Climate Change Data

Arctic Paper SA Capital Group

Climate Impact & Sustainability Data (2019, 2020, 2022, 2023)

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:415 kg CO2/tonne of paper (2019)
Scope 1 Emissions:297 kg CO2/tonne of paper (2019)
Scope 2 Emissions:9 kg CO2/tonne of paper (2019)
Scope 3 Emissions:118 kg CO2/tonne of paper (2019)
Renewable Energy Share:Not disclosed
Total Energy Consumption:2.0 MWh/tonne of paper (2019)
Water Consumption:8.3 m3/tonne of paper (2019)
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environment
  • People
  • Business Operations

Environmental Achievements

  • Grycksbo mill achieved a completely fossil-free energy solution.
  • Planning underway for a completely fossil-free bio-based energy solution for the Munkedal mill.
  • Expansion of hydropower at the Munkedal mill in progress.
  • Testing with solar cells started at the Kostrzyn mill.
  • Reduced CO2 emissions through investments in renewable energy sources.
  • 100% of pulp suppliers are FSC® and/or PEFC™ certified.

Social Achievements

  • Systematic approach to health and safety with annually approved action plans and occupational healthcare services.
  • Employee engagement survey conducted with high response rate, showing employees feel well-treated and engaged.
  • Yearly performance conversations implemented for all employees.
  • Continuous collaboration with employee representatives.

Governance Achievements

  • Established a Code of Conduct for Suppliers.
  • Implemented a 7-step approach to procurement to limit unethical behavior.
  • Implemented anti-corruption measures in sales, purchasing, and logistics departments.
  • Business ethics training program for employees.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Reduce total net specific energy consumption to 1.9 MWh/tonne of paper by 2022.
  • Reduce lost time injuries to <4 per million working hours by 2022.
  • Reduce value of complaints as share of sales revenue to 0.5% by 2022.
  • Achieve 100% of core suppliers providing signed environmental declarations by 2022.
  • Achieve 90% of core suppliers signing Code of Conduct or providing equivalent document by 2022.
  • 100% employee participation in business ethics training program by 2022.

Environmental Challenges

  • Not meeting national or EU environmental standards.
  • Unintentional environmental damage.
  • Climate change impacts on production (drought, flooding, etc.).
  • Lack of competent employees.
  • Accidents at work.
  • Limited visibility over supplier human rights practices.
  • Pulp shortages.
  • Energy market disruptions.
  • Poor weather conditions.
  • Country-specific risks.
  • Climate change risks.
Mitigation Strategies
  • Careful monitoring of environmental standards and indicators.
  • Early reaction system to regulatory changes.
  • Efficiency-improving technologies.
  • Reducing water consumption.
  • Increasing water bypass capacity.
  • Improving drainage.
  • Supply allocation plans.
  • Increasing cooling capacity for electric equipment.
  • Raw material allocation to core products.
  • Reducing specific energy consumption.
  • Investing in renewable energy sources.
  • Creating an attractive workplace.
  • Regular health and safety training.
  • Detailed analysis of incidents.
  • Improvement plans for all mills.
  • Scrutiny of supplier actions.
  • Implementation of Code of Conduct for Suppliers.
  • Careful market monitoring.
  • Building long-term relationships with suppliers.
  • Diversification of energy sources.
  • Continuity plans for mills.
  • Monitoring of global business environment.

Supply Chain Management

Supplier Audits: 4 audits performed in 2019 to confirm compliance with Code of Conduct.

Responsible Procurement
  • Code of Conduct for Suppliers
  • Supplier sustainability requirements
  • Environmental declarations from suppliers
  • 7-step procurement process
  • Verification procedure for pulp suppliers (environmental declarations, safety data sheets, mill trials).

Climate-Related Risks & Opportunities

Physical Risks
  • Drought
  • Flooding
  • Landslides
  • Malfunction in electrical equipment
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Offering products manufactured from renewable sources.

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol

Certifications: ISO 14001, EMAS, ISO 50001 (Grycksbo mill), FSC®, PEFC™

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Munken Kraft portfolio (packaging paper)

Awards & Recognition

  • Not disclosed

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:385 kg CO2/tonne of paper (2020)
Scope 1 Emissions:221 kg CO2/tonne of paper (2020)
Scope 2 Emissions:10 kg CO2/tonne of paper (2020)
Scope 3 Emissions:154 kg CO2/tonne of paper (2020)
Renewable Energy Share:Not disclosed
Total Energy Consumption:2.2 MWh/tonne of paper (2020)
Water Consumption:8.6 m3/tonne of paper (2020)
Waste Generated:11.3 kg/tonne of paper recycled or energy extracted (2020)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environment
  • People
  • Business Operations

Environmental Achievements

  • Munkedal mill received Cradle to Cradle Certified™ certificate for all paper types.
  • Munkedal mill increased hydroelectric power plant capacity from 2 to 6 MW.
  • Munkedal mill obtained permit to build a biomass heating plant (up to 80% of energy needs).
  • Grycksbo mill supplied with renewable energy from pellet heating plant.

Social Achievements

  • Implemented measures to ensure employee safety during COVID-19 pandemic.
  • Continued to decrease workplace accidents.
  • High employee survey response rate indicating engagement.

Governance Achievements

  • Established a Code of Conduct for Suppliers.
  • Implemented a 7-step approach to procurement to limit unethical behavior.
  • No legal cases where Arctic Paper was found guilty of a breach of law or regulation.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Reduce specific energy consumption to 1.9 MWh/tonne of paper by 2022.
  • Reduce lost time injuries to <4 per million working hours by 2022.
  • Reduce specific water consumption to 7.0 m3/tonne of paper by 2022.
  • Increase recycling or energy extraction to 11 kg/tonne of paper by 2022.
  • Reduce direct CO2 emissions to 240 kg CO2/tonne of paper by 2022.
  • Achieve 100% of core suppliers providing signed environmental declarations by 2022.
  • Achieve 90% of core suppliers signing Code of Conduct or having equivalent by 2022.
  • Reduce value of complaints to 0.5% of sales revenue by 2022.
  • Achieve 100% employee participation in Business ethics training program by 2022.

Environmental Challenges

  • Meeting national/EU environmental standards.
  • Unintentional environmental damage.
  • Climate change impact on production.
  • Lack of competent employees.
  • Workplace accidents.
  • Limited visibility over supplier human rights practices.
  • COVID-19 pandemic.
  • Pulp shortage.
  • Energy market disruptions.
  • Poor weather conditions.
  • Country-specific risks.
Mitigation Strategies
  • Careful monitoring of environmental standards and indicators.
  • Early reaction system to regulatory changes.
  • Efficiency-improving technologies.
  • Creating an attractive workplace.
  • Regular health and safety training.
  • Detailed incident analysis and improvement plans.
  • Scrutiny of supplier actions and signed declarations.
  • Implementation of COVID-19 policies.
  • Careful market monitoring and building long-term supplier relationships.
  • Diversification of energy sources.
  • Continuity plans for mills.
  • Careful monitoring of global business environment.

Supply Chain Management

Supplier Audits: 3 audits performed in 2020

Responsible Procurement
  • Code of Conduct for Suppliers
  • Environmental declarations from core suppliers
  • FSC® and PEFC™ certification for pulp suppliers
  • 7-step procurement process

Climate-Related Risks & Opportunities

Physical Risks
  • Drought
  • Flooding
  • Landslides
  • Malfunction in electrical equipment
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Offering products from renewable sources to replace fossil-fuel based products.

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol, EMAS

Certifications: ISO 14001, FSC, PEFC, Cradle to Cradle Certified™

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Munken papers with Cradle to Cradle Certified™

Awards & Recognition

  • Cradle to Cradle Certified™

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:212 ktCO2e/year (Scope 1)
Scope 1 Emissions:212 ktCO2e/year
Scope 2 Emissions:5 ktCO2e/year
Scope 3 Emissions:119 ktCO2e/year
Renewable Energy Share:14.02% (OpEx)
Total Energy Consumption:1393.5 GWh/year
Water Consumption:5,233,104 m3/year
Waste Generated:3184 tons/year (recycled or energy extracted)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Health and safety of employees
  • Customer satisfaction
  • Climate change

Environmental Achievements

  • New flexible multifuel boiler in Munkedal went into operation in September 2022, reducing CO2 emissions by 55-60% compared to LNG-based steam production.
  • Continued project for improvement of biodiversity by restructuring the conditions in the Munkedal river, showing a major recovery of fish stocks.
  • Start-up of solar panels in Grycksbo and Munkedal.
  • Launch of new product within the G range – G-Flexmatt – a sustainable and environmentally friendly alternative for plastic packaging.

Social Achievements

  • Decreased number of work-related injuries in 2022.
  • Workshops and launch of development work of an action plan and education program in the field of diversity and inclusion.

Governance Achievements

  • Continued implementation of a 7-step approach to procurement to limit the scope for unethical behavior.
  • All new employees received business ethics training in 2022.

Climate Goals & Targets

Long-term Goals:
  • Transform Arctic Paper to a CO2 neutral Group by 2035
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Reduce water consumption by 7.0 m3/tonne of paper by 2025
  • Reduce specific energy consumption to 1.9 MWh/tonne of paper by 2025
  • Reduce lost time injuries per million working hours to <4 by 2025
  • Achieve 100% of pulp suppliers with FSC® and/or PEFC™ certifications by 2025
  • Achieve 0% share of Euro 3 and Euro 4 engine class in transportation by 2025
  • Reduce value of complaints as share of sales revenue to 0.5% by 2025

Environmental Challenges

  • Russian invasion of Ukraine fundamentally changed markets, triggering cost inflation and challenging energy availability.
  • Shortage of pulp on the market.
  • Disruptions in the energy market.
  • Poor weather conditions.
  • Limited visibility over suppliers and their human rights practices.
  • Global pandemic (COVID-19).
Mitigation Strategies
  • Immediately discontinued all business with Russia and Belarus.
  • Contributed to the Ukrainian cause and helped refugees.
  • Investments in a solar park in Kostrzyn and a multifuel boiler in Munkedal.
  • Careful monitoring of the market and building long-term relationships with qualified suppliers.
  • Reducing water consumption and increasing water by-pass capacity.
  • Scrutiny over actions of suppliers in the form of signed declarations and implementation of the Code of Conduct for Suppliers.
  • Creating an attractive and ethical workplace to attract and retain employees.

Supply Chain Management

Supplier Audits: 2 in 2022

Responsible Procurement
  • Code of Conduct for Suppliers of Arctic Paper
  • Requirement for FSC® and PEFC™ certifications for pulp suppliers
  • Environmental declarations from core suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Drought
  • Flooding
  • Landslide
  • Malfunction in electrical equipment
Transition Risks
  • Changes in environmental standards and regulations
  • Disruptions in the energy market
Opportunities
  • Development of energy-efficient products
  • Transition to renewable energy sources

Reporting Standards

Frameworks Used: GRI Standards (CORE level), TCFD

Certifications: ISO 14001, EMAS, ISO 50001 (Grycksbo)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Goal 7 (Affordable and clean energy)
  • Goal 9 (Industry, innovation and infrastructure)
  • Goal 12 (Responsible consumption and production)
  • Goal 13 (Climate action)
  • Goal 8 (Decent work and economic growth)
  • Goal 3 (Good health and well-being)
  • Goal 11 (Sustainable cities and communities)
  • Goal 15 (Life on land)
  • Goal 6 (Clean water and sanitation)
  • Goal 17 (Partnerships for the goals)

Arctic Paper's initiatives contribute to these goals through sustainable production, renewable energy, responsible supply chain, employee well-being, and community engagement.

Sustainable Products & Innovation

  • G-Flexmatt packaging paper

Awards & Recognition

  • Grycksbo mill nominated for the Solar Energy Award 2023

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:171 k tonnes/year
Scope 1 Emissions:236 kg CO2/tonne paper
Scope 2 Emissions:44 kg CO2/tonne paper
Scope 3 Emissions:166 kg CO2/tonne paper
Renewable Energy Share:0.33 MWh/tonne (internal renewable energy production)
Total Energy Consumption:1079.4 GWh/year
Water Consumption:4,568,670 m3/year
Waste Generated:5191 tonnes/year (recycling or energy extraction)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environment
  • People
  • Business Operations

Environmental Achievements

  • Significant steps in enhancing energy efficiency, optimizing water usage, and increasing the share of renewable energy in our production.
  • Kostrzyn mill expanding its solar panels installation.
  • Grycksbo mill switched to non-fossil bio diesel as a fuel for internal transport vehicles.
  • Grycksbo mill launched a project of pellet production installation.
  • Munkedals mill created a flower meadow on the mill site.
  • Modernisation of the PM1 recuperation system in Kostrzyn with an effective reduction of heat consumption and CO2 emissions by 2,784 tonnes per year.
  • Upgrade of the venting system at PM1 and PM2 in Kostrzyn, resulting in a reduction of heat consumption and CO2 emissions by 1,575 tonnes per year and by 3,725 tonnes per year, respectively.

Social Achievements

  • Kostrzyn mill was awarded with an Employee-Friendly Employer certificate granted by President of Poland.
  • Implementation of new Code of conduct in the value chain and Whistleblowing policy.
  • Creation of the Sponsorship policy.
  • Grycksbo and Munkedals mills implemented Pulse meetings – short and frequent mills’ teams meetings as an implementation of lean methodology to gather information about the results of current projects.

Governance Achievements

  • Implemented new Code of conduct in the value chain.
  • Implemented Whistleblowing policy.
  • Created Sponsorship policy.

Climate Goals & Targets

Long-term Goals:
  • Zero emissions in Scope 1 and 2 by 2035.
Medium-term Goals:
  • Transition to fully fossil-free energy production by 2035.
Short-term Goals:
  • Reduce water consumption by 7.0 m3/tonne of paper by 2025.
  • Reduce total net specific energy consumption to 1.9 MWh/tonne of paper by 2025.
  • Achieve <4 lost time injuries per million work hours by 2025.
  • Achieve 100% of core suppliers providing existing signed environmental declarations by 2025.
  • Achieve 90% of core suppliers who signed our Code of Conduct or have their own Code of Conduct by 2025.
  • Employ only trucks with engine class EURO 5 and above by 2025.
  • Reduce value of complaints as share of sales revenue to 0.50% by 2025.
  • Reduce employee turnover to <10%/year by 2025.

Environmental Challenges

  • High volatility in energy prices and availability.
  • Fluctuations in the graphic paper market with short order lead times and a large number of changes in the types of paper produced.
  • Lack of competent employees.
  • Accidents at work.
  • Limited visibility over suppliers and their human rights practices.
  • Global pandemic (COVID-19).
  • Outbreak of war.
  • Shortage of pulp on the market, inability to buy certified pulp.
  • Disruptions in the energy market.
  • Poor weather conditions.
Mitigation Strategies
  • Investing in renewable energy sources.
  • Reducing water consumption.
  • Improving drainage.
  • Plans for supply allocation.
  • Increasing of cooling capacity for sensitive electric equipment.
  • Allocation of raw materials to core products and markets.
  • Reducing specific energy consumption.
  • Creating an attractive and ethical workplace to attract and retain employees.
  • Training and talent acquisition.
  • Health and safety training performed on a regular basis.
  • Detailed analysis of all incidents – from risk observation to injuries.
  • Improvement plans in place for all our mills.
  • Dedication to a zero-injury environment.
  • Scrutiny over actions of suppliers in the form of signed declarations.
  • Implementation Code of conduct in the value chain.
  • Implementation of policies, building awareness and routines throughout the entire organisation in order to protect our employees and operations.
  • Keeping and promoting high health standards among employees and contractors.
  • Careful monitoring of the market.
  • Building long-term relationships with qualified suppliers.
  • Diversification of sources of energy, seeking new energy investments.
  • Continuity plans developed for mills.
  • Careful monitoring of world affairs of the global business environment.

Supply Chain Management

Supplier Audits: 2 audits in 2023

Responsible Procurement
  • Code of conduct in the value chain of Arctic Paper Group
  • Environmental declarations from core suppliers
  • FSC® and PEFC™ certification for pulp suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Drought
  • Flooding
  • Landslide
  • Malfunction in electrical equipment
Transition Risks
  • Changes in environmental standards and regulations
  • Disruptions in energy market
Opportunities
  • Development of energy-efficient products
  • Replacing fossil-based materials with bio-based, renewable alternatives

Reporting Standards

Frameworks Used: GRI Standards (CORE level), TCFD recommendations

Certifications: ISO 14001 (all mills), EMAS (all mills), ISO 50001 (Grycksbo and Munkedal mills), FSC® and PEFC™ (all mills)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Goal 7 (Affordable and clean energy)
  • Goal 9 (Industry, innovation and infrastructure)
  • Goal 12 (Responsible consumption and production)
  • Goal 13 (Climate action)
  • Goal 8 (Decent work and economic growth)
  • Goal 11 (Sustainable cities and communities)
  • Goal 15 (Life on land)
  • Goal 17 (Partnerships for the goals)

See report for details on how initiatives contribute to these goals.

Sustainable Products & Innovation

  • Packaging from moulded cellulose fibre

Awards & Recognition

  • Employee-Friendly Employer certificate (Kostrzyn mill)