Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Forestry
• Sustainable Innovation
• Resource Efficiency
• Responsible Employer
• Responsible Business

Environmental Achievements

• Net emissions of greenhouse gases to be less than zero
• Fossil-free production and transportation through efficient resource use and phasing out fossil fuels
• Increased CO₂ absorption by forests through advanced forest management and tree breeding
• Climate-smart products from processed forest products

Social Achievements

• Creating attractive and stimulating working conditions and an inclusive culture
• Preventing injury and ill health
• Promoting equality and inclusion
• Being an attractive employer

Governance Achievements

• Compliance with applicable laws, rules, and regulations
• Respecting and complying with competition rules, environmental legislation, labor laws, agreements, and other regulations
• Guiding business relationships with ethical standards based on Södra's values
• Including sustainability in investment and business decisions using a risk-based approach and monitoring sustainability criteria

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Verification of wood origin, rejecting deliveries from illegal logging, natural forests converted to plantations, areas with violated rights, high conservation value forests, and genetically modified trees

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainable forestry
• Climate and environment
• People and value chain

Environmental Achievements

• Achieved a net positive climate effect of 14.5 Mt CO2e
• Reduced GHG emissions from the production of packaging by 23% through the use of recycled plastic
• Launched Zero Fossil products with a fossil-free value chain
• Electrified the railway yard at Värö and tested hybrid forklifts

Social Achievements

• Launched a new campaign to highlight the people behind Södra's pulp
• Established a new position in CLT in Denmark
• Acquired Ture Johanssons Trävaru AB and AB Tenhults Impregneringsverk to strengthen customer offerings
• Launched the Grow leadership development program
• Conducted a health campaign throughout the Group and developed an online health and safety training course

Governance Achievements

• Formed the new Innovation business area
• Became a UN Global Compact signatory in 2020

Climate Goals & Targets

Environmental Challenges

• Spruce bark beetle damage
• Market uncertainties in the wake of the pandemic
• Political debate about forestry in Sweden and the EU
• Introduction of the EU Taxonomy
• Ongoing challenges due to the spread of COVID-19
• Supply chain disruptions
• High energy prices and supply bottlenecks

Mitigation Strategies

• Working hard to help members deal with spruce bark beetle damage
• Following market trends carefully
• Actively working with business policy initiatives
• Collaborating with various organizations
• Implementing major maintenance shutdowns in pulp mills
• Shifting to webcasts for communication
• Investing in the Grow leadership development program
• Strengthening ways of working and competence according to Lean methodology
• Improving recruitment process
• Introducing a wellness initiative

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions
• Reduced/uneven access to water
• Pest control problems
• Increased fire risk
• Changes to vegetation boundary and growing conditions
• Biological risks such as wildlife damage, root rot and fungal disease

Transition Risks

• Changes in policy decisions (tax legislation, environmental legislation, forest legislation, EU forest policy)
• Negative influence on public opinion

Opportunities

• Growing demand for climate-smart products
• Growing opportunities with circular products and business models

Reporting Standards

Frameworks Used: GRI Standards Core option, UN Global Compact

Certifications: ISO 45001, FSC®, PEFC

Third-party Assurance: Third-party assurance provider (PwC)

UN Sustainable Development Goals

• Goal 7: Affordable and clean energy
• Goal 8: Decent work and economic growth
• Goal 9: Industry, innovation and infrastructure
• Goal 11: Sustainable cities and communities
• Goal 12: Responsible consumption and production
• Goal 13: Climate action
• Goal 15: Life on land

Södra's operations contribute positively to several SDGs, while also having a negative impact on some. The report details the positive and negative impacts across various goals.

Sustainable Products & Innovation

• Biomethanol
• CLT building systems
• OnceMore® dissolving pulp
• Liquid biofuels
• Zero Fossil products

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced fossil carbon dioxide emissions by 8.8 million tonnes of carbon dioxide equivalents due to substitution.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Emissions from fossil fuels used in Södra's operations and value chain, production of input goods, and further processing of pulp into paper and textile products at customers.

Mitigation Strategies

• Investing in liquid biofuels and timber building systems and recycling textiles in pulp production to increase the substitution effect and reduce reliance on fossil fuels.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Researchers at Linnaeus University in Sweden

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Liquid biofuels, timber building systems

Awards & Recognition

• Not disclosed