Stora Enso Annual Report 2020
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Strategy Sustainability Welcome to read about our contribution to circular bioeconomy. Stora Enso’s Annual Report 2020 includes our strategic, sustainability and financial performance, governance, and remuneration. Financials Governance Stora Enso Remuneration Annual Report 2020 Contents Strategy Annual Report 2020 Strategy Strategy Strategy Strategy Annual Report 2020 Annual Report 2020 Annual Report 2020 Annual Report 2020 Strategy Sustainability Financials Governance Stora Enso supports Part of Stora Enso’s Annual Report 2020 Our sustainability work Part of Stora Enso’s Annual Report 2020 Financials includes the report Part of Stora Enso’s Annual Report 2020 Stora Enso complies with Part of Stora Enso’s Annual Report 2020 customers to meet coversSustainability social, environmental, of the BoardSustainability of Directors and currentSustainability governance rules Sustainability consumers’ demand for and economic responsibility the financial statements, as and regulations, and applies sustainable products based throughout our value chain, well as Stora Enso in capital best practices in the field on renewable materials. Our with respect for human markets and our tax footprint. of governance. solutions offer low-carbon rights integrated into alternatives to products everything we do. based on finite resources. Financials Financials Financials Financials Governance Governance Governance Governance Sustainability Remuneration Remuneration Remuneration Remuneration Strategy Sustainability Financials Governance This is Stora Enso ..........................2 Our approach .................................5 Stora Enso in 2020 .........................2 Corporate Governance Strategy, governance, in Stora Enso 2020 .........................2 Stora Enso in 2020 .........................4 Report of and stakeholders .............................6 Shareholders’ meetings ..................2 the Board of Directors ..................3 CEO’s overview ..............................9 Our targets .......................................9 Board of Directors (Board) ..............3 Consolidated financial How we create value ...................12 Contributing to the SDGs ..............10 Board committees ...........................7 statements ...................................21 Human rights .................................12 Management of the Company .........8 Transformation ............................13 Notes to the consolidated Internal control and Financials Social agenda .............................. 17 Strategy ........................................ 14 financial statements ...................26 risk management related to Employees and wider workforce...18 Innovation ......................................16 financial reporting ..........................10 Parent company Circular bioeconomy .....................18 Safety .......................................19 Stora Enso Oyj Members of the Board Forest .............................................20 Community ....................................23 financial statements ................... 74 of Directors ..................................12 Leadership .....................................23 Business ethics .............................28 Notes to the parent Members of the Group Environmental agenda ...............32 Divisions ...................................... 24 company Stora Enso Oyj Leadership Team ......................... 14 Materials, water, and energy .........33 Packaging Materials ......................25 financialstatements ....................76 Appendix 1 .................................... 17 Packaging Solutions ......................26 Carbon dioxide ..............................43 Signatures for Biomaterials ...................................27 Forests, plantations, and land use ..49 the financial statements ............85 Governance Wood Products ..............................28 Economic agenda .......................55 Auditor’s report ...........................86 Forest .............................................29 Customers .....................................56 Remuneration Paper ..............................................30 Suppliers ........................................60 Stora Enso in capital markets ...89 Introduction ...................................1 Investors ........................................64 Our renewable solutions ............31 Stora Enso as a taxpayer ............95 Letter from the Remuneration External recognition ......................66 Committee Chair .............................1 Group Leadership Team .............40 Capacities by mill in 2021 ...........97 Decision-making procedure ...........2 Data and assurance ....................67 Remuneration development ...........2 Reporting scope ............................68 Information for shareholders ...100 Remuneration policy summary ........3 Data by production unit .................69 Auditor’s assurance report ............72 Remuneration Report 2020 .........4 Remuneration 100% plastic free is not The GRI index is available at always feasible. The majority storaenso.com/gri2020 of fossil-based materials in packaging could be reduced The SASB index is available at with existing technologies. storaenso.com/sasb2020 Strategy Annual Report 2020 Strategy Stora Enso supports Part of Stora Enso’s Annual Report 2020 customers to meet Sustainability consumers’ demand for sustainable products based on renewable materials. Our solutions offer low-carbon alternatives to products based on finite resources. Financials Governance Remuneration Contents Strategy Annual Report 2020 Our renewable products provide a sustainable Sustainability alternative to fossil- based materials. This is Stora Enso ............................... 2 Stora Enso in 2020 .............................. 4 Financials CEO’s overview ................................... 9 How we create value .........................12 Transformation ..................................13 Strategy ............................................. 14 Governance Innovation ............................................16 Circular bioeconomy ...........................18 Forest .................................................. 20 Leadership .......................................... 23 Divisions ............................................ 24 Packaging Materials ........................... 25 Packaging Solutions ........................... 26 Biomaterials ........................................ 27 Wood Products ................................... 28 Remuneration Forest .................................................. 29 Paper ................................................... 30 Stora Enso’s formed fiber products help customers to replace plastics. The salad bowl made of PureFiber™ by Stora Enso is plastic-free, recyclable and made of Our renewable solutions ................. 31 renewable materials. The PureFiber™ product line enables approximately 75% lower CO2 footprint compared to alternative packaging materials, such as plastic or bagasse. Group Leadership Team .................. 40 Strategy Annual Report 2020 This is Stora Enso Strategy Part of the bioeconomy, Stora Enso is a leading Sustainability This is Stora Enso global provider of renewable solutions in packaging, biomaterials, wooden construction Stora Enso in 2020 and paper. We employ some 23 000 people and CEO’s overview have sales in more than 50 countries. Our shares are listed on the Helsinki (STEAV, STERV) and How we create value Stockholm (STE A, STE R) stock exchanges. Transformation Our fiber-based materials are renewable, Strategy recyclable, and fossil free. Our solutions offer Financials Innovation low-carbon alternatives to products based on finite Circular bioeconomy resources. We believe that everything that is made Forest from fossil-based materials today can be made Leadership from a tree tomorrow. Divisions Our renewable solutions Group Leadership Team Governance Remuneration We are the renewable Our raw material is Our products Our renewable products renewable, recyclable, replace fossil- contribute to a circular materials company and fossil-free. based materials. bioeconomy. 3 Stora Enso 2020: Strategy 2020: Enso Stora Strategy Sales Sales by destination Annual Report 2020 Serving markets EUR 8.6 billion around the world Countries Employees Europe 72% Stora Enso operates worldwide and focuses on utilising its – This is Stora Enso expertise in renewable materials and creating value in packaging, Strategy biomaterials, wooden construction, and paper. We combine 50 23 000 global resources with local presence, service and sustainability. Sustainability This is Stora Enso Asia Pacific 18% North America 4% Stora Enso in 2020 South America 2% Other 5% CEO’s overview Production unit Sales office How we create value Design Studio Sales by origin Transformation Innovation Centre Value in % Strategy Other 5% 5% Forests and plantations South America 2% Financials 2% Innovation North America 4% 4% Asia Pacific Circular bioeconomy 18% 18% Europe 72% 72% Forest Europe 89% Leadership Divisions Our renewable solutions Brazil and Uruguay 6% China 5% Group Leadership Team Governance Personnel by country1 Purchases by region Value in % Other countries 1% Europe 89% 89% Brazil and Uruguay 6% 6% Brazil and Uruguay 3% China 5% 5% Other Europe 17% Finland 26% Europe 88% Russia 5% Germany 4% Remuneration Poland 8% Sweden 21% China 15% 1 Including 50% of the employees at Veracel in Brazil Asia Pacific 7% and Montes del Plata in Uruguay. South America 5% Legend Value in % Exact