We work with nearly 30 000 suppliers of materials, goods, and services, and have a responsibility to ensure they are committed to high sustainability standards.
Opportunities and challenges
About 50% of Stora Enso’s total variable costs consist of a wide range of raw materials, products, and services, while wood supply represents the other half. In some areas, where the concept of responsible sourcing is a relatively recent development, we need to introduce sustainability requirements and audits to suppliers who might not be familiar with them. At the same time, we must consistently respond to stakeholder demands concerning transparency along supply chains. In the long run, this work will build up suppliers’ capacity and help create a larger pool of sustainable suppliers.
How we work
The materials and products we purchase include fibre-based materials such as wood, pulp, and paper for recycling (PfR), as well as chemicals, fillers, energy, fuels, spare parts, and maintenance, logistics, and IT services. To ensure the responsible sourcing of these materials, potential suppliers must go through a pre-qualification process before being considered for a contract. We also offer comprehensive training for our purchasers.
In addition to enforcing our SCoC, we work with our suppliers to help them address sustainability topics and to correct any findings discovered during supplier assessments or audits. If a supplier is not willing to improve their performance, the relationship will be terminated.
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. By the end of Q3 2016, this coverage was 92%. In 2016 this indicator will also cover Wood Supply units, and the target is to reach 90% total coverage by the end of 2016.
Our purchasers were extensively trained during 2015 on a variety of topics related to sustainability. We also introduced an improved pre-qualifying process for potential suppliers.