Skjern Papirfabrik

Sustainability

REPORT 2018

Survey 2018 Staff members S. 10 14.3 years is the average seniority for Skjern Papirfabrik’s staff members across all job functions.

Waste management S. 21 98.4% of waste arisings were recovered in 2018.

Water consumption S. 25 22.1% reduction of specific water consumption over five years.

Emissions to the air S. 26 In 2014, before the installation of the wood chip fired boiler, 228 kg of CO2/net tonne of paper were emitted. In 2018, emissions were 11 kg of CO2/net tonne of paper. This is a reduction of 95%.

District heating supply S. 29 47,402 MWh of district heating was supplied during 2018.

This corresponds to the average consumption of 2,619 households.

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Contents Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 – 5 Facts about the mill. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 About Skjern Papirfabrik. . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Strategy for selected parameters. . . . . . . . . . . . . . . . . . . . . . 8 Employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Occupational health and safety. . . . . . . . . . . . . . . . . . . . . . . 11 Environmental impacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Environmental policy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Corporate Social Responsibility, CSR . . . . . . . . . . . . . . . . . . . 14 CSR policy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Mass balance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Input and output of materials . . . . . . . . . . . . . . . . . . . . . . . . 17- 22 Water balance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24-26 Energy balance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28-32 Global Compact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Skjern Papirfabrik

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Preface Dear Reader General Here we are again, and a year has gone by filled with challenges that arise regularly calling for action in order to progress on the development of Skjern Papirfabrik’s fields of interest. An entire year should be enough to close all current tasks arising along the way. However, this is rarely the case; we still have some unsolved tasks we need to address in the new year.

Hence the question many of us ask ourselves: Will we ever reach the point where all tasks have been solved and closed and our to-do list is empty - we doubt it!

From early 2018 the mill has had a multitude of assignments and challenges in next to all those basic parameters that keep a company such as Skjern Papirfabrik running. A company that, by the way, is a relatively small player on the European market, competitive, and in continuous progress.

Market conditions Skjern Papirfabrik is active in several different market segments, almost all of which have seen increasing demand for the product types produced at the mill. For this reason, higher requirements have continuously been put on the mill’s ability to better exploit the existing capacity of all production units.

It comes as no surprise to anybody that for the past two years there has been a general uncertainty about the fate of Brexit.

Since Skjern Papirfabrik exports a substantial part of our product volume to Great Britain, we feel the anxiety of our British customers in relation to lack of security of supply. This has led to a trend of increasing demand for supplies to British customers.

The increasing demand in general in conjunction with stable prices of the feedstock types used in the mill’s production have led to a 2018 result that we find satisfactory.

Quality and environment Generally, all products from Skjern Papirfabrik can be recycled at the end of their useful life. All products are produced from 100% recycled fibres and are FSC certified. These are significant parameters in our circular economy efforts.

The mill has been ISO 14001 certified since 1998 and since then we have obtained an ISO 50001 energy certificate.

Throughout 2018 we have furthermore endeavoured to become ISO 9001 quality certified as from early 2019 in order to meet market demands for a uniform and stable quality delivered to our customers.

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Skjern Papirfabrik supports the UN Global Compact along with the 17 UN Global Goals (SDGs); as we believe that we can contribute to Goals no. 7: Affordable and clean energy and no. 12: Responsible consumption and production.

Skjern Papirfabrik operates and produces according to targets aiming at reducing as much as possible any impacts on the internal and the external environment.

Activities 2019 A long and intensive process has produced the basis for a major investment in 2019.

In our efforts to follow the current capacity expansions of our customers and the market all while maintaining the competitiveness of the mill, the paper machine will be extensively refurbished in the weeks 29 + 30.

This investment is expected to give a capacity extension of approximately 12% along with reduced energy consumption per unit produced. In addition, it will result in an improvement of occupational health and safety at the paper machine.

CEO Jørgen Thomsen

Skjern Papirfabrik

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Strategy for selected parameters

1)

Status 2017

Status 2018

Targets 2019

Value for Skjern Papirfabrik and society

Paper production

64,064 net tonnes

66,064 net tonnes

66,951 net tonnes

Improved financial basis, which is a precondition for the further development of the mill.

Increased paper production also has a positive impact on other environmental parameters.

Specific energy consumption

1,649 kWh/ net tonne

1,613.5 kWh/ net tonne

1,576 kWh/ net tonne

Increasing district heating volumes produced from waste heat reduce the consumption of fuels at the Skjern district heating company.

District heating supply

44,552 MWh

47,402 MWh

48,000 MWh

Substitution of natural gas leads to substantially reduced CO2 emissions.

CO² emitted from production 1)

1,368 tonnes

635 tonnes

600 tonnes

Substitution of fossil fuels with biofuels leads to reduced CO2 emissions.

Water consumption

311,662 m³

307,528 m³

300,000 m³

Lower water consumption reduces the burden on our water resources.

Amount of wastewater

282,641 m³

273,945 m³

270,000 m³

Wastewater quantities affect the hydraulic load on the Tarm wastewater treatment plant.

CO2 originating directly from paper production and reported to the Danish Energy Agency.

(In mass balances later on in this publication CO2 emissions are slightly higher, since secondary contributions from internal transport have been included).

Photo: Birds at the Lake of Hestholm

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About Skjern Papirfabrik Skjern Papirfabrik in the circular economy Skjern Papirfabrik produces paper and paperboard consisting of 100% recycled paper and paperboard. The primary production is semi-product cardboard and paper delivered for further processing at our customers around Europe.

Generally, all products from Skjern Papirfabrik can be recycled at the end of their useful life. Since all products are furthermore produced from 100% recycled fibres, these are significant parameters in our circular economy efforts.

Based on the above we can rightly say that Skjern Papirfabrik is among the most sustainable paper mills in Europe.

Skjern Papirfabrik wishes to be the preferred supplier of the environmentally aware customer requesting carton of high quality. (fra Strategien) Skjern Papirfabrik supports the 17 UN Global Goals (SDGs). We believe that we can contribute to Goals no. 7: Affordable and clean energy and no. 12: Responsible consumption and production.

Trim ends and rejections from our own production are collected and recycled in our paper production.

The products are produced with a high respect for sustainability, and Skjern Papirfabrik has been environmentally certified under ISO 14001 since 1998. Since then, this certification has been expanded with ISO 50001: energy management certification. All our products are FSC certified.

Investments in production efficiency are made continuously.

This includes the reduction of CO2 emissions, energy consumption and other environmental impacts caused by our paper production.

Furthermore, Skjern Papirfabrik supplies large volumes of district heating generated from waste heat from the drying section of the paper machine and residual heat in the flue gas from the boiler. The district heating is supplied directly through the district heating grid of Skjern to the users in the City of Skjern.

Skjern Papirfabrik

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Facts about the mill Name and location Skjern Papirfabrik A/S Birkvej 14, 6900 Skjern Tel +45 97351155 E-mail: Skjernpaper@skjernpaper.com Website: www.skjernpaper.com

Certifications Skjern Papirfabrik is certified according to the following standards: ISO 14001 ISO 9001 ISO 50001 FSC®

Industry/NACE code 21.12 – Production of paper and paperboard 17.12 – Production of paper pulp

Extent of certifications Production of paper and paperboard. Applies to all of Skjern Papirfabrik, including the company’s auxiliary processes.

Supervisory authority Waste and wastewater: The Municipality of Ringkøbing-Skjern Other: Danish Environmental Protection Agency, City of Aarhus

Period covered 01.01.2018 – 31.12.2018

Major environmental approvals 20.12.2000: Environmental approval, revised general approval.

This approval is under review.

08.07.2010: Environmental approval of natural gas fired boiler plant.

27.10.2015: E nvironmental approval of wood chip fired boiler plant.

01.09.2017: Approval of connection of wastewater to Tarm wastewater treatment plant.

19.12.2018: E nvironmental approval of extension 2019

Date of Issue July 2019

Applies to FSC® certified products

Most important legislation Danish Environmental Protection Act Liability for Environmental Damage Act Statutory Order on Waste REACH BAT conclusions for Pulp & Paper

Owners Since 2005 Skjern Papirfabrik has been owned by S.P. Holding, Skjern A/S, which is again owned by Buur Invest and three of the employees from the mill’s management.

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Management Chairman of the board CEO CFO Sales manager

Charlotte Buur Jørgen M. Thomsen John T. Nybo Nikolaj Thybo

Paper machine Type Machine width Grammage

Fourdrinier 294 cm 90 – 480 g/m2

Skjern Papirfabrik

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Staff members At Skjern Papirfabrik the number of staff members is very constant. There is a positive trend of staff members staying at the mill for many years. This support a good stability among staff members and a very experienced workforce in all divisions.

In Denmark we have several nationalities, and Skjern Papir­ fabrik sees it as a natural part of our activity to offer people of foreign nationalities work at the mill on equal terms with Danish citizens.

The mill has 74 employees with the following composition: • 4 skilled metalworkers • 2 automation mechanics • 53 blue-collar workers • 15 white-collar workers

A substantial part of training in the production is in the form of mentoring, where experienced staff members train new staff members thereby sharing their experience. And we do have a lot of experience to share: 54.7% of the staff members have been at the mill for more than ten years.

Skjern Papirfabrik sees it as a natural part of our activities to treat staff members with respect and dignity, thus avoiding discrimination. This is a natural part of being a responsible company in Denmark. We believe that this is highly contributable to the high seniority of our staff members.

In addition to mentoring, staff members are offered courses when expedient. This may be courses in the operation of equipment and machines, IT courses, occupational health courses, and many other subjects. A recent initiative is the implemen­ tation of a scheme where staff members from the production can apply for participating in long-term process operator training. In 2018, two staff members have attended a process operator training course, and the first staff member obtained his diploma.

”

14.3 years

was the average seniority in 2018

Staff members 80

18.9%

70

18.9%

29.7%

60 50 40 30 20 10 0

24.3%

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0-3 years of employment

4-9 years of employment

10-19 years of employment

>20 years of employment

2014

2015

2016

2017

2018

Occupational health and safety At Skjern Papirfabrik we believe that a good working environment strengthens the mill’s productivity resulting, among others, in a low sickness absence, higher job satisfaction, and more flexibility of the individual staff member.

The management and the health and safety organisation both play an active role, just as they have a large responsibility with regard to safeguarding a good and safe working environment for all staff members. The occupational health and safety organisation at Skjern Papirfabrik consists of seven health and safety representatives, three foremen, and the health and safety manager. In addition, since early 2016 an agreement has been in place with an external occupational health consultant who participates, among others, in the meetings of the occupational health and safety organisation to make its work more efficient.

All members taking a seat in this occupational health committee go through mandatory occupational health training. All members of the occupational health and safety organisation are active in the daily health and safety work. The health and safety work is an ongoing process with, among others, continuous activities to implement the proposals from the workplace assessments.

Development in number of accidents, accidents per million hours, and days of absence due to accidents 60 50 40 30 20 10 0

2014 Accidents

2015

2016

2017

2018

Accidents per million hours

The target for 2019 is zero serious accidents. In addition, the registration of near-miss events will continue to be in focus in 2019.

Occupational health and safety is a combination of staff members’ safety and the physical and mental impacts that staff members are exposed to.

2018: Workplace assessment, fire-fighting training, first-aid training. New heart defibrillator, information to all neighbours in joint network. Encouragement to register as “Heart racer.”

In 2018, nine notifiable accidents were registered, five of which did not lead to absence. The target of zero serious accidents was achieved for 2018. On the company’s info board the number of days since latest accident is presented.

Skjern Papirfabrik

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Quality and customer satisfaction Skjern Papirfabrik is an order producing mill, and all products are produced based on customer needs. The products are delivered as semi-products in large rolls, in narrow cut reels, or in sheets delivered on pallets.

In connection with the ISO 9001 certification our efforts for evaluation of customer satisfaction were systematised and are thus more quantifiable. In 2018 we measured customer satisfaction according to the new method by sending a table to relevant customers according to size, product type, etc.

To understand to our customers’ wishes and needs, in order that our products comply with exactly those requirements, is an essential priority in Skjern Papirfabrik’s way of working; it is a prerequisite for maintaining the close collaboration between Skjern Papirfabrik and our customers.

62%

38%

As a natural consequence, it has been decided to work towards an ISO 9001 quality certification that will be implemented by early 2019.

As a relatively minor paper mill Skjern Papirfabrik’s strength lies in being a good business partner, supplying quality products on time, and showing large flexibility when it comes to varying customer needs.

1. Negative

2. Poor

3. Sufficient

4. Satisfactory

5. Good

6. Excellent

The target for 2018 was to attain an average score of at least 5 for the different parameters - a target that was met.

Below, the results for the different parameters are shown: 8 6 4 2 0

Materialekvalitet

Leverings- Leveringssikkerhed/ sikkerhed/ dato mængde

Service/ kommunikation

Fleksibilitet

Overordnet bedømmelse

The complaints rate in 2018 was at 0.26%. It is expected in 2019 that this complaints rate will decrease thanks to higher focus on quality and internal control, cf. the newly certified quality management system.

Our target for 2019 is first and foremost to attain the ISO 9001 certification of Skjern Papirfabrik. The ISO 9001 certification is expected to have a positive impact on the entire organisation and customer satisfaction with Skjern Papirfabrik and our products.

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Skjern Papirfabrik

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UN Global Goals As part of the company’s social responsibility Skjern Papirfabrik has investigated how to support the UN Global Goals (also called SDGs - Sustainable Development Goals) based on our core business. The Global Goals call for action at global level among governments, businesses, and organisations to attain responses around a common set of goals and sub-goals dealing with poverty, health, education, climate change, and environment.

Skjern Papirfabrik contributes to Global Goal no. 7 by producing a gradually increasing share of district heating for the City of Skjern based on waste heat from, among others, the drying process of the paper machine. Global Goal no. 7 wishes to “ensure access to affordable, reliable, sustainable and modern energy for all”. Sub-goal 7.2 reads: “By 2030, increase substantially the share of renewable energy in the global energy mix”.

Therefore, in addition to the generation of district heating from waste heat it is relevant that Skjern Papirfabrik’s own boiler plant uses as large a share of biobased fuel as possible.

The target for 2019 is: Production of 48,000 MWh of district heating Use of a minimum of 95% of biofuels for steam generation.

Skjern Papirfabrik as a recycler naturally contributes to Global Goal no. 12 by boosting our capacity and thereby in an environmentally responsible way recycling a larger part of waste newsprint and packaging. Global Goal no. 12 aims at “Responsible consumption and production”. And Sub-goal 12.5 reads: ”By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse”.

Skjern Papirfabrik takes pride in attaining an environmentally acceptable management of our waste products. 98.4 % of all waste from Skjern Papirfabrik was recovered in 2018, and from 1st January 2019 an agreement has been entered to the effect that biomass bottom ash from our wood chip fired boiler is led back to the woods in order that valuable phosphorus compounds contained in the ashes can be used as a fertiliser in the woods. This supports Sub-goal 12.4: ”By 2020, achieve the environmentally sound management of chemicals and all wastes throughout their life cycle”.

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Corporate Social Responsibility Corporate Social Responsibility, CSR Social responsibility is a fundamental element for us as an organisation to appear as a legitimate and responsible company within the industry.

For many years Skjern Papirfabrik has considered it a natural part of our activities to contribute to a harmonic cooperation with the local community. This means, among others, that we invite local craftsmen to participate in tenders in connection with new projects.

Skjern Papirfabrik conducts many site tours at the mill, and for instance educational institutions, associations, and local authorities make good use of this offer, wanting to show their students / employees what happens in the recycling of paper, thus helping them understand how important it is to separate and recycle this important resource. Schools are encouraged to work with reuse and environmental issues, when they wish to organise tours of the company. The aim is to promote pupils’ thinking in relation to the environment and circular economy, and also to maximise pupils’ learning during their tour.

Skjern Papirfabrik is an independent company with only one production site located in Denmark. In Denmark the respect of human rights, including the dissociation from forced and child labour is an integrated part of Danish mentality, and Skjern Papirfabrik considers this a natural part of operating on an international market.

Skjern Papirfabrik complies with Danish law, thereby supporting the above-mentioned issues. This is also substantiated by Transparency International, as this organisation for several years has rated Denmark as one of the least corrupt countries in the world.

Skjern Papirfabrik is a partner company with Green Network, thereby demonstrating our desire to continuously develop our efforts within CSR/sustainability by sharing knowledge with other companies.

This partnership means that Skjern Papirfabrik has a third party who is ready to provide critical opinions and input for our present activities. Skjern Papirfabrik has a continuous dialogue with Green Network about our own efforts, and our staff members participate in seminars focusing on CSR and sustainability.

Skjern Papirfabrik supports a large number of small local and national NGOs. Examples of NGOs are associations supporting vulnerable groups or people suffering from various diseases, or local sports associations.

Back in 2013 Skjern Papirfabrik joined the UN Global Compact’s principles and is thus obliged to show an ethically correct execution of business.

Skjern Papirfabrik

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Mass balance CO² emissions from the combustion of natural gas, auto gas, and fuel oil 714 tonnes of CO² Evaporation of water 37,816 m3

Finished products 66,401 tonnes

Paper raw materials 74,875 tonnes

Water 280,419 m3

Energy 118,344 MWh

District heating sales 47,402 MWh

Water 318,235 m3

Waste 4,191 tonnes

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Skjern Papirfabrik

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Water balance Evaporation 37,816 m³

Sanitary wastewater 483 m³

Municipal water 3,788 m³

Water in finished products 4,316 m³

Water in raw materials 10,707 m³

Wastewater discharged to Tarm wastewater treatment plant 273,945 m³

Raw water 303,740 m³

Water in waste 1,675 m³

Notes on specification of quantities

Page 18

Municipal water

Consumption metered by local utility, Ringkøbing-Skjern Forsyning

Water in raw materials

Calculated from random sampling measurement

Raw water

Consumption metered by local utility, Ringkøbing-Skjern Forsyning

Evaporation

Calculated from mass balance of water

Water in waste

Calculated from random sampling measurement

Waste reject

Assessment, since rag is not suitable for sampling

Sanitary wastewater

Measurement of discharge

Discharge to Tarm wastewater treatment plant

Discharge metered by local utility, Ringkøbing-Skjern Forsyning

Water in finished products

Calculated/measured (average water content of 6.5%)

Water balance (continued) Water intake The mill’s process water is primarily unfiltered water from a former municipal drinking water well. The term used for this water quality in this report is “raw water”. The local utility of Ringkøbing-Skjern Forsyning supplies the mill with raw water. Supplies have been very stable, and thus no river water was used as process water during 2018.

”

decrease in specific

4.7% water consumption in 2018

8

In addition to raw water a small amount of municipal water is used. This water quality is used for sanitary water and drinking water as well as at few points in the process where completely clean water is needed.

6

Most of the process water is used through the spray nozzles on the paper machine. Then the recirculation of process water starts: the water is reused on average 15-20 times before discharge to the municipal treatment plant. The process water is filtered in vargo filters to retain fibres, before it is reused or discharged as process wastewater.

2

Water consumption per tonne of paper produced measured in m³/net tonne

4

0

2014

2015

2016

2017

2018

Specific water consumption

In 2018 the reduction of total water intake attained 4,134 m3, corresponding to a reduction of 1.3%.

The above figure shows the specific water consumption for the last five years.

The target for 2018 was to maintain the low intake in 2017, which has been met with a very fine margin. The reason for the lower water consumption is primarily a continuous high focus on the use of water in the process. The water consumption is monitored on a daily basis at executive level.

Over a five-year period the specific water consumption has decreased from 5.94 m3/net tonne to 4.63 m3/net tonne.

”

22.1%

Water intake and wastewater discharge measured in m³ 400000

decrease in specific water consumption over the last five years

Target for 2019 The target is to maintain focus on the very low water consumption attained in 2018. The target of maintaining the level from 2018 has been set out despite refurbishments in 2019 leading to an expected higher production.

300000 200000 100000 0

2014

2015

Total water intake

2016

2017

2018

Wastewater discharge

Skjern Papirfabrik

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Water balance (continued) Wastewater from Skjern Papirfabrik is led to public wastewater treatment at Tarm wastewater treatment plant. Skjern Papirfabrik has its own sewage pipeline from the mill to the treatment plant, and the process wastewater is led directly to Tarm treatment plant. In the below table the process wastewater limit values to be complied with at Skjern Papirfabrik are shown.

Furthermore, the average own control analysis results for 2018 are also shown. No exceedance of limit values was seen in 2018.

Wastewater volumes amounted in 2017 to 282,641 m3. The target for 2018 was to attain total wastewater volumes of 281,000 m3. This was attained since in 2018 only 273,945 m3 of process wastewater was discharged to the public wastewater treatment plant; thereby, a reduction in wastewater volumes of 8,696 m3 has been attained.

”

3.1%

reduction of wastewater volume in 2018

4.13 m3/net tonne of specific wastewater discharge in 2018.

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Parameter

Limit value

Average discharge

Water volume

1,240 m³/d

742 m³/d

pH

6.0-9.0

7.1

SS

1,000 mg/l

558 mg/l

COD

11,000 mg/l

4,633 mg/l

BOD

6,200 mg/l

2,692 mg/l

Tot-N

45 mg/l

17.7 mg/l

Tot-P

6 mg/l

2.9 mg/l

Chloride

1,000 mg/l

96 mg/l

Oil/grease

20 mg/l

19 mg/l

Chromium

0.3 mg/l

0.018 mg/l

Zinc

3 mg/l

0.283 mg/l

Cadmium

0.003 mg/l

0.002 mg/l

Molybdenum

0.03 mg/l

0.015 mg/l

Lead

0.1 mg/l

0.016 mg/l

Skjern Papirfabrik

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Energy balance Air emissions* CO² 714 tonnes NOx 32 tonnes

Electricity for paper production 21,608 MWh Electricity for heat generation 4,462 MWh Natural gas 3,100 MWh Wood chips for paper production 82,431 MWh

District heating sales 47,402 MWh

Auto diesel 35,861 L

* Relevant emissions according to environmental survey

Notes on specification of quantities

Page 22

Electricity, natural gas, and wood chips

Measured, consumed amount

CO² and NOx

Calculated from emission factors from the Danish Energy Agency’s website (CO²) and key figures from the Danish excise duty guidelines (NOx)

Auto diesel

Purchased quantity

Electricity for paper production

Incl. consumption for electricity borne room heating

Energy balance (continued)

Use of energy Natural gas and wood chips: Used for steam production in boilers.

Electricity: Used for electric motors, trucks, pumps, agitators, ventilators, heat pumps, etc.

Auto diesel: Used for wheeled loader.

Auto gas: Used for trucks in small amounts.

Development in district heating generation MWh

District heating sales Since 2010 district heating has been delivered to the local network. District heating is generated in a heat pump facility installed in 2012 using waste heat from the paper machine’s drying section. In addition, as from the end of 2015 district heating is also generated by one more heat pump utilising waste heat contained in the flue gas from the wood chip fired boiler. District heating is also generated in a excess production exchanger, utilising excess steam in connection with reduced absorption of steam from the paper machine, for instance in case of web break. The facility for utilisation of waste heat in the flue gas of the gas boiler is no longer in use.

Development in specific district heating production kWh/net tonne 800

50000

700

40000

600

30000

500

20000

400 300

10000 0

200 2014

” ”

2015

2016

2017

2018

62% Skjern was heated by means of waste of the heating needs of the City of

heat from Skjern Papirfabrik in 2018

100

2014

2015

2016

2017

2018

The development in specific district heating generation shows that there is an increase every year in the utilisation of the waste heat compared with the amount of produced net tonnage. This is due to the fact that we continuously find new options for the utilisation of waste heat as well as to our substantial and continuous efforts to optimise existing heat pump facilities.

2,619 households households had their heating needs covered in 2018 by district heating generated from waste heat at Skjern Papirfabrik

Skjern Papirfabrik

Page 23

Energy balance (continued) The energy results of the year show positive figures, both for electricity consumption, fuel consumption, CO2 emissions, and district heating generation.

It appears below that for the first time in the five-year period we have succeeded in exceeding the targets for the year for specific electricity consumption. The primary reason is a high output from the paper machine throughout the period along with a full benefit from the lighting project in which we converted to LED lighting in all production sections.

In the below figure developments in specific total energy consumption of both electricity and fuel are shown. Also here we see a positive development, since for the first time in the fiveyear period the curve shows a decreasing trend. The result of the year was 13.5 kWh above target, corresponding to 0.8%.

Development in specific energy consumption kWh/net tonne

Development in specific electricity kWh/net tonne

For the future, we already have two major electricity saving projects in the pipeline: In connection with the major refurbishment this coming summer the driveline of the paper machine will be completely replaced with a new and modern system. This has a large number of positive side effects. Savings are expected to attain some 10%, corresponding to around 300 MWh/year under the present production output.

When the drying section’s hood and its air distribution system are replaced in the same project it will be possible to control the air change in the drying section according to needs; today, ventilation is set at a maximum for reasons of comfort. This change is expected to lead to savings of 15% thanks to reduced speed of the exhaust fan, corresponding to some 225 MWh/year under the present production output.

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As described above it is a fact this year that the statement of specific fuel consumption fluctuates a lot due to fluctuating wood chip qualities. This has been tackled with the installation of a new steam flow meter in November 2017 that is to form the basis in the future for the calculation of specific steam consumption.

2018 has been used for the collection of data in order to establish reliable key figures. The statement shows an average steam consumption in 2018 of 1.58 tonnes of stem/net tonne of paper.

The energy targets for 2019 are based on expectations for savings thanks to the major refurbishment in weeks 29 and 30. For electricity, savings during the first five months of operation are expected to attain 220 MWh, corresponding to 1% or 3.3 kWh/ net tonne. In addition, a further 2.1 kWh of savings are expected through a general optimisation of operation, which gives a total of 5.4 kWh/net tonne. The new target for specific electricity consumption is set at 320 kWh/net tonne.

Energy balance (continued) We have high expectations for reductions in our specific total energy consumption. Annual savings are estimated at more than 6,000 MWh for drying energy due to more suitable blowing and distribution of drying air and highly reduced share of false air intake. In addition, we have increased the degree of insulation of the new hood and reduced the leakage of hot air to the machine hall. 6,000 MWh annually will for five months result in a total of 2,500 MWh for the year or 37 kWh/net tonne.

Development in total energy consumption – MWh 1800

120000

1600

100000

1400 1200

80000

1000

60000

800 600

40000

400

20000 0

Development in specific energy consumption kWh/net tonne

200 2014

2015

Total gas

2016

Total wood chips

2017

2018

Total electricity

0

2014

2015

Gas + wood chips

2016 Electricity

2017

2018 Total energy

Total energy

Skjern Papirfabrik

Page 25

Energy balance (continued) Development in air emissions Specific CO2 emissions have been reduced by 95% since the installation of the wood chip fired boiler in 2014.

In 2018, emissions were only 11 kg of CO2/net tonne of paper.

Specific CO2 emissions kilogram/net tonne 250

is the specific CO2 emission reduced after the wood chip boiler is taken into use

200 150 100 50 0

”

95.0%

2014 CO2

2015

2016

2017

2018

”

11 kg CO² /net tonne of paper was only emitted in 2018

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Waste Waste generated at Skjern Papirfabrik mainly consists of segregated impurities from paper raw materials containing a number of non-usable materials such as plastics, insoluble paper, paper clips, textile residues, etc. These residues are segregated in the pulper and in the subsequent cleaning units.

In addition, the wood chip fired boiler generates a considerable amount of ashes. Since we use clean wood chips the major part of the ashes can be led back to the woods where they can be used as a fertiliser for trees. In this way valuable phosphorus resources stay in the loop.

It appears from the above that specific waste arisings have been increasing over the last five years. This is primarily due to the fact that since 2016 amounts of ashes have increased due to higher steam production based on biomass.

Total waste arisings are expected to increase in 2019 as a natural consequence of expected higher net production.

The major part of waste can be recovered in heat generation, soil improvement, or other forms of recovery.

Waste in tonne

Specific waste kilogram/net tonne

4500

4500

4000

4000

3500

3500

3000

3000

2500

2500

2000

2000

1500

1500

1000

1000

500

500

0

2017

2018

0

2013

2014

2015

2016

2017

Reject for soil improvement

Waste reject

Reject for soil improvement

Landfill

Hazardous waste

Total quantities

Hazardous waste

Total quantities

Total waste arisings have increased from 2017, which is primarily due to a larger net production.

An increase in the generation of ashes has also been seen from 2018; this is a natural consequence of a major part of the natural gas consumption for steam generation being substituted with wood chips in 2018; also, production was higher, which leads to larger steam production.

�

98.4%

of the waste was recovered in 2018

Skjern Papirfabrik

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Global Compact The report’s relation to Global Compact As a member of the UN Global Compact, Skjern Papirfabrik is committed being in compliance with the ten basic principles.

Skjern Papirfabrik acknowledges the growing importance of companies’ corporate social responsibility, and as a reflection of this the mill has since 2013 been a member of the UN Global Compact, the world’s largest initiative for propagation of corporate social responsibility - CSR. CEO Jørgen Thomsen

The below table shows the correlation between the report and these ten principles.

Skjern Papirfabrik has been a member of the UN Global Compact and Global Compact’s Nordic network since 2013.

Global Compact principles The company should Human rights

Labour

Environment

Anti-corruption

Page

01. S upport and respect the protection of internationally proclaimed human rights

15

02. M ake sure that it is not complicit in human rights abuses

15

03. U phold the freedom of association and the effective recognition of the right to collective bargaining

10 – 11

04. S upport the elimination of all forms of forced and compulsory labour

10 – 11

05. S upport the effective abolition of child labour

10 – 11

06. Eliminate discrimination in respect of employment and occupation

10 – 11

07. S upport a precautionary approach to environmental challenges

18 – 28

08. U ndertake initiatives to promote greater environmental responsibility

7 + 14

09. Encourage the development and diffusion of environmentally friendly technologies

18 – 28

10. Work against corruption in all its forms, including extortion and bribery

15

Read more about the UN Global Compact and the principles of the organisation on

www.unglobalcompact.org

Skjern Papirfabrik

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BEL

NOR DI

N SWA ECO LA

C

Printed matter 5041 0751

CO2 NEUTRAL PRINTED MATTER CLIMATECALC CC-000033/DK

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www.skjernpaper.com

Skjern Papirfabrik Birkvej 14 • DK-6900 Skjern Tel. +45 9735 1155 • Fax +45 9735 0909 • skjernpaper@skjernpaper.com