SUSTAINABLY FROM METSÄ 2016
FORERUNNER IN BIOECONOMY Metsä Group is a forerunner in bioeconomy utilising renewable wood from sustainably managed northern forests. Metsä Group focuses on wood supply and forest services, wood products, pulp, fresh forest fibre paperboards and tissue and cooking papers. Metsä Group’s sales totalled EUR 5.0 billion in 2015, and it employs approximately 9,600 people. The Group operates in some 30 countries. Metsäliitto Cooperative is the parent company of Metsä Group and owned by approximately 116,000 Finnish forest owners.
WE CREATE WELL-BEING
STAKEHOLDER ENGAGEMENT • • • •
Ethical business practices Safety at work Responsible management Local livelihoods and society
WE BRING THE FOREST TO YOU RAW MATERIALS AND SUPPLY CHAIN • Sustainable forest management, certification, biodiversity and multiple use of forests • Sustainability in the value chain • Traceability of raw materials
WE OFFER SUSTAINABLE CHOICES PRODUCTS AND SERVICES • Sustainable, safe and recyclable products • Customer-focused services and solutions • Innovations and renewal
WE WORK FOR A BETTER CLIMATE AND ENVIRONMENT RESOURCE EFFICIENCY AND EMISSIONS • Efficient use of raw materials, energy and water • Value of side streams • Share of bioenergy • Emissions to water and air
YEAR 2015 HIGHLIGHTS
86% OF PRODUCTION MADE WITH BIOENERGY
-34%
IMPROVED SCORING IN WWF’S ENVIRONMENTAL PAPER COMPANY INDEX
FOSSIL CO2 EMISSIONS PER PRODUCT TONNE SINCE 2009
100/100
IN CDP FOR METSÄ BOARD
7%
BETTER ENERGY EFFICIENCY SINCE 2009
THE ELECTRICITY SELF-SUFFICIENCY RATE OF METSÄ FIBRE’S PULP MILLS
150%
PROCESS WATER USE PER PRODUCT TONNE
-15% SINCE 2010
SICKNESS ABSENTEEISM
3.9% METSÄ FOREST OFFERS PEFC™ AND FSC® GROUP CERTIFICATION TO FOREST OWNERS.
87%
COVERAGE OF CODE OF CONDUCT TRAINING
84% OF WOOD CERTIFIED
-15% LOST-TIME ACCIDENT FREQUENCY RATE
OVER
47% 1,000
LOWER LOST-TIME ACCIDENT FREQUENCY RATE AT METSÄ WOOD SINCE 2014
DAYS WITHOUT ACCIDENTS AT METSÄ TISSUE’S DÜREN MILL IN GERMANY
CREATING VALUE
Building the bioeconomy and offering better products and solutions is a common interest. Close cooperation with our stakeholders is key in creating value locally, nationally and internationally.
RESOURCES AND COMPETENCES PERSONNEL • 9,600 employees in 26 countries
STAKEHOLDERS Customers and consumers
• Personnel turnover 7.9%
WOOD AND OTHER RAW MATERIALS • Supplying 30 million m3 of wood with 100% traceability
Sub contractors and suppliers
Research organisations Own personnel
Authorities, legislators and political decisionmakers
Media
• Pine, spruce, birch and aspen from northern European forests
Corporate networks
NGOs
ENERGY • Primary energy consumption 28.8 TWh
Trade associations
• 86% of production made with bioenergy WATER • Water consumed 294 million m3
Shareholders
Investors and analysts
Cooperative’s ownermembers
Other forest owners
Local communities
• 99% surface water
FINANCIAL • EUR 2,878 million in liquidity and undrawn credit facilities
Schools and universities
LOCAL VALUE
• Capital employed EUR 4,063 million 93.5% permanent employees RESEARCH, DEVELOPMENT AND INNOVATIONS • EUR 18 million in R&D • Networks and bioeconomy partnerships PRODUCTION • 29 production units in 7 countries in Europe • Over 20,000 suppliers
100 school visits and 850 summer jobs 91% of wood and 86% of other purchases from suppliers in production countries EUR 678 million in wages, salaries and benefits (incl. social security and pension costs) Supporting the growth of bioeconomy ecosystems 30 million seedlings delivered to forest owners in 2015 EUR 410 million to Finnish forest owners from wood sales EUR 300 million to harvesting and transportation entrepreneurs in Finland
INTERNATIONAL VALUE Pulp, paperboards, wood products, tissue and cooking papers worth EUR 5 billion in sales
NATIONAL VALUE Vast employment impact: each direct forest industry job creates 3 other jobs indirectly
EUR 49 million of dividends to other shareholders than the Cooperative’s owner-members Added-value for new bioproducts, biomaterials and bioenergy increasing
EUR 50 million paid as interests to Metsäliitto Cooperative’s owner-members, based on the proposal of the Board of Directors
Safe, high-quality products to support sustainable growth, improve the standard of living and raise the level of hygiene globally Leading the way in boosting the circular economy
R&D&I resulting in technological innovations and bioeconomy solutions
Reducing the dependence on fossil resources
Producing 16% of Finnish renewable energy; with the start of the bioproduct mill in Äänekoski in 2017, the share will increase
EUR 82 million as interest expenses
Advancing the circular economy: over 90% of side streams from production utilized as materials or in energy generation The value of exports from our mills in Finland EUR 2.7 billion, corresponding to 5% of Finnish exports
RECYCLABLE PRODUCTS
The main raw material of Metsä Group’s products is renewable wood from sustainably managed northern forests. They are excellent alternatives to products made out of non-renewable natural resources.
We are a pioneer in the sustainable management of forest assets as well as providing services to forest owners.
Wood products are manufactured efficiently by using less energy and producing less waste.
Fresh fibre softwood pulp of the highest quality is made using the best and latest available technology, with a strong environmental performance.
Lightweight paperboards reduce environmental impacts as their manufacturing consumes less energy, water and raw material compared to competing grades.
Tissue and cooking papers are designed to improve health, hygiene and well-being. Tissue papers are produced close to the markets, which mean short transport distances.
BENEFITS TO OUR CUSTOMERS
The origin of our certified or controlled wood is always known. The wood we use comes from sustainably managed forests. Our way of working guarantees to our customers that there will be forests in the future as well.
RECYCLING, RE-USE AND RECOVERY
Our unique know-how in making the most of wood, combined with the global need for renewability and the circular economy opens up new possibilities for making a positive impact.
Wood products are strong, light and consistent in appearance, and store carbon during their entire life time.
Fresh fibre pulp is naturally pure and therefore a safe raw material for products such as paperboards, tissue and cooking papers. In addition to pulp which is a biomaterial, we provide bioenergy, biochemicals and fertilisers generated as by-products at our pulp mills.
Metsä Group’s products are recyclable.1) Paper and board is the most recycled packaging material in Europe with a rate2) of
81%.
Not all paper and paperboard can be collected, due to for example non-recoverable products such as tissue and interior decoration materials. Fresh fibre is strong, lightweight and safe, and plays a key role in keeping the fibre loop circulating.
Using sustainable paperboards reduces the end products’ environmental impact throughout their life cycle as the boards are efficient, produce less waste and reduce emissions in transportation.
Tissue papers bring comfort and improve hygiene. Using biodegradable cooking papers can reduce food waste in professional kitchens by up to 50%. They also save energy, water and detergents by making dishwashing easier.
Without it, all fibre would run out in about half a year. Each recycle lap deteriorates the quality of the fibre. Fibres are currently used
3.5
times
on average.
1) Food Service boards and other products can be recycled, if the right facilities exist in a local area. Barrier-coated paperboards can also be used for energy recovery by incineration. 2) Source: Confederation of Paper Industries (CEPI) 2011 data.
CERTIFICATION INDICATES SUSTAINABLE FOREST MANAGEMENT
ONLY
10%
OF THE WORLD’S FORESTS ARE CERTIFIED
The wood Metsä Group uses comes from northern forests where growth exceeds their use. We always know the origin of the wood. No tool communicates sustainable forestry like reliable and globally known forest certification.
DEGREE OF FOREST CERTIFICATION VARIES GLOBALLY NORTH AMERICA
WESTERN EUROPE
CIS
ASIA
35%
65%
8%
2%
SOUTH AMERICA
AFRICA
OCEANIA
2%
1%
7%
FOREST CERTIFICATION IN METSÄ GROUP’S WOOD SUPPLY AREA
SWEDEN
FINLAND
55%
80% ESTONIA
RUSSIA
55%
5%
LATVIA
60%
84%
OF THE WOOD METSÄ GROUP SUPPLIES COMES FROM CERTIFIED FORESTS
LITHUANIA
50%
EFFICIENCY IN CIRCULAR ECONOMY We promote the circular economy in our operations. We always use water efficiently even though most of our mills are located in the world’s waterrichest areas. We seek new end-uses for our valuable materials.
86% We plant
4
of our production is made with bioenergy
seedlings for every harvested tree
Over
15
bark, branches and tops for % bioenergy production
25
for pulp, paperboard, tissue and cooking % papers as well as new bioproducts
60
for sawn timber and % construction products
90%
of the side streams of our production are utilised as raw material or energy
-34% fossil CO2 emissions per product tonne since 2009
99% of the water used is surface water from lakes and rivers
Our products replace fossil alternatives
TOWARDS GLOBAL SUSTAINABILITY GOALS The United Nations Sustainable Development Goals (SDGs) are a large-scale global commitment. The SDG’s transformed the wide sustainability agenda into concrete targets. Metsä Group’s activities support reaching the SDGs.
6 – Clean water and sanitation We reduce emissions to water and improve the efficiency of process water use. We use 99% surface water instead of ground water. Forests are significant as hydrologic systems.
7 – Affordable and clean energy We are a significant producer and user of renewable energy. We improve the energy efficiency of our processes. Today, Metsä Group produces 16% of the renewable energy generated annually in Finland.
8 – Decent work and economic growth We employ 9,600 people directly, and three times more indirectly. We enable economic growth with improved use of resources, and we emphasise safety at work both in our own and our suppliers’ operations. We train our personnel regularly in code of conduct.
2 – Zero hunger Products made from fresh forest fibres are safe during their life cycle. They don’t pass any harmful substances on to foodstuffs, they protect the product throughout the supply chain and promote hygiene. Paperboard packaging and cooking papers help minimise food waste.
15 – Life on land We ensure biodiversity by sustainable forest management and certifications. We integrate ecosystem and biodiversity values into national and local planning and operations. The sustainable future of forests is our key priority.
14 – Life below water We use efficient water purification systems to minimise emissions to water. We monitor the fish stocks in the seas, lakes and rivers near our mills. Using our biodegrable products doesn’t increase the amount of marine debris.
12 – Sustainable consumption and production Our products are made of renewable wood from sustainably managed forests, and they can replace fossil alternatives. Recyclability after use is another benefit of our products. To advance the circular economy, over 90% of our production sidestreams are utilised as material or energy.
13 – Climate action We have invested significantly in reducing fossil CO2 emissions, and have decreased them by over a third per tonne produced from 2009. We provide renewable energy for society.
17 – Partnerships for the goals We are active partners in international and local industry and sustainability networks. We build partnerships with small as well as large-scale industrial companies in our value chain. We are active in research, development and innovation networks.
11 – Sustainable cities and communities Our mills are important in their communities as they provide work and energy for the society. Good environmental management helps to keep the communities pleasant. Forestry creates livelihood in rural areas. Using wood as a building material is a sustainable choice as wood products store carbon.
9 – Industry, innovation and infrastructure We are building new concepts for sustainable industry, continuing to improve our resource efficiency, and investing in bioenergy. We build partnerships with small as well as large-scale industrial companies in our value chain. We are active in research, development and innovation networks.
Cover: Carta Integra 235 g/m2, interior: Galerie Art Silk 170 g/m2. © Metsä Group 2016
METSÄ GROUP P.O. Box 10 FI-02020 METSÄ Tel. +358 10 4601 www.metsagroup.com/sustainability