Valmet’s new site supplier sustainability auditing process piloted in Kemi

How to make sure that subcontractors comply with Valmet's Sustainable supply chain policy and with all the local legal requirements at the project sites? Valmet has  comprehensive processes to evaluate and manage sustainability risks and compliance of its suppliers' operations, and sustainability audits are one part of the process.

The latest addition to evaluate and manage suppliers operating at Valmet's customer sites is a so called site supplier sustainability auditing process. It was piloted at Metsä Group's Kemi bioproduct mill project site in Finland in 2022. Valmet is delivering all main process islands and automation systems for Metsä Group's new Kemi bioproduct mill. The new totally fossil fuel free mill is scheduled to start up in the third quarter 2023. The new mill will replace the current pulp mill in Kemi, which has reached the end of its lifespan.

“We are continuously seeking ways to improve our auditing processes, and this site supplier specific auditing process is a great example of that. With this specific process, we increase our visibility beyond our Tier 1 suppliers. It enables us to mitigate our supply chain risks better and ensures the compliance with future due diligence regulation,” says Kaisu Kiiskilä from Valmet's Sustainability team.

"The scope of the supplier sustainability audit is fully based on Valmet’s Sustainable supply chain policy. In Kemi we focused especially on legal compliance but the process also covers other areas, such as business ethics, human rights and labor rights, occupational health and safety, and environmental management. We also discussed and reviewed good practices and development ideas. This was a good opportunity for us at Valmet and Metsä Group to get feedback about our operations and get continuous improvement ideas," says Suvi Reinikka, Director, Projects, Wood and Pulp Handling business unit at Valmet.

"There were good findings, which enable systematic development. There is a need for that," says HR Manager Miko Kemiläinen from Metsä Group.

"In Kemi we focused especially on legal compliance but the process also covers other areas, such as business ethics, human rights and labor rights, occupational health and safety, and environmental management," says Suvi Reinikka from Valmet.

Positive spirit

The site supplier sustainability audit covered six subcontractors, of which two were tier 2 suppliers, i.e. subcontractors' subcontractors. Also, representatives from Valmet and Metsä Group participated in the audit.

The audit week at the site was preceded by planning and meetings with selected subcontractors' management representatives, as part of the audit process.

Also Jatta Haapamäki from Valmet’s procurement participated in the audit. "I visited the current mill in Kemi earlier, but still the size of this new site is astonishing. The audit went well, the spirit was positive, and information was openly shared. We identified some findings resulting into corrective actions and our subcontractors took them as good tools to develop their operations further. We also heard some best practices which could be of use also at other sites," says Jatta Haapamäki, Director of the Direct Category Families at Valmet.

"This was my first audit at the site. It was an eye-opening experience – now I see better how these kinds of audits can be useful for all parties. The schedule was quite tight, but we managed to keep it. In general, there was a good spirit and good cooperation," says Hannu Niemi, Category Purchasing Manager, Pulp and Energy business line at Valmet.  

The work continues

"We got a comprehensive summary of the findings from our independent 3rd party auditing partner. Next the people responsible will discuss and review the findings with subcontractors and agree on the corrective actions. We will also discuss if there’s something that we could take as a learning to Valmet," Suvi Reinikka concludes.