Outokumpu expects its suppliers to act responsibly
Finnwatch, a Finnish NGO, has today published a report which critically assesses Outokumpu’s supply chain sustainability monitoring and the company’s purchasing. Outokumpu does not use iron ore in the production of stainless steel and is therefore not connected to the Brazilian iron ore mines mentioned in the report.
Sustainability is in the core of Outokumpu’s business. We take the information received from our stakeholders seriously and will investigate allegations of misconduct concerning our material suppliers. However, Outokumpu cannot publish detailed information about individual suppliers.
Outokumpu strives for transparency and publishes information about its supply chain e.g. in the annual sustainability review. The company reports on its supply chain according to its organizational structure, not by country.
Outokumpu has around 9,000 suppliers globally. The top 20 suppliers cover 80% of the total direct material spending. All suppliers are expected to act according to applicable laws and regulations. All suppliers are also expected to comply with our Code of Conduct or similar standards, sign general terms and conditions, and be able to clearly define, document, and share their supply and production control processes including material traceability.
Outokumpu monitors its suppliers through self-assessment, screenings, and audits. Results are discussed with suppliers and Outokumpu monitors the implementation of corrective actions. If the situation continues without progress, Outokumpu can discontinue purchasing from the supplier.
Outokumpu’s commitment to the UN’s Declaration of Human Rights is stated in its ethical principles and suppliers are expected to comply with the principles too. Outokumpu is a signatory to the UN’s Global Compact initiative. Outokumpu has also joined the Responsible Steel initiative which is a global multi-stakeholder standard and certification initiative for the steel industry.
Outokumpu will assess the inclusion of the UN Guiding Principles on Business and Human Rights in Outokumpu’s general terms and requirements for its suppliers.
Outokumpu has a misconduct reporting channel, SpeakUp, available as a global communication channel for all stakeholder groups on Outokumpu’s website. Suspected misconduct of our suppliers can be reported through the channel. Misconducts can be reported confidentially and anonymously, if allowed by the local laws and regulations.
Corporate communications, tel. +358 9 421 3840
Background information for media: Recognized performance in corporate sustainability assessment
Outokumpu is rated by several corporate responsibility indexes. Being rated by these research companies is a recognition of the fact that Outokumpu has succeeded in fulfilling certain criteria of having responsible operations. On the other hand, the independent indexes offer the chance to see which areas of corporate responsibility still have room for improvement.
Outokumpu is rated by Ecovadis with a platinum recognition level in 2020. This excellent result includes Outokumpu among the top 1% performers in steel industry evaluated by EcoVadis, a leading sustainability rating provider which assesses over 30,000 companies in respect to environment, labour and human rights, ethics and sustainable procurement.
In November 2020, Outokumpu received the ‘Prime’ label from ISS ESG sustainability rating. The label means that Outokumpu fulfils ISS ESG's demanding requirements regarding sustainability performance in the sector and serves as an indicator of the quality of the company’s performance in the social and environmental spheres.
Outokumpu is one of the top-scoring companies in the steel industry. Outokumpu is the 6th among all the steel companies in the SAM Corporate Sustainability Assessment (CSA) – the leading global benchmark in the growing field of Sustainability Investing and Corporate Sustainability. Outokumpu is also included in SAM Sustainability Yearbook 2020, indicating a position within the top 15% sustainability performers in the industry.
In the Sustainability Yearbook 2021 S&P Global rated Outokumpu among the best 15% of companies in the industry.
In Carbon Disclosure Project's (CDP) assessment in 2020, Outokumpu received rating B for its performance in climate change actions. The rating is higher than Europe regional average of C, and higher than the Metal smelting, refining & forming sector average of D. Furthermore, Outokumpu was recognized for efforts to drive down emissions in its supply chain with a position on CDP’s 2020 Supplier Engagement Leader board.