Driving transparency across our value chain

Jun 05, 2025 Categories: Resource Stewardship

WWF Finland has published a report on the environmental and human rights risks of mineral and metal value chains. We find the report and its findings valuable and welcome its insights into the complex value chains in the metals industry. We believe that more collaboration across industries is needed to drive forward supply chain sustainability.

As the report notes, primary production of minerals and metals often takes place in countries and areas of high biodiversity value or managed by indigenous communities. We recognize these issues and have incorporated them into our supply chain sustainability approach and report on them as part of our Sustainability Statement.

I had the opportunity to discuss the report and its findings during WWF Finland’s webinar, and in this blog, I’d like to share some key takeaways from that conversation.


Transparent supply chains vital for the industry

Building a more transparent supply chain is a priority for us at Outokumpu. We disclose all our direct supplier countries on our website and report on supplier audits and visits, including the countries where they are conducted, providing insight beyond tier 1 suppliers. We expect our suppliers to map their own supply chains and provide this information for our due diligence purposes. Outokumpu’s risk-based approach evaluates risks not only at the supplier level but throughout the value chain.

Recycled steel accounts for approximately 95% of our raw materials, significantly reducing our reliance on primary raw materials and associated biodiversity risks. However, we recognize that primary raw material production poses higher risks and have identified adverse biodiversity impacts as a salient issue in our supply chain.

We have recently updated our public reporting on Outokumpu’s salient human rights impacts based on the latest impact assessments. Additionally, we have an active project underway to deepen our understanding of biodiversity and nature-related impacts across our operations and value chain, with the aim of strengthening our measures to prevent and mitigate adverse impacts. After developing our supply chain for the last few years, we are currently in the process of setting targets regarding our supply chain work.


Human and indigenous peoples’ rights in our value chain

WWF’s report also draws attention to gaps in guidelines regarding human rights and especially indigenous peoples’ rights. According to the report, the examined companies have human rights policies, but few specifically address the rights of indigenous peoples or reflect meaningful engagement with affected communities.

At Outokumpu, our Supplier Code of Conduct and Supplier Requirements explicitly call for respect and promotion of the rights of indigenous peoples. We assess impacts on vulnerable groups, including indigenous peoples, as part of our sustainability audits and human rights impact assessments. We also have engaged directly with indigenous communities during assessments to understand their perspectives on potential and actual impacts.


Committed to collaboration across the value chain

Outokumpu is committed to continuous improvement in transparency and impact mitigation across our value chain. As part of our sustainability reporting and ongoing due diligence efforts, we aim to deepen our work on nature and human rights topics, while maintaining our leadership in climate action, supported by our Science-Based Target to reduce carbon emission intensity by 42% by 2030.

We recognize that the biggest impact we can make is through collaboration. That’s why we actively work with our suppliers to raise sustainability standards across the board.

Pia Lindqvist

Head of Supplier Sustainability