259400OI92UBLS9RJK55

Arctic Paper S.A.

Capital Group disclosure on non-nancial information

SUSTAINABILITY

REPORT 2021

TABLE

OF CONTENT

This is

Arctic Paper / 6

Company

sustainability / 22

Sustainable

supply chain

for client

satisfaction / 40

Environment

and Climate / 50

1.1 Company Overview / 07

1.2 Governance and Business ethics / 16

1.3 Company’s structure and management

on sustainability topics / 20

2.1 Materiality assessment / 23

2.2 Our contribution to the Sustainable

Development Goals / 28

2.3 Responsible business / 30

2.4 Principal risk and their management / 31

2.5 Arctic Paper's Partnership / 34

2.6 Key business performance indicators / 37

3.1 Responsible supply chain / 41

3.2. Environmental assessment of suppliers

and responsible sourcing / 43

3.3 Transportation / 46

3.4. Commitment to client satisfaction / 48

4.1 Management approach / 51

4.2 Energy and emissions / 54

4.3. Sustainable circular production

and waste / 60

4.4 Water / 63

4.5 Biodiversity / 66

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

People / 68 About the

Report / 88

5.1 Working at Arctic Paper –

Management approach / 69

5.2 Our employee well-being

and satisfaction / 72

5.3 Human rights / 78

5.4 Health and safety / 79

5.5 Diversity and Inclusion / 80

Taxonomy / 82

7.1 Reporting period: the Year 2021 / 89

7.2 Contact / 89

7.3 ESG factsheet / 90

GRI Index / 96

Michał Jarczyski

CEO Arctic Paper S.A.

What were the most

important events

in 2021?

2021 was a special year

that was marked both

by the pandemic, and

by the increased focus

on sustainability. For

Arctic Paper, 2021 was

a good year in which

we strengthened our

positions in the market,

at the same time as we

worked on developing

our business model.

In the autumn of 2021,

we launched our new

strategy – 4P – which

means that we diversify

and add two new pillars

to our existing business:

renewable packaging

and green energy. We

already have a founda-

tion, expertise and expe-

riences in these two areas

and see great potential

for the future. During the

year, we also had time

to take important steps

towards realizing the new

strategy in both energy

and packaging.

What does the new

strategy mean for your

sustainability work?

Arctic Paper has its

origins and heritage

in renewable products

and has long worked to

reduce the environmental

footprint of the Group's

products. The new 4P

strategy takes it a step

further by broadening our

business with a focus on

the circular economy. We

are good at affordable

green energy; now we

are gradually building

up capacity that not

only makes us self-suf-

cient but with the aim of

becoming a net seller of

electricity from solar, wind

and hydropower in the

future. This will be done

step by step in various

projects as we gradually

are learning from pilot

investments such as the

solar farm in Kostrzyn. We

are gradually learning.

The shift to packaging

without petroleum-based

plastics benets our

growing packaging busi-

ness and we are building

a new ber tray factory

in Kostrzyn together with

our subsidiary Rottneros,

based on renewable

resources.

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

What is your most impor-

tant sustainability goal?

The ultimate goal is to

become climate neutral

by 2035, while our

paper and packaging

business aim to reach

this goal already by

2030. But we are taking

many small steps, day

by day, towards a more

sustainable company

in both social and

environmental terms

with resilient govern-

ance. It is ultimately

the customers and the

surrounding society that

dene what is sustain-

able. We are therefore

humble because we

need to change our work

and adjust our goals as

our view of sustainability

changes. Arctic Paper's

CSR report is our way of

sharing about that work

and how well we are

performing.

What does it mean

for your employees all

over Europe?

Climate change,

pandemics, protection of

the biosphere and digi-

talisation are the biggest

challenges of our time.

We continue our efforts

in education and training,

in increasing diversity

and in creating equal

and fair treatment within

the Arctic Group. And

to use this knowledge

also to support local and

international projects

to achieve these global

goals, while taking social

needs into account.

How does the EU's

taxonomy affect

the perception of

sustainability?

Firstly, the new taxonomy

is not complete, it is a

work in progress, but

it illustrates well that

the view of sustaina-

bility may change over

time. Currently there

are different opinions

about energy solutions or

modern forest manage-

ment just to mention two.

But we are completely

convinced that products

based on a renewable

and circular raw material

that stem from sustain-

ably managed forests

and produced with green

energy will be in demand

and seen as sustainable

also in the future. And we

are committed to always

buy raw materials from

sustainably managed and

certied forests.

How has the pandemic

affected Arctic Paper?

Arctic Paper has during

2021 been successful

in protecting the busi-

ness from impact of the

pandemic. The local

policies implemented

and adjusted out from

the changes of pandemic

outbreaks, govern-

ments guidelines and

restrictions had a limited

impact on our business.

How do you see the

outlook for 2022?

Working today means

agile commitment to

new conditions due

to digitalization, covid

related measures or new

demands from society

and clients. We are

proud of the exibility

and the adaptation of

our employees in these

fast changing and chal-

lenging times. In 2022,

we will take further steps,

in line with our strategy,

to build our business in

renewable packaging

and green energy, while

maintaining our strength

in paper and pulp.

THIS IS

ARCTIC

PAPER

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

1.1

Company Overview

Arctic Paper S.A. is a leading European producer of high-quality graphic

paper listed on the stock exchanges in Warsaw (Giełda Papierów Wartościo-

wych – 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 advertising 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 produc-

tion 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 produc-

tion capacity of about

220,000 tonnes per year

and produces coated

wood-free paper used

for printing maps, books,

magazines, posters and

advertising materials.

ONE TWO THREE

As of 31 December 2021, Arctic Paper

employs about 1,200 people in paper production sector.

Our business activities are based on the operations of three mills:

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 S.A., 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).

Arctic Paper S.A is also a majority owner (in possession

of 51.0 % of the shares by the 31 December 2021) of

the Rottneros group. Rottneros is a pulp producing

company, registered on the Nasdaq stock exchange

in Stockholm. The Pulp mills owned and operated by

Rottneros are located in Sweden and have aggregate

production capacities of about 440,000 tonnes of pulp

annually. Arctic Paper S.A. has nancial control over

Rottneros, as it holds the majority of shares, yet opera-

tional control belongs to Rottneros including responsi-

bility for the company’s performance and sustainability

matters. For 2021, the data for Rottneros is not available

in the format reported by Arctic Paper S.A., but sustain-

ability impact and performance will be reported the

subsidiary’s separate report.

Rottneros AB report is available on web page:

https://www.rottneros.com/sustainability/

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

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 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 sensi-

tive 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 protec-

tion of nature and the development 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 new technologies.

Our business operations are based on well-established

and trusted relationships with different stakeholders.

Thus, we need to ensure that all of our business oper-

ations are transparent – from sustainable sourcing, the

production and delivery of our products, to the commu-

nication of our results to external stakeholders. We are

transparent and ethical in everything we do. In 2018 we

established a Code of Conduct for Suppliers of Arctic

Paper. In 2021 we have elaborated a new Sustainability

Policy for the entire Arctic Paper Group.

1. THIS IS ARCTIC PAPER

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 superior,

reliable and eco-friendly quality of our paper brands.

We are known for new solutions and products and the continuous extension

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.

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

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, ARCTIC

• Manufactured under the brand names Arctic Volume, G and Arctic. Used

primarily for printing books, magazines, catalogues, maps and personal-

ised 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 covers a grammage range

from 38 g/m

to 150 g/m

in two shades and is called Munken Kraft.

Since 2021 the coated packaging paper is a 1 side coated matt grade,

called G-Flexmatt.

1. THIS IS ARCTIC PAPER

Our brands and

the circular economy

The full product range of Munken

papers produced by Arctic Paper

Munkedals and papers produced

by Arctic Paper Grycksbo as well

Amber Graphic and Munken Kraft

produced by Arctic Paper Kostrzyn

were awarded a Silver Material Health

Certicate by the Cradle to Cradle

Products Innovation Institute.

The Cradle to Cradle Certied™ Mate-

rial Health Assessment Methodology is

a contextual assessment based on chem-

ical hazard identication and qualitative

exposure considerations during a prod-

uct’s manufacture, use, and end-of-use.

It means that products are made using

chemicals that are as safe as possible for

humans and the environment by leading

designers and product developers.

Our brands and

the design industry

At Arctic Paper, we learn from students

and students learn from working with

us. The Munken Agenda is a unique

annual design project, that started in

1996 For over a decade, Arctic Paper

has collaborated with different Euro-

pean Design Universities in creating

an artistic platform for exchanging our

passion for providing high-quality prod-

ucts with an eco-friendly and sustainable

footprint with creativity and conceptual

ideas by artists and designers. For 2019,

the creative idea and concept for the

Agenda were created by ve graphic

design students from NABA (Nuova

Accademia Belle Arti) in Milan, Italy. The

Munken Agenda is perceived as an inter-

esting design reference by art directors,

designers and agencies around Europe

and the world. For 2020, the concept was

created by graphic design students from

École Estienne in Paris, France followed

by Universities in London, England for

2021 and by the Academy of Fine Arts in

Warsaw in 2021 for the year 2022.

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

Markets served and

our scale of operations

95% 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 relative secure distribution and deliveries reliability. Since years our

biggest markets are Germany, Poland, Nordic countries, the Baltics, followed

by France, BeNeLux, UK and Central and Eastern European countries.

Germany

21%

Poland

16%

UK & IE

12%

Austria and Central Europe

11%

The Nordics

10%

France

The Baltics

Benelux

Outside Europe

Rest of Europe

1. THIS IS ARCTIC PAPER

Our main achievements

and projects in 2021

Arctic Paper works towards business expansion and revenue diversica-

tion 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 environment protection in our day-to-day operations.

EACH YEAR WE PLAN AND IMPLEMENT INNOVATIVE AND

EFFICIENT SOLUTIONS AMONG ALL OUR AREAS OF OPERATION.

4P Strategy – Future strategy for growth and a diverse,

carbon-neutral and renewable group – built on the ambi-

tion to grow using the synergies between the two existing

pillars paper and pulp and new investments in packaging

and energy to reach a sustainably higher protability and

resilience of the group with the aim of CO

neutral opera-

tions for Arctic Paper Group over all 4 pillars by 2035

Development of packing grades – Munken Kraft – for

sustainable replacement of plastic packages

Launch of a hydropower plant in Munkedals with an

installed power of 6 MW

Start of a solar panel farm in Kostrzyn with a capacity

up to 1MW – to increase the share of renewable energy

in total energy consumption

All grades from the Grycksbo mill including G-Print,

G-Smooth, G-Snow, Arctic Silk, Arctic Matt, Arctic

Volume White and Arctic Volume Ice are Cradle to

Cradle Certied™

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

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:

• 1,200 employees around

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 for

Suppliers

Innovation:

• Eco-friendly products,in-

novative 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

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

• Increased capex

for power pillar

• Hydropower plant

in Munkedals

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

1. THIS IS ARCTIC PAPER

1.2

Governance

and Business

ethics

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 Code of Conduct contains

clear guidelines regarding the business

behaviour of our employees, 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 those where the risks of

corruption and bribery exposure are most

signicant. Our approach to anti-corrup-

tion measures in these areas is structurally

embedded in our processes.

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

KEY PERFORMANCE INDICATOR 2021

Number of employees who participated in the Business ethics training programme

(per year)

381

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. Subse-

quently, we create a portfolio of poten-

tial suppliers and choose a strategy for

each sourcing group. We then negotiate

with a selection of suppliers, and inte-

grate 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 prac-

tice to other large purchases. The logis-

tics department has a similar purchasing

system in place.

When it comes to sales, we have set

price lists approved by our management

which are communicated to members of

our sales teams. Bonuses to members of

the sales team 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 question 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 responsibility. Since

2018, the programme covers all units

within the group. Thus, our key perfor-

mance indicator in this respect is the

number of our employees who have

attended such training.

The high target for 2022 will be reached

by implementing a training programme for

business ethics in all operations within Arctic

Paper. In order to speed up the process, the

intention is to have a training programme

in place not only for new employees, but

also for co-workers who have been with the

company for a long time.

We also aim for our employees to sign

declarations that they have familiarised

themselves with our Code of Conduct.

In 2021 our employees participated in

nano-learning in the area of business

ethics, which mainly covered corruption

and bribery topics.

1. THIS IS ARCTIC PAPER

Due to the fact that Arctic Paper S.A. is

a stock listed company, we are obliged

to follow the principles outlined in the

“Best Practice of GPW Listed Companies

2021”. A statement on current compli-

ance with the corporate governance prin-

ciples 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

countries where we operate. A large part

of those laws and regulations are uniform

across the Union, although we are vigilant

about any differences. Legal and regu-

latory compliance is a business neces-

sity, 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 2 million

PLN. With regards to legal and regula-

tory compliance, our target is to mini-

mise our risk of being sued.

KEY PERFORMANCE INDICATOR BUSINESS RELATED* NON-BUSINESS RELATED*

2021

Fine bigger than 2 m PLN 0 0

Fine smaller than 2 m PLN 0 0

*Business related legal cases are from customers. All others are dened as non-business.

Legal and regulatory compliance

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

Transparency

Arctic Paper Group is open and trans-

parent 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 interests

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

Apart from transparency in internal and

external relations, we value constant

and transparent communication with our

stakeholders, as explained in our Sustain-

ability policy. Our communication matrix

shows that we use different communica-

tion channels which help us to communi-

cate 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 is our Investors Relations

mailbox. Upon receiving a query, the

message is forwarded to the person

most competent to answer it.

CUSTOMERS EMPLOYEES SUPPLIERS SHAREHOLDERS

Environment

and Climate

• EMAS report

• “Paper Proles”

• Sustainability Policy

• EMAS report

• Sustainability policy

• EMAS report

• Code of Conduct

and Sustainability

Policy

• “Paper Proles”

• EMAS report

• “Paper Proles”

• Sustainability Policy

People • Direct communica-

tion through sales

ofces

• Code of Conduct

and Sustainability

olicy

• Intranet, widely

accessible to all

employees

• Meetings, both

one-on-one and

in groups

• Training and

education

• Whistleblowing

reporting system

• Direct commu-

nication through

purchasing

departments

• Code of Conduct

and Sustainability

• Whistleblowing

reporting system

• Our Code of

Conduct and

Sustainability Policy

Business

operations

• Direct communica-

tion through sales

ofces

• Press releases

• Meetings

• Periodic and

annual reports

• Annual meetings

and investors

meetings

• Press releases

• Code of Conduct

and Sustainability

policy

1. THIS IS ARCTIC PAPER

1. 3

Company’s structure

and management on

sustainability topics

Management Board

Sustainability Team

Group Executive Team

Managing Director

Arctic Paper

Munkedals AB.

Managing Director

Arctic Paper

Grycksbo AB.

Managing Director

Arctic Paper

Kostrzyn S.A.

Managing Director

Sales Ofces

Managers Managers Managers Managers

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

• Arctic Paper Group strives in its

operations to promote environ-

mental protection, an efcient utili-

sation of resources and energy, and

sustainable development.

• The Arctic Paper Management Board

is 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 CSR Team, consisting of

employees representing various func-

tions and positions within Arctic Paper,

holds an advisory role in the process.

• At least every two years Arctic Paper

conducts a materiality assessment

which denes the most important

topics it should contribute to.

• The demands we place on ourselves,

we pass on to our suppliers. Our

environmental thinking shall as far

as possible be the rule 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 act to maintain a good

external environment and a good

working environment. The companies

must act continuously to improve the

internal and external environment

within the framework of what is techni-

cally and economically reasonable.

• At each stage of the process, from the

purchase of raw materials for manu-

facturing through quality develop-

ment, marketing and distribution to

end customers we try to minimise our

environmental impact on water, air,

climate, ground and noise levels.

• Before a decision is made as to

new investments, new modified

processes, or major changes in

the manufacturing process, issues

relating to the working environment

and the external environment must

be assessed in the form of an envi-

ronmental impact analysis, including

energy consumption and evaluated

in collaboration with management,

authorities and employees. Envi-

ronmental factors are taken into

consideration when marketing

the Group’s products.

• Arctic Paper Group undertakes

long-term environmental planning

and monitors development 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.

ENGAGEMENT OF THE MANAGEMENT BOARD

IN THE ECONOMIC, ENVIRONMENTAL, AND SOCIAL TOPICS

1. THIS IS ARCTIC PAPER

COMPANY

SUSTAINA-

BILITY

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

2.1

Materiality

assessment

Arctic Paper’s key focus is sustainable

development in all areas where our busi-

ness 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 generations.

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 organisation should

conduct a materiality assessment.

Our three key sustainability aspects –

the Environment, People and Business

Operations – have been chosen based

on a materiality assessment that was

carried out in 2017. We constantly review

and internally validate the list of mate-

rial 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 invited our 3 main

groups of stakeholders to participate in our

CSR Survey and to share their opinions and

recommendations regarding our future

CSR activities and areas of engagement:

employees (491 respondents), clients

(24 respondents) and other stakeholders

(20 respondents), among whom were:

• 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 stake-

holders, using a scale from 1 (low impor-

tance) 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.

2. COMPANY SUSTAINABILITY

Arctic Paper Materiality Matrix

The results of the stakeholder survey and management valuation of sustainability

factors is shown in condensed form in the materiality matrix below.

11 12 13 14

10 15 16 17 18 19 20

7 TOP MATERIAL ESG TOPICS

Health and safety

of the employees

S2 Customer satisfaction 39

E1 Climate change 38

Water consumption manage-

ment and minimising water

pollution

Sustainable circular

production system

and waste management

Working conditions and

employee satisfaction

Business ethics: legal

& regulatory compliance,

anti-corruption measures,

transparency

OTHER ESG TOPICS

Training and development

possibilities

Human rights protection in

the workplace and in the

supply chain

Inuence of COVID-19

pandemic on business –

company resilience

Offering more eco- friendly,

certied products

S6 Diversity and inclusion 30

S1S2

S5 S4

E3 E2

E4 G2

IMPORTANCE TO EXTERNAL STAKEHOLDERS

IMPORTANCE TO ARCTIC PAPER – TOP MANAGEMENT PERSPECTIVE

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

KEY FINDINGS:

The fact, that Arctic Paper engages in sustainable devel-

opment activities is important 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 clients, the

company is one of the leaders in sustainable development

Almost 80% of clients state that Arctic Paper's cares about

customer satisfaction, 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

2. COMPANY SUSTAINABILITY

BASIS FOR SELECTION IMPORTANT SUBJECTS ARCTIC PAPER ACTIONS

Customers Main source

of value creation

• Environmental impact of

production and ways of

improving its efciency

• Preventing deforesta-

tion: pulp sourced from

sustainably managed

forests

• Compliance with laws

and regulations

• Meeting sustainability

goals while offering

competitive prices

• Offering more ecofriend-

ly,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 development

activities

• Support and education of

clients and end-users

• Transparent presentation

of environmental perfor-

mance, such as in the

EMAS-report

• Using pulp manufactured

from suppliers certied

by FSC

or PEFC™

• Development of new

sustainable and renew-

able products and

services

• Effective claim handling

system

• Reduction of the share

of transport with the use

of engines with standards

lower than EURO 5

• Business ethics trainings

for employees

• Meetings with customers

trial printing of new

products

Employees Key capital for our ability

to produce and sell our

products

• Environmental impact of

production and ways of

improving its efciency

• Initiatives to improve the

wellbeing of employees

• Health and safety

• Training and develop-

ment possibilities within

organization

• Communication with the

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 sponsor-

ships with local cultural

and sprts associations

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

BASIS FOR SELECTION IMPORTANT SUBJECTS ARCTIC PAPER ACTIONS

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

Authorities/NGO’s/Local

communities

Compliance with legal

obligations

• Compliance with legal

requirements

• Minimising the nega-

tive impact of business

operations

• Human rights protection

in the supply chain

• Human rights protection

in thework 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 regarding its

approach to environ-

mental issues

• Transparent reporting and

communication, both for

nancial and non-nancial

performance

• Strategy publication

• Meetings and dialogue

with investors

2. COMPANY SUSTAINABILITY

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.

People

Impact on Arctic Paper core operations

Impact on Arctic Paper value chain

• Systematic approach to health

and safety in each mill

• Annually approved action plans

for health and safety

• Occupational healthcare service

on all sites

• Rehabilitation services on offer

• Keeping a register for analysis

and prevention of accidents

• Implementation of whistlebowing

system and interactive trainings

for employees across the entire

organisation

• Implementation of Diversity Policy

• Regular performance audits for

employees (salary mapping)

• Cooperations with local and interna-

tional schools and universities in Europe

Impact on Arctic Paper value chain

WHAT ARCTIC PAPER IS DOING

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

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

• Measurement and monitoring of waste

management indicators

• Restoring sh breeding habitat in the

Munekdal river – (see 4.5 Biodiversity)

Business operations

• Responsible supply chain practices

• 4P Strategy – Power, Paper, Pulp,

Packaging – implementation of business

operations diversitcation towards carbon

footprint neutral company and invest-

ment plans for eco-friendly energy sources

including solar panel, wind farm

• 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 core operations

Impact on Arctic Paper value chain

Impact on Arctic Paper core operations

Impact on Arctic Paper value chain

2. COMPANY SUSTAINABILITY

2.3

Responsible business

For Arctic Paper Group, sustainability

is the foundation of our business: we

believe that you can't run a business

without considering the organisation’s

impact on the environment and society.

We want to leave the smallest possible

footprint, while having the greatest

possible positive impact on our stake-

holders. This is our responsibility 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 renew-

able raw materials. This is manifested in

our new Sustainability Policy which we

implemented at the end of 2021.

The Sustainability Policy presents our

approach to sustainable development.

It is based on the ESG approach and

centred around the three pillars: Environ-

ment, Social and Corporate Governance.

We are committed to making a positive

contribution to the UN Sustainable Devel-

opment Goals.

Our Sustainability Policy intends to set out

general principles for approaching ESG

(Environmental, Social and Corporate

Governance) and sustainability topics. It

sets the framework for managing these

topics within the Arctic Paper Group.

The Policy acknowledges the importance

of sustainability topics to the Arctic Paper

Group, its business model, long-term goals

and day-to-day operations. The manage-

ment rules of the ESG issues, which include

the Sustainability Policy, are the foundation

for implementing a sustainability approach

to support the company’s objectives. The

Policy has an educational role.

Arctic Paper Group’s goal is to ensure

that everyone knows and will follow the

Policy in their daily operations. In order

to make that happen, emphasis will be

placed on the education of managers

and top management. As a responsible

organisation, Arctic Paper Group takes

numerous measures to contribute to

sustainable development. This policy

breaks them down into environmental,

social and corporate governance areas.

At least every two years, Arctic Paper

S.A. conducts a materiality assessment

dening the most important topics it

should contribute to.

THE SUSTAINABILITY POLICY IS SUPPLE-

MENTED BY THE FOLLOWING POLICIES

IN PLACE AT ARCTIC PAPER GROUP:

• Code of Conduct Policy,

• Code of Conduct for Suppliers,

• Diversity Policy.

The implementation of the policies is

supported by guidelines and instruc-

tions from the management which helps

everyone within the organisation to

understand their impact and obligations.

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

2.4

Principal risk and

their management

In order to sustainably create value over the short and

long-term, we need to 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

emissions not only from our own mills but also from

our major suppliers of raw materials, energy and trans-

portation companies. We have also described the poten-

tial risks connected to climate change. Climate change

also offers an opportunity for our company in that we

can be part of the solution by offering products manu-

factured from renewable sources that can substitute for

products based on fossil-fuel sources.

Since 2020, the COVID-19 pandemic has become

a major public health emergency and has created

a new kind of global risk factor for the business envi-

ronment around the world. Everyone needs to assess

and manage the risks of COVID-19, and in particular,

businesses should consider the risks to their employees

and contractors. As an employer, Arctic Paper also has

a legal responsibility to protect its employees from risk

to their health and safety. We also need to make the

effort to assess and manage the risks of COVID-19 as

a possible serious threat to our daily business opera-

tions which may have a signicant impact on the nan-

cial condition of the Arctic Paper Group both currently

and in the future.

2. COMPANY SUSTAINABILITY

Our principal risks are explained in the table below, together with an over-

view 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 require

ments with regards to envi-

ronmental standards

• Fines from authorities

• Reputational damage

• Possible personal

responsibility

• Disruptions in operations

• Careful monitoring of envi

ronmental standards and

indicators

• Early reaction system

to changes in regulation

• Introducing efciency-im

proving technologies

Unintentional damage to the

environment

• Careful monitoring of envi

ronmental standards and

indicators

• Compliance with regula

tions and procedures

Climate change can have an

impact on the physical condi

tions for production

• Disruptions in operations

due to:

• Drought

• Flooding

• Landslide

• Malfunction in electrical

equipment

• Reputational damage

• Raw material sourcing

• Energy sourcing

• Reducing water

consumption

• Increasing water by-pass

capacity

• Improving drainage

• Plans for supply allocation

• Increasing of cooling

capacity for sensitive elec

tric 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

• Trainings and talents

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 inci

dents – from risk observa-

tion to injuries

• Improvement plans in

place for all our mills

• Dedication to a zero-injury

environment

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

RISK IMPLICATIONS MITIGATING ACTIONS TAKEN

People and

Business

operations

Limited visibility over

suppliers and their human

rights practices

• Disruptions in operations

• Reputational damage

• Financial loss

• Scrutiny over actions of

suppliers in the form of

signed declarations

• Implementation Code of

Conduct for Suppliers

Global pandemic

(ie. COVID-19)

• Implementation of policies,

building an awareness and

routines among the entire

organization in order to

protect our employees and

the operations

• Keeping and promoting

high health standards

among employees and

contractors

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 rela

tionships 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

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 material sourcing

• Energy sourcing

• Careful monitoring of

world affairs of the global

business environment

• Building long-term rela

tionships with qualied

suppliers

2. COMPANY SUSTAINABILITY

2.5

Arctic Paper’s

Partnerships

At Arctic Paper we value

our partnerships with

external partners and

see the positive impact

of such cooperations

on our company and

our employees. We are

eager to share our expe-

rience and knowledge as

a business partner and

also want to learn from

and support our partners.

We cooperate with local

communities and organi-

sation as well as industry

organisations.

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

Some of our partnerships

• The Munkedal mill has established a very close

and long-term (20-year) cooperation with the high

school focusing on the technology of the production

process. The school is situated at the mill facilities,

which means the mill is ideally positioned to offer

apprenticeship training to the students. The mill

sponsors one teaching post with extensive knowledge

in paper manufacturing. In return, the school is one of

the mill’s most important recruitment sources. Arctic

Paper Munkedals also grants a scholarship to the

student with the best exam result each year.

• Arctic Paper Grycksbo and Arctic Paper Munkedals

are members of the Swedish Forest Industry Associa-

tion (Skogsindustrierna). The Swedish Forest Industry

Association acts as a forest industry employer associ-

ation working with labour unions and various author-

ities, and as a technical institution with a focus on

supporting the industry by creating knowledge within

such areas as the environment, energy product safety,

standardisation and forestry management; presenting

this knowledge and the industrial perspective to poli-

ticians and authorities.

We actively participate in the work of the association

sitting on different committees. During 2021 Arctic

Paper was represented on the energy committee and

the environmental committée. For over a decade

Arctic Paper has held the position of chairman of the

environmental committee. In 2022, we will increase

our engagement by participating in the product

safety committee as well.

2. COMPANY SUSTAINABILITY

• In Poland, Arctic Paper Kostrzyn is an active member

of The Association of Polish Papermakers – an organ-

isation of scientic, technical and managerial qual-

ities with individual and corporate members whose

activities are connected with the paper and paper

converting industries.

• Our mills are members of various regional chambers of

commerce. Through these memberships we can create

possibilities to network with professionals from other

industries. This is a way of developing fruitful partner-

ships both for individuals and businesses by informal

learning and the exchanging of experiences.

• Arctic Paper is an active member of local communities

where our mills are situated.

We support them by sponsorship activities for sport and

cultural events, including : 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.

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

2.6

Key business

performance indicators

Arctic Paper’s approach to corporate responsibility is centred on sustaina-

bility of operations, in particular with regard to the mills. We have therefore

established a set of key business performance indicators, which are period-

ically measured and reported to management. These indicators allow us to

better understand our impact on the environment and our employees, as

well as better understand our business operations. Following this assess-

ment, we can react accordingly.

In 2021, Arctic Paper reviewed main key business performance

and set new targets for longer time perspective.

2. COMPANY SUSTAINABILITY

Environment

& Business operations

Value chain: % of pulp suppliers

who are FSC® and/or PEFC™ certied

We are aware of the fact that the envi-

ronmental 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

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 mini-

mise the cost of claims, keeping in mind

that not all complaints may be substanti-

ated. The high increase in sales revenues

is mainly due to price increases trig-

gered by the rapid and substantial price

increases in pulp, the major raw material.

Value of complaints as share (%)

of sales revenue. Sales revenue

of 2021 (in MPLN) 2,431

Target 2025 2021

HERE ARE SOME EXAMPLES OF KPI WE MEASURE. MORE DETAILED

KPI’S ARE SHOWN IN FOLLOWING CHAPTERS AND HISTORICAL DATA

ARE INCLUDED IN TABLES AT THE END OF THE REPORT.

0.50

0.36

Share of pulp suppliers who are FSC

and/or PEFC™ certied

100%

Target 2025 2021

100%

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

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 posi-

tive effect on the environment, due

to decreased emissions of pollutants,

and on our nancial performance.

* Energy sold to external partners not included.

Target of 2025 and gures for 2016-2020

are recalculated by including purchased heat.

**Biomass and hydropower

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 emer-

gencies. We also have programmes for

risk assessments. 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.

During 2021 there was an increase in

number of injuries. After the investiga-

tions we foundthat they are mainly due to

human errors. As we are very concerned

regarding the negative development

regarding number of injuries, we will

increase our focus on behavioural safety

and on preventive activities in order

to further develop our safety culture.

Lost time injuries

per million work hours

Target 2025 2021

11.3

Tonnes of paper produced

500,000

Target 2025 2021

695,000

636,613

Of which from internal energy

production based on renewable

sources** MWh/tonnes of paper

Target 2025 2021

1.1

0.36

Total net energy consumption*

(MWh/tonnes of paper)

Target 2025 2021

1.9

2.2

2. COMPANY SUSTAINABILITY

SUSTAINABLE

SUPPLY CHAIN

FOR CLIENT

SATISFACTION

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

Our business operations are based on well-established and tru-

sted relationships with different stakeholders. Therefore, we need

to ensure that all of our business operations are transparent – from

sustainable sourcing, the 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. These suppliers provide us with raw materials, chemicals, energy,

logistics and other services that enable us to serve our customers. Aside

from the sustainability of our own operations, it is crucial that we consider

the approach taken by our suppliers. We aim to choose suppliers who

can and are willing to assure us that they respect our values with regards

to People and the Environment. Our suppliers have to follow the Code of

Conduct for Suppliers 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.

From our perspective

as Arctic Paper's customer

it is important that Arctic

Paper continue to maintain

the highest product quality.

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.

3. SUSTAINABLE SUPPLY CHAIN FOR CLIENT SATISFACTION

In our paper mills, we have proce-

dures 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 infor-

mation regarding their environmental

performance so that we may make

informed purchase decisions based

on product specications and environ-

mental performance. Today the supplier

with an excess of 90 percent of purchased

value provides us with environmental

declarations, which helps us to perform

a life-cycle analysis for our products.

To ensure that our core Suppliers take

a responsible approach to their busi-

ness, we ask them to submit a specic

written report. This report is meant to

detail their environmental performance

with regards to energy consumption,

pollutants to air, water and raw materials

– in particular wood. We also ask them

for information as to whether a Code

of Conduct and a Corporate Social

Responsibility policy are in place. At the

same time, we expect our suppliers to

take note of our Code of Conduct and

Corporate Social Responsibility policy.

We wish to follow a similar approach

with regard to the rest of our suppliers.

Arctic Paper expects its suppliers

to comply with the high stan-

dards and values represented

by our organisation. From 2019

we started a procedure by which

all our suppliers are required

to comply with our Code of

Conduct for Suppliers either by

signing our Code or by the sup-

plier providing us with an equiva-

lent document. We managed to

achieve 90% compliance by the

end of 2021, with the longterm

target of all our suppliers com-

plying with the above.

Our Code of Conduct for Suppliers 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 for Suppliers 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 CSR policy which are

compatible with the Arctic Paper values

described in our Code of Conduct for

Suppliers, are asked to provide us with

a copy of the appropriate documentation.

This is equivalent to signing the Arctic

Paper Code of Conduct for Suppliers.

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

3.2.

Environmental

assessment of suppliers

and responsible sourcing

Due to the nature of our business, we devote a lot of attention to our pulp

suppliers in particular. 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.

3. SUSTAINABLE SUPPLY CHAIN FOR CLIENT SATISFACTIO

We nd it important to verify the state-

ments of our pulp suppliers, which is why

products sent over 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 proper-

ties. Third, we conduct mill trials to see

how the products behave in the produc-

tion 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 for Suppliers.

Due to Covid-19 pandemic global

restrictions and in order to keep

our employees and our suppliers’

employees safe we postponed

the planned audits. Since then

the pandemic conditons have not

changed, unfortunately, therefore

we decided to postpone the audits

again and come back to them

when the situation stabilises.

Share of core suppliers

providing existing signed

environmental declarations

100%

Target 2025 2021

100%

90%

Share of core suppliers who signed

the Code of Conduct for Suppliers

or has their own code of conduct

100%

Target 2025 2021

90% 90%

Target 2025 2021

Number of suppliers who are subject

to audits performed by Arctic Paper

to conrm compliance with the Code

of Conduct for Suppliers

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

Since 2019 in cooperation with the Book Chain Project, we have

been evaluating Arctic Paper Kostrzyn’s processes for respon-

sible 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 understanding 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 issues/

challenges. We regularly visit our supplier mills, to evaluate their

environmental performance, forest plantations and nurseries. We

follow industry analysts from Brian McClay and Hawkins Wright. We

also work with NEPCon, who share information and suggestions on

sourcing countries. Each time we request a written report on envi-

ronmental performance from our suppliers, and gather extensive

data on energy, air and water pollutants and raw materials.

OUR PURCHASING POLICY INCLUDES REQUIRE-

MENTS TO ESTABLISH FIBRE TRACEABILITY, TO

ENSURE NO PRODUCT CONTAINS CONTRO-

VERSIAL SOURCES DEFINED AS:

• Illegally harvested forest, or harvesting not

approved by the authority in question;

• Wood harvested in opposition to traditional

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 genetically

modied trees have been planted;

• Wood harvested in violation of ILO principles (Inter-

national Labour Conference 1998 – ILO Declaration

on Fundamental Principles and Rights at Work)

We believe that the

strength of our supply

chain is based on reli-

able, long-term relation-

ships with our suppliers.

We make changes in

our supplier portfolio

to improve standards in

all respects – economic,

ethical and environ-

mental. If a correction is

necessary, we are open to

re-establishing relations

with previous suppliers

once the correction has

taken place.

3. SUSTAINABLE SUPPLY CHAIN FOR CLIENT SATISFACTION

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 trans-

port on pollution and the overall condi-

tion of our environment is undeniable.

When deciding on which companies we

can entrust with transporting our prod-

ucts, we announce bids for particular

routes. Factors we take into consider-

ation when deciding on transportation

services are the quality of the documen-

tation provided, the price offered and

the impact a given transport operator

has on the environment.

Transport operations cause noise, emis-

sions 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 desti-

nation. We are focused on increasing

the percentage shares of operations

of EURO 5 and EURO 6 classes.

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

The large transportation companies that

are our main supplier of transportation

services are focused on high transporta-

tion efciency combined with an envi-

ronmental prole, thus they are continu-

ously renewing their vehicle eets which

moves the density point towards the

higher EURO classes.

Having regard to the huge

environmental effect of transpor-

tation we want to increase the

efciency of our transport chain

while reducing CO

emissions by

implementing intermodal trans-

port into our logistics process.

In 2020 and 2021 around 20% of

deliveries made from our mills to our

customers were transported as inter-

modal transport. Although our target

will be to increase intermodal transpor-

tation wherever possible, this needs to

be done in cooperation and with the

approval of our customers as intermodal

is more time-consuming and requires

different planning by both sides than

traditional truck transportation does.

Share of Euro 3

and Euro 4 engine class

100%

Target 2025 2021

0% 0%

Share of Euro 5 engine class

100%

Target 2025 2021

30%

34%

Share of Euro 6 engine class

100%

Target 2025 2021

70%

66%

THUS OUR TARGET FOR THE YEAR TO COME IS TO EMPLOY

ONLY TRUCKS WITH ENGINE CLASS EURO 5 AND ABOVE.

3. SUSTAINABLE SUPPLY CHAIN FOR CLIENT SATISFACTION

3.4.

Commitment

to client satisfaction

Actions are continuously taken to

diminish the risk of complaints. In 2019,

our technical teams from three mills

drafted a new Complaint handling proce-

dures and policy and issued General

Recommendations for handling and

accepting complaints. These documents

aim to create, from the perspective of the

sales company and customers, a predict-

able, consistent, time and cost-efcient

claims handling process.

Our customers are one of main stake-

holders of Arctic Paper.Customer

satisfaction is one of the top material

aspects of maintaining the integrity

of our operations. 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

them. Our customers pay attention to

our efforts to manage Arctic Paper as

sustainable business and their feed-

back is of high importance to us. This

way we can grow and evolve while

meeting their expectations and needs.

Our customers value our high-quality

products and innovative attitude when

providing new eco-friendly products

and solutions. For this reason, we care-

fully 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 target is to

minimise the value of complaints,

while remaining aware of the fact

that not all complaints submitted

to us are substantiated.

Value of complaints as share (%)

of sales revenue. Sales revenue

of 2021 (in MPLN) 2,431

Target 2025 2021

0.50

0.36

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

3. SUSTAINABLE SUPPLY CHAIN FOR CLIENT SATISFACTION

ENVIRON-

MENT AND

CLIMATE

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

4.1

Management

approach

Arctic Paper has along-standing and

pioneering commitment to environ-

mental and social sustainability.

We are proud of creating positive

value by enabling and encouraging

customers to use and recycle products

made mainly using renewable resources.

At the same time, we try to minimise the

negative impact of our production and

transportation services by engaging in

sustainable practices at each 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 develop-

ment 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 new strategy.

For paper and packaging, the

goal is to become carbon neutral

by 2030, and for the Group this

will be achieved by 2035.

Certications

The ISO 14001 management system is in

place at all of our mills. This guides the way

we manage our environmental responsi-

bilities at the mills, and how we work on

continuously improving them. All certi-

cates are widely available on our website.

In this report, we present the consoli-

dated environmental performance of our

three mills. The mills publish separate

EMAS-reports, where more information

on individual environmental performance

is available. In addition, more environ-

mental data regarding our products can

be found on our website, in the form of

product-specic environmental decla-

rations called “Paper Proles”. Impor-

tantly, each Paper Prole documents the

environmental impact across the whole

supply chain, as our Business operations

are highly reliant on our suppliers.

Product

Company

Mill

Information gathered from

Certified environmental management system at the Mill since Aprill 2000

Environmental Management

Company systems ensure traceability of the origin of wood

yes

100% recovered paper

Environmental parameters

Product composition

The figures are based on methods and procedures

of measurement approved by the local (or national)

environmental regulators at the production site.

The figures include both paper and pulp production.

Water COD kg/tonne

AOX k g/tonne

Tot

kg/tonne

Tot

kg/tonne

Air SO

kg/tonne

(fossil)

kg/tonne

Solid waste landfilled

BDkg/tonne

/tonne of final product kWh

Purchased electricity consumption

E-mail

Phone

(Address)

Contact

More information

Date of issue

More information about Paper P rofile can be found on www. paperprofile.com

This product contains biomass carbon equivalent

Arctic Paper Kostrzyn S.A.

PL 66-470 Kostrzyn nad Odrą

0048 95 72 10 219

grzegorz.marianczyk@arcticpaper.com

ARCTIC PAPER KOSTRZYN S.A.

ARCTIC PAPER S.A.

AMBER GRAPHIC

7,02

ISO 14001:2015

0,15

0,027

495

0,04

0,13

1,84

14.04.2021

31.12.2020 1.01.2020

185

Enviromental aspects of wood procurement 64% of FSC

and 36% of PEFC™

Grzegorz Mariańczyk

Paper Mill Information

Arctic Paper Kostrzyn S.A.

Paper Mill Environmental Declaration

Product information: Amber Graphic

Amber Graphic is a white, uncoated fine paper which is used for books, dictionaries, manuals, advertising

material, brochures and catalogues, in mono and full colour. Available in grammages from 50 to 170 g/m

The environmental data below reports only emission from the paper production and not

emission in the total production chain from forest to customers.

Mill Environmental Parameters 2020

Mill Environmental Objectives 2021

Product BAT

Description

Water Quantity

10,5 < 20 m

Water (kg/t) COD 0,27 < 1,5 kg/t

Ntot 0,093 < 0,1 kg/t

P tot 0,005 < 0,012 kg/t

Air SO

0,04 kg/t

0,56 kg/t

417 kg/t

Energy Steam 2079 kWh/t

Process 535 kWh/t

Waste Reuse 10,54 BDkg/t

Landfill 0,34 BDkg/t

Mill Environmental Objectives 2021

Decrease in steam consumption by

upgrading PM heat exchangers.

Reduction of chemical consumption by

upgrading the short PM loop.

Minimizing water consumption by

modernizing the water supply system.

Maintaining high efficiency of the water

treatmenet plant

BAT = Best available t echnique according IPPC.

All figures expressed per ton of paper

Effluent water from waste water treatment plant

For more information about environmental

o objectives see EMAS environmental

report

Technical Support Team

Arctic Paper Kostrzyn

S.A.

PL-

66 470 Kostrzyn nad Odrą, Poland

Phone: +48 95 721 556

+48 95 721 558

Mill contact:

Arctic Paper Kostrzyn S.A.

PL-

66 470 Kostrzyn nad Odrą, Poland

Phone: +48 95 721 600

Fax: +48 95 7524 133

4. ENVIRONMENT AND CLIMATE

Policies and procedures

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 improvements 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 integrated these routines and proce-

dures into our daily operations.

Our mills are also EMAS-registered, which means that

they full additional requirements, over and above ISO

14001. Among others, these include stricter rules on

how to measure and evaluate environmental perfor-

mance. The certication also means that we need to

present detailed information on our environmental

performance in EMAS reports, available on our website.

Additionally, our mill in Grycksbo has a certied system

of energy management, ISO 50001. This means that the

energy system in place at the mill follows a systematic

approach, aimed at continuously improving energy

consumption and energy efciency.

Arctic Paper does not have any forestland, hence we

do not have a direct impact on forest management and

global deforestation. We can have an indirect impact

through our pulp suppliers.

Our mills in Grycksbo, Kostrzyn, and Munkedal have

a chain of custody certicates for FSC

(Forest Stew-

ardship Council

) and the corresponding for PEFC™

(Programme for the Endorsement of Forest Certi-

cation™). This means that we can guarantee our

customers that our products come from responsible

sources. On next page we present the logos and certi-

cate numbers for our mill at Munkedal.

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

We extensively train our employees on PEFC™

and FSC

product origin control systems.

Our training is based on NEPCon materials

(NEPCon is 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.

Arctic Paper is aware of the environmental regula-

tions 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 interested in best practices

within our business, and carefully follow developments

in these areas. As an example, in the EMAS reports

we benchmark our environmental gures on emissions

to water to the Best Available Techniques (BAT) refer-

ence 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.

Taking into account our production process, we focus

our environmental efforts on four main areas selected

during our materiality assessment. These areas

will guide the next sections of this chapter: energy

consumption, CO

emissions, water consumption

and waste management. We believe that our targets,

dened in relation to production volumes, clearly

demonstrate our commitment to progress in the area

of environmental sustainability.

4. ENVIRONMENT AND CLIMATE

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 energy pillar is one of the four pillars

of Arctic Paper’s 4P Strategy published

in 2021. The shift from fossil to non-fossil

energy sources is one of the main tasks

for this planet. 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 combi-

nation with intelligent waste/bio energy

plants - all based on renewable sources.

Arctic Paper purchases energy both as

fuel (biomass and natural gas) and as

electricity (from the local power grid).

We also produce electricity at our mills

using hydropower plants (Arctic Paper

Munkedal), counter-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.

Our goal is to reduce the amount of

energy required at every stage of our

production process. Energy efciency is

of the highest importance for the paper

production cycle. We run projects for

increasing the proportion of renewable

energy sources used for our plants.

Our energetic projects and programmes

can help us to reduce greenhouse gas

emissions, decrease demand for energy

imports and drive down production costs.

Each year we initiate various

types of energy efciency

programme at all three of our

mills with the aim of reducing

their environmental impact. We

optimise and trim all installations

and machinery and continuously

evaluate our processes to

identify future investments.

2021 year was difcult as the market,

due to the COVID-19 pandemic, rapid

global increase in demand for energy

and increasing energy prices. has been

unpredictable giving a high frequency

of market-related halts in our produc-

tion process. Energy consumption

levels increase signicantly during starts

and stops of the machines without any

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

saleable production. Beside the frequent

starts and stops, the shorter order ow

also meant that the grades of paper

produced were changed more often than

usual. The paper machines also consume

more energy when changing grades.

In 2020 the construction phase for

a new hydro powerplant in Munkedal

was nished. The plant will double

the hydropower production at the mill

from 12 GWh to 25 GWh per annum.

Since January 2021 it has been running

the regular production runs a regular

production.

During 2021 the erection of solid fuel

boiler was started. The boiler is planned

to come into operation at the beginning

of Q3 2022. The new boiler is designed

to be able to handle a broad spectrum

of different solid fuels such as bark, peat,

branches, demolition wood and sorted

burnable waste such as plastic, scrap

wood, paper, textiles etc

An energy mapping of the total opera-

tion in Munkedal has been done over the

course of the year and a number of poten-

tial energy saving projects has been listed.

On the other hand, the product variety at

the mills has gradually changed into the

direction of packaging grades with higher

demands for strength thus demanding

more rening energy.

4. ENVIRONMENT AND CLIMATE

In Kostrzyn a press section in Paper

Machine no. 1 has replaced the traditional

model with a shoe press. This gave us

a signicant decrease in thermal energy

consumption and a small increase in elec-

trical energy. In addition, older reners in

the Kostrzyn mill have been replaced with

new, state-of-the-art equipment giving

improved quality and lower specic energy

consumption. In 2020 a new vacuum

equipment (turbofans) was installed.

One of the most recent projects

completed in 2021 in Kostrzyn is the

launch of a solar panel farm with

a capacity up to 1MWp, which increases

the share of renewable energy in

the mill's total energy consumption.

KEY PERFORMANCE INDICATOR TARGET

2025

2021

Total net specic energy consumption (MWh/tonne paper) 1.9 2.2

Total net energy consumption (GWh/year) 1320 1419.7

Total production of paper (in tonnes) 695,000 636,613

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.

An important project for energy saving

was the replacement of old reners with

modern energy-efcient machines.

Below you can nd 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.

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

Emissions

Carbon neutrality of business opera-

tions is one of the main determinants of

a sustainable 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

, accumulate in the atmosphere,

contributing to climate change. Emission

levels are monitored by management.

Emissions carry an environmental cost,

and they can also be associated with

considerable nancial, legal and commer-

cial 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”

Packaging pillars by 2030 and on all pillars(-

together with energy and pulp pillars) by

2035. We have been dedicated to reducing

emissions for several years. Historically,

the most important step in reducing CO

emissions was made in Kostrzyn in 2007,

when the coal boiler was replaced by

a modern natural gas boiler equipped with

gas turbines and counter-pressure steam

turbines, and in Grycksbo in 2008, when

a signicant investment in a biomass boiler

was made, making the steam generation

process at the mill fossil-free. Our new 4P

Strategy has set out a road map which will

helps us to reach our carbon neutrality

goal and increase diversication of energy

sources based on renewable sources

including: solar panels, hydropower 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

emissions by 2,784

tonne/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

emissions

by 1,575 tonne/year and by 3,725 tonne/

year, respectively.

We also encourage and help our

employees to contribute toward our

common goal of becoming a carbon

neutral business and community. We

believe that every small effort or single

change in our daily routine, which reduces

our carbon footprint, has a signicant

impact on climate. One of those small

improvements and inputs into a sustain-

able work environment is the installation of

charging stations for employees’ electric

cars at the Grycksbo mill. Employees utis-

lising bio energy for domestic heating can

also benet from a rebate agreement with

a local bio energy supplier.

Below we present our greenhouse

gas emissions levels based on Green-

house Gas Protocol (GHG Protocol)

accounting and reporting standards

to measure, quantify and manage

greenhouse gas emissions.

1 Cambridge Business English Dictionary

4. ENVIRONMENT AND CLIMATE

KEY PERFORMANCE INDICATOR (KG CO

/TONNE PAPER) TARGET

2025

2021

Direct CO

emissions 215 199

Indirect specic CO

emissions from external electricity suppliers

– 11

Indirect specic CO

emissions from our major supplier of raw material

60 78

Indirect specic CO

emissions from our transporters

35 33

Total indirect specic CO

emissions 115 122

Total specic CO

emissions – 321

Total CO

emissions (k tonnes /year) – 204

Total production of paper (in tonnes) 695,000 636,613

THE GHG PROTOCOL CORPORATE STANDARD CLASSIFIES

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 electricity

consumed by the company.

Scope 3: all other indirect emissions (not included in scope 2). This 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 rele-

vant participants in our supply chain: suppliers of raw materials

(including pulp, ller coating pigment totally covering >90% of

purchased raw material value ) and transportation companies.

1. Figures describing the average CO

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.

Figures for direct CO

emissions from 2016-2020 have been recalculated and

the contribution from externally-sold energy has been deducted. The CO

contribution from externally-sold energy is presented in the next table.

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

CONTRIBUTION FROM ENERGY

SOLD (HEAT AND ELECTRICITY)

TO EXTERNAL CONSUMERS

2021

Exported energy (GWh/year) 103

Tonne CO

per GWh 228

Tonne CO

per year 23.4

During 2021 a larger fraction of steam was

produced with imported exces heat from

another company close to our production

site at Kostrzyn mill, thus less natural gas was

consumed and this led to lower direct CO

emissions. As we are not in full control of the

amount of surplus heat from our neighbour

we have set the target based on an average

external heat delivery.

The indirect specic emissions from our

transporters are lower than in 2020 as

a consequence of higher share of intermodal

transport (combination of road and railroad

transport). This set up causes longer delivery

times, which under current pandemic circum-

stances is accepted by our customers.

It should be noted that the CO

gures from

our external sources are based on the most

recently available data. In most cases, we

used data from 2020 as not all of our external

partners were able to provide us with 2021

data at the date of publication of this report.

4. ENVIRONMENT AND CLIMATE

4.3.

Sustainable circular

production and waste

A sustainable circular production system Arctic Paper is part of an industry that is

to a large extent based on renewable wood from rationally 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 renewable raw material wood.

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

The base in the circular system is the ever grooving forest

and the renewable raw material that is fetched therefrom.

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. Pulp wood is a renewable raw

material that comes from thinning 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 certied mills.

Rottneros has its own sustainability report

at www.rottneros.com

3. PAPER MILL Arctic Paper’s three

paper mills are ISO 14000 and EMAS

certied. To minimize CO2 emis- sions,

Arctic Paper invests in sustainable energy.

Grycksbo has a completely fossil-free

energy solution. In Munkedal, similar

investments are being made in a biomass

boiler, and hydropower is expanded from

12 to 24 GWh.

4. CONSUMER Arctic Paper is a premium

manufacturer of graphic paper and

kraft paper. For customers, re- newable,

circular and recyclable raw material as

well as sustainable production are impor-

tant factors in the choice of supplier.

5. PAPER RECYCLING All Arctic Paper’s

paperboards are recyclable and part of

a circular system. A large part of all pack-

aging as well as graphic paper is recycled

and reused, for example, for the produc-

tion of newsprint and tissue.

6. BIOMASS FUEL The by products from

the pulp and paper mills, such as logging

residue, tall oil and bark, are further rened

into biomass fuels. The combustion of

biomass fuel emits carbon dioxide, which

the growing forests reabsorbs from the air

as a step of the photosynthesis cycle.

1. RAW MATERIAL 2. PULP MILL

3. PAPER MILL

6. BIOMAS FUEL 5. PAPER RECYCLING

4. CONSUMER

4. ENVIRONMENT AND CLIMATE

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 dangerous 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 manage-

ment balance year-on-year and constantly improve

waste recycling efciency.

Waste

KEY PERFORMANCE INDICATOR TARGET

2025

2021

Recycling or energy extraction (tonne/year) 6,950 5,697

Recycling or energy extraction (kg/tonne of paper) 10 8.9

Hazardous waste (tonne/year) 139 85.5

Hazardous waste (kg/ tonne of paper) 0.2 0.13

Landll (tonne/year) 139 156

Landll (kg/tonne of paper) 0.2 0.25

Total production of paper (tonnes) 695,000 636,613

Waste volume may vary

from one year to another

as the volume of gener-

ated waste to some

extend is dependent on

(re)construction and/or

scrapping projects, thus

the target is set in a long

time perspective.

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

4.4

Water

Water is an indispensable resource in the

paper production process. It is used to

slush the pulp into a 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 which 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 sepa-

rated deposit from the efuent treatment

is mixed and dewatered, and then recy-

cled as a 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 discharge water

will have on the receiving environment; in

our case the three rivers Warta, Munked-

alsälven and Grycken. It measures organic

compounds which consume oxygen

during decomposition very high levels

of oxidisable organic material may be

detrimental to aquatic life forms. As good

practise, we also monitor the quality of

our water inputs, exceeding the require-

ments set by regulators.

We have implemented a program-

me to reduce our emissions to wa-

ter at our mill in Munkedal. Part of

the programme was the installation

of a separate water purication sys-

tem for the power supply station in

order to improve our opportunities

for water recycling.

The decrease of COD level is mainly

a consequence of better oper-

ating conditions in our Kostrzyn mill.

A modernisation of the vacuum system

was conducted, replacing old water ring

vacuum pumps with turbofans, which

have had important water-saving prop-

erties. Few of the most recent initiatives

in this area include an upgrade and

improvement of the mechanical raw

water purication plant at the Grycksbo

mill and rebuilding of the water intake

piping at the Kostrzyn mill.

4. ENVIRONMENT AND CLIMATE

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 eval-

uate the impact and ecological signicance

of sludge emissions. In order to assess

the degree of environmental impact,

a selected group of sh perch - was tested.

KEY PERFORMANCE INDICATOR TARGET

2025

2021

Water consumption (m

/year) 4,865,000 5,218,369

Specic water consumption (m

/tonne of paper) 7.0 8.2

Emissions of COD to water (tonne per year) 292 308

Specic emissions of COD to water (kg/tonne paper) 0.42 0.48

Total production of paper (in tonnes) 695,000 636,613

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

them with current data. In addition, the

harvested sh were used to assess their

health and reproductive capacity, and to

develop a standardised procedure for this

that could be included as part of future

environmental monitoring programmes.

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

Due to the COVID-19 pandemic the

frequency of halts in production and

changing of grades produced has been

much higher than usual. Unfavourable

production conditions caused by the

changing market situation had a large

impact on the unit level of water consump-

tion. As the central functions in our efuent

treatment plants are based on biological

degradation of pollutants, consistent oper-

ating conditions are important for optimal

function. Due to the many starts and stops

in production and grade changes, working

conditions for the efuent treatment plants

was less favourable during 2021. Despite

this 2021 is showing a lower specic water

consumption compared to 2020 and 2019.

The specic water consumption in

Munkedal since 2019 has increased as a

consequence of the ongoing construction

of a new hydropower plant there. During

construction, a recirculation pipe for

efuent water to in-going fresh water has

been dismantled. The new hydropower

plant was put in to operation at the end of

December 2020 and since then the situa-

tion, from this perspective, has normalised.

4. ENVIRONMENT AND CLIMATE

4.5

Biodiversity

CASE STUDY:

Arctic Paper Munkedals AB has implemented Habitat

improvements in the Munkedal river. We carry out this

habitat improvement work in order to create better condi-

tions for all migratory sh.

The Munkedal river has been used for the oating of round

wood. In the 17th century all major stones were removed

from the river bed to facilitate this activity. These stones and

blocks have probably been used for construction and to

strengthen the river banks.

The Munkedal river has a naturally reproducing popula-

tions without any cultivation of juvenile salmon. The wild

salmon spawn in watercourses where the young salmon

grow for two years before they migrate as salmon smolt

(at a length of about 15 centimeters) to the sea to grow

further, returning and after a few years to their birth river

for spawning.

Salmon and seatrout fry and smolt are strongly territorial

and depend on protection in the form of stones of various

sizes. It is very important for the populations of salmon

and sea trout to nd places for shelter and to hide from

the current. It is also important that there are enough large

stones and blocks to increase the number of territories and

sites. In principle, the more stones and blocks, the more

salmon and trout can inhabit a certain area of river.

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

Larger boulders and smaller stones have

therefore been placed out in the river to

create shelter and a more irregular water

surface to protect the young salmon from

predators. Gravel beds have been created

so smaller sh can be safe when there is

less water in the river. Such gravel beds are

also the ideal substrate for the salmon to

hide their eggs in during spawning. Our

hope and aim is that this project strengthens

the salmon and seatrout population and

improves the habitat for other species living

in the Munkedal river. The increased amount

of shelter heightens the population’s resil-

ience to coping with periods of drought.

The Munkedal and Örekil rivers, which

belong to the Örekil river water system,

open in to the Nature protected Gullmars-

fjord in Munkedal municipality. The water

course is a spawning and reproduction

area for the genuine and original salmon

and seatrout populations. This salmon

population is a priority species and must

be preserved within the Örekil Natura

2000 area.

Test shing in the Munkedal and Örekil

river has been carried out annually since

the 1980s. It’s a sh conservation measure

that is used to get an idea of the sh

population in the water. The yearly control

programme consists of aquatic chemical

sampling, benthic faunal surveys and

sample shing approved by the county

administrative board. To get comparable

results, it is important that the electric

shing takes place in equal conditions

with regards to temperature, water ow

and time of the year. After being weighed

and measured, the young salmons and

seatrouts are gently released again.

4. ENVIRONMENT AND CLIMATE

PEOPLE

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

5.1

Working at Arctic Paper –

Management approach

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

inArctic Paper.

We consider our employees as our most valuable resource. We believe every

employee should be treated with respect. This is also declared in our Sustainability

Policy and in our Code of Conduct. 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 us. We believe in observing our social responsibilities 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.

Working today means agile

commitment to new conditions due

to digitalization, societal changes or

new demands from clients. We are

proud of the exibility and the

adaptation of our employees in these

fast changing and challenging times.

Michał Jarczyski

CEO Arctic Paper S.A.

5. PEOPLE

Employment structure

of Arctic Paper

TOTAL MEN WOMEN AGE<30 AGE 30-50 AGE>50

2021

Blue-collar 765 640 125 128 320 317

White-collar 401 242 159 19 204 178

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

No major reorganisations have taken place during 2021,

hence the overall workforce structure is unchanged.

Arctic Paper’s intention is to offer employees standard, permanent unlim-

ited employment agreements in our operations for the purpose of providing

employment security and stable work conditions. Only substitutes for vacan-

cies and project-hired persons have limited employment agreements.

2021

Number of permanent unlimited contracts 1166

Number of temporary contracts 35

Employee turnover rate

KEY PERFORMANCE INDICATOR TARGET

2025

2021 AVERAGE

2018-2020

Turnover <10%/year 5.8 n/a

New Hires – 53 56

Resigned – 37 54

Retired – 31 26

DEFINITION HOW WE CALCULATE THIS KPI

Annual turnover rate % =

Number of emloyees who left the company

(with permanent contracts)

(Beginning + ending number of employees) / 2

× 100

5. PEOPLE

5.2 Our employee

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 mate-

rial 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

pandemic situation. In order to meet

the needs of our employees we have

to redesign our future attitude to well-

being. We have to be more responsive

by widening the range of well-being

activities and preventative by rede-

signing work and people processes

and the work environment. We need

put more effort into understanding of

well-being needs, and encouraging our

employees to seek new activities that

can be safer and more valuable in the

new work environment.

We promote an empathetic manage-

ment 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:

• Understand the reasons why employees currently do not participate in

well-being programmes and helping them to nd new opportunities;

• Identify underlying drivers of poor employee wellness and rede-

signing 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 of work,

helping employees feel autonomous 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.

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

BENEFITS AND INITIATIVES INFLUENCING OUR

EMPLOYEES AND THEIR FAMILIES WELL-BEING

Our mills support our 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 their needs and interests.

WE SPONSOR EVENTS

AND DIFFERENT

ACTIVITIES IN THE

LOCAL COMMUNITY,

IN WHICH OUR

EMPLOYEES AND

THEIR FAMILIES ARE

ABLE TO PARTICIPATE.

OUR ACTIONS:

• Supporting local sport clubs and cultural events such as a donation for the

development and promotion of wrestling association in Kostrzyn, or the

Grycksbo mill sponsoring IBF Falun – a championship oor-ball club and ice

hockey club in Sweden;

• Organising sports competitions for employees e.g. shing competitions;

• Donating paper to schools and kindergartens;

• Co-nancing purchase of ENT- otolaryngology and head diagnostics equip-

ment by Kostrzyn mill;

• Sponsoring health benets programmes and insurance for employees at mills;

• Funding Christmas vouchers and organising Christmas celebrations with gifts

for mill employees’ children;

• Offering reduced costs vacations at summer cottages in Sweden;

• Supporting our retired employees’ organisation by co-nancing summer camp

and organising regular events

Our annual budgets for sponsorships and charity activities in 2021:

APGrycksbo: 200 thousand SEK

APKostrzyn: 54 thousand PLN

APMunkedals: 1 million SEK (including sponsorship to the school, without school support abt. 200 thousand SEK)

5. PEOPLE

Our Employees satisfaction

ENGAGEMENT METRIC ARCTICPAPER

2021

ARCTICPAPER

2019

BENCHMARK

Culture/Values 42% 31% 53%

Compensation & Rewards 21% 43% 68%

In 2016 we decided to start measuring

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 numbers of participants and

the engagement capital. After the 2019

result we faced problems in engaging

and implementing activities among our

employees. Despite the pandemic situa-

tion in 2020 and 2021, 2021 result shows

an increase in the engagement capital.

Our greatest strengths comparing

to benchmark, where we also see an

increase of satisfaction over the years,

are job search behaviour and agility

factors. Our employees seems to desire

to stay in the company, which also

our employee turn over rate shows.

ENGAGEMENT METRIC ARCTICPAPER

2021

ARCTICPAPER

2019

BENCHMARK

Job-Search Behavior* 76% 72% 63%

Agility** 45% 44% 36%

* Job search behavior refers to employees’ desire to stay with the organization, based on whether they intend to look for a new job within

a year, whether they frequently think of quitting, whether they are actively looking for a job, or have begun to take tangible steps like

sending out resumes. Responses for the job search behavior questions are reversed scored as a result, the percentage of employees

scoring favorably equals the percentage of employees who “intend to stay” or have no intention of leaving the organization.

** The organization’s ability to sense and respond to change. Work today is multi-directional, reporting lines are more complex and

markets are less predictable. Agile organizations that adapt to this new work environment through effective change management

can increase the probability of change success. Firms with high levels of agility have better nancial outcomes because they are

able to sustain engagement over time despite change.

We continuously improve our organiza-

tion and adopt quickly to new working

methods and work conditions.

We see an overall positive increase when

we measure employee perceptions of

how well the organization has estab-

lished corporate values. We will also

implement updated corporate values in

our 4P strategy framework and continue

to strive for overall recognition among

our employees. In compensation and

rewards factors we measure employees’

perception of pay fairness and recogni-

tion. We are aware of our weakness in

this area, partly in connection with the

complicated pandemic situation and we

will put more efforts in communication of

performance levels in the company.

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

KEY PERFORMANCE INDICATOR TARGET 2025 2021

Employee survey response rate 65% 65%

Overall engagement capital 55% 51%

Recruitment and talent acquisition

At Arctic Paper we know that our 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 effective 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 for promotion for current employees while

recruiting new employees

5. PEOPLE

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 remu-

neration processes;

• We remunerate employees according to their qualications and the

value they create for the company. We make employees' remunera-

tion dependent on the results achieved at work and the company's

condition. Adjustment to local conditions necessitates the use of

slightly different systems between our mills. Our employees’ remu-

neration depends on their results at work, the agreement between

the trade unions and the company’s economic situation. All condi-

tions 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 mills;

• We provide the possibilities for employee development in accord-

ance with the company's needs and the development of the compa-

ny's environment;

• We create interpersonal relationships in the company in accordance

with our company’s principles;

• We create a exible organisation with a 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 environment, which means a focus on legal certicates and

training in those positions. A crucial part is the on-boarding process

to make sure that employees can perform their tasks safely.

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

Performance conversations

We intend that every employee should have a yearly performance conversa-

tion. This will help them to 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.

KEY PERFORMANCE INDICATOR TARGET 2025 2021

Number of performance conversations 100% 48%

5. PEOPLE

5.3

Human rights

Arctic Paper Group respects and promotes international human and labour

rights. We expect the same commitment from our suppliers and subcontrac-

tors, to which we refer in the Code of Conduct for Suppliers of Arctic Paper.

• We do not allow discrimination or harassment

of any kind directed at any group: employees,

customers, suppliers.

• Our employees have the right to organise them-

selves, join associations and to negotiate with

the company.

• We do not allow 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 do not allow any form of forced labour or

other abuses.

• We offer our employees decent working condi-

tions and care about their wellbeing.

• We expect our suppliers to respect their workers’

right to form or join associations; refrain from

any form of discrimination toward employees

or their contractors and to provide a safe and

healthy work environment.

We have put measures

in place to report situ-

ations where human

rights are violated in any

way because of Arctic

Paper Group operations.

We have 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 prin-

ciples, and can seriously

affect our organisation or

a person's life or health.

Overall, we are committed

to protecting the human

rights of our employees.

At the same time, we know

that this issue also involves

other, external actors

in our value chain. This

aspect is further explained

in the “Responsible supply

chain” chapter.

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

5.4

Health and safety

Health and safety are top priority issues

for us. We are creating a work environ-

ment which prevents and minimises the

risk of injuries. We have a systematic

approach to safety at our mills. 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 part 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.

• We maintain a register of “near misses”

and accidents, where all incidents are

recorded investigated and analysed.

• We propose action plans to mitigate

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.

As we are very concerned of the nega-

tive development regarding number of

injuries, we will increase our focus on

behavioural safety and on preventive

activities in order to further develop our

safety culture.

Lost time injuries

per million work hours

Target 2025 2021

11.3

5. PEOPLE

5.5

Diversity and inclusion

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ca-

tions, experience and performance, regardless of diversity factors;

• That each of our employees is entitled to respect and equal treat-

ment 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 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.

MANAGEMENT APPROACH AND INITIATIVES

Arctic Paper Group promotes a culture of openness,

and we see diversity as a strength that helps the organ-

isation grow. It is a source of new ideas and innovation.

The key principle for us is respect for diversity. There

is no place in the company for discrimination 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 organ-

iation and we try to offer them as many opportunities as

possible to use their talents and skills.

IN 2021 WE HAVE

IMPLEMENTED

DIVERSITY POLICY

WHICH IS APPLICABLE

TO ALL EMPLOYEES

OF ARCTIC PAPER,

REGARDLESS OF THE

POSITION THEY HOLD

WITHIN THE COMPANY.

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

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, profes-

sional experience and education and who

respond to the company’s needs.

The Arctic Paper sees diversity

as a strength. It is a tool for

new ideas and innovations.

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.

Since 2018, our Management Board is

made up of a Chief Executive Ofcer and

a Chief Financial Ofcer. These functions

were entrusted to two specic persons,

irrespective of their gender, based on their

professional background and experience.

2021

Total count of Management Board 2

% of women on the Management Board 0%

% of men on the Management Board 100%

THE SUPERVISORY BOARD

OF ARCTIC PAPER S.A.

2021

Total count of Supervisory Board 5

% of women on the Supervisory Board 40%

% of men on the Supervisory Board 60%

THE MANAGEMENT BOARD

OF ARCTIC PAPER S.A.

Employment structure by gender in 2021

Men Woman

76%

24%

5. PEOPLE

TAXONOMY

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

For the rst time in this report, Arctic Paper Group discloses information

on the so-called the EU Taxonomy of environmentally sustainable activities.

Obligations related to this were introduced by Regulation (EU) 2020/852 of

the European Parliament and of the Council of 18 June 2020 on establishing

a framework to facilitate sustainable investments. Pursuant to the Commis-

sion Delegated Regulation (EU) 2021/2178, in the rst year of application,

Arctic Paper Group discloses the percentage of turnover, capital expenditure

and operating expenditure eligible for the taxonomy, without the need to

verify the Technical Eligibility Criteria, i.e. to determine what percentage of

these three values is associated with environmentally sustainable activities.

The following principles were used to calculate the percentage of turn-

over, capital expenditure (CapEx) and operational expenditure (OpEx)

eligible for the taxonomy:

Turnover

With regard to the turn-

over, the basis was the

total consolidated reve-

nues of the Arctic Paper

Group in 2021, disclosed

in the consolidated nan-

cial statement under the

item "Revenue from the

sale of paper and pulp"

described in note 10. The

numerator is assigned to

the revenue from activ-

ities qualifying for the

taxonomy.

CapEx

With regard to capital

expenditures (CapEx),

the basis was capital

expenditures settled in

the Arctic Paper Group in

individual factories and

in the headquarter. The

entire CapEx is included

in the consolidated nan-

cial statements under the

item increases in non-cur-

rent assets in note 16 and

intangible assets in note

19.The numerator has

that part of CapEx that is

for eligible activities for

the 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 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 taxonomy is assigned

to the numerator.

6. TAXONOMY

1. Percentage of taxonomy-eligible turnover

Arctic Paper Group generates revenues mainly from the production and sale of

paper and pulp. This activity is not included in the taxonomy of Annexes I and II

to the Climate Delegated Act (Commission Delegated Regulation (EU) 2021/2139).

In 2021, Arctic Paper Group identied 5 business areas, the revenues from which

qualify for systematics.

ACTIVITY TAXONOMY-ELIGIBLE CODE VALUE '000 PLN SHARE %

Transmission and distribution of electricity 4.9. 1,540.2 0.05%

Renewal of water collection, treatment and supply systems 5.2. 75.2 0.00%

Renewal of waste water collection and treatment 5.4. 35.6 0.00%

Renovation of existing buildings 7.2. 1,703.1 0,05%

Installation, maintenance and repair of energy

efciency equipment

7.3. 1,333.0 0.04%

TOTAL A 4,687.1 0.14%

ACTIVITY TAXONOMY-ELIGIBLE VALUE '000 PLN SHARE %

Turnover on activity taxonomy-non-eligible (B) 3,407,888.5 99.86%

TOTAL A + B 3,412,575.6 100.00%

2. Percentage of taxonomy-eligible

capital expenditure (CapEx)

Capital expenditure (CapEx) qualifying for the taxonomy is related to the implemen-

tation of future investment projects resulting from the adopted strategy of the Arctic

Paper Group. Most of the indicated capital expenditures relate to projects aimed at

improving the energy efciency of buildings, machines, devices and installations as

well as diversifying energy sources – ie. installation of photovoltaic farms or building

a hydropower plant, thanks to which it will be possible to systematically reduce energy

consumption, which will contribute to the reduction of greenhouse gas emissions.

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

ACTIVITY TAXONOMY-ELIGIBLE CODE VALUE '000 PLN SHARE %

Restoration of wetlands 2.1. 45.0 0.02%

Electricity generation using solar photovoltaic technology 4.1. 3,842.3 2.03%

Electricity generation from hydropower 4.5. 7,164.0 3.79%

Electricity generation from bioenergy 4.8. 22,588.9 11.95%

Transmission and distribution of electricity 4.9. 2,852.9 1.51%

Installation and operation of electric heat pumps 4.16. 45.0 0.02%

Construction, extension and operation of water collection,

treatment and supply systems

5.1. 18.0 0.01%

Renewal of water collection, treatment and supply systems 5.2. 4,250.5 2.25%

Construction, extension and operation of waste water

collection and treatment

5.3. 12,935.2 6.84%

Renewal of waste water collection and treatment 5.4. 717.5 0.38%

Collection and transport of non-hazardous waste in source

segregated fractions

5.5. 1,091.7 0.58%

Renovation of existing buildings 7.2. 3,266.1 1.73%

Installation, maintenance and repair of energy efciency

equipment

7.3. 4,971.2 2.63%

Installation, maintenance and repair of charging stations for electric

vehicles in buildings (and parking spaces attached to buildings)

7.4. 85.1 0.04%

Installation, maintenance and repair of instruments and devices

for measuring, regulation and controlling energy performance

of buildings

7.5. 182.5 0.10%

Data processing, hosting and related activities 8.1. 1,142.7 0.60%

TOTAL A – 65,198.5 34.48%

ACTIVITY TAXONOMY-ELIGIBLE VALUE '000 PLN SHARE %

CapEx on activity taxonomy-non-eligible (B) – 123,890.7 65.52%

TOTAL A + B – 189,089 100.00%

6. TAXONOMY

3. Percentage of taxonomy-eligible

operating expenses (OpEx)

The operating expenditure (OpEx) eligible for the taxonomy related to activities such

as the repair and renovation of equipment, installations and buildings. They were

related, inter alia, to with measures to improve the energy efciency of operational

processes or to reduce greenhouse gas emissions.

INCREASES IN TERMS OF VALUE '000 PLN NOTE

Tangible xed assets without assets without the right of use 163,348 16.1

Right-of-use assets 13,976 16.2

Intangible assets 11,765 19

Investment properties – –

189,089 –

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

ACTIVITY TAXONOMY-ELIGIBLE CODE VALUE '000 PLN SHARE %

Electricity generation from hydropower 4.5. 67.5 0.04%

Electricity generation from bioenergy 4.8. 846.5 0.53%

Transmission and distribution of electricity 4.9. 7,242.1 4.55%

Storage of thermal energy 4.11. 22.5 0.01%

Installation and operation of electric heat pumps 4.16. 4.5 0.00%

Cogeneration of heat/cool and power from bioenergy 4.20. 114.8 0.07%

Construction, extension and operation of water collection,

treatment and supply systems

5.1. 450.0 0.28%

Renewal of water collection, treatment and supply systems 5.2. 2,965.7 1.86%

Construction, extension and operation of waste water collection

and treatment

5.3. 630.0 0.40%

Renewal of waste water collection and treatment 5.4. 2,905.3 1.82%

Collection and transport of non-hazardous waste in source

segregated fractions

5.5. 385.7 0.24%

Composting of bio-waste 5.8. 918.0 0.58%

Material recovery from non-hazardous waste 5.9. 265.5 0.17%

Renovation of existing buildings 7.2. 1,743.8 1.10%

Installation, maintenance and repair of energy efciency equipment 7.3. 45.0 0.03%

Installation, maintenance and repair of charging stations

for electric vehicles in buildings (and parking spaces

attached to buildings)

7.4. 90.0 0.06%

Installation, maintenance and repair of instruments

and devices for measuring, regulation and controlling

energy performance of buildings

7.5. 11.3 0.01%

Data processing, hosting and related activities 8.1. 3,859.5 2.42%

TOTAL A 22,567.7 14.17%

ACTIVITY TAXONOMY-ELIGIBLE VALUE '000 PLN SHARE %

OpEx on activity taxonomy-non-eligible (B) 136,656.0 73.84%

TOTAL A + B 159,223.6 100.00%

6. TAXONOMY

ABOUT THE

REPORT

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

7.2

Contact

ARCTIC PAPER S.A.

ul. Fabryczna 1, 66-470 Kostrzyn nad Odrą, Poland

ir@arcticpaper.com

7.1

Reporting period:

the Year 2021

This report is prepared in line with the international GRI Stand-

ards at the CORE level (with reference to TCFD - Task Force on

Climate-related Financial Disclosures recommendations) and

is not a subject to additional external audit .

7. ABOUT THE REPORT

7.3.

ESG factsheet

PAPER PRODUCTION 2021 2020 2019 2018 2017

Production (ton/year) 636,613 587,364 601,564 639,073 658,645

ENERGY 2021 2020 2019 2018 2017

Electricity from grid (GWh/year) 329.3 391.0 230.8 237.7 267.7

Electricity from internal sources: hydro-

power, windpower, solar power (GWh/year)

20.6 0.264 3.4 9.4 10.1

Natural gas (GWh/year) 722.4 752.1 862.6 966.7 892.1

Bio fuels (GWh/year) 207.8 91.4 216.0 234.2 244.0

Purchased thermal energy (GWh/year) 241.3 193.9 186.5 212.6 215.0

Sold thermal energy (GWh/year) 53.1 46.7 44.7 45.4 45.8

Sold electricity (GWh/year) 49.6 71.1 71.4 59.1 63.7

Total net energy consumption (GWh/year) 1419.7 1311.6 1380.1 1547.8 1508.9

Net energy from renewable internal sources

(GWh/year)

228 91 219 234 244

Total net energy consumption (MWh/tonne

paper) – energy sold to external partners

not included

2.2 2.2 2.3 2.4 2.3

Of which from internal energy production

based on renewable sources – biomass and

hydropower (MWh/tonne)

0.36 0.16 0.36 – –

Net energy consumption for total energy

export (thermal and electric energy) (GWh/year)

103 118 109 105 109

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

EMISSIONS TO WATER AND AIR 2021 2020 2019 2018 2017

Fossile CO

(tonne/year), from our own

steam and electricity production

149,941 156,605 178,803 187,019 185,517

Fossile CO

(tonne/year), from our

own steam and electricity production,

dedicated for paper production

126,556 129,796 152,354 163,218 160,569

Direct CO

emissions kg/tonne – SCOPE 1 199 221 253 255 244

emissions from energy sold

(heat and electricity) to external consumers

(tonne CO

/year)

23,385 26,809 24,948 23,800 24,948

emissions from energy sold

(heat and electricity) (tonne/GWh)

228 228 228 228 228

Fossile CO

(tonne/year), from purchased

electricity

7,067 6,005 5,218 – –

emission factors for electricity from

grid (kg CO

/MWh) (Sweden /Poland)

8.8/709.8 8.0/719 13.3/773 – –

Indirect specic CO

emissions from

external electricity suppliers – SCOPE 2

11 10 9 – –

Indirect CO

emissions emanating from our

major supplier of raw material (tonne/year)

49,668 43,003 43,826 – –

Indirect specic CO

emissions from our

major supplier of raw material – SCOPE 3

(kg/tonne of paper)

78 73 73 – –

Indirect CO

emissions emanating

from our transporters (tonne/year)

20,941 20,861 21,894 – –

Indirect specic CO

emissions emanating

from our transporters (kg/tonne of paper)

SCOPE 3

32.9 35 36 – –

WATER 2021 2020 2019 2018 2017

Water consumption m

/year 5,218,369 5,023,811 4,997,543 5,080,163 4,962,506

Specic water consumption

/tonne of paper)

8.2 8.6 8.3 7.9 7.5

Emissions of COD to water

(tonne/year)

308 283 276 306 298

Specic emissions of COD to water

(kg/tonne of paper)

0.48 0.48 0.46 0.48 0.45

7. ABOUT THE REPORT

WASTE 2021 2020 2019 2018 2017

Recycling or energy extraction

(tonne/year)

5,697 6,663 5,851 5,572 8,417

Recycling or energy extraction

(kg/tonne of paper)

8.9 11.3 9.7 8.7 12.8

Hazardous waste (tonne/year) 85.5 269.7 117 202.2 107.1

Hazardous waste (Specic)

(kg/tonne of paper)

0.13 0.46 0.20 0.32 0.16

Landll (tonne/year) 156 113.4 149.6 146 285

Landll (specic) (kg/tonne of paper) 0.25 0.19 0.25 0.23 0.43

SUPPLIERS 2021 2020 2019 2018 2017

Share(%) of core suppliers providing

existing signed environmental declaration

90% 83% 98% 64% 75%

Share(%) of core suppliers who signed

the Code of Conduct for suppliers

90% 83% 85% n/a n/a

Numbers of suppliers who are subject

to audits performed by Arctic Paper

to conrm compliance with the Code

of Conduct for suppliers

1 3 4 n/a n/a

Share(%) of pulp suppliers

who are PEFC and/or FSC certied

100% 100% 100% 100% 100%

TRANSPORTATION 2021 2020 2019 2018 2017

Share of Euro 3 engines class (%) 0% 0% 1% 1% 3%

Share of Euro 4 engines class (%) 0% 1% 3% 6% 11%

Share of Euro 5 engines class (%) 34% 44% 47% 54% 53%

Share of Euro 6 engines class (%) 66% 55% 49% 39% 34%

Indirect CO

emissions emanating

from our transporters (ton per year)

20,941 20,861 21,894 – –

Specic indirect CO

emissions

emanating from our transporters (kg/ton)

32.9 35 36 – –

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

CUSTOMERS SATISFACTION 2021 2020 2019 2018 2017

Value of complaint as % of sales revenues 0.36 0.48 0.47 0.58 0.61

Sales revenues m PLN 2,431 2,016 2,309 2,293 2,248

HUMAN RESOURCES 2021 2020 2019 2018 2017

Worked Hours 1,770,249 1,755,076 1,835,225 1,878,369 –

Number of Lost time injuries 20 12 16 16 –

Lost time injuries per million worked hours 11.3 6.3 7.8 8.5 8.0

Total number of white collar employees 401 407 413 416 420

Total number of blue collar employees 764 774 770 807 811

Total number of white collar men employees 242 246 247 245 250

Total number of white collar women

employees

159 161 166 171 170

Total number of blue collar men employees 639 655 652 683 682

Total number of blue collar women

employees

125 119 118 124 129

Numbers of employees who participated in

business ethics training during the year

381 32 20 179 34

Employee survey response rate (absolute) 745 n/a 855 n/a 629

Employee survey response rate (%) 65% n/a 74% n/a 52%

Overall engagement capital 51% n/a 46% n/a 42%

7. ABOUT THE REPORT

EMPLOYMENT STRUCTURE TOTAL MEN WOMEN AGE<30 AGE 30-50 AGE>50

2017

Blue-collar 811 682 129 92 365 354

White-collar 420 250 170 17 223 180

2018

Blue-collar 807 683 124 106 353 348

White-collar 416 245 171 16 220 180

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 407 246 161 16 212 179

2021

Blue-collar 765 640 125 128 320 317

White-collar 401 242 159 19 204 178

2021 2020 2019 2018 2017

Number of permanent unlimited contracts 1,166 1,181 1,183 1,224 1,229

Number of temporary contracts 35 17 31 28 26

2021 2020 2019 2018 2017

Total count of Management Board 2 2 2 2 2

% of Women on the Management Board 0% 0% 0% 0% 0%

% of Men on the Management Board 100% 100% 100% 100% 100%

2021 2020 2019 2018 2017

Total count of Supervisory Board 5 5 5 5 5

% of Women on the Supervisory Board 40% 20% 20% 0% 0%

% of Men on the Supervisory Board 60% 80% 80% 100% 100%

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

KEY PERFORMANCE INDICATOR BUSINESS RELATED* NON-BUSINESS RELATED*

2021

Fine bigger than 2 m PLN 0 0

Fine smaller than 2 m PLN 0 0

2020

Fine bigger than 2 m PLN 0 0

Fine smaller than 2 m PLN 0 0

2019

Fine bigger than 2 m PLN 0 0

Fine smaller than 2 m PLN 0 0

2018

Fine bigger than 2 m PLN 0 0

Fine smaller than 2 m PLN 0 0

2017

Fine bigger than 2 m PLN 0 0

Fine smaller than 2 m PLN 0 0

*Business related legal cases are from customers. All others are dened as non-business.

7. ABOUT THE REPORT

GRI INDEX

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

DISCLOSURE

NUMBER

GRI STANDARD

TITLE

DISCLOSURE

NAME

ADDITIONAL

INFORMATION

LOCATION

IN THE REPORT

Prole disclosures

GRI 102-1 General Disclosures 2016 Name of the organization

–

Front page

GRI 102-2 General Disclosures 2016 Activities, brands,

products, and services

–

1.1 Company Overview

GRI 102-3 General Disclosures 2016 Location of headquarters

–

1.1 Company Overview

GRI 102-4 General Disclosures 2016 Location of operations

–

1.1 Company Overview

GRI 102-5 General Disclosures 2016 Ownership

and legal form

Consolidated Financial

Statement of Arctic Paper

Capital Group of 2021 –

Shareholding structure

1.1 Company Overview

GRI 102-6 General Disclosures 2016 Markets served

–

1.1 Company Overview

GRI 102-7 General Disclosures 2016 Scale of the organization

–

1.1 Company Overview

GRI 102-8 General Disclosures 2016 Information on employees

and other workers –

1.1 Company Overview,

5.1 Working at Arctic

Paper

GRI 102-9 General Disclosures 2016 Supply chain

–

3. Sustainable supply chain

for client satisfaction

GRI 102-10 General Disclosures 2016 Signicant changes

to the organization

and its supply chain

No signicant changes

in reporting period –

GRI 102-11 General Disclosures 2016 Precautionary Principle

or approach

–

2.4 Principal risk and their

management

GRI 102-12 General Disclosures 2016 External initiatives

–

1.1 Company Overview,

1.2 Governance

and Business ethics,

2.2 Our contribution to the

Sustainable Development

Goals,

2.3 Responsible business

GRI 102-13 General Disclosures 2016 Membership

of associations

–

2.5 Partnerships of Arctic

Paper’s Partnerships

Prole disclosures

GRI 102-14 General Disclosures 2016 Statement from senior

decision-maker

–

President of the Manage-

ment Board interview

GRI 102-15 General Disclosures 2016 Key impacts, risks, and

opportunities

–

2.4 Principal risk and their

management

8. GRI INDEX

DISCLOSURE

NUMBER

GRI STANDARD

TITLE

DISCLOSURE

NAME

ADDITIONAL

INFORMATION

LOCATION

IN THE REPORT

Ethics

GRI 102-16 General Disclosures 2016 Values, principles,

standards, and norms of

behaviour

–

1.1 Company Overview,

1.2 Governance and Busi-

ness ethics,

2.2 Our contribution to the

Sustainable Development

Goals,

2.3 Responsible business

GRI 102-17 General Disclosures 2016 Mechanisms for advice

and concerns about ethics –

1.2 Governance and Busi-

ness ethics,

2.3 Responsible business

Governance

GRI 102-18 General Disclosures 2016 Governance structure Consolidated Financial

Statement of Arctic Paper

Capital Group od 2021

1.3 Company’s structure

and management on

sustainability topics

GRI 102-22 General Disclosures 2016 Composition of the

highest governance body

and its committees

Consolidated Financial

Statement of Arctic Paper

Capital Group of 2021 -

Statement on the appli-

cation of the Corporate

Governance Rules

5.5 Diversity and

Inclusion

GRI 102-21 General Disclosures 2016 Consulting stakeholders

on economic, environ-

mental, and social topics

–

2.1 Materiality

assessment

GRI 102-23 General Disclosures 2016 Chair of the highest

governance body

Consolidated Financial

Statement of Arctic Paper

Capital Group od 2021

–

GRI 102-26 General Disclosures 2016 Role of highest govern-

ance body in setting

purpose, values, and

strategy

–

1.3 Company’s structure

and management on

sustainability topics

GRI 102-29 General Disclosures 2016 Identifying and

managing economic,

environmental, and social

impacts –

1.3 Company’s structure

and management on

sustainability topics,

2.1 Materiality

assessment,

2.4 Principal risk and their

management

GRI 102-31 General Disclosures 2016 Review of economic,

environmental, and social

topics

–

1.3 Company’s structure

and management on

sustainability topics

2.1 Materiality assessment,

2.4 Principal risk

and their management

GRI 102-32 General Disclosures 2016 Highest governance

body’s role in sustaina-

bility reporting

– –

GRI 102-35 General Disclosures 2016 Remuneration policies Remuneration policy of

Arctic Paper available as

a separate document on

webpage

1.3 Company’s structure

and management on

sustainability topics

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

DISCLOSURE

NUMBER

GRI STANDARD

TITLE

DISCLOSURE

NAME

ADDITIONAL

INFORMATION

LOCATION

IN THE REPORT

Stakeholders engagement

GRI 102-40 General Disclosures 2016 List of stakeholder groups

–

2.1 Materiality assessment

GRI 102-41 General Disclosures 2016 Collective bargaining

agreements

Bargaining agreements

are in place on mills level.

–

GRI 102-42 General Disclosures 2016 Identifying and selecting

stakeholders

–

2.1 Materiality

assessment

GRI 102-43 General Disclosures 2016 Approach to stakeholder

engagement

–

2.1 Materiality

assessment

GRI 102-44 General Disclosures 2016 Key topics and concerns

raised

–

2.1 Materiality

assessment

Reporting process

GRI 102-45 General Disclosures 2016 Entities included in the

consolidated nancial

statements

Consolidated Financial

Statement of Arctic Paper

Capital Group od 2021

1.1 Company Overview

GRI 102-46 General Disclosures 2016 Dening report content

and topic boundaries

–

2.1 Materiality

assessment

GRI 102-47 General Disclosures 2016 List of material topics

–

2.1 Materiality

assessment

GRI 102-50 General Disclosures 2016 Reporting period 01.01.2021 – 31.12.2021 6. About the report

GRI 102-51 General Disclosures 2016 Date of most recent

report

Previous annual report

published on March

16th 2021

–

GRI 102-52 General Disclosures 2016 Reporting cycle Annual 6. About the report

GRI 102-53 General Disclosures 2016 Contact point

–

6. About the report

GRI 102-54 General Disclosures 2016 Claims of reporting in

accordance with the GRI

Standards

GRI Standards at the

CORE level

6. About the report

GRI 102-55 General Disclosures 2016 GRI content index

–

6. About the report

GRI 102-56 General Disclosures 2016 External assurance Assurance only to the

extent required by the Act

on statutory auditors and

article. 49b paragraph. 9 of

the Act about accounting

6. About the report

8. GRI INDEX

DISCLOSURE

NUMBER

GRI STANDARD

TITLE

DISCLOSURE

NAME

ADDITIONAL

INFORMATION

LOCATION

IN THE REPORT

Specic disclosures on material topics

Material topic: Health and safety of the employees

GRI 103-1 Management Approach

2016

Explanation of the material

topic and its boundary

–

Chapter 5 People

GRI 103-2 Management Approach

2016

The management

approach and its

components

–

Chapter 5 People

GRI 103-3 Management Approach

2016

Evaluation of the

management approach

–

Chapter 5 People

GRI 403-1 Occupational Health and

Safety 2018

Occupational health

and safety management

system

–

5.4 Health and safety

GRI 403-2 Occupational Health and

Safety 2018

Hazard identication,

risk assessment, and

incident investigation

–

5.4 Health and safety

GRI 403-3 Occupational Health and

Safety 2018

Occupational health

services

–

5.4 Health and safety

GRI 403-4 Occupational Health and

Safety 2018

Worker participation,

consultation, and

communication

on occupational health

and safety

–

5.4 Health and safety

GRI 403-5 Occupational Health and

Safety 2018

Worker training

on occupational health

and safety

–

5.4 Health and safety

GRI 403-6 Occupational Health and

Safety 2018

Promotion of worker

health

–

Chapter 5 People,

5.4 Health and safety

GRI 403-7 Occupational Health and

Safety 2018

Prevention and miti-

gation of occupational

health and safety impacts

directly linked by busi-

ness relationships

–

5.4 Health and safety

GRI 403-8 Occupational Health and

Safety 2018

Workers covered by

an occupational health

and safety management

system

All workers are covered

by an occupational health

and safety management

system

5.4 Health and safety

GRI 403-9 Occupational Health and

Safety 2018

Work-related injuries

–

5.4 Health and safety

100

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

DISCLOSURE

NUMBER

GRI STANDARD

TITLE

DISCLOSURE

NAME

ADDITIONAL

INFORMATION

LOCATION

IN THE REPORT

Material topic: Customer satisfaction

GRI 103-1 Management Approach

2016

Explanation of the material

topic and its boundary

–

Chapter 3 Sustainable

supply chain for client

satisfaction,

3.4.Commitment to client

satisfaction

GRI 103-2 Management Approach

2016

The management

approach and its

components –

Chapter 3 Sustainable

supply chain for client

satisfaction,

3.4. Commitment to

client satisfaction

GRI 103-3 Management Approach

2016

Evaluation of the

management approach

–

Chapter 3 Sustainable

supply chain for client

satisfaction,

3.4. Commitment to

client satisfaction

Own measure

–

Value of complaints as

share of sales revenue

–

3.4. Commitment to

client satisfaction

Material topic: Climate change

GRI 103-1 Management Approach

2016

Explanation of the material

topic and its boundary

–

Chapter 4 Environment

and Climate

GRI 103-2 Management Approach

2016

The management

approach and its

components

–

Chapter 4 Environment

and Climate

GRI 103-3 Management Approach

2016

Evaluation of the

management approach

–

Chapter 4 Environment

and Climate

GRI 305-1 Emissions 2016 Direct (Scope 1) GHG

emissions

–

4.2 Energy and emissions

GRI 305-2 Emissions 2016 Energy indirect (Scope 2)

GHG emissions

–

4.2 Energy and emissions

GRI 305-3 Emissions 2016 Other indirect (Scope 3)

GHG emissions

–

4.2 Energy and emissions

GRI 308-1 Supplier Environmental

Assessment 2016

New suppliers that were

screened using environ-

mental criteria

–

3.2. Environmental

assessment of suppliers

and responsible sourcing

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

101

8. GRI INDEX

DISCLOSURE

NUMBER

GRI STANDARD

TITLE

DISCLOSURE

NAME

ADDITIONAL

INFORMATION

LOCATION

IN THE REPORT

Material topic: Water consumption management and minimizing water pollution

GRI 103-1 Management

Approach 2016

Explanation of the material

topic and its boundary

–

4.4 Water

GRI 103-2 Management

Approach 2016

The management

approach and

its components

–

4.4 Water

GRI 103-3 Management

Approach 2016

Evaluation of the

management approach

–

4.4 Water

GRI 303-1 Water 2018 Interactions with water

as a shared resource

–

4.4 Water

GRI 303-2 Water 2018 Management of water

discharge-related

impacts

–

4.4 Water

GRI 303-3 Water 2018 Water withdrawal

–

4.4 Water

GRI 303-4 Water 2018 Water discharge

–

4.4 Water

GRI 303-5 Water 2018 Water consumption

–

4.4 Water

Material topic: Sustainable circular production system and waste management

GRI 301-1 Materials 2016 Materials used by

weight or volume

–

4.3.Sustainable circular

production and waste

GRI 301-2 Materials 2016 Recycled input

materials used

–

4.3.Sustainable circular

production and waste

GRI 304-1 Biodiversity 2016 Operational sites owned,

leased, managed in,

or adjacent to, protected

areas and areas of high

biodiversity value outside

protected areas

–

4.3.Sustainable circular

production and waste

GRI 304-3 Biodiversity 2016 Habitats protected or

restored

–

4.5 Biodiversity

GRI 306-1 Waste 2020 Waste generation and

signicant waste-related

impacts

–

4.3.Sustainable circular

production and waste

GRI 306-2 Waste 2020 Management of

signicant waste-related

impacts.

–

4.3.Sustainable circular

production and waste

GRI 306-3 Waste 2020 Waste generated

–

4.3.Sustainable circular

production and waste

GRI 306-5 Waste 2020 Waste directed

to disposal

–

4.3.Sustainable circular

production and waste

Own measure

–

Results of test

shing for fry

–

4.5 Biodiversity

102

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

DISCLOSURE

NUMBER

GRI STANDARD

TITLE

DISCLOSURE

NAME

ADDITIONAL

INFORMATION

LOCATION

IN THE REPORT

Material topic: Working conditions and employee satisfaction

GRI 103-1 Management Approach

2016

Explanation of the material

topic and its boundary

–

Chapter 5 People

GRI 103-2 Management Approach

2016

The management

approach and

its components

–

Chapter 5 People

GRI 103-3 Management Approach

2016

Evaluation of the

management approach

–

Chapter 5 People

Own measure - Engagement capital

–

5.2 Our employee

well-being

and satisfaction

GRI 401-1 Employment 2016 New employee hires and

employee turnover

–

5.1 Working

at Arctic Paper

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 employee

well-being

and satisfaction

Material topic: Business ethics, legal & regulatory compliance, anti-corruption measures, transparency

GRI 103-1 Management Approach

2016

Explanation of the material

topic and its boundary –

1.2 Governance

and Business ethics,

2.3 Responsible business

GRI 103-2 Management Approach

2016

The management

approach and its

components

–

1.2 Governance

and Business ethics,

2.3 Responsible business

GRI 103-3 Management Approach

2016

Evaluation of the

management approach –

1.2 Governance

and Business ethics,

2.3 Responsible business

GRI 205-2 Anti-corruption 2016 Communication and

training about anti-cor-

ruption policies and

procedures

Business ethics training

includes also anti-corrup-

tion/anti-bribery topics

1.2 Governance

and Business ethics,

2.3 Responsible business

GRI 205-3 Anti-corruption 2016 Conrmed incidents of

corruption and actions

taken

No incidents conrmed

–

Own measure

–

Number of employees

completing the business

ethics programme

–

1.2 Governance and Busi-

ness ethics

Human rights protection in the workplace and in the supply chain

GRI 412-3 Human Rights Signicant investment

agreements and contracts

that include human rights

clauses or that underwent

human rights screening

–

3.1 Responsible

supply chain,

5.3 Human rights

GRI 412-2 Human rights 2016 Employee training on

human rights policies or

procedures

Business ethics training

includes also human

rights topics

1.2 Governance

and Business ethics,

5.3 Human rights

103

8. GRI INDEX

DISCLOSURE

NUMBER

GRI STANDARD

TITLE

DISCLOSURE

NAME

ADDITIONAL

INFORMATION

LOCATION

IN THE REPORT

Training and development possibilities

GRI 404-2 Training

and Education 2016

Programs for upgrading

employee skills and transi-

tion assistance programs

–

5.2 Our employee

well-being

and satisfaction

GRI 404-3 Training

and Education 2016

Percentage of employees

receiving regular perfor-

mance and career devel-

opment reviews

–

1.2 Governance

and Business ethics,

5.2 Our employee

well-being

and satisfaction

Diversity and inclusion

GRI 405-1 Diversity and Equal

Opportunity 2016

Diversity of governance

bodies and employees

–

5.5 Diversity

and Inclusion

GRI 406-1 Non-discrimination 2016 Incidents of discrimi-

nation and corrective

actions taken

No incidents conrmed

–

Social engagement

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 employee well-

being and satisfaction

104

CORPORATE SOCIAL

RESPONSIBILITY REPORT 2021

105

8. GRI INDEX