A sustainable and circular bioeconomy business model of the forest - - PowerPoint PPT Presentation

A sustainable and circular bioeconomy business model of the forest based industries – climate change mitigation potential

Tytti Peltonen VP , Corporate Affairs Metsä Group

8 February 2018 Metsä Group 3

Key figures 2018

Pulp and Sawn Timber

Sales:

EUR 2.5 billion

Personnel:

1,200

METSÄ BOARD**

Paperboard

Sales:

EUR 1.9 billion

Personnel:

2,400

METSÄ FOREST

Wood supply and forest services

Sales:

EUR 2.0 billion

Personnel:

840

METSÄ TISSUE

Tissue and Greaseproof Papers

Sales:

EUR 1.0 billion

Personnel:

2,800

METSÄ WOOD

Wood products

Sales:

EUR 0.4 billion

Personnel:

1,500

METSÄLIITTO COOPERATIVE | Group’s parent company

| Owned by 103,000 Finnish forest owners

METSÄ FIBRE

METSÄ GROUP | Sales* EUR 5.7 billion | Personnel9,300 | Renewable energy28,4 TWh

* Internal sales eliminated **Listed on Nasdaq Helsinki

METSÄ SPRING | Innovation Company

Finland – the largest forest cover in Europe

02/07/2019 4 The area of Finland Cities, villages and roads Fields and agricultural use Lakes and rivers Forest

10% 10% 75% 5%

100+

MILLION M3

• Finland is the most forested country in
• Europe. Our forests grow more than they

are used

• More than 50% of Finland’s forests are
• wned by private forest owners
• Metsäliitto Cooperative members own

nearly half of the private forest area in Finland

• Sustainable forest management

safeguards biodiversity and enables versatile use of forests

Bark, branches and top for renewable energy Pulpwood for pulp and

• ther bioproducts

Logs for sawn timber, plywood and LVL

RENEWABLE ENERGY PULP WOOD PRODUCTS ELEC- TRICITY HEAT PRODUCT GAS Biogas Industry SULPHURIC ACID Bio- composites New bioproducts (in R&D) PAPER- BOARD TISSUE PAPER COOKING PAPER Pulp-based textiles Paper, specialty products LIME Fertilisers TALL OIL, TURPENTINE LIGNIN Construction

All products in BOLD are manufatured by Metsä Group. All other products are manufactured within the industrial ecosystem.

Beyond traditional forest industry

New bioproducts improve existing value chains and create jobs

Processing

• f wood

Recycling and use of side streams More value added & jobs from one tree Processing of products New products from side streams

URBANISATION POPULATION GROWTH RESOURCE SCARCITY CLIMATE CHANGE

Biodiversity Sustainable forestry Forest renewal RENEWABLE ENERGY

Climate change mitigation – potential

• f the forest-based industries

Mitigation actions

– Sustainable forest management – Production: energy & resource efficiency and breakthrough technologies – Recyclable and long-term use products – Renewable energy from side streams

PULP-BASED TEXTILES LIGNIN-BASED PRODUCTS

UTILISED SIDE STREAMS BIOCHEMICALS

Using fresh fibre ensures availability of recycled fibre: fibres are used on avg. 3.5 times.

PROCURED WOOD USED WOOD PULP PAPERBOARD SAWN TIMBER PLYWOOD AND KERTO LVL TISSUE PAPER COOKING PAPERS

81%

• f board packaging

is recycled in Europe

MAKE R&D USE AND RE-USE

WE BRING THE FOREST TO YOU

• Increasing the amount of carbon

stored in forests and products

• Safeguarding biodiversity
• Responsible corporate culture
• Accident-free work environment

WE WORK FOR A BETTER CLIMATE AND ENVIRONMENT

• Fossil free mills
• Resource efficient production

WE OFFER SUSTAINABLE CHOICES

• Fossil free raw materials
• Sustainable supply chain

8

Metsä Group’s 2030 sustainability objectives

Supporting UN Sustainable Development Goals (SDG’s)

WE CREATE WELL-BEING

Fossil CO2 emissions Fossil fuels

9

Forestry* Production Logistics

Growth

+

Sales

_

_

Products storing carbon

• 26 000 000
• 2 000 000

+ 1 500 000 + 18 000 000 Products replacing fossil materials

• 8 500 000 tCO2

Metsä Group is a significant carbon sink

* Forests owned by the members of Metsäliitto Cooperative

• In 2015-2018 Metsä Group invested 2 billion EUR in the European

bioeconomy

– New bioproduct mill in Äänekoski, Finland (1.2 billion EUR)

• In 2018 Metsä Group established a new innovation company Metsä

Spring Ltd

– Identifies and develops new business opportunities in sustainable forest- based bioeconomy and circular economy – Textile fibre demo plant investment

• Metsä Group is planning three new investments worth 2 billion EUR

– New bioproduct mill in Kemi, Finland – New pine sawmill in Rauma, Finland – First phase in renewing the Husum pulp mill, Sweden – Implementation in 2019 - 2023

10

Investments to support low-carbon circular bioeconomy

• Competitive forest industry means upgrading

each part of the wood to its highest value

• Our products succeed in international market

and have great growth potential without regulatory subsidies

• Healthy established businesses enable

investing into new innovations

• Public co-funding of R&D&I accelerates the

development of new high-risk technologies

11

Successful market-based and resource-wise bioeconomy