Metsä Board Annual Review 2024

Due diligence process

ESRS content index

METSÄ BOARD Annual review 2024

This table presents the core elements of the due diligence process and the paragraphs in the Sustainability statement providing further details about each topic.

The ESRS content index lists the disclosure requirements that Metsä Board has followed in preparing its sustainability statement and where they can be found.

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

ESRS INDICATOR

LOCATION & COMMENT

CORE ELEMENTS OF DUE DILIGENCE

PARAGRAPHS IN THE SUSTAINABILITY STATEMENT

ESRS 2 – General Disclosures BP-1 – General basis for preparation of sustainability statements

a) Embedding due diligence in governance, strategy and business model

The role of the administrative, management and supervisory bodies in identifying and managing sustainability impacts, risks and opportunities Interests and views of stakeholders and the related identification process

Reporting Principles

BP-2 – Disclosures in relation to specific circumstances

Reporting Principles

Strategy and financial targets

b) Engaging with affected stakeholders in all key steps of the due diligence

Interests and views of stakeholders and the related identification process

GOV-1 – The role of the administrative, management and supervisory bodies

The role of, information provided to and sustainability matters addressed by the adminis- trative, management and supervisory bodies The role of, information provided to and sustainability matters addressed by the adminis- trative, management and supervisory bodies

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Value creation

Stakeholder engagement in the materiality assessment

GOV-2 – Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies

S1 Engaging with the workforce and workforce representatives about impacts S2 Engaging with value chain workers about impacts S3 Engaging with affected communities about impacts S4 Engaging with consumers and end-users about impacts

Financial development 10 Key figures 12

GOV-3 – Integration of sustainability-related performance in incentive schemes

Integration of sustainability-related performance in incentive schemes

GOV-4 – Statement on due diligence

Due diligence process -table

GOV-5 – Risk management and internal controls over sustainability reporting

Risk management and internal controls over sustainability reporting

c) Identifying and assessing adverse impacts

The identification and assessment of material impacts, risks and opportunities

Report of the Board of Directors

SBM-1 – Strategy, business model and value chain

Business model, value chain and strategy

E1, E2, E3, E4, E5, S1, S2, S3, S4, G1 The identification and assessment of material impacts, risks and opportunities

20 20 37 70 89 96

• Sustainability statement

SBM-2 – Interests and views of stakeholders

Interests and views of stakeholders

G1 Mechanisms for identifying, reporting and investigating concerns

General information

SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model

S1 , S2 , S3 , S4 Material impacts, risks and opportunities -tables; S1, S2, S3 , S4 The identification and assessment of material impacts, risks and opportunities Risk management and internal controls over sustainability reporting ; Material sustainability-related impacts, risks and opportunities ; E1, E2, E3, E4, E5 The identification and assessment of material impacts, risks and opportunities

G1 Prevention and detection of corruption and bribery

E – Environment

d) Taking actions to address those adverse impacts

E1 , E2 , E3 , E4 , E5 , S1 , S2 , S3 , S4 Actions Through actions, adverse impacts and risks are managed, and opportunities are promoted. G1 Relationships with goods and service suppliers

IRO-1 – Description of the processes to identify and assess material impacts, risks and opportunities

S – Social responsibility

G – Governance

Annexes to the Sustainability statement

G1 Prevention and detection of corruption and bribery

IRO-2 – Disclosure requirements in ESRS covered by the undertaking’s sustainability statement

Material sustainability-related impacts, risks and opportunities

e) Tracking the effectiveness of these efforts and communicating

Metrics and targets The effectiveness of actions is measured and communicated using Metsä Board’s strategic 2030 sustainability targets E1, E2, E3, E5 The identification and assessment of material impacts, risks and opportunities The environmental permit and the related monitoring programme set the minimum requirements for the observation of environmental impacts E4 Impact metrics related to changes in biodiversity and ecosystems

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

Policies MDR-P – Policies adopted to manage material sustainability matters

E1, E2, E3, E4, E5, S1, S2, S3, S4 , G1 Policies

Actions MDR-A – Actions and resources in relation to material sustainability matters

E1 , E2 , E3 , E4 , E5 , S1 , S2 , S3 , S4 Actions

Metrics MDR-M – Metrics in relation to material sustainability matters

E1, E2, E3, E4, E5, S1 , G1 metrics tables ; E1 , E2, E3, E4, E5, S1 , G1 Reporting principles for metrics

Targets MDR-T – Tracking effectiveness of policies and actions through targets

E1 , E2, E3 , E4 , E5, S1, S2, S3, S4 , G1 Metsä Board’s 2030 sustainability targets

S1 , S2 , S4 Actions

ESRS E1 – Climate Change E1-1 – Transition plan for climate change mitigation

S3 Engaging with affected communities about impacts

E1 Transition plan for climate change mitigation and adaptation

E1-2 – Policies related to climate change mitigation and adaptation

E1 Policies

G1 Relationships with goods and service suppliers

E1-3 – Actions and resources in relation to climate change policies

E1 Actions

E1-4 – Targets related to climate change mitigation and adaptation

E1 Metsä Board’s 2030 sustainability targets ; E1 GHG emissions reduction targets -table; E1 Reporting principles for metrics

E1-5 – Energy consumption and mix

E1 Energy consumption and combination of energy sources -table; E1 Energy generation -table;

E1-6 – Gross Scopes 1, 2, 3 and Total GHG emissions

E1 GHG emissions -table; E1 GHG intensity -table

E1-7 – GHG removals and GHG mitigation projects financed through carbon credits

Metsä Board does not have carbon capture of offsets.

E1-8 – Internal carbon pricing

E1 Financial effects

E1-9 – Anticipated financial effects from material physical and transition risks and potential climate-related opportunities

E1 Financial effects Anticipated financial effects reported partly as qualitative information.

ESRS E2 – Pollution E2-1 – Policies related to pollution

E2 Policies

E2-2 – Actions and resources related to pollution

E2 Actions

E2-3 – Targets related to pollution

E2 Targets

E2-4 – Pollution of air, water and soil

E2 Emissions to air -table; E2 Emissions to water -table; E2 Environmental permit deviations at Metsä Board’s mills -table; E2 Reporting principles for metrics

E2-5 – Substances of concern and substances of very high concern

Metsä Board does not cause emissions of substances of concern or very high concern.

E2-6 – Anticipated financial effects from pollution-related impacts, risks and opportunities

E2 Financial effects Anticipated financial effects reported partly as qualitative information.

196 Remuneration report 201 Investor relations and investor information

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Report of the Board of Directors | METSÄ BOARD ANNUAL REVIEW 2024

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