responsible sourcing
At delfort, our procurement practices are built on mutual respect, open communication and close collaboration with suppliers. Through a standardized supplier management framework, we ensure transparency that enhances risk mitigation and strengthens partnerships. Sustainability is increasingly integral to our practices, helping improve the supply chain, manage business risks and deliver innovative solutions for our customers.
goals
performance
By 2030, 80% of our raw materials (pulp, fillers and chemicals) and packaging, by spend, used by our paper mills will be procured in line with our supplier management framework.
95% of our suppliers (by spend) signed our Supplier Code of Conduct.
90% of our suppliers (by spend) have undergone our performance evaluation.
100% of our suppliers (by spend) have undergone our risk assessment.
2024 in numbers
90%
of our suppliers (by spend) have undergone our performance evaluation
100%
of our suppliers (by spend) have undergone our risk assessment
89%
of our suppliers (by spend) were assessed by certified, independent CSR assessment agencies
95%
of our suppliers (by spend) signed our Supplier Code of Conduct
~6,000
suppliers worldwide
our responsible supplier management
Our supply chain is complex and characterized by diversity, as we work with approximately 6,000 vendors in Europe, Asia, America and Africa. We attach great importance to risk management and compliance with legal standards that ensure fair and safe working conditions, governance and environmental standards, not only in our own interest but also in the interest of our customers.
Our long-established supplier management framework ensures that all our suppliers adhere to our principles of ethics, integrity and respect for people and the environment. We accomplish this through our Supplier Code of Conduct, internal supplier risk assessment procedures and supplier performance evaluations.
Phase 1: Onboarding
A critical part of our regulatory framework is our due diligence process before entering into new business or operations. We use third-party screening processes and KYS to prevent us from doing business with sanctioned companies, entities or individuals. All suppliers are required to sign our Supplier Code of Conduct, which upholds the same standards as our own. This Supplier Code of Conduct covers the areas of business integrity, labor standards (such as freedom of association and collective bargaining, elimination of forced, compulsory and child labor), quality, health and safety of people and products, the environment and sustainability, and management practices.
Phase 2 : Supplier performance evaluation & audit process
Supplier performance is evaluated by our own lead buyers and quality managers according to a group-wide process with clear criteria. We evaluate our suppliers on criteria such as price, quality, capacity, certifications, creditworthiness, logistics infrastructure, supply chain security, and environmental and social standards. At least once a year, we use our internally developed supplier performance evaluation system to assess our key suppliers’ compliance with our standards. The results are shared and discussed with the supplier.
Additionally, we conduct audits with selected suppliers.
Phase 3: Supplier risk assessment
A systematic risk analysis process helps us ensure the availability of material, reduce possible dependencies and make objective purchasing decisions. In 2024, we strengthened our internal risk analysis procedure with a targeted focus on the areas of environmental risk, corruption risk and economic risk. If a supplier is found to have significant potential negative impacts, and the defined mitigation actions remain ineffective, we would terminate our relationship with the company (selective phase-out).
Phase 4: Supplier development
Our lead buyers analyze the results of the questionnaires and audits according to a clearly defined standard process. We share our evaluation results with each supplier, ensuring they receive insights specific to their own performance. If any areas for sustainability improvement are identified, we engage with the supplier to understand the risk areas and work together to define actions for improvement. Repeated failure to comply will result in the termination of the supplier relationship.
our actions in 2024
strengthening our risk assessment procedure
Together with our group-wide standardized and longstanding risk analysis methodology and multi-supplier strategy, we are able to ensure material availability, minimize dependencies and make objective purchasing decisions. In 2024, we strengthened our internal risk assessment procedure with a targeted focus on the following areas:
Environmental Performance Index (EPI)
The assessed risks relate to climate change (greenhouse gas emissions), environmental stewardship (air and water pollution, heavy metal exposure, waste), risks to the ecosystem (impairment of biodiversity and natural habitat). This drives targeted ESG risk mitigation efforts, including climate action (CO2 reduction, energy saving), waste management and environmental protection initiatives.
Corruption Perception Index (CPI)
The assessed risks relate to harming social security, non-transparent businesses, unreasonable requests. Our target-oriented risk mitigation includes implementing a Code of Conduct, compliance training regarding such suppliers and monitoring suspicious cases.
OECD Country Risk Classification
We use this classification for the assessment of economic risks like inflation, capital or exchange restriction, nationalization of private companies or political instability. Risk mitigation actions include checking the supplier’s financial stability, monitoring their economic situation (supported by online databases), and requesting a business contingency plan from suppliers where we have identified a financial risk.
Following our comprehensive risk analysis methodology, we derive a detailed risk matrix that guides our alignment with our production sites on subsequent steps and actions to maintain a proactive position in risk management, fostering continuous improvement and operational excellence across all areas. Our main objective is to proactively mitigate risks through close collaboration with suppliers, ensuring continuity and stability across our supply chain.
In 2024, we identified no incidents that required the termination of any supplier relationships.
enhanced supplier performance evaluation
In 2023, we had refined our supplier performance evaluation and audit process to include CSR criteria. Following comprehensive buyer trainings last year, we conducted the first assessments using the new system in early 2024. Our evaluations focus on whether suppliers uphold high standards in health, safety and security for their employees and in environmental issues, responsibly manage resources, comply with local regulations, national laws and international standards, and embrace corporate social responsibility. We classify suppliers according to their ratings from renowned agencies like EcoVadis, which considers their commitment to human rights, as well as their CO2 emissions performance, responsible sourcing and governance topics.
Our performance evaluation system rates suppliers based on a point system across various criteria. Suppliers are classified into one of five performance levels, leading to three final grades: A, B or C. We share our evaluation results with each supplier, ensuring they receive insights specific to their own performance.
For suppliers graded B or C, the buyer must engage with them to discuss strategies for improving their grade. Mitigation actions may include signing our Supplier Code of Conduct, providing CO2 data, or obtaining a rating from EcoVadis, among others. Suppliers are given one year to enhance their performance.
Training our procurement team on sustainability
Our purchasing staff receives comprehensive training on the criteria to be observed in negotiations with and assessments of suppliers. This includes the Supplier Code of Conduct, governance topics, supplier certifications, CO2 performance, FSCTM/PEFC, training on compliance with the EUDR, intermodal transport options, labor standards and much more. We place a high value on ensuring that our team is well trained and actively engages with suppliers. We also focus our supplier audits on these topics.
