Highlights from this year’s Sustainability Report

"We believe that what gets measured gets done. That’s why we are committed to clear and transparent sustainability reporting, showing both our achievements and the challenges we face," says Ulrika Wedberg, EVP Sustainability & Public Affairs and continues:

“We have decided to report voluntarily according to the new EU-directive on corporate sustainability reporting (CSRD) and the new sustainability reporting standards (ESRS) despite the fact that Sweden has postponed their implementation into law. By reporting according to all ESRS-standards we want to increase transparency, strengthen the engagement in sustainability, and make it easier for our customers and partners to compare our results with other companies.”

Progress in climate action

In 2024, Billerud’s 2030 climate targets were approved by the Science Based Targets initiative (SBTi). Our ambitious goals include:

• Scope 1 & 2: Reduce CO₂e -emissions by 42% by 2030, aligned with the 1.5°C target.
• Scope 3: Reduce CO₂e -emissions by 25%, staying well below the 2°C target.

Our long term goal is to reach net zero emissions by cutting our total Scope 1-3 emissions by 90%.

Of the 42% reduction required in scope 1 and 2 from 2022 to 2030, we have already achieved a reduction of just over 20% by the end of 2024, excluding volume-related reductions. This means we are well on track to meet our 2030 goals, even though further reductions will require significant investments. Our European mills are already 98% fossil free, and in 2024, we further reduced our energy intensity by increased stability and efficiency in production. The ambition is to reach 100% fossil free production.

In North America, we have completely phased out coal and virtually all purchased electricity for our pulp and paper mills is now fossil free. Improvements in production processes, boiler dust removal, and water and energy management have helped further reduce emissions.

Optimized water management

Water is used in a number of processes, for example to wash pulp and to dilute the pulp at our paper and board machines. We reuse it several times before it becomes wastewater, and only 2–5% is consumed through evaporation or in our products. Since our mills are located near rivers and lakes, we can use surface water with minimal impact on the flow of water.

We are making progress toward our 2030 goal of reducing water emissions from our processes. Our European target is to reduce wastewater discharge by 10% compared to 2020, which contributes to reduced pollution to water and improved water efficiency in production.

To support this, we have created a Water Investment Fund which is active from 2025. It will finance projects to reduce wastewater emissions and is a key measure in our strategy.

Between 2020 and 2024, we cut process water emissions by 7.9% compared to 2020. However, we did not reach our short-term goal of a 1% reduction for 2024, mainly due to that certain projects did not deliver the expected results and that others were delayed. We continuously work to ensure that all our facilities comply with the environmental conditions in the existing production permits. Besides this work, we introduced new measures in 2024 to improve water management, including:

• New sludge presses in Skärblacka which reduces the process effluent.
• Upgraded washing equipment in Gävle to reduce process effluent.

Our North American operations are also working actively with water management and we aim to set a water target that include all Billerud’s production units.

Resource efficient production

We are constantly working to reduce waste and use resources more efficiently, focusing on circular solutions, such as recovering chemicals and reusing byproducts.

Billerud is committed to reducing its environmental footprint by replacing materials and chemicals with renewable alternatives that fit our industry. In 2024, we recycled over 79% of the chemicals used in production, reducing our impact on the environment.

We also ensure that our byproducts are reused in other industries. For example, our European mills convert soap into crude tall oil (CTO) - a valuable raw material for biofuels and chemical production.

In North America, we sell turpentine, a byproduct from the pulping process to companies that use it in perfumes, cleaning products, and other applications. We also sell unprocessed soap to third parties for further processing, making sure we make the most of our resources.

"How we measure and follow up on our sustainability efforts is an important part of the work to achieve the strategic goals in Way Forward. We are committed to leading our industry toward the 1.5°C target by cutting our emissions by approximately 430,000 tons of CO₂e between 2022 and 2030. But we won’t stop there - our vision is to reach Net Zero by 2040. Through transparency, innovation, and ambitious goals, we want to drive progress toward a more sustainable industry and future," concludes Ulrika Wedberg.

See also: Billerud's Annual and Sustainability Report 2024.