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Driving change through responsible sourcing

Suppliers

In addition to wood and fibre, Stora Enso sources other raw materials, products, and services from approximately 25 000 suppliers and contractors globally. We strive to ensure that our suppliers and contractors meet our high standards of sustainability.
Opportunities and challenges
In 2016, 48% of Stora Enso's total variable costs consisted of purchases of materials, goods, and services, while fibre procurement accounted for 52%. The concept of responsible sourcing is relatively new in some markets, and local suppliers may not be familiar with sustainability requirements and audits. However, we must consistently respond to our stakeholder demands concerning transparency and supply chain sustainability. At the same time, 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 policies
The Stora Enso Supplier Code of Conduct (SCoC) is a binding legal document that imposes minimum sustainability requirements on suppliers. Other supporting policies include:
• Sourcing Strategy
• Practical Guide for Stora Enso suppliers
• Sourcing Guideline
• Purchasers’ Guidance
• Policy on Wood and Fibre Sourcing, and Land Management.

How we work
The materials and products we purchase include wood and fibre-based materials such as 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 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 engage with suppliers to help them improve their sustainability performance. This may involve on-site visits, detailed supplier assessments or in-depth training sessions, depending on the supplier's location and product category.
Any non-conformances with our SCoC identified during audits are followed up with corrective action plans. Relationships are terminated when suppliers are not willing to improve their performance.
 

 
Progress
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 94% in Q3/2017, with the target to achieve 95% in 2017.