Metsä Board Annual and sustainability report 2022

Our operations

mill’s oil consumption. The change in Hämeenkyrö power plant’s ownership and an increase in the use of fossil free purchased energy contributed to the decrease of Scope 2 emissions. The emissions of our value chain (Scope 3) accounted for 83% (81) of all our fossil greenhouse gas emissions in 2022. A sizeable portion of the emissions in our value chain is attributable to the production of the raw materials we purchase – including pulp, bind- ing agents, pigments and process chemicals – and the further pro- cessing and transport of the products we sell, and their treatment at the end of their life cycles. To reduce our value chain’s emissions, we commit our suppliers to setting science-based reduction targets for emissions. A recommendation to this effect is included in Metsä Group’s Supplier Code of Conduct, and the matter is discussed at meetings with suppliers. We also favour low-emission modes of transport as much as possible (p. 38). In 2022, Metsä Group and the VR logistics group agreed a new joint target to halve emissions from transport covered by their cooperation by 2030. VR handles Metsä Board’s train transports in Finland.

Greenhouse gas emissions Greenhouse gases most significant for our operations and the environment include the carbon dioxide emissions caused by our own energy generation and production processes (Scope 1), the generation of purchased energy (Scope 2) and the rest of our value chain (Scope 3). In 2022, Metsä Board’s Scope 1 emissions declined slightly from the previous year, despite full ownership of the Hämeenkyrö power plant being transferred to Metsä Board, meaning that the power plant’s emissions are now reported as the Kyro mill’s Scope 1 emis- sions instead of Scope 2 emissions. At the company level, Scope 1 emissions decreased thanks to the Simpele mill using less peat and the Husum mill replacing heavy fuel oil with bio-based fuel. Moreo- ver, Husum’s Scope 1 emissions were higher in 2021 due to the fire that broke out on the pulp mill’s chip conveyor, which increased the

GREENHOUSE GAS EMISSIONS IN 2022 WERE APPROXIMATELY 2.2 MILLION TONNES IN TOTAL

UPSTREAM Indirect emissions

OWN OPERATIONS Direct emissions

DOWNSTREAM Indirect emissions

46%

37%

11%

6%

Upstream – Scope 3 799,895 tonnes

Purchased electricity and heat – Scope 2 market-based 147,061 tonnes

Own processes and power plants – Scope 1 236,037 tonnes

Downstream – Scope 3 1,017,084 tonnes

Purchased goods and services ��������������������������������������������������������������������������������� 33% Fuel- and energy-related activities ������������������������������������������������������������������������������ 4% Capital goods ���������������������������������������������������������������������������������������������������������������� 4% Upstream transportation and distribution ��������������������������������������������������������������� 3% Waste generated in operations ��������������������������������������������������������������������������������� 0.1%

Processing of sold products ������������������������������������������������������������������������������������������ 19% Downstream transportation and distribution ������������������������������������������������������������ 18% End-of-life treatment of sold products ������������������������������������������������������������������������ 17% Investments ���������������������������������������������������������������������������������������������������������������������� 2%

GREENHOUSE GAS EMISSIONS (CO 2 ) 2018−2022

2022

2021

2020

2019

2018

Direct fossil-based CO 2 emissions (Scope 1), t 1)

236,037

255,467

240,036

250,259

288,579

Indirect fossil-based CO 2 emissions (Scope 2, market-based), t 2) Indirect fossil-based CO 2 emissions (Scope 2, location-based), t 2)

147,061

184,028

282,236

262,442

275,048

291,482

313,030

383,937

384,781

431,037

Indirect fossil-based CO 2 e emissions (Scope 3), t 3)

1,816,979

1,854,840

1,847,773

1,026,896

1,058,455

Biogenic CO 2 emissions, t

1,950,901

1,712,639

1,812,952

1,815,179

1,837,299

Fossil-based CO 2 emissions (Scope 1 + Scope 2, market-based), kg CO 2 /tonne produced 4)

116.1

134.0

161.7

159.8

173.5

1) Scope 1 emissions consist of carbon dioxide emissions. The 2019 figure has been retroactively corrected due to more detailed emission measurements.

2) Scope 2 emissions consist of carbon dioxide emissions. The calculation of market- and location-based Scope 2 emissions has been revised retroactively due to changes in fuel-specific emission factors for purchased heat, which is why the figures for the years 2018–2021 have been corrected. The amount of location-based Scope 2 emissions is affected by the average energy distribution of Metsä Board’s production countries. 3) Scope 3 emissions consist of carbon dioxide and other greenhouse gas emissions converted into carbon dioxide equivalents. The increase in Scope 3 emissions after 2019 is explained by changes in cal- culation methodology in 2020: two new categories (Processing of sold products and End of life treatment of sold products) were added in the calculations. Calculation methodology related to purchased chemicals was also updated. 4) Due to the revised calculation of market-based Scope 2 emissions and revisions of paperboard tonnes used in the environmental calculation, the figures for the years 2018–2021 have been corrected retroactively.

Further details about the principles of emissions calculations are available on pages 66−67.

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Sustainability report | METSÄ BOARD ANNUAL AND SUSTAINABILITY REPORT 2022

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