The Investment Committee is chaired by the head of Corporate Strategy, Investments and Business Planning. The Committee’s members are appointed by the CEO.

The tasks and responsibilities of the Investment Committee are co-ordination of the investment planning and approval process, co-ordination of the investment completion audit and follow-up process, participation in the planning and execution of large investment projects in the Company’s various geographical areas, and the drawing-up of recommendations on funds available for investments. The Investment Committee meets at least eight times a year and as required.

In 2004

The Investment Committee examined several major investment proposals and made recommendations on the allocation of divisional funds for consideration by the EMG. Important items on the agenda in 2004 were rebuilding Suzhou paper machine 1, Stora Enso Packaging’s corrugated business expansions in Russia and the North European Transport Supply System. During the first quarter of 2004 the Committee updated the Guidelines for feasibility of large investments, which were prepared and taken into use. In addition, the Committee audited ten major projects started in 2002 and 2003 to gather experience for future use and to secure technology transfer within the Group. The Investment Committee had six members and convened 14 times in 2004.

Sustainability Committee

The Sustainability Committee is chaired by the Deputy CEO. The Committee’s members, representing the relevant staff groups and the product areas, are appointed by the CEO.

The tasks of the Sustainability Committee are: to formulate corporate policy and strategy in environmental and corporate social responsibility matters, to ensure that these policies and strategies are well established and respected throughout the Company, to co-ordinate and follow-up relations and communication with stakeholders such as governmental and non-governmental organisations, to take initiatives for the development of relevant management procedures and to produce the annual Sustainability Report. The Sustainability Committee meets regularly as required.

In 2004

In April 2004, Stora Enso published its Code of Ethics, which applies to all employees. It is in compliance with the Sarbanes-Oxley Act of 2002. Additional important items on the agenda in 2004 were the Group environmental action plan, Group environmental performance targets, wood traceability, climate change and the Group Sustainability Report 2004. The Sustainability Committee had 13 members and convened twice in 2004.

Research and Development (R&D) Committee

The R&D Committee is chaired by the Deputy CEO. The Committee’s members, representing the R&D organisation and the product areas, are appointed by the CEO.

The tasks of the R&D Committee are: to secure a group perspective on R&D in the Company with regard to the relevance of R&D and its quality and efficiency, to initiate R&D policy and strategy at Group level, to monitor Group R&D and to supervise Company-financed R&D undertaken externally. In order to facilitate these tasks, the R&D committee must monitor technology and future-oriented product development. The R&D Committee meets regularly as required.

In 2004

The R&D Committee initiated a review of the ownership and membership policy of external R&D and defined policy objectives and changes. It examined the implementation and success of the new R&D organisation. The R&D Committee had seven members and convened twice in 2004.

Disclosure Committee

The Disclosure Committee supervises the reliability of the Company financial reporting and disclosure processes. The Committee is chaired by the Group Controller, and the other permanent members are the head of Internal Auditing and the General Counsel. Other members are nominated by the CEO as required. The Disclosure Committee reports to the CEO and Chief Financial Officer (CFO). The Disclosure Committee meets regularly as required.

In 2004

In 2004 a special programme was initiated to ensure compliance with the Sarbanes Oxley Act Section 404, Management Assessment of Internal Controls, a section that requires companies and their external auditors to evaluate the effectiveness of the Company’s internal control over financial reporting and to report on material control weaknesses. As a foreign private issuer, Stora Enso is required to include the management assessment in its 2005 Annual Report (20-F) to SEC. The first phases of the programme were completed according to plan by the end of 2004. The Disclosure Committee had three members and convened five times.