Metsä Board Annual review 2023

S2 – Workers in the value chain

METSÄ BOARD Annual review 2023

Health and safety

Non-employee workers in the company’s own workforce include workers who have concluded an agreement on the supply of labour with Metsä Board, that is, self-employed people and work- ers provided by companies that primarily engage in employment activities. No significant changes usually take place in the number of workers over the year. Recruitment includes permanent new hires. Employee turnover includes all leavers, whatever the reason (excluding transfer of business), divided by the number of employees. The figure includes permanent and employment relationships. The share of anonymous recruitment of vacancies open to all includes the recruitment carried out in the Workday system. Workday is used in most recruitment. For example, cases in which the job applicant directly contacts the production unit are not included in the calculation. The share of women in management includes women whose management level is VP/SVP/CEO, and who have a management IPE level. The remuneration figures are reported based on the number of employees with an active employment relationship on 31 Decem- ber 2023. The total remuneration ratio of women to men has been calculated as an average of women and men in the same pay category, weighted by the number of employees. If pay categories are not in use in the unit, remuneration has been compared within the same mill. The table indicates the three largest operating countries. In calculating the ratio of the highest paid individual to the median annual remuneration for all employees, the median excludes employees whose employment began during the report- ing year, or who were absent for more than three months during the reporting year, as well as the remuneration of the highest-paid individual. The adequate wage indicator has been calculated by comparing employees’ total remuneration with market data on the adequate wage in the area in question. The number of work-related accidents is indicated separately for the company’s own employees and service providers’ employees. The accident frequencies, TRIF and LTA1F, only include the company’s own employees, because information about service providers’ actual working hours is unavailable. LTA1F includes all work-related accidents that have led to at least one day of absence. Frequencies have been calculated per million hours worked. The number of fatal work-related accidents includes the company’s own employees and service providers’ employees. The employee survey results are based on the employee survey conducted every two years. The results are compared with European benchmarks, and the level of job satisfaction is derived from this. All Metsä Board employees can respond to the survey. Responses are collected on a scale of 1−4 (fully disagree/ agree), and an external service provider converts the responses to indexes on a scale of 0−100 (100 = everyone fully agrees). Compared with the standard, the target of AAA is “very good”.

2023

2022

Material impacts, risks and opportunities related to workers in the value chain

OWN EMPLOYEES Occupational accidents

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

23 6.1

26 6.7

Material sub-sub-topic

Impacts

Risks and opportunities for Metsä Board Management

TRIF

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

Lost time occupational accidents Lost time accident frequency, LTA1F

Risk : Metsä Board may unknowingly support operations contrary to its values. Suppliers’ employees or con- tract entrepreneurs may experience weaker work ability, satisfaction and commitment to cooperation with Metsä Board. Metsä Board’s reputation as a sustainable and safe partner is put at risk. Opportunity : The suppliers and their employees work ability, wellbe- ing and commitment to cooperation with Metsä Board increases. Metsä Board’s reputation as a sustainable and safe partner strengthens.

Metsä Board’s requirements and control mechanisms such as the model for combating the grey economy may have a positive impact on the working conditions of suppliers’ employees. Inadequate working conditions weaken the quality of life and wellbeing of suppliers’ employees and their families, increase inequality and risk the work-life balance Metsä Board’s safety requirements can positively influence the wellbeing and work ability of suppliers’ employees and the wellbeing of the employees’ families. Deficiencies in Metsä Board’s health and safety requirements or in the over- sight of their implementation weaken the work ability of suppliers’ employees, as well as their physical and mental wellbeing, and increase work-related accidents.

• The Supplier Code of Conduct contains requirements for fair employment practices. • Compliance is ensured with supplier audits and assessments. • Metsä Board follows due diligence in the Know Your Business Partner background check, which reviews known human rights violations, among other things. • The model for combating the grey economy is in use in construction projects. • The Supplier Code of Conduct contains requirements for occupational safety management. • Compliance is secured with targeted supplier audits and assessments. • The safety management system covers service providers working in Metsä Board’s operations. Occupational safety is continuously developed jointly with service providers. • In Wood Supply, forest site preparation days and safety walks at loading and unloading sites are conducted regularly.

4.0

5.4

Fatal occupational accidents

0 0 0

Occupational diseases

0 0

Strategy and financial targets

Fatal occupational diseases SERVICE PROVIDERS Occupational accidents Fatal occupational accidents

Value creation

4 0

Financial development 10 Key figures 12

• Health and safety

Family-related leave

Report of the Board of Directors

2023 2,343

20 72

• Sustainability statement • Sustainability statement assurance report

Employees entitled to take family-related leave Employees entitled to take family-related leave, % Number of women on family-related leave

100 44 8.5 159 8.7

Women on family-related leave, % Number of men on family-related leave

Consolidated financial statements

Men on family-related leave, %

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

Other work-related rights • Child labour • Forced labour

Figure for comparison unavailable.

Risk : Metsä Board unknowingly supports operations contrary to its values, which risks Metsä Board’s reputation as a sustainable partner and operator.

An infringement of work-related rights in Metsä Board’s supply chain causes human suffering and inequality and undermines the quality of life of em- ployees and their families.

• The Supplier Code of Conduct contains requirements for respecting human rights. • Compliance is ensured with supplier audits. • Metsä Board follows due diligence in the Know Your Business Partner background check, which reviews known human rights violations, among other things.

Total remuneration

2023

The annual total remuneration ratio of the highest paid individual to the median annual total remuneration for all employees (excluding the highest-paid individual)

37.8

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

Figure for comparison unavailable.

■ Targets Metsä Board has set sustainability targets related to value chain workers and supplier commitment in the Code of Conduct, as well as supplier assessments and audits. These targets are discussed under G1 – Business conduct . ■ The identification and assessment of material impacts, risks and opportunities The material impacts, risks and opportunities related to workers in the value chain 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 Sustainability related to workers in Metsä Board’s value chain is guided by Metsä Group’s Supplier Code of Conduct, approved by the company’s Board of Directors, and the safety management system. Metsä Board’s minimum requirement in supply agreements is that suppliers commit to Metsä Group’s Supplier Code of Conduct or equivalent supplier-specific principles. The safety management system covers all employees of service providers working in Metsä Board’s operations.

One of Metsä Board’s strategic programmes focuses on safe and effi- cient operations and organic growth. The programme’s focal areas include the continuous improvement of occupational safety. One of the goals is to reduce the number of work-related accidents. Working conditions The Metsä Group Supplier Code of Conduct includes several requirements related to the working conditions of suppliers’ employees, with which suppliers must comply: • Fair employment practices

Reporting principles for metrics The figures for the company’s own workforce include the entire Metsä Board Group. The number of employees used in the calculations is indicated as the number at the end of the reporting period (31 December 2023), excluding metrics related to the coverage of collective agreements, social security and family-related leave, the report- ing date of which is 30 September 2023. Any changes in the last quarter are not expected to affect the result of these metrics. The number of employees also includes non-active employees such as employees on family-related leave. Metsä Board annually employs around 300 seasonal summer employees, thesis workers and trainees, some of whom are not employed at the end of the reporting period, when the number of employees is determined.

• A living wage as required by laws and regulations • Freedom of association and collective bargaining • Respect for privacy • Anti-harassment • Equal opportunities and non-discrimination

170 Remuneration report 174 Investor relations and investor information

The implementation of the Supplier Code of Conduct is the responsibility of Metsä Group’s procurement organisation, which also handles centrally the procurement of Metsä Board’s raw materials and services. The head of the procurement unit reports to Metsä Group’s President and CEO.

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