E2 – Pollution
METSÄ BOARD Annual review 2024
environmental pollution and continuously developing production processes by employing the best available methods and techniques. Metsä Group’s environmental policy is followed worldwide by all Metsä Group companies and legal units, and the impacts of the Group’s operations have been identified across the value chain. In the Leader in sustainability strategic programme, the environmental focus is on implementing the planned actions aimed at reaching the strategic sustainability targets in water and energy efficiency, for example. Environmental management and continued environmental performance are guided by the requirements of the production units’ certified quality, environmental management and energy management systems. The production units’ environmental management practices are described in greater detail in the company’s internal environmental management policies. A key goal is to actively engage in preventive work, which is the most effective way of preventing leakage and disruptions. Production unit employees must continuously observe their work environment, actively make environmental observations and adopt immediate corrective actions if required. Regular environmental walks are carried out at Metsä Board. In addition, employees are offered training and regular info sessions on environmental topics. The production units systematically conduct internal and external audits in accordance with the ISO 14001 and ISO 50001 standards. All Metsä Board employees have the right and responsibility to report a situation that may cause a leakage or malfunction. Any infringement of environmental permit limits and significant deviations are investigated, and corrective actions are determined. The production unit’s management is always in charge of the investigations, as well as the adequacy and implementation of corrective actions. The terms and conditions of maintenance and investment project agree- ments for production unit sites contain minimum requirements regarding the environment for goods and service suppliers. Suppliers are required to immediately report any observed hazards, accidents or other equivalent matters to Metsä Board’s contact person. Suppliers must participate in the investigation of any environmental deviation or damage resulting from their operations, determine corrective actions and take part in compensating for the damage in accordance with the applicable law and the “polluter pays” principle. Ways of ensuring suppliers’ responsibility are discussed in more detail under G – Governance .
about engaging stakeholders is provided under S3 – Affected communities . Production processes are developed in line with continuous improvement and targets. Environmental impact assessments are conducted in process change projects if required. All Metsä Board production units come under the scope of the EU’s Industrial Emissions Directive and BAT conclusions. In addition, the main boilers of the production units’ power plants come under the scope of the EU’s Industrial Emissions Directive and the BAT conclusions concerning large combustion plants. Emissions to air and water remained almost at the same level compared to the previous year. This is the result of the general market situation and production curtailments. Taxonomy-aligned turnover, capital expenditure and operating expenditure are presented starting from page 37. Self-suf- ficiency is described in the report of Metsä Board’s Board of Directors under Balance sheet and financing. Due to the gas explosion at Metsä Fibre’s Kemi bioproduct mill, the targets for enhancing water and energy use specified in Metsä Board’s Kemi board mill’s development programme were not fully met in 2024. Microplastics Metsä Board’s products do not contain microplastics, but some of the products used for industrial purposes at production units contain components classified as microplastics. For example, the Husum board mill has an extrusion coating line where food service boards especially are coated with polyethylene (PE). The waste material generated in coating is recovered and delivered to cooperation partners for reuse. In its packaging materials, Metsä Board uses plastic in addition to kraftliner to protect the ready paperboard products during storage and transport. Metsä Board’s products, produced mainly from renewable raw materials, already offer an alternative to plastic packaging and enable the reduction of microplastics. The products are described in greater detail under E5 – Resource use and circular economy . Financial effects In 2024, Metsä Board’s environmental liabilities totalled EUR 1.7 million (2.0), and its environmental expenses amounted to EUR 14.7 million (6.8). The environmental expenses consist mainly of expenses related to the use and maintenance of environmental protection equipment, expenses related to waste management and environmental insurance, and the depreciation of capitalised environmental expenses. The company has environmental liabilities related to former activities on industrial sites that have since been decommissioned, sold or leased, and from closed landfill sites. Financial provisions for the costs of land rehabilitation work have been made in cases where it has been possible to measure the company’s liability for land contamination and any post-treat- ment obligations. The provisions total EUR 1.7 million. The pollution-related risks and opportunities identified in the materiality assessment are presented in the table on page 52. The likelihood of significant accidental discharges is low due to the control measures in use, and no material economic impacts such as compensation or depollution costs are known of or reasonably expected. No significant environmental impacts, claims or compensation related to the pollution of air, water and soil were recorded in 2024, nor was any significant media visibility related to these topics seen. Environmental permit deviations are presented in the table on page 54.
Pollution-related impacts, risks and opportunities
Business operations and value creation 2 This is Metsä Board 4 CEO’s review 6
Impacts
Risks and opportunities for Metsä Board
Management
Pollution of air, water and soil
Risk: Deviations in emissions may cause a liability to pay compensation and costs from corrective action. In addition, Metsä Board’s reputation as a sustainable opera- tor may suffer. Opportunity: The use of the best available techniques and certified management sys- tems are verifiable proof of the minimising of emissions to customer s.
In addition to GHG emissions, Metsä Board’s production generates other emissions to air. Most of the emissions to air originate in the production units’ and power plants’ combustion process. Metsä Board’s production also generates wastewater discharges. The re- porting year’s emissions to air and water and environmental permit deviations at production units are presented in this section’s tables. Several deviations from environmental permit emission limits – es- pecially in the same mill areas – could be harmful to the environ- ment. The company has environmental liabilities related to former activities on industrial sites that have since been closed, sold or leased, and from decommissioned landfill sites. The emission load on small waters and waterbodies caused by Metsä Group’s wood supply is discussed in section E4 – Biodiversity and ecosystems . Air, water and soil pollution may occur as a result of technical defects or human errors in Metsä Board’s or its service providers’ operations.
• Emissions to air are reduced with a meticulous control of the combustion processes and the purifi- cation of flue gases. • Emissions to water are reduced through reduced water use, more efficient processes and efficient wastewater treatment. • The best available techniques are used and sys- tematically operated in production. Environmental performance is monitored continuously. Proactive measures aimed at preventing interruptions in- clude comprehensive preventive maintenance and observations in production. • Any deviations in emissions and related cor- rective actions are immediately reported to the authorities. • Production is concentrated in countries where en- vironmental legislation requirements are stringent.
Strategy and financial targets
8
Value creation
Financial development 10 Key figures 12
Report of the Board of Directors
20 20 37 70 89 96
• Sustainability statement
General information
Microplastics
E – Environment
Opportunity : Demand for Metsä Board’s products increases.
Metsä Board’s products, produced mainly from renewable raw materials, are an alternative to plastic packaging and enable the reduction of microplastics.
• Nearly all Metsä Board’s raw materials are fos- sil-free. Active research and development is being conducted to replace the remaining fossil-based raw materials
S – Social responsibility
G – Governance
Annexes to the Sustainability statement
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
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
Targets Metsä Board does not have internal targets related to pollution, but the Environmental Protection Act and the emission limits defined in the production units’ environmental permits guide operations and thus encourage environmental pollution to be proactively prevented or limited to a minimum. The emissions-related permit conditions set for individual production units are also the internal targets of each production unit. In accordance with the environmental policy, negative environmental impacts are minimised and environmental efficiency is improved by developing operations in compliance with the principles of sustainability and continu- ous improvement. The identification and assessment of material impacts, risks and opportunities The material impacts, risks and opportunities related to pollution 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. Ensuring undisturbed and uninterrupted operations in all conditions is key in the risk assessment of production units. The assessment process of production units’ environmental risks is guided by the ISO 14001 and ISO 50001 management systems. The key identified risks are included in the company-level risk management process. The pollution-related impacts of production units are assessed in connection with the environmental impact assessments of investment projects and during the environmental permit processes, for example. The need for environmental impact assessments is determined by the local EIA authority. After an environmental impact assessment and environmental permit process, the production units operate in accordance with their
environmental permit and the company’s operational management system. Local communities have a statutory right to participate in the production units’ environmental permit processes by issuing reminders and opinions related to the permit application. Reminders and opinions are taken into account in the permit process. The production units also receive feedback from local communities to which they respond, and which they record in the HSEQ system. Some production units organise open house events and town hall-style meetings where the mill’s environmental matters are discussed. Policies Most of Metsä Board’s emissions to air originate in the pulp mills’ and power plants’ combustion process. The primary emissions are carbon dioxide, sulphur dioxide, nitrogen oxides and particles. Small amounts of reduced sulphur compounds are also generated at pulp mills. Their amounts are reduced with the meticulous control of combustion processes and purification of flue gases. Wastewater discharges primarily consist of nutrients (phosphorus and nitrogen), organic substances measured as chemical and biological oxygen demand, as well as suspended solids. The wastewaters of pulp production also contain organic chlorine compounds, sodium and sulphates. Emis- sions to water are reduced by reducing water use, making processes more efficient and using efficient abatement technology. The company generates very small amounts of heavy metal emissions to water and air, and most of the substances such as zinc and nickel originate from the wood raw material. Metsä Board’s normal operations do not generate emissions to soil containing heavy metals. In Metsä Group’s environmental policy, Metsä Board is committed to protecting the environment and ensuring chemical safety, preventing
Actions
Pollution of air, water and soil The best available techniques (BAT) are used in production. All Metsä Board production units have a valid production unit-specific environmental permit. The environmental permit and the related programme for monitor- ing emissions and impacts set the minimum requirements for the obser- vation of environmental impacts. In addition to emissions, observations typically focus on waterbodies, fish stock, air quality and noise levels. Reg- ular risk assessments and official inspections ensure the adequate scope of observations and performance of production units. Any deviations and related corrective actions are immediately reported to the authorities. In 2024, no environmental pollution causing significant damage and corrective action occurred at Metsä Board. Environmental permits and the best available techniques are also ways to consider stakeholders living in the vicinity of production units in pollution prevention. More information
196 Remuneration report 201 Investor relations and investor information
52
53
Report of the Board of Directors | METSÄ BOARD ANNUAL REVIEW 2024
Powered by FlippingBook