[ Sustainability ]
[ Sustainability ]
Sustainable sourcing , sustainable buying
Sustainability is an absolute condition for a company ’ s success and , in the long run , for the continuity of its operations . By ensuring procurement based on financial , environmental , and social responsibility , it is possible for a company to influence its desired level of corporate sustainability actively .
Text & images by Stalatube Sami Kaijanen , Stalatube ’ s Purchase and Logistics Director .
In the future , product carbon emissions will become an increasingly prevalent product attribute that is considered in product comparison and purchasing decisions . Sustainability is also a strong driver of purchasing decisions in the manufacturing industry , including not only raw material suppliers but also transport and logistics services . Reliable and responsible sourcing is also necessary to meet high customer and stakeholder expectations , remain competitive , and manage risks .
Environmental sustainability At Stalatube , environmental sustainability is measured throughout the production chain . Therefore , the company considered it essential to identify where the bulk of its emissions come from and how they could be controlled . A study commissioned by
Tanja Pakarinen and Sami Kaijanen the company found that around 90 % of the carbon footprint of Stalatube manufactured products came from the raw materials . “ Our customers are interested in carbon footprint calculations because they can , in turn , significantly impact the carbon footprint of their products through their own sourcing strategy . It ’ s a multiple chain that accumulates the further up the supply chain you go towards the end user ,” explains Tanja Pakarinen , EQHS and Sustainability Engineer . The carbon footprint calculation under the GHG Protocol includes the mandatory Scope 1 and Scope 2 emissions , i . e . direct emissions from the factory and emissions from the production of purchased energy . Including Scope 3 emissions in the overall calculation is optional , but gives an accurate picture of the impact
of overall operations . Scope 3 is the largest in the emission structure of manufacturing companies , as it is for Stalatube ( 98.4 %). Indeed , one of the major contributors to Scope 3 emissions is material procurement . Stalatube , therefore , makes operational policies that reduce the company ’ s emissions and the emission factors of the finished products . These include , for example , replacing virgin raw materials with recycled material , which significantly reduces the carbon footprint of the raw material and further reduces the carbon footprint of Stalatube ’ s own product . Stalatube guarantees that at least 75 % of the raw material used to make its products is recycled . In practice , almost without exception , the level is over 80 %. This is based on choice , by only working with suppliers using more than 75 % recycled steel in their raw materials . The company also monitors the emissions from the raw materials it buys annually .
Economic and social sustainability When it comes to financial sustainability , it is essential to check and ensure that a supplier ’ s financial situation , regulatory obligations and other obligations are in order when the contract is signed . Social sustainability includes , for example , the ethics of the workforce and respect for human rights . Stalatube is working on an ethical code of conduct for suppliers which will be complete this year .
36 Stainless Steel World May 2024 www . stainless-steel-world . net