Stora Enso Annual Report 2018 Governance Contents Strategy Annual Report 2018 Strategy Strategy Strategy Strategy
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Strategy Welcome to read about our contribution Sustainability to the renewable future. Stora Enso’s Annual Report 2018 includes our strategic, sustainability and financial performance, and governance. Financials Stora Enso Annual Report 2018 Governance Contents Strategy Annual Report 2018 Strategy Strategy Strategy Strategy Annual Report 2018 Annual Report 2018 Annual Report 2018 Annual Report 2018 Strategy Sustainability Financials Governance Stora Enso supports customers Part of Stora Enso’s Annual Report 2018 Our sustainability work covers Part of Stora Enso’s Annual Report 2018 Financials includes the report Part of Stora Enso’s Annual Report 2018 Governance covers Part of Stora Enso’s Annual Report 2018 to meet consumers’ demand social, environmental, and of the Board of Directors and Stora Enso’s governance for sustainable products based economic responsibility the financial statements, as policy, practices, and on renewable materials. Our throughout our operations, well as Stora Enso in capital actions as well as our solutions provide low-carbon with human rights integrated markets and our tax footprint. remuneration statement. Sustainability Sustainability Sustainability Sustainability alternatives to products based into everything we do. on fossil fuels and other non-renewable materials. Financials Financials Financials Financials Financials Sustainability Governance Governance Governance Governance Strategy Sustainability Financials Governance This is Stora Enso ................................................2 Governance ..........................................................4 Stora Enso in 2018 ...............................................2 Corporate Governance in Stora Enso 2018 ....2 Strategy, governance, and stakeholders ..............5 Shareholders’ meetings ........................................2 Stora Enso worldwide ........................................4 Report of the Board of Directors ......................3 Our targets .............................................................9 Board of Directors (Board) ....................................3 Stora Enso in 2018 ...............................................5 Adopting the SDGs ..............................................10 Consolidated financial statements ................20 Board committees .................................................7 CEO’s overview ....................................................7 Human rights .......................................................12 Notes to the Consolidated Management of the Company ..............................8 financial statements .........................................25 Internal control and risk management How we create value .........................................10 Social agenda ....................................................16 related to financial reporting ...............................10 Employees and wider workforce......................... 17 Extract from the parent company Transformation .................................................. 11 Community ..........................................................22 Stora Enso Oyj financial statements .............. 74 Remuneration Statement ................................ 11 Divisions .............................................................19 Business ethics ...................................................27 Decision-making procedure ............................... 11 The Board of Directors’ Proposal Financials Consumer Board .................................................20 Main principles of remuneration ......................... 11 Environmental agenda .....................................31 for the distribution of dividend ........................76 Packaging Solutions ............................................25 Remuneration Report 2018 .................................13 Materials, water, and energy ...............................32 Auditor’s report .................................................77 Biomaterials .........................................................30 Carbon dioxide ....................................................42 Members of the Board of Directors ................15 Wood Products ....................................................35 Stora Enso in capital markets .........................80 Forests, plantations, and land use ......................49 Paper ....................................................................40 Members of the Group Leadership Team ...... 17 Stora Enso as a taxpayer ..................................86 Economic agenda .............................................55 Group Leadership Team ...................................45 Customers ...........................................................56 Capacities by mill in 2019 .................................88 Suppliers ..............................................................60 Information for shareholders ..........................91 Investors ..............................................................64 External recognition ............................................66 Data and assurance ..........................................67 Reporting scope ..................................................68 Data by production unit .......................................69 Governance Auditor’s assurance report ..................................72 The GRI index is available at storaenso.com/gri2018 Strategy Annual Report 2018 Strategy Stora Enso supports customers Part of Stora Enso’s Annual Report 2018 to meet consumers’ demand for sustainable products based on renewable materials. Our solutions provide low-carbon Sustainability alternatives to products based on fossil fuels and other non-renewable materials. Financials Governance Contents Strategy Annual Report 2018 Our renewable products provide a sustainable alternative to fossil- Sustainability based materials. This is Stora Enso ............................... 2 Stora Enso worldwide ....................... 4 Stora Enso in 2018 .............................. 5 CEO’s overview ................................... 7 Financials How we create value .........................10 Transformation ..................................11 Divisions ............................................ 19 Consumer Board ................................ 20 Packaging Solutions ........................... 25 Biomaterials ........................................ 30 Wood Products ................................... 35 Paper ................................................... 40 Group Leadership Team .................. 45 Governance 2 Stora Enso 2018: Strategy 2018: Enso Stora Strategy Annual Report 2018 This is Stora Enso – This is Stora Enso Strategy Part of the bioeconomy, Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wooden This is Stora Enso constructions and paper. We employ some 26 000 people in more than 30 countries and our shares are listed on the Helsinki (STEAV, STERV) and Stockholm (STE A, STE R) stock exchanges. Stora Enso worldwide Sustainability Stora Enso in 2018 Our fibre-based materials are renewable and recyclable. Our solutions provide low-carbon alternatives to products based on CEO’s overview fossil fuels and other non-renewable materials. We believe that everything that is made from fossil-based materials today can be made from a tree tomorrow. How we create value Transformation Divisions Group Leadership Team Financials Governance 3 Stora Enso 2018: Strategy 2018: Enso Stora Strategy Annual Report 2018 – This is Stora Enso Strategy This is Stora Enso Stora Enso worldwide Sustainability Stora Enso in 2018 CEO’s overview Divisions in brief How we create value Transformation Divisions Group Leadership Team Consumer Board Packaging Solutions Biomaterials Wood Products Paper The ambition of the Consumer The Packaging Solutions The Biomaterials division offers The Wood Products division is a Stora Enso is the second largest Board division is to be the global division provides fibre-based a wide variety of pulp grades leading provider of innovative wood- paper producer in Europe with an leader in high-quality virgin fibre board materials and corrugated to meet the demands of paper, based solutions. The product range established customer base and cartonboard. We aim to be the packaging products and services board, tissue, textile, and hygiene covers all areas of construction, a wide product portfolio for print preferred partner of our customers, that are designed for a wide array product producers. We are including massive wooden elements and office use. Customers benefit Financials such as converters, brand owners of applications. Our renewable maximising the business potential and wooden components. It also from Stora Enso’s broad selection and retailers, in premium end-use high-end packaging solutions of the by-products extracted in includes a variety of sawn timber of papers made from recycled and packaging and graphical segments. serve leading converters, brand our processes, such as tall oil and goods and pellets for sustainable virgin fibre as well as our valuable Our wide board and barrier coating owners, and retailers – including turpentine from biomass. Based on heating. The emerging product industry experience, know-how and selection is suitable for consumer those in e-commerce that are our strong innovation approach, all range of Biocomposites addresses customer support. packaging for liquid, food, looking to optimise performance, fractions of biomass, like sugars and the opportunities to replace plastics