Supply chain

Goal

By the end of 2020, all key suppliers work with us to deliver on our Code of Conduct for Huhtamaki Suppliers

KPI	Performance in 2019
Supply chain due diligence system in place, covering ethical, social and environmental criteria	New system was developed, piloted and trained
All fiber sourced from recycled or certified sustainable sources	More than 98% of all fiber was sourced from recycled or certified sustainable sources

We work together with approximately 20,000 suppliers globally. We do business with large global suppliers as well as with smaller local suppliers. All suppliers are expected to comply with the Code of Conduct for Huhtamaki Suppliers.

Huhtamaki wants to advance sustainable management of forests. Our goal is that by 2020, all the fiber we use is sourced either from recycled or certified sustainable sources. Our recycled fibers are derived from either industrial sources (for example cutting waste from own paper cup manufacturing) or post-consumer recycled materials (for example used newspaper).

We use the NAVEX RiskRate tool to review our suppliers for different types of supply chain risk, including adherence with Code of Conduct for Huhtamaki Suppliers, and screening for adverse media, sanction lists, watch lists and Politically Exposed Persons lists. We are also a member of Sedex, one of the world's largest collaborative platform for sharing responsible sourcing data on supply chains. To harmonize the supplier assessment practices among business segments, we are developing Group-wide procedures for supplier evaluation and development.