Climate Change Data

Billerud AB

Climate Impact & Sustainability Data (2013, 2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022, 2023)

Reporting Period: 2013

Environmental Metrics

Total Carbon Emissions:105,000 tonnes (fossil CO2)
Renewable Energy Share:97% of fuel
Total Energy Consumption:55,566 TJ
Water Consumption:217 million m3
Carbon Intensity:34 kg CO2e/tonne product (from fuel), 53 kg CO2e/tonne product (total)

ESG Focus Areas

  • Functional and resource-efficient packaging solutions
  • Renewable raw materials from sustainable forestry
  • Environmentally adapted production
  • Committed employees in safe workplaces
  • Doing business responsibly
  • Active role in the community

Environmental Achievements

  • Reduced fossil CO2 emissions from manufacturing by 28%
  • Reduced energy consumption per tonne of product by over 10%
  • Reduced wastewater emissions for cleaning by over 30% (20 million m3) in Gävle
  • Reduced emissions of organic material (COD) to the recipient water body by 25% (2,800 tonnes) in Gävle

Social Achievements

  • Reached target for increasing the number of female employees and managers
  • Reached target for reducing work-related accidents leading to sick leave
  • Increased proportion of employees covered by cooperation in formal groupings (collaboration councils, safety committees, safety groups) to 89%

Governance Achievements

  • Implemented new core values
  • Implemented new policies on anti-corruption and competitiveness
  • Established a diversity group to coordinate work on diversity issues

Climate Goals & Targets

Long-term Goals:
  • Phase out fossil fuels from production
  • Achieve zero work-related accidents leading to sick leave
Medium-term Goals:
  • Reduce emissions of fossil CO2 in industry to 30 kg/tonne product by 2020
  • Increase proportion of female employees and managers
  • Achieve zero work-related accidents leading to sick leave
  • Increase proportion of sales accounted for by new products to 20%
Short-term Goals:
  • Reduce energy consumption per tonne of product by approximately 2%
  • Increase number of suppliers visited and audited to 15

Environmental Challenges

  • Managing development with a broad scope of sustainability
  • Meeting stricter limits on emissions to water and air (EU Industrial Emissions Directive)
  • Addressing food waste in the supply chain
  • Reducing emissions from transport
Mitigation Strategies
  • Sustainability strategy with six focus areas and measurable targets
  • Developing strategies to meet stricter emission limits, potentially involving new investments
  • Developing smart, functional packaging solutions to reduce waste
  • Prioritizing transport solutions with low emissions, increasing rail transport, and collaborating with transporters to minimize emissions

Supply Chain Management

Supplier Audits: 10 suppliers audited in 2013

Responsible Procurement
  • Risk analyses
  • Supplier evaluations
  • Assessments of natural assets
  • Code of Conduct
  • UN Global Compact principles
  • Purchasing policy
  • Supplier evaluation model (to be implemented in 2014)

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products
  • Replacing plastic packaging with renewable paper-based materials

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 14001, ISO 9001, OHSAS 18001 (plants outside Sweden)

Third-party Assurance: Ernst & Young AB

Sustainable Products & Innovation

  • SoliQ™ Air paper-board
  • FibreForm®
  • Tetra Recart

Awards & Recognition

  • PIDA – BillerudKorsnäs Packaging Design Award
  • SPICE (Sustainable Packaging & Innovation Communication Event)
  • UK Packaging Awards (Innovation of the Year)
  • WWF Environmental Paper Company Index 2013 (recognized for leadership in transparency)
  • Supplier of the Year (Holcim)

Reporting Period: 2015

Environmental Metrics

ESG Focus Areas

  • Sustainability
  • Innovation
  • Climate Change
  • Responsible Value Chain

Environmental Achievements

  • BillerudKorsnäs’ emissions of fossil CO2 from production fell by 9% in 2015
  • New Billerud Flute® improved the material’s strength by up to 8%, enabling customers to manufacture equally strong boxes with considerably less material use.
  • Developed a new type of barrier for liquid packaging board that is CO2 neutral, resulting in a significant lower carbon footprint (e.g., 28% less CO2 for the combiblocSlimline 1000 ml format).

Social Achievements

  • Increased the number of development projects by 25%
  • Doubled the number of employees in research and development
  • Launched a diversity and inclusion initiative

Governance Achievements

  • Established new financial targets for 2016 onwards based on growing stability in underlying results.

Climate Goals & Targets

Long-term Goals:
  • Long-term target for organic growth of 3–4% per year
Medium-term Goals:
  • 20% of turnover will be generated by new products by 2020

Environmental Challenges

  • Disruptions to production following complex rebuilds and expansions, particularly evident during Q4 in Frövi.
  • Closure of non-integrated production in Tervasaari, Finland.
Mitigation Strategies
  • Limiting the number of major investments in 2016 to allow those already implemented to reach planned capacity and performance levels.
  • More meticulous investment planning and developing the partnership with contractors.
  • Investigating the possibility of moving the machine from Tervasaari to Skärblacka to improve efficiency.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4

Third-party Assurance: Externally audited

Sustainable Products & Innovation

  • New Billerud Flute®
  • FibreForm®
  • Axello Zap
  • D-Sack

Awards & Recognition

  • Gold rating by EcoVadis (two consecutive years)
  • CDP’s A List

Reporting Period: 2016

Environmental Metrics

Total Carbon Emissions:4157 kt CO2e (direct) + 30.8 kt CO2e (indirect)
Renewable Energy Share:97.5%
Total Energy Consumption:14665 GWh
Water Consumption:194 million m3
Waste Generated:62745 tons
Carbon Intensity:29.2 kg CO2e/tonne product (fossil fuels)

ESG Focus Areas

  • Sustainable forestry
  • Climate change
  • Resource efficiency
  • Workplace safety
  • Diversity and inclusion
  • Responsible supply chain
  • Customer value creation
  • Innovation

Environmental Achievements

  • Reduced water consumption by 35% at Beetham production unit
  • Axello ZAP packaging system launched, producing 65% less CO2 emissions than equivalent plastic packaging
  • 97.5% renewable bio-energy used in production
  • Improved environmental situation at Swedish paper mills over 50 years

Social Achievements

  • Increased employee commitment according to employee survey
  • 1512 weeks of work experience provided to young people and migrants
  • Participation in UN Global Compact
  • Gold rating by EcoVadis for sustainability

Governance Achievements

  • Compliance with Swedish Code of Corporate Governance
  • Implementation of Enterprise Risk Management (ERM) process
  • Establishment of a whistleblower function

Climate Goals & Targets

Long-term Goals:
  • Fossil-free production
  • Increase proportion of certified wood raw material
Medium-term Goals:
  • Achieve 20% sales from new products
  • Reduce greenhouse gas emissions from transport
Short-term Goals:
  • Reduce water consumption
  • Reduce fossil CO2 emissions

Environmental Challenges

  • Production disruptions affecting growth and availability
  • Meeting growing sustainability standards
  • Increased competition in the packaging market
  • Political and regulatory risks
  • Establishing in new markets
  • Product safety issues
  • Effective implementation of strategic plans
  • Energy price risk
  • Environmental impact and license renewal
  • Customer dependence and credit risk
  • Financial risks (currency, interest rate, credit)
Mitigation Strategies
  • Intensive work to ensure maximum production availability
  • Investments in production structure to improve efficiency, quality, and sustainability
  • Expansion in the value chain to offer total packaging solutions
  • Dialogue with decision-makers and participation in industry associations
  • Process for establishing in new markets, including risk assessment and local expertise
  • Quality controls and insurance to manage product safety risks
  • Ongoing development process for Group strategies
  • Electricity self-sufficiency, hedging, and energy efficiency measures
  • Certified environmental management systems, dialogue with authorities
  • Diversification of customer base, credit control guidelines, insurance
  • Currency hedging, interest rate derivatives, credit risk management

Supply Chain Management

Supplier Audits: 60.7% of purchasing value covered by supplier assessment in 2014-2016

Responsible Procurement
  • Compliance with BillerudKorsnäs’ Code of Conduct and international standards
  • Supplier assessment process

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G4, Core level

Certifications: ISO 9001, ISO 14001, ISO 50001, FSC®, PEFC™

Third-party Assurance: KPMG

UN Sustainable Development Goals

  • 8, 12, 13, 14, 15

BillerudKorsnäs' business aligns with these SDGs through its sustainability targets

Sustainable Products & Innovation

  • Axello ZAP packaging
  • New Billerud Flute
  • BillerudKorsnäs White cartonboard

Awards & Recognition

  • Dow Jones Sustainability Europe Index
  • CDP Climate A List
  • EcoVadis Gold rating
  • Pentawards gold and bronze awards

Reporting Period: 2017

Environmental Metrics

Total Carbon Emissions:89,700 tonnes CO2
Renewable Energy Share:97.2% of total fuel use
Total Energy Consumption:5.34 MWh/tonne product

ESG Focus Areas

  • Responsible value chain
  • Increased customer value
  • Sustainable and bio-based society

Environmental Achievements

  • 97.2% biofuel used in own operations
  • Emissions from transport of wood raw material and finished products continued to fall
  • Improved climate performance of 15% compared with the previous year’s EPD (Environmental Product Declarations)

Social Achievements

  • Number of female employees increased in line with the target
  • Number of work-related accidents fell to 1.4 per 100 employees
  • 248 young people and newly arrived migrants carried out a total of 1 324 weeks of work experience

Governance Achievements

  • No complaints about breaches of human rights or incidents involving discrimination or corruption were reported
  • No significant fines or other sanctions due to breaches of the law were imposed on the company in 2017
  • Implementation of a new Group-wide pay survey process

Climate Goals & Targets

Long-term Goals:
  • In 2050, emissions of greenhouse gases from BillerudKorsnäs’ production and purchased energy are to be at least 74% lower than in 2016.
  • In 2050, emissions of greenhouse gases from sources not owned or controlled by BillerudKorsnäs are to be at least 70% lower than in 2016.
Medium-term Goals:
  • In 2030, emissions of greenhouse gases from BillerudKorsnäs’ production and purchased energy are to be at least 59% lower than in 2016.
  • In 2030, emissions of greenhouse gases from sources not owned or controlled by BillerudKorsnäs are to be at least 30% lower than in 2016.
Short-term Goals:
  • Proportion of purchasing value with supplier assessment: 72.0% per three-year cycle
  • Number of private forest owners certified through BillerudKorsnäs: 160

Environmental Challenges

  • Unplanned stoppages that occurred during the year impacting production stability and availability
  • Recurring disruptions to production and availability problems
  • The target for climate targets was not met, partly due to the clear correlation between the lack of production stability and emissions of carbon dioxide from fossil fuels
Mitigation Strategies
  • Three initiatives aimed at safeguarding availability and quality: stronger organization focusing on health and safety, production stability, and product quality
  • Major investments in strengthening the Group-wide functions by adding more resources and skills
  • Internal initiatives to map energy use and implement energy-saving measures

Supply Chain Management

Supplier Audits: 337 suppliers evaluated (70.2% of purchasing value over a three-year period)

Responsible Procurement
  • Compliance with BillerudKorsnäs’ Code of Conduct and international standards
  • Supplier evaluation process including risks of modern slavery

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 90001, ISO 14001

Third-party Assurance: Externally audited

UN Sustainable Development Goals

  • SDG 8
  • SDG 12
  • SDG 13
  • SDG 14
  • SDG 15

BillerudKorsnäs has the greatest opportunity to influence SDGs 8, 12, 13, 14 and 15, which can be linked to existing activities and targets within BillerudKorsnäs.

Sustainable Products & Innovation

  • QuickFill Clean cement sacks
  • Sterikraft® Protect AR medical paper
  • Axello Kraft sugar packaging
  • D-Sack compostable cement sack

Reporting Period: 2018

Environmental Metrics

Renewable Energy Share:96.7% of total energy use
Total Energy Consumption:5.26 MWh/tonne product

ESG Focus Areas

  • Climate change
  • Forestry
  • Recycling
  • Workplace safety
  • Diversity & Inclusion
  • Supplier responsibility
  • Responsible business conduct

Environmental Achievements

  • Reached 96.7% renewable bioenergy in production
  • Reduced greenhouse gas emissions from transport of wood raw material and finished products to 11.8 g per tonne km (target 18.6 g/tonne km)
  • Launched climate-positive D-Sack® for cement
  • Achieved 100% biodiversity index for nature conservation measures
  • Increased number of group-certified forest owners to 175 (target 160)

Social Achievements

  • Improved gender balance, with 23.1% female employees (target 22.5%)
  • Reduced lost time injuries per million worked hours (LTIFR) to 7.2 (target 5.8)
  • Implemented Sustainable Leadership programme
  • Launched diversity and inclusion action plan
  • Offered 1070 weeks of work experience (target 1500)

Governance Achievements

  • Implemented new organisational structure with three divisions
  • Established a Group-wide safety framework
  • Updated whistleblower system
  • Conducted 79 supplier audits in Asia (38 new suppliers), with no serious breaches of zero-tolerance policies

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050
Medium-term Goals:
  • Reduce total greenhouse gas emissions from production and purchased energy by 59% by 2030 and 74% by 2050 (base year 2016)
  • Reduce emissions of greenhouse gases from sources not owned or controlled by BillerudKorsnäs by 30% by 2030 and 70% by 2050 (base year 2016)
  • Reduce energy consumption to 5.20 MWh/tonne product by 2020 and 5.10 MWh/tonne product by 2023 (base year 2013)
  • Reduce emissions of fossil CO2 in the manufacturing process to 30.0 kg/tonne product by 2020 and 25.0 kg/tonne product by 2023 (base year 2013)
  • Reduce emissions of greenhouse gases from transport of wood raw material and finished products to 17.5 g/tonne km by 2020 and 17.0 g/tonne km by 2023 (base year 2016)
Short-term Goals:
  • Reduce accidents resulting in absence per million hours worked (LTIFR) to 4.3 by 2019, 3.2 by 2020, and 1.5 by 2023
  • Increase proportion of women in total to 24% by 2019, 25% by 2020, and 28% by 2023
  • Increase proportion of female managers to 24% by 2019, 25% by 2020, and 29% by 2023
  • Increase proportion of purchasing value covered by supplier assessment to 73% by 2019, 75% by 2020, and 80% by 2023
  • Increase number of group-certified forest owners to 180 by 2019, 200 by 2020

Environmental Challenges

  • Production disruptions and start-up problems
  • Wood shortages due to high demand and extreme weather
  • Higher raw material costs (fibre and chemicals)
  • Overshooting target for fossil carbon dioxide emissions due to production disruptions and biofuel shortages
  • Increased competition in existing markets
Mitigation Strategies
  • Production Excellence programme to improve efficiency
  • Acquisition of Bergvik Skog Öst AB to secure wood supply
  • Pilot study to evaluate fossil-free alternatives and necessary investments
  • Continuous improvement of competitiveness through efficiency efforts and enhanced production structure
  • Market analysis to inform development decisions

Supply Chain Management

Supplier Audits: 129 suppliers assessed in 2018 (76.6% of purchasing value in three-year cycle); 79 audits in Asia

Responsible Procurement
  • Compliance with BillerudKorsnäs’ Code of Conduct, international standards, and legislation
  • Supplier assessment process
  • Focus on social aspects for employees (labour law, freedom of association, working hours, pay, safety)

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather (heavy snowfalls, extreme heat, forest fires)
  • Wood shortages
Transition Risks
  • Changes in consumer preferences
  • Regulatory changes (e.g., plastic bans)
  • Increased competition
Opportunities
  • Increased demand for renewable packaging materials
  • Development of sustainable products (e.g., paper bottles, paper batteries)

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 90001, ISO 14001, ISO 50001 (Swedish units)

Third-party Assurance: Externally audited

UN Sustainable Development Goals

  • SDG 8
  • SDG 12
  • SDG 13
  • SDG 14
  • SDG 15

Existing goals and activities are linked to specific sub-goals within SDGs 8, 12, 13, 14, and 15.

Sustainable Products & Innovation

  • D-Sack®
  • Axello ZAP
  • FibreForm®
  • Paper bottles (in development)
  • Paper battery (in development)

Awards & Recognition

  • Dow Jones Sustainability World Index (industry leader in Containers & Packaging)
  • CDP Forests A List
  • EcoVadis Gold rating
  • Carton of the Year and Save the Planet awards

Reporting Period: 2019

Environmental Metrics

Renewable Energy Share:96.8% of total energy use
Total Energy Consumption:15 TWh/year (approx.)

ESG Focus Areas

  • Climate impact
  • Materials for the future
  • Sustainable innovation
  • Safety first
  • Sustainable wood supply
  • Responsible supply chain
  • Engaging workplaces
  • Resource-efficient production
  • Community engagement
  • Responsible business

Environmental Achievements

  • Reduced total greenhouse gas emissions from production and purchased energy by 3% (target 59% by 2030)
  • 96.8% renewable bioenergy use in production
  • Launched several sustainable products (Pure Performance, Xpression E-Com, Repel Pure, FibreForm, etc.)
  • Developed a paper bottle in a joint venture with ALPLA

Social Achievements

  • Rolled out Sustainable Leadership program
  • Employee engagement index of 78%
  • Conducted 82 supplier audits in Managed Packaging, with no serious breaches of zero-tolerance issues
  • Provided 1206 weeks of work experience through internships

Governance Achievements

  • Adopted a Supplier Code of Conduct
  • Established a whistleblower system (Speak-Up Line), handling 8 cases in 2019
  • Updated the steering document framework to improve accountability and mandates
  • Completed a risk assessment of exposure to international sanctions

Climate Goals & Targets

Long-term Goals:
  • [object Object]
Medium-term Goals:
  • Reduce total greenhouse gas emissions from production and purchased energy by 59% by 2030
  • Reduce emissions of greenhouse gases from sources not owned or controlled by BillerudKorsnäs by 30% by 2030
  • Achieve 75% rail transport of products from production plants by 2030
Short-term Goals:
  • Ramp up production on KM7
  • Ensure safe and stable production
  • Strengthen profits and efficiency

Environmental Challenges

  • Higher raw material costs
  • Start-up effects of the new board machine at Gruvön (KM7)
  • Weakening market for sack paper and certain grades of kraft paper
  • Production disruptions
  • COVID-19 pandemic
Mitigation Strategies
  • Cost reduction and efficiency program (SEK 600 million savings by 2021)
  • Initiatives to ensure safe and stable production
  • Focus on delivering from recently completed investments
  • Strong balance sheet and position in resilient market segments
  • Contingency plans for COVID-19

Supply Chain Management

Supplier Audits: 122 suppliers assessed in 2019, 82 audits in Managed Packaging

Responsible Procurement
  • Supplier Code of Conduct
  • FSC® and PEFC™ Chain of Custody standards
  • EcoVadis assessments

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding (UK production unit)
Transition Risks
  • Availability and price of raw materials
  • Price of purchased energy
  • Market and technology shifts
  • Cost of greenhouse gas emissions trading and taxes
Opportunities
  • Increased demand for low-carbon fiber-based products

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001, ISO 14001, ISO 50001 (Swedish plants), ISO 22000 (Beetham plant)

Third-party Assurance: Externally audited

UN Sustainable Development Goals

  • Goal 7
  • Goal 8
  • Goal 9
  • Goal 12
  • Goal 13
  • Goal 14
  • Goal 15

The report details how initiatives contribute to these goals throughout the value chain.

Sustainable Products & Innovation

  • Pure Performance
  • Xpression E-Com
  • Repel Pure
  • FibreForm
  • Paper bottle
  • U-Bend Straw

Awards & Recognition

  • Industry leader in Containers & Packaging (Dow Jones)
  • Listed on Dow Jones Sustainability World Index
  • Second place in Dieline Awards (Plastic-Free category)

Reporting Period: 2020

Environmental Metrics

Renewable Energy Share:97%

ESG Focus Areas

  • Safety
  • Climate impact
  • Materials for the future

Environmental Achievements

  • Reduced CO2 emissions (Scope 1 & 2) by 10% since 2016
  • Total positive climate effect estimated at 5.4 million tonnes of carbon dioxide equivalents

Social Achievements

  • Launched a digital life cycle assessment tool to show customers the amount of carbon dioxide emissions and water used during the lifespan of packaging
  • Maintained leading position in the Dow Jones Sustainability Index for the third year in a row

Governance Achievements

  • Updated the Code of Conduct to make its content clearer with a focus on expectations and guidance for employees
  • Carried out a company-wide risk assessment of the Group’s corruption risks

Climate Goals & Targets

Long-term Goals:
  • Reduce greenhouse gases (Scope 1 and 2) by 59% by 2030
  • Reduce greenhouse gases (Scope 3) by 30% by 2030
  • Net zero emissions by 2050
Medium-term Goals:
  • Realize the majority of currently visible growth and profit opportunities by 2025
Short-term Goals:
  • Reduce accident rate
  • Increase customer satisfaction
  • Commercial ramp-up of new board machine at Gruvön
  • Achieve additional SEK 315 million in annual run-rate savings by the end of 2021

Environmental Challenges

  • Challenging market conditions in certain product segments (lower market prices)
  • Unacceptably high accident rate
  • Increased competition for wood supply
  • Regulations on single-use packaging
  • COVID-19 pandemic
Mitigation Strategies
  • Reduced raw material costs and efficiency measures
  • Implemented a cost and efficiency programme (SEK 335 million in structural savings)
  • Implemented a new organizational structure to pave the way for increased efficiency
  • Precautionary measures to prevent the spread of infection and to secure operations and deliveries
  • Postponed and successfully completed maintenance shutdowns in the autumn

Supply Chain Management

Supplier Audits: 320 (Group purchasing) + 42 (Managed Packaging) in 2020

Responsible Procurement
  • Supplier Code of Conduct (based on international standards and frameworks, including the UN Global Compact)

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding (UK production unit)
Transition Risks
  • Availability and price of raw materials
  • Price of purchased energy
  • Market and technology shifts
Opportunities
  • Shift in customer preference toward low-carbon fiber-based products

Reporting Standards

Frameworks Used: GRI Standards: Core option

Third-party Assurance: Externally audited

UN Sustainable Development Goals

  • Goal 8
  • Goal 9
  • Goal 12
  • Goal 13
  • Goal 14
  • Goal 15

The report details how BillerudKorsnäs' initiatives contribute to these goals through its sustainability targets.

Sustainable Products & Innovation

  • Pure Performance white top kraftliner
  • Recyclable Flow Wrap
  • FibreForm® reusable carrier bags
  • Xpression E-com paper for e-commerce bags
  • Paper-based bottles (Paboco®)

Awards & Recognition

  • Dow Jones Sustainability Index Industry Leader (Containers & Packaging category)

Reporting Period: 2021

Environmental Metrics

Renewable Energy Share:97%
Total Energy Consumption:5.1 MWh/tonne product

ESG Focus Areas

  • Safety
  • Climate impact
  • Materials of the future

Environmental Achievements

  • Reduced CO2 emissions (scopes 1 & 2) by 13% points since 2016; 3% points in 2021. Achieved a 50% reduction in CO2 emissions from secondary packaging for Oatly.
  • 97% renewable bioenergy used in production.

Social Achievements

  • Launched PureDecorX™, a new coated three-layer white kraftliner.
  • Launched two new low grammages of CrownBoard Prestige® cartonboard.
  • Reduced lost time injuries per million hours worked for own employees and contractors to 6.4.

Governance Achievements

  • Updated Code of Conduct launched and implemented.
  • New long-term strategy unveiled.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050.
  • Zero greenhouse gas emissions from outgoing transport by 2050.
Medium-term Goals:
  • All integrated mills to have fossil-free production by 2030.
  • 75% of land transport by rail by 2030.
  • Reduce greenhouse gas emissions (scopes 1 and 2) by 59% by 2030.
Short-term Goals:
  • Reduce accidents per million hours worked to 5.0 by 2022.

Environmental Challenges

  • Production disruptions at Gävle mill due to equipment damage and poor water quality.
  • Increased competition for wood raw materials.
  • Higher costs for energy, chemicals, and transport due to the war in Ukraine.
Mitigation Strategies
  • Investments in mill maintenance and development (SEK 1.5–1.7 billion annually).
  • Investment in a new soda recovery boiler at Frövi mill (SEK 2.6 billion).
  • Development of alternative sourcing strategies for wood.
  • Focus on mix, efficiencies, and price management to counteract cost inflation.

Supply Chain Management

Supplier Audits: 382 suppliers assessed for Group purchasing; 51 supplier audits conducted in Managed Packaging.

Responsible Procurement
  • Supplier Code of Conduct based on international standards and frameworks.

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding, water shortages
Transition Risks
  • Policy changes impacting wood raw material availability and price; changes in purchased energy price; market and technology shifts.
Opportunities
  • Development of energy-efficient products and processes.

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: FSSC 22000 (all mills)

Third-party Assurance:

UN Sustainable Development Goals

  • Goal 8
  • Goal 9
  • Goal 12
  • Goal 13
  • Goal 14
  • Goal 15

The report details how BillerudKorsnäs' initiatives contribute to these goals.

Sustainable Products & Innovation

  • CrownBoard Prestige®, PureDecorX™, FibreForm®, Xpression E-com

Awards & Recognition

  • Climate Prize from Tetra Pak; included in the Dow Jones Sustainability World Index for the fifth consecutive year.

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:90% of fuel mix (total)
Total Energy Consumption:5.3 MWh/tonne product (Europe)
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Safety
  • Climate impact
  • Materials for the future
  • Sustainable wood supply
  • Responsible supply chain
  • Engaging workplaces
  • Resource-efficient production
  • Community engagement
  • Responsible business

Environmental Achievements

  • Reduced fossil CO2 emissions in European production by 9% to 27.7 kg/tonne product
  • Installed a new electrical back-up steam boiler at Gruvön, reducing CO2e emissions by 8,000-9,000 tonnes per year compared to 2020 levels.
  • All European packaging materials are recyclable according to the PTS method.

Social Achievements

  • Launched Sustainable Leadership training in North America.
  • Launched Sustainable Employees program.
  • Donated SEK 5 million to UNHCR to support Ukrainian refugees.

Governance Achievements

  • Implemented the responsible business compliance programme, employee Code of Conduct and Supplier Code of Conduct, “Speak-Up Line” and related measures in North America.
  • Updated Supplier Code of Conduct.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050.
Medium-term Goals:
  • Reduce total emissions in Scope 1 and 2 by 59% (Europe) by 2030.
  • Reduce total emissions in Scope 3 by 30% (Europe) by 2030.
  • Increase outbound land transports by rail to 75% by 2030.
  • 95% of supplier spend with signed Supplier Code of Conduct documents by the end of 2025.
Short-term Goals:
  • Reduce water usage by 2030.
  • Increase risk observations to at least 3.6 per employee in European operations by 2023.
  • Achieve LTIFR under 1.5 (Europe).

Environmental Challenges

  • Slight increase in lost time injuries in European operations.
  • Increased energy prices in Europe due to the war in Ukraine.
  • Supply chain disruptions due to the COVID-19 pandemic and sanctions against Russia.
  • Higher costs for wood, energy and chemicals, particularly in Europe.
Mitigation Strategies
  • Increased risk observations, safety walks, and key safety performance audits.
  • Launched a new three-year efficiency enhancement programme targeting SEK 1.5 billion EBITDA uplift by the end of 2025.
  • Focusing on price and mix management to mitigate negative effects of challenging market conditions and cost inflation.
  • Scaling up the purchase of CO2e Emission Free Energy Credits (EFECs) to cover 100% of purchased electricity by 2024.
  • Implementing energy efficiency projects (e.g., recovery of warm water).
  • Replacing fossil fuels with biofuel.
  • Improving the use of internally generated biofuels and efficiency of recovery boiler, waste fuel boilers, and lime kiln.

Supply Chain Management

Supplier Audits: 399 suppliers assessed (Europe), 47 audits (Managed Packaging)

Responsible Procurement
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
  • Water shortages
  • Other disruptions
Transition Risks
  • Climate and policy changes impacting wood raw material and energy prices
  • Market shifts
Opportunities
  • Development of energy-efficient products
  • Bio-CCS

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 45001 (in progress for European mills), FSSC 22000 (all European mills)

Third-party Assurance: Externally assured

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Xpression E-Com
  • Xpression E-Com AutoPack
  • Xpression Wrap
  • Performance White Barrier
  • Paboco paper bottle

Awards & Recognition

  • Dow Jones Sustainability World Index (sixth year in a row)
  • Karriärföretag (Career Company) (fourth year in a row)
  • 4potentials (ranked #33)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:4,174,058 tCO2e (location-based), 3,873,359 tCO2e (market-based)
Scope 1 Emissions:778,627 tCO2e
Scope 2 Emissions:88,671 tCO2e (market-based)
Scope 3 Emissions:3,006,061 tCO2e
Renewable Energy Share:71.7% (total energy consumption)
Total Energy Consumption:23,335,322 MWh
Water Consumption:243 million m3
Waste Generated:151,418 tons (process waste), 967 tons (hazardous waste)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate impact
  • Safety first
  • Materials for the future

Environmental Achievements

  • Reduced direct and indirect GHG emissions (scope 1 and 2) by 16% and 13% respectively.
  • Inaugurated a new recovery boiler at Frövi mill, running entirely on biofuel.
  • 60% of purchased electricity in North America covered by EFECs, reducing emissions from fossil fuels.
  • Increased outbound land transports conducted by rail to 70% in Europe.

Social Achievements

  • Not disclosed

Governance Achievements

  • Not disclosed

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050.
  • Zero greenhouse gas emissions from outgoing transports by 2050.
Medium-term Goals:
  • Reduce direct and indirect GHG emissions (scope 1 and 2) by 42% by 2030.
  • Reduce indirect GHG emissions (scope 3) by 25% by 2030.
  • Increase outbound land transports conducted by rail to 75% by 2030 (Europe).
Short-term Goals:
  • Reduce water usage by 1% by the end of 2024.
  • Reduce wastewater flow to water treatment plant by 10% by 2030 (Sweden).

Environmental Challenges

  • Remaining emissions from North American operations (28% fossil fuel-based energy consumption).
  • Emissions from chemicals and transport.
  • Price increase in wood and pulp due to increased demand and physical risks (pest infections, droughts, forest fires).
  • Operational interruptions due to physical climate effects (flooding, water shortages).
Mitigation Strategies
  • Phasing out coal and tire-derived fuel from North American operations.
  • Substituting fossil fuel with biofuel.
  • Purchasing CO2e Emission Free Energy Credits (EFECs).
  • Working closely with suppliers to reduce emissions from chemicals.
  • Encouraging transition to a fossil fuel-free fleet.
  • Reducing and consolidating terminals and vehicle transports in downstream transports.
  • Optimizing value chain and building long-term relationships with wood suppliers.
  • Implementing climate adaptation measures (minimizing rutting damages, site-adapted forestry management).
  • Preventive actions to reduce risk of operational interruptions.

Supply Chain Management

Supplier Audits: 97.9% of wood suppliers in Europe signed Supplier Code of Conduct; 42.2% in North America.

Responsible Procurement
  • Billerud’s Supplier Code of Conduct
  • FSC® Controlled Wood, PEFC Controlled Sources
  • EUTR and US Lacey Act compliance

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
  • Drought
  • Flooding
  • Forest fires
  • Pest infections
  • Water shortages
Transition Risks
  • Policy and legislation changes
  • Changing market demand
  • Increased demand for wood as a resource for energy, materials and carbon storage
Opportunities
  • Increased demand for bio-based products
  • Demand for carbon capture and storage (CCS) and carbon capture and usage (CCU)
  • Increased focus on production efficiency

Reporting Standards

Frameworks Used: Science Based Targets initiative (SBTi), TCFD, CDP, GRI, EU Taxonomy

Certifications: ISO 14001, ISO 50001, FSC®, PEFC, SFI®, FSSC 22000

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Recyclable Flow Wrap

Awards & Recognition

  • Not disclosed