Metso sustainability handbook

Metso sustainability handbook

All you need to know about our responsible business operations

2 Metso Sustainability Handbook

Metso in briefMetso is a team of 16,000 industry experts located in more than 50 countries worldwide working in close cooperation with our customers to achieve sustainable process and profit improvements in minerals processing and flow control.

Metso’s vision is Working as One to be Number One.

We contribute to a more sustainable world by helping our customers process natural resources and recycle materials into valuable products.

ServicesA superior services offering ranging from wear and spare parts, maintenance and repairs to performance services.

MineralsEnergy and water efficient minerals pro-cessing solutions for mining and aggregates industries; innovative equipment and services for recycling.

Flow ControlBroad offering of valves and pumps technolo-gies and knowhow for oil andgas, mining and pulp & paper industries.

Metso’s business areas

1 www.metso.com/sustainability2 See the latest Metso sustainability report

on our website3 www.twitter.com/metsogroup

Learn more online

3Metso Sustainability Handbook

Contents2 Metso in brief6 Metso’s commitment to sustainability Metso’s sustainability focus Managing sustainability at Metso Engaging in responsible business practices

12 Effective risk management strengthens business opportunities14 Health, Safety and Enviromental (HSE) management Metso’s approach to managing HSE

HSE reporting

Ensuring Health and Safety

Enhancing environmental performance

Metso’s suppliers and HSE

Implementing HSE management systems

22 Product sustainability Life cycle assessment of products

Product safety Providing high-quality services and products

24 People and society Stakeholder engagement

Community involvement

Sponsorship and donations

Diversity and equal opportunities

Human rights

Human resource management

28 Sustainable supply chain Developing a sustainable value chain

Supply chain as a vital part of sustainability at Metso


Sustainability is an integral part of Metso’s strategy. Based upon this principle, Metso expects its suppliers to conduct their operations in a socially, environmentally and financially responsible manner. This handbook, aimed at Metso’s stakeholders and partners, introduces Metso’s main policies and actions concerning sustainability. We strongly encourage our stakeholders to join us on the path towards even more sustainable business operations.

We contribute to sustainable development by

offering products and services that reduce the

environmental load and improve the quality of our

customers’ operations. Our solutions increase the

energy and materials efficiency of our customers’

industrial processes and reduce emissions and water

consumption. Metso has strong competence in

these areas.

We focus our research and product develop-

ment activities on sustainable technology solutions.

We believe technology plays a significant role in

curbing and adapting to climate change. Metso’s

services business helps to extend the life cycle of our

customers’ processes. To support our sustainability

objectives and our vision and to seize the opportuni-

ties sustainability presents, we need close interaction

with suppliers who share the

same values. Together with a

trusted network of suppliers,

we can lead the way in

eco-efficient products and

solutions while simultane-

ously reducing our own

environmental impacts.

In its operations, Metso

focuses on its core com-

petencies and outsources various phases of work

to suppliers. To ensure the sustainability of their

operations, Metso requires its suppliers to comply

with local legislation under all circumstances. The

purpose of this handbook is to describe Metso’s ap-

proach to sustainability to its stakeholders . To ensure

the sustainability of its value chain, Metso launched

its Sustainability Criteria for Suppliers in 2010. These

criteria are the starting point for entering into and

maintaining all of Metso’s business partnerships.

Let´s work together for more sustainable future!

Matti Kähkönen

President and CEO, Metso Corporation

In this handbook, we describe strategic approach to sustainability and explain the expectations that Metso places on its partners.


Our operations are guided by:

• Our values• Our Code of Conduct• The United Nations’ Global

Compact• The International Chamber of

Commerce (ICC) Business Charter for Sustainable

• Development• The OECD guidelines for

multinational enterprises• The ILO tripartite declaration

concerning multinational enterprises and social policy

Sustainability indicesSustainability indices are used by institutional investors, ethical investment funds and pension funds that emphasize responsibility criteria in their investment decisions and who want more comprehensive risk and opportunity assessments on their investment targets. The assessments are based on material published by the companies and on questionnaires that evaluate corporate performance. Based on these facts, companies get rated among their peers. In 2014 Metso was included, for example, in the following sustainability indices: Climate Disclosure Leadership, FTSE4Good, oekom Research AG, Ethibel and Vigeo Rating.


Metso’s commitment to sustainability Metso’s commitment is to work as one to actively contribute towards building a more sustainable world. Based on this commitment, Metso strives to consider all aspects of the financial, social and environmental implications of its operations when tapping into opportunities and managing risks related to sustainability.

As sustainability is an integral part of Metso’s strategy,

the company’s solutions focus on the development

and delivery of increased energy and materials effi-

ciency of our customers’ industrial processes and on

reducing emissions and water consumption. Metso’s

suppliers play an important role in contributing to

these solutions. Guidelines and criteria have been

introduced to integrate sustainability throughout the

entire valve chain, and we expect our suppliers to be

familiar with these policies

Metso’s sustainability focus Metso takes a multifaceted approach to sustaina-

bility. We are a global company with a wide range

of efficient and environmentally sound products,

services and solutions. We value our global diversity

and high working standards. We are determined to

create value for all our key stakeholders by ensuring

quality while globally promoting sustainability in the

industry. Our strategic sustainability focus is on four

areas: Metso People, Metso Environment, Society

and Marketplace.

Metso peopleTo ensure the success of our operations, we want to

provide the best possible environment for the core

of Metso’s business – our employees in all areas of

expertise. Health and safety is an essential part of

Metso people’s well-being and of our sustainability

focus. We encourage the continuous learning and

development of our employees because it plays a

key role in ensuring our competitiveness and paves

the way to employee engagement. In matters of

sustainability, Metso expects its management to

lead the way, and the company has a strong focus

on developing sustainability competence among its

• Metso’s sustainability focus• Managing sustainability• Engaging in responsible business practices

Section in brief

According to our Health, Safety and Environmental policy, we aspire to minimize our environmental footprint throughout the value chain.


employees. We are committed to providing equal

opportunities and diversity at the workplace, and we

aim to motivate and challenge our people to pursue

constant personal development and success.

Metso environmentAccording to our Health, Safety and Environmental

policy, we aspire to minimize our environmental

footprint throughout the value chain. In our own

operations, we concentrate especially on carbon

emission reductions, energy efficiency, water conser-

vation, waste reduction and avoiding environmental

accidents. Progress in these areas is carefully analyz-

ed and the results help in mitigating future risks.

SocietyOur growth in emerging markets and the extension

of our service business to remote locations close to

local customers brings our role as a corporate citizen

to a true global scale. In some locations we directly

or indirectly create new jobs based on our technolo-

gy, solutions and services, whereas in others we need

to adjust our operations to a changing business

environment with varying demands. Our aspiration

of being a responsible corporate citizen is based

on understanding mutual needs and expectations

in our relationships with local communities. We are

convinced that increased integration with the local

community through the engagement of our local

employees results in mutual benefits for Metso and

society.

In its national and international projects, Metso

aims to promote the common good. Our business

areas and units are responsible for supporting

projects in their own communities or related to

their respective operations. Activities on behalf of

children and youth, culture, science, research, and

environmental protection and conservation are

largely supported with various sponsorship and

donation programs.


on our website

Learn more online


Our mission

is to contribute to a more sustainable world by helping our customers to process

natural resources and recycle materials into valuable products.

People and well being

• Taking responsibility of our employees and their working conditions

• Constantly improving the occupational health and safety of our employees

• Providing jobs and income for our subcontractors and other partners

• Participating in activities promoting the well-being of local communities

Environment and innovations

• Development of environmental technologies and offering eco-efficient solutions to our customers

• R&D on the advancement of environmental solutions

• Eco-efficiency of our own production facilities and our suppliers

Finance and operations

• Bringing prosperity to our stakeholders through economic responsibility

• Operating globally with local presence and knowledge

• Supporting the development of sustainable innovations and business models

Sustainability at Metso


Metso wants to be a part of local communities and to

contribute to their sustainable development efforts.

MarketplaceMetso wants to develop its sustainability practices

along the whole supply chain. We want our suppliers

to be familiar with our sustainability policies and

practices and to integrate similar principles in their

own working environment. We constantly try to

develop our supplier assessments and audits as well

as the daily interaction in tracking the results. We also

strive to have increasingly sustainable products and

services as well as good cooperation and dialog with

all the relevant stakeholders.

Managing sustainability at Metso Metso’s management models help to ensure the

integration of sustainability into daily operations.

Corporate governance principles form the foun-

dation of the management of Metso. In addition

to complying with laws and regulations, Metso

applies best practices, such as the Finnish Corporate

Governance Code for listed companies.

Promoting sustainability is the responsibility of

all Metso employees, guided and supervised by

Metso’s President and CEO and the Metso Executive

Team. Business management and supervisors ensure

that employees are familiar with and comply with

the legislation, regulations and internal operating

guidelines of their respective areas of responsibility.

Additionally, Metso strives to make good use of the

best practices and synergy benefits of its businesses

and to continuously improve its personnel’s aware-

ness of sustainable operations.

Metso’s Code of ConductThe cornerstone of Metso’s approach to managing

sustainability is the company’s Code of Conduct.

Our Code of Conduct creates a common basis for

all our business operations and work assignments.

It also serves as commonly accepted guidelines and

perspectives for future decisions..

Engaging in responsible business practicesMetso is committed to adhering to responsible

business practices. This means that we follow all laws,

compete fairly and do not engage in corruption.

Metso expects its suppliers to adhere to the same

standards. We are committed to full compliance with

all applicable national and international laws, regula-

tions and generally accepted practices.

Metso supports and strives for fair competition

and free markets. Thus the company refuses to enter

into discussions or agreements with competitors

concerning pricing, market shares, or other similar

activities. We comply with the competition legis-

lation of the countries we operate in and with our

internal Competition Guidelines.

Metso does not become involved in business

relationships that may lead to conflicts of interest. We

do not pay bribes or illegal payments to obtain or

retain business. We do not pay to facilitate favorable

decisions or services from authorities, and we refuse

to participate in or support money-laundering under

any circumstances in our operations worldwide.

Furthermore, we do not accept gifts from busi-

ness partners exceeding normal standards of hospi-

tality. If the acceptance of a gift or favor contains the

remote possibility of a conflict of interest, we always

clarify the situation with management in advance. In

2012, Metso launched a new internal Anti-Corruption

Policy and the related training program to enforce

the adherence to these principles.

Metso is committed to adhering to responsible business practices. This means that we follow all laws, compete fairly and do not engage in corruption.

Sustainability Management Model

Implementation of strategy and policies Setting business-specific targets Reporting results

Metso Executive Team

HSE, HR, Technology, Finance, Legal, Risk Management, Communications, Stakeholder Relations, Quality

Metso Board

• Minerals Processing Solutions• Crushing and Screening Equipment• Metal Recycling

• Oil and Gas• Pulp and Paper• Services• Valve Controls• Mining Flow Control

Development and follow-up on strategy, policies, metrics, objectives and targets

Data collection Sustainability communication

External assurance Stakeholder engagement

Minerals Flow ControlSustainability Team

Functional Support Teams

Decisions on strategy, policies, metrics and objectives

Setting global targets

• Wear Solutions• Spare Parts• Performance Services

Services


Metso’s risk management policy fulfills the require-

ments of the ISO 31000 standard. The risk man-

agement policy defines the starting points, goals,

principles and responsibilities of our enterprise risk.

We expect our suppliers to take similar precautions

and to ensure that their employees are appropriately

trained and have the information needed to recog-

nize and prevent risks.

Some examples of sustainability-related risks and opportunities:

Human resources and employee competenceMaking the most of our human resources and devel-

oping our employees’ competence and capabilities is

crucial for securing the development of our business

and competitiveness. In addition to recruiting new

talent, we also need to retain our existing talent. A

lack of global competence and talent availability

are threats to any company, whereas the ability to

meet these needs presents a considerable business

opportunity. Sustainable business is more likely to

attract the best talents.

Effective risk management strengthens business opportunitiesRisk management is an integral part of operational management. Through risk management, the company can identify its potential sustainability threats and opportunities and can plan its actions more carefully. Unexpected events or changes in circumstances can cause uncertainties; effective risk management ensures continuity of the company’s operations even in changing circumstances.

Environmental legislationClimate change and environmental issues affect our

operations over the long term through our customers.

By systematically monitoring the development of

environmental issues, we strive to find new business

opportunities which, if overlooked, would pose a

strategic threat. Stricter environmental legislation

creates opportunities for us to offer new solutions

that improve our customers’ energy efficiency, reduce

emissions, promote recycling and meet more stringent

environmental standards. Environmental requirements

have also increased in emerging markets.


Occupational health and safetyWe continuously focus on identifying and pre-

venting occupational safety risks. We thoroughly

investigate all accidents and near-miss incidents

and initiate necessary actions to prevent them

in the future. Incidents resulting in a fatality or

serious injuries are rare in relation to the scope of

our operations.

Emerging marketsOur business development is strongly linked

to our ability to expand our operations in new,

rapidly emerging markets. In addition to oppor-

tunities, there are also threats related to operating

in emerging markets. Such threats are associated

with, among other things, our reputation as an

ethical corporate citizen.


Health, safety and environmental managementHealth, safety and environment (HSE) is an essential element in all of Metso’s activities. We are committed to taking responsibility for both our own safety and for the safety of others. We also aspire to minimize our environmental footprint throughout the value chain.

Metso has set a Group-wide Health, Safety and

Environment policy as well as short-term and

long-term targets. The HSE policy states Metso’s

strong commitment to good health, safety and

environmental behavior within the company. It also

expresses our aim to design solutions that help our

customers improve their safety and environmental

performance. In addition to the HSE policy, Metso

abides by all relevant HSE legislation.

HSE issues are key concerns for Metso, and they

are addressed with the same sense of responsibility

as quality, productivity and cost-efficiency. We have

the responsibility to conduct our operations in an

environmentally sound way, while offering our em-

ployees and contractors a safe work environment.

Our prime target is to achieve a lost-time incident

frequency (LTIF) of less than 1 in every Metso unit.

Our long-term occupational safety target is zero inci-

dents. LTIF reflects the number of incidents resulting

an absence of at least one working day per million

hours worked.

Our goal is to improve energy efficiency and to

reduce carbon dioxide emissions by 15 percent by

2015 and by 20 percent by 2020 and to reduce water

usage and amount of waste in our own operations

by 15% by 2020. We also target for zero environmen-

tal incidents.

• Metso’s approach to managing HSE• HSE reporting • Ensuring health and safety• Enhancing environmental performance• Metso’s suppliers and HSE• Implementing HSE management systems

Section in brief


LTIFless than 1

We have set ambitious health, safety and environment targets

To fulfill our HSE policy we:• require good HSE behavior and follow the rules and instructions that we have

set in all our daily activities• continuously improve our processes,

practices and work environment• design our solutions, products, innovations and services to help our

customers improve their safety and environmental performance• strive for efficient and sustainable use of energy, natural resources and

materials in all our operations

Read more about the HSE policy from Metso’s latest sustainability report online.

work-related incidents

zeroLONG-TERM TARGET

Our health and safety targets

Carbon dioxide and energy targets in our own operations

Waste and water targets in our own operations

REDUCE CARBON DIOXIDE

by 202020%

by 201515%

by 2020

REDUCE WATER USAGE AND WASTE AMOUNT

15%


Metso’s approach to managing HSE

Metso has established an HSE team that oversees the

implementation of the HSE policy and the quality of

the units’ health, safety and environmental activities.

The team defines the shared focus areas of HSE

activities, develops HSE management and promotes

the sharing of best practices at Metso. A network

organization is formed by the segment and business

line representatives responsible for improving HSE

matters within their respective organizations.

HSE reportingMetso Group collects HSE data from all locations

to follow key performance indicators, based on the

Global Reporting Initiative (GRI) and other important

indicators defined by Metso.

Global Reporting Initiative The Global Reporting Initiative (GRI) is a network-based organization that pioneered the world’s most widely used sustainability reporting framework promoting a standardized approach to reporting. The reporting framework sets out the principles and performance indicators that organizations can use to measure and report their economic, environmental, and social performance. 2) Metso’s sustainability reporting is based on the core indicators of the Global Reporting Initiative’s updated (GRI) G3.1 Guidelines.

Hierarchy of Metso HSE procedures

Metso Group level Strategy HSE policy and targets Global HSE tools and guidelines

Business line level Objectives and targets Guidelines and instructions Compliance with policy and standards

Country/location level Local goals and action plans Local instructions Compliance with legal and

other requirements

Business line

Metso

Country/location level


All sites, including construction sites, must

report accidents, environmental damages, near-miss

situations and observed risks related to occupational

health and safety. By analyzing them, the recurrence

of these incidents can be prevented.

Environmental performance data is collected from

our manufacturing units, according to GRI metrics.

Ensuring health and safety is essential in all Metso’s activitiesWe are committed to taking responsibility for our

own safety and for the safety of others. We believe

that all incidents and accidents can be prevented.

This is why we always emphasize our high HSE

standards of conduct when dealing with custom-

ers, suppliers and other stakeholders. Compliance

with applicable laws and regulations is only a

minimum requirement.Managing health and safetyAll Metso operations shall comply with all applicable

permits and with Metso’s minimum safety standards,

which are defined specifically for individual tasks.

To manage health and safety, the HSE team

supports the business lines in the monitoring, devel-

opment and communication of the safety practices.

Each of our segments and business lines has the re-

sponsibility for improving safety matters within their

respective organizations. In order to ensure a safe

work environment, each employee is also expected

to take personal responsibility for health and safety

and to promote the safety of their colleagues and

the safety of all others on site.

In addition to its own employees, Metso relies on

contractors and subcontractors to undertake work

on behalf of the company. This type of work routinely

consists of high hazard and risk activities. Therefore,

the same health and safety standards that Metso

employees follow apply also to subcontractors. In

order to promote subcontractor safety on all sites,

Metso requires its suppliers to follow the safety standards introduced in the subcontractor HSE manual.

Working safely means: • working in a safe manner

without risk to ourselves, others or the environment

• following the HSE policy and related instructions

• complying with site rules• reporting all incidents, as well

as near-miss cases• correctly using all required

personal protective equipment (PPE)

• making suggestions on how to improve HSE practices

We are committed to taking responsibility for our own safety and for the safety of others, and we believe that all injuries and incidents can be prevented.


HSE encompasses comprehensive health, safety and environmental thinking

For any work undertaken on behalf of Metso, the company’s suppliers must follow:

• local legislation and regulations at all times• site-specific HSE plans• supplier HSE procedures • all HSE instructions given by the customer (if attending non Metso premises)


Enchancing enviromental performanceIn environmental responsibility, our focus is particu-

larly on developing environmental technologies and

offering eco-efficient solutions to our customers.

Improving the environmental efficiency of our own

production facilities, developing environmental

management practices and advancing the efficiency

of our suppliers is also important.

We have set a global target to reduce Metso’s

energy consumption, and we have introduced a

separate energy-efficiency program with a dedicated

budget to meet these targets.

Environmental management in MetsoAll Metso units shall comply with local legislation and

all applicable permits for their operations.

To manage environmental issues, the HSE team

supports the business lines in the monitoring, devel-

opment and communication of good environmental

practices. Each of our segments and business lines

has the responsibility for improving environmental

performance within their respective organizations.

In addition to its own employees, Metso relies

on contractors and subcontractors to undertake

work on behalf of the company. This type of work

routinely consists of high hazard and risk activities.

Therefore, the same environmental standards that

Metso follows apply also to subcontracts.

Developing eco-efficient solutionsFor Metso, environmental responsibility also means

improving the environmental performance of our

customers. Our sustainable technology consists of

products and services that reduce the environmen-

tal load and improve the quality of our customers’

operations over its life cycle. Our solutions help im-

prove our customers’ energy and material efficiency

and reduce emissions and water consumption.

Improving the environmental performance of our

solutions over their entire life cycle highlights the

importance of working together with our suppliers.

98 % of the environmental impact of our products

comes from the usage period. The most effective way

Metso can influence these impacts is through our

product development.

We have set a global target to reduce Metso’s energy consumption, and we have introduced a separate energy-efficiency program with a dedicated budget to meet these targets.


Metso’s suppliers and HSE

Metso believes that all accidents can be prevented.

Even one accident threatening our personnel and/or

property is one too many. Metso’s suppliers shall also

ensure that all their personnel, as well as everyone

working temporarily at the supplier’s premises, have

been instructed in environmental, work safety and

health issues. Contractors and suppliers working at

Metso sites or under Metso supervision shall comply

with all Metso HSE rules and safety requirements.

Safe, healthy and well-managed working environmentIn order to follow the sustainability criteria and to

make continuous advancements in the HSE area,

Metso expects its suppliers to provide their own

employees with the appropriate guidance and com-

petence. The supplier shall provide a safe, healthy,

and well-managed working environment and shall

prevent accidents and injuries through policies,

actions and risk assessments.

HSE Risk assessment Identifying the risk factors is the first step in pro-

tecting employees against them. By recognizing

work-related risks and hazards and creating an action

plan for risk management, unnecessary incidents can

be avoided. Risks arising from environmental prob-

lems or social discontent surrounding a project can

have extreme financial implications due to project

delays or negative publicity; realized environmental

and social risks can also give rise to unforeseen costs.

Damage to the company’s reputation arising from

environmental or social misconduct can also have

long-term financial implications and can jeopardize

the company’s license to operate.

Assessing risks is an important phase of the

HSE impact assessment in identifying appropriate

preventative measures and in proactively managing

workplace risks.

Contractors and suppliers working at Metso sites or under Metso supervision shall comply with all Metso HSE rules and safety requirements.


Implementing HSE management systemsOne way to manage risks and environmental impacts

is to implement health, safety and environmental

management systems. Metso’s operations manage

health, safety and environment based on international

standards, such as ISO 14001 and OHSAS 18001. These

standards and management system procedures guide

Metso employees and partners.

Metso requires its suppliers to comply with all rele-

vant environmental legislation. In our own HSE manage-

ment practices, we comply with ISO 14001 and OHSAS

18001 standards as well as all applicable legislation. In

addition to complying with the international standards,

we also comply with all applicable legislation.

One way to manage risks and environmental impacts is to implement health, safety and environmental management systems.


Product stewardshipSustainable products provide environmental, social and economic benefits over their entire life cycle, from the extraction of raw materials to decommissioning. For Metso, in practice this means that our products are safe to operate, economically feasible and efficient, and help our customers to minimize their environmental impacts.

The meaning of stewardship for Metso is two-fold.

First of all, Metso aims to ensure that the life-cycle

impact of its products is minimized. Secondly, Metso

makes product safety a priority and strives to take all

the necessary precautions in an effort to ensure that

its products do not inflict health or safety hazards

for the users. Suppliers also play an important role in

ensuring the sustainability of Metso’s products. For a

product to be safe in all aspects, the quality has to be

guaranteed throughout the supply chain.

Environmental performance of productsAs a provider of solutions for multiple customer

industries, Metso wants to improve its customers’

ability to manage and reduce the environmental im-

pacts of their production processes. Our customers

and stakeholders are showing a growing interest in

the environmental performance of our products and

supply chain, and their requirements are becoming

more stringent.

During the R&D process, different environmental

impacts of our solutions are analyzed. Different tools,

such as life cycle assessment can be used as needed

to analyze the life cycle environmental impacts of

products and to recognize areas of improvement.

The best opportunity to influence the environmental

impact of a product is during the design phase. Eco-

efficient design means that environmental aspects

are considered in the design stage along with other

factors, such as functionality, quality, cost-efficiency

and product safety. Metso also engourages its sup-

pliers and other partners to integrate environmental

considerations in to their product development

processes.

Product safetyOrganizations are expected to exercise care in the

design of their products and services to ensure

that these are fit for their intended purpose and do

not pose unintended hazards to health and safety.

Appropriate communication also plays an important

role in ensuring product safety. Our HSE policy

states our undertaking to design solutions, products,

innovations and services in order to help our cus-

tomers to improve their safety and environmental

performance.

Metso’s products are designed to meet all the

relevant standards and directives and requirements

imposed to ensure the safety of the products in

• Life cycle assessment of products • Product safety• Providing high-quality services and

products

Section in brief


all the countries where Metso and our customers

operate. Metso’s products are delivered with the

appropriate information for safe use.

Providing high-quality services and productsMetso accepts nothing but the best quality in its

products and services. We are strongly committed to

excellence and the needs of our customers, as well

as to the continuous improvement of quality and

reliability of products and services.

The majority of Metso’s production units have

certified ISO 9001 quality management systems.

Additionally, ISO 14001-compliant environmental

management systems are key tools in Metso’s

environmental management. Some production units

also have certified OHSAS 18001 occupational health

and safety systems.

A life cycle assessment is a technique used to assess the potential environmental and other aspects associated with a product or service at all stages of its life cycle – from the extraction of resources through the production and use of the product, to the reuse, recycling or final disposal.


on our website

Learn more online


People and societyMetso’s success starts with over 18,000 employees around the world. By supporting their opportunities for development, Metso enables its business success. Our aspiration of being a responsible corporate citizen is based on understanding mutual needs and expectations in our relationships with local communities. We are convinced that increased integration with the local community through the engagement of our local employees results in mutual benefits for Metso and society.

Social responsibility aims to ensure the prerequisites

of well-being from one generation to the next. Issues

integral to social responsibility include population

growth, poverty, child labor, food security, access to

healthcare, equality between generations and access

to education.

For companies, social responsibility starts with

compliance with international and national legisla-

tion. Metso expects its suppliers not only to perform

according to the agreed technical and commercial

criteria, but to also commit themselves to ensur-

ing the well-being of their employees, providing

opportunities for personal growth and respecting

human rights.

Socially responsible companies may reap the

benefits in the form of developing stakeholder rela-

tionships, enhancing the company’s reputation and

improving overall well-being. This may translate into

improved profitability and competitiveness in the mar-

ket. Therefore, we encourage our suppliers to integrate

social responsibility into their business operations.

Stakeholder engagementStakeholder engagement plays an important role

in securing Metso’s license to operate and it allows

us to understand the interests and expectations of

our stakeholders. As a result, Metso is also better

equipped to optimize its offering to meet the needs

of the market. We are also in a process to initiate

a formalized process for engagement with its

different stakeholders.

• Stakeholder engagement• Community involvement• Sponsorship and donations• Diversity and equal opportunities• Human rights• Human resource management

Section in brief

Therefore, we encourage our suppliers to integrate social responsibility into their business operations.


People and societyStakeholders can be defined as persons or

groups who are directly or indirectly affected by

the company’s actions, as well as those who may

have interests in the company’s operations or have

the ability to influence them – either positively or

negatively. Stakeholders may include locally affected

communities or individuals, national or local gov-

ernment authorities, politicians, non-governmental

organizations and groups with special interests, the

academic community, as well as customers, suppliers

and other partners. Employees are also an important

stakeholder group.

Metso considers its most important stakeholders

to be customers, personnel, investors, collaboration

partners – including our suppliers and subcontrac-

tors – and media. We comply with our Code of

Conduct and with local and international laws and

commitments in all our stakeholder interactions.

In our daily operations, we strive to interact

closely with our key stakeholders to maintain a

mutual understanding of important issues. We also

aim to understand our stakeholders’ concerns by

applying systematic research in the form of customer

satisfaction inquiries and broad-based stakeholder

interview tools. In this manner, we wish to recognize

our development needs both at the short- and long-

term operational levels by embedding these findings

into our strategy.

Community involvementMetso’s presence in emerging markets is constantly

growing and is reflected in new units being opened

or existing ones expanded in these growth markets.

Metso’s local presence creates opportunities for jobs

and business partnerships that are important and

beneficial both to Metso and the local community.

We encourage our suppliers and employees to

participate in a wide range of activities that bring

well-being to the local community.

We encourage our suppliers and employees to participate in a wide range of activities that bring well-being to the local community.


Sponsorships and donationsSponsorships and donations are examples of means

we use to develop and maintain interaction with im-

portant stakeholder groups and local communities.

Sponsorships and donations are a way for companies

to express their values and to enhance their coopera-

tion with stakeholders.

Metso’s Principles for Sponsorships and

Donations has defined the areas where the company

allocates its resources (including financial) to ad-

vance activities for the common good.

The three main areas prioritized by Metso are:

• Science, research and education

• Environmental protection and nature

conservation

• Youth activities

It is important that sponsorships and donations

are allocated in a transparent manner and commu-

nicated openly to the stakeholders of the company,

especially to the shareholders.

Diversity and equal opportunitiesMetso’s aim is to create and sustain a work environ-

ment that values diversity and provides equal oppor-

tunities for everyone. In order to advance work-re-

lated human rights principles, Metso launched a

dedicated Equal Opportunity and Diversity Policy at

the end of 2011. The policy adds concrete issues to

the general principles of Metso’s Code of Conduct.

Due to the differences in work-related legislation in

different countries, this policy is applicable globally

in Metso Corporation within the limits of local leg-

islation.

As a basic statement of the policy, Metso is

committed to promoting equal opportunities for all

employees, regardless of gender, age, race, religion,

caste or religious beliefs, ethnic or national origins,

marital/civil partnership status, union membership, or

political affiliation, sexuality or disability. We select our

employees based on merit and experience and do not

practice discrimination in the recruitment process.

The protection of human rights is a basic premise of human resource management at Metso.


Existing and potential

employees

Suppliers and subcontractors

Shareholders and investors

Media

Research institutes, universities and

vocational schools

Non-governmental organizations,

authorities

Local community

Existing and potential

customers

Human rightsThe protection of human rights is a basic premise

of human resource management at Metso. We

support and respect the protection of human

rights as expressed in the UN Declaration of Human

Rights and comply with the basic labor rights stated

by the International Labor Organization (ILO) in

our personnel relations. Metso does not use child

labor or engage subcontractors or suppliers that

do so. We do not allow behavior that is physically

coercive, threatening, abusive or exploitative. We

are committed to the UN Global Compact initiative

with its ten universally accepted principles in the

areas of human rights, labor, the environment and

anti-corruption, and we expect our suppliers to

comply with these principles.

Human resource managementOur aim is for Metso to be a workplace that

attracts people with the most suitable talent and

experience, while helping them to develop in their

profession and give them the opportunity to apply

and improve their own skills in a balanced manner.

Leadership plays a significant role in creating a

working environment where people can reach

their full potential, thus enabling our business

success. We also focus on the talent and strategic

development of Metso employees to create the

right work environment to attract the right people

and help them to succeed. These focus areas are

emphasized in our People Strategy.


Sustainable supply chainMetso focuses on its core competencies and outsources many work phases to its suppliers. The type of outsourced work routinely consists of high hazard and risk activities with high potential impacts on occupational health and safety, environment and societal wellbeing. This is why Metso expects its suppliers to follow ethical and sustainable principles. This is the starting point for entering into and maintaining all of Metso’s business relationships.

Supply chain as a vital part of sustainability at MetsoSupply chain forms a notable share of Metso’s

overall impact on the surrounding environment and

societies. Improving Metso’s overall sustainability

performance therefore requires that also our busi-

ness partners support our commitment and live up

to our expectations.

Metso has guidelines and criteria to integrate

sustainability throughout its production chain. We

expect our suppliers to follow sustainable business

practices, to comply with competition legislation, to

offer a safe working environment and to assess their

own environmental impacts.

Metso requires its suppliers to adhere to its crite-

ria of sustainable development for suppliers.

The goal of the common criteria is to support

Metso’s supplier network in developing matters

related to sustainability and to harmonize the

company’s internal procedures. The sustainability

criteria for suppliers are used in connection with

supplier assessments and play an important role in

the selection process for new suppliers.

In addition to following all relevant legislation,

suppliers and subcontractors should also be familiar

with the company’s Health, Safety and Environment

(HSE) policy and other relevant policies mentioned

in this document, and they must comply with our

Code of Conduct or with their own operating princi-

ples that are of equivalent content.

Suppliers must confirm that their business prac-

tices do not contradict the business principles stated

in the UN Global Compact, which Metso supports

as a signatory, or with the International Chamber

of Commerce Business Charter for Sustainable

Development, which we have endorsed.

The supplier should also support and respect the

UN Universal Declaration of Human Rights and the

core rights stated in the ILO Convention. Suppliers

must refrain from the use of child or forced labor and

the use of bribery in all circumstances.

Metso expects its suppliers to ensure that all their

personnel, as well as all persons working temporarily

at their premises, have been instructed in environ-

mental, work safety and health issues. We also expect

them to be familiar with our Code of Conduct.

Suppliers are also responsible for dedicating a

person within their company to be responsible for

following and developing the principles detailed in

• Supply chain as a vital part of sustainability at Metso • Developing a sustainable supplier network • Measuring supply chain performance

Section in brief


our Sustainability Criteria for Suppliers. We also

expect our suppliers to support the principles

of sustainable development with their own

suppliers.

Developing a sustainable supplier networkMetso believes it is important to develop,

manage and maintain a network of suppliers

who are willing to actively promote sustainable

principles and procedures. We are prepared to

support our business partners in this work by

sharing our own experiences and views with

them. The general aim for this cooperation is to

reduce the risks associated with the partnerships

and to strengthen the reputation of our industry.

Metso’s cooperation is based upon three corner-

stones: sharing of information, evaluation of own

performance, and supplier audits.

Metso is dedicated to sharing information

with its suppliers to support them in meeting

Metso’s requirements. Information can be found

in Metso Sustainability Handbook as well as

guidance materials focusing on selected topics

around sustainable development. Material is

shared with suppliers as considered relevant.

Suppliers can also request Metso for supporting

materials.

Suppliers are recommended to conduct self

evaluations of their performance with regards

to Metso’s criteria of sustainable development.

Metso also requires selected suppliers to

conduct a self assessment focusing on some key

topics. The results of the self assessment are used

to support suppliers in developing critical areas

of sustainability. Based on the self assessment

findings, Metso can recommend corrective ac-

tions to suppliers, or issue supplier audits to help

suppliers identify improvement points.

In addition to dedicated sustainability audits,

Metso’s procurement and quality functions also

conduct audits focusing primarily on other than

sustainability topics. These audits include a quick

evaluation of suppliers’ sustainability perfor-

mance as well, and can be used to trigger further

actions if needed.

Measuring supply chain performanceMetso uses various metrics to measure the

performance of its supply chain with regards to

selected topics of sustainable development. The

performance measurements are used for tar-

geting of actions, managing and understanding

supply chain risks, as well as externally reporting

Metso’s overall sustainability performance.

An example of metrics used for both internal

and external purposes is scope 3 CO2 emissions.

Metso measures and reports its CO2 emissions

throughout its value chain, including also supply

chain. The results are used for internal purposes

as well as external reporting.

”Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs .”

The Brundtland Report, 1987


Sustainable development criteria for suppliers

1. IntegrityIntegrity is fundamental to all of our dealings,

actions, statements and reporting, and is an essential

aspect of sustainability. Integrity must be demon-

strated by respecting all underlying contracts and

agreements when doing business with Metso. All

information exchange must be truthful and honest

and any deficiencies in the provided information

must be pointed out.

2. Compliance with laws and regulationsThe supplier shall comply with national and inter-

national laws, regulations, and generally accepted

practices regarding both suppliers’ own operations

as well as products sold to Metso. Compliance with

laws, regulations and Metso’s requirements shall

always be considered as absolute minimum level.

To ensure compliance with laws and regulations, the

Supplier shall as a minimum

1. Develop a system to ensure awareness of

changes in laws and regulations affecting their

operations or products sold to Metso

2. Correct all identified non-conformities on own

initiative

3. In case non-conformities affect products

already sold and delivered to Metso, inform

Metso of them immediately and correct the

non-conformities in line with underlying

contracts

3. Fair competition and compliance with anti-trust legislationThe supplier shall comply with the competition

legislation of the countries where they operate.

To ensure fair competition and compliance with

anti-trust legislation, the Supplier shall as a minimum

1. Not disclose, seek from or exchange with com-

petitors any commercially sensitive information

such as price, capacity, production costs,

customers or commercial strategies

4. Rejection of corruption and briberyThe supplier must not become involved in business

relationships that may lead to conflicts of interest.

The supplier must not pay bribes or other illegal

payments to obtain or retain business or to facilitate

favorable decisions or services from authorities. The

supplier must not participate in or support money

laundering under any circumstances.

To prevent corruption and bribery, the Supplier shall

as a minimum

1. Not offer, give, demand or accept any undue

advantage or gifts exceeding normal standards

of hospitality

2. Retain from participating in any suspicious

transactions, the legitimacy of which cannot be

guaranteed

3. Not make any facilitation payments except in

the event of imminent threat to health or safety


5. Transparency and opennessThe suppliers shall provide to Metso information

concerning the criteria for sustainable development

and their business with Metso. The suppliers shall

also report any deficiencies that may appear in the

information they provide.

To promote transparency and openness, the Supplier

shall as a minimum

1. Provide to Metso information regarding

occupational health and safety, environmental,

social responsibility and other relevant KPIs as a

minimum on request

2. If requested, provide to Metso information

regarding the type and origin of raw materials

used in the products, and location of product

manufacturing

3. Provide to Metso any other relevant informa-

tion that is required to carry out the planned

business activities

6. Product stewardshipThe supplier shall allocate adequate resources and

the required competence for reaching the right level

of quality. This includes actions for ensuring both

cost-efficiency and the continuous improvement

of quality. The supplier shall strive to continuously

improve their products and services, including their

impacts to occupational health and safety, and

environment.

To ensure safety, quality and environmental efficien-

cy of products, the Supplier shall as a minimum

1. Implement a quality management system

meeting the core requirements of ISO 9001

2. Identify and manage the occupational health

and safety, and environmental impacts of prod-

ucts throughout their entire life cycle

3. Ensure that products do not contain hazardous

materials restricted by European or national

legislation, or other hazardous materials speci-

fied by Metso. If materials subject to reporting

requirements are found in products, inform

Metso of them following Metso’s guidelines.

Suppliers of metal scrap or products arising

from metal scrap shall conduct systematic

radiation measurements in line with Metso’s

guidelines

4. Ensure that product documentation is pre-

pared in line with national and international

requirements as well as Metso’s specifications,

and made available for Metso

Metso expects that its suppliers follow ethical and sustainable business principles. This is the starting point for entering into and maintaining all our business relationships.


Sustainable development criteria for suppliers

7. Intellectual property and company assetsThe supplier shall safeguard Metso’s intellectual

property and confidential information, and must

not allow access to them by outsiders. The supplier

shall not sell to Metso any products violating the

intellectual property of any third parties.

To protect Metso’s intellectual property and respect

that of third parties, the Supplier shall as a minimum

1. Never disclose any of Metso’s intellectual prop-

erty to any third parties without prior written

approval from Metso

2. Ensure that Metso’s intellectual property is

sufficiently protected from theft, unauthorized

copying or other forms of breach

3. Develop and maintain a system for ensuring

that any products designed by the Supplier do

not violate intellectual property of any third

parties

8. Human rightsThe supplier shall comply with the principles of the

UN Declaration of Human Rights and the Declaration

of Fundamental Principles and Rights at Work by

the International Labour Organization (ILO), and the

Children’s Rights and Business Principles developed by

UNICEF, the UN Global Compact and Save the Children.

The supplier shall sign up to and report to relevant vol-

untary codes and initiatives, including but not limited

to UN Global Compact, which support development

of responsible business practices. Suppliers must retain

from all business activities that directly or indirectly

violate human rights. This includes the use of products

manufactured under inhumane circumstances.

To demonstrate respect towards human rights, the


1. Not engage in or support discrimination in hiring,

compensation, training opportunities, promotion,

termination of employment, or retirement based

on, but not limited to, race, caste, national origin,

religion, disability, gender, sexual orientation,

union membership or political affiliation

2. Not utilize forced or bonded labor, or child labor.

The supplier shall not utilize recruitment meth-

ods or forms of employment that are associated

with forced labor

3. In case forced, bonded or child labor has been

utilized prior to doing business with Metso, efforts

must be taken to remove the affected employees

from work, and to the extent possible, help them

to adequate supporting services to prevent them

from ending up in a similar or worse situation

4. Ensure that employees’ freedom of forming and

joining worker unions of their own choice is not

limited beyond legal limitations

Metso’s core expectations with regards to ethical and sustainable business conduct are described by the criteria of sustainable development for suppliers. Metso requires its suppliers to adhere to these criteria.


9. Occupational well-being and safetyThe supplier shall provide a safe, healthy, and

well-managed working environment and prevent

accidents and injuries through policies and actions.

For this, the supplier must implement an adequate

management system including, but not limited to,

training, compilation of health and safety statistics,

investigation of accidents, and identification and

management of risks in the work place.

To prevent work related accidents and illnesses, the


1. Implement and document a management

system meeting the core requirements of

OHSAS 18001

2. Work according to practices as a minimum

equivalent to Metso’s Minimum Safety

Standards

3. Systematically identify all work related hazards

and analyze the risks. Measures to minimize

and control the risks must be defined in ac-

cordance with the hierarchy of hazard control

10. Protection of the environment and abatement of climate changeThe suppliers shall strive towards reducing the use of

raw materials and energy as well minimizing waste

and emissions in both their operations and products

sold to Metso. Supplier shall strive to avoid all

environmental incidents and comply with applicable

environmental legislation.

To protect our common environment, the Supplier

shall as a minimum

1. Implement and document an environmental

management system meeting the core require-

ments of ISO 14001

2. Maintain sufficient measures to prevent envi-

ronmental incidents

3. Limit the adverse environmental impacts

through adequate waste management, and

pollution control and prevention

11. Supply chain managementThe supplier shall communicate Metso’s require-

ments in their supply chain to ensure that their sup-

pliers do not practice business in a way that conflicts

Metso’s commitments. Supplier shall ensure that

their supply chain is based upon similar ethically, en-

vironmentally and financially responsible principles.

To ensure proper supply chain management, the


1. Cascade Metso’s requirements related to sus-

tainable development down in their respective

supply chain

2. Develop sufficient mechanisms for ensuring

suppliers’ compliance with the related require-

ments

The goal of the common criteria is to support Metso’s supplier network in developing matters related to sustainability and to harmonize the company’s internal procedures.

“Sustainability is about stabilizing the currently disruptive relationship between earth’s two most complex systems - human culture and the living world.”

-Paul Hawken

Metso Corporation | Fabianinkatu 9 A, PO Box 1220, FI-00101 HelsinkiTel. +358 20 484 100 Fax +358 20 484 101 | www.metso.com

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Metso sustainability handbook

Documents

Transcript of Metso sustainability handbook