Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable Forest Management
• Resource Efficiency
• Emissions to water and air
• Fossil-free mills
• Sustainable Supply Chain
• Responsible Corporate Culture
• Accident-free work environment

Environmental Achievements

• Reduced fossil CO2 emissions by 6% compared to 2019
• 93% utilization of production side streams
• 86% of production run with fossil-free energy (Scope 1 and 2)
• High biodiversity stumps were created on approximately 84% of felling sites.
• Retention trees were left at 94% of all regeneration logging sites.

Social Achievements

• Workplace safety improved by 49%
• Ethics barometer resulted in a good ethics index score of 84.4%
• 69% of personnel completed Diversity, Equality and Inclusion e-learning course
• 96% of personnel completed Code of Conduct e-learning course

Governance Achievements

• Renewed Supplier Code of Conduct in late 2020
• Improved supplier and customer ‘Know your business partner’ processes
• Conducted a large-scale ethics barometer

Climate Goals & Targets

Environmental Challenges

• Decreased production due to COVID-19 pandemic and strikes
• Challenges in replacing fossil oil-based raw materials with fossil-free alternatives
• Need to improve internal sustainability data collection and its flow
• Large change required in the construction industry supply chain to accommodate for further wood-based solutions

Mitigation Strategies

• Developed alternative sourcing strategies
• Investing in new technologies and electrification
• Utilization of bio-based fuels
• Improving energy efficiency
• Implementing a new supplier assessment and audit model
• Deepening understanding of sustainability risks related to supply chains
• Dialogue with selected suppliers related to reductions of greenhouse gas emissions

Supply Chain Management

Supplier Audits: 33 on-site audits (13 third-party audits)

Responsible Procurement

• Supplier Code of Conduct
• Risk-based approach with risk analyses, background checks, supplier assessments and audits

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI (2016 and 2018), AA1000 Assurance Standard (AA1000 AS v3, 2020)

Certifications: PEFC™, FSC®, ISO 14001, ISO 50001, ISO 45001

Third-party Assurance: Mitopro Oy

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Textile fibres (in R&D phase)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Well-being
• Forests and wood
• Climate and environment
• Sustainable products

Environmental Achievements

• Reduced fossil-based carbon dioxide emissions by 22% per tonne produced compared to 2018.
• Increased the share of renewable energy in production to 87%.
• Utilized 93% of production side streams.
• Reduced process water use by 5.4%.

Social Achievements

• Launched the Metsä For All vision to define the desired workplace culture.
• Achieved Platinum-level recognition in EcoVadis’s sustainability and social responsibility evaluation for Metsä Fibre, Metsä Board, and Metsä Tissue.
• Metsä Board received CDP's A List in climate change mitigation, sustainable water resource use, and sustainable forests.
• Hired nearly 1,000 summer employees in Finland.

Governance Achievements

• Established a nature management program to improve the state of nature in Finland outside commercial forests.
• Implemented a new Supplier Code of Conduct.
• Conducted 55 non-compliance investigations.

Climate Goals & Targets

Environmental Challenges

• Replacing fossil oil-based materials in products and packaging.
• Achieving full traceability of raw materials and packaging.
• Managing the green liquor dregs generated in pulp production.
• Addressing deviations related to sanctions and suspected criminal activities uncovered during supplier background checks.

Mitigation Strategies

• Actively seeking and evaluating alternative raw materials.
• Investing in the systematic collection of traceability information.
• Participating in studies on new applications for green liquor dregs.
• Severing cooperation with suppliers showing deviations related to sanctions and suspected criminal activities.

Supply Chain Management

Supplier Audits: 29 supplier audits conducted by an external party in 2021 (focus on quality, environmental, and social responsibility).

Responsible Procurement

• Metsä Group Supplier Code of Conduct
• Risk analyses
• Background checks
• Supplier assessments and audits

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and processes.

Reporting Standards

Frameworks Used: GRI (2016 and 2018), UN Global Compact

Certifications: ISO 14001

Third-party Assurance: Mitopro Oy

Sustainable Products & Innovation

• Kuura textile fiber
• 3D fiber packaging

Awards & Recognition

• Finnish Circular Economy Award
• Finnish Quality Award

Environmental Metrics

ESG Focus Areas

• Securing biodiversity and ecologically sustainable forestry
• Mitigating climate change and reducing emissions
• Sustainable production and efficient use of resources
• Doing the right thing and respecting each other
• Promotion of occupational safety and well-being
• Innovativeness and open-minded cooperation
• The impact of forest-based bioeconomy for society

Environmental Achievements

• Reduced fossil-based carbon dioxide emissions (Scope 1) to 623,800 t from 652,000 t in 2021
• Reduced process water usage by 7.4% compared to 2018
• Utilized 96% of production side streams

Social Achievements

• Ethics index in ethics barometer reached 85.2%
• Introduced anonymous recruiting as the primary recruiting method
• Launched a Pulse survey to measure employee satisfaction and ethics

Governance Achievements

• 98% of purchases complied with the Supplier Code of Conduct
• Traceability of raw materials improved to 91.9%
• Revised Code of Conduct e-learning course released

Climate Goals & Targets

Environmental Challenges

• High energy costs
• Supply chain disruptions due to the war in Ukraine
• Increased cost inflation
• Shortage of birch logs due to the discontinuation of Russian operations
• Global economic uncertainty
• Slowdown in construction activity
• Decline in global economic growth and consumer purchasing power
• Climate risks (transitional and physical)
• Risks associated with the availability of financing
• EU regulation concerning forests
• Pulp market situation
• Credit risks and other counterparty risks

Mitigation Strategies

• Developed alternative sourcing strategies for raw materials
• Implemented measures to improve energy efficiency
• Increased the share of spruce plywood production
• Implemented measures to strengthen competitiveness and secure deliveries
• Implemented risk management strategies
• Hedging against currency and interest rate risks
• Utilizing a variety of financing sources
• Implementing ecological sustainability program
• Implementing nature program for non-commercial forests
• Continuous development of operations and adoption of new solutions

Supply Chain Management

Supplier Audits: 192 audits of wood suppliers, 3 audits of other suppliers, 97 sustainability assessments

Responsible Procurement

• Metsä Group Supplier Code of Conduct
• Know Your Business Partner process
• Sustainability assessments and audits
• Risk analyses and background checks

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather phenomena
• Changes in temperatures and rainfall

Transition Risks

• Transition to a low-carbon economy
• Changes in regulations

Opportunities

• Development of energy-efficient products
• New business opportunities in a changed operating environment

Reporting Standards

Frameworks Used: GRI Standards 2021

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

Third-party Assurance: PricewaterhouseCoopers Oy

UN Sustainable Development Goals

• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 12
• Goal 13
• Goal 15

Metsä Group’s sustainability targets support the UN Sustainable Development Goals.

Sustainable Products & Innovation

• Kerto® LVL
• Birch and spruce plywood
• Metsä Wood DURAForm® plywood
• Kuura textile fibre
• Muoto® fibre packaging

Awards & Recognition

• Metsä Fibre received the Global Award 7 Diamonds rating in the EFQM competition
• Metsä Board won the Finnish Circular Economy Award and the Finnish Quality Award

Environmental Metrics

ESG Focus Areas

• Climate change
• Biodiversity
• Resource efficiency
• Ethical corporate culture
• Employee wellbeing
• Safety at work
• Responsible operations
• Supplier sustainability

Environmental Achievements

• Designed an ultralight pizza box with up to 38% lighter weight and 50% lower carbon footprint compared to traditional solutions.
• Completed capacity expansion at Husum mill, operating with approximately 98% renewable energy.
• Completed development program at Kemi board mill, reducing energy consumption by 5% and water use by around 40% per tonne produced.
• Achieved a 99% share of fossil-free raw materials and packaging materials.
• Switching from conventionally used grades to fresh fibre paperboard can cut the carbon footprint of pharmaceutical packaging by up to 60%.

Social Achievements

• Adopted anonymous recruitment as the main recruitment method.
• Achieved 72% anonymous recruitment for vacancies open to all.
• 21% women in management positions.
• Kemi board mill achieved 456 consecutive safe working days.

Governance Achievements

• 100% implementation of ethics barometer measures.
• 97% traceability of raw materials.
• 99% of suppliers committed to the Supplier Code of Conduct.
• 68% supplier assessments and audits of core suppliers.

Climate Goals & Targets

Environmental Challenges

• Reducing fossil-based CO2 emissions and process water use.
• Improving energy efficiency.
• Minimising waste sent to landfills.
• Increasing the proportion of women in management positions.
• Achieving zero accidents at work.

Mitigation Strategies

• Investments in renewable energy sources and energy efficiency improvements.
• Process and wastewater treatment investments.
• Optimisation of water use and water recycling.
• Utilisation of production side streams.
• Implementation of safety management system and proactive safety measures.
• Anonymous recruitment and DEI initiatives.

Supply Chain Management

Supplier Audits: 68% of core suppliers audited in 2023

Responsible Procurement

• Supplier Code of Conduct
• Know Your Business Partner process
• Supplier assessments and audits
• Joint sustainability targets with partner suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Renewable energy transition

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 9001, ISO 14001, ISO 50001, ISO 45001, ISO 22000, FSSC 22000, PEFC, FSC®

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• 7, 12, 13, 15

Initiatives contribute to these goals through climate action, responsible resource use, and biodiversity protection.

Sustainable Products & Innovation

• Ultralight pizza box
• Dispersion coated barrier paperboard

Awards & Recognition

• 2024 WorldStar packaging competition award for ultralight pizza box