Certified forestry

Holmen's own forests meet around 45 percent of the need for wood. The remainder is purchased, mainly from private forest owners in Sweden. Only a small proportion is imported. Traceability requirements apply to all purchases of wood.

Guidelines for purchasing wood

Holmen has applied clear guidelines for purchases of wood since 1998. These guidelines contain environmental requirements and define the types of forest from which the Holmen Group does not buy wood. If the guidelines are not followed, for example in case the incorrect origin of the wood has been specified, Holmen has the right to terminate the deal without compensating the supplier. Traceability requirements apply to all purchases of wood.

Purchases of wood from Swedish counterparties and imports are in accordance with internal requirements for traceability.

Holmen does not buy wood from forests that:

• Are key biotopes in Sweden according to the Swedish Forest Agency's definition and methodology.
• Are protected for nature conservation reasons.
• Are primeval forests, that is to say, distinctly different-aged and stratified natural forests with abundant occurrence of old, coarse trees and abundant dead wood at various decomposition stages.
• Harvested illegally.
• Derived from genetically modified trees.
• Grows in areas where traditional customary and human rights are actively hindered.
• Has High Conservation Value Forests.
• Are natural forests that have been transformed into plantations or other land use.

Exceptions from the above can be made when felling is approved by the Swedish Forest Agency and carried out in accordance with its recommendations, for example biotop care harvesting.

Statutory requirements

Holmen's forestry is regulated by comprehensive regulations at various levels, from Sweden's Forestry Act and Environmental Code to certification requirements and the EU's Timber Regulation.

In Sweden, all thinning and clearcutting of more than half a hectare in an area must be reported to and approved by the National Forest Agency. This notification must also specify how regeneration will take place. The Swedish Forest Agency conducts spot checks to verify how the work is performed.

In Estonia the Estonian forest management authority, like the Swedish authorities, verifies that harvesting and regeneration are carried out correctly.

Wood procurement in Sweden

All of Holmen’s forestry is certified by both PEFC and FSC® (FSC-ID). Holmen Forest also applies the environmental management system ISO 14001.

The forestry certifications are a way to ensure that Holmen’s forests are managed according to recognised standards accounting for environmental, production, and social assets. Most of Holmen’s forests are located in northern Sweden, while its mills are in the southern and central parts of the country. The mills consequently largely source their wood through purchases from private forest owners in those parts of the country.

Taking into account the volume of sawmill chips used for material purposes in our own industry, Holmen consumed just over 6 million cubic meters of wood raw material in 2022. The harvest from our own forests amounted to 2.8 million cubic meters of fub. The harvesting from our own forests was equivalent to approximately 45 percent of the Group’s wood requirement.

A total of ca 50 percent of the timber purchased to Holmen's facilities are certified according to PEFC, FSC® (FSC-ID) or double certified

The table below shows how much of the wood delivered to Holmen’s mills originates from PEFC, FSC® (FSC-ID) or double certified forestry.

All the wood in Holmen Skog holds traceability certification (FSC-ID) (FSC® Chain of Custody) and has been subject to control of the origin of the wood; (FSC® Controlled Wood), which serves as proof that Holmen has and applies procedures to ensure that no wood derives from controversial sources, i.e. it has not been harvested illegally or in contravention of the rights of indigenous peoples, does not come from forests with high conservation value, has not been genetically modified and does not come from natural forests that have been converted into plantations

Iggesund Mill, Iggesund Sawmill, Braviken Sawmill, Linghem Sawmill, Hallsta Paper Mill, and Braviken Paper Mill have their own chain-of-custody certificates under both PEFC and FSC® (FSC-ID).

You can find the sawmills certificates here.

Wood procurement in the Baltics

In 2022, Holmen imported approximately 100,000 cubic meters of wood or woodchips via Holmen's wholly owned subsidiary Holmen Mets which purchases wood from Estonia and Latvia and transports it to its own terminals. Most of it is delivered to the Iggesund Mill and Hallsta Paper Mill, yet, smaller volumes are delivered to Braviken Paper Mill, Braviken Sawmill as well as external buyers. On rare occasions, when the specific quality of the spruce is requested from the mills, Holmen also purchases wood from Lithuania and Finland.

Thanks to our local presence in the Baltics we have a very good knowledge of the forest industry and of laws and regulations regulating the forestry in the Baltics.

Holmen Mets are certified under the FSC® (FSC-ID) standard for Chain of Custody and Controlled Wood. Holmen considers the systems for traceability now in use in Estonia to meet exacting requirements. The Estonian state-owned forests are certified under FSC® Forest Management Standard. This is equivalent to around half the total acreage of forest land in the country. The proportion of privately owned forests, certified under the forest management standard is quite small. The Estonian authorities have good knowledge of who owns the forests and continuously verify compliance with laws and regulations. Holmen Mets validate that all volumes comply with applicable laws. If needed, Holmen Mets carry out on-site reviews in the forest when procuring wood.

Wood purchased from Estonia is either certified under the FSC® standard for Controlled Wood (FSC-ID) or purchased from suppliers that are very well known to us and where we can carry out the chain of custody control ourselves.

The wood and woodchips purchased from Latvia, Lithuania, and Finland are certified under the FSC® standard for Controlled Wood (FSC-ID).

Wood procurement in the UK

The paperboard mill in Workington consumed 280 000 cubic meters of wood in 2022. One-quarter of the wood comes from state-owned forests, mainly in Southwest Scotland and northern England. The rest is sourced from private forest owners. The mill in Workington holds chain-of-custody certification under FSC® (FSC-ID). All wood meets the criteria for chain-of-custody certification and checks of the wood's origin.

Holmen Iggesund forestry department procures both raw material of wood fiber as well as biofuel for the CHP-plant (Combined Heat and Power-plant). Holmen Iggesund forestry department has its own chain-of-custody certification under FSC® (FSC-ID) and thus ensures that there is a process that all documentation requirements are met when sourcing wood.

All wood comes from sustainable and legal sources which are guaranteed by a felling license. The felling license declares which forest can be felled and that the forest must be replanted. It also secures that no natural forests are negatively affected by Holmen. Holmen purchases 100 % spruce, which does not conflict with the natural forests in the north of the UK as these are pine forests.

Holmen buys mostly wood that complies with the chain-of-custody certificate but in some cases, we also buy wood that complies with the FSC® standard for Controlled Wood (FSC-ID) but not with chain-of-custody - for example from the production of new wind farms built in the UK. In these cases, the area is not replanted and therefore does not comply with chains of custody but these fellings are granted by local authorities, and therefore compliant with controlled wood.