Responsible Procurement

We expect our suppliers to follow Metso Supplier Code of Conduct. This is the starting point of any new or existing business relationship.

We want to ensure that our suppliers comply with our sustainability and quality requirements. Our supply chain management monitors that the standards are followed. To ensure quality and sustainability in our supply chain, we have developed processes covering the whole network of our suppliers.

Supplier Code of Conduct

Metso aims to work with suppliers who are socially, environmentally and economically responsible. The Metso Supplier Code of Conduct sets the standards that we expect our suppliers to follow and that sets the starting point for any new or existing business relationship.

The Supplier Code covers areas such as health and safety, child and forced labor, human rights, anti-corruption, compliance with laws and regulations, environment and climate change – and more. Metso expects its suppliers to make every effort to comply with this Supplier Code when dealing with Metso.

Familiarize yourself with the Metso Supplier Code of Conduct below:

 

Roadmap

Responsible Procurement roadmap outlines our strategic plan, including long-term targets and actions, for supplier sustainability development. One focus area in the roadmap is related to the development of our suppliers’ sustainability performance. It is a priority to us, but also stakeholders like customers and investors are increasingly interested in how companies assess and audit suppliers in terms of sustainability.

In addition, the roadmap is aligned with Metso’s Climate Program that includes a supplier engagement target. We work closely with our suppliers to develop their sustainability practices, including setting a CO2 emissions target. Our target is to educate our suppliers to calculate their emissions and set science-based targets for their carbon dioxide emissions.

 

Targets

2022

To ensure that suppliers are aware of and follow our requirements, we aim to have our Supplier Code of Conduct signed by 90% of suppliers in terms of spend by 2022.

2022

New vendors are assessed already in the supplier selection phase. We aim to assess 95% of new suppliers in terms of spend by 2022 in higher risk areas, such as India, China, Turkey, Brazil, South Africa and Mexico.

2025

As part of Metso’s science-based targets, our aim is for 30% of suppliers in terms of spend to have set a CO2 emissions target by 2025 (linked to the Metso Climate program and a supplier engagement target).

Supplier assessment and audits

One way to ensure compliance with the Metso Supplier Code of Conduct is to conduct sustainability audits with our suppliers. We have developed an annual auditing program, where we identify the suppliers to be audited based on a supplier sustainability risk assessment.

Based on a risk mapping, we annually select suppliers for an on-site audit. Metso conducts both, third-party supplier sustainability audits and audits lead by Metso Procurement and Supplier Quality. Metso’s third-party audits cover many aspects of sustainability, including HSE, product safety, labor and other human rights, and risk management.

Prior to the audit, the suppliers are asked to complete an audit sustainability self-assessment in our Procurement online portal. To improve the sustainability performance of our suppliers, we agree on corrective action plans together with the supplier after each sustainability audit.

Read more about Supplier assessment and audits

Follow-up and monitoring

We aim to improve the sustainability performance of our suppliers through supplier audits and by monitoring the corrective actions. In 2019, we conducted 123 supplier sustainability audits. 82 percent of the corrective actions from year 2019 had been implemented.

Procurement and Supplier Quality follows up if the suppliers implement the corrective actions in the agreed time schedule. Suppliers are required to provide evidence of the corrective actions that have been implemented and are subject to a re-audit, where necessary.

We developed a supplier sustainability scorecard that improves visibility on our suppliers' sustainability performance and enables easy follow-up of improvement actions. Among others, it includes sustainability supplier audit scores, number of open and closed corrective actions and approved supplier profiles.

Read more about monitoring supplier performance

Supplier sustainability development

In addition to auditing, we use other means to engage with the supplier and support them in improving their sustainability performance. For instance, we organized a supplier sustainability day that included a training related to human and labor rights, health and safety, and environmental management. Trough active communication, training events and process improvement, we help the suppliers in their development towards more sustainable operations.

To provide sustainability training for a wider range of suppliers in our supply base, we launched a supplier sustainability e-learning course that informs about Metso supplier sustainability expectations, Metso SCoC and sustainability during the supplier onboarding process.

It is important to support the supplier network, and we work closely with our suppliers to develop their sustainability practices and processes.

Read more about our supplier sustainability day