In addition to wood and fibre, Stora Enso sources other raw materials, products, and services from over 20 000 suppliers and contractors globally. We have strict sustainability requirements for all of them.
Stora Enso’s Key Performance Indicator (KPI) for responsible sourcing measures the proportion of total supplier spend (including materials, goods, and services) covered by Stora Enso’s Supplier Code of Conduct. This coverage was 96% at the end of Q3/2019, achieving our target to maintain the high coverage level of 95%.
In 2018, we began using sustainability criteria in the tendering phase of our sourcing process and collecting data on supplier performance. Suppliers now need to respond to a set of questions about their financial stability, accident rates, and carbon dioxide (CO2) emissions, which contributes to our ambitious science-based targets. These criteria are part of every tender, regardless of previous contracts with the same supplier.
In 2018, 50% of Stora Enso's total variable costs consisted of purchases of materials, goods, and services, while fibre procurement accounted for 50%. Materials and products sourced by Stora Enso include wood and fibre-based materials such as pulp and paper for recycling (PfR), chemicals, fillers, energy, fuels, and spare parts, as well as maintenance, logistics, and IT services. To ensure the responsible sourcing of these materials, potential suppliers go through a pre-qualification process before being considered for a contract. We also offer training to our purchasers.
In addition to enforcing our SCoC, we actively help our suppliers improve their sustainability performance. Our topic-based “deep dives” or thorough reviews of specific supply chains, for example, help us better understand the operations, opportunities, and challenges of a supply chain related to a specific topic or category.
Based on a pre-evaluation of a supplier’s social and environmental risk profile, they may be selected for a third-party sustainability audit, conducted together with purchaser. Any suspected SCoC non-conformances brought to our attention are investigated and followed up. Similarly, any non-conformances identified during audits are followed up with supplier meetings where the findings are discussed and corrective action plans devised. Relationships are terminated when suppliers are not willing to improve their performance.
The Stora Enso Supplier Code of Conduct (SCoC) is a binding legal document that imposes minimum sustainability requirements on suppliers. Other supporting policies include:
We consistently respond to the demands of our stakeholders concerning transparency and the sustainability performance of our suppliers. Similarly, we are looking for ways to address the growing stakeholder demand for less plastic when sourcing materials. We believe that our sustainability demands not only encourage suppliers to improve their businesses, but also help to promote more sustainable sourcing around the world.
Our commitment to respect human rights covers all our operations, including our employees, contractors, suppliers, and surrounding communities.