METSÄ BOARD Annual review 2024
Other work-related rights The realisation of human rights is considered as part of the development of HR processes. Investments in occupational safety and wellbeing, DEI work, and e-learning courses dealing with these topics were key practical measures affecting the realisation of human rights in 2024. In addition to the assessment of human rights impacts conducted in 2024, the Compliance and Ethics Channel, the ethics-related questions in the revised employee survey, and the collected open-ended feedback are important tools in identifying human rights impacts. Regarding the employees’ personal data protection, procedures for processing employees’ personal data have been defined, and all employees are required to comply with the Data Protection Policy in place. Metsä Board uses advanced technical and organisational means for implement- ing data protection and information security, and the same is required of companies providing occupational healthcare services as part of the agreements. To ensure data protection, employees are offered e-learning courses such as the data protection course mandatory for all employees. In addition, a mandatory advanced e-learning course is provided for HR personnel and supervisors, which deals especially with the processing of employees’ data and related special legislation. Data protection themes are discussed in meetings organised with heads of HR and the owners of key HR processes four times a year. Moreover, everyone has the right to submit requests concerning their personal data through Metsä Group’s website. Financial resources allocated to the management of material impacts In 2024, voluntary social expenses totalled EUR 4,6 million. These include, for example, the costs of occupational health services, recreational activities, occupational safety equipment and lunch expenses. The employees’ training expenses in 2024 totalled EUR 1,5 million.
also choose to submit a report anonymously through the Compliance and Ethics Channel. All accidents and hazardous situations are investigated. The investiga- tion creates conditions for avoiding similar situations and identifying any shortcomings in safety management. When the investigation report is completed, a summary of the investigation is distributed to all Metsä Group business areas. Actions Metsä Board surveys the measures targeted at its own workforce based on the identified impacts. Impacts on the company’s own workforce are systematically assessed in the double materiality assessment, in which attention is paid to the results of surveys focusing on the employees such as the annual employee survey. Based on the results of the employee survey, an action plan is drawn up for the areas with the weakest results. Supervisors discuss the results of the employee survey with their own teams. The discussion can also involve the HR function and a third party if required. Based on the results, the teams choose the required measures, and their implementation is monitored at team meetings and by the company management. The effectiveness of the implemented measures is assessed with the employee survey, Pulse survey and the DEI surveys conducted during 2022-2024. The surveys measure the realisation of ethical and equal operations, the commitment of employees, and the quality of leadership. Based on the reports made through the Compliance and Ethics Channel, and other cases submitted for investigation to the Compliance Committee, an idea of the realisation of ethical operations at an annual level can be formed afterwards. Equal treatment and opportunities for all The focal points of the Metsä For All vision are equality and gender equality, diversity, inclusion, and cultural change. They guide the development of employee processes and the annually determined measures for achieving the vision. As part of the continuous development work, an equal pay survey is con- ducted annually, employees are trained regularly, and measures are taken to ensure that the gender distribution in leadership training corresponds to the DEI targets. In successor planning, attention is paid to the goal of a more balanced gender distribution in company duties. Metsä Board’s recruitment partners are committed to the DEI targets. Anonymous recruitment is the main recruitment method. It supports the diversity of employees by encouraging people with different backgrounds to apply for jobs at Metsä Board. Anonymous recruitment encourages employees to consider their biases and their potential impact on recruitment. After the introduction of anonymous recruitment, the share of women of all recruited employees has increased by 21% in relative terms from 2021 (28%) to 2024 (34%). Based on the results of the 2022 ethics barometer, increasing awareness of the Metsä for all vision and strengthening its implementation locally was determined as a development area. To promote it, a workshop-based programme was launched for local management. In the workshops, development measures will be determined based on the results of the DEI survey conducted among local employees. A total of 11 workshops were organised at Metsä Board in 2022–2024. Key areas of development
identified in the DEI surveys include the unequal distribution of workload, the unequal treatment of employees and poor work-life balance. During 2024, a training programme focused on themes related to mental safety was launched as a continuation of the DEI workshops for occupational health and safety committees. The programme covers topics such as inappropriate treatment, bullying, harassment, discrimination and psychological safety, as well as ways to address grievances. Training will continue in 2025. Training and skills development The aim is to ensure the availability and retention of skilled employees by investing in development programmes, successor planning, cooperation with educational institutions and employer image. Competence surveys support the development of multiple skills and competence measurement. Personal assessments and wider competence surveys can guide the individual, group and organisational level competence and the content of development programmes. Metsä Board encourages its employees to actively develop their com- petence and participate in different types of training. Everyone is provided with a personal development plan to support their development at both the personal and team levels. In 2024, competence was developed in the academies for finance, sales, procurement, sustainability and leadership. In addition, planning for a production academy was initiated. Mentoring programmes and job rotation support the employees’ professional growth and enable the use of tacit knowledge. The implementation of competence development is monitored at two levels. Metsä Board monitors the number of personal development plans and employee survey results related to the opportunities to use one’s own competence. In addition, feedback is collected on each academy and other training programmes. Metsä Board’s employees have a bonus scheme, and the personal performance bonus targets of each employee include a sustainability target. Personal goals and areas of development are set annually, and their progress is monitored in performance and development appraisals (PDAs), which all employees conduct with their supervisor twice a year. The bonus scheme does not cover trainees, thesis workers, employees who have worked less than four months during the bonus scheme year or individuals who are not in an employment relationship at the time of the bonus payment. Working conditions All Metsä Board’s employees are included in the same HR management system, which reduces the risk of employment conditions or wages in breach of the law or agreements. In some duties, employees have access to flexible working hours and a hybrid model, which enables them to work remotely part of the week. The company supports the employees’ wellbe- ing at different stages of life and enables a long career by offering various solutions such as job rotation. Health and safety In Metsä Board, safety management is based on the prevention of hazards and risks. Operations are guided by safety processes and standards and work instructions. The e-learning course in the principles of safety management is mandatory for the production units’ employees. The general safety induction e-learning course dealing with hazards and risks
is mandatory for the company’s own workforce working at Metsä Board’s production units and construction sites. Accidents are prevented with common safety-at-work standards, continuous proactive measures – such as risk assessments, safety obser- vations, safety walks and safety training – and investments improving safety. Safety-at-work standards have been drawn up for the riskiest duties. The permit to work standard covers the most important of these: lockout/tagout, working at heights, lifting work, work in confined spaces, excavations and hot work. The zero accidents target is supported by long-term focal areas for safety – the deployment of common safety-at-work standards, personal risk assessments and the development of hand safety. The measures determined based on the focal areas guide the development of safety work, define the key targets and make safety work more predictable. In 2024, the key focal areas in safety work included the adoption of Metsä Board’s main rules for safety and the training programme for safety management. The main rules for safety, based on Metsä Group’s standard safety operating methods, were launched to make the work environment safer. The goal is to encourage employees to pay attention to the preven- tion of serious accidents. The training programme for safety management was launched for production employees at production units in Finland. Matters discussed included safety responsibilities, high-quality proactive safety work, committing teams to safety work, and the importance of a caring safety culture. In 2025, the programme will be expanded to the Husum paperboard and pulp mill, and to safety training for employees. Occupational safety actions are actively monitored in the HSEQ system, in which the actions are categorised based on their impact on occupational safety. The zero accidents target is used to assess the effectiveness of occupational safety actions in the big picture. Using health checks and health surveys, occupational healthcare evalu- ates employees’ health in view of the demands of their duties and the expo- sures related to their work. The healthcare services of leased labour are handled by their own employer. The most common occupational illnesses are allergic skin or respiratory reactions caused by dust or chemicals. Workplace conditions are made as health secure as possible – for example, in terms of tidiness and adequate ventilation. The appropriateness and adequacy of personal protective equipment is also ensured. Metsä Board has not been made aware of any fatalities from occupational diseases among its own or its service providers’ workforce. To support work performance, operating models have been defined for rehabilitative activities and early support. A substance abuse programme is also in place. The implementation of early support measures is moni- tored in relation to the defined targets and needs. Supervisors are offered guidelines and training for managing wellbeing at work. In 2024, Mind and Work training was offered to supervisors, and supervisors and HR were trained in the implementation of early support as part of day-to-day management. In 2024, the focal area in promoting wellbeing at work was on the employees’ musculoskeletal condition and support for mental wellbeing. Webinars and info sessions were organised for the employees on these topics. In addition, a year-long trial on an individual working time model for shift work was initiated in 2024 at all the production units in Finland. The experiences were positive, and the trial will be continued in 2025.
Business operations and value creation 2 This is Metsä Board 4 CEO’s review 6
Strategy and financial targets
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Value creation
Financial development 10 Key figures 12
Report of the Board of Directors
20 20 37 70 89 96
• Sustainability statement
General information
E – Environment
S – Social responsibility
G – Governance
Annexes to the Sustainability statement
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
Incidents, complaints and severe human rights impacts
In 2024, Metsä Board was made aware of incidents that might have had a direct or indirect negative impact on the company’s human rights obliga- tions. Despite Metsä Board’s continuous efforts towards its zero accidents target, one serious accident leading to the permanent injury of a Metsä Board employee occurred in 2024 in addition to slight personal injuries (see the table Health and safety ). The accident was thoroughly investigated in cooperation with the authorities. Corrective and preventive actions were adopted, and key learning points were shared in all Metsä Group business areas to prevent the occurrence of similar accidents in the future. In 2024, the company received three reports related to harassment or discrimination. One of the harassment cases led to the termination of the employment relationship, and one to a written warning. The Board of Directors also requested an external independent party to carry out an investigation based on an employee’s claims related to discrimination and inappropriate treatment. None of the reports of inappropriate behaviour to the company concerned forced labour or the use of child labour. Incidents concerning the occupational safety and other work-related rights of suppliers’ employees are discussed under S2 – Workers in the value chain . The mechanisms for identifying, reporting and investigating grievances are discussed under G1 – Business conduct .
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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