Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable forestry
• Carbon footprint reduction
• Renewable energy
• Resource efficiency
• Social impact
• Occupational safety

Environmental Achievements

• Achieved a negative carbon footprint in 2019.
• Reduced electricity usage per tonne of pellets produced by 3.6% compared to 2018.
• Reduced specific water consumption by 16.5% compared to 2018.
• Reduced specific diesel consumption by 5% compared to 2018.
• Generated 341.3 GWh of carbon-neutral green energy and 2,214 GWh of renewable heat energy.
• Planted 1,487,000 trees.

Social Achievements

• Increased employment by over 100 people compared to 2018.
• Supported more than 70 local initiatives with over 170,000 Euros in contributions.
• Implemented a new occupational safety monitoring system.
• Improved occupational safety at all factories.

Governance Achievements

• CEO Raul Kirjanen appointed to Estonian Government's innovation policy committee.
• Participation in forestry development plan and Estonian University of Life Sciences supervisory board.
• Mihkel Jugaste elected to SBP Standards Committee.

Climate Goals & Targets

Environmental Challenges

• Mild winters leading to increased forest pest damage.
• Fluctuations in biomass characteristics and calorific value.
• Need to improve energy efficiency at the Woodville plant (US).
• Increase in occupational accidents related to new areas of activity.

Mitigation Strategies

• Implemented sanitary cutting to eliminate storm, fungal, and insect damage.
• Continued development of technology and supply chains to maintain energy efficiency.
• Implementation of new occupational safety monitoring and improvement system.

Supply Chain Management

Responsible Procurement

• Adherence to standards of sustainable forestry; use of suppliers who meet all requirements.

Climate-Related Risks & Opportunities

Physical Risks

• Storm, fungal, and insect damage due to mild winters.

Opportunities

• Development of energy-efficient products and processes; biomaterials production.

Reporting Standards

Frameworks Used: RED 2 (Renewable Energy Directive 2)

Certifications: Sustainable forest management certificates (mentioned, but specific certifications not listed)

Third-party Assurance: Third-party auditors verified emissions of entire bioenergy value chain.

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)
• Goal 8 (Decent work and economic growth)
• Goal 15 (Life on land)

Initiatives contribute to these goals through renewable energy production, carbon sequestration, job creation in rural areas, and sustainable forest management.

Sustainable Products & Innovation

• Wood pellets
• Biomaterials (lignin and wood sugars)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Circular Economy
• Sustainable Forest Management
• Occupational Safety
• Community Investment
• Responsible Sourcing

Environmental Achievements

• Reduced carbon footprint for three consecutive years (7.08 gCO2-eq/MJ in 2020)
• Generated over 17% of all renewable bioelectricity in Estonia (217.5 GWh)
• Reduced specific water consumption per ton of production by 7.6% to 0.092 cubic meters
• Planted 1.28 million forest plants and afforested 139 hectares of former agricultural land

Social Achievements

• Supported more than 70 activities focusing on recreational and sports activities for young people in rural areas
• Sponsored initiatives with almost 397,000 euros in the Baltics and the US
• Main sponsor of Estonian men’s and youth volleyball teams
• Supported local governments during the COVID-19 crisis with nearly 54,000 euros

Governance Achievements

• Completed restructuring of the Graanul Invest Group into three areas: pellet production and energy, forestry, and biomaterials
• Implemented robust COVID-19 prevention measures, prioritizing employee safety
• Improved occupational safety indicator by 8% compared to 2019
• Reduced workplace accidents by 2 compared to 2019

Climate Goals & Targets

Environmental Challenges

• COVID-19 crisis causing delays in projects and market uncertainty
• Extremely mild winter in the Baltics hindering forestry work
• Need to source chemical-free raw materials for pellet production
• Less efficient technology in US plant compared to European plants
• Lack of common European methodology for carbon calculation in forestry

Mitigation Strategies

• Quick response to COVID-19, prioritizing employee safety and reorganizing work
• Careful selection of forestry work locations to minimize environmental impact
• Close monitoring of supply chains and production processes for chemical-free raw materials
• Continuous optimization and adjustment of production processes for cost-effectiveness
• Collaboration with the state and adherence to international rules for carbon accounting

Supply Chain Management

Responsible Procurement

• Sustainable forestry standards
• Compliance with ethical business practices

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Renewable Energy Directive (RED II), European Green Deal

Certifications: SBP, FSC® (FSC-C103815), PEFC, ISO

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 15 (Life on Land)

Initiatives contribute to these goals through sustainable biomass production, renewable energy generation, forest management, and biomaterial development.

Sustainable Products & Innovation

• Wood pellets
• High-purity lignin and wood sugars

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced scope 1, 2 and 3 GHG emissions per megajoule of green energy contained in the pellets produced (gCO2e/MJ) to 6.83 gCO2e/MJ, achieving a 3.5% improvement from 2021 and exceeding the 5% target for 2024.

Climate Goals & Targets

Environmental Challenges

• Lower production levels in 2022 resulted in a proportional increase of the production footprint, a decrease in efficiency of production, and an increase in GHG emissions intensity.

Supply Chain Management

Climate-Related Risks & Opportunities