18 | CLIMATE-SMART RAW MATERIAL
Climate-smart raw material We only use wood from forests that are responsibly managed for the benefit of future generations. All the timber can be traced back to the harvesting site.
Our opportunities and challenges Although Setra does not own any forest itself, it is in the forest that our business begins. We must be able to guarantee that the timber we use comes from sustainably managed forests, i.e. forests where financial, economic and social values have developed in a balanced manner. That is why we only work with certified suppliers and value our long-term relationships with them.
We have identified a future need to govern the length, dimensions and quality during harvesting to an even greater extent, depending on the products demanded. This will be possible through the application of new technology and close working relationships involving us exchanging data with timber suppliers. We are also facing new challenges in the context of dealing with damaged timber, given that storms, forest fires and attacks from insect pests are expected to rise in step with the effects of climate change. In a future in which wood plays an increasingly important role, it is vital to continue safeguarding the Swedish
Sustainability Report 2020 — Setra Group
forestry model, where we maintain biological diversity while simultaneously working to generate high returns.
Governance All the raw material that Setra purchases is either certified or controlled by a certified supplier. Certification is performed according to the FSC® and PEFC™ standards – the largest forestry certification systems in the world. Setra’s raw material policy is in line with the FSC policy for Controlled Wood and PEFC Controlled Sources. This ensures that we are also in compliance with the requirements set out in the EU Timber Regulation. Setra’s sawmills and processing units are certified in accordance with FSC and PEFC standards for Chain of Custody and the FSC standard for Controlled Wood.
How we work Responsible forestry and climate benefits from wood More than 99 percent of Setra’s raw material comes from Sweden, with the remainder being imported from Norway. In Sweden, the Swedish Forestry Act stipulates how we are to utilise and manage our forests. A key concept with regard to sustainable forestry is the “reforestation obligation”, which requires the forest owner to start planting, sowing or using seed tree stands within three years of harvesting. At least two new trees must be planted for each one harvested. Growth is currently higher than
harvesting and has been so throughout the twentieth century. As a result, there is twice as much forest in Sweden today as there was a hundred years ago. According to the Swedish National Forest Inventory, the annual growth in productive forest land has been calculated at around 116 million cubic metres of forest, of which approximately 75–95 million cubic metres are harvested annually. One key aspect in this context is the capacity of the growing trees to absorb carbon dioxide. There is huge climate benefit linked to managing the forests because young, growing trees capture more carbon dioxide than older trees. While it is true that harvesting does release carbon dioxide from land and remaining branches into the atmosphere, the reforestation obligation ensures a circuit in which the new, growing trees bind carbon dioxide. When we use the timber to manufacture wood products, we contribute to continuing to lock in the carbon dioxide – stored as carbon – in homes, for example. Buildings store carbon throughout their lifetimes and if they are subsequently demolished, the material can be reused or sent for incineration to generate electricity and heat. On incineration, the stored carbon is converted into carbon dioxide.
Raw material purchasing Setra purchase pine and spruce from around 15 suppliers.
52% Pine
48%
Spruce
