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. We are now taking 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 2021 onwards, we are modifying the way we report climate benefit so that our reporting 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 a total of more than 6 million tonnes of carbon dioxide per year. The climate benefit created in our value chains in 2020 is reported in million tonnes CO2e below. 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, 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. 80% of these are generated from transport and production of input products.