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Valmet_AR_2025_kannet_FS.png
FINANCIAL
STATEMENTS
AND REPORT OF THE BOARD OF DIRECTORS
2025
Contents
Report of the Board of Directors 2025 ....................
Sustainability Statement ...............................................
Financial indicators ........................................................
Consolidated financial statements ............................
Consolidated statement of income .............................
Parent company statement of financial position,
FAS .....................................................................................
Signatures of Board of Directors’ Report and
Financial Statements ....................................................
Auditor’s Report .............................................................
Assurance Report on ESEF Financial Statements
Assurance Report on the Sustainability report .....
Basis of preparation .....................................................
Reporting segments and geographic
information ....................................................................
Revenue recognition ....................................................
Intangible assets and property, plant and
equipment ......................................................................
Leases .............................................................................
Net working capital ......................................................
Inventories .....................................................................
Financial assets and liabilities ....................................
9.
Derivative financial instruments ................................
Financial income and expenses .................................
Provisions .......................................................................
12.
Other current assets ....................................................
13.
Other current liabilities................................................
14.
15.
Share-based payments ................................................
16.
Employee benefit obligations .....................................
17.
Income taxes .................................................................
18.
Equity ..............................................................................
19.
20.
21.
Business combinations ................................................
22.
Financial risk management .........................................
23.
Investments in associated companies ......................
24.
Audit fees .......................................................................
25.
Contingencies and commitments ..............................
26.
Related party information ..........................................
27.
Subsidiaries ....................................................................
28.
Events after the reporting period .............................
29.
New accounting standards .........................................
VALMET  |  FINANCIAL STATEMENTS AND REPORT OF THE BOARD OF DIRECTORS 2025  |
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Report of the Board of Directors January–December 2025
Governance
Current legislation, the Company’s Articles of Association and
the rules and regulations of organizations regulating and
supervising the activities of listed companies are complied within
Valmet Oyj and Valmet Group corporate governance. Valmet
Oyj complies without deviation with the Finnish Corporate
Governance Code for listed companies. The Code is publicly
available at www.cgfinland.fi.
Corporate Governance Statement and
Remuneration Report
Valmet has published a separate Corporate Governance
Statement and a Remuneration Report for 2025 , which comply
with the recommendations of the Finnish Corporate Governance
Code for listed companies. The statements also cover other
central areas of corporate governance. The statements have been
published on Valmet’s website, separately from the Board of
Directors’ Report, at www.valmet.com/governance.
Annual General Meeting
The Annual General Meeting is the Company’s highest decision-
making body, and its tasks are defined according to the Articles
of Association and the Finnish Limited Liability Companies Act.
The Annual General Meeting decides on the adoption of the
financial statements, the distribution of profit, discharging the
members of the Board of Directors and the President and CEO
from liability, appointing the members, Chair and Vice Chair of
the Board as well as the auditor, their remunerations, and other
matters requiring a decision by the Annual General Meeting
according to the Finnish Limited Liability Companies Act that
are presented to the Annual General Meeting. The General
Meeting convenes at least once a year. The Board of Directors
convenes the Annual General Meeting.
The Board of Directors
The Board of Directors shall see to the administration of the
Company and the appropriate organization of its operations, and
ensures that the monitoring of the Company’s accounting and
asset management is arranged appropriately. The Board of
Directors monitors the Group’s activities, finances and risk
management, and its task is to promote the interests of
shareholders and the Group by ensuring the appropriate
organization of the entire Group’s governance and operations.
According to Valmet’s Articles of Association, the Board of
Directors shall include at least five (5) members and at most
eight (8) members. The term of office of Board members ends at
the end of the first Annual General Meeting following the
elections. The Annual General Meeting selects the Chair, Vice
Chair, and other members of the Board.
President and CEO
The Board of Directors selects a President and CEO for the
Company and decides on the salary and remuneration of the
President and CEO as well as other terms related to the position.
The Board of Directors monitors the work of the CEO.
The President and CEO is responsible for the Company’s daily
administration according to the instructions and regulations of
the Board of Directors. The President and CEO is responsible for
ensuring the legality of the Company’s accounting and for the
reliable organization of the Company’s asset management.
Valmet’s results in 2025
Figures in brackets, unless otherwise stated, refer to the
comparison period, i.e., the same period of the previous year.
VALMET  |  FINANCIAL STATEMENTS AND REPORT OF THE BOARD OF DIRECTORS 2025  |
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Key figures1
EUR million
2025
2024
2023
Orders received
5,216
5,837
4,955
Order backlog2
4,306
4,452
3,973
Net sales
5,197
5,359
5,532
Comparable EBITA3
620
609
619
% of net sales
11.9%
11.4%
11.2%
EBITA3
534
557
605
% of net sales
10.3%
10.4%
10.9%
Operating profit
438
449
507
% of net sales
8.4%
8.4%
9.2%
Profit before taxes
376
383
473
Profit for the period
279
281
359
Earnings per share, EUR
1.52
1.52
1.94
Adjusted earnings per share, EUR
1.82
1.93
2.28
Equity per share 2, EUR
14.03
14.15
13.93
Dividend per share, EUR
1.354
1.35
1.35
Cash flow provided by operating activities
581
554
352
Cash flow after investing activities
483
316
-181
Comparable return on capital employed (Comparable ROCE) before taxes
13.0%
12.7%
14.5%
Return on capital employed (ROCE) before taxes
10.9%
11.4%
14.2%
Return on equity (ROE)
10.7%
10.8%
14.1%
Net debt to EBITDA ratio
1.40
1.55
1.46
Gearing2
35%
39%
40%
Equity to assets ratio2
45%
44%
43%
1The calculation of key figures is presented in the section ‘Formulas for calculation of indicators’.
2At the end of period
3Earnings before interest, taxes and amortization
4Board of Directors’ proposal.
VALMET  |  FINANCIAL STATEMENTS AND REPORT OF THE BOARD OF DIRECTORS 2025  |
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Orders received
Orders received, EUR million
2025
2024
Change
Process Performance Solutions
1,500
1,446
4%
Biomaterial Solutions and Services
3,716
4,392
-15%
of which biomaterial services
1,948
1,915
2%
Total
5,216
5,837
-11%
Orders received by segment, %
43980465238824
Orders received decreased 11 percent to EUR 5,216 million
(EUR 5,837 million) in 2025. The decrease mainly reflects the
comparison period, during which a landmark pulp mill order
valued at over EUR 1 billion was recorded.
Orders received remained at the previous year's level in the
Process Performance Solutions segment and decreased in the
Biomaterial Solutions and Services segment.
Organically orders received decreased 9 percent.
Organic growth in orders received1
2025
Process Performance Solutions
4%
Biomaterial Solutions and Services
-14%
of which biomaterial services
4%
Total
-9%
1Indicative only. The impacts from foreign currency fluctuations are calculated by
translating the current-year period's reported key figures into euro amounts using
the exchange rates in effect for the comparable period in the previous year.
In 2025 Valmet received the following notable orders:
Process Performance Solutions:
• an advanced process analytical solutions to Dow’s Path2Zero
project, supporting net-zero emissions goals for ethylene
cracking,
• strategic agreement to deliver valve services to Petrobras
in Brazil,
• a Valmet DNA distributed control system to a bio-based
process plant in Portugal,
• a mission-critical automation solution for a hydrogen fuel cell
power facility in South Korea, and
• advanced, mission-critical automation for the new Polarstern,
a next-generation polar research vessel.
Biomaterial Solutions and Services:
• Valmet’s largest-ever energy order for BEW’s biomass power
plant in Berlin, including extensive service agreements,
• state-of-the-art tissue line to Sofidel America, which is the
largest full-scope tissue delivery in Valmet’s history,
• advancing circularity with a biomass boiler and flue gas
handling to a customer in Sweden,
• key pulp mill technology including cooking and fiberline, a
recovery boiler, and ash crystallization to a new pulp
production line to a customer in China, and
• a major paper machine rebuild to Sylvamo in North America.
Order backlog
As at December 31,
Order backlog, EUR million
2025
2024
Change
Total
4,306
4,452
-3%
Order backlog amounted to EUR 4,306 million at the end of year
2025 and was at the same level as at the end of 2024.
Approximately 15 percent of the order backlog relates to the 
Process Performance Solutions segment and 85 percent to the
Biomaterial Solutions and Services segment (at the end of 2024,
15% and 85% respectively). Approximately EUR 3.1 billion of the
order backlog is currently expected to be realized as net sales
during 2026 (at the end of 2024, approximately EUR 3.1 billion
was expected to be realized during 2025).
Net sales
Net sales, EUR million
2025
2024
Change
Process Performance Solutions
1,481
1,437
3%
Biomaterial Solutions and Services
3,716
3,922
-5%
of which biomaterial services
1,856
1,900
-2%
Total
5,197
5,359
-3%
Net sales by segment, %
43980465239020
Net sales remained at the previous year’s level EUR 5,197 million
(EUR 5,359 million) in year 2025.  Net sales remained at the
previous year's level in the Process Performance Solutions
segment and decreased in the Biomaterial Solutions and Services
segment.
Organically net sales remained at the previous year's level.
Organic growth in net sales 1
2025
Process Performance Solutions
3%
Biomaterial Solutions and Services
-4%
of which biomaterial services
-1%
Total
-2%
1Indicative only. The impacts from foreign currency fluctuations are calculated by
translating the current-year period's reported key figures into euro amounts using
the exchange rates in effect for the comparable period in the previous year.
VALMET  |  FINANCIAL STATEMENTS AND REPORT OF THE BOARD OF DIRECTORS 2025  |
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Organic growth
Orders received
Net sales
Organic growth 1
-9%
-2%
Mergers and acquisitions
1%
1%
Changes in foreign exchange rates2
-2%
-2%
Total change
-11%
-3%
1 Indicative only.
2 2025 orders received and net sales in euro calculated by applying 2024 average
exchange rates to the functional currency orders received and net sales values
reported by entities.
In 2025 Valmet's orders received decreased organically by 9
percent while net sales decreased organically by 2 percent.
Valmet completed the acquisition of Process Gas
Chromatography business from Siemens (now Analyzer Products
and Integration) on April 2, 2024. Valmet also closed the
agreement to acquire majority shares in FactoryPal, an
undertaking of Körber, on August 1, 2024, and completed the
acquisition of Demuth, a provider of wood handling technology
and services on August 2, 2024. The acquisitions increased
Valmet's orders received and net sales by 1 percent.
Foreign exchange rate changes decreased Valmet’s orders
received by 2 percent and net sales by 2 percent. Foreign
exchange rate impacts on orders received were mainly due to
US dollar, Brazilian real and Canadian dollar, and the impacts on
net sales were mainly due to US dollar, Brazilian real and
Swedish krona.
Comparable EBITA
Comparable EBITA, EUR million
2025
2024
Change
Process Performance Solutions
290
255
14%
% of net sales
19.6%
17.7%
1.8 pp
Biomaterial Solutions and Services
381
403
-5%
% of net sales
10.3%
10.3%
0.0 pp
Other
-51
-49
4%
Total
620
609
2%
% of net sales
11.9%
11.4%
0.6 pp.
In 2025, Valmet’s comparable earnings before interest,
taxes and amortization (Comparable EBITA) remained
at previous year’s level and amounted to EUR 620
million, corresponding to 11.9 percent of net sales
(EUR 609 million and 11.4%). The margin increase was
supported by cost savings from the operating model
renewal.
Items affecting comparability amounted to EUR -85 million
(EUR -53 million). The change was mainly related to
restructuring expenses of the operating model renewal.
Comparable EBITA of the Process Performance Solutions
segment increased 14 percent to EUR 290 million, corresponding
to 19.6 percent of the segment’s net sales (EUR 255 million and
17.7%). The increase in margin was driven by solid commercial
execution, operating model efficiencies, and improved
performance in the acquired operations following their
integration into Valmet.
Comparable EBITA of the Biomaterial Solutions and Services
segment decreased to EUR 381 million in 2025, corresponding to
10.3 percent of the segment's net sales (EUR 403 million and
10.3%). Comparable EBITA decreased due to lower net sales, but
operating model efficiencies supported the margin development
of the segment.
Comparable EBITA margin, 2025
52226802319448
Comparable EBITA, 2025 (million EUR)
(excl. Other)
52226802319469
VALMET  |  FINANCIAL STATEMENTS AND REPORT OF THE BOARD OF DIRECTORS 2025  |
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Segments and business areas
Process Performance Solutions Segment
Process Performance Solutions delivers flow control technologies
and automation systems ranging from individual measurements
to full plant-wide solutions, complemented by lifecycle services. It
serves a global customer base of broad range of industries with
mission-critical solutions that enhance resource efficiency,
operational reliability, and financial performance. Its strategic
mission is to unlock resource efficiency, with a target EBITA
margin of 20% by 2030.
Business developments in 2025
Process Performance
Solutions
2025
2024
Change
Orders received (EUR million)
1,500
1,446
4%
Flow Control
798
763
5%
Automation Solutions
702
683
3%
Net sales (EUR million)
1,481
1,437
3%
Flow Control
788
791
0%
Automation Solutions
694
646
7%
Comparable EBITA
(EUR million)
290
255
14%
Comparable EBITA, %
19.6%
17.7%
1.8 pp.
Orders received by the Process Performance Solutions segment
remained at the previous year’s level (organically +4%) and
amounted to EUR 1,500 million (EUR 1,446 million) in the
financial year 2025. Orders received remained at the previous
year's level in both Flow Control and Automation Solutions.
Orders received of Analyzer Products and Integration (which was
integrated into Valmet on April 2, 2024), amounted to EUR 144
million (EUR 93 million).
Net sales for the segment remained at the previous year’s level
(organically +3%) at EUR 1,481 million (EUR 1,437 million) in
2025. Net sales increased in Automation Solutions and remained
at the previous year's level in Flow Control.
Comparable EBITA of the segment increased to EUR 290 million,
corresponding to 19.6 percent of the segment’s net sales
(EUR 255 million and 17.7%).
The increase in margin was driven by solid commercial
execution, operating model efficiencies, and improved
performance in the acquired operations following their
integration into Valmet.
The comparable EBITA of the segment corresponded to
47 percent of Valmet’s comparable EBITA (42%).
Orders received by Business Area, 2025
43980465218387
Long-term development of orders received, Process Performance Solutions (million EUR)
43980465111345
VALMET  |  FINANCIAL STATEMENTS AND REPORT OF THE BOARD OF DIRECTORS 2025  |
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Biomaterial Solutions and Services
Segment
Biomaterial Solutions and Services serves global producers across
the pulp, paper, packaging, tissue, and bioenergy industries. It
provides complete production lines and key process islands,
complemented by a full range of lifecycle services. These
solutions enable improvements in fiber yield, energy and water
efficiency, emissions, and operational uptime. Its strategic
mission is to advance circularity, with a target EBITA margin of
14% by 2030.
Business developments in 2025
Biomaterial Solutions and
Services
2025
2024
Change
Orders received (EUR million)
3,716
4,392
-15%
Pulp, Energy and Circularity
1,536
2,250
-32%
Packaging and Paper
1,368
1,462
-6%
Tissue
812
679
20%
of which biomaterial services
1,948
1,915
2%
Net sales (EUR million)
3,716
3,922
-5%
Pulp, Energy and Circularity
1,610
1,541
5%
Packaging and Paper
1,483
1,793
-17%
Tissue
622
588
6%
of which biomaterial services
1,856
1,900
-2%
Comparable EBITA
(EUR million)
381
403
-5%
Comparable EBITA, %
10.3%
10.3%
0.0 pp.
Orders received in the financial year 2025 by the Biomaterial
Solutions and Services segment decreased 15 percent (organically
-14%) to EUR 3,716 million (EUR 4,392 million).
Orders received increased in the Tissue business area and
decreased in the Pulp, Energy and Circularity and Packaging and
Paper business areas. Orders received in biomaterial services
remained at the previous year’s level (organically +4%) at
EUR 1,948 million (EUR 1,915 million).
Net sales for the segment decreased 5 percent (organically -4%)
and amounted to EUR 3,716 million (EUR 3,922 million).
Net sales in biomaterial services remained at the previous year’s
level (organically -1%) at EUR 1,856 million (EUR 1,900 million).
The comparable EBITA of the segment decreased to EUR 381
million, corresponding to 10.3 percent of the segment's net sales
(EUR 403 million and 10.3%). Comparable EBITA decreased due
to lower net sales, but operating model efficiencies supported the
margin development of the segment.
The comparable EBITA of the segment corresponded to
61 percent of Valmet's comparable EBITA (66%).
Orders received by Business area, 2025
43980465236856
Long-term development of orders received, Biomaterial Solutions and Services (million EUR)
43980465111207
VALMET  |  FINANCIAL STATEMENTS AND REPORT OF THE BOARD OF DIRECTORS 2025  |
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Operating profit
Operating profit for the financial year 2025 was EUR 438 million
corresponding to 8.4 percent of net sales (EUR 449 million and
8.4%).
Net financial income and expenses
Net financial income and expenses amounted to EUR -62 million
(EUR -65 million) in 2025.
Profit before taxes and earnings per share
Profit before taxes was EUR 376 million (EUR 383 million) in
2025. The profit attributable to owners of the parent was
EUR 280 million (EUR 280 million), corresponding to earnings
per share (EPS) of EUR 1.52 (EUR 1.52). Adjusted EPS was
EUR 1.82 (EUR 1.93).
Return on capital employed (ROCE) and
return on equity (ROE)
In 2025 comparable return on capital employed (comparable
ROCE) before taxes was 13.0 percent (12.7%) and return on
capital employed (ROCE) before taxes 10.9 percent (11.4%).
Return on equity (ROE) for the corresponding period was
10.7 percent (10.8%).
Cash flow and financing
Operating Cash Flow
Cash flow provided by operating activities amounted to EUR 581
million (EUR 554 million) in 2025.
Comparable cash conversion ratio remained at a good level at
94 percent (91%) in 2025, in-line with Valmet's long-term
average. Valmet's average comparable cash conversion ratio
2015–2024 was 92 percent.
Cash conversion ratio – calculated from the reported EBITA –
was 109 percent (100%) in the financial year. Valmet's average
cash conversion ratio 2015–2024 was 96 percent.
Net working capital
Net working capital amounted to EUR 29 million (EUR 134
million) at the end of the reporting period.
The change in net working capital in the statement of cash flows
was EUR 39 million (EUR 61 million) in the financial year 2025.
Cash flow after investing activities
Cash flow after investing activities totaled EUR 483 million
(EUR 316 million) in 2025.
The increase in 2025 compared to the previous year mainly
reflects the acquisition‑related cash outflows recorded in 2024,
which reduced cash flow after investing activities in that year.
Dividends paid in 2025
In compliance with the resolution of the Annual General
Meeting, on April 8, 2025, Valmet paid out the first installment of
dividend for year 2024, EUR 125 million, corresponding to EUR
0.68 per share. The second installment, EUR 0.67 per share and in
total EUR 123 million, was paid on October 7, 2025.
Valmet’s dividend policy is to pay out at least 50% of the profit
for the period as dividend. The dividend payout ratio for 2024
was 89%.
Debt, gearing and liquidity
At the end of 2025, net debt to EBITDA ratio was 1.40 (1.55),
gearing 35 percent (39%), and equity-to-assets ratio was
45 percent (44%).
Interest-bearing liabilities amounted to EUR 1,461 million
(EUR 1,544 million), and net interest-bearing liabilities totaled
EUR 904 million (EUR 1,032 million) at the end of the reporting
period.
On December 12, 2025, Valmet completed its first Schuldschein
loan transaction, amounting to EUR 375 million. The transaction
strengthens Valmet’s long-term debt structure, diversifies
funding sources and broadens Valmet’s debt investor base. The
loan consists of 11 tranches with both fixed and floating interest
rate structures and offers a diversified maturity profile of three,
five, seven and ten years, with an average maturity of nearly six
years. At the end of the reporting period, EUR 281 million of the
Schuldschein loan transaction was outstanding.
The average interest rate of Valmet's total debt was 3.4 percent
(4.0%) and average maturity of non-current debt including
current installments was 3.3 years (3.4) at the end of December.
Lease liabilities have been excluded from calculation of these two
key performance indicators.
Valmet’s liquidity was strong at the end of the reporting period,
with cash and cash equivalents amounting to EUR 535 million
(EUR 482 million) and other interest-bearing assets totaling
EUR 22 million (EUR 30 million). Valmet's liquidity was secured
with a committed multi-currency revolving credit facility of EUR
450 million, which was undrawn at the end of the reporting
period. Liquidity was additionally secured by an uncommitted
commercial paper program worth EUR 300 million, of which
EUR 10 million was outstanding at the end of the reporting
period.
VALMET  |  FINANCIAL STATEMENTS AND REPORT OF THE BOARD OF DIRECTORS 2025  |
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Capital expenditure
In the financial year 2025, gross capital expenditure (excluding
business combinations and right-of-use assets) totaled EUR 103
million (EUR 107 million), and represented 2.0 percent (2.0%) of
net sales.
Acquisitions and divestitures
Valmet made no acquisitions or divestitures during the financial
year 2025.
On December 22 Valmet announced it has entered into an
agreement to acquire Severn Group, a well-established industrial
valve company, from Bluewater, a UK-based private equity firm.
Severn serves process industries globally and delivers specialized
flow control solutions across the most demanding applications.
The acquisition is estimated to be completed during the second
quarter of 2026, subject to customary closing conditions. When
completed the acquisition will strengthen Valmet’s Process
Performance Solutions segment and Flow Control business area.
Severn’s net sales in 2025 are estimated to amount to
approximately EUR 215 million, with an EBITDA margin of
around 16 percent
Research and development
Valmet’s research and development (R&D) expenses in 2025
amounted to EUR 126 million, i.e. 2.4 percent of net sales
(EUR 123 million and 2.3%). Research and development work is
carried out predominantly in Finland and Sweden, within the
business areas’ R&D organizations and pilot facilities. In
addition, research and development takes place within a network
of customers, suppliers, research institutes and universities. In the
end of 2025, R&D employed 542 (564) people.
Valmet’s R&D work is based on customers’ needs, such as
improving production and resource efficiency, maximizing the
value of raw materials, providing new revenue streams, and
developing new innovations and technologies.
Valmet develops competitive, leading production and
automation technologies and services. To enhance raw material,
water and energy efficiency in its customers’ production
processes, Valmet combines digitalization, process technology,
flow control, automation systems and services. Valmet also
develops solutions for replacing fossil materials with renewable
ones and for producing new high-value end products.
Structural changes
On March 31, 2025, Valmet announced plans to renew its
operating model and on June 4, 2025, announced its new strategy
'Lead the Way' and confirmed the new operating model to
become effective on July 1, 2025. Valmet estimated that the
corresponding annual gross cost savings would be approximately
EUR 80 million, with full run-rate achieved by the beginning of
2026.
By the end of the year, the company realized approximately EUR
35 million in related cost savings, including approximately EUR
20 million in the fourth quarter and the targeted annual cost
savings run-rate was reached. The associated change negotiations
have been concluded in all countries.
Since July 1, 2025, Valmet consists of two reportable segments:
Process Performance Solutions, and Biomaterial Solutions and
Services. In addition, Valmet established a Global Supply unit,
which targets EUR 100 million of cost efficiencies by 2030 by
optimizing procurement, logistics, and manufacturing activities
across the Biomaterial Solutions and Services segment.
Changes in Valmet’s Executive Team
In 2025, Valmet renewed its operating model to reinforce
accountability, and high performance. The new organizational
structure and Executive Leadership Team became effective on
July 1, 2025.
On July 23, 2025, Valmet announced the appointment of Jon
Jested‑Rask as Executive Vice President, Tissue Business Area,
effective August 1, 2025. With this appointment, the new
Executive Leadership Team was fully established.
Valmet's Executive Leadership Team, as of December 31, 2025,
consists of the following members:
• Thomas Hinnerskov, President and CEO
• Katri Hokkanen, CFO
• Emilia Torttila-Miettinen, EVP Automation Solutions
• Simo Sääskilahti, EVP Flow Control
• Petri Rasinmäki, EVP Packaging and Paper
• Sami Riekkola, EVP Pulp, Energy and Circularity
• Jon Jested-Rask, EVP Tissue
• Aki Niemi, EVP Global Supply
• Celso Tacla, EVP Latin America
• Xiangdong Zhu, EVP China Chair
• Anu Pires, EVP People, Communications and Culture
• Olli Hänninen, EVP Strategy and Transformation
• Rasmus Oksala, EVP Legal, and General Counsel
Personnel
As at December 31,
Personnel by geographical area
2025
2024
Change
North America
2,316
2,474
-6%
Latin America
1,630
1,542
6%
EMEA
10,565
11,188
-6%
China
2,283
2,388
-4%
Asia-Pacific
1,693
1,718
-1%
Total
18,487
19,310
-4%
The number of personnel at the end of December was 18,487
(19,310). The decrease mainly reflects the operating model
renewal.
During the financial year 2025, Valmet employed an average of
18,982 people (19,297).
Personnel expenses totaled EUR 1,395 million (EUR 1,393
million) in the financial year 2025, of which wages, salaries and
remuneration amounted to EUR 1,101 million (EUR 1,101
million).
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Geographical areas
Orders received
Orders received, EUR million
2025
2024
Change
North America
1,685
1,311
29%
Latin America
472
1,638
-71%
EMEA
2,026
1,735
17%
China
613
418
47%
Asia-Pacific
420
735
-43%
Total
5,216
5,837
-11%
Measured by orders received, the top three countries in the
financial year 2025 were the USA, China and Germany, which
together accounted for 44 percent of total orders received.
Net sales
Net sales, EUR million
2025
2024
Change
North America
1,341
1,390
-4%
Latin America
866
545
59%
EMEA
1,876
2,033
-8%
China
540
723
-25%
Asia-Pacific
574
668
-14%
Total
5,197
5,359
-3%
In the financial year 2025, the top three countries were the USA,
Brazil and China, which together accounted for 46 percent of
total net sales.
Business model and value creation
Valmet is a global developer and supplier of lifecycle solutions
and services for biomaterial and energy industries, driving
circular transformation. Valmet’s process performance solutions
serve a wide base of diverse industries providing automation and
flow control solutions and enhancing resource efficiency.
Valmet works with customers across the full lifecycle of industrial
assets, from new equipment and system deliveries to upgrades,
rebuilds and ongoing services. A large global installed base of
Valmet equipment and systems creates recurring service and
automation revenue and supports long-term customer
relationships.
Valmet’s technologies and services improve customers’
production performance, energy and raw material efficiency, and
environmental footprint, while ensuring safe and reliable
operations. The portfolio focuses on solutions that enhance
productivity, extend asset lifetimes and increase the value of
customers’ end products.
Long-term value creation is supported by key intangible assets,
including technological expertise, intellectual property, brand
and customer relationships. Valmet holds approximately 1,500
patented inventions and employs more than 18,000 people
globally, whose expertise plays a key role in value creation.
Strategic goals and their implementation
On June 4, 2025, in connection with its Capital Markets Day,
Valmet announced its new strategy, ‘Lead the Way’, and
published new 2030 financial targets.
The new strategy is designed to create an accountable high-
performance culture and accelerate the growth trajectory towards
bolder targets with increased cost competitiveness. During the
strategy renewal Valmet defined its purpose as ‘Transforming
industries towards a regenerative tomorrow’. The new strategy,
‘Lead the Way’, is based on four strategic fundamentals:
Customer success, Lifecycle commitment, Global
competitiveness, and Accountability.
These strategic fundamentals are being reinforced by Valmet's
operating model renewal, announced on March 31, 2025, and
effective since July 1, 2025. The new operating model allows the
company to operate with strong business areas close to
customers, providing integrated expertise in services and
technology. A newly formed Global Supply unit for
manufacturing and procurement will centrally drive operational
excellence and ensure cost competitiveness.
Valmet has set two distinct strategic missions and sets of strategic
priorities for two segments within the company.
Process Performance Solutions segment consists of two business
areas: Flow Control and Automation Solutions. Strategic mission
for the segment is Unlocking resource efficiency.
The segment has three strategic priorities:
• Leading lifecycle value, reliability and customer experience
• Customer-focused innovation and strategic portfolio
expansion
• Growth in high-quality technologies and digital capabilities in
mission-critical solutions
By 2030, the segment seeks to accelerate organic growth to over
double the market rate and reach 20 percent Comparable EBITA
margin.
Biomaterial Solutions and Services segment consists of three
business areas: Pulp, Energy and Circularity; Packaging and
Paper; and Tissue. The strategic mission for the segment is
Advancing circularity.
The Biomaterial Solutions and Services segment has three
strategic priorities:
• Seamless lifecycle approach to grow in services and technology
• Continuous innovation with customers, leading the way
towards circularity
• Relentless drive for product cost competitiveness.
The new Global Supply unit targets EUR 100 million of cost
efficiencies by optimizing procurement, logistics, and
manufacturing activities across the full Biomaterial Solutions and
Services segment.
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By 2030, the segment seeks to double the organic growth in
biomaterial services to 8 percent and reach 14 percent
Comparable EBITA margin.
Valmet's 2030 financial targets are the following:
Financial targets
• Organic net sales growth (CAGR) over the cycle of 5%
• Comparable EBITA margin of 15%
• Comparable return on capital employed before taxes (Comparable
ROCE) of 20%
• Gearing below 50%
Shares and shareholders
Development of Valmet's share price.svg
Share capital and share data 1
2025
2024
2023
Share capital, December 31, EUR
140,000,000
140,000,000
140,000,000
Number of shares, December 31:
Number of outstanding shares
184,232,430
184,165,347
184,161,105
Treasury shares held by the Parent Company
297,175
364,258
368,500
Total number of shares
184,529,605
184,529,605
184,529,605
Average number of outstanding shares
184,203,699
184,159,071
184,151,827
Trading volume on Nasdaq Helsinki Ltd.2
85,571,314
108,778,549
103,147,588
% of total shares for public trading
46
59
56
Earnings per share, EUR
1.52
1.52
1.94
Earnings per share, diluted, EUR3
1.52
1.52
1.94
Adjusted earnings per share, EUR
1.82
1.93
2.28
Dividend per share, EUR
1.354
1.35
1.35
Dividend, EUR million
2494
249
249
Dividend payout ratio
89%4
89%
70%
Effective dividend yield
4.8%4
5.8%
5.2%
Price to earnings ratio (P/E)
18.7
15.4
13.5
Equity per share, EUR
14.03
14.15
13.93
Highest share price, EUR
32.15
30.11
32.99
Lowest share price, EUR
21.00
21.37
19.64
Volume-weighted average share price, EUR
27.27
25.03
26.35
Closing price on the final day of trading, EUR
28.33
23.33
26.11
Market capitalization, December 31, EUR million
5,228
4,305
4,818
1 The formulas for calculation of the figures are presented in the section ‘Formulas for Calculation of Indicators´.
2 In addition to Nasdaq Helsinki Ltd, Valmet’s shares are also traded on other marketplaces, such as CBOE DXE, Turquoise, BATS, Frankfurt and Chi-X. A total of approximately
46 million Valmet shares were traded on these five alternative marketplaces in 2025. (Source: www.valmet.com/investors/valmet-share/trading-volumes/).
3 As Valmet currently has no dilutive instruments outstanding, diluted earnings per share is the same as basic earnings per share.
4 Board of Directors’ proposal.
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Largest shareho lders on December 31, 2025
Shares
% of share
capital
1
Oras Invest Ltd
19,200,000
10.40%
2
Solidium Oy
18,640,665
10.10%
3
Capital Group
7,436,278
4.03%
4
Swedbank Robur Fonder
7,029,204
3.81%
5
Varma Mutual Pension Insurance
Company
6,422,768
3.48%
6
Vanguard
6,267,625
3.40%
7
Ilmarinen Mutual Pension Insurance
Company
6,261,818
3.39%
8
BlackRock
4,689,001
2.54%
9
Dimensional Fund Advisors
3,814,971
2.07%
10
State Street Investment Management
3,319,276
1.80%
11
Elo Mutual Pension Insurance Company
2,854,000
1.55%
12
Handelsbanken Fonder
2,582,160
1.40%
13
BNP Paribas Asset Management
2,499,041
1.35%
14
Nordea Funds
2,232,572
1.21%
15
Incentive AS
2,190,316
1.19%
Source: Modular Finance AB
Number of shareholders
The number of registered shareholders at the end of year 2025
was 103,259 (105,217) according to Euroclear Finland Oy.
Shareholdings of the Board of Directors
in Valmet Oyj on December 31, 2025
Shares
Vauramo, Pekka
Chair of the Board
2,368
Paasikivi, Annika
Vice Chair of the Board
2,755
Kemppainen, Pekka
Member of the Board
7,574
Maurer, Monika
Member of the Board
7,574
Lumme-Timonen,
Annareetta
Member of the Board
2,621
Eikens, Bernhard
Member of the Board
1,039
Hämäläinen, Anu
Member of the Board
5,235
Gustavsson, Jonas
Member of the Board
1,039
Total
30,205
% of outstanding shares
0.02%
Distribution of shareholding by sector, %
293
Source: Euroclear Finland Oy
Distribution of shareholders by number
of shares held, %
357
Source: Euroclear Finland Oy
Shareholdings of the Executive Leadership
Team in Valmet Oyj on December 31, 2025
Shares
Hinnerskov, Thomas
President and CEO
0*
Hokkanen, Katri
CFO
9,793
Torttila-Miettinen, Emilia
EVP, Automation Solutions
2,884
Sääskilahti, Simo
EVP, Flow Control
8,170
Rasinmäki, Petri
EVP, Packaging and Paper
2,929
Riekkola, Sami
EVP, Pulp, Energy and Circularity
24,455
Jested-Rask, Jon
EVP, Tissue
0
Tacla, Celso
EVP, Latin America
80,116
Zhu, Xiangdong
EVP, China Chair
39,406
Niemi, Aki
EVP, Global Supply
46,098
Pires, Anu
EVP, People, Communications
and Culture
0
Hänninen, Olli
EVP, Strategy and
Transformation
1,400
Oksala, Rasmus
EVP, Legal, and General Counsel
17,368
Total
232,619
% of outstanding shares
0.13%
*Thomas Hinnerskov has an allocation of 61,037 shares in restricted share pool.
A precondition for the payment is that the employment relationship of Thomas
Hinnerskov with Valmet continues until the payment date of the reward in March
2027. Shares in long-term incentive plan PSP (Performance Share Plan) 2024–2026
and PSP 2025–2027 have also been allocated to Thomas Hinnerskov in 2024 and
2025, with rewards from these plans will be paid to participants in spring 2027 and
2028 respectively.
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Flagging notifications
In the financial year 2025 Valmet received the following flagging
notification referred to in the Securities Market Act:
% of shares and voting rights
Transaction date
Shareholder
Threshold
Direct
Through financial instruments
Total, %
February 14, 2025
Swedbank Robur Fonder AB
Below 5%
4.77%
-
4.77%
Trading of shares
Trading of Valmet shares on Nasdaq Helsinki
2025
2024
Number of shares traded
85,571,314
108,778,549
Total value, EUR million
2,335
2,723
High, EUR
32.15
30.11
Low, EUR
21.00
21.37
Volume-weighted average price, EUR
27.27
25.04
Closing price on the final day of trading, EUR
28.33
23.33
The closing price of Valmet’s share on the final day of trading for
the reporting period, December 30, 2025, was EUR 28.33, i.e.,
21 percent higher than the closing price on the last day of trading
in 2024 (EUR 23.33 on December 30, 2024).
In addition to Nasdaq Helsinki Ltd, Valmet’s shares are also
traded on other marketplaces, such as CBOE DXE, Turquoise,
BATS, Frankfurt and Chi-X. A total of approximately 46 million
Valmet shares were traded on these five alternative marketplaces
in 2025 (Source: www.valmet.com/investors/valmet-share/
trading-volumes/ ).
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Resolutions of Valmet Oyj’s Annual General
Meeting
Valmet's Annual General Meeting 2025 was held in Helsinki on
March 26, 2025. The Annual General Meeting adopted the
Financial Statements for 2024 and discharged the members of the
Board of Directors and the President and CEO from liability for
the financial year 2024. The Annual General Meeting adopted the
remuneration report for governing bodies, for which the decision
is advisory. The Annual General Meeting authorized the Board of
Directors to decide on the repurchase of the Company’s own
shares and on the issuance of shares and special rights entitling to
shares.
The Annual General Meeting decided to pay a dividend of EUR
1.35 per share for the financial year which ended on December
31, 2024. The dividend was decided to be paid in two
installments. The first installment of EUR 0.68 per share was paid
on April 8, 2025, to shareholders who on the dividend record
date March 28, 2025, were registered in the Company’s
shareholders’ register held by Euroclear Finland Oy.  The second
installment of EUR 0.67 per share was paid on October 7, 2025,
to shareholders who on the dividend record date September 29,
2025, were registered in the Company's shareholders' register
held by Euroclear Finland Oy.
The Annual General Meeting confirmed the number of Board
members as eight and appointed Pekka Vauramo as the new
Chair of Valmet Oyj's Board and Annika Paasikivi as the new
Vice Chair. Anu Hämäläinen, Pekka Kemppainen, Annareetta
Lumme-Timonen and Monika Maurer were re-elected as Board
members, and Bernd Eikens and Jonas Gustavsson were elected
as new Board members. The term of office of the members of the
Board of Directors expires at the close of the Annual General
Meeting 2026.
PricewaterhouseCoopers Oy was re-elected as the Company's
auditor for a term expiring at the end of the Annual General
Meeting 2026. Pasi Karppinen, Authorised Public Accountant,
will act as the responsible auditor. PricewaterhouseCoopers Oy
will also carry out the assurance of the Company's sustainability
reporting.
Valmet published a stock exchange release on March 26, 2025,
concerning the resolutions of the Annual General Meeting and
the organizing meeting of the Board of Directors. The stock
exchange release and meeting materials can be viewed on
Valmet’s website at https://www.valmet.com/investors/
governance/annual-general-meeting/2025.
Board authorizations regarding shares
At Valmet's AGM 2025, the Board of Directors was authorized to
repurchase up to 9.2 million shares (approximately 5% of all
shares) and to issue up to 18.5 million shares (approximately 10%
of all shares), including special rights and directed issues. Shares
may be repurchased or issued for capital structure management,
financing, execution of acquisitions and investments or carrying
out other business transactions, and share‑based incentives
(however, up to 755,000 shares for incentives, corresponding to
0.4% of all shares).
Validity of the authorizations
The authorizations shall remain in force until the close of the
next Annual General Meeting, and they cancel the corresponding
authorizations granted by the Annual General Meeting 2024.
Use of AGM authorizations
Under the AGM 2024 authorization, Valmet repurchased 115,000
of the Company's own shares for EUR 3.2 million in February
2025 to cover share-based incentive obligations.
On March 14, 2025, a total of 161,915 treasury shares were
transferred without consideration to participants in Valmet’s
long-term incentive plans for the periods 2022–2024 and 2024,
and on August 14, 2025, an additional 23,989 shares were
transferred for the period 2024.
Lawsuits and claims
On October 15, 2024, Valmet announced that Metsä Fibre Oy has
filed a request for arbitration against Valmet Technologies Oy,
which is a subsidiary of Valmet. The arbitration concerns Metsä
Fibre’s bioproduct mill in Kemi, Finland, which came into
operation as planned on September 20, 2023.
Valmet Technologies Oy disputes the claims brought by Metsä
Fibre and will also actively pursue claims of its own against Metsä
Fibre. Metsä Fibre’s monetary claims put forward after Statement
of Claim amount to EUR 48.7 million. In addition, Metsä Fibre
has also reserved the right to present certain other claims based
on contractual relationships between Metsä Fibre and other
parties, which are still unresolved. Estimation of the total amount
of such claims is not included in the Statement of Claim.
Valmet’s management does not expect to the best of its current
understanding any material adverse impacts on its operations or
financial position due to this arbitration. This assessment takes
into account the grounds currently presented, provisions made,
insurance coverage in force, and the extent of Valmet’s total
business activities.
Several lawsuits, claims and disputes based on various grounds
are pending against Valmet in various countries, including
product liability lawsuits and claims as well as legal disputes
related to Valmet’s deliveries. Valmet is also a plaintiff in several
lawsuits. Although some of the claims are substantial, Valmet’s
management does not expect to the best of its present
understanding that the outcome of these lawsuits, claims and
disputes will have a material adverse effect on Valmet in view of
the grounds currently presented for them, provisions made,
insurance coverage in force and the extent of Valmet’s total
business activities.
Risks and business uncertainties
Valmet’s operations are affected by various risks. Valmet actively
seeks to capitalize on emerging opportunities while mitigating the
potential adverse impacts of identified threats. As part of its
annual risk assessment, Valmet has identified the most significant
risks arising from global and key market area economic cycles,
including geopolitical developments, customer industry
dynamics, and risks associated with project operations. Further
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information on Valmet’s risk management process is available in
the Corporate Governance Statement. 
The assessment of risks related to sustainability plays an
important role in the risk management process. Further details of
Valmet’s material sustainability matters and related impacts,
risks, and opportunities are available in Valmet’s Sustainability
Statement.
Strategic risks
Financial uncertainty in the global economy, coupled with
exchange rate fluctuations and tightening financial market
regulations, may affect customers’ financing availability and
investment appetite. If economic growth slows significantly, the
markets for Valmet’s products may shrink, which may lead to, for
example, tougher price competition. Competitive pressures are
addressed through product development, customer service, and
local presence.
Valmet’s strong presence in selected businesses, combined with
geographical diversification, helps mitigate the potential negative
effects of market uncertainties. A weakening global economy
could also adversely affect new projects under negotiation or
those already in the order backlog. Valmet manages project risk
through advance and progress payments, continuous assessment
of customer creditworthiness, and a general policy of not
financing customer projects.
Geopolitical conflicts pose significant risks to global markets,
supply chains, and transport logistics. If the conflicts are further
prolonged or enlarged, there could be additional adverse impacts
on Valmet’s operations, customer investment activity, project
deliveries, availability and prices in the supply chain and
availability of financing for both Valmet and its customers.
Rising protectionism, shifting political narratives, and regulatory
changes—such as tariffs and potential retaliatory measures—
create uncertainty in global trade and customer investment
decisions. The ongoing trade war further contributes to economic
and financial market instability.
To mitigate risks arising from the geopolitical landscape, Valmet
continuously monitors global developments and evaluates their
potential implications for its operations. The company also
implements proactive measures, including strengthening supply
chain resilience, managing cost impacts, and regularly assessing
regional dependencies to ensure business continuity and reduce
exposure. In addition, Valmet’s broad local presence helps reduce
direct tariff exposure.
Valmet may pursue growth by acquiring businesses to strengthen
its technology offering and market position. Acquisitions and
divestments involve risks related to valuation, cultural and
organizational integration, alignment of processes and systems,
and the realization of expected synergies. Challenges in
integrating acquired operations or technologies may impact
business performance, delay benefits, or increase costs. Valmet
mitigates these risks through structured M&A processes,
thorough due‑diligence assessments, and disciplined integration
planning and execution.
Financial risks
Currency exchange rate and interest rate risks are Valmet’s most
substantial financial risks. Economic insecurity typically increases
exchange rate fluctuations and may impact interest rates as well.
Valmet hedges its currency exposures linked to binding delivery
and purchase agreements. The interest rate risks are managed by
balancing the ratio of fixed and floating interest rates and
duration of interest-bearing debt and interest-bearing financial
assets. Additionally, Valmet uses derivative instruments to
mitigate these risks.
Changes in legislation or regulatory interpretation, particularly in
taxation, may influence financial outcomes. Valmet monitors
these developments closely.
Valmet maintains a strong balance sheet, sufficient liquidity, and
committed credit facilities to secure operational continuity.
Capital expenditure and net working capital levels are closely
monitored.
Valmet carries a significant goodwill balance, which is tested for
impairment annually or more frequently if needed. No
indications of impairment were identified during the reporting
period.
To mitigate credit risk, Valmet diversifies its financial holdings
across reputable banks and selects counterparties based on high
creditworthiness.
Compliance and regulatory risks
Operating in multiple jurisdictions with evolving legislation and
shifting regulatory interpretations exposes Valmet to compliance
and regulatory risks that may impact the company’s operations,
technologies, and financial performance. These risks include
emerging energy‑ and climate‑related regulation, such as
carbon‑pricing mechanisms. Valmet manages compliance and
regulatory risks through established compliance frameworks,
ongoing monitoring, and proactive employee training.
Operational risks
Valmet’s business involves projects, and the company faces
execution risks such as cost estimation, scheduling, quality, and
materials management, especially in large pulp projects. These
risks are mitigated through risk analysis, systematic monitoring
during execution, and continuous development of project
management processes and systems.
Supply chain disruptions, component availability, and logistics
challenges may adversely affect Valmet’s business. These issues
are mitigated by effective supply and supply chain management.
Changes in labor costs and raw material prices can impact
profitability. In addition, large fluctuations in energy prices can
affect the global economy and have implications for Valmet and
its customers. While the company aims to offset inflation through
productivity improvements and pricing strategies, strong
competition may limit its ability to pass on cost increases to
customers.
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Cybersecurity breaches, unauthorized access, or failures in
handling personal or customer data may negatively impact
Valmet’s operations, financial performance, or reputation and
may lead to non‑compliance with data‑protection legislation such
as the GDPR. Major system outages, malfunctions, failures in
system development projects, or disruptions at critical cloud and
service providers may also interrupt operations, delay project
deliveries, or reduce internal efficiency. Valmet mitigates these
risks through established cybersecurity controls, data‑protection
practices, business‑continuity planning, redundant IT
infrastructure, and monitoring of key suppliers and service
providers.
Valmet’s ability to execute projects and deliver advanced
automation and process technologies relies on access to a highly
skilled and committed workforce. Competition for talent in
certain areas remains intense, and challenges in attracting,
developing, and retaining critical competencies may impact
operational performance and future growth. Labor market
disruptions, including strikes or shortages in key regions, may
affect project schedules or supply chain continuity. Valmet
mitigates these risks through proactive talent development,
succession planning, continuous competence renewal, and strong
occupational safety practices to ensure a safe, motivated, and
resilient workforce.
Events after the reporting period
There have been no subsequent events after the reporting period
that required recognition or disclosure.
Guidance for 2026
Valmet estimates that net sales in 2026 will remain at the
previous year's level in comparison with 2025 (EUR 5,197
million) and Comparable EBITA in 2026 will remain at the
previous year's level or increase in comparison with 2025 (EUR
620 million).
General economic outlook according to OECD
The global economy proved to be more resilient than expected in
2025. The resilience was supported by improved financial
conditions, rising AI-related investment and trade, and
macroeconomic policies. However underlying fragilities exist.
Labor markets are showing first signs of weakening despite the
OECD unemployment rate being steady at 4.9 percent, with job
vacancies falling below their 2019 average in many countries.
Risk in the economic outlook relate especially to prospects of
future trade barriers, sharp repricing of the financial markets,
potentially amplified by stresses in leveraged non-bank financial
institutions and lingering fiscal concerns, which may tighten
financial conditions and increase bond yields and weigh on
economic growth.
Global GDP growth is projected to ease from 3.2% in 2025 to
2.9% in 2026 and to 3.1% in 2027.
Near-term activity is expected to soften as higher effective tariff
rates gradually feed through economies, which can weigh on
investment and trade, amid persistent geopolitical and policy
uncertainty. Growth is expected to firm again later in 2026 as the
impacts of tariffs are projected to fade and lower inflation could
support demand. Consumer inflation in G20 countries is
projected to ease from 3.4% in 2025 to 2.8% in 2026 and 2.5% in
2027. Emerging markets in Asian economies are seen as the key
contributors to global GDP growth in the coming years.(OECD
Economic Outlook,Volume 2025, Issue 2, December 2025)
Short-term market outlook
(January–June 2026)
Valmet’s short-term market outlook covers the period January–
June 2026, compared with October–December 2025.
It reflects Valmet’s estimate of the expected growth rate of its key
markets, based on ongoing discussions with customers and other
market information.
The outlook describes underlying market trends, excluding the
normal seasonal variation in Valmet’s business. It should not be
interpreted as guidance for Valmet’s own orders received.
Process Performance Solutions
Valmet notes that the market environment in Process
Performance Solutions softened in October-December. Valmet
does not expect further softening from this level and anticipates
the market to stabilize and improve modestly from the weaker Q4
level during the first half of 2026.
Biomaterial Solutions and Services
Uncertainty on global economic outlook remains high and
continues to impact customers’ decision making, capacity
utilization rates and profitability levels.
Valmet expects the biomaterial services market to remain soft in
the coming quarters. 
It is typical that large individual investment decisions by
customers can influence the overall market significantly within a
single quarter.
Board of Directors’ proposal for
the distribution of profit
Valmet Oyj’s distributable funds on December 31, 2025, totaled
EUR 1,625,144,488.08 of which the net profit for the year 2025
was EUR 284,767,437.27 (according to Finnish Generally
Accepted Accounting Standards).
The Board of Directors proposes to the Annual General Meeting
that a dividend of EUR 1.35 per share be paid based on the
statement of financial position to be adopted for the financial
year which ended on December 31, 2025, and the remaining part
of profit be retained and carried further in the Company’s
unrestricted equity.
The dividend shall be paid in two installments. The first
installment of EUR 0.68 per share shall be paid to shareholders
who on the dividend record date of March 27, 2026, are
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|  REPORT OF THE BOARD OF DIRECTORS
registered in the Company’s shareholders’ register held by
Euroclear Finland Ltd. The dividend shall be paid on April 9,
2026. The second installment of EUR 0.67 per share shall be paid
in October 2026. The second installment shall be paid to
shareholders who on the dividend record date are registered in
the Company’s shareholders’ register held by Euroclear Finland
Ltd. The payment date of the second installment shall be resolved
by the Board of Directors in its meeting preliminarily scheduled
for September 29, 2026. The dividend record date for the second
installment would then be October 1, 2026, and the dividend
payment date October 7, 2026.
All the shares in the Company are entitled to a dividend except
for treasury shares held by the Company on the dividend record
date.
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|  SUSTAINABILITY STATEMENT
Sustainability Statement
General information
Basis for preparation
General basis for preparation of sustainability
statements
Disclosures in relation to specific circumstances
BP-1, BP-2
Valmet Oyj (the “Company” or the “parent company”), a public
limited liability company, and its subsidiaries (together “Valmet”,
“Valmet Group” or the “Group”) form a global developer and
supplier of lifecycle solutions and services for biomaterial and
energy industries, driving circular transformation. Valmet’s
process performance solutions serve a wide base of diverse
industries providing automation and flow control solutions and
enhancing resource efficiency.
The European Union (EU) Corporate Sustainability Reporting
Directive (CSRD) 2022/2464 applies to Valmet from 2024
onwards. This Sustainability Statement has been prepared in
accordance with the ESRS standards (European Sustainability
Reporting Standards) as adopted by the EU and the Finnish
Accounting Act chapter 7 (Consolidated Sustainability Report)
and with Article 8 in the Taxonomy Regulation. For previous
years until the end of 2023, Valmet reported its sustainability
performance in accordance with the Non-Financial Reporting
Directive (NFRD), and in the GRI supplement, in accordance
with the global GRI standards from the Global Reporting
Initiative (GRI).
Valmet’s Sustainability Statement covers the Valmet Group
unless otherwise stated. The reporting scope of Valmet’s own
operations is the same as Valmet’s consolidated financial
statements. In addition to Valmet’s own operations, the
information in this Sustainability Statement has been extended to
include information about the material sustainability impacts and
sustainability-related financial risks and opportunities connected
with Valmet through its direct and indirect business relationships
in the upstream and downstream value chain, where applicable.
The extent of the reported value chain information is explained
in more detail under IRO-1.
The material sustainability matters and related impacts, risks, and
opportunities included in this Sustainability Statement are based
on the outcome of a double materiality assessment. The double
materiality assessment process is described in more detail under
IRO-1. Valmet has not used the option to omit a specific piece of
information corresponding to intellectual property, know-how or
the results of innovation. Specific circumstances related to value
chain estimation have been disclosed under E1-6 and E5-4.
Sources of estimation and outcome uncertainty have been
disclosed under E1-5, E1-6, E5-4, and G1-6.
Changes in preparation or presentation of sustainability
information:
• E1-5: Energy consumption and mix has been restated for 2024
to include energy consumption of owned and leased vehicles
• E1-6: Scope 1 GHG emissions have been restated for 2024 to
include. emissions from owned and leased vehicles. The Scope
1 biogenic CO2 emissions from the combustion of biomass
have been restated for 2024. The methodology for calculating
Scope 3 category 1 - Purchased goods and services, has been
updated and the 2024 figure restated. For Scope 3 category 11 -
Use of sold products, the emission factors for lime kilns have
been updated. The 2024 figure has not been restated.
• S1-5 MDR-T: Health, safety and environment walks,
inspections and conversation: In 2025, only walks, inspections
and conversations done by the line managers are counted, not
all reported walks, inspections and conversations as in 2024.
• S1-6, Employee turnover rate: The turnover rate has been
calculated by dividing the total turnover by the 2025 average
headcount, excluding leavers by mutual agreement related to
Valmet’s operating model renewal, and summer trainees. In
2024, headcount from acquisitions and disposals was excluded
from the turnover rate.
The measurement of the metrics disclosed in this Sustainability
Statement is not separately validated by an external body unless
otherwise stated for a specific metric.
Use of phase-in provisions
In its 2025 reporting, Valmet has decided to use the following
phase-in provisions in accordance with the amended Appendix C
of ESRS 1 published on July 11, 2025.
• ESRS 2 SBM-1 – Strategy, business model and value chain:
paragraphs 40b and 40c
• ESRS 2 SBM-3 – Material impacts, risks, and opportunities and
their interaction with strategy and business model:
paragraph 48e
• E1-9 – Anticipated financial effects from material physical and
transition risks, and potential climate-related opportunities
• E2-6 – Anticipated financial effects from pollution-related risks
and opportunities
• E3-5 – Anticipated financial effects from water and marine
resources-related risks and opportunities
• E5-6 – Anticipated financial effects from resource use and
circular-economy-related impacts, risks and opportunities
• S1-7 – Characteristics of non-employee workers in Valmet’s
own workforce
• S1-14 – Health and safety: reporting of health and safety
information concerning non-employees in Valmet’s
own workforce.
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|  SUSTAINABILITY STATEMENT
Governance
The role of the administrative, management, and
supervisory bodies
Information provided to and sustainability
matters addressed by the undertaking’s
administrative, management, and supervisory
bodies
GOV-1, G1 GOV-1, GOV-2
Valmet’s administrative, management, and supervisory bodies
consist of Valmet’s Board of Directors and its committees,
President and Chief Executive Officer, and Executive Leadership
Team . Valmet’s Board of Directors is responsible for the
administration and proper organization of operations. The Board
also decides on significant matters related to strategy,
investments, organization, and financing, ensuring that Valmet
operates in accordance with its established values in all its
operations. Valmet’s Board of Directors oversees Valmet’s
sustainability reporting, and they sign on the information in this
Sustainability Statement as part of the Report of the Board of
Directors.
Valmet’s Board of Directors consists of five to eight members,
whom the Annual General Meeting elects for a term that lasts
until the end of the next Annual General Meeting. In addition to
board members, a personnel representative participates as an
invited expert in meetings of the Board of Directors. In 2025, all
board members were non-executive, and 75 (75) percent of the
board members were independent of the significant shareholders.
Information about members’ experience, including competence
related to industry, sustainability, and international experience, is
presented in the following table.
Valmet Board Competence Matrix
Industry experience
Financial/
Accounting
Corporate risk
management
Corporate
governance
Corporate strategy
development
Corporate
acquisitions
Corporate HR
CEO experience
International
experience
Sustainability
Pekka Vauramo
•
•
•
•
•
•
•
•
•
•
Bernd Eikens
•
•
•
•
•
•
•
•
•
•
Anu Hämäläinen
•
•
•
•
•
•
•
•
•
Pekka Kemppainen
•
•
•
•
•
•
•
•
•
Jonas Gustavsson
•
•
•
•
•
•
•
•
•
•
Annareetta Lumme-Timonen
•
•
•
•
•
•
•
•
Monika Maurer
•
•
•
•
•
•
•
•
•
•
Annika Paasikivi
•
•
•
•
•
•
•
•
•
Extensive experience
•
Moderate experience
Empty = Limited experience
Valmet recognizes the importance of diversity, including gender,
nationality, age, background, and education, at the Board and all
levels of the Group, and is committed to increasing diversity
across all its operations. The Valmet Shareholders’ Nomination
Board has reviewed and confirmed the principles for Board
diversity and considers them in its work and proposals. Valmet’s
principles of Board diversity include the promotion of experience
and a varied educational background, relevant qualifications,
balanced gender diversity, and an adequate commitment
regarding time contribution, availability, and engagement. Board
members should have sufficient expertise and knowledge of and
competence in Valmet’s field of business and industry. Each
Board member assesses their own expertise. Sustainability experts
and trainings are available if required.
Board diversity
2025
2024
Gender
%
%
Male
50.0%
4/8
50.0%
4/8
Female
50.0%
4/8
50.0%
4/8
Gender diversity ratio
1:1
1:1
2025
2024
Nationality
%
%
Finnish
62.5%
5/8
75.0%
6/8
German
25.0%
2/8
12.5%
1/8
Swedish
12.5%
1/8
12.5%
1/8
2025
2024
Age
%
%
41–50 years
12.5%
1/8
12.5%
1/8
51–60 years
50.0%
4/8
25.0%
2/8
61–70 years
25.0%
2/8
62.5%
5/8
71–80 years
12.5%
1/8
0.0%
0/8
2025
2024
Tenure
%
%
Less than 1 year
37.5%
3/8
25.0%
2/8
1–2 years
25.0%
2/8
25.0%
2/8
3–5 years
12.5%
1/8
25.0%
2/8
Over 5 years
25.0%
2/8
25.0%
2/8
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|  SUSTAINABILITY STATEMENT
Board committees
The Board of Directors has two permanent committees: the Audit
Committee and the People and Remuneration Committee. The
Board of Directors elects the members of the committees from
among its members at its annual organizing meeting and
monitors the activities of the committees. Both committees have
charters approved by the Board of Directors and report to the
Board on their activities after each meeting.
The Audit Committee monitors Valmet’s financial reporting and
CSRD reporting and prepares issues for the Board of Directors
related to the monitoring of Valmet’s financial position, financial
reporting, auditing, and risk management.
Chief Executive Officer and Executive Leadership Team
The President and Chief Executive Officer manages, guides, and
supervises the operations of Valmet and its businesses. The
President and Chief Executive Officer reports to the Board of
Directors and prepares the matters on the agenda of the Board of
Directors and its committees and implements their decisions.
The President and Chief Executive Officer and other members
appointed by the Board of Directors constitute the Executive
Leadership Team of Valmet. The Executive Leadership Team
assists the President and Chief Executive Officer in the
preparation of matters such as Valmet’s business plan, strategies,
policies, and other operative matters of joint importance. The
President and Chief Executive Officer acts as chair of Valmet’s
Executive Leadership Team, which on 31.12.2025 consisted of
13 (16) executive members. All members of Valmet’s Executive
Leadership Team have a combination of industry and
international experience, and they are experienced in overseeing
Valmet’s sustainability work.
Executive Leadership Team diversity
2025
2024
Gender
%
%
Male
76.9%
10/13
75.0%
12/16
Female
23.1%
3/13
25.0%
4/16
2025
2024
Nationality
%
%
Brazilian
7.7%
1/13
6.3%
1/16
Chinese
7.7%
1/13
6.3%
1/16
Danish
15.4%
2/13
6.3%
1/16
Finnish
69.2%
9/13
75.0%
12/16
Finnish/USA
—%
0/13
6.3%
1/16
2025
2024
Age
%
%
41–50 years
30.8%
4/13
37.5%
6/16
51–60 years
61.5%
8/13
62.5%
10/16
61–70 years
7.7%
1/13
0.0%
0/16
Sustainability matters addressed by the
administrative, management, and supervisory bodies
Valmet’s Board of Directors is responsible for overseeing the
organization’s sustainability work, due diligence, and other
sustainability processes to identify and manage the impacts on
the environment and people. The President and Chief Executive
Officer and the Executive Leadership Team lead Valmet’s
sustainability work and related material sustainability impacts,
risks and opportunities. Valmet’s Executive Vice President,
Strategy and Transformation, a member of Valmet’s Executive
Leadership Team, is responsible for sustainability at Valmet.
Publicly available sustainability-related policies and
commitments approved by the Board of Directors:
• Valmet’s Code of Conduct
• Valmet’s Health, Safety and Environment (HSE) Policy
• Valmet’s Disclosure Policy
• Valmet’s Remuneration Policy.
Publicly available sustainability-related policies and
commitments approved by the President and Chief Executive
Officer:
• Valmet’s Human Rights Policy Statement
• Valmet’s Climate and Nature Policy Statement.
• Valmet’s Supplier Code of Conduct
• Valmet’s Anti-Corruption Policy.
Publicly available sustainability-related policies and
commitments approved by a member of Valmet’s Executive
Leadership Team:
• Valmet’s Equal Opportunity and Diversity Policy
• Valmet’s Non-Discrimination and Anti-Harassment Policy.
Internally available sustainability-related policies and
commitments approved by a member of Valmet’s Executive
Leadership Team:
• Valmet Know Your Business Partner Policy
• Valmet Trade Compliance Guideline
• Valmet Compliance Reporting Guideline.
Valmet’s Sustainability Agenda defines Valmet’s sustainability
focus and sets the priorities and targets for circular and net-zero
aligned solutions, climate and nature, people and rights, and
responsible value chain. It addresses Valmet’s material
sustainability impacts, risks, and opportunities. The President
and Chief Executive Officer and Valmet’s Executive Leadership
team review quarterly the progress of the targets set for each
business area and Global Supply function. Valmet’s sustainability
performance is reviewed annually by the Board of Directors.
Valmet’s Climate Transition Plan is an integral part of Valmet’s
Sustainability strategy. It addresses Valmet’s climate-related
impacts, risks and opportunities, outlines Valmet’s pathway
toward net-zero and defines new near-term and long-term
targets, decarbonization levers, and related measurable action
plans. The Board of Directors has approved Valmet’s Climate
Transition Plan. Valmet’s business areas are responsible for its
VALMET  |  FINANCIAL STATEMENTS AND REPORT OF THE BOARD OF DIRECTORS 2025  |
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|  SUSTAINABILITY STATEMENT
execution, and the progress of the targets and status is reviewed
quarterly by Valmet’s President and Chief Executive Officer and
Executive Leadership team. Valmet’s Board of Directors reviews
the plan annually.
The Audit Committee oversees the development of Valmet’s
Ethics and Compliance Program, which targets the maintaining
of an ethical corporate culture at Valmet, and handling of
identified misconduct cases. Ethics and Compliance and Internal
Audit report the progress to the Audit Committee.
Valmet has a Compliance Committee structure to supervise the
implementation of the Ethics and Compliance Program and
oversee misconduct investigations. The Executive Vice President
Legal, and General Counsel, Chief Financial Officer, and
Executive Vice President People, Communications, and Culture
are members of the global Corporate Compliance Committee.
Valmet’s business area organizations have their own business
area Compliance Committees for the Ethics and Compliance
work at a business level and to decide on and supervise
misconduct investigations in their own organizations. The
business area Compliance Committees report their work to the
global Corporate Compliance Committee. Executive Vice
Presidents are members of their own business area’s Compliance
Committee. All Compliance Committees met at least three times
in 2025.
The Sustainability and Due Diligence Compliance Committee is a
sub-committee of the Corporate Compliance Committee. It
oversees the implementation of Valmet’s Sustainability Due
Diligence practices. The Committee is headed by the Vice
President Sustainability. In cases of non-compliance or incidents,
the committee discusses and decides on mitigation actions,
handles grievances, and determines remedy plans. The topics
addressed by the committee include human rights,
environmental compliance, supplier sustainability, sustainability
in projects, and health and safety. Major incidents are reported to
the Corporate Compliance Committee.
Relevant members of the Executive Leadership Team were
engaged in Valmet’s 2025 double materiality assessment review,
and the evaluation of Valmet’s material sustainability impacts
and sustainability-related financial risks and opportunities. In
2025 Valmet’s Chief Financial Officer reported on the progress of
CSRD reporting development and external assurance to the
Board of Directors and in every Audit Committee meeting. The
results of the double materiality assessment, including all
Valmet’s material sustainability impacts and sustainability-
related financial risks and opportunities, and Valmet’s CSRD
reporting scope, have been approved by Valmet’s Audit
Committee.
Sustainability impacts, risks and opportunities as
a part of Valmet Enterprise Risk Management Process
Valmet has an Enterprise Risk Management Process in which
sustainability-related issues are identified and evaluated. The
purpose of the annual Enterprise Risk Management process is to
identify and evaluate the most significant risks affecting Valmet’s
business areas, Functions, and the Valmet Group as a whole, and
to determine appropriate risk treatment actions. The process
covers strategic, financial, operational, compliance, and
regulatory and sustainability risks. Valmet’s double materiality
assessment process is aligned with the Enterprise Risk
management process, and the results of the double materiality
assessment feed into Valmet’s overall Enterprise Risk
Management process (see ESRS 2 IRO-1).
The Board of Directors and the Executive Leadership Team
consider sustainability impacts, risks and opportunities when
overseeing Valmet’s strategy and its decisions on major
transactions.
Integration of sustainability-related performance
in incentive schemes
GOV-3, E1 GOV-3
Valmet’s remuneration principles are defined in the
Remuneration Policy, which is approved by the Annual General
Meeting for a four-year period. Remuneration at all levels of the
organization is built on the principles of Driving high
performance, Competitive remuneration to retain talent with the
best fit, and Fairness and sustainability. Valmet’s variable pay
schemes (i.e., short-term and long-term incentive plans) support
sustainable business by linking selected sustainability topics such
as the Climate Transition Plan, the growth of climate change
mitigating business, and health and safety to remuneration.
The Annual General Meeting decides on the remuneration of the
members of the Board of Directors and the Board’s Committees
for one term of office at a time. The Board of Directors decides
on the remuneration, benefits, and other terms of employment of
the President and Chief Executive Officer based on the
preparatory work by the People and Remuneration Committee
and in accordance with the guidelines in the Remuneration
Policy presented to the General Meeting. The Board’s People and
Remuneration Committee decides on the compensation and
benefits of the Executive Leadership Team members other than
the President and Chief Executive Officer, based on the President
and Chief Executive Officer’s proposal, and general principles
approved by the Board. All remuneration-related decisions
require grandparent approval. In other words, the remuneration
of an employee must always be approved by the manager’s
manager.
Valmet’s Board of Directors decides on the short-term and long-
term incentive plans. Given the nature of the Board’s duties and
responsibilities, the members of the Board do not participate in
the short- and long-term incentive plans. Board members receive
a fixed remuneration (annual fee) only, which can be paid in cash
or shares, or a combination of cash and shares. Based on the
decision of the Annual General Meeting, 40 (40) percent of the
Board’s annual fees were reinvested to buy Valmet shares from
the market in 2025.
The short-term incentive for the President and Chief Executive
Officer is an annual performance bonus for which the Board of
Directors sets the performance measures. The incentive includes
Group-level key financial targets and strategic individual targets.
The maximum annual performance bonus opportunity for the
President and Chief Executive Officer is 100 (100) percent of the
annual base salary, and the weight of the individual target was
40 (20) percent in 2025.
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|  SUSTAINABILITY STATEMENT
Valmet’s other Executive Leadership Team members besides the
President and Chief Executive Officer are eligible for an annual
short-term incentive plan, the Global Bonus Plan. The maximum
Global Bonus Plan opportunity for the Executive Leadership
Team members is 60 (60) percent of the annual base salary. The
Board of Directors approves the Valmet comparable EBITA
minimum and maximum values used for the Global Bonus Plan.
The Valmet-level targets are cascaded to business area, and
business unit levels. Financial and operational targets are
predefined and assigned to an individual according to the
organization to which they belong. The sustainability-related
measure in the Global Bonus Plan is the Total recordable incident
frequency (TRIF). As stated in Valmet’s Health, Safety and
Environment (HSE) Policy, Valmet pursues the goal of zero harm
to people which is measured in the TRIF. The weight of the TRIF
measure is 5 (5) percent of the maximum bonus opportunity.
Valmet’s long-term incentive is a share-based incentive plan
(Performance Share Plan) with performance targets decided by
the Board of Directors for each plan period. The performance
targets for the long-term incentive plan can be related to, for
example, growth, profitability, and sustainability, as determined
and decided by the Board of Directors annually. The
predetermined performance targets are measurable, and the
achievement of these targets determines the payout level of the
share-based incentive plan. Valmet has one share-based long-
term incentive plan consisting of annually commencing
performance share plans. They are directed at the Executive
Leadership Team members, including the President and Chief
Executive Officer, and selected key employees of the company.
The Performance Share Plan has predefined performance
measures for a three-year performance period, and the Board of
Directors has decided always to include a sustainability measure
in one of the ongoing plan periods. The 2025–2027 Performance
Share Plan has an ESG-index as a three-year strategic
performance measure, and it has a weight of 20 percent of the
long-term incentive maximum opportunity. The sustainability
index is related to the growth of Valmet’s business contributing
to climate change mitigation and the circular economy as
outlined in the EU Taxonomy and Valmet’s GHG emission
reduction target for own operations. The long-term incentive
maximum opportunity for the Executive Leadership Team
members in the 2025–2027 Performance Share Plan is
150 percent of the annual base salary and converted to shares at
grant. For the President and Chief Executive Officer, it is
200 percent (see Note 15 to the Consolidated Financial
Statements – Share-based payments).
In December 2025, the Board of Directors of Valmet resolved to
establish a new Performance Share Plan 2026-2028 in which one
of the performance criteria is tied to GHG emission reduction in
own operations.
Statement of due diligence
GOV-4
Valmet has a Sustainability Due Diligence Framework to identify,
address, prevent, and limit negative impacts on the environment
and people connected with its business. Valmet’s Sustainability
Due Diligence Framework is based on the UN (United Nations)
Guiding Principles on Business and Human Rights, and the
OECD Guidelines for multinational enterprises.
Valmet has embedded environmental, human rights, and
governance due diligence into its management systems and in key
processes. The table below presents the main aspects of Valmet’s
Sustainability Due Diligence Framework, and a mapping of the
information provided in this Sustainability Statement about the
Due Diligence processes.
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|  SUSTAINABILITY STATEMENT
Sustainability Due Diligence Framework
Upstream – supply chain
Own operations
Downstream – use phase of technologies
Embedding due diligence in governance,
strategy, and business model
• Valmet’s Code of Conduct
• Supplier Code of Conduct
• Minimum Human and Labor Rights Standard for
Subcontractors
• Valmet Human Rights Policy Statement
• Valmet Climate and Nature Policy Statement
• Valmet Health, Safety, and Environment Policy
• Valmet Know Your Business Partner Policy
• Valmet’s Code of Conduct
• Valmet Human Rights Statement
• Valmet Climate and Nature Policy Statement
• Valmet Health, Safety, and Environment Policy
• Valmet Human Resources Policy
• Valmet Equal Opportunities and Diversity Policy
• Valmet Anti-corruption Policy
• Valmet’s Non-Discrimination and Anti-Harassment Policy
• Valmet Know Your Business Partner Policy
• Valmet’s Code of Conduct
• Valmet Human Rights Policy Statement
• Valmet Climate and Nature Policy Statement
• Valmet Health, Safety, and Environment Policy
• Valmet Guidelines for sustainable and responsible research,
product development and design
• Valmet Know Your Business Partner Policy
Paragraphs in the Sustainability Statement: E1-2, E2-1, E3-1, E4-2, E5-1, S1-1, S2-1, G1-1
Identifying and assessing
adverse impacts
Ongoing screening of salient sustainability
risks throughout value chain
• Suppliers’ sustainability risk screening and classification
• Supplier self-assessments
• Health and safety, and quality performance monitoring
of suppliers
• Sustainability risk identification integrated in Enterprise Risk
Management process
• Sustainability assessments covering own operations and
value chain:
– Annual sustainability risk and impact analysis (Double
Materiality Assessment, DMA)
– Salient human rights issues analysis
– Climate scenario analysis
– Biodiversity risk screening
• Sustainability impact assessment of business changes 
• Health, Safety and Environmental Risk governance process,
including hazard identification and risk assessment
• Screening of customers’ risk profiles
(sanctions, adverse media)
• Country and project-specific sustainability risk classification
and screening
Paragraphs in the Sustainability Statement: E1 SBM-3, E1 IRO-1, E4 SBM-3, E4 IRO-1, S1 SBM-3, S1-2, S1-4, S1-14, S2 SBM-3, S2-2, S2-3, S2-4, G1-1, G1-3
Taking actions to address
adverse impacts
• Supplier Sustainability Audits conducted by 3rd party
• Human Rights Impact Assessment for high-risk suppliers
conducted by 3rd party
• Supplier Engagement Program
• Climate Transition plan
• Supplier sustainability trainings
• Monitoring compliance with Valmet Code of Conduct
• Human Rights Impact Assessments for own locations
conducted by 3rd party
• Climate Transition Plan
• Action plans for mitigating identified Health, Safety and
Environment impacts
• Training of employees on business conduct, sustainability,
human rights, and health, safety, and environment
• Human rights management practices and tools in
project business 
• Climate Transition Plan
• Project Health, Safety, and Environment plans
Paragraphs in the Sustainability Statement: E1-1, E1-3, E1-4, S1-4, S1-5, S2-4, S2-5, G1-1, G1-3
Engaging with affected stakeholders
and access to remedy
• Valmet engages with employees and value chain workers as described in S1-2 and S2-2
• Valmet encourages its employees and stakeholders to speak up and voice their concerns. Valmet offers the TrustLine channel maintained by an external party for reporting suspected violations
of the Code of Conduct. It provides Valmet employees and other stakeholders with the possibility to report concerns anonymously and in their native language
• If a serious violation occurs, an Incident Management Team is established to coordinate the remediation actions and to ensure their implementation
• Sustainability and Due Diligence Compliance Committee oversees the implementation of Valmet’s Sustainability Due Diligence practices, grievances, and remedy plans
Paragraphs in the Sustainability Statement: GOV-2, S1-2, S1-3, S1-4, S2-3, S2-4, G1-1, G1-3
Tracking effectiveness
and communication
• KPIs to follow up Valmet’s due diligence practices
• Annual sustainability reporting in the Sustainability Statement
• Internal and external communications channels (intranet and valmet.com)
Paragraphs in the Sustainability Statement: E1, E2, E3, E4, E5, S1, S2, G1
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Risk management and internal controls
GOV-5
Valmet’s internal control processes follow the framework issued
by the Committee of Sponsoring Organizations (COSO) and
comprises five principal components of internal control: the
control environment; risk assessment; control activities;
information and communication; and monitoring. Valmet’s
control environment is based on Valmet’s corporate culture: the
integrity, values, ethical behavior, and competence of Valmet’s
personnel, as well as the direction provided to the personnel by
the Board of Directors. Valmet’s values and control environment
provide the Board of Directors and Valmet’s management with
the basis for reasonable assurance of Valmet achieving the
objectives for internal control. The President and Chief Executive
Officer and the Executive Leadership Team define Valmet’s
values and ethical principles (reflected in the Code of Conduct)
and set the example for the corporate culture, which creates the
basis for the control environment. The same parties, with the
business areas and global functions, are responsible for
communicating Valmet’s values to the organization.
In Valmet, sustainability reporting is centrally managed by the
Sustainability Excellence team which belongs to the Strategy and
Transformation function. The relevant experts in Valmet’s
functions and businesses are responsible for producing the
required sustainability reporting information about their areas of
expertise, with the support of Valmet’s Sustainability Team.
In addition to a general assessment of risks related to
sustainability reporting, Valmet conducted its risk assessment in
2024 through a close analysis of the disclosure requirements in
the ESRS standards and of the individual data points, as well as by
using prior experience of the sustainability reporting
requirements to evaluate the risks and their prioritization. A
review of the disclosure requirements, data points, and related
risks was conducted in connection with the 2025 double
materiality analysis.
Risks related to sustainability reporting have been evaluated
following the guidelines and principles of internal controls and
Enterprise Risk Management process. Based on its assessment,
Valmet has concluded that the main risk areas are related to
disclosures involving estimates, significant judgments, and
information derived from external sources in its value chain. The
main identified reporting risks concern the availability, accuracy,
completeness, and timeliness of reporting.
Based on the acknowledged control principles and methods,
Valmet mitigates these risks by sustainability reporting training
and instructions, with relevant system controls, defined
responsibilities, established review and approval processes and
schedules, and segregation of duties. Valmet’s policies, guidelines,
and working instructions support the control processes and risk
mitigation efforts.
Risks related to sustainability reporting are assessed by relevant
business process owners together with the Sustainability and the
Group Finance functions. They are in charge of establishing an
appropriate internal control framework. Business areas and
functions are responsible for applying these controls as part of the
sustainability reporting process. Sustainability matters are subject
to regular reviews by Valmet’s business area and function
management. The findings of risk assessment and internal
controls are monitored by the Sustainable finance committee,
consisting of Vice President Sustainability, Vice President Group
Finance, Vice President Treasury, and Risk Management, and
Vice President Strategic Research and Development. Any
significant findings are reported to Valmet’s Executive
Leadership Team and the Audit Committee.
Strategy
Strategy, business model and value chain
SBM-1
In 2025 Valmet has announced its new “Lead the Way” strategy.
Valmet’s purpose is to transform industries towards a
regenerative tomorrow. Advancing circularity and unlocking
resource efficiency are part of Valmet’s new strategy. As a result
of the new operating model, Valmet has two reportable segments
for financial reporting purposes: Process Performance Solutions
and Biomaterial Solutions and Services.
In the Process Performance Solutions segment, Valmet’s strategic
mission is to unlock resource efficiency through lifecycle value,
customer-focused innovation and growth in high-quality
technologies, and digital capabilities. The segment consists of two
business areas: Flow Control and Automation Solutions. Within
this segment, Valmet’s customer base includes diverse industries,
where automation and flow control solutions are widely used.
Valmet’s automation solutions, distributed control systems
(DCS), industrial applications, quality management systems,
analyzers and measurements materials, Industrial Internet
solutions and automation services aim to help customers’
businesses by improving production performance and cost-
effectiveness, environmental performance, and efficient use of
materials. Valmet’s valves, pumps, and valve automation
technologies improve the reliability, safety, and performance of
customers’ production processes through continuous monitoring
and advanced analytics.
In the Biomaterial Solutions and Services segment, Valmet’s
strategic mission is to advance circularity through a seamless
lifecycle approach, continuous innovation with customers, and
product cost-competitiveness. The segment consists of three
business areas: Pulp, Energy and Circularity; Packaging and
Paper; and Tissue. This segment supplies lifecycle technologies,
services, and solutions for the pulp, paper, packaging, tissue, and
bioenergy industries. Valmet’s aim is to enhance the
environmental performance of customers by enabling improved
raw material, energy, and water efficiency, and to extend the
lifecycle and improve circularity of customers’ process
technologies with solutions for rebuilds, upgrades, conversions,
and maintenance services.
In Research and Development, the aims are to advance circularity
through Valmet’s technologies and services, covering the entire
customer lifecycle, and to unlock resource efficiency, offering
leading lifecycle value, reliability, optimal customer experience
and market-leading digital capabilities. The drive for product cost
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competitiveness goes hand in hand with the aims to optimize
resource efficiency and advance circularity.
Through innovation, Valmet provides solutions and services to
utilize renewable resources; reduce, reuse and recycle materials
and resources; create closed cycles; and drive the twin transition
for adoption of advanced technologies and move towards fossil-
free operative models. Valmet executes innovation, research and
development activities in close connection with its customers,
who rely on Valmet’s technology leadership. Valmet also works
closely with the wider innovation ecosystem, including leading
universities, research institutes, suppliers, and other research
partners around the world.
Valmet’s Beyond Circularity was a research and development
program in which Valmet and its ecosystem came together to
innovate, renew, and enable their customer industries in the shift
to fossil-free operations and to facilitate the green transition. The
program ended in 2025 and its targets were closely connected to
Valmet’s 2035 Technology vision.
Business model and value chain
The inputs to Valmet’s business model include financial, natural,
and human resources; infrastructure such as locations, suppliers,
and distributors; brand value; technology and research and
development expertise; and dialogue with stakeholders. The
outputs of the business model are Valmet’s technologies, services,
and solutions. The outcomes of the business model are the
economic, social, and environmental impacts of Valmet’s
operations. Valmet has set and communicated its targets for
financial performance, capital allocation priorities, and
shareholder value creation until 2030.
Valmet’s sustainability impacts as well as sustainability related
financial risks and opportunities and their relationship with
Valmet’s business model and value chain are disclosed under
ESRS 2 SBM-3.
Own operations
Valmet has operations globally in approximately 40 countries.
Valmet’s production operations cover Valmet’s own
manufacturing, foundries, and further processing of supplied
components. Most of Valmet’s production comprises machining
and assembly. Valmet’s service operations range from spare part
deliveries to maintenance of wear parts in service workshops, and
complete outsourcing of customer mill functions.
At the end of the year 2025, Valmet had 18,487 (19,310)
employees. The largest countries in terms of headcount are
Finland, China, the USA, Sweden, Brazil, and India. The
breakdown of Valmet’s employees by country is disclosed
under S1-6.
Valmet serves customers in more than 100 countries, and many
of Valmet’s workforce operate daily on customers’ project sites,
mills, or plants. Valmet’s strategic goal is to strengthen its local
presence close to customers and growth markets, which is an
important consideration when hiring new employees.
Upstream value chain
Valmet purchases components, products, materials, and services
from approximately 20,000 active suppliers in more than
60 countries. Valmet’s Global Supply’s centrally managed
organization drives competitiveness by leveraging global
volumes, shared production capacity, and faster execution.
Valmet’s strategic target is to increase procurement close to
customer projects and its own operations. All indirect purchases
supporting Valmet’s operations are procured locally. The ten
largest countries in terms of purchases (EUR million) are
Finland, China, USA, Sweden, Brazil, Italy, Germany, Poland,
India and Estonia. More information about Valmet’s
relationships and supplier management are disclosed under G1-2.
Downstream value chain – use phase of the technologies
In Process Performance Solutions, Valmet’s systematic portfolio
expansion and continuous investment in technology and
digitalization has led to strong growth and profitability. In this
segment, Valmet has a diversified portfolio of customer
industries.
Valmet is the global leader in Biomaterial Solutions and Services,
with a strong lifecycle offering. Global market growth increases
the demand for Valmet’s lifecycle technologies and drives
services across all markets.
Valmet’s technologies have a lifetime of between 10 and 100
years. In 2025, the biggest countries in terms of net sales are the
USA, Brazil, and China, and in terms of income taxes, the USA,
Finland, and Sweden.
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Interest and views of stakeholders
SBM-2, S1 SBM-2, S2 SBM-2
Valmet’s stakeholders can be reasonably expected to be
significantly affected by the company’s activities, products, and
services, while their actions and decisions may, in turn, influence
Valmet’s ability to successfully implement its strategies and
achieve its objectives. Accordingly, Valmet conducts regular
reviews of stakeholder expectations and potential concerns.
Valmet’s stakeholder engagement approach ranges from
structured information sharing to active dialogue and
collaborative initiatives aimed at fostering innovation. Feedback
and insights obtained through these activities are systematically
incorporated into its operational development and decision-
making processes and are considered in the development and
execution of company strategy. The outcomes of stakeholder
engagement are carefully analyzed and utilized by Valmet’s
Management Teams at different levels, directly informing
strategic direction, business model considerations, and
annual planning.
To further strengthen engagement and transparency, Valmet also
provides an external reporting portal (Spotlight) for its
stakeholders. The portal enables the collection and management
of information about incidents and events related to health,
safety, environment, and continuous improvement across Valmet
operations. It is also utilized by Valmet’s own workforce and
serves as a channel for gathering ideas for research and
development purposes. Valmet also offers its TrustLine channel
for reporting suspected violations of Valmet’s Code of Conduct.
It provides Valmet employees and other stakeholders with the
possibility to report concerns anonymously and in their native
language.
The following table includes all the key stakeholders Valmet has identified.
Stakeholder group
Purpose of engagement
Engagement channels
Outcomes and impacts of engagement
Existing and potential
employees and
workers in the value
chain
• Taking into account the interests, views, and rights of
people in own workforce to inform strategy and
business model
• Active dialogue
• Change pulse surveys
• Interactions with European and other employee representative bodies
• Other feedback
• Regular Human Rights Impact Assessments
• External reporting portal
• Analysis and utilization by Valmet Management Teams at different
levels with a direct impact on strategy, planning business model
considerations, and annual planning
• Incident and event management related to health, safety,
and environment
• Continuous improvement in all Valmet operations
Existing and potential
customers
• Ensuring Valmet’s products and services meet
customer needs and expectations
• Meeting customer needs for product development
and innovative solutions
• Developing and improving customer relationships
• Meetings and other direct contact such as customer seminars, events, and fairs
• Reputation and customer satisfaction surveys
• Interactions with specific industry organizations
• External reporting portal
• Beyond Circularity, Valmet’s Research and Development program
• Continuous improvement in all Valmet operations, including research
and development purposes
• Improved customer relationships
• Customer collaboration in research and development
Suppliers and
subcontractors
• Promoting responsible procurement and a
sustainable supply chain
• Ensuring efficient and cost competitive supply chain
• Mutually beneficial relationships with suppliers
• Active dialogue with suppliers
• Sustainable Supply Chain Process
• Supplier Engagement Program
• Local Health, Safety and Environment activities
• Sourcing of sustainable raw materials
• Suppliers’ commitment to the Supplier Code of Conduct
• Cost competitive and resilient supply chain
• Management of sustainability risks
Existing and potential
shareholders and
analysts
• Ensuring that the capital markets have correct and
sufficient information to determine the value of
Valmet shares and to increase awareness of Valmet
as an investment
• Financial statements and interim reviews
• Stock exchange releases and press releases
• General meetings
• Investor meetings
• Site visits
• Seminars
• The company website
• Social media
• Webcasts
• Helping stakeholders assess Valmet’s performance
• Accurate and sufficient information about Valmet is made available
to stakeholders in a timely manner
Media
• Providing accurate, timely, and transparent
information regarding the Valmet’s strategy,
performance, and outlook
• Constructive interaction with the media supports
stakeholder trust and underpins Valmet’s reputation
• The company website
• Stock exchange, press and trade press releases
• Social media channels
• Direct interaction with journalists in the form of interviews, press events, and
background briefings
• Media engagement at Valmet enhances the visibility and credibility of
the company’s strategy and operations
• Consistent and clear external messaging reduces the risk of
misinformation and strengthens stakeholder confidence, thereby
supporting the company’s business model and the long-term
execution of its strategy
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|  SUSTAINABILITY STATEMENT
Stakeholder group
Purpose of engagement
Engagement channels
Outcomes and impacts of engagement
Public authorities,
decision makers, and
regulatory bodies
• Ensuring continued access to market and competitive
advantage for Valmet’s technologies, automation,
and services
• Ensuring available public funding for Valmet’s
relevant research, development, and innovation
projects
• Contributing to a fair and rules-based trade
framework
• Dialogue and cooperation with decision-makers, public authorities, and regulatory
bodies
• Participation to relevant hearings, public consultations, and surveys
• Participation in selected joint campaigns
• Participation in relevant standardization work
• Access to market and supportive regulatory requirements for
Valmet’s technologies
• A stable and predictable regulatory environment
• Early awareness of the changing political operating environment
• Regulatory compliance
Local communities
• Contributing positive impacts in Valmet’s operating
areas and communities affected by customer projects
• Enhancing Valmet’s engagement in communities
• Global Social Responsibility Program
• Engagement during impact assessments
• Support for local projects
• Donations to local communities, affected stakeholders, and
non-profit organizations
• Dialogue with communities
Research institutes,
universities, colleges,
vocational schools as
well as other existing
and potential partners
• Cooperation and ecosystem engagement to build
new knowledge and solutions
• Improving Valmet’s readiness to support the green
transition in Valmet’s customer industries based on
the Group’s Technology Vision 2035
• Increasing awareness of Valmet among potential
employees, ecosystem partners, and other
collaborators.
• Collaboration with research institutes, universities, colleges, and vocational
schools in joint initiatives and programs
• Collaboration in joint initiatives and programs with other ecosystem partners such
as other companies and innovation organization
• Valmet’s research, development and innovation activities, incl. Beyond Circularity,
Valmet’s Research and Development Program.
• New knowledge and solutions developed together with the partners
within the Research and Development ecosystem
• Positive image of the industry in society
• Improving the employer image of Valmet
• Beyond Circularity ecosystem participants contribute to the renewal
of the pulp and paper industry and the acceleration of the
green transition.
Trade associations,
think-tanks, and non-
governmental
organizations
• Information sharing
• Ensuring the industry’s voice in public policy making
• Exchanging views to strengthen thought-leadership
on sustainability.
• Memberships in relevant organizations, as well as representation on, e.g., their
boards, committees, and working groups
• Workshops, and internal and external events
• Bilateral meetings
• Joint initiatives and programs.
• Strengthened industry’s voice in policy discussions and in society
• Improved understanding of non-governmental organizations’
sustainability priorities.
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Material impacts, risks, and opportunities, and their interaction with strategy and business model
SBM-3, E1-SBM-3, E4 SBM-3, S1 SBM-3, S2 SBM-3
Valmet’s material topics, sub-topics, and sub-sub-topics
Material sustainability topic
Material sub-topic
Material sub-sub-topic
Material from own operation’s perspective
Material from value chain’s perspective
E1 Climate change
Climate change mitigation
-
Yes
Yes
Energy
-
Yes
Yes
E2 Pollution
Pollution of air
-
No
Yes
Pollution of water
-
No
Yes
E3 Water and marine resources
Water
Water consumption
No
Yes
E4 Biodiversity and ecosystems
Direct impact drivers of biodiversity loss
Climate change
No
Yes
Pollution
No
Yes
E5 Resource use and
circular economy
Resource inflows, including resource use
-
Yes
Yes
Resource outflows related to products and services
-
Yes
Yes
S1 Own workforce
Working conditions
Social dialogue
Yes
No
Freedom of association
Yes
No
Collective bargaining
Yes
No
Health and safety
Yes
No
Equal treatment and opportunities for all
Gender equality and equal pay for work of equal value
Yes
No
Diversity
Yes
No
S2 Workers in the value chain
Working conditions
Working time
No
Yes
Adequate wage
No
Yes
Social dialogue
No
Yes
Freedom of association
No
Yes
Collective bargaining
No
Yes
Health and safety
No
Yes
Other work-related rights
Child labor
No
Yes
Forced labor
No
Yes
Adequate housing
No
Yes
Water and sanitation
No
Yes
G1 Business conduct
Corporate culture
-
Yes
No
Protection of whistleblowers
-
Yes
No
Management of relationships with suppliers
including payment practices
-
Yes
Yes
Corruption and bribery
Prevention and detection including training
Yes
No
Incidents
Yes
No
Valmet’s material sustainability matters are  disclosed in the table
above. Related material sustainability impacts, risks, and
opportunities, along with their location in the value chain and
time horizons are described in more detail under each relevant
topic in this section.
The double materiality assessment process is aligned with
Valmet’s Enterprise Risk Management process, and the results of
the double materiality assessment feed into Valmet’s overall
Enterprise Risk Management process. In the 2025 double
materiality assessment review, the financial risk and opportunity
scaling has been fully aligned with Valmet’s Enterprise Risk
Management thresholds. Additionally, some descriptions of
impacts, risks, and opportunities have been updated. The changes
made in the 2025 double materiality assessment compared to
2024 have been indicated after each relevant section (E5, S1, S2),
and the double materiality assessment process is described under
ESRS 2 IRO-1. All Valmet’s IRO’s are covered by the ESRS
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Disclosure Requirements, and no additional entity-specific
disclosures have been disclosed.
Valmet’s sustainability management focuses on identified
impacts, risks, and opportunities, and addresses them through its
Sustainability Agenda and Climate Transition Plan. Sustainability
matters are part of Valmet’s strategy and annual planning
processes. Each business area and the Global Supply function
have sustainability targets which are reviewed regularly by
Valmet’s top management (see ESRS 2 GOV-2). Valmet also has
incentive schemes at different levels of the organization to drive
sustainability (see ESRS 2 GOV-3).
No such financial effects have been identified in Valmet’s Double
Materiality Analysis that would require reporting in the 2025
Financial Statements.
E1 Climate change related impacts, risks and opportunities
Material
sustainability
matter
Material impact, risk or opportunity
in brief
Description of the impact, risk or opportunity
Category
Time horizon
Location in value chain
Climate change
mitigation
GHG emissions from own operations
Greenhouse gas (GHG) emissions are caused using fuels and production of electricity, district heat, and
steam consumed in Valmet locations
Actual negative  impact
Short- and
medium-term
Own operations
GHG emissions from value chain
Significant upstream and downstream GHG emissions are caused by the production of raw materials and
components used in Valmet’s technologies, transportation, and distribution, and the use of installed
technologies by Valmet’s customers
Actual negative impact
Short-, medium-,
and long-term
Upstream and
downstream value chain
Transition to a low-carbon circular
economy, and related regulation
The transition to a low-carbon circular economy and emerging regulation increases demand for Valmet’s
biomaterial solutions and services and process performance solutions
Financial opportunity
Medium- and
long-term
Own operations
Upstream and
downstream value chain
Emerging climate-related regulation
and carbon pricing mechanisms
Transition risk due to emerging climate-related regulation and carbon pricing mechanisms, which may
affect Valmet’s technologies and cause financial risk
Financial risk
Short-, medium-,
and long-term
Own operations
Upstream and
downstream value chain
Energy
Energy consumption in own operations
Energy consumption in Valmet’s locations
Actual negative impact
Short- and
medium-term
Own operations
Energy consumption in downstream
value chain
Energy consumption in Valmet’s solutions/technologies throughout their lifecycle (in pulp, paper,
packaging, tissue, and energy industries)
Actual negative impact
Short- and
medium-term
Downstream value chain
Energy-intensive raw materials
Usage of energy-intensive raw materials, primarily steel, in Valmet’s solutions
Actual negative impact
Short- and
medium-term
Upstream value chain
Transition to a low-carbon circular
economy, and related regulation
The transition to a low-carbon circular economy and emerging regulation increases demand for energy-
efficient technologies and renewable energy solutions
Financial opportunity
Medium- and
long-term
Own operations
Downstream value chain
Energy transition and related
regulation, energy pricing
Transition risk due to energy transition, emerging energy-related regulation and energy pricing volatility,
which may affect Valmet’s own operations and technologies
Financial risk
Short-, medium-,
and long-term
Own operations
Upstream and
downstream value chain
The successful management of climate-related risks and
opportunities is a key element in the delivery of Valmet’s strategy.
Valmet has conducted a resilience analysis of its strategy and
business model in relation to climate change across the value
chain, including the supply chain, Valmet’s own operations, and
customers’ use phase of Valmet’s technologies.
The potential long-term impacts of climate change were analyzed
in 2021 through two different scenarios: in the first, the global
warming is limited to 1.5 °C; in the second, the global warming
has reached 4 °C. The results of the resilience analysis, including
the results from the use of scenario analysis, are disclosed in more
detail under ESRS E1 IRO-1.
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E2 Pollution-related impacts, risks and opportunities in value chain
Material
sustainability
matter
Material impact, risk or opportunity
in brief
Description of the impact, risk or opportunity
Category
Time horizon
Location in value chain
Pollution of air
Air emissions from the upstream
value chain
Valmet’s upstream value chain includes manufacturing of components, which contributes to
environmental impacts such as air pollution, including particulate matter and volatile organic compounds
Actual negative impact
Short- and
medium-term
Upstream value chain
Air emissions from the downstream
value chain
While using Valmet’s biomaterial and process performance solutions in pulp, paper, energy, and other
process industries, customers generate air emissions such as particulate matter, hazardous air
pollutants, nitrogen oxides, sulfur oxides, carbon monoxide, and volatile organic compounds that require
emission control
Actual negative impact
Short- and
medium-term
Downstream value chain
Developing air emission control solutions
Customers increasingly need to reduce air emissions, which creates a business opportunity for Valmet’s
air emission control solutions
Financial opportunity
Short- and
medium-term
Own operations
Downstream value chain
Pollution of water
Water emissions from the downstream
value chain
While using Valmet’s biomaterial and process performance solutions in pulp, paper, energy, and other
process industries, customers generate water emissions such as biological and chemical demands (BOD
and COD) and other pollutants that require wastewater treatment
Actual negative impact
Short- and
medium-term
Downstream value chain
E3 Water related impacts, risks and opportunities in value chain
Material
sustainability
matter
Material impact, risk or opportunity
in brief
Description of the impact, risk or opportunity
Category
Time horizon
Location in value chain
Water
consumption
Water-consuming manufacturing
processes in the upstream value chain
Valmet’s upstream value chain includes water-consuming processes, such as steel manufacturing
Actual negative impact
Short- and
medium-term
Upstream value chain
Water-consuming manufacturing
processes in the downstream value chain
Valmet’s customers in the pulp, paper, tissue, and board industries operate water-intensive process
technologies
Actual negative impact
Short- and
medium-term
Downstream value chain
Developing water-saving solutions
Increasing customer demand for solutions that improve water management efficiency and closed loop
water systems is a business opportunity for Valmet
Financial opportunity
Short- and
medium-term
Own operations
Downstream value chain
E4 Biodiversity and ecosystems related impacts, risks and opportunities in value chain
Material
sustainability
matter
Material impact, risk or opportunity
in brief
Description of the impact, risk or opportunity
Category
Time horizon
Location in value chain
Direct impact
drivers of
biodiversity loss
Impact of climate change on
biodiversity loss
Valmet’s own operations and upstream and downstream value chains contribute to climate change,
which is a driver of biodiversity loss
Actual negative impact
Long-term
Upstream and
downstream value chain
Impact of air and water pollution on
biodiversity loss
Valmet’s upstream and downstream value chains contribute to air and water pollution, which is a driver
of biodiversity loss
Actual negative impact
Long-term
Upstream and
downstream value chain
Valmet’s locations are on land zoned for commercial or industrial
use by the local authorities. Sites that are located in or near
biodiversity-sensitive areas are not considered material because
Valmet has not identified activities that cause significant direct
environmental impacts to the nearby biodiversity sensitive areas.
Valmet’s activities do not directly negatively affect these areas by
leading to the deterioration of natural habitats and the habitats of
species or to the disturbance of the species for which a protected
area has been designated. Currently, no direct mitigation
measures have been implemented in these areas.
Valmet’s own operations do not directly affect threatened species
or directly negatively impact land degradation, desertification, or
soil sealing. Valmet manages its locations in compliance with
local environmental permits and requirements. Locations follow
ISO 14001:2015 certified environmental management systems
including operational control measures for hazardous substances,
air emissions, noise, water effluent, and waste, as well as
emergency preparedness and response.
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E5 Resource use and circular economy related impacts, risks and opportunities
Material
sustainability
matter
Material impact, risk or opportunity
in brief
Description of the impact, risk or opportunity
Category
Time horizon
Location in value chain
Resource inflows
– Valmet’s use of
materials
Production of technologies requiring
large quantities of materials
The production of Valmet’s products requires large quantities of materials. The most material resource
inflows are steel, polymers, electronic components, and packaging materials.
Actual negative impact
Short- and
medium-term
Own operations
Upstream value chain
Resource outflows
– Valmet’s
solutions
Technology lifecycle extension
Valmet’s solutions and services which extend the lifecycle of technologies used by customers
Actual positive impact
Financial opportunity
Short- and
medium-term
Own operations
Downstream value chain
Technologies enabling the use and
conversion of renewable and recycled
resources
Valmet’s biomaterial and process performance solutions enable the conversion of renewable and
recycled resources into solutions in the pulp, paper, board, tissue, and energy industries and renewable
resource use in the energy and other process industries
Actual positive impact
Short- and
medium-term
Downstream value chain
Solutions enabling circularity
Valmet’s solutions enable circularity for customers through material recovery and conversion to the
same or other uses; longer circulation cycles; reduced use of virgin materials; and cascaded use across
industries concerning process residuals
Actual positive impact
Short- and
medium-term
Downstream value chain
Demand for resource-efficient and
renewable resource use technologies
Increasing demand for resource-efficient biomaterial solutions that enable the use of renewable raw
materials and process performance solutions that improve resource efficiency is a business opportunity
for Valmet
Financial opportunity
Short- and
medium-term
Own operations
Downstream value chain
In the 2025 double materiality analysis review, the following
changes and updates have been made to the material impacts,
risks and opportunities compared to 2024: the positive impacts
regarding decreasing resource and waste have been removed.
They are considered as actions to mitigate negative impacts.
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S1 Own workforce related impacts, risks and opportunities
Material
sustainability
matter
Material impact, risk or opportunity
in brief
Description of the impact, risk or opportunity
Category
Time horizon
Location in value chain
Working
conditions
Enabling social and other forms
of dialogue
Valmet has practices in place for social and other forms of dialogue with employees in all
Valmet countries
Actual positive impact
Short- and
medium-term
Own operations
Collective bargaining and freedom of
association practices
Valmet has operations in countries where collective bargaining and/or freedom of association is either
limited or not a common practice
Actual negative impact
Short-, medium-,
and long-term
Own operations
Exposure to health and safety risks
Valmet’s workforce is exposed to health and safety risks during work activities which can cause injuries
and illnesses
Actual negative impact
Short-, medium-,
and long-term
Own operations
Equal treatment
and opportunities
for all
Consequences of gender imbalance
Valmet has a significant gender imbalance which can cause unintentional discrimination and inequalities,
e.g., in hiring, career progression, and pay equity
Actual negative impact
Short-, medium-,
and long-term
Own operations
Valmet’s business model includes its own production for key
products, being close to its customer base, and providing
installation, maintenance, and modernization services. Some of
Valmet’s operations are in high-risk countries with systemically
limited possibility of freedom of association and collective
bargaining, as well as social dialogue which are identified
negative impacts arising from this strategy and business model. 
Valmet’s business model is also connected with negative health
and safety impacts from individual work-related incidents,
particularly in the production and service environments, and a
significant gender imbalance partly due to the industry in which
Valmet operates. The connected positive impacts arising from the
strategy and business model occur through Valmet’s efforts to
boost employee engagement which impact all employees.
Analysis of employee data shows that females as the
underrepresented gender and employees located in regions where
collective bargaining is limited or not common practice are at
greater risk of being negatively affected.
Analysis of work-related injury and illness data shows that
Valmet’s workforce in the operations and manufacturing, project
management, and service job families are more at risk of being
negatively affected by health and safety impacts. The main risks
of work-related injury and illness are associated with the
unexpected start-up of machinery, mechanical lifting, working at
heights or in confined spaces, the use of tools and equipment,
manual handling, hot work, exposure to hazardous substances
and radiation, electrical work, road travel, exposure to infectious
diseases, and the social and organizational work environment.
Workplace hazards can cause physical harm of varying severity,
occupational illnesses, sensory impairments, infections, stress
related ill health, and in extreme cases fatal injuries.
Valmet frequently monitors and updates its definition of high-
risk regions and geographies by assessing the country risks
matrix, which is based on Zurich’s Risk Room and contains
country- and industry-level data to assess economic, societal,
technological, environmental, and geopolitical risks. Based on the
classification, many cost-competitive countries (CCC), especially
in Southeast Asia, South America, and Africa, are classified as
high-risk.
Valmet’s own operations are not at significant risk of forced labor
or child labor.
Valmet considers sustainability upskilling of Valmet’s own
employees as an impact arising from its strategy, and its Climate
Transition Plan. However, in Valmet’s double materiality
assessment, these have not been identified as material.
In the 2025 double materiality analysis review, the following
changes and updates have been made to the material impacts,
risks, and opportunities compared to 2024: Gender imbalance
posing a risk of unintentional discrimination and inequalities has
been changed from a potential negative impact to an actual
negative impact. Additionally,  the positive impact identified in
2024 regarding proactive measures to address potential
inequalities has been deleted. Based on the current analysis, this is
seen more as an action to mitigate negative impacts.
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S2 Workers in the value chain related impacts, risks and opportunities
Material
sustainability
matter
Material impact, risk or opportunity
in brief
Description of the impact, risk or opportunity
Category
Time horizon
Location in value chain
Working
conditions
Collective bargaining, freedom of
association, adequate wages and
working time
Valmet has operations in countries where collective bargaining and/or freedom of association are
limited or not common practice. Value-chain workers in high-risk countries may lack legislated access to
freedom of association, collective bargaining, adequate wages, and/or can be subject to excessive
working hours
Actual negative impact
Short-, medium-,
and long-term
Upstream and
downstream value chain
Exposure to health and safety risks
Value-chain workers can be exposed to health and safety risks during work activities which can cause
injuries and illnesses in the provision of products and services to Valmet
Actual negative impact
Short-, medium-,
and long-term
Upstream and
downstream value chain
Measures to improve working conditions,
and health and safety
Through supplier engagement processes, Valmet can improve the working conditions and health and
safety of value-chain workers
Potential positive
impact
Short- and
medium-term
Upstream and
downstream value chain
Other work-related
rights
Risks to vulnerable value chain workers
Young workers and migrant workers are identified as vulnerable groups among value-chain workers.
Migrant workers have an increased risk of forced or bonded labor, and young workers may be exposed
to hazardous or harmful work
Potential negative
impact
Short-, medium-,
and long-term
Upstream and
downstream value chain
Access to adequate housing and
sanitation
Value chain workers often reside in temporary accommodations on-site, and there is a potential
negative impact related to adequate housing and sanitation, particularly in high-risk countries
Potential negative
impact
Short-, medium-,
and long-term
Upstream and
downstream value chain
Value chain workers who could be materially impacted by
Valmet’s operations include the following workers in Valmet’s
value chain:
• Upstream: Valmet’s suppliers’ workers who are working
mainly on the suppliers’ own premises.
• Own operations: Valmet’s suppliers’ workers who are working
as service providers on Valmet’s premises, and the supplier
controls the work. These include, for example, consultants,
engineering services workers, maintenance contractors, and
workers from outsourced services such as cleaning, security,
and logistics.
• Downstream: Valmet’s supplier’s workers who are working as a
Valmet site subcontractor for construction, installation, and
maintenance services on the customer’s premises, and the
supplier controls the work.
Due to Valmet’s business model and the industries in which it
operates and serves, the company has global value chains that
also extend into countries considered high-risk from a
sustainability perspective. Valmet strives to develop ethical
practices and ensure decent working conditions throughout the
value chain, as well as opportunities for local employment and
economic activity. For example, as a part of Valmet’s
Sustainability Due Diligence Framework, Valmet conducts
Salient human rights issues analysis, and Human Rights Impact
Assessments in its own operations and upstream value chain, as
well as Health, Safety, and Environment and Supplier
Sustainability Audits. Based on its Sustainability Due Diligence
practices, Valmet has identified actual and potential negative
impacts and a potential positive impact related to working
conditions and other work-related rights in its value chain, as
outlined in the table above.
The potential positive impact related to working conditions
involves improving the working conditions and health and safety
of value chain workers through Valmet’s supplier engagement
processes. The actual and potential negative impacts related to
value chain workers involve working conditions and other work-
related rights.
Valmet continuously screens potential negative human rights
impacts throughout its value chain. The most salient human
rights risks connected to Valmet’s value chain are related to the
risk of bonded labor, inadequate wages and work permits,
excessive working hours, lack of freedom of association and
collective bargaining, the position of young workers and migrant
workers, and occupational health and safety. Possible migrant
workers and young workers are identified as vulnerable groups in
the value chain, and they have a heightened risk of being exposed
to negative impacts. In Valmet’s value chain, possible migrant
workers are typically employed by site sub-contractors in the
construction and installation of projects.
Negative impacts related to lack of freedom of association and
collective bargaining, inadequate wages, and excessive working
hours remain a risk in all supplier categories in high-risk
countries. Value-chain workers are exposed to similar hazards in
their work activities as Valmet’s own workforce, as described in
S1-4. Valmet’s site subcontractors working on customer premises
may be at risk of severe work-related injuries and illnesses
associated with the unexpected start-up of machinery, working at
heights and in confined spaces, and mechanical lifting. Young
workers may be especially exposed to hazardous or harmful work
or unsafe working conditions.
In the industry in which Valmet operates, value chain workers
often reside in temporary accommodation such as on-site
dormitories or project-based housing for the duration of their
assignments. Valmet has identified potential adverse impacts
related to the adequacy of these living conditions – particularly
regarding access to adequate sanitation and overall housing
standards – especially in high-risk countries.
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Valmet frequently monitors and updates its definition of high-
risk regions and geographies by assessing the country risks
matrix, which is based on Zurich’s Risk Room and contains
country- and industry-level data to assess economic, societal,
technological, environmental, and geopolitical risks. Based on the
classification, many cost-competitive countries (CCC), especially
in Southeast Asia, South America, and Africa, are classified
as high-risk.
In the 2025 double materiality analysis review, the following
changes and updates have been made to the material impacts,
risks, and opportunities compared to 2024: two additional
material sub-sub-topics were identified: Water and sanitation;
and Adequate housing.
G1 Business Conduct related impacts, risks and opportunities
Material
sustainability
matter
Material impact, risk, or opportunity
in brief
Description of the impact, risk, or opportunity
Category
Time horizon
Location in value chain
Corporate culture
Actions to promote corporate culture
Valmet’s actions to promote corporate culture ensure that Valmet does business ethically and legally,
that employees feel safe working for Valmet, and that stakeholders consider Valmet a trusted
business partner
Actual positive impact
Short-, medium-,
and long-term
Own operations
Lack of ethical corporate culture
Failures in creating an ethical corporate culture can lead to unethical or illegal business conduct. It can
subject employees and stakeholders to negative effects such as unfair treatment or discrimination
Potential negative
impact
Short-, medium-,
and long-term
Own operations
Protection of
whistleblowers
Creating a safe environment for raising
concerns
Valmet’s actions to promote corporate culture ensure that employees and stakeholders feel
comfortable raising concerns, and that whistleblowers are protected, and any potential misconduct is
caught before severe consequences
Actual positive impact
Short-, medium-,
and long-term
Own operations
Retaliation against whistleblowers
Failure to protect whistleblowers can lead to retaliation against the reporter
Potential negative
impact
Short-, medium-,
and long-term
Own operations
Corruption and
bribery
Adequate measures to prevent
corruption and bribery
Valmet’s successful measures to prevent corruption and bribery, money laundering, and terrorism
financing promote its reputation as a reliable partner, with whom ethical business conduct principles
are implemented
Actual positive impact
Short-, medium-,
and long-term
Own operations
Inadequate measures to prevent
corruption and bribery
Valmet’s inadequate measures to prevent corruption and bribery, money laundering, and terrorism
financing may lead to violation of the Code of Conduct and illegal behavior. Being involved in a
corruption or bribery, money laundering, or terrorism financing incident would have negative effects on
people and society.
Potential negative
impact
Medium- and
long-term
Own operations
Management of
relationships with
suppliers
Promoting employment and sustainable
business practices
Valmet’s purchases of goods and services contribute to the employment of value-chain workers.
Valmet’s Supplier Code of Conduct promotes sustainable business practices in the supply chain
Actual positive impact
Short- and
medium-term
Upstream value chain
Non-compliance with payment practices
Failure to comply with Valmet’s payment practices could cause negative impacts to suppliers
Potential negative
impact
Short-, medium-,
and long-term
Own operations
Upstream value chain
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Impact, risk and opportunity management
Description of the process to identify and assess
material impacts, risks and opportunities
IRO-1, E1 IRO-1, E2 IRO-1, E3 IRO-1, E4 IRO-1, E5 IRO-1, G1 IRO-1
General
Valmet has conducted a double materiality assessment to identify
and assess its actual and potential negative and positive impacts
on the environment and people, as well as sustainability-related
financial risks and opportunities in its own operations and across
the value chain in the short, medium, and longer terms. The
double materiality assessment determined the disclosure
requirements to be included in Valmet’s CSRD reporting scope.
Valmet reviews the results of the double materiality assessment
annually and reports accordingly.
Valmet’s first double materiality assessment was started in 2023
and finalized in 2024. The initial assessment process was based on
a comprehensive study, interviews with subject matter experts, as
well as affected external and internal stakeholders. The
information sources Valmet utilized in the double materiality
assessments included outcomes from internal workshops,
feedback from interviews with external stakeholders, previous
impact assessments and sustainability audits conducted by
Valmet, subject matter expertise, as well as research and articles
from external sources.
In 2025, Valmet conducted its double materiality assessment
review to analyze the validity of the initial double materiality
assessment and potential changes required. Four workshops were
organized with internal stakeholders and subject matter experts
from the Sustainability, Health, Safety and Environment, People
and Culture, Risk Management, Ethics and Compliance, Global
Supply and Research and Development functions. These
workshops were designed to identify and analyze potential new
impacts, risks, and opportunities, review the scoring of the
current impacts, risks, and opportunities, and to map the specific
areas of the value chain where the impacts, risks, and
opportunities might occur. In addition to the information
sources utilized in the initial double materiality assessment,
Valmet used new external science-based research data to support
the review.
Assessment scope
Valmet assessed the impacts, risks, and opportunities
encompassing its own operations and the upstream and
downstream value chains. For the purposes of the double
materiality assessment and statutory sustainability reporting,
Valmet has defined its value chain to include the following stages
where it is causing or contributing to impacts:
• Upstream value chain: suppliers’ manufacturing of
components; Valmet’s sourcing of raw materials; and
transportation to Valmet.
• Own operations: research and development; engineering; own
production; project deliveries; services; and maintenance of
customers’ technologies.
• Downstream value chain: the use phase of Valmet’s
technologies.
Valmet has not included in the reporting boundary the following
activities on which Valmet does not have a direct impact, or
which Valmet does not directly control:
• Upstream value chain: activities and sourcing by sub-suppliers
or sub-sub-suppliers who are not in a relationship with Valmet
or Valmet’s customer projects
• Downstream value chain: activities and sourcing of raw
materials by Valmet’s customers and end-of-life treatment of
the products.
Double materiality assessment
In Valmet’s impact assessment, both positive and negative
impacts and actual and potential impacts related to sustainability
matters were considered. Valmet prioritized negative impacts
based on their relative severity (scale, scope, and irremediably)
and likelihood, and positive impacts on their relative benefit
(scale and scope) and likelihood. In the case of a potential
negative human rights impact, the severity of the impact takes
precedence over its likelihood.
The assessment scale used for determining the severity or benefit
of impacts was guided by the Sustainability Due Diligence
Process defined in the UN Guiding Principles on Business and
Human Rights and the OECD Guidelines for Multinational
Enterprises for Responsible Business Conduct, as well as the
EFRAG Implementation Guidance for Materiality Assessment.
In the process of assessing, identifying, and prioritizing risks and
opportunities that have or could potentially have financial
impacts, Valmet employed a scale measuring the size of the
financial effect and its likelihood. The scale was the same as in
Valmet’s Enterprise Risk Management Process. The estimated
potential magnitude of financial effects was based on EBITA. The
estimations of the financial impact focused on the scale of
impacts rather than on the precise valuation of the financial
effects. For financial effects that could not be reliably quantified,
the assessment relied on qualitative factors and ranges, as
outlined in the EFRAG Implementation Guidance for Materiality
Assessment. The connections of the impacts and dependencies
with the risks and opportunities were assessed by evaluating the
financial materiality of each sustainability impact.
Consolidation and approval of the results
The materiality of the disclosure requirements and related data
points was determined based on material impacts, risks, and
opportunities. The material impacts, risks, and opportunities and
the changes made in the 2025 double materiality assessment
compared to 2024 have been disclosed under ESRS 2 SBM-3.
The results of the double materiality assessment and Valmet’s
CSRD reporting scope were approved by Valmet’s Audit
Committee. Other internal control procedures related to the
double materiality assessment include a structured methodology
for assessing and prioritizing impacts, risks, and opportunities,
clear criteria for materiality thresholds from both impact and
financial perspectives and documented process and results.
The double materiality assessment process is aligned with
Valmet’s Enterprise Risk management process, and the results of
the double materiality assessment feed into Valmet’s overall
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Enterprise Risk Management process. Valmet’s sustainability
management focuses on identified sustainability impacts, risks,
and opportunities.
Impacts, risks and opportunities related to
climate change
Valmet has an Enterprise Risk Management (ERM) Process in
which climate-related issues are identified and evaluated. The
purpose of the annual ERM process is to identify and evaluate the
most significant risks affecting Valmet’s business areas and
functions, and the Valmet Group as a whole, and to determine
appropriate risk treatment actions. The process covers strategic,
financial, operational, compliance and regulatory, and
sustainability risks, including climate-related physical and
transition risks in the short, medium, and long-terms.
The management of Valmet’s business areas and functions is
accountable for managing risks as part of its daily activities.
Valmet’s Corporate Risk Management coordinates the annual
enterprise risk management process including the assessment of
climate change and environmental risks.
Climate-related risks and opportunities
Valmet’s exposure to climate change -related risks and
opportunities has been analyzed under the following risk
categories: physical (acute and chronic); regulatory;
technological; market; reputational; and social. Exposure refers to
an organization’s vulnerability to negative impacts or ability to
realize positive impacts from the transition to a low-carbon
economy and the impacts of climate change itself.
Valmet has analyzed the potential impact of climate change on its
operations and business environment across the value chain,
including the supply chain, its own operations, and customers’
use phase of Valmet’s technologies. The potential long-term
impacts of climate change have been analyzed using two different
scenarios: In the first, global warming is limited to 1.5 °C; in the
second, global warming has reached 4 °C. The scenarios are in
line with the Task Force on Climate-related Financial Disclosures
(TCFD) reporting. The scenario analysis has enabled Valmet to
identify and quantify climate-related risks and opportunities and
assess its business resilience in different climate scenarios. As part
of its annual reporting process, Valmet analyzes its GHG
emissions inventory across the value chain as reported in E1-6.
The scenarios are set for 2030, as it is far enough in the future to
analyze the potential business impacts when climate-related risks
are most likely to have materialized, and to analyze outcomes
from the company strategy and risk management perspective.
The two scenarios have been chosen because they represent
different future climate states. Physical risks have been further
analyzed until 2050.
In the analysis, short term is defined as one year, medium term as
two to five years, and long-term as more than five years. The
analysis considers the likelihood, magnitude, and duration of
physical hazards or transition events.
Physical risks
Physical risks and exposure to climate-related hazards have been
identified in the short, medium, and long terms in both 1.5 °C
and 4 °C climate scenarios until 2030 and 2050.
Acute physical risks
Acute physical risks in the short and medium terms may be
increases in the frequency and severity of extreme weather events
such as floods and storms that may impact Valmet’s own
production sites in India, China, Europe, and North America by
causing production shutdowns.
Chronic physical risks
Chronic physical risks include long-term shifts in climate
patterns causing rises in sea levels and posing a risk to Valmet’s
operations in China and Indonesia, for example. Access to raw
materials in the supply chain may also be impacted by chronic
changes in the environment. Forest yield volatility and regional
differences are likely to increase, impacting the supply chains of
Valmet’s customers in the pulp and paper industries and
consequently creating both risks and opportunities for Valmet.
Increasing drought increases the risk of forest fires, and warmer
winters are likely to increase the impact of pests and diseases on
forestry yield.
Transition risks and opportunities
Transition risks and opportunities have been identified in the
short, medium, and long terms in a 1.5 °C climate scenario
until 2030.
Opportunities
Valmet’s contribution to the transformation of the pulp, paper,
and energy industries toward a net-zero and circular economy
represents a market opportunity. The transition to a low-carbon
and circular economy is driving increased demand for energy-
efficient technologies and renewable energy solutions.
Emerging regulation related to the energy transition, carbon
capture, and climate change mitigation is expected to further
increase demand for Valmet’s solutions. Customer demand and
market opportunities are growing for air emission control
systems, wastewater treatment, and closed-loop water solutions.
There is also significant business potential in technologies and
solutions that enhance resource efficiency and enable the use of
renewable and recycled resources. Additionally, Valmet’s services
supporting the lifecycle extension of installed technologies
present further business opportunities.
Valmet’s climate performance and sales of net-zero and circular
economy aligned solutions may also improve its access to green
finance, potentially reducing the cost of capital through better
financing terms.
Transition risks
If Valmet’s adaptation to regulation and market changes is low,
there is a risk that competitiveness will be lost, and thus
customers, revenue, and profits. Carbon pricing may increase the
price of Valmet’s key raw materials such as steel. High demand
for bio-based products, as well as the competition for bio-based
and forest-based raw materials, may increase costs for customers.
An increasing risk that biomass utilization as raw material will be
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seen more negatively may also increase reputational risks for
Valmet as a technology provider.
Details of climate-related scenario analysis
Physical risks and exposure to climate-related hazards have been
identified using the Intergovernmental Panel on Climate
Change’s (IPCC) RCP2.6 (1.5 °C) and RCP8.5 (4 °C) climate
scenarios. Transition scenarios were considered for the whole
value chain in accordance with the International Energy Agency
(IEA) (Sustainable Development Scenario and World Energy
Outlook 2020) and International Renewable Energy Agency
(IRENA) (Global Renewables Outlook: Energy Transformation
2050) scenarios. IIASA’s Shared Socioeconomic Pathways (SSPs)
were used alongside the RCPs to analyze the feedback between
climate change and socioeconomic factors such as world
population growth, economic development, and technological
progress.
First scenario: The global warming is limited to 1.5 °C
Valmet is committed to the Paris Climate Agreement’s 1.5-degree
pathway. In this 1.5-degree scenario, where global warming is
limited to 1.5 °C, the Paris Climate Agreement goals have been
met, and the mitigation of climate change has been strong.
In this scenario, it is expected that regulations will be more
ambitious, globally consistent, and will aim for a low-carbon
economy. The demand for sustainable and climate-resilient
solutions will create opportunities for Valmet. Potential risks
arise from the high demand for bio-based products, which will
increase competition for forest-based raw material. The
availability of forest-based raw material for customers in the pulp
and paper and energy industries may also face limitations due to
the need for carbon sinks and the protection of biodiversity.
Second scenario: The global warming has reached 4 °C
The second scenario reflects a situation in which global warming
has reached 4 °C, which means that emissions have continued to
rise at current rates. In this scenario, the transition to a low-
carbon economy is disorganized, as climate policies are
fragmented, carbon markets are not integrated, and carbon
leakage will increase due to large differences in carbon
regulations between countries. Demand for energy- and water-
efficient technologies will grow in some economies, whereas in
other markets, demand is unlikely to change.
In the 4 °C scenario, Valmet’s offering in low-carbon and water-
efficient solutions will provide a limited competitive advantage.
There is also a risk that customers will be unwilling to pay for
such solutions, and that the expectations of customers between
regions will increasingly differ.
Results of the scenario analysis
The results of the scenario analysis are utilized to assess the
resilience of Valmet’s strategy to climate change. The analyzed
drivers mobilize developments that in the short and medium
terms also affect the operating environment. Demand for
technologies enabling fossil-free pulp, paper, and energy
production with alternative energy sources such as biomass and
fossil-free electricity is likely to increase rapidly. Valmet’s
contribution to the transformation of the pulp, paper, and energy
industries for net-zero and a circular economy is a market and
reputational opportunity.
The differences between the 1.5 °C and 4 °C climate scenarios are
expected to become more evident between 2030 and 2050 as
negative climate events become more frequent and severe,
especially in the 4 °C scenario. In the 1.5 °C scenario, emerging
climate-related regulation and carbon pricing mechanisms will
play a bigger role globally, and the related transition risk will
become more significant. In the 4 °C scenario, physical impacts
such as floods, volatile forest yield, storms, and drought
dominate.
Impacts, risks, and opportunities related to
pollution
As part of the double materiality assessment, Valmet evaluated its
business activities to identify actual and potential pollution-
related impacts, risks, and opportunities, and mapped where in
the value chain these might occur. The sources of the screening
included Valmet’s Supplier Sustainability Audit reports and
information obtained from the analysis conducted with the WWF
Biodiversity Risk Filter. Valmet has screened all its locations
against the WWF Biodiversity Risk Filter, and the indicators of
the assessment include pollution. In assessing its pollution-
related impacts, Valmet did not conduct consultations with
affected communities.
Impacts, risks, and opportunities related to water
and marine resources
As part of the double materiality assessment, Valmet evaluated its
business activities to identify actual and potential water-related
impacts, risks, and opportunities, and to recognize the specific
areas of the value chain where these might occur. In the
assessment, Valmet utilized the results of the water risk analysis
conducted for its sites using the WWF Water Risk Filter in 2024.
With the Water Risk Filter, Valmet assessed three types of water-
related business risks: physical; regulatory; and reputational. In
assessing its water-related impacts, Valmet did not conduct
consultations with affected communities.
Impacts, risks, and opportunities related to
biodiversity and ecosystems
As part of the double materiality assessment, Valmet screened its
activities to identify the most material impacts, dependencies,
transition and physical risks, and opportunities related to
biodiversity and ecosystems. Valmet used the ENCORE
(Exploring Natural Capital Opportunities, Risks and Exposure)
tool, the SBTN (Science Based Targets Network) Materiality
Screening tool, and the IBAT (Integrated Biodiversity Assessment
Tool). In assessing its biodiversity- and ecosystem-related
impacts, Valmet did not conduct consultations with affected
communities. Information related to Valmet’s own locations is
disclosed under ESRS 2 SBM-3.
Impacts, risks, and opportunities related to
resource use and circular economy
As part of the double materiality assessment, Valmet screened its
activities to identify the most material impacts, risks, and
opportunities related to resource use and the circular economy.
Valmet selected procurement spend as one factor in determining
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the most material product categories and resource inflows in its
value chain. In addition to procurement spend, Valmet analyzed
its own product portfolio and the materials of which products
consisted. For this purpose, Valmet utilized information from a
product’s Bill of Materials (BOM) or the Life Cycle Assessment
(LCA). The resource outflows materiality assessment focused on
Valmet’s product and service offerings. In assessing its resource-
use- and circular-economy-related impacts, Valmet did not
conduct consultations with affected communities.
Impacts, risks, and opportunities related to
business conduct
In 2025, the double materiality assessment review for business
conduct topics was made in a joint workshop with the
Sustainability and Ethics and Compliance functions. As a result
of the assessment, no need for amendments was identified.
In the initial double materiality assessment, Valmet’s own
operations were divided into five operational sections in the
mapping process: sales; procurement; planning; production; and
projects. In addition, upstream and downstream value chains
have been reviewed as entities without more granular steps. For
each sub-topic, the activities with an actual or potential impact
have been assessed, along with the location of the impact within
the value chain.
Disclosure Requirements in ESRS covered by the
undertaking’s Sustainability Statement
IRO-2
The materiality of disclosure requirements and related data
points was determined based on the material impacts, risks and
opportunities. The explanation of how Valmet has determined
the material information to be disclosed in relation to the
impacts, risks and opportunities, including the use of thresholds,
is disclosed under ESRS 2 IRO-1.
According to the ESRS standards, cross-cutting standards ESRS 1
and ESRS 2 are mandatory for all companies, regardless of the
outcome of the materiality assessment. Further topical standards
E1–E5, S1–S4, and G1 are to be reported based on the results of
the double materiality assessment. Based on Valmet’s double
materiality assessment results, all Environmental standards
E1–E5, Social standards S1–S2, and Governance standard G1
include material disclosure requirements for Valmet.
All ESRS Disclosure Requirements complied with in preparing
this Sustainability Statement have been listed in the following
table. In addition, a list of data points derived from other
EU legislation can be found at the end of this Sustainability
Report.
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ESRS Disclosure Requirements complied with in preparing this Sustainability Statement
ESRS standard
Disclosure requirement
Disclosure requirement description
Page number
ESRS 2
Basis for preparation
BP-1
General basis for preparation of the Sustainability
Statement
BP-2
Disclosures in relation to specific circumstances
Governance
GOV-1
The role of the administrative, management, and
supervisory bodies
GOV-2
Information provided to and sustainability matters
addressed by the undertaking’s administrative,
management and supervisory bodies
GOV-3
Integration of sustainability-related performance in
incentive schemes
GOV-4
Statement on due diligence
GOV-5
Risk management and internal controls over
sustainability reporting
Strategy
SBM-1
Strategy, business model and value chain
SBM-2
Interests and views of stakeholders
SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model
Impact, risk and opportunity management
IRO-1
Description of the process to identify and assess
material impacts, risks and opportunities
IRO-2
Disclosure Requirements in ESRS covered by the
undertaking’s Sustainability Statement
Topical Standards
E1
Climate change
E1.GOV-3
Integration of sustainability-related performance in
incentive schemes
E1.SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model
E1.IRO-1
Description of the processes to identify and assess
material climate-related impacts, risks and
opportunities
E1-1
Transition plan for climate change mitigation
E1-2
Policies related to climate change mitigation and
adaptation
E1-3
Actions and resources in relation to climate change
policies
E1-4
Targets related to climate change mitigation and
adaptation
E1-5
Energy consumption and mix
E1-6
Gross Scopes 1, 2, 3 and Total GHG emissions
ESRS standard
Disclosure requirement
Disclosure requirement description
Page number
E2
Pollution
E2.IRO-1
Description of the processes to identify and assess
material pollution-related impacts, risks and
opportunities
E2-1
Policies related to pollution
E2-2
Actions and resources related to pollution
E2-3
Targets related to pollution
E3
Water and marine sources
E3.IRO-1
Description of the processes to identify and assess
material water and marine resources-related impacts,
risks and opportunities
E3-1
Policies related to water and marine resources
E3-2
Actions and resources related to water and marine
resources
E3-3
Targets related to water and marine resources
E4
Biodiversity and ecosystems
E4.SBM-3
Material impacts, risks and opportunities related to
biodiversity
E4.IRO-1
Description of processes to identify and assess
material biodiversity and ecosystem-related impacts,
risks and opportunities
E4-1
Transition plan and consideration of biodiversity and
ecosystems in strategy and business model
E4-2
Policies related to biodiversity and ecosystems
E4-3
Actions and resources related to biodiversity and
ecosystems
E4-4
Targets related to biodiversity and ecosystems
E5
Resource use and circular economy
E5.IRO-1
Description of the processes to identify and assess
material resource use and circular economy-related
impacts, risks and opportunities
E5-1
Policies related to resource use and circular economy
E5-2
Actions and resources related to resource use and
circular economy
E5-3
Targets related to resource use and circular economy
E5-4
Resource inflows
E5-5
Resource outflow
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ESRS standard
Disclosure requirement
Disclosure requirement description
Page number
S1
Own workforce
S1.SBM-2
Interests and views of stakeholders
S1.SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model
S1-1
Policies related to own workforce
S1-2
Processes for engaging with own workers and
workers’ representatives about impacts
S1-3
Processes to remediate negative impacts and
channels for own workers to raise concerns
S1-4
Taking action on material impacts on own workforce,
and approaches to mitigating material risks and
pursuing material opportunities related to own
workforce, and effectiveness of those actions
S1-5
Targets related to managing material negative
impacts, advancing positive impacts, and managing
material risks and opportunities
S1-6
Characteristics of the undertaking’s employees
S1-8
Collective bargaining coverage and social dialogue
S1-9
Diversity metrics
S1-14
Health and safety metrics
S1-16
Compensation metrics (pay gap and total
compensation)
S1-17
Incidents, complaints and severe human rights
impacts
ESRS standard
Disclosure requirement
Disclosure requirement description
Page number
S2
Workers in the value chain
S2.SBM-2
Interests and views of stakeholders
S2.SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model
S2-1
Policies related to value chain workers
S2-2
Processes for engaging with value chain workers
about impacts
S2-3
Processes to remediate negative impacts and
channels for value chain workers to raise concerns
S2-4
Taking action on material impacts on value chain
workers, and approaches to managing material risks
and pursuing material opportunities related to value
chain workers, and effectiveness of those action
S2-5
Targets related to managing material negative
impacts, advancing positive impacts, and managing
material risks and opportunities
G1
Business Conduct
G1.GOV-1
The role of the administrative, supervisory and
management bodies
G1.IRO-1
Description of the processes to identify and assess
material business conduct-related impacts, risks and
opportunities
G1-1
Business conduct policies and corporate culture
G1-2
Management of relationships with suppliers
G1-3
Prevention and detection of corruption and bribery
G1-4
Confirmed incidents of corruption or bribery
G1-6
Payment practices
List of datapoints in cross-cutting and topical standards that derive from
other EU legislation
The table with references to other EU legislation is presented at the end of this Sustainability Report.
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Environmental information
EU Taxonomy for sustainable finance
The European Union Regulation on the establishment of a
framework to facilitate sustainable investment 2020/852 (the EU
Taxonomy) requires large companies subject to the European
Union Corporate Sustainability Reporting Directive (CSRD)
2022/2464 to disclose the extent to which their economic
activities have a substantial positive environmental impact. The
EU Taxonomy is intended to encourage financial markets to
invest and finance more sustainably. It sets the criteria for
activities that the EU has classified as environmentally
sustainable. The activities described in the EU Taxonomy are
referred to as eligible activities. Eligible activities that also meet
set criteria of (1) a substantial contribution to one of the six
environmental objectives, (2) do no significant harm to the
remaining five environmental objectives, and (3) meet minimum
safeguards, are referred to as taxonomy-aligned activities. Only
with the cumulative fulfillment of all three requirements is the
economic activity taxonomy-aligned.
The currently available criteria allow companies to demonstrate
their contribution to the following environmental objectives:
Climate change mitigation; Climate change adaptation;
Sustainable use and protection of water and marine resources;
Transition to a circular economy; Pollution prevention and
control; and Protection and restoration of biodiversity.
Eligibility and alignment assessment
Valmet is a supplier of lifecycle technologies, services, and
solutions for biomaterial and energy industries, driving circular
transformation. Valmet’s process performance solutions serve a
wide base of diverse industries providing automation and flow
control solutions and enhancing resource efficiency. Valmet has
reviewed its offering against the EU Taxonomy activities to assess
eligibility based on the eligible economic activities listed in the
Climate and Environmental Delegated Acts and related Annexes.
It has also taken into consideration the amendments to the
Climate Delegated Act.
Valmet reports eligibility and alignment for the Climate change
mitigation and the Transition to a circular economy objectives in
accordance with the EU Taxonomy.
In 2025, Valmet’s approach to identifying and reporting
sustainable economic activities consisted of:
1. Eligibility assessment: Mapping of economic activities to
taxonomy activity descriptions and NACE codes.
2. Substantial contribution assessment: Screening of activities
against technical screening criteria.
3. Do no significant harm (DNSH) assessment: Screening of
Valmet’s procedures to ensure that its operations do not cause
significant harm to relevant environmental objectives.
4. Minimum safeguards assessment: A review of Valmet’s
corporate safeguards to ensure that its operating instructions,
company policies, and management system are compliant with
the OECD Guidelines for Multinational Enterprises (OECD),
the UN Guiding Principles on Business and Human Rights
(UNGP), and the International Labour Organization (ILO)
Declaration on Fundamental Principles and Rights at Work.
The minimum safeguards assessment covers the following
social and governance aspects: human and labor rights;
taxation; corruption and bribery; and fair competition.
As a result of the 2025 assessment, the following economic
activities in the EU Taxonomy were identified where Valmet has
taxonomy-eligible activities:
• Climate change mitigation (CCM) 3.1 Manufacture of
renewable energy technologies
• Climate change mitigation (CCM) 3.2 Manufacture of
equipment for the production and use of hydrogen
• Climate change mitigation (CCM) 3.6 Manufacture of other
low-carbon technologies
• Circular economy (CE) 4.1 Provision of IT/OT data-driven
solutions
• Circular economy (CE) 5.1 Repair, refurbishment and
remanufacturing.
Circular economy (CE)
According to the EU Taxonomy, the Circular economy is a
system in which the value of products, materials, and other
resources in the economy are maintained for as long as possible.
Valmet reports the following Circular economy related activities
of EU Taxonomy: 5.1. “Repair, refurbishment and
remanufacturing” and 4.1. “Provision of IT/OT data-driven
solutions”.
5.1 Repair, refurbishment and remanufacturing
Valmet supplies services for the pulp and paper industry and
reports its services and solutions aimed at extending the lifecycle
of machinery and equipment under CE 5.1. Valmet’s solutions
include rebuilds, upgrades, conversions, and maintenance
services for various types of packaging, paper, and tissue
machines as well as related industrial processes. This can involve
replacing old or obsolete parts, installing new technologies,
optimizing process parameters, and enhancing quality and
efficiency. Flow control repair services to customer industries
related to plastics are also included in this activity.
Process parts such as paper machine clothing are considered
consumables and are excluded.
4.1. Provision of IT/OT data-driven solutions
When defining activities under CE 4.1. “Provision of IT/OT data-
driven solutions” Valmet reports automation systems such as
Condition monitoring solutions built for the purpose of remote
or on-site monitoring and predictive maintenance systems for the
pulp, paper, and energy industries.
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Climate change mitigation (CCM)
According to the EU Taxonomy, climate change mitigation
includes activities that contribute to the reduction or prevention
of greenhouse gas emissions or enhance carbon sinks. An
economic activity that is eligible under the environmental
objective of climate change mitigation should contribute
substantially to the stabilization of greenhouse gas emissions by
avoiding or reducing them or by enhancing greenhouse gas
removals. Valmet reports the following Climate change
mitigation related activities of EU Taxonomy: 3.1. “Manufacture
of renewable energy technologies”, 3.2 “Manufacture of
equipment for the production and use of hydrogen”, and 3.6.
“Manufacture of other low carbon technologies”.
3.1. Manufacture of renewable energy technologies
Valmet’s technologies under CCM 3.1. include energy solutions
that enable the use of biomass or biomass originating feedstocks
and technologies enabling the use of biomass in installations with
significant greenhouse gas emission savings. These solutions
include CFB (circulating fluidized bed) boilers and BFB
(bubbling fluidized bed) boilers utilizing biomass, bark, wood
chips, and recycled wood. Additionally, BioTrac projects for
second generation bioethanol are included. BioTrac is a pre-
treatment technology of biomass to produce fuels, chemicals,
pellets, and other valuable end products.
Furthermore, Valmet’s renewable energy technologies (3.1)
include Flow control solutions and Automation solutions such as
Combustion optimization, Network optimization, Emission
reporting and Energy management systems, as well as Distributed
control systems (DCS), for renewable energy technologies.
3.2. Manufacture of equipment for the production and
use of hydrogen
Valmet’s solutions under CCM 3.2. include automation solutions
such as Distributed control systems (DCS), Advanced process
controls, Energy management systems, and Information
management systems delivered to customers manufacturing
green hydrogen.
3.6. Manufacture of other low carbon technologies
Valmet’s solutions under CCM 3.6. include pulp technologies
such as LignoBoost, BioTrac, and lime kiln conversions.
LignoBoost is Valmet’s patented technology for producing lignin
from pulp mill black liquor. BioTrac is a pre-treatment
technology of biomass to produce fuels, chemicals, pellets, and
other valuable end products. In lime kiln conversions, the fuel
source is transitioned from fossil fuel to bioenergy such as
wood powder.
Valmet’s Green Finance Framework
Valmet has established a Green Finance Framework applicable
for the issuance of green debt instruments. The Green Finance
Framework is designed to support the financing or refinancing of
eligible assets and expenditures that promote two key
environmental objectives: mitigating climate change and enabling
the transition to a circular economy.
At the end of 2025, Valmet had two outstanding green debt
instruments totaling EUR 250 million which are issued under the
Green Finance Framework. The taxonomy alignment of these
instruments is 100%.
Key performance indicators
Valmet has made some estimations in the calculation of the key
performance indicators (KPIs), net sales1, capital expenditure
(CapEx), and operating expenditure (OpEx), due to Valmet’s
interpretation of the EU Taxonomy. Double counting has been
avoided by classifying external revenue streams into taxonomy-
eligible economic activities only once. The shares of eligible and
aligned net sales have been used as a key for calculating eligible
and aligned OpEx and CapEx. Intangible and tangible assets as
well as right-of-use assets acquired in business combinations
were not included in the calculation of eligible and aligned CapEx
based on net sales key.
Taxonomy net sales2 is calculated according to the EU Taxonomy
definition of turnover and in line with revenue recognition
standard IFRS 15, and is included in Valmet’s total net sales
presented in Valmet’s consolidated financial statements.
It includes the external sales of taxonomy eligible and/or aligned
activities. Net sales have been calculated separately in each
business area for eligible and aligned activities.
Taxonomy CapEx3 is presented and measured in line with the
CapEx presented in the Group’s financial statements. It consists
of additions to property, plant and equipment, and intangible
assets as well as investments in right-of-use assets. Total CapEx
also covers additions to tangible and intangible assets, as well as
right-of-use assets resulting from business combinations.
Additions to goodwill are not included in CapEx.
The EU Taxonomy definition of OpEx consists of expenses
related directly to the maintenance and servicing of assets,
including facility improvements and research and development
projects supporting the transition to a low-carbon economy.
Valmet has applied a conservative interpretation of the
Taxonomy OpEx definition. Raw materials and salaries of
employees performing repairs, maintenance, and services of
eligible fixed assets, are excluded.
The following tables present Valmet’s 2025 Taxonomy KPIs
associated with Valmet’s taxonomy-eligible economic activities
and template 1 presents information on nuclear and fossil gas
related activities according to the Complementary Climate
Delegated Act.
1 Valmet uses the term net sales in its financial statements, while the EU Taxonomy
Regulation refers to the term Turnover.
2 Consolidated financial statements, Note 3. Revenue recognition.
3 Consolidated financial statements, Note 4. Intangible assets and property, plant and
equipment and Note 5. Leases.
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|  SUSTAINABILITY STATEMENT
Turnover1
2025
Substantial Contribution Criteria
DNSH criteria ('Does Not Significantly Harm')
Economic activities
Code
Turnover (EUR million)
Proportion of turnover 2025
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular economy
Biodiversity
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular economy
Biodiversity
Minimum safeguards
Proportion of taxonomy-aligned (A.1.)
or eligible (A.2.) turnover, 2024
Category enabling activity
Category transitional activity
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Manufacture of renewable energy technologies
CCM 3.1
267
5.1%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
2.8%
E
Manufacture of equipment for the production and use of hydrogen
CCM 3.2
0
—%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
—%
E
Manufacture of other low carbon technologies
CCM 3.6
31
0.6%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0.1%
E
Provision of IT/OT data-driven solutions
CE 4.1
9
0.2%
N/EL
N/EL
N/EL
N/EL
Y
N/EL
Y
Y
Y
Y
Y
Y
Y
0.2%
E
Repair, refurbishment and remanufacturing
CE 5.1
1,401
27.0%
N/EL
N/EL
N/EL
N/EL
Y
N/EL
Y
Y
Y
Y
Y
Y
Y
19.9%
E
Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1)
1,709
32.9%
5.7%
—%
—%
—%
27.1%
—%
Y
Y
Y
Y
Y
Y
Y
23.0%
Of which Enabling
1,709
32.9%
5.7%
—%
—%
—%
27.1%
—%
Y
Y
Y
Y
Y
Y
Y
23.0%
E
Of which Transitional
0
—%
—%
—%
T
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Manufacture of renewable energy technologies
CCM 3.1
76
1.5%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
4.4%
Manufacture of equipment for the production and use of hydrogen
CCM 3.2
0
—%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
—%
Manufacture of other low carbon technologies
CCM 3.6
0
—%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0.1%
Provision of IT/OT data-driven solutions
CE 4.1
0
—%
N/EL
N/EL
N/EL
N/EL
EL
N/EL
—%
Repair, refurbishment and remanufacturing
CE 5.1
0
—%
N/EL
N/EL
N/EL
N/EL
EL
N/EL
—%
Turnover of Taxonomy-eligible but not environmentally sustainable activities (not
Taxonomy-aligned activities) (A.2)
76
1.5%
1.5%
—%
—%
—%
—%
—%
4.5%
A. Turnover of Taxonomy-eligible activities (A.1 + A.2)
1,785
34.3%
7.2%
—%
—%
—%
27.1%
—%
27.4%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities
3,412
65.7%
TOTAL
5,197
100%
1 Net Sales is used in other parts of Valmet´s financial statements, while the EU Taxonomy Regulation uses the term Turnover.
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|  SUSTAINABILITY STATEMENT
CapEx
2025
Substantial contribution criteria
DNSH criteria ('Does Not Significantly Harm')
Economic activities
Code
CapEx (EUR millions)
Proportion of CapEx, 2025
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular economy
Biodiversity
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Minimum safeguards
Proportion of Taxonomy- aligned (A.1.)
or eligible (A.2.) CapEx,  2024
Category enabling activity
Category transitional activity
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Manufacture of renewable energy technologies
CCM 3.1
3
1.5%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
1.0%
E
Manufacture of equipment for the production and use of
hydrogen
CCM 3.2
0
—%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
—%
E
Manufacture of other low carbon technologies
CCM 3.6
0
0.1%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
—%
E
Provision of IT/OT data-driven solutions
CE 4.1
0
0.1%
N/EL
N/EL
N/EL
N/EL
Y
N/EL
Y
Y
Y
Y
Y
Y
Y
0.1%
E
Repair, refurbishment and remanufacturing
CE 5.1
54
28.9%
N/EL
N/EL
N/EL
N/EL
Y
N/EL
Y
Y
Y
Y
Y
Y
Y
12.9%
E
CapEx of environmentally sustainable activities (Taxonomy-aligned) (A.1)
57
30.7%
1.7%
—%
—%
—%
29.2%
—%
Y
Y
Y
Y
Y
Y
Y
14.0%
Of which Enabling
57
30.7%
1.7%
—%
—%
—%
29.2%
—%
Y
Y
Y
Y
Y
Y
Y
14.0%
E
Of which Transitional
0
—%
—%
—%
T
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Manufacture of renewable energy technologies
CCM 3.1
1
0.3%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
1.8%
Manufacture of equipment for the production and use of
hydrogen
CCM 3.2
0
—%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
—%
Manufacture of other low-carbon technologies
CCM 3.6
0
—%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
—%
Provision of IT/OT data driven solutions
CE 4.1
0
—%
N/EL
N/EL
N/EL
N/EL
EL
N/EL
—%
Repair, refurbishment and remanufacturing
CE 5.1
0
—%
N/EL
N/EL
N/EL
N/EL
EL
N/EL
—%
CapEx of Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
1
0.3%
0.3%
—%
—%
—%
—%
—%
1.9%
A. CapEx of Taxonomy eligible activities (A.1 + A.2)
58
31.0%
2.0%
—%
—%
—%
29.2%
—%
15.8%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities
126
68.7%
TOTAL
184
100%
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|  SUSTAINABILITY STATEMENT
OpEx
2025
Substantial contribution criteria
DNSH criteria ( 'Does Not Significantly Harm')
Economic activities
Code
OpEx (EUR millions)
Proportion of OpEx, 2025
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular economy
Biodiversity
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular economy
Biodiversity
Minimum safeguards
Proportion of Taxonomy-aligned
(A.1) or eligible (A.2) OpEx, 2024
Category enabling activity
Category transitional activity
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Manufacture of renewable energy technologies
CCM 3.1
5
2.5%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
2.4%
E
Manufacture of equipment for the production and use of
hydrogen
CCM 3.2
0
—%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
—%
E
Manufacture of other low carbon technologies
CCM 3.6
1
0.4%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0.3%
E
Provision of IT/OT data-driven solutions
CE 4.1
0
0.1%
N/EL
N/EL
N/EL
N/EL
Y
N/EL
Y
Y
Y
Y
Y
Y
Y
0.1%
E
Repair, refurbishment and remanufacturing
CE 5.1
51
24.1%
N/EL
N/EL
N/EL
N/EL
Y
N/EL
Y
Y
Y
Y
Y
Y
Y
17.4%
E
OpEx of environmentally sustainable activities (Taxonomy-aligned) (A.1)
57
27.1%
2.9%
—%
—%
—%
24.1%
—%
Y
Y
Y
Y
Y
Y
Y
20.1%
Of which Enabling
57
27.1%
2.9%
—%
—%
—%
24.1%
—%
Y
Y
Y
Y
Y
Y
Y
20.1%
E
Of which Transitional
0
—%
—%
—%
T
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Manufacture of renewable energy technologies
CCM 3.1
1
0.3%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0.7%
Manufacture of equipment for the production and use of
hydrogen
CCM 3.2
0
—%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
—%
Manufacture of other low-carbon technologies
CCM 3.6
0
—%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
—%
Provision of IT/OT data driven solutions
CE 4.1
0
—%
N/EL
N/EL
N/EL
N/EL
EL
N/EL
—%
Repair, refurbishment and remanufacturing
CE 5.1
0
—%
N/EL
N/EL
N/EL
N/EL
EL
N/EL
—%
OpEx of Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
1
0.3%
0.3%
—%
—%
—%
—%
—%
0.7%
A. OpEx Taxonomy eligible activities (A.1 + A.2)
58
27.4%
3.3%
—%
—%
—%
24.1%
—%
20.8%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities
154
72.6%
TOTAL
211
100%
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|  SUSTAINABILITY STATEMENT
Template 1: Nuclear and fossil gas related activities
Row
Nuclear energy related activities
1
The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity
generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.
NO
2
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or
process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety
upgrades, using best available technologies.
NO
3
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process
heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their
safety upgrades.
NO
Fossil gas related activities
4
The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity
using fossil gaseous fuels.
NO
5
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power
generation facilities using fossil gaseous fuels.
NO
6
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce
heat/cool using fossil gaseous fuels.
NO
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E1: Climate change
Governance
Integration of sustainability-related performance
in incentive schemes
ESRS 2 GOV-3
This information is disclosed under ESRS 2 GOV-3.
Strategy
Transition plan for climate change mitigation
E1-1
As a leader in industrial transformation, Valmet is committed to
guiding the industries it serves toward a net-zero, circular
economy that respects planetary boundaries and safeguards
nature for future generations. Valmet reduces climate impacts in
its own operations, while leveraging its influence across the value
chain to drive broader systemic change.
Valmet recognizes that the long-term success of its business, and
that of its customers, depends on the health of nature and the
vital ecosystem services it provides. Climate action is therefore
embedded in Valmet’s strategy: a sustainable future is not only
essential but also a competitive advantage.
To accelerate the transformation toward a regenerative
tomorrow, Valmet developed its Climate Program into the
Climate Transition Plan during 2025. This ensures that its
strategy and business model are aligned with the transition to a
sustainable economy and the goal of limiting global warming to
1.5 °C in accordance with the Paris Agreement.
In the Climate Transition Plan, Valmet outlines its pathway
toward net-zero. The Climate Transition Plan defines new near-
term and long-term targets, decarbonization levers, and related
measurable action plans. Valmet’s Climate Transition Plan
includes Scopes 1, 2, and 3 greenhouse gas (GHG) emission
reduction and value chain climate targets and action plans
covering its own operations and the value chain.
Scope 1 emissions are direct GHG emissions that occur from
sources owned or controlled by Valmet, such as fuels used at
Valmet locations. Scope 2 emissions are indirect GHG emissions
associated with the consumption of purchased electricity, steam,
and heat. Scope 3 GHG emissions occur in Valmet’s value chain,
for example during the manufacture of purchased goods in the
supply chain and during customers’ use of Valmet’s technologies.
Valmet’s Climate Transition Plan was approved by the Board of
Directors. The Executive Leadership Team is responsible for
monitoring implementation of the Climate Transition Plan.
The GHG emission reduction and value chain climate targets are
in line with the Paris Agreement’s 1.5-degree pathway (E1-4).
Valmet has identified its decarbonization levers (E1-4) and the
related actions and investments required (E1-3) to reach the
targets. The action plans to reach the targets are embedded in the
annual plans and financial planning of business areas and the
Global Supply function supported by the Sustainability and
Strategic Research and Development functions. In 2025, the
action plans were supported by EUR 156 (158) million of
investments in environmental management and improvement
actions in Valmet’s own operations and research and
development expenses. In 2025, Valmet’s Taxonomy-aligned
capital expenditure was EUR 57 (34) million (with reference to
KPI of Taxonomy-aligned capital expenditure). Progress towards
reaching the targets is reported in E1-4.
Valmet has identified potential locked-in GHG emissions in its
own operations from natural gas consumption in the USA, and
fossil-fuel based electricity consumption in India and China.
However, necessary investment plans to reach Valmet’s Scope 1
and 2 GHG emission reduction target have been made. GHG
emissions from the use of sold products depend on the source of
energy the customer chooses. Valmet has therefore identified
potential locked-in emissions from customers’ use of fossil energy
while operating technologies developed by Valmet. Valmet’s
technologies already enable fossil-free packaging, paper, and
tissue production for customers with access to fossil-free energy
sources. Valmet’s biomass-based energy solutions and energy
conversions have long enabled fossil-free heat and power
production. Furthermore, customers’ chemical pulp mills using
Valmet’s technologies are typically bioenergy self-sufficient.
Valmet works continuously to align its Taxonomy-eligible
economic activities, including revenues, capital expenditure, and
operating expenditure. Valmet is not excluded from the
EU Paris-aligned Benchmarks.
Material impacts, risks and opportunities and
their interaction with strategy and
business model
ESRS2 SBM-3
This information is disclosed under ESRS 2 SBM-3.
Impact, risk and opportunity management
Description of the processes to identify and
assess material climate-related impacts, risks
and opportunities
ESRS2 IRO-1
This information is disclosed under ESRS 2 IRO-1.
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Policies related to climate change mitigation
and adaptation
E1-2 MDR-P
Valmet has adopted the Valmet Climate and Nature Policy
Statement; Valmet Health, Safety, and Environment (HSE)
Policy; Valmet Supplier Code of Conduct; and Valmet Guidelines
for Sustainable and Responsible Research, Product Development,
and Design to manage the following material impacts, risks, and
opportunities related to climate change mitigation and energy.
Related to climate change:
• GHG emissions from own operations (actual negative impact)
• GHG emissions from value chain (actual negative impact)
• Transition to a low-carbon circular economy, and related
regulation (opportunity)
• Emerging climate-related regulation and carbon pricing
mechanisms (risk).
Related to energy:
• Energy consumption in own operations (actual negative
impact)
• Energy consumption in downstream value chain (actual
negative impact)
• Energy-intensive raw materials (actual negative impact)
• Transition to a low-carbon circular economy, and related
regulation (opportunity)
• Energy transition and related regulation, energy pricing (risk).
All policies are regularly reviewed in accordance with the
company’s governance model. The monitoring of all policies is in
line with Valmet’s internal control principles and the principles
of Valmet’s corporate culture, defined in more detail under
ESRS 2 GOV-5.
Valmet Climate and Nature Policy Statement
Valmet’s Climate and Nature Policy Statement defines the
company’s commitment to driving the industrial transition
toward a regenerative, net-zero, and circular economy. The policy
guides actions to operate within planetary boundaries, mitigate
climate impacts, and protect nature for future generations. The
policy statement addresses Valmet’s commitment and approach
related to climate change mitigation and energy efficiency,
among other topics. The policy statement applies to all employees
and entities within Valmet, and to all its stakeholder
relationships. The Chief Executive Officer is the most senior level
accountable for the policy statement’s implementation.
Valmet Health, Safety and Environment (HSE) Policy
The Health, Safety and Environment (HSE) Policy defines
Valmet’s commitments to constantly reduce the climate,
biodiversity, and water impacts of its own operations through
efficient and circular use of resources, the use of fossil-free and
low-carbon energy, waste minimization, and pollution
prevention. The MDR-P requirements for the policy are disclosed
under S1-1.
Valmet Supplier Code of Conduct
The Supplier Code of Conduct defines the sustainability
principles with which suppliers are required to comply. The
Supplier Code of Conduct requires suppliers to strive for the
continuous development of environmental performance and for
the reduction of emissions and any negative impacts on the
environment. Suppliers are expected to commit to mitigating
climate change and to establish an appropriate organizational
structure or resources for the effective management of climate
and environmental risks and impacts. The MDR-P requirements
for the Supplier Code of Conduct are disclosed under S2-1.
Valmet Guidelines for Sustainable and Responsible
Research, Product Development and Design
Valmet Guidelines for Sustainable and Responsible Research,
Product Development, and Design integrate sustainability into
research and development by aiming to minimize resource
consumption and reduce emissions. Improving environmental
performance and mitigating climate change through technology
are important objectives in the guidelines. The MDR-P
requirements for the guidelines are disclosed under E5-1.
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Actions and resources in relation to climate change policies
E1-3 MDR-A
Material
sustainability topic
Related material impact
in brief
Action
Decarbonization lever
Scope
Time horizon
Achieved and expected GHG emission reduction
Related target
Climate change
GHG emissions from own
operations
Purchase of renewable
fuels and converting from
fossil fuels to electricity
Investment to replace
fossil fuels with
renewables in own
locations
1
2024–2030
Achieved: 4.6% reduction in Scope 1 emissions since base year 2024 through
purchase of renewable fuels and converting to electricity.
Expected: Reduction of 10% in Scope 1 and 2 GHG emissions by 2025.
Achieved reduction is ahead of the expected combined Scope 1 and 2
reduction.
Scope 1 and 2 emission
reduction target
Purchase of fossil-free
electricity and district heat
Increase purchases of
fossil-free electricity and
district heat
2
2024–2030
Achieved: 26% reduction in Scope 2 GHG emissions since base year 2024
through purchase of fossil-free electricity and district heat.
Expected: Reduction of 10% in Scope 1 and 2 GHG emissions by 2025.
Achieved reduction is ahead of the expected combined Scope 1 and 2
reduction.
Energy
Energy consumption in
own operations
Continuous improvement
in operational energy
efficiency
Implement energy and
material efficiency
improvements in own
locations
1 and 2
2019–2030
Calculated as reduction in energy consumption.
Achieved: 12% (5) reduction in energy consumption in own operations.1
Expected: Reduction of 5% in energy consumption by 2025. Achieved
reduction is ahead of the expected reduction.
Energy reduction target
Climate change
GHG emissions from
upstream value chain
Supplier climate
engagement
Drive emission reductions
in supply chain by
engaging suppliers
3
2024–2030
In 2025, 15% of suppliers by spend have emission reduction targets.
Target to increase spend
from suppliers with aligned
climate targets
Use of recycled steel in
own foundries
Increase share of low-
carbon emissions steel in
own foundries and
purchases
3
2019–2030
The emissions from steel used at Valmet’s own foundries reduced by 27%
(9) since the previous year.
Freight planning and
selection of suppliers
offering low-carbon
transportation
Optimize logistics to
reduce emissions
3
2019–2030
Achieved: 5% (10) reduction of air freight volume since the previous year.
Expected: 5% annual reduction of air freight volume.
Climate change
GHG emissions from
downstream value chain
Valmet’s pulp, paper,
packaging, tissue, and
energy technologies
enabling fossil-free
production for customers
Commercial excellence in
circularity, resource
efficiency, and net-zero
solutions and services
3
2024–2040
Valmet’s customers can reduce their emissions by choosing to use Valmet’s
fossil-free technologies with fossil-free energy sources.
Target to increase sales
from net-zero aligned and
circular economy aligned
solutions and services
Energy
Energy consumption in
downstream value chain
Improve energy efficiency
of best available
technologies
Accelerate sustainable
product development and
improve energy efficiency
of technologies
3
2019–2030
Valmet measures energy efficiency in pulp, paper, board, and tissue
technologies. The average reduction in these technologies in 2025 was 12%
(10) compared to the 2019 baseline.
Target to improve energy
efficiency in Valmet’s pulp,
paper, board, and tissue
technologies
1 Figure for 2024 restated to include owned and leased vehicles
In 2025, Valmet invested EUR 30 (35) million in environmental
management and improvement actions in its own operations.
The downstream actions are related to research and development.
Valmet ’s research and development expenses for 2025 totaled
EUR 126 (123) million (Consolidated financial statements,
Note 19. Selling, general and administrative expenses).
The ability to implement the actions depends on the continuous
availability and allocation of resources for energy efficiency
improvements and fossil-free energy in Valmet’s own operations
and research and development. Valmet has established a Green
Finance Framework applicable for the issuance of green debt
instruments. The Green Finance Framework is designed to
support the financing or refinancing of eligible assets and
expenditures that promote two key environmental objectives:
mitigating climate change and enabling the transition to a
circular economy. At the end of 2025, Valmet had two
outstanding green debt instruments totaling EUR 250 million
which are issued under the Green Finance Framework.
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Metrics and targets
Targets related to climate change mitigation and adaptation
E1-4 MDR-T
Targets related to climate change mitigation
Related material
impact in brief
Decarbonization lever
KPI and scope
Target
Base year
Base year value
Share of respective
scope covered by target
Progress towards target in 2025
Related policy
GHG emissions from
own operations
Investment to replace fossil
fuels with renewables in own
locations
Increase purchases of fossil-
free electricity and district heat
Implement energy and material
efficiency improvements in own
locations
% reduction in
Scope 1 and 2
(market-based) GHG
emissions
60% by 2030
2024
68,000 tCO2e
100% of Scope 1 and 2
Valmet has set a new target to reduce Scope 1 and
2 emissions 60% by 2030. In 2025, emissions
reduced by 19% and emission reduction actions
included purchasing fossil-free energy, producing
renewable energy from solar installations, and
switching from natural gas to electricity. In the
2019–2024 target period, Scope 1 and 2 emissions
decreased by 49%.
Climate and Nature
Policy Statement; Health,
Safety and Environment
Policy
GHG emissions from
upstream value
chain
Drive emission reductions in
supply chain by engaging
suppliers
% of suppliers by
spend with aligned
climate targets
50% by 2030
2024
9%
4% of Scope 3
Valmet has set a new target that 50% of its
suppliers by spend have set aligned climate targets
by 2030. Aligned targets include science-based
targets and public Scope 1 and 2 emission reduction
targets. In 2025, 15% of Valmet’s suppliers by spend
have set aligned climate targets.
Climate and Nature
Policy Statement;
Supplier Code of Conduct
GHG emissions from
downstream value
chain
Commercial excellence in
circularity, resource efficiency,
and net-zero solutions and
services
% of net sales from
net-zero aligned and
circular economy
aligned solutions
and services
60% by 2040
2024
23%
96% of Scope 3
Valmet has set a new target that 60% of its sales in
2040 will be from net-zero aligned and circular
economy aligned solutions and services. In 2025
32.9%, of sales were from net-zero aligned and
circular economy aligned solutions and services.
Climate and Nature
Policy Statement
GHG emissions from
downstream value
chain
Collaborate with customers to
reduce climate impacts across
industries
% of customers by
net sales covering
the use of sold
products emissions
(Scope 3 category
11) have set science-
based targets by
2030. The Scope
3.11 emissions derive
from the use phase
of technologies sold
by the Biomaterial
Solutions and
Services segment.
70% by 2030
2024
48%
96% of Scope 3
Valmet has set a new target that 70% of its
customers by net sales covering the use of sold
products emissions have set science-based targets
by 2030. In 2025, 57% of customers by net sales in
the Biomaterials Solutions and Services segment
covering the Scope 3 use of sold products category
have set science-based targets.
Climate and Nature
Policy Statement
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Targets related to energy
Related material
impact in brief
Decarbonization lever
KPI and scope
Target
Base year
Base year value
Share of respective
scope covered by target
Progress towards target  in 2025
Related policy
Energy consumption
in own operations
Implement energy and material
efficiency improvements in own
locations
% reduction of
energy consumption
in own operations
10% by 2030
2019
457,284 MWh
Not applicable
Since the base year, energy consumption in
Valmet’s own operations has reduced by 12% (5)1.
Energy efficiency improvement actions in Valmet
facilities included machinery replacements;
maintenance, renovation and repair; upgraded
heating and ventilation systems including heat
recovery; switches to energy efficient lighting; and
process conversion or optimization.
Climate and Nature Policy
Statement; Health,
Safety and Environment
Policy
Energy consumption
in downstream
value chain
Accelerate sustainable product
development and improve
energy efficiency of
technologies
% reduction of
energy use intensity
in best available
technologies
20% by 2030
2019
0%
Not applicable
Valmet measures energy efficiency (kWh/ton or GJ/
air dried ton) in pulp, paper, board, and tissue
technologies. In 2025, the average reduction in
these technologies was 12% (10) compared to the
2019 baseline.
Climate and Nature Policy
Statement; Guidelines for
sustainable and
responsible research,
product development and
design in Valmet
1Figure for 2024 restated to include owned and leased vehicles.
The targets listed in the table above address the objectives of the
Climate and Nature Policy Statement; the Health, Safety and
Environment (HSE) Policy; and the Supplier Code of Conduct to
mitigate climate change. The targets have been set to manage
climate-related impacts, risks, and opportunities. Internal
stakeholders, including key experts and management from
relevant functions and business areas, were included in the
target-setting process. Emission reduction and value chain
climate targets have been set to mitigate the negative impacts of
energy consumption in Valmet’s own operations and the value
chain. In addition, the targets have been set to mitigate the
regulatory transition risk and contribute to realizing the related
opportunities in developing Valmet’s technologies. The targets
are absolute targets except for the downstream energy reduction
target, which is a relative target.
In the overall combined Scope 1 and 2 emission reduction target,
Scope 1 represents 31 percent of the overall target, while Scope 2
represents 69 percent. The scopes’ boundaries are consistent with
the GHG inventory described in E1-6. Carbon removals, carbon
credits, and avoided emissions are not included in achieving the
emission reduction targets.
The new emission reduction and value chain climate targets are
aligned with a 1.5-degree pathway, and Valmet will submit Scope
1, 2, and 3 targets for validation by the Science Based Targets
initiative in 2026. The targets were set using an absolute
contraction approach (ACA) using the Science-based Target
Setting Tool v2.3. The Sectoral Decarbonization Approach (SDA)
was not used. The new targets were set during 2025 and the latest
reporting year 2024 was chosen as the base year. The Scope 1 and
2 target was set using a cross-sector (ACA) reductions pathway,
with the following reference targets for the pathway: -42 percent
by 2030; and -90 percent by 2050. Activities contributing to Scope
1 and 2 emissions remain relatively stable, and the base year value
can be considered representative.
The critical assumptions used for setting the targets included the
increasing availability of fossil-free energy, especially in Asia and
North America, which impacts emissions from Valmet’s own
operations and value chain.
Valmet has identified its main decarbonization levers and
estimated their potential impact in reducing GHG emissions for
Valmet’s own operations and its value chain, presented in the
graphs below. Climate scenario analysis was used to identify
decarbonization levers and related dependencies. The main
dependencies include the global transition away from fossil fuels
in the steel, logistics, and energy industries, as well as regulatory
changes and carbon pricing mechanisms which enable a just
global transition to a carbon-neutral economy.
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Expected emission reductions by 2030
Valmet_climate_transition_plan_AR25_EN.svg
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Energy consumption and mix
E1-5
Energy consumption and mix
2025
2024
(1) Fuel consumption from coal and coal products (MWh)
0
0
(2) Fuel consumption from crude oil and petroleum products (MWh)1
9,578
9,754
(3) Fuel consumption from natural gas (MWh)
74,911
80,992
(4) Fuel consumption from other fossil sources (MWh)1
13,653
12,445
(5) Consumption of purchased or acquired electricity, heat, steam and cooling from fossil sources (MWh)
90,302
116,100
(6) Total fossil energy consumption (MWh) (calculated as the sum of lines 1 to 5)1
188,444
219,291
Share of fossil sources in total energy consumption (%)1
47%
51%
(7) Consumption from nuclear sources (MWh)
126,573
128,585
Share of consumption from nuclear sources in total energy consumption (%)
32%
30%
(8) Fuel consumption from renewable sources, including biomass (also comprising industrial and municipal waste of biologic origin, biogas, renewable hydrogen, etc.) (MWh)1
1,766
2,230
(9) Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh)
83,617
81,963
(10) The consumption of self-generated non-fuel renewable energy (MWh)
279
155
(11) Total renewable energy consumption (MWh) (calculated as the sum of lines 8 to 10)
85,663
84,348
Share of renewable sources in total energy consumption (%)
21%
20%
Total energy consumption (MWh) (calculated as the sum of lines 6, 7 and 11)1
400,680
432,224
1Figure for 2024 restated to include owned and leased vehicles.
Energy production
2025
2024
Non-renewable energy production (MWh)
596
900
Renewable energy production (MWh)
585
424
Total energy production (MWh)
1,181
1,324
Accounting principles
Valmet’s energy consumption data includes fuel use and
purchased electricity, heat, and steam from all locations with
production operations, such as foundries, workshops, and
manufacturing sites. These operations include energy-intensive
processes such as high-temperature processes, continuous
heating and ventilation, and use of steam and compressed air
systems. Electricity consumption at office locations is estimated
based on an average consumption per employee resulting in one
percent of total energy consumption. Other energy consumption
at office locations is not included in the estimate. Energy
consumption of leased cars is estimated based on car fleet data
from internal systems and emission reports from leasing car
companies.
Valmet produces solar electricity at its Bologna, Italy facility
partially for own consumption and partially for sale to the
electricity grid. At its Shanghai location, Valmet produces solar
electricity for own consumption. District heat is produced at
Valmet’s research and development center in Tampere, Finland,
and is sold to the local district heating network.
Energy data is collected monthly in an environmental reporting
system based on local invoice, measurement, and consumption
records. In locations where the source of electricity or district
heat is unknown, the consumption is reported under fossil
sources. Energy data for December is estimated based on the
previous year’s data.
All of Valmet’s operations are reported under high climate
impact sector Manufacturing (NACE C).
Energy intensity per net revenue 1
2025
2024
Change
Total energy consumption from
activities in high climate impact
sectors per net revenue from
activities in high climate impact
sectors (MWh/EUR million)2
77.1
80.7
-4%
1Net revenue: Net Sales in Consolidated financial statements, Note 3. Revenue
recognition.
22024 figure restated based on restated energy consumption.
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Gross Scopes 1, 2, 3 and Total GHG emissions
E1-6
Retrospective
Milestones and target years
Base year 2024
2024
2025
% N / N-1
Target year 2030
Annual %
target /
Base year
Scope 1 GHG emissions
Gross Scope 1 GHG emissions (tCO2 e)1
22,009
22,009
21,006
95.4%
17,000
3.8%
Percentage of Scope 1 GHG emissions from regulated emission trading schemes (%)
0.0%
0.0 %
0.0%
0.0%
Scope 2 GHG emissions
Gross location-based Scope 2 GHG emissions (tCO2e)
74,812
74,812
68,250
91.2%
—
Gross market-based Scope 2 GHG emissions (tCO2e)
45,923
45,923
33,821
73.6%
10,000
13.0%
Significant Scope 3 GHG emissions
Total Gross indirect (Scope 3) GHG emissions (tCO2e)
39,297,000
39,297,000
64,302,000
163.6%
29,419,000
1 Purchased goods and services2
1,200,000
1,200,000
1,273,000
106.1%
1,040,000
2.2%
4 Upstream transportation and distribution
144,000
144,000
184,000
127.8%
137,000
0.8%
6 Business travel
53,000
53,000
45,000
84.9%
42,000
3.4%
11 Use of sold products
37,900,000
37,900,000
62,800,000
165.7%
28,200,000
4.2%
Total GHG emissions
Total GHG emissions (location-based) (tCO2 e)
—
39,393,821
64,391,256
163.5%
—
Total GHG emissions (market-based) (tCO2e)
39,364,932
39,364,932
64,356,827
163.5%
29,446,000
1Scope 1 figure for 2024 restated to include owned and leased vehicles.
2Scope 3 purchased goods and services figure for 2024 restated due to updated calculation methodology.
Valmet’s GHG inventory is prepared in accordance with the
GHG Protocol Corporate Standard (Version 2004) and
GHG Protocol Corporate Value Chain (Scope 3) Accounting and
Reporting Standard (Version 2011). The GHG inventory is
prepared as described under ESRS Basis for preparation (BP)
1 and 2, and IRO-1, under paragraphs concerning “Scoping of the
assessment”. All subsidiaries are included in the GHG inventory.
Valmet does not have operational control of its associated
companies, and they are not included in Valmet’s
GHG inventory.
GHG intensity per net revenue1
2025
2024
Change
Total GHG emissions
(location-based) per net revenue
(tCO 2e / EUR million)
12,390
7,351
69%
Total GHG emissions
(market-based) per net revenue
(tCO 2 e / EUR million)
12,383
7,346
69%
1Net revenue: Net Sales in Consolidated financial statements, Note 3. Revenue
recognition.
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Accounting principles
Scope 1: GHG emissions are calculated using fuel consumption
data and emission factors from DEFRA (2024) and supplier-
specific emission factors where relevant. Emissions from leased
cars are estimated based on emissions, mileage, and car fleet data
from leasing car companies and internal systems. In 2025, the
biogenic CO2 emissions from the combustion of biomass were
503 (631) tCO2. The 2024 figure has been restated (18 tCO2
reported in 2024).
Scope 2: GHG emissions are calculated using electricity, district
heat, and steam data. Emissions from office locations are
estimated based on electricity consumption per employee. Other
emissions from office locations are not included in the estimate.
Location-based GHG emissions are calculated with emission
factors from IEA (2023) and US EPA eGRID (2023). Market-
based GHG emissions are calculated with contract-based,
supplier-specific, or regional emission factors. In 2025, Valmet
purchased electricity and district heat with contractual
instruments such as Guarantees of Origin and contracts with
suppliers, which covered 70 (65) percent of total electricity and
district heat purchases. These included 41 percent bundled
instruments and 59 percent unbundled instruments. The GHG
emission factors applied in Scope 2 calculations do not separate
the percentage of biomass or biogenic CO2.
Scope 3 category 1: The methodology for calculating purchased
goods and services has been updated and the 2024 figure restated
(1,462,000 tCO2e reported in 2024). The GHG emissions of
purchased goods and services are calculated with a combination of
the average-data method based on weight and the spend-based
method if weight and material data is unavailable or irrelevant. In
2025, 74 percent of emissions were calculated with the average-
data method, and 26 percent with the spend-based method. In the
average-data method, purchased goods are calculated based on
weight-based emission factors from ecoinvent and the material
breakdown of the procurement categories.
In the spend-based method, GHG emissions are estimated based
on the monetary value of purchased goods and services by
purchase category and supplier country. The emission flows are
calculated based on environmentally extended input-output
analysis and emission factors from Exiobase (3.8.2). For undefined
spend data, Valmet’s average emission factor is applied. Purchase
order spend data is based on Valmet’s internal data systems. The
boundary includes upstream (cradle-to-gate) emissions. There is
0 percent calculated using primary data obtained from value chain
partners.
Scope 3 category 4: GHG emissions from upstream transportation
and distribution are based on suppliers’ emission reports, and
when unavailable, the monetary value of purchased transportation
services following the same spend-based calculation methodology
as for Category 1. Data for November and December is estimated
based on January-October data. In 2025, suppliers’ emission
reports accounted for 26 (39) percent of reported emissions. The
calculated transportation modes include air, rail, sea, and road
transportation.
Scope 3 category 6: GHG emissions from business travel are based
on emission, mileage, and spend data from travel agencies and
internal systems. Travel agencies’ emission reports covered
around 57 (47) percent of reported emissions in 2025. The
calculation includes air and rail travel, travel by rental cars,
compensated mileages, and hotel nights. The data covered
100 (99) percent of Valmet’s global workforce in 2025.
Scope 3 category 11: GHG emissions from the use of products
sold in the reporting year include Valmet’s Packaging and Paper;
Tissue; and Pulp, Energy, and Circularity business areas. For the
purposes of estimating the use of sold products emissions, Valmet
uses orders received as an indicator for defining sold products in
2025. The calculation method based on orders received is aligned
with Valmet’s previously reported emissions information about
the use of sold products. In practice this means product lifetime
emissions (25 future years) are reported in the year when the
order has been received and most often not in the year of the
delivery and start-up of the technology. Delivery times vary and
can be up to around 3 years for large orders.
For the Packaging and Paper and Tissue business areas, the
calculation includes orders received for full production lines of
paper, board, and tissue machines and excludes basic machine
unit assembly groups and smaller equipment deliveries. For the
Pulp, Energy, and Circularity business area, the calculation
includes pulp mill, lime kiln, and fluidized bed boiler orders
received. Sold products from Valmet’s Automation Solutions and
Flow Control business areas are excluded from the calculation,
because their impact on total use phase emissions is estimated to
be insignificant (below 0.2 percent).
The assumed lifetime for all sold products is 25 years. The
emission calculations are based on Valmet’s average product-
specific energy consumption and product specifications, including
delivered capacity and intended fuel mix. N2O and CH4 are
included from the biomass combustion of pulp and energy
production. The emission factors for lime kilns have been updated
in 2025. The 2024 category 11 figure has not been restated.
Emissions from electricity are calculated based on the IEA (2023)
country-specific emission factors. Emissions from steam are
calculated based on Fisher International installed base fuel mix
data. Emission factors for fuels are based on IPCC, DEFRA, and
Statistics Finland. The IEA Scenario for current policies (STEPS)
power sector emission intensity reduction (CAGR) is utilized in
projecting the lifetime emissions for electricity and steam.
The annual fossil emissions of the sold products were around
2,800,000 (1,800,000) tCO2e, whereas biogenic emissions were
around 4,900,000 (8,300,000) tCO2 in 2025. The calculation is an
estimation based on assumptions and projections, and actual
emissions will depend on the choices customers make during the
lifetime of the technologies. Due to the long lifetimes of Valmet’s
technologies (average 25 years) included in the annual use phase
calculation, the magnitude of the category in relation to other
categories of emissions is considerable.
The excluded Scope 3 categories include: capital goods, fuel- and
energy-related activities, waste generated in operations, employee
commuting, upstream leased assets, downstream transportation,
processing of sold products, end-of-life treatment of sold
products, downstream leased assets, franchises, and investments.
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E2: Pollution
Impacts, risks and opportunity management
Description of the processes to identify and
assess material pollution-related impacts, risks
and opportunities
ESRS 2 IRO-1
This information is disclosed under ESRS 2 IRO-1.
Policies related to pollution in value chain
E2-1 MDR-P
Valmet has adopted the Valmet Climate and Nature Policy
Statement, Valmet Supplier Code of Conduct, Valmet Guidance
on Material Compliance for Suppliers, and Valmet Guidelines for
Sustainable and Responsible Research, Product Development,
and Design to manage the following material impacts and
opportunities related to pollution of air and water in the
value chain.
Impacts and opportunities related to pollution of air in the
value chain:
• Air emissions from the upstream value chain (actual negative
impact)
• Air emissions from the downstream value chain (actual
negative impact)
• Developing air emission control solutions (opportunity).
Impacts and opportunities related to pollution of water in the
value chain:
• Water emissions from the downstream value chain (actual
negative impact).
All policies are regularly reviewed in accordance with the
company’s governance model. The monitoring of all policies is in
line with Valmet’s internal control principles and the principles
of Valmet’s corporate culture, defined in more detail under
ESRS 2 GOV-5.
Valmet Climate and Nature Policy Statement
Valmet’s Climate and Nature Policy Statement defines the
company’s commitment to driving the industrial transition
toward a regenerative, net-zero, and circular economy. The policy
statement guides actions to operate within planetary boundaries,
mitigate climate impacts, and protect nature for future
generations. The policy statement addresses Valmet’s approach
related to pollution prevention among other topics. The policy
statement provides high-level guidance and does not specify
which pollutants or substances are covered. The MDR-P
requirements for the policy statement are disclosed under E1-2.
Valmet Supplier Code of Conduct
The Supplier Code of Conduct defines the sustainability
principles with which suppliers must comply. The requirements
include the prevention of pollution and environmental incidents,
maintaining emergency action plans to manage environmental
accidents and minimize their consequences, and striving to
continually reduce emissions to air and water. The code provides
high-level guidance on compliance with local and international
regulations on hazardous substances and chemicals but does not
specify which pollutants or substances are covered. The MDR-P
requirements for the Supplier Code of Conduct are disclosed
under S2-1.
Valmet Guidance on Material Compliance for Suppliers
Valmet Guidance on Material Compliance for Suppliers advises
Valmet’s suppliers on how to comply with regulatory
requirements regarding the prohibition, restriction, authorization
and reporting of materials found in products. It states that
suppliers are obliged to provide information about raw materials
and hazardous substances in products to Valmet, and to inform
Valmet without due delay if any prohibited materials are found in
products sold to Valmet, e.g. due to regulation updates.
The guideline requires suppliers to provide certifications for
RoHS compliance of or information about non-compliance of
electrical and electronic equipment, certifications for battery
compliance or information of non-compliance, and due diligence
statements for conflict minerals and deforestation commodities
such as natural rubber. It also requires suppliers to provide
information regarding any substance listed in any relevant
regulation (product or country specific), e.g. substances of very
high concern (SVHC) on the Candidate List under EU REACH,
or specified by Valmet, found in the products supplied to Valmet
if their concentration exceeds thresholds set by Valmet or related
legislation. The guideline applies to all Valmet suppliers. The
Vice President, HSE and Supply Sustainability is the most senior
level accountable for the guideline’s implementation.
Valmet Guidelines for Sustainable and Responsible
Research, Product Development and Design
Valmet Guidelines for Sustainable and Responsible Research,
Product Development and Design integrate sustainability,
environmental and health and safety aspects into Valmet’s
product research and development process. The aim is to ensure
Valmet designs solutions that meet sustainability objectives,
including the elimination and minimization of emissions to water
and air, set quantitative performance targets for emission
reduction, and comply with already applicable and anticipated
upcoming regulatory developments related to emission control.
The guideline provides high-level guidance and does not specify
which pollutants or substances are covered. The MDR-P
requirements for the guidelines are disclosed under E5-1.
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Actions and resources related to pollution
E2-2 MDR-A
Material sustainability
topic
Related material impacts
in brief
Actions
Expected outcome
Scope
Time horizon
Resources
to manage
Progress on actions
Related target
Pollution of air
Air emissions from the upstream
value chain
Commit suppliers to Valmet’s
Supplier Code of Conduct, which
addresses pollution prevention
Pollution prevention in suppliers’
operations
Upstream
2025, continuous
Procurement
function
See progress in E2-3
75% of suppliers by spend
have signed Valmet’s
renewed Supplier Code of
Conduct by the end of 2025
90% of suppliers by spend
have signed Valmet’s Supplier
Code of Conduct by the end
of 2026
Air emissions from the
downstream value chain
Continuous development of air
emissions control technologies
Reduced air emissions, heat
recovery and improved energy
efficiency in the customers’
processes
Own
operations,
downstream
value chain
2025, continuous
Pulp, Energy and
Circularity
business area
Progressing as
planned
Air emission control
technology: 7.5% growth
(over the cycle) of orders
received by 2025
The actions listed in the table above address the material impacts
related to pollution of air  in the value chain. The actions address
the objectives of the Supplier Code of Conduct,
and the Valmet Guidelines for Sustainable and Responsible
Research, Product Development, and Design.
Metrics and targets
Targets related to pollution
E2-3 MDR-T
Material sustainability
topic
Related material impact
in brief
Targets
Key performance
indicator
Base year
Baseline
Scope
Progress in 2025
Target monitoring
Relevant policy
Pollution of air
Air emissions from the upstream
value chain
75% of suppliers by spend have
signed Valmet’s renewed
Supplier Code of Conduct by the
end of 2025, which addresses
pollution prevention 1
% of suppliers by spend
who have signed
Valmet’s Supplier Code
of Conduct
2025
0%
Upstream
value chain
By the end of 2025,
77% of suppliers by
spend had signed
Valmet’s Supplier
Code of Conduct
Quarterly in
Procurement
Management Team
Supplier Code of Conduct
90% of suppliers by spend have
signed Valmet’s Supplier Code
of Conduct by the end of 2026,
which addresses pollution
prevention
% of suppliers by spend
who have signed
Valmet’s Supplier Code
of Conduct
2025
77%
Upstream
value chain
New target set in
2025. The target
progress will be
reported for the
first time for 2026.
Quarterly in
Procurement
Management Team
Supplier Code of Conduct
Air emissions from the
downstream value chain
Air emission control technology:
7.5% annual growth (over the
four year cycle) of orders
received by 2025
Rolling 4-year
compounded annual
growth (CAGR) of orders
received
2024
1.8%
Own
operations and
downstream
value chain
Rolling 4-year
compounded annual
growth (CAGR) of
orders received was
8.7%
Annually in Energy
and Circularity
Business Unit
Management Team
Valmet Guidelines for
Sustainable and Responsible
Research, Product
Development and Design
1Due to the introduction of Valmet’s new Supplier Code of Conduct, replacing the prior Sustainable Supply Chain Policy, the target has been renewed, and the baseline was set to zero on January 1, 2025.
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Valmet has set the voluntary targets listed in the table above to
reduce negative impacts related to pollution of air in the
upstream and downstream value chains. The targets address the
objectives of the Supplier Code of Conduct and the Valmet
Guidelines for Sustainable and Responsible Research, Product
Development, and Design. The targets are based on conclusive
measurable evidence but not a specific environmental scenario.
The targets related to the Supplier Code of Conduct were set in
2025 and are being implemented by Valmet’s Procurement
function. These followed the renewal of Valmet’s Supplier Code
of Conduct, replacing the previous Sustainable Supply Chain
Policy. The targets were set by the Procurement Management
Team, and those replace the old target disclosed in 2024 related to
the Sustainable Supply Chain policy.
The target related to air emission control technology was set by
the Pulp and Energy business line management. T he target
progress is monitored at least annually by the new Energy and
Circularity business unit Management Team. The target is related
to the prevention and control of air pollutants and respective
specific loads.
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E3: Water and marine resources
Impacts, risks and opportunity management
Description of the processes to identify and
assess material water and marine resources
-related impacts, risks and opportunities
ESRS2 IRO-1
This information is disclosed under ESRS 2 IRO-1.
Policies related to water and marine resources
in value chain
E3-1 MDR-P
Valmet has adopted the Valmet Climate and Nature Policy
Statement, the Valmet Health, Safety, and Environment (HSE)
Policy, the Valmet Supplier Code of Conduct, and the Valmet
Guidelines for Sustainable and Responsible Research, Product
Development and Design to manage the following material
impacts and opportunities related to water consumption in the
value chain:
• Water-consuming manufacturing processes in the upstream
value chain (actual negative impact)
• Water-consuming manufacturing processes in the downstream
value chains (actual negative impact)
• Demand for water-saving solutions (opportunity).
Valmet’s policies contain commitments to reduce water
consumption in the upstream and downstream value chain,
including both areas at water risk and other areas. All policies are
regularly reviewed in accordance with the company’s governance
model. The monitoring of all policies is in line with Valmet’s
internal control principles and the principles of Valmet’s
corporate culture, defined in more detail under ESRS 2 GOV-5.
Valmet Climate and Nature Policy Statement
Valmet’s Climate and Nature Policy Statement defines the
company’s commitment to driving the industrial transition
toward a regenerative, net-zero, and circular economy. The policy
guides actions to operate within planetary boundaries, mitigate
climate impacts, and protect nature for future generations. The
policy statement addresses Valmet’s approach related to pollution
prevention and water efficiency among other topics. The MDR-P
requirements for the policy statement are disclosed under E1-2.
Valmet Health, Safety and Environment (HSE) Policy
Valmet’s Health, Safety, and Environment (HSE) Policy defines
Valmet’s commitments to constantly reduce the climate,
biodiversity, and water impacts of Valmet’s value chain through
efficient and circular use of resources, use of fossil-free energy,
waste minimization, and pollution prevention. The MDR-P
requirements for the policy are disclosed under S1-1.
Valmet Supplier Code of Conduct
The Supplier Code of Conduct defines the sustainability
principles with which suppliers must comply. The requirements
include effective management of environmental risks and
impacts, including the degradation of water ecosystems. This
includes the prevention of pollution and environmental incidents
and striving to continually reduce emissions to water and track
water consumption. The MDR-P requirements for the Supplier
Code of Conduct are disclosed under S2-1.
Valmet Guidelines for Sustainable and Responsible
Research, Product Development and Design
Valmet Guidelines for Sustainable and Responsible Research,
Product Development and Design integrate sustainability into
research and development by aiming to ensure Valmet designs
solutions that meet sustainability objectives, including
minimizing water consumption, using water efficiently, and
complying with regulation related to water protection. The
MDR-P requirements for the guidelines are disclosed under E5-1.
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Actions and resources related to water and marine resources
E3-2 MDR-A
Material sustainability
topic
Related material impact
in brief
Actions
Expected outcome
Scope
Time horizon
Resources to
manage
Progress on
actions
Related target
Water consumption
Water-consuming
manufacturing processes in
the upstream value chain
Commit suppliers to Valmet’s
Supplier Code of Conduct,
which addresses efficient use
of water
Improved water management
and efficiency in supplier’
processes
Upstream value chain
2025, continuous
Procurement
function
See progress in
E3-3 
75% of suppliers by spend
have signed Valmet’s
renewed Supplier
Code of Conduct by the
end of 2025
90% of suppliers by spend
have signed Valmet’s
Supplier Code of Conduct
by the end of 2026
Water-consuming
manufacturing processes in
the downstream value chain
Beyond Circularity research
and development program and
ecosystem: Closed water loops
sub-stream
Improved concepts and
processes on water
consumption, recovery, and
optimization
Own operations and
downstream value
chain
2022–2025
Research and
Development
function
Progressing well
Development of water
management concepts
Continuous development of
board and tissue technologies
to reduce and optimize fresh-
water consumption
Reduced and optimized fresh
water consumption in
customers’ processes
Own operations and
downstream value
chain
2025, continuous
Packaging and
Paper and Tissue
business areas
Technology
development
actions on
reducing fresh
water
consumption
continued actively
in 2025.
Reduction of fresh water
consumption in recycled
board mills: -70% by 2030.
Reduction of fresh water
consumption in tissue
technology -70% by 2030.
The actions listed in the table above address the material impacts
related to water consumption in the value chain and can
influence areas facing water-related risks as well as regions
without current water stress. The actions address the objectives of
the Valmet Supplier Code of Conduct, and the Valmet Guidelines
for Sustainable and Responsible Research, Product Development
and Design.
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Metrics and targets
Targets related to water and marine resources
E3-3 MDR-T
Material
sustainability topic
Related material impact
Targets
Key performance
indicator
Base year
Baseline
Scope
Progress in 2025
Target monitoring
Relevant policy
Water consumption
Water-consuming
manufacturing processes
in the upstream value
chain
By the end of 2025, 75%
of suppliers by spend have
signed Valmet’s renewed
Supplier Code of Conduct,
which addresses efficient
use of water 1
% of suppliers by spend
have signed Valmet’s
Supplier Code of
Conduct
2025
0%
Upstream
value chain
By the end of 2025, 77% of
suppliers by spend had signed
Valmet’s Supplier Code of
Conduct
Quarterly in Procurement 
Management Team
Supplier Code of Conduct
By the end of 2026, 90%
of suppliers by spend have
signed Valmet’s Supplier
Code of Conduct, which
addresses efficient use of
water
% of suppliers by spend
have signed Valmet’s
Supplier Code of
Conduct
2025
77%
Upstream
value chain
New target set in 2025. The
target progress will be reported
for the first time in 2026
Quarterly in Procurement
Management Team
Supplier Code of Conduct
Water-consuming
manufacturing processes
in the downstream
value chain
Reduction of fresh water
consumption in recycled
board mills: -70% by 2030
Reduction in fresh
water consumption
intensity (m 3/t)
2022
0%
Packaging
and Paper
business
area
Technology development actions
on reducing fresh water
consumption continued actively in
2025, although reduction in fresh
water use remained at 0%
compared to 2022 baseline.
Annually in Valmet’s
Research and
Development Leadership
Team
Valmet Guidelines for
Sustainable and
Responsible Research,
Product Development
and Design
Reduction of fresh water
consumption in tissue
technology: -70% by 2030
Reduction in fresh
water consumption
intensity (m 3/t)
2019
0%
Tissue
business
area
Technology development actions
on reducing fresh water
consumption continued actively in
2025. Fresh water use has
reduced 39% compared to 2019
baseline.
Annually in Valmet’s
Research and
Development Leadership
Team
Valmet Guidelines for
Sustainable and
Responsible Research,
Product Development
and Design
1Due to the introduction of Valmet’s new Supplier Code of Conduct, replacing the prior Sustainable Supply Chain Policy, the target has been renewed, and the baseline was set to zero on January 1, 2025.
Valmet has set the voluntary targets listed in the table above to
reduce negative impacts related to water consumption in the
value chain. The targets are based on conclusive measurable
evidence but not a specific environmental scenario. The targets to
reduce water consumption in the upstream and downstream
value chain can influence areas facing water-related risks as well
as regions without current water stress. The absolute supply chain
related target and the relative process technology related targets
address the objectives of the Valmet Supplier Code of Conduct
and Valmet Guidelines for Sustainable and Responsible Research,
Product Development and Design.
The targets related to the Supplier Code of Conduct were set in
2025 and are being implemented by Valmet’s Procurement
function. These targets followed the renewal of Valmet’s Supplier
Code of Conduct, replacing the previous Sustainable Supply
Chain Policy. The targets replace the old target disclosed in 2024
related to the Sustainable Supply Chain policy.
Valmet’s Research and Development Leadership Team sets the
technology-specific targets and follows up progress at least
annually. Targets are set with key technology experts and
management from business areas and relevant functions. The
targets follow water use intensity in Valmet’s key technologies,
and in terms of significant assumptions, this target-setting is
based on best available technology.
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E4: Biodiversity and ecosystems
Strategy
Transition plan and consideration of biodiversity
and ecosystems in strategy and business model
E4-1
Valmet recognizes that climate change, biodiversity loss, and the
overuse of natural resources are defining environmental
challenges for its industrial value chains. As a global technology
leader in the pulp, paper, and energy industries, Valmet has both
the responsibility and the capabilities to drive industrial
transformation to ensure long-term resilience.
In its new strategy, Valmet has defined a new purpose:
Transforming industries towards a regenerative tomorrow. The
new strategy focuses on advancing circularity and unlocking
resource efficiency to support the renewal of the systems on
which industries depend. The goal is alignment with planetary
boundaries and ultimately a regenerative industrial future.
Valmet’s E1 Climate change and E2 Pollution impacts are direct
drivers of biodiversity loss and degradation and are material
impacts in Valmet’s value chain. Climate and biodiversity are
intrinsically linked. Climate change impacts such as droughts,
wildfires, and flooding accelerate biodiversity impacts, and loss of
nature is in turn a key driver of climate change. Valmet has not
conducted an assessment of the resilience of the current business
model and strategy to biodiversity- and ecosystem-related
physical, transition, and systemic risks.
In 2025, Valmet focused on creating its Climate and Nature
Policy Statement and developing its Climate Transition Plan. The
aim is to proceed with developing a nature action plan.
Material impacts, risks and opportunities related
to biodiversity
ESRS 2 SBM-3
This information is disclosed under ESRS 2 SBM-3.
Impact, risk and opportunity management
Description of processes to identify and assess
material biodiversity and ecosystem-related
impacts, risks and opportunities
ESRS 2 IRO-1
This information is disclosed under ESRS 2 IRO-1.
Policies related to biodiversity and ecosystems
E4-2 MDR-P
Valmet has adopted the Valmet Climate and Nature Policy
Statement, and the Valmet Supplier Code of Conduct to manage
the following material impacts related to biodiversity in the value
chain:
• Impact of climate change on biodiversity loss (actual negative
impact)
• Impact of air and water pollution on biodiversity loss (actual
negative impact).
Valmet has not adopted a sustainable land or agriculture policy,
or a sustainable oceans policy. The policies described below
provide high-level guidance and do not explicitly address the
social consequences of biodiversity- and ecosystem-related
impacts or production, sourcing, or consumption from
ecosystems that are managed to maintain or enhance conditions
for biodiversity, as demonstrated by regular monitoring and
reporting of biodiversity status and gains or losses.
All policies are regularly reviewed in accordance with the
company’s governance model. The monitoring of all policies is in
line with Valmet’s internal control principles and the principles
of Valmet’s corporate culture, defined in more detail under
ESRS 2 GOV-5.
Valmet Climate and Nature Policy Statement
Valmet’s Climate and Nature Policy Statement defines the
company’s commitment to driving the industrial transition
toward a regenerative, net-zero, and circular economy. The policy
guides actions to operate within planetary boundaries, mitigate
climate impacts, and protect nature for future generations. The
policy statement addresses deforestation and Valmet’s dedication
to halt and reverse biodiversity loss as well as to protect
ecosystems where Valmet’s operational sites are owned, leased, or
managed in or near biodiversity-sensitive areas. The MDR-P
requirements for the policy statement are disclosed under E1-2.
Valmet Supplier Code of Conduct
The Supplier Code of Conduct defines sustainability principles
with which suppliers are required to comply. The Supplier Code
of Conduct requires suppliers to establish an appropriate
organizational structure or resources for effective management of
climate and environmental risks and impacts, including but not
limited to air pollution, climate change, pollution and
degradation of land, water ecosystems, deforestation, and
biodiversity loss. Suppliers must be prepared to identify the
sources of materials and to show the tracking of the supply chain.
The MDR-P requirements for the Supplier Code of Conduct are
disclosed under S2-1.
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Actions related to biodiversity and ecosystems
E4-3 MDR-A
Material
sustainability topic
Related material impact
in brief
Actions
Expected outcome
Scope
Time horizon
Resources to
manage
Progress on
actions
Related target if
applicable
Direct impact drivers of
biodiversity loss
Impact of climate change on
biodiversity loss
Impact of air and water
pollution on biodiversity loss
Valmet’s Climate and Nature
Policy Statement approved
and published
Climate and Nature Policy
Statement published
Own operations and
upstream and downstream
value chain
2024–2025
Sustainability
function
Climate and
Nature Policy
Statement
published
Climate and Nature Policy
Statement in 2025
Assessment of locations
using IBAT
Biodiversity impacts at
locations identified
Own operations
2025
Sustainability
function
Assessment of
locations using
IBAT completed
Not applicable
The actions listed in the table address the material impacts related
to biodiversity and ecosystems. In 2025, Valmet focused on
creating its Climate and Nature Policy Statement and developing
its Climate Transition Plan. The aim is to proceed with
developing a nature action plan, during which Valmet will decide
on the use of biodiversity offsets and aims to incorporate local
and indigenous knowledge and nature-based solutions into
biodiversity- and ecosystems-related actions.
Metrics and targets
Targets related to biodiversity
E4-4 MDR-T
Material
sustainability topic
Related material impact
in brief
Targets
Key performance indicator
Base year
Baseline
Scope
Progress in 2025
Relevant policy
Direct impact drivers of
biodiversity loss
Impact of climate change
on biodiversity loss
Impact of air and water
pollution on biodiversity loss
Climate and Nature Policy
Statement during 2025
Policy Statement published
and nature aspect
embedded in due diligence
2024
Not applicable
Own operations and
upstream and downstream
value chains
Climate and Nature Policy
Statement published
Climate and Nature Policy
Statement
Nature action plan by 2026
Nature action plan
implemented
2024
Not applicable
Own operations and
upstream and downstream
value chains
Assessment of locations
using IBAT
Climate and Nature Policy
Statement
Valmet has set the targets listed in the table to manage and
identify negative impacts related to biodiversity and ecosystems.
The aim is to proceed with developing a nature action plan. In the
process of preparing the plan, Valmet will use scientific evidence
to set relevant biodiversity- and ecosystem-related targets.
Application of ecological thresholds and alignment of the targets
with the Kunming-Montreal Global Biodiversity Framework,
relevant aspects of the EU Biodiversity Strategy for 2030 and
other biodiversity and ecosystem-related national policies and
legislation will be considered. Valmet will also consider its
position on using biodiversity offsets in its Nature action plan
and to which of the layers of the mitigation hierarchy the targets
can be allocated. Internal stakeholders, including key experts and
management from the Sustainability and Global Supply
functions, and business areas, will be included in the target-
setting process. The target training for employees in the Climate
and Nature Program was removed because training needs and
plans will be reconsidered during the preparation of the nature
action plan.
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E5: Resource use and circular economy
Impact, risk and opportunity management
Description of the processes to identify and
assess material resource use and circular
economy-related impacts, risks and opportunities
ESRS 2 IRO-1
This information is reported under ESRS 2 IRO-1.
Metrics and targets
Policies related to resource use and circular
economy
E5-1 MDR-P
Valmet has adopted the Valmet Climate and Nature Policy
Statement, the Valmet Health, Safety and Environment (HSE)
Policy, the Valmet Supplier Code of Conduct, and the Valmet
Guidelines for Sustainable and Responsible Research, Product
Development and Design to manage the following material
impacts and opportunities related to resource inflows and
resource outflows:
Impacts related to resource inflows:
• Production of technologies requiring large quantities of
materials (actual negative impact).
Impacts and opportunities related to resource outflows:
• Technology lifecycle extension (actual positive impact)
• Technologies enabling the use and conversion of renewable
and recycled resources (actual positive impact)
• Solutions enabling circularity (actual positive impact)
• Demand for resource efficient and renewable resource use
technologies (opportunity)
• Technology lifecycle extension (opportunity).
All policies are regularly reviewed in accordance with the
company’s governance model. The monitoring of all policies is in
line with Valmet’s internal control principles and the principles
of Valmet’s corporate culture, defined in more detail under
ESRS 2 GOV-5.
Valmet Climate and Nature Policy Statement
Valmet’s Climate and Nature Policy Statement defines the
company’s commitment to driving the industrial transition
toward a regenerative, net-zero, and circular economy. The policy
guides actions to operate within planetary boundaries, mitigate
climate impacts, and protect nature for future generations. The
policy statement addresses Valmet’s approach to resource
efficiency and circular economy. The MDR-P requirements for
the policy statement are disclosed under E1-2.
Valmet Health, Safety and Environment (HSE) Policy
The Health, Safety, and Environment (HSE) Policy includes
Valmet’s commitment to constantly reduce the climate,
biodiversity, and water impacts of the value chain through
efficient and circular use of resources, the use of fossil-free
energy, waste minimization, and pollution prevention. The
MDR-P requirements for the policy are disclosed under S1-1.
Valmet Supplier Code of Conduct
The Supplier Code of Conduct defines sustainability principles
with which suppliers are required to comply. The code addresses
transitioning to renewable energy, energy efficiency
improvements, the responsible management of natural resources,
the responsible disposal of waste and circularity actions. In
addition, suppliers must be prepared to identify the sources of
materials and to show the tracking of the supply chain. The
MDR-P requirements for the Code of Conduct are disclosed
under S2-1.
Valmet Guidelines for Sustainable and Responsible
Research, Product Development and Design
Valmet’s Guidelines for Sustainable and Responsible Research,
Product Development and Design integrate sustainability,
environmental, and health and safety aspects into research,
product development, and design. They are part of Valmet’s
research and development process and provide a systematic way
to anticipate challenges and develop new solutions throughout
the product or service lifecycle. The guidelines highlight efficient
resource use and the principles of the circular economy
throughout the product lifecycle. They encourage the
minimization of raw material consumption, the use of renewable
resources, and the implementation of practices such as repair,
disassembly, remanufacturing, reuse, and recycling to promote
sustainability and reduce waste.
The guidelines cover all Valmet’s research, product development,
and design activities globally. The monitoring of the guideline is
conducted through gate reviews within the Valmet research and
development process, project monitoring within the research and
development project portfolio tool, the annual follow up of
research and development portfolio development, and monthly,
quarterly and/or annual reporting practices at business area and
corporate level. The Vice President, Strategic R&D is the most
senior level accountable for the implementation of the guidelines.
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Actions and resources related to resource use and circular economy
E5-2 MDR-A
Material
sustainability topic
Related material
impact in brief
Actions
Expected outcome
Scope
Time
horizon
Resources
to manage
Progress on actions
Related target
(if applicable)
Resource inflows
Production of
technologies requiring
large quantities of
materials
Valmet increases the use of
recycled steel in its own
foundries to reduce the impact
from virgin raw materials
Improved circularity in Valmet’s
operations
Steel in Valmet’s
foundries
2025,
continuous
Global
Supply
See progress in E5-3
Increase the use
of recycled steel
in own foundries
Resource outflows
Technology lifecycle
extension
Technologies enabling
the use and
conversion of
renewable and
recycled resources
Solutions enabling
circularity
Demand for resource-
efficient and
renewable resource
use technologies
Lead Beyond Circularity Research
and Development Program and
ecosystem to transform waste
and emissions into valuable
resources for sustainable growth
and accelerating the green
transition
Process technologies, automation, and
services that create value by utilizing
renewable and recycled materials,
industrial side stream rejects, and
waste
Valmet’s internal
and external
ecosystem within
the scope of the
Beyond Circularity
program
2022–2025
Research
and
Development
function
With more than 370 ecosystem partners,
Valmet has worked within 47 ecosystem
projects. The program has progressed very well
in Valmet internally and within the ecosystem.
See more information under E5-5.
35 ecosystem
project
applications by
2025
Continuous development of
Valmet’s pulp, energy, and
circularity technology with
circular material flow and
solutions to produce value-
adding products from pulp mill
side streams
Efficient material and chemical use and
circulation, reduced emissions and
waste, optimized lifecycle, and rebuild
and replacement capabilities to convert
existing technologies to new uses
Valmet’s
Biomaterial
Solutions and
Services
2025,
continuous
Pulp, Energy
and
Circularity
business
area
Continuous development incl. cross-business
focus on the delivery of world’s largest single-
phase pulp mill; continuous development of
new technologies incl. lignin production, sulfuric
acid plant technology and bioethanol and
biochemical production
Not applicable
Continuous development of
Valmet’s full scope packaging
and paper technology for
efficient use of materials, circular
material flow, and new
applications
Efficient material and chemical use and
circulation, reduced emissions and
waste, optimized lifecycle, and rebuild
and replacement capabilities to convert
existing technologies to new uses
Valmet’s
Biomaterial
Solutions and
Services
2025,
continuous
Packaging
and Paper
business
area
Continuous development incl. new technologies
for the full lifecycle of board and paper
production lines and cross-business focus on
the development of molded fiber technology;
Valmet’s new 4-step approach to improving
resource efficiency in board and paper making
Not applicable
Continuous development of
Valmet’s full scope tissue
technology for efficient use of
materials, circular material flow,
and new applications
Efficient material and chemical use and
circulation, reduced emissions and
waste, optimized lifecycle, and rebuild
and replacement capabilities to convert
existing technologies to new uses
Valmet’s
Biomaterial
Solutions and
Services
2025,
continuous
Tissue
business
area
Continuous development incl. new technologies
for the full lifecycle of tissue production lines
and cross-business focus on innovative
solutions from stock preparation to tissue
machinery and converting
Not applicable
Continuous development of
Valmet’s automation solutions
for optimized use of materials,
circular material flow, and new
applications
Through the extensive portfolio,
automation solutions act as a catalyst
for resource efficiency and circularity,
enabling efficient material and chemical
use and circulation, reduced emissions
and waste, optimized lifecycle, and
rebuild and replacement opportunities.
Valmet’s Process
Performance
Solutions
2025,
continuous
Automation
Solutions
business
area
Continuous development to create future-proof
automation solutions and services, incl. further
deployment of Valmet DNAe, a next-generation
distributed control system, and focus on
analyzers, measurements, diagnostics, asset
performance, condition monitoring, intelligent
maintenance, and lifetime compatibility and
support at plant, mill, fleet, or cross value chain
level
Not applicable
Continuous development of
Valmet’s flow control solutions
for optimized use of materials,
circular material flow, and new
applications
Flow control solutions to enable
reliability, efficient material and
chemical use and circulation, reduced
emissions and waste, optimized
lifecycle, and rebuild and replacement
opportunities.
Valmet’s Process
Performance
Solutions
2025,
continuous
Flow Control
business
area
Continuous development to deliver mission-
critical flow control technologies and services
for the continuously evolving needs of various
process industries, incl. modularity and
refurbishment, replacement and recycling when
valves reach the end of their lifecycle. The
project on environmental impacts of Flow
Control products continued during 2025.
Not applicable
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The actions listed in the table address the material impacts related
to resource inflows and resource outflows in Valmet’s own
operations and in the value chain. The actions address the
objectives of Valmet’s Code of Conduct, Supplier Code of
Conduct, and Guidelines for Sustainable and Responsible
Research, Product Development and Design.
Research and development work is carried out mainly in Finland
and Sweden by the Research and Development organizations in
Valmet’s business areas. Valmet operates 33 Research and
Development centers that are also pilot facilities for customer
projects and internal testing. At the end of 2025, Valmet Research
and Development employed 542 people (564), while research and
development expenses for the year totaled EUR 126 million
(123 million). Valmet has steadily invested in its Research and
Development Program Beyond Circularity between 2022 and
2025, reaching approximately EUR 40 million in investments by
the end of the program in 2025. The program was partly funded
by Business Finland and was part of the “Veturi” initiative, which
invited international companies to solve some of society’s most
pressing challenges through increased research, development,
and innovation.
Valmet has established a Green Finance Framework applicable
for the issuance of green debt instruments. The Green Finance
Framework is designed to support the financing or refinancing of
eligible assets and expenditures that promote two key
environmental objectives: mitigating climate change and enabling
the transition to a circular economy. At the end of 2025, Valmet
had two outstanding green debt instruments totaling EUR 250
million which are issued under the Green Finance Framework.
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Targets related to resource use and circular economy
E5- 3 MDR -T
Material
sustainability topic
Related material impact
in brief
Targets
Key performance
indicator
Base year
Baseline
Scope
Progress in 2025
Relevant policy
Resource inflows
Production of technologies
requiring large quantities
of materials
Increase the share of
recycled steel to 85% by
2030
Share of recycled steel in
own foundries
2020
54%
All Valmet foundries
The amount of recycled
steel used in Valmet’s
foundries increased to 82
(77)% in 2025
Climate and Nature Policy
Statement, Supplier Code
of Conduct
Resource outflows
Technologies enabling the
use and conversion of
renewable and recycled
resources
Sustainability
categorization done for
100% of all new Research
and Development projects
by 2025
% of new research and
development projects for
which sustainability
categorization has been
done
2024
88%
All new research and
development projects from
2025 onwards
Sustainability impact
assessment in place as a
mandatory requirement
for all new research and
development projects in
related tool. Sustainability
categorization done for 86
(88)% of projects in 2025.
Valmet Guidelines for
Sustainable and
Responsible Research,
Product Development and
Design
Technology lifecycle
extension
Increase the net sales of
circular economy aligned
solutions and services by
2030
Growth in net sales (%)
2024
EUR 1,065  million
Valmet’s EU taxonomy
aligned activities under
criteria: Circular economy
(CE) 5.1 Repair,
refurbishment and
remanufacturing
The net sales of circular
economy aligned solutions
and services  increased to
EUR  1,401 million
Climate and Nature Policy
Statement, Valmet
Guidelines for Sustainable
and Responsible Research,
Product Development and
Design
Valmet has set the targets listed in the table to reduce negative
impacts and to advance positive impacts related to resource
inflows and resource outflows in its own operations and in the
value chain. The absolute resource inflow target addresses the
objectives of the Climate and Nature Policy Statement and the
Supplier Code of Conduct. The target relates to sustainable
sourcing and the increase of circular material use. The target has
been set on a voluntary basis and is not based on legislation or a
specific environmental scenario . The target is part of Valmet’s
Climate Transition Plan and internal stakeholders, including key
experts and management from relevant functions and business
areas were included in the target-setting process. The progress of
the target is monitored in Global Supply.
The absolute resource outflow targets address the objectives of
the Valmet Guidelines for Sustainable and Responsible Research,
Product Development and Design, and the principles outlined in
Valmet’s Climate and Nature Policy Statement. The targets relate
to sustainable product development and design and are part of
Valmet’s Technology vision and roadmap, which have been
prepared in the process led by Valmet’s Strategic Research and
Development function in collaboration with the Business Areas’
Research and Development. Valmet’s Research and Development
Leadership Team sets the technology specific targets and follows
up progress at least annually. Targets are set with key technology
experts and management from business areas and relevant
functions. The target related to the Sustainability categorization is
based on conclusive measurable evidence but not a specific
environmental scenario. In 2025 the presentation of the target
related to sustainability categorization was changed. The baseline
value of 88 percent represents the share of new research and
development projects for which sustainability categorization has
been completed. In 2024, the value was 12 percent, representing
projects that were not categorized. The target related to the
increase of net sales of Valmet’s lifecycle solutions and services is
aligned with Valmet’s strategy and set by respective business
areas. The target is based on the EU Taxonomy regulation, but
not a specific environmental scenario.
Resource inflows
E5-4
Resource use
Valmet has identified steel, electronics and electrical components,
polymers, and packaging materials as the most significant
resource inflows. The primary material for Valmet’s solutions is
steel. Valmet purchases steel assemblies, structures, and
components globally, using them at its own production and
customers’ sites to deliver customer solutions, particularly in
process technologies. Polymers are used to manufacture products
such as press felts, shoe press belts, filter fabrics, and forming
fabrics for process technologies. Electronics and electrical
components are integral to automation solutions and
incorporated into various process technology solutions.
Packaging materials are used in logistics to ensure the safe and
efficient transportation of goods.
Resource inflows reporting for steel, polymers, and electronics
and electrical components is based on purchase order data
compiled from Valmet’s Enterprise Resource Planning systems.
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Purchase orders have been allocated based on the receipt date and
internal purchases between Valmet’s companies have been
excluded to avoid double counting. Products lacking weight
information have been estimated by using the weight-cost ratio
and statistical analysis. Information regarding packaging
materials has been extracted from Valmet’s logistics system.
The calculation for recycled steel is based on the volume of
recycled steel in Valmet’s own foundries, which represents
12 (14) percent of the total steel volume. In other material
categories, data availability limits the reporting of recycled
material volume.
Resource inflows
2025 Material category
Total volume
(metric tons)
Recycled
volume
(metric tons)
Recycled
volume (%)
Steel
154,900
18,624
12%
Electronics and electrical
components
1,334
0
0%
Polymers
7,938
0
0%
Packaging material
13,200
0
0%
2024 Material category
Total volume
(metric tons)
Recycled
volume
(metric tons)
Recycled
volume (%)
Steel
159,639
21,626
14%
Electronics and electrical
components
5,574
0
0%
Polymers
8,153
0
0%
Packaging material
15,477
0
0%
Resource outflows
E5-5
Circular solutions
Valmet’s product portfolio delivers advanced process
technologies, automation and flow control solutions, and lifecycle
services for pulp, paper, packaging, tissue, energy, and other
process industries – driving customer success, resource efficiency,
and circularity in line with its “Lead the Way” strategy to
transform industries toward a regenerative tomorrow.
Valmet launches around 100 new products to the market every
year. These products are often created in close cooperation with
customers and Valmet’s network of leading universities, research
institutes, suppliers, and other research partners around the
world.
The integration of sustainability topics in Valmet’s Research and
Development activities is ensured through the sustainability
criteria that are an integral part of the research and development
process. The criteria ensure that when developing a new product
or innovation, resource efficiency, GHG emission reduction, and
safety are key areas to consider. They also help secure the new
product’s compliance with product and process safety legislation.
Finally, they guarantee that sustainability benefits are integrated
into the final product or solution to be launched.
Valmet’s Technology Vision sets the long-term direction for
research, development and innovation activities. Valmet’s
research and development focus areas are:
• Enabling the circular economy
• Improving efficiency with digitalization
• Resource efficiency – more with less
• From fossil to renewable materials
• Toward fossil-free production processes.
The expected lifetime of Valmet’s technologies is between 10 and
100 years. Information about the industry average of the expected
durability of all products is difficult to obtain. In Valmet’s
research and development efforts, maximizing the operating time
and delivering a seamless technology lifecycle of Valmet
technologies for customers are emphasized. Valmet’s services
offering extend the lifetime of customer technologies through
reuse, rebuilds, and maintenance activities. Modular design
enables efficient reuse and replacement possibilities. Valmet
products are in essence recyclable but due to various sizes,
complex product structures and other variability, it is not possible
to disclose the rate of recyclable content.
Beyond Circularity research and development program
and ecosystem
Beyond Circularity was Valmet’s Research and Development
program and ecosystem to transform waste and emissions into
valuable resources for sustainable growth and accelerating the
green transition. The Beyond Circularity program aimed to
develop process technologies, automation solutions, and services
to create value by utilizing renewable and recycled materials,
industrial side stream rejects, and waste.
The program was implemented through seven streams: program
management; recycling technologies; bio-refining / value adding
to waste; resource-efficient industries; automated and digitalized
industry and services; service lifecycle concepts; and emerging
new process concepts and disruptive business.
A new green transition ecosystem has been built as part of the
Beyond Circularity program to create value and business for the
participants and expand competences to new areas. More than
370 partners joined the ecosystem to work within 47 ecosystem
projects. Internally, Valmet initiated or completed over 100
research and development projects directly linked to the
program. Valmet has steadily invested in the Beyond Circularity
program between 2022 and 2025, reaching approximately
EUR 40 million in investments by the end of the program in
2025. The program was partly funded by Business Finland and
was part of the “Veturi” initiative, which invited international
companies to solve some of society’s most pressing challenges
through increased research, development, and innovation. To
highlight some case examples from the Beyond Circularity
program focusing on efficient resource use and the circular
economy, PESCO-UP is a Horizon Europe project, funded by the
European Union, to transform the textile recycling industry by
creating new raw materials from mixed wastes; and the
co-innovation project Bio4All aims to turn forest and agricultural
biomass residues into sustainable chemicals and fuels.
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Social information
S1: Own workforce
Strategy
Interests and views of stakeholders
ESRS 2 SBM-2
This information is disclosed under ESRS 2 SBM-2.
Material impacts, risks and opportunities and
their interaction with strategy and business
model
ESRS 2 SBM-3
This information is disclosed under ESRS 2 SBM-3.
Impacts, risk and opportunity management
Policies related to own workforce
S1-1 MDR-P
As stated in Valmet’s Code of Conduct, Valmet is committed to
following the below international conventions and guidelines in
its operations.
• UN Global Compact and Sustainable Development Goals
• UN Universal Declaration of Human Rights
• UN Guiding Principles on Business and Human Rights
• ILO Declaration on Fundamental Principles and Rights
at Work
• OECD’s Guidelines for Multinational Enterprises.
Consequently, all Valmet’s policies support these principles and
guidelines. Valmet has embedded human rights due diligence
into its management systems and key processes. Valmet monitors
compliance with the UN Guiding Principles on Business and
Human Rights and the OECD Guidelines for Multinational
Enterprises through its Sustainability Due Diligence Framework.
More information about Valmet’s Due Diligence Framework is
disclosed under ESRS2 GOV-4, S1-4, and S2-4 in this report.
Measures to provide a remedy for human rights impacts are
disclosed under S1-3, S2-3, and S2-4. Valmet’s general processes
for engaging with its employees are described in S1-2.
Additionally, Valmet provides e-learning courses on the Code of
Conduct, Health and Safety and Human Rights.
Valmet’s policies regarding its own work force have initially been
set by the relevant owners and key stakeholders from People and
Culture, Sustainability, Health, Safety, Environment and Supply
Sustainability, and Valmet’s Legal functions. All policies are
regularly reviewed in accordance with the company’s governance
model. The monitoring of all policies is in line with Valmet’s
internal control principles and the principles of Valmet’s
corporate culture, defined in more detail under ESRS 2 GOV-5.
Policies adopted to manage working conditions
Valmet has adopted Valmet’s Code of Conduct, the Valmet
Human Rights Policy Statement, the Health, Safety and
Environment (HSE) Policy, the Health, Safety and Environment
(HSE) Committee Guideline, and Valmet’s Human Resource
Policy to manage the following material impacts related to
working conditions in its own operations:
• Enabling social and other forms of dialogue (actual positive
impact)
• Collective bargaining and freedom of association practices
(actual negative impact)
• Exposure to health and safety risks (actual negative impact).
Valmet’s Code of Conduct
Valmet’s Code of Conduct defines Valmet’s requirements and
expectations in terms of ethical business practices, human rights,
equal opportunities, diversity and inclusion, a respectful work
environment and health, safety, and wellbeing, for example.
Valmet’s Code of Conduct explicitly addresses human rights
violations such as forced labor and child labor. The MDR-P
requirements for the Code of Conduct are disclosed under G1-1.
Valmet Human Rights Policy Statement
Valmet’s Human Rights Policy Statement defines the Group’s
commitment to respecting and promoting human rights in
compliance with the UN Guiding Principles on Business and
Human Rights, and it acknowledges that promoting human
rights is fundamental for carrying out its business responsibly.
The statement is applicable to all employees and entities within
Valmet and to all its stakeholder relationships. Valmet works
with and encourages its business partners to uphold the
principles in this statement within their businesses. The MDR-P
requirements for the Human Rights Policy Statement are
disclosed under S2-1.
Information about the measures to provide and enable remedy
for human rights impacts is disclosed under S1-3, S2-3, and S2-4
in this Sustainability Statement. Valmet’s approach to
engagement with value chain workers can be found under S2-2.
In addition to the Valmet Human Rights Policy Statement,
Valmet has a Modern Slavery Statement based on the Modern
Slavery Act to prevent modern slavery and human trafficking. It
covers Valmet’s own operations and its supply chain.
Valmet Health, Safety and Environment (HSE) Policy
Valmet’s Workplace Accident Prevention Policy is defined in its
Health, Safety and Environment (HSE) Policy. This policy states
Valmet’s commitment to protecting the health and safety of its
employees, partners, suppliers, and customers, as well as the
environment and the communities where it operates. The policy
is applicable to Valmet’s own workforce, as well as partners,
suppliers, and business contacts and is available for all
stakeholder groups on the company website.
The policy is endorsed by the President and Chief Executive
Officer of the company, and the Executive Vice President, Global
Supply is the most senior level accountable for its
implementation. Policy monitoring is done through health,
safety, and environment notification routines as well as weekly
and monthly health, safety and environment reporting practices
as part of business area reviews. In addition, the policy is
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monitored through quarterly strategic reviews with the Executive
Leadership Team and through annual management reviews of the
certified Global Management System (GMS). Valmet maintains a
multi-site certification of the GMS to the international health and
safety management system standard, ISO 45001:2018 and the
international environmental management system standard,
ISO 14001:2015. Currently 81 (79) percent of all employees are
covered by ISO 45001:2018 certification, and 83 (80) percent by
ISO 14001:2015 certification.
Valmet Health, Safety and Environment (HSE)
Committee Guideline
Valmet’s Health, Safety and Environment (HSE) Committee
Guideline sets the framework for ensuring consultation and the
participation of its own workforce in health and safety
management in locations with 30 or more employees. Currently,
95 (95) percent of all employees are represented by a local Health,
Safety and Environment Committee. The Executive Vice
President, Global Supply is the most senior level accountable for
its implementation. Monitoring of the guideline is done through
annual reporting and auditing programs. This guideline is
available for internal stakeholders in the company intranet.
Valmet Human Resource Policy
Valmet’s Human Resource Policy provides a framework for the
management of the People and Culture function, which is
committed to developing an engaged and performance-driven
community and continuously driving the global development of
Valmet employees’ capabilities. The policy is applicable to all
Valmet employees and is available for internal stakeholders in the
company intranet. The Executive Vice President of People,
Communications and Culture is the highest level accountable for
policy implementation. People and Culture continuously assesses
the impact of its processes and tools. People and Culture uses
regular assessment and reporting tools, including the employee
survey, stakeholder survey, and a third-party-operated reporting
channel, TrustLine, to enhance the positive impacts and to avoid,
mitigate, and remediate negative impacts on key stakeholders.
Polices adopted to manage equal treatment and
opportunities for all
Valmet has adopted the Valmet Non-Discrimination and Anti-
Harassment Policy and the Valmet Equal Opportunity and
Diversity Policy to manage the following material impact related
to equal treatment and opportunities for all in its own operations:
• Consequences of gender imbalance (actual negative impact).
The following grounds for discrimination are specifically covered
in Valmet’s policies: gender; age; race; religion; ethnic or national
origin; political opinion; family status; sexual orientation; gender
identity; disability; or other characteristics protected by law.
Color, sex, and national extraction or social origin are not
specifically covered.
Global and local policies, guidelines, and practices for non-
discrimination, anti-harassment and equal opportunities direct
the Valmet way of operating. The principles of these policies,
guidelines, and practices are built into people processes such as
recruitment and salary planning processes. In addition, equal
opportunities, diversity and inclusion and a respectful work
environment are covered as separate sections in the Code of
Conduct training, which is mandatory for all Valmet employees
and is renewed and updated regularly. More information about
Valmet’s processes to ensure discrimination is prevented,
mitigated, and acted on once detected, as well as to advance
diversity and inclusion in general, is disclosed under S1-4 in
this report.
Valmet Non-Discrimination and
Anti-Harassment Policy
This policy outlines the measures Valmet takes to ensure a
respectful and inclusive workplace free of discrimination and
harassment. The policy is applicable to all Valmet employees and
is available for all stakeholder groups on the company website.
The Executive Vice President of People, Communications and
Culture is the most senior level accountable for the
implementation of the policy. Policy monitoring happens
through Valmet’s raising concerns process, which is described in
more detail in the Compliance Reporting Guideline.
Valmet’s Non-Discrimination and Anti-Harassment Policy
includes a provision for positive discrimination as provided for in
local legislation. However, the policy does not state specific
vulnerability groups or specific commitments to these groups.
Valmet Equal Opportunity and Diversity Policy
Valmet’s Equal Opportunity and Diversity Policy defines
Valmet’s approach to promoting equal opportunities for all
employees. The policy is applicable to all Valmet employees and
is available on the company website for all stakeholder groups.
The Executive Vice President of People, Communications and
Culture is the most senior level accountable for the
implementation of the policy. Policy monitoring happens
through Valmet’s raising concerns process, which is described in
more detail in the Compliance Reporting Guideline.
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Processes for engaging with own workforce and
workers representatives on impacts
S1-2
Valmet’s European Works Council is a forum for dialogue
between management and employee representatives on
international work issues involving the whole company or
multiple EU/EEA countries. Such matters as company strategy,
new working or production methods, occupational health and
safety, environmental affairs, the human resources policy and
guidelines, and gender equality are discussed in this forum. In
addition, Valmet utilizes the channels listed in the table below to
identify, assess, and inform decision-making on actual and
potential impacts in Valmet countries globally.
In 2025, the company ran a safety culture survey and began
conducting regular pulse surveys. These surveys explored a range
of topics, including questions related to both actual and potential
material impacts on employees. The surveys’ findings were
reviewed and discussed in different groups – for example, within
leadership teams, with employee representatives such as the
European Works Council, and in other relevant forums.
To ensure transparency, the results, along with information about
how survey insights would inform future actions, were shared in
the company intranet. Importantly, the surveys also enable the
company to better understand and respond to the needs of
potentially vulnerable employee groups, drawing on background
data such as gender and worker type. By frequently administering
pulse surveys, the company can monitor trends over time and
continuously assess the overall effectiveness of its engagement
efforts.
Engagement type
Stakeholder group
Frequency
Function responsible/
Resources to manage
Most senior role responsible
Outcomes
Dialogue
Management–employee dialogue
Select employee groups, e.g.,
town hall meetings
Varies
Leadership Teams
Respective Executive Leadership
Team member
Information sharing and direct dialogue
with employees
Health, Safety and Environment
and Social Committees
Locations with >30 employees
At least annually
Health, Safety, Environment and
Supply Sustainability,
People and Culture
The Executive Vice President,
Global Supply and Vice President,
People Operations
Consultation and communication with
employees and their representatives on
Health, Safety, and Environment and
wellbeing management
Works Councils and other similar
forums
Select groups, e.g., the European
Works Council
Varies
People and Culture
Vice President, People Operations
Information sharing and direct dialogue
with workers and their representatives
Consultation and negotiation
National works councils and trade
unions
Varies
People and Culture
Vice President, People Operations
Expectations related to, e.g., local laws,
regulations, and market practices
Surveys
Pulse/ad-hoc surveys
Select employee groups, e.g., in
conjunction with the operating
model change
Varies
People and Culture,
Health, Safety, Environment and
Supply Sustainability
Head of the business / function
Employee perspectives on, e.g., change
impacts, employee sentiment, workability,
social and organizational work
environment, safety culture
Reporting
channels
Reporting on continuous
improvement and Health, Safety,
and Environment events
(Spotlight)
Own employees
Ongoing
Health, Safety, Environment and
Supply Sustainability
Vice President, Health, Safety,
Environment, and Supply
Sustainability
Inputs to support continuous
improvement, especially in health, safety,
and environment topics and sustainability-
related topics
Misconduct reporting (TrustLine)
Own employees
Ongoing
Ethics and Compliance
Executive Vice President Legal,
and General Counsel
Complaints against Valmet and confirmed
misconduct cases
Control
mechanisms
Audits
Multi-site and/or certified
locations
Ongoing
Multiple
Director Global Quality
Management and Development
Process compliance and adherence to
ISO standards (9001, 14001, 45001)
Human Rights Impact Assessment
High-risk locations
Annually
Sustainability
Vice President of Sustainability
Identifying risks and impacts, especially
amongst vulnerable groups
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Processes to remediate negative impacts and
channels for own workers to raise concerns
S1-3
Valmet encourages its own workforce to raise concerns about
possible violations of Valmet’s Code of Conduct, unethical
business behavior, or other misconduct. This includes grievances
and complaints related to employee matters.
Processes for providing or contributing remedies for material
negative impacts on Valmet’s own workforce depend on the
nature of the case. Valmet has an Incident Management Team
process with defined responsibilities for ensuring that all cases are
handled appropriately, with particular focus on the most severe
ones, and the remedies are effective. For serious health and safety
incidents, Valmet has a Health and Safety incident investigation
guideline, which includes the approach for corrective actions.
Assessing the effectiveness of the remedy is built into the health
and safety incidents handling process.
Valmet employees are advised to report misconduct or grievances
to their own managers or other management, the People and
Culture function, or directly to the Legal, Ethics and Compliance,
and Internal Audit functions. Valmet also offers a third-party-
operated reporting channel, TrustLine, for reporting suspected
breaches of Valmet’s Code of Conduct or other grievances and
misconduct. It provides Valmet employees with the possibility to
report possible concerns confidentially in their native language,
and anonymously if desired. TrustLine is available for everyone
24/7 in Valmet’s intranet and on its external website, and it is
designed to guarantee anonymity. The reporter can make a report
either online or by calling a call center. Reported grievances and
complaints are handled in accordance with a process that is
described in detail in the Compliance Reporting Guideline. The
content and requirements set in the guideline are described in
more detail in section G1-1.
Valmet’s Ethics and Compliance function monitors and tracks
the ongoing cases to ensure that all reported matters are
investigated in a timely manner, and follow-up actions are
agreed. Valmet has a Compliance Committee structure consisting
of the global Corporate Compliance Committee, global
Sustainability Due Diligence Compliance Committee, and
business area Compliance Committees. All reported cases are
handled in at least one of these committees. The Compliance
Committees are responsible for making decisions on the results
of cases, their corrective actions, and follow-up. This includes
ensuring that provided remedies are effective. Valmet has defined
by subject matter and outcome which cases are reported to the
Chief Executive Officer, and which are also reported to Valmet’s
Board Audit Committee. Any human rights issues in Valmet’s
own workforce are reported to the Board Audit Committee.
In 2025, Valmet continued to train employees in the availability
of the misconduct reporting process through the mandatory
Code of Conduct e-learning course and dedicated internal
communications. Valmet employees’ awareness of Valmet’s
misconduct reporting procedures was surveyed in a Group-wide
assessment and an Ethics and Compliance risk assessment survey
during 2025. Awareness of the misconduct reporting process and
TrustLine was also assessed as part of corporate internal audits
conducted in seven Valmet locations in 2025.
Valmet does not tolerate any form of retaliation against
individuals who in good faith raise their concerns or assist in the
investigations. The protection of whistleblowers is described in
detail in section G1-1.
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Taking action on material impacts on own workforce, and effectiveness of those actions
S1-4 MDR-A
Actions and resources related to material sustainability matters
Material
sustainability topic
Related material
impact
Action
Expected outcome
Scope
Time horizon
Resources to manage
Progress on actions
Related target if applicable
Working
conditions
Enabling social and
other forms of dialogue
Collective bargaining
and freedom of
association practices
Location-specific Human
Rights Impact
Assessment
Identification and control
of risks
Locations in high-
risk countries
Assessment
annually in own
operations or
in upstream
value chain
Sustainability
See progress in S1-5
At least one Human Rights
Impact Assessment annually
in own operations and in the
value chain based on the risks
identified
Provide human rights
training through e-
learning
Awareness building
Line managers
Continuous
Sustainability, People and
Culture
Progressing as planned
Not applicable
Conduct change pulse
survey
Understand change impacts
and plan next steps
Employees most
impacted by change
Quarterly
People and Culture
Progressing as planned
Not applicable
Ensure clear practices to
boost social dialogue and
other types of dialogue
throughout the
organization
Dialogue on working
conditions in all locations
Own employees
Continuous
People and Culture,
Health, Safety, Environment
and Supply Sustainability,
senior leadership, line
managers
Progressing as planned
Not applicable
Sustainability impact
assessment of business
changes
Identification and control
of risks
Own operations
Continuous
Sustainability
Progressing as planned
Not applicable
Exposure to health and
safety risks
Increase the number of
Valmet employees
working in locations
certified to
ISO 45001:2018
Effective global
management system (GMS)
and common standards in
locations securing
workplace conditions are as
healthy and safe as possible
All locations with
Valmet workforce
Continuous
Health, Safety, Environment,
and Supply Sustainability,
Quality, line managers, internal
auditors, external certification
partner
See progress in S1-5
> 90% of employees work in
ISO 45001 certified locations
by 2030
Implement and maintain
Health, Safety, and
Environment committees
in locations with 30 or
more employees
Active joint workforce-
management consultation
and engagement on
managing local health and
safety impacts
All locations with
Valmet workforce
Continuous
Worker health and safety
representatives, Health, Safety,
Environment and Supply
Sustainability, line managers,
committee budgets
Progressing as planned
Not applicable
Targeted prevention
programs based on injury
and illness analysis
Reduction in high
consequence and/or high
frequency injuries and
illnesses
Own workforce
Continuous
Health, Safety, Environment
and Supply Sustainability,
Occupational health service
providers, line managers
See progress in S1-5
Reduction in injury and illness
severity and frequency rates
Developing safety
culture, leadership and
mindset through
training, communication
and performance metrics
Promotion of a strong
safety culture by leaders,
and workforce engagement
in it
Own workforce
Continuous
Line managers, Health, Safety,
Environment and Supply
Sustainability, employees
Progressing as planned
Not applicable
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Material
sustainability topic
Related material
impact
Action
Expected outcome
Scope
Time horizon
Resources to manage
Progress on actions
Related target if applicable
Equal
treatment and
opportunities
for all
Consequences of
gender imbalance
Adhere to common
global employee lifecycle
processes, e.g., related
to recruitment and salary
planning
Consistent ways of working
Own employees
Continuous
People and Culture, line
managers, employees
Progressing as planned
Not applicable
Provide diversity, equity
and inclusion training
Awareness building and
behavior change
Own employees
Continuous
People and Culture
Learning offering
expanded to include
psychological safety
workshops.
Not applicable
Continue with pay equity
and transparency project
Ensure equal treatment and
fair remuneration of
employees at all levels of
the organization
Own employees
2024–2027
People and Culture
Progressing as planned;
See S1-16 for additional
information
Not applicable
Approach to managing material impacts
Valmet recognizes and actively engages with employee
representation bodies and promotes practices that create
opportunities for active dialogue in the workplace. Working
conditions are determined by the employer (Valmet) for
employees who are not part of a collective agreement. When
determining working conditions, Valmet is committed to
meeting or exceeding all compliance obligations. Compliance
with applicable local laws and regulations is the foundation of
all operations.
Collective bargaining and social dialogue
Valmet’s operations are partially located in regions where
collective bargaining is limited or not common practice, which
places Valmet’s employees in those countries at increased risk of
a lack of sufficient opportunity to engage in freedom of
association and collective bargaining, and social dialogue. Based
on this identified impact, Valmet continues to conduct Human
Rights Impact Assessments in high-risk locations and provide
human rights training to its employees through a globally
available e-learning course. The effectiveness of these measures is
tracked through the number of significant findings in the
assessments carried out and e-learning completion. Valmet
determines appropriate actions for specific material negative
impacts, e.g., reported confirmed cases in TrustLine, on a case-
by-case basis and relies on trend data to identify the need for
possible wider action.
Valmet understands the benefits of active dialogue with its
employees and therefore supports activities that foster different
forms of dialogue. Besides the types of engagement shown in
Table S1-2, Valmet also recommends holding regular one-to-
ones and team meetings, site-specific town-halls, feedback
surveys, info sessions, and local management-employee forums.
Valmet assesses the effectiveness of these measures by monitoring
employee sentiment levels and other trends through Valmet’s
change pulse surveys.
In 2025, Valmet initiated company-wide change negotiations as
part of its operating model renewal. Throughout the process
Valmet remained committed to working closely with its
employees and their representatives, including its European
Works Council, to ensure a smooth negotiation process. Valmet
used a global internal info site, CEO Q&A sessions and regular
internal articles to address questions and provide progress
updates for employees. Additionally, a series of change pulse
surveys was conducted after the close of negotiations.
Health and safety
Valmet aims to ensure that a strong safety culture, excellent
processes, and effective practices are in place to identify and
control hazards before they cause harm. Everyone is expected to
take responsibility for healthy and safe behaviors as defined in the
Valmet senior manager, manager, and employee roles. To
support a fair, just, and caring safety culture Valmet continuously
invests in training and awareness activities to enhance safety
leadership, engagement, and mindsets. In 2025, a global health
and safety culture survey was conducted to get a better
understanding of the current state of Valmet’s safety culture. A
Health, Safety, and Environment awareness week is held globally
in September each year.
Valmet promotes joint workforce–management Health, Safety,
and Environment Committees in all locations, and 95
(95) percent of the employees are currently represented by a
committee that focuses on local safety risk reduction and health
promotion. In addition, Valmet collaborates actively with
customers and suppliers to promote best practices and improve
health, safety, and the environment in common worksites in
customer facilities.
Valmet’s Global Management System (GMS) ensures strong
health and safety management is integrated into business
processes. Valmet has four Life Saving Rules and fifteen
Minimum Safety Standards to ensure the hierarchy of controls is
implemented globally in all high-risk activities. Locations with
health, safety, and environment risks are certified according to
the ISO 45001:2018 (health and safety) management standard
and are regularly audited. Valmet monitors and openly
communicates health and safety performance to enable the
continuous development of Valmet’s approach.
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Continuous improvement of Health, Safety, and Environment is
one of Valmet’s HSE strategy focus areas, with actions defined
each year and cascaded through annual planning and target
setting across the organization. As a key element of this initiative,
Valmet’s operations implement annual injury and illness
prevention actions. During 2025, quarterly campaigns were
implemented through training, communications, inspections,
and procedure development concerning fire prevention and
emergency preparedness.
To drive and inform continuous improvement, employees and
other stakeholders are encouraged to report health and safety
incidents, improvement ideas, and observations through
Valmet’s reporting portal, including anonymously. All injuries
and illness cases, as well as high potential near-miss cases, are
thoroughly investigated, and actions are taken to prevent similar
incidents in the future. Employees are covered by work-related
injury and illness insurance in all Valmet’s operations with access
to compensation and support mechanisms.
Effectiveness of initiatives and actions to protect health and safety
is tracked by following trends in injury and illness frequency and
severity, as well as proactive safety performance indicators, as
part of business reporting and management.
Equal treatment and opportunities for all
As stated in the Equal Opportunity and Diversity Policy, Valmet
is committed to promoting equal opportunities for all employees,
regardless of gender, age, race, religion or beliefs, ethnic or
national origins, marital/civil partnership status, sexuality, or
disability. Valmet recognizes the business benefits of having a
diverse workforce and aims to create and sustain a work
environment that values diversity and provides equal
opportunities to everyone.
Valmet has a significant gender imbalance in its workforce, partly
due to the industry in which it operates, which can cause
unintentional bias and unfair treatment for underrepresented
groups, e.g., in recruitment, career progression, and pay equity.
Valmet mitigates this impact mainly by ensuring common ways
of operating as outlined below:
• Global non-discrimination, anti-harassment, and equal
opportunities policies direct how Valmet operates. The
principles of these policies are built into Valmet’s people
processes such as the recruitment and salary planning
processes.
• Global procedures for compensation management,
performance management, and resourcing are documented in
Valmet’s Global Management System and implemented via
Valmet’s Human Resources system.
• Communication on and training in Valmet’s people processes
is provided to stakeholder groups.
• Reporting on process outcomes is used for continuous
improvement, to evaluate effectiveness, and to identify and
establish plans to correct gaps and inconsistent practices which
may exist in the organization. For example, Valmet
implemented a new report type for managers and HR to
evaluate consistency in objective setting practices in 2025.
Effectiveness of actions is also tracked and assessed through the
complaints monitoring process and identifying significant
developments.
Due diligence processes
Valmet has embedded human rights due diligence into its
management systems and in key processes. Valmet systematically
manages operational changes to ensure that potential negative
social impacts are identified in the planning stage and prevented
or mitigated during change execution. Risk assessments are
conducted, action plans created, and audits and other checks
performed.
As part of Sustainability Due Diligence Framework, Valmet
conducts Human Rights Impact Assessments in high-risk
locations and in the value chain. Valmet is committed to
conducting at least one large assessment annually. Assessments
are carried out by an independent third party. The impact
assessment methodology is based on dialogue with affected
stakeholders and aims to engage with a wide range of affected
individuals, focusing on especially vulnerable groups. As a part of
the process, corrective action plans are drafted based on the
assessment findings, and the progress of the remediation plans
are followed up. More information about Valmet’s Sustainability
Due Diligence Framework is disclosed under ESRS 2 GOV-4.
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Metrics and targets
Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
S1-5 MDR-T
Material
sustainability topic
Related material impact
Target
Key performance indicator
Base year
Base line
Scope
Progress and trends
in 2025
Target monitoring
Relevant policy
Working conditions
Enabling social and other forms
of dialogue
Collective bargaining and freedom
of association practices
At least one Human Rights Impact
Assessment per year in own
operations and in the upstream
value chain based on the risks
identified
Number of assessments
conducted
2017
1
Own operations and
upstream value chain
Large Human Rights
Impact Assessments were
conducted covering one
customer project site and
six sub-contractors
Annually in Sustainability
function
Human Rights Policy
Statement
Transition to a quarterly listening
approach for assessing employee
engagement by the end of 2026
Conduct quarterly surveys;
establish baseline data
2025
2
Own employees
New target; two pulse
surveys run in 2025
Quarterly in People and
Culture function
Not applicable
Exposure to health and
safety risks
>90% of employees work in ISO
45001 certified locations by 2030
% employees in Valmet’s Human
Resources system working in a
location listed on Valmet’s
multisite ISO 45001 certificate
2022
75%
Own employees
In 2025, 13 (12) additional
locations achieved
certification. At the end of
the year, 81% (79) of
employees worked in an
ISO 45001 certified
location.
Annually in Management
Teams and monthly in
business management
and review processes
Health, Safety and
Environment Policy
Reduction in injury severity
Number of high-consequence
injuries leading to permanent
disability, loss of life, or more than
180 days’ absence reported in
Spotlight
2022
9
Own employees
In 2025, there were 4 (3)
high consequence injuries.
Monthly in business
management reporting
and review processes.
Health, Safety and
Environment Policy
Continuous reduction in injury
frequency
Total recordable injury frequency
(TRIF): calculated injuries reported
in Spotlight and theoretical work
hours of 160 hours per employee
in Valmet’s Human Resources
system per month
2022
3.2
Own employees
In 2025, TRIF remained at
3.2 (3.2). Integration of
acquired operations to
Valmet’s HSE culture,
processes and practices
remained a focus.
Monthly in business
management reporting
and review processes.
Health, Safety and
Environment Policy
Four Health, Safety and
Environment walks, inspections
and conversations per line
manager per year in 20251
Number of reported walks,
inspections and conversations by
line managers in Spotlight per
total number of line managers in
Valmet’s Human Resources
system per year
2022
4.7
Line managers
The number of Health,
Safety and Environment
walks, inspections and
conversations by line
managers in 2025 was 5.0 .
Last year's figure (8.4)
included all the reported
walks, talks and
conversations, not only the
ones done by the line
managers.
Monthly in business
management reporting
and review processes.
Health, Safety and
Environment Policy
Four Health, Safety and
Environment event reports per
employee in 2025
Number of Health, Safety and
Environment events reports in
Spotlight per number of
employees in Valmet’s Human
Resources system
2022
2.6
Own employees
The number of Health,
Safety and Environment
events reported in 2025
remained on the same
level: 3.4 (3.4) per
employee.
Monthly in business
management reporting
and review processes.
Health, Safety and
Environment Policy
Equal treatment and
opportunities for all
Consequences of gender
imbalance
Increase the share of women in
science, technology, engineering
and mathematics (STEM)
positions to 13% by 2026
% women with STEM-related
education in Valmet’s Human
Resources system, with the
assumption that individuals with
STEM-related education work in
STEM-related roles.
2024
12.4%
Own employees with
education data in
Valmet’s Human
Resources system
In 2025, the share of
women in STEM-related
roles increased to 12.6%
(12.4)
Annually in annual
reporting
Equal Opportunity and
Diversity Policy
1 The calculation method for walks, inspections and conversations per line manager has been changed from 2024. In 2025, only walks, inspections and conversations done by the line managers are counted, not all reported walks, inspections and conversations as in 2024.
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Valmet has set the targets listed in the table to reduce negative
impacts and advance positive impacts on its own workforce. The
targets were set as part of Valmet’s strategy and annual planning
process which are conducted in all Valmet’s business areas and
functions. Valmet employees are not directly involved in the
target setting process.
The target related to Human Rights Impact Assessment is set and
monitored by the Sustainability function. The targets related to
employee engagement and women in STEM are set and
monitored by the People and Culture leadership team. The new
targets replace the ones disclosed in 2024, which were related to
the same topics.
The targets related to Health and safety are set and monitored by
the Health, Safety and Environment and Supply Sustainability
function. Health, Safety and Environment committees, which
also include the workers’ representatives, have a role in tracking
the performance against the targets and identifying lessons or
improvements as a result of the performance.
All metrics are calculated based on the data in Valmet’s global
Human Resources system, and/or Valmet’s global Health, Safety
and Environmental management system, Spotlight, as of the end
of reporting year. More details on used calculation methods are
described below each table where necessary.
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Characteristics of the undertaking’s employees
S1-6
Employees by country (headcount for countries with
>50 empl. representing >10% total empl.)
2025
2024
Finland
5,869
6,186
China
2,283
2,388
US
2,073
2,191
Total
10,225
10,765
Employees by gender
(headcount)1
2025
2024
Male
14,641
15,222
Female
3,844
4,087
Not disclosed
2
1
Total
18,487
19,310
1 Consolidated financial statements, Note 14. Personnel expenses and number
of personnel.
The employee data is reported in headcount as of the end of the
reporting period and includes all active employees and employees
from the companies acquired during the year. The number of
employees excluded from the active employee data, namely,
employees on leave of absence, e.g., study-leave, long-term sick
leave, parental leave or garden leave was higher than normal due
to the change negotiations and subsequent layoffs which took
place during the year. The data source for information disclosed
under the S1-6, S1-8, and S1-9 disclosure requirements is
Valmet’s global Human Resources system.
Key employee figures end of period
2025
2024
(gender)1
Female
Male
Not disclosed
Total
Female
Male
Not disclosed
Total
Number of employees (headcount)
3,844
14,641
2
18,487
4,087
15,222
1
19,310
Number of permanent employees (headcount)
3,402
13,590
1
16,993
3,600
14,132
1
17,733
Number of temporary employees (headcount)
442
1,051
1
1,494
487
1,090
0
1,577
Number of non-guaranteed hours employees (headcount)
109
196
1
306
94
185
0
279
Number of full-time employees (headcount)
3,597
14,271
1
17,869
3,842
14,831
1
18,674
Number of part-time employees (headcount)
247
370
1
618
245
391
0
636
1 Gender as disclosed by employees themselves.
Turnover1
Number of leavers 2025
Rate
Number of leavers 2024
Rate
Employees
2,058
9.1%
1,709
8.8%
1 The number of leavers includes all employees, excluding summer trainees.
The turnover rate is calculated by dividing the total turnover by the 2025 average headcount, excluding leavers by mutual agreement related to Valmet's operating model renewal, and summer trainees. In 2024, headcount from acquisitions and disposals was excluded from the
turnover rate.
Key employee figures by geographical area
2025
North America
Latin America
EMEA
China
Asia-Pacific
Total
2024
Number of employees (headcount)
2,316
1,630
10,565
2,283
1,693
18,487
19,310
Number of permanent employees (headcount)
2,315
1,501
10,007
1,503
1,667
16,993
17,733
Number of temporary employees (headcount)
1
129
558
780
26
1,494
1,577
Number of non-guaranteed hours employees (headcount)
0
0
306
0
0
306
279
Number of full-time employees (headcount)
2,311
1,630
9,958
2,283
1,687
17,869
18,674
Number of part-time employees (headcount)
5
0
607
0
6
618
636
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Collective bargaining coverage and
social dialogue
S1-8
Overall, 63 (62) percent of Valmet employees are covered by
collective bargaining agreements, inclu ding multiple collective
agreements within the EEA countries in which Valmet has
operations. Working conditions are determined by the employer
(Valmet) for employees who are not part of a collective
agreement.
Valmet has a European Works Council (EWC) with
representatives from different EU countries where it operates. 
According to the Agreement on the European Works Council of
Valmet Corporation, the purpose of the group is to give
employees access to information and the opportunity to be heard
in multinational corporate-level matters, and to enhance dialogue
between the employer and personnel at the European level.
Collective Bargaining Coverage
Social dialogue
Coverage rate
Employees – EEA
(for countries with >50 empl.
representing >10% total empl.)
Employees – Non-EEA
(estimate for regions with >50 empl.
representing >10% total empl.)
Workplace representation (EEA only)
(for countries with >50 empl.
representing >10% total empl.)
0–19%
North America
—
20–39%
—
40–59%
China1
—
60–79%
—
80–100%
Finland
Finland
1 The 2025 data source is Valmet’s global HR management system. In 2024 China data was collected with a country-specific process.
In 2025, reported countries remained in same coverage rate ranges as in 2024
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Diversity metrics
S1-9
Employees by age group
2025
%
2024
%
Under 30 years old
1,973
10.7%
2,140
11.1%
Between 30 and 50
years old
10,037
54.3%
10,399
53.9%
Over 50 years old
6,477
35.0%
6,771
35.1%
Total
18,487
19,310
Employees at top management 1 level
2025
%
2024
%
Female
34
24.6%
40
21.4%
Male
104
75.4%
147
78.6%
Not disclosed
0
0.0%
0
0.0%
Total
138
187
1 Executive Leadership Team and senior management (one and two levels
below ELT).
Health and safety metrics
S1-14
The percentage of people in Valmet’s own workforce who are
covered by the ISO 45001 health and safety management system
based on legal requirements and/or recognized standards or
guidelines and certified by an external party
2025
2024
ISO 45001:2018 (Occupational health and safety
management)
81%
79%
Valmet’s ISO 45001 certificate is managed and reported globally
through Valmet’s Global Management System platform.
The number of fatalities as a result of work-related injuries1
2025
2024
Employees
0
0
Other workers2
0
0
Total
0
0
1 Valmet omits separate non-employee data reporting in 2025.
2 Contracted workforce whose work or workplace is controlled by Valmet (including
non-employees in 2025).
The number of fatalities as a result of work-related ill health 1
2025
2024
Employees
0
0
Other workers2
0
0
Total
0
0
1 Valmet omits separate non-employee data reporting in 2025.
2 Contracted workforce whose work or workplace is controlled by Valmet (including
non-employees in 2025).
The number of recordable work-related accidents1
Employees
2025
2024
North America
12
16
Latin America
26
10
EMEA
67
80
China
7
11
Asia-Pacific
3
1
Total
115
118
1 A recordable work-related accident results in death, days away from work,
restricted work or transfer to another job, or medical treatment beyond first aid
(first aid cases are excluded). Valmet omits non-employee data reporting in 2025.
The rate of recordable work-related accidents
(Total recordable incident frequency by region, TRIF)1
Employees
2025
2024
North America
2.6
3.6
Latin America
8.5
4.0
EMEA
3.2
3.6
China
1.6
2.4
Asia-Pacific
0.9
0.3
Total
3.2
3.2
1 A recordable work-related accident results in death, days away from work,
restricted work or transfer to another job, or medical treatment beyond first aid
(first aid cases are excluded). Valmet omits non-employee data reporting in 2025.
The number of cases of recordable work-related ill health subject to
legal restrictions on collection
Employees
2025
2024
North America
3
3
Latin America
0
0
EMEA
6
17
China
0
0
Asia-Pacific
2
0
Total
11
20
The number of days lost to work-related injuries and fatalities
from work-related accidents
Employees
2025
2024
North America
2
592
Latin America
272
22
EMEA
1,146
1,480
China
106
624
Asia-Pacific
3
17
Total
1,529
2,735
The number of days lost to work-related ill health and fatalities
from ill health
Employees
2025
2024
North America
0
217
Latin America
0
0
EMEA
178
205
China
0
0
Asia-Pacific
216
0
Total
394
422
Valmet uses its global platform, Spotlight, for reporting all
incidents, non-conformities, near misses, observations, and
improvement ideas in Valmet workplaces, including on
customer sites.
Compensation metrics
(pay gap and total remuneration)
S1-16
Remuneration metrics
2025
2024
Gender pay gap
9.2%
11.6%
Total remuneration ratio
29.20
48.60
Gender pay gap
The gender pay gap is defined as the difference of average pay
levels between female and male employees, expressed as a
percentage of the average pay level of male employees. Valmet
calculates the gender pay gap using the base salary data available
in Valmet’s Human Resources system and any short- and/or
long-term incentives paid out during the calendar year.
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Limitations of the data
The calculation does not include any other pay elements such as
overtime payments, allowances, or benefits in kind. Nor does the
calculation consider factors affecting pay comparability, such as
role, local salary market, and individual or team performance.
Valmet is currently undertaking a pay equity project which, once
completed, will provide a consistent mechanism for assessing pay
equity across the company. This evaluation will consider the
principles outlined in Valmet’s Remuneration Policy, such as
role, location, benchmark salary market, and performance. The
initiative is scheduled for completion during 2026, ensuring
Valmet is prepared to meet the requirements of the forthcoming
EU directive on pay equity.
Total Remuneration Ratio
The total remuneration ratio is the ratio of the highest paid
individual to the median annual total remuneration for all
employees. Valmet calculates the total remuneration ratio using
the base salary data available in Valmet’s Human Resources
system and any short- and/or long-term incentives paid out
during the calendar year.
Incidents, complaints and severe human rights
impacts
S1-17
The number of work-related incidents of discrimination, including
harassment, and complaints filed through channel for own workforce
2025
2024
Discrimination, including harassment
12
8
Complaints filed through channel for own people
to raise concerns
13
12
Valmet reports confirmed work-related incidents of
discrimination, including harassment which are against Valmet’s
Non-Discrimination and Anti-Harassment Policy or Valmet’s
Equal Opportunity and Diversity Policy. The discrimination,
including harassment, cases are compiled from a monthly
Human Resource reporting process and the Compliance
Reporting Guideline process.
Complaints filed through channels to raise concerns by Valmet’s
own workforce are defined as those cases that are handled in
accordance with the Compliance Reporting Guideline process
that are related to working conditions and equal treatment and
opportunities for all. The content of the process is disclosed in
more detail in G1-1. The number of complaints received from
Valmet’s own workforce is collected from a summary of all the
cases that were handled in accordance with the misconduct
investigation process, which is described in detail in the
Compliance Reporting Guideline.
Valmet has not received any fines or penalties, or paid
compensation in 2025 for damages as a result of the incidents and
complaints disclosed in S1-17.
The number of severe human rights incidents connected to
own workforce
2025
2024
Number of cases of severe human rights
incidents
0
0
Amount of fines, penalties and compensation
issued/paid for damages for severe human
rights incidents (EUR)
0
0
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S2: Workers in the value chain
Strategy
Interests and views of stakeholders
ESRS 2 SBM-2
This information is disclosed under ESRS 2 SBM-2.
Material impacts, risks and opportunities and
their interaction with strategy and business
model
ESRS 2 SBM-3
This information is disclosed under ESRS 2 SBM-3.
Impact, risk and opportunity management
Policies related to value chain workers
S2-1 MDR-P
Valmet has adopted the Valmet Human Rights Policy Statement,
the Valmet Supplier Code of Conduct, and the Valmet Health,
Safety, and Environment (HSE) Policy to manage, among other
impacts, the following material impacts related to working
conditions and other work-related rights of value-chain workers:
• Collective bargaining, freedom of association, adequate wages
and working time (actual negative impact)
• Exposure to health and safety risks (actual negative impact)
• Measures to improve working conditions and health and safety
(potential positive impact)
• Risks to vulnerable value chain workers (potential negative
impact)
• Access to adequate housing and sanitation (potential negative
impact).
Valmet’s policies regarding value chain workers have initially
been set by the relevant owners and key stakeholders from
Procurement, Sustainability, HSE, and Valmet’s Legal functions.
All policies are regularly reviewed in accordance with the
company’s governance model. The monitoring of all policies is in
line with Valmet’s internal control principles and the principles
of Valmet’s corporate culture, defined in more detail under
ESRS 2 GOV-5.
Valmet Supplier Code of Conduct
The Supplier Code of Conduct defines principles with which
suppliers are required to comply. The requirements are applicable
to Valmet’s suppliers. The supplier must ensure that all its
employees, permanent and temporary, as well as its suppliers and
sub-suppliers, recognize and comply with the requirements set
out in the Supplier Code of Conduct.
Valmet’s Supplier Code of Conduct covers Human Rights and
Valmet expects suppliers to respect internationally recognized
human rights and have a due diligence process in place to
measure, prevent, and mitigate negative human rights impacts
and to avoid causing, contributing, or being linked to negative
human rights impacts. Compliance with all applicable national
and international laws and regulations is the starting point of
adhering to the Supplier Code of Conduct. The following human
rights topics are addressed in the Supplier Code of Conduct:
minimum wage;  fair compensation and a living wage; work
contracts; freedom of association and collective bargaining; child
labor; special protection for young workers; forced labor; modern
slavery and trafficking in human beings; working hours and rest
periods; discrimination; harassment; occupational health and
safety; local communities and indigenous people; and
business ethics.
Suppliers are expected to have effective grievance mechanisms in
place for concerns raised by workers within their operations and
to ensure that those who report suspected or actual violations are
protected from retaliation. Additionally, value-chain employees
can report their concerns anonymously 24/7 using the Valmet’s
third-party-operated channel, TrustLine. The Executive Vice
President of Global Supply is responsible for the implementation
of the Supplier Code of Conduct. The process for mo nitoring the
implementation of the requirements includes Supplier
Sustainability Audits, Human Rights Impact Assessments and
following up the cases reported through TrustLine. The code is
applicable to Valmet’s suppliers and is available on the
company website.
Valmet Health, Safety, and Environment (HSE) Policy
Valmet Health, Safety, and Environment (HSE) Policy states
Valmet’s commitment to protecting the health, safety, and
environment of its people, partners, suppliers, and customers, as
well as the communities where it operates. The MDR-P
requirements for the policy are disclosed under S1-1.
Valmet Human Rights Policy Statement
Valmet’s Human Rights Policy Statement defines Valmet’s
commitment to respecting and promoting human rights in
compliance with the UN Guiding Principles on Business and
Human Rights and acknowledges that promoting human rights is
fundamental for carrying out its business responsibly.
The Policy Statement applies to all employees and entities within
Valmet, and to all the company’s stakeholder relationships.
Valmet works with and encourages its business partners to
uphold the principles in this policy statement within their
businesses. With the authority provided by the President and
Chief Executive Officer, the Vice President of Sustainability is the
most senior level accountable for the policy’s implementation.
The process for monitoring the implementation of the Valmet
Human Rights Policy Statement includes reporting and following
up on incidents and complaints filed through a third-party-
operated reporting channel (TrustLine), Valmet’s Human Rights
Impact Assessments, and Sustainable Supply Chain process.
To ensure compliance with its Human Rights Policy Statement,
Valmet has a Sustainability Due Diligence Framework, which is
based on the UN Guiding Principles on Business and Human
Rights and OECD Guidelines for Multinational Enterprises.
More information about Valmet’s due diligence framework is
disclosed under ESRS 2 GOV-4 and S2-4 in this report.
As stated in Valmet’s Human Rights Policy Statement, Valmet
respects and promotes the protection of human rights as
expressed in all internationally recognized human rights
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declarations and conventions such as the UN Universal
Declaration of Human Rights, the UN Covenant on Civil and
Political Rights, the UN Covenant on Economic, Social and
Cultural Rights and the International Labour Organization’s
(ILO) Declaration of Fundamental Principles and Rights at
Work. Valmet also operates in accordance with and promotes the
principles described in the United Nation’s (UN) Guiding
Principles on Business and Human Rights and the OECD
Guidelines for Multinational Enterprises.
In addition to the Valmet Human Rights Policy Statement,
Valmet’s commitment to respecting and promoting human rights
is fully integrated into the Group’s operating policies such as
Valmet’s Code of Conduct and Valmet’s Supplier Code of
Conduct. As a global enterprise and employer, Valmet operates
in full compliance with all applicable national and international
laws, regulations and generally accepted practices and its own
Code of Conduct, whichever sets higher standards.
Through its sustainability due diligence practices, Valmet
identified cases of non-respect of the UN Guiding Principles on
Business and Human Rights, the ILO Declaration on
Fundamental Principles and Rights at Work, or the OECD
Guidelines for Multinational Enterprises in its value chain in
2025. These cases were related to working hours, lack of freedom
of association and collective bargaining, health and safety,
employment terms of posted workers and inadequate wages.
Incidents of higher severity, which are related to recruitment fees
and rights of migrant workers in the lower tiers of the value
chain, have been identified. Valmet has addressed and taken
action to remedy these incidents with the relevant value chain
parties. 
Information about the measures to provide and enable remedy
for human rights impacts is disclosed under S1-3, S2-3, and S2-4
in this Sustainability Statement. Valmet’s approach to
engagement with value chain workers can be found under S2-2.
Process for engaging with value chain workers
about impacts
S2-2
Valmet engages and collaborates with its suppliers and supply-
chain workers and assesses the effectiveness of the engagement
with suppliers’ workers through its Sustainability Due Diligence
Framework. These activities encompass Valmet’s Sustainable
Supply Chain Process, Supplier Engagement Program, Human
Rights Impact Assessments, Sustainability Impact Assessment of
business changes, and local Health, Safety and Environment
activities on sites and reporting portals.
Valmet has implemented a Supplier Engagement Program based
on the principles of its Supplier Code of Conduct. The program
supports and monitors suppliers’ performance and provides
hands-on tools and training for suppliers to take the most critical
steps to develop their sustainability practices. This program also
serves as a means to engage value-chain workers on both actual
and potential material impacts.
The Supplier Engagement Program includes access to a capacity-
building library with tangible development tools, e-learning
courses, and practical handbooks, which aim to increase
awareness and give practical advice on how to develop more
sustainable business practices. As part of the program, supplier-
specific targets and key performance indicators are set, and
related actions are followed up for each participating supplier,
aiming for visible improvements in their operations.
Valmet encourages its suppliers and business partners to
contribute development ideas via an external reporting portal,
Spotlight. This portal is designed for Valmet’s customers, value-
chain workers, suppliers, contractors, and other stakeholders for
managing events related to health, safety, and the environment,
and continuous improvement in all Valmet operations. Spotlight
is used for reporting all incidents, non-conformities, near-misses,
observations, and improvement ideas in Valmet workplaces,
including on customer sites. Valmet continually refines and
enhances its processes based on the feedback received through
this portal.
Human Rights Impact Assessments are specifically designed to
engage directly with affected stakeholders, value chain workers
and local stakeholders alike, and the methodology is based on
dialogue. The impact assessment aims to engage with a wide
range of affected individuals, focusing on especially vulnerable
groups. Valmet aims to conduct at least one in-depth impact
assessment a year, and the number of the interviews conducted
per impact assessment depends on the scope and location. Value-
chain workers are also always engaged in individual interviews
during the Supplier Sustainability Audits. Around 10 value chain
worker interviews are conducted in each audit. More information
about Supplier Audits and Human Rights Impact Assessments is
disclosed under S2-4. Valmet also engages with value chain
workers when conducting Sustainability Impact Assessments of
business changes. More information about this assessment is
disclosed under S2-3.
Valmet’s value-chain workers in Valmet and customer premises
are continuously engaged in local Health, Safety and
Environment activities and events where feedback is actively
sought and collected, including Health, Safety and Environment
induction training before starting work, daily toolbox talks,
Injury Prevention Programs, and Health, Safety and
Environment days. In 2025, 29 (27) Subcontractor Health, Safety
and Environment days and events were held. In Valmet’s
premises, Health, Safety and Environment Committees interact
with location-based value-chain workers as part of their agenda
every day.
To support capacity building, Valmet offers employee e-learning
courses such as Valmet’s Code of Conduct, Human Rights, and
Sustainability at Valmet e-learning courses, which are also freely
available to value chain workers on the online PartnerAcademy
platform.
The Vice President of Procurement, Vice President of
Sustainability, and Vice President of Health, Safety, and
Environment and Supply Sustainability are the most senior roles
in the organization that have operational responsibility for
ensuring that the engagement with value chain workers happens.
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Process to remediate negative impacts and
channels for value chain workers to raise
concerns
S2-3
Valmet encourages its own workforce and all its stakeholders,
including value-chain workers, to raise concerns about possible
violations of Valmet’s Code of Conduct, unethical business
behavior, or other misconduct. Valmet also offers its TrustLine
channel for reporting suspected violations of Valmet’s Code of
Conduct. TrustLine is available for everyone 24/7 in Valmet’s
intranet and on its external website, and it is designed to
guarantee anonymity. It provides Valmet employees and other
stakeholders, including value-chain workers, with the possibility
to report concerns anonymously and in their native language.
The process of tracking and monitoring issues raised, and how
individuals who use the reporting channel are protected, is
described in more detail under G1-1.
As a part of Valmet’s human rights due diligence processes,
Valmet has a remediation process in place. Actions to provide or
contribute to remedies for material negative impacts on value-
chain workers depend on the nature of the case. In the event of a
serious human rights violation, an Incident Management Team is
established to coordinate the remediation actions and to ensure
their implementation. To assess the effectiveness of the remedy
provided, Valmet has a regular practice to follow up the status of
the corrective action plans and conduct follow-up visits as
required. For serious health and safety incidents, Valmet has a
Health and Safety incident investigation guideline, which
includes the approach for corrective actions.
Valmet’s Sustainability and Due Diligence Compliance
Committee oversees the implementation of due diligence
practices. In cases of non-compliance or incidents the committee
discusses and decides on mitigation actions, handles grievances,
and determines remedy plans. The topics addressed by the
committee include human rights, environmental compliance,
supplier sustainability, sustainability in projects, and health and
safety which often relate to value chain workers.
Valmet supports its business partners in continuous
improvement and does not terminate cooperation with a supplier
that undertakes to resolve the grievances identified in the
Supplier Audits or Human Rights Impact Assessments. The
implementation of corrective action plans and the follow-up of
the remediation process are integral components of both Supplier
Audits and Human Rights Impact Assessments. Suppliers are
excluded from contracting if they cannot achieve a remediation
plan within a set time frame, or if suppliers are unwilling to
comply with the corrective actions.
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Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to
value chain workers, and effectiveness of those actions
S2-4 MDR-A
Material sustainability
topic
Related material impact
in brief
Action
Expected outcome
Scope
Time horizon
Resources to manage
Progress on actions
Related target if applicable
Working conditions
and other work-related
rights
Collective bargaining,
freedom of association,
adequate wages and
working time
Exposure to health and
safety risks
Measures to improve
working conditions, and
health and safety
Risks to vulnerable value
chain workers
Human Rights Impact
Assessment in value chain
for suppliers with a
heightened risk
Identification and control of
risks
Upstream
value chain
2025,
continuous
Sustainability function,
Procurement function
See progress in S2-5
At least one Human Rights
Impact Assessment per year in
own operations and in the value
chain based on the risks
identified
Training employees and
suppliers in Valmet’s
Supplier Code of Conduct
Improved awareness of and
compliance with Valmet’s
social and environmental
standards in the supply
chain
Own
operations
and upstream
value chain
2025
Procurement function
Progressing as
planned
75% of suppliers by spend have
signed Valmet’s Supplier Code of
Conduct by the end of 2025
90% of suppliers by spend have
signed Valmet’s Supplier Code of
Conduct by the end of 2026
Sustainable Supply Chain
process, including Supplier
Sustainability Audits
Management of social and
environmental sustainability
risks and improvement of
working conditions in the
upstream value chain
Upstream
value chain
2025,
continuous
Procurement function
See progress in S2-5
Minimum of 40 Supplier
Sustainability Audits conducted
per year
Sustainability impact
assessment of business
changes
Identification and control of
risks
Own
operations
2025,
continuous
Sustainability function
Progressing as
planned
No target, impact assessment
always performed when there is
a business change
Implementation of a new
supplier screening tool using
sanctions and adverse
media data
Identification and control of
risks
Upstream
value chain
2025
Procurement function
Progressing as
planned
No target
Access to adequate
housing and sanitation
Expand the site supplier
audit protocol to cover
accommodation and 
sanitation
Management of impacts
related to adequate housing
and sanitation in the value
chain
Upstream and
downstream
value chain
2025–2026
Procurement function
Progressing as
planned
No target
Exposure to health and
safety risks
Measures to improve
working conditions and
health and safety
Site subcontracting and
service supplier Health,
Safety, and Environment
management process
Provision of safe and
healthy workplaces for all
Own
operations
and Valmet’s
operations in
customer
premises
2025,
continuous
Health, Safety,
Environment and Supply
Sustainability function
See progress in S2-5
Continuous reduction in injury
frequency to value chain workers
(contracted workforce) whose
work or workplace is controlled
by Valmet
The key actions listed in the table address the material impacts
related to working conditions and other work-related rights of
value chain workers.
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Valmet’s Sustainability Due Diligence Framework
Valmet has embedded sustainability due diligence into its
policies, management systems and key processes. Valmet’s
Sustainability Due Diligence Framework covers Valmet’s entire
value chain and includes actions and processes used to manage,
i.a., material impacts related to working conditions and other
work-related rights of value-chain workers.  The key actions
listed in the table above are part of Valmet’s Due Diligence
Framework, through which Valmet mitigates and prevents
negative material impacts on value chain workers and aims to
achieve positive impacts for value chain workers. More details
about Valmet’s Sustainability Due Diligence Framework can be
found under ESRS 2 GOV-4. Cases of  human rights issues and
incidents identified in 2025 have been reported under S2-1.
Sustainable Supply Chain Process
To identify, assess, and manage social and environmental
sustainability risks  in the supply chain, Valmet has a global
Supplier Sustainability Management Process which is integrated
into Valmet’s systems. The process is a two-tier approach,
combining a standard onboarding procedure with a risk-based
approach.
For new suppliers, Valmet applies an onboarding process that
consists of:
• Supplier Code of Conduct
• Supplier risk screening
• Sustainability Risk Assessment
• Supplier Sustainability Self-Assessment.
For suppliers identified as high-risk, Valmet applies a risk-based
Sustainability Due Diligence Process consisting of:
• Supplier Sustainability Audits conducted by an external
auditor
• Human Rights Impact Assessment for suppliers with a
heightened risk.
Suppliers’ commitment to Valmet’s Supplier Code of Conduct is
the starting point for entering into a business relationship with
Valmet. In addition, suppliers of manufactured goods must
follow Valmet’s minimum quality and health, safety and
environment requirements for suppliers.
Supplier risk screening
To mitigate risks early in the supplier engagement process, all
new suppliers undergo automated risk screening in Valmet’s
supplier management portal. This process identifies potential
risks by assessing sanctions lists and adverse media data before
starting the business relationship with Valmet.
Supplier Sustainability Risk Assessment and
Self-Assessment
Valmet screens all new direct suppliers from a sustainability risk
perspective, using environmental and social criteria based on the
country of purchase and the purchasing category. Based on this
assessment, Valmet’s suppliers have been categorized into
sustainability risk levels. Suppliers, depending on their risk
category, are assigned to complete a Sustainability Self-
Assessment. The Self-Assessment includes questions about
suppliers’ environmental and social responsibility, as well as their
operating practices.
Supplier Sustainability Audits
To ensure compliance with the requirements of the Supplier
Code of Conduct and with related local and international laws,
Valmet has a systematic auditing framework in place. Valmet’s
Sustainability Audits follow Valmet’s own auditing methodology
based on Valmet’s Supplier Code of Conduct and on the SA8000
and SMETA auditing frameworks, and the methodology covers
human and labor rights, environmental impacts, and governance-
related topics.
Valmet has identified increased sustainability risks on customers’
sites, where many subcontractors and their subcontractors
operate. A specific auditing process for site works suppliers has
therefore been developed to engage with the workers on sites,
monitor sub-contractors’ compliance more efficiently, and
further increase the visibility of the supply chain beyond Tier 1
suppliers.
In 2025, Valmet conducted 57 (45) Supplier Sustainability Audits
in 19 (15) countries with a third-party auditor. Suppliers’ workers
are always engaged during the Sustainability Audits. In 2025, the
findings of these audits were mainly related to human and labor
rights, health and safety, compliance and environmental
management.
Valmet focuses on ensuring the audit follow-up process and the
verification of agreed corrective actions. All the audited suppliers
have an agreed corrective action plan in place, and Valmet
supports suppliers with the implementation of identified
corrective actions. Altogether, 93 (94) percent of all corrective
actions agreed with suppliers as part of the auditing process since
2015 had been completed and verified by the end of 2025.
Human Rights Impact Assessments
Valmet conducts Human Rights Impact Assessments in its own
locations and in its value chain. Valmet is committed to
conducting at least one large assessment annually. Assessments
are carried out by an independent third party. The Impact
Assessment methodology is based on dialogue with affected
stakeholders and aims to engage with a wide range of affected
individuals, focusing on especially vulnerable groups. The
assessments include desktop research, extensive fieldwork and
engagement with affected stakeholders; employees, local
communities, leased workforce, and value chain workers such as
service providers and suppliers’ workers.
Since 2017, Valmet has conducted assessments globally in China,
Indonesia, Thailand, India, Poland, Portugal, Sweden, and Czech
Republic. Most of the findings were related to the position of
service providers and subcontractors, collective bargaining,
adequate wages, working hours and rest periods. As a part of the
process, corrective action plans are drafted based on the
assessment findings, and the progress of the remediation plans
are followed up. In 2025, large Human Rights Impact
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Assessments were conducted covering one customer project site,
and four sub-contractors.
Health and safety management in Valmet and
Customer premises
Valmet works to provide safe and healthy workplaces for all and
actively collaborates with suppliers and customers to secure safety
in common work premises. Valmet’s approach to health and
safety described in S1-4 includes processes for the management
of supplier workers in Valmet’s own operations and in customer
premises.
Valmet’s site subcontracting and service supplier Health, Safety
and Environment Management Process includes the
following steps:
• Health, Safety and Environment requirements are considered
when selecting suppliers and are then also included in
purchasing agreements
• Supplier workers are required to complete Health, Safety, and
Environment induction to both Valmet and the specific
workplace before starting work
• Risk assessment approval, safe work procedure review, and
permits-to-work are done before work execution
• Regular inspections and audits check supplier health, safety,
and environment compliance and secure improvement actions
if required
• Supplier workers are recognized and rewarded by Valmet for
good health, safety, and environment performance and receive
direct feedback in the event of unsafe behavior or conditions
• Supplier workers are encouraged to report health, safety, and
environment observations and improvement ideas, and
provide health, safety, and environment feedback to others in
the workplace
• Supplier-related health, safety, and environment near misses
and incidents are reported and investigated, and improvement
actions agreed
• Supplier workers are involved in Health, Safety, and
Environment activities such as toolbox talks
• Every year, Valmet holds multiple Key Supplier Health, Safety,
and Environment days at which health, safety, and
environment commitment and expectations are aligned,
management practices reviewed, and lessons and best practices
shared.
Sustainability Impact Assessment of business
changes
Valmet carries out a comprehensive Sustainability Impact
Assessment whenever there is a significant change in the market
presence, such as the construction of a new site or service center,
the relocation of an existing site, a new market entry, or a large
customer project with an identified high impact on the
environment, people, or local communities. The Sustainability
Impact Assessment of business changes considers geographical
and industry risks related to business ethics, human rights, and
the environment. During the assessment, local stakeholders, local
community representatives, employees, and workers in the value
chain are engaged. Assessment findings are followed up and
systematically mitigated, and the results are reviewed by the
management. In 2025, two Sustainability Impact Assessments of
business changes were conducted.
Management of material impacts
The Vice President of Procurement is responsible for managing
supply chain operations across Valmet’s business areas, including
the Sustainable Supply Chain Process. The Vice President of
Procurement reports to the Executive Vice President of Global
Supply.
The Vice President of Health, Safety, and Environment and
Supply Sustainability is responsible for managing Health, Safety,
and Environment operations across Valmet’s business areas,
including the Health, Safety and Environment Management
Process, and reports to the Executive Vice President of
Global Supply.
The Vice President of Sustainability is responsible for the Human
Rights Policy Statement implementation, Sustainability Agenda,
and Sustainability Due Diligence Framework, and reports to the
Executive Vice President of Strategy and Transformation.
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Metrics and targets
Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
S2-5 MDR-T
Material
sustainability topic
Related material
impact in brief
Target
Key performance
indicator
Base year
Baseline
Scope
Progress in 2025
Target monitoring
Related policy
Working conditions
and other work-
related rights
Collective bargaining,
freedom of
association, adequate
wages, and working
hours
Measures to improve
working conditions,
and health and safety
Risks to vulnerable
value chain workers
Access to adequate
housing and
sanitation
At least one Human Rights
Impact Assessment per year in
own operations and in the
upstream value chain based on
the risks identified
Number of
assessments
conducted
2017
1
Own operations and
upstream value chain
Large Human Rights Impact
Assessments were conducted
covering one customer project
site, and four sub-contractors
Annually in Sustainability
function
Supplier Code of
Conduct,
Human Rights Policy
Statement
Minimum 40 Supplier
Sustainability Audits conducted
per year
Number of Supplier
Sustainability Audits
conducted
2022
45
Upstream value chain
Valmet conducted 57 (45)
Supplier Sustainability Audits
with a third-party auditor
Quarterly in Procurement
Management Team
Supplier Code of
Conduct
75% of suppliers by spend have
signed Valmet’s renewed
Supplier Code of Conduct by
the end of 2025
% of suppliers by
spend have signed
Valmet’s Supplier
Code of Conduct
2025 1
0%
Upstream value chain
By the end of 2025, 77 % of
suppliers by spend had signed
Valmet’s Supplier Code of
Conduct
Quarterly in Procurement
Management Team
Supplier Code of
Conduct
90% of suppliers by spend
have signed Valmet’s Supplier
Code of Conduct by the end of
2026
% of suppliers by
spend have signed
Valmet’s Supplier
Code of Conduct
2025
77%
Upstream value chain
New target set in 2025. The
target progress will be reported
for the first time in 2026.
Quarterly in Procurement
Management Team
Supplier Code of
Conduct
40 sustainability due diligence 
measures (supplier audits,
impact assessments, value
chain worker engagement) for
high risk operations per year
Number of
sustainability due
diligence measures
2025
58
Value chain
New target set in 2025. The
target progress will be reported
for the first time in 2026.
Annually in sustainability
function
Supplier Code of
Conduct, Human Rights
Policy Statement
Exposure to health
and safety risks
Measures to improve
working conditions,
and health and safety
Reduction in number of
recordable work-related injuries
to non-employee workers and
contracted workforce whose
work or workplace is controlled
by Valmet
The number of
recordable work-
related injuries
2022
87
Own operations in
Valmet and Customer
premises
North America 1 (1)
Latin America 24 (13)
EMEA 36 (34)
China 4 (3)
Asia-Pacific 2 (0)
TOTAL 67 (51)
Monthly in business
management reporting
and review processes
Health, Safety and
Environment Policy
Reduction in injury frequency
to non-employee workers and
contracted workforce whose
work or workplace is controlled
by Valmet
Total recordable injury
frequency (TRIF)
2022
4.7
Own operations in
Valmet and Customer
premises
In 2025, TRIF decreased to 4.2
(4.8)
Monthly in business
management reporting
and review processes
Health, Safety and
Environment Policy
Minimum 25 supplier Health,
Safety, and Environment
events per year
Number of Supplier
Health, Safety and
Environment events
2024
27
Contracted workforce
in own operations in
Valmet and Customer
premises
In 2025, 29 (27) Supplier
Health, Safety, and
Environment days and events
were held
Monthly in Health, Safety,
Environment, and Supply
Sustainability
Management Team
Health, Safety and
Environment Policy,
Supplier Code of
Conduct
1 Due to the introduction of Valmet’s new Supplier Code of Conduct, replacing the prior Sustainable Supply Chain Policy, the target has been renewed, and the baseline was set to zero on January 1, 2025.
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Valmet has set the targets listed in the table to reduce negative
impacts and advance positive impacts on value chain workers.
The absolute and relative targets address the objectives of the
Human Rights Policy Statement, the Health, Safety and
Environment (HSE) Policy, and the Supplier Code of Conduct.
The targets were set as part of Valmet’s strategy and annual
planning process, which are conducted in all Valmet’s business
areas and functions. During the implementation of the targets,
Valmet engaged with value chain workers. However, they were
not involved in the target-setting or progress-monitoring phases.
Targets related to the Supplier Code of Conduct and supplier
audits were set by the Procurement function and are monitored
by the Procurement Leadership Team. The targets related to the
Supplier Code of Conduct, set in 2025, followed the renewal of
Valmet’s Supplier Code of Conduct. The new targets replace the
previous target disclosed in 2024, which was related to the
Sustainable Supply Chain Policy.
The target related to the Human Rights Impact Assessment is set
and monitored by the Sustainability function. The targets related
to health and safety are set and monitored by the Health, Safety,
and Environment and Supply Sustainability function.
In 2025, a new target related to the number of sustainability due
diligence measures per year in the value chain was set by the
sustainability team. Progress toward the target will be reported
for the first time for 2026.
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Governance information
G1: Business conduct
Governance
The role of the administrative, management and
supervisory bodies
ESRS 2 GOV-1
This information is reported under ESRS 2 GOV-1.
Impact, risks, and opportunity management
Description of the processes to identify and
assess material business conduct -related
impacts, risks and opportunities
ESRS2 IRO-1
This information is reported under ESRS 2 IRO-1.
Corporate culture and business conduct policies
G1-1 MDR-P
Valmet has adopted Valmet’s Code of Conduct, Anti-Corruption
Policy, Know Your Business Partner Policy, Trade Compliance
Guideline, Compliance Reporting Guideline, and Supplier Code
of Conduct to manage the following material impacts related to
business conduct matters:
• Actions to promote corporate culture (actual positive impact)
• Lack of ethical corporate culture (potential negative impact)
• Creating a safe environment for raising concerns (actual
positive impact)
• Retaliation against whistleblowers (potential negative impact)
• Adequate measures to prevent corruption and bribery (actual
positive impact)
• Inadequate measures to prevent corruption and bribery
(potential negative impact)
• Promoting employment and sustainable business practices
(actual positive impact)
• Non-compliance with payment practices (potential negative
impact).
All policies are regularly reviewed in accordance with the
company’s governance model. The monitoring of all policies is in
line with Valmet’s internal control principles and the principles
of Valmet’s corporate culture, defined in more detail under
ESRS 2 GOV-5.
Valmet’s Code of Conduct
Valmet’s Code of Conduct defines Valmet’s requirements and
expectations of corporate culture and includes business principles
regarding compliance with laws and regulations, fair competition,
anti-corruption compliance, reporting misconduct, and
protection of Valmet’s assets. The Code of Conduct also covers
topics related to people, society, and the environment, such as
human rights, equal opportunities, diversity and inclusion, a
respectful work environment, health, safety, and wellbeing,
environmental efficiency, climate and circularity, and a
sustainable supply chain. Valmet’s Code of Conduct is applicable
to all Valmet employees. The Code of Conduct is available in
Valmet’s intranet and on its website in 27 languages. The Chief
Executive Officer is the most senior level accountable for its
implementation.
Valmet Anti-Corruption Policy
Valmet’s Anti-Corruption Policy contains the requirements, rules
and procedures that ensure all Valmet employees and those
acting on Valmet’s behalf understand and comply with all
applicable anti-corruption laws in all Valmet’s business
operations and are not involved in any forms of bribery or
corruption. It is applicable to all Valmet employees and those
who act on Valmet’s behalf. The Chief Executive Officer is the
most senior level accountable for the policy’s implementation.
Valmet Know Your Business Partner Policy
Valmet’s Know Your Business Partner Policy defines the
requirements and procedures to ensure Valmet knows who it is
doing business with to mitigate risks and prevent violations of
applicable laws and regulations, such as sanctions. The policy is
only for Valmet’s internal use and is applicable to all Valmet
employees. The Chief Financial Officer is the most senior level
accountable for the policy’s implementation.
Valmet Compliance Reporting Guideline
Valmet’s Compliance Reporting Guideline describes the process
for raising concerns of potential misconduct within Valmet and
determines the investigation process. It also guarantees the
protection of whistleblowers and includes details on how they are
protected. It is applicable to all Valmet employees. The Executive
Vice President Legal, and General Counsel, Chief Financial
Officer, and Executive Vice President People, Communications
and Culture are the most senior level accountable for the
implementation of the guideline.
Valmet Trade Compliance Guideline
Valmet’s Trade Compliance Guideline defines the requirements
and procedures to ensure that Valmet complies with all
applicable international and national laws and regulations
governing the trade of goods, services, and technologies, such as
export control and customs regulations. The guideline is
approved by the Executive Leadership Team.
Valmet’s Supplier Code of Conduct
The Supplier Code of Conduct defines principles with which
suppliers are required to comply. The supplier must ensure that
all its employees, permanent and temporary, as well as its
suppliers and sub-suppliers, recognize and comply with the
requirements set out in the code and all applicable national laws
and regulations regarding human and labor rights. The MDR-P
requirements for the Supplier Code of Conduct are disclosed
under S2-1.
Corporate Culture and business conduct
Valmet’s daily operations are directed by its general operating
principles, which include Valmet’s Code of Conduct and related
policies. These principles form the basis of Valmet’s  ethical
corporate culture and sustainable business practices. Valmet
policies, business processes, procedures, guidelines, work
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instructions, and templates are stored and managed in the
Valmet Handbook, accessible to all Valmet employees.
Valmet’s Code of Conduct guides the actions and decisions of
both Valmet’s employees and its business partners. It is approved
by the Valmet Board of Directors. Valmet’s Code of Conduct
covers topics such as Valmet’s commitment to integrity,
compliance with applicable laws, protection of Group property
and personal data, rejection of corruption, respect for human
rights, health, safety, and wellbeing, quality, and environmental
topics. The Code of Conduct applies to everyone, everywhere,
every day. The Code of Conduct includes references to Valmet’s
most important policies and other guidance related to business
conduct, which must be followed by Valmet employees.
Valmet’s Ethics and Compliance Program ensures that every
employee understands their responsibility to maintain a strong
corporate culture and conduct business ethically and legally. The
program’s purpose is to establish and develop an ethical
corporate culture. This is achieved by creating and implementing
policies and processes that support this goal. To ensure the Ethics
and Compliance Program reaches all Valmet business areas,
Valmet has an Ethics and Compliance Network that includes
named members from each business area. This network ensures
that ethical business conduct requirements and updates to the
Ethics and Compliance Program are communicated and
promoted globally throughout Valmet.
Valmet has a Group level Enterprise Risk Management Process
which is overseen by the Corporate Risk Management function.
Additionally, in 2025, Valmet conducted a separate
Ethics and Compliance risk assessment that covers topics such as
ethics and compliance culture, anti-corruption and bribery,
speaking up, and Know Your Business Partner. In 2025, seven
(4) corporate internal audits were conducted at Valmet’s
locations, including an evaluation of the effectiveness of anti-
corruption and misconduct reporting processes.
Valmet provides Code of Conduct training and communications
to its employees on all available internal channels to inform them
of the Group’s expectations and requirements related to
corporate culture and business conduct. A renewed Code of
Conduct was published at the end of 2023, and in 2025, the focus
was on ensuring that all Valmet employees were familiar with the
Code of Conduct and requirements and were committed to
following them. Valmet’s Code of Conduct e-learning course
reached a completion rate of 97 (98) percent by year-end 2025.
100 (100) percent of the Executive Leadership Team and 75
percent of Valmet’s Board of Directors completed the e-learning
course (2025 was the first year for the Board of Directors to
complete the course). In some locations, the training has been
held as classroom training for blue-collar employees who lacked
access to laptops. The e-learning course includes sections on
ethical business practices, the content of the Code of Conduct,
and how to report potential concerns related to unethical
behavior or misconduct. It is mandatory for all Valmet
employees, and it must be completed by everyone every second
year. All e-learning completion percentages are extracted
automatically from Valmet’s Human Resources system.
In 2024, Valmet completed a Functions-at-Risk Assessment to
identify functions and business that were at a higher risk of being
involved in bribery and corruption. The result was that these
functions included business area management, Sales and
Procurement in certain countries, and the Logistics function. In
2025, Valmet continued to train employees in these functions
through the Valmet Anti-Corruption e-learning course.
Protection of whistleblowers
Valmet encourages employees and stakeholders to voice concerns
about potential violations of its Code of Conduct, unethical
business behavior, or other misconduct. Employees are advised to
report suspected issues to their managers, other management, the
People and Culture function, or directly to the Legal, Ethics and
Compliance, and Internal Audit functions. Additionally, Valmet
offers TrustLine, a third-party-operated reporting channel, for
confidential and, if desired, anonymous reporting of suspected
breaches. TrustLine is available 24/7 in Valmet’s intranet and on
its external website, allowing reports to be made online or via a
call center. Valmet welcomes reports from both internal and
external stakeholders.
Valmet does not tolerate retaliation against any person who
reports suspected misconduct in good faith or assists in
investigations. If a reporter feels that they are being subject to
retaliation, they are advised to contact the Head of Internal Audit
directly. All cases of retaliation are also reported to Valmet’s
Board Audit Committee.
To investigate potential misconduct, including allegations or
suspected incidents of corruption and bribery, Valmet follows its
Compliance Reporting Guideline. The process described in the
guideline ensures that all matters within the scope of the process
are investigated promptly, independently, and objectively. The
guideline states that the reporting system and the process of
handling the reports are managed by the Ethics and Compliance
and Internal Audit functions. The guideline requires
investigations to be led by an impartial person or function. Any
persons who are or may be involved in the alleged misconduct
will not be allowed to perform any investigative actions. The
guideline contains details on how the investigations are handled,
how potential consequences and follow-up are determined, and
how the conclusions of the investigations are communicated to
the whistleblower. In addition to the Compliance Reporting
Guideline, Valmet has an Investigation documentation template
with instructions on how case investigations are planned,
conducted, and documented. They are both available to all
employees in Valmet’s intranet. The entire process has been
amended in accordance with the requirements of Directive (EU)
2019/1937 and its applicable national implementations.
In 2025, Valmet renewed its operating model, based on which
Valmet’s Compliance Committee structure, which oversees
misconduct investigations, was re-evaluated and updated. Prior
to the 2025 operating model renewal, Valmet had five Area
Compliance Committees reflecting the previous area
organization approach, as well as a global Corporate Compliance
Committee. Following the re-evaluation of the Compliance
Committee structure, Valmet established eight business area
Compliance Committees and a Sustainability and Due Diligence
Compliance Committee. The already existing global Corporate
Compliance Committee continued in its previous form.
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As a result, the total number of compliance committees following
the 2025 update is ten (6) altogether.
Valmet’s compliance committees ensure that follow-up actions
and remedies are effective based on the facts of each case.
Business area Compliance Committees have the authority to
decide on and implement follow-up actions for their business
area’s investigated cases. The Sustainability and Due Diligence
Compliance Committee decides on mitigation actions in cases of
non-compliances and incidents regarding topics such as health
and safety, environmental compliance, and human rights. The
global Corporate Compliance Committee ensures that business
areas have appropriately investigated, handled, and concluded
reported cases, and that their follow-up actions align with
corporate standards. Matters that cannot be handled within the
business areas due to the nature of the case or potential conflicts
are escalated to be handled by the global Corporate Compliance
Committee. It has been agreed which cases are also reported to
the Chief Executive Officer and/or Board Audit Committee. In
2025, 3 (4) cases were reported to the Board Audit Committee.
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Taking action on material impacts on business conduct, and effectiveness of those actions
G1 MDR-A
Material sustainability topic
Related material
impact in brief
Action
Expected outcome
Scope
Time horizon
Resources to manage
Progress on actions
Related target if
applicable
Corporate culture
Actions to promote
corporate culture
Employee Code of
Conduct e-learning
course
Valmet’s own workforce
is committed to an
ethical and legal
corporate culture
Own operations
Continuous
Ethics and Compliance,
People and Culture,
Valmet line managers
Code of Conduct e-
learning course is
available in Valmet’s
intranet for all
employees, and 97 (98)
% have completed it by
the end of 2025
100% of employees
have completed
Valmet’s renewed Code
of Conduct e-learning
course
Ethics and Compliance
Network
Increasing ethics and
compliance awareness
across the Group
Own operations
Continuous
Ethics and Compliance
Three Ethics and
Compliance Network
meetings held during
2025
Not applicable
Corruption and bribery
Adequate measures to
prevent corruption
and bribery
Assessment of
functions at risk of
being involved in bribery
and corruption
completed in 2024.
Continuous training for
identified risk groups
Ability to target
trainings to relevant
functions
Own operations
Continuous
Ethics and Compliance
Progressing as planned
Not applicable
Ethics and Compliance
risk assessment,
including evaluation of
corruption and bribery
risks
Appropriate control
measures in place to
prevent corruption and
bribery
Own operations
Continuous
Ethics and Compliance
Completed
Not applicable
The actions listed in the table address the material impacts related
to Corporate culture and Corruption and bribery. The actions
address the objectives of Valmet’s Code of Conduct.
Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
G1-MDR-T
Material sustainability topic
Related material
impact in brief
Target
Key performance
indicator
Base year
Baseline
Scope
Progress in 2025
Related policy
Corporate culture
Actions to promote
corporate culture
100% of employees
have completed
Valmet’s renewed Code
of Conduct e-learning
course by 2026
% of employees having
completed the Code of
Conduct e-learning
course
2023
(previous version of
Code of Conduct
e-learning)
89%
Own operations
The completion rate for
the Code of Conduct e-
learning was 97 (98)%.
Valmet’s Code of
Conduct
Valmet has set the targets listed in the table to reduce negative
impacts and advance positive impacts on Corporate culture. The
absolute targets address the objectives of Valmet’s Code of
Conduct. Targets are part of Valmet’s Legal function’s 2025
objectives, and are executed jointly by the Ethics and Compliance
and People and Culture functions, and Valmet’s line managers.
Targets were set by Valmet’s global Corporate Compliance
Committee, which also monitors their progress.
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Management of relationships with suppliers
G1-2
Valmet’s Global Supply function manages Valmet’s supply chain
activities, comprising direct procurement for the Biomaterial
Solutions and Services segment and all indirect procurement and
logistics globally. Process Performance Solutions segment’s direct
procurement activities are not included due to strong integration
and limited synergies.
The Supplier Relationship Management Program is Valmet’s
systematic way of managing and developing Valmet’s supplier
relationships to optimize company value through proactive
interaction, two-way performance monitoring, and risk
minimizing. Valmet’s aim is to develop mutually beneficial
relationships with suppliers.
Valmet develops and manages supplier relationships to ensure
that its supply meets demand expectations. Valmet’s Global
Supply aims to prevent risks related to the supplier base as much
as possible. Risks are mitigated by systematic supplier
relationship management and clear communication. Such risks
can include the business continuity and financials of suppliers
and their capacity, logistics, late deliveries and poor quality,
reputational risks due to non-compliance with sustainability,
legal and IPR risks, and profitability risks due to cost inflation. In
addition, risks are managed by avoiding monopolistic suppliers,
and the early involvement of the supply chain and suppliers, by
making sound contracts with suppliers, using suitable and
reliable suppliers, order and quality follow-up, and through
audits and training.
Valmet’s global payment policies define uniform guidelines for its
supplier payment strategy and methods applicable in all Valmet
units. Valmet aims for payment no later than the due date.
Valmet’s payment practices are described in section G1-6.
Valmet screens all new direct suppliers from a sustainability risk
perspective, using environmental and social criteria. The
screening criteria are based on Valmet’s requirements in the
Supplier Code of Conduct, covering business ethics, compliance,
human and labor rights, health, safety, climate, and
environmental management, and product compliance and
safety topics. Valmet has integrated both environmental and
social criteria in its policies and related processes to ensure the
environment and human rights are respected and promoted
throughout the value chain.
The applicable policies, processes, and actions are further
outlined in sections S2-1 and S2-4.
Prevention and detection of corruption
and bribery
G1-3
Valmet has zero tolerance of all forms of bribery and corruption.
Valmet is committed to conducting all activities in accordance
with applicable anti-bribery and corruption laws and preventing
corruption and bribery. Valmet’s anti-corruption approach is set
out in the Code of Conduct and related Anti-Corruption Policy,
which clearly prohibits bribery and corruption. Valmet’s Anti-
Corruption Policy contains the rules and procedures that ensure
all Valmet employees and those acting on its behalf understand
and comply with applicable anti-corruption laws in all Valmet’s
business operations.
In addition to the Anti-Corruption Policy, Valmet has a
supplementary Anti-Corruption Guideline for internal use. The
Guideline contains more detailed requirements and instructions
for Valmet employees to ensure that they are not involved in any
form of corruption or bribery. The Guideline was updated in
2025 to include more guidance related to anti-money laundering
and counter-terrorism financing. Valmet’s Anti-Corruption
Policy also contains the requirement to report any detected
potential incidents of corruption or bribery. Valmet’s Anti-
Corruption Policy is available publicly on Valmet’s external
website and in Valmet’s intranet, and the Anti-Corruption
Guideline is available in Valmet’s intranet.
If a Valmet employee detects an allegation or incident of
corruption or bribery, they are required to report it to one of
Valmet’s misconduct reporting channels. The process for raising
concerns of unethical behavior and misconduct (including
incidents of corruption or bribery) is described in more detail in
G1-1. In addition, identifying possible incidents of corruption or
bribery is part of corporate internal audits.
All cases of confirmed corruption or bribery are reported to the
President and Chief Executive Officer, Chief Financial Officer,
and the Board’s Audit Committee.
In addition to the Anti-Corruption Policy and Guideline being
available to Valmet employees, all Valmet employees need to
complete a mandatory training session on the Code of Conduct,
which includes a section on corruption and bribery. The e-
learning course was updated in 2024, and it is mandatory training
for all Valmet employees. For all new employees, the e-learning
course is issued as part of their onboarding to Valmet. The e-
learning course reached a completion rate of 97 (98) percent by
year-end 2025. 100 (100) percent of the Executive Leadership
Team and 75 percent of Valmet’s Board of Directors completed
the e-learning course (2025 was the first year for the Board of
Directors to complete the course).
Valmet also has a more detailed Anti-Corruption e-learning
course, which was updated in 2024. It goes through Valmet’s
rules and requirements related to corruption and bribery in more
detail and includes several example cases for employees to apply
the rules in practice. It was issued in November 2024 to functions
at risk of corruption and bribery. The completion percentage for
functions-at-risk by year-end 2025 was 90 (72) percent. It is
clearly stated in the policy and training what the implications for
being involved in corruption or bribery are.
All e-learning completion percentages are extracted from
Valmet’s Human Resources system.
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|  SUSTAINABILITY STATEMENT
Metrics and targets
Confirmed incidents of corruption and bribery
G1-4
Confirmed violations of anti-corruption and anti-bribery laws
2025
2024
Number of convictions
0
0
Amount of fines (EUR)
0
0
No actions were required to address breaches of anti-corruption
and anti-bribery procedures and standard s in 2025. Recent
i mprovements made to the Anti-Corruption Compliance
Program are detailed in section G1-3.
The number of convictions and amount of fines are extracted
from Valmet’s internal disputes register database.
Payment practices
G1-6
Valmet pays its suppliers on average 52 (53) days after the date
when the contractual payment term starts to be calculated.
Valmet has updated its General Payment Conditions in 2025, and
the standard payment terms are 90 (60) days for all suppliers and
geographies. Depending on the circumstances, the payment
terms may vary, and shortened payment terms can be
acknowledged, including for example  smaller suppliers. On
average 99 (98) percent of invoices received by Valmet are
aligned with payment terms of 90 (60) days or less.
The above disclosures are based on data covering approximately
79 (75) percent of Valmet’s direct and indirect purchases.
Valmet is not party to any legal proceedings due to late payments.
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List of datapoints in cross-cutting and topical standards that derive from other EU legislation
Disclosure Requirement and
related datapoint
SFDR reference
Pillar 3 reference
Benchmark Regulation
reference
EU Climate Law
reference
Materiality based on
Double Materiality
Assessment
Location in
Sustainability Statement
(page number)
ESRS 2 GOV-1
Board’s gender diversity, paragraph 21 (d)
Indicator number 13 of Table #1 of
Annex 1
Commission Delegated
Regulation
(EU) 2020/1816 (5, Annex II
Material
ESRS 2 GOV-1
Percentage of board members who are
independent, paragraph 21 (e)
Delegated Regulation (EU)
2020/1816, Annex II
Material
ESRS 2 GOV-4
Statement on due diligence, paragraph 30
Indicator number 10 Table #3 of
Annex 1
Material
ESRS 2 SBM-1
Involvement in activities related to fossil
fuel activities, paragraph 40 (d)
Indicators number 4 Table #1 of
Annex 1
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 (28) Table 1: Qualitative information
on Environmental risk and Table 2: Qualitative
information on Social risk
Delegated Regulation (EU)
2020/1816, Annex II
Not material
-
ESRS 2 SBM-1
Involvement in activities related to chemical
production, paragraph 40 (d) ii
Indicator number 9 Table #2 of
Annex 1
Delegated Regulation (EU)
2020/1816, Annex II
Not material
-
ESRS 2 SBM-1
Involvement in activities related to
controversial weapons, paragraph 40 (d) iii
Indicator number 14 Table #1 of
Annex 1
Delegated Regulation (EU)
2020/1818, Article 12(1)
Delegated Regulation (EU)
2020/1816, Annex II
Not material
-
ESRS 2 SBM-1
Involvement in activities related to
cultivation and production of tobacco,
paragraph 40 (d) iv
Delegated Regulation (EU)
2020/1818, Article 12(1)
Delegated Regulation (EU)
2020/1816, Annex II
Not material
-
ESRS E1-1
Transition plan to reach climate neutrality
by 2050, paragraph 14
Regulation (EU)
2021/1119,
Article 2(1)
Material
ESRS E1-1
Undertakings excluded from Paris-aligned
Benchmarks, paragraph 16 (g)
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 Template 1: Banking book-Climate
Change transition risk: Credit quality of exposures
by sector, emissions and residual maturity
Delegated Regulation (EU)
2020/1818, Article12.1 (d) to
(g), and Article 12.2
Material
ESRS E1-4
GHG emission reduction target,
paragraph 34
Indicator number 4 Table #2 of
Annex 1
Article 449a Regulation (EU) No  575/2013;
Commission Implementing Regulation (EU)
2022/2453 Template 3: Banking book – Climate
change transition risk: alignment metrics
Delegated Regulation (EU)
2020/1818, Article 6
Material
ESRS E1-5
Energy consumption from fossil sources
disaggregated by sources (only high climate
impact sectors), paragraph 38
Indicator number 5  Table #1 and
Indicator n. 5 Table #2 of Annex 1
Material
ESRS E1-5
Energy consumption and mix, paragraph 37
Indicator number 5 Table #1 of
Annex 1
Material
ESRS E1-5
Energy intensity associated with activities
in high climate impact sectors, paragraphs
40 to 43
Indicator number 6 Table #1 of
Annex 1
Material
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Disclosure Requirement and
related datapoint
SFDR reference
Pillar 3 reference
Benchmark Regulation
reference
EU Climate Law
reference
Materiality based on
Double Materiality
Assessment
Location in
Sustainability Statement
(page number)
ESRS E1-6
Gross Scope 1, 2, 3 and Total GHG
emissions, paragraph 44
Indicators number 1 and 2 Table #1
of Annex 1
Article 449a; Regulation (EU) No  575/2013;
Commission Implementing Regulation (EU)
2022/2453 Template 1: Banking book – Climate
change transition risk: Credit quality of exposures
by sector, emissions and residual maturity
Delegated Regulation (EU)
2020/1818, Article 5(1), 6
and 8(1)
Material
ESRS E1-6
Gross GHG emissions intensity, paragraphs
53 to 55
Indicators number 3 Table #1 of
Annex 1
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 Template 3: Banking book – Climate
change transition risk: alignment metrics
Delegated Regulation (EU)
2020/1818, Article 8(1)
Material
ESRS E1-7
GHG removals and carbon credits,
paragraph 56
Regulation
(EU)2021/1119,
Article 2(1)
Not material
-
ESRS E1-9
Exposure of the benchmark portfolio to
climate-related physical risks, paragraph 66
Delegated Regulation (EU)
2020/1818, Annex II
Delegated Regulation (EU)
2020/1816, Annex II
Material
Phased in
-
ESRS E1-9
Disaggregation of monetary amounts by
acute and chronic physical risk, paragraph
66(a)
ESRS E1-9
Location of significant assets at material
physical risk paragraph 66(c)
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453, paragraphs 46 and 47; Template 5:
Banking book – Climate change physical risk:
Exposures subject to physical risk
Material
Phased in
-
ESRS E1-9
Breakdown of the carrying value of its real
estate assets by energy-efficiency classes,
paragraph 67 (c)
Article 449a Regulation(EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 paragraph 34; Template 2: Banking
book – Climate change transition risk: Loans
collateralised by immovable property – Energy
efficiency of the collateral
Material
Phased in
-
ESRS E1-9
Degree of exposure of the portfolio to
climate-related opportunities, paragraph 69
Delegated Regulation (EU)
2020/1818, Annex II
Material
Phased in
-
ESRS E2-4
Amount of each pollutant listed in Annex II
of the E-PRTR Regulation (European
Pollutant Release and Transfer Register)
emitted to air, water and soil, paragraph 28
Indicator number 8 Table #1 of
Annex 1; Indicator number 2 Table
#2 of Annex 1; Indicator number 1
Table #2 of Annex 1; Indicator
number 3 Table #2  of Annex 1
Not material
-
ESRS E3-1
Water and marine resources, paragraph 9
Indicator number 7 Table #2 of
Annex 1
Material
ESRS E3-1
Dedicated policy, paragraph 13
Indicator number 8 Table 2 of
Annex 1
Not material
-
ESRS E3-1
Sustainable oceans and seas, paragraph 14
Indicator number 12 Table #2 of
Annex 1
Not material
-
ESRS E3-4 Total water recycled and
reused, paragraph 28 (c)
Indicator number 6.2 Table #2 of
Annex 1
Not material
-
ESRS E3-4 Total water, consumption in m3
per net revenue on own operations
paragraph 29
Indicator number 6.1 Table #2 of
Annex 1
Not material
-
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|  SUSTAINABILITY STATEMENT
Disclosure Requirement and
related datapoint
SFDR reference
Pillar 3 reference
Benchmark Regulation
reference
EU Climate Law
reference
Materiality based on
Double Materiality
Assessment
Location in
Sustainability Statement
(page number)
ESRS 2 SMB3-E4
paragraph 16 (a) i
Indicator number 7 Table #1 of
Annex 1
Material
ESRS 2 SBM3-E4
paragraph 16 (b)
Indicator number 10 Table #2 of
Annex 1
Material
ESRS 2 SBM3-E4
paragraph 16 (c)
Indicator number 14 Table #2 of
Annex 1
Material
ESRS E4-2
Sustainable land / agriculture practices or
policies, paragraph 24 (b)
Indicator number 11 Table #2 of
Annex 1
Material
ESRS E4-2
Sustainable oceans / seas practices or
policies, paragraph 24 (c)
Indicator number 12 Table #2 of
Annex 1
Material
ESRS E4-2
Policies to address deforestation,
paragraph 24 (d)
Indicator number 15 Table #2 of
Annex 1
Material
ESRS E5-5
Non-recycled waste, paragraph 37 (d)
Indicator number 13 Table #2 of
Annex 1
Not material
-
ESRS E5-5
Hazardous waste and radioactive waste,
paragraph 39
Indicator number 9 Table #1 of
Annex 1
Not material
-
ESRS 2 SBM3 – S1
Risk of incidents of forced labour,
paragraph 14 (f)
Indicator number 13 Table #3 of
Annex 1
Material
ESRS 2 SBM3 – S1
Risk of incidents of child labour, paragraph
14 (g)
Indicator number 12 Table #3 of
Annex 1
Material
ESRS S1-1
Human rights policy commitments,
paragraph 20
Indicator number 9 Table #3 and
Indicator number 11 Table #1 of
Annex 1
Material
ESRS S1-1
Due diligence policies on issues addressed
by the fundamental International Labour
Organisation Conventions 1 to 8,
paragraph 21
Delegated Regulation (EU)
2020/1816, Annex II
Material
ESRS S1-1
processes and measures for preventing
trafficking in human beings, paragraph 22
Indicator number 11 Table #3 of
Annex 1
Material
ESRS S1-1
workplace accident prevention policy or
management system, paragraph 23
Indicator number 1 Table #3 of
Annex 1
Material
ESRS S1-3
grievance/complaints handling
mechanisms, paragraph 32 (c)
Indicator number 5 Table #3 of
Annex 1
Material
ESRS S1-14
Number of fatalities and number and rate
of work-related accidents, paragraph 88 (b)
and (c)
Indicator number 2 Table #3 of
Annex 1
Delegated Regulation (EU)
2020/1816, Annex II
Material
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|  SUSTAINABILITY STATEMENT
Disclosure Requirement and
related datapoint
SFDR reference
Pillar 3 reference
Benchmark Regulation
reference
EU Climate Law
reference
Materiality based on
Double Materiality
Assessment
Location in
Sustainability Statement
(page number)
ESRS S1-14
Number of days lost to injuries, accidents,
fatalities or illness, paragraph 88 (e)
Indicator number 3 Table #3 of
Annex 1
Material
ESRS S1-16
Unadjusted gender pay gap paragraph
97 (a)
Indicator number 12 Table #1 of
Annex 1
Delegated Regulation (EU)
2020/1816, Annex II
Material
ESRS S1-16
Excessive CEO pay ratio, paragraph 97 (b)
Indicator number 8 Table #3 of
Annex 1
Material
ESRS S1-17
Incidents of  discrimination paragraph
103 (a)
Indicator number 7 Table #3 of
Annex 1
Material
ESRS S1-17
Non-respect of UNGPs on Business and
Human Rights and OECD Guidelines,
paragraph 104 (a)
Indicator number 10 Table #1 and
Indicator n. 14 Table #3 of Annex 1
Delegated Regulation (EU)
2020/1816, Annex II
Delegated Regulation (EU)
2020/1818 Art 12 (1)
Material
ESRS 2 SBM3 – S2
Significant risk of child labour or forced
labour in the value chain, paragraph 11 (b)
Indicators number 12 and n. 13
Table #3 of Annex 1
Material
ESRS S2-1
Human rights policy commitments,
paragraph 17
Indicator number 9 Table #3 and
Indicator n. 11 Table #1 of Annex 1
Material
ESRS S2-1
Policies related to value chain workers,
paragraph 18
Indicator number 11 and n. 4
Table #3 of Annex 1
Material
ESRS S2-1
Non-respect of UNGPs on Business and
Human Rights principles and OECD
guideline, paragraph 19
Indicator number 10 Table #1 of
Annex 1
Delegated Regulation (EU)
2020/1816, Annex II
Delegated Regulation (EU)
2020/1818, Art 12 (1)
Material
ESRS S2-1
Due diligence policies on issues addressed
by the fundamental International Labour
Organisation Conventions 1 to 8,
paragraph 19
Delegated Regulation
(EU)2020/1816, Annex II
Material
ESRS S2-4
Human rights issues and incidents
connected to its upstream and
downstream value chain, paragraph 36
Indicator number 14 Table #3 of
Annex 1
Material
ESRS S3-1
Human rights policy commitments,
paragraph 16
Indicator number 9 Table #3 of
Annex 1 and Indicator number 11
Table #1 of Annex 1
Not material
-
ESRS S3-1
Non-respect of UNGPs on Business and
Human Rights, ILO principles or OECD
guidelines, paragraph 17
Indicator number 10 Table #1
Annex 1
Delegated Regulation (EU)
2020/1816, Annex II
Delegated Regulation (EU)
2020/1818, Art 12 (1)
Not material
-
ESRS S3-4
Human rights issues and incidents,
paragraph 36
Indicator number 14  Table #3 of
Annex 1
Not material
-
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|  SUSTAINABILITY STATEMENT
Disclosure Requirement and
related datapoint
SFDR reference
Pillar 3 reference
Benchmark Regulation
reference
EU Climate Law
reference
Materiality based on
Double Materiality
Assessment
Location in
Sustainability Statement
(page number)
ESRS S4-1
Policies related to consumers and end-
users, paragraph 16
Indicator number 9 Table #3 and
Indicator number 11 Table #1 of
Annex 1
Not material
-
ESRS S4-1
Non-respect of UNGPs on Business and
Human Rights and OECD guidelines
paragraph 17
Indicator number 10 Table #1 of
Annex 1
Delegated Regulation (EU)
2020/1816, Annex II
Delegated Regulation (EU)
2020/1818, Art 12 (1)
Not material
-
ESRS S4-4
Human rights issues and incidents,
paragraph 35
Indicator number 14 Table #3 of
Annex 1
Not material
-
ESRS G1-1
United Nations Convention against
Corruption, paragraph 10 (b)
Indicator number 15 Table #3 of
Annex 1
Not material
-
ESRS G1-1
Protection of whistle- blowers, paragraph
10 (d)
Indicator number 6 Table #3 of
Annex 1
Material
ESRS G1-4
Fines for violation of anti-corruption and
anti-bribery laws, paragraph 24 (a)
Indicator number 17 Table #3 of
Annex 1
Delegated Regulation (EU)
2020/1816, Annex II
Material
ESRS G1-4
Standards of anti-corruption and anti-
bribery, paragraph 24 (b)
Indicator number 16 Table #3 of
Annex 1
Material
VALMET  |  FINANCIAL STATEMENTS AND REPORT OF THE BOARD OF DIRECTORS 2025  |
101
|  FINANCIAL INDICATORS
Financial indicators
As at and for the twelve months ended December 31
EUR million
2025
2024
2023
2022
2021
Orders received
5,216
5,837
4,955
5,194
4,740
Order backlog at end of year
4,306
4,452
3,973
4,403
4,096
Net sales
5,197
5,359
5,532
5,074
3,935
Net sales change, %
-3%
-3%
9%
29%
5%
Comparable EBITA
620
609
619
533
429
% of net sales
11.9%
11.4%
11.2%
10.5%
10.9%
EBITA
534
557
605
550
448
% of net sales
10.3%
10.4%
10.9%
10.8%
11.4%
Operating profit
438
449
507
436
399
% of net sales
8.4%
8.4%
9.2%
8.6%
10.1%
Profit before taxes
376
383
473
431
395
% of net sales
7.2%
7.2%
8.5%
8.5%
10.0%
Profit for the period
279
281
359
338
296
% of net sales
5.4%
5.2%
6.5%
6.7%
7.5%
Profit attributable to owners of the parent
280
280
357
337
296
Amortization
-96
-108
-98
-114
-49
Depreciation, property, plant and
equipment (excl. right-of-use assets)
-64
-63
-58
-55
-47
Depreciation, right-of-use assets
-49
-48
-41
-34
-24
Depreciation and amortization, total
-209
-219
-196
-203
-120
% of net sales
-4.0%
-4.1%
-3.6%
-4.0%
-3.0%
As at and for the twelve months ended December 31
EUR million
2025
2024
2023
2022
2021
Cash flow provided by operating activities
581
554
352
36
482
Cash flow after investing activities
483
316
-181
56
382
Gross capital expenditure (excl. business
combinations and right-of-use assets)
-103
-107
-125
-112
-97
Business combinations, net of cash
acquired and loans repaid
1
-135
-415
117
-15
Cash conversion ratio, %
109%
100%
58%
7%
108%
Comparable cash conversion ratio, %
94%
91%
57%
7%
112%
Comparable return on capital employed
(ROCE) before taxes, %
13.0%
12.7%
14.5%
17.0%
22.6%
Return on capital employed (ROCE) before
taxes, %
10.9%
11.4%
14.2%
17.6%
23.7%
Total assets
6,634
6,832
7,064
6,271
4,420
Equity attributable to owners of the parent
2,584
2,607
2,565
2,494
1,326
Total equity
2,590
2,614
2,572
2,499
1,332
Interest-bearing liabilities
1,461
1,544
1,484
809
477
Net interest-bearing liabilities
904
1,032
1,027
502
-88
Net working capital (NWC)
29
134
191
-82
-673
Return on equity (ROE), %
10.7%
10.8%
14.1%
17.6%
23.9%
Net debt to EBITDA ratio
1.40
1.55
1.46
0.78
-0.17
Gearing, %
35%
39%
40%
20%
-7%
Equity to assets ratio, %
45%
44%
43%
49%
42%
Average number of personnel
18,982
19,297
18,130
16,554
14,163
Personnel at end of year
18,487
19,310
19,160
17,548
14,246
VALMET  |  FINANCIAL STATEMENTS AND REPORT OF THE BOARD OF DIRECTORS 2025  |
102
|  FORMULAS FOR CALCULATION OF  INDICATORS
Formulas for calculation of indicators
In addition to financial performance indicators as defined by IFRS Accounting Standards, Valmet publishes certain other widely used measures of performance that can be derived from figures in the
Consolidated statement of income and financial position, as well as notes thereto. The formulas for calculation of these alternative performance measures are presented below.
EBITA:
Return on capital employed (ROCE) before taxes, %:
Dividend payout ratio, %:
X 100
Operating profit + amortization
Profit before taxes + interest and other financial expenses
X 100
Dividend per share
Total equity + interest-bearing liabilities (average for period)
Earnings per share
Comparable EBITA:
Comparable return on capital employed (ROCE) before
taxes, %:
Effective dividend yield, %:
X 100
Operating profit + amortization +/- items affecting
comparability
Profit before taxes + interest and other financial expenses
+/- items affecting comparability
X 100
Dividend per share
Total equity + interest-bearing liabilities (average for the
period)
Closing share price at end of period
Earnings per share:
Equity to assets ratio, %:
Price / earnings ratio:
Profit attributable to shareholders of the Company
Total equity
X 100
Closing share price at end of period
Average number of outstanding shares during period
Balance sheet total - amounts due to customers under
revenue contracts
Earnings per share
Diluted earnings per share:
Gearing, %:
Cash conversion ratio, %
Profit attributable to shareholders of the Company
Net interest-bearing liabilities
X 100
Cash flows from operating activities
X 100
Average number of diluted shares during period
Total equity
EBITA
Adjusted earnings per share:
Net interest-bearing liabilities:
Comparable cash conversion ratio, %
Profit attributable to shareholders of the Company -
expensing of fair value adjustments recognized in business
combinations, net of tax
Non-current debt + non-current lease liabilities + current
debt + current lease liabilities - cash and cash equivalents -
other interest-bearing assets
Cash flows from operating activities
X 100
Average number of outstanding shares during period
Comparable EBITA
Equity per share:
Net debt to EBITDA ratio:
Equity attributable to owners of the parent
Net interest-bearing liabilities
Number of outstanding shares at end of period
Operating profit + amortization + depreciation
Return on equity (ROE), %:
Dividend per share:
Profit for the period
X 100
Dividend for the financial period
Total equity (average for period)
Number of shares at end of period
VALMET  |  FINANCIAL STATEMENTS AND REPORT OF THE BOARD OF DIRECTORS 2025  |
103
|  CONSOLIDATED FINANCIAL STATEMENTS
Consolidated statement of income
EUR million
Note
2025
2024
Net sales
2, 3
5,197
5,359
Cost of goods sold
4, 5, 7, 14
-3,750
-3,878
Gross profit
1,447
1,481
Selling, general and administrative expenses
4, 5, 14, 19
-986
-1,000
Other operating income
20
25
25
Other operating expenses
20
-53
-59
Share in profits and losses of associated companies
23
5
2
Operating profit
438
449
Financial income
10
18
24
Financial expenses
10
-80
-90
Profit before taxes
376
383
Current tax expense
-138
-119
Deferred taxes
42
17
Income taxes, total
17
-96
-103
Profit for the period
279
281
Attributable to:
Owners of the parent
280
280
Non-controlling interests
—
1
Profit for the period
279
281
Earnings per share attributable to owners of the parent:
Earnings per share, EUR
1.52
1.52
Diluted earnings per share, EUR
1.52
1.52
Consolidated statement of
comprehensive income
EUR million
Note
2025
2024
Profit for the period
279
281
Items that may be reclassified to profit or loss:
Gains and losses on cash flow hedges
8, 9, 18
15
-8
Change in fair value reserve
8
—
1
Currency translation on subsidiary net investments
18
-73
2
Share of other comprehensive income of associated companies
accounted for using equity method
23
-1
—
Income tax relating to items that may be reclassified
17
-3
1
Total items that may be reclassified to profit or loss
-61
-3
Items that will not be reclassified to profit or loss:
Remeasurement of defined benefit plans
16
8
13
Income tax relating to items that will not be reclassified
17
-1
-3
Total items that will not be reclassified to profit or loss
6
10
Other comprehensive income for the period
-55
6
Total comprehensive income for the period
225
287
Attributable to:
Owners of the parent
225
286
Non-controlling interests
—
1
Total comprehensive income for the period
225
287
VALMET  |  FINANCIAL STATEMENTS AND REPORT OF THE BOARD OF DIRECTORS 2025  |
104
|  CONSOLIDATED FINANCIAL STATEMENTS
Consolidated statement of financial position
Assets
As at December 31,
EUR million
Note
2025
2024
Non-current assets
Intangible assets
Goodwill
1,800
1,808
Other intangible assets
1,040
1,127
Total intangible assets
4
2,840
2,934
Property, plant and equipment
Land and water areas
38
40
Buildings and structures
164
163
Machinery and equipment
292
283
Right-of-use assets
171
156
Assets under construction
75
83
Total property, plant and equipment
4, 5
740
726
Other non-current assets
Investments in associated companies
23
19
17
Non-current financial assets
8, 9
35
40
Deferred tax assets
17
96
94
Non-current income tax receivables
17
6
39
Other non-current assets
46
37
Total other non-current assets
203
228
Total non-current assets
3,782
3,888
Current assets
Inventories
Materials and supplies
213
206
Work in progress
377
396
Finished products
294
301
Total inventories
7
884
903
Receivables and other current assets
Trade receivables
8
769
862
Amounts due from customers under revenue contracts
3
327
344
Other current financial assets
8, 9
82
62
Income tax receivables
67
64
Other current assets
12
189
226
Cash and cash equivalents
8
535
482
Total receivables and other current assets
1,968
2,041
Total current assets
2,852
2,944
Total assets
6,634
6,832
Equity and liabilities
As at December 31,
EUR million
Note
2025
2024
Equity
Share capital
140
140
Reserve for invested unrestricted equity
1,380
1,375
Cumulative translation adjustments
-112
-40
Hedge and other reserves
8
-6
Retained earnings
1,168
1,137
Equity attributable to owners of the parent
18
2,584
2,607
Non-controlling interests
6
7
Total equity
2,590
2,614
Liabilities
Non-current liabilities
Non-current debt
8
1,153
1,272
Non-current lease liabilities
5, 8
128
107
Employee benefit liabilities
16
156
157
Non-current provisions
11
20
28
Other non-current liabilities
8, 9
7
13
Deferred tax liabilities
17
246
284
Total non-current liabilities
1,710
1,862
Current liabilities
Current debt
8
132
115
Current lease liabilities
5, 8
48
50
Trade payables
8
500
460
Current provisions
11
192
162
Amounts due to customers under revenue contracts
3
855
904
Other current financial liabilities
8, 9
41
31
Income tax liabilities
58
75
Other current liabilities
13
508
559
Total current liabilities
2,334
2,356
Total liabilities
4,044
4,218
Total equity and liabilities
6,634
6,832
VALMET  |  FINANCIAL STATEMENTS AND REPORT OF THE BOARD OF DIRECTORS 2025  |
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|  CONSOLIDATED FINANCIAL STATEMENTS
Consolidated statement of cash flows
EUR million
Note
2025
2024
Cash flows from operating activities
Profit for the period
279
281
Adjustments
Depreciation and amortization
4, 5
209
219
Change in provisions1
11
17
-18
Financial income and expenses
10
62
65
Income taxes
17
96
103
Other non-cash items
52
31
Change in net working capital
6
39
61
Interest paid
-67
-74
Interest received
18
21
Income taxes paid
-125
-134
Net cash provided by (+) / used in (-) operating activities
581
554
Cash flows from investing activities
Capital expenditure on fixed assets
4
-103
-107
Proceeds from sale of fixed assets
3
2
Business combinations, net of cash acquired and loans repaid
21
1
-135
Investments in associated companies
23
2
2
Net cash provided by (+) / used in (-) investing activities
-97
-238
Cash flows from financing activities
Repurchase of own shares
-3
-3
Dividends paid
18
-249
-249
Proceeds from non-current debt
281
375
Repayments of current portion of non-current debt
-394
-290
Repayments of lease liabilities
8
-57
-52
Net proceeds from (+) / repayments of (-) current debt
16
-42
Financial investments
7
-7
Net cash provided by (+) / used in (-) financing activities
-401
-268
Net increase (+) / decrease (-) in cash and cash equivalents
83
48
Effect of changes in exchange rates on cash and cash equivalents
-30
3
Cash and cash equivalents at beginning of year
8
482
432
Cash and cash equivalents at end of year
535
482
1 Change in provisions excluding items acquired in business combinations includes in 2025 a EUR 52 million addition in restructuring
provision relating to the change negotiations of the operating model renewal out of which EUR 31 million has been used during
2025.
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|  CONSOLIDATED FINANCIAL STATEMENTS
Consolidated statement of changes in equity
EUR million
Note
Share capital
Reserve for invested
unrestricted equity
Cumulative
translation
adjustments
Hedge and other
reserves
Retained earnings
Equity attributable
to owners of the
parent
Non-controlling
interests
Total equity
Balance at January 1, 2025
140
1,375
-40
-6
1,137
2,607
7
2,614
Profit for the period
—
—
—
—
280
280
—
279
Other comprehensive income for the period
Gains and losses on cash flow hedges
Fair value gains and losses, net of tax
—
—
—
27
—
27
—
27
Transferred to profit or loss, net of tax
—
—
—
-14
—
-14
—
-14
Change in fair value reserve, net of tax
—
—
—
—
—
—
—
—
Currency translation on subsidiary net investments
—
—
-73
—
—
-73
—
-73
Remeasurement of defined benefit plans, net of tax
16
—
—
—
—
6
6
—
6
Other comprehensive income for the period, total
—
—
-73
13
5
-55
—
-55
Total comprehensive income for the period
—
—
-73
13
285
225
—
225
Transactions with owners in their capacity as owners
Dividends
18
—
—
—
—
-249
-249
-1
-249
Repurchase of own shares
—
—
—
—
-3
-3
—
-3
Share-based payments, net of tax
15
—
5
—
—
-1
4
—
4
Balance at December 31, 2025
140
1,380
-112
8
1,168
2,584
6
2,590
Balance at January 1, 2024
140
1,372
-42
-1
1,096
2,565
6
2,572
Profit for the period
—
—
—
—
280
280
1
281
Other comprehensive income for the period
Gains and losses on cash flow hedges
Fair value gains and losses, net of tax
—
—
—
-10
—
-10
—
-10
Transferred to profit or loss, net of tax
—
—
—
4
—
4
—
4
Change in fair value reserve, net of tax
—
—
—
1
—
1
—
1
Currency translation on subsidiary net investments
—
—
2
—
—
2
—
2
Remeasurement of defined benefit plans, net of tax
16
—
—
—
—
10
10
—
10
Other comprehensive income for the period, total
—
—
2
-6
10
6
—
6
Total comprehensive income for the period
—
—
2
-6
290
286
1
287
Transactions with owners in their capacity as owners
Dividends
18
—
—
—
—
-249
-249
-1
-249
Repurchase of own shares
—
—
—
—
-3
-3
—
-3
Share-based payments, net of tax
15
—
3
—
—
3
6
—
6
Non-controlling interest on acquisition of subsidiary
—
—
—
—
—
—
1
1
Balance at December 31, 2024
140
1,375
-40
-6
1,137
2,607
7
2,614
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
Notes to the consolidated financial statements
1 | Basis of preparation
General information
Valmet Oyj (the “Company” or the “parent company”), a public
limited liability company , and its subsidiaries (together “ Valmet ,”
“Valmet Group” or the “Group”) form a global developer and
supplier of technologies, automation, flow control solutions, and
services for the process industries. Valmet Oyj is domiciled in
Helsinki, and its registered address is Keilasatama 5, 02150
Espoo, Finland . The Company’s shares are listed on the Nasdaq
Helsinki Ltd as of January 2, 2014. The copies of the consolidated
financial statements are available at www.valmet.com or the
parent company’s head office, Keilasatama 5, 02150 Espoo,
Finland. The consolidated financial statements were approved by
Valmet’s Board of Directors on February 5, 2026, after which, in
accordance with the Finnish Limited Liability Company Act, the
financial statements are approved, amended or rejected in the
Annual General Meeting. The consolidated financial statements
for the year ended December 31, 2025, have been prepared in
accordance with the basis of presentation set out below and
accounting policies described in connection with each note.
These consolidated financial statements were prepared in
accordance with the IFRS Accounting Standards as adopted by
the European Union. The financial statements figures are
presented mainly in millions of euros subject to rounding, which
may cause some rounding inaccuracies in aggregate column and
row totals.
Where necessary, comparative information has been reclassified
to achieve consistency in disclosure with current financial year
amounts.
Basis of presentation
Subsidiaries
Subsidiaries are all entities over which Valmet Group has control.
Control over an entity exists when the Group is exposed to, or
has rights to, variable returns from its involvement with the entity
and has the ability to affect those returns through its power over
the entity. When the Group has less than a majority of the voting
or similar rights of an entity, the Group considers all relevant
facts and circumstances in assessing whether it has control over
an entity, including the contractual arrangement with the other
vote holders of the entity, rights arising from other contractual
arrangements, and the Group’s voting rights and potential
voting rights.
The Group reassesses whether it controls an entity if facts and
circumstances indicate that there are changes to one or more of
the three elements of control. Subsidiaries are fully consolidated
from the date on which control is transferred to the Group. They
are deconsolidated from the date that control ceases.
Intercompany transactions, balances and unrealized gains and
losses arising from transactions between Group companies are
eliminated.
Associated companies
The consolidated financial statements include associated
companies in which Valmet either holds between 20 percent to
50 percent of the voting rights or in which Valmet otherwise has
significant influence but not control. Investments in associated
companies are accounted for using the equity method of
accounting. Investments in associated companies are initially
recorded at cost, and the carrying amount is increased or
decreased to recognize Valmet’s share of changes in net assets of
the associated companies after the date of the acquisition. The
Group’s investment in associated companies includes goodwill
identified on acquisition. The Group determines at each
reporting date whether there is any objective evidence that the
investment in the associate is impaired.
Valmet’s share of post-acquisition profit or loss is recognized in
Consolidated statement of income and its share of post-
acquisition movements in other comprehensive income (OCI) is
recognized in Consolidated statement of comprehensive income
with a corresponding adjustment to the carrying amount of the
investment. The share of results of associated companies is
presented in Consolidated statement of income either included in
Operating profit or adjacent to Financial income and expenses
below Operating profit, depending on the nature of the
investment.
Foreign currency translation
Items included in the financial statements of each of Valmet
Group’s entities are measured using the currency of the primary
economic environment in which the entity operates (the
functional currency). These consolidated financial statements are
presented in euros, which is the Group’s presentation currency.
The statements of income of foreign Group companies are
translated into euros using the average exchange rate for the
reporting period. The statements of financial position are
translated at the closing exchange rate of the reporting date.
Translating the net income for the period using different
exchange rates in the Consolidated statement of income and in
the Consolidated statement of financial position results in a
translation difference, which is recognized in the Consolidated
statement of comprehensive income.
Goodwill and fair value adjustments arising on the acquisition of
a foreign entity are treated as assets and liabilities of the foreign
entity and translated at the closing rate. Exchange rate differences
VALMET  |  FINANCIAL STATEMENTS AND REPORT OF THE BOARD OF DIRECTORS 2025  |
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
arising are recognized in the Consolidated statement of
comprehensive income.
When a subsidiary is disposed of or sold, exchange rate
differences that were recorded in equity are recognized in profit
or loss as part of the gain or loss on sale.
Foreign currency transactions
Foreign currency transactions are translated into the functional
currency using the exchange rates prevailing on the date of
transaction. Non-monetary items that are measured at fair value
are translated into functional currency using the exchange rate of
the transaction date.
Foreign exchange gains and losses resulting from the settlement
of such balances and from the translation of monetary assets and
liabilities denominated in foreign currencies at year-end
exchange rates, are recognized in Consolidated statement of
income. Foreign exchange gains and losses that relate to
borrowings and cash and cash equivalents are presented in
Consolidated statement of income within Financial income and
expenses. All other foreign exchange gains and losses are
presented in Other operating income and expenses, or in Net
sales or Cost of goods sold.
Key exchange rates:
Average rates
Year-end rates
2025
2024
2025
2024
USD
(US dollar)
1.1243
1.0826
1.1750
1.0389
SEK
(Swedish krona)
11.0728
11.4226
10.8215
11.4590
CNY
(Chinese yuan)
8.0693
7.7793
8.2262
7.5833
Critical accounting estimates and
judgments
The preparation of financial statements in conformity with IFRS
Accounting Standards requires management to make estimates
and exercise judgment in the application of the accounting
policies. Estimates and judgments are continually evaluated and
are based on historical experience and other factors, including
expectations of future events that are believed to be reasonable
under the circumstances. By definition, the resulting accounting
estimates will seldom equal the related actual results.
Material accounting policies applied, and critical accounting
estimates and judgments made are described adjacent to each
note as follows:
• Revenue recognition
Note 3
• Intangible assets and property, plant and equipment
Note 4
• Leases
Note 5
• Inventories
Note 7
• Financial assets and liabilities
Note 8
• Derivative financial instruments
Note 9
• Provisions
Note 11
• Employee benefit obligations
Note 16
• Income taxes
Note 17
New reporting structure
To reflect the new strategy and operating model Valmet has
changed its reporting structure on July 1, 2025. In the new
financial reporting structure, Valmet consists of two operating
and reportable segments: Process Performance Solutions and
Biomaterial Solutions and Services.
Process Performance Solutions segment consists of two business
areas: Flow Control and Automation Solutions. Process
Performance Solutions segment was previously reported as
Automation segment.
Biomaterial Solutions and Services segment consists of three
business areas: Pulp, Energy and Circularity, Packaging and
Paper, and Tissue. Biomaterial Solutions and Services segment
was previously reported as two segments: Services segment and
Process Technologies segment.
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
The comparative figures have been restated accordingly to reflect
the new segment structure.
Impacts of climate-related matters
Valmet’s Climate Transition Plan was reviewed and approved by
the Board of Directors in 2025. The plan ensures the alignment of
Valmet’s strategy and business model with the transition to a
sustainable economy and the goal of limiting global warming to
1.5 °C in accordance with the Paris Agreement. Potential future
impacts from transition to the low-carbon economy or physical
risks in short-or medium term on the consolidated financial
statements are continuously assessed and any impacts are booked
in accordance with the accounting policies. The potential direct
and indirect impacts include revenues and cash flows from
Valmet’s offering on climate change mitigation and circular
economy, expenses caused by extreme weather conditions, as well
as expenses and investments relating to transition plan and
achieving Valmet’s environmental targets. The potential impacts
to provisions, contingent liabilities and expected economic useful
lives of assets is continuously assessed. Climate-related risks have
not had a material impact on consolidated financial statements
in 2025.
Valmet has established a Green Finance Framework applicable
for the issuance of green debt instruments. The Green Finance
Framework is designed to support the financing or refinancing of
eligible assets and expenditures that promote two key
environmental objectives: mitigating climate change and enabling
the transition to a circular economy. At the end of 2025, Valmet
had two outstanding green debt instruments totaling EUR 250
million which are issued under the Green Finance Framework.
Valmet’ long-term incentives include ESG-index as one of the
performance targets. The 2025–2027 Performance Share Plan has
a sustainability index as a three-year strategic performance
measure with a weight of 20 percent of the long-term incentive
maximum opportunity. The sustainability index is related to the
growth of Valmet’s business contributing to climate change
mitigation and the circular economy as outlined in the EU
Taxonomy and Valmet’s GHG emission reduction target for own
operations. In December 2025, the Board of Directors of Valmet
resolved to establish a new Performance Share Plan 2026-2028 in
which one of the performance criteria is tied to emission
reduction in own operations.
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
2 | Reporting segments and geographic information
Accounting policies
Valmet has changed its operating model and reporting structure
on July 1, 2025. As a result, Valmet has two operating segments
and two reportable segments for financial reporting purposes:
Process Performance Solutions and Biomaterial Solutions and
Services. Corporate functions are presented as Other. Process
Performance Solutions segment was previously reported as
Automation segment. Biomaterial Solutions and Services
segment was previously reported as two segments: Services
segment and Process Technologies segment.The comparative
figures have been restated accordingly to reflect the new segment
structure.
The Process Performance Solutions segment delivers flow control
technologies and automation systems ranging from individual
measurements to full plant-wide solutions, complemented by
lifecycle services. The segment serves a global customer base of
broad range of industries with mission-critical solutions that
enhance resource efficiency, operational reliability, and financial
performance. The Biomaterial Solutions and Services segment
serves global producers across the pulp, paper, packaging, tissue
and bioenergy industries. The segment provides complete
production lines and key process islands, complemented by a full
range of lifecycle services. These solutions enable improvements
in fiber yield, energy and water efficiency, emissions, and
operational uptime.
The financial reporting structure reflects Valmet’s operational
model, and is aligned with the way the Group's Chief Operating
Decision Maker (CODM), the President and CEO of Valmet,
evaluates the operational performance of the segments and
allocates resources. One key indicator of performance reviewed
by the CODM is Earnings before interest, taxes and amortization
(EBITA). Performance is also assessed through Comparable
EBITA, i.e., with EBITA excluding certain items of income and
expense that reduce the comparability of Valmet's performance
from one period to another. The alternative performance
measures of EBITA and Comparable EBITA, are published by
Valmet as part of regulated financial information to enable users
of the financial information to prepare more meaningful analysis
on Valmet’s performance. Items affecting comparability consist
of income and expenses arising from activities that amend the
capacity of Valmet’s operations. Items include restructuring
costs, gains or losses on sale of businesses or non-current assets,
transaction costs related to business combinations, and income
and expenses incurred outside Valmet’s normal course of
business, such as impairment charges and income and expenses
recorded as a result of settlement payments to/from third parties
(e.g., penalties incurred as a result of tax audits or settlements to
closed lawsuits), and share in profits and losses of associated
companies.
Orders received:
EUR million
2025
2024
Process Performance Solutions
1,500
1,446
Biomaterial Solutions and Services
3,716
4,392
Total
5,216
5,837
Net sales:
EUR million
2025
2024
Process Performance Solutions
1,481
1,437
Biomaterial Solutions and Services
3,716
3,922
Total
5,197
5,359
Comparable EBITA:
EUR million
2025
2024
Process Performance Solutions
290
255
Biomaterial Solutions and Services
381
403
Other
-51
-49
Total
620
609
Comparable EBITA, % of net sales:
2025
2024
Process Performance Solutions
19.6%
17.7%
Biomaterial Solutions and Services
10.3%
10.3%
Total
11.9%
11.4%
EBITA:
EUR million
2025
2024
Process Performance Solutions
279
248
Biomaterial Solutions and Services
323
364
Other
-68
-56
Total
534
557
EBITA, % of net sales:
2025
2024
Process Performance Solutions
18.8%
17.2%
Biomaterial Solutions and Services
8.7%
9.3%
Total
10.3%
10.4%
VALMET  |  FINANCIAL STATEMENTS AND REPORT OF THE BOARD OF DIRECTORS 2025  |
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
Items affecting comparability:
EUR million
2025
2024
Process Performance Solutions
-11
-7
Biomaterial Solutions and Services
-58
-39
Other
-17
-7
Total
-85
-53
Amortization:
EUR million
2025
2024
Process Performance Solutions
-55
-54
Biomaterial Solutions and Services
-22
-36
Other
-19
-18
Total
-96
-108
Reconciliation between Comparable EBITA, EBITA and Operating profit:
EUR million
2025
2024
Comparable EBITA
620
609
Items affecting comparability in cost of sales
Expenses related to capacity adjustments1
-22
-11
Expensing of fair value adjustments recognized in business combinations
-2
-16
Other items affecting comparability2
-7
-4
Items affecting comparability in selling, general and administrative expenses
Expenses related to capacity adjustments1
-43
-7
Expenses related to acquisitions
-2
-3
Other items affecting comparability2
-5
-6
Items affecting comparability in other operating income and expenses
Income and expenses related to capacity adjustments
—
-7
Other items affecting comparability 2
-10
—
Items affecting comparability in share in profits and losses of associated companies, operative investments
Other items affecting comparability
5
2
EBITA
534
557
Amortization included in cost of sales
Other intangibles
-1
-1
Amortization included in selling, general and administrative expenses
Intangibles recognized in business combinations
-72
-84
Other intangibles
-23
-22
Operating profit
438
449
1 Includes in 2025 EUR 61 million restructuring costs due to change negotiations and strategy renewal costs related to Valmet's operating model renewal.
2 Includes in 2025 a settlement agreement in the Biomaterial Solutions and Services segment, following a delivery made earlier. The delivery required corrective actions and led to a
commercial dispute, which has now been resolved.
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112
|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
Entity-wide information
Valmet has operations globally in approximately 40 countries.
Measured by net sales, the top three countries in 2025 were the
USA, Brazil and China, which together accounted for 46 percent
of total net sales.
In 2024, the top three countries were the USA, China, and
Finland, which together accounted for 44 percent of total
net sales.
Net sales for Finland (the country of domicile) amounted to
EUR 306 million in 2025 (EUR 417 million).
Net sales by destination:
EUR million
2025
2024
North America
1,341
1,390
Latin America
866
545
EMEA
1,876
2,033
China
540
723
Asia-Pacific
574
668
Total
5,197
5,359
Non-current assets by location:
EUR million
Finland
North America
Latin America
EMEA excluding Finland
China
Asia-Pacific
Non-allocated
Total
2025
390
188
40
217
99
66
2,603
3,605
2024
352
219
39
222
105
72
2,707
3,717
Non-current assets comprise intangible assets, property, plant
and equipment, investments in associated companies, and non-
current income tax receivables. Non-allocated assets include
mainly goodwill, investments in associated companies,
non-current income tax receivables and other fair value
adjustments arising from business combinations that have not
been pushed down to adjust the value of assets in the subsidiaries’
books.
Gross capital expenditure (excluding business combinations and right-of-use assets) by location:
EUR million
North America
Latin America
EMEA
China
Asia-Pacific
Total
2025
14
5
61
15
8
103
2024
8
4
73
17
5
107
Major customers
Valmet enters into large long-term projects which however
individually rarely contribute more than 10 percent of annual
revenue. In 2025 and 2024, there was no single customer with
revenue exceeding 10 percent of net sales.
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
3 | Revenue recognition
Accounting policies
Valmet supplies technologies, automation solutions, flow control
and related services for global process industries. Valmet’s
customers operate mainly in the biomaterials industry such as
pulp, packaging, tissue, and power & heat. Process Performance
Solutions business revenue arises from delivering automation
solutions ranging from single measurements to mill- or plant-
wide process automation systems, and mission-critical flow
control technologies and related services for the process
industries. Revenue from Biomaterial Solutions and Services
business largely arises from the same customers with service
offering being focused on maintaining installed base of
equipment and automation solutions. In the biomaterial
solutions business, the Group’s revenue arises from projects, the
scope of which ranges from delivery of complete mill facilities on
a turnkey basis to single-section machine rebuilds, that may or
may not include process automation solutions. Biomaterial
service revenue includes revenue from short-term and long-term
maintenance contracts, smaller improvement and modification
contracts, rebuilds, as well as sale of spare parts and consumables.
Revenue is recognized to depict the transfer of promised goods or
services to the customers in an amount that reflects the
consideration to which Valmet expects to be entitled, in exchange
for those goods or services. The timing and method as well as
unit of revenue recognition are determined in accordance with
the five-step model of IFRS 15 as follows:
Step 1:
Identification of the contract(s) with a customer
Step 2:
Identification of the performance obligations in
the contract
Step 3:
Determination of the transaction price attached to
the contract
Step 4:
Allocation of the transaction price to the performance
obligations identified in the contract
Step 5:
Recognition of revenue when (or as) the entity satisfies
a performance obligation
In long-term projects involving delivery of both equipment and
services, one or more performance obligations are identified. The
identification of performance obligations depends on the scope of
the project and terms of the contracts, and largely follows the
level at which quotes are being requested by the customers.
In short-term service contracts that involve delivery of a
combination of equipment and services, depending on the scope
of the contract and terms attached thereto, one or more
performance obligations are identified. When the scope of the
contract involves services provided at the customer site, such as
installation, maintenance, technical support or mechanical audits,
these are typically considered as a separate performance
obligation from delivery of significant equipment and services
provided off-site. On the other hand, when services in the scope
of the contract are performed at Valmet premises only, such as
workshop services, material and services typically cannot be
identified separately, and consistently only one performance
obligation is identified.
In long-term service contracts where Valmet’s activities are
largely performed at the customer’s site, depending on the
contract and terms attached thereto, one or more performance
obligations are identified. When the scope of the contract
involves various service elements that are sold separately on a
stand-alone basis, these elements would typically be determined
to consist of performance obligations on their own.
Revenue is recognized when a customer obtains control of a good
or service. A customer obtains control when it has the ability to
direct the use of and obtain the benefits from the good or service,
either over time or at a point in time.
When Valmet determines that control of goods or services is
transferred over time, this is typically based either on that the
customer simultaneously receives and consumes benefits as
Valmet performs, or that Valmet’s performance creates an asset
with no alternative use throughout the duration of a contract and
Valmet has enforceable right to payment for performance
completed to date.
Deliverables within Valmet’s product offering that have the
characteristics of the first criterion include mill maintenance
services or other field services provided under long-term
contracts, in which the receipt and simultaneous consumption by
the customer of the benefits of Valmet’s performance can be
readily identified. Deliverables with the characteristics of the
second criterion include projects where the scope of the contract
involves design and construction of an asset according to
customer specifications. The assets created in these projects do
not have alternative use because the design is based on specific
customer needs. When revenue is recognized over time, progress
towards complete satisfaction of the performance obligation is
measured using the cost-based input method (cost-to-cost
method). The cost-to-cost method is estimated to result in a
revenue profile that best depicts the transfer of control of the
deliverables to the customer.
Recognition of revenue at a point in time is applicable, among
others, in contracts where services are performed at Valmet’s
premises, and deliveries of spare parts, valves and consumables.
Control of deliverables typically transfers based on the delivery
terms used, at the takeover, or at a later point in time when
customer acceptance is received.
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
Valmet’s contracts often involve elements of variable
consideration, such as penalties, liquidated damages or
performance bonus arrangements. Variable consideration is
estimated by using either the expected value or the most likely
amount -method, depending on the type of variable element and
related contractual terms and conditions. The amount of variable
consideration is included in the transaction price only to the
extent that it is highly probable that a significant reversal of
revenue does not occur later. Transaction prices are reassessed at
each reporting date. Variable elements are generally allocated
proportionately to all performance obligations in the contract, or
when terms of the variable payments relate to satisfying a specific
performance obligation and the allocated amount depicts the
amount of consideration to which Valmet expects to be entitled
in exchange for transferring related goods or services, variable
consideration is allocated to that specific performance obligation,
and not all performance obligations in the contract.
Valmet provides its customers with standard payment terms. If
extended payment terms exceeding one year are offered to
customers, the invoiced amount is discounted to its present value
and interest income is recognized over the credit term.
When Valmet incurs costs in fulfilling its contractual obligations,
these are expensed as incurred, unless costs can be capitalized as
inventory. The latter is typically the case in performance
obligations for which revenue is recognized at a point in time.
Costs to obtain a contract are expensed as incurred.
Critical accounting estimates and
judgments
For performance obligations satisfied over time, the progress
and the profitability are based on the management’s
estimates, which require significant judgment concerning
the stage of completion, the cost to complete, and the time of 
completion. Management regularly reviews the progress and
execution of performance obligations. As part of the process,
management reviews information including, but not limited
to, key contractual obligations outstanding, project schedule,
identified risks and opportunities, as well as changes in
estimates of revenues and costs. A projected loss on a
customer contract is recognized in full through profit or loss
when it becomes known.
Valmet regularly enters into contracts where the
consideration includes one or more variable elements.
Variable consideration is estimated by using either the
expected value or the most likely amount -method,
depending on the type of the arrangement. In making
judgments about variable consideration, Valmet considers
historical, current and forecast information. The impact of
changes in estimates is recognized in revenue in the period
when the estimate is updated.
Disaggregation of revenue
Valmet’s revenue is reported, and monitored by management, by
segment, business area and geographical area. Flow Control
business area’s valves equipment sales are recognized at a point in
time. Automation Solutions business area’s revenue consists of
long-term contracts and short-term service contracts. Revenue
for long-term contracts is recognized over time based on the cost-
to-cost method. For the projects that do not meet the over time
revenue recognition criteria, revenue is recognized at a point in
time. Revenue for short-term service contracts is recognized at a
point in time. Pulp, Energy and Circularity, Packaging and Paper,
and Tissue business areas’ revenue is derived from both large
long-term projects, for which revenue is mostly recognized over
time based on the cost-to-cost method and a large volume of
short-term service contracts with relatively low individual value,
for which revenue is mainly recognized at a point in time. These
short-term service contracts include smaller maintenance, 
improvements and rebuilds. Sale of spare parts and consumables
is recognized at a point in time. The nature of revenue in each
geographical area in any given reporting period is driven by
volume and size of ongoing projects.
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
Net sales by business areas:
EUR million
2025
2024
Flow Control
788
791
Automation Solutions
694
646
Pulp, Energy and Circularity
1,610
1,541
Packaging and Paper
1,483
1,793
Tissue
622
588
Total
5,197
5,359
Timing of revenue recognition:
EUR million
2025
2024
Performance obligations satisfied at a point in time
2,901
3,006
Performance obligations satisfied over time
2,296
2,353
Total
5,197
5,359
Contract balances
In order to mitigate credit risk and compensate for contract costs
incurred upfront, Valmet regularly requires advance payments
from its customers. During the reporting period Valmet had not
entered into any material contracts where the period between
when Valmet transfers a promised good or service to a customer
and when the customer pays for that good or service will be one
year or more. Neither were there any ongoing projects from
previous reporting periods for which the former would apply.
The creditworthiness of a customer is verified before entering
into a contract. However, if a risk of non-payment arises after
contract inception, the probability of collection of consideration
is re-evaluated and if assessed improbable, recognition of revenue
is discontinued. An allowance for non-collectability of open
receivables and contract assets is established as concluded
appropriate.
Valmet receives payments from customers based on invoicing
schedules as set out in the customer contracts. Changes in
contract assets and liabilities are due to Valmet’s performance
under the customer contracts. Amounts due from customers
under revenue contracts primarily relate to Valmet’s right to
consideration for work completed but not yet invoiced at the
reporting date. These assets are transferred to trade receivables
when right to consideration becomes unconditional, which is
typically at the time when Valmet has contractual right to issue
an invoice. A significant part of amounts due to customers is
related to advance consideration received from customers in
long-term contracts for which revenue is recognized over time.
These amounts are recognized as revenue as (or when) Valmet
performs under the contracts.
The following tables show movements in amounts due from
customers under revenue contracts and amounts due to
customers under revenue contracts during the reporting period.
Revenue recognized in the period also includes revenue
recognized related to performance obligations satisfied in
previous periods, the amount of which however is insignificant.
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
Amounts due from customers under revenue contracts:
EUR million
2025
2024
Balance at beginning of the period
344
475
Translation differences
1
-3
Acquired in business combinations
—
2
Revenue recognized in the period
936
733
Transfers to trade receivables
-954
-864
Balance at end of the period
327
344
Amounts due to customers under revenue contracts:
EUR million
2025
2024
Balance at beginning of the period
904
1,151
Translation differences
-29
18
Acquired in business combinations
—
15
Revenue recognized in the period
-2,579
-2,752
Consideration invoiced and/or received
2,559
2,471
Balance at end of the period
855
904
EUR million
2025
2024
Amounts due to customers under revenue contracts for which revenue is recognized
Point in time
339
321
Over time
516
583
Carrying value at end of the period
855
904
Valmet typically issues contractual product warranties that
guarantee the mechanical functioning of equipment delivered
during the agreed warranty period. Valmet does not issue service-
type warranties.
As at December 31, 2025, Valmet had no costs to obtain or fulfil
contracts capitalized under IFRS 15.
The aggregate amount of transaction price allocated to
unsatisfied or partially satisfied performance obligations as at
December 31, 2025, was EUR 4,306 million (EUR 4,452 million).
Approximately EUR 3.1 billion of the order backlog is currently
expected to be realized as net sales during 2026 (at the end of
December 2024, EUR ~3.1 billion was expected to be realized as
net sales during 2025).
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
4 | Intangible assets and property, plant
and equipment
Accounting policies
Fixed assets consist of intangible assets and property, plant and
equipment. Intangible assets, which comprise goodwill,
intangible assets recognized in business combinations (such as
technology and customer relationships), capitalized software and
other intangible assets, are stated at historical cost less
accumulated amortization and impairment losses, if any.
Goodwill is not amortized, but tested for impairment.
Property, plant and equipment is stated at historical cost, less
accumulated depreciation and impairment losses, if any. Land
and water areas are not depreciated.
Subsequent improvement costs related to an asset are included in
the carrying value of such an asset or recognized as a separate
asset, as appropriate, only when the future economic benefits
associated with the costs are probable, and the related costs can
be separated from normal maintenance costs.
Depreciation and amortization
The amortization of intangible assets with a definite useful life is
calculated on a straight-line basis over the expected economic
lives of the assets, being the following:
Technology
3–20 years
Customer relationships
3–20 years
Capitalized software
3–10 years
Patents and licenses
5–10 years
Other intangibles
1–40 years
Depreciation of property, plant and equipment is calculated on a
straight-line basis over the expected useful lives of the assets,
being the following:
Buildings and structures
15–40 years
Machinery and equipment
3–20 years
Expected useful lives are reviewed at each balance sheet date, and
if they differ significantly from previous estimates, the remaining
depreciation periods are adjusted accordingly.
Impairment
The carrying value of fixed assets subject to amortization or
depreciation is reviewed for impairment whenever events and
changes in circumstances indicate that the carrying amount of an
asset may not be recoverable. The recoverable amount of an asset
is the higher of its fair value and its value in use. An asset is
impaired if its carrying amount exceeds its recoverable amount,
at which time an impairment loss is recognized in the
Consolidated statement of income in Other operating expenses.
The previously recognized impairment loss may be reversed if,
and only if, there is exceptional and significant improvement in
the circumstances having initially caused the impairment.
The carrying value of goodwill is reviewed for impairment
annually or more frequently if facts and circumstances, such as
decline in sales, operating profit or cash flows, or material adverse
changes in the business environment, suggest that carrying value
may not be recoverable. Valmet has five cash generating units
(CGUs) that establish the first aggregation levels at which
impairment testing can be done. The testing of goodwill for
impairment is performed at the CGU level, as goodwill does not
generate cash flows independently of the CGUs. Valmet uses the
value in use method to measure the recoverable amount of
goodwill subject to testing. Value in use is estimated through the
discounted cash flow method. A previously recognized
impairment loss on goodwill is not reversed even if there is a
significant improvement in circumstances, having initially caused
the impairment.
Critical accounting estimates and
judgments
Impairment testing
The preparation of impairment analysis requires use of
numerous estimates. The valuation is inherently judgmental
and highly susceptible to change from period to period
because it requires management to make assumptions about
future supply and demand related to its individual business
units, future sales prices and achievable cost levels. The value
of the benefits and savings expected from the efficiency
improvement programs is inherently subjective. All outsized
improvements are excluded from future cash inflows and
outflows. The value in use of a cash-generating unit is
determined by discounting estimated future cash flows with
a discount rate approximating the weighted average cost of
capital (WACC).
The WACC is based on comparable peer industry betas and
capital structure.
Triggering events for impairment reviews at Valmet include
the following:
• A material permanent deterioration in the economic or
political environment of the customers’ or Valmet’s own
activity
• Businesses or asset’s significant under-performance
relative to historical or projected future performance
• Significant changes in Valmet’s strategic orientations.
affecting the business plans and previous investment
policies.
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
Intangible assets:
2025
2024
EUR million
Goodwill
Intangible
assets
recognized in
business
combinations
Capitalized
software
Other intangible
assets
Total
Goodwill
Intangible
assets
recognized in
business
combinations
Capitalized
software
Other intangible
assets
Total
Acquisition cost at beginning of the
period
1,808
1,576
246
69
3,699
1,735
1,502
234
72
3,545
Translation differences
-17
-7
—
1
-23
9
4
—
—
13
Capital expenditure
—
—
—
18
18
—
—
—
23
24
Acquired in business combinations
9
-2
—
—
8
63
69
—
—
133
Retirements
—
—
-6
-5
-11
—
—
-7
-10
-16
Reclassifications
—
—
16
-16
—
—
—
18
-18
—
Other changes
—
—
—
1
1
—
—
—
1
1
Acquisition cost at end of the period
1,800
1,567
256
67
3,691
1,808
1,576
246
69
3,699
Accumulated amortization and
impairment losses at beginning of the
period
—
-568
-146
-51
-764
—
-483
-130
-55
-668
Translation differences
—
1
—
—
1
—
-1
—
—
—
Amortization
—
-72
-21
-3
-96
—
-84
-20
-3
-108
Impairment losses
—
—
-2
—
-3
—
—
-3
-2
-5
Retirements
—
—
6
5
11
—
—
7
10
16
Other changes
—
—
—
—
—
—
—
—
—
—
Accumulated amortization and
impairment losses at end of the period
—
-639
-163
-49
-851
—
-568
-146
-51
-764
Carrying value at end of the period
1,800
929
93
18
2,840
1,808
1,008
100
18
2,934
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
Property, plant and equipment (excluding right-of-use assets):
2025
2024
EUR million
Land and water
areas
Buildings and
structures
Machinery and
equipment
Assets under
construction
Total
Land and water
areas
Buildings and
structures
Machinery and
equipment
Assets under
construction
Total
Acquisition cost at beginning of the period
41
461
1,083
83
1,667
40
449
1,030
81
1,599
Translation differences
-2
-9
-25
-1
-37
—
—
6
—
6
Capital expenditure
—
—
5
80
85
—
1
6
76
83
Acquired in business combinations
—
—
—
—
—
—
—
6
—
6
Disposals
—
-1
-4
—
-5
—
—
-10
-1
-11
Retirements
—
—
-11
—
-11
—
-3
-14
—
-17
Reclassifications
—
21
65
-86
—
—
14
59
-74
—
Other changes
—
—
7
-1
6
—
—
—
—
—
Acquisition cost at end of the period
38
472
1,119
75
1,704
41
461
1,083
83
1,667
Accumulated depreciation and impairment
losses at beginning of the period
—
-298
-799
—
-1,098
—
-280
-767
—
-1,046
Translation differences
—
4
15
—
20
—
-1
-4
—
-5
Depreciation
—
-14
-49
—
-64
—
-15
-48
—
-63
Impairment losses
—
-1
-1
—
-2
—
-6
-2
—
-8
Disposals
—
—
3
—
4
—
—
9
—
9
Retirements
—
—
11
—
11
—
3
14
—
17
Other changes
—
1
-7
—
-6
—
—
—
—
—
Accumulated depreciation and impairment
losses at end of the period
—
-308
-827
—
-1,135
—
-298
-799
—
-1,098
Carrying value at end of the period
38
164
292
75
568
40
163
283
83
569
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
Depreciation and amortization by function:
EUR million
2025
2024
Cost of goods sold
-65
-67
Selling, general and administrative
expenses
Marketing and selling
-8
-8
Research and development
-5
-6
Administrative
-130
-138
Total
-209
-219
Table does not include amortization included in share in profits and losses of
associated companies, operative investments.
Goodwill impairment testing
On the acquisition date goodwill arising from business
acquisitions is allocated to the cash generating unit (CGU) or
cash generating units expected to benefit from the synergies of
the combination, irrespective of whether other assets and/or
liabilities of the acquiree are assigned to the CGU or CGUs.
As a result of the organizational change, effective since
July 1, 2025, Valmet has changed its reporting structure and the
composition of CGUs. Due to the change in reporting structure
and the composition of CGUs, Valmet performed additional
goodwill impairment testing during 2025, and as a result no
impairment loss was recognised on goodwill.
In 2025, Valmet identified five CGUs, which are Flow Control,
Automation Solutions, Pulp, Energy & Circularity, Packaging and
Paper, and Tissue corresponding to Valmet’s Business Areas.
Goodwill has been reallocated as of July 1, 2025, to the five CGUs
based on a relative value approach. In 2024, Valmet identified
three CGUs, which were Services, Automation and Process
Technologies corresponding to the operating segments in 2024.
Comparatives have not been restated.
Valmet assesses the value of its goodwill for impairment annually
or more frequently if facts and circumstances indicate that a risk
of impairment exists. Testing is performed by comparing the
carrying value of the CGU to its recoverable amount, which is
determined based on a value in use calculation. This calculation
uses pre-tax cash flow projections based on financial budgets
approved by Valmet’s management and Board of Directors
covering a five-year period. The terminal values representing the
cash flows beyond the five-year period are calculated using the
estimated long-term growth rates stated below.
The following table sets out the allocation of goodwill as at
December 31, 2025, and the key assumptions applied in the value
in use calculations. Testing was performed as at September 30.
Allocation of goodwill as at December 31:
EUR million
2025
Flow Control
467
Automation Solutions
424
Pulp, Energy & Circularity
366
Packaging and Paper
362
Tissue
180
Total
1,800
Key assumptions applied:
2025
Long-term growth rate, (%)
Flow Control
2.0%
Automation Solutions
2.0%
Pulp, Energy & Circularity
2.0%
Packaging and Paper
2.0%
Tissue
2.0%
Pre-tax discount rate, (%)
Flow Control
10.6%
Automation Solutions
9.9%
Pulp, Energy & Circularity
12.7%
Packaging and Paper
12.8%
Tissue
12.3%
The key assumptions are based on past performance as well as
management’s and the Board of Directors’ expectations of market
development. Assumptions on product mix are in line with the
Group’s financial targets. Profitability margin assumptions reflect
improvements similarly in line with the Group’s financial targets
as communicated. External sources are also used to obtain data
on growth, demand, and price developments that is used in
establishing the assumptions. The discount rate used in testing is
derived from the weighted average cost of capital based on
comparable peer industry betas and capital structure. The long-
term growth rates used for calculating the terminal values are
based on Valmet’s assessments for the market growth drivers and
have been corroborated against the long-term inflation
expectations. The assumptions requiring most judgment are the
market development and product mix.
As a result of the annual impairment tests, no impairment loss
was recognized on goodwill in 2025 or in 2024.
Sensitivity analysis
Valmet’s management has assessed that no reasonably possible
change in any of the key assumptions would cause any of the
CGU’s carrying amount to exceed its recoverable amount.
Goodwill impairment testing 2024
The tables below present the allocation of goodwill as at
December 31, 2024, and the key assumptions applied in the value
in use calculations in 2024.
Allocation of goodwill as at December 31:
EUR million
2024
Services
670
Automation
891
Process Technologies
247
Total
1,808
Key assumptions applied:
2024
Long-term growth rate, (%)
Services
2.0%
Automation
2.0%
Process Technologies
2.0%
Pre-tax discount rate, (%)
Services
10.7%
Automation
10.1%
Process Technologies
11.9%
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
5 | Leases
Accounting policies
Valmet assesses at the inception of a contract whether it is or
contains a lease. A contract is considered to contain a lease if it
conveys the right to use an either explicitly or implicitly identified
asset for a period of time in exchange for consideration. In lease
contracts where Valmet is the lessee, a right-of-use asset and a
lease liability is recognized on the lease commencement date to
reflect Valmet’s right to use the underlying asset and the unpaid
future lease payments respectively.
The lease liability is initially measured at an amount equal to the
present value of the future lease payments that are not yet paid on
the commencement date. Lease payments are discounted using
Valmet’s incremental borrowing rate reflecting entity-specific
factors and the lease term. Incremental borrowing rates are
estimated based on market prices, adjusted with calculated
margins representing the entity-specific factors such as credit and
country risk.
In subsequent periods, the lease liability is measured using the
effective interest rate method, and the carrying amount of the
lease liability is increased with the interest on the lease liability,
reduced by the amount of lease payments made and adjusted to
reflect any reassessments or lease modifications made. When the
lease liability is remeasured, the corresponding adjustment is
reflected in the right-of-use asset. Variable lease payments not
based on an index or rate are not included in the liability but are
expensed as incurred.
A right-of-use asset is initially measured at cost comprising the
amount of the initial measurement of the lease liability and any
lease payments made on or before the commencement date, any
initial direct costs incurred by Valmet, and restoration costs, less
any lease incentives received. Subsequently, the right-of-use asset
is depreciated on a straight-line basis over the shorter of the lease
term or the useful life of the asset.
Valmet applies exemptions provided by IFRS 16 not to recognize
a right-of-use asset and corresponding lease liability for leases
with a contract term of 12 months or less, and for leases of low-
value assets. The payments for these leases are recognized as an
expense on a straight-line basis over the lease term. Furthermore,
Valmet separates non-lease components from lease components
only for asset classes in which the amount of non-lease
components is significant.
Critical accounting estimates and
judgments
Valmet has a significant volume of open-ended real estate
lease contracts which carry a short notice period only, or
which have an initial fixed term but carry extension or
termination options. Estimating the likely lease term for
these contracts and assessing if the options will be exercised
requires significant judgment. When assessing the lease term
for these contracts, management considers the relevant facts
and circumstances. The likely lease term is typically assessed
following the three-year financial forecasts established by
management. If there are specific circumstances in place,
such as beneficial market rates, significant leasehold
improvements, or other significant direct or indirect costs
associated with exiting the lease, the lease term can be more
than three years.
Considering other than real estate leases, the need for assets
leased under open-ended contracts is commonly short-term
in nature, and as such, open-ended contracts where the
notice period is 12 months or less are accounted for as short-
term leases.
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
Valmet’s leasing activities
The majority of Valmet’s lease arrangements concern real estate,
vehicles, and machinery and equipment located primarily on
Valmet’s premises. The length of these lease arrangements is
typically three to five years, and contracts may include options to
extend the lease.
The tables below present the right-of-use assets recognized in the
Consolidated statement of financial position and the movements
during the period and the future minimum lease payments as at
December 31, 2025.
2025
2024
EUR million
Land and water
areas
Buildings and
structures
Machinery and
equipment
Right-of-use
assets total
Land and water
areas
Buildings and
structures
Machinery and
equipment
Right-of-use
assets total
Carrying value at beginning of the period
10
123
24
156
10
116
18
145
Translation differences
-1
-4
-1
-5
—
1
—
2
Additions
2
69
11
82
—
36
16
53
Acquired in business combinations
—
—
—
—
—
11
—
11
Depreciation
-1
-36
-12
-49
-1
-36
-11
-48
Other changes
—
-13
-1
-14
—
-5
—
-6
Carrying value at end of the period
11
140
21
171
10
123
24
156
Maturity of future minimum lease payments
as at December 31
EUR million
2025
2024
Due within 1 year
49
51
Due in 1–2 years
37
38
Due in 2–3 years
29
24
Due in 3–4 years
22
18
Due in 4–5 years
18
13
Due after 5 years
67
42
Total
223
187
Lease payments related to short-term leases and leases of
low-value assets, as well as variable lease payments that are not
based on index or rate, are not included in the lease liability but
are recognized as an expense as incurred in either Cost of goods
sold or Selling, general and administrative expenses. The
following table presents lease payments for such leases. The
interest expense related to leases included in Financial expenses is
presented in Note 10.
EUR million
2025
2024
Expenses related to short-term
leases
-3
-3
Expenses related to leases of
low-value assets
-7
-6
Expenses related to variable
lease payments not included in
lease liabilities
-2
-2
Total
-12
-12
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
6 | Net working capital
Payment schedules of large long-term projects have a significant
impact on net working capital development. Net working capital
does not include non-operative items such as taxes, interest-
bearing assets and liabilities, or other items related to the funding
of the Group’s operations.
As at December 31,
Impact to
cash flows
EUR million
2025
2024
2025
Assets included in net working capital
Non-current trade receivables
16
22
5
Other non-current assets
46
37
-9
Inventories
884
903
19
Trade receivables
769
862
93
Amounts due from customers under revenue contracts
327
344
17
Derivative financial instruments (assets)
63
31
-32
Other receivables
190
232
42
Liabilities included in net working capital
Employee benefits
-156
-157
-1
Provisions
-212
-190
22
Other non-current non-interest-bearing liabilities
-1
-1
—
Trade payables
-500
-460
40
Amounts due to customers under revenue contracts
-855
-904
-49
Derivative financial instruments (liabilities)
-47
-43
4
Other current liabilities
-495
-542
-47
Total net working capital
29
134
104
Effect of changes in foreign exchange rates
-31
Remeasurement of defined benefit plans
10
Change in allowance for doubtful receivables and inventory obsolescence provision
-18
Change in provisions
-17
Acquired in business combinations
-9
Change in net working capital in the Consolidated statement of cash flows
39
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
7 | Inventories
Accounting policies
Inventories are valued at the lower of cost and net realizable
value. Net realizable value is the estimated selling price in the
normal course of business less the estimated costs of completion
and the estimated costs necessary to make the sale.
Materials and supplies and finished products are valued on a
weighted average cost basis or on a first in, first out (FIFO) basis.
Work in progress includes costs related to ongoing projects, for
which revenue is recognized at a point in time. Work in progress
typically includes costs for direct labor and material and allocated
overhead costs.
Critical accounting estimates and
judgments
Provision for slow-moving and obsolete inventory is based
on the best estimate of such amounts at the balance sheet
date. The estimate is based on a systematic ongoing review
and evaluation of inventory balances. As part of this
evaluation, Valmet also considers the composition and age
of the inventory compared to anticipated future needs.
Specification of changes in inventory obsolescence provisi on:
EUR million
2025
2024
Balance at beginning of the period
94
67
Translation differences
-3
—
Additions charged to profit or loss
32
31
Acquired in business combinations
—
23
Provisions used
-8
-12
Unused provisions reversed
-19
-15
Balance at end of the period
96
93
The cost of inventories recognized as expense was EUR 3,422
million and EUR 3,553 million for the years ended December 31,
2025, and 2024, respectively.
In 2025, EUR 32 million (EUR 31 million) of additions in
inventory obsolescence provision were recognized as an expense.
EUR 19 million (EUR 15 million) were recognized as reversals of
previously recorded inventory obsolescence provisions.
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
8 | Financial assets and liabilities
Accounting policies
Valmet classifies its financial assets into the following categories:
at amortized cost, at fair value through other comprehensive
income and at fair value through profit or loss. The measurement
category of financial assets is determined based on the related
business model and contractual cash flow characteristics of a
given instrument. Financial assets are derecognized when the
contractual rights to cash flows have expired, or the rights to cash
flows together with substantially all risks and rewards of
ownership, have transferred.
Financial liabilities are classified at amortized cost or at fair value
through profit or loss. Financial liabilities are derecognized when
they are extinguished, that is when the obligation specified in the
contract is discharged, cancelled or expires.
Financial assets and liabilities are recognized when Valmet
becomes party to the contractual provisions of the instrument.
Both financial assets and liabilities are presented as non-current
when their maturity exceeds 12 months.
Financial assets at amortized cost
The Group’s financial assets measured at amortized cost include
trade, loan and other receivables together with cash and cash
equivalents. These assets are recognized initially at fair value
including transaction costs and trade receivables at their
transaction price. Subsequently the assets are recognized at
amortized cost using the effective interest rate method. Trade
receivables are the most significant of these assets, and for them
the amortized cost equals to the original amount invoiced to
customers, net of allowance for expected credit losses. If extended
payment terms exceeding one year are offered to a counterparty,
the receivable is discounted to present value and interest income
is recognized over the credit term.
Valmet evaluates changes in credit risk associated with different
financial assets at each reporting date as required by general
impairment guidelines set out in IFRS 9. If credit risk has not
changed significantly since initial recognition, an allowance
amounting to expected credit losses for next 12 months is
recognized. However, if the credit risk has changed significantly,
the valuation of allowance is based on lifetime expected credit
losses.
For trade receivables and contract assets arising from customer
contracts for which revenue is recognized over time, a simplified
impairment model is applied and valuation of allowance is based
on lifetime expected credit losses which are recognized at first
reporting date. Valmet’s application of the simplified impairment
model considers historical credit loss experience, time value of
money and forward-looking information relevant to estimate
future credit losses, and the inputs used in the model are updated
on a regular basis. The model applied includes a statistical model
together with an option to apply case-by-case analysis for
significant trade receivables overdue more than 90 days. Final bad
debts are written off when official announcement of receivership,
liquidation or bankruptcy is received confirming that the
receivable will not be honored by the customer. Changes in
allowance together with final bad debts are reported under Other
operating income and expenses.
Financial assets at fair value through other
comprehensive income
The majority of Valmet’s financial assets measured at fair value
through other comprehensive income (OCI) are interest-bearing
financial assets managed centrally by Group treasury. The
business model for these assets involves both holding until
maturity and selling before the maturity date approaches,
depending on prevailing market circumstances and Group
treasury’s operational requirements. Gains and losses from these
assets are recognized in the fair value reserve of Equity and at
derecognition these are recycled through OCI to Consolidated
statement of income.
Valmet also applies fair value through other comprehensive
income option to certain publicly traded equity investments.
Change in fair value of the related shares is recognized in the fair
value reserve of Equity. Should the investments be divested in the
future, any cumulative gain or loss remains in Equity, and is not
recycled through OCI to the Consolidated statement of income.
Fair value of the equity investments classified at fair value
through other comprehensive income as at December 31, 2025,
was EUR 9 million (EUR 10 million).
Financial assets and liabilities at fair value
through profit or loss
The majority of the Group’s financial assets and liabilities
measured at fair value through profit or loss are derivative
financial instruments, for which the related accounting policies
are presented in Note 9. Valmet’s other equity holdings,
excluding publicly traded equity investments, include various
industrial participations, shares in real estate holdings and other
shares which are measured at fair value through profit or loss. For
these other equity ownerships, if a reliable market value does not
exist, historical cost is considered the best available estimate of
fair value. Valmet has not voluntarily assigned any financial
assets or liabilities to be measured at fair value in addition to
items designated to this category mandatorily in accordance with
IFRS 9.
Financial liabilities at amortized cost
Valmet’s financial liabilities measured at amortized cost consist
of loans from financial institutions, bonds, lease liabilities and
trade payables. Loans from financial institutions are initially
recognized at fair value, net of transaction costs incurred.
Subsequently these liabilities are measured at amortized cost by
using the effective interest rate method. Loans from financial
institutions are classified as current liabilities unless Valmet has
an unconditional right to defer settlement of the liability for at
least 12 months after the end of the reporting period. Accounting
policies for leases are presented in Note 5.
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
Fair value estimation
For those financial assets and liabilities, which have been
recognized at fair value in the Consolidated statement of financial
position, the measurement hierarchy and valuation methods
described below have been applied. There have been no transfers
between fair value levels.
Level 1
The fair value of financial instruments in Level 1 is based on
quoted unadjusted prices at reporting date in active markets. The
market prices are readily and regularly available from an
exchange, dealer, broker, market data provider, pricing service or
regulatory agency. The quoted market price used for financial
assets is the current bid price. Level 1 financial instruments
include equity investments classified as financial assets at fair
value through other comprehensive income.
Level 2
The fair value of financial instruments in Level 2 is determined
using valuation techniques. These techniques utilize observable
market data readily and regularly available from an exchange,
dealer, broker, market data provider, pricing service or regulatory
agency. Level 2 financial instruments include over-the-counter
(OTC) derivatives classified as financial assets and liabilities at
fair value through profit or loss or derivatives qualified for hedge
accounting and all other financial assets and liabilities except for
equity investments.
Level 3
A financial instrument is categorized into Level 3 if the
calculation of the fair value cannot be based on observable market
data. Level 3 financial instruments include equity investments
classified as financial assets at fair value through profit or loss.
There were no changes in Level 3 instruments for the 12 months
ended December 31, 2025.
Critical accounting estimates and
judgments
Under the simplified impairment model applied to trade
receivables and contract assets, an allowance amounting to
lifetime expected credit losses is recognized at first reporting
date. The amount of this allowance is estimated based on a
model that considers historical credit loss experience, time
value of money and forward-looking information relevant to
estimate future credit losses. The inputs used in the model
are updated on a regular basis.
Application of the guidance for impairment of financial
assets, in particular estimation of future expected credit
losses and application of case-by-case analysis to significant
trade receivables overdue more than 90 days, requires
significant management judgment and includes
consideration of available customer and market information.
Resulting impairment of financial assets is the best estimate
based on information available and may differ from the
actual result.
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
Classification of financial assets and liabilities as at December 31:
2025
2024
EUR million
At amortized cost
At fair value
through other
comprehensive
income
At fair value
through profit and
loss
Carrying value
At amortized cost
At fair value
through other
comprehensive
income
At fair value
through profit and
loss
Carrying value
Fair value
level
Non-current financial assets
Equity investments
9
2
11
10
2
12
1,3
Trade receivables
16
16
22
22
Derivative financial instruments
7
—
7
6
—
6
2
Total
16
16
3
35
22
16
3
40
Current financial assets
Interest-bearing financial assets
22
22
30
30
2
Non-interest-bearing financial assets
3
3
8
8
Trade receivables
769
769
862
862
Derivative financial instruments
47
9
56
15
9
24
2
Cash and cash equivalents
535
535
482
482
Total
1,308
69
9
1,386
1,352
45
9
1,406
Non-current financial liabilities
Loans from financial institutions
953
953
1,071
1,071
Bonds1
201
201
202
202
Lease liabilities
128
128
107
107
Derivative financial instruments2
6
—
6
12
—
12
2
Total
1,281
6
—
1,287
1,379
12
—
1,392
Current financial liabilities
Loans from financial institutions
99
99
94
94
Lease liabilities
48
48
50
50
Interest-bearing liabilities
33
33
20
20
Trade payables
500
500
460
460
Derivative financial instruments
31
10
41
24
7
31
2
Total
680
31
10
721
625
24
7
656
1 The bonds have been measured at amortized cost, adjusted by the fair value to the extent that fair value hedge accounting is applied.
2 Included in Other non-current liabilities in the Consolidated statement of financial position.
Carrying values presented in the table above approximate fair
values, except for the loans from financial institutions where fair
value approximates to EUR 1,092 million (EUR 1,206 million).
Non-current equity investments comprised EUR 9 million listed
shares (EUR 10 million) and various industrial participations,
shares in real-estate holdings and other shares amounting to
EUR 2 million as at December 31, 2025 (EUR 2 million). Current
interest-bearing financial assets managed centrally by the Group
treasury amounted to EUR 22 million (EUR 30 million).
Valmet manages its cash by investing in financial assets with
varying maturities. Interest-bearing financial assets with
maturities at the date of acquisition exceeding three months are
classified as Other current financial assets and assets with
maturities of three months or less are classified as Cash and cash
equivalents in the Consolidated statement of financial position.
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
Cash and cash equivalents comprised cash at bank and in hand of
EUR 487 million (EUR 460 million) and other short-term
financial assets with maturities of three months or less of EUR 48
million (EUR 23 million) mainly comprising bank deposits and
banker’s acceptance drafts. For more information on derivative
financial instruments, see Note 9.
Analysis of trade receivables by age as at December 31:
EUR million
2025
2024
Trade receivables, not due
535
615
Trade receivables 1–30 days overdue
123
141
Trade receivables 31–60 days overdue
40
53
Trade receivables 61–90 days overdue
22
16
Trade receivables 91–180 days overdue
37
32
Trade receivables more than 180 days overdue
28
27
Total
786
884
Movement in allowance for trade receivables and amounts due from customers under revenue contracts:
EUR million
2025
2024
Balance at beginning of the period
33
25
Translation differences
-2
—
Additions charged to profit or loss
17
15
Acquired in business combinations
—
—
Used reserve
-4
-6
Reversals
-5
-3
Other changes
-2
—
Balance at end of the period
38
33
Net debt reconciliation as at December 31:
EUR million
2025
2024
- Cash and cash equivalents
535
482
- Current interest-bearing financial assets
22
30
+ Loans from financial institutions, bonds and other current debt
1,285
1,387
+ Lease liabilities
176
157
Net debt
904
1,032
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
2025
Liabilities from financing activities
Other assets
EUR million
(+) Loans from financial
institutions, bonds and
other current debt
(+) Lease
liabilities
(-) Cash and cash
equivalents
(-) Current interest-
bearing financial
assets
Total net debt
Balance at beginning of the period
1,387
157
482
30
1,032
Translation differences
-3
-5
-30
—
22
Cash flows
-98
-57
83
-7
-230
Additions to lease liabilities
—
93
—
—
93
Other changes
-1
-13
—
—
-14
Balance at end the of period
1,285
176
535
22
904
2024
Liabilities from financing activities
Other assets
EUR million
(+) Loans from financial
institutions, bonds and
other current debt
(+) Lease
liabilities
(-) Cash and cash
equivalents
(-) Current interest-
bearing financial
assets
Total net debt
Balance at beginning of the period
1,343
141
432
25
1,027
Translation differences
—
1
3
-4
2
Cash flows
42
-52
48
7
-64
Additions to lease liabilities
—
62
—
—
62
Acquired in business combinations
—
10
—
3
7
Other changes
2
-5
—
—
-3
Balance at end of the period
1,387
157
482
30
1,032
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
9 | Derivative financial instruments
Accounting policies
Derivative financial instruments
Derivative financial instruments are used to hedge the Group’s
exposure to foreign exchange rate, interest rate and commodity
price risks arising from operational, investment and financing
activities in accordance with Valmet’s treasury policy, which is
discussed further in Note 22.
Trade date accounting is applied to the Group’s derivative
financial instruments and these are measured at initial
recognition and at each reporting date at fair value in the balance
sheet. Fair value of open derivative contracts is calculated as
present value of future cash flows using currency, interest and
commodity price quotations on the reporting date. The
instruments are classified as non-current assets or liabilities when
the remaining maturities exceed 12 months and as current assets
or liabilities when the remaining maturities are 12 months or less.
When hedge accounting is applied, derivatives are designated at
inception either as hedges of firm commitments or highly
probable forecasted sale and purchase transactions (cash flow
hedge) or as hedges of fixed-rate debt (fair value hedge). When
hedge accounting criteria are not met, derivatives are measured at
fair value through profit or loss.
Application of hedge accounting
Valmet has designated certain forward exchange contracts,
interest rate swaps, electricity forward contracts, and nickel
average price swaps to cash flow hedge accounting relationships.
Further, interest rate swaps not designated to cash flow hedge
accounting, have been designated to fair value hedge accounting.
When hedge accounting is applied, the relationship between
hedging instrument and hedged item is documented, including
the related risk management strategy and objectives. In cash flow
hedge accounting, both at hedge inception and at each reporting
date, a forward-looking assessment is performed to ensure that
changes in cash flows of the hedging instrument are expected to
offset changes in cash flows from the hedged item. In fair value
hedge accounting, both at inception and at each reporting date,
the change in fair value of the derivatives is compared against
those of the underlying instruments. When performing these
assessments, if critical terms of hedging instrument and hedged
item match, and an economic relationship between the hedged
item and hedging instrument exists, hedge accounting
relationship is considered effective.
Cash flow hedge accounting
For derivatives that have been designated to a cash flow hedge
accounting relationship, the effective portion of change in fair
value is recognized through other comprehensive income (OCI)
in the hedge reserve under Equity and reclassified to profit or loss
concurrently with the underlying hedged transaction. The gains
or losses relating to the ineffective portion of derivatives hedging
operative items (e.g. foreign currency denominated sales and
purchase transactions) are reported in profit or loss. Both the
ineffective portion and the reclassification from Equity are
reported either in Net sales and Cost of goods sold or under
Other operating income and expenses on a case-by-case basis.
Net loss from foreign exchange related to operative items was
EUR -1 million in 2025 (EUR -21 million). Respectively, the
ineffective portions of derivatives hedging non-operative items
(e.g. interest-bearing financial assets and liabilities, and other
items related to the Group’s funding) are reported under
Financial income and expenses in profit or loss. Ineffectiveness
arising from application of hedge accounting during the
reporting period was insignificant. Should a hedged transaction
no longer be expected to occur, any cumulative gain or loss
previously recognized under Equity is reclassified through OCI to
profit or loss.
When hedging for changes in foreign currency denominated firm
commitments or highly probable forecasted sale and purchase
transactions, the currency component of forward exchange
contracts has been designated as hedging instrument in hedge
accounting relationships in every case. In addition, based on a
case-by-case designation, the interest component of forward
exchange contracts can also be designated as hedging instrument
in hedge accounting relationships. In cases where the interest
component is not designated as part of Valmet’s hedge
accounting relationships, it is recognized in profit or loss.
Valmet has designated interest rate swaps as hedging instruments
to hedge future changes in cash flows arising from Valmet’s
floating rate loans from financial institutions. Interest arising
from interest rate swaps is reported under Financial income and
expenses concurrently with interest expense arising from hedged
floating rate loans from financial institutions.
For highly probable forecasted purchases of electricity, the Group
has designated the system-price component of electricity
purchases as hedged risk and electricity forward contracts as
hedging instruments to hedge accounting relationships. The
realized gains and losses related to the effective portion of the
electricity forward contracts are recognized in the Consolidated
statement of income under Cost of goods sold.
Valmet has designated certain nickel commodity swaps as
hedging instruments in hedge accounting relationship to hedge
risk of changes in the nickel price component in highly probable
forecasted purchase transactions from its suppliers. The realized
gains and losses related to the effective portion of the nickel
average price swap contracts are recognized in the Consolidated
statement of income under Cost of goods sold concurrently with
the underlying hedged transaction.
Fair value hedge accounting
Valmet applies fair value hedge accounting to certain fixed-rate
loans. These fixed-rate loans create an exposure to fixed interest
payments and the hedging instruments, interest rate swaps,
receives fixed interest payments. There is an expectation that the
value of the hedging instrument and the underlying hedged risk
move in opposite direction. The change in fair value of the
interest rate swap hedging the loan is recognized in Financial
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
income and expenses in profit or loss concurrently with the
change in value of the underlying hedged fixed-rate loan.
Derivatives at fair value through profit
or loss
Certain forward exchange contracts, foreign exchange options
and commodity derivatives do not qualify for hedge accounting
and change in fair value is recorded through profit or loss. Gains
or losses arising from derivatives hedging operative items are
recognized case-by-case either in Net sales and Cost of goods sold
or in Other operating income and expenses. When the foreign
exchange derivatives hedge exchange rate risk arising from
foreign currency denominated non-operative items, gains and
losses are recognized in Financial income and expenses in profit
or loss.
Critical accounting estimates
and judgments
Financial instruments
In accordance with the disclosure requirements on financial
instruments, the management is obliged to make certain
assumptions of the related future cash inflows and outflows
associated with different financial assets and liabilities.
Management assumes that the fair values of derivatives,
especially fair values of forward exchange contracts,
materially reflect the present values of future cash inflows or
outflows to be realized from such instruments.
Hedging of foreign currency denominated
firm commitments or highly probable
forecasted sale and purchase transactions
Under Valmet’s treasury policy, all Valmet entities are
required to hedge their foreign currency risk when they have
become engaged in a firm commitment denominated in a
currency different from their functional currency. The
commitment can be between Valmet entities or external to
Valmet Group. In addition, certain highly probable
forecasted sales and purchases are hedged in co-operation
with the Group treasury. When revenue for a customer
contract is recognized over time, the entity applies cash flow
hedge accounting to both foreign currency denominated
sales and purchases and recognizes the effect from the
hedging instruments in the OCI until the hedged sales and/
or purchases are recognized in the Consolidated statement
of income. Although the exposure hedged by Valmet entities
has been clearly defined in Valmet treasury policy, the final
realization of the hedged items depends also on factors
beyond management’s control, which cannot be foreseen
when initiating the hedge relationship. Such factors include
change in the market environment causing the other party to
postpone or cancel the commitment or highly probable
forecasted sale or purchase. Management tries to the extent
possible to include clauses in the related contracts to reduce
the impact of such adverse events to the Consolidated
statement of income.
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
Notional amounts and fair values of derivative financial instruments as at December 31:
2025
2024
EUR million
Notional amount
Fair value, assets
Fair value, liabilities
Fair value, net
Notional amount
Fair value, assets
Fair value, liabilities
Fair value, net
Forward exchange contracts 1
Under hedge accounting (cash flow hedge)
2,910
51
-33
17
2,416
17
-28
-11
Not designated for hedge accounting
1,418
9
-10
-1
1,137
9
-7
2
Total
4,327
60
-44
16
3,553
26
-35
-9
Foreign exchange options (bought)1
Not designated for hedge accounting
150
—
—
—
Electricity forward contracts2
Under hedge accounting (cash flow hedge)
184
—
—
—
160
—
-1
-1
Nickel commodity swaps3
Under hedge accounting (cash flow hedge)
371
—
-1
-1
Not designated for hedge accounting
402
—
—
—
1,112
—
—
—
Total
402
—
—
—
1,483
—
-1
-1
Steel scrap commodity swaps 3
Not designated for hedge accounting
829
—
—
—
1,303
—
—
—
Interest rate swaps 1
Under hedge accounting (cash flow hedge)
610
2
-3
-1
550
2
-6
-4
Under hedge accounting (fair value hedge)
100
1
—
1
100
2
—
2
Total
710
3
-3
—
650
4
-6
-2
Total
63
-47
16
31
-43
-13
Netting fair values of derivative financial
instruments subject to ISDAs4
-40
40
—
-28
28
—
Total, net
24
-8
16
2
-15
-13
1 Notional amount in EUR million.
2 Notional amount in GWh.
3 Notional amount in metric tons.
4 The Group’s derivatives are carried out under International Swaps and Derivatives Association’s Master Agreements (ISDA). In case of an event of default under these Agreements the non-defaulting party may request early termination and set-off of all outstanding transactions.
These agreements do not meet the criteria for offsetting in the Statement of financial position.
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
Maturities of financial derivatives as at December 31:
2025
2024
2026
2027
2028
2029
2030 and
later
Total
2025
2026
2027
2028
2029 and
later
Total
2025
Notional amounts
Forward exchange contracts 1
3,937
387
4
—
—
4,327
3,033
519
1
—
—
3,553
Foreign exchange options 1
—
—
—
—
—
—
150
—
—
—
—
150
Electricity forward contracts2
122
52
9
—
—
184
105
46
9
—
—
160
Nickel commodity swaps3
402
—
—
—
—
402
1,375
108
—
—
—
1,483
Steel scrap commodity swaps 3
829
—
—
—
—
829
1,303
—
—
—
—
1,303
Interest rate swaps 1
200
170
130
140
70
710
120
200
170
60
100
650
Fair values, EUR million
Forward exchange contracts
15
1
—
—
—
16
-5
-4
—
—
—
-9
Foreign exchange options
—
—
—
—
—
—
—
—
—
—
—
—
Electricity forward contracts
—
—
—
—
—
—
—
—
—
—
—
-1
Nickel commodity swaps
—
—
—
—
—
-1
—
—
—
—
-1
Steel scrap commodity swaps
—
—
—
—
—
—
—
—
—
—
—
—
Interest rate swaps
-1
-1
—
1
—
—
—
-1
-1
-1
2
-2
1 Notional amount in EUR million.
2 Notional amount in GWh.
3 Notional amount in metric tons.
The notional amounts presented in the tables above give an
indication of the volume of derivative contracts entered into, but
do not provide an indication of the exposure to risk.
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
10 | Financial income and expenses
EUR million
2025
2024
Dividends received
—
—
Interest income on financial assets at amortized cost
15
20
Interest income on financial assets at fair value through other comprehensive income
(excl. derivatives)
3
2
Net gain from foreign exchange
—
2
Financial income total
18
24
Interest expenses on financial liabilities measured at amortized cost (excl. leases)
-49
-69
Interest expenses on lease liabilities
-11
-8
Net interest from defined benefit plans
-4
-4
Net loss from foreign exchange
-3
—
Interest component from forward contracts
-6
-4
Other financial expenses
-8
-4
Financial expenses total
-80
-90
Financial income and expenses, net
-62
-65
Interest expenses on financial liabilities at amortized cost (excl. leases) includes interest expenses on
interest-bearing loans and interest rate swaps.
Exchange rate differences included in financial income and expenses:
EUR million
2025
2024
Exchange rate differences from interest-bearing financial assets and liabilities,
and other items related to Group’s funding
-2
-3
Exchange rate differences from derivative financial instruments
—
5
Net gain or loss from foreign exchange
-3
2
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
11 | Provisions
Accounting policies
A provision is recognized when Valmet has a present legal or
constructive obligation as a result of a past event, payment is
probable, and Valmet is able to estimate the amount of the
obligation reliably. Provisions are reviewed at the end of each
reporting period and adjusted to reflect the current best estimate
or reversed if they are no longer needed. Long-term provisions
are discounted to their present value based on the expected
timing of cash outflows when the effect of the time value of
money is significant.
Warranty provisions
The Group typically issues contractual product warranties under
which it generally guarantees the mechanical functioning of
equipment delivered during the agreed warranty periods, ranging
from 12 to 24 months. The main principle in measuring the
warranty provision is to book a certain percentage, based on past
experience, of total revenue of a deliverable as a provision for
expected warranty work. For sales involving new technology and
long-term delivery contracts, additional warranty provision may
be established on a case-by-case basis to take into account the
potentially increased risk. The actual warranty costs of each
project are booked against the warranty provision and thus the
remaining warranty provision of each project can be followed.
Actual warranty costs incurred on projects are monitored
regularly in order to assess the need for amending the percentage
based on which warranty provisions are recognized going
forward.
Restructuring provisions
A provision for restructuring costs is recognized only when
general recognition criteria for provision are met and after
management has prepared and approved a formal plan to which
it is committed, and it has raised a valid expectation in those
affected by the measures that it will carry out the restructuring by
starting to implement that plan or announcing its main features.
The costs included in a provision for restructuring are those costs
that are either incremental or incurred as a direct result of the
plan or are the result of a continuing contractual obligation with
no continuing economic benefit to Valmet or a penalty incurred
to cancel the contractual obligation. Restructuring and capacity
adjustment expenses are recognized in either Cost of goods sold
or Selling, general and administrative expenses depending on the
nature of the expense. Restructuring costs may also include other
costs incurred as a result of a restructuring plan, which are
recorded under Other operating income and expenses, such as
asset impairment charges.
Provisions for onerous contracts
A provision for an onerous contract is recognized when the
Group has a contract in which the unavoidable costs of meeting
the obligations under the contract exceed the economic benefits
expected to be received under it. The unavoidable costs under a
contract reflect the least net cost of exiting from the contract,
which is either the cost of fulfilling contractual obligations or
penalties arising from the failure to fulfill those obligations.
Other provisions
Other provisions include provisions related to environment,
personnel, legal and tax related processes. These provisions are
recognized when general provision recognition criteria are met.
Critical accounting estimates and
judgments
The amount recognized as a provision is the best estimate of
the expenditure required to settle the obligation at the
reporting day, taking into account related risks and
uncertainties, management judgment supplemented by
experience with similar transactions and future events when
there is sufficient evidence that they will occur and affect the
amount of payment.
Under contractual warranty clauses, Valmet generally
guarantees the performance of products delivered for a
certain warranty period. The warranty provision is based on
historical realized warranty costs for deliveries of standard
products. The warranty period typically commences from
the date of customer acceptance of the delivered equipment.
For more complex contracts, including long-term projects,
the warranty reserve is calculated contract by contract and
updated regularly to ensure its appropriateness.
Provisions for restructuring costs are recognized when the
requirements for recognition are satisfied. For reasons
beyond the control of management the final costs may differ
from the initial amount for which the provision has been
established.
Valmet recognizes a provision for losses associated with
environmental remediation obligations when such losses are
probable, and a reliable estimate of amounts can be made.
Following initial recognition, the amount of provision is
adjusted later if further information is obtained or
circumstances change.
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
Specification of changes in provisions:
2025
EUR million
Warranty
provisions
Restructuring
provisions
Provisions for
onerous contracts
Other provisions
Total
Balance at beginning of the period
153
7
15
14
190
Translation differences
-1
—
—
—
-1
Additions charged to profit or loss
129
54
5
3
190
Acquired in business combinations
6
—
—
—
6
Provisions used
-84
-36
-3
-5
-129
Unused provisions reversed
-25
-7
-11
-1
-44
Balance at end of the period
178
18
6
11
212
Non-current
18
—
—
1
20
Current
159
17
6
10
192
On March 31, 2025, Valmet announced plans to renew its
operating model. The restructuring provisions in 2025 include an
addition of EUR 52 million related to the change negotiations out
of which EUR 31 million has been used. The remaining
restructuring provision balance for operating model renewal
amounted to EUR 16 million as at December 31, 2025.
Provisions for expected contract losses relate primarily to
long-term projects. The Group did not have material
environmental or product liabilities as at December 31, 2025,
or December 31, 2024.
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
12 | Other current assets
As at December 31
EUR million
2025
2024
Accrued income and prepaid expenses
49
65
VAT, GST and withholding tax receivables
117
133
Other receivables
22
28
Other current assets total
189
226
13 | Other current liabilities
As at December 31
EUR million
2025
2024
Accrued personnel costs
222
223
Accrued project costs
86
110
VAT and withholding tax liabilities
55
66
Accrued expenses and deferred income
98
111
Accrued interest
12
17
Other payables
35
33
Other current liabilities total
508
559
The maturity of payables is largely determined by local trade
practices and individual agreements between Valmet and its
suppliers and rarely exceeds six months. Accrued personnel costs,
which include holiday pay, are settled in accordance with local
laws and stipulations.
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
14 | Personnel expenses and number of personnel
Personnel expenses:
EUR million
2025
2024
Salaries and wages
1,093
1,093
Pension costs, defined contribution plans
109
110
Defined benefit plan costs 1
6
6
Other post-employment benefits
12
12
Share-based payments 2
7
8
Other indirect employee costs
168
164
Total
1,395
1,393
1 For more information, see Note 16.
2 For more information, see Note 15.
Number of personnel:
2025
2024
Personnel at end of the period
18,487
19,310
Average number of personnel
during the period
18,982
19,297
15 | Share-based payments
Accounting policies
Valmet’s share-based incentive plans are part of the
remuneration and retention program for Valmet’s key personnel.
In majority of the jurisdictions where key employees
participating in the Group’s long-term incentive (LTI) plans
reside, Valmet has an obligation to withhold an amount for the
key employee’s tax obligations associated with the share-based
payment rewards, and transfer that amount directly to the tax
authorities on the key employee’s behalf. Thus, the arrangements
carry a net settlement feature and both equity and cash settled
portions of the plans are accounted for against equity.
Non-market vesting conditions, such as Comparable EBITA as a
percentage of net sales, ESG Index, and orders received growth in
the stable business, are used for calculating the number of shares
related to the Group’s LTI plans that are expected to vest. These
estimates are revised at the end of each reporting period and
impact of the revision to previous estimate is recognized through
profit or loss with corresponding adjustment to equity.
The compensation expense for the shares is recognized as an
employee benefit expense evenly during the required service
period whereas the compensation expense resulting from the cash
portion is recognized as an employee benefit expense on accrual
basis between grant and payment date. Valuation of the related
expenses is based on the number of shares expected to vest,
remaining vesting period at the reporting date and Valmet’s
closing share price as at the grant date.
Granted share amounts of the share-based incentive plans, as rounded to thousands:
Plan 2022–2024
Plan 2023–2025
Plan 2024–2026
Plan 2025–2027
2025
At beginning of the period
29,000
48,000
442,000
—
Maximum number of shares to be granted
—
-2,000
-18,000
550,000
Changes due to achievement criteria
—
—
—
-75,000
Actual number of shares granted
-29,000
-2,000
-235,000
—
Shares returned by plan participants
—
2,000
2,000
—
Shares transferred to treasury shares
—
-2,000
-2,000
—
At end of the period
—
44,000
189,000
474,000
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
Long-term incentive plans – Performance
Share Plan and Deferred Share Plan
Long-term incentive plans commenced
2021–2024
The Board of Directors of Valmet Oyj decided in December 2020
on share-based long-term incentive plans; a Performance Share
Plan and a Deferred Share Plan for Valmet’s key employees. The
Performance Share Plan is directed to Valmet’s Executive Team
and the Deferred Share Plan is directed to other key employees in
management positions, and management talents.
The Performance Share Plan includes a three-year performance
period parallel to a one-year performance period. The Deferred
Share Plan includes a one-year performance period. Valmet’s
Board of Directors decides on the predefined performance
measures and targets in the beginning of each performance
period.
In case the rewarded shares are paid after the one-year
performance period from both the Performance Share Plan and
the Deferred Share Plan those may not be transferred during a
two-year restriction period. Should a key employee’s employment
or service end during the restriction period, he or she must, as a
rule, gratuitously return the shares given as reward to the
Company.
The Board has the right to cancel the reward or re-collect paid
rewards that are subject to the Transfer Restriction, fully or
partly, if the LTI plan participant has acted against the law or
against the ethical guidance of the Company or otherwise
unethically.
Long-term incentive plans from 2025
onwards
The Board of Directors of Valmet Oyj decided in December 2024
on establishment of a new long-term share incentive plan; a
Performance Share Plan, for Valmet’s executives and selected key
employees. The Performance Share Plan consists of annually
commencing performance share plans, with a three-year
performance period, within which its participants have the
opportunity to earn shares of the Company based on
achievement of the performance measures. The performance
measures and their target ranges are set separately for each
commencing plan.
Regarding all Valmet LTI plans, as a rule, no reward is paid if the
key employee’s employment or service at Valmet ends before the
reward payment. The earning under the Performance Share Plan
is limited by a pay cap determined by the Board of Directors in
order to avoid unexpectedly high pay-outs resulting from share
price volatility. Additionally, the Board has the right to re-collect
paid rewards after the plan has ended if the LTI plan participant
has caused a misstatement of the information based on which the
reward was paid.
The tables below summarize the key attributes of the long-term
incentive plans that existed during the current or previous period:
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
Performance Share Plans and Deferred Share Plans:
Long-term incentive plans 2022–2024
Long-term incentive plans 2023–2025
Plan name
Performance Share Plan and Deferred Share Plan
Performance Share Plan
Performance Share Plan and Deferred Share Plan
Performance Share Plan
Performance period
2022
2022–2024
2023
2023–2025
Performance measures
Comparable EBITA as a percentage of net sales,
and orders received growth in the stable business1
ESG Index, targets linked to implementing
Valmet’s Climate Program and Sustainability
Agenda
Comparable EBITA as a percentage of net sales,
and orders received growth in the stable business1
Development of a valuation multiple of Valmet’s
share in comparison to peer group
Reward payment
In spring 2023
In spring 2025
In spring 2024
In spring 2026
Participants
Performance Share Plan
14
11
15
13
Deferred Share Plan
114
117
Total gross number of shares
earned
Approximately
176,000 shares
Approximately
29,000 shares
Approximately
151,000 shares
Approximately
44,000 shares
Valmet’s closing share price
as at the grant date
33.63
33.63
28.77
28.77
Vesting period
February 2022 to March 2025
February 2022 to March 2025
February 2023 to March 2026
February 2023 to March 2026
Long-term incentive plans 2024–2026
Long-term incentive plan 2025–2027
Long-term incentive plan 2026–2028
Plan name
Deferred Share Plan
Performance Share Plan
Performance Share Plan
Performance Share Plan
Performance period
2024
2024, 2024–2026
2025–2027
2026–2028
Performance measures
Comparable EBITA as a percentage of net sales,
and orders received growth in the stable business1
Comparable EBITA as a percentage of net sales,
and orders received growth in the stable business1
Development of a valuation multiple of Valmet’s
share in comparison to peer group
Comparable EBITA, organic orders received
growth (%) of the stable business1, and ESG Index
Absolute Total Shareholder Return, organic net
sales growth and emission reduction in own
operations
Reward payment
In spring 2025
In spring 2027
In spring 2028
In spring 2029
Participants
Performance Share Plan
16
163
~200
Deferred Share Plan
192
Total gross number of shares
earned
Approximately 235,000 shares
Approximately 189,000 shares
As at December 31, 2025, approximately 474,000
shares were allotted to participants
The reward to be paid will correspond to a
maximum total of approximately 767,000 shares
Valmet’s closing share price
as at the grant date
25,65
25,65
25,79
Vesting period
February 2024 to March 2027
February 2024 to March 2027
March 2025 to March 2028
February 2026 to March 2029
1 Stable business refers to Process Performance Solutions and biomaterial services.
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
Restricted share pool
As part of total remuneration, for example for retention
purposes, the Board of Directors decided on an additional
incentive element in December 2018, the restricted share pool,
from which shares can be granted to selected key employees.
Restricted share pools are intended to be annually commencing,
and the annual restricted share pool is subject to separate
approval by the Board of Directors. In 2025, approximately
100,000 shares were allocated from the restricted share pool. In
2026, 115,000 Company shares can be allocated to possible
participants in the restricted share pool. As a rule, the restriction
period for these shares is three years. Plan nominations as well as
detailed terms of allocation will be proposed by the President and
CEO to the Chairman of the Board of Directors for approval. A
precondition for the payment of the share reward based on the
restricted shares pool is that a threshold of Valmet Comparable
EBITA is exceeded and that the employment relationship of the
individual participant with Valmet continues until the payment
date of the reward.
Shareholding obligation
To recognize and highlight the importance and value of the
members of Valmet’s Executive Leadership Team owning and
holding Company shares, the Board of Directors has approved in
December 2025 a shareholding obligation for Valmet’s Executive
Leadership Team members. The Executive Leadership Team
members are obligated to hold 100 percent of the shares received
from the plans, until the value of the Executive Leadership Team
member’s total shareholding in Valmet equals to their annual
base salary for the calendar year preceding the payment of the
reward. Such number of Valmet Corporation shares must be held
as long as the membership in the Executive Leadership Team
continues.
Costs recognized for the share
ownership plans
The compensation expense for the shares is recognized as an
employee benefit expense evenly during the required service
period with corresponding entry in equity. The compensation
expense resulting from the cash portion is recognized as an
employee benefit expense on an accrual basis between the grant
and payment date with a corresponding entry made to equity.
The valuation of the related expenses is based on the number of
shares expected to vest, the remaining vesting period at the
reporting date and Valmet’s closing share price as at the
grant date.
Costs arising from share-based payments plans:
EUR thousand
2025
2024
Plan 2021–2023
—
-409
Plan 2022–2024
-272
-1,065
Plan 2023–2025
-818
-1,543
Plan 2024–2026
-2,152
-4,723
Plan 2025–2027
-3,141
—
Restricted share pool
-1,015
-325
Total
-7,398
-8,066
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
16 | Employee benefit obligations
Accounting policies
Pensions and coverage of pension liabilities
Valmet has various employee benefit schemes in place in line
with local regulations and practices in the countries in which
Valmet operates. In certain countries, the schemes involve
defined benefit plans with retirement, disability, death, and other
post-retirement benefits such as health benefits and termination
income benefits. Defined benefit plans are post-employment
benefit plans other than defined contribution plans. In defined
benefit plans, the benefits are usually based on the number of
service years and the salary levels of the final service years. The
schemes are generally funded through payments to insurance
companies or to trustee-administered funds as determined by
periodic actuarial calculations.
In addition, certain entities within Valmet Group have multi-
employer pension arrangements, classified as defined
contribution plans. The contributions to defined contribution
plans and to multi-employer and insured plans are charged to
profit or loss concurrently with the payment obligations. In
defined contribution plans, the Group pays fixed contributions
into a separate entity, and the Group has no legal or constructive
obligation to pay further contributions.
In the case of defined benefit plans, the net defined benefit
liability recognized from the plan is the present value of the
defined benefit obligation at the end of the reporting period,
reduced by the fair value of the plan assets. Independent actuaries
calculate the defined benefit obligation by applying the projected
unit credit method under which the estimated future cash flows
are discounted to their present value using a duration-specific
discount rate. The cost of providing pension and other employee
benefits is charged to profit or loss concurrently with the service
rendered by the employees. The service cost is recorded as part of
personnel expenses in profit or loss, and the net interest is
recorded under financial income and expenses. Actuarial gains
and losses arising from experience adjustments, changes in
actuarial assumptions and actual return on plan assets (excluding
interest income on plan assets) are recognized through OCI
in equity.
Critical accounting estimates
and judgments
The benefit expense and liabilities arising from defined
benefit arrangements are calculated based on assumptions
that include the following:
• The discount rates used to discount employee benefit
obligations (both funded and unfunded): These rates are
determined by reference to market yields at the end of the
reporting period on high-quality corporate bonds. In
countries where there is no deep market in such bonds,
the market yields (at the end of the reporting period) on
government bonds have been used. The currency and
term of the corporate bonds or government bonds are
consistent with the currency and duration of the post-
employment benefit obligations.
• Estimated rates of future pay increases, which include
general pay rise expectations, as well as merit increases.
Actual increases may not reflect estimated future
increases.
Due to the significant uncertainty of the global economy,
these estimates are difficult to project.
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
Amounts recognized in the Consolidated statement of financial position as at December 31:
2025
2024
EUR million
Funded
Unfunded
Total
Funded
Unfunded
Total
Present value of obligation
188
152
340
211
152
363
Fair value of plan assets
-216
—
-216
-236
—
-236
Asset (-) / liability (+)
-27
152
124
-25
152
126
Amounts in the Consolidated statement of financial position
Liabilities
4
152
156
5
152
157
Assets
31
—
31
31
—
31
Net liability
-27
152
124
-25
152
126
Amounts recognized in the Consolidated statement of income:
2025
2024
EUR million
Funded
Unfunded
Total
Funded
Unfunded
Total
Employer’s current service cost
1
4
6
2
4
6
Net interest on net surplus/deficit
-1
5
4
-1
5
4
Total expenses
—
10
10
1
9
10
Changes in the present value of the defined benefit obligation during the period:
2025
2024
EUR million
Funded
Unfunded
Total
Funded
Unfunded
Total
Present value of obligation at beginning of the period
211
152
363
214
152
366
Acquired in business combinations
—
—
—
2
—
2
Employer’s current service cost
1
4
5
2
4
6
Interest expense
10
5
15
10
5
15
Actuarial gain (-) / loss (+) due to change in financial assumptions
3
-10
-8
-9
-2
-11
Actuarial gain (-) / loss (+) due to experience
—
2
2
-3
2
-1
Benefits paid from the arrangements
-14
—
-14
-14
—
-14
Benefits paid directly by employer
—
-7
-7
—
-6
-7
Translation differences
-22
5
-17
10
-3
7
Present value of defined benefit obligation at end of the period
188
152
340
211
152
363
- of which related to active members
115
130
- of which related to deferred members
53
49
- of which related to pensioner members
171
183
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
Changes in the fair value of the plan assets during the period:
2025
2024
EUR million
Funded
Unfunded
Total
Funded
Unfunded
Total
Fair value of plan assets at beginning of the period
236
—
236
220
—
220
Acquired in business combinations
—
—
—
2
—
2
Interest income on assets
11
—
11
11
—
11
Return on plan assets excluding interest income
2
—
2
1
—
1
Employer contributions
5
—
5
5
—
5
Benefits paid from the arrangements
-14
—
-14
-14
—
-14
Translation differences
-25
—
-25
12
—
12
Fair value of plan assets at end of the period
216
—
216
236
—
236
Remeasurement of the net defined benefit liability/asset reported in other comprehensive income:
2025
2024
EUR million
Funded
Unfunded
Total
Funded
Unfunded
Total
Experience gain (-) / loss (+) on assets
-2
—
-2
-1
—
-1
Actuarial gain (-) / loss (+) on liabilities due to change in financial assumptions
3
-10
-7
-9
-2
-11
Actuarial gain (-) / loss (+) on liabilities due to experience
—
2
2
-3
2
-1
Total gain (-) / loss (+)
—
-8
-8
-14
1
-13
The major categories of plan assets as a percentage of total plan assets of Valmet’s defined benefit plans:
2025
2024
As at December 31
Quoted
Unquoted
Total
Quoted
Unquoted
Total
Equities
6%
—
6%
10%
—
10%
Bonds
84%
—
84%
80%
—
80%
Other
2%
8%
10%
1%
8%
10%
Total
92%
8%
100%
92%
8%
100%
On December 31, 2025, there were no plan assets invested in
affiliated companies or property occupied by affiliated
companies.
The principal actuarial assumptions used to determine the defined benefit obligation (expressed as weighted averages):
2025
2024
As at December 31
Funded
Unfunded
All plans
Funded
Unfunded
All plans
Discount rate
5.0%
4.0%
4.6%
5.2%
3.7%
4.6%
Salary increase
2.9%
2.9%
2.9%
2.9%
2.9%
2.9%
Pension increase
1.0%
2.0%
1.4%
1.1%
2.0%
1.4%
Medical cost trend rates
—
4.5%
4.5%
—
4.5%
4.5%
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The weighted average life expectancy used for the major defined benefit plans:
Life expectancy at age 65 for a male participant
currently aged 65
Life expectancy at age 65 for a female participant
currently aged 65
Expressed in years
2025
2024
2025
2024
Sweden
22
22
24
24
Canada
22
22
24
24
USA
21
21
23
23
Finland
21
21
26
26
Life expectancy at age 65 for a male participant
currently aged 45
Life expectancy at age 65 for a female participant
currently aged 45
Expressed in years
2025
2024
2025
2024
Sweden
22
24
24
26
Canada
23
23
25
25
USA
23
23
25
24
Finland
24
24
28
28
Life expectancy is allowed for in the assessment of the defined
benefit obligation using mortality tables, which are generally
based on experience within the country in which the arrangement
is located, with an allowance made for anticipated future
improvements in longevity in many cases.
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Sensitivity analysis of present value of the defined benefit obligation as at December 31:
2025
2024
EUR million
Funded
Unfunded
Total
Funded
Unfunded
Total
Discount rate
Increase of 0.25%
-4
-6
-10
-5
-6
-11
Decrease of 0.25%
4
6
10
5
6
11
Salary increase rate
Increase of 0.25%
—
3
4
—
4
4
Decrease of 0.25%
—
-3
-3
—
-3
-4
Pension increase rate
Increase of 0.25%
—
4
4
—
4
4
Decrease of 0.25%
—
-4
-4
—
-4
-4
Medical cost trend
Increase of 1%
—
—
—
—
—
—
Decrease of 1%
—
—
—
—
—
—
Life expectancy
Increase of one year
5
5
10
6
5
11
Decrease of one year
-5
-5
-10
-6
-5
-11
The table above presents the changes in the value of the defined
benefit obligation when major assumptions are changed, while
holding the others constant.
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Weighted average duration of the defined benefit obligation as at December 31:
2025
2024
Expressed in years
Funded
Unfunded
All plans
Funded
Unfunded
All plans
Weighted average duration
9
17
13
9
18
13
Valmet sponsors both defined contribution and defined benefit
arrangements. Valmet operates various defined benefit pension
and other long-term employee benefit arrangements pursuant to
local conditions, practices and collective bargaining agreements
in the countries in which it operates. The majority of Valmet’s
defined benefit liabilities relate to arrangements that are funded
through payments to either insurance companies or to
independently administered funds based on periodic actuarial
calculations. Other arrangements are unfunded, with benefits
being paid directly by Valmet as they fall due. All arrangements
are subject to local tax and legal restrictions in their respective
jurisdictions. Valmet’s defined benefit arrangements in the USA,
Canada and Sweden together represent 85 percent of Valmet’s
defined benefit obligation and 91 percent of its pension assets.
These arrangements provide income in retirement, which is
substantially based on salary and service at or near retirement.
In the USA and Canada, annual valuations are carried out to
determine whether cash funding contributions are required in
accordance with local legislation.
Defined benefit pension arrangements in Sweden are offered in
accordance with collective labor agreements and are unfunded.
The liability recorded on Valmet’s balance sheet and cash
contributions to funded arrangements are sensitive to the
assumptions used to measure the liabilities, the extent to which
actual experience differs from the assumptions made and the
returns on plan assets. Therefore, Valmet is exposed to the risk
that balance sheet liabilities and/or cash contributions will
increase due to these impacts.
The assets of Valmet’s funded arrangements are managed by
external fund managers. The allocation of assets is reviewed
regularly by those responsible for managing Valmet’s
arrangements based on local legislation, professional advice and
consultation with Valmet, based on acceptable risk tolerances.
The expected contributions to defined benefit type arrangements
in 2026 are EUR 0.1 million in respect of Finnish plans and
EUR 5 million in respect of foreign plans. Valmet paid
contributions of EUR 109 million (EUR 110 million) to defined
contribution arrangements during 2025.
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17 | Income taxes
Accounting policies
Tax expense in the profit or loss comprises current and deferred
taxes. Taxes are recognized in profit or loss unless they are
associated with items recognized in the Consolidated statement
of comprehensive income or directly in equity.
Current taxes are calculated on the taxable income based on the
tax rates enacted or substantively enacted for each country as at
the balance sheet date. Additionally, non-recoverable foreign
taxes on financing transactions or transactions with shareholders
that are not based on taxable profits are reported in Current tax
expenses. Non-recoverable withholding taxes and foreign taxes
on operative items are reported in Other operating income and
expenses. These non-recoverable foreign taxes include taxes paid
that are not creditable based on the applicable Double Tax Treaty.
Taxes are adjusted for taxes of previous financial periods if
applicable. Interest calculated for the unpaid tax amounts is
reported under Financial expenses.
Management evaluates positions taken in tax returns with respect
to situations in which applicable tax regulation is subject to
interpretation. The tax provisions recognized in such situations
are based on evaluations by management of the probability that
the items subject to interpretation reported to the tax authorities
can be substantiated on examination.
Deferred taxes are calculated on temporary differences between
the tax bases of assets and liabilities and their carrying amounts
in the financial statements. Deferred taxes have been calculated
using the statutory tax rates or the tax rates enacted or
substantively enacted as at the reporting date. Deferred tax assets
are only recognized to the extent that it is probable that a future
taxable profit will be available against which the temporary
differences can be utilized.
The most significant temporary differences arise from differences
in revenue recognition methods applied for tax purposes,
depreciation differences relating to property, plant and
equipment, treatment of costs arising from defined benefit
pension plans, provisions deductible at a later date, fair value
measurement of assets and liabilities in connection with business
combinations, and unused tax losses. Deferred taxes are not
recognized on initial recognition of an asset or liability in a
transaction other than a business combination that does not
affect accounting or tax profit and does not give rise to equal
taxable and deductible temporary differences. Deferred tax assets
and liabilities are offset when there is a legally enforceable right to
offset current tax assets against current tax liabilities, and when
the deferred income tax assets and liabilities are related to income
taxes levied by the same taxation authority on either the same
taxable entity or different taxable entities where there is an
intention to settle the balances on a net basis.
The legislation implementing the OECD Pillar Two model rules
was enacted in Finland in 2023 and came into effect from
January 1, 2024. Valmet applies the exception to recognizing and
disclosing information about deferred tax assets and liabilities
related to Pillar Two income taxes, as provided in the
amendments to IAS 12 issued in May 2023. There were no
material current tax impacts in 2025 from Pillar Two taxes.
Critical accounting estimates and
judgments
Deferred tax assets and liabilities are recognized for temporary
differences. They are expected to be realized through the
income statement over extended periods in the future. Valmet
management has made certain assumptions regarding future
tax consequences and has used certain estimates when
calculating differences between carrying amounts of assets and
liabilities and their tax bases. Key assumptions underlying tax
calculations include the likelihood that recoverability periods
for tax loss carryforwards will not change, and that existing tax
laws and rates will remain unchanged for the foreseeable future.
On each balance sheet date, deferred tax assets are assessed for
recoverability, and when circumstances indicate that it is no
longer probable that deferred tax assets can be recovered,
balances are reduced to their recoverable amounts.
Liabilities and assets are recognized with respect to the income
tax amounts management is expecting to pay and recover
respectively. Management has chosen not to discount non-
current tax balances. Valmet entities are subject to tax audits on
an ongoing basis. Complex and constantly changing regulations
in multiple jurisdictions where Valmet operates create
uncertainties related to tax obligations toward the authorities.
Changes in the tax authorities’ interpretations could have
unfavorable impact on Valmet’s financials.
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The differences between income tax expense computed at the
Finnish statutory rate (20 percent in 2025 and 2024) and income
tax expense recognized in profit or loss are shown in the
table below.
EUR million
2025
2024
Profit before taxes
376
383
Taxes calculated according to tax rate in Finland
-75
-77
Impact of changes in tax rates
—
—
Income tax for previous years
-8
6
Net increase (decrease) in uncertain tax positions
-10
—
Effect of different tax rates in foreign subsidiaries
-10
-15
Utilization of tax losses carried forward
-1
-1
Non-recoverable foreign taxes
-12
-12
Adjustment and revaluation of deferred taxes for previous years1
15
1
Effect of tax-free income and non-deductible expenses
1
-3
Other
4
-2
Income tax expense
-96
-103
Effective tax rate, (%)
25.7%
26.8%
Effective tax rate (%), excluding income tax for previous years
20.9%
28.5%
1 In 2025, mainly includes benefit from previously unrecognized deferred tax assets in the USA and change from deferred taxes in Finland.
Tax effects of components in other comprehensive income:
2025
2024
EUR million
Before taxes
Tax
After taxes
Before taxes
Tax
After taxes
Gains and losses on cash flow hedges
15
-3
12
-8
2
-6
Change in fair value reserve
—
—
—
1
—
1
Remeasurement of defined benefit plans
8
-1
6
13
-3
10
Currency translation on subsidiary net investments
-73
—
-73
2
—
2
Share of other comprehensive income of associated companies  accounted for using equity method
-1
—
-1
—
—
—
Total comprehensive income for the period
-50
-4
-55
8
-2
6
Deferred tax
—
-4
—
—
-2
—
Total
—
-4
—
—
-2
—
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
Reconciliation of deferred tax balances:
2025
2024
EUR million
Balance at
beginning of
the period
Translation
differences
Charged to
income
statement
Charged to
other
compre-
hensive
income
Acquired in
business
combination
Balance at
end of the
period
Balance at
beginning of
the period
Translation
differences
Charged to
income
statement
Charged to
other
compre-
hensive
income
Acquired in
business
combination
Balance at
end of the
period
Deferred tax assets
Tax losses carried forward
8
—
-1
-1
—
5
5
—
2
—
—
8
Fixed assets
9
—
—
—
—
8
8
—
1
—
—
9
Leases
32
-1
6
—
—
37
31
—
—
—
1
32
Inventory
21
-1
3
—
-1
21
16
—
-2
—
5
21
Provisions
35
-1
3
—
1
39
41
-3
-4
—
—
35
Accruals
10
-1
5
1
—
15
11
—
-2
—
—
10
Employee benefits
1
1
-2
-1
—
-1
6
—
-2
-4
1
1
Other
42
—
—
-3
—
39
28
—
8
2
5
42
Total deferred tax assets
158
-4
14
-4
-1
163
148
-3
2
-2
13
158
Offset against deferred tax liabilities1
-64
-67
-59
-64
Net deferred tax assets
94
96
90
94
Deferred tax liabilities
Purchase price allocations
293
-4
-31
—
—
258
292
2
-19
—
18
293
Fixed assets
11
-1
—
—
—
10
9
—
1
—
—
11
Leases
34
-1
5
—
—
38
33
—
—
—
1
34
Other
11
-1
-3
—
—
7
7
—
3
—
—
11
Total deferred tax liabilities
348
-6
-28
—
—
313
341
3
-16
1
20
348
Offset against deferred tax assets1
-64
-66
-58
-64
Net deferred tax liabilities
284
246
283
284
1 Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset tax assets against tax liabilities, and when the deferred income taxes relate to the same fiscal authority.
A deferred tax liability on undistributed profits of Valmet’s legal
entities located in countries where distribution generates tax
consequences is recognized when it is likely that earnings will be
distributed in the near future. For the years ended December 31,
2025 and 2024, earnings of EUR 64 million and EUR 67 million
respectively would have been subject to recognition of a deferred
tax liability had Valmet regarded a distribution in the near future
as likely.
A deferred tax asset is recognized for tax loss carryforwards to the
extent that the realization of the related tax benefit through future
taxable profits is probable. There were no material tax loss
carryforwards for which a deferred tax asset had not been
recognized. Valmet has tax loss carryforwards of EUR 11 million
(EUR 15 million) that will expire within the next five years.
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18 | Equity
Share capital and number of shares
2025
2024
Share capital at end of the period, EUR
140,000,000
140,000,000
Number of shares at end of the period
184,529,605
184,529,605
Treasury shares at end of the period
297,175
364,258
Shares outstanding at end of the period
184,232,430
184,165,347
Average number of shares outstanding during the financial year
184,203,699
184,159,071
Valmet Oyj has one series of shares. The shares of Valmet Oyj do
not have a nominal value.
Board authorizations regarding shares
Valmet Oyj’s Annual General Meeting 2024 authorized Valmet’s
Board of Directors to decide on the repurchase of a maximum
number of 9,200,000 of the Company’s own shares in one or
several tranches. This corresponds to approximately 5.0 percent
of all the shares in the Company. Under the authorization,
Valmet repurchased 115,000 of the Company’s own shares
in 2025.
Valmet Oyj’s Annual General Meeting 2025 authorized Valmet’s
Board of Directors to decide on the repurchase of a maximum
number of 9,200,000 of the Company’s own shares in one or
several tranches. This corresponds to approximately 5.0 percent
of all the shares in the Company.
The Annual General Meeting 2025 also authorized Valmet’s
Board of Directors to decide on the issuance of shares and the
issuance of special rights entitling to shares in one or several
tranches. Based on this authorization, a maximum number of
18,500,000 shares may be issued, corresponding to approximately
10.0 percent of all the shares in Valmet.
Treasury shares
As at December 31, 2025, Valmet Oyj held 297,175 (364,258) of
its own shares. These shares have been acquired through
purchase on the Helsinki Stock Exchange (Nasdaq Helsinki Ltd).
The total amount paid to acquire Valmet’s own shares during the
reporting period, including transaction costs, was EUR 3 million
(EUR 3 million), and it has been deducted from Retained
earnings in Equity. Own shares have been acquired for the
purposes of Valmet’s long-term incentive plans.
Dividends
The Board of Directors proposes that a dividend of EUR 1.35 per
share be paid based on the Consolidated statement of financial
position to be adopted for the financial year ended December 31,
2025, and that the remaining part of the Retained earnings be
carried forward in Valmet Oyj’s unrestricted equity. These
financial statements do not reflect this dividend payable of
EUR 249 million.
In compliance with the resolution of the Annual General
Meeting, Valmet paid out dividend of EUR 249 million for 2024,
corresponding to EUR 1.35 per share. The dividend was paid in
two installments, the first corresponding to EUR 0.68 per share
and the second corresponding to EUR 0.67 per share. The first
installment, EUR 125 million, was paid on April 8, 2025.
The second installment, EUR 123 million, was paid on
October 7, 2025.
Reserve for invested unrestricted equity
The reserve for invested unrestricted equity includes other
equity-related investments and share subscription prices to the
extent not designated to be included in share capital. The reserve
for invested non-restricted equity fund in Valmet’s Consolidated
statement of financial position consists of the fund held by the
parent company Valmet Oyj.
Hedge and other reserves
The hedge reserve includes effective portion of fair value
movements related to derivative financial instruments, which
qualify for hedge accounting.
The fair value reserve includes changes in fair values of interest-
bearing financial assets classified as fair value through other
comprehensive income.
The legal reserve consists of restricted equity, which has been
transferred from distributable funds under the Articles of
Association, local company law or by a decision of the
shareholders.
Cumulative translation adjustments
Cumulative translation adjustments consist of currency
translation differences, which relate to the translation of foreign
operations from their functional currencies to Valmet Group’s
reporting currency euro.
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19 | Selling, general and administrative expenses
Selling, general and administrative expenses:
EUR million
2025
2024
Marketing and selling expenses
498
495
Research and development expenses, net
126
123
Administrative expenses
361
383
Selling, general and administrative expenses total
986
1,000
Research and development expenses:
EUR million
2025
2024
Research and development costs
146
140
Recognized in fixed assets
-16
-15
Grants received
-9
-7
Depreciation and amortization
5
5
Research and development expenses total
126
123
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
20 | Other operating income and expenses
EUR million
2025
2024
Gain on sale of fixed assets
2
1
Reversal of allowance for doubtful receivables and contract assets
4
4
Net gain from foreign exchange
—
—
Interest component from forward contracts
—
—
Commodity derivatives
—
—
Insurance compensation1
—
6
Income related to tax and customs duty adjustments
2
2
Other income2
16
13
Other operating income, total
25
25
Impairment of fixed assets and right-of-use assets
-6
-13
Net loss from foreign exchange
-3
-10
Interest component from forward contracts
-8
-8
Commodity derivatives
-1
—
Non-recoverable foreign taxes
-2
-8
Allowance for doubtful receivables and contract assets
-16
-10
Other expenses2
-15
-9
Other operating expenses, total
-53
-59
Other operating income and expenses, net
-28
-34
1 Insurance compensation in 2024, EUR 6 million, mainly relates to income compensating the costs of a fire that happened in May 2022 at Valmet’s Rautpohja factory site in
Jyväskylä.
2 Includes in 2025 a settlement agreement in the Biomaterial Solutions and Services segment, following a delivery made earlier. The delivery required corrective actions and led to a
commercial dispute, which has been resolved.
Exchange rate differences included in Other operating income and expenses:
EUR million
2025
2024
Exchange rate differences from trade receivables and payables
-23
-14
Exchange rate differences from derivative financial instruments
20
4
Net gain/loss from foreign exchange
-3
-10
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
21 | Business combinations
Valmet made no acquisitions or divestitures during the financial
year 2025.
On December 22, 2025, Valmet announced it has entered into an
agreement to acquire an industrial valve company Severn Group.
The acquisition is estimated to be completed during the second
quarter of 2026, subject to customary closing conditions.
Acquisition of Process Gas
Chromatography business from Siemens
The acquisition of the Process Gas Chromatography &
Integration business from Siemens AG, announced on July
17, 2023, was completed on April 2, 2024. The business
combination accounting was finalized on March 31, 2025, and no
material changes were made to the provisional amounts
recognized as at December 31, 2024. The final goodwill
recognized was EUR 29 million.
Acquisition of FactoryPal
Valmet and Körber have on August 1, 2024, closed the agreement
for Valmet to acquire majority shares in FactoryPal GmbH, an
undertaking of Körber. Following the transaction, Valmet owns
75.1 percent of the shares in the company. The business
combination accounting was finalized on June 30, 2025, and no
material changes were made to the provisional amounts
recognized as at December 31, 2024.
Acquisition of Demuth
On August 2, 2024, Valmet completed the acquisition of Demuth
in Brazil. The business combination accounting was finalized on
June 30, 2025, and no material changes were made to the
provisional amounts recognized as at December 31, 2024.
22 | Financial risk management
As a global Group, Valmet is exposed to a variety of business and
financial risks. Financial risks are managed centrally by the
Group treasury (hereafter Treasury) under annually reviewed
written policies approved by Valmet’s Board of Directors.
Treasury identifies, evaluates and hedges financial risks in close
co-operation with the subsidiaries. Treasury functions as
counterparty to the subsidiaries, manages centrally external
funding and is responsible for the management of financial assets
and appropriate hedging measures. The objective of financial risk
management is to mitigate potential adverse effects of financial
risks on Valmet’s financial performance.
Lease liabilities recognized in the Consolidated statement of
financial position are part of Valmet’s interest-bearing liabilities.
To present information focused on the Group’s long-term
funding and related financial risks, figures presented in this note
regarding liquidity and refinancing risk, capital structure and
interest rate risk management, exclude the impact of lease
liabilities. More information regarding leases is presented in
Note 5.
Sensitivity analysis
Sensitivity analysis presented in connection with various financial
risks is based on the risk exposures at the end of the reporting
period.
Sensitivities are calculated by assuming a change in one of the
risk factors of a financial instrument, such as interest or currency
rate. Sensitivity calculations are based on the changes in the
relevant risk variable that are reasonably possible. The reasonably
possible changes are assumed to be a variation of 1 percentage
point (100 basis points) in interest rates, and a 10 percent change
in foreign exchange rates and in commodity prices.
Liquidity and refinancing risk
management
Liquidity or refinancing risk arises when a company is not able to
arrange funding at terms and conditions corresponding to its
creditworthiness. Cautious maturity distribution of interest-
bearing debt and sufficient cash, short-term investments and
committed and uncommitted credit facilities are maintained to
protect short-term liquidity and to manage refinancing risk.
Diversification of funding among different markets and an
adequate number of financial institutions are used to safeguard
the availability of liquidity at all times. Treasury monitors bank
account structures, cash balances and forecasts of the subsidiaries
and manages the utilization of the consolidated cash resources.
At the end of the reporting period Cash and cash equivalents
amounted to EUR 535 million (EUR 482 million) and current
interest-bearing financial assets managed centrally by Treasury to
EUR 22 million (EUR 30 million). Due to the global nature of
operations, some of the Valmet subsidiaries are located in
countries in which currency is subject to limited exchangeability
or capital controls. Given Valmet’s total liquidity position,
balances in such countries are immaterial.
In 2025, new loans worth EUR 281 million were drawn, all of
which related to the EUR 375 million Schuldschein loan
transaction. The Schuldschein loan transaction consists of
11 tranches with both fixed and floating interest rate structures
and offers a diversified maturity profile of three, five, seven and
ten years, with an average maturity of nearly six years.
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
In 2025, Valmet signed a new EUR 450 million committed multi-
currency revolving credit facility agreement. The facility has a
tenor of five years with two one-year extension options subject to
the lenders’ approval. The new facility refinances the earlier
EUR 300 million revolving credit facility dated October 2021. The
facility was undrawn at the end of the reporting period. Liquidity
was additionally secured by an uncommitted commercial paper
program worth of EUR 300 million, of which EUR 10 million was
outstanding at the end of the reporting period and undrawn
overdraft limits of EUR 15 million.
Net working capital management is an integral part of the
liquidity risk management. Treasury monitors and forecasts net
working capital fluctuations in close co-operation with the
subsidiaries. Net working capital decreased to EUR 29 million
(EUR 134 million) as at December 31, 2025.
Group’s refinancing risk is managed by balancing the proportion
of current and non-current interest-bearing debt and average
maturity of non-current interest-bearing debt. The average
maturity of non-current interest-bearing debt, including current
portion, as at December 31, 2025, was 3.3 years (3.4 years). The
amount of current interest-bearing debt, including current
portion of non-current interest-bearing debt, was 10 percent (8%)
of total debt portfolio. As at December 31, 2025, Valmet’s
interest-bearing liabilities consist of debt and lease liabilities, and
debt portfolio includes loans from financial institutions, issued
bonds and commercial papers.
The table below presents undiscounted cash flows on the
repayments and interests on Valmet’s financial liabilities (excl.
lease liabilities and derivatives) as at December 31, 2025 and 2024
by the remaining maturities from the balance sheet date to the
contractual maturity date. The remaining maturities of lease
liabilities are presented in Note 5, and correspondingly remaining
maturities of derivatives in Note 9.
2025
2024
EUR million
2026
2027
2028
2029
2030 and later
2025
2026
2027
2028
2029 and later
Loans from financial institutions
Repayments
99
249
127
85
492
94
49
349
377
296
Interests
32
27
21
19
24
47
44
36
17
24
Bonds
Repayments
—
—
—
200
—
—
—
—
—
200
Interests
8
8
8
8
—
8
8
8
8
8
Trade payables and other current financial liabilities
533
—
—
—
—
481
—
—
—
—
Total
672
284
156
312
516
630
101
393
402
528
The information presented in above table excludes the impact of lease liabilities and derivatives.
Capital structure management
Valmet's capital structure management aims to safeguard the
continuity of business operations, ensure flexible access to capital
markets and secure adequate funding at competitive rates. The
Company's capital structure consists of both equity and interest-
bearing debt. As at December 31, 2025, total equity was
EUR 2,590 million (EUR 2,614 million) and the amount of
interest-bearing debt was EUR 1,285 million (EUR 1,387 million).
Valmet's objective is to maintain a strong capital structure that
supports the confidence of customers, investors, creditors and the
market. In 2025, Valmet disclosed new 2030 financial targets of
which one is to target a gearing level below 50%. The capital
structure is assessed regularly by the Board of Directors and
managed operationally by Treasury. Loan facility agreements
include customary covenants and Valmet is in clear compliance
with the covenants at the end of the reporting period. Valmet had
no credit rating at December 31, 2025.
Capital structure as at December 31
EUR million
2025
2024
Interest-bearing debt
1,285
1,387
Cash and cash equivalents
535
482
Interest-bearing financial assets
44
55
Interest-bearing net debt
706
850
Total equity
2,590
2,614
The information presented in above table excludes the impact of lease liabilities.
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
Interest rate risk management
Interest rate risk arises when changes in market interest rates and
interest margins influence finance costs, returns on financial
investments and valuation of interest-bearing items. The interest
rate risk is managed and controlled by Treasury. The interest rate
risks are managed through balancing the ratio between fixed and
floating interest rates and duration of interest-bearing debt and
interest-bearing financial assets. Additionally, Valmet may use
derivative instruments such as forward rate agreements, swaps,
options and futures contracts to mitigate the risks arising from
interest-bearing assets and liabilities. The ratio of fixed rate debt
of the total debt portfolio is required to stay within the
10–60 percent range including the interest rate derivatives. The
duration of the non-current interest-bearing debt, including the
current portion, and the interest rate derivatives is allowed to
deviate between 6–42 months.
The fixed rate interest portion was 50 percent (49%), the duration
was 1.5 years (1.2 years) and the EUR denominated debt of the
total debt portfolio was 98 percent (99%) at the end of 2025. The
basis for the interest rate risk sensitivity analysis is an aggregate
Group level interest rate exposure, composed of interest-bearing
financial assets, interest-bearing liabilities (excl. leases) and
interest rate swaps, which are used to hedge the underlying
exposures. The sensitivity analysis does not include the interest
component of foreign exchange derivatives since the impact of a
one percentage point change in interest rates is not significant,
assuming similar change in all currency pairs at the same time.
For all interest-bearing debt, assets and interest rate derivatives to
be fixed during the next 12 months a change of one percentage
point upwards or downwards in interest rates with all other
variables held constant would have following effect, net of taxes:
EUR million
2025
2024
Profit for the period
-/+ 1.7
-/+ 2.2
Equity
+/- 6.3
+/- 6.9
The information presented in above table excludes the impact of lease liabilities.
Valmet has used interest rate derivatives to hedge the interest rate
risk of its debt portfolio. All interest rate swaps have been
designated to either cash flow or fair value hedge accounting
relationships. The nominal and fair values of the outstanding
interest rate derivative contracts are presented in Note 9.
Foreign exchange rate risk management
Valmet operates globally and is exposed to foreign exchange risk
in several currencies, although the geographical diversity of
operations decreases the significance of any individual currency.
Substantial proportion of Valmet’s net sales and costs are
generated in euros (EUR), US dollars (USD), Swedish kronas
(SEK) and Chinese yuans (CNY).
Transaction exposure
Foreign exchange transaction exposure arises when a subsidiary
has commercial or financial transactions and payments in
another currency than its own functional currency and when
related cash inflow and outflow amounts are not equal or
concurrent.
In accordance with Valmet’s treasury policy, subsidiaries are
required to hedge in full the foreign currency exposures on the
Consolidated statement of financial position and other firm
commitments. Cash flows denominated in a currency other than
the functional currency of the subsidiary are hedged with internal
forward exchange contracts with Treasury for periods, which do
not usually exceed two years. Subsidiaries also carry out hedging
directly with the banks in countries where the regulation does not
allow corporate internal cross-border contracts. Treasury
monitors the net position of each currency and decides to what
extent a currency position is to be closed. Treasury is responsible
for entering into external forward transactions corresponding to
the internal forwards whenever a subsidiary applies hedge
accounting. Valmet’s treasury policy defines upper limits on the
open currency exposures managed by Treasury; limits have been
calculated on the basis of their potential profit or loss impact. To
manage the foreign currency exposure Treasury may use forward
exchange contracts and foreign exchange options. Valmet is
exposed to foreign currency risk arising from both on and off-
balance sheet items. The foreign currency exposure is composed
of all assets and liabilities denominated in foreign currencies and
their counter values in local currencies. Calculation includes
external and internal short- and long-term sales and purchase
contracts, projected cash flows for unrecognized firm
commitments and financial items, net of respective hedges.
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
The following table illustrates Group’s outstanding foreign
currency risk as at December 31:
2025
2024
EUR million
EUR
SEK
USD
CNY
Others
EUR
SEK
USD
CNY
Others
Operational items
-6
343
-284
-201
149
239
-363
343
-228
9
of which trade receivables and other current assets
-70
83
-119
62
44
-22
-168
120
49
21
of which trade payables and other current liabilities
-9
-27
56
-43
23
-8
49
-16
-45
19
Financial items
547
-354
-182
-119
107
101
-92
13
-153
131
Hedges
-583
46
477
323
-263
-326
449
-330
357
-151
under hedge accounting
-524
175
220
228
-99
-323
257
-231
252
46
not qualifying for hedge accounting
-59
-129
258
94
-164
-2
192
-99
105
-196
Total exposure
-43
35
12
2
-7
14
-6
26
-24
-10
This Group level currency exposure is the basis for the sensitivity
analysis of foreign exchange risk. Assuming euro to appreciate or
depreciate 10 percent against all other currencies, the impact as at
December 31 on cash flows, net of taxes, would be:
2025
2024
EUR million
SEK
USD
CNY
Others
Total
SEK
USD
CNY
Others
Total
EUR +/- 10% change
-/+ 2.8
-/+ 0.9
-/+ 0.2
+/- 0.5
-/+ 3.4
+/- 0.5
-/+ 2.1
+/- 1.9
+/- 0.8
+/- 1.1
The sensitivity analysis as required by IFRS 7, includes financial
instruments, such as trade and other receivables, trade and other
payables, interest-bearing liabilities, deposits, cash and cash
equivalents and derivative financial instruments.
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
The table below presents the effects, net of taxes, of a
+/- 10 percent change in EUR against all other currencies:
EUR million
2025
2024
Profit for the period
-/+ 0.1
+/- 5.4
Equity
-/+ 41.9
-/+ 25.9
Changes in fair value of derivative contracts that qualify for cash
flow hedge accounting are recorded in equity. The effect in profit
or loss is the change in fair value for all other financial
instruments exposed to foreign exchange risk.
The nominal and fair values of the outstanding forward exchange
contracts are presented in Note 9.
Translation or equity exposure
Foreign exchange translation exposure arises when goodwill or
fair value step-ups, or the equity of a subsidiary, is denominated
in a currency other than the functional currency of the parent
company. As at December 31, 2025, the total non-EUR
denominated goodwill and fair value step-ups, and equity of the
subsidiaries, was EUR 1,000 million (EUR 1,073 million). The
major translation exposures were in 2025 EUR 334 million in
USD and EUR 201 million in CNY, and respectively in 2024
EUR 428 million in USD and EUR 234 million in CNY. Valmet is
currently not hedging any equity exposure.
Commodity risk management
Valmet is exposed to risks arising from fluctuations in the prices
of raw materials and of supplies, including energy. Subsidiaries
identify their commodity price hedging needs and the related
hedges have been executed centrally by Treasury using approved
counterparties and instruments. Separate overall hedging limits
are defined and approved for managing commodity risks.
Hedging is performed on a rolling basis, with a declining hedging
level over time. Electricity exposure in the Nordic subsidiaries has
been hedged with electricity forwards and fixed price physical
contracts. Hedging is focused on the estimated energy
consumption for the next two-year period with some contracts
extended to approximately five years. The execution of electricity
hedging has been outsourced to an external broker. As at
December 31, 2025, Valmet had outstanding electricity forwards
amounting to 184 GWh (160 GWh) and 175 GWh (175 GWh)
under fixed price purchase agreements.
To reduce its exposure to the volatility caused by the surcharge
for certain metal alloys (Alloy Adjustment Factor) comprised in
the price of stainless steel charged by its suppliers, Valmet may
enter into average-price swap agreements for nickel. The Alloy
Adjustment Factor is based on monthly average prices of its
components of which nickel is the most significant. Also, to
reduce steel scrap price risk in Valmet’s own foundry operations,
Valmet can hedge steel scrap prices using average price swap
agreements. As at December 31, 2025, Valmet had 402 metric
tons outstanding average price swap agreements for nickel
(1,483 metric tons) and 829 metric tons for steel scrap
(1,303 metric tons).
The following table presenting the sensitivity analysis of the
commodity prices comprises the net aggregate amount of
commodities bought through forward contracts and swaps but
excludes the anticipated future consumption of raw materials and
electricity. A 10 percent change upwards or downwards in
commodity prices would have the following effects, net of taxes:
EUR million
2025
2024
Electricity - effect in equity
+/- 0.3
+/- 0.4
Nickel - effect in profit for the period
+/- 0.4
+/- 1.3
Nickel - effect in equity
—
+/- 0.4
Steel scrap - effect in profit for the period
+/-0.0
+/- 0.0
Cash flow hedge accounting has been applied to electricity
forward contracts and to certain nickel forward agreements and
the change in fair value is recognized in equity. Hedge accounting
is not applied to remaining nickel agreements nor any steel scrap
agreements and the change in the fair value is recorded through
Consolidated statement of income.
Credit and counterparty risk
management
Credit or counterparty risk is defined as the possibility of a
customer, subcontractor or a financial counterparty not fulfilling
its commitments towards Valmet. Subsidiaries are primarily
responsible for credit risks pertaining to sales and procurement
activities. The subsidiaries assess the credit standing of their
customers, by taking into account their financial position, past
experience and other relevant factors. Advance payments, letters
of credit and third-party guarantees are actively used to mitigate
credit risks. Treasury provides centralized services related to
trade, project and customer financing and seeks to ensure that the
principles of Valmet’s treasury policy are adhered to with respect
to terms of payment and required collateral. Valmet has no
significant concentrations of credit risks due to the large number
and geographic dispersion of companies that comprise the
Group’s customer base.
The maximum credit risk equals the carrying value of trade and
other receivables, together with contract assets related to
contracts for which revenue is recognized over time. The credit
risk quality is evaluated both on the basis of aging of the trade
receivables and also on the basis of customer specific analysis.
The aging structure of trade receivables is presented in Note 8.
Management considers investments at fair value through other
comprehensive income to have low credit risk as they have a low
risk of default and the issuer has a strong capacity to meet its
contractual cash flow obligations in the near term. Counterparty
risk arises also from financial transactions agreed upon with
banks, financial institutions and corporations. The risk is
managed by careful selection of banks and other counterparties
and by applying counterparty specific limits and netting
agreements such as ISDA (Master agreement of International
Swaps and Derivatives Association), see Note 9. All financial
institutions Valmet associates with have investment grade status.
When measuring the financial credit risk exposure, all open
exposures such as cash at bank accounts, investments, deposits
and other financial transactions, for example derivative contracts,
are included. The compliance with financial counterparty limits
is regularly monitored by the management.
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
23 | Investments in associated companies
Valmet Group has the following associated companies:
Company name
Share of ownership
Place of incorporation and principal place of business
Dec 31, 2025
Dec 31, 2024
Measurement
Nanjing SAC Valmet Automation Co., Ltd.
China
21.95%
21.95%
Equity method
Valpro gerenciamento de obras Ltda
Brazil
51.0%
51.0%
Equity method
Nanjing SAC Valmet Automation Co., Ltd. (SAC) is a company
established in 2011 between Metso Automation Co., Ltd. and
Guodian Nanjing Automation Co., Ltd. Guodian Nanjing
Automation Co., Ltd is a public company, of which the majority
is owned by Huadian Power International Corporation Limited,
part of one of the five biggest power producing companies in
China. The ownership of Metso Automation Co., Ltd. was
transferred to Valmet when the Group completed its acquisition
of Process Automation Systems on April 1, 2015. Nanjing SAC
Valmet Automation Co., Ltd. concentrates on developing new
technology, products and solutions for digital power plant
concepts by combining the resources of the parties. The
associated company focuses especially on the Chinese market.
Valpro gerenciamento de obras Ltda is classified as a joint
venture, because Valmet has, together with the other shareholder,
joint power to govern the company.
Nanjing SAC Valmet Automation Co., Ltd. and Valpro
gerenciamento de obras Ltda are private companies, and there are
no quoted market prices available for their shares. There are no
contingent liabilities related to Valmet’s interest in Nanjing SAC
Valmet Automation Co., Ltd or Valpro gerenciamento de
obras Ltda.
Summarized financial information for Nanjing SAC Valmet
Automation Co., Ltd. is presented below. The summarized
financial information below represents amounts shown in
Nanjing SAC Valmet Automation Co., Ltd.’s most recent
financial statements. The current and non-current assets and
liabilities, revenues, and results of Valpro gerenciamento de obras
Ltda are not material and are therefore not presented in the
below tables.
Summarized financial information
SAC
EUR million
2025
2024
Balance sheet
Non-current assets
16
17
Current assets
180
157
Non-current liabilities
4
1
Current liabilities
106
94
Net assets
86
79
Valmet’s share of net assets
19
17
Income statement
Revenue
175
132
Profit or loss
22
11
Total comprehensive income
21
11
Valmet had no material transactions with its associated
companies in 2025 or 2024, or material receivables or liabilities
as at December 31, 2025, or December 31, 2024.
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
Reconciliation to carrying values in Valmet Group:
SAC
EUR million
2025
2024
Net assets at beginning of the period
79
74
Translation differences
-6
3
Profit for the period
22
11
Other comprehensive income for the period
-1
—
Dividends paid
-9
-8
Net assets at end of the period
85
79
Valmet’s share of net assets
19
17
Carrying value at end of the period
19
17
Changes in investments in associated companies during the period:
EUR million
2025
2024
Historical cost
Historical cost at beginning of the period
8
8
Historical cost at end of the period
8
8
Equity adjustments
Equity adjustments at beginning of the period
10
9
Profit for the period
5
2
Other comprehensive income for the period
-1
—
Dividends received
-2
-2
Equity adjustments at end of the period
11
10
Carrying value at end of the period
19
17
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
24 | Audit fees
In 2025, the Annual General Meeting of Valmet Oyj elected
Authorised Public Accountants PricewaterhouseCoopers Oy as
Valmet Oyj’s auditor. The table below presents fees for audit and
other services provided by PricewaterhouseCoopers Oy and its
affiliates (PwC) to Valmet Group.
EUR million
2025
2024
Audit fees
2.9
3.0
Audit-related assignments
0.2
0.4
Tax assignments
—
—
Other services
—
0.2
Total
3.1
3.6
PricewaterhouseCoopers Oy has provided non-audit services
totalling EUR 0.0 million (EUR 0.2 million) to entities of Valmet
Group during 2025, which includes minor amount related to tax
services and other services. Audit-related services include
sustainability assurance services of EUR 0.2 million (EUR 0.3
million).
25 | Contingencies and commitments
Valmet Oyj, with its subsidiaries, and financial institutions have
guaranteed commitments arising from the ordinary course of
business of Valmet Group up to a maximum of EUR 1,029
million and EUR 1,100 million as at December 31, 2025, and
2024, respectively.
On October 15, 2024, Valmet announced that Metsä Fibre Oy has
filed a request for arbitration against Valmet Technologies Oy,
which is a subsidiary of Valmet. The arbitration concerns Metsä
Fibre’s bioproduct mill in Kemi, Finland, which came into
operation as planned on September 20, 2023.
Valmet Technologies Oy disputes the claims brought by Metsä
Fibre and will also actively pursue claims of its own against Metsä
Fibre. Metsä Fibre’s monetary claims put forward after Statement
of Claim amount to EUR 48.7 million. In addition, Metsä Fibre
has also reserved the right to present certain other claims based
on contractual relationships between Metsä Fibre and other
parties, which are still unresolved. Estimation of the total amount
of such claims is not included in the Statement of Claim.
Valmet’s management does not expect to the best of its current
understanding any material adverse impacts on its operations or
financial position due to this arbitration. This assessment takes
into account the grounds currently presented, provisions made,
insurance coverage in force, and the extent of Valmet’s total
business activities.
Several lawsuits, claims and disputes based on various grounds
are pending against Valmet in various countries, including
product liability lawsuits and claims as well as legal disputes
related to Valmet’s deliveries. Valmet is also a plaintiff in several
lawsuits. Although some of the claims are substantial, Valmet’s
management does not expect to the best of its present
understanding that the outcome of these lawsuits, claims and
disputes will have a material adverse effect on Valmet in view of
the grounds currently presented for them, provisions made,
insurance coverage in force and the extent of Valmet’s total
business activities.
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
26 | Related party information
Valmet’s related parties include Valmet Group companies (see
Note 27) and associated companies and joint ventures (see Note
23) as well as the members of Valmet’s Board of Directors and
Executive Leadership Team. Transactions with related parties
have been conducted under normal market terms and conditions
and at market prices.
Remuneration of Chief Executive Officer
and other Executive Leadership Team
members
The table below presents the expenses related to management
compensation that have been recognized in profit or loss. More
information about share-based payments is presented in Note 15.
EUR thousand
Salaries and other short-
term benefits
Performance bonuses
Share-based payments
Post-retirement benefits
Resignation benefits
Total
2025
President and CEO
919
662
1,121
394
—
3,097
Other Executive Leadership Team members
3,218
1,132
3,410
1,060
8,820
Total
4,137
1,795
4,531
1,454
—
11,916
2024
President and CEO from August 12, 2024
332
506
331
121
—
1,290
President and CEO until August 11, 2024
568
278
650
279
—
1,775
Other Executive Leadership Team members
3,231
1,115
2,565
1,117
91
8,119
Total
4,130
1,899
3,546
1,517
91
11,184
Pension arrangements for the President and CEO follow local
market practice and legislation. Other Executive Leadership
Team members belong to the pension systems of their country of
residence and have a statutory retirement age. The President and
CEO and members of the Executive Leadership Team may belong
to supplementary defined contribution pension plans.
Contributions to the plans are 15–20 percent of the employee’s
annual salary for those belonging to the plans. Expenses are
included in the post-retirement benefits together with the
statutory pension benefits presented in the table above. The final
benefit received by the employee depends on the return on the
plan’s investments.
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
Remuneration paid to members of the Board of Directors
EUR thousand
2025
2024
Pekka Vauramo, Chair1
170
—
Annika Paasikivi, Vice Chair4
108
83
Bernd Eikens, Member 1
89
—
Jonas Gustavsson, Member1
82
—
Anu Hämäläinen, Member
97
99
Pekka Kemppainen, Member
88
91
Annareetta Lumme-Timonen, Member
88
84
Monika Maurer, Member
96
95
Mikael Mäkinen, Chair2
5
178
Jaakko Eskola, Vice Chair2
3
106
Per Lindberg, Member2
—
87
Aaro Cantell, Member3
—
4
Eriikka Söderström, Member3
—
6
Juha Pöllänen, Personnel Representative
9
8
Total
836
840
1 From March 26, 2025.
2 Until March 26, 2025.
3 Until March 21, 2024.
4 Vice Chair from March 26, 2025, previously Member.
As at December 31, 2025, the aggregate shareholding of the Board
of Directors, the President and CEO, and other Executive
Leadership Team members was 262,824 shares (352,105 shares as
at December 31, 2024).
Valmet has no loan receivables from the Executive Leadership
Team or the members of the Board of Directors. No pledges or
other commitments have been given on behalf of management or
shareholders.
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
27 | Subsidiaries
Company name
Country of
incorporation
and place of business
Parent
holding, %
Group
ownership
interest, %
Valmet Pty Ltd
Australia
—
100.0
Valmet GesmbH
Austria
—
100.0
Valmet Belgium BV
Belgium
—
100.0
Valmet Celulose, Papel e Energia Ltda.
Brazil
—
100.0
Valmet Engraving Solutions Ltda.
Brazil
—
100.0
Valmet Fabrics Tecidos Técnicos Ltda.
Brazil
—
100.0
Valmet Flow Control Ltda.
Brazil
—
100.0
Valmet Tissue Converting Ltda.
Brazil
—
100.0
Valmet Ltd.
Canada
—
100.0
Valmet Flow Control SpA
Chile
—
100.0
Valmet S.A.
Chile
—
100.0
Neles (China) Investment Co., Ltd.
China
100.0
100.0
Valmet (China) Co., Ltd.
China
—
100.0
Valmet Automation (Shanghai) Co., Ltd.
China
—
100.0
Valmet Fabrics (China) Co., Ltd.
China
—
100.0
Valmet Flow Control (Jiaxing) Co., Ltd.
China
—
100.0
Valmet Flow Control (Shanghai) Co., Ltd.
China
—
100.0
Valmet Paper (Shanghai) Co., Ltd.
China
—
100.0
Valmet Paper Machinery (Changzhou) Co., Ltd.
China
—
100.0
Valmet Paper Technology (China) Co., Ltd.
China
—
100.0
Valmet Paper Technology (Guangzhou) Co., Ltd.
China
—
100.0
Valmet Paper Technology (Xi’an) Co., Ltd.
China
—
75.0
Valmet Technologies Co., Ltd.
China
—
100.0
Valmet Tissue Converting (Nantong) Co., Ltd.
China
—
100.0
Valmet Tissue Converting (Shanghai) Co., Ltd.
China
—
100.0
Valmet d.o.o.
Croatia
—
100.0
Valmet s.r.o.
Czech Republic
—
100.0
Valmet Automation Oy
Finland
100.0
100.0
Valmet Flow Control Oy
Finland
100.0
100.0
Valmet Kauttua Oy
Finland
—
100.0
Valmet Technologies Oy
Finland
100.0
100.0
Valmet Automation SAS
France
—
100.0
Valmet Flow Control SAS
France
—
100.0
Valmet SAS
France
—
100.0
FactoryPal GmbH
Germany
—
75.1
Gas Chromatography Systems MAXUM GmbH
Germany
—
100.0
Valmet Deutschland GmbH
Germany
—
100.0
Valmet Flow Control GmbH
Germany
—
100.0
Valmet GmbH
Germany
—
100.0
Company name
Country of
incorporation
and place of business
Parent
holding, %
Group
ownership
interest, %
Valmet Flow Control Private Limited
India
—
100.0
Valmet Technologies Private Limited
India
—
100.0
PT Valmet
Indonesia
—
100.0
PT Valmet Automation Indonesia
Indonesia
—
100.0
PT Valmet Technology Center
Indonesia
—
100.0
Valmet Engraving Solutions S.r.l.
Italy
—
100.0
Valmet Flow Control S.p.A.
Italy
—
100.0
Valmet S.p.A.
Italy
—
100.0
Valmet Tissue Converting S.p.A.
Italy
—
100.0
Valmet Tissue Converting S.r.l.
Italy
—
100.0
Valmet K.K.
Japan
—
100.0
Valmet Sdn. Bhd.
Malaysia
—
100.0
Valmet Flow Control SA de C.V.
Mexico
—
100.0
Valmet Technologies S. de R.L. de C.V.
Mexico
—
100.0
Valmet B.V.
Netherlands
—
100.0
Valmet AS
Norway
—
100.0
Valmet Flow Control S.A.C. 1
Peru
—
100.0
Valmet Automation Sp. z o.o.
Poland
—
100.0
Valmet Flow Control Sp. z o.o.
Poland
—
100.0
Valmet Services Jelenia Góra Sp. z o.o.
Poland
—
100.0
Valmet Services Sp. z o.o.
Poland
—
100.0
Valmet Technologies and Services S.A.
Poland
—
100.0
Valmet, Unipessoal Lda.
Portugal
—
100.0
Valmet Flow Control, Unipessoal Lda
Portugal
—
100.0
Valmet Trading and Contracting W.L.L. 2
Qatar
—
49.0
Valmet Flow Control Co., Ltd.
Republic of Korea
—
100.0
Valmet Inc.
Republic of Korea
—
100.0
Valmet Flow Control S.R.L.
Romania
—
100.0
Valmet Flow Control Industrial LLC
Saudi Arabia
—
70.0
Gas Chromatography Systems MAXUM Pte. Ltd.
Singapore
—
100.0
Valmet Flow Control Pte. Ltd.
Singapore
—
100.0
Valmet Pte. Ltd.
Singapore
—
100.0
Valmet Flow Control South Africa Pty Ltd
South Africa
—
100.0
Valmet South Africa (Pty) Ltd
South Africa
—
100.0
Valmet Technologies, S.A.U.
Spain
—
100.0
Valmet Technologies Zaragoza, S.L.
Spain
—
81.0
Valmet AB
Sweden
100.0
100.0
Valmet Co., Ltd.
Thailand
—
100.0
Valmet Flow Control Turkey Dis Ticaret A.S.
Turkey
—
100.0
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
Company name
Country of
incorporation
and place of business
Parent
holding, %
Group
ownership
interest, %
Valmet Selüloz Kagit ve Enerji Teknolojileri A.S.
Turkey
—
100.0
Valmet Flow Control LLC2
United Arab Emirates
—
49.0
Valmet FZE
United Arab Emirates
—
100.0
Valmet Process Technologies and Services LLC2
United Arab Emirates
—
49.0
Neles UK Ltd1
United Kingdom
—
100.0
Valmet Limited
United Kingdom
—
100.0
Gas Chromatography Systems MAXUM LLC
USA
—
100.0
Neles-Jamesbury, Inc.
USA
100.0
100.0
Valmet, Inc.
USA
48.7
100.0
Valmet Flow Control Inc.
USA
—
100.0
Valmet Co., Ltd.
Vietnam
—
100.0
1 Under liquidation.
2 Based on contractual arrangement, the Group has full control of the company and is consolidating the entity 100%.
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
28 | Events after the reporting period
There has been no subsequent events after the reporting period
that required recognition or disclosure.
29 | New accounting standards
New IFRS Accounting Standards adopted
Valmet Group has applied new standards, amendments and
interpretations published by IASB that are effective for the first
time for financial reporting periods commencing on
January 1, 2025. These standards, amendments and
interpretations did not have a material impact on the results or
financial position of Valmet Group, or the presentation of
financial statements.
New IFRS Accounting Standards
not yet adopted
Valmet Group has not identified any new standards,
amendments or interpretations published by IASB that apply for
the first time to financial reporting periods commencing on or
after January 1, 2026, that are expected to have a material impact
on the results or financial position of Valmet Group, or the
presentation of financial statements, except for IFRS 18
Presentation and Disclosure in Financial Statements published in
April 2024.
IFRS 18 sets out requirements for the presentation and disclosure
of information in financial statements and it will replace IAS 1
Presentation of Financial Statements. IFRS 18 is effective for
annual reporting periods beginning on or after January 1, 2027,
with earlier application permitted.
Valmet is assessing the impact of IFRS 18 on its consolidated
financial statements, but as it does not impact the recognition
and measurement requirements it is not expected to have any
significant impact other than on the presentation of financial
information, and mainly on the presentation of the Consolidated
statement of income, the Consolidated statement of cash flows
and the notes to the consolidated financial statements.
IFRS 18 sets out a concept of “useful structured summary” and
guidance to group income and expenses in new categories. The
new categories in the Consolidated statement of income will have
an impact on how the operating profit is calculated and reported.
Based on management's current assessment and current
circumstances, the impact is not expected to be material. In the
consolidated statement of cash flows the starting point for
calculating cash flows from operating activities will change to
operating profit.
Valmet does not expect a significant change in the information
currently disclosed in the notes. To meet the new disclosure
requirements, Valmet will include a new note for Management
defined performance measures (MPMs) and information on
operating expenses by nature in its notes to the financial
statements.
Valmet will apply the new standard from its mandatory effective
date January 1, 2027 with retrospective application. The
comparative information for the financial year ending December
2026 will therefore be restated in accordance with IFRS 18.
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|  PARENT COMPANY STATEMENT OF INCOME, FAS
Parent company statement of income, FAS
EUR thousand
Note
2025
2024
Net sales
20,149
15,073
Personnel expenses
2
-21,533
-23,795
Depreciation and amortization
7
-618
-749
Other operating income and expenses, net
3, 4
-29,765
-15,110
Operating profit
-31,767
-24,580
Financial income and expenses, net
5
244,390
265,881
Profit before appropriations and taxes
212,622
241,301
Group contributions
76,745
107,231
Income taxes
6
-4,600
-15,637
Profit for the period
284,767
332,896
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|  PARENT COMPANY STATEMENT OF INCOME, FAS
Parent company statement of financial position, FAS
Assets
EUR thousand
Note
2025
2024
Non-current assets
Intangible assets
7
—
360
Property, plant and equipment
7
3,492
3,714
Equity investments
8
2,270,939
2,270,938
Non-current receivables
10, 11
76,954
532,660
Total non-current assets
2,351,384
2,807,673
Current assets
Current receivables
10, 11
1,002,083
655,691
Cash and cash equivalents
321,188
242,303
Total current assets
1,323,271
897,994
Total assets
3,674,656
3,705,666
Equity and liabilities
EUR thousand
Note
2025
2024
Equity
12
Share capital
140,000
140,000
Reserve for invested unrestricted equity
492,200
486,993
Hedge and other reserves
-447
-2,670
Retained earnings
848,624
767,650
Profit for the period
284,767
332,896
Total equity
1,765,144
1,724,869
Provisions
Other provisions
378
—
Liabilities
Non-current liabilities
11, 13
1,163,787
1,286,975
Current liabilities
11, 14
745,346
693,823
Total liabilities
1,909,134
1,980,798
Total equity and liabilities
3,674,656
3,705,666
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|  PARENT COMPANY STATEMENT OF INCOME, FAS
Parent company statement of cash flows, FAS
EUR thousand
2025
2024
Cash flows from operating activities
Profit before appropriations and taxes
212,622
241,301
Adjustments
Depreciation and amortization
618
749
Financial income and expenses, net
-244,390
-265,881
Other non-cash items
15,025
-3,289
Total adjustments
-228,746
-268,421
Change in working capital
584
10,584
Interest and other financial expenses paid
-80,408
-96,659
Dividends received
267,139
296,392
Interest and other financial income received
52,627
64,513
Income taxes paid
-13,042
-26,451
Net cash provided by (+) / used in (-) operating activities
210,775
221,259
Cash flows from investing activities
Investments in tangible and intangible assets
-36
-8
Net increase (-) / decrease (+) in loan receivables from Group companies
16,509
-26,561
Net cash provided by (+) / used in (-) investing activities
16,472
-26,569
Cash flows from financing activities:
Purchase of treasury shares
-3,220
-2,560
Issue of treasury shares to Group companies
3,992
2,102
Dividends paid
-248,702
-248,630
Group contribution received
107,357
199,594
Proceeds from non-current debt
281,000
374,742
Repayments of current portion of non-current debt
-394,440
-289,978
Net proceeds from (+) / repayments of (-) current debt
9,962
-44,219
Net proceeds from (+) / repayments of (-) debt from Group companies
11,164
-16,263
Net increase (+) / decrease (-) in Group pool accounts
84,526
-106,684
Net cash provided by (+) / used in (-) financing activities
-148,361
-131,896
Net increase (+) / decrease (-) in cash and cash equivalents
78,885
62,795
Cash and cash equivalents at beginning of the period
242,303
179,509
Cash and cash equivalents at end of the period
321,188
242,303
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170
|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
Notes to parent company financial statements
1 | Accounting principles
The parent company’s financial statements have been prepared in
accordance with the Finnish Accounting Standards (FAS).
Where necessary, comparative information has been reclassified
to achieve consistency in disclosure with current financial year
amounts.
Non-current assets
Tangible and intangible assets are measured at historical cost, less
accumulated depreciation according to plan. Land and water
areas are not depreciated.
Depreciation and amortization are calculated on a straight-line
basis over the expected useful lives of the assets as follows:
Intangible assets
10 years
Buildings and structures
12–30 years
Machinery and equipment
5–10 years
Other tangible assets
20 years
Investments in subsidiaries and other companies are measured at
cost less impairment loss.
Financial instruments
Valmet’s financial risk management is carried out centrally by the
Group treasury (hereafter Treasury) under annually reviewed
written policies approved by Valmet’s Board of Directors.
Treasury functions in co-operation with the operating units to
minimize financial risks to both the parent company and the
Group.
Forward exchange derivative contracts are used to hedge foreign
exchange rate risk, and these instruments are measured at fair
value (fair value level 2). The change in the fair value of derivative
instruments used to hedge operative items (e.g., foreign currency
denominated sales and purchase transactions) is reported under
Other operating income and expenses in profit or loss. The
change in the fair value of derivatives used to hedge non-
operative items (e.g., interest-bearing financial assets and
liabilities, and other items related to funding) are reported under
Financial income and expenses in profit or loss. The fair value of
forward exchange contracts is determined using forward
exchange market rates at the balance sheet date.
Cash flow hedge accounting is applied to interest rate swaps
hedging future changes in cash flows arising from floating rate
debt. The fair value of the interest rate swaps is calculated as the
present value of the estimated future cash flows arising from the
contract. The gain or loss related to the ineffective portion of
hedging instruments is expensed immediately and is reported
under Financial income and expenses. Interest arising from
interest rate swaps is reported under Financial income and
expenses concurrently with interest expense arising from hedged
floating rate debt.
Fair value hedge accounting is applied to certain fixed-rate loans.
These fixed-rate loans create an exposure to fixed interest
payments and the hedging instruments, interest rate swaps,
receives fixed interest payments. There is an expectation that the
value of the hedging instrument and the underlying hedged risk
move in opposite direction. The change in fair value of the
interest rate swap hedging the loan is recognized in Financial
income and expenses in profit or loss concurrently with the
change in value of the underlying hedged fixed-rate loan.
The derivative contracts used to hedge the commodity risk
related to electricity and nickel are measured at fair value, and the
changes in fair values are recognized in Other operating income
and expenses in profit or loss. The fair value of commodity
derivatives is based on quoted market prices at the balance sheet
date.
Interest-bearing financial investments managed centrally by the
Treasury are measured at fair value. The change in the fair value
is recognized in fair value reserve within Equity in the Statement
of financial position. The fair values of the interest-bearing
financial assets are determined using prevailing market rates at
the balance sheet date.
Further details on financial instruments are presented in Note 22
of the Consolidated financial statements.
Pensions
An external pension insurance company manages the parent
company’s statutory and voluntary pension plans, which are all
defined contribution in nature. Contributions are expensed to the
Statement of income as incurred.
Deferred taxes
A deferred tax liability or asset has been calculated for all
temporary differences between tax bases of assets and liabilities
and their amounts in financial reporting, using the tax rates
enacted or substantially enacted by the balance sheet date. The
deferred tax liabilities are recognized in the Statement of financial
position in full, and the deferred tax assets are recognized when it
is probable that there will be sufficient taxable profit against
which the asset can be utilized.
Foreign currency transactions
Transactions in foreign currency are recorded at the exchange
rate prevailing on the date of the individual transaction. Foreign
VALMET  |  FINANCIAL STATEMENTS AND REPORT OF THE BOARD OF DIRECTORS 2025  |
171
|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
currency denominated monetary items recognized in the
Statement of financial position have been translated into the
functional currency at the exchange rates prevailing at the
balance sheet date. Exchange rate gains and losses related to
operative items are reported under Other operating income and
expenses in the Statement of income, whereas exchange rate gains
and losses related to non-operative items are reported under
Financial income and expenses.
Receivables
Receivables are initially recognized at nominal amounts.
Subsequently, they are measured at amortized cost, less provision
for impairment.
Share-based incentive plan
Rewards arising from share-based incentive plans are settled
partly in shares and partly in cash. The shares to be transferred as
part of the plan are obtained in public trading. The acquisition of
shares is recognized as a decrease in Retained earnings and
transfer of shares as an increase in Reserve for invested
unrestricted equity and Personnel expenses. The part settled in
cash is recognized in the Statement of income under Personnel
expenses at the time of payment.
Leasing
Lease payments have been recognized as rental expenses in the
Statement of income.
Related parties
The parent company’s related parties include Valmet Group
companies, associated companies and joint ventures as well as the
members of Valmet’s Board of Directors and Executive Team.
Transactions with related parties have been conducted under
normal market terms and conditions and at market prices. The
parent company has loans to Valmet Group companies with
maximum maturity of five years. The parent company does not
have loans to associated companies, joint ventures, Valmet's
Board of Directors or Executive Team. Further details on related
parties are presented in Note 26 of the Consolidated financial
statements.
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172
|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
2 | Personnel expenses
EUR thousand
2025
2024
Salaries and wages
-18,196
-20,333
Pension costs
-2,933
-3,118
Other indirect employee costs
-404
-344
Total
-21,533
-23,795
Remuneration to management:
EUR thousand
2025
2024
President and CEO from 12 August 2024
-2,667
-1,290
President and CEO until 11 August 2024
-1,775
Members of the Board
-836
-840
Total
-3,503
-3,906
Pension arrangements for the President and CEO follow local
market practice and legislation. The President and CEO belongs
to a supplementary defined contribution plan. The contribution
to the plan is 20 percent of his annual salary.
Expenses are included in the remuneration to management table
above. Additional information about management remuneration
is presented in Note 26 of the Consolidated financial statements.
Number of personnel:
2025
2024
Personnel at end of the period
110
153
Average number of personnel during the period
135
150
3 | Other operating income and expenses
EUR thousand
2025
2024
Change in fair value of derivatives
772
—
Other operating income, total
772
—
Consulting and other services
-25,094
-13,421
IT
-995
-1,056
Change in fair value of derivatives
—
-232
Other
-4,447
-401
Other operating expenses, total
-30,537
-15,110
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173
|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
4 | Audit fees
EUR thousand
2025
2024
Audit fees
-1,099
-596
Audit-related assignments
-167
-314
Tax assignments
—
—
Other services
-4
-100
Total
-1,270
-1,009
5 | Financial income and expenses
2025
2024
EUR thousand
Group
companies
Others
Total
Group
companies
Others
Total
Dividends received
266,938
201
267,139
296,100
291
296,392
Interest income
43,941
5,601
49,542
51,952
11,420
63,372
Interest expenses
-16,922
-46,919
-63,841
-22,410
-66,836
-89,246
Net gain/loss from foreign exchange
-1,960
2,455
495
506
-100
406
Interest component from forward
contracts
72
-5,621
-5,549
1,626
-3,920
-2,294
Other financial expenses
—
-3,397
-3,397
—
-2,748
-2,748
Total
292,069
-47,679
244,390
327,774
-61,893
265,881
6 | Income taxes
EUR thousand
2025
2024
Income tax for the financial period
-4,287
-15,619
Income tax for previous periods
-3
6
Change in deferred taxes
-309
-24
Total
-4,600
-15,637
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
7 | Intangible assets and property, plant and equipment
EUR thousand
Intangible assets
Land areas
Buildings and
structures
Machinery and
equipment
Other tangible assets
Tangible assets total
Total
2025
Acquisition cost at beginning of the period
2,739
809
9,534
632
603
11,577
14,316
Additions
—
—
24
—
11
35
35
Acquisition cost at end of the period
2,739
809
9,558
632
614
11,613
14,351
Accumulated depreciation at beginning of the period
-2,379
—
-6,928
-602
-332
-7,863
-10,241
Depreciation
-360
—
-223
-8
-27
-258
-618
Accumulated depreciation at end of the period
-2,739
—
-7,152
-610
-359
-8,121
-10,860
Carrying value at end of the period
—
809
2,406
21
255
3,492
3,492
EUR thousand
Intangible assets
Land areas
Buildings and
structures
Machinery and
equipment
Other tangible assets
Tangible assets total
Total
2024
Acquisition cost at beginning of the period
2,739
809
9,526
632
603
11,570
14,308
Additions
—
—
8
—
—
8
8
Acquisition cost at end of the period
2,739
809
9,534
632
603
11,577
14,316
Accumulated depreciation at beginning of the period
-1,895
—
-6,698
-594
-305
-7,598
-9,493
Depreciation
-484
—
-230
-8
-27
-265
-749
Accumulated depreciation at end of the period
-2,379
—
-6,928
-602
-332
-7,863
-10,241
Carrying value at end of the period
360
809
2,605
29
271
3,714
4,075
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
8 | Investments
2025
2024
EUR thousand
Shares in Group
companies
Other shares
Investments total
Shares in Group
companies
Other shares
Investments total
Acquisition cost at beginning of the period
2,269,282
1,656
2,270,938
2,269,282
1,656
2,270,938
Additions
—
1
1
—
—
—
Acquisition cost at end of the period
2,269,282
1,657
2,270,939
2,269,282
1,656
2,270,938
Carrying value at end of the period
2,269,282
1,657
2,270,939
2,269,282
1,656
2,270,938
9 | Subsidiaries
Company name
Domicile
Ownership %
Valmet Technologies Oy
Finland
100.0
Valmet Automation Oy
Finland
100.0
Valmet Flow Control Oy
Finland
100.0
Valmet AB
Sweden
100.0
Valmet, Inc.
USA
48.7
Neles-Jamesbury Inc.
USA
100.0
Neles (China) Investment Co., Ltd.
China
100.0
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
10 | Specification of receivables
Non-current receivables as at December 31:
EUR thousand
2025
2024
Loan receivables from Group companies
65,607
518,397
Deferred tax assets
719
1,576
Derivatives from Group companies
3,320
6,422
Derivatives from others
7,307
6,265
Non-current receivables total
76,954
532,660
Current receivables as at December 31:
2025
2024
EUR thousand
From group
companies
From others
Total
From group
companies
From others
Total
Trade receivables
14,631
8
14,639
13,784
—
13,784
Loan receivables
553,499
—
553,499
133,012
—
133,012
Group pool accounts
220,292
—
220,292
310,304
—
310,304
Prepaid expenses and accrued income
125,779
87,627
213,406
149,169
47,819
196,989
Other receivables
—
246
246
—
1,602
1,602
Current receivables total
914,202
87,881
1,002,083
606,269
49,422
655,691
Specification of prepaid expenses and accrued income as at December 31:
EUR thousand
2025
2024
Prepaid expenses and accrued income from Group companies
Group contribution receivables
76,745
107,357
Accrued interest income
11,255
11,427
Derivatives
37,378
30,011
Other
401
374
Total
125,779
149,169
Other prepaid expenses and accrued income
Derivatives
55,371
23,797
Other
32,256
24,022
Total
87,627
47,819
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
11 | Financial assets and liabilities recognized at fair value
Notional amounts and fair values as at December 31:
EUR thousand
Notional amount
Fair value, assets
Fair value, liabilities
Fair value, net
Changes in fair value
recognized in profit or loss
Changes in fair value
recognized in hedge reserve
2025
Forward exchange contracts
With Group companies
3,813,781
40,736
-56,931
-16,195
-23,200
—
Others
4,254,029
59,321
-42,848
16,473
27,824
—
Interest rate swaps 1
Others
710,000
3,015
-3,208
-193
656
-1,050
Electricity forward contracts2
Others
184
207
-398
-191
412
—
Nickel commodity swaps3
With Group companies
402
123
-258
-135
7,308
—
Others
402
258
-123
135
-7,308
—
Steel scrap commodity swaps 3
With Group companies
829
20
—
20
57
—
Others
829
—
-20
-20
-57
—
EUR thousand
Notional amount
Fair value, assets
Fair value, liabilities
Fair value, net
Changes in fair value
recognized in profit or loss
Changes in fair value
recognized in hedge reserve
2024
Forward exchange contracts
With Group companies
3,267,809
35,497
-23,522
11,975
30,933
—
Others
3,507,296
25,263
-34,085
-8,822
-31,476
—
Foreign exchange options
With Group companies (sold)
149,576
—
-126
-126
8
—
Others (bought)
149,576
126
—
126
-8
—
Interest rate swaps 1
Others
650,000
4,235
-6,463
-2,228
477
-3,980
Electricity forward contracts2
Others
160
415
-1,019
-604
-592
—
Nickel commodity swaps3
With Group companies
1,483
916
-3
913
1,121
—
Others
1,483
3
-916
-913
-1,121
—
Steel scrap commodity swaps 3
With Group companies
1,303
40
—
40
75
—
Others
1,303
—
-40
-40
-75
—
1 All interest rate swaps have been designated either to cash flow or fair value hedge accounting relationships.
2 Notional amount in GWh.
3 Notional amount in metric tons.
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
Maturities of financial derivatives as at December 3 1:
2025
2024
2026
2027
2028
2029
2030 and
later
Total
2025
2026
2027
2028
2029 and
later
Total
2025
Notional amounts
Forward exchange contracts 1
7,290,892
769,694
7,225
—
—
8,067,811
5,724,819
1,047,581
2,706
—
—
6,775,106
Foreign exchange options1
—
—
—
—
—
—
299,151
—
—
—
—
299,151
Electricity forward contracts2
122
52
9
—
—
184
105
46
9
—
—
160
Nickel commodity swaps3
804
—
—
—
—
804
2,750
216
—
—
—
2,966
Steel scrap commodity swaps 3
1,658
—
—
—
—
1,658
2,606
—
—
—
—
2,606
Interest rate swaps 1
200,000
170,000
130,000
140,000
70,000
710,000
120,000
200,000
170,000
60,000
100,000
650,000
Fair values, EUR thousand
Forward exchange contracts
232
44
1
—
—
277
3,050
103
—
—
—
3,153
Foreign exchange options
—
—
—
—
—
—
126
—
—
—
—
126
Electricity forward contracts
-246
38
16
—
—
-191
-497
-91
-15
—
—
-604
Nickel commodity swaps
—
—
—
—
—
—
—
—
—
—
—
—
Steel scrap commodity swaps
—
—
—
—
—
—
—
—
—
—
—
—
Interest rate swaps
-521
-746
-411
231
1,253
-193
-318
-1,306
-1,339
-1,016
1,751
-2,228
1Notional amount in EUR thousand.
2Notional amount in GWh.
3Notional amount in EUR thousand.
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
Classification o f financial assets and liabilities as at December 31:
2025
2024
EUR thousand1
At amortized cost
At fair value through
hedge reserve
At fair value through
profit and loss
Carrying value
At amortized cost
At fair value through
hedge reserve
At fair value through
profit and loss
Carrying value
Non-current financial assets
Equity investments
2,269,282
1,657
2,270,939
2,269,282
1,656
2,270,938
Loan receivables
65,607
65,607
518,397
518,397
Derivative financial instruments
2,953
7,675
10,628
3,913
8,774
12,687
Total
2,334,889
2,953
9,332
2,347,174
2,787,679
3,913
10,430
2,802,022
Current financial assets
Loan receivables
553,499
553,499
133,012
133,012
Group pool accounts
220,292
220,292
310,304
310,304
Trade receivables
14,639
14,639
13,784
13,784
Derivative financial instruments
62
92,686
92,748
322
53,487
53,809
Cash and cash equivalents
321,188
321,188
242,303
242,303
Total
1,109,618
62
92,686
1,202,366
699,403
322
53,487
753,212
Non-current financial liabilities
Loans from financial institutions
952,703
952,703
1,070,604
1,070,604
Bonds2
200,661
200,661
201,557
201,557
Derivative financial instruments
2,625
7,576
10,201
5,823
8,776
14,599
Total
1,153,364
2,625
7,576
1,163,565
1,272,161
5,823
8,776
1,286,761
Current financial liabilities
Loans from financial institutions
98,901
98,901
94,440
94,440
Interest-bearing liabilities
31,247
31,247
14,484
14,484
Group pool accounts
496,004
496,004
501,490
501,490
Trade payables
6,653
6,653
75,354
75,354
Derivative financial instruments
583
92,720
93,303
640
50,961
51,601
Total
632,805
583
92,720
726,108
685,768
640
50,961
737,368
1 Carrying values presented in the table approximate fair values.
2 The bonds have been measured at amortized cost, adjusted by the fair value to the extent that fair value hedge accounting is applied.
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
12 | Statement of changes in equity
EUR thousand
2025
2024
Share capital at beginning of the period
140,000
140,000
Share capital at end of the period
140,000
140,000
Reserve for invested unrestricted equity at beginning of the period
486,993
484,128
Share-based payments
5,208
2,865
Reserve for invested unrestricted equity at end of the period
492,200
486,993
Hedge and other reserves at beginning of the period
-2,670
-290
Change in hedge and other reserves
2,223
-2,379
Hedge and other reserves at end of the period
-447
-2,670
Retained earnings at beginning of the period
1,100,546
1,018,839
Dividends paid
-248,702
-248,630
Purchase of treasury shares
-3,220
-2,560
Retained earnings at end of the period
848,624
767,650
Profit for the period
284,767
332,896
Total equity at end of the period
1,765,144
1,724,869
Statement of distributable funds as at December 31:
EUR
2025
2024
Reserve for invested unrestricted equity
492,200,360.61
486,992,527.44
Hedge and other reserves
-446,949.40
-2,669,760.31
Retained earnings
848,623,639.60
767,650,126.06
Profit for the period
284,767,437.27
332,895,633.84
Total distributable funds
1,625,144,488.08
1,584,868,527.03
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
13 | Non-current liabilities
EUR thousand
2025
2024
Loans from financial institutions
952,703
1,070,604
Bonds
200,661
201,557
Derivatives from Group companies
4,205
2,333
Derivatives from others
5,996
12,267
Other non-current liabilities
222
214
Non-current liabilities total
1,163,787
1,286,975
Maturities of financial liabilities as at December 31:
EUR thousand
2026
2027
2028
2029
2030 and later
Loans from financial institutions
98,901
248,901
126,679
85,333
491,791
Bonds
200,000
Trade payables and other financial liabilities
37,911
Total
136,812
248,901
126,679
285,333
491,791
EUR thousand
2025
2026
2027
2028
2029 and later
Loans from financial institutions
94,440
48,901
348,901
376,679
296,123
Bonds
—
—
—
—
200,000
Trade payables and other financial liabilities
19,848
—
—
—
—
Total
114,288
48,901
348,901
376,679
496,123
The information presented in the above maturity tables excludes the impact of derivatives.
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
14 | Current liabilities
As at December 31, 2025
As at December 31, 2024
EUR thousand
To group
companies
To others
Total
To group
companies
To others
Total
Current portion of non-current loans
—
98,901
98,901
—
94,440
94,440
Trade payables
1,715
4,939
6,653
2,387
2,977
5,364
Accrued expenses and deferred income
53,122
58,934
112,056
21,747
53,607
75,354
Other current interest-bearing debt
21,286
9,962
31,247
14,484
—
14,484
Group pool accounts
496,004
—
496,004
501,490
—
501,490
Other liabilities and provisions
—
485
485
—
2,691
2,691
Current liabilities total
572,127
173,220
745,346
540,108
153,715
693,823
Specification of accrued expenses and deferred income as at December 31:
EUR thousand
2025
2024
Accrued expenses and deferred income to Group companies
Accrued interest expenses
148
421
Derivatives
52,825
21,326
Other
149
—
Total
53,122
21,747
Accrued expenses and deferred income to others
Accrued interest expenses
12,324
16,777
Derivatives
40,478
30,275
Accrued salaries, wages and social costs
4,413
5,806
Other
1,718
749
Total
58,934
53,607
15 | Contingencies and commitments
Guarantees as at December 31:
EUR thousand
2025
2024
Guarantees on behalf of Group companies
1,028,632
1,099,819
Guarantees on own behalf
211
211
Total
1,028,844
1,100,030
Lease commitments as at December 31:
EUR thousand
2025
2024
Payments in the following year
899
916
Payments later
1,675
2,457
Total
2,574
3,373
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|  NOTES TO THE CONSOLIDATED  FINANCIAL STATEMENTS
List of account books used in parent company
Voucher description
Voucher class
Voucher format
General journal and general ledger
In electronic format
Specifications of accounts receivable and payable
In electronic format
Fixed assets transactions
756, 770, 774, 778, 782, 783, 786, 905, 906
In electronic format
Bank transactions
424–426, 500–692, 694, 699, 950, 960, 970
In electronic format
Sales invoices
300, 305, 310, 320, 330, 340–341, 350, 400, 410, 491–499, 802, 815, 825–
828, 834, 841, 930, 935, 940
In electronic format
Purchase invoices
100–101, 110–111, 115, 120, 130, 140, 150, 160, 190-191, 290–294, 297–299,
737, 801, 814, 824, 830, 832, 854, 855, 860–861, 895, 910, 915
In electronic format
Travel invoices
755
In electronic format
Salary transactions
750
In electronic format
Journal vouchers
700, 710, 715, 720, 722, 725, 730, 737, 740, 767, 793, 865, 881, 900, 975,
980, 985, 990
In electronic format
Financial transactions
760, 765–766, 768
In electronic format
Opening balance
791, 792
In electronic format
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|  SIGNATURES OF BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS
Signatures of Board of Directors’ Report, including Sustainability
Statement, and Financial Statements
Statements by the Board of Directors and President and CEO
The financial statements prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union give a true and fair view of the assets, liabilities, financial position
and profit or loss of Valmet Oyj and the undertakings included in the consolidation taken as a whole. The Board of Directors’ Report includes a fair review of the development and performance of the business and
the position of Valmet Oyj and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face. The Sustainability Statement
included in the Board of Directors’ Report has been prepared in accordance with the reporting standards mentioned in chapter 7 in the Finnish Accounting Act and with Article 8 in the Taxonomy Regulation.
Espoo, February 5, 2026
Pekka Vauramo
Annika Paasikivi
Chair of the Board
Vice Chair of the Board
Bernd Eikens
Jonas Gustavsson
Anu Hämäläinen
Member of the Board
Member of the Board
Member of the Board
Pekka Kemppainen
Annareetta Lumme-Timonen
Monika Maurer
Member of the Board
Member of the Board
Member of the Board
Thomas Hinnerskov
President and CEO
The Auditor’s Note
Our auditor’s report has been issued today.
Helsinki, February 5, 2026
PricewaterhouseCoopers Oy
Authorised Public Accountant Firm
Pasi Karppinen
Authorised Public Accountant
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|  AUDITOR’S REPORT
Auditor’s Report (Translation of the Finnish Original)
To the Annual General Meeting of Valmet Oyj
Report on the Audit of the
Financial Statements
Opinion
In our opinion
• the consolidated financial statements give a true and fair view
of the group’s financial position, financial performance and
cash flows in accordance with IFRS Accounting Standards as
adopted by the EU
• the financial statements give a true and fair view of the parent
company’s financial performance and financial position in
accordance with the laws and regulations governing the
preparation of financial statements in Finland and comply with
statutory requirements.
Our opinion is consistent with the additional report to the
Audit Committee.
What we have audited
We have audited the financial statements of Valmet Oyj (business
identity code 2553019-8) for the year ended 31 December 2025.
The financial statements comprise:
• consolidated statement of income, consolidated statement of
comprehensive income, consolidated statement of financial
position, consolidated statement of cash flows, consolidated
statement of changes in equity and notes to the consolidated
financial statements, which include material accounting policy
information and other explanatory information
• the parent company’s statement of financial position,
statement of income, statement of cash flows and notes.
Basis for Opinion
We conducted our audit in accordance with good auditing
practice in Finland. Our responsibilities under good auditing
practice are further described in the Auditor’s Responsibilities for
the Audit of the Financial Statements section of our report.
We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Independence
We are independent of the parent company and of the group
companies in accordance with the ethical requirements that are
applicable in Finland and are relevant to our audit, and we have
fulfilled our other ethical responsibilities in accordance with these
requirements.
To the best of our knowledge and belief, the non-audit services
that we have provided to the parent company and group
companies are in accordance with the applicable law and
regulations in Finland and we have not provided non-audit
services that are prohibited under Article 5(1) of Regulation (EU)
No 537/2014. The non-audit services that we have provided are
disclosed in note 24 to the Financial Statements.
Our Audit Approach
Overview
PWC_2025_en.png
• Overall group materiality:
• EUR 19 million, which represents
approximately 5% of profit
before tax
• We conducted audit work in all
major countries covering all key
reporting units. The focus of our
work was on the most significant
reporting units in Finland,
Sweden, USA, Brazil, China and
Italy.
• Accounting for long-term projects
and long-term service contracts
• Goodwill valuation
As part of designing our audit, we determined materiality and
assessed the risks of material misstatement in the financial
statements. In particular, we considered where management
made subjective judgements; for example, in respect of significant
accounting estimates that involved making assumptions and
considering future events that are inherently uncertain.
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|  AUDITOR’S REPORT
Materiality
The scope of our audit was influenced by our application of
materiality. An audit is designed to obtain reasonable assurance
whether the financial statements are free from material
misstatement. Misstatements may arise due to fraud or error.
They are considered material if individually or in aggregate, they
could reasonably be expected to influence the economic decisions
of users taken on the basis of the financial statements.
Based on our professional judgement, we determined certain
quantitative thresholds for materiality, including the overall
group materiality for the consolidated financial statements as set
out in the table below. These, together with qualitative
considerations, helped us to determine the scope of our audit and
the nature, timing and extent of our audit procedures and to
evaluate the effect of misstatements on the financial statements as
a whole.
Overall group
materiality
EUR 19 million (previous year
EUR 19 million)
How we
determined it
Approximately 5% of profit before tax
Rationale for the
materiality
benchmark applied
Profit before tax is a generally accepted
benchmark. We chose 5%, which is within
the range of acceptable quantitative
materiality thresholds in auditing standards.
How we tailored our group audit scope
We tailored the scope of our audit, taking into account the
structure of Valmet Group, the accounting processes and
controls, and the industry in which the group operates.
We conducted audit work in all key countries covering all key
reporting units. The group audit scope was focused on the most
significant reporting units in Finland, Sweden, USA, Brazil,
China and Italy, where we performed an audit of the complete
financial information due to their size and their risk
characteristics. Additionally, we performed audits of one or more
financial statement line items or specified audit procedures at
other reporting components based on our overall risk assessment
and materiality. We also carried out specific audit procedures
over group functions and areas of significant judgement,
including taxation, goodwill and material litigations. For the
remaining reporting units, we performed other procedures to
confirm there were no significant risks of material misstatement
in the group financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the financial
statements of the current period. These matters were addressed in
the context of our audit of the financial statements as a whole,
and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
As in all of our audits, we also addressed the risk of management
override of internal controls, including among other matters
consideration of whether there was evidence of bias that
represented a risk of material misstatement due to fraud.
Key audit matter in the audit of the group
Accounting for long-term projects and long-term
service contracts
Refer to note 3 to the consolidated financial statements for the
related disclosures.
Over time revenue recognition for long-term projects and long-
term service contracts is significant to the financial statements
based on the quantitative materiality and the degree of
management judgment required to account for revenue
recognition. The complexity and judgments are mainly related to
the estimation of project cost, which serves as a basis for the
determination of the percentage of completion, which the group
applies for recognizing revenues and for the assessment of
provisions for projects and potential loss-making contracts.
The total amount of revenue and profit to be recognized under
long-term projects and long-term service contracts can be
affected by changes in conditions and circumstances over time,
such as:
• modifications and scope changes to the original contract due to
changes in client specifications
• uncertainties and risks relating to assumptions utilized in the
estimation of project cost, components delays, overruns or
other circumstances that impacts the project cost of
completion.
This matter is a significant risk of material misstatement referred
to in Article 10(2c) of Regulation (EU) No 537/2014.
How our audit addressed the key audit matter
Our procedures included understanding of the end-to-end
revenue recognition process relating to long-term projects and
long-term service contracts. We identified and tested certain key
internal controls and IT systems supporting revenue recognition
and project management and accounting.
We have met and discussed regularly with business area and
corporate management to identify new significant and high-risk
projects, existing projects with significant fluctuations in gross
margins, and potentially loss-making projects, including those
with ongoing disputes and litigations.
We have performed detailed procedures on individually
significant and high-risk projects. This includes assessing the
reasonableness of estimated project cost of completion by
obtaining an understanding of the cost model and key
assumptions utilised in the estimates, and challenging
management’s judgments and estimates.  In addition, we have
also inspected pricing and sales forecasts, and other relevant
supporting evidences utilised in the development of cost
estimates such as historical data, price quotations, and
engineering specifications.
In addition, we have discussed the progress of projects with
business area management and certain project management
representatives.
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|  AUDITOR’S REPORT
Further, we have performed a lookback analysis by comparing
actual project outcomes to their related cost estimates to obtain
perspective on the accuracy of the estimation process.
With the outcome of those discussions and the results of our
audit procedures, we assessed management’s assumptions in the
determination of the project cost estimate.
Goodwill valuation
Refer to notes 4 and 21 to the consolidated financial statements for
the related disclosures.
At 31 December 2025 the group’s goodwill balance is valued at
EUR 1,800 million.
Under IFRS the company is required to annually test goodwill for
impairment. Goodwill valuation was important to our audit due
to the size of the goodwill balance and because the assessment of
the value in use of the group’s Cash Generating Units is complex,
involving judgement about the future results of the business by
estimating future, EBITDAs and inflation rates and determining
the discount rate for the calculations. We focused on the risk that
goodwill may be overstated.
Based on the annual goodwill impairment test management
concluded that no goodwill impairment was needed.
How our audit addressed the key audit matter
For the business combinations, we assessed the methodology
adopted by management for calculating the purchase price, fair
values of the acquired assets and liabilities, and the resulting
goodwill. We also tested the key assumptions in the valuation
models.
We evaluated management’s future cash flow forecasts and the
process by which they were drawn up, including comparing them
to the latest Board approved budgets, and testing the underlying
calculations. We evaluated and challenged the company’s future
cash flow forecasts in a discussion with management of the
business involved, and the process by which they were drawn up,
and tested the underlying value in use calculations. We compared
the current year actual results to those included as estimates in
the prior year impairment testing to corroborate the reliability of
management's estimates.
We evaluated and challenged the discount rate used.
We assessed the sensitivity analysis that had been performed by
management around the key drivers of the cash flow forecasts,
which were:
• the projected EBITDAs
• the discount rates
to identify how much each of these key drivers needed to change,
either individually or collectively, before the goodwill was
impaired.
We also evaluated the likelihood of such a movement in those key
assumptions that would require for goodwill to be impaired.
We assessed the adequacy of the disclosures in note 4, by
checking that they were compliant with IFRS Accounting
Standards and that their presentation was consistent with our
understanding of the key issues and sensitivities in the valuation.
We have no key audit matters to report with respect to our audit
of the parent company financial statements.
There are no significant risks of material misstatement referred to
in Article 10(2c) of Regulation (EU) No 537/2014 with respect to
the parent company financial statements.
Responsibilities of the Board of
Directors and the Managing Director
for the Financial Statements
The Board of Directors and the Managing Director are
responsible for the preparation of consolidated financial
statements that give a true and fair view in accordance with IFRS
Accounting Standards as adopted by the EU, and of financial
statements that give a true and fair view in accordance with the
laws and regulations governing the preparation of financial
statements in Finland and comply with statutory requirements.
The Board of Directors and the Managing Director are also
responsible for such internal control as they determine is
necessary to enable the preparation of financial statements that
are free from material misstatement, whether due to fraud
or error.
In preparing the financial statements, the Board of Directors and
the Managing Director are responsible for assessing the parent
company’s and the group’s ability to continue as a going concern,
disclosing, as applicable, matters relating to going concern and
using the going concern basis of accounting. The financial
statements are prepared using the going concern basis of
accounting unless there is an intention to liquidate the parent
company or the group or to cease operations, or there is no
realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of
the Financial Statements
Our objectives are to obtain reasonable assurance about whether
the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with good auditing practice will always
detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on
the basis of these financial statements.
As part of an audit in accordance with good auditing practice, we
exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the
financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a
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|  AUDITOR’S REPORT
basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of
internal control.
• Obtain an understanding of internal control relevant to the
audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the parent company’s or the
group’s internal control.
• Evaluate the appropriateness of accounting policies used and
the reasonableness of accounting estimates and related
disclosures made by management.
• Conclude on the appropriateness of the Board of Directors’
and the Managing Director’s use of the going concern basis of
accounting and based on the audit evidence obtained, whether
a material uncertainty exists related to events or conditions
that may cast significant doubt on the parent company’s or the
group’s ability to continue as a going concern. If we conclude
that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in
the financial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the parent
company or the group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the
financial statements, including the disclosures, and whether the
financial statements represent the underlying transactions and
events so that the financial statements give a true and fair view.
• Plan and perform the group audit to obtain sufficient
appropriate audit evidence regarding the financial information
of the entities or business units within the group as a basis for
forming an opinion on the group financial statements. We are
responsible for the direction, supervision and review of the
audit work performed for purposes of the group audit. We
remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding,
among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements
regarding independence, and communicate with them all
relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the financial statements of the current
period and are therefore the key audit matters. We describe these
matters in our auditor’s report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public
interest benefits of such communication.
Other Reporting Requirements
Appointment
We were first appointed as auditors by the annual general
meeting on 26 March 2014. Our appointment represents a total
period of uninterrupted engagement of 12 years.
Other Information
The Board of Directors and the Managing Director are
responsible for the other information. The other information
comprises the report of the Board of Directors and the
information included in the Financial Statements and Report of
the Board of Directors 2025 report but does not include the
financial statements and our auditor’s report thereon. We have
obtained the report of the Board of Directors prior to the date of
this auditor’s report, and the Financial Statements and Report of
the Board of Directors 2025 is expected to be made available to us
after that date.
Our opinion on the financial statements does not cover the other
information.
In connection with our audit of the financial statements, our
responsibility is to read the other information identified above
and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our
knowledge obtained in the audit, or otherwise appears to be
materially misstated. With respect to the report of the Board of
Directors, our responsibility also includes considering whether
the report of the Board of Directors has been prepared in
compliance with the applicable provisions, excluding the
sustainability report information on which there are provisions in
Chapter 7 of the Accounting Act and in the sustainability
reporting standards.
In our opinion, the information in the report of the Board of
Directors is consistent with the information in the financial
statements and the report of the Board of Directors has been
prepared in compliance with the applicable provisions. Our
opinion does not cover the sustainability report information on
which there are provisions in Chapter 7 of the Accounting Act
and in the sustainability reporting standards.
If, based on the work we have performed on the other
information that we obtained prior to the date of this auditor’s
report, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have
nothing to report in this regard.
Other Statements based on Law
Registration of the Income Tax Report
Our responsibility is to, based on our audit, express an opinion
on the registration and publication of the income tax report
required in Chapter 7 b of the Accounting Act.
The Board of Directors and the Managing Director are
responsible for the registration and the publication of the income
tax report.
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In our opinion, the company has not been obliged to register and
publish an income tax report referred to in Chapter 7 b of the
Accounting Act for the financial year immediately preceding the
financial year.
Helsinki 5 February 2026
PricewaterhouseCoopers Oy
Authorised Public Accountants
Pasi Karppinen
Authorised Public Accountant (KHT)
VALMET  |  FINANCIAL STATEMENTS AND REPORT OF THE BOARD OF DIRECTORS 2025  |
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|  AUDITOR’S REPORT
Independent auditor’s report on the ESEF financial statements of Valmet Oyj
(Translation of the Finnish Original)
To the Board of Directors of Valmet Oyj
We have performed a reasonable assurance engagement on the
financial statements 213800D9O7FUQDH83V62-2025-12-31-
fi.zip of Valmet Oyj (business identity code 2553019-8) that have
been prepared in accordance with the Commission's regulatory
technical standard for the financial year 1 January - 31 December
2025.
Responsibilities of the Board of Directors
and the Managing Director
The Board of Directors and the Managing Director are
responsible for the preparation of the company's report of the
Board of Directors and financial statements (the ESEF financial
statements) in such a way that they comply with the requirements
of the Commission's regulatory technical standard. This
responsibility includes:
• preparing the ESEF financial statements in XHTML format in
accordance with Article 3 of the Commission's regulatory
technical standard
• tagging the primary financial statements, notes and company's
identification data in the consolidated financial statements that
are included in the ESEF financial statements with iXBRL tags
in accordance with Article 4 of the Commission's regulatory
technical standard and
• ensuring the consistency between the ESEF financial
statements and the audited financial statements.
The Board of Directors and the Managing Director are also
responsible for such internal control as they determine is
necessary to enable the preparation of ESEF financial statements
in accordance with the requirements of the Commission's
regulatory technical standard. 
Auditor’s independence and quality
management
We are independent of the company in accordance with the
ethical requirements that are applicable in Finland and are
relevant to the engagement we have performed, and we have
fulfilled our other ethical responsibilities in accordance with these
requirements.
The auditor applies International Standard on Quality
Management (ISQM) 1, which requires the firm to design,
implement and operate a system of quality management
including policies or procedures regarding compliance with
ethical requirements, professional standards and applicable legal
and regulatory requirements.
Auditor's Responsibilities
Our responsibility is to, in accordance with Chapter 7, Section 8
of the Securities Markets Act, provide assurance on the financial
statements that have been prepared in accordance with the
Commission's regulatory technical standard. We express an
opinion on whether the consolidated financial statements that are
included in the ESEF financial statements have been tagged, in all
material respects, in accordance with the requirements of Article
4 of the Commission's regulatory technical standard.
Our responsibility is to indicate in our opinion to what extent the
assurance has been provided. We conducted a reasonable
assurance engagement in accordance with International Standard
on Assurance Engagements (ISAE) 3000.
The engagement includes procedures to obtain evidence on:
• whether the primary financial statements in the consolidated
financial statements that are included in the ESEF financial
statements have been tagged, in all material respects, with
iXBRL tags in accordance with the requirements of Article 4 of
the Commission's regulatory technical standard and
• whether the notes and company's identification data in the
consolidated financial statements that are included in the ESEF
financial statements have been tagged, in all material respects,
with iXBRL tags in accordance with the requirements of Article
4 of the Commission's regulatory technical standard and
• whether there is consistency between the ESEF financial
statements and the audited financial statements.
The nature, timing and extent of the selected procedures depend
on the auditor’s judgment. This includes an assessment of the risk
of a material deviation due to fraud or error from the
requirements of the Commission's regulatory technical standard.
We believe that the evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Opinion
Our opinion pursuant to Chapter 7, Section 8 of the Securities
Markets Act is that the primary financial statements, notes and
company's identification data in the consolidated financial
statements that are included in the ESEF financial statements of
Valmet Oyj 213800D9O7FUQDH83V62-2025-12-31-fi.zip for
the financial year 1.1.-31.12.2025 have been tagged, in all material
respects, in accordance with the requirements of the
Commission's regulatory technical standard.
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Our opinion on the audit of the consolidated financial statements
of Valmet Oyj for the financial year 1 January – 31 December
2025 has been expressed in our auditor's report dated 5 February
2026. With this report we do not express an opinion on the audit
of the consolidated financial statements nor express another
assurance conclusion.
Helsinki 5 February 2026
PricewaterhouseCoopers Oy
Authorised Public Accountants
Pasi Karppinen
Authorised Public Accountant (KHT)
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|  ASSURANCE REPORT ON SUSTAINABILITY STATEMENT
Assurance report on the Sustainability Statement (Translation of the Finnish Original)
To the Annual General Meeting of Valmet Oyj
We have performed a limited assurance engagement on the group
sustainability report (Sustainability Statement) of Valmet Oyj
(business identity code 2553019-8) that is referred to in Chapter 7
of the Accounting Act and that is included in the report of the
Board of Directors for the reporting period 1.1–31.12.2025.
Opinion
Based on the procedures we have performed and the evidence we
have obtained, nothing has come to our attention that causes us
to believe that the group sustainability report does not comply, in
all material respects, with
1) the requirements laid down in Chapter 7 of the Accounting
Act and the sustainability reporting standards (ESRS), and
2) the requirements laid down in Article 8 of the Regulation (EU)
2020/852 of the European Parliament and of the Council on
the establishment of a framework to facilitate sustainable
investment, and amending Regulation (EU) 2019/2088 (EU
Taxonomy).
Point 1 above also contains the process in which Valmet Oyj has
identified the information for reporting in accordance with the
sustainability reporting standards (double materiality
assessment).
Our opinion does not cover the tagging of the group
sustainability report with digital XBRL sustainability tags in
accordance with Chapter 7, Section 22, Subsection 1(2), of the
Accounting Act, because sustainability reporting companies have
not had the possibility to comply with that requirement in the
absence of requirements for the tagging of sustainability
information in the ESEF regulation or other European Union
legislation.
Basis for Opinion
We performed the assurance of the group sustainability report as
a limited assurance engagement in compliance with good
assurance practice in Finland and with the International Standard
on Assurance Engagements (ISAE) 3000 (Revised) Assurance
Engagements Other than Audits or Reviews of Historical
Financial Information.
Our responsibilities under this standard are further described in
the Responsibilities of the Authorised Group Sustainability
Auditor section of our report.
We believe that the evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Authorised Group Sustainability Auditor’s
Independence and Quality Management
We are independent of the parent company and of the group
companies in accordance with the ethical requirements that are
applicable in Finland and are relevant to our engagement, and we
have fulfilled our other ethical responsibilities in accordance with
these requirements.
The authorised group sustainability auditor applies International
Standard on Quality Management ISQM 1, which requires the
authorised sustainability audit firm to design, implement and
operate a system of quality management including policies or
procedures regarding compliance with ethical requirements,
professional standards and applicable legal and regulatory
requirements.
Responsibilities of the Board of Directors
and the Managing Director
The Board of Directors and the Managing Director of Valmet Oyj
are responsible for:
• the group sustainability report and for its preparation and
presentation in accordance with the provisions of Chapter 7 of
the Accounting Act, including the process that has been
defined in the sustainability reporting standards and in which
the information for reporting in accordance with the
sustainability reporting standards has been identified,
• the compliance of the group sustainability report with the
requirements laid down in Article 8 of the Regulation (EU)
2020/852 of the European Parliament and of the Council on
the establishment of a framework to facilitate sustainable
investment, and amending Regulation (EU) 2019/2088, and for
• such internal control as the Board of Directors and the
Managing Director determine is necessary to enable the
preparation of a group sustainability report that is free from
material misstatement, whether due to fraud or error.
Inherent Limitations in the Preparation of a
Group Sustainability Report
In reporting forward-looking information in accordance with
ESRS, management of the Company is required to prepare the
forward-looking information on the basis of assumptions that
have been disclosed in the sustainability statement about events
that may occur in the future and possible future actions by the
Group. Actual outcomes are likely to be different since
anticipated events frequently do not occur as expected.
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|  ASSURANCE REPORT ON SUSTAINABILITY STATEMENT
Responsibilities of the Authorised Group
Sustainability Auditor
Our responsibility is to perform an assurance engagement to
obtain limited assurance about whether the group sustainability
report is free from material misstatement, whether due to fraud
or error, and to issue a limited assurance report that includes our
opinion. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could
reasonably be expected to influence the decisions of users taken
on the basis of the group sustainability report.
Compliance with the International Standard on Assurance
Engagements (ISAE) 3000 (Revised) requires that we exercise
professional judgment and maintain professional skepticism
throughout the engagement. We also:
• Identify and assess the risks of material misstatement of the
group sustainability report, whether due to fraud or error, and
obtain an understanding of internal control relevant to the
engagement in order to design assurance procedures that are
appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the parent
company’s or the group’s internal control.
• Design and perform assurance procedures responsive to those
risks to obtain evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the
override of internal control.
Description of the Procedures That Have
Been Performed
The procedures performed in a limited assurance engagement
vary in nature and timing from, and are less in extent than for, a
reasonable assurance engagement. The nature, timing and extent
of assurance procedures selected depend on professional
judgment, including the assessment of risks of material
misstatement, whether due to fraud or error. Consequently, the
level of assurance obtained in a limited assurance engagement is
substantially lower than the assurance that would have been
obtained had a reasonable assurance engagement been
performed.
Our procedures included for example the following:
• We interviewed the company's management and the
individuals responsible for collecting and reporting the
information contained in the group sustainability report at the
group level to gain an understanding of the sustainability
reporting process and the related internal controls and
information systems.
• We familiarised ourselves with the background documentation
and records prepared by the company where applicable, and
assessed whether they support the information contained in
the group sustainability report.
• We assessed the company's double materiality assessment
process in relation to the requirements of the ESRS standards,
as well as whether the information provided about the
assessment process complies with the ESRS standards.
• We assessed whether the sustainability information contained
in the group sustainability report complies with the ESRS
standards.
• Regarding the EU taxonomy information, we gained an
understanding of the process by which the company has
identified the group's taxonomy-eligible and taxonomy-aligned
economic activities, and we assessed the compliance of the
information provided with the regulations.
• We performed site visits at the company’s sites in Lucca, Italy
and Jyväskylä, Finland
Helsinki 5 February 2026
PricewaterhouseCoopers Oy
Authorised Sustainability Auditors
Pasi Karppinen
Authorised Sustainability Auditor