Stora Enso
Climate Impact & Sustainability Data (2018, 2019, 2020, 2021, 2022, 2023, Q1 2024)
Reporting Period: 2018
Environmental Metrics
ESG Focus Areas
- Climate change
- Sustainable forest management
- Human rights
- Responsible sourcing
- Sustainable materials and products
- Business ethics
Environmental Achievements
- CO2e emissions were 18% lower than the 2010 base-year level.
- 96% of the lands we own or manage were covered by forest certification schemes.
- 98% utilisation rate for process residuals and waste.
- Reduced electricity and heat consumption per saleable tonne of board, pulp, and paper by 4.2% compared to 2010 baseline.
Social Achievements
- Total Recordable Incident (TRI) rate decreased to 6.1 (7.4 in 2017).
- Leadership Index improved to 83/100 (81 in 2017).
- Code of Conduct Index improved to 85/100 (83 in 2017).
- EUR 2.7 million voluntary community investments.
Governance Achievements
- Defined eight highest priority human rights.
- 95% of supplier spend covered by our Supplier Code of Conduct.
Climate Goals & Targets
- Net zero emissions by 2050
- Reduce greenhouse gas emissions from operations by 31% per tonne of pulp, paper and board produced by 2030 (from 2010 baseline).
- Reduce specific electricity and heat consumption per tonne of pulp, paper, and board production by 15% by 2020 (from 2010 baseline).
Environmental Challenges
- Declining European paper demand (3–5% per year).
- Water scarcity impacting some mills.
- Land invasions in Brazil.
- Coal dependence at Beihai Mill.
- Supply chain disruptions due to extreme weather events (e.g., forest fires).
Mitigation Strategies
- Capacity closures and conversions in paper production.
- Investments in water efficiency and wastewater treatment.
- Dialogue with landless movements and implementation of Sustainable Settlements Initiative.
- Investigation of non-fossil fuel alternatives for Beihai Mill.
- Adaptation of forestry operations to changing climatic conditions, including use of digital services for soil condition forecasts.
Supply Chain Management
Supplier Audits: 52 third-party audits in 2018
Responsible Procurement
- Supplier Code of Conduct (SCoC); sustainability criteria in tenders; safety management online training; pre-qualification process for new suppliers; risk mapping and auditing; deep dives into specific supply chains.
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events (e.g., droughts, forest fires)
- Water scarcity
Transition Risks
- Increased costs of emission allowances; regulatory changes; market shifts towards renewable materials.
Opportunities
- Development of energy-efficient products; increased demand for renewable materials; growth in bioeconomy.
Reporting Standards
Frameworks Used: GRI Standards: Core option, Greenhouse Gas Protocol
Certifications: ISO 14001, ISO 50001, OHSAS 18001, FSC, PEFC
Third-party Assurance: PricewaterhouseCoopers (PwC)
UN Sustainable Development Goals
- SDG 12 (Responsible Consumption and Production)
- SDG 13 (Climate Action)
- SDG 15 (Life on Land)
Renewable materials and sustainable forest management; reduction of greenhouse gas emissions; responsible land use and biodiversity conservation.
Sustainable Products & Innovation
- Lineo™ by Stora Enso; DuraSense™ by Stora Enso; ECO™ RFID tag; Trayforma™; Performa Brilliance; Natura Life; Multicopy Zero; biocomposites; intelligent packaging.
Awards & Recognition
- Top-ranked in greenhouse gas management by Transition Pathway Initiative; included on CDP’s Climate A List; ranked number 12 globally and number 1 in Finland in gender balance and gender equality by Equileap; ranked as the most sustainable listed company in Sweden by Dagens Industri, Aktuell Hållbarhet, and Lund University School of Economics and Management; Lineo™ awarded ‘Bio-Based Product of the Year’, ‘Best Product Innovation’ and ‘Innovative Product’.
Reporting Period: 2019
Environmental Metrics
ESG Focus Areas
- Circular bioeconomy
- Climate Action
- Responsible Consumption and Production
- Life on Land
- Sustainable forestry
- Human rights
- Business ethics
- Supply chain sustainability
Environmental Achievements
- CO2e emissions were 25% lower than the 2010 base-year level
- 98% of the lands Stora Enso owns or manages covered by forest certification schemes
- Total climate benefit 12 million tonnes of CO2e with our renewable products and forest carbon sinks
- 20 million tonnes of CO2 saved in 2019 by substituting fossil-based materials
Social Achievements
- EUR 2.7 million voluntary community investments
- 84% of our employees reported that their manager was able to create diverse teams
- 86% response rate to employee survey
- Formal grievance mechanism opened to all stakeholders globally
Governance Achievements
- Issued first Green Bonds
- Established a Forest division to add transparency
- Merged containerboard business into Packaging Materials division
- Sustainability is one of the performance metrics in the remuneration of GLT members
Climate Goals & Targets
- Net zero emissions by 2050
- Increase the proportion of working hours and in-kind contributions to community investment to 70% by 2030, excluding joint operations
- Reduce electricity and heat consumption per saleable tonne of board, pulp, and paper by 15% by 2020 from a 2010 base-year
- Reduce greenhouse gas emissions from operations by 31% per tonne of pulp, paper and board produced by 2030 compared with the 2010 base-year
Environmental Challenges
- Lower prices for products affected operational EBIT
- Declining paper business
- Political and economic instability
- Illegal land invasions in Brazil
- Water stress in some mill locations
- Insufficient sustainable supply chains for non-fossil fuels in some regions
Mitigation Strategies
- Profit protection programme
- Conversion of Oulu paper mill to produce kraftliner
- Strengthened cash flow management
- Sustainable Settlements Initiative in Brazil
- Investments in water treatment improvements and closed-loop cooling systems
- Investigation of long-term options to move away from coal to biomass and other non-fossil fuels at Beihai Mill
Supply Chain Management
Supplier Audits: 62 third-party supplier audits in 2019
Responsible Procurement
- Supplier Code of Conduct
- Sustainability criteria in tenders
- Deep dives into specific supply chains
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather
- Changes in temperature, wind, and rainfall
Transition Risks
- Regulatory changes
- Market shifts
- Increased emission allowance prices
Opportunities
- Development of energy-efficient products
- Substitution of fossil-based materials
- Growth in renewable energy sector
Reporting Standards
Frameworks Used: GRI, TCFD
Certifications: ISO 14001, ISO 50001, FSC, PEFC
Third-party Assurance: Independent third-party assurance provider with Limited Assurance; Reasonable Assurance for direct and indirect fossil CO2e emissions
UN Sustainable Development Goals
- SDG 12
- SDG 13
- SDG 15
Stora Enso's initiatives contribute to these goals through sustainable forestry, renewable materials, emission reductions, and community engagement.
Sustainable Products & Innovation
- Formed fiber products
- Lignin-based products
- Biocomposites
- Intelligent packaging
- Plastic-free RFID tags
- Renewable and biodegradable straw
Awards & Recognition
- German Packaging Award
- ScanStar 2019
- WorldStar 2020
- Industry of Things World Awards 2019
- Finance for the Future Awards
Reporting Period: 2020
Environmental Metrics
ESG Focus Areas
- Climate change
- Sustainable forestry and biodiversity
- Renewable and circular products
- Occupational Health and Safety
Environmental Achievements
- CO2e emissions were 26% lower than the 2010 base-year level.
- Substitution of fossil materials prevents nearly 18Mt of CO2 annually from entering the atmosphere.
- Process residuals utilisation rate was 98%.
- Share of biomass in energy generation was 82%.
Social Achievements
- Launched a new human rights e-learning.
- 2684 employees involved in community investment activities during working hours.
- Published Circular Design Guidelines.
- Code of Conduct Index increased to 86.
Governance Achievements
- Updated Supplier Code of Conduct.
- Increased Code of Conduct Index to 86.
- Implemented Ethics and Compliance Self-Assessment Tool (T.E.S.T.).
Climate Goals & Targets
- Net zero emissions by 2050
- Reduce GHG emissions from operations by 31% per tonne of pulp, paper, and board produced by 2030.
- Increase the proportion of working hours and in-kind contributions to community investment to 70% by the end of 2023.
- Not disclosed
Environmental Challenges
- Covid-19 pandemic impact on operations and community engagement.
- Water scarcity in some locations.
- Illegal land invasions in Brazil.
- Coal dependency at Beihai Mill in China.
Mitigation Strategies
- Implemented various measures to secure employee health and safety during the pandemic.
- Implemented water stewardship initiatives, including investments in closed-loop cooling systems.
- Implemented Sustainable Settlements Initiative in Brazil.
- Gradually transitioning Beihai Mill from coal to biomass and other non-fossil fuels.
Supply Chain Management
Supplier Audits: 51% of high-risk suppliers covered by third-party sustainability audits (2020)
Responsible Procurement
- Supplier Code of Conduct
- Sustainability criteria in tendering
- Deep dives and on-site visits
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather
- Changes in temperature, wind, and rainfall patterns
Transition Risks
- Regulatory changes
- Market shifts
- Carbon leakage
Opportunities
- Development of energy-efficient products
- Increased demand for renewable solutions
Reporting Standards
Frameworks Used: GRI, SASB, TCFD
Certifications: ISO 14001, ISO 45001, ISO 50001, FSC, PEFC
Third-party Assurance: PricewaterhouseCoopers
UN Sustainable Development Goals
- SDG 12
- SDG 13
- SDG 15
Initiatives contribute to these goals through renewable materials, sustainable forest management, circular economy practices, and community engagement.
Sustainable Products & Innovation
- VersaLime™
- DuraSense® Eco PP
- Formed fiber products
- Biofoam
- Cross-Laminated Timber (CLT)
Awards & Recognition
- Top-ranked in greenhouse gas management by TPI (2020)
- Highest A+ ranking for Annual Report 2019 by ReportWatch/Comprend
- Top ten sustainability reports globally by WBCSD (2020)
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- climate change
- biodiversity
- circular economy
Environmental Achievements
- Reduced scope 1 and 2 GHG emissions by 14% from the 2019 base-year.
- Reduced scope 3 GHG emissions by 2% from the 2019 base-year.
- 93% of products were recyclable by the end of 2021.
Social Achievements
- Launched a global initiative, 'We Belong Here', to build safer and more inclusive workplaces.
- 60% of employees participated in 'We Belong Here' workshops.
Governance Achievements
- 117 potential non-compliance cases reported in 2021 (86 in 2020).
- 98 investigations of potential non-compliance completed.
Climate Goals & Targets
- Offer 100% regenerative products and solutions by 2050.
- Achieve net-positive impact on biodiversity in own forests and plantations by 2050.
- Reduce absolute scope 1 and 2 GHG emissions from operations by 50% by 2030 from the 2019 base-year.
- Reduce scope 3 GHG emissions by 50% by 2030 from the 2019 base-year.
- Achieve 100% recyclable products by 2030.
Environmental Challenges
- Supply chain disruptions due to macroeconomic turbulence and supply chain disturbances.
- Structural decline in the paper market.
- Increased input costs (wood, paper for recycling, energy).
- Covid-19 pandemic impact on demand and prices.
- Global logistical challenges.
Mitigation Strategies
- Renewed sustainability ambitions with a regenerative stance.
- Focused on growth in leading market positions.
- Restructured paper business (closed two paper sites, divested one).
- Invested in expanding board production.
- Invested in improving recycling throughout Central and Eastern Europe.
- Developed alternative sourcing strategies.
- Improved energy efficiency of production processes.
- Improved efficiency and lowered carbon intensity with suppliers and logistics.
Supply Chain Management
Supplier Audits: 96% of total spend on materials, goods, and services covered by Supplier Code of Conduct.
Responsible Procurement
- Supplier Code of Conduct (SCoC)
Climate-Related Risks & Opportunities
Physical Risks
- Changes in precipitation patterns
- Droughts
- Extreme weather events
- Forest fires
- Insect outbreaks
- Water scarcity
- Changes to precipitation patterns
- Rise in sea level
- Changing temperatures
Transition Risks
- Increasing greenhouse gas emission costs
- Energy prices
- Sustainable product initiatives and requirements
Opportunities
- Growing trees absorb carbon
- Products store carbon
- Low-carbon alternatives to fossil fuels
- Development of energy-efficient products
Reporting Standards
Frameworks Used: Science Based Targets initiative, UN Global Compact, UN’s Guiding Principles on Business and Human Rights, TCFD
Certifications: ISO 9001, ISO 14001, ISO 50001, ISO 45001, FSC, PEFC, ISO 22000, FSSC 22000, FDA
Third-party Assurance: Independent third-party assurance provider (Limited Assurance); Reasonable Assurance for direct and indirect fossil CO2e emissions.
UN Sustainable Development Goals
- SDG 12
- SDG 13
- SDG 15
Stora Enso supports all seventeen SDGs, and goals 12 (Responsible consumption and production), 13 (Climate action), and 15 (Life on land) have been identified as most relevant where the Group has the largest impact through its operations and products.
Sustainable Products & Innovation
- Lignode (kraft lignin)
- Trayforma
- AvantForte
- Aqua and Aqua+ dispersion barriers
- Performa Light and Performa Light CarbonZero
- Papira and Fibrease wood foams
- NeoFiber carbon fiber
Awards & Recognition
- 24 international design awards for commercialised packaging solutions
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- Climate change
- Biodiversity
- Circularity
- Human Rights
Environmental Achievements
- 98% process residuals utilization rate
- Reduced water use and minimized impacts on water quality
- All industrial operations implement and maintain third-party certified environmental management systems (ISO 14001)
Social Achievements
- Active engagement with stakeholders in forest management
- Respect for traditional and multiple uses of forests
- Recognition of the unique economic and cultural rights of indigenous people
Governance Achievements
- Compliance with all applicable legal and regulatory obligations
- Proactive engagement in relevant policy developments
- Third-party certified environmental management systems
Climate Goals & Targets
- Net-zero emissions by 2050 (aligned with 1.5-degree scenario)
- Provide 100% regenerative solutions by 2050
- Reduce water use and minimize impacts on water quality
- Achieve 0.8% annual energy savings by 2030
Environmental Challenges
- Water scarcity impacting some mills
- Need to reduce dependency on fossil fuels
- Balancing wood supply and demand while protecting biodiversity
Mitigation Strategies
- Water risk management and water accounting
- Investing in energy efficiency and biomass energy
- Sustainable forest management practices and responsible sourcing
Supply Chain Management
Responsible Procurement
- Stora Enso Supplier Code of Conduct (SCoC)
- Sustainability criteria in tenders since 2018
- Due diligence on Conflict Minerals
Climate-Related Risks & Opportunities
Physical Risks
- Climate change-related natural disasters
Transition Risks
- Regulatory changes (e.g., EU Climate Law, Fit for 55 package)
- Market shifts towards low-carbon alternatives
Opportunities
- Developing renewable products and solutions
Reporting Standards
Frameworks Used: GRI, CDP, Science Based Targets initiative, Paper Profile, UN Sustainable Development Goals (SDGs 12, 13, 15)
Certifications: ISO 14001, ISO 22000, FSSC 22000, PEFC, FSC
UN Sustainable Development Goals
- SDG 12
- SDG 13
- SDG 15
Contribution to responsible consumption and production, climate action, and life on land
Sustainable Products & Innovation
- Renewable packaging, paper and biomaterials products
- Wood pellets for energy generation
- Lignin to replace plastics
Reporting Period: 2023
Environmental Metrics
ESG Focus Areas
- climate change
- biodiversity
- circularity
Environmental Achievements
- Scope 1 & 2 CO2e emissions were 41% lower than in 2019
- Scope 3 emissions decreased by 34% compared to the 2019 baseline
- 99% of the land we own or manage was covered by forest certification schemes
- 94% of our products were recyclable
Social Achievements
- Improved safety performance in 2023
- Employee engagement scores were 8.0 and 7.8, both slightly above the industry benchmark
- Share of women among all managers was 24%
- Completed the child labour remediation programme in Pakistan
Governance Achievements
- Strengthened the Group’s long-term competitiveness through restructuring
- Improved profitability and focused capital allocation on strategic growth markets
- Implemented a leaner organisation with profit and loss responsibility assigned to divisions and business units
- Achieved a significant working capital reduction of EUR 650 million
Climate Goals & Targets
- Offer 100% regenerative products and solutions by 2050
- Achieve net zero carbon emissions by 2040
- Reduce absolute carbon dioxide emissions by 50% by 2030 from the 2019 baseline
- Achieve 100% technically recyclable products by 2030
- Achieve 85% actual recycling target in Europe by 2030
- Increase the share of female managers to 25% by the end of 2024
- Reduce water discharges per saleable tonne by 17% by 2030 from 2019 baseline
Environmental Challenges
- Unprecedented market conditions with lower demand and volumes
- Deteriorating market conditions and price pressure for all segments
- Geopolitical disruption worsening global trade and supply chains
- Increasing sustainability demands
Mitigation Strategies
- Restructuring programme to strengthen competitiveness and improve profitability
- Closure of several production units with low long-term competitiveness
- Decentralisation of operations and leaner Group functions to increase agility and customer focus
- Significant working capital reduction to generate cash flow
Supply Chain Management
Supplier Audits: 25 Supplier Code of Conduct audits in 2023, primarily in China
Responsible Procurement
- Supplier Code of Conduct
- Sustainability requirements in tendering process
- Data on carbon emissions from suppliers
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
Transition Risks
- Regulatory changes
- Market shifts
Opportunities
- Development of energy-efficient products
- Growth in renewable packaging
Reporting Standards
Frameworks Used: GRI Standards, SASB Standards (Forest Management and Containers & Packaging), TCFD framework, EU Taxonomy
Certifications: ISO 14001, ISO 45001, ISO 50001, ISO 9001, ISO 22000, FSSC 22000, BRCGS, FDA
Third-party Assurance: PricewaterhouseCoopers Oy (Limited Assurance, Reasonable Assurance for Scope 1 and 2 fossil CO2e emissions)
UN Sustainable Development Goals
- SDG 12
- SDG 13
- SDG 15
Stora Enso's operations and products contribute to these goals through low-carbon, renewable, and circular products; sustainable forest management; and biodiversity preservation.
Sustainable Products & Innovation
- Renewable packaging materials
- Sustainable building solutions
- Biomaterials innovations (lignin, wood foams, biochemicals)
- Recyclable, bio-based foam
Reporting Period: Q1 2024
Environmental Metrics
ESG Focus Areas
- Climate Change
- Biodiversity
- Circularity
- Diversity, Equity, and Inclusion
- Safety
- Community Engagement
- Human Rights
- Sustainable Forest Management
Environmental Achievements
- Scope 1 and 2 CO2e emissions were 1.44 million tonnes or 44% less than in the base year (Q1 2024).
- In 2023, estimated Scope 3 CO2e emissions were 4.95 million tonnes or 34% less than in the base year.
- 99% of waste recycled and utilized in 2023.
- 99% of lands owned and managed are covered by forest certification.
Social Achievements
- TRI rate of 5.4 in Q1 2024 (target 4.6 by end of 2024).
- 25% of female managers among all managers in Q1 2024 (target 25% by end of 2024).
- ~8.0 engagement score in the Engage employee survey (scale 0-10).
Governance Achievements
- ESG metrics included in CEO and Deputy CEO remuneration (Short-Term and Long-Term Incentive plans).
- New Green and Sustainability-Linked Financing Framework launched in May 2023.
Climate Goals & Targets
- Net zero carbon emissions by 2040.
- 100% regenerative products and solutions by 2050.
- 50% reduction in absolute emissions (Scope 1, 2, 3) by 2030.
- 100% technically recyclable products by 2030.
- 96% of owned and leased lands covered by forest certification schemes.
- Reduce TRI rate to 4.6 by end of 2024.
- Increase share of female managers to 25% by end of 2024.
Environmental Challenges
- Lower production volumes impacting water performance per saleable tonne.
- Water stress may affect operations locally and through wider supply chains.
Mitigation Strategies
- All industrial sites comply with Water Management Requirements.
- Water-related risks evaluated using the WRI Aqueduct Water Risk Atlas.
- Collaborations with raw material suppliers, logistic suppliers and customers for supply chain optimization and decarbonization.
Supply Chain Management
Responsible Procurement
- Supplier Code of Conduct
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: GRI, SASB, TCFD, EU Taxonomy, TNFD (Early Adopter)
Certifications: FSC, PEFC, ISO 14001