Report by ERA Research

ERA Forest Products Research released their latest report on ESG commitments, progress and gaps for pulp, paper, packaging and tissue companies. Within the sphere of pulp producers, Mercer and Sappi are cited as examples of companies with strong disclosure and targets. In European paper, pulp and packaging, ambitious targets appear common but data and disclosures are healthy, with firms including UPM and Billerud mentioned. In the packaging, paper and tissue industry, WestRock appears to lead the way, with Graphic Packaging also referenced as having good targets that could spur near-term action.

Materials

Report by ERA Research

Refreshed management team has taken bold action to enter North America (via Verso acquisition) and to exit underperforming assets - a leader in several niche markets, this packaging company has limited exposure to skyrocketing European energy prices, while its export options are enhanced with its low energy cost-base as well as the weaker euro. Q2 results were very strong, with sales growth across segments and a consolidated EBITDA margin of 20%. The outlook for Q3 is for price / mix to entirely offset input cost inflation. TP 190 SEK (45% upside).