Metsä Board Annual review 2023

S – Social responsibility

METSÄ BOARD Annual review 2023

Metsä Board’s 2030 sustainability targets

S1 – Own workforce

2030 target

2023

2022

Anonymous recruitment for vacancies open to all, %

100

Business operations and value creation 2 This is Metsä Board 4 CEO’s review 6

Women in management positions, %

>30

Material impacts, risks and opportunities related to own workforce

Total recordable incident frequency, own employees (TRIF)

6.1

6.7

Employee job satisfaction

AAA

A+

Material sub-sub-topics

Impacts

Risks and opportunities for Metsä Board Management

Equal treatment and opportunities for all • Gender equality and equal pay for work of equal value • Diversity • Measures against violence and harassment in the workplace • Training and skills development

Strategy and financial targets

The previous result of the employee survey is from 2021.

Opportunity : The most suitable professionals are selected for key duties, which improves Metsä Board’s employer image, as well as its innova- tiveness and performance. Risk : The most suitable professionals are not selected for key duties, which weakens Metsä Board’s employer image, as well as its innovativeness and performance.

If equality is realised in the treatment, compensation and re- cruitment of employees, wellbeing can increase, and opportunities for continuous learning and career development can improve. If equality is not realised in the treatment, compensation or re- cruitment of employees, wellbeing and opportunities for continuous learning and career development would be weakened. Actions promoting working con- ditions, such as company-specific collective agreements, flexitime and individual working time model for shift work, positively impact employees’ work ability and wellbeing. Inadequate working conditions would weaken the quality of life of employees and their families and increase inequality. Actions promoting health and safety positively impact employees’ general physical and mental well- being and work ability. Inadequate actions for securing health and safety would negatively impact employees’ general physi- cal and mental wellbeing and work ability.

• Anonymous recruitment is the company’s main recruit- ment method. • Competence development and performance manage- ment are systematic. • DEI (diversity, equality and inclusion) activities are invested in. • The share of women is increased at different organisa- tional levels. • Everyone can report grievances through the Compli- ance and Ethics Channel.

Value creation

■ Progress in targets • Anonymous recruitment for vacancies open to all – Metsä Board initiated anonymous recruitment in 2022. The 2023 results offer a good starting point for the 2030 target. • Women in management positions – Despite the measures taken, the share of women in management positions did not increase in line with the target in 2023. The measures’ effectiveness and proportionality in terms of the target will be assessed in 2024. • Total recordable incident frequency, own employees (TRIF) – TRIF progressed towards the zero accidents target. Unfortunately, some of the accidents were serious, so the emphasis on proactive safety work and preventing serious work-related accidents must continue. • Employee job satisfaction – The result remained the same as in the previous employee survey. The goal is to enhance the implementation of the measures set based on the employee survey and to assess any other measures affecting job satisfaction. ■ The identification and assessment of material impacts, risks and opportunities The material impacts, risks and opportunities related to the company’s own workforce have been identified in a double materiality assessment based on the principles of the company’s risk management process. The materiality assessment is discussed on pages 26–28 . ■ Policies The sustainability of Metsä Board’s own workforce is guided by applicable legislation, as well as policies comprising Metsä Group’s policies approved by the company’s Board of Directors, such as the Code of Conduct, the Metsä for all vision and management systems. The policies apply to all Metsä Board employees. The key occupational safety training applies to the company’s own employees and leased labour. The Motivated people strategic programme focuses on the competence development of management and employees’ ; the mills’ common operating model; a diverse, equal and inclusive (DEI) culture; the imple- mentation and development of an ethical and respectful company culture, and ensuring future employee needs. The goal is that everyone in the workplace community understands the significance of their role and work in strategy implementation. The Safe and efficient operations and organic growth strategic programme focuses on topics such as the continuous improvement of occupational safety. One of the goals is to reduce the number of work-related accidents.

Equal treatment and opportunities for all Metsä Board is committed to promoting the diversity, equality and inclu- sion (DEI) of its own workforce. This work is guided by Metsä Group’s Code of Conduct, Equality policy and the Metsä for all vision, published in 2021. The DEI steering group, set up in 2023, handles the practical guidance of Metsä Board’s equality work, which aims to ensure the implementation of the Metsä for all vision and the company’s other principles. The Code of Conduct and Equality policy encompass the prohibition of discrimination based on gender, age, origin, race, nationality, language, religion, belief, opinion, political activity, trade union activity, family relations, pregnancy, health, disability, sexual orientation or any other personal characteristics. Indirect discrimination is also prohibited. The non-discrimination principle applies throughout the life-cycle of an employ- ment relationship, regardless of whether the employment relationship is permanent, temporary or part-time. Awareness of diversity, equality, inclusion and non-discrimination is promoted through the Code of Conduct and DEI e-learning courses, which are mandatory for employees. The themes are part of the induction of new employees and apprentices, and supervisor and leadership trainings. Training and skills development Metsä Board’s management and employees’ skills development are guided by the Human Resources policy. Metsä Board’s management and HR are in charge of implementing the policies included in the Human Resources policy. Management and supervisory work is supported through coaching, where participants discuss matters such as Metsä Group’s good leadership framework. Employees’ skills are developed long-term in line with Metsä Board’s strategy and goals. Working conditions Metsä Board complies with the applicable practices for working conditions in its operating countries, in addition to local legislation. In its Code of Conduct, the company is committed to fair terms and conditions of employment. In Finland, Metsä Board follows company-specific collective agreements for the chemical forest industry. All Metsä Board production units and 88% of the employees are located in Finland and Sweden, both of which have high-standard statutory requirements concerning working conditions such as reasonable working hours, annual leave, parental leave and part-time work. The wage payment practices for the family leave of employees in Finland have been harmo- nised to a level that exceeds the requirements of family leave legislation and provides parents more equal opportunities to care for their child. All employees are paid a living wage (situation at the end of the reporting period, 31 December 2023). Metsä Board’s employees can choose whether they belong to a trade union or not.

Financial development 10 Key figures 12

Report of the Board of Directors

20 72

• Sustainability statement • Sustainability statement assurance report

Working conditions • Secure employment • Working time • Adequate wages • Social dialogue • Collective bargaining • Work-life balance

Consolidated financial statements

Opportunity : Workforce’s work ability, job satisfaction and commitment to the company increase. This improves Metsä Board’s employer image and performance.

• Metsä Board’s production units are in countries with high-quality statutory requirements concerning working conditions. Local legislation is followed in all operating countries. • Everyone has the possibility to choose whether they belong to a trade union or not. • Metsä Board uses company-specific collective agreements. • All Metsä Board employees are covered by the central- ised HR management system. • Employees can work remotely depending on the nature of their work. • Employees have flexible working hours. • An individual working time model for shift work is being tested at Finnish production units. • Actions promoting health and safety at Metsä Board include, for example: - Certified safety management systems - Training, opportunities for safety observations, ongoing risk assessments and defined processes for responding to accidents - Operating models for early support and return-to-work support (rehabilitative activities), and a substance abuse programme - Training of supervisors in managing occupational safety and wellbeing - Employees are offered healthcare and a sports and culture benefit that anticipate and promote the main- tenance of work ability • Metsä Board has focused its production in countries with no significant risk of child or forced labour. • Metsä Board respects human rights in all its operations, does not accept human rights violations in any form, and is committed to ensuring that its operations do not result in negative human rights impacts. • Employees receive human rights training through e-learning courses. • Everyone can report grievances through the Compli- ance and Ethics Channel.

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

Risk : Workforce’s work ability, job satisfaction and commitment to the company decline. This weakens Metsä Board’s employer image and performance.

• Health and safety

Other work-related rights • Child labour • Forced labour

Risk : Metsä Board suffers permanent damage to its reputation. Workforce’s job satisfaction and commitment to the company decline.

Violation of labour rights would cause human suffering, inequality and a deterioration in the quality of life of employees and their families.

170 Remuneration report 174 Investor relations and investor information

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

Report of the Board of Directors | METSÄ BOARD ANNUAL REVIEW 2023