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 our suppliers.
Opportunities and challenges
As a global business with an extensive supplier base
worldwide, Stora Enso can use its purchasing power to drive
its suppliers towards more sustainable operations and to help create a larger global pool of sustainable suppliers. On the other hand, developing a full understanding of
a supplier’s sustainability performance remains a challenge,
even with very strict supply chain processes in place.
We consistently respond to our stakeholders’
demands concerning transparency and the sustainability
performance of our suppliers. Imposing sustainability
requirements on our direct suppliers encourages them to
develop their capacity to meet such new demands and
improve their performance.
How we work
In 2017, 49% of Stora Enso's total variable costs consisted of purchases of materials, goods, and services, while fibre procurement accounted for 51%. 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. In 2017, we introduced Safety Trail, an online e-learning to educate our suppliers in proactive safety management, and initiated topic-based “deep dives” or thorough reviews of specific supply chains.
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 the 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.
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 95% at the end of 2017, achieving our target. The target for 2018 is planned to be communicated in the Q1/2018 Interim Report.