Metsä Group’s risk management’s purpose is to ensure continuity of operations in the short and long term. At Metsä Group, risk management covers all levels of the value chain from securing wood supply to production units and customer deliveries up to preparedness in the event of any possible product liability cases. Under are listed the most important sustainability risks.
Debate on the sustainable use of forests is developing hand in hand with bioeconomy discussion. In northern Europe, the forests are a vast resource: in Finland, for example, currently some 40% of the annual growth of wood is left unused. Employing and using sustainable practices in forest management for a long time, our forests are growing healthily, providing wood today more than ever before.
Preserving biodiversity is ensured with the PEFC™ and FSC® forest certification schemes in our wood supply areas. Both schemes aim to manage the risks related to the well-being of forests as well as protect waters and other natural values. In Finland and Sweden, the practice of mapping the status of endangered species is exceptionally comprehensive. Additionally, the renewal and biodiversity aspects are taken into account under the Finnish Forest Act, originating from 1886, that requires the renewal of the forest and comprehensive forest risk management. The legislation also requires measures when procuring coniferous wood to restrain the potential damages caused by bark beetles for the growing stock.
Regular in-time thinning and careful planning of loggings are tools that can both prevent and minimise storm damage. The dense road network in our forests enables access to repair storm damages. Most of the forest roads are open for public and recreational use.
Pests pose a potential risk for forestry all around the world. The phytosanitary risk assessments are carried out by the authorities who regulate the plant health legislation and are responsible for controlling that no new pests are introduced.
We work to identify the existing and potential risks related to our entire supply chain. Based on our current knowledge, we recognise that the potential risk for human rights abuses lies in our supplier chain rather than in our own operations; accordingly, we are continuously striving to mitigate this potential risk. We acknowledge the recent significant increase of refugees and other immigrants in Europe, which might increase the risk of forced labour, and pay special attention to it in our procurement processes.
The management of the tax affairs is conducted by the Group-level tax team. The tax team monitors tax risks involved in business transactions and advises the Group companies in implementing the tax principles in their daily business as well as in business restructurings.
Enterprise risk management consists of internal risk assessments through the value chain, cooperation with insurance companies as well as systematic loss prevention work to mitigate risks. Major risks, such as fire, machine breakdowns and environmental damages, are covered by Group-wide insurance programme. Read more from Financial Statements.