Metsä Board Annual and sustainability report 2022

Proportion of OpEx from products or services associated with Taxonomy-aligned economic activities Substantial contribution criteria DNSH criteria

Economic activities

EUR million

% % % Y/N Y/N Y/N Y/N Y/N Y/N Y/N

% E/T


A.1 Environmentally sustainable activities (Taxonomy-aligned) Cogeneration of heat/cool and power from bioenergy 4.20.

4.2 4% 100%








OpEx of environmentally sustainable activities (Taxonomy-aligned) (A.1)

4.2 4% 4% 0%

4% 0%

A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) Cogeneration of heat/cool and power from bioenergy 4.20. 2.2 2% Production of heat/cool from bioenergy 4.24. 1.8 2% OpEx of Taxonomy-eligible but not

environmentally sustainable activities (not Taxonomy-aligned activities) (A.2)

4.0 4%

Total (A.1+A.2)

8.2 8%

4% 0%


OpEx of Taxonomy-non-eligible activi-ties (B)

99.3 92%

Total (A+B)

107.4 100%

■ Most significant risks and uncertainties Metsä Board’s risk management is systematic and proactive, and it assesses and manages business-related risks, threats and opportunities. Metsä Board’s Board of Directors is responsible for the company’s risk management and approves its risk management policy. Metsä Board sys- tematically assesses its strategic, operational and financial risks. Key risks are accounted for in the planning processes and they are prepared for with management measures. In addition, the Corporate Management Team reviews the most significant risks as part of its management-team work. Risks that exceed the Metsä Board’s risk-bearing capacity have been transferred with insurance, derivatives and other contracts to insurance companies, banks and other counterparties. Significant damage risks are covered with the Group’s property and interruption, liability, transport damage and credit insurance policies. Identified risks and the means by which they are managed are reported to the company’s Board of Directors and the Board of Directors’ Audit Committee at least twice a year. The following risks and uncertainties with a potential impact on Metsä Board’s business operations and profitability were identified in the risk assessments carried out in 2022.

■ Market risks

Development of the world economy The global economy is marked by uncertainty, and the growth outlook has weakened due to high inflation, tighter monetary policy and capacity issues in global production and supply chains. This situation is caused by many factors, most importantly by Russia’s war against Ukraine and its consequences. Russia’s war of aggression in Ukraine has increased global geopolitical tensions, eroded consumers’ and companies’ confidence in economic development, and accelerated inflation. Especially in Europe, the war and abandonment of Russian energy has caused an energy crisis, which has significantly affected the availability and prices of energy. The impacts of sanctions imposed on Russia and the related counter sanctions as well as the risks arising from the crisis target international production and supply chains, costs and availability of production inputs, the energy infrastruc- ture and cybersecurity. The war in Ukraine is not expected to end in the short term. In addition, central banks are striving to curb inflation by raising interest rates. These factors may have negative impacts on the economy in the form of weaker growth prospects and a higher risk of recession due to higher interest


Report of the Board of Directors | METSÄ BOARD ANNUAL AND SUSTAINABILITY REPORT 2022

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