to the company’s SVP, Development, and presents topical sustain- ability matters to the entire Corporate Management Team on a regular basis. The Product Safety and Sustainability Director leads a team of experts, which works in close cooperation with produc- tion, wood supply, procurement and logistics, HR, marketing and sales, communications, investor relations and legal affairs. Wood supply, as well as sourcing and legal affairs, is centralised in Metsä Group. Sustainability is part of the entire personnel’s daily work. We also expect sustainability from our suppliers, customers and other partners. Further information on sustainability governance can be found on pages 34–39.
based on Metsä Board’s operating result (weighting 50%) and the strategic targets defined by the Board of Directors (weighting 50%), including the sustainability targets, as well as the realisation of Metsä Group’s EBIT multiplier. In 2022, the CEO’s sustainability target was related to safety at work. The remuneration of the other members of the Corporate Management Team is based on Metsä Board’s operating result (weighting 30% or 50%), the targets of their respective areas of responsibility (weighting 50% or 70%), including the sustainability targets, as well as Metsä Group’s EBIT multiplier. In 2022, the sustainability targets of the other Corporate Management Team members related to the reduction of energy and water use, sustainability cooperation with customers, and the development of sustainable products, for example.
The link between sustainability and remuneration The personal performance bonus target of each Metsä Board employee includes an ESG target. The CEO’s remuneration is
SUSTAINABILITY MANAGEMENT AT METSÄ BOARD
Board of Directors
Metsä Group Sustainability Process Management Team
Corporate Management Team
Product Safety and Sustainability Director
Business functions
Sustainable and ethical operations, as well as compliance with the law, are the foundation of Metsä Board’s business operations. Our operating methods are based on Metsä Group’s Code of Conduct and policies. Our sustainability targets are based on our company’s strategy, Metsä Group’s sustainability targets and materiality analysis on corporate responsibility (page 5).
ESG assessments Metsä Board actively participates in the following ESG and sustainability assessments:
ESG ASSESSMENT
RATING
COMMENT
UPDATED
CDP
Climate Change: A Water Security: A Forests: A
Metsä Board is at the highest level in combating climate change and in the sustainable use of water and forests. The scale ranges from D to A.
Q4/2022
EcoVadis
87
Metsä Board is at the highest level, Platinum, which puts it among the top 1% in the paper, paperboard and packaging manufacturers category. The highest possible score in the assessment is 100.
Q2/2022
MSCI
AAA
Metsä Board is at the highest level. The scale ranges from CCC to AAA.
Q4/2021
Sustainalytics
14.6
Metsä Board has a low risk of experiencing significant financial impacts caused by ESG factors. A score of 0 indicates the lowest risk and 100 the highest risk.
Q3/2022
ISS ESG Corporate Rating B-
Metsä Board is at Prime level. The scale ranges from D- to A+.
Q4/2022
ISS QualityScore
Environment: 2 Social: 6 Governance: 3
A score of 1 indicates the lowest governance risk and high-level sustainability reporting, while 10 is the weakest score.
Q4/2022
VigeoEiris, Moody’s ESG Solutions
68
Metsä Board is on the Advanced level. The highest possible score in the assessment is 100. Metsä Board is rated B in the Ellen MacArthur Foundation’s Circulytics® assessment. The scale ranges from E to A.
Q3/2021
Circulytics®
B
Q4/2022
3
METSÄ BOARD SUSTAINABILITY REPORT 2022
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