainable manner and considering laws and regulations as only the absolute minimum. In line with our commitments, we do not knowingly source any materials that contribute to any human rights violations, and we expect the same behavior from our suppliers.
To clarify Metso’s position on conflict minerals, Metso has issued a public position statement related to conflict minerals.
In line with our commitments, we do not knowingly source any materials which contribute to any human rights violations, and we expect the same behavior from our suppliers. Metso acknowledges the increasing concern related to the human rights issues of sourcing ores and metals from conflict areas. The concern over conflict minerals has gained increased public attention following regulations published in the US and proposed in the EU.
Metso is currently not affected by the conflict minerals regulations. Apart from individual exceptions, our products do not either affect our customers’ performance with regards to the regulations.
Metso is aware of the complexity of the issue and according to our statement we, as many of our suppliers, cannot fully confirm the origin of all materials used in our products. We work continuously to better understand the issue and we are committed to helping our suppliers in determining the origin of the materials used in products sold to us.