Transparent procurement is one of Valio’s key sustainability themes

Valio’s new guidelines for sustainable operations support the work done at our Purchasing unit. The promise is that the ingredients and materials used in our end products meet all of Valio’s sustainability requirements, ensuring our products are safe and ethically manufactured throughout the chain.

Sustainability comprises three distinct factors in Valio Purchasing, namely food safety, social sustainability, and environmental sustainability. The most important of these is food safety, on which Valio never compromises.

Together with R&D, the Food Safety Manager and Packaging Technology Manager we ensure the quality, safety and origin of each ingredient we purchase, employing Valio’s product information inquiry and food safety inquiry tools, along with supplier audits.

Social sustainability is based on Valio Group principles for corporate sustainability and operations

Valio is committed to the UN Declaration of Human Rights and the ILO Declaration on Fundamental Principles and Rights at Work, as well as fundamental values related to the environment and anti-bribery measures. We also require our ingredient and materials suppliers comply with the same principles. We use a standardised inquiry tool to assure our suppliers’ compliance with environmental sustainability.

We apply the international Sedex system to ensure locally ethical operations where suppliers in risk-bearing countries are concerned. We require that the producer is tied to the system (Supplier Ethical Data Exchange) and completes an SAQ (Self Assessment Questionnaire) on the manufacturing plant. Valio will also require that the ethical SMETA audit is performed on its key suppliers by a qualified external auditor. Valio has been a full member of Sedex since 2014.

For indirect purchasing, i.e. various materials and services not used directly in product manufacturing, purchased product safety is ensured through documentation. Environmental and social sustainability are ensured via the Valio Supplier Code of Conduct instructions, which are part of the purchasing agreement. The realisation of the Finnish Act on the Contractor’s Obligations and Liability when Work is Contracted Out is ensured by requiring suppliers to join the register of Suomen Tilaajavastuu Oy.

The key project in Purchasing for 2018 is the introduction of the SRM (Supplier Relationship Management) system and instructions. A new feature will be added to SAP to prevent the manufacture of end products unless all the documentation is in order.

For more information: https://www.valio.com/responsibility/2016/sustainability-report/