SCA Forest Products Carbon Footprint database

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1 Date 02 March 2016 Our reference Catarina Ljungberg Direct line Mobile SCA Forest Products Carbon Footprint database Carbon Profiles according to CEPI Framework on pulp, paper and sawn products SCA ÖSTRAND Pulp Carbon Profile SCA has the means and will declare our carbon dioxide emissions in several different ways. CEPI has put forward an industry standard calculating a Carbon Footprint for products called the CEPI Carbon Footprint Framework (Ten Toes), where all the different steps of the process are considered. Our Carbon Profiles are based upon this framework. SCA is able to deliver Carbon Profiles for our products and this is to be seen as a dynamic document. We can also produce figures for transport to customer, case studies, or other emissions in cases where needed and we have developed skilled competence for customer cooperation regarding Carbon Footprint or other questions. Do not hesitate to contact us in these matters. Best regards Catarina Ljungberg Environmental Manager For more information: CEPI TenToes Carbon Footprint Framework: SCA Östrand produces chlorine-free kraft pulp under the Celeste brand and CTMP under the Star brand. Total production of pulp amounts to 500,000 tons. SCA Östrands green refined products from the forest; crude tall oil, turpentine, green electricity and district heating are sold under the brand name Cirrus. SCA Östrand SCA Graphic Sundsvall AB SE TIMRÅ SCA Östrand is part of SCA s Forest Products business unit, which produces paper for packaging and print, pulp, solid-wood products and renewable energy. SCA Forest Products also manages SCA's extensive forest holding, supplies SCA's Swedish industries with wood raw materials, in addition to offering cost-efficient transport solutions. Registered office Sundsvall. Corporate registration No VAT No. SE

2 Carbon Profile, general remarks: Our Carbon Profile data follows the guidelines decided in CEPI (Confederation of European Paper Industries), the Carbon Footprint Framework. GHG are Green House Gases. The figure from SCA refers only to CO 2 as of now. Other GHGs from our processes exists but are considered as of low significance with today s knowledge. Figures are based on common LCA/LCI principles. Figures are mainly third-party verified, by the means of ISO 14001, SCA RMS-verification or other systems. A detailed verification of Carbon Profiles for the company is considered as important and is also initiated by SCA. Calculating all ten elements together in this Carbon Profile does not add up to scientific standards with today s knowledge. The parts have to be communicated and used differently. However, the ten elements can give the big picture of the positive effects, when using forest products (pulp, paper, included recycled paper, biofuel and sawn products). Nonetheless, SCA established already 2001 a company goal to reduce carbon dioxide emissions. Our Carbon Profiles are always attached to a transparency document in order for the customer to evaluate what is/is not included in calculations at this stage. The transparency document is also important for our internal verification process. Carbon Footprints Celeste & Star Page 2 (6)

3 Transparency document for CEPI Framework and SCA interpretations Absorption 1. Carbon sequestration in forest **There are still discussions of this toe and it is currently not included in many carbon footprint calculations. On SCA-owned forest land an assessment has showed some 2.6 million tons carbon dioxide sequestration, which, if allocated, gives several hundreds of kilograms of sequestrated CO 2 per ton of SCA products. On SCA Forest Products company level the sequestration is substantially higher than the emissions. The basis for our preliminary calculations today are only SCA-owned forests and our long history of statistics on net growth, as well as prognosis. FSC certification of forests and chain-of-custody certification of fiber supply ensures sustainable forest management and replanting. The main message is that, with SCA forest management and today s knowledge, our forests acts as a major carbon sink to be globally considered. 2. Carbon stored in the product Amount of CO 2 stored in the product is calculated according to the IPPC formula in CEPI Framework. The life-cycle time of the product and destiny (toe 9) are important parameters if further assessed. Emissions 3. Greenhouse gas emissions from pulp and paper production Our units have an open declaration of fuels and emissions used in our processes, third party verified and covered by CO 2 ETS. These emissions derived mainly from the use of fossil fuels in energy production. Depending of the mills energy system (CHP) the emissions can be connected both with electrical and thermal energy production. If electricity is purchased externally please see toe 6. Figures in WWF Paper Scorecard, which SCA support includes both toe 3 and Greenhouse gas emissions associated with producing fiber This includes such as: - Diesel oil consumption in forestry operations as harvesting and energy related emissions for seedling nurseries. Allocated after wood use. - Collection, sorting and processing of recovered paper before it enters the recycling process. 5. Greenhouse gas emissions associated with producing other raw materials/fuels This includes emissions generated during the manufacturing of fuels and non-wood based raw materials (Such as pigments, main process chemicals etc.) CEPI framework recommends cut-off criteria of 90% i.e. to include 90% of all emissions. The emissions related to this element are, with today s knowledge, very small compared to the emissions from pulp and paper manufacturing and is therefore Carbon Footprints Celeste & Star Page 3 (6)

4 not included here. Nevertheless a common approach and of assessing these figures and life-cycle boundaries are here appropriate and also initiated by SCA. 6. Greenhouse gas emissions associated with purchased electricity, steam and heat and hot and cold water Purchased electrical and thermal energy. The emission figure reported is calculated using country specific emission factors for grid electricity in the country where the mill is located (Data from IEA, International Energy Agency, 2005). Instead of country specific emission factors can actual factors from energy suppliers be used if they are provided and documented. CHP for power supply has to be considered when evaluating, toe 3 and 6. Electricity and thermal energy sold to third parties can be subtracted from purchased energy. 7. Transport-related greenhouse gas emissions 7a) This figure includes emissions from transport of raw material to the mill i.e. wood, recovered paper, filler, main process chemicals etc. 7b, c) Emissions related to transport of final product to customer is included as an Euro average. Case studies for customers can easily be performed. SCA can assist in this process. Customer Calculations Internal transports are today not included; CEPI framework recommends cut-off criteria of 90% i.e. to include 90% of all emissions. 8. Emissions associated with product use Our knowledge about this is not complete today and calculations are left to be produced by our customers. SCA can assist in this process. 9. Emissions associated with product end-of-life Our knowledge about this is not complete today and calculations are left to be produced by our customers. SCA can assist in this process. Environmental Communication Toolbox 10. Avoided emissions and offsets ***To fulfill the picture of the results of our enterprise our performed energy-related investments this toe can be included but separated from others. As SCA deliver some 3 TWh of biofuel, bio pellets, this can be considered as replacing fuel oil in other energy systems. Also delivered waste heat to municipal district heating can be considered replacing oil. By investing in own green electricity production as CHP cogeneration, water- or wind power other marginal energy sources are reduced in actual energy system. Offsets are not included. Carbon Footprints Celeste & Star Page 4 (6)

5 SCA Forest Products Carbon Footprint Database Östrand Celeste elements of CEPI Framework Fossil CO 2 Biogenic CO 2 Comments (kg CO 2 / tonne (kg CO 2 / tonne 1. Carbon sequestration in forest - 2. Carbon stored in the product Greenhouse gas emissions from pulp and paper production Greenhouse gas emissions associated with producing fibre Greenhouse gas emissions associated with producing other raw materials/fuels 6. Greenhouse gas emissions associated with purchased electricity, steam and heat and hot and cold water * 7. Transport-related greenhouse gas emissions, trp. to mill gate Total fossil CO 2, emissions excl. trp. to customer Transport-related greenhouse gas emissions, Average trp. from mill to customer Transport-related greenhouse gas emissions, Case study trp. from mill to specific customer Total fossil CO 2, emissions incl. trp. to customer Emissions associated with product use - 9. Emissions associated with product end-of-life Avoided emissions and offsets - * 13,0 kg CO 2/MWh **, *** Please see Transparency Document Carbon Footprints Celeste & Star Page 5 (6)

6 SCA Forest Products Carbon Footprint Database Östrand Star 10 elements of CEPI Framework Fossil CO 2 Biogenic CO 2 (kg CO 2 / tonne (kg CO 2 / tonne 2015 Comments 1. Carbon sequestration in forest** - 2. Carbon stored in the product Greenhouse gas emissions from pulp and paper production Greenhouse gas emissions associated with producing fibre Greenhouse gas emissions associated with producing other raw materials/fuels 6. Greenhouse gas emissions associated with purchased electricity, steam and heat and hot and cold water * Transport-related greenhouse gas emissions, trp. to mill gate 26 Total fossil CO 2, emissions excl. trp. to customer Transport-related greenhouse gas emissions, Average trp. from mill to customer Transport-related greenhouse gas emissions, Case study trp. from mill to specific customer Total fossil CO 2, emissions incl. trp. to customer Emissions associated with product use - 9. Emissions associated with product end-of-life Avoided emissions and offsets*** - * 13,0 kg CO 2/MWh **, *** Please see Transparency Document Carbon Footprints Celeste & Star Page 6 (6)