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Climate report
All our climate measures are intended to lead towards one and the same goal: to make Setra’s operations climate neutral by 2030. This goal applies to all areas of the value chain with the exception of foreign transports.
Our opportunities and challenges
Wood binds carbon and our products are climate positive. The climate benefits of using wood as a construction material far outstrip the emissions linked to manufacturing and transporting the products. For Setra’s wood products, the net effect is approximately 800 kg of bound carbon dioxide per cubic metre of wood, depending on the degree of processing and the transport distances involved. There is great benefit to be gained from the bioproducts created when we make our wood products as well; they are used, for example, for recyclable packaging and renewable energy.
For our business to become climate neutral, we need to work with our own negative climate footprint, where dependence on energy for production and transport operations are our two biggest challenges.
Governance
The annual Climate Report indicates where in our operation emissions are generated – and how large they are – in relation to the life cycle as a whole. Setra also prepares local climate reports for every unit in Sweden. These reports help us to prioritise our efforts and monitor our goal of becoming climate neutral.
How we work
Climate calculations in line with the GHG Protocol
Setra performs its climate calculations in accordance with the Greenhouse Gas (GHG) Protocol, which is an international calculation standard. The report presents our emissions from a life cycle perspective: from planting the spruce and pine seedlings to delivery of the sawn and processed products, as well as bioproducts, to customers. In order to clarify the impact from the respective production units and to facilitate locally adapted climate initiatives, we have prepared a climate report for each and every production unit since 2020.
Emissions are divided into three categories, or scopes, as follows • Scope 1: Direct emissions from the business (fuel combustion at own plants and in company vehicles) • Scope 2: Indirect emissions from purchased energy (electricity, district heating, district cooling) • Scope 3: Indirect emissions from other parts of the value chain, such as purchased transport, travel and the climate footprint of the raw materials. For the timber raw material, emissions come from machines and transports in connection to forest management and felling.
Setra’s emissions of greenhouse gases from the company’s own heating boilers, machines and vehicles (Scope 1) account for only a small part – approximately four percent – of the total emissions. Indirect emissions from purchased energy (Scope 2) account for less than one percent of the total emissions. This is because since 2018, Setra has only purchased renewable, eco-labelled electricity. The overwhelming majority of the emissions thus fall within Scope 3, where transport operations are the biggest contributor (see page 32 to find out more about our transports).
Plan for climate-neutral Setra
Our goal is for Setra to be climate neutral by 2030. The goal applies to the entire business from forest to customer, with the exception of foreign distribution operations, and entails the total climate impact from our operations equalling the net sum of zero. First and foremost, we will be reducing emissions to the lowest level possible. For the emissions we cannot eliminate, it may be necessary in the long term to purchase what is known as “climate compensation” such that our net sum is zero. In 2020, emissions from activities where we aim to become climate neutral amounted to approximately 60,000 tonnes of carbon dioxide.
During the year, we have intensified the work to survey the key activities that we expect to produce the greatest effect. We have begun examining the conditions for implementing certain strategic measures in the long term – replacing diesel powered forklifts with electric models, for example, and making greater use of renewable fuels.
Our ambition of becoming climate neutral means that everyone at Setra will be required to make an effort. Promoting activities and objectives to reduce climate emissions is thus an integral aspect of operations planning in each and every unit and department. Setra’s Climate report does not contain a detailed presentation of every single activity taking place at the company, but it should be noted that there are also a range of small changes that are being made to minimise our footprint.
Wood has a positive effect on the climate
Wood binds the equivalent of 800 kg of carbon dioxide per cubic metre of sawn timber. The table shows the binding effect in relation to the carbon dioxide emissions generated, from forest planting to delivery to customers in different countries. For example, using wood from Setra for construction in Sweden helps to lock in 772 kg of carbon dioxide per cubic metre (800 kg -28 kg).
800
20
Sweden GermanySweden UKGermany Japan UK Japan
20
28 28
62 62
79 79
232 232 800
Wood has a positive effect on the climateWood has a positive effect on the climate
■ Carbon dioxide emissions, ■ excl. transport, in kg.Carbon dioxide emissions, excl. transport, in kg. ■ Carbon dioxide emissions, ■ incl. transport, in kg.Carbon dioxide emissions, incl. transport, in kg. ■ Amount of carbon bound ■ in wood recalculated as Amount of carbon bound
CO2. in wood recalculated as CO2.
Emission categories
SCOPE 3
SCOPE 2
SCOPE 1
Total carbon footprint 2018–2020
Number of tonnes of carbon dioxide
200,299 198,129
182,002
Setra reports its emissions in accordance with the GHG protocol: The emissions are divided into three scopes: Scope 1 comprises direct emissions in the business, scope 2 covers indirect emissions from purchased electricity, steam, heating and cooling for own plants, and scope 3 encompasses indirect emissions from areas such as transport, rented machines and purchased products. The calculations include emissions from divested and sold units, as well as from new investments.
2018 2019 2020
Over the past three years, Setra has reduced its total footprint by 9 percent (18,300 tonnes). Emissions have been cut within all scopes. Our total climate footprint is heavily influenced by production volumes and the export balance between different markets.
200 299 198 129
Setra’s climate footprint, 2020
Number of tonnes of carbon dioxide
182 002
SCOPE 1 ____________________________________________ 4.3% Drying and heating ________________________________ 3,106 Machines______________________________________________4,550 Business travel _________________________________________ 63 Total ____________________________________________________ 7,718
SCOPE 2_____________________________________________ 0.1% Purchased electricity, heating and cooling 219
Total _______________________________________________________ 219
2018 2019 2020
SCOPE 3__________________________________________95.6% Fuel and energy-related activities__________2,067 Raw material and materials___________________17,248
Waste in own operations ____________________________ 15 Commuting and business travel ________________526 Inbound timber deliveries _____________________ 11,925 Transport to customers _____________________ 142,283 Total, incl. transport ________________________ 174,064
New knowledge about wood in construction
Setra is involved in several projects that are helping expand knowledge about using wood in construction: • An interdisciplinary group which, on the basis of the Cederhusen construction project in Stockholm, is reviewing where in the building process climate emissions are generated and how the choice of materials and methods can help reduce them. • Linnaeus University’s four-year research project centred on increasing the competitiveness of CLT as a construction material. • Productivity measurements for industrial wood construction – a project at Luleå University of Technology, which is comparing the development in productivity in the field of industrial wood construction with a view to reinforcing market communication.
The project also aims to identify productivity measurements that will allow industrial wood construction to be compared on more equal terms with other methods.
The forestry industry roadmap for fossil-free competitiveness
Setra is participating in the Swedish forestry industry’s roadmap for a fossil-free Sweden. The plan focuses on three areas in which the forestry industry can contribute to Sweden’s work on climate issues: • Substitution – using bio-based products as replacements for fossil products or products whose manufacture involves significant fossil emissions. • Carbon capture – binding carbon in forests and bio-based products. • Reduced energy utilisation – cutting climate emissions from the industry’s own consumption of fossil energy.
Setra has cut its emissions per cubic metre of sawn products manufactured (exclusive outbound deliveries) by 63 percent since 2014, when the company published its first complete Climate Report featuring three scopes. The switch to electricity from renewable sources in 2018 has been the most important single measure. Other measures included increasing the share of renewable diesel in the company’s machines, improving the efficiency of the drying process and investing in energy-efficient equipment. The specific emissions have not been corrected for changes in emission factors or inconsistencies identified subsequently. For example, we are recycling and circulating our computers.
Specific measures for the climate
Wood is the only fully renewable construction material, and it also binds carbon dioxide throughout its entire life cycle. Therefore, the most important contribution we make in our climate work is to promote increased use of wood as a construction material. We are working in various ways to boost our own and our customers’ knowledge about the climate benefit of wood and bio-based raw materials. • We supply our customers with product information, quality assured climate data and environmental product declarations (EPD). • We participate in studies and analyses to increase knowledge and reporting of the climate benefit of buildings made of wood. • We participate and invest in innovation and the development of new products and applications for forest raw material and bioproducts. This includes our focus on biofuels, which is helping to cut carbon emissions in the transport sector. Read more on page 34.
In order to become climate neutral, we also have to minimise – and, in the long term, completely eliminate – our own negative climate footprint. Since Setra presented its first complete Climate report in 2014, we have succeeded in halving greenhouse gas emissions per cubic metre of sawn wood. Emissions excluding transport have been reduced from 54 kg in 2014 to around 20 kg in 2020. As such, Setra’s previously stated aim of cutting carbon emissions by 6 kg per cubic metre of sawn wood between 2010 and 2020 has been achieved by a good margin. The most important measure of all has been to purchase electricity from renewable sources. Other measures have included increasing the share of renewable diesel used to power our machines, improving the efficiency of the drying process and investing in energy-efficient equipment. Our units in Heby and Skinnskatteberg conducted energy surveys during the past year. This means that all our production units have surveyed their consumption, and we can now continue the work to implement and monitor the effect of the identified energy-saving measures.
Key activities in Setra’s plan going forward include: • Continuing to improve the efficiency of our energy consumption, and ensuring a high level of accessibility in production. • Replacing diesel powered forklifts and machines with electric models. • Increasing the use of renewable fuels. • Making rail transport possible for both raw timber and finished products.
A large part of our emissions is generated indirectly – when we purchase transport services, for example. In order to reduce these emissions, we need to hold an advanced dialogue with and make demands on our suppliers. Issues that are especially important: • The carriers’ choice of fuel and how they are working to optimise capacity utilisation and route planning. • How the timber suppliers are working to reduce their emissions. For example, Sveaskog has signed agreements to secure long-term access to renewable fuel and to reduce its greenhouse gas emissions. This has a positive effect in Setra’s Climate report as well.
Carbon dioxide emissions, 2014–2020
Kg CO2/m3 sawn timber
60
50 Switch to renewable electricity
40
30
20
10
0 2014 2015 2016 2017 2018 2019 2020
