METSÄ BOARD Annual review 2024
Metrics and targets
Based on the 2022 assessment, seven themes guiding sustainability work were determined. They are described in the summary of the materiality assessment on page 26. The strategic 2030 sustainability targets were updated based on these themes. The framework of the European Sustainability Reporting Standards was not yet used to classify sustainability themes in the first assessment. The classification of impacts, risks and opportunities into topics, sub-topics and sub-sub-topics in accordance with the EU’s sustainability reporting standards was included in the 2023 assessment. As part of the work carried out in 2023, an assessment scale was drawn up. The 2024 assessment was further developed from 2023 by introducing a more detailed classification, a more specific definition of financial impacts, a review of climate scenarios and an assessment of human rights impacts conducted by an external party. Stakeholder engagement Since 2024, stakeholder feedback has been collected and analysed across Metsä Group twice a year. The results of the analysis are used in the mate- riality assessment especially to survey whether all the material impacts, risks and opportunities have been identified internally and to strengthen the internal recognition of impacts, risks and opportunities. The themes important to stakeholders are in line with the identified impacts, risks and opportunities. Stakeholder engagement and how themes important to stakeholders are addressed in the company’s strategy and business model are described under Interests and views of stakeholders . The identification and assessment of material impacts, risks and opportunities related to the environment The material impacts, risks and opportunities related to the environment have been identified and assessed using key information and methods for each topic. These include material such as the climate risk analysis conducted in 2024, risk assessments of production units and environ- mental impact assessments. The identification and assessment process is described for each topic under the relevant section: E1 – Climate change , E2 – Pollution , E3 – Water and marine resources , E4 – Biodiversity and ecosystems and E5 – Resource use and circular economy . Assessment of human rights impacts In the reporting year, an external partner carried out an assessment of human rights impacts at Metsä Board. The assessment was based on internal specialist interviews, interviews with external stakeholders, Metsä Board’s documentation and literature from public sources. External stake- holder interviews were conducted with raw material and goods suppliers, the trade union, and the Sámi Parliament. Human rights impacts were
assessed based on their likelihood, scope, remediability and scale. The assessment was conducted in compliance with the UN Guiding Principles on Business and Human Rights. The impacts were assessed using the same scale employed in the company’s general risk assessment, and the identified impacts were included in the sustainability materiality assess- ment. The assessment identified and evaluated the direct and indirect impacts across the value chain and in the affected communities, as well as the groups potentially at a higher risk of being affected by the identified impacts. The identified impacts were validated in internal workshops, and the results were presented to Metsä Board’s Corporate Management Team. After the assessment of human rights impacts, a human rights due diligence process was drawn up for Metsä Board, and further development measures related to human rights impacts were defined for the coming years. 2024 results The results of the materiality assessment are presented alongside the description of the materiality process on page 26. Sub-topics classified as moderate (a value of 5–9) or high (a value of 10–25) were determined as material sub-topics. The table does not include sub-topics of low materiality. Based on the results of the materiality assessment, Metsä Board’s key sustainability matters include climate change, biodiversity, the environ- mental impacts of products, and the occupational safety of the company’s own workforce and value chain workers. No specific functions or areas requiring a more comprehensive risk assessment were identified in the materiality assessment. In the value chain, the main themes are related to the company’ own production, wood supply and products. The main themes did not change from 2023. Compared with 2023, the following were the most significant changes in the assessment: • Climate change adaptation was assessed to be less material based on the 2024 climate risk analysis of physical risks, which indicated that the location of Metsä Board’s production units is a strength in a changing climate. • Based on a more detailed assessment of financial impacts and the 2024 update to the financial risk assessment scale, pollution-related business risks especially were considered to be less material. • Following the assessment of human rights impacts, the equal treatment and opportunities for all workers in the value chain were highlighted as a new material theme. • In the assessment, a sharper division was made between corporate culture and corruption and bribery. The root causes and impacts related to these themes are often similar, which makes it challenging to separate the themes.
TARGET
2030 TARGET
2024 ACTUAL
2024 PROGRESS
UN SDG
E – ENVIRONMENT 1. Securing biodiversity and ecologically sustainable forestry MG: Retention trees on regeneration felling sites, %
Business operations and value creation 2 This is Metsä Board 4 CEO’s review 6
• • • • • • • • • • • • • • • • • • • • • • • •
100
97
13, 15
MG: High biodiversity stumps on harvesting sites, %
100
98
13, 15
MG: Spruce as the only tree species after young stand management, %
0
26
13, 15
Strategy and financial targets
MG: Measures promoting biodiversity, number
10,000
6,586
13, 15
8
Value creation
2. Mitigating climate change and reducing emissions Improvement in energy efficiency from the 2018 level, %
+ 10
0.9
7, 12, 13
Financial development 10 Key figures 12
Fossil-based carbon dioxide emissions (Scope 1 and Scope 2 market-based), t
0
251,708
12, 13
Share of target group suppliers with targets set in accordance with the SBTi by 2024 (Scope 3), %
70
24
13
Report of the Board of Directors
Fossil-free raw materials and packaging materials, share of dry tonnes, %
100
98.9
9, 12
20 20 37 70 89 96
• Sustainability statement
MG: Amount of forest regeneration and young stand management from the 2018 level, %
+30
18
13, 15
General information
MG: Amount of forest fertilisation from the 2018 level, %
+50
-22
13, 15
E – Environment
MG: Share of continuous cover forestry in peatland forest regeneration, %
30
15
13, 15
S – Social responsibility
MG: Amount of carbon stored in wood products from the 2018 level, %
+30
-25
12, 13
G – Governance
3. Resource efficiency and sustainable production Reduction in process water use per produced tonne from the 2018 level, %
Annexes to the Sustainability statement
-35
-11
6, 12
Process waste delivered to landfills, t
0
267
12
98 Consolidated financial statements 102 Notes to the consolidated financial statements 150 Parent company financial statements 153 Notes to the parent company financial statements 166 The Board’s proposal to the Annual General Meeting for the distribution of funds 167 Auditor’s Report 171 Sustainability statement assurance report 173 Shares and shareholders 177 Ten years in figures 178 Taxes 179 Production capacities 181 Calculation of key ratios and comparable performance measures Corporate governance 183 Corporate governance statement 190 • Board of Directors of Metsä Board 194 • Corporate Management Team of Metsä Board
S – SOCIAL RESPONSIBILITY 4. Respecting everyone and doing the right thing Anonymous recruitment for vacancies open to all, %
100
99.2
5, 8
Women in management positions, %
>30
23
5, 8
5. Promoting safety and wellbeing at work Total recordable incident frequency, own employees (TRIF)
0
3.4
8
Employee commitment
AAA
A+
5, 8
G –GOVERNANCE 6. Innovation and open-minded cooperation and 7. The significance of forest-based bioeconomy to society Ethics index 100
79
5, 8
Traceability of raw materials, share of total purchases, %
100
97
9, 12
Share of certified wood fibre, %
>90
92
15
Suppliers’ commitment to the Supplier Code of Conduct, share of total purchases %
100
99.0
8, 12
Supplier assessments and audits of core suppliers, %
100
79
8, 12
MG: Joint sustainability target with partner suppliers, %
100
100
12, 13
Progress in 2024 compared with the previous year. Exceeds target (significant progress) • On target (progress as planned) • Short of target (no progress or weaker progress) •
MG: The target has been set at the level of Metsä Group. Targets will be reached by the end of 2030. For example, fossil fuels will be abandoned by 31 December 2030. Metsä Board’s target of “0 accidents at work” also applies to service suppliers. In the future, service suppliers will be included in the performance figure. The 2024 ethics index is not directly comparable with those of previous years, as the content of statements affecting the index has been revised. The targets for different topics are described in greater detail in the topic-specific sections of this Sustainability statement.
196 Remuneration report 201 Investor relations and investor information
28
29
Report of the Board of Directors | METSÄ BOARD ANNUAL REVIEW 2024
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