BUSINESS OPERATIONS AND VALUE CREATION
SUSTAINABILITY REPORT
FINANCIAL DEVELOPMENT
GOVERNANCE
Reporting principles and data quality The reporting of non-financial information covers the entire Metsä Board Corporation, including all companies in which Metsä Board directly or indirectly holds more than 50% of the votes. Metsä Board owns 24.9 per cent of its associated company, Metsä Fibre, and financial reporting includes a share of Metsä Fibre’s result corresponding to this holding. In non-financial reporting, this ownership share of Metsä Fibre’s sustainability information is not included in Metsä Board’s sustainability information, with the exception of Metsä Fibre’s Scope 1 and Scope 2 emissions, which are taken into account in Metsä Board’s value chain emissions (Scope 3). Environmental data are compiled from the operations of the production units. Personnel data are compiled for all Metsä Board employees. In addition to Metsä Board’s own operations, the reporting covers indirect greenhouse gas emissions from the purchased energy (Scope 2) and from the rest of the value chain (Scope 3), including upstream and downstream emissions in the GHG Protocol’s emission categories identified as significant in the calculation. More information can be found in the Environment - Climate and energy section. Metsä Board also reports indicators on the sustainability performance of its suppliers. A more detailed description of the reporting principles can be found in Metsä Board’s Sustainability Report 2022 on pages 66–67. All data included in the tables pertaining non-financial information and the EU taxonomy have been assured (limited assurance) by an independent third party PricewaterhouseCoopers Oy. The assurance was performed in accordance with the international assurance standards ISAE 3000 (Revised) and ISAE 3410. The assurance report is published in Metsä Board’s Sustainability Report 2022 on page 68. Material aspects related to non-financial information Promoting sustainability includes complying with good corporate govern- ance, carrying social and environmental responsibility, respecting business ethics and human rights, and continuous improvement in all these areas. In addition to its own operations, Metsä Board requires sustainability from its supply chain. Metsä Board’s sustainability targets cover the environment, social responsibility and governance. These and other key performance indicators are summarized in the table Non-financial key figures. The targets are based on Metsä Board’s business strategy, Metsä Group’s strategic sustainability targets and a materiality analysis completed in 2018. The materiality analysis considered the impacts of the Metsä Board
and the entire Metsä Group’s operations on society and the environment, and stakeholder perspectives. According to the materiality analysis, the material sustainability topics were: safety at work, local and social impact, sustainable forest management, resource efficiency, renewable energy, emissions to air and water, water use, circular economy and new bioprod- ucts, responsible supply chain and product safety. The materiality analysis and material topics were updated in 2022. The identification of material sustainability topics was based on sustainability frameworks and standards, regulatory requirements, trends, and interviews with internal and external stakeholders. The identified topics were prioritized in a management’s workshop, where the significance of their positive and negative impacts on Metsä Board and the entire Metsä Group’s business, the surrounding society, people and nature (the so-called ”double materiality”) was assessed. Metsäliitto Cooperative’s Board of Directors confirmed the material topics and the sustainability 2030 targets in the beginning of the year 2023. Metsä Board will report in accordance with the updated material topics and clarified sustainability targets starting from the reporting of 2023 data. Risks related to non-financial information The risks related to environmental, personnel and social issues, respect for human rights as well as the anti-corruption and anti-bribery activities are described in more detail in the Board of Directors’ Report in the section Most significant risks and uncertainties. The key risks are related to climate change and biodiversity loss, which at Metsä Board in particular affect the use of forests, energy and water. For these, the company has sus- tainability targets by the end of 2030, and their achievement is regularly monitored. The achievements are reported in the table Non-financial key figures. Metsä Board reports on climate-related risks and opportunities in accordance with the recommendations of TCFD (Task Force on Climate-related Financial Disclosures). Climate risks are divided into 1) transition risks, i.e., the risks arising from the transition to a low-carbon economy and 2) physical risks, which involve changes in temperatures and precipitation, and which will arise if climate change is not mitigated. A table of the TCFD-compliant reporting is published on pages 64–65 of Metsä Board’s Sustainability Report 2022 and the TCFD-compliant risks and opportunities related to climate change and biodiversity loss are described on pages 36–37.
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