Sustainability and forest management 24th of June. Minna Kantsila, Sustainability Manager
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1 Sustainability and forest management 24th of June Minna Kantsila, Sustainability Manager
2 My viewpoints today Global perspective Safety with fresh forest fibres Fresh forest fibres Open communacation is vital for sustainability 2
3 Forerunner in lightweight and sustainable paperboards Metsä Board is part of Metsä Group which is one of the largest forest industry groups in the world, owned by a cooperative of 122,000 private Finnish forest owners Europe s leading producer folding boxboards 3 World s leading manufacturer of coated white-top kraftliners
4 4 GLOBAL PERSPECTIVE to food packaging
5 Global future outlook In 2030 the world will be different 50% more food needed 45% more energy needed 30% more water needed The growing demand creates scarcity of natural resources as well as price increases On the other hand, availability and efficient usage of renewable raw material become even more important The use of paperboard has significant advantages, such as renewability, biodegradability, and recyclability. 5 06/07/2015
6 How will we feed 9 billion people? 3 billion 7 billion 9,2 billion m m m 2 6 7/6/2015 Minna Kantsila Source: FAO, World Food and Agriculture Organization
7 1/3 of food 1,3 billion tonnes gets lost or wasted Food waste in industrialised countries is as high as in developing countries. Packaging protects food and makes more food available. 40% lost after harvest and during processing. 40% lost at retail and by consumers. 11% of all food thrown away. DEVELOPING COUNTRIES INDUSTRIALISED COUNTRIES EUROPE 7 7/6/2015 Source: FAO, World Food and Agriculture Organization
8 Trends and drivers in cartonboard consumption Environmental issues Lightweighting & material savings Favouring renewable packaging materials Sustainable wood sources, chain of custody Climate change, carbon footprint NGO activities Social responsibility and transparency Health and safety Raw materials (e.g. mineral oil migration) Nutritional information and labelling Retail drivers Omnichanneling (e.g. supply chain efficiency, branding) Retail/shelf-ready packaging Premiumisationof traditional brands vs. private labels Consumer lifestyle Convenience (e.g. demographic shifts, on-the-go lifestyle) Experience (e.g. personalisation, fun)
9 Food packaging market growing fast Over 220 billion EUR Source: Pira, Pöyry 183 billion EUR 9
10 SAFETY with fresh forest fibres
11 Product safety starts with traceable raw materials Fresh fibres from certified northern forests Only safe chemicals of known origin Paperboard packaging materials specified Warehouse locations and conditions under strict control 11
12 High standards ensure stable product quality Hygiene Manufacturing follows GMP guidelines Odour and taint Neutrality allows direct food contact Purity No contaminants Consistency Secured availability of quality fibre raw material and clean water 12
13 Consumers want products without off-flavours Metsä Board products odour & taint neutrality allows direct food contact Neutrality is based on pure, fresh forest fibre pulps and known chemicals Low microbe and heavy metal levels Low volatile levels in coating binders Free of mineral oils Off-flavour* <1 for 12 months for all products in original package. *) Standard EN GMP = Good Manufacturing Practice 13 7/6/2015 Minna Kantsila
14 FRESH FOREST FIBRES from sustainably managed northern forests.
15 Finnish forest resources provide excellent raw material Each species is planted where it is naturally suited. Pine 46% Spruce 36% Birch 15% Other deciduous 3% 15 7/6/2015 Minna Kantsila
16 Four new seedlings planted for every harvested tree In Finland, the harvested site must be regenerated within three years from the harvesting and thus ensure vitality and future growth of the forest We use native tree species only For every tree that is harvested we make sure that four new ones will replace them for the coming generations Only 2% of Finnish forests are harvested annually 16 7/6/2015 Minna Kantsila
17 Well-managed forests grow better In order to ensure good growth and health of the forest it has to be managed well taking biodiversity into account Harvesting has to match the growth of the forest If forest becomes dense and over-aged, dead and diseased trees with poor resistance to pests and air pollution will occupy the forest Sustainable forestry also protects natural waters 17 7/6/2015 Minna Kantsila
18 Wood stock is growing in Northern forests Growing stock change in the 50 most forested nations (in colour) Did you know that Finland is the most wooded country in Europe? 86% of Finland s total land area is forest. Gaining growing stock Zero change Losing growing stock 18 7/6/2015 Minna Kantsila Source: FAO
19 Finnish forests grow more than they are harvested The growth of Finnish forests exceeds the drain by 30 % /07/2015 Source: Statistical Yearbook of Forestry 2012, Metla
20 100% traceable raw materials from northern forests All our raw materials are of known origin and traceable We ensure sustainable use of forests through third-party verified certification and we continuously strive to increase the chare of certified wood Our single set of criteria applies for both domestic and imported wood We promote forests certification and in all our areas of operation and actively participate in its development Metsä Board s due diligence process covers all the data required and makes it readily accessible to the authorities upon a request 20 7/6/2015 Minna Kantsila Paper Profiles are available at metsaboard.com
21 Our total certification percentage is in a league of its own Less than 10% of all the forests in the world are certified. Only 25% of the commercial forests have been certified. 84% of the wood used by the Metsä Group production facilities comes from certified forests. 21 7/6/2015 Minna Kantsila
22 Only 10% of world s forests are certified 98% 6% PEFC 58 % FSC 42 % 35% 59% 2% 3% Both FSC and PEFC (includes SFI, CSA and ATFS) Only FSC Only PEFC No forest certification 1% 6% X% Share of certified forests per region Source: PEFC, FSC and UNECE/FAO 22 06/07/2015
23 Open communication is vital for sustainability
24 Sidosryhmäyhteistyö Engaging dialogue with various stakeholders Customers and own personnel are our primary stakeholders We actively promote open dialogue with various stakeholders 24 7/6/2015 Minna Kantsila
25 Open and transparent communication on environmental impacts Paper Profiles have been provided for all papers and boards since 2001 Carbon footprint calculations since 2007 EPD (Environmental Product Declaration) on Simcote Participation in the CDP (Carbon Disclosure Project) since 2007 Participation in WWF s Environmental Paper Company Index (EPCI) Sedex (Supplier Ethical Data Exchange) EPD and Paper Profiles are verified by a third party. 25 7/6/2015 Minna Kantsila
26 Fresh fibre paperboard is the choice of the future WORLD POPULATION CONTINUES TO GROW NORTHERN FORESTS CONTINUE TO GROW FRESH FIBRES ARE STRONG AND PURE MORE PEOPLE MAKE MORE WASTE There are more mouths to feed Forests produce renewable raw material for packaging Fresh fibres make strong and safe packaging Fibre-based packaging is recyclable and biodegradable 26
27 The wood needed for one tonne of board grows in less than one second in Finland.
28
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