Responsible procurement
Our supplier network consists of global key suppliers and a large network of local partners located close to our manufacturing units. We work with approximately 20,000 suppliers globally, and are committed to working with responsible suppliers across all our operations who are aligned with our expectations as laid out in the Code of Conduct for Huhtamaki Suppliers. As the governing basis for our supply chain due diligence, it covers topics related to social and environmental sustainability, as well as business ethics.
Key Elements of our Supply Chain Due Diligence
All key suppliers are screened and monitored against sanction lists, watchlists, Politically Exposed Persons lists and adverse media. Performed through an online tool, this allows us to identify and act on issues within our supply chain regarding environmental, social or governance topics, as the databases that our suppliers are screened against cover a wide range of topics.
Key suppliers are also assigned an initial profile risk level of high, medium or low based on factors that include their location, sourcing category and spend. Based on their risk level, they are sent questionnaires requesting additional information on various compliance topics. The responses help us determine whether further actions or explanations are required from the supplier.
In addition, Huhtamaki is a member of Sedex, an organization that works to improve ethical performance in global supply chains. We request SMETA (Sedex Members’ Ethical Trading Audit) 4-pillar audits or another acceptable audit from selected suppliers and follow up on corrective actions as needed.
Huhtamaki is continuously updating and developing our supply chain due diligence practices both in scope and in depth, with an aim that they cover a wider range of business partners across the full ESG agenda. Updating these processes will help us build an even more robust, risk-based approach.
Read more about our supply chain due diligence in the Sustainability Performance supplement in the 2023 Annual Report
Sustainable fiber sourcing
Paper, cardboard and recycled fiber are the main raw material we use, by volume. Nearly 60% of our product portfolio is made of fiber – either virgin or recycled. Huhtamaki wants to advance sustainable management of forests. Huhtamaki is committed to zero deforestation and no use of illegal or controversial wood fiber sources. We do not use tree species listed by the Convention of International Trade on Endangered Species (CITES) for any of our raw materials or in any of our products.
Our recycled fibers are derived from either industrial sources (for example cutting waste from own paper cup manufacturing) or post-consumer recycled materials (for example used newspaper). Where the use virgin fiber is required, we source materials certified by the Forest Stewardship Council (FSC®), the Programme for the Endorsement of Forest Certification (PEFC/ PEFC/02-44-55) or the Sustainable Forestry Initiative® SFI-01166 (SFI®).
Securing a sustainable supply chain for fiber is crucial and a key part of our 2030 sustainability ambition. Our goal is to source 100% of the wood fiber that we use from recycled or certified sustainable sources.
We have compiled lists of our certifications that can be found here. For an up-to-date and more comprehensive list of certificates, please visit the PEFC, FSC and SFI websites.