1. Vision and strategy
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1.1 Vision and strategy regarding Stora Enso's contribution to sustainable development.
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Mission, vision, values
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Welcome from Deputy CEO
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Value Chain
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1.2 CEO Statement
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Welcome from Deputy CEO
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2. Profile
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Organisational profile
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| 2.1 Name of reporting organisation
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Profile and scope
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2.2 Products and services
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Product areas in brief
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| 2.3 Operational structure of the organisation
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Organisation chart
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2.4 Divisions
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Paper product area
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Packaging Boards product area
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Forest Products product area
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2.5 Locations
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Mill Map
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The Mill map shows the location of Stora Enso's production facilities. The list of sales companies can be found from Contacts.
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| 2.6 Nature of ownership; legal form.
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Share and shareholders
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| 2.7 Nature of markets served.
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Product areas in brief
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| 2.8 Scale of the reporting organisation.
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Profile and scope
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2.9 Stakeholders
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Stakeholder engagement
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CSR Principles
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Report scope
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2.10 Contacts
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Contacts
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Environmental contacts can be found for mills, divisions and geographic regions. Sustainability communications and CSR contacts can be found under Corporate contacts.
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2.11 Reporting period
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Profile and scope
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The reporting period is the calendar year 2004.
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2.12 Previous reports
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Profile and scope
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The last report was published in March 2004.
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2.13 Boundaries of report
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Profile and scope
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Accounting principles
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2.14 Significant changes
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Profile and scope
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Board Report
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2.15 Reporting principles
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Profile and scope
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2.16 Re-statements of information
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Restatement |
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Report profile
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2.17 Application of GRI principles and protocols
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Profile and scope
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Energy protocol: Indirect energy consumption related to e.g. fuels for generation of purchased electricity and transport operated by suppliers are not included in the Group's figures.
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2.18 Accounting criteria for costs and benefits.
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Profile and scope
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Environmental and social performance data is reported according to internal Group guidelines. The guidelines for reporting environmental liabilities, capital expenditures and operating expenses are based on IFRS and EU recommendation on the recognition, measurement and disclosure of environmental issues in the annual accounts and annual reports of companies.
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Accounting principles
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2.19 Changes in measurement methods
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Profile and scope
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Due to improvements in data management, some figures do not correspond exactly to those reported on pages 46-49 of the Sustainability 2003 Report.
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2.20 Internal quality assurance
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Profile and scope
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2.21 Independent assurance
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The printed report has been verified by an independent third party. The assurance statement can be found on page 60 of the Sustainability Report.
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2.22 Additional information
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Profile and scope
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3. Governance structure and management systems
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Structure and governance
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3.1 Corporate governance
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Governance
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3.2 Board of directors
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Board of Directors
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Nine of the eleven (82%) directors of the Board of Directors are independent.
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3.3 Board-level processes for expertise needs
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Board of Directors
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The background and experience of all board members are reported.
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3.4 Board-level processes for management of economic, environmental, and social risks and opportunities.
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Governance
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The head of the Sustainability Committee, the Deputy CEO, is a board member.
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3.5 Executive compensation
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Staff costs
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Employee bonus programmes
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3.6 Organisational structure and responsible persons
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Governance
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3.7 Mission and values statements
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Mission, vision and values
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Environmental and social responsbility policy
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CSR Principles
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3.8 Shareholders' rights
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Share and shareholders
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Stakeholder engagement
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3.9 Selection of major stakeholders.
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Stakeholder engagement
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3.10 Stakeholder consultation
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Stakeholder engagement
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Stora Enso is currently developing a more systematic approach in stakeholder engagement.
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3.11 Information generated
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Stakeholder engagement
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Stora Enso is currently developing a more systematic approach in stakeholder engagement.
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3.12 Use of information
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Stakeholder engagement
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Stora Enso is currently developing a more systematic approach in stakeholder engagement.
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Overarching policies and management systems
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3.13 Precautionary principle
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Environmental and social responsbility policy
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From the Environmental and Social Responsibility Policy, Stora Enso has derived its GMO Principle. The Group will refrain from any commercial use of controversial genetic engineering techniques on trees or any other organisms.
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Environmental management systems
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Environmental management systems ensure a systematic and pro-active assessment of environmental risks.
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3.14 External charters
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Welcome from Deputy CEO
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Stora Enso has signed the ICC Business Charter for Sustainable Development. Stora Enso supports the United Nation's Global Compact and its ten initiatives.
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3.15 Memberships in industry and business associations
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Activities in international forums
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Stora Enso is a member of the World Business Council for Sustainable Development (WBCSD), RespecTable, BLICC (Business Leaders in Climate Change), CEPS (Centre for European Policy Studies), Finnish Business and Society, Finnish Forest Industries Federation (Metsäteollisuus ry), Swedish Forest Industries Federation (Skogsindustrierna) and German Paper and Pulp Association (VDP)
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3.16 Management of upstream and downstream impacts
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Value Chain
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Stora Enso’s Principles on Corporate Social Responsibility (CSR) apply to all suppliers. In wood procurement, internal and external audits are done to verify and improve suppliers’ environmental and social performance. Field audits are done in co-operation with the suppliers and they cover e.g. health and safety issues. Stora Enso has also defined a preliminary set of environmental and social requirements for other material and service suppliers.
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Chemical suppliers
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Wood procurement
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Economic impacts
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Transport
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3.17 Management of indirect impacts
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Value Chain
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Indirect economic impacts
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Transport
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3.18 Changes in locations and operations
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Acquisitions and disposals
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Workforce reductions
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3.19 Performance programmes
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Value Chain
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The printed report has been verified by an independent third party. The assurance statement can be found on page 60 of the Sustainability Report.
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Environmental targets
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CSR targets
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OHS targets
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Business Excellence Guide
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3.20 Certified management systems
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Certified mills
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5. Performance indicators
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Economic
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| Direct economic impacts
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| Customers
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| EC1. Net sales
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Direct economic impacts
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| EC2. Geographic breakdown of markets
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Direct economic impacts
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Segment information
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| Suppliers
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| EC3. Cost of all goods, materials, and services purchased
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Economic impacts
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Consolidated Income Statement
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EC4. Contracts that were paid in accordance with agreed terms
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Not available
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EC11. Supplier breakdown
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Direct economic impacts
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Suppliers are broken down on a regional level.
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| Employees
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EC5. Payroll and benefits
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Direct economic impacts
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Staff costs
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Post-employment benefits
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Employee bonus programmes
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| Providers of capital
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EC6. Interest on debt, and dividends
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Economic impacts
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Net financial items
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Borrowings
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EC7. Retained earnings
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Economic impacts
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| Public sector
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EC8. Taxes
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Direct economic impacts
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Income taxes
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EC9. Subsidies received
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Direct economic impacts
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Other operating income: subsidies
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EC10. Donations
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Direct economic impacts
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EC12. Non-core business infrastructure development
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No Group-wide data available.
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| Indirect economic impacts
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EC13. Indirect economic impacts
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Indirect economic impacts
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Stora Enso has taken steps to systematically analyse the Group's indirect economic impacts.
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Environmental
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| Materials
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EN1. Materials use
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Material Flows
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More information about material flows in available in Stora Enso's EMAS reports at www.storaenso.com/emas
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EN2. Recycled materials use
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Material Flows
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| Energy
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EN3. Direct energy use
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Material Flows
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More information is available in mill-specific EMAS reports and in the Stora Enso booklet entitled Energy which can be found on www.storaenso.com/sustainability > publications
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Energy and climate
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| EN4. Indirect energy use
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Indirect energy consumption related to e.g. fuels for generation of purchased electricity and transport operated by suppliers are not included.
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EN17. Renewable energy and energy efficiency
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Environmental targets
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More information is available in the mill specific EMAS reports and in the Stora Enso booklet entitled Energy which can be found on www.storaenso.com/sustainability > publications
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Energy and climate
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EN18. Energy consumption of products
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Not available
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EN19. Other indirect energy use
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Not available
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| Water
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| EN5. Total water use
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Material Flows
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Water
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EN20. Water sources affected
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More information is available in the mill-specific EMAS reports and in the Stora Enso booklet entitled Water which can be found on www.storaenso.com/sustainability > publications
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EN21. Ground and surface water
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Water
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More information is available in the mill-specific EMAS reports and in the Stora Enso booklet entitled Water which can be found on www.storaenso.com/sustainability > publications
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| EN22. Total recycling and reuse of water
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Information is available in the mill-specific EMAS reports and in the Stora Enso booklet entitled Water which can be found on www.storaenso.com/sustainability > publications
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| Biodiversity
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EN6. Location and size of land in biodiversity-rich habitats
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Stora Enso has divested forests in Finland and the USA in 2002, in Sweden and Canada in early 2004 as well as plantations in Indonesia in November 2004.
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EN7. Impacts on biodiversity
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More information about biodiversity impacts can be found from Stora Enso's EMAS reports.
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EN23. Land
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Wood procurement
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China
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Biological assets
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EN24. Impermeable surface
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Not available
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EN25. Impacts on protected and sensitive areas
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Veracel
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EN26. Changes to natural habitats resulting from activities and operations
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See EMAS reports of wood supply units at www.storaenso.com/emas
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EN27. Protecting and restoring degraded areas
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Veracel
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EN28. Species with extinction risk
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EN29. Operations in protected or sensitive areas
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| Emissions, effluents and waste
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| EN8. Greenhouse gas emissions.
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Environmental performance
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Only carbon dioxide is reported. Emission factors for reporting greenhouse gas emissions are coherent with WRI-WBCSD greenhouse gas protocol.
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Mill-specific data
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| EN9. Use and emissions of ozone-depleting substances.
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No significant ODP sources used in Stora Enso's operations
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| EN10. NOx, SOx, and other significant air emissions by type.
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Environmental performance
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Sulphur dioxide, nitrogen oxide and carbon dioxide emissions are reported.
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Mill-specific data
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| EN11. Total amount of waste by type and destination
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Environmental performance
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More information is available in the mill-specific EMAS reports and in the Stora Enso booklet entitled Recycling and residuals which can be found on www.storaenso.com/sustainability > publications
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Residuals and hazardous waste
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Mill-specific data
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EN12. Discharges to water
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Environmental performance
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Effluent discharges are reported as COD, phosphorus, nitrogen and AOX.
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Mill-specific data
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EN13. Spills
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Non-compliances
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EN30. Indirect greenhouse gas emissions
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Not available
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EN31. Hazardous waste
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Environmental performance
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Hazardous waste
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EN32. Impacts of water discharges
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Water
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More information about impacts of water discharges can be found in Stora Enso's EMAS reports
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| Suppliers
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EN33. Supplier environmental performance
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Value Chain
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More information can be found in Stora Enso's EMAS reports at www.storaenso.com/emas
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Chemical suppliers
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Wood procurement
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| Products and services
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EN14. Environmental impacts of products and services
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Timber products
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See http://www.paperprofile.com for further information about environmental impacts of paper products
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EN15. Recycling and reuse
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Recovered fibre
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More information is available in the mill-specific EMAS reports and in the Stora Enso booklet entitled Recycling and residuals which can be found on www.storaenso.com/sustainability > publications
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| Compliance
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EN16. Non-compliance
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Non-compliances
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Contingencies
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| Transport
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EN34. Environmental impacts of transportation
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Transport
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| Overall
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EN35. Environmental expenditures
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Investments and costs
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Social
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| Labour practices and decent work
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| Employment
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LA1. Breakdown of workforce
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Employee distribution by country
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LA2. Net employment creation and average turnover
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Employee distribution by country
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The Group's average turnover is reported.
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LA12. Employee benefits
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No Group-wide data available
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| Labour/management relations
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LA3. Independent trade unions and collective bargaining
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The majority of production employees are members of labour unions with which either the Group or the forest industry customarily negotiate collective bargaining agreements in Europe. Salaries for management are negotiated individually.
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LA4. Policy and procedures related to restructuring
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Stakeholder engagement
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Workforce reductions
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LA13. Worker representation
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No worker representative in Stora Enso's Board of Directors or Management Group
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| Health and safety
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LA5. Recording and notification of occupational accidents and diseases
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Health and safety
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LA6. Health and safety committees
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OHS management
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LA7. Injuries, absences and fatalities
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OHS performance
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Fatalities
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LA8. HIV/AIDS policies
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No specific policy on HIV/AIDS
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LA14. Compliance with ILO Guidelines
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OHS targets
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The Stora Enso Safety, Health and Security Management System is compatible with Stora Enso Excellence 2005 principles, international quality standards concerning safety, health, and security (e.g. OHSAS 18001, BS 8800, SCC), and ILO guidelines.
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LA15. Agreements with trade unions covering health and safety at work
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Health and safety at work is regulated by national legislation in most of the countries Stora Enso operates in. In addition, the Group follows industry-specific trade union contracts covering more detailed health and safety issues. Stora Enso has company- or unit-specific agreements with the trade unions or authorized representatives of the employees when the national legislation or industry-specific agreements do not ensure a mutually acceptable standard of health and safety at work. National legislation, trade union agreements, local agreements with authorized employee representatives or accepted local practices cover 100% of our workforce.
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| Training and education
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LA9. Training
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Direct economic impacts
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Average hours of training for the whole Group are reported.
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Human Resources key figures
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LA16. Programmes to support continued employability and manage career endings
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Human Resources management
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LA17. Programmes for skills management
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Human Resources management
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| Diversity and opportunity
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LA10. Equal opportunity policies or programmes
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Diversity
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CSR Principles
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LA11. Composition of senior management and corporate governance bodies
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Diversity indicators
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| Human rights
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| Strategy and management
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HR1. Human rights management
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CSR Principles
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Stora Enso supports the UN´s Universal Declaration of Human Rights and the core conventions of the International Labour Organization (ILO). Stora Enso’s Principles on Corporate Social Responsibility (CSR) are based on these key standards.
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Value Chain
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HR2. Human rights impacts of investment and procurement decisions
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Value Chain
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Human rights aspects are considered in due diligence processes for mergers and acquisitions.
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Social due diligence
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HR3. Human rights performance of supply chain and contractors
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CSR Principles
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Stora Enso supports the UN´s Universal Declaration on Human Rights and the core conventions of the International Labour Organization (ILO). Stora Enso’s Principles on Corporate Social Responsibility (CSR) are based on these key standards, and they apply to all suppliers.
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Value Chain
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HR8. Employee training on human rights
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CSR issues, including human rights, are part of the management training and various other Group-level competence level programmes.
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| Non-discrimination
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HR4. Preventing discrimination in operations
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CSR Principles
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As Stora Enso’s Principles for Corporate Social Responsibility state, discrimination on any basis is strictly prohibited. In the last few years, Stora Enso has focused on gender in non-discrimination work.
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Value Chain
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Women in Stora Enso (WISE)
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| Freedom of association and collective bargaining
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HR5. Freedom of association
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CSR Principles
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A great part of Stora Enso’s operations are in countries with long traditions of freedom of association and strong unions. In addition, Stora Enso conducts country-risk assessments regarding CSR issues in emerging markets, such as Brazil and Russia. Freedom of association and collective bargaining are among the issues considered.
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Value Chain
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| Child labour
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HR6. Excluding child labour
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CSR Principles
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The nature of work in Stora Enso’s operations is demanding and requires special, often technical or engineering skills. Therefore child labour is not a great risk with Stora Enso’s own operations.
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Value Chain
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| Forced and compulsory labour
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HR7. Preventing forced and compulsory labour
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CSR Principles
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Stora Enso’s Principles on Corporate Social Responsibility (CSR) prohibit the use of forced and compulsory labour.
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Value Chain
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| Disciplinary practices
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HR9. Appeal practices
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No Group-wide appeal practice
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HR10. Non-retaliation policy and employee grievance system
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No specific policy on non-retaliation. No Group-wide grievance system.
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| Security practices
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| HR11. Human rights training for security personnel
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No Group-wide training programmes for security personnel
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| Indigenous rights
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HR12. Addressing needs of indigenous people
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Stora Enso's Wood Procurement Principles state: "We promote wood procurement and forest management practices which leave room for traditional and multiple uses of forests, while also preserving each area’s natural, historical and cultural heritage."
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HR13. Community grievance mechanisms
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No Group-wide data available.
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HR14. Revenues redistributed to local communities
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| Society
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| Community
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SO1. Managing impacts on communities
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Value Chain
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Impacts on communities have been studied on a case-by-case basis. For example, UNDP is conducting a socio-economic impact assessment on the Stora Enso and Aracruz joint venture Veracel in Brazil.
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Economic impacts
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Emerging markets: Russia
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Emerging markets: Brazil
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Emerging markets: China
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SO4. Awards received
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Sustainability indexes
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Transport environmental award
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| Bribery and corruption
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SO2. Bribery and corruption prevention
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CSR Principles
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Specific guidelines have been developed for sales and marketing and purchasing personnel. Additionally the group has an Anti-fraud policy and a Competition Law Compliance Programme.
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Anti-corruption
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| Political contributions
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SO3. Managing political lobbying and contributions
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No specific policy on managing political lobbying and contributions.
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SO5. Money paid to political parties
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No Group-wide data available.
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| Competition and pricing
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SO6. Anti-trust and monopoly court cases
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Competition Law Compliance Programme
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Board Report
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Contingencies
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SO7. Preventing anti-competitive behaviour
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Competition Law Compliance Programme
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Product responsibility
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| Customer health and safety
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PR1. Preserving customer health and safety during use of products
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Packaging products
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Generally, the health and safety aspects of paper products are well known. In some specific product areas such as the food packaging, these issues are examined in more detail.
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PR4. Non-compliance with regulations concerning customer health and safety
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No cases in 2004.
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PR5. Complaints upheld by regulatory bodies
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No cases in 2004.
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PR6. Product environmental and social labels
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All of Stora Enso's paper, pulp and packaging board production units are EMAS-registered. Stora Enso has also been involved in developing Paper Profile, a uniform declaration procedure for environmental product information.
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| Products and services
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PR2. Product information and labelling
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All of Stora Enso's paper, pulp and packaging board production units are EMAS-registered. Stora Enso has also been involved in developing Paper Profile, a uniform declaration procedure for environmental product information.
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PR7. Non-compliance with regulations concerning product information and labelling
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No cases in 2004.
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PR8. Customer satisfaction
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Value Chain
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Stakeholder engagement
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Customer focus
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| Advertising
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PR9. Adherence to advertising standards and voluntary codes
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No formal policy, however all of Stora Enso's advertising is done in line with the criteria established by the International Chamber of Commerce.
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PR10. Breaches of advertising and marketing regulations
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No cases in 2004.
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| Respect for privacy
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PR3. Consumer privacy management
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Not applicable
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PR11. Complaints regarding breaches of consumer privacy
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Not applicable
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