Metsä Board Oyj : Sustainability review 2025 – printable

About this update from Metsa Board Oyj Class A

Metsä Board Sustainability Review 2025 For us, sustainability means delivering measurable impact that creates long-term value for our customers. Contents Introduction This is Metsä Board 2 CEO's foreword 4 Regulatory environment 5 Our sustainability highlights in 2025 6 Creating value worldwide 8 Supporting the circular economy 10 2030 sustainability targets 12 Sustainability targets and progress in 2025 14 E - Environment Biodiversity and regenerative forestry 16 Climate transition plan 24 Resource efficiency 34 S - Social Social responsibility 38 Product safety 42 G - Governance Sustainability reporting in 2025 This Sustainability Review 2025 summarises Metsä Board's key sustainability topics and achievements for the year in a customer-oriented format. SASB Content Index, Climate-related Financia l Disclosures TCFD and Nature-related Financia l Disclosures TNFD are available separately on Metsä Board's website: metsagroup.com/metsaboard . The Sustainability statement 2025 complies with the reporting requirements of the EU Corporate Sustainability Reporting Directive (CSRD). It has been assured by an independent third party and has been published as part of the Annual Review. Read more in the Sustainability statement 2025 Responsible operations 44 Metsä Board Sustainability Review 2025 Metsä Board Annual Review 2025 This is Metsä Board ‌Metsä Board is a leading European producer of premium lightweight paperboards. Our lightweight folding boxboards, food service boards, and white kraftliners are used in consumer and retail packaging worldwide. As part of Metsä Group, a Finnish forest industry company, we benefit from a unique value chain that includes renewable and recyclable raw materials, tailor-made pulps, and high-quality end products for packaging. in folding boxboards and white kraftliners in Europe in coated white kraftliners worldwide Values Reliability Cooperation Responsible profitability Renewal Our commitment to sustainability We help our customers reach their sustainability goals through lightweight materials and resource-efficient packaging solutions that promote a circular economy. Reducing carbon footprint Enabling easy recycling Reducing fossil-based materials Ensuring product safety Independent proof of our strong carbon performance According to data from the FisherSolve® Carbon Benchmark, Metsä Board ranks among the top three performers in Europe for greenhouse gas emissions when compared to other major cartonboard producers. Metsä Board also ranks among the top three white linerboard producers in Europe for low GHG emissions. Metsä Board uses the FisherSolve® benchmarking tool to objectively compare the carbon footprints of different paperboard producers. The benchmarking provides an objective view of relative carbon performance across producers and supports data-driven discussions with stakeholders. Read more on metsagroup.com/metsaboard . Metsä Board closed the Tako board mill in June 2025. Metsä Board is listed on the Nasdaq Helsinki stock exchange. Its major shareholder, Metsä Group's parent company, is a cooperative owned by around 90,000 Finnish forest owners, which ensures high access to strong Northern European fresh wood fibres. 7 6 5 4 3 2 92% Share of certified wood fibre 93% Share of fossil-free energy in production 1,900 Personnel 1 Kemi board mill Husum board and pulp mill Äänekoski board mill Kaskinen BCTMP mill Kyro board mill Simpele board mill Joutseno BCTMP mill 1. 2. 3. 4. 5. 6. 7. 7 Production units and a global sales network 2.1 Annual paperboard capacity in million tonnes 1.8 Sales in billion euros Our production units Key figures in 2025 Metsä Board actively participates in several ESG ratings Each year, we participate in several third-party assessments and ratings that evaluate our environmental, social, and governance (ESG) practices and risk management. In 2025, Metsä Board was also recognised as one of Europe's Climate Leaders by the Financial Times. Consistently high results in several ratings year after year confirm our systematic approach to sustainability. ESG rating provider and rating Score Scale from lowest to highest Comment Updated CDP, Climate Change A D−A In 2025, Metsä Board was included on CDP's Triple A 12/2025 List for the fourth time. For climate change and water CDP, Water Security A D−A security, Metsä Board has already been on the A List CDP, Forests A D−A ten times. EcoVadis, Sustainability Rating 91 0−100 The score places Metsä Board in the top 1% for the 07/2025 Platinum No medal − Platinum paper and paperboard industry. ISS, ESG Corporate Rating B- D- − A+ The score places Metsä Board in the first decile for 08/2025 Prime Not Prime − Prime the paper and forest products industry. ISS, QualityScore, Environment 1 10−1 The decile rank indicates ESG risks and disclosure 12/2025 ISS, QualityScore, Social 2 10−1 practices relative to peers. ISS, QualityScore, Governance 9 10−1 MSCI, ESG Rating AA CCC−AAA The score indicates exposure to ESG risks and the 05/2025 ability to manage the risks relative to peers. Sustainalytics, ESG Risk Rating 14.2 100−0 The current score indicates a low risk of experiencing 06/2025 material financial impacts from ESG factors. ‌ Redefining packaging: From compliance to strategic value Packaging is increasingly shaped by tightening regulatory frameworks, yet its role extends far beyond compliance. Packaging decisions carry weight and should be strategic, shaping brand identity and elevating the consumer experience from the very first touch. When life cycle thinking is embedded from the start, packaging becomes a signal of quality, care, and foresight. Fibre-based packaging stands out for its ability to combine functionality and recyclability with design flexibility, enabling premium brand experiences. As a renewable alternative to plastic, it opens new opportunities across diverse applications. Real progress, however, requires collaboration across the value chain to scale these solutions effectively. At Metsä Board, our approach is rooted in Nordic fresh fibre, the light weight of our paperboards and a commitment to continuous innovation. Transparent supply chains, regenerative forestry, 93% fossil-free energy, and advanced design underpin a packaging ecosystem that not only meets regulatory and certification requirements but strives to go beyond them. External assessments and transparent reporting reinforce our commitment to climate action, water stewardship, and forest biodiversity. Recognitions, such as the CDP Triple A ratings for Climate, Forests, and Water, place Metsä Board among global leaders in disclosure and progress. We have already reached the greenhouse gas emission reduction level aligned with the Paris Agreement's 1.5 °C target ahead of schedule. Our production units are among the lowest in carbon footprint globally, as confirmed by independent benchmarks such as FisherSolve®. We have maintained a clear and consistent focus on reducing both direct and indirect Scope 1 and Scope 2 fossil-based emissions across all our mills. In 2025, the Äänekoski board mill operated entirely on fossil-free energy. In addition, the EUR 60 million modernisation of the Simpele board mill, completed in 2025, enabled the mill to achieve 98% fossil-free energy use in production. We will continue to conduct material comparisons and third-party verified life cycle assessments to support informed decisions. All this is critical not only for mitigating climate change but also for our role in the value chain. Our paperboards are part of our customers' Scope 3 emissions, and by reducing our own, we help them meet their sustainability targets. The journey toward a future-ready packaging industry is more than reducing impact; it's about creating value at every stage and becoming the preferred choice for customers and consumers alike. Together, we can shape a future where packaging is strategically designed end-to-end to deliver value at every stage. Esa Kaikkonen CEO ‌Packaging regulations worldwide increasingly favour fibre-based packaging Globally, packaging regulations aim to safeguard consumer health, protect the environment, and mitigate climate change. Metsä Board's products and 360 Services help customers stay ahead of evolving regulations. The EU's new Packaging and Packaging Waste Regulation (PPWR) takes effect on 12 August 2026, and prohibits the placement of non-conforming packaging on the market thereafter. For example, limits will be imposed for substances of concern as of that date. In addition, harmonised pictogram labels will be introduced to facilitate consumer sorting as of August 2028. Packaging weight and volume will also need to be optimised for functionality, and all packaging will have to be recyclable by January 2030. With an 87% recycling rate (Eurostat, 2023), paper and cardboard packaging is the most recycled packaging material in the EU, already exceeding the PPWR targets for 2025 (75%) and 2030 (85%), and it is well on its way to reaching the The EU Deforestation Regulation (EUDR) was postponed by one year and it will come into effect on 30 December 2026 at the earliest. The regulation applies to commodities such as wood, cattle, cocoa, coffee, palm oil, soy, rubber, and many derived products like chocolate, leather, furniture, and paper. Metsä Board's transparent wood value chain is fully prepared to comply with the upcoming requirements of the EUDR. Beyond regulatory requirements, brand owners and retailers are setting ambitious company-level targets to reduce their environmental footprint, adopt recyclable packaging materials, and achieve net zero emissions. Through strategic cooperation with our customers, Metsä Board supports the creation of smarter packaging choices. 4evergreen alliance's ambitious target of 90% by 2030. Extended Producer Responsibility (EPR) regulations and schemes are increasingly being adopted around the world, not just in the EU. In the US, seven states have enacted packaging EPR laws since 2021, and similar bills are being considered in over 10 additional states. Extended Producer Responsibility (EPR) is an approach under which a producer's responsibility for a product, including its packaging, extends to the post-consumption stage of the product's life cycle. This is also known as the "polluter pays" principle. In practice, it requires organising or collectively paying for waste collection and recycling. EPR legislation drives a market preference for sustainable packaging by setting variable fees based on a material's environmental impact. As monomaterial paper and board typically incur the lowest fees, our lightweight, low-carbon products offer customers a crucial financial advantage. For our extruded products, we actively work to reduce the amount of plastic applied without compromising grease and water barrier performance. We are also engaging with customers and brands to calculate their EPR cost exposure and maximise fee reduction by using our paperboards. Metsä Board paperboards - Made to perform, designed for circularity Lightweight and strong Reduces material use and minimises recycling waste Low-carbon Provides opportunities for carbon footprint reduction Food-safe Designed to meet the highest standards for direct food contact Fully recyclable Supports circular economy goals Plastic alternative Renewable solution that reduces reliance on fossil-based packaging ‌Our sustainability highlights in 2025 In 2025, our focus areas included phasing out the use of fossil energy, collaborating closely with customers to develop recyclable and low-carbon packaging solutions, and supporting them in navigating the evolving regulatory landscape. With a 79% reduction in fossil-based Scope 1 and 2 CO 2 emissions from 2018 to 2025, we are already below the 1.5°C Paris-aligned 2030 level. Read more on page 29. Metsä Board's Excellence Centre hosted 41 customer workshops in 2025, sparking innovation through collaboration. Helping customers navigate packaging legislation and circularity Metsä Board has published a comprehensive Material Circularity Statement , which compiles essential information and guidance on product end-of-life management and circularity in one document. The statement helps customers comply with key global legislation and standards in the fields of packaging and packaging waste, and it also addresses Extended Producer Responsibility in the UK and recyclability claims in the US. The statement is available to customers in Metsä Board Online portal. Award-winning cosmetics collaboration LUMENE's 2024 Beauty Advent Calendar won the prestigiou s Carton of the Year 2025 and ScanStar 2025 packaging award s. The calendar is the result of close collaboration between LUMENE, Metsä Board's Excellence Centre, and VG Kvadra Pak, part of Van Genechten Packaging Group. It features an innovative three-dimensional structure and lightweight, recyclable folding boxboard made from renewable wood fibres. Recyclable and home-compostable takeaway cup Starbucks launched a new version of its iconic white c up in Europe, offering customers an alternative when they don't have a reusable cup. The renewed hot cup is widely recyclable and certified home-compostable by DIN CERTCO. The cup, designed and manufactured by Transcend Packaging, is made from Metsä Board's fresh fibre paperboard and features a mineral-based coating developed by Qwarzo®. Metsä Board contributed R&D and sustainability expertise through its 360 Services to support the joint development of the new solution. Case studies show switching to paperboard has climate benefits Based on Metsä Board's carbon footprint case studies* of berry and takeaway food packaging, packaging solutions made from Metsä Board's paperboard have a significantly smaller carbon footprint compared to certain types of plastic packaging. The results have been verified by independent experts from the Swedish research institute RISE and SimaPro UK. *Technical background report and verification report available on metsagroup.com/metsaboard Highest-level recognition in CDP and EcoVadis ratings Metsä Board was among an exceptionally select group of companies worldwide to achieve a place on CDP's Triple A List , excelling in climate action, forest stewardship, and water security. Additionally, Metsä Board renewed its Platinum rating from EcoVadis with an outstanding score of 91/100, placing the company among the top 1% in the paper, paperboard, and packaging manufacturers category. Simpele mill upgrade advances shared climate goals The EUR 60 million investment in the Simpele boar d mill was completed in late 2025. The upgrade introduce d state-of-the-art technology to improve print quality and brand visibility, further strengthening Metsä Board's competitiveness in food and healthcare packaging. The share of fossil-free energy used in production increased from 89% to 98%, supporting customers' climate goals and Metsä Board's 2030 climate targets. ‌A unique value chain benefiting customers worldwide Metsä Board is part of Metsä Group, with a value chain that spans from Northern European wood fibre to high-quality end products - including premium recyclable fresh fibre paperboards mainly used in consumer product packaging. Traceable, certified and deforestation-free Resource-efficient production and lower CO 2 emissions 1 | Fresh fibres from Northern European forests Sourced from northern forests with an ownership base of approximately 90,000 private forest owners, ensuring a steady supply of high-quality fresh fibre. Traceability of origin: All wood we use is either certified (92%) or meets controlled origin requirements (8%). Metsä Group's regenerative forest management practices aim to actively enhance biodiversity and forest wellbeing. 2 | Pulp self-sufficiency and efficient production Our BCTMP and pulp production, together with a 24.9% ownership in Metsä Fibre, ensure superior consistency and tailor-made properties for packaging. A high share of fossil-free energy used in production (93%), with the aim of phasing out the use of fossil energy by 2030. Product excellence across our mills provides backup and delivery reliability. Reliable supply and comprehensive services to support customer needs Safe, easily collectable, recyclable and compostable 3 | Strong yet lightweight fresh fibre paperboards Consistent fibre quality enables high converting efficiency and reduces waste. Opportunities to reduce packaging carbon footprint through lightweighting and a high share of fossil-free production energy. Excellence Centre collaboration and 360 Services: From LCAs to packaging design, we create recyclable and material-efficient solutions that reduce waste, plastic use, and CO 2 across the supply chain. 4 | A safe choice for brands and consumers Compliance with direct food contact regulations, ensuring hygiene and consumer safety. Our strong fresh fibre material helps maintain form and integrity throughout a packaging's life cycle, reducing damage and waste. Fully recyclable and certified for both industrial and home composting. We support our customers' compliance and help them respond effectively to tightening regulation. ‌Circular packaging solutions that meet stringent requirements At Metsä Board, we believe the circular economy is built on the use of primarily renewable and fossil-free resources, resource-efficient operations, and keeping materials in circulation for as long as possible. Our aim is to help customers meet increasingly stringent regulatory requirements. Keep recycling loops going Keeping packaging materials in circulation Packaging made from strong, fresh wood fibres is recyclable, and the fibres can be recycled multiple times in their lifetime. In addition, they improve the quality of existing materials already in circulation and compensate for those that have not returned to circulation. Through joint design guidelines and cross-industry collaboration, such as the 4evergreen alliance, Metsä Board is committed to supporting the improvement of paperboard recycling. Paperboard is superior for recycling Circular paperboard solutions Our paperboards are tested and confirmed to be recyclable 1) . Ultimately, recyclability depends on the local recycling infrastructure. All Metsä Board paperboards, except for the PE-coated grades, are certified as industrially compostable and home compostable 2) . Developing resource-efficient solutions through cooperation Metsä Board's 360 Services experts, together with our Excellence Centre in Äänekoski, provide an excellent co-creation platform for our customers and partners worldwide. By working closely with our customers, we can improve the functionality and recyclability of their packaging, helping them reduce plastic, use less raw material and create lighter packaging solutions with a lower environmental impact. 1) Cepi Recyclability Laboratory Test Method for standard or specialised mill recycling (Version of Oct 2022 or Feb 2025) 2) Industrially compostable according to the DIN EN 13432 and/or ASTM D6400 standards and home compostable according to the NF T 51-800 standard Ensuring diverse forests that sequester carbon Regenerative forestry aims to enhance biodiversity and strengthens the state of nature. Metsä Board only uses traceable wood of certified or controlled origin. Our wood procurement does not cause deforestation, and we will comply with the Regulation on Deforestation-free Products (EUDR) when it enters into application. Renewable wood-based raw material Reducing the use of plastics Renewable fresh fibre is our main raw material. Our customers can reduce or eliminate the use of plastics and composites in their packaging by using paperboard. This can help customers to meet regulatory requirements, such as the EU's Packaging and Packaging Waste Regulation (PPWR), and may also lower their Extended Producer Responsibility (EPR) fees. Efficient production minimises environmental impact Resource-efficient production We focus on the efficient use of raw materials, water, and energy, and we monitor the environmental impact of all our paperboards through life cycle assessments. Based on third-party verified results, the light weight of our paperboards and the high share of fossil-free energy used in production help reduce the carbon footprint of paperboard packaging 3) . Aiming for zero process waste in landfills We benefit from Metsä Group's internal value chain, where all sourced wood raw material is used for the most valuable end uses. We are also seeking new ways to reuse production side streams in various applications, such as for soil improvement. 3) Life cycle assessments are based on requirements set out in specific product category rules (EPD International PCR 2010:14 Processed paper and paperboard, 3.1) and in accordance with the ISO 14040 and ISO 14044 standards. Documents on third-party verification are available on Metsä Board's website metsagroup.com/metsaboard. ‌2030 sustainability targets Sustainability provides a strong foundation to the value we provide for our customers. Advancing our sustainability targets also helps our customers meet their own sustainability objectives. ENVIRONMENT Biodiversity and forests Climate change Resource efficiency SOCIAL Safety Wellbeing Diversity, equality and inclusion GOVERNANCE Ethical corporate culture Responsible supply chain Why it matters Sustainability is not only about meeting tightening regulations. Sustainable businesses are more resilient in facing the challenges of the future. At their best, companies can be regenerative, focusing on improving the state of the natural environment and society. ‌Sustainability targets and progress in 2025 Key milestones at a glance 79% Reduction of fossil-based CO 2 emissions from 2018 to 2025 92% Share of certified wood fibre 4.8 Total recordable incident frequency, own employees -7.2% Energy efficiency improvement 8.0% Reduction in process water use 25% Women in leadership roles Progress in the 2030 targets TARGETS AND METRICS 2030 TARGET 2025 ACTUAL 2025 PROGRESS UN SDG E - ENVIRONMENT 1. Mitigating climate change and adapting to it in own operation and value chains Improvement in energy efficiency from the 2018 level, % +10 -7.2 7, 12, 13 Fossil-based carbon dioxide emissions (Scope 1 and Scope 2 market-based), t 0 121,252 12, 13 Greenhouse gas emissions from logistics purchased by Metsä Board -30 -5.8 13 from the 2022 level (Scope 3, category 4), %/tkm MG: Amount of forest regeneration and young stand management from the 2018 level, % +30 +14 13, 15 MG: Amount of forest fertilization from the 2018 level, % +50 +126 13, 15 MG: Share of continuous cover forestry in peatland forest regeneration, % 30 18 13, 15 2. Continuous improvement in resource-efficiency in production Reduction in process water use per produced tonne from the 2018 level, % -35 -8.0 6, 12 Process waste delivered to landfills, t 0 111 12 3. Enhancing the state of forest nature MG: Retention trees on regeneration felling sites, % 100 96 13, 15 MG: High biodiversity stumps on harvesting sites, % 100 100 13, 15 MG: Spruce as the only tree species after young stand management, % 0 25 13, 15 MG: Measures promoting biodiversity, number 10,000 10,616 13, 15 MG: The target is set at the Metsä Group level. The previously reported reduction in process water use has been revised from -6.4% to -8.0%. The corrected figure will be incorporated into the 2026 reporting. Progress in 2025 is compared with the previous year. Exceeds target (significant progress) On target (progress as planned) Short of target (no progress or weaker progress) Our sustainability targets are built on strategy and materiality Metsä Board's sustainability targets are grounded in its corporate strategy, a double materiality assessment of sustainability matters and Metsä Group's sustainability targets. Each year, the double materiality assessment identifies Metsä Board's sustainability-related material impacts, risks, and opportunities, in alignment with the company's risk management principles. This assessment incorporates the company's internal analysis, third-party assessments, and stakeholder perspectives. Based on the findings, Metsä Board's key sustainability focus areas include: Climate change Biodiversity Environmental impacts of products Occupational safety of own workforce and value chain workers Read more in the Sustainability statement 2025 TARGETS AND METRICS 2030 TARGET 2025 ACTUAL 2025 PROGRESS UN SDG S - SOCIAL 4. Accident-free work environment Total recordable incident frequency, own employees (TRIF) 0 4.8 8 Total recordable incident frequency, contractor employees (TRIF) 0 5.2 8 5. Continuous improvement in engagement and wellbeing of employees Employee engagement, index (scale 0-100) AAA A 5, 8 The implementation of the measures defined based on the employee survey, % 100 100 5, 8 6. Promoting diversity, equality and inclusion (DEI) Women in leadership roles, % 35 25 5, 8 Employee experience on diversity, equality and inclusion (DEI) implementation, 100 72 5, 8 "Metsä for all" index (scale 0-100) Anonymous recruitment for vacancies open to all, % 100 100 5, 8 G - GOVERNANCE 7. Promoting ethical corporate culture Employee experience on ethical corporate culture implementation, Ethics index (scale 0-100) 100 79 5, 8 8. Promoting sustainable and ethical practices in our supply chain Share of certified wood fibre, % 100 92 15 Traceability of raw materials, share of total purchases, % 100 95 9, 12 Suppliers' commitment to the Supplier Code of Conduct, share of total purchases, % 100 99.5 8, 12 Supplier assessments and audits of core suppliers, % 100 77 8, 12 MG: Joint sustainability target with partner suppliers, % 100 100 12, 13 ‌Forests We are committed to developing regenerative forest management practices that aim to enhance biodiversity and help forests adapt to climate change. ‌ Why it matters The best way to help forests thrive in a changing climate is to manage them in a way that boosts their biodiversity. By creating more mixed forests with a variety of species, we make them stronger and more resilient to future changes, ensuring they stay healthy and vibrant for generations to come. Target 2030 Actual 2025 Safeguarding biodiversity and the ecological sustainability of forest use Retention trees on regeneration 100 felling sites, % 96 High biodiversity stumps on 100 harvesting sites, % 100 Spruce as the only tree species after 0 young stand management, % 25 Measures promoting biodiversity, number 10,000 10,616 Mitigating climate change and adapting to it in own operation and value chains Amount of forest regeneration and +30 young stand management from +14 the 2018 level, % Amount of forest fertilization from +50 the 2018 level, % +126 Share of continuous cover forestry 30 in peatland forest regeneration, % 18 All these targets are set at the Metsä Group level. Enhancing biodiversity of forest nature E Regenerative forestry provides means to strengthen the state of forests and to manage their ecosystems and health comprehensively, thereby improving climate resilience and promoting the long-term availability of wood as a raw material. Customer benefits Fully traceable wood and a transparent, responsibly managed value chain minimise sourcing risk Enhanced biodiversity and climate resilience through regenerative forestry practices, supporting forest health and securing wood supply for the future In focus Actions Responsibility in wood sourcing Metsä Group is responsible for sourcing all wood used by Metsä Board. Metsä Group has publicly available principles for fore st use and management that guide all forestry operations. Met sä Group's forestry measures are guided by legislation, official guidelines, the requirements of forest certification schemes, and Metsä Group's own regenerative forestry guidelines. Wood is procured from commercial forests in Northern Europe, and Metsä Group does not source wood from old-growth forests or Strengthen forest biodiversity and health through regenerative forestry practices supported by the Metsä Group Plus service model Review of due diligence practices and development of systems to meet the requirements of the EU Deforestation Regulation (EUDR) before it enters into application Support forest owners with a carbon calculator to verify the impacts of wood procurement and forest management on the carbon balance of forests Regenerative forest management aims to enhance the vitality, biodiversity, and climate resilience of commercial forests. forests defined as primary forests. Wood from Northern European forest Wood from Northern European forests is used in the production of Metsä Board's products. The majority of the wood used by Metsä Board comes from Finland, Sweden and the Baltic countries. In all sourcing countries, there is a legal obligation to ensure forest regeneration takes place after harvesting. Forestry in these regions is semi-natural, meaning that wood production is integrated into the natural ecosystem and native tree species serve as commercial tree species. Compared to plantation forestry, this means no land-use conversion and supports a higher level of biodiversity. Thanks to regeneration obligations and good forest management practices in all Metsä Group's wood-sourcing countries, forestry operations do not cause deforestation in these areas. Read more in our Sustainability statement 2025 , E4 - Biodiversity and ecosystems Examples of Metsä Group's regenerative forestry principles Utilising native tree species Diversification of tree species Increasing the number of old trees Increasing varied decayed wood Diversification of structural features Protection of valuable habitats Improving the management of peatlands and water protection Special measures for herb-rich forests, ridge areas, and burned forest areas Species-specific measures Improving the biodiversity network Regenerative forestry In recent years, increased research data and a better understanding have broadened the range of good forest management practices. Metsä Group launched its regenerative forestry strategy in 2023. The goal is to verifiably enhance the state of forest nature and increase forest biodiversity as well as forests' ability to adjust to climate change by 2030. Metsä Group's planned forest actions are based on the most recent scientific research on forest management and biodiversity. Regenerative forest management aims to enhance the vitality, biodiversity, and climate resilience of commercial forests while increasing both growing stock and species diversity. The diversity of forests is increased through various practical measures. Metsä Group's goal is to strengthen the value of natural capital, alongside the economic value generated by forests, as commercial forests also produce numerous vital natural benefits for both people and the environment. Nature benefits, or so-called ecosystem services, include, for example, clean water, pollinators, berries and mushrooms, recreational use, and carbon sinks. On a practical level, regenerative forestry takes place in the forest areas belonging to members of Metsäliitto Cooperative, Metsä Group's parent company, who own over half of Finland's privately-owned forests. Therefore, the measures carried out in these forests are essential for forest ecosystems throughout Finland. Monitoring the achievements of regenerative forestry measures needs to be verified with measurements. This entails a significant investment in developing forest biodiversity indicators and monitoring methods. These indicators and monitoring systems are also currently being developed in active collaboration with our network of universities and other research institutions. The impacts of the measures on various species are also investigated in separate monitoring projects. As an example, Metsä Group is taking part in a co-funded, four-year doctoral research project with the University of Jyväskylä in Finland on regenerative forestry that started in the beginning of 2026. Habitats for native species There are approximately 30 native tree species in Finland. Our wood procurement in Finland will continue to be based on five naturally occurring tree species: spruce, pine, silver birch, white birch and aspen, all of which spread to the area after the Ice Age. In Metsä Group's forest operations in Finland the other, more than 20 native tree species are left in the forests to grow and support their biodiversity. Naturally occurring trees also provide living conditions for native species such as tree root fungi, mosses and lichens growing on tree trunks, insect larvae, and decaying forest litter. Metsä Group establishes a forest conservation foundation There is a need for additional protection of forests the permanent protection of forests with high biodiversity with significant nature values. By establishing a value and thus supports the development of the forest conservation foundation, Metsä Group aims to conservation network. complement the existing conservation network and The foundation enables the forest owner to receive provide compensation to forest owners for forest sites with financial compensation even for forests sites that are conservation value. not suitable for selling wood. The conservation criteria The foundation was established in 2025, and its are drawn up on nature conservation grounds, and the operations started during 2026. The conservation conservation decisions will be permanent. Protection can foundation supplements Metsä Group's services, be applied everywhere in Finland, and protection measures supporting forest owners in strengthening the biodiversity are not limited to the forests belonging to Metsä Group's of their forests. The conservation foundation focuses on owner-members. At Metsä Board, our entire wood value chain exists within Metsä Group, from wood procurement to our ready-made paperboards Wood procurement Metsä Forest Pulp production Metsä Fibre and Metsä Board Paperboard production Metsä Board Paperboard converting Packed product Decaying wood: a building block of forest biodiversity Decaying wood is important, as up to 5,000 forest species in Finland depend on it. These species include enemies of pest insects. Decaying sturdy trunk wood is relatively rare in commercial forests. However, it can be increased by leaving high biodiversity stumps and retention trees that decay over time, and by retaining trees that have died naturally. Unmanaged protective thickets can also be left in forests, producing decayed wood in the long term. Metsä Group Plus Metsä Group Plus is a forest management model that follows regenerative forestry principles and increasingly pays close attention to forest biodiversity in the implementation of forest operations. The model includes measures that safeguard and improve forest biodiversity above and beyond the current standard practices. The use of these measures is agreed with the forest owner in connection with wood trade and orders for young stand management. Under this service model, for example, more retention trees and high biodiversity stumps are left in the forest than usual, and buffer zones along waterways are wider. The Metsä Group Plus service is offered to Metsä Group's owner-members in Finland, and an additional bonus per hectare is paid to forest owners who adopt the model. In 2025, approximately 30% of all Metsä Group's wood trade purchases were made under the Metsä Group Plus service model. Promoting biodiversity outside commercial forests Metsä Group's funding programme for nature projects was initially launched in 2021. The ten-year programme finances development projects in Finland that improve biodiversity or the state of nature outside commercial forests. It is a non-remunerated programme operating outside Metsä Group's own impacts and value chains. Project selections are made once a year. As of Q4 2025, more than 88 different projects across Finland have received funding, totalling approximately EUR 2.4 million. In addition, Metsä Group has a regenerative land use initiative to boost biodiversity in built environments. The Kemi mill site served as the first pilot and its biodiversity plan was developed with a Finnish NGO. The aim is to also utilise the best practices at other appropriate locations at a later stage. A wood value chain our customers can trust Metsä Board's entire wood value chain is within Metsä Group, from wood procurement to ready-made paperboard. This makes the wood value chain transparent and simplifies the process of ensuring the traceability of the wood we use. All wood used in Metsä Board's products comes either from certified forests or from forest sources that meet the requirements for controlled origin (PEFC Controlled Sources, FSC® Controlled Wood). The origin of all purchased wood is always known and all wood is fully traceable. Wood sourcing for Metsä Board's products always complies with existing legislation, and traceability is ensured through practices that meet the requirements of the PEFC Chain of Custody and FSC Chain of Custody (PEFC/02−31−92 and FSC-C001580). Therefore, the wood used can be traced back to its origin in Northern European forests. Certification systems comprehensively account for biodiversity in forestry operations. Biodiversity is protected by setting requirements to preserve valuable habitats, maintaining retention trees, and protecting water bodies, among other measures. ‌EU Deforestation Regulation - EUDR The EU deforestation regulation entered into force on 29 June 2023. It aims to ensure that products consumed in the EU do not cause deforestation or forest degradation globally. At the same time, the regulation seeks to reduce greenhouse gas emissions and biodiversity loss. The commodities included in the scope of EUDR are cattle, wood, cocoa, soy, palm oil, coffee, and rubber, which are linked to the expansion of agricultural land, the main driver of global deforestation. EUDR is planned to enter into application on 30 December 2026, replacing the current EU Timber regulation (EUTR). The European Commission is expected to complete a review by 30 April 2026 to streamline the regulation and clarify reporting obligations across different stages of the value chain. The regulation requires operators and traders to have a due diligence system in place to ensure that their products come from legal sources, do not originate from recently deforested land, and have not contributed to forest degradation, and comply with all requirements of the regulation. In 2025, Metsä Board, as part of Metsä Group, evaluated its wood value chain and assessed the risks across all its wood-sourcing countries. The results were aligned with the EU authorities' Global Forest Risks Assessment, which classifies all countries which Metsä Board sources wood as low-risk countries. For packaging producers and brand owners, supplier compliance with EUDR provides further proof of responsibility in the wood value chain. Carbon balance of forests Metsä Group's regenerative forestry practices guide wood procurement and forest services toward measures that strengthen the state of forest nature. In addition to enhancing forest biodiversity, these measures aim to increase forests' capacity to sequester carbon and their ability to adapt to climate change. Together with forest owners and other partners, Metsä Group has developed a forest carbon calculator to verify the impacts of wood procurement and forest management on the carbon balance of forests. The calculator has been available to forest owners since 2025 as an online service that helps them manage their forest assets and make climate-smart forest management decisions. All the wood fibre we use is traceable All parties involved in the processing of wood and pulp in our value chain comply with the requirements of the PEFC and FSC chains of custody. The wood fibre we use is therefore fully traceable. In addition to sustainable forest sites, we choose our partners in the value chain responsibly. PEFC/02-31-92 Promoting Sustainable Forest Management https://www.pefc.org The wood procurement practices are annually assessed by Metsä Group's internal and third-party audits. The audits focus on matters related to environmental and social responsibility in the operations of wood suppliers and harvesting contractors, as well as on the traceability of wood fibre. Customer Paperboard, pulp and high-yield pulp mills Wood supply and forest services Forest owners Forest certification and our Chain of Custody system give our customers the opportunity to tell their own clients about a product's sustainability. Certification and traceability are tools intended to support transparency about the origin of wood and the forest management practices involved. The pulp used in paperboard production is manufactured at Metsä Board's own pulp and high-yield pulp mills or our associated company Metsä Fibre's pulp mills. These mills purchase all their wood from Metsä Group's wood supply. The mills record the volume, origin and certification of the wood they purchase, and ensure through calculations that the volume of certified products they sell corresponds with the volume of inbound certified wood. The certification details are shown in the orders and the related documents. All wood can be traced with the help of maps, the details entered in our data systems, and various documents. Metsä Group's wood supply calculates the share of certified wood and sells a corresponding volume of certified wood to the mills. We also require a sustainable origin from non-certified wood, and the wood always meets at least the requirements of PEFC Controlled Sources and FSC Controlled Wood. Most of the wood we use comes from PEFC or FSC-certified Northern European forests. The forest owners have agreed to the requirements of forest certification. Metsä Group and external auditors also verify sustainable forest management, for example, by auditing harvesting sites. Good and timely forest management, and swift renewal after regeneration felling, help mitigate climate change. Key practical actions related to climate change mitigation in forest operations include the following: Forests are swiftly renewed after regeneration felling. The faster and better a new forest is established, the sooner it begins to store carbon from the atmosphere. Cultured seeds and seedlings of local tree species are used in renewal whenever available. Domesticated trees grow better than naturally generated trees. Young stand management and thinning ensure that stands remain vital, and growth is focused on the best trees. Forest fertilisation to improve tree growth, which maintains the growth conditions of the soil and ensures the vitality of trees. Increasing the share of continuous cover forestry helps curb and adapt to climate change, as it minimises the GHG emissions from peatland forests. The goal of continuous cover forestry is to maintain a steady groundwater surface level to prevent the carbon stored in peat from being released into the atmosphere and to minimise impacts on water bodies. Metsä Group's Wood Supply and Forest Services have strategic sustainability targets for these actions, and they are presented in the table on page 17. Reducing emissions from wood procurement Metsä Group's goal is to cut fossil-based carbon dioxide emissions from wood procurement in Finland by 30% by 2030, compared to 2022 levels. In wood logistics, the company is developing new solutions based on electricity and biogas. For example, a pilot project has been launched to test the use of an electric truck for timber transport between the Kemi bioproduct mill and timber terminals. Charging infrastructure for electric trucks is also being built at the Kemi bioproduct mill. Metsä Group and Risutec have developed an accessory that allows a forwarder to prepare soil while collecting logging residues. Combining these tasks eliminates an extra machine transfer, reducing emissions in the wood procurement chain. Transitioning to plant-based oils as lubricants in harvester chains and using biological control methods in stump treatment helps reduce fossil carbon dioxide emissions from timber harvesting. ‌Climate We are committed to transitioning away from fossil-based energy and reducing the carbon footprint of packaging. Why it matters Climate change causes a wide range of negative impacts on nature and living conditions globally. Human activity, such as the use of fossil fuels, is one of the main reasons for this. Reducing the use of fossil-based materials and energy helps mitigate climate change and enhances the resilience of companies in line with the requirements of a low-carbon economy. Target 2030 Actual 2025 Mitigating climate change and adapting to it in own operation and value chains Improvement in energy efficiency from the 2018 level, % +10 -7.2 Fossil-based carbon dioxide emissions (Scope 1 and Scope 2 market-based), t 0 121,252 Greenhouse gas emissions from logistics purchased by Metsä Board from the 2022 -30 -5.8 level (Scope 3, category 4), %/tkm Forest-related climate targets are reported on page 17. Our climate transition plan E Advancing towards fossil-free energy use and lower product carbon footprint, supporting a bio-based, resource-efficient circular economy, and collaborating with our suppliers and customers all play key roles in our climate transition plan. Customer benefits Lightweight, recyclable paperboard packaging solutions made from renewable wood fibre and produced primarily with fossil-free energy help reduce carbon footprint, replace plastic, and meet regulatory requirements A reliable packaging material supplier with a comprehensive approach to climate change mitigation and resilience In focus Metsä Board's climate transition plan presents our strategic ambition in climate matters, as well as the climate-related investments and actions in the areas of production and value chain, products and services, and business conduct The climate transition plan has also been published in accordance with the European Sustainability Reporting Standards (ESRS) requirements in our Sustainability statement 2025 Actions - Production and value chain Environmental responsibility Metsä Board's environmental operations are guided by Metsä Group's environmental policy, the certified ISO 9001 quality management system, the ISO 14001 environmental management system, the ISO 50001 energy efficiency management system and an energy efficiency system (EES). All our production units are certified according to these management systems. Key climate targets Our emissions reduction target to have zero fossil-based CO 2 emissions by 2030 (Scope 1 and 2) is approved by the Science Based Targets initiative (SBTi) and meets the Paris Climate Agreement requirements, which aim to limit global warming to 1.5°C. With respect to the value chain (Scope 3), we are in the process of updating our SBTi-aligned target. In addition, we aim to reduce greenhouse gas emissions from logistics purchased by Metsä Board by 30% per tonne-kilometre from the 2022 level by 2030. Read more in our Sustainability statement 2025 , E1 - Climate change Currently, we do not have any post-2030 emissions reduction targets, but planning of the 2050 1.5°C net zero pathway in accordance with the Paris Agreement is underway. For energy efficiency, the improvement target is 10% from 2018 to 2030. Promoting the use of fossil-free energy Metsä Board's plan towards fossil-free operations in production units and their power plants comprises of investments and development measures to replace fossil-based energy sources with renewable fuels and fossil-free electricity. The measures apply to the fuels and backup fuels used at power plants and to the process fuels used in the production process. The plan also includes a shift to fossil-free alternatives for purchased electricity and heat, and measures to improve energy efficiency. In 2025, 93% of all the energy used by Metsä Board was fossil-free. To achieve the current emissions reduction targets, we focus on emissions reductions at source, and no carbon credits are currently used to compensate for or balance Metsä Board's emissions. Commonly, carbon credits play a role in balancing residual emissions to reach net zero goals. Our operating areas in climate matters - Climate change, circular economy and sustainable forestry are intertwined Further improving efficiency in the use of energy, water and materials Investigating technical capture of biogenic CO 2 at Metsä Group Strengthening personnel capabilities Cooperation and advocacy Increasing the substitution benefit of products Reinforcing fibre recycling loops Risk management Good governance Reducing greenhouse gas emissions Renewable wood fibre from certified forest origins Promoting carbon sequestration and biodiversity in forests at Metsä Group While Metsä Board's fossil-free target includes only fossil-based CO 2 emissions, combusting wood-based biomass also produces relatively small amounts of methane and nitrous oxide which, according to the GHG Protocol, are counted as Scopes 1 and 2 emissions along with fossil-based greenhouse gas emissions. According to our estimate, Metsä Board's Scopes 1 and 2 emissions from biogenic CH 4 and N 2 O will be approximately 30,000 tonnes in 2030. Enhancing energy efficiency We aim to improve energy efficiency through continuous development and investments, primarily in drying and heat recovery. Continuous and stable production is essential for energy-efficient operations. Production interruptions and lower production rates usually reduce the energy efficiency of operations. In 2025, shutdowns at mills due to the market conditions and investments weakened the efficiency, and we still remained behind our energy efficiency target despite previous measures taken. Cooperating with the value chain To reduce value chain emissions, we encourage our suppliers to set emissions reduction targets. The recommendation is part of Metsä Group's Supplier Code of Conduct and is monitored in supplier assessments and audits. In 2025, we began updating our SBTi-aligned Scope 3 target as the previous target period ended. In addition, we started the preparation of action plans in line with our goal to reduce GHG emissions from logistics. Value chain emissions are also curbed by Metsä Group's joint emissions reduction targets with partner suppliers, such as VR, a Finnish logistics group, and Royal Wagenborg, a Dutch maritime logistics company. In our wood supply chain, Metsä Group's regenerative forestry actions aim to increase forests' biodiversity, carbon sequestration and ability to adapt to climate change. Read more about the forests' role in climate change mitigation on pages 22-23. Adapting to changing climate Adapting to climate change requires addressing both acute threats, such as extreme weather events, and chronic risks arising from climate impacts on water availability in production units, harvesting conditions, growth of different tree species, and forests' vulnerability to snow, storms, drought, wildfires, insects, and fungal damage. Metsä Group's principles of regenerative forestry and sustainable forest management services promote biodiversity and support forests' adaptation to climate change. In production units, examples of measures include managing water levels through dam systems and ensuring electricity distribution in exceptional situations. In the supply chain, preparations are made for alternative transport routes or partners. Based on climate risk analysis conducted by an external partner, Metsä Board's production units do not have any significant physical climate risks, and their location supports our competitiveness in a changing climate. The financial effects of climate change and climate-related costs and financing are described in the transition plan published in the Sustainability statement 2025. GREENHOUSE GAS EMISSIONS 2023-2025 COMPARED TO 2018 2025 2024 2023 2018 Direct fossil-based carbon dioxide emissions (Scope 1), tCO 2 121,041 169,429 181,339 288,579 Indirect fossil-based carbon dioxide emissions (Scope 2 market-based), tCO 2 211 82,279 2,261 289,296 Direct GHG emissions (Scope 1), tCO 2 e 139,723 192,098 202,227 310,232 Indirect GHG emissions (Scope 2 market-based), tCO 2 e 2,082 84,990 3,747 296,282 Indirect GHG emissions (Scope 2 location-based), tCO 2 e 143,634 259,496 299,365 441,065 Indirect GHG emissions in the value chain (Scope 3), tCO 2 e 1,587,316 1,789,138 1,792,006 1,058,455 1) Biogenic carbon dioxide emissions, tCO 2 1,803,590 2,154,777 1,984,088 1,812,793 1) The spend-based Scope 3 accounting methodology used in 2018 is not fully comparable with the activity-based and supplier-specific inventory accounting in 2023−2025. Scope 3 - upstream Scope 2 Scope 1 Scope 3 - downstream tCO 2 e tCO 2 e tCO 2 e tCO 2 e Downstream transportation and distribution Fuel and energy-related activities Upstream transportation and distribution Waste generated in operations Business travel Employee commuting 42,212 2,082 139,723 280,567 661 607 1,883 759,821 Processing of sold products Use of sold products End-of-life treatment of sold products Investments 5,571 348,447 1,906 436,968 34,601 827,493 48% 8% 44% 0.1% TOTAL GREENHOUSE GAS EMISSIONS CA. 1.7 MILLION TONNES CO2e (SCOPES 1, 2, 3) Purchased goods and services 400,842 Market-based indirect GHG Direct GHG emissions Capital goods 33,049 emissions from purchased electricity 2,082 from own processes and power plants 139,723 Key milestones in 2025 The modernisation of the folding boxboard machine at the Simpele mill improved product quality and performance, and the fossil process fuel, LPG, was replaced with electricity. This, and the replacement of peat with renewable fuels at the power plant as of 2024, rose the share of fossil-free energy at the mill to 98%. The Äänekoski board mill sources more than half of its energy from the adjacent Metsä Group bioproduct mill, and operated entirely on fossil-free energy in 2025. The closure of the Tako board mill in June 2025 reduced total emissions. In 2025, all purchased electricity used in production was fossil-free, significantly reducing Scope 2 emissions. 93% OF OUR ENERGY USE IS FOSSIL-FREE Renewable energy, wood-based 74 Renewable energy, other 1 Nuclear power 18 Fossil fuels 7 The market conditions, investment shutdowns, and completed key actions reduced GHG emissions in 2025.

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