Stora Enso AR 2003.Pdf

Environmental and social responsibility policy RESPONSIBLE BUSINESS Stora Enso is committed to developing its business towards ecological, social and economic sustainability. These tasks are recognised as shared responsibilities within Stora Enso enabling a continuous improvement of our operations. ECO-PERSPECTIVE Stora Enso’s objective is to supply customers with products and services that satisfy various needs related to printed communication, packaging and construction purposes. These products are mainly produced from renewable raw materials, and are recyclable and safe to use. The concept of product life cycle guides our environmental activities and provides the framework for our efforts. We expect the same commitment from our suppliers and partners so that at every stage, from raw material to the end product, the impact on the environment will be minimised. SOCIAL RESPECT As an international company, Stora Enso acknowledges its role as a model company in the global, national and local society. Our attitude shall be characterised by respect for the cul- tures, customs and values of individuals and groups in countries where we operate. When developing our business to earn credibility, we will comply with and when necessary go beyond the requirements of national standards and legislation. TRANSPARENT INTERACTION In order to continuously strengthen our operations and develop environmental and social issues in a sustainable way, Stora Enso considers an open discussion and interaction with all stakeholders, both governmental and non-governmental, as fundamental. CONTENTS INTRODUCTION PERFORMANCE 16 Current trends PROFILE & SCOPE 5 Trends in key environmental parameters have generally fol- Getting a wider perspective lowed production levels, which were higher in 2003 than in This report for the calendar year 2003 combines environmen- 2002. Occasional production curtailments also raised emission tal and social issues for the first time into a comprehensive Sus- levels slightly. tainability Report, designed to illustrate the impacts of Stora Enso’s activities on the environment and society, and to show COMPLIANCE & 18 how Stora Enso creates value for stakeholders. CORRECTIVE MEASURES OPENING WORDS 6 ENVIRONMENTAL INVESTMENTS & COSTS 19 Taking a longer-term view Working towards sustainability involves taking a longer-term view WOOD PROCUREMENT 20 and integrating sustainability into all operations. DCEO Björn Hägglund stresses the importance of the restructuring of Stora Enso’s sustainability governance during 2003: “This is to ensure that whenever we consider sustainability issues we really are looking at the whole pic- ture.” STORA ENSO’S VALUE CHAIN 8 GOVERNANCE STRUCTURE 10 Governance mirrors commitment Stora Enso aims to excel in sustainability and to be recognised for its achievements. This is also reflected in the Group’s new corporate governance structure. SUSTAINABILITY INDEXES & SOCIALLY RESPONSIBLE INVESTORS 10 ENVIRONMENT ENVIRONMENTAL PRODUCT DESIGN 12 ECO-EFFICIENCY 14 Almost all residuals used beneficially Stora Enso uses raw materials as efficiently as possible in production, and works hard to find beneficial uses for residuals. Even hazardous wastes can often be recovered or used to pro- duce energy. All the hazardous wastes generated by Stora Enso are carefully handled by specialised licensed companies. Stora Enso’s Swedish forests, whose ownership is currently being restructured, have been FSC-certified and are currently in the ENVIRONMENTAL process of getting PEFC certification. MANAGEMENT SYSTEMS 14 Maximising wood flows All pulp, paper and from certified forests board mills now certified In order to increase the share of certified wood, Stora Enso pro- In March 2003, Stora Enso achieved a notable motes forest certification everywhere the Group operates and goal by ensuring that 100% of the Group’s pulp, advocates the mutual recognition of forest certification systems. paper and board production capacity is covered Double certification is a good way to promote mutual recogni- by ISO 14001 and/or EMAS environmental man- tion – as exemplified in Celbi’s plantations in Portugal. agement systems. The paper used for this report comes from Berghuizer Mill, one of Stora Enso’s RECOVERED FIBRE & PULP 53 units with EMAS registration. 24 SUSTAINABILITY 2003 3 CONTENTS TRANSPORT 24 OCCUPATIONAL HEALTH AND SAFETY 39 ENERGY 26 SOCIO-ECONOMIC IMPACTS 41 The challenge of climate change The forest products industry can help to find practical ways to mitigate climate change, for instance by promoting energy efficiency. In 2003, Stora Enso made a new commitment to continuous and long-term reductions in specific energy consumption for all processes and product lines. CASE STUDY WATER 29 VERACEL 42 When the Veracel Pulp Mill is run- CORPORATE SOCIAL ning in 2005, RESPONSIBILITY (CSR) some 2000 people will be employed by CSR TOOLS 30 Veracel or Aiming for superior performance Veracel’s contractors. In autumn 2003, Stora Enso’s new Sustainability Committee approved the Group’s long-term objectives for corporate social responsibility. UNIT IMPLEMENTATION 32 Oulu and Varkaus mills show the way In spring 2003, Oulu Mill became the first mill to start the implementation of Stora Enso’s Corporate Social Responsibili- ty Principles at mill level. Varkaus Mill followed suit in August 2003. During these projects, both mills tested a framework designed to identify key social aspects of operations, to shape related action plans and to establish indicators. CSR PRINCIPLES REVIEW 34 The Veracel vision – a model of sustainability In 2003, construction work started on a major new pulp mill in Brazil. The Veracel project is intended to set a benchmark for the competitive and sustainable production of pulp. Stora Enso supported Veracel in the creation of an ambitious sustainability agenda for the project. APPENDIX PRODUCTION, WASTE DISPOSAL AND EMISSIONS 46 ASSURANCE STATEMENT 50 CONTACTS 51 GLOSSARY 54 STORA ENSO’S PRINCIPLES FOR CORPORATE SOCIAL RESPONSIBILITY 55 Principles in action Working conditions, business practices, diversity and responsi- Read more in the Web Report ble workforce reduction were priority areas in the implementation of Stora Enso’s CSR principles in 2003. www.storaenso.com/2003 4 SUSTAINABILITY 2003 INTRODUCTION PROFILE & SCOPE Getting a wider perspective tora Enso is an integrated paper, The scope of reporting reported through case studies. This year’s packaging and forest products The scope of consolidated performance report includes a case study on the joint company producing publication data on sustainability generally follows venture at Veracel in Brazil, of which Stora and fine papers, packaging boards the principles of financial reporting. This Enso owns 50%. and wood products, areas in means that the consolidated performance The acquisition of AS Sylvester affects Swhich the Group is a global market leader. data includes the parent company, Stora the comparability of environmental per- Customers are large and small publishers, Enso Oyj, and all companies in which it formance data between 2002 and 2003 for printing houses and merchants, as well as holds, directly or indirectly, over 50% of non-integrated sawmills, as the number of the packaging, joinery and construction in- the voting rights. sawmills owned by the group has increased. dustries worldwide. The main markets are The performance data of some com- However, this acquisition has no material Europe, North America and Asia. panies controlled by Stora Enso through impact on the Group’s total environmen- Stora Enso sales totalled EUR 12.2 bil- management agreements with majority tal performance figures. lion in 2003. The Group has some 44 000 shareholders, but in which Stora Enso employees in more than 40 countries in holds less than 50% of the voting rights, The profile of this report five continents and an annual production is also included. Associated companies Environmental and social performance da- capacity of 15.7 million tonnes of paper are not included in the consolidated per- ta is reported according to internal Group and board, and 7.4 million m3 of sawn formance data. These companies repre- guidelines. The guidelines for reporting en- wood products, including 2.8 million m3 of sent undertakings in which the Group vironmental liabilities, capital expenditures value-added products. The Group has pro- has significant influence, but which it and operating expenses are based on IAS duction facilities in Europe, North Ameri- does not control (see Notes 1 and 13 in (International Accounting Standards) and ca and Asia. Stora Enso’s shares are listed in the Financials 2003 Report). EU recommendation on the recognition, Helsinki, Stockholm and New York. measurement and disclosure of environ- The following limitations relate to the mental issues in the annual accounts and Sustainability reporting principles described above: annual reports of companies. Emission fac- in Stora Enso Consolidated environmental perform- tors for reporting greenhouse gas emissions Stora Enso has produced annual environ- ance data covers all production units are coherent with WRI/WBCSD green- mental reports since the merger of Stora belonging to the core product areas. house gas protocol. and Enso in 1998, continuing the good Sales offices, merchants and staff func- The reported environmental per- track record of both Stora and Enso in en- tions are excluded. Where wood pro- formance data is checked internally before vironmental reporting. The first Corporate curement

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