Mar 2, 2020 Corporate blog

Supplier sustainability scorecard to monitor supplier performance

Harald Huppe
Harald Huppe
Senior Manager, Responsible Supply Chain
Supplier auditing and tracking corrective action points are key elements for a sustainable supply chain. We developed a supplier sustainability scorecard that improves visibility on our suppliers' sustainability performance and enables easy follow-up of improvement actions.
Metso employee smiling at a quarry.

Metso Supplier Code of Conduct

Our Metso Supplier Code of Conduct sets the standards that we expect our suppliers to follow, including sustainability standards, and it is the starting point for any new or existing business relationship. Metso Supplier Code of Conduct covers areas such as health and safety, child and forced labor, human rights, anti-corruption, compliance with laws and regulations, environment and climate change. We expect our suppliers to make every effort to always comply with it when dealing with Metso.

Supplier sustainability scorecard - Integrating sustainability into decision making

When working with our suppliers, it's important to understand whether they

  • comply with Metso supplier code of conduct,
  • have been assessed in relation to sustainability and
  • implemented necessary corrective actions.

Sustainability information is an essential part of supplier performance evaluation, right next to financials, delivery and quality.

The data presented in the supplier sustainability scorecard is consolidated in monthly progress reports from across the businesses. Among others, it includes sustainability supplier audit scores, number of open and closed corrective actions and approved supplier profiles. The scorecard allows monitoring suppliers' sustainability performance and the progress is reviewed against corrective action plans that were developed together with the supplier. If a supplier makes little or no progress in their sustainability management practices, we can act by conducting a follow-up audit or agree on other sustainability development measures. The scorecard enables us to identify suppliers that perform better related to sustainability and that show stronger commitment to improve their operations.

Below are some examples of data presented in the scorecard: 1) Suppliers' score based on self assessement (left) and audit (right), 2) number of executed internal audits versus target (audits done by Metso employees) and 3) number of closed and open action points. Suppliers are assigned with action points based on audits. 

Example of supplier sustainability scores displayed in a scorercard.
Example of supplier sustainability scorecard displaying internal audits.
Screenshot of supplier sustainability scorecard displaying action points.

Supplier sustainability development

We want to ensure that our suppliers continue to develop their sustainability practices and performance. This extends also to emissions: we have set a target that 30% of direct suppliers in terms of spend set their CO2 emission target by 2025.

It is important to support the supplier network, and we work closely with our suppliers to develop their sustainability practices and processes. For example, in 2019, we organized a supplier sustainability day in India to improve collaboration and competences, to share good practices and help suppliers understand Metso’s expectations for sustainability. In total, we conducted 123 supplier sustainability audits and 648 risks were identified in 2019. 82 percent of the corrective actions had been implemented.

Read more about supplier sustainability from these blog posts