Metsä Board Sustainability Review 2023

We continuously work towards fossil free and resource-efficient production

To mitigate climate change, we are aiming for fossil free production and products. We also focus on resource efficiency in terms of the use of energy, water and materials.

90% OF OUR ENERGY USE IS FOSSIL FREE

54% reduction of fossil-based CO 2 emission per product tonne in 2018−2023. (Scope 1 and 2 market-based)

Renewable energy, wood-based �� 73% Other renewable energy �� 0.5% Nuclear power �� 16% Fossil fuels �� 10%

Metsä Board’s environmental operations are guided by the prin- ciples of our environmental policy and a certified ISO 9001 quality management system, ISO 14001 environmental management system, ISO 50001 energy management system, and an energy efficiency system (EES), which all our production units have. Working towards fossil free production Metsä Board’s strategy to work towards fossil free production includes action plans for the climate impacts from production, the supply chain and products. An action plan for the carbon balance of forests has also been drawn up for Metsä Group’s wood supply.

In the production units, our plan for climate change mitigation comprises investments and measures for replacing fossil fuels with renewable fuels and fossil free electricity at all the company’s production units and power plants. The measures apply to the fuels and backup fuels used at power plants and to the process fuels used at production units. We will also shift to fully renewable or fossil free alternatives for purchased energy. Our key measures are presented in the roadmap on page 22. We are improving energy efficiency through continuous enhancements in areas such as drying and heat recovery, and through investments. In addition to the development project at Kemi board mill we completed, in 2023, energy efficiency actions

on a smaller scope, including the optimisation of energy use in drying at the Joutseno BCTMP mill and the Äänekoski board mill. Greenhouse gas emissions in our value chain are curbed by Metsä Group wood supply’s target of reducing fossil-based carbon dioxide emissions from wood supply in Finland by 30 per cent from the 2022 level by 2030. Greenhouse gas emissions are also reduced through emissions reduction targets jointly set by Metsä Group and its partner suppliers. For example, the joint 2030 target of Metsä Group and VR, a logistics group, will halve emissions from transportation covered by the cooperation. VR handles Metsä Board’s rail transports in Finland. We also encour- age all our suppliers to set GHG emission reduction targets, in line with the Science Based Targets initiative for example. Carbon footprints of our products are discussed on pages 24–25. Reducing water use Our actions to reduce process water use include investments in processes and wastewater treatment, as well as adjustments to and optimisation of water use. The actions improve water recycling and reduce water withdrawal from waterbodies. Our key

measures are presented in the roadmap on page 23. Reducing water use is also a way of mitigating climate change, as process water use and wastewater treatment consume energy, causing greenhouse gas emissions. All Metsä Board’s production units are located in areas that have large surface water reserves. None of the production units are located in areas of high water stress or high overall water risk (WRI Aqueduct Water Risk Atlas). Surface water accounts for nearly 100% of Metsä Board’s water withdrawals. A small amount of groundwater is used mainly for hygiene and laboratory purposes. Production processes account for roughly half Metsä Board’s water use, and the cooling process accounts for the rest. Process water is carefully treated before it is returned into waterbodies. The cooling water circulates in a separate system and does not need to be treated. However, the cooling water returned to waterbodies has a local heating impact. Our water consumption is very small in proportion to our total water use, as we return around 96% of the water to waterbodies after use. The remaining 4% either evaporates during the process or is bound to products. Minimising waste We make use of most of the production side streams. Wood-ba- sed waste and by-products, including sludge, ash and lime, are used for soil improvement and landscaping, fertilisers, chemicals industry applications, and in energy generation. Only 1% of process waste is delivered to the landfill, and the target is zero. In addition to by-products and process waste, our operations generate smaller volumes of other non-hazardous waste, such as municipal waste and construction waste, and some hazardous waste.

TOTAL GREENHOUSE GAS EMISSIONS 1,999,098 TONNES CO 2 e (SCOPES 1, 2, 3)

45%

44%

10%

< 1%

Scope 3 – upstream

Scope 2

Scope 1

Scope 3 – downstream

tCO 2 e Purchased goods and services 479,875 Capital goods 57,651 Fuel and energy-related activities 57,772 Upstream transportation and distribution 282,264 Waste generated in operations 2,919 Business travel 813 Employee commuting 1,889 883,184

tCO 2 e

Kemi board mill’s upgrade completed in 2023 will reduce the mill’s energy consumption by 5% and water use by around 40% per tonne produced.

Market-based indirect GHG emissions from purchased electricity and heat

Direct GHG emissions from own processes and power plants

Downstream transportation and distribution Processing of sold products

4,732

5,108 5,108

201,984 201,984

268,042

Use of sold products

890

End-of-life treatment of sold products

582,863

Investments

52,294 908,822

Read more about these topics in the Sustainability Statement 2023.

METSÄ BOARD SUSTAINABILITY REVIEW 2023