Outokumpu is a part of a global supply chain by producing stainless steel for leading brands in demanding industries around the globe.

Our customers expect us to provide a traceable supply chain and, therefore, we have in place stringent requirements on our suppliers, too. Developing our supply chain monitoring is one of the priorities in our sustainability work.
Page last updated: 22.01.2024

Unloading the recycling content from the ferry

Supply chain news

November 7, 2023 Outokumpu and CRONIMET expand their partnership to take circularity to new heights – securing access to high-quality scrap near Outokumpu’s sites in Europe

October 6, 2023 Outokumpu signs a letter of intent with Greenland Resources Inc. to strengthen the future supply chain of low-emission high-quality molybdenum

May 30, 2023 Outokumpu seeks to strengthen the supply chain of sustainable nickel, acquires a share in FPX Nickel

Dec 16, 2022 Raw material supplier requirements published

Nov 1, 2022 Outokumpu visited suppliers in Colombia

July 20, 2022 Outokumpu's Supplier Code of Conduct published

May 24, 2022 Outokumpu's Human Rights Policy published

May 4, 2022 Assessment on the allegations toward our supplier in Guatemala has been completed – purchasing remains suspended 

March 6, 2022  Outokumpu acts firmly on allegations in Guatemala, placing new orders from Guatemala stopped 

Feb 25, 2022 Outokumpu's human rights impacts published

Jan 31, 2022 Site visit to Onca Puma site in Brazil conducted

Oct 29, 2021 Outokumpu launches sustainable sourcing initiative in raw material procurement

Oct 29, 2021 Supplier requirements amendment has been published

Aug 27, 2021 Updated Modern Slavery Statement has been published

June 4, 2021 Outokumpu's supplier requirements have been updated

May 10, 2021 Outokumpu’s Code of Conduct revised – All personnel to be trained 

Mar 25, 2021 Outokumpu to develop its supplier monitoring and transparency in sourcing

Mar 12, 2021 Supplier Assessment Questionnaire published

Feb 23, 2021 Outokumpu's response to Finnwatch report

Feb 23, 2021 Press release: Outokumpu expects its suppliers to act responsibly


Global operations, local suppliers

Our procurement activities are divided into general procurement and procurement of raw materials. Raw materials are all ingredients that are in the steel we produce. General procurement purchases everything that is needed for our production activities and everything else we do at Outokumpu.

In 2022, we had

  • Over 6,000 suppliers globally, local suppliers account for about 45% of purchases
  • Raw material suppliers in 49 countries and General Procurement suppliers in 48 countries
  • 61 raw material suppliers operating in countries with an assessed increased risk, covering 13% of the total spend on raw materials.
  • Only a few of general procurement suppliers operating in countries with increased risk with negligible combined spend.

Outokumpu supplier countries, including raw material, service and other material suppliers in 2022

  Map of Outokumpu's supplier countries in 2022

 

Requirements on our suppliers

As our customers require a lot from us as a supplier, we place the most stringent requirements on ourselves, and require the same from our suppliers.

Outokumpu's supply chain activities are guided by our Supplier Code of Conduct, Supplier Requirements and our Corporate Responsibility Policy. We are committed to the Modern Slavery Act and take into account the OECD Due Diligence Guidance for Responsible Supply Chain. We have started to implement the UN Guiding Principles on Business and Human Rights into our operations and supply chain.

All Outokumpu suppliers will have to commit and comply with following requirements:

  • Supplier Code of Conduct: All suppliers and subcontractors are expected to comply with our Supplier Code of Conduct or similar standards. Outokumpu's Supplier Code of Conduct covers the following topics: Safe and healthy workplace, Sustainable future, Human rights and dignity, and Good corporate citizenship.
  • Raw Material Supplier Requirements and General Procurement Supplier Requirements: Suppliers need to act according to the applicable laws and regulations. Outokumpu Supplier Requirements sets forth the minimum criteria regarding Sustainability and Ethical Standards, Safety, Environmental Considerations, Quality Management, Supply and Production Control, Product Liability, Financial Statement, Intellectual Property Rights, Confidentiality and Security, Audits, and Business Contacts.
  • Quality management system: Suppliers need to maintain a quality management system.
  • Supply and production control: Suppliers need to clearly define, document and share their processes including material traceability.
  • Outokumpu’s general terms and conditions

Additional requirements for suppliers of conflict minerals

All supplies of conflict minerals shall meet the requirements of the OECD Due Diligence Guidance, the Regulation (EU) 2017/821 of the European Parliament and the U.S. Dodd-Frank Wall Street Reform and Consumer Protection Act. Suppliers of conflict minerals shall confirm to Outokumpu via the Conflict Minerals Reporting Template (CMRT) developed by the Responsible Minerals Initiative (RMI) the supply chain regarding mineral country of origin and that only approved smelters and refiners being utilized.

Supply chain due diligence

Outokumpu applies a risk-based approach in supplier management. A supplier shall be qualified before they can be approved and added to the Outokumpu supplier portfolio. In the qualification process, the potential risks and/or opportunities are identified and evaluated. This ensures that the suppliers comply with the Outokumpu Supplier Requirements and can provide conforming raw materials, products, or services on a consistent basis.

Outokumpu monitors its suppliers through self-assessments, screenings and audits. Most of suppliers are also going through a monthly compliance screening for sanctions. Raw material procurement uses EcoVadis for self-assessments, which focus on environment, labor & human rights, ethics, and sustainable procurement. In the supplier performance assessment questionnaire used by general procurement, suppliers are assessed using the following criteria: technology, quality, supply, cost, safety, environment, and financial risk. As a result of the self-assessments, improvement opportunities and requirements can be identified and agreed with the suppliers.

In raw material procurement, the countries in which our suppliers operate are mapped against country-based risk indices, against the countries listed in the Dodd Frank Act Section 1502, conflict-affected and high-risk areas (CAHRAs) as published by the European Union, as well as TDi Sustainability’s Alert Index for Responsible Sourcing (AIRS).

In addition to EcoVadis and the country-risk, raw material suppliers are assessed also based on e.g. available certifications, spend, previous audit results, and overall performance scorecard results. Based on these indicators, raw material suppliers are selected for on-site reviews. Those reviews vary from site visit, to audit to human rights impact assessment depending on the perceived risk. The below diagram describes the process in more detail. If you would like to know more about the conducted on-site reviews, please go to Site visits page.

Supply chain DD chart

 

Supply chain grievances

SpeakUp channel is an externally operated channel for Outokumpu employees and external stakeholders to report misconduct in our suppliers’ operations (as well as in Outokumpu’s own operations). This can be done confidentially and anonymously, if allowed by the local laws and regulations.

 

Sustainability contacts

Sustainable sourcing at Outokumpu: sustainable.sourcing@outokumpu.com

 

Heidi Peltonen

VP – Sustainability

heidi.peltonen(a)outokumpu.com


Anna Vainikainen

Head of Human Rights

anna.vainikainen(a)outokumpu.com


Hannah Stratmann

Head of Supplier Sustainability

hannah.stratmann(a)outokumpu.com

 

Hannah Stratmann

 

 

 

Sustainable sourcing initiative
Site visits