4.20 also include the sale of district heat produced at the Simpele and Kyro power plants to neighbouring areas. Metsä Board includes any additions to tangible and intangible fixed assets in Taxonomy-eligible capital expenditure, including any right-of-use assets recognised based on long-term lease agreements. Taxonomy-aligned capital expenditure includes investments in the renewal of the Husum pulp mill’s recovery boiler and turbine under category 4.20 Cogeneration of heat/cool and power from bioenergy. Taxonomy-eligible capital expenditure also includes maintenance investments in the Simpele and Kyro power plants under category 4.20, as well as maintenance investments in the Kaskinen power plant and chemicals recovery facility under category 4.24 Production of heat/cool from bioenergy. Metsä Board’s Taxonomy-eligible operating expenses include research and development costs recognised as expenses and the maintenance costs of production units and property, supplemented by the costs of waste management and short-term lease agreements. The reported expenditure includes both external service costs and the wages, including indirect employee costs, of the company’s own personnel responsible for
the listed activities. Taxonomy-aligned operating expenses include operat- ing expenses for the recovery of chemicals and heat at the Husum pulp mill under category 4.20 Cogeneration of heat/cool and power from bioenergy. Taxonomy-eligible operating expenses also include operating costs for the Simpele and Kyro power plants under category 4.20 and operating costs for the Kaskinen power plant and chemicals recovery facility under category 4.24. To avoid double reporting, external sales have been included in the Tax- onomy operations only once. In addition, measures have been adopted to ensure that capital expenditure and operating expenses are kept separate for each operation. In Metsä Board’s opinion, the company meets the Taxonomy’s minimum social safeguards, which cover human rights, bribery and corruption, fair competition and taxation. The company has reviewed each of these from two perspectives: the presence of relevant processes and the addressing of infringements. For example, human rights due diligence is described in greater detail under Social affairs and human rights and Anti-corruption and anti-bribery activities and corporate culture.
Proportion of sales from products or services associated with Taxonomy-aligned economic activities Substantial contribution criteria DNSH criteria
% % % Y/N Y/N Y/N Y/N Y/N Y/N Y/N
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned) Cogeneration of heat/cool and power from bioenergy 4.20.
1.0 0% 100%
Sales of environmentally sustainable activities (Taxonomy-aligned) (A.1)
1.0 0% 0% 0%
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) Cogeneration of heat/cool and power from bioenergy 4.20. 1.8 0% Sales of Taxonomy-eligible but not
environmentally sustainable activities (not Taxonomy-aligned activities) (A.2)
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Sales of Taxonomy-non-eligible activities (B)
Report of the Board of Directors | METSÄ BOARD ANNUAL AND SUSTAINABILITY REPORT 2022
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