METSÄ BOARD Annual review 2024
The identification and assessment of material impacts, risks and opportunities The material impacts, risks and opportunities related to water and marine resources have been identified in a double materiality assessment based on the principles of the company’s risk management process. The materi- ality 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 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 production units’ impacts on water resources 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. Matters considered include water withdrawal, the thermal stress caused by the water returned or the impact of wastewater on waterbodies. The impacts are also assessed in connection with process development and environmental risk mapping. Several production units have waterbody monitoring obligations and commitments. These are often regionally comprehensive long-term programmes for monitoring the long-term consequences of operations. The pulp and paper industry requires a lot of water, but in relation to the volume of water used, Metsä Board’s water consumption is very low. Metsä Board’s operations are designed so they do not affect other parties’ rights or opportunities to use water. Surface water accounted for nearly 100% of Metsä Board’s water withdrawals. A small amount of groundwater is used mainly for hygiene and laboratory purposes. Production processes account for roughly half Metsä Board’s water use, and cooling purposes for the rest. The cooling water circulates in a separate system and does not need to be treated. However, the cooling water returned to waterbodies has a local heating impact. Process water is carefully treated before it is returned into waterbodies. All Metsä Board’s production units are located in areas at low or low-medium water risk that have large surface water reserves. None of the production units withdraw water from an area of high water stress or high overall water risk (WRI Aqueduct Water Risk Atlas). Water stress indicates water demand in relation to water availability. Overall water risk indicates the risks related to water resources, taking the volume and quality of water resources and regulation in the area into account. The physical climate risks of each Metsä Board production unit were assessed in a climate risk analysis conducted in 2024. According to the assessment, none of Metsä Board’s production units have material climate risks related to drought or floods. The engagement of local communities in the production units’ opera- tions from an environmental perspective is discussed under E2 – Pollution .
Policies The environmental policy lays the foundation for environmental targets. Resource efficiency is a key part of the policy, and in compliance with it, Metsä Board is committed to reducing its water use in line with sustainabil- ity targets. In the environmental permits of production units, attention is paid to water resources and their adequacy. Environmental management and continued environmental performance are guided by the requirements of the production units’ certified quality, environmental management and energy management systems, as well as the principles of environmental management. The production units conduct planned internal and external audits in accordance with the ISO 14001 and ISO 50001 standards. Metsä Board does not have separate policies or practices related to seas and oceans, as it does not use sea water in its production process. 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. Policies related to water discharges are discussed under E2 – Pollution . Actions Metsä Board’s water consumption is low in relation to the volume of water used. Of all the water consumed, approximately 95% is returned to waterbodies after use, and the remaining 5% evaporates in the processes or is bound to the products. Increasing the efficiency of water use supports the circular economy and energy efficiency and minimises emissions. Metsä Board’s actions to reduce process water use in line with the 2030 sustainability target include investments in processes and wastewater treatment, as well as process development to use less water. The actions improve water recycling and reduce water withdrawal from waterbodies. In addition to the company-level target, all production units have targets for water use, which are regularly monitored. Water use at Metsä Board’s production units is presented in the table on page 97. Due to the gas explo- sion at Metsä Fibre’s Kemi bioproduct mill, the targets for enhancing water and energy use specified in the Kemi board mill’s development programme were not fully met in 2024. Other actions to enhance water use were carried out as changes to operating methods or as training for employees. The efficiency of water use was improved by measures to enhance water recycling, for example at Kyro and Simpele. More information about the renewal projects in Kyro and Simpele can be found in section E1 - Climate Change Actions . The capital expenditure for key actions taken in 2024 to make water use more efficient cannot be calculated, as some of the expenses are indirect and are generated as part of other investments. During the next few years, future investments related to improving water use efficiency, and the timing of such investments, will be known to Metsä Board on an ongoing basis. The impacts, risks and opportunities, as well as management methods related to wastewater discharges, are discussed under E2 – Pollution .
Financial effects As Metsä Board’s production units are located in areas at low water risk, no water-related expected economic impacts were identified in the materiality assessment or in the analysis of climate change-induced physical risks conducted as part of the materiality assessment. The production units’ close proximity to abundant surface water reserves is an opportunity for the company in the management of climate-change-induced physical risks, for example. Increasing the efficiency of water use also affects energy efficiency, thus enabling cost savings.
Reporting principles for metrics Water withdrawals include the water withdrawn at Metsä Board’s production units for production and cooling. Water consumption is an estimate of the amount of water that has evaporated in production and wastewater treatment, and water bound in products and wastewater treatment sludge. The calculation is based on an estimate, which considers the matters mentioned above, as well as direct water withdrawal, the water contained in raw materials and the water returned to waterbodies. Process water means the water moved from the product production process to wastewater treatment. Process water use per tonne produced is based on continuous measurements and is calculated from the process water used as cubic metres per tonne of product produced. The figure for the reduction of process water use has been retro- actively revised for the comparison years, as a mistake was found in the 2018 water figures. The figure for 2018 was revised from 20.8 m 3 /tonne to 20.5 m 3 /tonne, leading to the reduction in 2022 being revised from the previously reported -12% to -11%, and the reduction in 2023 from the previously reported +2.0% to +3.5%. Wastewater is water returned to waterbodies after the wastewa- ter treatment process. In addition to process water, the volume of treated wastewater includes the water from wastewater treatment. At Metsä Board’s production units, the flow of wastewater discharges is determined with continuous flow meters. The measurement of wastewater load is described in more detail on page 56. Measurements based on flow meters carry a margin of error. However, the flow meters are regularly calibrated, and the meas- urement results are also controlled by the supervisory authority. The volume of stored water is not disclosed due to non-material- ity: as a rule, water is not stored. The metrics have not been validated by an external party.
Business operations and value creation 2 This is Metsä Board 4 CEO’s review 6
Strategy and financial targets
8
Value creation
Water withdrawals and consumption and wastewater discharges
Financial development 10 Key figures 12
1 000 m 3
2024
2023
WATER WITHDRAWALS
Report of the Board of Directors
Surface water
105,796
101,884
20 20 37 70 89 96
• Sustainability statement
Groundwater
33
58
General information
Total water withdrawals
105,829
101,943
E – Environment
S – Social responsibility
WATER CONSUMPTION Water consumption
G – Governance
5,189
3,874
Annexes to the Sustainability statement
WATER INTENSITY (water consumption m 3 /turnover) Water intensity
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
0.003
0.002
WASTEWATER Wastewater discharges
48,540
45,380
The turnover used in water intensity calculations can be found in the financial statements under Consolidated statement of comprehensive income. Turnover is reported in euros.
196 Remuneration report 201 Investor relations and investor information
56
57
Report of the Board of Directors | METSÄ BOARD ANNUAL REVIEW 2024
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