Sustainable ValueCO2 Creation by Pulp & Paper Companies www.SustainableValue.com Authors Ralf Barkemeyer, Frank Figge, Tobias Hahn, Andrea Liesen and Frank Müller This present survey was funded by the Swedish MISTRA foundation under the umbrella of the research projeĐƚ ͞^ƵƐƚĂŝŶĂďůĞ /ŶǀĞƐƚŵĞŶƚ ZĞƐĞĂƌĐŚ WůĂƚĨŽƌŵ͟ ;^/ZWͿ͕ ƐƵďƉƌŽũĞĐƚ ͞sĂůƵĞ-based ĞŶǀŝƌŽŶŵĞŶƚĂůƐƵƐƚĂŝŶĂďŝůŝƚLJĂŶĂůLJƐŝƐŽĨEŽƌĚŝĐĐŽŵƉĂŶŝĞƐ͟. The study was authored by resear- chers of the following institutions: University of Leeds Euromed Management IZT ʹ Institute for Futures Marseille Studies and Technology Sustainability Research Assessment Institute, School of Earth & Domaine de Luminy - Environment BP 921 Schopenhauerstr. 26 13 288 Marseille cedex 9 14129 Berlin Leeds, LS2 9JT France Germany United Kingdom Contact: [email protected] We suggest to cite this report as follows: Barkemeyer, R.; Figge, F.; Hahn, T.; Liesen, A.; & Müller, F. (2011). Sustainable ValueCO2 Creation by Pulp & Paper Companies. Sustainable Value Research: Leeds, Marseille and Berlin. © Leeds, Marseille and Berlin 2011. All rights reserved. Dissemination of this document is free as long as full reference to the authors is made. Title art work: aboutpixel.de / Lesestoff © Rainer Sturm Sustainable ValueCO2 Creation by Pulp & Paper Companies Table of Contents Table of Contents Table of Contents.............................................................................................................. 1 List of Figures and Tables .................................................................................................. 3 Foreword .......................................................................................................................... 5 Executive Summary .......................................................................................................... 6 1 Introduction .............................................................................................................. 9 2 Method for Calculating Sustainable Value................................................................ 10 2.1 The Sustainable Value Approach in Brief ................................................................. 10 2.2 The Valuation Logic of Sustainable ValueCO2 ............................................................ 11 2.3 Calculating Sustainable ValueCO2 ............................................................................. 12 2.4 Making Allowances for Company Size...................................................................... 15 2.5 Explanatory Power of Sustainable ValueCO2 ............................................................. 16 3 Scope of the Study................................................................................................... 17 3.1 Companies Studied ................................................................................................... 17 3.2 Indicators Assessed .................................................................................................. 19 3.3 Review Period ........................................................................................................... 21 3.4 CO2-Data Sources and Data Collection ..................................................................... 21 3.5 Data Coverage, Treatment of Missing Data and Data Problems ............................. 21 3.5.1 Data Coverage .................................................................................................. 22 3.5.2 Calculating and Estimating Performance Data ................................................ 23 3.5.3 Data Quality ...................................................................................................... 25 3.6 Emissions from Biofuels and Electricity Generation ................................................. 27 3.6.1 Biogenic Carbon Dioxide .................................................................................. 27 3.6.2 Indirect CO2 emissions or electricity usage ...................................................... 28 4 Results: Overview .................................................................................................... 31 4.1 EBIT-based assessment results ................................................................................. 31 1 Sustainable ValueCO2 Creation by Pulp & Paper Companies Table of Contents 4.1.1 Absolute Sustainable ValueCO2 (EBIT scenario) ................................................ 31 4.1.2 Sustainable ValueCO2 Margin (EBIT scenario) ................................................... 34 4.2 NVA-based assessment results ................................................................................. 36 4.2.1 Absolute Sustainable ValueCO2 (NVA scenario) ................................................ 37 4.2.2 Sustainable ValueCO2 Margin (NVA scenario) ................................................... 39 5 Discussion ............................................................................................................... 42 5.1 Benchmark development .......................................................................................... 42 5.2 Development of selected companies ........................................................................ 44 5.3 Conversion factors and biogenic emissions .............................................................. 47 6 Conclusions and Outlook ......................................................................................... 50 References ...................................................................................................................... 54 2 Sustainable Value Creation by Pulp & Paper Companies List of Figures and Tables List of Figures and Tables Figure 1: Value-oriented analysis of resource use ................................................................... 10 Figure 2: Value-oriented analysis of resource use ʹ CO2 case ................................................. 12 Figure 3: Calculation of the Sustainable ValueCO2 of SCA in 2009 ............................................ 15 Figure 4: Biogenic emissions as multiples of total scope 1&2 emissions in 2008 (various companies) ....................................................................................................................... 28 Figure 5: Hypothetical CO2 Performance of Holmen in 2009 in the four Nordic Countries .... 30 Figure 6: Absolute Sustainable ValueCO2 of pulp & paper companies in the EBIT-based assessment ....................................................................................................................... 33 Figure 7: Absolute Sustainable ValueCO2 of selected pulp & paper companies in the EBIT- based assessment............................................................................................................. 34 Figure 8: Sustainable ValueCO2 Margin of pulp & paper companies in the EBIT-based assessment ....................................................................................................................... 36 Figure 9: Absolute Sustainable ValueCO2 of pulp & paper companies in the NVA-based assessment ....................................................................................................................... 38 Figure 10: Sustainable ValueCO2 Margin of pulp & paper companies in the NVA-based assessment ....................................................................................................................... 41 Figure 11: Benchmark CO2 efficiency, accumulated return and accumulated CO2 emissions 2005 - 2009 (EBIT scenario) .............................................................................................. 42 Figure 12: Benchmark CO2 efficiency, accumulated return and accumulated CO2 emissions 2005 - 2009 (NVA scenario).............................................................................................. 43 Figure 13: Comparison of energy-efficiency and CO2-efficiency (NVA scenario; selected companies in the year 2008) ............................................................................................ 48 Table 1: Benchmark efficiencies 2005 - 2009 .......................................................................... 14 Table 2: Overview of companies .............................................................................................. 18 Table 3: Overview of countries of origin .................................................................................. 19 Table 4: Overview of industry affiliation .................................................................................. 19 Table 5: Data coverage ʹ EBIT based analysis .......................................................................... 22 Table 6: Data coverage ʹ NVA based analysis .......................................................................... 23 Table 7: Electricity-derived CO2-Emission Factors for Nordic Countries ................................ 29 3 Sustainable Value Creation by Pulp & Paper Companies List of Figures and Tables Table 8: Absolute Sustainable ValueCO2 and ranking of pulp & paper companies in the EBIT- ďĂƐĞĚĂƐƐĞƐƐŵĞŶƚ;ŝŶΦϭ͕ϬϬϬͿ ......................................................................................... 31 Table 9: Sustainable ValueCO2 Margin of pulp & paper companies in the EBIT-based assessment ....................................................................................................................... 35 Table 10: Absolute Sustainable ValueCO2 and ranking of pulp & paper companies in the NVA- ďĂƐĞĚĂƐƐĞƐƐŵĞŶƚ;ŝŶΦϭ͕ϬϬϬͿ