Metsä Board Annual and sustainability report 2022

BUSINESS OPERATIONS AND VALUE CREATION

SUSTAINABILITY REPORT Climate and energy

FINANCIAL DEVELOPMENT

GOVERNANCE

E S G

To mitigate climate change, we will reduce the fossil carbon dioxide emissions from our production to zero, use energy more efficiently and commit our suppliers to setting reduction targets for their emissions.

Indicators and progress

By the end of 2030, we aim to reduce our direct and indirect fossil-based carbon dioxide

FOSSIL-BASED CO 2 EMISSIONS tonnes

SHARE OF FOSSIL FREE ENERGY %

kg/tonne

emissions (Scopes 1 and 2) to zero and increase our share of fossil free energy to 100%. Our goal has been approved by the Science Based Targets initiative (SBTi), and it meets the strictest requirements of the Paris Agreement, which aims to limit global warming to 1.5 degrees.

600,000 500,000 400,000 300,000 200,000 100,000 0

240 200 160 120

100 80 60 40 20 0

80 40 0

0 TARGET 2030

18 19 20 21 22

TARGET 2030

18 19 20 21 22

kg CO 2 /product tonne

Since 2018, we have reduced our fossil-based CO 2 emissions (Scopes 1 and 2, market-based) by 33% (23) per tonne produced.

In 2022, fossil free energy accounted for 87% (85) of our energy mix.

As for our value chain (Scope 3), our goal approved by the SBTi is that 70% of our non-fibre suppliers and the logistics operators related to our customer deliveries, measured as a share of our total purchases, set themselves targets in accordance with the SBTi by 2024. Our goal is to improve our energy efficiency by at least ten per cent compared to the 2018 level by 2030.

SHARE OF SUPPLIERS THAT HAVE SET A SCIENCE-BASED TARGET, %

IMPROVING ENERGY EFFICIENCY %

70 60 50 40 30 20 10 0

10 8 6 4 2 0

19 20 21 22 TARGET 2024

19 20 21 22

TARGET 2030

At the end of 2022, our energy efficiency had improved by 2.7% (4.3) compared to our base year of 2018. Lower production in the last quarter of the year reduced energy efficiency.

By the end of 2022, 15% (16) of our sup- pliers belonging to the target group had set targets in accordance with the SBTi.

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