One of our greatest strengths in Holmen is that we own and produce our most important raw material ourselves, on our own lands, namely the trees we use to produce climate-smart products for our customers. Around half of the wood we use comes from our own forests.
In addition, we are one of Sweden's largest producers of renewable electricity from hydropower and wind power. We produce half as much electricity as we ourselves consume in our production.
We have 100 percent traceability and the raw material and energy that we buy in addition to our own production.
"The trees that grow, the water that rushes down the mighty rivers and the wind that blows through the treetops. This is the heart of Holmen, a business that is all about owning and refining our forests"
Our most important raw materials are wood and electricity, which we largely produce ourselves. In addition to these, our largest purchasing areas are input products, production materials and transport.
Holmen's group-wide purchasing function is to contribute to the company's long-term profitability through a sustainable supply of goods and services. The unit also has the task of evaluating and preventing risks in our supply chain. Purchasers are regularly trained in our purchasing policy, supplier code and our ethical guidelines for purchasing.
Holmen has been working with a code of conduct for suppliers for several years. The purpose of Holmen's Code of Conduct for Suppliers is to improve, among other things, the environmental impact and conditions for those who work within Holmen's value chain. The Code complies with the UNs guidelines for sustainable companies and requires our suppliers to respect internationally recognized principles of anti-corruption, human rights, work environment and environmental impact.
Holmen's code of conduct for suppliers is included in all purchasing agreements, and at the end of 2019, suppliers equivalent to more then 90 percent of Homen Group's purchasing volume had signed the code (private timber suppliers excluded).
“We have a holistic approach to responsible business and our work draws on the UN Global Compact. We see it as natural to support its ten principles on human rights, social and environmental responsibility, and anti-corruption.”
President and CEO of Holmen
We are proud of the sustainable production we have and are careful that our suppliers also produce their goods and services in a sustainable way.
Our basis is that both we and our suppliers are winning on cooperation to ensure a sustainable supply chain. That is why we work with our suppliers to develop their sustainability work.
The purpose of Holmen's code of conduct for the suppliers is to improve the environmental impact and also the conditions for those working in our supply chain. Therefore, it is important that our suppliers are given the opportunity to remedy deficiencies in the business. However, in the event of repeated failure to comply with the principles, the contract with the supplier may be terminated.
Our largest supplier categories consist of wood and electricity. Since Holmen is one of Sweden's largest producers of these, we have good insight into the risks that can be associated with this production. For the wood and electricity we buy, we use well-developed traceability mechanisms to ensure that it is sustainably produced.
In addition to suppliers of wood and electricity, we focus our supplier follow-up on our strategically important suppliers in input products, production materials and transport. Here, we use an external party, EcoVadis, to assess and follow up on suppliers' compliance with the code based on the areas of human rights & labor law, environment, business ethics and sustainable purchasing.