SUSTAINABILITY
REPORT 2023
ARCTIC PAPER SA CAPITAL GROUP
disclosure on non-nancial information
We ensure sustainability from forest to paper
TABLE
OF CONTENTS
This is Arctic
Paper / 8
Company
sustainability / 26
Sustainable supply
chain for client
satisfaction / 45
Environment
and climate / 54
1.1 Company Overview / 09
1.2 Business ethics / 20
1.3 Governance structure and management
on sustainability topics / 24
2.1 Materiality assessment / 27
2.2 Our contribution to the Sustainable
Development Goals / 32
2.3 Responsible business / 34
2.4 Principal risks and their management / 35
2.5 Arctic Paper’s partnerships / 38
2.6 Key business performance indicators / 41
3.1 Responsible supply chain / 46
3.2. Environmental assessment of suppliers
and responsible sourcing / 48
3.3 Transportation / 51
3.4. Commitment to client satisfaction / 53
4.1 Management approach / 55
4.2 Energy and emissions / 59
4.3. Sustainable circular production
and waste / 65
4.4 Water / 68
4.5 Biodiversity / 70
4
SUSTAINABILITY REPORT 2023
People / 73 About the
report / 104
5.1 Working at Arctic Paper –
Management approach / 74
5.2 Our employees' well-being
and satisfaction / 76
5.3 Human rights / 81
5.4 Health and safety / 83
5.5 Diversity, Equity and Inclusion / 84
Taxonomy / 86
7.1 Reporting period / 105
7.2 Contact / 105
7.3 ESG fact sheet / 106
7.4 ESG fact sheet
– Rottneros Group / 112
GRI Index / 116
6.1 Taxonomy compliance
assessment process / 89
6.2 Compliance verication with
the technical screening criteria / 90
6.3 Compliance verication
with minimum safeguards / 91
6.4 Accounting principles / 94
Arctic Paper has prepared its 2023 consolidated annual nancial statement in the European Single Electronic
Format (ESEF) which is the electronic reporting format in which issuers on EU regulated markets shall prepare
their annual nancial reports from 1 January 2020 based on Commission Delegated Regulation (EU) 2019/815
of 17 December 2018 supplementing Directive 2004/109/EC of the European Parliament and of the Council with
regard to regulatory technical standards on the specication of a single electronic reporting format as amended.
This abbreviated PDF version of consolidated nancial statement of Arctic Paper Capital Group 2023 has been
prepared solely only for the convenience of digital reading.
Despite all the efforts devoted to the conversion of XHTML le into PDF format, certain discrepancies, omissions
or approximations may exist. In case of any differences between the PDF and the XHTML versions, the XHTML
version is the only one legally binding and shall prevail.
Arctic Paper, its representatives and employees decline all responsibility in this regard.
5
MANAGEMENT
FOREWORD
It is with pleasure that we present to
you Arctic Paper’s latest CSR-report,
reecting our commitment to sustain-
able practices and responsible corporate
citizenship. As we navigate a changing
business landscape, it is crucial to be
transparent about our efforts to minimize
our environmental footprint.
As part of our commitment to climate
change mitigation, we have taken
signicant steps in enhancing energy
efciency, optimizing water usage, and
increasing the share of renewable energy
in our production. Arctic Paper’s goal is
to transition to fully fossil-free energy
production, accompanied by a substan-
tial reduction in GHG emissions, aiming
for zero emissions in Scope 1 and 2 by
2035. To achive this we actively invest in
renewable energy sources.
Following the principles of the circular
economy, we are committed to deliv-
ering sustainable wood ber solutions
and renewable products. Arctic Paper’s
focus is to create business opportunities
by replacing fossil-based materials with
bio-based, renewable alternatives. It’s
our responsibility to also actively safe-
guard biodiversity in conservation areas
and regenerative forests, with focus
on supplier network. Commitment to
responsible sourcing extends beyond our
operations, to ensure a positive impact
throughout our value chain.
Collaboration is key as we work with
partners to enhance sustainability bene-
ts. To uphold the highest standards of
governance, Arctic Paper has introduced a
new Code of conduct in the value chain of
Arctic Paper Group. It’s designed to rein-
force ethical practices and ensure compli-
ance with our values. We are also actively
working to create organizational resilience
in the face of changing environments and
climate conditions.
Dedication to the development and well-
being of employees is our priority. Arctic
Paper is committed to achieving zero inju-
ries, promoting diversity and inclusion, and
increasing the proportion of women at
various management levels.
Finally, we would like to express warm
thanks to all employees in the Group
for their great efforts during the year to
achieve good results both in terms of nan-
cial and ESG performance.
Sincerely,
Michal Jarczyski
CEO of Arctic Paper SA
6
SUSTAINABILITY REPORT 2023
Arctic Paper’s commitment to climate
change mitigation stands rm.
7
THIS IS
ARCTIC
PAPER
8
SUSTAINABILITY REPORT 2023
1.1
COMPANY OVERVIEW
Arctic Paper SA is a leading European producer of high-quality graphic paper
listed on the stock exchanges in Warsaw (Giełda Papierów Wartościowych –
GPW) and Stockholm (NASDAQ). We produce numerous types of uncoated and
coated wood-free paper, as well as wood-containing uncoated paper for printing
houses, paper distributors, book and magazine publishing houses, the adver-
tising industry and packaging producers.
POLAND
THE PAPER MILL IN KOSTRZYN NAD ODRĄ
The mill has a production capacity of about 315,000 tonnes of paper
per year and mainly produces uncoated wood-free paper for printing
books, brochures and forms, and for producing envelopes and other
paper products.
SWEDEN
THE PAPER MILL IN MUNKEDAL
The mill has a production capacity of about 160,000 tonnes per year
and mainly produces ne uncoated wood-free paper, used primarily
for printing books and high-quality brochures.
SWEDEN
THE PAPER MILL IN GRYCKSBO
The mill has a production capacity of about 220,000 tonnes per year
and produces coated wood-free paper used for printing maps, books,
magazines, posters and advertising materials.
As of December 31, 2023, Arctic Paper employs 1223 people.
Our business activities are based on the operations
of three mills:
1.
2.
3.
9
1. THIS IS ARCTIC PAPER
SALES OFFICES
Arctic Paper Papierhandels GmbH, Austria
Arctic Paper Benelux N.V., Belgium
Arctic Paper Danmark A/S, Denmark
Arctic Paper France SAS, France
Arctic Paper Deutschland GmbH, Germany
Arctic Paper Italia Srl, Italy
Arctic Paper Baltic States, Latvia
Arctic Paper Norge AS, Norway
Arctic Paper Polska Sp.zo.o., Poland
Arctic Paper Espana S.L., Spain
Arctic Paper Sverige AB, Sweden
Arctic Paper Schweiz AG, Switzerland
Arctic Paper UK Ltd., United Kingdom
MILLS
Arctic Paper Kostrzyn SA, Poland
Arctic Paper Munkedals AB, Sweden
Arctic Paper Grycksbo AB, Sweden
We manage sales organisations across Europe, which support
our activities and contacts with customers. The company is
registered in Kostrzyn nad Odra (Poland).
10
SUSTAINABILITY REPORT 2023
Arctic Paper SA is also a majority owner (in possession of 51.0 % of the shares as
of December 31. 2023) of the Rottneros group. Rottneros AB is a pulp producing
company, registered on the Nasdaq stock exchange in Stockholm. Mills owned
and operated by Rottneros AB are located in Sweden and have aggregate
production capacities of about 440,000 tonnes of pulp annually. Arctic Paper
SA has nancial control over Rottneros AB, as it holds the majority of shares,
yet operational control belongs to Rottneros AB, including responsibility for the
company’s performance and sustainability matters.
Rottneros data for 2023 is not fully available in the format presented by Arctic
Paper SA. However we present selected data in Chapter 7 ESG fact sheet.
Broader description of the impact on sustainable development and results will be
presented in a separate report of the subsidiary.
Arctic Paper SA discloses information on the EU Taxonomy of environmentally
sustainable activities at consolidated level, including data from Rottneros AB.
Rottneros AB's report is available on web page:
https://www.rottneros.com/sustainability/sustainability-reporting/
Starting from the 2024 annual reporting period, Arctic Paper will include
Rottneros AB's non-nancial data to the extent required by the
new European Sustainability Reporting Standards (ESRS).
11
1. THIS IS ARCTIC PAPER
OUR HERITAGE AND VALUES
Arctic Paper is a company
based upon Swedish roots.
We have been manufacturing
paper with craft and dedication
since 1740. Today we run some
of the most eco-friendly mills
worldwide and are constantly
improving our sourcing,
production, sale processes
and energy management.
We try to optimise our daily
business processes to be a part
of circular bioeconomy.
Our reputation in the high-quality graphic
paper market is built on a long tradition
of exceptional work with the help of our
brands, executed by the most demanding
customers who value the proven quality of
our products.
We are clear, open-minded and follow
a long-term plan in the way we act, think
and appear. We are sensitive towards
nature and positive towards the future.
We protect natural resources and
constantly create a sound balance between
people, production and regions. We run
our business in a stable, long-term and
trustworthy manner. We are a forerunner
in the protection of nature and the devel-
opment of new products for core markets
as well as for new markets and segments.
We offer distinctive products and services
built on inventiveness and reliable quality,
crafted for the most demanding creative
ideas and using new technologies.
Our business operations are based on
well-established and trusted relation-
ships with different stakeholders. Thus,
we need to ensure that all of our busi-
ness operations are transparent – from
sustainable sourcing, the production and
delivery of our products, to the commu-
nication of our results to external stake-
holders. We are transparent and ethical
in everything we do.
Our cooperation with suppliers has been
based on Code of conduct in the value
chain of Arctic Paper Group. Our goal is
to work with suppliers who can and are
willing to assure us that they respect our
values regarding People and the Envi-
ronment. In 2021 we elaborated a new
Sustainability policy for the entire Arctic
Paper Group.
In order to face new challenges and to
address all signicant topics relevant
for our stakeholders, we implemented a
new Code of conduct for the entire value
chain of Arctic Paper Group in the begin-
ning of 2024.
12
SUSTAINABILITY REPORT 2023
OUR BRANDS
For decades, we have been one of the leading European
producers of premium graphic paper products, superior
packaging grades and services for the most demanding
creatives and technologies valuing the superb, reliable
and eco-friendly quality of our paper brands.
We are known for new solutions and products, as well as the continuous exten-
sion of our product ranges in step with the latest developments in printing tech-
nology for both the graphical and the packaging segments.
The graphical paper market consists of two segments: wood-free ne paper and
wood-based paper, both divided into the sub-segments of uncoated and coated
paper, while the packaging segment is served by wood-free grades. Our mills in
Munkedal and Kostrzyn produce uncoated wood-free and wood-based paper,
while the mill in Grycksbo produces coated wood-free paper.
13
1. THIS IS ARCTIC PAPER
KEY BRANDS
Uncoated wood-free paper, in particular – Munken Design,
Munken Book, Amber
• High-quality graphic paper with a very smooth surface, used for various kinds of
advertising and marketing materials. It is produced under the Munken brand.
• Bulky book paper, produced under the Munken brand, used primarily for
printing books.
• White offset paper, produced and distributed primarily under the Amber brand.
It’s one of the most versatile types of paper.
Uncoated wood-based paper, in particular – Munken Print
• Premium bulky book paper, produced and distributed under the Munken
brand, specially developed for colour- and monochrome-printing of books.
Coated wood-free paper, in particular – Arctic Volume, G
• Manufactured under the brand names Arctic Volume and G, used primarily
for printing books, magazines, catalogues, maps and personalised direct mail
correspondence.
Packaging paper – Munken Kraft, G-Flexmatt
The packaging paper portfolio manufactured in Munkedal, Kostrzyn and
Grycksbo has been established since 2020 in chosen markets and segments.
The combined offer from the two uncoated mills is called Munken Kraft and
covers a grammage range from 38 g/m2 to 150 g/m2 in two shades.
Since 2021, the coated packaging paper is a one-sided coated matt grade,
called G-Flexmatt.
14
SUSTAINABILITY REPORT 2023
OUR BRANDS AND
THE CIRCULAR ECONOMY
Arctic Paper paper grades are produced with an aim to
enhance the circular economy. We use methodologies and the
experience of third parties to create new ways to produce our
different paper ranges, based on chemical hazard identication
and qualitative exposure considerations during manufacturing,
use, and end-of-use of a product. It means that products are
made using chemicals that are as safe as possible for humans
and the environment.
Chosen Arctic Paper products, like Munken Design, Amber Graphic, G and
Arctic Volume white, have been inspected and approved to be used in for Nordic
Ecolabel certied products.
15
1. THIS IS ARCTIC PAPER
History of our Munken Agenda collaborations:
2019 – NABA (Nuova Accademia di Belle Arti), Milan, Italy;
2020 – École Estienne in Paris, France;
2021 – Universities in London, England;
2022 – Academy of Fine Arts in Warsaw, Poland;
2023 – Forsbergs Design and Advertising School in Stockholm, Sweden;
2024 – Kristiania University College, Oslo, Norway.
OUR BRANDS AND
THE DESIGN INDUSTRY
At Arctic Paper, we learn from students and students learn from working
with us. The Munken Agenda is our unique annual design project, which
started in 1996. For over a decade, Arctic Paper has collaborated with
different European Design Universities in creating an artistic platform for
exchanging our passion for providing high-quality products having an
eco-friendly and sustainable footprint with creativity and conceptual ideas
by artists and designers.
The Munken Agenda is perceived as an interesting design reference by art
directors, designers and agencies around Europe and the world.
16
SUSTAINABILITY REPORT 2023
MARKETS SERVED
AND OUR SCALE
OF OPERATIONS
99% of Arctic Paper products
are delivered to European
markets. Which, in times of
global transportation problems
and supply chain crisis, helps
us to create a relatively secure
distribution and delivery
reliability. For years our biggest
markets have been Germany,
Poland, the Nordic countries,
the Baltics, followed by France,
BeNeLux, UK and Central and
Eastern European countries.
Germany 22%
Poland 17%
UK & IE 12%
Austria and
Central Europe 10%
The Nordics 10%
France 9%
The Baltics 6%
Benelux 4%
Outside Europe 1%
Rest of Europe 9%
17
1. THIS IS ARCTIC PAPER
OUR MAIN ACHIEVEMENTS
AND PROJECTS IN 2023
Arctic Paper works towards business expan-
sion and revenue diversication, creating a
solid future for our stakeholders and using
natural renewable resources. We are focused
on developing our products while making a
positive contribution toward environmental
protection in our day-to-day operations.
Each year we plan and
implement innovative
and efcient solutions among
all our areas of operation.
• Joint investment of Arctic Paper and
Rottneros – conclusion of a joint-ven-
ture agreement to build a production
facility of packaging from moulded
cellulose bre.
• Kostrzyn mill was awarded with
an Employee-Friendly Employer
certicate granted by President
of Poland.
• Grycksbo mill launched a project of
pellet production installation, see Case
Study page no 62.
• Kostrzyn mill is expanding its solar
panels installation.
• Grycksbo mill switched to non-fossil
bio diesel as a fuel for internal trans-
port vehicles.
• We implemented new Code of conduct
in the value chain and
Whistleblowing policy. We also created
the Sponsorship policy.
• Grycksbo and Munkedals mills – im-
plemented Pulse meetings – short and
frequent mills’ teams meetings as an
implementation of lean methodology to
gather information about the results of
current projects.
• Munkedals mill created a ower
meadow on the mill site.
• Kostrzyn mill celebrated its 30
th
anni-
versary.
• Grycksbo mill celebrated its 280
th
anni-
versary.
18
SUSTAINABILITY REPORT 2023
BUSINESS MODEL
Below we present information about our business
model – key inputs and outputs, as well as business
activities and results.
INPUTS BUSINESS ACTIVITIES OUTPUTS RESULTS
HUMAN CAPITAL:
∙ 1,223 employees
all over Europe
MANUFACTURING
CAPITAL:
∙ One mill in Poland
and two mills in Sweden
∙ Total production capacity
of over 700,000 tonnes
of paper per year
NATURAL CAPITAL:
∙ Pulp
∙ Pigments
∙ Chemical additives
∙ Water
∙ Energy
FINANCIAL CAPITAL:
∙ Cash
PURCHASING:
∙ Sustainable and
ethical sourcing
∙ Compliance with
the Code of conduct
in the value chain
INNOVATION:
∙ Eco-friendly products,
innovative and efcient
production processes
PRODUCTION:
∙ Responsibility for
the health and safety of
employees, the environ-
ment and product quality
SALES:
∙ Compliance with
the Code of conduct
TRANSPORTATION
AND LOGISTICS:
∙ Sustainability and lower
CO
2
footprint in deliveries
RECYCLABLE AND
DEGRADABLE PRODUCTS:
∙ Sheets and reels
∙ Coated and uncoated,
wood-free and wood-
based paper
SERVICE OFFER:
∙ Availability of standard
products
∙ Production on demand
(adjustable time frame,
quality, quantity)
∙ Delivery
∙ Product-specic training for
customers and suppliers
EMISSIONS AND WASTE:
∙ Affecting air,
water and land
ENERGY:
∙ The mill in Kostrzyn
sells heat and electricity
∙ Solar power plant
in Kostrzyn, Grycksbo
and Munkedals
∙ Hydropower plant
in Munkedals
∙ Continued investments
and working on develop-
ment of energy efciency
and independence
CUSTOMER:
∙ Customer satisfaction
∙ Brand loyalty
∙ Few customer complaints
EMPLOYEES:
∙ Stable employment and
safe working conditions
∙ Equal opportunities
to grow within the
organisation
∙ Few accidents
∙ Good relationship
with trade unions
∙ Low employee turnover
SOCIETY:
∙ Taxes from employees
and company
∙ Provision of local
employment
∙ Participation in and
support for local initiatives
∙ Commitment into
health programmes
and initiatives to support
employees, their families
and local communities
FINANCERS
AND SHAREHOLDERS:
∙ Interest and dividends
19
1. THIS IS ARCTIC PAPER
1.2
BUSINESS ETHICS
We value transparency in internal
and external relations, as any
unethical behaviour may expose
us to risks of reputational damage
and nancial loss. Our new
Code of conduct in the value
chain contains clear guidelines
regarding the business behaviour
of our employees and other
stakeholders, including zero-
tolerance for bribes, corruption
and other unethical acts.
We are aware of the fact that
our sales ofces and purchasing
and logistics departments are
where the risks of corruption
and bribery exposure are most
signicant. Our approach to
anti-corruption measures in these
areas is structurally embedded in
our processes.
We have a 7-step approach to procure-
ment, which limits the scope for unethical
behaviour. First, we divide item purchases
into sourcing groups. Then, we gather
information about the sourcing groups
and the market. Subsequently, we create
a portfolio of potential suppliers and
choose a strategy for each sourcing
group. We then negotiate with a selection
of suppliers and integrate further with our
chosen suppliers. Lastly, we continuously
monitor the procurement market to make
sure our contracts remain competitive.
As all decisions made during this process
are never dependent on one person, the
risk of bribery or corruption is reduced.
For large investment projects, decisions
regarding investment purchases are
made by a dedicated committee, and we
are considering extending this practice
to other large purchases. The logistics
department has a similar purchasing
system in place.
Our price lists, approved by our manage-
ment, are communicated to members of
our sales teams. Bonuses to members of
the sales teams are not tied exclusively
to their individual sales performance, but
also to the overall nancial performance
of the company. We offer bonuses to
our clients on a semi-annual and annual
basis; however, these are linked to sales
volumes, e.g., through sales volume
brackets, which are strictly monitored.
Arctic Paper does not offer other bonuses
(for example in-kind) to clients.
To us, business ethics is very much a ques-
tion of awareness. A part of the induction
programme for new employees includes
topics such as laws and regulations, anti-
bribery and anti-corruption measures,
human rights and environmental responsi-
bility. Since 2018, the programme covers
all units within the group. Thus, our key
performance indicator in this respect is
the number of our employees who have
attended such training.
20
SUSTAINABILITY REPORT 2023
KEY PERFORMANCE INDICATOR 2023
Number of employees who participated in the Business ethics training programme (per year) 81
LEGAL AND REGULATORY COMPLIANCE
Arctic Paper SA is a publicly listed company, which obliges us to comply with the
rules set out in the document “Best Practice of GPW Listed Companies 2021”.
A statement on current compliance with the corporate governance principles
of GPW is published on the Arctic Paper corporate webpage. We comply with
and adhere to all applicable laws and regulations in the European Union coun-
tries where we operate. Although a large part of them is uniform throughout the
Union, we are sensitive to any differences between individual countries.
Legal and regulatory compliance is a business necessity, but also a way for us to
ensure the sustainability of our operations.
We monitor the number of open legal cases where Arctic
Paper was found guilty of a breach of law or regulation.
We separate them into business and non-business related, as
well as into nes bigger and smaller than PLN 2 million.
With regards to legal and regulatory compliance, our target
is to minimise risk of lawsuit.
*Business related legal cases are from customers. All others are dened as non-business.
KEY PERFORMANCE INDICATOR BUSINESS RELATED* NON-BUSINESS RELATED*
2023
Fine bigger than PLN 2M 0 0
Fine smaller than PLN 2M 0 0
We aim for our employees to sign declarations that they have familiarised them-
selves with our Code of conduct. Our employees are participating in nano-learning
in the area of business ethics, which mainly covers corruption and bribery topics.
In 2023 all new employees received training during the onboarding process.
21
1. THIS IS ARCTIC PAPER
TRANSPARENCY
AND COMMUNICATION
ARCTIC PAPER GROUP IS OPEN AND TRANSPARENT IN DECISIONS AND
ACTIVITIES THAT HAVE AN IMPACT ON SOCIETY AND THE ENVIRONMENT.
• We are accountable for our actions.
• We always comply with applicable laws and regulations, and we respect,
consider and respond to the needs of our stakeholders.
• We behave ethically and actively promote ethical behaviour based in the values
of honesty, equity and integrity.
• We believe in fair and free trade. We shall refrain from any kind of bribes
and corrupt business
• All employees of Arctic Paper, regardless of their functions, are obliged to apply
the ethical principles and rules of conduct collected in the Code of conduct
in the value chain of Arctic Paper Group. It is a set of key principles and values
reecting the organizational culture of the Arctic Paper Group, the purpose
of which is to build trust and lasting loyalty of employees, customers,
shareholders and local communities
• Members of the corporate bodies of Arctic Paper should refrain from profes-
sional or other activities which might cause a conict of interest or adversely
affect their reputation as members of the corporate body, and where a conict
of interest arises, they should immediately disclose it.
22
SUSTAINABILITY REPORT 2023
CUSTOMERS EMPLOYEES SUPPLIERS SHAREHOLDERS
Environment
and Climate
∙ EMAS report
∙ “Paper Proles”
∙ Sustainability policy
∙ EMAS report
∙ Sustainability policy
∙ EMAS report
∙ Code of conduct in
the value chain and
Sustainability policy
∙ “Paper Proles”
∙ EMAS report
∙ “Paper Proles”
∙ Sustainability policy
People ∙ Direct communication
through sales ofces
∙ Code of conduct in
the value chain and
Sustainability policy
∙ Whistleblowing
reporting system
∙ Intranet, widely acces-
sible to all employees
∙ Meetings, both
one-on-one
and in groups
∙ Training and
education
∙ Whistleblowing
reporting system
∙ Diversity policy
∙ Direct communication
through purchasing
departments
∙ Code of conduct in
the value chain and
Sustainability policy
∙ Whistleblowing
reporting system
∙ Code of conduct in
the value chain and
Sustainability policy
∙ Whistleblowing
reporting system
∙ Sponsorship policy
Business
operations
∙ Direct communication
through sales ofces
∙ Press releases
∙ Meetings
∙ Periodic
and annual reports
∙ Annual meetings and
investors meetings
∙ Press releases
∙ Code of conduct in
the value chain and
Sustainability policy
We strive to maintain a transparent busi-
ness climate and a high level of business
ethics. A number of policies, internal
requirements, laws, rules and routines
governs the operations of Arctic Paper.
Our aim is to act with transparency and
we want our employees and other stake-
holders to experience participation in
the business. The Whistleblower system
gives anyone the opportunity to report
suspected serious misconduct that is
inconsistent with the Code of conduct and
Arctic Paper's values.
This service is intended for all our internal
and external stakeholders and publicly
available on-line. It is worth remembering
that using it can have a huge impact on
the entire organization or the life and
health of a specic person.
Apart from transparency in inter-
nal and external relations, we
value constant and transparent
communication with our stake-
holders, as explained in our Sus-
tainability policy. Our communi-
cation matrix shows that we use
different communication channels
which help us to communicate
issues regarding our material
themes to different stakeholders.
We understand that different
topics have varying degrees of
importance to our stakeholders.
A commonly used communication channel
in Arctic Paper is our Investors Relations
mailbox. Upon receiving a query, the
message is forwarded to the person most
competent to answer it.
23
1. THIS IS ARCTIC PAPER
Management Board
Sustainability Team
Group Executive Team
Managing Director
Arctic Paper
Munkedals AB
Managing Director
Arctic Paper
Grycksbo AB
Managing Director
Arctic Paper
Kostrzyn SA
Managing Director
Sales Ofces
Managers Managers Managers Managers
Supervisory Board
1.3
GOVERNANCE STRUCTURE
AND MANAGEMENT ON
SUSTAINABILITY TOPICS
24
SUSTAINABILITY REPORT 2023
Engagement of the Management Board and the Supervisory
Board in the economic, environmental, and social topics
• Arctic Paper Group strives in its operations to
promote environmental protection, an effi-
cient utilisation of resources and energy, and
sustainable development.
• The Arctic Paper Management Board together
with the Supervisory Board and its Risk
Committee are responsible for overseeing the
process of identifying and managing risks in
each country where Arctic Paper operates. The
Management Board is supported and advised
by the Managing Directors of the mills and
Managing Directors of sales units.
• The Group Executive Team consists of exec-
utive vice presidents responsible for various
areas of activity, including strategy and sustain-
able development, procurement, human
resources, sales and marketing.
• The Supervisory Board is composed of five
members elected by the Shareholders Meeting
for a joint three-year term of office. Two of the
members are independent.
• The Management Board is composed of three
members elected by the Supervisory Board for
a joint three-year term of office.
• The Sustainability Team, consisting of
employees representing various functions and
positions within Arctic Paper, holds an advi-
sory role in the process.
• At least every two years Arctic Paper conducts
a materiality assessment, which defines the
most important topics it should contribute to.
• The demands we place on ourselves, we pass
on to our suppliers. As far as possible, our
environmental principles should also apply
outside our company. Every step in the chain,
from sourcing of raw materials to suppliers,
must live up to our high demands.
• Each company in the Arctic Paper Group
must work to maintain a friendly internal and
external environment. Paper mills are required
to make continuous efforts in this area - of
course, within what is technically and economi-
cally justified.
• At each stage of the process, from the
purchase of raw materials for manufacturing,
through quality development, marketing and
distribution to end customers, we try to mini-
mise our environmental impact on water, air,
climate, ground and noise levels.
• Before a decision is made as to new invest-
ments or major changes in the manufacturing
process, issues relating to the working envi-
ronment and the external environment must
be assessed in the form of an environmental
impact analysis, including energy consumption
and evaluated in collaboration with manage-
ment, authorities and employees. Environ-
mental factors are taken into consideration
when marketing the Group’s products.
• Arctic Paper Group undertakes long-term
environmental planning and monitors devel-
opment in these matters, both in Sweden and
Poland and on an international scale, as well
as monitoring and participating in research
projects in this area. Arctic Paper Group must
have an open, objective approach to internal
and external environment information.
25
1. THIS IS ARCTIC PAPER
COMPANY
SUSTAINABILITY
26
SUSTAINABILITY REPORT 2023
2.1
MATERIALITY
ASSESSMENT
Arctic Paper’s key focus is sustainable develop-
ment in all areas where our business activities
have a signicant impact. This means that we
aim to create value for shareholders, but not at
the expense of opportunities for future genera-
tions. In sustainability reporting, materiality is the
principle that determines which relevant topics
are so important that it is essential to report
on them. Not all material topics are of equal
importance, and the emphasis within a report is
expected to reect their relative priority. Thus,
the reporting organization should conduct a
materiality assessment.
Our three key sustainability aspects are: the
Environment, People and Business Operations
We constantly review and internally validate the
list of material aspects, from which we arrived at
our materiality mix. The materiality mix continues
to be the basis of Arctic Paper's sustainability
work and reporting structure.
At the end of 2020, we conducted a survey
in which we asked our stakeholders to
share their opinions and recommendations
regarding our future CSR activities and
areas of involvement. Three main groups of
our stakeholders took part in it: employees
(491 respondents), customers (24 respond-
ents) and other stakeholders (20 respond-
ents), including:
• suppliers,
• NGO representatives,
• authorities,
• local communities,
• universities,
• schools and representatives
of creative industries.
All topics were assessed against the following criteria: importance to
the company and importance to the stakeholders, using a scale from
1 (low importance) to 20 (high importance). Their opinions help us
to decide which aspects of our responsibilities should be our priority
for the future. We have analysed the results and prepared new
Arctic Paper Materiality Matrix based on environmental, social and
governance (ESG) criteria.
27
2. COMPANY SUSTAINABILITY
ARCTIC PAPER MATERIALITY MATRIX
The results of the stakeholder survey and management valuation of sustainability
factors are shown in condensed form in the materiality matrix below.
5
10
11 12 13 14
15
16
17
18
19
20
10 15 16 17 18 19 20
7 TOP MATERIAL ESG TOPICS
S1
Health and safety
of the employees
40
S2 Customer satisfaction 39
E1 Climate change 38
E2
Water consumption manage-
ment and minimising water
pollution
36
E3
Sustainable circular
production system
and waste management
36
S3
Working conditions and
employee satisfaction
35
G1
Business ethics: legal
& regulatory compliance,
anti-corruption measures,
transparency
35
OTHER ESG TOPICS
S4
Training and development
possibilities
34
S5
Human rights protection in
the workplace and in the
supply chain
34
G2
Inuence of COVID-19
pandemic on business –
company resilience
34
E4
Offering more eco-friendly,
certied products
31
S6 Diversity and inclusion 30
S1
S2
S5 S4
S2
S3
G1
E3 E2
E4 G2
E1
IMPORTANCE AND IMPACT ON STAKEHOLDERS
IMPORTANCE AND IMPACT ON ARCTIC PAPER
28
SUSTAINABILITY REPORT 2023
KEY FINDINGS
The fact that Arctic Paper engages in sustainable development activities is impor-
tant or very important for stakeholders.
All groups stated that Arctic Paper has made progress regarding sustainable
development.
According to more than half of Arctic Paper's clients, the company is one of the
leaders in sustainable development.
Almost 80% of clients state that Arctic Paper cares about customer satisfac-
tion, and as research shows, this topic should be one of the most crucial for
Arctic Paper.
Reducing the impact on climate change should be a priority for the next 3 years
according to stakeholders.
85% of representatives of the group of "other stakeholders" declared that it
is important to them and their organisation to understand the goals and plans
of Arctic Paper.
29
2. COMPANY SUSTAINABILITY
BASIS FOR SELECTION IMPORTANT SUBJECTS ARCTIC PAPER ACTIONS
Customers
Main source of value creation ∙ Environmental impact of produc-
tion and ways of improving its
efciency
∙ Preventing deforestation:
pulp sourced from sustainably
managed forests
∙ Compliance with laws and
regulations
∙ Meeting sustainability goals while
offering competitive prices
∙ Offering more ecofriendly,
certied products and packaging
solutions
∙ Customer satisfaction and
managing consumer complaints
∙ Effective transport and logistics
∙ Workplace ethics and principles
∙ Communication with customers
regarding sustainable develop-
ment activities
∙ Support and education for clients
and end-users
∙ Transparent presentation of envi-
ronmental performance, such as
in the EMAS-report
∙ Using pulp manufactured from
suppliers certied by FSC
®
or
PEFC™
∙ Development of new sustainable
and renewable products and
services
∙ Effective claim handling system
∙ Reduction of the share of trans-
port with the use of engines with
standards lower than EURO 5
∙ Business ethics training for
employees
∙ Meetings with customers, trial
printing new products
Employees
Key capital for our ability
to produce and sell our products
∙ Environmental impact of produc-
tion and ways of improving its
efciency
∙ Initiatives to improve the well-
being of employees
∙ Health and safety
∙ Training and development possi-
bilities within organisation
∙ Communication with employees
∙ Human rights protection in the
workplace
∙ Company involvement in local
communities
∙ Mill-specic action plans
for health and safety
∙ Training programmes
∙ Remuneration routines
∙ Financial participation in health
and well-being initiatives and
activities, supporting employees
and their families
∙ Partnerships and sponsorships
with local cultural and sports
associations
Suppliers
Signicant impact on
our production capabilities
∙ Responsible approach
towards our supply chain
∙ Business ethics
∙ Human rights protection
in the supply chain
∙ Audit of a major pulp supplier
using a detailed form
∙ Following the Arctic Paper
Code of conduct for suppliers
∙ Looking for more efcient
and sustainable ways
of transportation
30
SUSTAINABILITY REPORT 2023
BASIS FOR SELECTION IMPORTANT SUBJECTS ARCTIC PAPER ACTIONS
Authorities / NGO’s /
Local communities
Compliance with legal obligations ∙ Compliance with
legal requirements
∙ Minimising the negative impact
of business operations
∙ Human rights protection
in the supply chain
∙ Human rights protection
in the work place
∙ Transparent reporting and
communication both for nancial
and non-nancial performance
∙ Active participation
in sectoral initiatives
∙ Following Arctic Paper’s Code
of conduct and Diversity policy
Shareholders
Expectations of return on
investments
∙ Support for Arctic Paper’s
sustainability work
∙ Potential business risks related
to sustainability issues
∙ Sustainable circular production
system and waste management
∙ Providing information
regarding its approach
to environmental issues
∙ Transparent reporting and
communication, both for nancial
and non-nancial performance
∙ Strategy publication
∙ Meetings and dialogue
with investors
In 2023, there were no changes to the busi-
ness model of the Arctic Paper Group, nor
were there any events in the environment
that would signicantly affect this model
and the nature and scale of the social, envi-
ronmental or economic impact of Arctic
Paper Group.
The above-described aspects are the
subject of a broader annual discussion
within our organization, which aim to
better understand the current and future
nature of relations with the environment in
the context of possible changes, including
regulatory, and observed social trends.
As a result, it allows us to understand the
current and future nature of our impact.
The internal verication of the assess-
ment of the signicance of the impact of
individual areas and the prioritization of
important aspects carried out in recent
years led to the conclusion that there have
been no signicant changes in this respect
compared to the previous year. As a result,
they became the starting point for deter-
mining the current content of the report.
In the last quarter of 2023, we conducted
another edition of our stakeholder survey.
We have started the process of double
materiality assessment related to the new
European Sustainability Reporting Stand-
ards - ESRS, which are applicable to the
Arctic Paper Group from the reporting year
2024. The study results will allow us to revisit
important topics and estimate the impact of
our activities. The results of the dual mate-
riality assessment will be presented in our
2024 Sustainability Report.
31
2. COMPANY SUSTAINABILITY
PEOPLE
2.2
OUR CONTRIBUTION
TO THE SUSTAINABLE
DEVELOPMENT GOALS
In 2015, the United Nations published a comprehensive list of 17 Sustainable
Development Goals (SDGs). As sustainability is deeply integrated into the daily
operations of Arctic Paper, we decided to match the material themes described
above with the SDGs. We have identied eleven SDGs that we nd are the most
relevant to our operations and to which Arctic Paper can best contribute.
• Systematic approach to health and safety at each mill
• Annually approved action plans for health and safety
• Occupational healthcare service at all sites
• Rehabilitation services on offer
• Keeping a register for analysis and prevention
of accidents
• Whistleblowing system and interactive training for
employees across the entire organisation
• Diversity policy - workshops and launch of development
work of an action plan and education program in the eld
of diversity and inclusion
• Regular performance audits for employees (salary
mapping)
• Cooperation with local and international schools and
universities in Europe
• Regular IT trainings
WHAT ARCTIC PAPER IS DOING
% IMPACT ON ARCTIC PAPER'S
CORE OPERATIONS
% IMPACT ON ARCTIC PAPER'S
VALUE CHAIN
32
SUSTAINABILITY REPORT 2023
ENVIRONMENT
• State-of-the-art water treatment facilities at all sites
• Plans in place to improve water efciency
• Measurement and monitoring of indicators of water inow
and outow
• Employee education with regards to environmental
behaviours
• Improvements in energy efciency
• Measurement and monitoring of emission indicators
• All mills are ISO14001 certied and full EU EMAS
regulations
• Grycksbo mill is ISO 50001 certied (Energy management
system) and certcation of mill in Munkedal is completed
• Measurement and monitoring of waste management
indicators
• Restoring sh breeding habitat in the Munkedal river
WHAT ARCTIC PAPER IS DOING
BUSINESS
OPERATIONS
• Responsible supply chain practices
4P Strategy – Power, Paper, Pulp, Packaging
• Strong focus on measuring and minimising the
environmental impact of our business operations
• Cooperation with local communities, industry
associations
• Sharing knowledge and experience with institutional
partners
WHAT ARCTIC PAPER IS DOING
% IMPACT ON ARCTIC PAPER'S
CORE OPERATIONS
% IMPACT ON ARCTIC PAPER'S
VALUE CHAIN
% IMPACT ON ARCTIC PAPER'S
CORE OPERATIONS
% IMPACT ON ARCTIC PAPER'S
VALUE CHAIN
33
2. COMPANY SUSTAINABILITY
2.3
RESPONSIBLE BUSINESS
For Arctic Paper Group, sustainability is the foun-
dation of our business: we believe that you can't
run a business without considering the organi-
sation’s impact on the environment and society.
We want to leave the smallest possible footprint,
while having the greatest possible positive
impact on our stakeholders. This is our respon-
sibility as a company which employs more than
thousand employees around Europe, supplies
its products to customers around the world, and
whose production process is based on the use
of renewable raw materials. This is manifested in
our Sustainability policy which we implemented
at the end of 2021.
Our approach to sustainable development
is based on ESG (Environmental, Social and
Corporate Governance) factors, and therefore
focuses on three pillars: Environment, Social and
Corporate Governance. Thanks to it, we make
a positive contribution to the implementation of
the UN Sustainable Development Goals.
Our Sustainability policy aims to dene the
general principles of approach to ESG issues
and sustainable development. Sets out the
framework for managing these topics within the
Arctic Paper Group.
The policy recognizes the importance of topics
related to sustainable development for the Arctic
Paper Group, its business model, long-term
goals and daily operations. The principles of
managing ESG issues, which include the Sustain-
ability policy, are the basis for implementing
a sustainable development approach that
supports the goals of our company policy has an
educational dimension.
In Arctic Paper Group, we make every effort
to ensure that everyone knows the rules and
follows them in everyday work. To this end, we
put emphasis on educating managers and top
management.
We are a responsible organization,
which is why we undertake numerous
activities contributing to sustainable
development.
Arctic Paper SA regularly conducts a materiality
assessment dening the most important topics it
should positively contribute to.
The Sustainability policy is
supplemented by the following
policies in place at Arctic
Paper Group:
• Code of conduct in the value chain of Arctic
Paper Group,
• Diversity policy,
• Sponsorship policy,
• Whistleblowing policy.
The implementation of policies is supported by
guidelines and instructions from the management,
which help everyone within the organisation to
understand their impact and obligations.
34
SUSTAINABILITY REPORT 2023
2.4
PRINCIPAL RISKS
AND THEIR MANAGEMENT
In order to sustainably create value over the short and long-term,
we periodically identify, analyse and mitigate the risks facing
our organisation. In our business model we have to take into
consideration a number of risks, dependencies and opportunities
in the whole value chain, from raw material to transportation of
our products to the customers. Increasingly important is to value
the risks and opportunities related to climate.
Since 2019, we have expanded our report by reporting CO
2
emissions not only
from our own mills, but also from our major suppliers of raw materials, energy and
transportation companies.
We describe the potential threats related to climate change, which represent an
opportunity for our company, as we can contribute to solving these problems by
offering products based on renewable sources that can replace products based on
fossil fuels.
Since 2020, the COVID-19 pandemic has become a major public health emer-
gency and has created a new kind of global risk factor for the business environment
around the world. We assessed and managed the risks as a possible serious threat
to our daily business operations, which may have a signicant impact on the nan-
cial condition of the Arctic Paper Group. Both currently and in the future.
2022 was an unprecedented year due to the outbreak of the war in Ukraine. Mili-
tary conicts have devastating effects, mainly from a social perspective. Such
events are unpredictable and affect larger groups of companies, societies and the
entire economy. The war in Ukraine forced the acceleration of development and
the transition to renewable, safe and stable energy sources.
At Arctic Paper, we pay attention to the development of the conict in Ukraine, also
due to possible disruptions in the supply chain that could affect the continuation of
production. We haven't noticed that kind of disruptions so far.
35
2. COMPANY SUSTAINABILITY2. COMPANY SUSTAINABILITY
Our principal risks are explained in the table below, together
with an overview of actions taken to mitigate them. More detailed
information with regards to specic mitigation plans can be found
in later sections of the report, categorised by theme.
RISK IMPLICATIONS MITIGATING ACTIONS TAKEN
Environment and climate
Not meeting national or EU-wide
legal requirements with regards to
environmental standards
∙ Fines from authorities
∙ Reputational damage
∙ Possible personal responsibility
∙ Disruptions in operations
∙ Careful monitoring of environ-
mental standards and indicators
∙ Early reaction system
to changes in regulation
∙ Introducing efciency-improving
technologies
Unintentional damage
to the environment
∙ Careful monitoring of environ-
mental standards and indicators
∙ Compliance with regulations
and procedures
The impact of climate change
on the physical conditions
of production
Disruptions in operations due to:
∙ Drought
∙ Flooding
∙ Landslide
∙ Malfunction in electrical
equipment
∙ Reputational damage
∙ Raw materials sourcing
∙ Energy sourcing
∙ Reducing water consumption
∙ Increasing water by-pass capacity
∙ Improving drainage
∙ Plans for supply allocation
∙ Increasing of cooling capacity
for sensitive electric equipment
∙ Allocation of raw materials
to core products and markets
∙ Reducing specic energy
consumption
∙ Investing in renewable
energy sources
People
Lack of competent employees
(e.g., due to competition or dif-
culties in nding new employees
to replace an ageing workforce)
∙ Disruptions in operations
(insufcient quantity or quality
of products)
∙ Financial loss – money
invested in training is lost
∙ Creating an attractive and ethical
workplace to attract and retain
employees
∙ Training and talent accquisition
Accidents at work ∙ Disruptions in operations
∙ Departure of qualied personnel
∙ Need for new investments at
production sites if the damage
is extensive
∙ Fines from authorities
∙ Health and safety training
performed on a regular basis
∙ Detailed analysis of all incidents –
from risk observation to injuries
∙ Improvement plans in place
for all our mills
∙ Dedication to a zero-injury
environment
36
SUSTAINABILITY REPORT 2023
RISK IMPLICATIONS MITIGATING ACTIONS TAKEN
People and Business operations
Limited visibility over suppliers
and their human rights practices
∙
Disruptions in operations
∙
Disruptions in value chain
∙
Reputational damage
∙
Financial loss
∙
Raw materials and energy
sourcing limitations
∙
Scrutiny over actions of suppliers
in the form of signed declarations
∙
Implementation Code
of conduct in the value chain
∙
Implementation of policies,
building awareness and routines
throughout the entire organi
-
sation in order to protect our
employees and operations
∙
Keeping and promoting high
health standards among
employees and contractors
Global pandemic (i.e., COVID-19)
Outbreak of war
Environment and Business Operations
Shortage of pulp on the market,
inability to buy certied pulp
∙
Disruptions in operations
∙
Financial loss
∙
Loss of customer credibility
∙
Careful monitoring of the market
∙
Building long-term relationships
with qualied suppliers
∙
Diversication of sources
of energy, seeking new
energy investments
Disruptions in the energy market
(e.g., lack of energy access or
poor fuel quality)
∙
Continuity plans developed
for mills
∙
Careful monitoring of world
affairs of the global business
environment
∙
Building long-term relationships
with qualied suppliers
Poor weather conditions
(e.g., ooding) (see also “climate”)
∙
Country-specic risks – linked
to the supply chain, production,
and distribution
∙
Risk due to climate change
∙
Disruptions in operations
∙
Financial loss
∙
Increased regulatory burden
∙
Reputational damage
∙
Raw materials sourcing
∙
Energy sourcing
37
2. COMPANY SUSTAINABILITY
At Arctic Paper we value our partnerships with
external partners and we see the positive impact
of such cooperations on our company and our
employees. We are eager to share our experience
and knowledge as a business partner, as well as
want to learn from and support our partners.
We cooperate with local communities and
organisations, as well as industry organisations.
2.5
ARCTIC PAPER’S
PARTNERSHIPS
38
SUSTAINABILITY REPORT 2023
SOME OF OUR PARTNERSHIPS
• The Munkedals mill has established
a very close and long-term (20-year)
cooperation with a high school focusing
on the technology of the production
process. The school is located on the
premises of our mill, so we can offer
students easy access to the work prac-
tice.The mill sponsors one teaching
post with extensive knowledge in paper
manufacturing. In return, the school is
one of the mill’s most important recruit-
ment sources. Each year, Arctic Paper
Munkedals also grants a scholarship to
the student with the best exam result.
• The paper mill in Kostrzyn cooperates
with vocational schools and supports
future printing students. School students
visit the factory and thus expand their
knowledge of paper production technol-
ogy for printing applications.
• Arctic Paper Grycksbo and Arctic Paper
Munkedals are members of the Swedish
Forest Industry Association (Skogsindus-
trierna), which acts as a forest industry
employer association working with
labour unions and other authorities. It
also acts as a technical institution with
a focus on supporting the industry by
sharing knowledge within such areas as
the environment, energy product safety,
standardisation and forestry manage-
ment; presenting this knowledge and
the industrial perspective to politicians
and authorities.
We actively participate in the work of
the association. In 2023, Arctic Paper
was represented in three committees:
energy, environment and products.
Arctic Paper has served as chairman of
the environmental committee for over
a decade.
• In Poland, Arctic Paper Kostrzyn is an
active member of The Association of
Polish Papermakers - an organisation
of scientic, technical and managerial
qualities with individual and corpo-
rate members, whose activities are
connected with the paper and paper
converting industries.
39
2. COMPANY SUSTAINABILITY
• Dalarna Science Park in Sweden –
a non-prot regional organization
supporting local enterprises and
innovations projects with the mission
to promote regional growth and
development.
• UTIPULP – Group of European Market
Pulp Users, a non-prot association
created in 1979. UTIPULP brings
together consumers of market pulp,
whose members are formally national
associations. In the case of Poland, it is
The Association of Polish Papermakers,
which freely shapes its representation in
the structures of UTIPULP. Arctic Paper,
as the initiator of this membership,
actively participates in the work of the
association through its representatives.
UTIPULP's task are: developing a
common position and represent the
interests of customers of market pulp,
standardization, certication of trade,
arbitration, ensuring the security of
the entire supply chain. UTIPULP also
gathers its members around oppor-
tunities to inuence the shape of EU
legislation and responds to challenges
related to the transformation of the
economy towards climate neutrality, an
environmentally sustainable develop-
ment model and economical manage-
ment of raw materials. Additionally, it
strengthens the negotiating position of
European partners and improves the
quality of pulp available on the market,
thanks to the dissemination of certica-
tion systems: FSC, PEFC, ISO, EUTR.
• Our paper mills are also members
of regional chambers of commerce,
which allows us to establish contacts
with professionals from other indus-
tries. Thus, both individual and entire
companies develop fruitful partnerships
through informal learning and exchange
of experiences.
• Arctic Paper supports local communities.
We sponsor activities for sport and
cultural events, including: uni-hokey
team, a football team, oorball team
and a table tennis team. We donate an
annual supply of free scrap paper to
schools, kindergartens and clinics in the
vicinity of the city of Kostrzyn nad Odrą.
40
SUSTAINABILITY REPORT 2023
2.6
KEY BUSINESS
PERFORMANCE
INDICATORS
Arctic Paper’s approach to corporate responsibility is centred on sustainability of op-
erations, in particular with regard to the mills. We have therefore established a set of
key business performance indicators, which are periodically measured and reported to
management. These indicators allow us to better understand our impact on the en-
vironment and our employees, as well as better understand our business operations.
Following this assessment, we can react accordingly.
Arctic Paper reviewes its main key business
performance indicators on a regular basis.
Below we present some examples of KPI we measure. More detailed KPI’s are shown in
the following chapters and historical data are included in tables at the end of the report.
During 2024, Arctic Paper will review and update all KPIs and set a new time perspec-
tive for the targets after nishing double materiality assessment process according to
the ESRS - European Sustainability Reporting Standards.
ENVIRONMENT
& CLIMATE
Energy consumption: Total net energy consumption
(MWh/tonne of paper)
We are committed to improving the energy efciency of our operations. Investments in
this area will have a positive effect on the environment, due to decreased emissions of
pollutants, and on our nancial performance.
41
2. COMPANY SUSTAINABILITY
2023 turned out to be a difcult year due to high volatility in energy prices
and availability. The graphic paper market was subject to equally strong uc-
tuations, with short order lead times and a large number of changes in the
types of paper produced, and consequently scattered production with many
starts and stops of paper machines, resulting in lower energy efciency and
higher specic energy consumption.
TOTAL NET ENERGY CONSUMPTION*
(MWh/tonnes of paper)
Target 2025 2023
1.9
2.5
OF WHICH FROM INTERNAL
ENERGY PRODUCTION BASED
ON RENEWABLE SOURCES**
(MWh/tonnes of paper)
Target 2025 2023
1.1
0.33
TONNES OF PAPER PRODUCED Target 2025 2023
695,000
423,817
*Energy sold to external partners not included. Target of 2025 and gures for 2016-2020 are recal-
culated by including purchased heat.
**Biomass and hydropower
42
SUSTAINABILITY REPORT 2023
SHARE OF PULP SUPPLIERS
WHO ARE FSC
®
AND/OR PEFC™ CERTIFIED
Target 2025 2023
100%
100%
ENVIRONMENT
& BUSINESS OPERATIONS
Value chain: % of pulp suppliers who are FSC
®
and/or PEFC™ certied
We are aware of the fact that the environmental integrity of our business relies in part
on our suppliers. As we source pulp for our production from a number of suppliers, we
expect them to share our values with respect to environmental sustainability. Our aim is
to be sourced by responsible and sustainable pulp suppliers who possess FSC
®
and/or
PEFC™ certications.
PEOPLE
Injuries per million work hours
We have a systematic approach to safety. We train our employees on an annual basis
and ensure that our management is well-equipped to handle safety emergencies. We
also have programmes for risk assessment. When problems are identied during the
production process, targeted continuous action plans are put into place. In addition,
we have trained rescue teams at all of our mills. We are committed to minimising the
number of injuries at our workplaces.
43
2. COMPANY SUSTAINABILITY
BUSINESS
OPERATIONS
Value of complaints as share of annual turnover
We want our customers to be satised with our approach to sustainability and our
products. All complaints are carefully categorised and evaluated by our sales team
and management. We aim to minimise the cost of claims, keeping in mind that not all
complaints may be substantiated.
LOST TIME INJURIES
PER MILLION WORK HOURS
Target 2025 2023
<4
9.2
VALUE OF COMPLAINTS
AS SHARE (%) OF SALES REVENUE
SALES REVENUE (IN PLN M) 2,460
Target 2025 2023
0.50
0.41
In 2023, the number of injuries unfortunately increased. We have imple-
mented safety procedures and expanded cooperation between production
units with common experience and knowledge and need to pay more atten-
tion to changing the work culture. Injuries occur mainly as a result of human
errors. Therefore, it is very important to change behavior and create a culture
of a safe workplace and build employee awareness of possible threats at
production positions.
44
SUSTAINABILITY REPORT 2023
SUSTAINABLE
SUPPLY CHAIN
FOR CLIENT
SATISFACTION
45
3. SUSTAINABLE SUPPLY CHAIN FOR CLIENT SATISFACTION
Our business operations are based on well-established and
trusted relationships with different stakeholders. Therefore,
we need to ensure that all our business operations are
transparent – from sustainable sourcing, production and
delivery of our products, to the communication of our results
to external stakeholders.
Arctic Paper cooperates with a wide network of suppliers from around the world.
They provide us with raw materials, chemicals, energy, logistics and other services
that enable us to serve our customers. Aside from the sustainability of our oper-
ations, it is crucial that we consider the approach taken by suppliers. We aim to
choose suppliers who can and are willing to assure that they respect our values
with regards to People and the Environment. Our suppliers have to follow the
Code of conduct in the value chain of Arctic Paper.
In addition, we want to be transparent and ethical in everything we do. We have
established and follow a Code of conduct and Sustainability policy. However, we
are aware of the need to raise awareness of these topics among our employees.
3.1
RESPONSIBLE
SUPPLY CHAIN
Arctic Paper is deeply integrated into the global value chain. We have over
200 suppliers of materials, 30 of whom cover more than 90 percent of the
purchased value and are considered core suppliers.
In our paper mills, we have procedures to help us produce paper with the
smallest possible direct impact in terms of pollutants to water, air and land
(waste). As the environment has no borders, the impact of our suppliers is of high
importance, hence we gather information regarding their environmental perfor-
mance so that we may make informed purchase decisions based on product
specications and environmental performance.
46
SUSTAINABILITY REPORT 2023
To ensure that our core suppliers take a responsible approach to their business,
they are required to provide us with the environmental declarations in a form
of specic written reports documenting their environmental performance with
regards to energy consumption, pollutants to air, water and raw materials – in
particular wood. Information from these reports helps us to perform a life-cycle
analysis for our products. We also ask the core suppliers for information as to
whether a code of conduct and a sustainability policy are in place. At the same
time, we expect them to take note of our Code of conduct and Sustainability
policy. We wish to follow a similar approach towards the rest of our suppliers.
Arctic Paper expects its suppliers to comply with the high
standards and values represented by our organisation.
Since 2019 we started a procedure by which all our suppliers
are required to comply with our Code of conduct either
by signing our Code or by the supplier providing us with
an equivalent document.
Our Code of conduct in the value chain of Arctic Paper covers the most important
areas: Laws and Regulations, Human and Labour Law, Corruption and Bribery, the
Environment. This document is attached to each contract and is expected to be
signed alongside the contract. Suppliers are also expected to follow the require-
ments set forth in this document. The Code of conduct applies to all Arctic Paper
suppliers as well as all third parties contracted by our suppliers.
Those suppliers who have their own Code of conduct or sustainability policy which
are compatible with the Arctic Paper values described in our Code of conduct in the
value chain, are asked to provide us with a copy of the appropriate documentation.
This is equivalent to signing the Arctic Paper Code of conduct.
47
3. SUSTAINABLE SUPPLY CHAIN FOR CLIENT SATISFACTION
3.2 ENVIRONMENTAL
ASSESSMENT OF SUPPLIERS
AND RESPONSIBLE SOURCING
Due to the nature of our business, we
devote special attention to our pulp
suppliers. We additionally expect them
to full the demands of the FSC
®
and
PEFC™ certication, and hence be
audited by a third party in relation to forest
management.
If we believe that our partner
does not comply with our
ethical requirements, we aim to
confront and challenge them to
change their behaviour, whereby
Arctic Paper may offer guidance
specifying which issues need
to be improved. The supplier is
then expected to take corrective
actions, within a reasonable
time, in order to meet the
requirements in question. In the
event that we are unsuccessful,
we are prepared to end the
cooperation.
We nd it important to verify the state-
ments of our pulp suppliers, which is why
products delivered by our suppliers are
subject to a three-step verication proce-
dure. First, we ask our suppliers to submit
an environmental declaration, safety data
sheets (following REACH EU Regulation)
and the technical parameters of their
products. Second, we test small samples
of the products in our laboratories, to
see if they possess the stated properties.
Third, we conduct mill trials to see how
the products behave in the production
environment. Similar procedures are used
for other suppliers. We also perform yearly
checks into the validity of certicates
possessed by our suppliers. In this way,
we are able to certify the quality of our
products. In this spirit, we also perform
audits of our suppliers, to conrm their
compliance with our Code of conduct in
the value chain of Arctic Paper Group.
48
SUSTAINABILITY REPORT 2023
SHARE OF CORE SUPPLIERS
PROVIDING EXISTING SIGNED
ENVIRONMENTAL DECLARATIONS
Target 2025 2023
100%
90%
SHARE OF CORE SUPPLIERS WHO
SIGNED OUR CODE OF CONDUCT
OR HAVE THEIR OWN CODE OF CONDUCT
Target 2025 2023
90%
90%
NUMBER OF SUPPLIERS WHO ARE SUBJECT
TO AUDITS PERFORMED BY ARCTIC PAPER
TO CONFIRM COMPLIANCE WITH THE
CODE OF CONDUCT
Target 2025 2023
2
10
49
3. SUSTAINABLE SUPPLY CHAIN FOR CLIENT SATISFACTION
Since 2019, in cooperation with the Book
Chain Project, we have been evaluating
Arctic Paper Kostrzyn’s processes for
responsible sourcing. The outcome of the
evaluation helps us to improve our shared
best practices and processes at the mill and
see the new opportunities and challenges
which we face when managing responsible
sourcing. We demonstrate a deep under-
standing for the sourcing countries of raw
materials and the sustainability issues at
forest level and have put strong, formal
processes in place to keep up to date with
new developments relating to forest chal-
lenges. We follow industry analysts from
Brian McClay, Hawkins Wright and Fast
Markets RISI. We also work with NEPCon,
who share information and suggestions on
sourcing countries. Each time we request
a written report on environmental perfor-
mance from our suppliers, and gather exten-
sive data on energy, air and water pollutants
and raw materials.
Arctic Paper Munkedals and Grycksbo are
also sharing their data with Book Chain
database.
Arctic Paper’s purchasing policy includes
requirements to establish bre traceability,
to ensure no product contains controversial
sources dened as:
• Illegally harvested forest, or harvesting
not approved by the authority in
question;
• Wood harvested in opposition to tradi-
tional or citizen’s rights;
• Wood from high conservation-value
forests;
• Wood harvested in areas being changed
from naturally occurring forest into
plantations;
• Wood harvested in an area where geneti-
cally modied trees have been planted;
• Wood harvested in violation of ILO prin-
ciples (International Labour Conference
1998 – ILO Declaration on Fundamental
Principles and Rights at Work)
We believe that the strength of our supply chain is based on
reliable, long-term relationships with our suppliers. We make
changes in our supplier portfolio to improve standards in all respects
– economic, ethical and environmental. If a correction is necessary,
we are open to re-establish relations with previous suppliers.
50
SUSTAINABILITY REPORT 2023
3.3
TRANSPORTATION
Effective and sustainable transport was one of the subjects
underlined by our stakeholders as a result of Arctic Paper’s
stakeholders survey. The impact of transport on pollution
and the overall condition of our environment is undeniable.
When deciding on which companies we can entrust with
transporting our products, we announce bids for particular
routes. Factors we take into consideration when deciding on
transportation services are the quality of the documentation
provided, the price offered and the impact a given transport
operator has on the environment.
Transport operations cause noise, emissions to air and consumption of fuels
(mainly fossil fuels). Truck engines are divided into various EURO classes, in which
higher gures represent engines with lower emissions, especially of nitrogen
oxides and carbon monoxide. We keep track of transportation statistics, which
cover the transport of ready goods from our mills to their places of destination.
We are focused on increasing the percentage shares of operations of EURO 5
and EURO 6 classes.
51
3. SUSTAINABLE SUPPLY CHAIN FOR CLIENT SATISFACTION
The large transportation companies that are our main suppliers of transportation
services are focused on high transportation efciency combined with an envi-
ronmental prole, thus they are continuously renewing their vehicle eets, which
moves the density point towards the higher EURO classes.
Understanding the huge environmental effect of transportation, we want to
increase the efciency of our transport chain while reducing CO
2
emissions by
implementing intermodal transport into our logistics process.
Since 2020, around 39% of deliveries to our customers have
been transported as multimodal transport. We intend to
develop intermodal transport share in the future, however
high energy prices, accuracy and issues of timely delivery of
intermodal scheme are still challenging.
SHARE OF EURO 5 ENGINE CLASS
Target 2025 2023
13%
30%
SHARE OF EURO 6 ENGINE CLASS
Target 2025 2023
87%
70%
OUR TARGET FOR THE FOLLOWING
YEARS IS TO EMPLOY ONLY TRUCKS
WITH ENGINE CLASS EURO 5 AND
ABOVE.
52
SUSTAINABILITY REPORT 2023
3.4
COMMITMENT TO
CLIENT SATISFACTION
Our customers are among the main stakeholders of Arctic Paper. Customer satis-
faction is one of the top material aspects of maintaining the integrity of our oper-
ations. We want to be sure that our customers are satised with the way we carry
out business and with the products and services we provide to them. We know that
our customers pay attention to our efforts to manage Arctic Paper as sustainable
business and their feedback is of high importance to us. This way we can grow and
evolve while meeting their expectations and needs. Our customers value high-
quality products and innovative attitude when providing new eco-friendly products
and solutions. For this reason, we carefully monitor all customer complaints and
listen to their opinions about our products and operations.
We categorise and evaluate all submitted complaints.
Evaluation is primarily done by our sales teams and, when
necessary, by management. We make sure that every
complaint is addressed and resolved. Our goal is to minimize
the value of complaints, but we realize that not all of them
are justied.
Actions are continuously taken to diminish the risk of complaints. Our tech-
nical teams from three mills work based on common procedures and General
Recommendations for handling and accepting complaints. We aim to create,
a predictable, consistent, time- and cost-efcient process.
VALUE OF COMPLAINTS
AS SHARE (%) OF SALES REVENUE
SALES REVENUE (IN PLN M) 2,460
Target 2025 2023
0.41
0.50
KEY PERFORMANCE INDICATOR
53
3. SUSTAINABLE SUPPLY CHAIN FOR CLIENT SATISFACTION
ENVIRONMENT
AND CLIMATE
54
SUSTAINABILITY REPORT 2023
4.1
MANAGEMENT
APPROACH
Arctic Paper has a long-standing commitment
to environmental and social sustainability.
We are proud of creating positive value by enabling and encour-
aging customers to use and recycle products made mainly using
renewable resources. At the same time, we try to minimize the
negative impact of our production activities and transport services
by applying pro-ecological practices at every stage of the paper
production cycle. In addition to complying with environmental laws
and regulations, we want to make sure that we work together with
our major stakeholders to understand the forces driving sustainability
within our industry. This, together with our internal follow-up work,
is the basis for the development and evaluation of our products,
processes and routines.
Combating climate change through products
and solutions based on renewable materials and
renewable energy, while replacing plastic and fossil
materials, is a natural part of Arctic Paper's strategy.
55
4. ENVIRONMENT AND CLIMATE
CERTIFICATIONS,
POLICIES AND
PROCEDURES
The ISO 14001 management system is in place
at all of our mills. It is a guide for us in the
eld of environmental responsibility and work
on continuous improvement of production
processes. All certicates are widely available on
our website.
In this report, we present the consolidated
environmental performance of our three mills.
Each of them publishes its own EMAS report,
where more information on individual environ-
mental performance is available. In addition,
more environmental data regarding our prod-
ucts can be found on our website, in the form
of product-specic environmental declarations
called “Paper Proles”. Importantly, each of
these documents describes the environmental
impact across the entire supply chain, as our
business operations are highly dependent on
our suppliers.
56
SUSTAINABILITY REPORT 2023
The overarching goal of our Sustainability
policy is to mitigate the adverse impact of
our mills’ processes on the environment.
We are committed to doing so both by
introducing new solutions and improve-
ments to the operations of our mills and by
educating our employees about ways to
protect the natural environment.
The environmental management system
at all three mills is guided by ISO 14001.
Arctic Paper is proud not only to have
introduced routines and procedures to
improve the environmental performance of
our mills, but also to have efciently inte-
grated these routines and procedures into
our daily operations.
Our mills are also EMAS-registered, which
means that they full additional require-
ments, over and above ISO 14001. Among
others, these include stricter rules on how
to measure and evaluate environmental
performance. The certication also means
that we need to present detailed informa-
tion on our environmental performance in
EMAS reports, available on our website.
Our mills in Grycksbo and
Munkedal have certied systems
for energy management
(ISO 50001). This means that the
energy management system at
the mills follows a systematic
approach aimed at continuously
improved energy efciency.
Arctic Paper does not have any
forest land, hence we do not have
a direct impact on forest manage-
ment and global deforestation.
We can have an indirect impact
through our pulp suppliers.
Our mills in Grycksbo, Kostrzyn, and
Munkedal holds a chain of custody
certicates for FSC
®
(Forest Steward-
ship Council
®
) and the corresponding for
PEFC™ (Programme for the Endorsement
of Forest Certication™). This means that
we can guarantee customers that our
products come from well managed, certi-
ed forests. Below we present the logos
and licence code numbers for our mill at
Munkedal.
We extensively train our employees on
PEFC™ and FSC
®
product origin control
systems. Our training is based on NEPCon
materials - a non-prot organisation that
supports better land management and
business practices that benet people,
nature and the climate. We assess specic
risks including unclear ownership structures
and risk of bribery.
57
4. ENVIRONMENT AND CLIMATE
Arctic Paper is aware of the environmental regulations affecting our industry, and
we carefully monitor the regulatory environment in Poland and Sweden, as well
as at the European Union level. Apart from legal requirements, we are also inter-
ested in best practices within our business, and carefully follow developments
in these areas. As an example, in the EMAS reports we benchmark our envi-
ronmental gures on emissions to water to the Best Available Techniques (BAT)
reference gures, prepared by the European Commission in collaboration with
industry experts. These lead us to conclude that our environmental performance
is aligned with the best practices within the industry.
Environmental activities related to the production process focus on four key
areas, selected during the materiality analysis. These are: energy consump-
tion, CO
2
emissions, water consumption and waste management. These issues
are described in detail later in this chapter. In our opinion, the targets we have
dened in terms of production volume clearly demonstrate our commitment to
progress in the area of environmental sustainability.
58
SUSTAINABILITY REPORT 2023
4.2 ENERGY
AND EMISSIONS
ENERGY
Climate change requires a
revision of the entire industry’s
social and economic attitude. As
a company which is committed
to environmental and social
sustainability, we are focused
on seeking new possibilities to
improve our business activities
and production processes by
implementing new energy
sources and increasing our
energy efciency.
The transition from fossil to non-fossil
energy sources is one of the major chal-
lenges facing our civilization. We are
taking measures to create this future.
Behind our power pillar stands the clear
vision to make this change possible.
Hydropower, solar panels and other forms
of green energy in combination with intel-
ligent waste/bio energy plants - all based
on renewable sources.
Arctic Paper purchases energy as fuel
(biomass and natural gas),electricity (from
the local power grid) and heat (steam) in
form of surplus heat from nearby industries
and as primary heat from an external waste
incineration plant. We also produce elec-
tricity at our mills using hydropower plants
(Arctic Paper Munkedals), back-pressure
steam turbines (Arctic Paper Grycksbo and
Arctic Paper Kostrzyn) and gas turbines
(Arctic Paper Kostrzyn), which we also
sell to the market when appropriate. The
most energy-intensive processes in paper
production are the generation of steam,
which is used in the drying of paper and
the operation of motors used in paper
machines, reners and pumps.
Energy efciency is one of the most
important aspects of the paper produc-
tion process, which is why we aim to
reduce energy use at every stage. We
run projects leading to an increase in the
share of energy from renewable sources.
Our activities in this area help us reduce
greenhouse gas emissions, decrease
demand for energy imports and reduce
production costs.
Each year we initiate various types of
energy efciency programmes at all three
of our mills with the aim of reducing their
environmental impact. We optimise and
trim all installations and machinery. As well
as continuously evaluate our processes to
identify future investments.
59
4. ENVIRONMENT AND CLIMATE
Good examples of our efforts to reduce
our environmental impact are two
vacuum systems projects in Grycksbo and
Munkedal:
• In Grycksbo, redeploying the vacuum
system enabled the factory to close one
of the vacuum pumps on paper machine
PM 10, saving approximately 1,000 MWh
per year.
• In the case of Munkedals, adjusting the
speed of three vacuum pumps resulted in
annual savings of 700 MWh, a reduction
of approximately 10% of the energy used
in the paper machine.
During the year, energy mapping of all
Munkedal operations was carried out and a
number of potential energy saving projects
were identied.
At the same time, the increase in the
variety of products offered and the gradual
increase in the share of packaging papers
with higher strength requirements resulted
in higher energy consumption.
An energy mapping of the total operation in
Munkedal has been done over the course of
the year and a number of potential energy
saving projects has been presented.
At the same time, the expansion of the
range of products offered and the gradual
increase in the share of packaging papers
with higher durability requirements resulted
in an increase in energy consumption.
One of the projects
completed in 2021 in
Kostrzyn was the launch
of a solar panel farm with
a capacity up to 1 MWp,
which increased the share
of renewable energy in
the mill's total energy
consumption. In Grycksbo, a
number of energy projects
completed in recent years
altogether contribute an
energy saving comparable
with the energy consumption
of 480 regular households in
the Nordic region. Another
important project was the
replacement of old reners
with modern energy-
efcient machines. Also in
Munkedals, a smaller solar
panel installation with an
installed power of 0.1 MW
was launched during 2022.
60
SUSTAINABILITY REPORT 2023
KEY PERFORMANCE INDICATOR TARGET 2025 2023
Total net specic energy consumption (MWh/tonne paper) 1.9 2.5
Total net energy consumption (GWh/year) 1,320 1,079
Total production of paper (in tonnes) 695,000 423,817
Below can be found the latest gures on our energy consumption, one of our key
performance indicators regarding environmental sustainability. The specic energy
consumption reported in the table below is expanded compared to the previous
reporting year (also by historical data) by including purchased heat.
61
4. ENVIRONMENT AND CLIMATE
CASE STUDY
New energy solution for Arctic Paper Grycksbo mill
In 2023, Arctic Paper decided to start investing in the construction of an installa-
tion for drying biomass and producing pellets. Currently, the factory in Grycksbo
can use wood pellets, grid electricity or pitch oil to generate steam necessary
for the paper production process. However, the market for these energy sources
is increasingly volatile, both in terms of price and availability. We believe that
this problem should be solved by focusing on the creation of renewable energy
sources, therefore a natural step is to decide to invest in expanding the range of
energy sources to include biofuels with high moisture content.
The investment will ensure more sustainable fuel acquisition and will reduce
energy costs of approximately SEK 50 million per year. In addition to electricity
and steam, the installation will produce approximately 50,000 tons of wood
pellets annually.
The main raw materials for the production of wood pellets will be sawdust and
wood chips. The raw material will be obtained in Sweden and transported to
Grycksbo.
The total estimated cost of the investment will be approximately EUR 28.5 million,
and its completion is planned for the rst half of 2025.
62
SUSTAINABILITY REPORT 2023
EMISSIONS
Carbon neutrality of business operations is
one of the main determinants of a sustain-
able approach by industries.
Pollutants created during the energy
production process leave our mills through
chimneys as air pollutants, and biomass
ash. Air pollutants, in particular CO
2
, accu-
mulate in the atmosphere, contributing to
climate change. Emission levels are moni-
tored by our management. Emissions carry
an environmental cost, and they can also
be associated with considerable nan-
cial, legal and commercial costs for our
business.
By denition - carbon neutral
means “if something such as an
organisation or activity is carbon
neutral, it removes the same
amount of carbon dioxide from
the environment as it releases
into the environment”.
1
We have been committed to reducing
CO
2
emissions for many years. One of
our most important activities in this area
was undertaken in paper mill in Kostrzyn
in 2007. It consisted in replacing a coal-
red boiler with a state-of-the-art natural
gas boiler, equipped with gas turbines
and back-pressure steam turbines. In
2008, Grycksbo also made a signicant
investment in a biomass boiler, making
the steam generation process at the mill
fossil-free. Our 4P Strategy is a signpost
for us, which will help us achieve the goal
of carbon neutrality and increase the
diversication of energy sources based on
renewable sources, such as solar collec-
tors, hydroelectric power plants and wind
turbines.
One of the most recent projects in this
area implemented at the Kostrzyn mill is
modernisation of the PM1 recuperation
system with an effective reduction of
heat consumption and CO
2
emissions by
2,784 tonnes per year. The upgrade of the
venting system at PM1 and PM2, which
allows heat recovery, has resulted in a
reduction of heat consumption and CO
2
emissions by 1,575 tonnes per year and
by 3,725 tonnes per year, respectively.
We also encourage our employees
to contribute to the common goal of
achieving carbon neutrality. We believe
that every small effort or single change
to daily routine can reduce our carbon
footprint, which will have a signicant
impact on the climate. One such action
is the installation of charging stations
for employees' electric cars at the paper
mills in Grycksbo and Munkedal. The
employees at the Grycksbo mill utilising
bio energy for domestic heating can also
benet from a rebate agreement with a
local supplier.
1
Cambridge Business English Dictionary © Cambridge University Press)
63
4. ENVIRONMENT AND CLIMATE
1
Figures describing the average CO
2
load for the national grid in Poland and Sweden.
2
Covering >90% of the purchased raw materials (calculated as purchase value).
3
Figure based on average delivery points in Europe.
KEY PERFORMANCE INDICATOR (KG CO
2
/TONNE PAPER) TARGET 2025 2023
Direct CO
2
emissions 215 236
Indirect specic CO
2
emissions from external electricity suppliers
1
– 44
Indirect specic CO
2
emissions from our major supplier of raw material
2
60 88
Indirect specic CO
2
emissions from our transporters
3
35 34
Total indirect specic CO
2
emissions 115 166
Total specic CO
2
emissions – 402
Total CO
2
emissions (k tonnes / year) – 171
Total production of paper (in tonnes) 695,000 423,817
Below we present our greenhouse gas emissions levels based on Greenhouse Gas
Protocol (GHG Protocol) accounting and reporting standards to measure, quantify
and manage greenhouse gas emissions.
The GHG Protocol Corporate Standard classies a company’s
GHG emissions into three ‘scopes’.
Scope 1:
Direct emissions from sources owned or controlled by the company.
Scope 2:
Indirect emissions from the generation of purchased energy consumed by the
company.
Scope 3:
All other indirect emissions (not included in scope 2). Includes emissions that occur in
the value chain of the reporting company, including both upstream and downstream
emissions, which occur from sources not owned or controlled by the company. We have
divided this group into two sections, relative to the most relevant participants in our
supply chain: suppliers of raw materials (including pulp, llers, coating pigment, totally
covering >90% of purchased raw material value) and transportation companies.
64
SUSTAINABILITY REPORT 2023
Compared to 2022, the steam supply for the Munkedals mill
in 2023 was covered to a greater extent by imported heat
from waste combustion, replacing steam from the electric
boiler. The waste burned consists of approximately 45% fossil
materials. This explains the increase in indirect CO
2
emissions.
The below table presents CO
2
contribution from energy sold (heat and electricity)
to external consumers.
2023
Exported energy (GWh/year) 129
Tonne CO
2
per GWh 227
Tonne CO
2
per year 29,230
It should be noted that the CO
2
gures from our external sources are based on
the most recently available data. In most cases, we used data from 2022 as not
all of our external partners were able to provide us with 2023 data at the date of
publication of this report.
4.3
SUSTAINABLE CIRCULAR
PRODUCTION AND WASTE
Arctic Paper is a part of industry that largely uses wood from sustainably
managed forests. We are proud of being part of a sustainable circular production
system. This means that resources are used, reused and recycled with little or no
waste. In our case, the circular system starts with the raw material wood.
65
4. ENVIRONMENT AND CLIMATE
1. RAW MATERIAL
Arctic Paper only buys pulp based on
raw material from sustainably managed
forests. This is ensured by the FSC and
PFSC certications. Pulpwood is a renew-
able raw material that comes from thin-
ning and felling, and consists of wooden
parts that can't be used as timber.
2. PULP MILL
Artic Paper purchases pulp from various
suppliers and owns 51% of the Swedish
pulp manufacturer Rottneros AB, with
two ISO 14001 certified mills. Rottneros
has its own sustainability report at
www.rottneros.com
3. PAPER MILL
Three Arctic Paper mills are ISO 14000
and EMAS certied. To minimize CO
2
emissions, Arctic Paper invests in
1. RAW MATERIAL 2. PULP MILL 3. PAPER MILL
6. BIOMASS FUEL 5. PAPER RECYCLING 4. CONSUMER
The base in the circular system is the ever growing forest
and the renewable raw material that is fetched therefrom.
sustainable energy. Grycksbo paper
mill has an energy solution completely
free of fossil fuels. The paper mill in
Munkedal commissioned a biomass boiler
and expanded the hydropower plant,
increasing its capacity from 12 to 24 GWh.
4. CONSUMER
Arctic Paper is a premium manufacturer
of graphic paper and kraft paper. For
customers, renewable, circular and recy-
clable raw material, as well as sustainable
production, are important factors in the
choice of supplier.
5. PAPER RECYCLING
All Arctic Paper’s paperboards are recy-
clable and part of a circular system. A large
part of all packaging as well as graphic
paper is recycled and reused, for example,
for the production of newsprint and tissue.
66
SUSTAINABILITY REPORT 2023
6. BIOMASS FUEL
The by-products from the pulp and
paper mill, such as logging resi-
dues, tall oil, pitch oil and bark are
further rene into biomass fuel.
The combustion of biomass fuel emits
carbon dioxide, which is balanced by
reabsorption from the air by forests
as a step in the photosynthesis cycle.
Fuel derived from waste (waste to
energy) consist of both biogenic
(typical 60%) and fossil (typical 40%)
material. By utilising waste as an
energy source, which otherwise
would have ended up at a landll, we
contribute to circular economy with
a minimum of losses.
Most of the waste emanating from
our plants is sorted and sent to
external recycling. Comparably
smaller volumes of waste are used
for energy recovery or are sent to
landlls, and even smaller volumes
of hazardous waste are sent
for controlled destruction by third
party contractors.
All our mills use certied
handlers of waste. The
volumes of different kinds
of waste are appropriately
reported to the handlers
and the authorities. We
closely monitor these values
to ensure we maintain our
waste management balance
year-on-year and constantly
improve waste recycling
efciency.
Waste volume may vary from one year to another as the volume and kind of generated
waste to some extent is dependent on (re)construction and/or scrapping projects.
WASTE
KEY PERFORMANCE INDICATOR TARGET 2025 2023
Recycling or energy extraction (tonne/year) 6,950 5,191
Recycling or energy extraction (kg/tonne of paper) 10 12.2
Hazardous waste (tonne/year) 139 164.5
Hazardous waste (kg/tonne of paper) 0.2 0.39
Landll (tonne/year) 139 200.9
Landll (kg/tonne of paper) 0.2 0.47
Total production of paper (tonnes) 695,000 423,817
67
4. ENVIRONMENT AND CLIMATE
4.4
WATER
Water is an indispensable resource in the paper production process. It is used to
slush the pulp into bre stock, and then to transport bres to the paper machine
headbox. Since the stock is dewatered once it is placed in the paper machine,
most of the water can be reutilised in the mill. Water that is not recirculated is
puried on-site, before being released back to the rivers from which it came –
Warta, Munkedalsälven and Grycken. Internal efuent treatment plants conduct
mechanical, biological and chemical treatments. At the same time, the separated
deposit from the efuent treatment is mixed and dewatered, and then recycled
as soil improver or raw material for coverage of historically polluted areas such as
old deposits.
We carefully monitor the quality of our water outputs; most notably, we focus
on Chemical Oxygen Demand (COD). COD indicates the effect the discharged
water will have on the receiving environment; in our case the three rivers: Warta,
Munkedalsälven and Grycken. It measures organic compounds that consume
oxygen during decomposition, since very high levels of oxidisable organic mate-
rial may be detrimental to aquatic life forms. As good practise, we also monitor
the quality of our water inputs, exceeding the requirements set by regulators.
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SUSTAINABILITY REPORT 2023
We have implemented a programme to reduce our emissions
to water at our mill in Munkedal. Part of the programme was
the installation of a separate water purication system for the
power supply station in order to improve our opportunities for
water recycling.
Our mill in Grycksbo has participated in a project organised by the Swedish
Forest Industries Federation regarding the environmental impact of old sedi-
ments. The main objective of this project was to improve the current monitoring
programmes in order to be able to evaluate the impact and ecological signif-
icance of sludge emissions. In order to assess the degree of environmental
impact, a selected group of sh, perch, was tested. Using sh for environmental
impact studies is a method that has been used for decades by the Swedish
environmental monitoring system. One of the goals of the project was to
also collect historical data and compare it with current data. In addition, the
harvested sh were used to assess their health and reproductive capacity, and
to develop a standardised procedure that could be included as part of future
environmental monitoring programmes.
Paper production requires a lot of water. Most of this resource is recycled
multiple times at mills installations. Typically the dry content in the head box of
the paper machine is around 1%, meaning that for the production of 1 tonne
of paper, 99 m
3
of water passes the head box. We care about water efciency
at our mills. Each drop of water is recirculated an average of 27 times before it
leaves the mill through the wastewater treatment plant.
KEY PERFORMANCE INDICATOR TARGET 2025 2023
Water consumption (m
3
/year) 4,865,000 4,568,670
Specic water consumption (m
3
/tonne of paper) 7.0 10.8
Emissions of COD to water (tonne per year) 292 198
Specic emissions of COD to water (kg/tonne paper) 0.42 0.47
Total production of paper (in tonnes) 695,000 423,817
Specic water consumption in 2023 slightly increased as compared to 2022. This
is due to the difcult market situation with much lower demand than the produc-
tion capacity of our mills, which resulted in more starts and stops of production
machines due to lack of orders, and consequently lower efciency of water
consumption.
69
4. ENVIRONMENT AND CLIMATE
4.5
BIODIVERSITY
FISH HABITAT IN MUNKEDAL
In 2021, Munkedals mill launched a project for sh habitat restoration. The
project focuses on restoring the river to its original state prior to its adaption for
oating timber, by placing large stones back, thereby recreating breading areas
for salmon and trout.
Every summer we have now continued this works (it can only be done when the
ow in the river is at low level) and we can now, through test shing, see that
the project has contributed to the increase in the sh population.
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SUSTAINABILITY REPORT 2023
FLOWER MEADOW IN MUNKEDAL
Our new project aims to increase the biodiversity of plants
and insects.
On Swedish pastures, there can be as many as 50 different species of plants in
one square meter. Over 1,300 species on the The Red List endangered species
can be found naturally in the grasslands. When biodiversity is threatened, it also
has consequences for us humans. Several endangered species are the so-called
pollinators, and we humans are completely dependent on them, including for
food production.
The planned ower meadow is a pilot project with an area of 160 m
2
. We will
plant various varieties of wild owers and plants there.
We have carried out preparatory work so that the owers got well adjusted to
the soil. Once the ower meadow grows and owers bloom, it will be populated
by wild and domesticated bees, which play a major role in pollinating plants and
fruit trees near the test area. The ower meadow is located on the Munkedals mill
site, adjacent to our aerated lagoon (part of our hydroelectric plant), where we
have introduced many plants and wildlife (birds, insects, frogs).
71
4. ENVIRONMENT AND CLIMATE
Viewpoint in The Warta
Mouth National Park
Arctic Paper Kostrzyn has co-nanced
building a viewpoint in The Warta
Mouth National Park. The Warta
Mouth National Park was established
in 2001 and occupies the area of 8,074
hectares protecting unique in Europe
wetland areas located in the lower
valley of Warta River. The Warta Mouth
National Park was established to
protect exceptional ood-land habi-
tats vital for water and marsh birds. In
the Park, about 280 bird species have
been recorded, including 170 breeding
species. The park’s signicance for
maintaining the environment of so
many bird species has been conrmed
by it being included in the Ramsar
convention and Natura 2000 network.
72
SUSTAINABILITY REPORT 2023
PEOPLE
73
4. ENVIRONMENT AND CLIMATE
5.1
WORKING AT ARCTIC PAPER –
MANAGEMENT APPROACH
EMPLOYMENT STRUCTURE
OF ARCTIC PAPER IN 2023
TOTAL MEN WOMEN AGE<30 AGE 30-50 AGE>50
Blue-collar 799 665 134 159 327 313
White-collar 424 250 174 23 204 197
Arctic Paper takes responsibility for our employees, other
people working for us and the societies in which we operate.
Our employees are one of the most important stakeholders
in Arctic Paper.
We consider employees as our most valuable resource. We believe each one
should be treated with respect. This is also declared in our Sustainability policy
and in our Code of conduct in the value chain. We strive to make our units safe
workplaces, where employees have equal opportunities for development. We are
aware of the fact that continuous dialogue with our employees is benecial for
both sides: for employees – by giving them an opportunity to express their needs
and concerns, and for us – to understand what is important to them, and thus
what should be important to all of us. We believe in observing our social respon-
sibilities and being a partner in the development of the society in which we are
located. By doing this we create an environment which is attractive to live and
work in.
74
SUSTAINABILITY REPORT 2023
2023
Number of permanent unlimited contracts 1,223
Number of temporary contracts 28
EMPLOYEE TURNOVER RATE
KEY PERFORMANCE INDICATOR TARGET 2025 2023
Turnover <10%/year 6.6
New Hires – 81
Resigned – 60
Retired – 26
Denition how we calculate this KPI
Annual employee
turnover rate %
Number of employees (with permanent contracts)
who left the company during the year
(Employees at the beginning
+ at the end of the year)/12
× 100
Arctic Paper’s intention is to offer employees standard, permanent, unlimited
employment agreements in our operations for the purpose of providing employ-
ment security and stable work conditions. Only substitutes for vacancies and
project-hired persons have limited employment agreements.
=
75
5. PEOPLE
5.2 OUR EMPLOYEES'
WELL-BEING AND
SATISFACTION
The well-being of our employees is of crucial importance
to our company. Well-being is strongly associated with
engagement. Working conditions and employee satisfaction
are the top material topics emphasised by our employees in
our Materiality Matrix research.
Surveys carried out among our employees show that the opinion on well-being
has changed due to the recent pandemic situation. In order to meet the needs
of our employees, we have to redesign our future attitude to well-being.
We want to be more responsive by widening the range of well-being activities
and preventative by redesigning work and people processes and the work
environment. We need put more effort into understanding of well-being needs,
and encouraging employees to seek new activities that can be safer and more
valuable in the new work environment.
We promote an empathetic management attitude and want to provide exibile
work conditions whenever it’s possible, something that can help to improve the
working conditions.
We are committed to
• Identify underlying drivers of poor employee wellness and redesigning of work
and people processes in order to prevent future problems.
• Offer a exible work environment – not just exibility as to when and where
individuals get to work, but exibility in all aspects, helping employees feel
autonomy in making decisions about what works best for them.
• Train and provide our managers with clear guidance on what to do, and
more importantly, what not to do, in order to effectively support employees’
emotional health.
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SUSTAINABILITY REPORT 2023
BENEFITS AND INITIATIVES
INFLUENCING OUR EMPLOYEES',
AND THEIR FAMILIES', WELL-BEING
Our mills support employees and their
families by granting them extended social
benets programmes. We encourage
good habits and healthy lifestyles. We
organise and support different health
programmes, such as non-smoking and
eating healthy food. We also provide
regular medical examinations for our
employees. We offer wellness allowances
that employees can choose how to use
according to their needs and interests.
We sponsor events and different activi-
ties in the local community, in which our
employees and their families are able to
participate.
We sponsor events and different
activities in the local community,
in which our employees and
their families are able to
participate.
OUR ACTIONS
• Maintaining tness centre for employees
at Grycksbo mill.
• Supporting local sport clubs and cultural
events such as a donation for the devel-
opment and promotion of wrestling
association in Kostrzyn, or the Grycksbo
mill sponsoring IBF Falun – a champion-
ship oor-ball club and ice hockey club
in Sweden;
• Organising sports competitions for
employees e.g. shing competitions;
• Donating paper to schools and
kindergartens;
• Sponsoring health benet programmes
and insurance for employees at mills;
• Funding Christmas vouchers and organ-
ising Christmas celebrations with gifts for
mill employees’ children;
• Offering discounts for vacations in
summer cottages in Sweden;
• Supporting our retired employees’ organ-
isation by co-nancing summer camp and
organising regular events.
The foundation of every
organization are its employees,
they determine its structure,
operation and, above all, its
successes. Even the most
modern machine park or the
development of technology
cannot replace the work
performed by a human being.
77
5. PEOPLE
OUR EMPLOYEES' SATISFACTION
Since 2016, every other year we have measured our employees' satisfaction and
set our targets using benchmarks from similar industries in Europe. Over the years
we have implemented activities to increase both the number of participants and
the engagement capital.
In 2023 a survery was conducted with a new partner and therefore recent results
are not comparable with previous years’ results.
67% of employees participated in the survey, which is above the industry bench-
mark of 65%.
Commitment capital was rated 3.9 on a scale from 1 to 5.
We started to measure the employee net promoter score (eNPS).
The employee net promoter score is a metric used to measure employee
engagement and loyalty towards a business. The eNPS is directly correlated to
the short-medium term intentions of an employee. It is a score that is often meas-
ured as part of a wider study looking at employee satisfaction.
The best way to measure your employee NPS is through eNPS surveys with the
question “How likely are you to recommend us as a place to work for your family
and friends?”
Employee net promoter score can range from -100 to 100,
in order to determine the group of ambassadors in our
organization and the loyalty of our employees.
Based on the results, three categories of employees are distinguished (from the
lowest to the highest):
• Promoters − employees who are extremely committed to their organization
and enthusiastically share positive opinions about their workplace. People
who commits to their work and enjoy their role. Promoters actively support the
company by providing positive recommendations.
• Neutral − a group of employed people who do not demonstrate a high degree
of commitment to work and loyalty to the employer. It is assumed that they are
generally satised with their work, but they are distinguished by a low tendency
to express either positive or negative opinions about their employer among
friends and family. People who are passive towards the employer's brand also
have a high risk of changing it if such an opportunity arises.
78
SUSTAINABILITY REPORT 2023
KEY PERFORMANCE INDICATOR TARGET 2025 2023
Employee survey response rate 65% 67%
Overall engagement capital >4 3,9
• Critics − a group of employees who are characterized by a low level of satis-
faction and commitment to work. Not only will critics not recommend the
company, but they may also negatively inuence its development by spreading
unfavorable opinions.
The Arctic Paper's employee loyalty score is 14. A score in the range of 0-20 is
considered a good score because it indicates that the majority of employees in
our organization are promoters and have a positive opinion of the company.
The next survey of the level of loyalty of Arctic Paper employees will be
conducted in 2025.
RECRUITMENT AND TALENT
ACQUISITION
At Arctic Paper we know that employees are our organisation’s most valuable asset.
Our goal is to recruit, develop and educate our employees, so they can support
the organisation with their talents and personal skills, and thus ensure the effec-
tive management of Arctic Paper today and in the future.
Our key principles
• We treat internal and external applicants with the same professionalism and
respect for the individual.
• Our recruitment processes are open and clear in communication with the
applicants, as well as fair and uniform throughout the company.
• We promote and offer equal opportunities for applicants for same positions.
• We focus on competences and value personal interests and ambitions.
• We create opportunities of promotion for current employees while recruiting
for a new position
79
5. PEOPLE
KEY PERFORMANCE INDICATOR TARGET 2025 2023
Percentage of employees interviewed 100% 76%
Development and training of our employees
• We believe in equality of opportunity when it comes to development. Mill-level
procedures are in place to guide our recruitment and remuneration processes;
• We remunerate employees according to their qualications and the value they
create for the company. Adjustment to local conditions necessitates the use
of slightly different systems between our mills. Our employees’ remuneration
depends on their results at work, the agreement between the trade unions and the
company’s economic situation. All conditions are documented and communicated
accordingly. We also have a separate remuneration policy for management at the
group level. We annually make regular payroll overviews at all our units;
• We provide the possibilities for employee development in accordance with the
company's needs and the development of the company's environment;
• We create interpersonal relationships in the company in accordance with our
company’s principles;
• We create a exible organisation with minimal hierarchy;
• We inform employees correctly and promptly about important company matters;
• We pay attention to work-life balance;
• We mainly focus on development connected to improving the H&S work environ-
ment, which means a focus on legal certicates and training in those positions. A
crucial part of this strategy is the on-boarding process to make sure that employees
can perform their tasks safely.
Performance conversations
We intend that every employee should have a yearly performance conversation. This
will help them understand how they can contribute towards the company goals and
to develop their skills and abilities. We believe that this will create a synergy effect
which will positively impact the work environment and bring tangible benets to our
business.
80
SUSTAINABILITY REPORT 2023
5.3 HUMAN RIGHTS
Arctic Paper Group respects and promotes international
human and labour rights. We expect the same commitment
from our suppliers and subcontractors, to which we refer in the
Code of conduct in the value chain of Arctic Paper Group.
• We do not accept discrimination or harassment of any kind directed at any
group of our stakeholders: employees, customers, suppliers.
• Our employees have the right to organise themselves, join associations and to
negotiate with the company.
• We do not accept forced or child labour, neither in our mills nor on the part of
our suppliers.
• We always comply with local laws related to human rights.
• We offer our employees decent working conditions and care about their
wellbeing.
• We expect our suppliers to respect their workers’ right to form or join associa-
tions; refrain from any form of discrimination toward employees or their contrac-
tors and to provide a safe and healthy work environment.
We have put measures in place to report situations where human rights are
violated in any way because of Arctic Paper Group operations. In 2020, we
implemented a whistleblower system, which enables our employees and busi-
ness partners to report situations or behaviours which are not in line with Arctic
Paper Group values and ethical principles, and can seriously affect our organisa-
tion or a person's life or health. In 2023, no incidents were reported.
81
5. PEOPLE
Overall, we are committed to protecting the human rights
among our employees. At the same time, we know that this
issue also involves external actors in our value chain.
This aspect is further explained in the “Responsible
supply chain” chapter.
OUR ANNUAL BUDGETS FOR
SPONSORSHIPS AND CHARITY
ACTIVITIES IN 2023:
AP Grycksbo
SEK 200,000
AP Kostrzyn
PLN 309,000
AP Munkedals
SEK 1.3 million (including sponsorship to the school, without school support
abt. SEK 300,000)
82
SUSTAINABILITY REPORT 2023
Health and safety are top
priority issues for us. We are
creating a work environment
which prevents and minimises
the risk of injuries. The systemic
approach to safety in our
paper mills minimizes the
risk of accidents. In 2019, we
implemented a common health
and safety policy and started
cooperation between the mills
in H&S issues. Each mill has
also implemented its own site-
specic health and safety policy,
complemented by appropriate
routines and procedures.
Our mills have an occupational health
service, as well as rescue teams trained
to react in case of emergency. Some of
our employees are also members of the
local re brigade, trained to respond to
both internal and external incidents and
accidents.
We carefully analyse all health and safety
incidents raised by our employees and take
actions to avoid serious consequences in
the future.
NUMBER OF LOST TIME INJURIES (LTIR)
PER MILLION WORKING HOURS
Target 2025 2023
9.2
<4
KEY PERFORMANCE INDICATOR
• We maintain a register of “near
misses” and accidents, where all
incidents are recorded, investigated
and analysed.
• We propose action plans to miti-
gate the risk that a near-miss could
become a serious accident.
Today, very few accidents are caused
by equipment malfunctions.
A signicant risk factor is human
errors, hence the focus within work
safety is becoming more and more
oriented towards creating a safety
culture based on the basic idea of
“think rst, then do”.
Risk assessment before any new
machinery is put into operation or
working method implemented is the
most important tool for increased
safety. Our target in this area is to
create a zero-injury environment.
We are very concerned about the
number of injuries, and thus we will
increase our focus on behavioural
safety and on preventive activities in
order to further develop our safety
culture.
5.4 HEALTH AND SAFETY
83
5. PEOPLE
5.5 DIVERSITY, EQUITY
AND INCLUSION
GENDER EMPLOYMENT STRUCTURE
IN ARCTIC PAPER IN 2023
Men Woman
25%
75%
Management approach
and initiatives
Arctic Paper Group promotes a culture of
openness, and we see diversity as a strength
that helps the organisation grow. It is a
source of new ideas and innovation. The
key principle for us is respect for diversity.
There is no place in organization for discrim-
ination against anyone because of gender,
origin, age, religion, political or religious
views, disability or other factors. Each of our
employees has the chance to develop within
the organization and we try to offer them as
many opportunities as possible to use their
talents and skills.
In 2021, we implemented a
Diversity policy that is applicable
to all employees of Arctic Paper,
regardless of the position they
hold.
As a company we commit that:
• when looking for new employees and
conducting the hiring process, we
focus on the candidate's skills and
accomplishments;
• we pay employees according to their
position, assessment, qualications,
experience and performance, regardless
of diversity factors;
• that each of our employees is entitled to
respect and equal treatment is the basis
for organisational performance;
• we enable our employees to report
(anonymously or not) any complaints
about possible mobbing or unequal
treatment;
• we will train managers on how to manage
a diverse team and make the most of its
potential.
• we provide a work environment suitable
for both men and women to work in.
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SUSTAINABILITY REPORT 2023
DIVERSITY AMONG EMPLOYEES
AND WITHIN THE BOARD
As explained in our Code of conduct, Sustainability policy
and Diversity policy, we do not accept any discrimination in
our business operations. Arctic Paper Management Board
has been striving to employ competent, creative people,
holding appropriate qualications, professional experience
and education, and who respond to the company’s needs.
Arctic Paper sees diversity as a strength and a source of new ideas and innova-
tion. We want Arctic Paper to mirror the societies in which it operates, and we
want to make sure we promote and integrate people of diverse backgrounds.
Arctic Paper Management Board is made up of a Chief Executive Ofcer, Chief
Financial Ofcer and President of Sales & Marketing.
Candidates are evaluated in accordance with the principles of independence,
merit and diversity criteria. We strive to ensure that the persons selected are
of diverse educational background, experience, knowledge and skills, diverse
gender and age.
The functions of members of the Management Board and the Supervisory
Board have been entrusted to specic persons, regardless of their gender, but
according to the substantive preparation and experience of these persons. The
composition of the Company's corporate bodies largely depends on the deci-
sions of the Company's shareholders.
2023
Total count of Management Board 3
% of women on the Management Board 33.3
% of men on the Management Board 66.6
THE SUPERVISORY BOARD OF ARCTIC PAPER SA
CONSISTS OF FIVE MEMBERS
2023
Total count of Supervisory Board 5
% of women on the Supervisory Board 40
% of men on the Supervisory Board 60
85
5. PEOPLE
TAXONOMY
86
SUSTAINABILITY REPORT 2023
The EU Taxonomy is a
classication system,
establishing a list of
environmentally sustainable
economic activities. It plays
an important role and helps
to scale up sustainable
investment and implement
the European Green Deal.
The EU Taxonomy provides
companies, investors
and policymakers with
appropriate denitions
for which economic
activities can be considered
environmentally sustainable.
In this way, it creates
security for investors,
protect private investors and
helps companies become
more climate-friendly.
The Taxonomy Regulation of the European
Parliament and of the Council (2020/852) was
published in the Ofcial Journal of the European
Union on June 22. 2020, and entered into force
on July 12. 2020.
It establishes the basis for the EU Taxonomy
by setting out 4 overarching conditions that an
economic activity has to meet in order to qualify
as environmentally sustainable. An economic
activity shall qualify as environmentally sustain-
able where that economic activity:
• contributes substantially to one or more of the
environmental objectives;
• does not signicantly harm any of the environ-
mental objectives;
• is carried out in compliance with the minimum
safeguards;
• complies with technical screening criteria that
have been established by the Commission.
The Taxonomy Regulation establishes six
environmental objectives:
1. Climate change mitigation;
2. Climate change adaptation;
3. The sustainable use and protection of water and marine resources;
4. The transition to a circular economy;
5. Pollution prevention and control;
6. The protection and restoration of biodiversity and ecosystems.
87
6. TAXONOMY
According to the Regulation on Taxonomy, Arctic Paper
Group discloses in its annual report:
• Percentage of turnover derived from related products or services associated
with environmentally sustainable economic activities.
• Percentage of capital expenditures (CapEx) corresponding to assets or
processes associated with environmentally sustainable economic activities.
• Percentage of operating expenses (OpEx) corresponding to assets or processes
associated with environmentally sustainable economic activities.
In this 2023 Sustainability Report, Arctic Paper Group discloses the percentage
of turnover, capital expenditure and operating expenditure eligible for the EU
Taxonomy as well as veries criteria for environmentally sustainable economic
activities specied in article 3 of Regulation of the European Parliament and
Council 2020/852, to determine what percentage of these three values is associ-
ated with environmentally sustainable activities.
88
SUSTAINABILITY REPORT 2023
6.1
TAXONOMY COMPLIANCE
ASSESSMENT PROCESS
We have divided the assessment process in 4 stages:
The process was conducted by a team of representatives companies
of Arctic Paper Group.
IDENTIFICATION
a review of all activities carried out by all units of Arctic Paper Group and
determination whether and, if so, which activities qualify as eligible activities.
The review covered Arctic Paper Group revenues, capital expenditures and
operating expenses. To identify individual activities, their descriptions dened
in the Annexes to the Commission Delegated Regulation (EU) 2021/2139
were used to compare to actual activities.
ALLOCATION
assigning to specic activities, identied in the rst stage, the value of turn-
over, capital expenditures and operating expenses.
VERIFICATION
for all identied activities, examination of the criteria for substantial contri-
bution and no signicant harm using technical screening criteria referred to
in the Annexes to the Commission Delegated Regulation (EU) 2021/2139.
Details of the assessment are presented in section 8.2 Compliance verica-
tion with technical screening criteria. Next step was to assess whether the
minimum safeguards were met.
CALCULATION
this stage was based on the use of information obtained in the second and
third stage, to prepare tables containing the required information and the
development of this supplementary information as required by Annexes I
and II to Commission Delegated Regulation (EU) 2021/2178, as amended
by Annex V of Commission Delegated Regulation (EU) 2023/2486.
1.
3.
2.
4.
89
6. TAXONOMY
Verication of compliance with the technical screening criteria was carried out
for activities qualifying for the EU Taxonomy and consisted of the analysis of
the individual criteria of signicant contribution and no signicant harm, as well
as to check check to what extent a given type of activity is compliant with the
technical screening criteria set out in Annexes I and II to Commission Delegated
Regulation (EU) 2021/2139, extended by Commission Delegated Regulation (EU)
2022/1214, Commission Delegated Regulations (EU) 2023/2485 and 2023/2486.
The main activities conducted in Arctic Paper Group are
production and selling of paper and pulp. These activities
are not included in the EU Taxonomy. Arctic Paper Group
expects that these activities will be included in the EU
Taxonomy in subsequent EU delegated acts.
6.2
COMPLIANCE
VERIFICATION WITH
THE TECHNICAL
SCREENING CRITERIA
90
SUSTAINABILITY REPORT 2023
According to Art. 18 of EU Regulation 2020/852: "The minimum guarantees (…),
shall be procedures implemented by an undertaking that is carrying out an economic
activity to ensure the alignment with the OECD Guidelines for Multinational Enter-
prises and the UN Guiding Principles on Business and Human Rights, including the
principles and rights set out in the eight fundamental conventions identied in the
Declaration of the International Labour Organisation on Fundamental Principles and
Rights at Work and the International Bill of Human Rights”.
The test of compliance with the minimum safeguards was carried
out in accordance with the recommendations described in Final
Report on Minimum Safeguards by Platform on Sustainable
Finance.
According to the recommendations, failure to meet the minimum safeguards is one of
the following four conditions:
• Inadequate or non-existent human rights due diligence processes, including labour
rights, corruption, taxation and fair competition.
• The company or its top management was held accountable or found to be in breach
of labour law or human rights law in certain types of labour law or human rights
lawsuits.
• Lack of cooperation with the OECD National Contact Point (hereinafter referred to as
the OECD NCP) on the notication accepted by the OECD NCP.
• The Business and Human Rights Resource Center (BHRRC) made an allegation
against the company and the company did not respond to them within 3 months.
6.3
COMPLIANCE
VERIFICATION WITH
MINIMUM SAFEGUARDS
91
6. TAXONOMY
In the verication process in Arctic Paper Group,
non-compliance with the above-mentioned premises has
been tested in the following way:
1. As a result of the internal analysis, it was determined that Arctic Paper Group
has a due diligence process in place and in operation.
• The Arctic Paper Group has a system for reporting irregularities
- Whistleblowing;
• Mandatory training for all employees on counteracting corruption and
anti-competitive practices is conducted;
• Arctic Paper Group implements a system for assessing the sustainable develop-
ment of suppliers;
• The Code of conduct in the Arctic Paper Group value chain, the Sustainable
Development policy and the Diversity policy were implemented.
2. As a result of the verication, whether in relation to the persons mentioned in
the content of the premise, during the period to which the verication relates,
no legally valid convictions were made.
3. Verication of the database of notications of the OECD NCP (National
Contact Points) was carried out, which showed that there were no notications
in relation to the Arctic Paper Group in the period covered by the verication:
https://mneguidelines.oecd.org/database/
4. Verication of the Business and Human Rights Resource Center (BHRRC) appli-
cation database was carried out which showed that there were no notications
in relation to the Arctic Paper Group in the period covered by the verication:
https://www.business-humanrights.org/en/companies/
92
SUSTAINABILITY REPORT 2023
93
6. TAXONOMY
6.4
ACCOUNTING
PRINCIPLES
The following principles were used to calculate the
percentage of turnover, capital expenditure (CapEx) and
operational expenditure (OpEx) eligible for the taxonomy:
TURNOVER
with regard to the turnover, the basis was the total consolidated revenues of
Arctic Paper Group in 2023, disclosed in the consolidated nancial statement
under the item "Revenue from the sale of paper and pulp" described in note
10. The numerator is assigned to the revenue from activities eligible for the
EU Taxonomy.
94
SUSTAINABILITY REPORT 2023
In 2023, Arctic Paper Group obtained key revenues eligible for the
taxonomy from services provided by Rottneros in the eld of forest manage-
ment and transmission and distribution of electricity in Kostrzyn mill.
CAPEX
with regard to capital expenditures (CapEx), the basis was capital expendi-
tures settled in the Arctic Paper Group in individual mills and in the
headquarter.
IN PLN THOUS DECEMBER 31, 2023
Revenue from eligible activities 85,457
Consolidated revenue 3,549,153
Turnover KPI for eligible activities 2.41%
IN PLN THOUS DECEMBER 31, 2023
Capital expenditure associated with eligible activities 53,153
Total capital expenditure 200,173
CapEx KPI for eligible activities 26.55%
The proportion of turnover associated with eligible activities is 2.41%.
The proportion of capital expenditure associated with eligible activities is 26.55 %.
In 2023, Arctic Paper Group's key investment eligible for the EU Taxonomy
were related to the installation of a photovoltaic farm in Kostrzyn, as well as
renovation of existing buildings in Kostrzyn mill (including replacement of
the chemical-resistant oor in the production hall) and in Grycksbo.
95
6. TAXONOMY
Arctic Paper Group’s crucial eligible operating expenditures in 2023 include
costs related to renewal of water collection, treatment and supply systems
in paper mills and cogeneration of heat and power from bioenergy in
Rottneros.
The entire amount of CapEx is included in the consolidated nancial state-
ments in the increases of the following items:
• xed assets – note 16;
• intangible assets – note 19;
• investment properties.
The numerator has that part of CapEx that is for eligible activities for the EU
Taxonomy.
OPEX
with regard to operating expenses (OpEx), the basis was constituted by all
costs for the day-to-day servicing of the company's assets and for keeping
them in a proper condition. They include such costs as: personnel costs of
persons responsible for maintenance and repairs, costs related to repairs and
renovations of devices / installations. The part of the OpEx which relates to
the activities qualifying for the EU Taxonomy is assigned to the numerator.
IN PLN THOUS DECEMBER 31, 2023
Operating expenditure associated with eligible activities 49,494
Total operating expenditure 164,298
OpEx KPI for eligible activities 30.12%
The proportion of operating expenditures associated with eligible activities is 30.12%.
96
SUSTAINABILITY REPORT 2023
At the stage of identifying the types of activities eligible for the
Taxonomy and the accompanying activities, it was made sure
that none of them qualies for more than one type of activity,
i.e. no investment project meets the denition of more than one
type of activity. In practice, individual types of activities eligible
for Taxonomy and activities related to them concern separate
areas, which eliminates the risk of double counting.
At the stage of preparation for the process of identifying types
of activities, and then allocation and verication, persons respon-
sible for individual business areas were informed about such a
theoretical risk and instructed that if a given activity complies
with more than one denition of activity, they should assign it to
the denition of the type of activity that best reects the speci-
city and nature of the activity.
At the same time, no activity was identied that would meet
the criteria for a signicant contribution to more than one goal
at the same time.
Thus, the risk of taking them into account twice did not exist.
The data used for the calculations came from the nancial and
accounting system of Arctic Paper Group operating units.
The analysis showed that there is no need for detailed disag-
gregation of key performance indicators between Arctic Paper
Group operating units in accordance with point 1.2.2.3. Annex I
to Commission Delegated Regulation (EU) 2021/2178.
No activity of Arctic Paper Group has been recognised as eligible
economic activity contributing to the environmental objectives
covering sustainable use and protection of water and marine
resources and pollution prevention and control.
97
6. TAXONOMY
1. Proportion of turnover from products or services
associated with EU Taxonomy-aligned economic activities
Arctic Paper Group generates revenues mainly from the
production and sale of paper and pulp. These activities are
not included in the EU Taxonomy.
In 2023 Arctic Paper Group identied 4 business areas, the
revenues from which are aligned with EU Taxonomy.
IN PLN THOUS DECEMBER 31, 2023
Revenue from aligned activities 15,171
Consolidated revenue 3,549,153
Turnover KPI for eligible activities 0.43%
0.43% of total consolidated turnover is of environmentally sustainable activities,
Taxonomy aligned. A small percentage of activities aligned with Taxonomy is
primarily due to the small share of eligible activities.
0.43% of the total revenue comes from environmentally sustainable activities,
aligned with EU Taxonomy in terms of the rst and second environmental objec-
tives, i.e. climate change mitigation and adaptation to climate change, which
mainly consists of turnover from the activities of:
• 1.3 - forest management and management of forested areas by Rottneros,
which are partially certied (PEFC, FSC), hence the revenues of this activity are
partially shown as aligned with EU Taxonomy and as eligible for EU Taxonomy,
but not aligned;
• 4.5 - production of electricity from hydropower at the Munkedals hydro-power
plant.
TABLE LEGEND
The Code constitutes the abbreviation of the relevant objective to which
the economic activity is eligible to make a substantial contribution, as
well as the section number of the activity in the relevant Annex covering
the objective, i.e.:
CCM – Climate Change Mitigation
CCA – Climate Change Adaptation
WTR – Water and Marine Resources
CE – Circular Economy
PPC – Pollution Prevention and Control
BIO – Biodiversity and ecosystems
Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the
relevant environmental objective
N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the
relevant environmental objective
N/EL – Not eligible, Taxonomy-non-eligible activity for the relevant
environmental objective.
Non-nancial undertakings shall also report the extent of eligibility and alignment per environmental
objective, that includes alignment with each of environmental objectives for activities contributing
substantially to several objectives:
EL – Taxonomy-eligible activity for the relevant objective
N/EL – Taxonomy-non-eligible activity for the relevant objective
Proportion of turnover/Total turnover
Taxonomy aligned per
objective
Taxonomy eligible per
objective
CCM 0,25% 1,98%
CCA 0,17% 0,00%
WTR 0,00% 0,00%
CE 0,00% 0,00%
PPC 0,00% 0,00%
BIO 0,00% 0,00%
98
SUSTAINABILITY REPORT 2023
Substantial contribution criteria
DNSH criteria
('Does Not Signicantly Harm')
Economic activities (1)
Code(s) (2)
Absolute turnover (3)
PLN thous
Proportion of turnover (4)
Climate change mitigation (5)
Climate change adaptation (6)
Water (7)
Pollution (8)
Circular economy (9)
Biodiversity (10)
Climate change
mitigation (11)
Climate change
adaptation (12)
Water and marine
resources (13)
Pollution (14)
Circular economy (15)
Biodiversity (16)
Minimum
safeguards (17)
Proportion of Taxonomy- aligned
(A.1.) or -eligible (A.2.) turnover,
2022 (18)
Category (enabling activity) (19)
Category (transitional activity) (20)
ths zł %
Y; N; N/
EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. Taxonomy-eligible activities
A.1. Environmentally sustainable activities
(Taxonomy-aligned)
Forest management CCM 1.3 8 988 0,25% Y N N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0,00%
Electricity generation using solar photovoltaic technology CCA 4.1 11 0,0003% N Y N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0,004%
Electricity generation from hydropower CCA 4.5 6 169 0,17% N Y N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0,10%
Installation, maintenance and repair of charging stations
for electric vehicles in buildings (and parking spaces attached
to buildings)
CCM 7.4 4 0,0001% Y N N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0,005% E
Turnover of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
15 171 0,43% 0,25% 0,17% 0,00% 0,00% 0,00% 0,00% 0,11%
Of which enabling 4 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,005% E
Of which transitional 0 0,00% 0,00%
A.2 Taxonomy-Eligible, but not environmentally sustainable
activities (not Taxonomy-aligned activities)
EL; N/EL
EL; N/
EL
EL; N/
EL
EL; N/
EL
EL; N/
EL
EL; N/
EL
Forest management CCM 1.3 60 153 1,69% EL N/EL N/EL N/EL N/EL N/EL 1,44%
Transmission and distribution of electricity CCM 4.9 10 033 0,28% EL N/EL N/EL N/EL N/EL N/EL 0,17%
Renewal of water collection, treatment and supply systems CCM 5.2 46 0,001% EL N/EL N/EL N/EL N/EL N/EL 0,001%
Renewal of waste water collection and treatment CCM 5.4 54 0,002% EL N/EL N/EL N/EL N/EL N/EL 0,001%
Turnover of Taxonomy-eligible, but not environmentally
sustainable activities (not Taxonomy-aligned activities) (a.2)
70 286 1,98% 1,98% 0,00% 0,00% 0,00% 0,00% 0,00% 1,61%
Turnover of taxonomy-eligible activities (A.1 + A.2) 85 457 2,41% 2,23% 0,17% 0,00% 0,00% 0,00% 0,00% 1,72%
B. Taxonomy-non-eligible activities
Turnover of Taxonomy-non-eligible activities (B) 3 463 696 97,6%
Total (A+B) 3 549 153 100,0%
99
6. TAXONOMY
Capital expenditure (CapEx) qualifying for the taxonomy are related to the imple-
mentation of future investment projects resulting from the adopted strategy of
the Arctic Paper Group.
2. Proportion of CapEx from products or services associated
with EU Taxonomy-aligned economic activities
Capital expenditure incurred in accordance with the EU Taxonomy was identied
in the course of work as contributing to the implementation of the rst, second
and sixth environmental objectives, i.e. climate change mitigation, climate
change adaptation and biodiversity and ecosystems, which mainly consist of
capital expenditures related to activities:
• 4.1 - expenditure on the construction of photovoltaic installations in paper mills
and Rottneros mill; and
• 7.2 - renovation of existing buildings to improve energy efciency in Kostrzyn
and Grycksbo mills.
Detailed plans and time perspective of incurring capital expenditures were
presented in the Arctic Paper 4P Strategy published on October 4th, 2021.
INCREASES IN TERMS OF VALUE '000 PLN NOTE
Tangible xed assets without assets without the right of use 203,172 16.1
Right-of-use assets 9,607 16.2
Intangible assets 16,100 19
Investment properties – –
228,879 –
TABLE LEGEND
The Code constitutes the abbreviation of the relevant objective to which
the economic activity is eligible to make a substantial contribution, as
well as the section number of the activity in the relevant Annex covering
the objective, i.e.:
CCM – Climate Change Mitigation
CCA – Climate Change Adaptation
WTR – Water and Marine Resources
CE – Circular Economy
PPC – Pollution Prevention and Control
BIO – Biodiversity and ecosystems
Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the
relevant environmental objective
N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the
relevant environmental objective
N/EL – Not eligible, Taxonomy-non-eligible activity for the relevant
environmental objective.
Non-nancial undertakings shall also report the extent of eligibility and alignment per environmental
objective, that includes alignment with each of environmental objectives for activities contributing
substantially to several objectives:
EL – Taxonomy-eligible activity for the relevant objective
N/EL – Taxonomy-non-eligible activity for the relevant objective
Proportion of CapEx/Total CapEx
Taxonomy aligned per
objective
Taxonomy eligible per
objective
CCM 19,66% 6,76%
CCA 0,04% 0,00%
WTR 0,00% 0,00%
CE 0,00% 0,00%
PPC 0,00% 0,00%
BIO 0,09% 0,00%
IN PLN THOUS DECEMBER 31, 2023
Capital expenditure associated with aligned activities 39,619
Total capital expenditure 200,173
CapEx KPI for aligned activities 19.79%
The KPI of CapEx associated with aligned activities is 19,79%.
100
SUSTAINABILITY REPORT 2023
Substantial contribution criteria
DNSH criteria
('Does Not Signicantly Harm')
Economic activities (1)
Code(s) (2)
Absolute Capex (3)
Proportion of CapEx (4)
Climate change mitigation (5)
Climate change adaptation (6)
Water (7)
Pollution (8)
"Circular
economy (9)"
Biodiversity (10)
"Climate change
mitigation (11)"
"Climate change
adaptation (12)"
"Water and marine
resources (13)"
Pollution (14)
"Circular
economy (15)"
Biodiversity (16)
"Minimum
safeguards (17)"
Proportion of Taxonomy- aligned
(A.1.) or -eligible (A.2.) CapEx,
2022 (18)
Category (enabling activity ) (19)
Category (transitional activity) (20)
ths zł %
Y; N; N/
EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. Taxonomy eligible activities
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Conservation, including restoration, of habitats, ecosystems and species BIO 1.1 186 0,09% N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y Y 0,00%
Electricity generation using solar photovoltaic technology CCM 4.1 26 454 13,22% Y N N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 1,95%
Electricity generation using solar photovoltaic technology CCA 4.1 11 0,01% N Y N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y
Electricity generation from hydropower CCA 4.5 74 0,04% N Y N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0,00%
Cogeneration of heat/cool and power from bioenergy CCM 4.20 2 932 1,46% Y N N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0,66%
Infrastructure for rail transport CCM 6.14 27 0,01% Y N N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0,00%
Renovation of existing buildings CCM 7.2 7 824 3,91% Y N N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0,00%
Installation, maintenance and repair of energy efciency equipment CCM 7.3 555 0,28% Y N N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 1,83% E
Installation, maintenance and repair of charging stations for electric
vehicles in buildings (and parking spaces attached to buildings)
CCM 7.4 664 0,33% Y N N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0,85% E
Installation, maintenance and repair of charging stations for electric
vehicles in buildings (and parking spaces attached to buildings)
CCM 7.6 891 0,45% Y N N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0,00% E
CapEx of environmentally sustainable activities (Taxonomy-aligned) (A.1) 39 619 19,79% 19,66% 0,04% 0,00% 0,00% 0,00% 0,09% 5,29%
Of which enabling 2 110 1,05% 1,05% 0,00% 0,00% 0,00% 0,00% 0,00% 2,68% E
Of which transitional 0 0,0% 0,00% 0,00%
A.2 Taxonomy-Eligible, but not environmentally sustainable
activities (not Taxonomy-aligned activities)
EL; N/EL
EL; N/
EL
EL; N/
EL
EL; N/
EL
EL; N/
EL
EL; N/
EL
Transmission and distribution of electricity CCM 4.9 1 814 0,91% EL N/EL N/EL N/EL N/EL N/EL 0,00%
District heating/cooling distribution CCM 4.15 646 0,32% EL N/EL N/EL N/EL N/EL N/EL 0,00%
Renewal of water collection, treatment and supply systems CCM 5.2 1 182 0,59% EL N/EL N/EL N/EL N/EL N/EL 0,20%
Renewal of waste water collection and treatment CCM 5.4 1 287 0,64% EL N/EL N/EL N/EL N/EL N/EL 0,12%
Transport by motorbikes, passenger cars and light commercial vehicles CCM 6.5 104 0,05% EL N/EL N/EL N/EL N/EL N/EL 0,00%
Construction, extension and operation of waste water collection and
treatment
CCM 7.2 2 432 1,21% EL N/EL N/EL N/EL N/EL N/EL 6,59%
Installation, maintenance and repair of energy efciency equipment CCM 7.3 4 969 2,48% EL N/EL N/EL N/EL N/EL N/EL 0,00%
Data processing, hosting and related activities CCM 8.1 1 101 0,55% EL N/EL N/EL N/EL N/EL N/EL 3,22%
CapEx of Taxonomy-eligible, but not environmentally sustainable
activities (not Taxonomy-aligned activities) (a.2)
13 535 6,76% 6,76% 0,00% 0,00% 0,00% 0,00% 0,00% 10,13%
CapEx of taxonomy-eligible activities (A.1 + A.2) 53 153 26,55% 26,42% 0,04% 0,00% 0,00% 0,00% 0,09% 15,42%
B. Taxonomy-non-eligible activities
Turnover of Taxonomy-non-eligible activities (B) 147 019
73,4%
Total (A+B) 200 173 100,0%
101
6. TAXONOMY
3. Proportion of OpEx from products or services associated
with EU Taxonomy-aligned economic activities
The operating expenditure (OpEx) eligible for the taxonomy related to activities
such as the repair and renovation of equipment, installations and buildings.
Operating expenditure incurred in accordance with the EU Taxonomy was iden-
tied in the course of work as contributing to the implementation of the rst,
second and fth environmental objectives, i.e. climate change mitigation, climate
change adaptation and circular economy, which mainly consist of operating
expenditures related to activities:
• 4.20 - Cogeneration of heat and power from bioenergy from biomass in pulp
mill in Vallvik; and
• 14.2 - Flood risk prevention and protection infrastructure related to the mainte-
nance of the Munkedals dam.
IN PLN THOUS DECEMBER 31, 2023
Operating expenditure associated with aligned activities 26,798
Total operating expenditure 164,298
OpEx KPI for aligned activities 16.31%
The KPI of OpEx associated with aligned activities is 16.31%.
TABLE LEGEND
The Code constitutes the abbreviation of the relevant objective to which
the economic activity is eligible to make a substantial contribution, as
well as the section number of the activity in the relevant Annex covering
the objective, i.e.:
CCM – Climate Change Mitigation
CCA – Climate Change Adaptation
WTR – Water and Marine Resources
CE – Circular Economy
PPC – Pollution Prevention and Control
BIO – Biodiversity and ecosystems
Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the
relevant environmental objective
N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the
relevant environmental objective
N/EL – Not eligible, Taxonomy-non-eligible activity for the relevant
environmental objective.
Non-nancial undertakings shall also report the extent of eligibility and alignment per environmental
objective, that includes alignment with each of environmental objectives for activities contributing
substantially to several objectives:
EL – Taxonomy-eligible activity for the relevant objective
N/EL – Taxonomy-non-eligible activity for the relevant objective
Proportion of OpEx/Total OpEx
Taxonomy aligned per
objective
Taxonomy eligible per
objective
CCM 12,94% 13,81%
CCA 3,33% 0,00%
WTR 0,00% 0,00%
CE 0,04% 0,00%
PPC 0,00% 0,00%
BIO 0,00% 0,00%
102
SUSTAINABILITY REPORT 2023
Substantial contribution criteria
DNSH criteria
('Does Not Signicantly Harm')
Economic activities (1)
Code(s) (2)
Absolute OpEx (3)
Proportion of OpEx (4)
Climate change mitigation (5)
Climate change adaptation (6)
Water (7)
Pollution (8)
Circular economy (9)
Biodiversity (10)
Climate change mitigation (11)
Climate change adaptation (12)
Water and marine resources (13)
Pollution (14)
Circular economy (15)
Biodiversity (16)
Minimum safeguards (17)
Proportion of Taxonomy- aligned
(A.1.) or -eligible (A.2.) OpEx,
2022 (18)
Category (enabling activity) (19)
Category (transitional activity) (20)
ths zł %
Y; N; N/
EL
Y; N; N/
EL
Y; N; N/
EL
Y; N; N/
EL
Y; N; N/
EL
Y; N; N/
EL
Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. Taxonomy eligible activities
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Forest management CCM 1.3 683 0,42% Y N N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0,00%
Treatment of hazardous waste CE 2.4 68 0,04% N/EL N/EL N/EL N/EL Y N/EL Y Y Y Y Y Y Y 0,00%
Electricity generation using solar photovoltaic technology CCA 4.1 5 0,003% N Y N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0,01%
Electricity generation from hydropower CCA 4.5 586 0,36% N Y N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0,12%
Storage of thermal energy CCM 4.11 31 0,02% Y N N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0,00%
Installation and operation of electric heat pumps CCM 4.16 10 0,01% Y N N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0,003%
Cogeneration of heat/cool and power from bioenergy CCM 4.20 13 589 8,27% Y N N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 10,15%
Production of heat/cool from bioenergy CCM 4.24 83 0,05% Y N N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0,35%
Construction, extension and operation of water collection, treatment and supply systems CCM 5.1 48 0,03% Y N N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0,05%
Renewal of water collection, treatment and supply systems CCM 5.2 2 442 1,49% Y N N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0,00%
Construction, extension and operation of waste water collection and treatment CCM 5.3 1 027 0,63% Y N N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0,09%
Collection and transport of non-hazardous waste in source segregated fractions CCM 5.5 1 180 0,72% Y N N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 2,31%
Transport by motorbikes, passenger cars and light commercial vehicles CCM 6.5 741 0,45% Y N N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0,00%
Infrastructure for rail transport CCM 6.14 1 040 0,63% Y N N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0,00%
Renovation of existing buildings CCM 7.2 385 0,23% Y N N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0,00%
Installation, maintenance and repair of charging stations for electric vehicles in buildings
(and parking spaces attached to buildings)
CCM 7.4 3 0,002% Y N N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0,03% E
Flood risk prevention and protection infrastructure CCA 14.2 4 878 2,97% N T N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0,00%
OpEx of environmentally sustainable activities (Taxonomy-aligned) (A.1) 26 798 16,31% 12,94% 3,33% 0,00% 0,00% 0,04% 0,00% 13,11%
Of which enabling 3 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,002% E
Of which transitional 0 0,00% 0,00%
A.2 Taxonomy-Eligible, but not environmentally sustainable activities (not Taxon-
omy-aligned activities)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Forest management CCM 1.3 4 571 2,78% EL
N/EL N/EL N/EL N/EL N/EL 2,67%
Transmission and distribution of electricity CCM 4.9 550 0,33% EL N/EL N/EL N/EL N/EL N/EL 0,00%
Renewal of water collection, treatment and supply systems CCM 5.2 8 572 5,22% EL N/EL N/EL N/EL N/EL N/EL 4,87%
Collection and transport of non-hazardous waste in source segregated fractions CCM 5.4 4 126 2,51% EL N/EL N/EL N/EL N/EL N/EL 1,98%
Transport by motorbikes, passenger cars and light commercial vehicles CCM 6.5 83 0,05% EL N/EL N/EL N/EL N/EL N/EL 0,00%
Data processing, hosting and related activities CCM 8.1 4 794 2,92% EL N/EL N/EL N/EL N/EL N/EL 2,02%
OpEx of Taxonomy-eligible, but not environmentally sustainable activities (not
Taxonomy-aligned activities) (a.2)
22 695 13,81% 13,81% 0,00% 0,00% 0,00% 0,00% 0,00% 11,54%
OpEx of taxonomy-eligible activities (A.1 + A.2) 49 494 30,12% 26,75% 3,33% 0,00% 0,00% 0,04% 0,00% 24,65%
B. Taxonomy-non-eligible activities
OpEx of Taxonomy-non-eligible activities (B) 114 804 69,9%
Total (A+B) 164 298 100,0%
103
6. TAXONOMY
ABOUT
THE REPORT
104
SUSTAINABILITY REPORT 2023
7.1
REPORTING PERIOD:
THE CALENDAR YEAR 2023
REPORT PUBLISHED ON APRIL 4, 2024.
Sustainability Report 2023 is the seventh report presenting the
impact of our organization on environmental, social and economic
issues and describing our management practices. The report covers
the period from 01/01/2023 to 31/12/2023, unless otherwise stated
in the content of the report. We publish reports on an annual basis.
We published previous Sustainability Report for year 2022 on March 28th, 2023.
This report is prepared in line with the international GRI Standards at the CORE level (with
reference to TCFD - Task Force on Climate-related Financial Disclosures recommenda-
tions) and is not a subject to additional external audit.
The report presents the most important information from the point of view of investors,
regulators and the European Union. These include: ESG (Enviromental, Social, Govern-
ance) indicators, European Commission guidelines on disclosing non-nancial information
related to climate impact.
7.2
CONTACT
Arctic Paper SA
ul. Fabryczna 1, 66-470 Kostrzyn nad Odrą
ir@arcticpaper.com
105
7. ABOUT THE REPORT
7.3
ESG FACTSHEET
PAPER PRODUCTION 2023 2022 2021 2020 2019
Production (tonne/year) 423,817 626,472 636,613 587,364 601,564
ENERGY 2023 2022 2021 2020 2019
Electricity from grid (GWh/year) 219.3 317.10 329.3 391.0 230.8
Electricity from internal sources: hydro-
power, windpower, solar power (GWh/year)
25.2 18.8 20.6 0.3 3.4
Natural gas (GWh/year) 621.3 844.3 722.4 752.1 862.6
Bio fuels (GWh/year) 114.6 198.6 207.8 91.4 216.0
Purchased thermal energy (GWh/year) 213.4 212.2 241.3 193.9 186.5
Sold thermal energy (GWh/year) 43.4 46.8 53.1 46.7 44.7
Sold electricity (GWh/year) 85.5 77.2 49.6 71.1 71.4
Total net energy consumption (GWh/year) 1,079.4 1,393.5 1,419.7 1,311.6 1,380.1
Net energy from renewable internal
sources (GWh/year)
140 217 228 91 219
Total net energy consumption
(MWh/tonne paper) – energy sold
to external partners not included
2.5 2.3 2.2 2.2 2.3
Of which from internal energy production
based on renewable sources – biomass
and hydropower (MWh/tonne)
0.33 0.35 0.36 0.16 0.36
Net energy consumption for total
energy export (thermal and electric energy)
(GWh/year)
143 124 103 118 109
106
SUSTAINABILITY REPORT 2023
EMISSIONS TO WATER AND AIR 2023 2022 2021 2020 2019
Fossile CO
2
(tonne/year) from our
own steam and electricity production
129,085 160,962 149,941 156,605 178,803
Fossile CO
2
(tonne/year) from our
own steam and electricity production,
dedicated for paper production
99,863 132,844 126,556 129,796 152,354
Direct CO
2
emissions kg/tonne – SCOPE 1 236 212 199 221 253
CO
2
emissions from energy sold
(heat and electricity) to external
consumers (tonne CO
2
/year)
29,230 28,118 23,385 26,809 24,948
CO
2
emissions from energy sold
(heat and electricity) (tonne/GWh)
227 228 228 228 228
Fossile CO
2
(tonne/year)
from purchased electricity
67 3,014 7,067 6,005 5,218
CO
2
emission factors for electricity
from grid (kg CO2/MWh) (Sweden /Poland)
0/666* 9.0/750 8.8/709.8 8.0/719 13.3/773
Indirect CO
2
– emissions from purchased
heat (tonne per year) (SCOPE 2)
18,785 – – – –
Indirect CO
2
emissions from all external
energy suppliers (electricity and heat) –
SCOPE 2
18,852 – – – –
Indirect specic CO
2
emissions from
external energy suppliers – SCOPE 2 (kg/
tonne)
44 5 11 10 9
Indirect CO
2
emissions emanating from our
major supplier of raw material (tonne/year)
37,356 53,273 49,668 43,003 43,826
Indirect specic CO
2
emissions from our
major supplier of raw material – SCOPE 3
(kg/tonne of paper)
88 85 78 73 73
Indirect CO
2
emissions emanating from our
transporters (tonne/year)
14,321 21,050 20,941 20,861 21,894
Indirect specic CO
2
emissions emanating
from our transporters (kg/tonne of paper)
SCOPE 3
33.8 33.6 32.9 35 36
WATER 2023 2022 2021 2020 2019
Water consumption m
3
/year 4,568,670 5,233,104 5,218,369 5,023,811 4,997,543
Specic water consumption (m
3
/tonne of
paper)
10.8 8.4 8.2 8.6 8.3
Emissions of COD to water (tonne/year) 198 280 308 283 276
Specic emissions of COD to water (kg/
tonne of paper)
0.47 0.45 0.48 0.48 0.46
* Only fossile free electricity purchased in Sweden
107
7. ABOUT THE REPORT
WASTE 2023 2022 2021 2020 2019
Recycling or energy extraction (tonne/year) 5,191 3,184 5,697 6,663 5,851
Recycling or energy extraction (kg/tonne of paper) 12.2 5.1 8.9 11.3 9.7
Hazardous waste (tonne/year) 164.5 191 85.5 269.7 117
Hazardous waste (Specic) (kg/tonne of paper) 0.39 0.30 0.13 0.46 0.20
Landll (tonne/year) 200.9 114 156 113.4 149.6
Landll (specic) (kg/tonne of paper) 0.47 0.18 0.25 0.19 0.25
SUPPLIERS 2023 2022 2021 2020 2019
Share(%) of core suppliers providing existing
signed environmental declaration
90 90 90 83 98
Share(%) of core suppliers who signed
the Code of conduct
90 90 90 83 85
Numbers of suppliers who are subject to audits
performed by Arctic Paper to conrm compliance
with the Code of conduct
2 2 1 3 4
Share(%) of pulp suppliers who are PEFC
and/or FSC certied
100 100 100 100 100
MATERIALS USED BY WEIGHT OR VOLUME 2023 2022 2021 2020 2019
Raw material for paper manufacturing
from external supplier (tonnes per year)*
406,181 585,663 n/a n/a n/a
Renewable raw material for paper manufacturing
from external supplier (tonnes per year)*
279,731 407,058 n/a n/a n/a
Non -renewable raw material for paper manufac-
turing from external supplier (tonnes per year)*
126,450 180,593 n/a n/a n/a
Renewable fraction of raw material
for paper manufacturing (%)*
68.9 69,5 n/a n/a n/a
Non-renewable fraction of raw material
for paper manufacturing (%)*
31,1 30,5 n/a n/a n/a
Total consumption of packaging material
(tonnes per year)
18.312 15,263 n/a n/a n/a
Total consumption of renewable
packaging material (tonnes per year)
16,761 13,719 n/a n/a n/a
Total consumption of non renewable
packaging material ( tonnes per year)
1,551 1,544 n/a n/a n/a
Renewable fraction of packaging material (%) 91.5 89,9 n/a n/a n/a
Non-renewable fraction of packaging material (%) 8.5 10,1 n/a n/a n/a
*Value covering more than 97% of used raw materials
108
SUSTAINABILITY REPORT 2023
TRANSPORTATION 2023 2022 2021 2020 2019
Share of Euro 3 engines class (%) 0 0 0 0 1
Share of Euro 4 engines class (%) 0 0 0 1 3
Share of Euro 5 engines class (%) 13 22 34 44 47
Share of Euro 6 engines class (%) 87 78 66 55 49
Indirect CO
2
emissions emanating from
our transporters (ton per year)
14,321 21,050 20,941 20,861 21,894
Specic indirect CO
2
emissions emanating
from our transporters (kg/ton)
34 34 33 35 36
CUSTOMER SATISFACTION 2023 2022 2021 2020 2019
Value of complaint as % of sales revenues 0.41 0.24 0.36 0.48 0.47
Sales revenues PLN M 2,460 3,580 2,431 2,016 2,309
HUMAN RESOURCES 2023 2022 2021 2020 2019
Worked Hours 1,947,506 1,896,657 1,770,249 1,755,076 1,835,225
Number of Lost time injuries 18 15 20 12 16
Lost time injuries per million worked hours 9.2 7.9 11.3 6.3 7.8
Total number of white collar employees 424 411 401 407 413
Total number of blue collar employees 799 790 764 774 770
Total number of white collar men employees 250 249 242 246 247
Total number of white collar women employees 174 162 159 161 166
Total number of blue collar men employees 665 660 639 655 652
Total number of blue collar women employees 134 130 125 119 118
Numbers of employees who participated
in business ethics training during the year
81 98 381 32 20
Average hours of training during the year 44 41 n/a n/a n/a
Employee survey response rate (absolute) 816 n/a 745 n/a 855
Employee survey response rate (%) 67 n/a 65 n/a 74
Overall engagement capital 3.9* n/a 51% n/a 46%
*change in reporting value due to change of engagement study methodology
109
7. ABOUT THE REPORT
EMPLOYMENT STRUCTURE TOTAL MEN WOMEN AGE<30 AGE 30-50 AGE>50
2019
Blue-collar 770 652 118 110 315 345
White-collar 413 247 166 13 215 185
2020
Blue-collar 774 655 119 114 333 327
White-collar 413 246 161 16 212 179
2021
Blue-collar 764 640 125 128 320 317
White-collar 401 242 159 19 204 179
2022
Blue-collar 790 660 130 149 326 315
White-collar 411 249 162 17 209 185
2023
Blue-collar 799 665 134 159 327 313
White-collar 424 250 174 23 204 197
2023 2022 2021 2020 2019
Number of permanent unlimited contracts 1,223 1,201 1,166 1,181 1,183
Number of temporary contracts 28 30 35 1.17 31
Percentage of total employees covered
by collective bargaining agreements
96 93 n/a n/a n/a
Total number of employees that took
parental leave during reporting period
117 113 n/a n/a n/a
EMPLOYEE TURNOVER RATE 2023 2022 2021
Turnover 6.6 6.7 5.8
New Hires 81 98 53
Resigned 60 58 37
Retired 26 27 31
NUMBER OF EMPLOYEES BY REGION 2023 2022
Poland 498 484
Sweden 681 650
Others 44 67
Total 1,223 1,201
110
SUSTAINABILITY REPORT 2023
2023 2022 2021 2020 2019
Total count of Management Board 3 2 2 2 2
% of Women on the Management Board 33 0 0 0 0
% of Men on the Management Board 66 100 100 100 100
2023 2022 2021 2020 2019
Total count of Supervisory Board 5 5 5 5 5
% of Women on the Supervisory Board 40 40 40 20 0
% of Men on the Supervisory Board 60 60 60 80 100
LEGAL AND REGULATORY COMPLIANCE BUSINESS-RELATED* NON-BUSINESS-RELATED*
2023
Fine bigger than PLN 2M 0 0
Fine smaller than PLN 2M 0 0
2022
Fine bigger than PLN 2M 0 0
Fine smaller than PLN 2M 0 0
2021
Fine bigger than PLN 2M 0 0
Fine smaller than PLN 2M 0 0
2020
Fine bigger than PLN 2M 0 0
Fine smaller than PLN 2M 0 0
2019
Fine bigger than PLN 2M 0 0
Fine smaller than PLN 2M 0 0
111
7. ABOUT THE REPORT
7.4
ESG FACT SHEET
– ROTTNEROS GROUP
The Rottneros Group is one of
the world's leading suppliers of
top-class pulp to selected niche
markets.
The Rottneros Group also
develops and produces
sustainable packaging solutions.
The Rottneros Group consists of:
– Rottneros mill and Vallvik mill –
two pulp production plants;
– Rottneros Packaging AB – a
factory producing molded ber
packaging;
– Nykvist Skogs AB and SIA
Rottneros Baltic – which supply
the raw material.
In 2023, Arctic Paper SA and Rottneros
AB concluded an agreement to establish
a joint-venture company under the name
Kostrzyn Packaging Sp. z o.o. The subject
of the company's activity is the production
of packaging made of molded cellulose
ber as well as development research
and technical analysis of manufactured
products.
The Rottneros Group is listed on the
Nasdaq stock exchange in Stockholm and
employs approximately 290 employees.
The corporate governance of the
Rottneros Group is based on the Swedish
Companies Act, the regulatory frame-
work of the Swedish Stock Exchange, the
Swedish Annual Financial Report Act and
the Swedish Corporate Governance Code.
112
SUSTAINABILITY REPORT 2023
Main facts about the Rottneros Group:
• offers a very wide range of different types of bers from two pulp mills in Sweden with a
production capacity of 225-250 kt per year - Vallvik, and 120 kt per year - Rottneros;
• The Vallvik plant produces long-ber chemical sulphate pulp and is a leading supplier of
cellulose E, which is used as an insulating material in electrical applications;
• The Rottneros plant focuses on the development and production of high yield bleached
mechanical pulp (CTMP);
• is the world's leading supplier of cellulose for the production of air and liquid lters;
• all wood used in the Rottneros Group is traceable and all pulps are available with PEFC or
FSC® certication;
• all Rottneros cellulose pulp is certied for the production of paper and cardboard
intended for contact with food and marked with Nordic Swan and EU Ecolabel;
• food trays manufactured by Rottneros Packaging are certied for food contact and are
available with the FSC® certicate;
The main ESG goals of the Rottneros Group:
ENVIRONMENTAL GOALS:
• production without the use of fossil fuels within GHG Scopes 1 and 2 by 2030 - Carbon
dioxide emissions in 2023 from fossil fuels within GHG Scope 1 are reduced to 8,979 tons
(including emissions from internal transport and company cars), compared to 9,982 tons in
2022. Scope 2 GHG emissions are reduced to 98,809 tonnes from 114,383 tonnes in 2022;
• reduction of COD level (chemical oxygen demand) – from 15.8 kg/tonne of cellulose in
2022 to 4.9 kg/tonne of cellulose in 2023;
• 100% share of FSC
®
or PEFC certied wood material - the result for 2023 was 68%. The
access to certied raw material was not enough to achieve the ambition. All purchased
wood fulls the requirements according to FSC
®
controlled wood.
SOCIAL GOALS:
• 30% share of women in the number of employees by 2025 - in 2023 the share of women
was 18%;
• 10.2 LTIFR – the number of accidents with sickness absence in 2023 increased to 10.2
LTIFR (number of accidents with sickness absence per million hours worked) compared to
7.4 LTIFR in 2022. The goal is to reduce the LTIFR rate every year .
113
7. ABOUT THE REPORT
2023 2022 2021 2020 2019
Production (tonnes per year) 351,657 397,112 395,286 412,600 393,600
Electricity from grid (GWh/year) 130 118 134 146 138
Electricity from internal sources: hydro-
power, windpower, solar power (GWh/year)
74 69 78 83 79
Fossil fuels (GWh/year) 28 39 51 53 68
Bio fuels (GWh/year) 1,716 1,705 1,714 1,771 1,754
Fossile CO
2
(tonne/year), from own steam
and electricity production
7,220 8,982 11,606 12,903 18,712
Direct CO
2
emissions kg/tonne – SCOPE 1 21 23 29 31 46
Fossile CO
2
(tonne/year), from purchased
electricity
98,809 114,383 107,687 100,504 75,505
CO
2
emission factors for electricity from
grid (kg CO
2
/MWh) (residual calculation)
468 372 365 338 251
Indirect specic CO
2
emissions from
external electricity suppliers kg/tonne –
SCOPE 2
281 288 272 244 186
2023 2022 2021 2020 2019
Emissions of COD to water (tonne/year) 5,238 6,270 5,990 6,992 7,124
Specic emissions of COD to water (kg/
tonne of pulp)
15 16 15 17 18
114
SUSTAINABILITY REPORT 2023
2023 2022
Worked Hours 476,513 514,418
Number of Lost time injuries 5 4
Lost time injuries per million worked hours 10.2 7.4
Total number of white collar employees 107 104
Total number of blue collar employees 186 204
Total number of white collar men employees 75 72
Total number of white collar women employees 32 32
Total number of blue collar men employees 164 180
Total number of blue collar women employees 22 24
Employee survey response rate (absolute) 237 of 307 na
Employee survey response rate (%) 77 na
2023 2022
Employee Total Turnover 17% 18%
New hires 14% 8%
Resigned 11% 6%
Retired 8% 11%
2023 2022
% of Women on the Group Management 25 25
% of Men on the Group Management 75 75
2023 2022
% of Women on the Board of Directors 33 33
% of Men on the Board of Directors 67 67
115
7. ABOUT THE REPORT
GRI INDEX
116
SUSTAINABILITY REPORT 2023
DISCLOSURE
NUMBER
GRI STANDARD
TITLE
DISCLOSURE
NAME
ADDITIONAL
INFORMATION
LOCATION
IN THE REPORT
ESG
TOPIC
1. The organization and its reporting practices
GRI 2-1
General
Disclosures 2021
Organizational details –
Front page
1.1 Company
Overview
–
GRI 2-2
General
Disclosures 2021
Entities included in
the organization’s
sustainability reporting
–
1.1 Company
Overview
–
GRI 2-3
General
Disclosures 2021
Reporting period,
frequency and
contact point
01.01.2023 – 31.12.2023 7. About the report –
GRI 2-4
General
Disclosures 2021
Restatements
of information
No signicant changes
in the reporting period
– –
GRI 2-5
General
Disclosures 2021
External assurance
Assurance only to the
extent required by the
Act on statutory audi-
tors and article. 49b
paragraph. 9 of the
Act about accounting
7. About the report –
2. Activities and workers
GRI 2-6
General
Disclosures 2021
Activities, value
chain and other
business relationships
–
1 This is
Arctic Paper
3 Sustainable
supply chain for
client satisfaction
–
GRI 2-7
General
Disclosures 2021
Employees – 5 People –
3. Governance
GRI 2-9
General
Disclosures 2021
Governance structure
and composition
–
1.3 Governance
structure and
management on
sustainability topics
–
GRI 2-10
General
Disclosures 2021
Nomination and
selection of the highest
governance body
–
1.3 Governance
structure and
management on
sustainability topics
5.5 Diversity, Equity
and Inclusion
–
GRI 2-11
General
Disclosures 2021
Chair of the highest
governance body
–
1.3 Governance
structure and
management on
sustainability topics
–
GRI 2-12
General
Disclosures 2021
Role of the highest
governance body
in overseeing
the management
of impacts
–
1.3 Governance
structure and
management on
sustainability topics
2.1 Materiality
assessment
2.4 Principal
risks and their
management
–
117
8. GRI INDEX
GRI 2-13
General
Disclosures 2021
Delegation
of responsibility for
managing impacts
–
1.3 Governance
structure and
management on
sustainability topics
–
GRI 2-14
General
Disclosures 2021
Role of the highest
governance body in
sustainability reporting
–
1.3 Governance
structure and
management on
sustainability topics
–
GRI 2-15
General
Disclosures 2021
Conicts of interest – 1.2 Business ethics –
GRI 2-16
General
Disclosures 2021
Communication
of critical concerns
No critical concerns
in the reporting period
1.2 Business ethics
1.3 Governance
structure and
management on
sustainability topics
–
GRI 2-17
General
Disclosures 2021
Collective knowledge
of the highest
governance body
–
1.3 Governance
structure and
management on
sustainability topics
2.1 Materiality
assessment
2.2 Our contribution
to the Sustainable
Development Goals
–
GRI 2-18
General
Disclosures 2021
Evaluation
of the performance
of the highest
governance body
–
1.3 Governance
structure and
management on
sustainability topics
–
GRI 2-19
General
Disclosures 2021
Remuneration policies
Remuneration policy
together with annual
Remuneration report
for Members of the
Management Board
and Members of the
Supervisory Board are
available as sepa-
rate documents on
webpage
– –
GRI 2-20
General
Disclosures 2021
Process to determine
remuneration
Remuneration policy
together with annual
Remuneration report
for members of the
Management Board
and members of the
Supervisory Board are
available as sepa-
rate documents on
webpage
– –
118
SUSTAINABILITY REPORT 2023
4. Strategy, policies and practices
GRI 2-22
General
Disclosures 2021
Statement
on sustainable
development strategy
–
Interview with
President of the
Management Board
1.3 Governance
structure and
management on
sustainability topics
2.1 Materiality
assessment
2.2 Our contribution
to the Sustainable
Development Goals
–
GRI 2-23
General
Disclosures 2021
policy commitments –
1.3 Governance
structure and
management on
sustainability topics
2.2 Our contribution
to the Sustainable
Development Goals
2.3 Responsible
Business
4 Environment
and Climate
–
GRI 2-24
General
Disclosures 2021
Embedding policy
commitments
–
1.3 Governance
structure and
management on
sustainability topics
2.2 Our contribution
to the Sustainable
Development Goals
2.3 Responsible
Business
4 Environment
and Climate
–
GRI 2-25
General
Disclosures 2021
Processes to remediate
negative impacts
–
2.1 Materiality
assessment
2.4 Principal
risk and their
management
–
GRI 2-26
General
Disclosures 2021
Mechanisms for
seeking advice and
raising concerns
– 1.2 Business ethics –
GRI 2-27
General
Disclosures 2021
Compliance with
laws and regulations
– 1.2 Business ethics –
GRI 2-28
General
Disclosures 2021
Membership
associations
–
2.5 Arctic Paper’s
Partnerships
–
5. Stakeholder engagement
GRI 2-29
General Disclo-
sures 2021
Approach to stake-
holder engagement
–
1.2 Business ethics
2.1 Materiality
assessment
–
GRI 2-30
General Disclo-
sures 2021
Collective bargaining
agreements
– 7.3 ESG Factsheet –
119
8. GRI INDEX
Material Topics
GRI 3-1
Material
Topics 2021
Process to determine
material topics
–
2 Company
sustainability
–
GRI 3-2
Material
Topics 2021
List of material topics –
2 Company
sustainability
–
GRI 3-3
Material
Topics 2021
Management
of material topics
–
1.3 Governance
structure and
management on
sustainability topics
2 Company
sustainability
–
Specic disclosures: Anti-Corruption
GRI 3-3
Material
Topics 2021
Management
of material topics
–
1.3 Governance
structure and
management on
sustainability topics
2 Company
sustainability
–
GRI 205-2
Anti-corruption
2016
Communication
and training about
anti-corruption policies
and procedures
Business ethics
training includes
also anti-corruption/
anti-bribery topics
1.3 Governance
and Business ethics
2.3 Responsible
business
G1
GRI 205-3
Anti-corruption
2016
Conrmed incidents
of corruption
and actions taken
No incidents conrmed – G1
Own measure –
Number of employees
completing the busi-
ness ethics program
–
1.2 Governance
and Business ethics
G1
Specic disclosures: Materials
GRI 3-3
Material
Topics 2021
Management
of material topics
–
1.3 Governance
structure and
management on
sustainability topics
2 Company
sustainability
–
GRI 301-1 Materials 2016
Materials used by
weight or volume
–
4.3. Sustainable
circular production
and waste
E3
GRI 301-2 Materials 2016
Recycled input
materials used
–
4.3. Sustainable
circular production
and waste
E3
GRI 301-3 Materials 2016
Reclaimed products
and their packaging
materials
–
4.3. Sustainable
circular production
and waste
E3
Own measure –
Value of complaints as
share of sales revenue
–
3.4. Commitment
to client satisfaction
S2
120
SUSTAINABILITY REPORT 2023
Specic disclosures: Energy
GRI 302-1 Energy 2016
Energy consumption
within the organization
–
4.2 Energy
and emissions
–
GRI 302-4 Energy 2016
Reduction of energy
consumption
–
4.2 Energy
and emissions
–
Specic disclosures: Water and Efuents
GRI 3-1
Material
Topics 2021
Process to determine
material topics
–
2 Company
sustainability
–
GRI 3-2
Material
Topics 2021
List of material topics –
2 Company
sustainability
–
GRI 303-1 Water 2018
Interactions with water
as a shared resource
– 4.4 Water E2
GRI 303-2 Water 2018
Management of water
discharge-related
impacts
– 4.4 Water E2
GRI 303-3 Water 2018 Water withdrawal – 4.4 Water E2
GRI 303-4 Water 2018 Water discharge – 4.4 Water E2
GRI 303-5 Water 2018 Water consumption – 4.4 Water E2
Specic disclosures: Biodiversity
GRI 3-3
Material
Topics 2021
Management
of material topics
–
1.3 Governance
structure and
management on
sustainability topics
2 Company
sustainability
–
GRI 304-1
Biodiversity
2016
Operational sites
owned, leased,
managed in, or adja-
cent to, protected
areas and areas of
high biodiversity value
outside protected areas
–
4.3.Sustainable
circular production
and waste
E3
GRI 304-3
Biodiversity
2016
Habitats protected
or restored
– 4.5 Biodiversity E3
Specic disclosures on material topics: Emissions
GRI 3-3
Material
Topics 2021
Management
of material topics
–
1.3 Governance
structure and
management on
sustainability topics
2 Company
sustainability
–
GRI 305-1 Emissions 2016
Direct (Scope 1) GHG
emissions
–
4.2 Energy
and emissions
E1
GRI 305-2 Emissions 2016
Energy indirect (Scope 2)
GHG emissions
–
4.2 Energy
and emissions
E1
GRI 305-3 Emissions 2016
Other indirect (Scope 3)
GHG emissions
–
4.2 Energy
and emissions
E1
121
8. GRI INDEX
Specic disclosures: Efuents and waste
GRI 3-3
Material Topics
2021
Management
of material topics
–
1.3 Governance
structure and
management on
sustainability topics
2 Company
sustainability
–
GRI 306-1 Waste 2020
Waste generation
and signicant
waste-related impacts
–
4.3. Sustainable
circular production
and waste
E3
GRI 306-2 Waste 2020
Management
of signicant
waste-related impacts.
–
4.3. Sustainable
circular production
and waste
E3
GRI 306-3 Waste 2020 Waste generated –
4.3. Sustainable
circular production
and waste
E3
GRI 306-5 Waste 2020
Waste directed
to disposal
–
4.3. Sustainable
circular production
and waste
E3
Specic disclosures: Supplier Environmental Assessment
GRI 3-3
Material
Topics 2021
Management
of material topics
–
1.3 Governance
structure and
management on
sustainability topics
2 Company
sustainability
–
GRI 308-1
Supplier
Environmental
Assessment
2016
New suppliers that
were screened using
environmental criteria
–
3.2. Environ-
mental assess-
ment of suppliers
and responsible
sourcing
E1
Specic disclosures: Employment
GRI 3-3
Material
Topics 2021
Management
of material topics
–
1.3 Governance
structure and
management on
sustainability topics
2 Company
sustainability
–
GRI 401-1
Employment
2016
New employee hires
and employee turnover
–
5.1 Working
at Arctic Paper
S3
GRI 401-2
Employment
2016
Benets provided to
full-time employees
that are not provided
to temporary or part-
time employees
–
5.2 Our employees'
well-being and
satisfaction
S3
GRI 401-3
Employment
2016
Parental Leave – 7.3 ESG Factsheet S3
Own measure – Engagement capital –
5.2 Our employees'
well-being
and satisfaction
S3
122
SUSTAINABILITY REPORT 2023
Specic disclosures: Occupational Health and Safety
GRI 3-3
Material
Topics 2021
Management of mate-
rial topics
–
1.3 Governance
structure and
management on
sustainability topics
2 Company
sustainability
–
GRI 403-1
Occupational
Health and
Safety 2018
Occupational health
and safety manage-
ment system
–
5.4 Health
and safety
S1
GRI 403-2
Occupational
Health and
Safety 2018
Hazard identication,
risk assessment, and
incident investigation
–
5.4 Health
and safety
S1
GRI 403-3
Occupational
Health and
Safety 2018
Occupational health
services
–
5.4 Health
and safety
S1
GRI 403-4
Occupational
Health and
Safety 2018
Worker participation,
consultation, and
communication on
occupational health
and safety
–
5.4 Health
and safety
S1
GRI 403-5
Occupational
Health and
Safety 2018
Worker training on
occupational health
and safety
–
5.4 Health
and safety
S1
GRI 403-6
Occupational
Health and
Safety 2018
Promotion of worker
health
–
5.4 Health
and safety
S1
GRI 403-7
Occupational
Health and
Safety 2018
Prevention and
mitigation of occu-
pational health and
safety impacts directly
linked by business
relationships
–
5.4 Health
and safety
S1
GRI 403-8
Occupational
Health and
Safety 2018
Workers covered by
an occupational health
and safety manage-
ment system
All workers are covered
by an occupational
health and safety
management system
5.4 Health
and safety
S1
GRI 403-9
Occupational
Health and
Safety 2018
Work-related injuries –
5.4 Health
and safety
S1
123
8. GRI INDEX
Specic disclosures: Training and Education
GRI 3-3
Material
Topics 2021
Management
of material topics
–
1.3 Governance
structure and
management on
sustainability topics
2 Company
sustainability
–
GRI 404-1
Training and
Education 2016
Average hours
of training per year
per employee
– 7.3 ESG factsheet S4
GRI 404-2
Training and
Education 2016
Programs for
upgrading employee
skills and transition
assistance programs
–
1.2 Business ethics
5.2 Our employees’
well-being and
satisfaction
S4
GRI 404-3
Training and
Education 2016
Percentage of
employees receiving
regular performance
and career develop-
ment reviews
–
1.2 Business ethics
5.2 Our employees’
well-being and
satisfaction
S4
Specic disclosures: Diversity and Equal Opportunity
GRI 3-3
Material
Topics 2021
Management
of material topics
–
1.3 Governance
structure and
management on
sustainability topics
2 Company
sustainability
–
GRI 405-1
Diversity
and Equal
Opportunity
2016
Diversity of governance
bodies and employees
–
5.5 Diversity
and Inclusion
S6
Specic disclosures: Non-discrimination
GRI 3-3
Material
Topics 2021
Management
of material topics
–
1.3 Governance
structure and
management on
sustainability topics
2 Company
sustainability
–
GRI 406-1
Non-discrimina-
tion 2016
Incidents of discrimi-
nation and corrective
actions taken
No incidents conrmed – S6
Specic disclosures: Local communities
GRI 413-1
Local
communities
2016
Operations with
local community
engagement, impact
assessments, and
development programs
–
2.5 Arctic Paper’s
Partnerships
4.5 Biodiversity
5.2 Our employees'
well-being and
satisfaction
–
124
SUSTAINABILITY REPORT 2023
125
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