We make high performance packaging materials for a low carbon society
First year of the Way Forward strategy: the Evolution program advanced Billerud’s North American shift toward packaging materials, with strong trials and sales growth for US-made products — including innovations such as ConFlex® HeatSeal and new cartonboard grades CrownBoard Light™ and CrownBoard Carry™.
A Group-wide cost-saving program targets SEK 500 million impact in 2026 and SEK 800 million in annualized savings from 2027, strengthening competitiveness alongside measures in Region Europe and Group functions.
Major climate investment at the Gruvön mill: upgraded burners and fuel systems enable the use of bio-oil use in key boilers, which makes 100% fossil-free operation possible. The investment is aligned with our Science-Based Targets and emissions roadmap.
Safety performance improved: LTIFR was 3.7 in 2025 (vs. 5.7 in 2024); the long-term target remains <1.5.
Total market-based GHG emissions of 3,709 ktons CO₂e in 2025, approximately 1,000 ktons below the 2022 baseline of 4,728 ktons. Billerud’s Science Based Targets include our full scope 1+2 emissions and selected scope 3 emissions. Billerud has reduced scope 1 and 2 CO2e emissions with 30% from the base year 2022 and 15% of scope 3 CO2e emissions from 2022 to 2025. Based on scope 3 categories included in our Science Based Targets.
Gross scope 1 emissions were 720 ktons CO₂e in 2025, about 5% higher than 2024, mainly from increased fossil fuel combustion at North American mills due to higher production volumes. Compared with the 2022 base year, scope 1 is down approximately 18%.
Market-based scope 2 emissions fell to 6 ktons CO₂e in 2025 (about 17% below 2024), driven by an updated emission factor from the Pietarsaari energy supplier and lower energy use at Wisconsin Rapids. Near-term science-based targets use the market-based method.
Total gross indirect (scope 3) emissions were 2,984 ktons CO₂e in 2025, about 1% above 2024 while remaining below the 2022 base year. Reductions in categories 3.1, 3.4 and 3.9 versus 2024 were mainly driven by market development in Region Europe.
Note: The chart groups remaining reported categories as Other. Categories 3.8, 3.11, 3.13 and 3.14 are not in the inventory (see table or full report).
A modest rise in fossil CO₂ per ton of product, reaching 138 kg/ton in 2025, reflects higher natural gas use in the North American operations while remaining well below 2023 levels.
Pollutants emitted to air are measured at several parts of Billerud’s operation and have local variations. The emissions to air are monitored according to local legislation and in accordance with programs defined together with the authorities.
Note: This chart displays only the top 5 air pollutants. For a complete list of all air emissions, please check the table below or refer to the full PDF report.
Water emissions primarily consist of Total Organic Carbon and Chlorides. The company is implementing advanced water treatment technologies to reduce these emissions.
Note: This chart displays only the top 5 water pollutants. For a complete list of all water emissions, please check the table below or refer to the full PDF report.
Sample inspections across 120 Swedish sites in 2025 to verify that biodiversity considerations have been appropriately addressed after felling in accordance with legal requirements and forest management certification standards of FSC® and PEFC. The outcome for most of the indicators is in line with the previous year and demonstrates continued strong performance.
Domestic wood sourcing at 100% across both regions in 2025, again clearing the 96% target, reflects Billerud's strategy of working with suppliers close to its mills.
Note: Domestic wood supply: Wood sourced from Europe to our European operations. Wood sourced from USA and Canada to our North American operations. Excluding market pulp.
Total resource inflow of approximately 17.2 million ktons in 2025, which includes biological material, technical material and products. .Billerud reintroduced 2,783 ktons recovered chemicals for its global operations in 2025, constituting over 77% of all technical material used in production for non-energy related purposes.
A diversion rate of 39% in 2025, lower than the previous year, reflects a reclassification of hazardous waste streams in the North American mills rather than a change in actual waste volumes.
Anchored in the Sustainability Policy, Environmental Directive, and Energy Directive, with annual oversight at Group level.
Way Forward strategy advances North American packaging growth while strengthening European mills, with sustainability embedded throughout.
Climate, biodiversity, and pollution risks managed through the Enterprise Risk Management framework, with EU ETS2 inclusion from 2026 in focus.
Continuous dialogue through the double materiality assessment, supplier and community consultations, and Speak-Up Line reporting.
The AGM has elected seven directors, all non-executive and not employed by the Group. Two additional employee representatives serve on the Board. Of the elected directors, six of seven are independent of the company, management, and major shareholders (one director is linked to a major shareholder).
Among the elected Board of directors, female representation is 43% (three women, four men). Age diversity among elected directors is 14% aged 30–50 and 86% aged 50+.
Exceeding target by 2% with comprehensive Code of Conduct training across permanent employees
97% of permanent employees had completed Code of Conduct training by year-end 2025, exceeding the target of 95% (outcome 96% in 2024). The Speak-Up Line received 20 reported whistleblowing cases globally in 2025. Metrics align with G1 disclosures in the sustainability statement.
In Region Europe, standard payment terms are 75 days for direct suppliers and 60 days for indirect and maintenance suppliers (30 days for SMEs). In 2025, average time to pay from the start of the contractual or statutory term was 44 days. Payments aligned with agreed terms reached 98% (direct), 99% (indirect), and 99% (maintenance), supported by payment files being sent once per day.
1,260 employees completed anti-corruption and anti-bribery training in 2025 (535 in 2024), with full coverage of functions-at-risk.
Anti-corruption and anti-bribery training completion is tracked by year-end. In 2025, 1,260 employees completed training; functions-at-risk (white-collar workers) remained at 100% coverage. There were 0 violations of anti-corruption laws.
Billerud's governance framework ensures effective oversight, enterprise risk management, and ethical business conduct. The Board's composition and the Way Forward strategy connect governance with long-term performance and sustainability disclosures.
The AGM elects seven directors; none are Group employees, while two employee representatives (and a deputy) also serve on the Board. Six of seven elected directors meet full independence criteria under the Swedish Code; one director is not independent of a major shareholder. Among elected directors, 43% are women.
ERM and internal control are embedded in governance; financial and sustainability reporting are reviewed by the Audit Committee and Board. Code of Conduct training reached 97% in 2025. There were 0 reported violations of anti-corruption and anti-bribery laws. The Speak-Up Line received 20 reports globally in 2025.
Stakeholder input informs materiality and strategy through surveys, union collaboration, customer dialogue, and industry associations. Public affairs and sustainability teams engage policymakers on topics such as PPWR, EUDR, and EU ETS, as described in the annual report.
Identify sustainability matters and stakeholders
Assess impacts, risks, and opportunities
Prioritize based on severity and likelihood
Apply internal controls for objectivity
Group Management Team sign-off
Audit Committee and Board approval
Billerud's double materiality assessment follows a structured 6-step process (see ESRS 2 IRO-1). It combines interviews and desktop research with internal stakeholders who represent external views; impacts and risks are prioritized by severity and likelihood, with financial risks and opportunities linked to ERM and TCFD. Results were calibrated with Group Management in 2024 and accepted by the Audit Committee and Board. From 2025, Billerud reviews the assessment annually for relevance. Coverage spans own operations and the upstream and downstream value chain.
The assessment identified 45 material impacts, risks, and opportunities across 10 topic categories: environmental (E1-E5), social (S1-S4), and governance (G1). Totals below match the ESRS 2 SBM-3 overview table (pages 65–67), including two climate change adaptation IROs listed in the same table row; environmental IROs include climate change and energy lines.
Material IROs under E1 follow SBM-3 and include climate change adaptation and mitigation, energy mix and recovery, and related risks and opportunities across operations and the value chain.
E2 captures air and water pollution impacts plus related compliance and emergency-related risks.
E3 focuses on water withdrawal and discharges, including actual impacts from operational water use.
E4 addresses biodiversity loss drivers, species and ecosystem condition, and ecosystem-service dependencies.
E5 covers resource inflows, outflows, waste, circular opportunities, and recycling effectiveness.
G1 covers anti-corruption risk, supplier-related governance impacts, and policy engagement opportunities.
Billerud's 2025 Sustainability statement is based on its double materiality assessment.
Learnings from the double materiality assessment feed into Billerud's Sustainability Platform and overall strategy development. The assessment helps identify material impacts, risks, and opportunities that are strategically vital for future competitiveness. The "Our Way Forward" strategy is guided by the purpose derived from the assessment.
The double materiality assessment supports due diligence on negative impacts on people and the environment. It enables the identification and assessment of impacts, risks, and opportunities; priority-setting using severity, likelihood, and human-rights sensitivity.
Billerud engages stakeholders continuously (SBM-2); views inform the DMA indirectly—internal stakeholders with broad operational and external interaction represented those views. A systematic stakeholder engagement model is planned as part of a future full revision of the DMA.
Social
Workforce Diversity
Billerud aims for a 60-40 gender ratio among employees and managers. At year-end 2025, 21.5% of employees and 25.9% of managers were female. The Board of Directors had 43% female representation (excluding employee representatives). Psychological safety index baseline 88 (2025), with a target above 90 by 2035.
Safety Performance
In 2025, Group LTIFR (employees and contractors) was 3.7 ( 5.7 in 2024). TRIFR was 7.4 (8.6 in 2024). Recordable work-related accidents: 105 (127 in 2024), with zero fatalities. Long-term LTIFR target ≤1.5 by 2028.
Employee Distribution
Headcount on 31 December 2025 was 5,626 employees (97.0% permanent). Regional distribution: 70.6% Europe (3,972), 29.1% North America (1,638), 0.3% Asia (16).
Supplier Code of Conduct Coverage
94% of supplier spend had a signed Supplier Code of Conduct in 2025 (target 95%; 92% in 2024). Figures are reported at Group level; regional split is not disclosed in the 2025 report.
Current Performance
Target Achievement
Supplier Assessment Coverage
In 2025, 86% of purchase value was covered by supplier assessment in European operations (EcoVadis and Billerud-specific assessments), meeting the target of 85%. Scope excludes wood supply; North America is not yet in scope for this KPI.
Consultations Completed
Rights Violations
Indigenous Peoples Engagement
21 consultations were carried out regarding land managed by Billerud in 2025 (11 in 2024), with zero incidents concerning violations of indigenous peoples' rights. Consultations follow protocols for free, prior and informed consent.
Europe - Certified
North America — FSSC roadmap
Food Safety Certification
100% of European mills remain certified to FSSC 22000 where applicable. In North America, no mill was certified in 2025; Escanaba completed the process with approval in early 2026. The 2030 North America target is 66% of applicable mills.
Key Highlights
Social Targets Highlights
Narratives
Own Workforce (S1)
The People Policy and Health & Safety Policy set fair working conditions, diversity and inclusion, and a vision of zero injuries. Global mill action plans cover training, talent management, and D&I; the Sustainable Leadership and Employee programs address psychological safety and well-being. Group LTIFR was 3.7 in 2025 (target ≤1.5 by 2028).
Workers in the Value Chain (S2)
The Supplier Code of Conduct and Operations, Quality & Procurement Policy require suppliers to meet standards on human rights, working conditions, and health and safety. In 2025, 94% of supplier spend had a signed Code (target 95%), and 86% of European purchase value was covered by supplier assessment.
Affected Communities (S3)
Wood Supply and forestry activities engage indigenous communities through consultation and free, prior and informed consent. Billerud carried out 21 consultations in 2025 on land it manages, with zero incidents concerning violations of indigenous peoples' rights.
Consumers & End-users (S4)
Packaging for food and medical use requires rigorous product safety. European mills maintained 100% FSSC 22000 certification where applicable; North America targets 66% of applicable mills certified by 2030 (Escanaba certified early 2026).