The forest has the greatest climate benefit when wood-based products replace fossil material – the substitution effect. In 2021, Holmen’s operations helped to cut the amount of fossil carbon dioxide in the atmosphere by 6.9 million tonnes. This is equivalent to 15% of Sweden’s emissions.
Holmen delivers solutions to some of the biggest challenges of our time – meeting the needs of a growing population while at the same time halting climate change. Our growing forests reduce the amount of carbon dioxide in the atmosphere. Our products bind carbon dioxide and replace fossil alternatives. Our production of hydro power, wind power and bioenergy play their part in the transition to a renewable European energy system.
At Holmen, we believe that the climate question has to be viewed holistically, across the entire system. Just like the UN’s Sustainable Development Goal 17, Partnerships for the Goals, it is through partnership and collaboration with new and existing customers and suppliers that we create the greatest climate benefit.
Holmen’s long-term, sustainable forestry contributes towards several of the climate goals of the European Green Deal, including a fossil-free, circular economy and a fossil-free, affordable and secure energy supply.
Holmen also contributes renewable energy production which is controllable, thanks to our hydro power and bioenergy. These controllable renewable energy sources, which can be stored and turned off and on, are needed as an injection when non-controllable renewable sources of energy such as wind and solar power are unable to supply electricity due to a lack of wind or sun. It is these value chains that we seek to highlight in our climate benefit reporting.
Reporting our climate benefit is a way to show how Holmen’s operations are playing their part in reducing carbon dioxide in the atmosphere and how we are helping our customers to reduce the climate footprint of their business.
At Holmen, we have been calculating and reporting climate benefit in our annual accounts since 2010. Up until now, our climate reporting has covered the increased uptake of carbon dioxide by the forests, the sequestration of carbon in wood products and the substitution effect that arises when wood products replace materials with a greater climate footprint such as steel and concrete. Last year, in 2020, we took the next step in reporting on the entire chain.
The Paris Agreement and the climate targets adopted by countries, such as the EU Green Deal (the EU taxonomy for sustainable activities, the EU Climate Strategy, the EU Forest Strategy, etc.) have increased interest in carbon reporting. At the same time, up until now Swedish forest companies have lacked, and have called for, one uniform method for calculating climate benefit.
The lack of established frameworks for calculating the substitution value – the part where forest management produces the greatest climate benefit – has led to this aspect easily being ignored in political contexts.
From 2020 years reporting and onwards, we have modified the way we report climate benefit so that our reporting from now on incorporates uptake, emissions and substitution of fossil carbon dioxide throughout the entire value chain.
We have adapted the calculation to ensure that it largely matches the way that other industry actors have started to conduct their own reporting, i.e. in line with the methodology used by the UN’s climate panel, the IPCC, plus the substitution effect.
The forest delivers the most benefit when it is put to use. It is the heart of Holmen’s sustainable business. We are part of a value chain that creates climate benefit in several areas, amounting to almost 7 million tonnes of fossil carbon dioxide equivalents in 2021. And it is clear that our greatest climate benefit comes from forest products replacing fossil alternatives.
CO2 uptake in the annual increase in the volume of standing timber in Holmen’s forests after harvest, plus CO2 stored in Holmen’s products.
Substitution, where the renewable products and the renewable energy Holmen sells replace fossil alternatives.
Holmen’s fossil emissions. Over 80% of these are generated from transport and procurement.
Holmen’s business helps to benefit our planet by reducing the amount of greenhouse gases in the atmosphere.
It is in our own interests to manage our forest sustainably while preserving robust ecosystems and as high growth as possible. This produces more renewable wood raw material while increasing the forest’ capacity to absorb carbon dioxide.
The greatest climate benefit is created, however, when our customers choose to replace fossil alternatives with renewables. This means that fossil raw materials such as oil, coal and gas can stay in the ground rather than being extracted. Therefore, Holmen has decided to invest even more in producing the products that contribute to the greatest climate benefit: wood products. The forest provides the greatest benefit when it is used and it is the power of customer choice that makes the difference.