METSÄ BOARD Annual review 2023
■ Policies In its Environmental policy, Metsä Board is committed to protecting the environment, preventing environmental pollution and continuously developing production processes by employing the best available methods and techniques. In the Leader in sustainability strategic programme, the environmental focus is on implementing the planned actions aimed at achieving the strategic sustainability targets in water and energy efficiency, for example. Environmental management and continued environmental performance are guided by the requirements of the production units’ certified quality, environmental and energy management systems. The production units’ environmental management practices are described in more detail in the company’s internal environmental management policies. A key goal is to actively engage in preventive environmental work, which is the most effec- tive way of preventing leakage and disruptions. Production unit employees must continuously observe their work environment, actively make HSEQ observations and adopt immediate corrective action if required. Regular environmental walks are carried out at Metsä Board. In addition, employ- ees are offered training and regular info sessions on environmental topics. All Metsä Board employees have the right and responsibility to report a situation that may cause a leakage or malfunction. Any infringement of environmental permit limits and significant deviations are investigated, and corrective actions are determined. The production unit’s management is always in charge of the investigations, as well as the adequacy and implementation of corrective actions. The terms and conditions of maintenance and investment project agree- ments for production unit sites contain minimum requirements regarding the environment for goods and service suppliers. Suppliers are required to immediately report any observed hazards, accidents or other equivalent matters to Metsä Board’s contact person. Suppliers must participate in the investigation of any environmental deviation or damage resulting from their operations, determine corrective actions and take part in compensating for the damage in accordance with the applicable law and the “polluter pays” principle.
of other greenhouse gases such as methane and nitrous oxide. Emissions to air are reduced with a meticulous control of the combustion processes and the purification of flue gases. Wastewater discharges primarily consist of nutrients (phosphorus and nitrogen), organic substances measured as chemical and biological oxygen demand, as well as suspended solids. The wastewaters of pulp production also contain organic chlorine compounds, sodium and sulphates. Emissions to water are reduced through reduced water use, more efficient processes and efficient abatement technology. Metsä Board’s emissions to air and water are presented in the tables on page 40 . The emissions of individual production units are presented in the table on page 71 . Metsä Board has environmental liabilities related to former activities on industrial sites that have since been closed, sold or leased, and from decommissioned landfill sites. Financial provisions for the costs of land rehabilitation work have been made in cases where it has been possible to measure the Group’s liability for land contamination and any post-treat- ment obligations. Metsä Board’s environmental liabilities in 2023 totalled EUR 2.0 million (2.0), and its environmental expenses amounted to EUR 6.8 million (11.7). The environmental expenses consist mainly of expenses related to the use and maintenance of environmental protection equipment, expenses related to waste management and environmental insurance, and the depreciation of capitalised environmental expenses. No significant environmental impacts, claims or compensation related to the pollution of air, water and soil were recorded in 2023, nor was any significant media visibility related to these topics seen. Environmental permit deviations are presented in the table on page 40 . Microplastics Metsä Board’s products, produced mainly from renewable raw materials, offer an alternative to plastic packaging and enable the reduction of microplastics. Products are described in more detail under E5 – Resource use and circular economy .
Reporting principles for metrics Emissions to water and air include the material emissions from Metsä Board’s production units. Emissions are also reported to the authorities. Water discharges are determined based on laboratory meas- urements. Emissions to water are calculated as a combination of waterflows and concentrations. Any wastewater discharges of third parties handled in the wastewater treatment plants are excluded from reporting. Emissions to air are determined based on continuous and/or one-off measurements. The final emission is calculated as a combination of airflows and concentrations. Emissions are allocated to internal and external inflows by first making an assumption, based on prior measurements, of the reduction in chemical oxygen demand (COD) for each inflow,
and later adjusting them to correspond to the unit’s actual COD reduction. Other emissions are allocated based on the flow. At integrated mills, the amount of COD is allocated to parties using the wastewater treatment plant based on the quality of COD. Discharges fed through external (usually municipal) wastewater treatment plants are taken into account with the assumption of an 85 per cent reduction in COD. Biological oxygen demand (BOD) and emissions of phosphorus and suspended solids are calculated based on the flow, using the following residual concentrations: BOD 10 mg/l, total phosphorus 0.5 mg/l and suspended solids 10 mg/l. Total nitrogen emissions are considered to be zero, as municipal wastewater contains excess nitrogen and the reduction of BOD binds nitrogen to bio- mass, reducing the unit’s total nitrogen emissions. A seven-day measuring period (BOD7) is used to determine BOD.
Business operations and value creation 2 This is Metsä Board 4 CEO’s review 6
Strategy and financial targets
8
Value creation
Financial development 10 Key figures 12
Report of the Board of Directors
20 72
• Sustainability statement • Sustainability statement assurance report
74
Consolidated financial statements
E3 – Water and marine resources
78 Notes to the consolidated financial statements 126 Parent company financial statements 129 Notes to the parent company financial statements 142 The Board’s proposal to the Annual General Meeting for the distribution of funds 143 Auditor’s Report 147 Shares and shareholders 151 Ten years in figures 152 Taxes 153 Production capacities 155 Calculation of key ratios and comparable performance measures Corporate governance 157 Corporate governance statement 165 • Board of Directors of Metsä Board 168 • Corporate Management Team of Metsä Board
Impacts, risks and opportunities related to water and marine resources
Impacts
Risks and opportunities for Metsä Board
Management
Water
Water withdrawals : Metsä Board’s production units are located in areas at low or low-medi- um water risk that have large surface water re- serves. Metsä Board’s operations are designed so they do not affect other parties’ rights or opportunities to use water. Water withdrawals are presented in the table on page 42. Water consumption : The production process of pulp and paperboard products requires plenty of water. However, water consumption is low in relation to the volume of water used. Of all the water consumed, approximately 96 per cent is returned to waterbodies after use, and the remaining 4 per cent evaporates in the process or is bound to the products. Wastewater discharges : Metsä Board’s production generates water discharges. The impacts, risks and opportunities, as well as management methods related to water dis- charges, are discussed under E2 – Pollution.
Opportunity : The production units’ location in areas at low water risk supports the company’s competitiveness in a changing climate. The target of reducing process water use offers cost benefits, improves energy efficiency and helps minimise water risk. By reducing its water use, Metsä Board can strengthen its reputation as a sustaina- ble operator. Risk : If the company is unable to reduce its water use in line with the target, it will lose the cost benefits from reduced water use and will fail to minimise water risks. Metsä Board’s reputation as a sustainable operator will suffer.
• The production units are located in areas at low or low-medium water risk. • Process development and the adoption of new tech- niques reduces water use and increases water recycling in the production process, decreasing the need to withdraw more raw water. • The best available techniques are used and systemat- ically operated in production. Environmental perfor- mance is monitored continuously. Actions related to water discharges are described in more detail under E2 – Pollution.
■ Actions
Emissions to air
t
2023
2022
Pollution of air, water and soil All Metsä Board production units have a valid environmental permit. The company uses the best available techniques in production and continu- ously monitors that its mills operate in compliance with the environmental permits issued to them. Any deviations and related corrective actions are immediately reported to the authorities. Production processes are developed in line with continuous improvement and targets. Environmental impact assessments are conducted in process change projects if required. Most of the company’s emissions to air originate in the pulp mills’ and power plants’ combustion process. The primary emissions are carbon dioxide, sulphur dioxide, nitrogen oxides and particles. Small amounts of reduced sulphur compounds are generated at the Husum pulp mill. In addi- tion to carbon dioxide, the combustion processes generate small amounts
Sulphur (SO 2 )
176
418
Nitrogen oxides (NO x )
1,285
1,226
Particles (PM2.5)
55
285
Positive impact on the environment and society or on Metsä Board’s business Negative impact on the environment and society or on Metsä Board’s business Neutral impact on the environment and society or on Metsä Board’s business
Emissions to water
t
2023
2022
Nitrogen (N)
165
172
170 Remuneration report 174 Investor relations and investor information
Adsorbable organic halogen (AOX) Chemical oxygen demand (COD) Biological oxygen demand (BOD)
47
50
Metsä Board’s 2030 sustainability target
10,645
10,368
840
647
2030 target
2023
2022
2018
Phosphorus (P) Suspended solids
23
23
1,885
1,517
Reduction in process water use per produced tonne from the 2018 level, %
-35%
+2.0%
-12%
21 m 3 /t
Environmental permit deviations at Metsä Board’s mills
Mill
Date of incident
Incident
Corrective actions
Simpele Kaskinen
7/2023 8/2023
Wastewater nitrogen emission exceeded the permit limit Wastewater nitrogen emission exceeded the permit limit
Adjustment of nutrient dosage at the treatment plant
COD load matched to the nutrient situation
40
41
Report of the Board of Directors | METSÄ BOARD ANNUAL REVIEW 2023
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