Skjern Paper Sustainability Report 2021

Sustainability • Status & Strategy

Sustainability with every fibre –t he fu ar ture is circul

2 0 2 1

s k j e r n p a p e r. c o m

Sustainability • Overview

Contents 4 People make a difference 6 Part of our DNA 8 We wish to be among the best in the world 10 Status and targets for the future 12 On the track to more sustainability 14 Communication and evaluation at Skjern 16 People – our most important resource 18 A good working environment is created in a joint effort

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7.3 % total reduction in CO2 emissions from 2020 to 2021

(Based on Scopes 1 and 2)

4,000 tonnes savings in CO2 emissions by utilising waste heat from Skjern Paper

20 Our staff – the most important resource 24 Sustainable products of recycled paperboard and paper 27 Processes 30 Circular production 32 Recycling – our everyday life and ambition 34 Local partnership on water 36 Waste heat is used in the local community 38 High ambitions – of course!

Sustainability with every fibre –t he fu ar ture is circul

Since its start in 1965, Skjern Paper has produced paperboard and paper from recycled materials. We have utilised local resources and sent them back to nature and the local community whenever possible.

And we still do it. When we talk about sustainability, we not only mean materials and production. Sustainability is very much about our most important resource – people. People come first – in our daily activities and in this report.

Period covered 01.01.21-31.12.21

Date of Issue Mid-April 2022

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Sustainability • Introduction

S u s t a i n a b i l i t y:

People make a difference We all know the word status. Stopping and looking back at the year gone by. This is what we do in this report. We are also taking you on a journey into the future, where we will tell you about our strategic perspectives and plans.

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In 2021, Skjern Paper produced 73,000 tonnes of paperboard and paper from recycled raw materials. Demand for products made from recyclables has been on the increase. This is good - and necessary. We need to save the resources of the Earth.

Sustainable relations As in many other sectors we have seen raw material prices almost increasing fivefold in 2021. Evidently, this affects our sales prices and creates a difficult situation for everyone.

In this situation, a good dialogue has been more important than ever. For when we know each other we better understand the position of our counterparts. Bearing that in mind we have preserved the important and sustainable relations even during a year when we have not had many possibilities of meeting in real life.

Our team makes the difference Despite COVID restrictions and social distancing 2021 was also the year in which we made efforts to join people together as a team. This is important: we are looking into digitalisation, automation, and

increasing production, but our staff members are and will always be our most important resource. Some of them talk about life at Skjern Paper in this report.

As a team, we have a common ambition: Skjern Paper will be one of the most sustainable and efficient paper mills in the world.

To attain that objective, we have prepared a strategy. It sets out the direction of how to continue our work for reducing CO2 emissions. Importantly, it also has focus on the safe working environment, where people thrive. And it discusses how to nurture local anchoring on a continuous basis. Therefore, it is more than just a climate strategy. It is a sustainability strategy.

‘Sustainability - Status & Strategy’ reflects our desire to be a transparent undertaking. It shows that we mean it when we say that we will contribute to changing the world in which we live.

We wish you pleasant reading!

Nikolaj Bjerre Thybo, CEO

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Circular production and energy consumption Skjern Paper is located in the middle of nature, and our production has been based on recyclability and circular economy since the company first saw the light of day in 1965. We are therefore well positioned when working towards a zero-carbon production in 2050. A journey that will benefit our company, our staff members, the environment, and the surrounding society.

Sustainability • DNA

Local anchoring:

Part of our DNA Skjern Paper was founded because some local entrepreneurs wished to create local jobs. Local anchoring and being an important part of people’s everyday lives are important to us. Also when planning for the future.

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Utilising local resources is deeply rooted in the Skjern Paper DNA. We are located on the river of Skjern; this river was originally a source of water for our production; today, we use a local, former drinking water well.

Wood chips for our boiler come from the neighbourhood, and we deliver waste heat to homes in the city of Skjern. Most of our staff members live in or near Skjern. All of this shows that we take it seriously when we talk about local anchoring.

We want to act responsibly Strong local anchoring calls for focused action.

We must behave respectfully. This is what we do at Skjern Paper, and what we always did. If we want to utilise local resources we must always be conscient about how we act in the company, the local community, and the world.

Economic sustainability One more decisive form of sustainability has been practiced since Skjern Paper saw the light of day. Economic sustainability. Actually, it’s quite simple. It’s all about keeping up a sound business practice, delivering quality on time, and rendering good service.

Customer satisfaction In general, we rate high on all parameters. On a scale from 1-6 we rate 5,2, which is satisfactory. We do, however, maintain a focus on how to improve.

It is also encouraging to see a complaints rate of 0.06% in 2021.

Co mp a n y fact s Name and location

Major environmental approvals

Skjern Paper A/S Birkvej 14, DK-6900 Skjern Tel. no. +45 97 35 11 55 E-mail: contact@skjernpaper.com Website: skjernpaper.com

20.12.2000: E nvironmental approval, revised general approval.

This approval is under review 08.07.2010: Environmental approval of natural gas fired boiler plant 02.10.2015: Environmental approval of wood chip fired boiler plant 01.09.2017: Approval of connection of wastewater to Tarm wastewater treatment plant

Industry/NACE code 21.12 – Production of paper and paperboard 17.12 – Production of paper pulp

Supervisory authority Waste & wastewater: Municipality of Ringkøbing-Skjern Other: Danish Environmental Protection Agency

Extent of certifications Production of paper and paperboard. Applies to all of Skjern Paper, including the company’s auxiliary processes.

“We must behave properly and respectfully and take care of each other. We must send back to nature and the local community what we receive” Nikolaj Bjerre Thybo, CEO

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Sustainability • Strategy

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We wish to be among the best in the world If we are to reduce our CO2 emissions and contribute to a better world, companies must do things differently tomorrow than today.

With a foundation based on sustainability we are already on good track – and we can become even better.

The aim of our sustainability strategy is that it contributes to us becoming one of the world’s most sustainable and efficient paper mills. Our general objectives are the following: • We wish to contribute to the transition to a circular society • We commit to complying with the Paris agreement and working for a zero-carbon production by 2050 • We wish always to develop production in view of a good working environment and a strong local anchoring

Managers responsible for sustainability in the company Together with CEO Nikolaj Bjerre Thybo, our Quality Manager, Nana Simonsen, and Environmental Manager Søren Skærbæk, have been appointed as responsible for sustainability in the company.

Growth on sustainable conditions

Resting on facts and documentation

In 2021 we produced 73,000 tonnes of paper and paperboard, and our objective is to produce 100,000 tonnes in 2030. This calls for an increase in capacity and a focus on renovation, refurbishment, efficiency, and digitalisation. All of this must happen with a sharp focus on sustainability and a good working environment. Growth must not put more pressure on the surrounding society.

We must co-exist with our neighbours with a clean conscience. This is how we create a sustainable company.

At Skjern Paper we have chosen not to make a climate compensation of our CO2 emissions.

Instead, we work with concrete, strategic measures minimising our footprint. Every measure along our sustainability journey rests on facts and documentation.

Working with UN Global Goals In our work with sustainability, we are using the UN Global Goals. We have special focus on Goals nos. 7, 11, 12, and 13. Under each of the four goals we have selected a number of specific sub-goals.

Target no. 7: Affordable and clean energy

“We must do things that make sense, and we must use our common sense and make a real difference” Nikolaj Bjerre Thybo, CEO

7.2

e wish to increase the share of renewable energy by using whenever W possible green energy and generating waste heat to the benefit of citizens in the city of Skjern. As part of our strategy, we wish to work on electrification and utilisation of heat pump technology.

7.3

e are certified under ISO 50001, energy management, and in our work W to attain energy efficiency we will, among others, transform our production, so the paper is drier before moving on in the drying process.

Target no. 11: Sustainable cities and communities 11.3 O ur supply of waste heat to the Skjern district heating company contributes to a sustainable urbanisation. In addition, as a local workplace we are important to the local community that we support through sponsorships for sports and culture.

Cer tifications Skjern Paper is certified under the following standards: • • • • •

ISO 14001 ISO 9001 ISO 50001 FSC® PEFC

11.6 We contribute to a reduction of the adverse per capita environmental impact by recycling paper from Danish households.

11.7 We are located in one of Denmark’s most beautiful natural areas, and our plantation at the mill is a favourite place for people to go for a walk, walk their dog, and take a mountain bike ride.

Target no. 12: Responsible consumption and production 12.2 Our products are certified under FSC® and PEFC. In 2022, we will prepare our system to become ready for a verification of sustainable wood chips 12.4 In our entire production, our focus is on minimising adverse impacts on human health and the environment.

12.5 We recycle paperboard and paper, thereby contributing to waste prevention. We are in the midst of a design process in view of utilisation of food and beverage cartons. This is a social responsibility that we take upon us in order to support the utilisation of difficult fibres.

12.6 With our sustainability report and the ISO 14001 environmental certification we apply a sustainable practice, integrating information about sustainability in our reporting.

Target no. 13: Climate effort We must all contribute with actions to combat climate change. We must act now if we are to avoid too high rises in temperature. For several years, we have worked on a reduction of CO2 emissions, and we continue the journey in compliance with our sustainability strategy.

Applies to FSC® certified products

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Sustainability • Strategy

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Scope 1 Covers direct emissions from activities at Skjern Paper.

Status and targets for the future In pursuance of the GHG standard we have started from 2020 to calculate our CO2 emissions. In 2021 we have calculated on Scopes 1 and 2. From 2022 we will also calculate under Scope 3 that will be part of the 2023 report.

Scope 2 Covers indirect emissions from purchased energy.

Scope 3 Will cover emissions from activities outside our organisation such as staff transport, travels, and use of our products.

Stated on Scopes 1 and 2, we emitted in 2021 a total of: 6,612 tonnes of CO2

20 %

9%

7,134

6,612

tonnes of CO2

Electricity

tonnes of CO2

80 %

91 %

2020 Scope 1

Emissions and ambitions

2021

CO2 emissions 2021: 5,886 tonnes Ambition 2030: 0 tonnes, achieved through the purchase of 100% green electricity.

Wood chips

CO2 emissions 2021: 137 tonnes (from methane in the combustion) Ambition 2030: VEII verification

Scope 2

Our reduction in total CO2 quantities from 7,134 tonnes to 6,612 tonnes is due, among other things, to the fact that our wood chip fired boiler plant supplies 96% of our process energy, and that we have used less natural gas. In addition, we used the production closure between Christmas and New Year for a service overhaul of the facility.

Gas

CO2 emissions 2021: 372 tonnes Ambition 2030: 0 tonnes, achieved through the establishment of a biogas plant in connection with our wastewater.

Diesel

CO2 emissions 2021: 115 tonnes Ambition 2030: 0 tonnes. We wish to minimise emissions from diesel year by year.

Today, we have shifted to electric forklifts, we have focus on our behaviour, and our diesel-driven vehicles do not idle. In addition, we will replace vehicles along with the development of electrofuels from PtX.

Specific CO2 emissions kg per net tonne of paper 100 80

Process water

60

100 80.2

40

90.3

81.8

20

19.8

0

8.5

2020 Total

Scope 1

2021

homes in the city of Skjern

Heated with district heating generated from waste heat from Skjern Paper

In addition, we have a CO2 emission of 1 tonne from drinking water and sanitary water.

Scope 3

Scope 2

In 2022, we also work with Scope 3, which covers transportation to and from the mill, staff transport, travels, and the use of our products. Data will be included in the 2023 report, and thereby we state all CO2 emissions.

District heating

3,200

CO2 emissions 2021: 102 tonnes Ambition 2030: Our production depends on water, but in a close cooperation with the local utility of Ringkøbing-Skjern Forsyning we make sure that it is treated and led back to the river of Skjern system.

4,000

tonnes of CO2 in 2021 Actual savings for the city of Skjern

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Sustainability • Strategy

On the track to more sustainability To achieve the ambition of becoming one of the world’s most efficient and sustainable paper mills we have defined strategic efforts in several fields.

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Our raw mate rials

Our energy consumption

Today, much of our paper comes from Denmark. Through closer cooperation with our suppliers, we will minimise the environmental impact from the purchase of our raw materials. This will affect Scope 3, covering among others transportation to and from the company.

Today, we primarily use wood chips and a minor quantity of natural gas for the paper drying process. We have an internal heat recovery system and heat pumps for the utilisation of waste heat. We continue to seek opportunities to reduce our energy consumption and new sources of waste heat; the aim is to decrease CO2 emissions from the mill by further developing the processes for using local green energy, including biogas. The aim is to use 100% green energy by 2030.

We wish to assume our social responsibility regarding the utilisation of fibres from difficult sources, and we always enter a dialogue with suppliers calling on us. One of these difficult sources is food and beverage cartons that are now being sorted out in the Danish homes. If these cartons are to become a raw material in the future, new technologies are needed. We are right now in the process of investigating the options.

We will continue to supply waste heat to Skjern district heating company. Thereby, a more environment-friendly, circular, sustainable, and cheaper solution than oil and natural gas will continue to benefit companies and most homes in the city of Skjern.

Sustainable wood chips and energy willow Wood chips make up more than 95% of the

energy consumption of our production. With local suppliers within a range of 40 km this means short-distance transportation.

In our steam production we also use energy willow. Today, we buy the entire production of the company Vestjysk Piledyrkerforening.

This corresponds to an annual quantity of 5,000 tonnes. This cooperation is in line with our ambitions about local anchoring and environmental concern. Willow has a large capacity of nitrogen uptake, and the cultivation of willow is a fine way to utilise wetlands that are unsuitable for many crops.

In addition, we have a small willow plantation near the mill.

Up to 2050 we will investigate the possibilities of how to exploit local resources even more in our energy consumption, thereby reducing CO2 emissions as measured under Scope 3.

Getting out when you come home An important part of our local anchoring is our support to a sustainable local community where it is attractive to live.

Therefore, we will continue to support local sports and cultural events.

Sponsorships today: • Skjern football • Skjern handball • War veterans at the fjord • Team Rynkeby • Skjern Cultural Centre • Mejeriet Cultural Centre

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Our waste

Our working environment

Our other consumption

Today, we recycle all waste paper from the production. In the future we wish to exploit the energy contained in residual waste that is taken to external incineration today. This will increase the value creation from production waste. We have applied for an environmental approval for a modification of our wood chip fired boiler plant, so we can incinerate the residual waste and thereby generate steam for paper drying. Measured under Scope 3 this will reduce CO2 emissions by what corresponds to 200 trips of 100 km.

To achieve the aim of increasing our production from 73,000 tonnes of paper and paperboard to 100,000 tonnes we need to automate and work smarter. This will contribute to a reduction of C02 emissions and to maintaining and improving a working environment in which our staff members thrive. Therefore, we will work also in future with tools to analyse safety and wellbeing.

We assess on a continuous basis how to become more sustainable. Minor measures also count. Is it, for instance, possible to use less stretch wrap or another packaging material? Can we find an alternative to hardboard sheets to put between products? And can we find an alternative to drinking water in plastic bottles?

We will contribute to a higher rate of recovery of our waste by source-separating more.

Therefore, we are mapping our waste fractions and are investigating the market to find suitable outlets.

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Communication and evaluation at Skjern At Skjern Paper we wish to be transparent in our sustainability efforts.

We are therefore open with our actions towards staff members, the local community, and the surrounding world. Most importantly, we need to have our staff members with us on the journey.

Today, all information about sustainability is accessible to all staff members. They receive all minutes by e-mail, and information is posted on billboards at the mill. But we can become even better, and we wish to attain the following goals:

• We will update our website continuously, so people taking an interest in us can find more information

We wish to be clear towards customers and collaborators

• Staff members get even better possibility to access information • We know more about how staff members wish to receive information • We can get together in groups and have a dialogue, for instance at semi-annual information meetings

Our sustainability strategy reflects our desire to be transparent. This is where we discuss our ambitions, targets, and actions. At the same time, we open for a peek into the everyday lives of our staff members. Sustainability – Report & Strategy must form the basis for good, productive, and honest dialogues with customers and collaborators.

Talking about our journey

Follow-up actions

We must work towards a more sustainable world driven by circular economy and respect for people and the environment. To inspire and motivate companies and consumers we will share our knowledge and findings with the surrounding world. We will do it in a way that our staff members take pride in it. We will do so in the following ways:

In this report, we account for 2021 in pursuance of the GHG protocol’s Scopes 1 and 2. In 2022, we will also account for issues under Scope 3.

This will be presented in the 2022 report.

• We will be visible on relevant social media • We will cooperate with local media when we have news

In compliance with statutory workplace assessments, we conduct assessments every year in view of improving safety and wellbeing at the workplace.

In addition, we conduct staff development interviews (MUS in Danish) every year with every single staff member; here, we also focus on wellbeing.

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Sustainability • Occupational health and safety

People – our most important resource Skjern Paper is a participant of the UN Global Compact, the world’s largest initiative for the dissemination of corporate social responsibility.

It is a natural part of our work to treat our staff members with respect and dignity, thereby avoiding discrimination.

We acknowledge the growing importance of corporate social responsibility, and we commit to being in compliance with basic principles for human rights, labour rights, environment, and anti-corruption. We have done so since 2013, and our work with the principles of the UN Global Compact is part of the efforts to improve the working environment, optimise our energy consumption, and show social responsibility.

As a medium-sized company with a staff of 74 we also assume a social responsibility.

For example, we invite local craftsmen to participate in our tenders; we take on young people for job training; we organise visits for school classes, local authorities, and similar; and we support a number of cultural and sports events in the local community.

Nikolaj Bjerre Thybo, CEO

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The repor t’s relation to Global Compact

Human rights

Labour

Environment

Anti-corruption

The company should:

Page

01. Support and respect the protection of internationally proclaimed human rights

16-19

02. Make sure that it is not complicit in human rights abuses

16-19

03. Uphold the freedom of association and the effective recognition of the right to collective bargaining

16

04. Support the elimination of all forms of forced and compulsory labour

16

05. Support the effective abolition of child labour

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06. Eliminate discrimination in respect of employment and occupation

16-23

07. Support a precautionary approach to environmental challenges

10-15, 27-39

08. Undertake initiatives to promote greater environmental responsibility

10-15, 27-39

09. Encourage the development and diffusion of environmentally friendly technologies

10-15, 27-39

10. Work against corruption in all its forms, including extortion and bribery

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Sustainability • Occupational health and safety

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A good working environment is created in a joint effort At the end of 2020, René Nielsen joined Skjern Paper as a production and occupational health and safety manager. In cooperation with the management and staff members he sets the direction of the future sustainable working environment.

As a newcomer, Rene notes how a company like Skjern Paper with many years of existence has overcome difficult times and still looks ahead. It is his job to contribute to building the framework for a good working environment along with the development of production. He is also the one to set the team in case of unforeseen events.

– To have a good working environment it is crucial to involve the thoughts of the staff members, and know-how among them is impressive. We need to learn from each other and find best practice. We must communicate and have a productive dialogue, Rene says, while he notes that there is a good sense of community at the mill.

– With investments included in the business plan and with new technologies we will see a more stable production in the future.

Producing will be easier, and staff members have better work processes, he says, pointing out that the need for workers will not decrease, but jobs will change.

Staff members follow the safety rules, use their common sense, and are successful in avoiding accidents. Therefore, Rene sees a good potential for the future safety work with no need for substantial changes.

Good sense of community In his efforts to improve the working environment Rene has a special focal point. Attention to the working environment does not take care of itself. It is created in a joint effort.

– There is a strong culture of independence at the mill, and staff members feel confident in making decisions. For such culture to exist, you need to feel closely related to your colleagues, he believes.

“Know-how among staff members is impressive. We need to learn from each other and find best practice” René Nielsen, production and occupational health and safety manager

13 years Ave r a g e s e n i o r i t y o f s t a ff me mb e r s i n 2 0 2 1

Important occupational health measures in 2021 In 2020 we set out three important objectives for 2021.

This is what we see when looking back.

No serious accidents causing absence In 2021 there were no serious accidents causing absence. We attained the objective.

Registration of near-miss events Near-miss events are what could have caused an accident. The objective was 50 registrations, and we made it to 42. Up to 2021, registrations were submitted in a table on paper. As from 2022, registration happens digitally on a computer and a mobile phone. This is smarter, and it makes it easier to follow data.

Noise-reducing measures The objective was to update a noise mapping at the entire mill. It can be difficult to communicate and coordinate work among colleagues; therefore, we have now implemented earmuff headphones, allowing people to communicate by mobile phone when they are located at opposite ends of a machine. Many of our staff members really appreciate this solution.

Other measures • Forklifts at our storage facility now have a blue rear reverse warning light for higher safety for everybody • Fall prevention has been improved with harnesses and improved heights of safety rails • We have reviewed and improved our contingency plan • We have carried out a workplace wellbeing survey • We have conducted courses to have more people understanding how the steam system works • We have launched cooperation with external collaborators regarding improved physical conditions and atmosphere

Seniority of staff members in 2021

Occupational health and safety objectives 2022 Important objectives for 2022:

28 %

0-3 years of employment

23 %

10-19 years of employment

23 %

4-9 years of employment

26 %

>20 years of employment

• We will get a proposal from an external collaborator to improve the physical conditions, making them more comfortable • We wish to minimise repetitive tasks. To do so, staff members must have alternate tasks and more competences to assume several functions • We wish to show that Skjern Paper is a good workplace, making people proud of their job • We will set up a system to better categorise occupational accidents • We must set up clearer objectives for reporting, feedback, and remediation relating to near-miss events

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Sustainability • Occupational health and safety

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Our staff – the most important resource Staff members are key when talking about sustainability at Skjern Paper. We are only sustainable if we have a good working environment where staff members feel well. Here, staff members describe a good working day.

I feel that we are one big family

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Tania Skovbjerg Jepsen has been on the cleaning team at Skjern Paper for seven years. She feels valued and finds that she learns new things every day when moving around colleagues at the mill.

In many cleaning jobs you arrive when everybody else has left. This is not the case at Skjern Paper - production takes place around the clock. Tania works in the daytime, and on her route around the mill she often has a good chat and is interested in hearing how her colleagues are doing. Already when she entered the mill for the first time, she noticed the wall with pictures of the many work anniversaries thinking this must be a good place to work.

– I am certainly not monitored; there is trust in me doing what I’m supposed to do. I believe we all feel that we have much freedom with responsibility. When I get around the mill, I take the time to ask: What are you doing here today?

I know what I have to do, and I have my own plan, she says.

And in no way does she feel unimportant.

By contrast, she feels that many efforts are being done in relation to wellbeing and safety at work.

– So unimportant – not at all. They wish to take care of us, so nothing happens to us. We are simply good at taking care of each other.

Interested in the future of the company Before the COVID shutdown, Tania was on a customer visit in England, and all in all, she is committed to her job. When she gets around the mill she feels like part of the team. She reads minutes in her mailbox and bulletins on the boards. And she is happy to work in a company where you are making a difference.

– I am proud of belonging to a place where things are being recycled, she says.

For example, there is focus on using environment-friendly cleaning agents, and she makes sure not to use too much. When looking into the future, Tania expects to see new measures.

– Within my field of work, I believe that we will sort out even more waste. It is thrilling to think that we may also recycle beverage cartons, she adds.

Sustainability • Occupational health and safety

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Now I am a skilled worker For the last seven years, Jay Taylor has worked as an operator of the paper machine. Before that he worked at a slaughterhouse at piece rates. In other words, he was unskilled - until three years ago.

On 17 December Jay completed his training as a process operator. To get to this point, Jay has attended a study programme three times a year for the past three years.

– We are not that big, and we all contribute with what we can. Harmony across the mill is important, and I believe this is what causes the surplus, Søren says.

– It gives me more background knowledge about controlling the paper machine. Had I not gotten that chance, I don’t think I would have become a skilled worker, he says.

He would, however, like to follow even more the plans for the company’s development.

From the control room high above the paper machine, Jay monitors on several screens that everything runs according to plan. He refers to the paper machine as an old lady with funny ideas, and he believes there will come a new model some time in the future.

– So we can produce more. That’s exiting! It will give me more instructive tasks and make me wiser, Jay says, adding that he appreciates the work climate at the mill.

He points out that even if the workers are different, they are good at helping each other.

It is important that there are some fun social events because you get to know each other in a different way at a night out bowling. It does good to the sense of community.

After having looked at the screens regularly Jay gets up and goes down to fix a problem at the machine, and his colleague Søren Grum takes over. He has been on this journey for thirteen years; he is now a ‘flyer’ and gets around in the different departments as needed. To him, the information level and harmony across departments are decisive.

– I want to hear it from the horse’s mouth.

The more concrete information you get, the more you want to commit yourself. Not that I worry; I think the building blocks are the same – trust and freedom under responsibility.

I just want to know what direction we are taking. That would be the cream on the pie, he says.

“The more concrete information you get, the more you want to commit yourself” Søren Grum

“They involve us, and that’s entirely natural, I think” Kurt Alslev

It makes me happy when my workplace is supportive Kurt Alslev has got more free time now that the kids are grown up.

With this extra time, he wanted to do good for others and himself, so he decided to participate in Team Rynkeby (bicycle team raising money for cancer kids and riding to Paris every year).

When Kurt was preparing his application to Team Rynkeby he went to Nikolay to tell him about his plans to get on the team. Would Skjern Paper support him?

– Doing exercise makes you happy, you know. You’re more positive, and that’s good for the workplace as well, he says.

A good place to be – Nikolaj replied that yes, he wanted to support him. I believe it made a difference that I could mention this support in my application.

Kurt, who works as a truck driver in the storage facility, adds that ‘It makes me happy that my workplace is supportive’.

Kurt used to ride a mountain bike, and he also has a racer bike. Of course, he looks forward to the ride to Paris, but also to get back into shape.

All in all, Kurt finds that Skjern Paper is a good workplace. Just like Tania, he was on the trip to England, and he found it really interesting to see how the Skjern Paper products are being used.

– We have talked about it several times; it was a really good trip. Them spending money on us in that way, that feels good. Also because we work in shifts, so there are some people you don’t meet so often during the week, Kurt says.

We need to take care of the Earth Thinking in sustainability and working with a recycled raw material is nice to know according to Kurt. He fully agrees with the development of the company, and he thinks management has become better at involving staff members in the plans.

– They have shown us some drawings and asked us what we think about the storage facility. They involve us, and that’s entirely natural, I think. We are the ones working at the storage. If you want people to do their best, you must take care of their wellbeing, he concludes.

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Sustainability • Production

24

Sustainable products of recycled paperboard and paper In 2021, we produced 73,000 tonnes of paper and paperboard. More than 90% of our production is exported to the packaging and paper industries around Europe. Skjern Paper is an order producing company and we can produce exactly those paper and board products our customers request. If an acute need arises, we are flexible and can adapt our production fast.

All products are FSC® certified and PEFC certified.

Product range Coreboard – primarily for spiral wound cores for gift wrap paper, stretch wrap, cardboard cans, and kitchen towel and toilet paper rolls.

Greyliner and Blueliner – primarily cardboard for e.g. books and puzzles.

Greyboard – primarily for lamination of solidboard boxes, packaging, and displays.

Sheets – primarily as sheet interlayers for pallet goods.

Maybe consumers don’t think about it. Several products used in their everyday lives are made from recycled paperboard and paper.

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26 Sustainability • Production

Processes At Skjern Paper we have several circular processes. We produce new paperboard and paper from used board and paper. We consume energy to run the paper machine, and we send energy in the form of waste heat to homes in the city of Skjern.

Paper raw materials

Wood chips

City of Skjern

Wood chip fired boiler (steam)

District heating

Heat pumps 27

Raw material site

Pulper

Paper machine

Paper rolling machine

Finished goods (Large rolls)

Finished goods Slitter (narrow cut reels)

Finished goods Sheet cutter (sheets)

Sustainability • Raw materials

28

Circular process The raw material used at Skjern Paper consists of waste paperboard and paper. It is sourced, among others, from paper sorting throughout Denmark.

29

Sustainability • Raw materials

30

Circular production Puzzles, packaging, chips tubes, and cardboard toilet paper rolls are among the products produced from paper and paperboard from Skjern Paper. The raw material consists of waste paperboard and paper.

The large weighbridge is one of the first things you remark when pulling up in front of Skjern Paper. Many times a day, trucks arrive with waste paper – the weighbridge is operated by Per Rindom, who is responsible for the raw material site. His seniority at the mill is as much as 42 years, 40 of them at the raw material site.

removed. The raw material comes from paper sorting in municipalities near Skjern, among others.

– Up through the years, new buildings and larger machines have been introduced.

Back when I started, we made 4-5 tonnes of paperboard and paper an hour. Today, we produce 250 tonnes a day, Per Rindom says.

Using waste paperboard and paper as a raw material clearly shows you that it makes a difference how people in Denmark sort their waste. If, for instance, there is food waste in the paper, it cannot be used.

He is keen on contributing where he can.

The wheeled loader he operates is coded so it does not idle. Per, known as a hardliner, also asks trucks calling on the site to turn off the motor instead of leaving it idle.

Paper is not just paper

Something’s wrong in our behaviour

It sounds simple to turn waste paper into new paper. But before customers get a delivery of paperboard or paper for their product, the raw material has gone through a thorough process. When the waste paper or paperboard has passed the weighbridge it enters the raw material site. It is divided into different qualities, and many items are

To Per Rindom it means something to be at a workplace where you think sustainability, and where the raw material is a recycled material.

– You know, I also turn off the light when I am at home, he says.

– You know, consumers don’t sort out everything, so we do find plastic items and similar. We must remove such impurities, Per Rindom says.

– We can all see what’s going on. The ice melts, and the sea level increases. Something’s absolutely wrong in our behaviour, as Per puts it.

Taking care of others Regularly, a group of kindergarten children stands at the fence of the mill looking in. Then Per will go over to them with his wheeled loader, because he knows that’s the one they want to look at.

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“We can all see what’s going on. The ice melts, and the sea level increases.

Something’s wrong in our behaviour” Per Rindom

Sustainability • Waste

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Recycling – our everyday life and ambition

With Skjern Paper we have a constant focus on utilising the residues of our production as best we can. To do so, efforts must be made in a number of fields.

Recycling from our raw materials Most of the waste coming from our production is what we sort out mechanically in the pulping process. The better people sort out their board and paper, the less impurities must be removed.

Recycling from our production

or sorted out mechanically. It is sent to a treatment plant, so metals are recycled and residual waste is sent for external incineration.

A small residue, primarily consisting of paper fibres, is composted and used as a soil improver.

During a production process we always cut out some paperboard and carton. This goes to our raw material site and is used in new production.

The largest waste fraction from our wood chip fired boiler plant is bottom ash. This fraction is sent back to plantations or spread on our own energy willow fields, where it serves as a fertiliser for the trees.

From the pulping process, metal (baling wire) and residual waste – insoluble paper, beverage cartons, and small pieces of plastics – will be sorted out. This is collected in the rag

From our heat pump facility there is an ammonia residue from plant servicing.

This is also used as a fertiliser for our energy willows.

98.4 % recovery of waste

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We wish to recycle more waste Total waste arisings increased from 5,489 tonnes in 2020 to 5,516 tonnes in 2021.

A natural consequence of a higher production volume.

As part of our sustainability strategy, we will survey the waste fractions of the mill in order to source-separate even more and thereby send more waste for recycling.

Sustainability • Water

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Local partnership about water UN Global Goal no. 11 ‘Sustainable cities and communities’ coupled with our aim to always use resources available locally tell us to focus sharply on sustainable local partnerships.

Originally, we sourced our raw water from the river of Skjern, and we had our own wastewater treatment plant. The river water caused quite much slime formation in the production.

Furthermore, with developments at the mill the treatment plant became too small and vulnerable to guarantee a satisfactory treatment. A strong, local partnership with the local utility of Ringkøbing-Skjern Forsyning has solved both challenges.

At Ringkøbing-Skjern Forsyning, the primary intake was urban wastewater with a high content of nitrogen and phosphorous.

By contrast, wastewater from Skjern Paper had a high content of organic matter, which is necessary for the treatment process to work well. Also, water from Ringkøbing-Skjern Forsyning was too cold, while Skjern Paper could contribute with warmer water. From a technical point of view, the two entities supplement each other well. In addition, the partnership strengthens the local community.

– Of course, it is our most important task to ensure a good aquatic environment. We also wish to contribute to a sustainable industrial development in our municipality, says Nikolai Overgaard Rahlf, PA and HR manager at Ringkøbing-Skjern Forsyning.

Just like Skjern Paper, Ringkøbing-Skjern Forsyning has chosen to work with the UN Global Goals. With goals nos. 6, 7, 12, and 13 there is special focus on ‛Clean water and sanitation’, ‛Affordable and clean energy’, ‛Responsible consumption and production’, and ‛Climate action’.

Using old drinking water well Through the cooperation with RingkøbingSkjern Forsyning we are primarily using unfiltered groundwater today as our production process water. The water is sourced from a municipal well that can no longer be used for drinking water. This is a unique service with much more uniform raw water than what we got from the river of Skjern.

It is also a good, sustainable solution to

utilise water that would otherwise not be used.

In addition to the raw water, we use a small quantity of municipal urban water for drinking water, sanitary water, and the few places in our production where completely clean water is a must.

Discharge of wastewater today Today, wastewater from Skjern Paper is led to public wastewater treatment at Tarm wastewater treatment plant. We have our own sewage pipeline from the mill to the treatment plant. In 2021, 288,581 m3 of wastewater was discharged to the public treatment plant. Again in 2021, this process wastewater complied with the limit values with a good margin, for all values, and seen over the year.

– Skjern Paper is a major customer, and the wastewater volumes we receive from them are many times higher than what we receive from our citizens.

xx,x%

Vandforbrug er reduceret med xx % de sidste 5 år

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“Of course, our most important task is to ensure a good aquatic environment” N i k o l a i O v e r g a a r d R a h l f , PA a n d H R m a n a g e r, local utility of Ringkøbing-Skjern Forsyning

We get an even load around the clock seven days a week. This makes it easy to handle, says Poul-Erik Føhns, operating manager at Ringkøbing-Skjern Forsyning.

Generating new ideas together The partnership and the good dialogue also serve them well when looking into the future.

With the aim to extend the production capacity at Skjern Paper up to 100,000 tonnes in 2030, we will have higher wastewater volumes.

This will reach an extent where RingkøbingSkjern Forsyning cannot treat it at the existing facility due to the organic matter contents.

Under our strategic work we are now investigating a solution together with Ringkøbing-Skjern Forsyning in which wastewater is pre-treated at a biogas plant. Here we can make use of the process where bacteria from sludge ‘eat’ the organic matter, generating methane. This gas can be used for the generation of process steam. Once again, a sustainable solution that both parties appreciate.

– It is in our interest to generate new ideas together with our business community to find solutions that are to the benefit of everyone involved, says Nikolai Overgaard Rahlf.

Consumption Raw water: 298,908 m3 Municipal water: 2,439 m3

Discharge Sanitary wastewater: 490 m3 Wastewater from process: 288,581 m3

3,200 Sustainability • Energy

homes in the city of Skjern were heated by district heating generated from waste heat from Skjern Paper in 2021.

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Waste heat is used in the local community When the citizens of Skjern heat their water and radiators it is very likely that the heat comes from Skjern Paper. District heating is becoming more and more popular.

In 2010, Skjern district heating company started cooperating with Skjern Paper on the supply of waste heat. Today, 69% of the homes in the city of Skjern are heated with waste heat from Skjern Paper. This means that the waste heat from paper production is led to the district heating customers instead of disappearing into the atmosphere.

Zero-carbon objective

– I am sure this is something our citizens talk about when meeting people from other places. We’re actually back at the very origin of district heating, explains Heine Pedersen, operating manager of Skjern district heating company.

– Not only do we have a lower price, but we also have lower CO2 emissions. In this way, the zero-carbon heat is also the cheapest option, he says.

In the first months of 2022, Skjern district heating company has met a steeply increasing interest in switching to district heating. With increasing prices of oil and natural gas the price is right now the decisive parameter, Heine says, and he believes that most of the company’s customers support the green transition.

He points out that this applies to private consumers, and also to businesses receiving heat from the district heating plant.

– I also believe that the companies find a 95% CO2 emissions reduction in the heat supply to be a positive thing. It also makes a difference for their CO2 accounts and the targets they have for the green transition, says Heine Pedersen.

Circularity is key When Skjern Paper sends waste heat to Skjern district heating company, they are at the same time returning cold water from the

Waste heat

District heating

68 ºC Skjern District heating 31 %

Skjern Paper 69 %

Homes in city of Skjern

Skjern Paper has a fully equipped boiler facility, and the heat supply is remote controlled by Skjern district heating company according to needs. In all the summer months, Skjern Paper can deliver 100% of the heat. In the winter months, Skjern district heating company tops up in cold periods.

35ºC

users’ radiators back to the mill’s energy system.

– Consumers receive warm water from us at a temperature of 68 degrees, and they send cold water back to the district heating facility at a temperature of 35 degrees.

In addition to the waste heat from Skjern Paper, Skjern district heating company also gets surplus heat from a local supermarket; the remaining part of the sustainable heat comes from the district heating company’s biomass boiler that runs on local wood chips.

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District heating sales in Mwh 70,000

Skjern Paper as the initiator The local partnership is important for the green transition, not only at Skjern Paper but also at the Skjern district heating company.

– It is perfectly in line with the journey we wish to take. It’s spot on what we want.

He emphasises that the district heating company wants to supply the cheapest possible heat, combined with a security of supply.

And security of supply with no interruptions is exactly what they get through the cooperation with Skjern Paper. In addition, at Skjern district heating company they feel an obligation to ensure that as many customers as possible can get the green heat; this is the aim of the green transition process in which the result today is a 95% reduction of CO2 emissions.

– If you look at our journey towards a zerocarbon situation, Skjern Paper has been the initiator of that journey, Heine explains.

57971

60,000

50,000

44552 37601

40,000

47402 49842

40078 39243 40580 42900

30,000

20,000

6305

10,000

7626

1888 0 2010

2011

2012

2013

2014

2015

2016 2017

2018 2019

2020

2021

Increasing sales of waste heat to Skjern district heating company give more sustainable heat to citizens and businesses in the local community.

Sustainability • Energy

High ambitions – of course!

Ib Rasmussen has been part of the development journey at Skjern Paper. In the early years, he was responsible for the wastewater treatment plant. When it closed down in 2014, Ib feared being laid off. Today, he is 68 years old, and he has a part-time job at the mill.

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After stopping as the responsible person for the treatment plant, he became a boiler operator and has been in charge of the wood chip facility. At a time when he feared that he was no longer of any use, almost the opposite happened.

– I participated in the design of the wood chip boiler after the wastewater treatment plant closed down. I was from the beginning involved in the entire process, and I attended a training course of 12 weeks, he says.

Ib is very glad that he was involved and received training. It takes skills and competences to operate the plant; for instance, you must take care to adjust according to the humidity of wood chips.

Free reins Today, as Ib only comes in a few days a week as it suits him, he looks after the boiler if the new operator has a day off.

– I am a trained electrician, so I also do installations and draw cables. And then I can be the back-up when someone is on holiday or at home with sick children, Ib says, and he continues.

– I have worked part-time since 2021. The social contacts are important to me, so I asked for it myself, and I’m very happy about it.

As a part-time worker Ib feels that he has free reins. By the way, it was always like

that and he believes this applies to all his colleagues.

Good for the environment – and for Skjern In addition to the good working conditions, it also means something for Ib to work in a company with focus on circularity.

– It is fascinating to see waste going in, and then being transformed to something people can use. It is good for the environment that we have such a company in Denmark.

And for Skjern, Ib says, and he stresses the importance of having a large local workplace.

That Skjern Paper has high ambitions is important and good, according to Ib. To him, any stagnation means regression, and he mentions the possibility of recycling beverage cartons in the future along with the plans of a co-incineration plant. Would Ib want to join that journey? Undoubtedly.

– I regret not to be ten years younger, he adds with a smile.

Looking back at his time at Skjern Paper, he finds it an interesting time. In a few years, he will stop completely, and his tip to the management is as follows: – I think it’s important to keep on involving the staff, so they feel committed, he says, and gets up to leave for the next meeting.

He has a staff development interview.

“It is fascinating to see waste going in, and then being transformed to something people can use” Ib Rasmussen, part-time worker

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Two generations of boiler operators.

Mike Skov Hansen, now replacing Ib Rasmussen.

Development in specific electricity consumption, kWh/net tonne of paper 336.2

Development in specific steam consumption, tonnes of steam/net tonne of paper

1.6

330

1.58

320 330

325.4

310 318.2

1.54

1.58 292

1.54

300.2

1.53

290 Target 2017

Realised 2018

Target 2019

2020

2021

2018

1.5

Realised 2019

1.53

2020

2021

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Skjern Paper Birkvej 14 DK-6900 Skjern T. +45 97 35 11 55 E. contact@skjernpaper.com

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