Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable work environment
• Responsible production
• Sustainable business conduct

Environmental Achievements

• Reduced direct fossil oil consumption by 90% at Bäckhammar mill since 2003
• Reduced water use from 23.0 million cubic meters to 21.9 million cubic meters between 2018 and 2019
• Reduced plastic consumption by 12 tonnes annually at Bäckhammar in 2020
• Successfully implemented process improvements in the recovery boiler at Bäckhammar, reducing oil consumption
• Installed a new water pump at Säffle mill, reducing water sent to bio-purification
• Recycled broke at Åmotfors mill instead of transporting it externally
• Increased intermodal transports by five loads per month for iamKraft® paper to Germany

Social Achievements

• Maintained high employee attendance rates (over 96% at three Swedish mills in 2020)
• Achieved an employee satisfaction index (NMI) of 70 in 2019
• Introduced a whistleblower function in September 2020
• Distributed 20 “green cards” to employees in 2020, supporting chosen charities
• Introduced compulsory SSG safety training, achieving 98.5% completion in 2019
• Improved customer satisfaction index (CSI) from 83 in 2019 to 86 in 2020

Governance Achievements

• All employees signed the Code of Conduct in 2020
• Introduced a new management system, Kronan, in spring 2020
• Launched a digital paper selector for the Kraft business area in December 2020

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic impacting demand, particularly in the professional food sector
• Lower kraft paper prices compared to 2019
• Increased competition on the European kraft paper market
• Unplanned production stops at Bäckhammar mill
• Slower than planned ramp-up of production after maintenance stops
• Need to increase production capacity to meet growing demand

Mitigation Strategies

• Proactively adapted production volumes to weaker demand
• Maintained strong customer relationships
• Lowered input costs (fiber and pulp)
• Implemented safety measures during maintenance stops to avoid Covid-19 outbreaks
• Applied for extended production permits at Bäckhammar and Greåker mills
• Exploring replacing internal pulp production in Säffle with external sourcing
• Investing in increased capacity at Bäckhammar mill (SEK 1,200 m)

Supply Chain Management

Supplier Audits: 83 suppliers assessed in 2020

Responsible Procurement

• Supplier Code of Conduct
• Requirements on suppliers for FSC® and PEFCTM certified paper
• European emission standards class 5 engines for suppliers' trucks (minimum)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001, ISO 22000, FSC®, PEFCTM

Third-party Assurance: Öhrlings PricewaterhouseCoopers AB

UN Sustainable Development Goals

• Goal 8
• Goal 12
• Goal 15

Contribution to sustainable development goals through sustainable work environment, responsible production, and sustainable business conduct

Sustainable Products & Innovation

• Natural greaseproof paper (PFAS-free)
• Dry-moulded paper products (collaboration with PulPac)

Environmental Metrics

ESG Focus Areas

• Sustainable work environment
• Responsible production
• Sustainable business conduct

Environmental Achievements

• Reduced fossil fuel consumption at Säffle plant by more than 50 percent.
• Increased biofuel percentage at Bäckhammar mill to 98.7% in 2021.
• Reduced water consumption at Åmotfors mill by 35 percent in 2021.

Social Achievements

• Launched a whistleblower service in 2020.
• Partnered with Ung Verksamhet (Junior Achievement) to inspire children and young people.
• Maintained partnerships with local organizations and sports clubs.

Governance Achievements

• No deviations from the Swedish Corporate Governance Code reported.
• 96% of suppliers with significant contracts signed Nordic Paper’s Supplier Code of Conduct.
• Established a Remuneration Committee and an Audit Committee.

Climate Goals & Targets

Environmental Challenges

• Increased pulp and energy costs impacting profitability, especially in the Natural Greaseproof segment.
• Higher than target number of workplace incidents resulting in absence from work (21 incidents).
• Customer satisfaction index decreased slightly compared to the previous year (84 vs 86).

Mitigation Strategies

• Implemented restructuring at Säffle plant to increase efficiency and reduce costs.
• Strengthened focus on improving the work environment through additional resources and revised routines.
• Implemented a plan to intensify preventive and systematic work environment processes.

Supply Chain Management

Supplier Audits: 91 suppliers assessed in 2021

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Insect infestation
• Drought
• Forest fires

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Increased demand for sustainable packaging

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001, ISO 22000 (Säffle and Greåker), FSC® (FSC C102767), PEFCTM

Third-party Assurance: Öhrlings PricewaterhouseCoopers AB

UN Sustainable Development Goals

• Goal 8 (Decent Work and Economic Growth)
• Goal 12 (Responsible Consumption and Production)
• Goal 15 (Life on Land)

Analysis based on Agenda 2030 framework; focus areas support identified SDGs.

Sustainable Products & Innovation

• New oven-safe kraft paper

Environmental Metrics

ESG Focus Areas

• Sustainable work environment
• Reduced climate impact
• Products that support sustainability

Environmental Achievements

• Reduced carbon footprint by 5% compared with 2022
• Reduced nitrogen emissions by one third at Bäckhammar mill (2021-2023)
• Reduced sodium hydroxide dose in Åmotfors settling tank by around 90% in 2023
• Reduced oil consumption at Säffle plant by 35% compared with 2022

Social Achievements

• Reduced Lost Time Injury Frequency Rate (LTIFR) to 5.5 per million hours worked (target <9.0)
• Offered employees the opportunity to purchase a cycle as an employee benefit (63 employees participated)
• Started installing charging ports for electric vehicles at Scandinavian mills
• Increased customer rating for how products’ sustainability performance adds value to 4.49 on a 5-point scale

Governance Achievements

• No whistleblower incidents reported during the year
• Continued efforts to improve diversity and create harassment-free workplaces
• 50% of elected board members are women

Climate Goals & Targets

Environmental Challenges

• Softer market demand due to inventory reduction among customers
• Downward pressure on product prices
• Increased pulpwood prices due to reduced supply in the Baltic region
• Supply shortages for alternative bio-oils in Bäckhammar

Mitigation Strategies

• Limited production and sales volumes
• Purchased origin guarantees for part of electricity purchased in Norway
• Implemented various resource-conserving initiatives at production plants
• Used hydrogenated vegetable oil (HVO) for lorry and service vehicle transport

Supply Chain Management

Supplier Audits: 21 suppliers evaluated in 2023

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Floods, forest fires, insect infestation, drought

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Increased demand for sustainable packaging

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001, ISO 22000, SQF, FSC, PEFC

Third-party Assurance: KPMG AB

UN Sustainable Development Goals

• Goal 8 (Decent Work and Economic Growth)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Not disclosed

Sustainable Products & Innovation

• Paper-based alternatives to plastic packaging

Awards & Recognition

• Not disclosed