Metsä Board Sustainability Report 2022

Sustainability management

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At Metsä Board, sustainability is based on compliance with good corporate governance, bearing social and environmental responsibility, respecting business ethics and human rights, as well as the continuous improvement of operations with respect to all of the above. In addition to our own operations, we also expect sustainability from our suppliers, customers and other partners.

Sustainability governance model At Metsä Board, the realisation of sustainability is monitored and supported by the company’s Board of Directors, CEO and Corporate Management Team. Sustainability is incorporated in the company’s strategy, long-term business and investment plans, risk assessments and annual action plans approved by the Board of Directors. The CEO is responsible for the implementation of the sustaina- bility measures per instructions provided by the Board. In accord- ance with the annual plan, the CEO presents to the Board a review of environmental matters and a sustainability review focusing on the progress towards sustainability targets twice a year, as well as the reviews of work safety and R&D once a year. The company’s Corporate Management Team prepares sustainability-related matters before the CEO presents them to the Board. The Board discusses and approves the sustainability matters presented by the CEO, including the sustainability targets and related investment plans, and monitors their implementation annually.

Of the members of the Corporate Management Team, the Senior Vice President, Development, is responsible for research, product and business development, and sustainability. The SVP, Development, participates in Metsä Group’s Sustainability Process Management Team and reports on the realised results of the sustainability measures to the Sustainability Process Management Team quarterly. The CFO chairs Metsä Board’s Risk Committee, which deals with sustainability-related risks as part of the company’s general risk assessment. The results of the company’s risk assessment, includ- ing risks related to sustainability, are presented to the Board and the Audit Committee twice a year. In addition, the Audit Committee handles biannually an information security review and annully a compliance report. Other sustainability issues, such as investment plans, are also presented to the Board and the committees as appropriate. Metsä Board’s Product Safety and Sustainability Director reports on the realisation of sustainability and development needs

Sustainability reporting is developing

When it enters into force, the new EU directive concerning sustainability reporting will have a major impact on corporate sustainability reporting. At Metsä Board, we have initiated preparations by adopting the ESG structure in our current sustainability report and by acquainting ourselves with the new reporting standards and verifying our key sustain- ability information. We have also adopted a reporting tool that enables the digital and machine-readable reporting of both financial and sustainability information. “There will be a stronger link between sustainability reporting and financial reporting. For example, Metsä Board reports on its climate impact, but it must also consider climate-related risks from a business perspective,” says Henri Sederholm , CFO.

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