Our supply chain

As a packaging converter, we buy raw materials and other items from external suppliers. This makes raw material suppliers an integral part of our value chain. Mostly, our manufacturing units take care of their sourcing independently, following the guidelines set by the Huhtamaki Group Code of Conduct.

Description Ambition KPI Performance 2015
We work to enhance environmental sustainability, social responsibility and ethical business practices in our supply chain. To identify our supply chain in detail and standardize sourcing practices across the Group. All key suppliers covered by Code of Conduct for Huhtamaki Suppliers. Approx. 2/3 of key suppliers covered by the Supplier Code.
 

The top purchases include our main raw materials, paperboard, polymers, recycled paper, films, and aluminum, which make up approx. 2/3 of our purchases. About 1/3 of raw materials are bought from the Group’s key suppliers, but in total we work with approx. 20,000 suppliers globally.

We source locally

Mostly, our manufacturing units take care of their sourcing independently, following the guidelines set by the business segment and the Huhtamaki Group Code of Conduct. However, we have identified sourcing as one of the areas where cross segment collaboration in information and best practice sharing may lead to a more optimal solution, both from an efficiency and risk management point of view. We have evaluated requirements for a Group-level “Know Your Supplier” process and will work towards harmonizing sourcing practices across the Group.

Read more on recycled paper sourcing

Raw material traceability is important

In food and drink packaging, product safety is of highest importance and makes an important contribution to people’s well-being. Related to our paperboard-based foodservice packaging, the legality and acceptability of the fiber origin, i.e. sustainable forestry, is vitally important. The European Union Timber Regulation aims at creating a legal framework prohibiting illegally harvested timber and products derived from such timber, including wooden fibers in the EU market.

Together with our suppliers, we have been adapting methodologies and tools to manage this risk. These tools include internationally recognized third-party certification systems such as the Forest Stewardship Council’s (FSC) Chain of Custody scheme and the Programme for the Endorsement of Forestry Certification (PEFC) Chain of Custody System.

In collaboration with our suppliers, we have created a completely certified trail of sustainable paperboard. Our paperboard packaging manufacturing units in Europe, Russia, Turkey, China and Oceania, as well as our molded fiber packaging manufacturing units in Europe have been certified according to PEFC or FSC Chain of Custody. A number of paperboard packaging manufacturing units in the US also hold FSC Chain of Custody certification.