32 | SUSTAINABLE TRANSPORT
Sustainable transport Setra's operations depend on transport, and it accounts for the majority of our greenhouse gas emissions. We are therefore working in a targeted way to make the transports as efficient and sustainable as possible.
Our opportunities and challenges Setra transports large volumes, often across long distances, which makes efficient logistics crucial to our business. Our sawmills and processing units are located in rural Sweden, and approximately 65 percent of sales are exported to customers in Europe, North Africa, the Middle East and Asia. In total, transport operations account for 10–15 percent of Setra’s costs and almost 85 percent of our total climate emissions (see the Climate report on page 28 for details). Viewed from the perspective of the entire life cycle, our wood products strongly benefit the climate even if they are transported to the other side of the world, because they bind so much more carbon dioxide than their production and transport generate. Nevertheless, it is naturally important for us to do whatever we can to minimise emissions from the transport operations. Participating in the development of new, renewable fuels and switching loads from road to rail are two important steps along the path.
Governance Fundamentally, the transport options we use must be efficient, safe and climate- and eco-friendly; they must also meet requirements for a good working environment and good working conditions for transport company employees. The requirements we apply are based on the Swedish Forest Industries Federation’s sustainability criteria for road
Sustainability Report 2020 — Setra Group
transport, as well as criteria from Q3, which is an association for sustainable road transport.
How we work Working relationships, dialogue and follow-up We choose our partners with care and only work with reliable shipping lines and forwarders who maintain a high level of quality and comply with applicable laws and regulations. In all, our business helps provide employment for around 300 people in the transport sector. Setra’s Code of Conduct for Suppliers applies to all new agreements we conclude. We expect all our existing suppliers of transport services to approve this code by no later than 2021. The code stipulates fundamental sustainability requirements concerning areas such as the employees’ conditions of work and pay, and the supplier’s own environmental work. We also monitor how our partners handle their systematic sustainability work, by requesting and assessing the responses to a survey from the association Q3. The survey asks suppliers questions about social responsibility, the working environment, traffic safety and
measures to reduce climate impact. In 2021, it will be possible to use responses to the survey to rank suppliers in the C-load booking platform. Suppliers who fail to complete the survey will be awarded a low ranking, thus reducing their likelihood of receiving assignments. We also monitor the situation by collecting emission reports as the basis for our climate calculations. We hold regular alignment meetings with our suppliers, where sustainability is a fixed point on the agenda. Fossil-free top of mind For domestic road transport, we have a long-term agreement with a principal supplier, Unite, which puts us in a better position to achieve optimised, smart transport chains. For example, the same vehicle can be used to transport sawn wood from a sawmill to a processing unit, collect finished products and deliver them to nearby customers. Unite has a well-developed programme of environmental work, with the objective of becoming fossil free by 2030, and is a prime mover in encouraging fuel companies to increase their use of non-fossil additives. The company is also assessing biogas as an alternative fuel and in 2020 launched a three-year development project involving the use of vehicles powered by biogas for half the transports of bioproducts from Setra's unit in Hasselfors to E.ON’s Åbyverket power plant in Örebro. As regards our new products, construction solutions in CLT and glulam, interest in fossil-free transport is especially high. We therefore offer a transport solution based on 100 percent HVO. Efficiency in every load Working closely with our partners, we strive to achieve the most optimal trans-
