Sustainability
Responsible Sourcing
Our partners and suppliers play a fundamental role in our performance and development. We carefully choose suppliers who share our values in terms of innovation, ethics, respect for human rights, and environmental responsibility. In today's interconnected industrial landscape, no company operates in isolation. The materials we source, the services we purchase, and the partners we work with all contribute to our overall impact. This means our commitment to sustainability extends far beyond our factory walls.
Our approach to supplier relationships, through our company Approforge, isn't transactional: it's strategic and collaborative. This isn't just about getting the best price or the fastest delivery. It's about building long-term relationships with companies that are working toward the same kind of future we are, companies that understand that sustainability isn't a constraint but an opportunity to innovate, differentiate, and build resilience for the decades ahead.
Why Supplier
Selection Matters
Our 2025-2026 carbon footprint shows that 86% of emissions come from Scope 3, with the largest contributor being purchased materials and primarily steel. This means we can't achieve our decarbonization goals without our suppliers transforming their operations alongside us.
But the importance of responsible suppliers extends beyond carbon. The ethics and practices of our supply chain reflect directly on Setforge. These partnerships define what kind of company we are, influence our reputation with customers, and affect our long-term resilience as regulations tighten.
86% of our carbon footprint comes from Scope 3 (supply chain)
Raw materials represent our largest emissions source
We value long-term partnerships built on shared values
STEEL
Our Largest Impact Opportunity
Steel represents the largest component of our carbon footprint within purchased materials. Traditional production from iron ore generates high CO₂ emissions per tonne of steel. This is why our steel sourcing strategy is critical to achieving our goals.
We're working to transition to 100% recycled steel from electric arc furnaces, which can reduce carbon intensity. This transition isn't immediate. There are quality considerations, supply constraints, and cost premiums.
But we're committed. We're engaging with steel suppliers investing in electric arc furnaces and renewable energy, participating in industry initiatives to scale up low-carbon steel, working with engineers to qualify recycled steel grades for more applications, and factoring carbon intensity into sourcing decisions.
Our supplier code of conduct
Our code applies to all purchases across the group: raw materials, subcontracting, tooling, testing services, and transport. These expectations reflect our commitment to responsible purchasing. We consider sustainability alongside traditional factors like quality, price, and delivery. This doesn't mean sustainability always trumps other considerations—we need suppliers who can deliver what we need competitively.
But sustainability is increasingly weighted in decisions. Between similar suppliers, we choose the one with stronger environmental performance. For strategic suppliers, we're willing to invest time helping them improve rather than immediately switching.
What we expect
From Evaluation to Partnership
Having a code of conduct is one thing, translating it into practice is another. Effective implementation requires systematic processes for evaluating potential suppliers before they join our supply chain, monitoring existing suppliers to ensure continued compliance and improvement, and working collaboratively to help partners overcome challenges and achieve better performance. Our approach balances rigor with pragmatism, recognizing that transformation takes time while maintaining clear standards that all suppliers must meet.
Assessment Phase
We request environmental certifications (ISO 14001, ISO 50001), sustainability reports, and carbon footprint data. Labor practices and safety records are reviewed. For strategic suppliers, we conduct site visits to verify practices firsthand.
Ongoing Monitoring
We conduct regular performance reviews, tracking progress against commitments through audits, data requests, and open dialogue. When suppliers consistently fall short despite support, we escalate concerns or find alternative sources.
Collaboration Opportunities
Successful relationships move beyond evaluation to genuine partnership through joint emission reduction projects or shared best practices. Long-term agreements include sustainability clauses, and we facilitate industry collaboration through associations.
A partnership approach
We recognize that transformation takes time and suppliers aren't at the same starting point. Our approach emphasizes collaboration over coercion. We work with existing suppliers to improve performance while seeking new partnerships with sustainability leaders. We're looking for genuine commitment to progress, not perfection on day one. For strategic suppliers, we offer longer-term contracts providing stability to justify investments in cleaner operations, share lessons from our own journey, and explore co-development opportunities for lower-carbon solutions that benefit both parties.
Beyond bilateral relationships, we engage with industry associations and multi-stakeholder initiatives. The shift to low-carbon steel, for example, requires massive capital investment, new supply chains for green hydrogen and renewables, and supportive policies, far beyond what any single company can achieve. By working collectively with other buyers, producers, technology providers, and policymakers, we can accelerate transformation of entire industries.
How We Support Supplier Improvement
Asking suppliers to improve their sustainability performance is only fair if we're willing to help them get there. We've developed several ways to support suppliers on their improvement journey, recognizing that many face resource constraints, knowledge gaps, or technical challenges that we may be better positioned to address.
Knowledge Sharing
Share sustainability journey insights, helping suppliers avoid costly mistakes and accelerate learning.
Clear Expectations
Transparent about requirements and timelines, allowing suppliers to plan investments with confidence.
Network Access
Connect suppliers with relevant networks, programs, and resources supporting sustainability efforts.
Data & Tools
Help develop capability in measuring and reporting environmental performance with templates.
Partnership
Offer longer contracts and increased volume for committed suppliers, providing business stability.
Do you want to know more?
Download our Supplier code of conduct
WOULD YOU LIKE TO KNOW MORE?
LET’S TALK ABOUT IT!
On our Blog
Cold forging vs. Hot forging: which process fits your part?
31/07/2026
Forging is a manufacturing process, which shapes a solid-phase metal workpiece by applying compressive forces on it.
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Developing a quality warm forging process
10/03/2026
Thanks to the automotive industry and its continuous development towards better, lighter and more cost efficient components, warm forging has gained greater importance. Alone or as a part of specia...
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The undoubted advantages of the process
10/03/2026
Forging is classified in hot, warm and cold, according to the temperature at which is performed.
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