Business Integrity

Business integrity

At Metso, we conduct our business with integrity and in compliance with all applicable laws and regulations of each country we operate in, and we expect the same from our suppliers. We expect our suppliers to do business ethically as stated in our Code of Conduct. Together we demonstrate integrity in our respective businesses.

Transparent supplier requirements

Transparent and systematic supplier requirements form the basis for our supplier selection and performance evaluation processes.  

The Metso Supplier Code of Conduct defines our minimum requirements concerning social, environmental and economic responsibility that apply to all our suppliers and third party intermediaries (e.g. agents, joint venture partners and distributors and other business partners acting on behalf of Metso). We additionally expect our suppliers to advance the same requirements in their own supply chains. We revised our Supplier Code of Conduct in the end of 2024 by strengthening the message in the health and safety, child labor, and non-discrimination sections of Metso’s Human Rights Policy. NIS2 (Network and Information Security Directive) cyber security requirements were also added with this update. 

In 2024, 93% of Metso’s total spend (including both direct and indirect materials and services) was qualified under the Metso Supplier Code of Conduct. 

All contractors working on our premises must be assessed on their ability to conduct their activities in accordance with Metso safety requirements, including the relevant Metso directives based on their activities. 

Metso’s direct suppliers are evaluated for their performance in environmental issues, human rights and local community involvement through supplier sustainability audits. Our supplier requirements are incorporated into our contractual obligations. Breaching Metso’s requirements or repeated low performance can lead to termination of the supplier relationship.

Responsible Procurement

Regulatory compliance in supply chain

Metso is a multi-national company that operates in more than 50 countries. Regulatory compliance in the countries where Metso operates is at the core of our business. Headquartered in Espoo, Finland, majority of supply chain sustainability regulations that Metso follows originate from the EU. USA, Canada, UK, China, Australia, form another strong basis for regulations in scope for Metso to comply with.

The regulations in Metso’s scope require

  • transparent reporting practices on sustainability topics in supply chain CSRD;
  • preventing deforestation occurrence in the most vulnerable regions in the world and addressing human rights issues of health and safety, child labour, and non-discrimination in supply chain EUDR;
  • tracking of harmful substances in the supply chain REACH, RoHS, PFAS, POPs;
  • reducing packaging waste in logistics operations PPWR;
  • limitation of CO2 emissions in supply chain and beyond CBAM.
Supplier regulations
Harmful substances in supply chain

Harmful substances in supply chain

Metso works actively to eliminate harmful substances from our products and to comply with regulations such as REACH, RoHS, ODS, PFAS, F-GAS and more. All Metso suppliers are required to follow the regulatory requirements regarding chemical substances. Supplier is expected to proactively work together with Metso in phasing out substances of concern wherever possible to reduce our dependency on these materials. Metso recommends suppliers to check own products against Heavy Equipment Declarable Substance List (HEDSL) maintained by Association of Equipment Manufacturers (AEM).

Access supply chain sustainability regulations page here and Association of Equipment Manufacturers – HEDSL list here.


 

 

 

 

Packaging in logistics operations

As a sustainable partner for our customers, Metso fully supports the European Union’s aim of promoting packaging circularity and reducing the impact of packaging on the environment. To achieve the sustainability in packaging solutions we cooperate with select logistics service providers to test a variety of new packaging solutions, e.g. cardboard instead of wood packaging, paper instead of plastic. All Metso logistics suppliers are required to follow the relevant national and EU-based (PPWR and Royal Decree 1055/2022) regulatory requirements regarding packaging and packaging waste.

Access supply chain sustainability regulations page here.

Limiting carbon emissions in supply chain

We actively promote consignment with Science Based Targets initiative (SBTi) as part of Metso’s strive to reduce carbon emissions in the supply chain. This helps ensure that, in the long run, together with our suppliers, we work towards a common goal of limiting global warming to below 1.5 C scenario as described in Paris Climate Agreement. On regulatory compliance front Metso reports to the EU as per the Carbon Boader Adjustment Mechanism (CBAM) regulation on iron, steel and aluminium imports into the EU. Suppliers should provide CBAM data latest before delivery of the goods.

Access supply chain sustainability regulations page here.

Limiting carbon emissions in supply chain

Preventing deforestation in supply chain

Metso recognizes the importance of protecting the world’s forests for the well-being of the environment and society. We focus on our raw materials supply chains such as natural rubber and wood, our own operations, as well as our products in the strive to reduce further deforestation. Our approach currently encompasses adherence to the European Union Deforestation Regulation (EUDR) requirements.

Access supply chain sustainability regulations page here.

Human rights in supply chain

Human rights in supply chain

Metso is committed to regularly reviewing its due diligence practices and human rights policies and procedures. We continuously monitor and assess risks to verify that Metso’s business operations and products do not induce human rights abuses, unethical business conduct, environmental harm, or provide funding to conflicts and armed groups. Targeted due diligence efforts are rolled out gradually for these supply chains to enable responsible sourcing practices.

Access ethics and compliance page here.

Financial Review 2024

Transparent reporting on ESG topics in supply chain

Metso promotes openness and transparency in its reporting practices. Metso seeks to help its stakeholders assess its sustainability performance by reporting to selected third-party sustainability ratings and assessments. The rankings also serve as a management tool in helping continuously raise our sustainability performance and define areas for improvement in our sustainability strategy.

In 2024, Metso focused on comprehensive reporting according to the EU’s Corporate Sustainability Reporting Directive (CSRD), invested in developing the sustainability data and information systems that the CSRD requires, and streamlined participation in different sustainability ratings. Section 3.1 of Financial review addresses sustainability topics of Metso’s own workforce and suppliers working on Metso’s premises, while Section 3.2 talks about Metso’s supply chain ESG performance in general.

ISO management system standard certification

Metso recommends suppliers to certify their operations according to latest version of standards ISO 9001, 14001 and 45001. In addition to the benefits for the supplier, it’s also a demonstration of supplier’s commitment to quality, environmental responsibility and occupational health and safety. A certified management system also acts as proof that certain requirements stated on this page are met, making the new supplier approval process more straightforward. ISO 3834 certificate can be used instead of ISO 9001 for welding workshop quality management.

ISO management system standard certification