Introduction Environment Corporate Social Responsibility Cases Performance

GRI Compliance UN Global Compact Ranking Mill Environmental Data Environmental Performance CSR Indicators   SustainabilityPerformanceGRI Compliance     Vision and strategy Profile Governance Structure Economic performance indicators Environmental performance indicators Social performance indicators   GRI Report Content Location in Stora Enso Reports 2003 Comments       1. Vision and strategy     1.1 Vision and strategy regarding Stora Enso's contribution to sustainable development.   Strategic Goals    1.2 CEO Statement  Welcome from Deputy CEO          2. Profile     Organisational profile     2.1 Name of reporting organisation  Profile      Company Presentation    2.2 Products and services  Profile      Company Presentation    2.3 Operational structure of the organisation  Organisation    2.4 Divisions  Organisation    2.5 Locations  Mill Map  The Mill map shows the location of Stora Enso's production facilities. The list of sales companies can be found from Contacts.   2.6 Nature of ownership; legal form.  Share and Shareholders    2.7 Nature of markets served.  Product Areas in Brief  Markets can be found from Key Figures in the Company Report.   2.8 Scale of the reporting organisation.  Company Presentation  Additional figures can be found from Key Figures in the Company Report.   2.9 Stakeholders  CSR Principles    Report scope     2.10 Contacts  Contacts  Environmental contacts can be found for mills, divisions and geographic regions. Sustainability communications and CSR contacts can be found under Corporate contacts.   2.11 Reporting period  Profile  The reporting period is the calendar year 2003.   2.12 Previous reports  Report Profile      www.storaenso.com /mediacenter, publications    2.13 Boundaries of report   Report Scope      Note 1 Accounting Principles    2.14 Significant changes  Report Scope      Board Report    2.15 Reporting principles  Report Scope      Note 1 Accounting Principles    2.16 Re-statements of information  Note 3 Segment Information    Report profile     2.17 Application of GRI principles and protocols  GRI Compliance  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.   2.18 Accounting criteria for costs and benefits.  Report Profile  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 IAS and EU recommendation on the recognition, measurement and disclosure of environmental issues in the annual accounts and annual reports of companies.     Notes    2.19 Changes in measurement methods  Report Scope  Due to improvements in data management, some figures do not correspond exactly to those reported on pages 24–29 of the Environment and Resources 2002 Report. In 2003, Stora Enso adopted the WRI-WBCSD greenhouse gas protocol to account for and report GHG emissions but this does not have a material effect on the comparibility of the figures.   2.20 Internal quality assurance  Report Profile    2.21 Independent assurance  Report Profile    2.22 Additional information  Report Profile      www.storaenso.com /mediacenter, publications      www.storaenso.com/ sustainability, publications          3. Governance structure     Structure and governance     3.1 Corporate governance  Governance      Corporate Governance    3.2 Board of directors  Board of Directors  Nine of the eleven (82%) directors of the Board of Directors are independent.   3.3 Board-level processes for expertise needs  Corporate Governance      Board of Directors    3.4 Board-level processes for management of economic, environmental, and social risks and opportunities.  Corporate Governance    3.5 Executive compensation  Note 26 Employee Benefits    3.6 Organisational structure and responsible persons  Sustainability Committee      Organisation and Responsibilities    3.7 Mission and values statements  Mission, Vision and Values      Environmental and Social Responsibility Policy      CSR Principles      Policy & Principles    3.8 Shareholders' rights  Share and Shareholders    Stakeholder engagement     3.9 Basis for major stakeholders.  CSR Principles    3.10 Stakeholder consultation  Welcome from Deputy CEO  One of the Group targets is to develop a more systematic approach in stakeholder engagement. The links related to stakeholder engament provide examples of the current actions in the area.     Old-growth Forests      Community Involvement      Veracel    3.11 Information generated  Welcome from Deputy CEO  One of the Group targets is to develop a more systematic approach in stakeholder engagement. The links related to stakeholder engament provide examples of the current actions in the area.     Old-growth Forests      Community Involvement      Veracel    3.12 Use of information  Welcome from Deputy CEO  One of the Group targets is to develop a more systematic approach in stakeholder engagement. The links related to stakeholder engament provide examples of the current actions in the area.     Old-growth Forests      Community Involvement      Veracel    Overarching policies and management systems     3.13 Precautionary principle  Environmental and Social Responsibility Policy  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.     Management & Investments  Environmental management systems ensure a systematic assessment of environmental risks.   3.14 External charters  UN Global Compact table  Stora Enso has signed the ICC Business Charter for Sustainable Development. Stora Enso supports the United Nation's Global Compact and its nine initiatives.   3.15 Memberships in industry and business associations    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), and Finnish Business and Society   3.16 Management of upstream and downstream impacts Wood procurement and management systems      CSR targets      CSR tools      Environmental product design    3.17 Management of indirect impacts    Not available   3.18 Changes in locations and operations  Board Report      Workforce Reductions    3.19 Performance programmes CSR targets      Management & Investments      Wood procurement      CSR tools      Report Profile      Independent assurance statement  The printed report has been verified by an independent third party. The assurance statement can be found on page 50 of the Sustainability Report.   3.20 Certified management systems  Management & Investments      Management systems map      Wood procurement and management systems      Forest certification systems      Health and Safety          5. Performance indicators     Economic     Direct economic impacts     Customers     EC1. Net sales  Socio-Economic Impacts      Consolidated income statement      Financials: Sales and Deliveries    EC2. Geographic breakdown of markets  Financials: Sales and Deliveries    Suppliers     EC3. Cost of all goods, materials, and services purchased  Socio-Economic Impacts      Consolidated income statement      Make-up of Costs and Sales    EC4. Contracts that were paid in accordance with agreed terms    Not available   EC11. Supplier breakdown  Socio-Economic Impacts    Employees     EC5. Payroll and benefits  Socio-Economic Impacts      Note 6 Staff costs      Note 19 Post-employment Benefits      Note 26 Employee Benefits    Providers of capital     EC6. Interest on debt, and dividends  Socio-Economic Impacts      Distributable Funds      Note 7 Net Financial Items      Note 20 Borrowings, Dividends    EC7. Retained earnings  Socio-Economic Impacts      Note 18 Shareholders' Equity    Public sector     EC8. Taxes  Socio-Economic impacts      Note 8 Income Taxes    EC9. Subsidies received  Socio-Economic impacts      Note 5 Other Operating Income    EC10. Donations    Not available   EC12. Non-core business infrastructure development  Veracel  No Group-wide data available.   Indirect economic impacts     EC13. Indirect economic impacts    Not available   Environmental     Materials     EN1. Materials use  Material Flows    EN2. Recycled materials use  Material Flows    Energy     EN3. Direct energy use  Material Flows      Fuel Consumption    EN4. Indirect energy use  Material Flows  Indirect energy consumption related to e.g. fuels for generation of purchased electricity and transport operated by suppliers are not included.   EN17. Renewable energy and energy efficiency  Energy Efficiency  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     Saving Energy      Achievements      Milestones      Bio-energy      Bio-energy Highlights    EN18. Energy consumption of products    Not applicable   EN19. Other indirect energy use    Not available   Water     EN5. Total water use  Material Flows      Water Consumption    EN20. Water sources affected  Water  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   EN21. Ground and surface water  Water Consumption  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   EN22. Total recycling and reuse of water    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   Biodiversity     EN6. Location and size of land in biodiversity-rich habitats    Stora Enso has divested forests in Finland and the US in 2002. The Group is currently transferring its Swedish forests to Bergvik Skog AB. There are plans to sell 146 000 ha of forests in Canada.   EN7. Impacts on biodiversity    More information about biodiversity impacts can be found from Stora Enso's EMAS-reports.   EN23. Land  Wood Flows  Forests owned by Stora Enso are reported in Wood Procurement: Wood Flows     Plantations    EN24. Impermeable surface    No information   EN25. Impacts on protected and sensitive areas  Old-growth Forests  Read more in the Sustainability News newsletter at www.storaenso.com/ sustainability, publications   EN26. Changes to natural habitats resulting from activities and operations  Old-growth Forests  Traceability systems are vitally important at Stora Enso since the majority of wood is procured from external sources. Stora Enso requires guarantees that fibre sources are legal and sustainable. Suppliers are audited by a third party. See EMAS-reports of wood supply units   EN27. Protecting and restoring degraded areas  Veracel      WWF Cooperation      Non-compliances    EN28. Species with extinction risk    Traceability systems are vitally important at Stora Enso since the majority of wood is procured from external sources. Stora Enso requires guarantees that fibre sources are legal and sustainable. Suppliers are audited by a third party. See EMAS-reports of wood supply units.   EN29. Operations in protected or sensitive areas    Traceability systems are vitally important at Stora Enso since the majority of wood is procured from external sources. Stora Enso requires guarantees that fibre sources are legal and sustainable. Suppliers are audited by a third party. See EMAS-reports of wood supply units.   Emissions, effluents and waste     EN8. Greenhouse gas emissions.  Emissions and Landfill  Only carbon dioxide is reported. Emission factors for reporting greenhouse gas emissions are coherent with WRI-WBCSD greenhouse gas protocol.     Mill Environmental Data    EN9. Use and emissions of ozone-depleting substances.    No significant ODP sources used in Stora Enso's operations   EN10. NOx, SOx, and other significant air emissions by type.  Emissions and Landfill      Mill Environmental Data    EN11. Total amount of waste by type and destination  Emissions and Landfill      Mill Environmental Data    EN12. Discharges to water  Emissions and Landfill  Effluent discharges are reported as COD, phosphorus, nitrogen and AOX.     Mill Environmental Data    EN13. Spills  Non-compliances    EN30. Indirect greenhouse gas emissions    Not available   EN31. Hazardous waste  Emissions and Landfill      Hazardous Waste    EN32. Impacts of water discharges  Water  More information about impacts of water discharges can be found from Stora Enso's EMAS-reports   Suppliers     EN33. Supplier environmental performance  Value Chain  Suppliers are evaluated under a system known as COMPASS (Company Management Performance Assessment).     Traceability    Products and services     EN14. Environmental impacts of products and services  Environmental Product Design  See http://www.paperprofile.com for further information about environmental impacts of paper products     Wood in Construction      Packaging    EN15. Recycling and reuse  Recovered Fibre  See the flash presentation of the fibre cycle entitled "Wood fibrations"   Compliance     EN16. Non-compliance  Non-compliances    Transport     EN34. Environmental impacts of transportation  Transport    Overall     EN35. Environmental expenditures  Environmental Investments and Costs    Social     Labour practices and decent work     Employment     LA1. Breakdown of workforce  CSR Indicators    LA2. Net employment creation and average turnover  CSR Indicators    LA12. Employee benefits    No Group-wide data available   Labour/management relations     LA3. Independent trade unions and collective bargaining  Note 26 Employee Benefits    LA4. Policy and procedures related to restructuring  Principles for Corporate Social Responsibility      Workforce Reductions    LA13. Worker representation    No worker representative in Stora Enso's Board of Directors or Management Group   Health and safety     LA5. Recording and notification of occupational accidents and diseases  Health and Safety Performance    LA6. Health and safety committees  OH & S Organisation    LA7. Injuries, absences and fatalities  Health and Safety Performance    LA8. HIV/AIDS policies    No specific policy on HIV/AIDS   LA14. Compliance with ILO Guidelines  Health and Safety  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.   LA15. Agreements with trade unions covering health and safety at work    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.   Training and education     LA9. Training  Human Resources Key Figures    LA16. Programmes to support continued employability and manage career endings  HR Strategy in Action    LA17. Programmes for skills management  HR Regeneration    Diversity and opportunity     LA10. Equal opportunity policies or programmes  Principles for Corporate Social Responsibility      Diversity     LA11. Composition of senior management and corporate governance bodies  CSR Indicators    Human rights     Strategy and management     HR1. Human rights management  Principles for Corporate Social Responsibility    HR2. Human rights impacts of investment and procurement decisions  Value Chain      CSR tools    HR3. Human rights performance of supply chain and contractors  CSR Principles      Value Chain      CSR targets      CSR tools    HR8. Employee training on human rights  CSR tools  CSR issues, including human rights, are part of the management training and various other Group-level competence level programmes.   Non-discrimination     HR4. Preventing discrimination in operations  CSR Principles      Equal Opportunities    Freedom of association and collective bargaining     HR5. Freedom of association  Principles for Corporate Social Responsibility      Note 26 Employee Benefits    Child labour     HR6. Excluding child labour  CSR Principles    Forced and compulsory labour     HR7. Preventing forced and compulsory labour  CSR Principles    Disciplinary practices     HR9. Appeal practices    No Group-wide appeal practice   HR10. Non-retaliation policy and employee grievance system    No specific policy on non-retaliation. No Group-wide grievance system.   Security practices     HR11. Human rights training for security personnel    No Group-wide training programmes for security personnel   Indigenous rights     HR12. Addressing needs of indigenous people    Not available   HR13. Community grievance mechanisms    No Group-wide data available.   HR14. Revenues redistributed to local communities    No Group-wide data available.   Society     Community     SO1. Managing impacts on communities  Environmental and Social Responsibility Policy      CSR Principles      Veracel      Community involvement    SO4. Awards received  Ranking    Bribery and corruption     SO2. Bribery and corruption prevention  CSR Principles      Business practice  The following documents support the implementation of Stora Enso's Business Practice Principle: Anti-fraud Policy, Stora Enso Business Conduct Guidelines, How to do business with Stora Enso, and the Moral and Ethics guideline for all employees in the purchasing department.  Political contributions     SO3. Managing political lobbying and contributions    No specific policy on managing political lobbying and contributions.  SO5. Money paid to political parties    No Group-wide data available.  Competition and pricing     SO6. Anti-trust and monopoly court cases    No cases in 2003.  SO7. Preventing anti-competitive behaviour  CSR Principles      Business Practice      Anti-fraud Policy    Product responsibility     Customer health and safety     PR1. Preserving customer health and safety during use of products  Environment and Social Responsibility Policy  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.    Product safety    PR4. Non-compliance with regulations concerning customer health and safety    No cases in 2003.  PR5. Complaints upheld by regulatory bodies    No cases in 2003  PR6. Product environmental and social labels    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.  Products and services     PR2. Product information and labelling    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.  PR7. Non-compliance with regulations concerning product information and labelling    No cases in 2003  PR8. Customer satisfaction  Account Management  Customer First Choice survey is a procedure through which Stora Enso measures customer satisfaction annually.  Advertising     PR9. Adherence to advertising standards and voluntary codes    No formal policy, however all our advertising is done in line with the criteria established by the International Chamber of Commerce.   PR10. Breaches of advertising and marketing regulations    No cases in 2003  Respect for privacy     PR3. Consumer privacy management    Not applicable  PR11. Complaints regarding breaches of consumer privacy    Not applicable

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