All wood can be traced back to its origin! Guidelines for purchasing wood Holmen has applied clear guidelines for purchases of wood since 1998. These contain environmental requirements and define types of forest from which the Group does not buy wood. If the guidelines are not followed, for example if information supplied on origin is incorrect, Holmen has the right to terminate the deal without compensation. Statutory requirements In Sweden all clearcutting of more than half a hectare in area must be reported to the Swedish Forest Agency. This notification must also specify how regeneration will take place. The Swedish Forest Agency conducts spot checks to verify how the work is performed. Like the Swedish authority, in Estonia the Estonian forest management authority verifies that harvesting and regeneration are carried out correctly. Wood procurement in Sweden Holmen’s forestry is certified to both PEFCTM and FSC® (FSC-ID). Holmen Skog also applies the environmental management system ISO 14001. The forestry certifications are a way to confirm that Holmen’s forests are managed according to recognised standards that take account of environmental, production and social assets. Most of Holmen’s forests are located in northern Sweden, while its mills are in the southern and central parts of the country. The mills consequently largely source their wood through purchases from private forest owners in those parts of the country. In the past, almost all the wood from Holmen’s forests in northern Sweden was sold to local buyers. Holmen is also increasingly using this wood for its sites in central Sweden through logistic and exchange arrangements. In 2019, Holmen’s Swedish facilities consumed just over 6 million cubic metres of wood. 2,7 million cubic metres of wood was harvested from Holmen’s own forests. The harvesting was equivalent to approximately 45 per cent of the Group’s wood requirement. The table below shows how much of the wood delivered to Holmen’s mills originates from PEFCTM and FSC® (FSC-ID) forestry. Mill Workington paperboard mill Iggesund paperboard mill Hallsta paper mill Bravikens paper mill Iggesunds saw mill Bravikens saw mill Linghems saw mill Amount certified wood PEFCTM or FSC® (FSC-ID) or both) 58 % 33 % 45 % 48 % 44 % 74 % 71 % All the wood in Holmen Skog holds traceability certification (FSC-ID) (FSC® Chain of Custody) and has been subject to checks on the origin of the wood (FSC® Controlled Wood), which serve as proof that Holmen has and applies procedures to ensure that no wood derives from controversial sources, i.e. it has not been harvested illegally or in contravention of the rights of indigenous peoples, does not come from forests with high conservation value, has not been genetically modified and does not come from natural forests that have been converted into plantations. Iggesund Mill, Iggesund Sawmill, Braviken Sawmill, Linghem Sawmill, Hallsta Paper Mill and Braviken Paper Mill have their own chain-of-custody certificates under both PEFCTM and FSC®. Wood procurement in Estonia In 2019 Holmen imported approximately 190 000 cubic metres of wood via Holmen's wholly owned subsidiary Holmen Mets which purchases wood from Estonia and Latvia and transports it to its own terminals. Most of it is delivered to the Iggesund Mill. Smaller volumes also go to Hallsta Paper Mill, Braviken Paper Mill, Braviken Sawmill and external buyers. Holmen Mets is certified under the FSC® (FSC-ID) standard for Chain of Custody and Controlled Wood. Holmen considers the systems for traceability now in use in Estonia to meet exacting requirements. The state-owned forests are certified under FSC® Forest Management Standard. This is equivalent to around half the total acreage of forest land in the country. The proportion of privately owned forests certified under the forest management standard is small. The Estonian authorities have good knowledge of who owns the forests and continuously verify compliance with laws and regulations. Holmen Mets carries out spot checks on the wood bought. All of it was certified under the FSC® standard for Controlled Wood (FSC-ID). Wood procurement in the UK The paperboard mill in Workington consumed 190 000 cubic metres of wood in 2019. One-quarter of the wood comes from state-owned forests, mainly in south-west Scotland and northern England. The rest is sourced from private forest owners. The mill in Workington holds chain-of-custody certification under FSC® (FSC-ID). All wood meets the criteria for chain-of-custody certification and checks of the wood's origin.