Sustainability and forest management 24th of June Minna Kantsila, Sustainability Manager

My viewpoints today • Global perspective • Safety with fresh forest fibres • Fresh forest fibres • Open communacation is vital for sustainability

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Forerunner in lightweight and sustainable paperboards • Metsä Board is part of Metsä Group which is one of the largest forest industry groups in the world, owned by a cooperative of 122,000 private Finnish forest owners • Europe’s leading producer folding boxboards

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• World’s leading manufacturer of coated white-top kraftliners

GLOBAL PERSPECTIVE to food packaging

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Global future outlook • In 2030 the world will be different – 50% more food needed – 45% more energy needed – 30% more water needed − The growing demand creates scarcity of natural resources as well as price increases − On the other hand, availability and efficient usage of renewable raw material become even more important − The use of paperboard has significant advantages, such as renewability, biodegradability, and recyclability. 5

06/07/2015

How will we feed 9 billion people?

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3 billion

7 billion

9,2 billion

1960

2013

2050

4300 m2

2200 m2

1600 m2

7/6/2015

Minna Kantsila

Source: FAO, World Food and Agriculture Organization

1/3 of food – 1,3 billion tonnes – gets lost or wasted − Food waste in industrialised countries is as high as in developing countries. − Packaging protects food and makes more food available.

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7/6/2015

40% lost after harvest and during processing.

40% lost at retail and by consumers.

11% of all food thrown away.

DEVELOPING COUNTRIES

INDUSTRIALISED COUNTRIES

EUROPE Source: FAO, World Food and Agriculture Organization

Trends and drivers in cartonboard consumption • Environmental issues – – – – –

Lightweighting & material savings Favouring renewable packaging materials Sustainable wood sources, chain of custody Climate change, carbon footprint NGO activities

• Social responsibility and transparency • Health and safety – –

Raw materials (e.g. mineral oil migration) Nutritional information and labelling

• Retail drivers –

Omnichanneling (e.g. supply chain efficiency, branding)

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Retail/shelf-ready packaging

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Premiumisationof traditional brands vs. private labels

• Consumer lifestyle –

Convenience (e.g. demographic shifts, on-the-go lifestyle)

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Experience (e.g. personalisation, fun)

Food packaging market growing fast Over 220 billion EUR

183 billion EUR Source: Pira, Pöyry

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SAFETY with fresh forest fibres

Product safety starts with traceable raw materials Fresh fibres from certified northern forests Only safe chemicals of known origin Paperboard packaging materials specified Warehouse locations and conditions under strict control 11

High standards ensure stable product quality Hygiene – Manufacturing follows GMP guidelines Odour and taint – Neutrality allows direct food contact Purity – No contaminants Consistency – Secured availability of quality fibre raw material and clean water 12

Consumers want products without off-flavours • Metsä Board products’ odour & taint neutrality allows direct food contact • Neutrality is based on pure, fresh forest fibre pulps and known chemicals – Low microbe and heavy metal levels – Low volatile levels in coating binders – Free of mineral oils Off-flavour*