Norske Skog ASA
Climate Impact & Sustainability Data (2016, 2022)
Reporting Period: 2016
Environmental Metrics
Total Carbon Emissions:1.35 million tonnes of fossil fuel derived CO2-equivalents (including CO2, CH4 and N2O) in 2016
Scope 1 Emissions:485,000 tonnes CO2e
Scope 2 Emissions:865,000 tonnes CO2e
Scope 3 Emissions:Not disclosed
Renewable Energy Share:14% of total energy consumed by the group is biofuel.
Total Energy Consumption:9831 GWh, 3.92 MWh/tonne of paper
Water Consumption:Total water use per tonne of paper in 2016 is on the same level as in 2015. 98% of the water entering our mills is returned to rivers and lakes after treatment.
Waste Generated:391 000 dry tonnes in 2016 (increase of about 11 000 tonnes compared to 2015)
Carbon Intensity:Not disclosed
ESG Focus Areas
- Economic Performance
- Materials
- Water
- Effluents and Waste
- Occupational Health and Safety
- Anti-corruption
- Energy
- Emissions
- Biodiversity
- Human Rights
- Local Communities
- Climate Change
Environmental Achievements
- 25% lower greenhouse gas emissions compared to 2006.
- 81% of waste used as biofuel (increase of 3% compared to 2015).
- Reduction of sulphur dioxide per tonne of paper by 23% compared to 2015.
- Reduction of NOx per tonne of paper by 8% compared to 2015.
Social Achievements
- Signed a letter of intent regarding a more inclusive workplace (IA Agreement).
- Absence rate due to sickness of 3.8% in 2016.
- H1 level, lost time injuries per million working hours, of 1.5 (compared to 1.0 in 2015).
- Active communication and contact with local stakeholders (reports to neighbors, open days, engagement in nature protection projects, etc.).
- Cooperation with educational institutions (visits from schools, scholarships, traineeships).
Governance Achievements
- Completed a number of initiatives to improve equity and enhance liquidity (private placement, exchange offer, repair offering).
- Established clear principles for how the board will act in the event of a take-over bid.
- Strong focus on ensuring compliance with applicable corporate governance standards.
- Complies with the Norwegian Code of Practice for Corporate Governance.
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Generate 25% of group gross operating earnings from new businesses by 2020.
Short-term Goals:
- Reduce group fixed costs by more than 10% by year-end 2017.
- Achieve a run rate reduction of group fixed costs by more than 10% by year-end 2017.
Environmental Challenges
- Declining demand for publication paper due to macroeconomic changes and structural changes in the industry (changing reading habits, phasing out of free newspaper distribution).
- Significant debt maturities.
- High leverage and interest cost.
- Low equity.
- Rising input costs (fibre raw materials, energy, logistics).
Mitigation Strategies
- Substantial capacity cuts in the industry and in Norske Skog.
- Completed a number of initiatives to improve equity and enhance liquidity (private placement, exchange offer, repair offering).
- Further improvements to operations to increase efficiency and competitiveness.
- Actively developing new revenue streams (biogas, nanocellulose, wood pellets).
- Cost reduction initiatives targeting a run rate reduction of group fixed costs by more than 10% by year-end 2017.
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- All wood used in our paper shall originate from sustainably managed forests.
- Suppliers are obliged to follow the laws and jurisdictions of their operating country, both for labour practices and human rights.
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Development of energy-efficient products
- Biogas production
- Wood pellets production
Reporting Standards
Frameworks Used: GRI G4
Certifications: ISO 14001
Third-party Assurance: Deloitte AS and BDO AS
Sustainable Products & Innovation
- Biogas
- Nanocellulose
- Wood pellets
Awards & Recognition
- Farmandprisen for best 2015 annual report
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:472,734 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:294,926 tCO2e/year
Scope 2 Emissions:177,808 tCO2e/year (location-based)
Scope 3 Emissions:752,000 tCO2e/year
Renewable Energy Share:85%
Total Energy Consumption:6.9 TWh/year
Water Consumption:99,440,899 m3/year
Waste Generated:278,079 tons/year
Carbon Intensity:276 kg CO2e/tonne paper (Scope 1 & 2, location-based)
ESG Focus Areas
- Climate Change
- Sustainable Resource Management
- Biodiversity
- Occupational Health and Safety
- Employee Well-being
- Diversity and Inclusion
- Corporate Governance
- Responsible Supply Chain
- Local Community Engagement
Environmental Achievements
- Reduced Scope 1 & 2 emissions by 23% in 2022 compared to 2015 baseline (51% reduction).
- 85% renewable energy consumption.
- 91% certified wood fibres.
- Opened a new 50MW waste-to-energy boiler at Norske Skog Bruck, significantly reducing fossil carbon footprint.
- Construction of the largest biofuel plant in France at Golbey site underway.
Social Achievements
- 58% decrease in lost time injuries per million working hours in 2022 compared to 2021.
- Norske Skog Golbey and Norske Skog Saugbrugs received Platinum Rating from EcoVadis.
- 6.2% of employees were apprentices and trainees in 2022.
- Initiated a Norwegian inclusive working environment (IA) agreement to reduce sick leave and increase employee retention.
Governance Achievements
- Compliance with the Norwegian Code of Practice for Corporate Governance.
- Established new processes for responsible business conduct and approved a Human Rights Policy.
Climate Goals & Targets
Long-term Goals:
- Net zero GHG emission by 2050.
Medium-term Goals:
- Achieve a 55% reduction in CO2 emissions/tonne product produced by 2030.
- Achieve 50% of revenue from new business areas by 2030.
- Install anaerobic wastewater treatment and biogas at all European mills by 2030.
Short-term Goals:
- Achieve at least 75% of new hired skilled workers recruited from apprentice programs by 2025.
- Ensure supplier adherence to Norske Skog Code of Conduct within 2023.
- Deliver no ash to landfill in 2030.
Environmental Challenges
- Market turbulence due to the Russian invasion of Ukraine and the resulting energy crisis.
- Stricter regulatory requirements related to energy and emissions.
- Volatile energy prices and increased pressure on biomass availability.
- Technical challenges at Golbey and Skogn wastewater treatment plants.
Mitigation Strategies
- Investment in low-emission energy generation (waste-to-energy plants, biomass boilers).
- Diversification of product portfolio into packaging paper, sustainable energy, and biomaterials.
- Continuous improvement programs to reduce energy consumption and emissions.
- Addressing technical issues at wastewater treatment plants.
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Code of Conduct
- Supplier sustainability requirements
Climate-Related Risks & Opportunities
Physical Risks
- Drought/access to water
- Flooding
Transition Risks
- Regulatory changes in energy and carbon markets
- Unstable energy markets
- Increasing carbon prices
Opportunities
- Low-emission product development
- Sustainable energy generation
- Circular economy opportunities
Reporting Standards
Frameworks Used: GRI Standards: Core option, GHG Protocol, TCFD
Certifications: ISO 9001, ISO 14001
Third-party Assurance: BDO AS
UN Sustainable Development Goals
- SDG 3: Good health and well-being
- SDG 4: Quality education
- SDG 9: Industry, innovation and infrastructure
- SDG 12: Responsible consumption and production
- SDG 13: Climate action
Norske Skog shall create value for people and society in a responsible way, while promoting a sustainable environment and principles of circular economy.
Sustainable Products & Innovation
- CEBINA
- CEBICO
- Bio-composites
- Packaging paper (Strato)
Awards & Recognition
- CDP Climate Change A– rating