Responsible supply chain
Our production units buy raw materials, transport, products, chemicals, energy and services. Working towards a sustainable supply chain means that all purchasing decisions must be made in line with principles of business ethics and comply with the sustainability criteria laid down.
Billerud makes high demands on suppliers, planners and timber purchasers. The fundamental requirements that apply to our suppliers are based on Billerud’s Supplier Code of Conduct together with international standards, current legislation and regulations. The Supplier Code of Conduct clearly sets out our expectations and minimum requirements and includes areas such as statutory compliance, business ethics, human rights and labour law, health and safety and the environment. Goals and activities to achieve a sustainable supply chain are integrated in the business plan for the purchasing function, with the ambition to improve the sustainability performance of both Billerud and our suppliers.
Read our Supplier Code of Conduct here.
Supplier evaluations
Billerud has processes for supplier evaluation and follow-up that are adapted to the type of purchase and supplier. In Europe we have routines to identify suppliers that are critical to the business, such as suppliers of direct material or who are deemed to have supply risks. More information about our purchasing processes can be found in our sustainability report.
Sustainability and compliance are important parts of the supplier evaluations. Not least in order to achieve our climate goals. Read more about how we target our supplier evaluations and carbon dioxide emissions within the supply chain on the Sustainability targets page.
Implementation of supplier Assessments in North America
We started a review of our North American supply chain in late 2022 to secure a common process for the Supplier Code of Conduct and supplier assessments, and integration of our operations and targets.
The transition to a fossil-free fleet is the way forward
The majority of Billerud’s inbound transports of wood raw material are mainly by road. For outbound transport, Billerud has greater opportunities to steer towards fossil-free alternatives as transport from the mills to our customers is well suited for rail. Billerud’s long-term goal is zero greenhouse gas emissions from outgoing transport by 2050. An important step in this direction is our target to increase the proportion of outbound land transports by rail to 75% by 2030. In 2022, 70.4% (67.3) of the outgoing land transports from our European mills travelled by rail. Together with carriers, we are pushing for the transition to a fossil-free fleet and will continue to actively choose the mode of transport and monitor developments in technology and fuel, railway expansion and the electrification of roads.
For more information about the distribution of transport, see our sustainability report.