Metsä Board Sustainability Review 2023

Our commitment to sustainability relies on our strategy

Progress towards our 2030 sustainability targets

Sustainable operations are the foundation of Metsä Board’s business. Our sustainability targets are based on our strategy, the materiality assessment of sustainability matters and the entire Metsä Group’s sustainability targets.

Our seven sustainability themes and related targets and indicators were updated in 2023. The actuals and progress are summarised in the table below.

THEME AND TARGET

2030 TARGET 2023 ACTUAL 2023 PROGRESS UN SDG

We are implementing our strategy to grow in fibre-based packa- ging materials and renew industrial operations with investments to meet the globally increasing demand for recyclable packaging materials that can reduce the use of plastic. To support this, we have defined five strategic programmes, which are interlinked with our sustainability targets. Our sustainability targets, which extend to 2030, contribute, for our part, to the realisation of the UN’s Sustainable Development Goals. Since 2003, we have supported the UN Global Compact and its principles on human rights, labour, the environment and anti-corruption. We have also signed the UN

Global Compact’s CEO Water Mandate initiative, in which we are committed to continuously improving water responsibility and understanding and managing water-related risks. As part of Metsä Group, we belong to the global circular economy network of the Ellen MacArthur Foundation, which supports our goal of being a forerunner in a fossil free circular economy. Our sustainability performance is continuously assessed in several ESG ratings, and we actively participate in those ratings that we see as the most important in terms of providing fact- based information and further improving the sustainability of our operations.

E – ENVIRONMENT 1. Safeguarding biodiversity and the ecological sustainability of forest use MG: Retention trees on regeneration felling sites, %

100

96

13, 15

MG: High biodiversity stumps on harvesting sites, %

100

92

13, 15

MG: Spruce as the only tree species after young stand management, %

0

25

13, 15

MG: Measures promoting biodiversity, number

10,000

816

13, 15

2. Mitigating climate change and reducing emissions Improvement in energy efficiency from the 2018 level, %

+10

-5.8

7, 12, 13

Fossil-based carbon dioxide emissions (Scope 1 and Scope 2 market-based), t

0

184,713

12, 13

Share of target group suppliers with targets set in accordance with the SBTi by 2024 (Scope 3), %

70

19

13

Fossil free raw materials and packaging materials, share of dry tonnes, %

100

98.8

9, 12

MG: Amount of forest regeneration and young stand management from the 2018 level, %

+30

+14

13, 15

Our strategic programmes • Premium supplier • Effective innovation • Safe and efficient operations and organic growth • Leader in sustainability • Motivated people

Our vision Preferred supplier of innovative and sustainable fibre-based packaging solutions, creating value for custo- mers globally.

Our purpose Advancing bioeconomy and circular economy by efficiently and sustai- nably processing northern wood into first-class products.

MG: Amount of forest fertilisation from the 2018 level, %

+50

-26

13, 15

MG: Share of continuous cover forestry in peatland forest regeneration, %

30

17

13, 15

MG: Amount of carbon stored in wood products from the 2018 level, %

+30

-21

12, 13

3. Resource efficiency and sustainable production Reduction in process water use per produced tonne from the 2018 level, %

-35

+2.0

6, 12

Process waste delivered to landfills, t

0

1,164

12

S – SOCIAL RESPONSIBILITY 4. Respecting everyone and doing the right thing Anonymous recruitment for vacancies open to all, %

Metsä Board actively participates in the following ESG ratings

100

72

5, 8

ESG rating provider and rating

Score

Previous score 1)

Scale 2)

Updated

Women in management positions, %

>30

21

5, 8

CDP, Climate Change CDP, Water Security

A A

A A A B

D−A D−A D−A E−A

02/2024

5. Promoting safety and wellbeing at work Total recordable incident frequency, own employees (TRIF) 1 )

0

6.1

8

CDP, Forests

A- A-

Employee job satisfaction

AAA

A+

5, 8

Ellen MacArthur Foundation, Circulytics®

07/2023 12/2022 12/2023

G – SUSTAINABILITY GOVERNANCE 6. Innovation and open-minded cooperation and 7. The significance of forest-based bioeconomy to society Implementation of ethics barometer measures, % 100

ISS, ESG Corporate Rating ISS, QualityScore, Environment

B- Prime

B- Prime

D- − A+, Not Prime − Prime

2 3 3

2 6 3

10−1 10−1 10−1

ISS, QualityScore, Social

100

5, 8

ISS, QualityScore, Governance EcoVadis, Sustainability Rating 3)

Traceability of raw materials, share of total purchases, %

100

97

9, 12

87 Platinum

87 Platinum

0−100, Platinum the highest medal

05/2023 12/2023 06/2023 12/2023 11/2023

Share of certified wood fibre, %

>90

91

15

Moody’s Analytics, ESG Overall Score 4)

70 AA

68

0−100

Suppliers’ commitment to the Supplier Code of Conduct, share of total purchases, %

100

99.0

8, 12

MSCI, ESG Rating 5)

AAA

CCC−AAA

Supplier assessments and audits of core suppliers, %

100

68

8, 12

S&P Global, CSA Score 6)

57

54

0−100 100−0

MG: Joint sustainability targets with partner suppliers, %

100

100

12, 13

Sustainalytics, ESG Risk Rating 7)

14.1

14.6

1) Score reported in Metsä Board’s Annual and Sustainability Report 2022. S&P Global’s CSA Score was not included in the report in 2022. 2) Scale from the weakest score to the highest possible score. 3) Metsä Board is among the top 1% of companies assessed in the manufacture of corrugated paper and paperboard and containers of paper and paperboard industries. 4) In Metsä Board’s sector, Forest Products & Paper Europe, the sector average is 58. 5) Metsä Board was moved by MSCI from Paper & Forest Products industry to Containers & Packaging industry in 2023. 6) As of 15 March 2024, Metsä Board achieved the eighth highest CSA score out of 62 companies assessed in the Materials – FRP Paper & Forest Products industry in the S&P Global Corporate Sustainability Assessment. 7) Metsä Board is considered to be at low risk of experiencing material financial impacts from ESG factors.

Progress in 2023 compared with the previous year. Exceeds target (significant progress) On target (progress as planned) Short of target (no progress or weaker progress)

MG: The target has been set at the level of Metsä Group

Targets will be reached by the end of 2030. For example, fossil fuels will be abandoned by 31 December 2030.

1) Metsä Board’s target of “0 accidents at work” also applies to service suppliers. In future, service suppliers will be included in the performance figure.

10

11

METSÄ BOARD SUSTAINABILITY REVIEW 2023

Powered by