Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Customer Choice (Sustainable Products)
• Employee and Community Wellbeing

Environmental Achievements

• Operations contributed to a climate benefit of almost 7 million tonnes CO2e, equivalent to 15% of Sweden's emissions.
• Reduced fossil fuel use in production by 85% since 2005.
• Iggesund Mill and Workington Mill received Platinum ratings from EcoVadis for sustainability.
• Hallsta Paper Mill is entirely fossil-free.

Social Achievements

• Employee Net Promoter Score (eNPS) of 43, exceeding the benchmark of 13.
• High employee recommendation rate.
• Continued work on diversity and inclusion, aiming for a more even gender distribution among managers.

Governance Achievements

• Compliance with the Swedish Code of Corporate Governance.
• Annual Board evaluation.
• Remuneration committee established.

Climate Goals & Targets

Environmental Challenges

• Turbine breakdown at Workington Mill increased energy costs by SEK 330 million.
• Major maintenance shutdowns at Iggesund and Workington mills negatively impacted profit.
• Shortage of recycled fiber and record-high electricity prices constrained paper production.
• Spruce bark beetle infestation in southern Sweden.
• Supply chain disruptions due to the pandemic.

Mitigation Strategies

• Investments in increased capacity and processing of wood products.
• Development of alternative sourcing strategies.
• Electricity price hedging (70% of consumption hedged in 2021, 85% for 2022).
• Prioritized harvesting of spruce bark beetle infested forests.
• Implemented adaptations and measures to ensure a safe work environment during the pandemic.

Supply Chain Management

Supplier Audits: Suppliers associated with 85% of purchasing volumes signed the Supplier Code of Conduct; EcoVadis used to monitor supplier compliance.

Responsible Procurement

• Supplier Code of Conduct (covering sustainability, anti-corruption, human rights, health & safety, environment).

Climate-Related Risks & Opportunities

Physical Risks

• Storms
• Snow damage
• Fungal attacks
• Forest fires
• Insect damage

Transition Risks

• Changes in laws and regulations regarding forest management.
• Increased demand for renewable energy.

Opportunities

• Increased demand for wood products due to sustainable building trends.
• Expansion of wind power capacity.

Reporting Standards

Frameworks Used: GRI (Core level)

Certifications: PEFC™, FSC®, ISO 14001, ISO 50001, ISO 9001, ISO 45001

Third-party Assurance: PricewaterhouseCoopers AB

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Inverform paperboard (replacing plastic and aluminum food packaging)
• Bio E coating (degradable bioplastic for food packaging)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate change
• Biodiversity
• Sustainable building materials
• Renewable energy
• Circular economy
• Employee well-being
• Thriving rural communities

Environmental Achievements

• Reduced fossil carbon emissions from production by 93% since 2005.
• Achieved a climate benefit of 7.5 million tonnes of CO2e in 2023.
• Reduced waste sent to landfill from 6,300 tonnes in 2022 to 800 tonnes in 2023.

Social Achievements

• Employee Net Promoter Score (eNPS) of 25 (benchmark is 16).
• Reduced industrial accidents with more than 8 hours of absence (LTI) per million hours worked from 7.6 in 2022 to 5.2 in 2023.
• Active work towards zero discrimination and harassment.

Governance Achievements

• Compliance with the Swedish Code of Corporate Governance.
• Independent third-party assurance of sustainability reporting.
• Established a whistleblower function.

Climate Goals & Targets

Environmental Challenges

• Weak construction sector impacting demand for wood products.
• Lower-than-normal demand for paperboard due to economic slowdown and destocking.
• Structural decline in demand for paper.
• Lengthy permit processes for new wind farms.
• Local opposition to wind power construction.
• Balancing high growth with biodiversity preservation in forestry.
• Addressing diverse opinions on forestry's impact on biodiversity and carbon sequestration.

Mitigation Strategies

• Increasing capacity at Iggesund Sawmill and ramping up glulam and CLT production.
• Focusing on premium paperboard business growth.
• Investing in book paper and developing new packaging paper products.
• Actively participating in industry organizations to influence policy.
• Continuous development in forestry innovation, including using drones and AI.
• Implementing climate risk analyses and adaptation plans in forestry.
• Open dialogue with stakeholders to address concerns.

Supply Chain Management

Supplier Audits: Suppliers representing 90% of purchasing volumes comply with Supplier Code of Conduct. EcoVadis used to monitor supplier compliance.

Responsible Procurement

• Supplier Code of Conduct with sustainability requirements

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (fires, storms, flooding), fungal attacks, insect damage, shorter periods of frozen ground

Transition Risks

• Increased demands to reserve land for non-forestry purposes, changes in legislation affecting forestry and renewable energy production

Opportunities

• Increased growth in northerly forests due to warmer climate, increased demand for wood-based products

Reporting Standards

Frameworks Used: GRI Standards 2021

Certifications: ISO 14001, ISO 50001, ISO 9001, ISO 45001, FSSC 22000 (Iggesund & Workington Mills)

Third-party Assurance: PricewaterhouseCoopers AB

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• New packaging solution for ready meals with less plastic.
• Holmen INNR packaging paper.

Awards & Recognition

• EcoVadis Platinum rating for Iggesund Mill, Workington Mill, Braviken Paper Mill, and Hallsta Paper Mill.