Setra’s sustainability work

Our responsibility and contribution to sustainable development

Our work for a sustainable Setra is about creating value through a climate-smart portfolio and about taking full responsibility for the impact that our business has on individuals, society and the environment.

GRÖNSAMHET SHOULD BE a feature of everything Setra does, which means taking account of economic, social and environmental perspectives as we run and develop our business. The starting point is to minimise negative impacts and maximise value creation and positive effects, along the whole value chain from raw material production in the forest to use of the end product. We focus on the areas in which we have the greatest influence and potential to make a difference. We also strive to develop in a way that keeps pace with the wider world and the demands and expectations placed on us as a company.

Sustainability on the global agenda We face major shared challenges in achieving sustainable social development, where everyone on the planet has an opportunity for a good life within the limits of the planet’s resources. As awareness has grown and we have seen more tangible effects of climate change and resource shortages, sustainability issues have shot up the social agenda, not least for many of our stakeholders. We are noticing an increase in both interest and expectations – from our employees, customers and owners alike – concerning Setra’s contribution to climate-focused work and acceptance of our responsibilities.

Global trends of particular significance for Setra’s business and sustainability work include:

• Focus on climate and bioeconomy The world’s greenhouse gas emissions need to fall rapidly if the 1.5 degree target in the Paris Agreement is to be achieved. Sweden has expressed the ambition to become the first fossil-free welfare state, with a target of zero net emissions by 2045. Many industries, including the forest industry, have submitted a Roadmap for fossil free competitiveness to the government. The forest industry’s plan highlights the sector’s role in replacing fossil fuels and materials with bio-based alternatives, as well as storing carbon in forests and wood products, and gives an undertaking to reduce its own use of fossil energy.

Our contribution to the 2030 Agenda

2015 saw the adoption of the 2030 Agenda, the world’s collective plan for sustainable development. The agenda comprises 17 sustainable development goals and 169 targets that balance economic, social and environmental perspectives and are to be achieved by 2030. Setra supports the agenda in its entirety and knows that through our business we have the ability to contribute to several of the goals. The most important factor is the climate benefit of our products, but it is also about our responsibility as an employer, supplier, partner and local community actor. • Loss of biodiversity The loss of species and the deterioration of the ecosystem services on which we humans depend pose a serious threat to our future. It is vital to ensure sustainable forestry that preserves biodiversity and protects key biotopes from harvesting.

• Rising value of the forest’s resources Sweden is one of the world’s leading nations in forest industry research, and already has the capability to produce everything from clothing to packaging using wood raw material. Renewable fuels made from bioproducts are one area where production is expected to increase moving forwards.

New applications and increased demand for forest raw material are prompting an increasingly important debate on what it is worth and should mainly be used for.

• Strong interest in wood as a construction material As a renewable construction material, wood has a significantly smaller climate footprint than steel and concrete. The global construction industry accounts for enormous emissions of greenhouse gases, while at the same time demand for new housing is increasing in line with population growth and urbanisation. In the transition to a more climatefriendly construction process, wood will be an important part of the solution. Structural frames in crosslam and glulam expand the design horizons hugely. In Sweden, the government has decided that wood construction should be promoted. Figures from Statistics Sweden show that the proportion of apartment blocks built with a timber frame rose from 9% to 13% between 2010 and 2018.

Our core areas

Our work on identifying our key sustainability areas takes account of the impact from our business along the whole value chain, and of the demands and expectations placed on us by the wider world. Read more about the analysis behind our priorities on page 46.

Our portfolio Setra’s most important contribution to work on climate change is to promote greater use of wood products, for example in construction. We are also working to increase the value added in our portfolio, not least with a focus on crosslam, which makes it possible for wooden buildings to go bigger and taller. We are also developing new, climate-friendly products. This includes our investment in pyrolysis oil, which is produced from sawdust and is a raw material for the manufacture of biofuels.

Resourceefficient business We work systematically to create efficient flows and reduce Setra’s negative environmental impact. Over 95% of the energy that Setra consumes is renewable and we are focusing on reducing our energy use. Making use of the whole sawlog ensures high resource efficiency. Our goal is for the entire business to be climate neutral by 2030.

Climate-smart raw material The forests supply our core raw material. Guaranteeing that the wood comes from sustainable forestry is important to both us and our customers. Through FSC® and PEFC™ certification, combined with checks against set criteria, we ensure that the raw material we use comes from legal logging activities that preserve key biotopes.

Sustainable transport Many of Setra’s wood products are exported and this distribution accounts for the majority of our greenhouse gas emissions. We are working to connect more of our units to the rail network and helping to develop renewable fuels. Cutting emissions from transport is a challenge that we share with customers and suppliers. Many of the initiatives in this area are therefore based on collaboration.

Culture and colleagues Committed and healthy employees are the foundation of our business. Setra is a values-driven organisation where everyone can feel involved and contribute to our shared goals. Health and safety are constant priority areas.

25,000 tonnes This is how much bio-oil will be produced annually at Pyrocell’s plant in Kastet, Gävle. That would run as many as 17,000 cars for a whole year. Read more on page 34.