The Group’s long-term objectives and first annual targets for social responsibility were approved in 2003. During 2004 Stora Enso was already able to achieve many targets, although in some areas progress was slower than expected. At this stage, targets are mainly process-oriented. As CSR management evolves, opportunities to establish more performance-based targets will be examined.

CSR due diligence guidelines finalised

The first formalised CSR due diligence guidelines were finalised in 2004. The guidelines help the due diligence team to assess the potential CSR risks in restructuring processes such as mergers and acquisitions. The guidelines provide assistance in evaluating risks related to areas such as corruption, human and labour rights violations, community relationships, and raw material sources. These guidelines are currently being tested in different locations, and will be further developed according to the feedback received.

Country-specific risk assessments support CSR due diligence guidelines, as they provide information related to the general operational environment and CSR challenges. This year a risk assessment was conducted for Russia.

Area	Targets for 2004	Status		Targets for 2005
Strategic planning	Continue country-specific assessments	Risk assessment for Russia completed		Utilise and test CSR due diligence guidelines in mergers and acquisitions
	Finalise CSR due diligence guidelines	Guidelines finalised, testing started.
Training	Start CSR co-ordinator training programme	Training programme started; first training session arranged in Finland		Develop and co-ordinate the CSR implementation co-ordinator network and continue the training programme
Unit implementation	Continue pilot projects in different locations	Unit pilots conducted at Kabel Mill, Suzhou Mill, Wood Supply Finland and Wood Supply Russia.		Continue with pilot programmes to work towards unit implementation objective.
	Set division-specific targets for unit implementation	All product areas and divisions started to define targets.
Quality assurance	Define concept for CSR audits & start internal CSR data checks.	Quality assurance targets postponed to 2005.		Start developing a concept for internal CSR quality assurance, including CSR audits and data checks.
Supply chain management	Conduct first pilot supplier CSR audits	Draft action plan for supply chain management has been prepared by Stora Enso Purchasing. Supplier audits postponed to 2005.		Continue to systematically incorporate CSR aspects into supply chain management and conduct the first pilot supplier audits
CSR Principles	Review and update CSR Principles	Principles reviewed during 2004		To be updated during 2005
Reductions in the workforce	Finalise corporate guidelines on reductions in workforce	Target postponed to 2005.		Finalise corporate guidelines on reductions in the workforce.
Diversity	Continue the WISE project according to the action plan	WISE network established. Salary review carried out and career plans made for network members. A plan made for cascading the WISE project through units.		Ensure that the implementation of the WISE action plan starts at divisional and unit levels.
Working conditions	Define procedures for handling harassment cases	Screening of existing unit-level procedures for handling harassment cases started.		Define procedures for handling harassment cases.
Business practice	Continue to increase awareness of the Stora Enso Competition Law Compliance Programme	Competition Law compliance information & training was a topic of the management groups of the major business divisions as well as in all Stroa Enso Manager and Executive training courses.		Continue implementation of Stora Enso's Competition Law Compliance Programme
Communications	Develop a more systematic approach to stakeholder engagement	Stakeholder engagement project started. Results expected in spring 2005.		Finalise and start implementing the corporate stakeholder engagement plan.
Target achieved Work ongoing Target postponed or not achieved

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