May 17, 2021
Since the very start of Valmet as an independent company back in 2014, sustainability has been at the core of Valmet’s business strategy. Valmet’s mission Converting renewable resources into sustainable results has carried us since then, and it has become even more topical.
Investors often ask us, what is Valmet’s role in circular economy and in a more environmentally aware world. In these situations, it is good to take a step back and take a look at the very core of Valmet’s business. We make machines and technology, which make it possible for our customers to produce different kinds of products from renewable resources. One example of our customer’s end products is board, which can be used to replace plastic packaging with renewable materials.
Sustainability is integrated into Valmet’s operations and processes through our Sustainability360° agenda. The agenda focuses on five core areas across our value chain: sustainable supply chain; health, safety and environment; people and performance; sustainable solutions, and corporate citizenship. An action plan with detailed targets is set for each area for a three-year period.
In March 2021, Valmet introduced its climate program, Forward to a carbon neutral future- which continues our comprehensive sustainability work. The program sets ambitious targets for our entire value chain. By 2030, we aim to reduce CO2 emissions in the supply chain by 20% and cut CO2 emissions of our own operations by 80% . The use phase of Valmet’s technologies in our customers’ production has by far the biggest climate impact in our value chain. Thus, we can make a huge impact by further developing our products to significantly lower the CO2 impact. Raw material, water and energy efficiency are key focus areas in Valmet’s R&D. By 2030, we aim to enable fully carbon neutral production for our pulp and paper customers and further reduce energy use of Valmet’s current technologies by 20%. Valmet’s climate program is aligned with the Paris Climate Agreement´s 1.5-degree pathway and United Nations Sustainable Development Goals and Valmet is in process to send its climate targets for the Science Based Targets Initiative for validation.
Recent very interesting opening highlighting Valmet’s role in the circular economy is sustainable textile production. Valmet will deliver the main equipment for Renewcell’s textile recycling plant in Sundsvall, Sweden. The technology provided by Valmet is commonly used in dissolving pulp plants, tailored for this project. In the new plant, Renewcell will transform textile waste, such as cotton and viscose clothes, into a dissolving pulp product called Circulose®. By replacing virgin textile fibers with fibers produced from Circulose®, fashion brands can significantly reduce the climate and environmental impact caused by raw material extraction and fashion waste generation.
Just today, we announced an order for Spinnova-Suzano’s textile fiber factory in Jyväskylä, Finland. It will produce a natural textile fiber from cellulose or waste streams, without harmful chemicals, with minimal water use and emissions, and zero waste. Valmet will provide the drying technology for the first commercial Spinnova production line. We will dig deeper into Valmet’s role in the textile business transformation in a coming blog post.
Valmet is constantly developing its sustainability reporting. Valmet reports about its sustainability progress quarterly in the interim reports, and our Annual Review gives a comprehensive view on our sustainability work. In 2020, Valmet implemented the Task Force on Climate-related Financial Disclosures (TCFD) reporting recommendations to disclose climate-related financial risks and opportunities in annual reporting. Information on Valmet’s climate-related risks and opportunities can also be found on the new TCFD section of our IR website. Furthermore, Valmet reports according to the Non-Financial Reporting Directive (NFRD) and the GRI Standards framework of the Global Reporting Initiative. We are also in the process of classifying Valmet’s offering by the upcoming taxonomy of the European Union, which aims to direct investments and funding into sustainable business activities.
As a Valmet shareholder, a potential shareholder or analyst, you have a say in Valmet’s sustainability work! Let us know which sustainability themes you consider most important to Valmet by answering our stakeholder survey here. The sustainability agenda is reviewed annually, and this survey is a valuable channel for Valmet to receive input from personnel, customers, suppliers and other stakeholders. The survey will take about three minutes to complete. We highly appreciate your time to participate in our agenda review! You can also suggest ideas for potential future steps and give feedback of Valmet’s sustainability performance in general.