Insert Facts & Figures 2013

Stora Enso 2013

VOLUME 4 TRANSFORMATION AND OPPORTUNITY

“Where in the world is Stora Enso’s future?” and other questions that you asked. Contents

Rethink Contents 4 EDITORIAL VOLUME 4 Where are we going?

TRANSFORMATION 8 IN BRIEF VESA LAITINEN AND OPPORTUNITY 12 PHENOMENON Against food waste EDITOR-IN-CHIEF LAURI PELTOLA 14 STRATEGY SUB-EDITOR TIINA TUOMAINEN Going beyond paper and pulp EDITORIAL STAFF IRENA BUSIC, HANNE KARRINAHO, DANDAN LYU, JONAS 16 Transformation on three NORDLUND, EERIKA OLKINUORA, KATJA OLLILA, KIRSI SEPPÄLÄINEN, JENITA continents SILLANPÄÄ, PATRICIA ONGPIN STEFFA, 27 Anatomy of a shopping bag NIINA STRENG 31 Books don’t run out of power PROJECT MANAGER EERIKA OLKINUORA CONCEPT & DESIGN MILTTON OY 34 Blinds open! COVER PHOTO SUVI-TUULI KANKAANPÄÄ 38 PHENOMENON STORA ENSO OYJ Protection for online purchases P.O. BOX 309, FI-00101 HELSINKI, FINLAND 40 Smells like team spirit VISITING ADDRESS KANAVARANTA 1 48 Leadership’s stress test TEL. +358 2046 131 STORA ENSO AB 50 Have a safe day! BOX 70395, SE-107 24 STOCKHOLM, 54 Ideas unlimited SWEDEN VISITING ADDRESS WORLD TRADE 58 From fired to hired 16 Transformation on three continents CENTER, KLARABERGSVIADUKTEN 70 TEL. +46 1046 46000 60 A passion for responsible STORAENSO.COM business [email protected] 64 PHENOMENON Certified excellence. Anybody there? 65 REWIND Tracking design

66 AN EXPERT’S PERSPECTIVE TEEMU KUUSIMURTO How did the content of this Responsibly invested magazine take shape? 68 Building cities of the future 40 Smells like team spirit This annual report has been printed on LumiArt and LumiSilk art printing papers. The Lumi product family is developed Stora Enso Rethink 2013 72 Sensational paper for applications that require exceptionally high quality in text printing and image reproduction. In art print business, is our fourth magazine­ Lumi translates to excellence in all languages. style Annual Report. To 73 REWIND find out which topics are What a waste! of most interest to Stora The Lumi products have been awarded with the EU Ecolabel – the most prominent environmental accolade in Europe. Enso’s stakeholders, a 74 COLUMN

This accolade joins Forest Stewardship Council’s (FSC®) and Programme for the Endorsement of Forest Certification crowdsourcing survey Humanity in 2030: STORA ENSO Scheme’s (PEFC™) environmental accolades, which had already been awarded to Lumi. The Lumi products are conducted in July–August 2013 INSERT rethinking the business in terms of sustainability and quality. collected the issues you thought should Facts & Figures 2013 be the focus of this year’s publication.

FSC® trademark license code: FSC® C015932 The crowdsourcing generated over 200 responses from customers, other external stakeholders, and our employees. The issues and the 68 Building cities of the future concerns of our stakeholders were strongly integrated in making this magazine. You will see some of these Image from the issues in the pages that follow. LUMI PHOTOGRAPHIC If you want to contribute after ART AWARDS reading this magazine, or if you want to give us feedback on the by honorary award winner magazine, please contact Wawi Navarroza [email protected] From the series “Dominion” Where are we going?

EDITORIAL SUVI­TUULI KANKAANPÄÄ

Where in the world is Why, then, do many of our people ask Stora Enso’s future? where are we really going? I think it is The question is right on the cover of this because those who are faced with six publication. I translate that to where weeks of co­determination negotiations are we as a company going, or where and a high probability of ending what Where are am I taking this company? The short may be a long and highly specialised answer – the easy part of the answer – is career have difficulty accepting our this: we are on a journey to shareholder global strategy of value creation and and stakeholder value creation through renewable materials. And that is where renewable materials globally. To giving I believe we are in need of a new kind a consistent and growing return to our of dialogue. Not about strategy, returns shareholders whose money we invest, and value creation. But about reality, we going? a new reality. And how we deal with it, regardless of whether the amount of that money is big or small. And to advancing not through co­determination negoti­ the communities around our new ations that last six weeks because that’s investment projects for the good of the what local law mandates, but through a people and for the good of the planet, dialogue. through our commitment to renewable materials and best available techno­ Let’s discuss the next six years, not six fter seven years as the CEO of logies in our investments. The challenge weeks. Let’s discuss and debate what Stora Enso, something is starting is that this transformation journey has that means for the company and for the to bother me. Do I still challenge A hurt many and will still hurt, I am afraid. employees. Who should plan to work my own thoughts and views, just as I We are building new business and a few more years and then retire; who expect everyone else to challenge their Jouko Karvinen has been CEO of Stora Enso for seven years. capacity in areas where the markets are should start a training programme to own views? Do I still Rethink, as any growing and dismantling in others where learn a new profession and very possibly CEO should? What if I believe things the markets are shrinking, and we are in a different industry? What could we, but after a reduction of over 15 000 other stakeholders don’t, not because financing this transformation through the the company, do to help our people help employees in Europe while at the same I am right or they are right but because hard work and results of our people in themselves? What is the commitment we time we have added thousands of jobs we don’t see, hear and experience the our traditional geographical areas. need from our people, a commitment to in the new economies. Is it fair? No. In world and the future ahead in the same change or perhaps even mobility and a the eyes of the people who lost their jobs way? Why? Why do I believe this must be new start? and in their families’ eyes, it is not fair. the plan, even if it hurts? Because I see I have seen and heard it at pretty much What if I didn’t write and talk about the the alternative as being even worse; If you, like I, believe that change is a every paper machine or mill we have things I normally write and talk about, you are welcome to disagree with me, must and it will continue, then we need closed. Especially since the reasons and instead wrote and talked about of course. We need to serve and grow a new dialogue within the company. And for these actions had little or nothing to what our people and stakeholders would in the markets where there is demand, outside as well. Especially in Europe, do with things these people could do actually like to read and hear about. Not and to reduce in the markets where the where there are so many young people anything about, like consumer demand to agree or to disagree, but just to have a consumption is shrinking. I believe that who have lost the opportunity to build or distance to market or raw material real dialogue. Yes, I’ve heard it, commu­ anybody, any company, who ignores their future way before it ever started. costs. nication is important. But dialogue is ten the changes in consumer behaviour And they are still the future of Europe. times more important. or market demand because change is scary and painful is doomed. When Do you care about people? Crowdsourcing the planet’s consumers want and need Do I care about people? That was one Not my idea, but when my colleagues more safe, renewable packaging for their of the questions I was asked in the Do I still challenge my own thoughts told me this is what they had decided food, drinks and other products – and Rethink magazine crowdsourcing – and to do as part of producing of the fourth that’s what we are strong in, – then that’s very rightfully – as 2013 was another and views, just as I expect everyone Rethink magazine, I said yes. Find out where we invest to grow. And when the year of restructuring, capacity cuts and what our stakeholders worry about, are same consumers want to read less of people reductions. My answer is yes, of angry about, are happy about or don’t their news on printed media, then we course! However, this may be for others else to challenge their own views? even care about. And let me then share must respond to that too – even when it to judge at the end. But let me tell how I my thoughts with them. Here we go. means shrinking as a way to transform. feel about it after not only seven years, Do I still Rethink, as any CEO should?

4 Rethink Stora Enso 5 innovation – from Building Solutions to viewed only from a product point of view. Let’s make our divisions more clearly We need to stop fighting PrimaPress to microfibrillated cellulose We tend to get blindsided by focussing accountable for their customers, their to lignin extraction, but these are just too closely on internal improvements or investments and their results. At the for the mills and start budding, like little seedlings in a forest. even on industry benchmarks. I think same time, we have been clear that They will take some time to mature, not we need to take a closer look at and our people all work for the Stora Enso fighting for the people who the seventy years of the Northern pine, challenge every process in our value Group, so let’s promote mobility and but several years nonetheless. chain against the best in the world, also opportunities across businesses. Our face the new realities. outside our industry, as our industry is leadership cornerstones, Purpose, Code We still need to turn more of the inno­ not the benchmark in all areas. Our goal of Conduct, ethics and, very importantly, vation inside out. Rather than starting must be to be different, not the same, in our promise of corporate responsibility from the raw material and trying to figure the eyes of our customers. are one, not many, for Stora Enso. out how we can get something more out of a tree in our existing or modified Is there going to be a new The way I see it, change will never stop, If it is unfair to the individual and the production facilities, perhaps we should direction every year? so we have to find new ways to make it local community, can it then be right start from market needs – perhaps even more positive as part of our journey and We were also asked why we keep for the company, the shareholders, consumer needs that haven’t yet materi­ for our people. I do want to commend changing all the time. Organisational and, very importantly, for the remaining alised – and then work, with partners our people for the endless resilience and adjustments, new leaders, change after employees? I think it can, but only if the in many cases, towards creating those fighting spirit they have shown in the change. Many seem to miss the consis­ remaining part of the company actually products and materials with maximum past seven years, years where we – and tency, or the little or no change, of the completes the journey of transfor­ flexibility and the lowest capital and the industry – have had to learn the hard past. Some even think that we have gone mation to a value creating, and also job costs. Define where we can create way that the old medicine of “good times back and forth between centralisation creating, renewable materials company unique value and defend our compet­ will always return after the bad times” is and decentralisation. So let me first tell – a company that can continue to share itive position not only with competing no longer true. you how I feel about change. Not enough value and share value creation in the products and technologies, but also new change, not fast enough, not deep communities where it operates. competitors. And then move faster than Now it’s about who makes their own enough. Actually, I believe that with more ever before, protecting our intellectual­ good times and who doesn’t. What speed we could have possibly avoided My thoughts above are not to suggest property on one side and actively part­ makes us unique? Nothing but our some of the hardship and difficult actions that the “means are justified by the nering with others across industries in people, I dare to say. Sure, products, IP we have taken. outcome”. That is not the moral of my areas where we don’t have the know­ (Intellectual Property) and strategies are story. In fact, I am suggesting we, myself ledge and capabilities. also important, but all of these things I’m not claiming that every decision and my colleagues, need to stop fighting are created by our people. Every single for the mills and start fighting for the we have made, I have made, has been Dedicated innovation leadership in the thing. With that thought, let me finish people who face the new realities. And correct. However, I do believe that when divisions and consistent Group inno­ by thanking our loyal and hardworking that can only happen if we start being you see the need to make an adjustment vation reviews should accelerate these people for another challenging and more open and start planning for the in an earlier decision – whether it’s for new beginnings. Not to overpromise, eventful year on the journey to the future. uncertain future earlier on, as I wrote something more or less or different – but the innovation actions I have already We are on our way. above. you should not hesitate, especially not seen in Biomaterials this year gives me because an adjustment would somehow Jouko hope that a year from now we will be be seen as an admission of failure. What makes Stora Enso writing a lot more about the results of our unique? The real failures are the ones who stop innovations. decisions and actions to avoid correcting The question about what makes Stora decisions made earlier under different Enso unique was also stated in the Can we afford to invest more in inno­ circumstances and to correct their own crowdsourcing. What gives Stora Enso vation? Yes, we can. The problem isn’t mistakes made earlier. the right to win? That is what I, and actually the money; it’s about choosing everybody at Stora Enso, should worry the right investments, not the most We have tried to drive decentralisation about every day. My short answer is: investments, and investing aggressively into the businesses, now called divi­ we’re not unique enough, yet. And I to get a fast outcome – and definitely sions and business units within them. actually feel that I have failed some­ faster than the competition. Let’s get resources and action to where what here, given that I came from two the customers and value creation innovation-rich industries. We have Having said that, I don’t think innovation are – while safeguarding economy of great examples and stories of product or competitive differentiation should be scale and expertise in specific areas.

6 Rethink Stora Enso 7 In brief In brief

Montes del Plata supports youth Window frames on the world Stora Enso’s new digital development in rural areas Fix your eyes on the nearest window. The first thing you services ready to serve you Stora Enso’s joint venture in Uruguay, Montes probably notice is the scene outside. But take a closer The most visible update to the digital del Plata has agreed to support the existing look. What kind of frame surrounds the window? What services, available in early 2014, is the programmes of the Movimiento de la Juventud STORA ENSO colour is it? It is wide or narrow? Have you ever wondered renewal of the internet sites from the Agraria (Agrarian youth movement) to where window frames come from? corporate level to the businesses. encourage young people to become farmers Stora Enso is Europe’s largest manufacturer of window in Uruguay’s rural areas. The collaboration and door components. Every year, roughly 160 000 cubic Take a tour of the completely renewed sites at: work initially will focus on the development of metres of window and door components are delivered from storaenso.com Stora Enso’s Nordic sawmills to Europe’s leading window Agrarian Clubs and the Ovine Programme. printingandreading.storaenso.com In the Ovine Programme, young farmers manufacturers. are given 10 to 20 calves as a form of a “bank The millions of windows all around the world generally renewablepackaging.storaenso.com loan” for a five­year period. In addition, the only spark an emotional response when it comes time to buildingandliving.storaenso.com programme assists farmers with land access wash them. And then it’s best to rely on granny’s old trick biomaterials.storaenso.com and more generally in the relationships with to tackling the task: for sparkling clean windows, use storaensometsa.fi newspaper to dry them. local institutions such as banks and local storaensoskog.se government. The collaboration work will eventually explore new oppor­ Lighter cartons for Towards being a mill tunities that pharmaceuticals free of fossil fuels will enable Pharmaceutical compa­ The Stora Enso Biomaterials the young farmers to nies can now take advan­ Enocell Mill is heading towards stay in their home areas STORA ENSO tage of lighter carton operating without fossil fuels. and earn a reasonable packages. Stora Enso’s Biomaterials will invest some income, increase the shared 215 g/m2 Tambrite board 13.5 million euros to increase value between the forestry reduces package weight use of renewable energy at operations and local farming and generates savings the mill, after which approxi­ activities, and further develop and environmental bene­ mately 85 per cent of the oil Montes del Plata’s Productive fits throughout the supply used in the mill’s power plant Integration Programme, which chain and the product’s will be replaced with sawdust involves more than 200 local life cycle. supplied by Stora Enso’s producers, most of which nearby Uimaharju and Kitee are small­ or medium­sized sawmills. producers or members of Stora Enso acquired

EDUARDO DAVIT local cooperatives. Enocell Mill’s power plant from Fortum in December 2013.

Building new paths Packaging that reduces food waste FLYO+: New paper for Stora Enso Every year, restaurants and food service institutions products for advertisers In 2013 all Stora Enso employees again had in Sweden create 170 000 tonnes of food waste. Advertisers are switching from more expen­ a chance to apply to a programme to develop Stora Enso and Sweden’s Packaging Arena teamed sive paper grades to newsprint, but without STORA ENSO Stora Enso and to challenge our Group Leader­ up with Sweden’s Innovation Agency VINNOVA, compromising the quality of their flyers and STORA ENSO ship Team. Out of more than 200 applicants, a among others, and developed a solution to tackle inserts. Today’s technology makes it possible group of 12 employees were selected for the this enormous waste that negatively impacts both to print high­quality, four­colour images also the economy and the environment. Pathbuilders Programme. They are expected Cool. Cooler. Finland! FRANKFURT BOOK FAIR on newsprint. The solution, a concept called Boxa, is an attrac­ to address critical business challenges such The Guest of Honour at the Flyo+ is produced from 100% recycled as partnering with the management team in Frankfurt Book Fair 2014 tive foldable box made out of fibres at Stora Enso’s Sachsen Mill in Germany Biomaterials to look at business opportunities presents itself with humour Stora Enso Trayforma board. and is one example of paper developed in on how to limit food waste. The programme will and Finnish coolness – far The concept test run in Karl­ response to customer wishes. The paper’s run for seven months in partnership with IMD, a more than a hundred titles stadt generated positive feed­ extra­smooth calendered surface makes it world­renowned business school. appear in the German back from restaurant staff and suitable for commercial flyers and other print language. Mark your calendar customers alike, as Boxa makes advertising. for 8–12 October 2014 and it easier for customers to pack up join the 300 000 other book and carry home their leftovers to lovers at the fair! enjoy the rest of the meal later.

8 Rethink Stora Enso 9 Put your eggs in one basket Paper recycling – who does what? A garden in a box After a redesign of the 20­egg tray sold under the “Leto” brand in Central Russia, demand increased The kitchen garden box packaging developed in collaboration with Stora by 40 per cent in just a few months. The new design Enso and Fiskars was awarded at the Nordic packaging competition Scan­ packaging was created together with Epicur and star in 2013. The packaging was praised for its exceptionally good design, CONSUMER Stora Enso Designstudio in 2013. WASTE PAPER excellent use of materials and elegant finish. discards paper In addition to Scanstar, the Kitchengarden packaging was awarded with the Worldstar prize, a global award that is only given to “best­in­ class” packaging solutions, having already won recognition in a national or SUVI­TUULI KANKAANPÄÄ EPICUR 1 COLLECTOR regional competition. NEW PAPER- BASED pre­processes PRODUCTS waste paper (recovery)

New CFO Seppo Parvi started as Stora Enso’s Chief Financial Officer 4 2 CONVERTING in the beginning of February of paper PAPER FOR products RECYCLING 2014. He has several years of (EN 643) CFO and business manage­ RECYCLING MONITORING REPORT 2012, ERPC PAPER ment experience in the pulp,

paper and packaging industry. PAPER MILL RECYCLED PULP See the Facts & Figures leaflet AND RECYCLED turns recycled paper into pulp at the end of this magazine for PAPER 3 more information about other members of Stora Enso’s top management. Actor & Process Product & Status

All’s well with the fish Fish are one of the best indicators of water quality. For that reason, an assess­ ment of the fish stock in the waters near Imatra was carried out as part of a STORA ENSO MATTIAS BRÄNNSTRÖM MATTIAS joint initiative of the major forest industry companies operating in the area. The regional centre in charge of developing fisheries assessed the fish stocks in Finland’s southern Saimaa and Vuoksi regions right up to Stora Enso’s Imatra Mills. The data compiled in the assessment covers fish species, abundance, and fishing intensity in the areas affected by the industry and in areas with no industrial load. The assessment shows that the water quality adjacent to Imatra Mills has continuously improved. The biggest yields of vendace since the year 2000 have been reported. Stora Enso mills also commission fish stock assessments elsewhere, such as in Hylte, Sweden. An assessment carried out there in 2013 indicated that mill operations had no material environmental impacts on the river Nissan fish Climate-smart building for stocks upstream and downstream from the mill. World Ski Championships Stora Enso has a special tradition of partnership with the Nordic World Ski Championships in Falun, Sweden. The company is now taking this collabo­ ration to the next level with the construction of a climate­smart building for the World Ski Champion­ ships at the Lugnet Arena. Prefabricated CLT elements (cross­laminated timber) will be used in the two­storey, wood­frame building. With CLT elements, the construction of the building at Lugnet Arena will take only six months from start to finish. The next Nordic World Ski Championships will be held in Falun in 2015. SHUTTERSTOCK

10 Rethink Stora Enso 11 Against food waste

PHENOMENON

GETTY IMAGES Against food waste

ccording to a UN report, the climate impact of all food thrown away each year A is equivalent to 3.3 billion tonnes of carbon dioxide. This means that close to 30 per cent of the earth’s farmland is cultivated for nothing. The report also indicates that food is wasted in equally high amounts both in industrialised and developing countries. In the latter, more than 40 per cent of the food waste occurs during harvesting or in the manufacturing process; but in industrialised countries, the same amount is wasted at the retail and consumption level. Stora Enso is part of the global SAVE FOOD Initiative organised by Messe Düsseldorf in alli­ ance with the FAO (Food and Agriculture Organi­ zation of the United Nations). The initiative aims to encourage stakeholders in industry, politics and research to develop solutions along the food value chain to save food. Appropriate and correctly chosen packaging based on renewable raw materials is one part of the solution.

12 Rethink Stora Enso 13 Going beyond paper and pulp

STRATEGY

DO GOOD FOR THE Going beyond PEOPLE AND PLANET paper and pulp

Stora Enso is in the middle of a transformation process from a European pulp and paper company to a value creating, growth markets-focused, renewable materials company. The company is currently edging into new territories as a forerunner in the use of renewable raw materials.

TEXT TIINA TUOMAINEN ILLUSTRATION ANTON YARKIN operations and the value­creating businesses can focus tions: Wood is showing more potential in producing a on stronger growth. versatile range of competitive and interesting products he change into a value creating renewable that are recyclable. materials company focussing on growth markets Change agents T requires Stora Enso to do business differently The digital revolution and its impact on paper consump­ Renewable solutions than before and to serve new customers in new markets tion across the globe is a signifi cant driver of the change. The increasing global population will boost the demand that it is not yet necessarily familiar with. At the same While there will always be a need for paper, it is clear for products related to everyday living. The new planta­ time, Stora Enso is shifting from a product­driven to a that the decreasing consumption poses a challenge to a tion­based pulp mill in Uruguay guarantees that Stora market­driven company offering customers innovative company that is pursuing growth. Enso is ready for the increased raw material demand for solutions based on renewable materials. The world around us is also changing. hygiene and board products. The transformation also requires changes in the organi­ Megatrends, like population growth, energy In addition to population growth, the need for and Wood is also the building material of the future. sation: the Group must continuously rethink organisational consumption and climate change, are bound the increasing consumer focus on preserving natural Innovative solutions, like cross­laminated timber (CLT), structures in order to better serve the changing customer to happen – despite the company’s actions resources will be a driving force in the demand for renew­ are competitive, cost­saving and sustainable. CLT also needs and to survive in the increasingly challenging – and all of these megatrends will have an able packaging. Stora Enso’s main investments are, in offers opportunities for faster construction of buildings. This is what global competitive environment. Renewal happens by impact on the future operating environment. fact, in growth markets, such as China and Pakistan. you asked e.g. lightening organisational structures and outsourcing As a company, Stora Enso is well posi­ The stronger shift in consumer behaviour towards More with less What does operations. Assets that are outside the core operations tioned to respond to the changing needs online shopping, among others, is resulting in changes Stora Enso is complementing its current products the future are sold. This lessens the interdependence of the business and can offer sustainable and sound solu­ in packaging needs in Europe as well. Stora Enso’s and solutions by rethinking the traditional ways of look like? strong foothold and new investments – for example, utilising its raw materials. The company has access to a the new containerboard machine in Poland – renewable raw materials base and the ability to develop guarantee that the core innovative products that combine consumer needs with ENERGY of our strategy is sustainable raw materials. CONSUMPTION LEAD based on changes in DO WHAT’S RIGHT Stora Enso’s pulp mills Sunila and Enocell, in consumer behaviour. Finland, are already transforming their operations DIGITAL from traditional pulp production. In Sunila, the new REVOLUTION products will be based on lignin. This by­product CLIMATE of pulp production is showing great potential, for CHANGE example, as a raw material for the construction and automotive industries by replacing fossil­based raw This is what materials with a renewable alternative. you asked Pulp will continue to be used to produce paper Where is and board, but it will have much more diverse appli­ cations than in the past. At Enocell Pulp Mill, the Stora Enso cooking process produces dissolving pulp, which serves headed as a new markets like textile, food and pharma ceuticals. company? Understanding and exploring wood at new depths will create more interesting applications for the future. In its transformation process, Stora Enso is involving stakeholders around the world. Shared value crea­ tion with the communities Stora Enso is part of, is an integral part of the change. The destination of Stora Enso’s journey is the company’s Purpose “Do good for the people and planet”, and its values “Lead” and “Do POPULATION what’s right” serve as the guideposts every step of the GROWTH way.

14 Rethink Stora Enso 15 Transformation on three continents

Montes del Plata Transformation on three continents

The future will see Stora Enso serving customers in new geographical locations and in new industry segments. Montes del Plata in Uruguay, Guangxi in China, and Sunila in Finland are three locations where Stora Enso’s transformation to growth markets and a renewable materials company are becoming reality.

TEXT TIINA TUOMAINEN, IRENA BUSIC, DANDAN LYN, KIRSI SEPPÄLÄINEN

PHOTOS EDUARDO DAVIT, TUOMAS HARJUMAASKOLA, VESA LAITINEN, JOHN LI

Sunila

Guangxi

16 Rethink Stora Enso 17 Heading to growth markets proud of their work. At the same time, the operations team, which has been in training for a long time, is now The Montes del Plata Mill will be producing pulp out of starting to face the real process. eucalyptus wood to be sold in pulp markets worldwide. For Stora Enso, the joint venture with Arauco is a signif­ State-of-the-art experience icant step in completing its strategy of growth markets and a renewable materials orientation. At the peak of the construction phase there were 6 500 “Uruguay is an ideal location for a pulp mill. The people working at the site, and the mill site canteen climate is very suitable for eucalyptus trees, which can served nearly 20 000 kg of meat and 9 000 kg of bread be harvested in about ten years. In addition, Uruguay’s every month. geographic location gives Montes del Plata a good The new pulp mill will directly employ approximately competitive advantage,” says Juan Bueno, Executive 500 people once it is fully operational, but its impact on Vice President of Stora Enso Biomaterials. the area is far greater. In a small country like Uruguay, “Montes del Plata will produce a differentiated pulp a project of this size will have a significant effect on the for tissue and specialties markets. It is a good fit with employment and economic development of the whole our strategy to focus in higher growth market seg­ country. ments.” Huge projects like building a pulp mill are also great Global megatrends, like population growth and learning experiences. “This learning is not restricted urbanisation, have increased the demand for numerous only to the mill site development, but it can be also pulp­based goods during recent decades. One of the utilised on a broader scale,” says Juan Bueno. growing sectors is tissue, including products like toilet He admits that there are some things that would paper, kitchen towels and napkins. now, with all this knowledge, be done differently. The new road to the According to the market intelligence company Scheduling challenges and delays along the way in the mill was build in co­ Hawkins Wright, the annual growth rate in tissue mar­ building process have been especially troublesome. operation between kets has been some 3 to 4 per cent, i.e. approximately “Yes, we have had issues. And now we have a lot of Montes del Plata and experience that we can use in future projects,” Bueno the local authorities to one million tonnes yearly. Tissue demand has been says. “But when looking back, the months of delays will improve traffic safety growing globally, especially in China, due to higher dis­ and avoid future posable income and changing consumption habits. eventually become minor. They do not darken the fact heavy traffic through The growth is expected to continue at similar rates that we will have a very profitable pulp mill for years to the nearby town of also in the near future. It is estimated that the demand in come. Some of techniques are being used for the first Conchillas. China will increase especially in premium tissue product time ever. In addition, the mill site’s great location with categories, where eucalyptus pulp is a highly valued raw its own exclusive harbour will translate into a logistic material. advantage.” Stora Enso is now well positioned to offer its cus­ Thorough testing to guarantee quality tomers various types of pulp; Montes del Plata with its state­of­the­art site brings a valuable addition to Before the Montes del Plata mill can serve the global company’s pulp portfolio. pulp markets at its full capacity of 1.3 million tonnes “We may not be the largest pulp company, but we of eucalyptus pulp that is equally distributed between can offer our customers a complete portfolio of pulp Stora Enso and Arauco, it must complete the commis­ grades,” Bueno says with confidence. sioning and ramp­up phases. In the commissioning phase, all the equipment, piping and other facilities are tested with water and steam. “We have to make sure that everything works as Montes del Plata planned and that the plant is ready for continuous, safe and sustainable production,” Araneda explains. Commissioning requires a lot of coordination be­ The city of immense opportunities tween different parties: All the people who have been The newly paved extension of Route 55 heads straight taking part in the construction phase can now see towards Punta Pereira and to the pulp mill site of how the project is becoming a reality, and they can feel Montes del Plata. As you drive closer to the mill, it gives the impression of being a city with its very tall buildings reaching up to the skies. This is what The overall area of the mill site is 361 hectares – big you asked “The comissioning enough to hold more than 350 football fields. Take a requires a lot of walk around the circumference of the site and you’d get How is Montes coordination between eight kilometres on your pedometer. Mill Manager del Plata doing? different parties, Hector Araneda has a vast domain to show off to and safety is a very anyone who visits the site. important aspect of it,” Hector Araneda The site is filled with activity as the important emphasises. commissioning and ramp­up phase is under way prior to the actual start­up of the mill. “The start­up process for a pulp mill is not a matter of just pressing one button; it requires a string of actions that can take from three to six months,” Araneda explains.

18 Rethink Stora Enso 19 “With the revised plan, we are able to access the Chinese customer market on an accelerated timetable,” Markus Mannström says.

Once completed, Stora Enso’s new board mill in Guangxi Guangxi will annually generate 450 000 tonnes of liquid packaging and consumer board for the Chinese Close to growing markets EFFICIENT LOGISTICS DRIVING SUCCESS markets. This amount is consistent with the growing A focus on growth markets is a driving force in Stora market demand. Logistics is an important factor to consider – both when shipping products to customers and in terms of Enso’s transformation. The vigorously growing markets the continuous flow of raw material to the mill. in China and the proximity to customers justified Stora A two-phase plan When the Montes del Plata pulp mill is up and running, there will be approximately 200 trucks entering Enso’s decision to build a combined pulp and board mill After years of preparation, construction has begun the mill site every day to ensure the flow of raw material and others supplies. However, these trucks only near the city of Beihai in the Guangxi region in southern at the future mill site. More than 100 excavators and account for some 40 per cent of all wood that will arrive daily. China. trucks move across the red soil of the construction site, The majority of the wood will come in on four huge barges, with each barge having the capacity to Change and growth are clearly visible in Guangxi, levelling it for the next stage of construction. hold 170 truckloads of wood. one of the last provinces to be developed along coastal “We are here to participate in the change – a posi­ Each day, the barges will travel 156 kilometres to reach the logistics terminal located near the tree China. While traditional fishing boats wait for high tide tive change,” Phil Berry says. He joined Stora Enso plantations that are upstream from the Montes del Plata mill site. at the shoreline in the city of Beihai, cranes and sky­ recently to work as Sustainability Director in Guangxi. “Barges are more efficient for long-distance transportation, in terms of CO emissions and possible 2 scrapers rise up to the skies behind them. Markus Berry has long experience in China and in sustainabil­ accidents on the road,” says Ricardo Brunner, Logistics Manager at the mill. Mannström, Head of the Guangxi mill project, has been ity issues. He has spent years assisting transnational The wood arriving from nearby Montes del Plata is transported with trucks. “We have been paying a following the change since 2009. companies build stakeholder relationships and set up lot of attention to safe driver training,” explains Brunner. “Our drivers are also the face of our company as ”The increasing disposal income and consumption sustainable supply chains for their operations in Asia. they drive through cities and towns.” The inbound logistics changes in the Chinese markets are boosting the de­ Doing business in a diverse cultural environment in at Montes del Plata mand for packaging board at an annual rate of approxi­ a country that has 5 000 years of history is not always are mostly organised mately 10 per cent. It is important to be part of this straightforward. “We need to respect the culture we with barges that help growth,” Mannström emphasises. are working in, but, at the same time, Stora Enso is not the mill to reduce the environmental impact of wood supply.

20 Rethink Stora Enso 21 compromising on its own principles,” Berry stresses. the local society and boosting the demand for new The construction plan itself has undergone changes skills. According to Mannström, the role of a respon­ along the way: the original plan of simultaneously build­ sible company is to participate in this development by ing both a pulp and board mill has been modified. In or­ offering new positions and creating shared value with der to benefit more quickly from the growing consumer surrounding communities. demand for hygienic and high­quality consumer board, One of the latest steps in the sustainable develop­ the construction will proceed in two phases. The first ment of the Guangxi area is Stora Enso and Kemira’s emphasis will be on construction of the consumer board joint project to promote responsible water management machine and related industrial investments. and community engagement. In addition, the change in timing will allow more time The project aims to find new solutions for respon­ for building the wood supply in a sustainable manner sible water management through stakeholder surveys, with local communities, since the pulp mill needs won’t community work and water­related capacity building. have to be met immediately. The pulp project will now According to Berry, Stora Enso’s job in this project occur as the second phase, after start­up of the board and on a more general level is to bring along the best machine, which is estimated to take place in 2016. practices, manage the environmental impacts and make sure the company acts as a responsible corporate Long time horizon citizen. Has investing in China proved worthy of the effort Stora Enso has solid know­how as a producer of so far? “That’s a good question,” replies Markus packaging materials. This expertise isn’t fading away in Mannström. “We strongly believe that it has.” company’s transformation process; it’s being leveraged Stora Enso took its first steps in the South Chinese also in the new markets where there is a rapidly growing ground of Guangxi back in the early 2000s by estab­ demand for products that are based on that compe­ lishing tree plantations. The planning process for build­ tence. Stora Enso’s aim is to help create a world­class ing an integrated board and pulp mill started in 2009. forest technology cluster in the Guangxi area. Major projects always require resources – a lot of Gaining a foothold and enhancing the development capital and time. Stora Enso has come to Chinese mar­ opens up interesting future opportunities, too. kets with a long time horizon, as it has been operating in “Once the board and pulp mill is completed, we Finland and Sweden. will have a good position to follow the development of As new businesses replace traditional livelihoods, fibre­based products and bring other sustainable solu­ the development taking place in Guangxi is changing tions to the market,” Mannström envisions.

This is what you asked Work at the mill Will the China site started after all the necessary joint project be worth venture agreements all the work? were signed.

“YOUNG TIGERS” In the lead­up to Guangxi mill’s inauguration, professional and motivated people are needed to guarantee smooth operations. Therefore, Stora Enso has hired 119 young graduate engineers from Chinese universities for two years of thorough training. “Our aim is to have a talented group operating our mill. We also want to emphasise team spirit: an important goal is to have this large group working together to achieve targets,” says Pentti Ilmasti, Director of Industrial Operations. He is the one responsible for the trainees’ future positions in the Guangxi organisation. The students will go through an induction programme ranging from Stora Enso company culture to in­depth understanding of board mill processes. “The connection between theory and practice has turned me from a college student into a professional technician,” says Wang Yichao, one of the trainees. The training will also include internships at Stora Enso’s existing mills in China and Europe starting in 2014. “I chose the company to learn more from its leading merits. As a Nordic company, Stora Enso has a people­oriented management model and its own unique culture,” Wang Yichao highlights. “Joining Stora Enso is the first significant decision I’ve made in my life. I have been living in my “So far, I am aware of how hometown for over 20 years, and now I am looking forward to the opportunity to see a bigger world,” a papermaking company Zhang Lijuan says. operates and how the professional knowledge is “This programme is just a starting point for the continuous training we all need,” Ilmasti utilised,” explains Wang concludes. Yichao (on the right) to Zhang Lijuan.

22 Rethink Stora Enso 23 Mill Director Olli-Pekka Reunanen is also pleased, production plant that was previously known as a pulp and with good reason. Installing the new machinery mill will now be more precisely known as a ‘forest­based in the architectural milieu that dates back to 1938 is chemical extraction plant’,” says Hannus. an enjoyable challenge for the mill staff. “We won’t be building new buildings; instead, the idle buildings in the The journey continues mill area will be used to house the machinery required A small plastic bag containing lignin that has been dried for the biorefinery,” explains Reunanen. into a powder sits on the conference room table. It resembles cinnamon. Upon opening the bag, a warm Forest chemistry aroma with a hint of tree tar wafts into the air. Prior to making the 32­million­euro investment deci­ This unassuming powder has a promising future: The sion, Stora Enso carefully looked into areas where lignin initial markets are anticipated in, for example, the con­ extraction would be profitable. Sunila is Stora Enso’s struction and automotive industries, where lignin offers first, but probably not its last, biorefinery dedicated a sustainable alternative to the phenols used in plywood investment. and wood­panelling glues and the polyols used in “We have known all along that Stora Enso is now foams. Other applications are also under development. entering new markets, but in order to gain a strong “The market for it might be tremendous, as lignin is foothold, Sunila will most likely not remain the only one not yet being fully exploited,” Batistini points out. of its kind,” says Antonio Batistini, Stora Enso’s SVP “Lignin extraction is just one example of the diversity Innovations and Biorefinery in Biomaterials. of the pulp production process. We want to carry on The diversity of the pulp production process has in this research journey to reach an even deeper and Harri Helenius sees long been a well­known fact, but the high demand for broader understanding of everything that can be made that the biorefinery investment has given paper pulp has overshadowed its by­products. The shift with this renewable raw material of ours,” he adds. employees confidence taking place in recent years has been welcomed within that they can continue the Biomaterials Division as a positive challenge and an working in this historic opportunity for change and innovation. mill setting. In the future, pulp mills will not only serve the paper

and board industry, but also many other sectors, such This is what as the construction or automotive industries. you asked Market interest in renewable materials has been What kinds of growing, and there is both a need and a demand for interesting product alternative raw materials. Stora Enso now has the opportunities are opportunity to respond by leveraging its expertise and raw materials more extensively than before. emerging? Stora Enso has been researching lignin and its attri­ butes for more than a decade. “Lignin is a challenging and complex material; it’s an honour to be a pioneer in this area. At the same time, we are taking a leap into new and previously uncharted markets, but Stora Enso is in a good position to develop commercially viable applications from lignin,” says Mikael Hannus of the Biomaterials’s Biorefinery and Bioenergy unit. lignin may eventually be one of the new renewable Sunila’s lignin extraction plant is the first of its kind materials extracted out of the green gold of the Nordic Sunila in Europe and only the second one in the world. In ad­ forests. At the source of the renewable gold of dition to commercial applications, some lignin will also Nordic forests A new beginning be combusted as a source of energy – thanks to its high energy value. Lignin will partly replace the natural gas New solutions are currently under development in Following the biorefinery investment announcement used by the mill, thereby reducing its CO emissions. southeast FinlandFinland at Stora Enso’s Sunila Pulp Mill, 2 made in July, there is an air of excitement at the mill – The mill will produce roughly 50 000 tonnes of dried where the smellsmell of fresh­cut wood greets visitors at the and understandably so: as recently as 2009, it looked lignin per year. “As a result of this investment, the gate. The conifersconifers that grow in these Nordic woods are as though the pulp mill would be shut down for good; part of crystallisingcrystallising Stora Enso’s path to becoming a operations had been at a standstill for close to nine renewablerenewable materials company. months. After the long wait, operations were started up AlthoughAlthough trees in the northern hemisphere take again, but the atmosphere of uncertainty persisted. decdecadesades to grow, the new conifer­based products will “Sure, we all wondered how long it would go on,” ensureensure the continuity of Stora Enso’s production also recalls Sunila’s Chief Shop Steward, Harri Helenius. Advancements in in the Nordic countries. In the future, the Sunila Mill Nevertheless, good news came in 2013. During the the pulp production will extract lignin from pine and spruce and will offer annual autumn shutdown, the mill geared up for the process have left an alternative renewable platform for the needs of the construction of the future biorefinery. The first dedicated some areas of the mill site facilities empty. chemical industry, for instance. biorefinery investment is expected to be completed in Lignin is an organic material that binds the fibres They will soon be put early 2015. to new use. and cells of wood. The word lignin may not be familiar “This has given us renewed drive and has really to many, but there is a lot of anticipation and excite­ boosted the employees’ level of engagement,” says ment around this material. Why? Experts say that Helenius.

24 Rethink Stora Enso 25 Anatomy of a shopping bag

PART OF THE PULP PROCESS In a few years, new pipes for lignin extraction will criss-cross Sunila Pulp Mill’s existing jungle of pipes. The new biorefinery operation will not change the actual pulping process – or the mill’s outline, designed by Alvar Aalto. “Without pulp production, there is no lignin,” says the mill’s Development Director, Jarmo Rinne, who is in charge of the practical realisation of the biorefinery project. Traditionally, black liquor and the lignin it contains are combusted in the pulp mill’s soda recovery boiler. In Sunila’s production process, however, the heat generated exceeds the mill’s requirements, which means the lignin can be extracted from the black liquor and sold. For the lignin extraction process, presses – accordion-shaped structures weighing 65 tonnes and about the size of a lorry – will be built to isolate the lignin particles from the black liquor. Following the pressing stage, the lignin particles are fed into a high-speed, 30-metre-tall rotary dryer that removes the residual moisture from the lignin particles. The end product is lignin powder. Sunila Mill is a pioneer in the drying process: “No one has ever attempted to dry explosive lignin, so fire and explosion safety is crucial,” Rinne stresses. Anatomy of a shopping bag

Did you know that pulp is used as an additive in many of the products you use every day? By changing the production method used at the mill, pulp can be cooked, for example, into dissolving pulp, which is then converted into raw material for a lot more than This is what you asked just for paper or board production. Is it possible to move into TEXT TIINA TUOMAINEN ILLUSTRATION ANTON YARKIN areas, like, water, food or issolving pulp and other compounds derived from it can be converted for very different end-use applications. There is growing interest in the diverse possi­ energy, in order D bilities afforded by pulp, and its characteristics are being utilised more and to find a new more extensively. This natural and renewable raw material represents an interesting growth basis? future alternative. Turn the page to see examples of products that can make use of pulp’s diverse characteristics. Lignin is part of Stora Enso’s expanded exploration into utilising cellulose and other wood-based raw materials. 26 Rethink Stora Enso 27 Toothpaste Viscose fabrics Shampoo Additives made from dissolving pulp Viscose is made from dissolving Cellulose derivatives act as a Dissolving pulp, what is it? increase the viscosity, i.e. thickness, pulp. Garments made of viscose are foaming and thickening agent in • Dissolving pulp results from a process and the softness of toothpaste. pleasing to the touch and absorb shampoo. during which lignin and the sugar moisture. They are also easy to wash compounds that increase the strength of and the colours do not fade easily. pulp in paper making are removed. The fabrics cupro, modal, and rayon • Regenerated cellulose in many forms are also made of dissolving pulp. has been well­known for some time, but new uses are constantly being found Lip gloss, nail polish for viscose and other dissolving pulp grades, such as acetate and ether. Cellulose derivatives are used as a • Depending on the grade, the dissolving stabiliser in cosmetics; they make it pulp market is growing at a rate of 3 to easier, for example, to brush on nail 10 per cent annually. polish. • Stora Enso produces dissolving pulp at its Enocell Mill in Finland. Most of the mill’s dissolving pulp production currently goes to the textile industry, where it is manufactured into viscose.

In addition to the examples mentioned in this article, the diverse and adaptable characteristics of dissolving pulp make it a useful product in the manufacture of car tyres, cement, sponges, salad dressings, ketchup, hair colour, and a number of baked goods, to name a few. Used as food additives, dissolving pulp derivatives go by E numbers E460 to E469.

The consumption of dissolving pulp is not harmful to human health; in fact, on its own it can even be used to treat problems of the diges­ tive system. Consumed Sweet wrappers directly off the roll, though, the taste can be described in Cellophane made from dissolving pulp wine­tasting terms as “short is used in, among other things, sweet and very woody”. wrappers. Cellophane wrappers are shiny and have a plastic feel about them. If a wrapper no longer returns to its original shape after being crumpled up, it was made with pulp.

Sunglasses Dissolving pulp derivatives are used in the frames of sunglasses to prevent the colours from fading. Vitamins and medication Coatings that contain cellulose derivatives can aid in the swallowing of tablets or capsules. Pulp is also used as a binding agent in tablets, enabling the steady Jam Sausage casing Weight-loss products Soft ice cream release of the medication. Cellulose derivatives give Sausage casings can be made with viscose Cellulose derivatives can be Cellulose derivatives enhance the structure jams just the right texture for and are safe for consumption. Salami is often used to partly replace fat and of soft ice cream, make it easier to spreading. encased in thin paper that is coated in a layer as a preservative in weight­loss dispense, and make it less vulnerable to of viscose. products. room temperature.

28 Rethink Stora Enso 29 Books don’t run out of power

Students at Vanttila School in Espoo are looking for new books for their online reading circle. Redesigning the future with renewable packaging

Optimise your packaging and increase the value of your brands by recyclable and renewable packaging. We are your responsible partner with a wide offering of advanced, biobased packaging materials and solutions. Let’s rethink your packaging demands together.

Books don’t run out of power

Let’s talk about books. The new arena for discussing literature is the internet, where the conversation is carried out in book blogs and virtual reading circles, for example. But, there are also busy people who take time out of their hectic schedules to get together for hours at a time to discuss the book they have just read. What’s it all about? Students from Vanttila School, book blogger Katja Jalkanen and researcher Suvi Ahola share their thoughts.

TEXT TIINA TUOMAINEN PHOTOS SUVI­TUULI KANKAANPÄÄ

Stora Enso 31 Tomorrow’s active readers enjoy participating in discussions on what they have read in the medium of their choice.

t’s a sunny morning at Vanttila School in “Wuthering Heights wasn’t,” in existence since the 18th ways: “I’ve always read a Espoo, Finland. A group of students and adds Eeva. century. lot but since launching my I their teacher head to the school library. The online discussion of “A sense of commu­ blog, I’ve read even more. These students are here to talk about books books opens up new perspec­ nity affects what is read,” I’m also thinking about – right after they get themselves comfortable tives, according to their teacher: says researcher and book what I’m going to share in on sofas and Fatboys in the library’s cosy ”Using technology to write about critiques journalist Suvi my blog while reading.” corner. literature inspires even those Ahola who wrote her For more than a decade, Finnish primary students who aren’t usually doctoral thesis on reading Marriage of print and schools have been using online reading as active to produce complex, circles. According to her, electronic media circles in teaching literature. “In the begin­ expressive prose,” says Haaro. sharing a reading experi­ ning, participants used email to discuss the Students from both Vanttila ence challenges readers With the smoothly flowing books; now, mobile phones might provide the and another school in Espoo take part in the online to pick up and read more stream of both face­to­ platform for discussion,” Finnish­language teacher reading circle. Several similar discussions are also difficult literature: “Reading face and electronic literary Heli Haaro describes the taking place in primary schools around Espoo. together emboldens discourse, the printed technological shift. “When we are in the classroom talking about readers to take on more of book has been able to Haaro organises online books, we produce longer texts, for example, on a challenge.” maintain its popularity, reading circles as part of the the plot, but when we participate in the forums, the The reading circles despite the increase in literature studies. The clubs messages are shorter, in chat form,” explains Eeva. that Ahola analysed met electronic books and have an annually changing “The reading circle experience has been a regularly, in cafes, at the various e­book readers. theme, which is fantasy success when someone has carefully read what library or at the home of a “To me, the printed fiction for eighth­graders I’ve written and answered the questions I’ve member. She realised that, book still has a better user Janita, Susanna and asked,” says Aaro and starts fiddling with his in fact, the need to discuss interface, it doesn’t run Hanna. Ninth­graders Eeva, phone. things is the most important reason to belong out of power, and I end up savouring the printed text Otto, Aaro and two Hannas The reason for this gesture becomes clear as to a reading circle. Furthermore, shared reading for much longer,” Jalkanen sums up her opinions are studying the Finnish the young man experiences help the readers to develop their about advantages of traditional books. classics. starts reading analytical skills, express their opinions and broaden The students from Vanttila School also tend to When their teacher Joutsen (Swan), a their horizons. orient themselves towards the printed word. Eeva introduces the books to the poem by Finland’s explains that she reads short stories on her mobile but students, they are equally national poet J.L. A focus on books that she prefers reading novels in printed form. “An excited about picking up Runeberg. “What actual book is easier to focus on, it’s not as easy to the Twilight saga as they are about the Finnish literary do you think?” he A new phenomenon in social reading in recent years become distracted,” her classmate Otto adds. classic Papin tytär (The Clergyman’s Daughter) by asks Eeva after has been book blogs with books and book­oriented Experts are confident that printed books will have a Juhani Aho. he has finished. discussion, a shared experience, as their focal point. role also in the future. Modern bookworms may enjoy “Marshmallowy, Book blogs and reading circles are very similar in the rustle of a book’s pages but they do not isolate New perspectives too soft in my many respects but there are differences between the themselves behind their stacks of books. Quite the two. Katja Jalkanen and Hanna Pudas, authors of opposite: tomorrow’s active readers, like the students The aim of Vanttila School’s online reading circle is to opinion,” is Eeva’s Rivien välissä (Between the Lines), a book on book from Vanttila School, enjoy participating in discussions challenge students. snap analysis. blogs, describe the freedom offered by the virtual on what they have read, in the medium of their choice. “Our goal is to teach students how to discuss environment – freedom in terms of selecting books, The need to share and experience things together literature in a way that will enable them to analyse their The allure of choosing when to write and comment, and deciding on has grown in our modern society – also when it comes own thoughts on books and to compare them with social reading blogs to follow. to something as personal as reading a book. comments made by others,” says Haaro. Social reading Jalkanen explains how she used to belong to a The books selected are not always from the is not a new reading circle but admits that even just fitting monthly Stora Enso is Europe’s leading specialised book paper students’ top­10 list. “Surprisingly many students say phenomenon as meetings into the busy calendar of a working mother producer. The book paper range offers both uncoated that they’ve enjoyed reading the classics,” Haaro says. such – literary salons date back to 16th century France. was surprisingly difficult. Today, she writes her own and coated paper qualities suitable for end products The students recall both the positive and worst reading This same literary tradition goes back a long way also in book blog Lumiomena (Snow apple). ranging from hard and soft cover books, to art books experiences: “The Hobbit was really good,” says Otto. Finland where reading circles are known to have been Blogging has affected Jalkanen’s reading in two and school books, among others.

This is what you asked Is there power in print?

32 Rethink Stora Enso 33 Blinds open!

Stora Enso is one of the first listed companies to

establish a dedicated board-level committee to Blinds handle corporate responsibility issues. Global Responsibility and Ethics Committee members open! Anne Brunila and Birgitta Kantola want to engage in open dialogue with stakeholders.

TEXT JENITA SILLANPÄÄ

PHOTOS RIITTA SUPPERI

34 Rethink Stora Enso 35 More openness ”Ethical principles must be the The first thing Stora Enso’s Global Responsibility and same everywhere,” says Anne Ethics Committee has set out to do is to increase the company’s openness in disclosing corporate matters. Brunila. In 2013, Stora Enso was dragged through the mud by the European media for, among other things, land conflicts in China, poor working conditions in India, and questionable accounting practices in the Nordic countries. listening, as well as an understanding of different In order to develop its operations a company should cultures and operating environments, and time,” says be ready to listen to its stakeholders and develop its Brunila. business practises. Ambitious stakeholder work has been carried out for “More openness,” the two women exclaim in unison. many years at Stora Enso. A lively discussion can be heard from the hallway Eye on the East “Openness is not just about communications, but “You can’t make a corporate image sparkle just by outside the conference room. Stora Enso Board Finland’s Presidential Palace can be spotted between also about engaging in successful dialogue with stake­ polishing it,” Brunila and Kantola agree. members Anne Brunila and Birgitta Kantola have just the conference room blinds. Stora Enso’s and the holders,” says Brunila. The members of the committee regret that the public closed the second meeting ever of the Global Responsi­ Nordic forest industry’s history extends far beyond that One example of engagement is the Global Respon­ has not been made aware of Stora Enso’s efforts to bility and Ethics Committee. of the Finnish presidential institution. sibility Advisory Panel that took place for the second bring added value to local communities around the These women are no strangers to discussing compli­ Since the beginning of business, responsibility has time in 2013. The first online stakeholder panel in 2012 world alongside its business operations. cated matters where finding the right answer is not also been part of the work carried out by forest compa­ played a role in steering Stora Enso’s responsibility Among the untold examples are the new livelihood always an easy task. nies. In the Nordic countries, this social responsibility strategy work – and also partly influenced the establish­ opportunities that Stora Enso’s mill project has intro­ And this topic is one to be taken seriously, as, in work included setting up schools, day­care centres, ment of the new committee. duced to the people of Guangxi, China, where new jobs addition to generating profitable business, companies housing and other infrastructure in the vicinity of the “The stakeholder work requires legwork and commu­ are being created in the forest cluster. are also expected to be socially, economically and mills. nications. Good stakeholder relations are based on Stakeholder work must not be done from behind ecologically responsible. The committee made up of Now, these same mills are being shut down as a mutual trust, and that takes genuine engagement, closed blinds. Brunila and Kantola oversees Stora Enso’s corporate result of the structural change taking place in the paper responsibility work. Worldwide, it is still rather unusual industry coupled with the poor economic development for a company’s Board of Directors to commit so in Europe. strongly to responsibility work – and this makes Stora “Paper production capacity must be cut back Enso a global forerunner. because the demand for paper has shrunk in response “It is important for responsibility to be spearheaded to, among other things, digitalisation and the media by senior management,” stresses Birgitta Kantola. shift. We are reading news online more frequently and “At the same time, we cannot approach respon­ Who? Who? buying fewer printed newspapers and magazines. This sibility and corporate values as areas that are only Birgitta Kantola Anne Brunila trend has been witnessed in the U.S. for some time handled at the senior or mid­management level,” adds now, but only in recent years has it gained momentum Anne Brunila, chair of the committee. A substantial • A boardroom • A boardroom profes­ in Europe and particularly in the Nordic countries,” Anne amount of Stora Enso’s responsibility work is carried out professional and sional and Dr.Sc. Brunila points out. at the company’s mills and other business locations. LL.M., Econ. Dr. (Econ.) born 1957 “We are a listed company, and we have to look at “In practice, responsibility means that each person H.C., born 1948 • Member of Stora it from that perspective. It is also important to foster performs his or her work well, according to guidelines • Member of Stora Enso’s Board of Direc­ innovations to ensure that we have more products that and legislation, while also paying attention to safety, and Enso’s Board of tors and Chair of the can be manufactured profitably in Europe,” adds Birgitta caring for the work community. It’s not about individual Directors and Global Responsibility Kantola. actions, but about the overall operating culture,” says Financial and and Ethics Committee Global development is inevitable. As demand in Brunila. Audit Committee since April 2013 northern Europe diminishes, consumption of paper and The decision to establish the Global Responsibility since 2005 and • Member of the board is continuing to rise in the Asian countries. The and Ethics Committee was made at the 2013 Annual Chair of the Board at Sampo Plc, focus must be increasingly steered away from the Old General Meeting. The Committee’s main task is to Committee since Kone Corporation, Continent. oversee responsibility of Stora Enso’s operations 2009. Global Sanoma Corporation, “Ethical principles must be the same everywhere,” worldwide and to promote business operations that are Responsibility and Ethics Committee member the Research Institute of the Finnish Economy says Brunila. ethical, responsible and sustainable. since April 2013 (ETLA) and the Finnish Business and Policy Forum The company, with its roots deep in Finnish and • Member of the Board at Skandinaviska (EVA). Vice­Chair of the Board of Aalto University Swedish coniferous forests, cannot, however, overlook Enskilda Banken AB and Nobina AB. Earlier Foundation and Chair of the Finnish Board of the This is what any of its areas of operation – a fact that has also come you asked positions on the boards of energy company International Chamber of Commerce to light in connection with the many cuts that have Fortum, financial group Nordea, mutual • Previously served as Executive Vice President, Is it realistic recently been made at the company’s birthplace. pension insurance company Varma and the Corporate Relations and Strategy at energy to think that “We have to be the same good company – no matter NasdaqOMX company Fortum, President and CEO of the Finnish Stora Enso’s where we operate,” says Brunila, touching on the core • More than 30 years of experience in the global Forest Industries Federation, Director General of the Nordic culture of corporate responsibility work. financial markets. Career includes positions Economics Department of the Ministry of Finance, ­based ethics In addition to equality, Stora Enso’s corporate as Finance Director at World Bank Group, and held various positions in the Bank of Finland and can be transferred responsibility work stresses an understanding of the Chief Financial Officer of International Finance the European Commission. to countries local operating environment, which means complying Corporation (IFC) and Executive Vice President, • Named the most influential woman in Finland in such as China? with the company’s Code of Conduct while at the same Finance at Nordic Investment Bank. 2013 time respecting the local context. Kantola stresses that • Professor at the Hanken School of Economics, if cultural aspects are not taken into account, “we might from the beginning of 2014 not always have a quick enough understanding of where the problems lie.”

36 Rethink Stora Enso 37 Protection for online purchases 38 specially designed for online purchase deliveries. ­delivered by post contain goods bought online. China, approximately 60 per cent of the packages be protected until they reach the purchaser. In according to Goldman Sachs. growth is estimated to be almost 30 per cent yearly, leading e in online shopping but is on the verge of giving its that number decreasing. in 2012 shopped online and there are no signs of European users Union, nearly 60 per cent of internet are shopping from their computers. Actually, in the clothes? Shoes? Have you ever shopped online for a book? For purchases online for Protection PHENOMENON Stora Enso’s Nettiboksi (net box) packaging is Products need to bought on the internet Europe currently holds the number Every year, a growing number of consumers Rethink - commerce position to Asia, where the - one position

GETTY IMAGES everyday living. everyday Innovations for buildingandliving.storaenso.com sustainablewood. Building forliving.With construction –andeverythingwoodeninbetween. decking andmassivewood-basedsolutionsformulti-storey Pellets forrenewable energy, modifiedwoodforsustainable Smells like team spirit

elsinki, Finland, 5 September 2013. It’s the trainees’ first week together. They’ve arrived H from all over the world to start their 18-month journey. The group of 22 young people is discussing one of the many tasks they have been given – to come up with ways to share their journey in the trainee programme with the rest of Stora Enso’s employees. The discussion is lively, and they quickly come up with a plan of action: a group blog where they all share their experiences. During their first week together, the trainees have met with top management, including the CEO. This is part of what the trainee programme offers – an in-depth view of the company and its people. They have been asked to prepare questions beforehand and they have taken the opportunity to get the information they are looking for.

Motivated to work for Stora Enso All of the trainees have worked really hard to end up in their current positions. And it hasn’t been a straight road for all of them. Myrene Duerto-Kivelä knows about the hardships of trying to find a job. She very actively looked for a job for over a year, submitting several job applications each week. She was ecstatic when she found out she had landed a job as a Pulp Sales Assistant in Stora Enso’s Bio­­materials Division in Helsinki. “I saw the job ad on LinkedIn and it had my name written all over it. When they called me to tell that they wanted to hire me I couldn’t believe it at first,” she says. Björn Thelin’s position, Business Intelligence Analyst in Stora Enso’s Consumer Boards sales and marketing team in Stockholm, was one of the most popular during the recruitment process. Björn was very interested in the job. ”The trainee programme was an added bonus; I would have been so disappointed if I Smells like team spirit

TEXT KATJA OLLILA PHOTOS TEEMU KUUSIMURTO, ANNA EKLÖF, JEANETTE HÄGGLUND, JUSSI HELLSTEN

Starting a global leadership trainee programme during a heavy restructuring process may seem like a foolish thing to do. But in reality, the programme is crucial for Stora Enso’s future, and the trainees are expected to help Stora Enso in the change process. Three trainees, Myrene Duerto-Kivelä, Frida Pettersson, and Björn Thelin, share their views of Stora Enso, how they ended up working for the company, and why the forest industry is, in fact, a more attractive employer than ever.

40 Rethink Stora Enso 41 Myrene had not been selected for the position,” he says. Frida Pettersson was also primarily interested in Duerto-Kivelä the position she applied for. She works as a Develop­ Myrene Duerto­Kivelä, 30, works Myrene Duerto-Kivelä ment Engineer at Fors Mill in Sweden. She’s passionate as a Pulp Sales Assistant in Stora about technology and loves working close to the Enso’s Biomaterials Division in is impressed by the machines at the mill. But in addition to the technology, Helsinki. changes she sees at she was attracted to the nature of Stora Enso’s busi­ ness. “You can do so many different things with wood. When she talks about her life so Stora Enso. “There’s I wanted to work for a company whose business is built far, it’s obvious she has seen more so much going on.” on long­term sustainability,” Frida explains. than many people have during an entire lifetime. Myrene is originally Challenges in recruitment from Venezuela. She left at a young age to study abroad. She has a The trainee programme is important to Stora Enso, degree in Industrial Engineering from as it adds talent to the organisation and provides the Urbe University in Venezuela, and company with new perspectives on several matters. For a Master’s Degree from Ansbach trainees, the Stora Enso programme offers more than University of Applied Sciences just a job: it gives young people a chance to develop in Germany where she studied themselves and their leadership skills and to travel Management. abroad and meet their peers. In addition to the fact that the forest industry is seen Myrene didn’t originally plan on as struggling, the majority of Stora Enso’s jobs are at coming to Finland. She was studying mills, which are located near raw material supplies, in Germany when she met her future close to the forests and usually far from big cities. The husband, an engineering student attraction of the programme is needed, as it can be diffi­ from Finland. She moved to Tampere cult to hire educated young people to these locations. after finishing her studies and began Stora Enso’s demographic profile doesn’t look good, looking for a job. It took longer especially in Europe, and there is a growing need for than she expected, but she never educated people who can take on leadership roles in gave up. “You have to keep moving the future. forward. If you fall down, you have to The trainee programme alone doesn’t solve these get up,” she says. issues, but it’s a move in the right direction. “This is like Landing a job at Stora Enso was a working with the youth academy of a football team. We dream come true. “I wanted a posi­ are developing our own bench to have strong leaders to tion where I could develop myself,” drive our performance and culture in the future,” Lars she says. “At Stora Enso, they give Häggström, Head of Global People and Organisation, you responsibility and they trust you. explains. And the trainee programme offers It’s also expensive and risky to hire leaders from tools to help grow and develop.” outside the company. Even if the sums aren’t as high as in football – yet, at least – it’s still a cost item that you can make smaller if you foster talent inside the company. In addition, promoting people from within the company gives a clear message that Stora Enso believes in its own people.

Trainees help Stora Enso transform Before joining Stora Enso, the trainees had formed impressions of what the company was like. They saw it as rather old­fashioned. Now they have gained new perspectives. Everyone agrees that Stora Enso’s trans­ formation from a traditional forest industry company into a renewable materials company is already happening and is visible. “I would tell my friends that Stora Enso is a tradi­ tional, large, global company that is really trying to change,” says Frida. “At the mill, transformation isn’t about changing our production to totally something else. Instead, board is being developed so that it can be used in the production of completely new end products,” she says.

42 Rethink Stora Enso 43 Björn Thelin “You think Stora Enso is so established and so old that it’s inspiring to see the company evolving from a Björn Thelin, 26, works traditional forest industry and paper making business as a Business Intelligence into something new,” says Myrene. Analyst in Stora Enso’s It’s the possibilities with wood raw material – new Consumer Board Sales applications, many of which are undoubtedly yet to and Marketing team in be discovered – that make the entire forest industry Stockholm. He is originally an appealing employer also during huge structural from Falun, Sweden, and changes. The possibilities of the sustainable raw grew up close to Stora’s material are endless. Tapping into this potential ensures and later Stora Enso’s that companies like Stora Enso will offer exciting job Kvarnsveden Mill. Björn opportunities for years to come. spent four summers “I didn’t realise that there’s so much going on within working at the Kvarns­ new applications for fibre. There are so many brilliant veden Mill, measuring and exciting ideas being developed. And that’s the kind pulp wood at the wood This is what of company I want to work for: bringing new things to terminal. you asked the market to improve the lives of people,” says Björn. Later he moved to Why should someone Stockholm to study at actually recommend Learning through practical experiences the Stockholm School Stora Enso as an During the year-and-a-half programme, the trainees of Economics, where attractive employer to will meet with Stora Enso’s top leaders, participate in he earned a degree in young people in Europe? leadership training in a top-ranked business school in Accounting and Financial­ Switzerland – International Institute for Management Management. ”At my Development (IMD), go on a 3-month assignment school, everyone is abroad, and do volunteer work in China. In addition, all encouraged to become trainees have high-profile mentors within Stora Enso. either a banker or a The programme is no walk in the park. The trainees consultant, but that didn’t are pushed to the limits. In addition to covering busi­ appeal to me. With my ness fundamentals, the programme has a strong focus background, it was natural on personal development and pushes the trainees to for me to start considering think about things like their leadership styles and how the forest industry from a their behaviour affects other people, team work, and business perspective.” team dynamics. “Stora Enso is my dream The trainees value the opportunity they have been employer: it combines given and intend to take full advantage of it. “I look my own background and forward to developing myself and others, professionally provides an opportunity­ and personally. I expect to be challenged and I want to to work for a global rise to those challenges,” says Björn. company,” he says. Hiring and laying off at the same time The trainees were chosen from a group of 2 700 appli­ cants. Instead of applying to the programme in general, everyone had to apply to specific permanent positions. The six-stage selection process was very rigorous. Throughout the process, the candidates were evaluated against Stora Enso’s five leadership themes: Customer needs, Business acumen, Do what’s right, Inspire and motivate, and People management. “Special emphasis was put on their ability to inspire Björn Thelin believes and motivate, because this was seen as an area that that through new should be strengthened at Stora Enso,” explains products made Outi Sortino, Manager, Leadership Development, who manages the trainee programme at Stora Enso. from wood Stora Knowing the thorough screening that the trainees have Enso will provide gone through, it’s difficult not to be impressed. The selection process was in full swing in spring solutions to help the 2013 when Stora Enso announced plans for a massive, world become more EUR 200 million savings programme. Later on in the sustainable.

44 Rethink Stora Enso 45 summer came the announcement that these savings Frida Pettersson This is what you asked would mean the loss of 2 500 jobs. A few trainee posi­ Frida Pettersson, 25, works Why are you tions were cancelled because of this. But many of the as a Development Engineer proud to work remaining trainee jobs are in the Renewable Packaging at Stora Enso’s Fors Mill in for Stora Enso? and Biomaterials divisions, areas where Stora Enso is Sweden. She has a degree in actually growing. “There was a real need to hire people biotechnology engineering with for these jobs,” says Outi Sortino. a Master’s degree in business­ The trainees are not blind to the hardships faced by development within the the people who are being laid off. For example, Frida’s biotechnology and chemistry­ start in the company wasn’t easy. Fors Mill, which industry from Chalmers Univer­ produces graphical products, general packaging and sity of Technology in Gothen­ cigarette boards, has gone through heavy restructuring burg, Sweden. and about 100 people were affected. “It’s dramatic Frida has always been inter­ to see the impact of reductions. The mill is a major ested in science and tech­ employer in the region,” she says. nology. She didn’t know a lot “I’m joining a company that is also laying off about Stora Enso until she was ­thousands of people. How should I think about that from a university student. “We were a personal viewpoint?” says Björn. “I’m proud to work working on projects related to at Stora Enso because the company is full of competent Stora Enso’s products when and hard-working people. Even though we are going I realised that the company through tough times, I feel a team spirit wherever I go might have career oppor­ and I think it’s incredible,” he continues. tunities for people with my background,” she says. Trainees welcome change Fors is a small area in the town The trainees’ attitude towards change is vital for Stora of Avesta, with about 21 000 Enso’s transformation to succeed. They are expected inhabitants. One of the chal­ to come up with new ideas, and they have been very lenges that Stora Enso faces is active in this respect. Some of their initiatives – such as how to attract talented people creating more dialogue between top management and the rest of the organisation – have led into results within to small and remote locations. Frida Pettersson Frida sees working at a mill as Stora Enso. an opportunity to understand likes working with This is exactly what’s expected of them. Some day the core of the company – the technology and they may be leading Stora Enso. “I expect that one or production of products. “It more of these 22 people will reach the very top of the might sound scary to move to a machines. She company. And I anticipate that they will come up with small town. But you don’t know encourages young initiatives that really change Stora Enso,” says Lars what it’s like until you try. I people to go and Häggström. would encourage young people The trainees also understand the dilemma of change to take that chance!” work at a mill. – it can be unpleasant for the people, but at the same time it’s necessary in order for the company to be successful in the long term. “Change can be difficult if people are resistant to change and they don’t realise that it’s necessary to win. But nothing ever stays the same, so you just have to adapt,” Myrene says. “It’s absolutely necessary for companies to change. But change is also challenging, especially during restructuring,” says Frida. “I have never seen this kind of initiative in a big company. It is really something unique that Stora Enso is so open to new ideas,” she concludes.

Follow Stora Enso’s trainees’ journey in their blog at storaenso.com/careers

46 Rethink Stora Enso 47 Leadership’s stress test

What we need to Leadership’s improve within Stora Enso is employee opportunities to give more feedback to their managers stress test – not only in the annual employee survey. We should have a culture A company’s quality of leadership is never put to the job rather than in programmes. for feedback. If you want to the test more than during difficult times. You might It is important “You can make a difference as a leader by making sure that you are think that leadership is viewed negatively during to learn from develop yourself as a leader, you present and you are listening to what need the feedback from your restructuring and layoffs. But in Stora Enso’s 2013 everyday work people say. It’s important to establish employee survey, leadership was the area that and from our trust. To do this, you have to dare to employees. improved the most. What does leadership mean at employee survey results put yourself out there and even show – Loes van Leeuwen, Vice President, Customer vulnerability,” Jerker Enarsson says. Service and Sales Processes, Stora Enso Printing Stora Enso? and 360 feedback, in order and Living, the Netherlands to cintinuously improve Leading through people TEXT KATJA OLLILA as a leader. Leadership One of the major leadership development initiatives that started in 2013 is Lead is not only about leading Through People, a programme that is targeted to all leaders at Stora Enso. By the end eadership is the strongest driver of performance and of 2013 almost 1 000 managers had participated. culture, and that’s why we need strong leaders,” says people through motivation Good leadership at Stora Enso is defined through five leadership themes: “LLars Häggström, Head of Global People and Organi­ and inspiration; it’s also Customer needs, Business acumen, Do what’s right, Inspire and motivate, and sation. about having a deep and People management. The training addresses leadership from the perspective of these Leadership development at Stora Enso is all about leaders themes. understanding what is expected of them and being ready to thorough understanding of You have to be a role model for your “The leadership frame­ develop their own skills and behaviours to effectively lead others. our business as well as the work we have defined people. You must be interested in them clearly spells out what we The purpose is to ensure that leaders have the means to work market and our customers. through the good and the challenging times. and show support by being present. And expect, but we also want We shouldn’t forget that it sometimes you also have to be their peer. to give every leader the Leaders need to develop themselves is the customer who really opportunity to put their Sometimes they know more than you do and that’s own touch or colour to it,” “In my opinion, great leaders have two qualities that stand out. decides what we need to says Lars Häggström. The first is that they have a genuine interest in people and culture. okay. Being wrong is also okay. Stora Enso’s top The second is that they are able to establish their own leader­ focus on. – Christian Schürmann, Managing Director, Kabel Mill, Stora Enso Printing and management is committed ship culture within the boundaries of our agreed expectations on – Cecilia Carter, Mill Director, Fors Mill, Living, Germany to the leadership training. leaders,” says Jerker Enarsson, who is responsible for leader­ Stora Enso Renewable Packaging, Sweden “They want to be part of ship development in Stora Enso. the training and are excited that it will bring them closer to our people. Even leaders at Stora Enso’s approach to leadership development is systematic. The expec­tations the top of the company need feedback,” Jerker Enarsson says. on leaders have been discussed and agreed to by the Group Leadership Team. Managers are trained in coaching, giving feedback, and team development. “Our Clear improvements ambition is to have strong leaders in all leadership positions and to develop a group of future leaders so that we always have the option to promote from within,” Jerker Taking concrete steps to develop leadership is paying off. The results of Stora Enso’s Enarsson explains. 2013 employee survey show an improvement in how leadership is perceived – even There are development initiatives for different situations and purposes – 360 during the difficult restructuring and layoffs in many parts of the organisation. This degree feedback comes down to basic things. evaluations, the “The greatest driver of improvements in leadership has proved to be employee My biggest learning from the feedback Leadership Index performance reviews that are followed up with regular feedback. We need to continue I got in our employee survey was that from the annual supporting our leaders with development opportunities, such as Lead Through leadership is something you must employee survey, People, so that all our leaders are empowered to perform effectively. In addition, we development must make clear what is expected and then follow up to make sure it is done,” Lars exercise on a daily basis. You have to truly centres, and lead­ Häggström concludes. listen to your team members and support them in ership development achieving their own and the company’s goals. This programmes, such as Lead Through is a constant exercise that requires a lot of time and People and the effort, but it definitely pays off! Pathbuilders – Andreas Birmoser, Vice President, Finance & Business Development, Programme. Still, Stora Enso Biomaterials, Brazil most of the develop­ ment takes place on

48 Rethink Stora Enso 49 Have a safe day!

Have a safe day!

The Chennai Mill in southern India became the company has launched a concerted effort to train a Stora Enso subsidiary in 2011. Since then, the factory’s personnel in its approach to Occupational Health and Safety (OHS), because of clear weaknesses a lot of improvements have been made in that were found. Despite all the efforts, Finnwatch the mill’s working conditions. Also external published a critique of the Chennai Mill in summer 2013, monitoring agencies have closely examined citing deficiencies in working conditions and safety practices. the development. A visit to the mill reveals Meanwhile, conversations with the workers today that the road to instilling Stora Enso’s reveal that the changes have been impossible for them approach to health and safety in a new to ignore. country has had some bumps along the way. “There have been a lot of changes,” Vanitha claims. She is a checker who has worked at the mill for six years. “I wear safety shoes now. I tie my hair.” TEXT PATRICIA ONGPIN STEFFA “Gloves, masks, earplugs – all of those are now PHOTOS STALIN RAMESH being used,” says Raja, a die­cutting machine operator who has worked here for three years. “It makes a lot of t’s just after 7:30 on a Wednesday morning in difference when I handle sheets with gloves. There’s mid­November at Sipcot Industrial Park, about 40 more grip. It felt different at first, but now I’m used to it,” I kilometres south of Chennai. The men and women he says. who work at the Stora Enso Mill start appearing for the Vanitha adds that it also took time to get used to the day’s work. Most arrive on one of the factory’s shuttle shoes, which at first she found heavy and uncomfort­ buses – some from as far as an hour­and­a­half away. able. Among them are V. Vanitha and T. Raja. They cross But are these adjustments too little, too late? To find Aruna Arumugam saw the the driveway and escape the glare and growing heat out more, it is necessary to talk to Aruna Arumugam, need to work closely with of the morning into the cooler air of the factory, a large who heads HR and Administration. Having been at the employees to get them structure of white concrete and red aluminium siding. mill since 2008, she has experienced the changes first engaged in improving safety. Inside, they have a quick breakfast and sip tea as they hand and has seen how the workers have responded to join their teams around the notice boards in their them. respective work areas. Aruna explains that women were previously allowed This day starts like any other at the mill. The super­ to wear their traditional everyday attire of draped sarees visors talk about the work ahead and a member of each and dupattas while working on the factory floor. Instruc­ team reads aloud the day’s safety slogan, written on the tions to tie back their long hair caused some resistance, board in Tamil. In unison, the team members repeat the she recalls. short, catchy phrase and the groups take a moment to Many changes have also taken place in the factory discuss it. itself, as Raja points out. “Each area now has a fire By 8 a.m. all of the workers have put on their neat, extinguisher, there are more emergency exits and short­sleeved shirts with grey or brown trousers, black they’ve installed fire alarms,” he says. safety footwear, and any other protective gear required for their specific duties. Gradually, the air fills with the Creating a cultural shift din of massive machines accompanied by the softer As the day progresses, Aruna paints a clearer picture hum of wall­mounted electric fans. of how far the factory has come from its earlier days. It may seem like business as usual at the factory, but It becomes obvious that the developments go much it hasn’t always been this way. deeper than just new uniforms, gear and equipment. “I’ve been working here for five years, and there was Safety before style no safety department as such when I started. I’m not a Vanitha, Raja and their colleagues at Stora Enso Inpac safety expert but I wanted to safeguard the employees’ Delta India produce boxes for mobile phones and other safety and health,” she says. electronics, garments, footwear, pharmaceuticals, and Aruna enlisted the help of her colleague Prabhu other consumer goods. For the most part, the men Ganesan, who today heads Occupational Health operate the machines for printing, gluing and cutting and Safety (OHS). Together they developed their own while the women are in charge of quality control. trial­and­error method for providing employees with Since Stora Enso acquired the Chennai Mill in 2011, Personal Protective Equipment (PPE). They did research

50 Rethink Stora Enso 51 online and then used their own judgment. But even as she describes some of the early barriers, One company, one set of rules “It was haphazard,” Aruna admits. “Changes began she asserts the view that developing a safety culture “Now employees are more aware. If they are to happen after the Stora Enso joint venture. They requires more than just providing information and suspicious about the safety of something, they brought importance to safety first and foremost.” pressure from above. “You have to take employees by tend to communicate it to the person in charge. Aruna recounts that it was not until Stora Enso the hand and elicit their participation in the journey,” she They’ve started to open up and to be more vocal completed the purchase of Inpac International in July says. about unsafe conditions and actions,” Aruna 2011 that a truly professional approach to health and One means they used to take employees on that describes the results. It is this type of openness safety began in earnest. Prabhu was appointed as journey was the safety toolbox, an initiative by Stora that she continues to foster. safety manager, filling a new OHS function that would Enso to enhance health and safety at all of its facilities. “We are all partners. We tell them ‘You may report to top management. By finding out the methods used by the successful units, feel that this work is for management and not for “Safety as a culture, a way of working and a means the company’s safety managers were able to compile employees. But we are all management when to take care of the employees really started after that,” a set of best practices and tools that had already been it comes to safety. We all work for the same Aruna says. “Still, we had initial hiccups breaking proven effective. Now being implemented worldwide, company. We have the same safety culture and through the mindsets of the employees. If all of a this same toolbox was introduced in India in 2013. we all have to follow the same rules.’” sudden you start talking more about safety, then there’s The hottest part of the day has passed. Now some suspicion, ‘Why is this being talked about now?’” A matter of minds and attitudes This is what it’s after 4:00 in the afternoon and an intense Although safety was given high priority, improve­ you asked “At first, many didn’t know what a safety toolbox was. stillness encroaches as the whirring of machinery ments wouldn’t take place overnight. How do you Translated, a toolbox also means a box of tools, so dies away. The shift has come to an end and take care of perhaps the employees thought we would be handing the factory chalks up another accident­free day. your employees? them another type of safety equipment or PPE,” Aruna Whether consciously or not, each person at the explains. “We had to explain that we have the tools in mill has made another small step towards the our minds and in our attitudes.” goal of zero accidents. Promoting the toolbox has been one of Prabhu’s If one lesson can be gained from this day at main responsibilities. In addition, he has taken on the the mill it is that adapting to a new culture takes job of translating vital OHS documents into Tamil. These time. The workday may be over but the task of Prabhu Ganesan has played an active role in developing safety include the national safety manual, Stora Enso’s safety improving health and safety never ends. The at the Chennai Mill. One of his tasks is to promote the safety policy, Material Safety Data Sheets (MSDS), which words of Suriya Prakash, a forklift operator, toolbox. provide information on handling chemicals, the factory’s drive this point home. safety procedures and accident reports, as well as the “We need to stay safe to stay alive. My family safety slogans. depends on me, just like my colleagues’ families Prabhu is visibly pleased when he shares that he no count on them,” he says. longer has the task of providing the daily slogans. Shortly afterwards, he rushes to join his fellow “Recently the employees have started to write and workers as they cross the driveway towards the share the slogans themselves. Sometimes they’re shuttle buses that will carry them back to their rhymes, sometimes they are statements from the loved ones. safety policy,” he says. “At the morning safety dialogue, someone might share an experience or tell about a real incident. If something had happened on the earlier shift, they talk it over and discuss how to prevent similar inci­ dents from happening again.” But even with the best intentions, misunderstandings can still take place. Aruna and Prabhu recall instances when workers would take the precaution of wearing helmets even when they weren’t needed for their tasks. Nevertheless, an increased dialogue and a continued emphasis on safety, helped along by the implementation of the safety toolbox, have produced results. “We used to have a hard time connecting the safety slogans and safety dialogues to our everyday work. But now that we’ve been talking about safety every day we are able to better relate it to our jobs. We all know the company’s approach to safety and how we should work. All of this has now become systematic,” says Raja.

V. Vanitha explains that it took time to adjust to some changes, such as having to wear the correct Personal Protective Equipment (PPE).

52 Rethink Stora Enso 53 Ideas unlimited

Bioproducts to new markets Antonio Batistini, SVP, Innovation and Biorefinery, Biomaterials

see invention and innovation as two separate things. Anybody can invent and come up with “I new ideas, but innovation means bringing those ideas to a market reality. The changing environment we are living in creates a demand for new types of products, and renewability is only one of the key elements to consider. We must become much more effective at under­ standing the unmet needs of various industries and segments and find solutions that can uniquely address those needs, possibly building on our non­food­ competing raw material. By doing so, we will shift towards a market­driven R&D organisation that is able to capture and protect higher Ideas value at different points in the value chain and away from pushing products to market without a full understanding unlimited of their potential impact. This is important in positioning Stora Enso as a differentiated Successful Research & Development work requires simultaneous solution player. Population growth and actions at many levels. All of these actions, from strategic decision environmental concerns making to test trials, are important steps in turning new ideas into a coupled with volatile oil prices reality. R&D goes beyond the development of new things – it is also and increased pressure on energy security will continue essential in improving the quality of existing products. to drive the growing demand Three people from different parts of Stora Enso share their insights for alternative, sustainable and renewable energy, about recent R&D work within the company. materials and intermediates. My vision is to develop the biorefinery business by TEXT JONAS NORDLUND focusing on current by­products of existing pulping PHOTOS NÚRIA CUGAT, JOHAN BÄVMAN, SAMUEL TRÜMPY processes. By­products like tall oil, turpentine, lignin and bio­methanol from biomass, as well as on new chemical, mechanical and enzymatic processes that can unlock the power and value of sugars and high­ purity cellulose contained in lignocellulosic feedstocks of different sources. This shows that there is a value in products that, until yesterday, were mostly combusted for the production of renewable energy. These bioproducts can be further fractionated, refined and upgraded into specific, new offerings that potentially have very high values in growing markets, “Beneficial R&D work means like pharmaceuticals, or in food applications, cosmetics, co­operation with universities and home and personal care, to name a few. The opportu­ other research institutes. In my nities here are virtually endless! We need to focus on hometown, ETH Zürich (the Swiss development in order to position ourselves as a signifi­ Federal Institute of Technology) is cant player in totally new markets.” one example,” Antonio Batistini states.

54 Rethink Stora Enso 55 Please note: This packaging contains hazelnuts This is what Juan Vila, Mill Manager, Barcelona Mill, Spain you asked hen I first heard about the idea about producing paper or board out of hazelnut Where are shells, I was surprised. Then I became excited: yes, I thought. This is something we your R&D “ W want to experience with our customer, too. innovations? Ferrero, a famous Italian chocolate products company, is one of the world’s biggest users of hazelnuts. They use the nuts as an ingredient in their chocolate, and consequently end up with some 20 tonnes of hazelnut shells yearly. Ferrero had been selling them as fuel until they came up with a unique idea: What if the shells could be ground down and used as one of the fiber components of paper or board? They figured that their customers would appreciate the new twist: The hazelnuts are in the chocolate and the shells are part of the packaging. In my opinion, this makes a lot of sense. When Ferrero contacted us here at the Stora Enso mill in Barcelona, they had other parts of the project solved but were looking for a mill that was willing to try adding the ground shells to the middle layer of the board. We joined in almost immediately after hearing about the idea. First of all, the new ideas were intriguing, but secondly, in this case, there was something I could really specify as “rethinking” with “Stora Enso’s mill in Barcelona our customer. uses recycled paper as raw The trials with hazelnut shell board have been successful. We will keep testing until the board material. Lately, test runs have produced meets all strength and sanitary requirements. also been made with material I think that the best part so far has been the incredible collaboration among all the parties containing hazelnut shells”, Juan involved in the project. The concept is also a seed for other potential projects in the board Vila describes. industry.”

This is what you asked What is the future of Use less, get more carton? Olle Högberg, Senior Specialist in R&D, Nymölla Mill, Sweden ow to tackle the rising costs of paper and board production is a question I often hear. One solution is to make paper and board products that are lighter in weight. This would offer consid­ “ H erable savings potential in terms of materials and energy consumption in production and transportation. One way to produce lighter products is to reduce the amount of fibres needed. But how can the strength of the paper or board be retained if the number of fibres is reduced? The PowerBonds project is seeking answers to this question. In this project, we are taking a deep look at paper production and analysing the raw material of paper and board – cellulose pulp – at the fibre level. By treating wood fibres in new ways mechanically and chemically, stronger fibres with better bonding capabilities can be created. When one fibre is more tightly connected with the others, fewer bonds are needed to maintain the material strength. This means we can make board products strong and durable with lower grammages. I estimate that making the material 15 per cent lighter can reduce the cost by 5–10 per cent, since the fibre counts for up to two thirds of the cost of different paper and board products. When the project is completed, we expect to have a better understanding of what is required to create even stronger and thinner cellulose­based materials. Ultimately, we will have more cost­efficient production and better material efficiency. By making the bonds stronger at the fibre level, we can use less wood to produce more board. Today, we produce the material for a “In addition to new innovations, two­litre milk carton using the same amount of wood that was needed for a one­litre carton 40 years ago. And this it is essential to improve the ways development is continuing.” of producing our existing product range”, Olle Högberg underlines.

56 Rethink Stora Enso 57 From fired to hired

From fired Research shows that losing your job is the third most stressful situation a person to hired can face. Only death and divorce are worse. So, there I sat. At a café, with my closest colleagues, drinking coffee in a stupefied silence. The sun shone, just as it had the day before. The street, This is what the buildings, the hustle and bustle of daily life were just as they always were. you asked But I wasn’t. I had just been laid off. Can you face the people you TEXT EERIKA OLKINUORA Research shows that losing your job is the third most with the layoff and to assist them in finding new employ­ have laid off? INTERVIEW IN SWEDEN JONAS NORDLUND stressful situation a person can face. Only death and ment. Outplacement services are typically bought from divorce are worse. a consultancy firm. The services may include practical ILLUSTRATION ANTON YARKIN advice, psychological support, career guidance and job So, what to do? search skills. uring 2013–2014, about 2 500 Stora Enso The consultant may help in very practical matters employees worldwide will endure the same At Stora Enso, these issues have been taken seriously. The company offers support to all employees, leaving or such as resume writing and job interview preparation. D experience I did with a previous employment – In some cases, the consultancy firm offers the use of remaining, both during and after the change. getting laid off. These layoffs are part of Stora Enso’s an office and online tools. Outplacement may be done 200-million-euro savings programme. There have been “In Finland, all Stora Enso managers will have proper training on how to manage the redundancy situation individually and/or in groups. several other redundancy situations in the company in Taina Kaakinen has had the first meeting with an previous years as well. The demand for paper continues according to Stora Enso’s values and guidelines. And, most importantly: the employees who are leaving will have outplacement consultant. “It lasted one hour and was to decrease in Europe, and the company has had to one-on-one; the consultant and I went through my CV respond to the weak market conditions. In this respect, access to individual coaching and support in finding new employment, starting a new business or even retraining. and the job applications I had sent earlier. I received Stora Enso’s journey – transforming itself from a Euro­ many good tips and guidance in how to apply for a pean pulp and paper company into a value creating All in all, we want to help and encourage these people to find a new direction in life. Various types of services job,” she explains. At the time of writing this article, she renewable products company focusing on growth hadn’t yet found a new job. markets –is not easy for the individuals working in the will be offered, depending on the different situations,” company. says Jukka Sarhimaa, Director HR Services Finland. ­Measures to support the finding of new employment …to outcome Anguish in the forefront opportunities are also in place in Sweden and Germany. In Adi Celhasic has experience with the outplacement every country, Stora Enso aims to do more than just fulfil services as well. Adi worked at Stora Enso’s Hylte Mill As soon as I had signed the layoff papers, the situ­ its legal obligations in redundancy situations. in Sweden as a paper machine operator for nearly five ation felt very personal and was affecting my life years, but was laid off when the company decided to in painful ways. It was no consolation that many Responsible reductions close the machine. others in the company were suffering the same Fair treatment in a redundancy situation is not only “The outplacement services were really there for fate. Didn’t I do my job well enough? How will I us when we needed answers to our questions. They pay the mortgage? How do I find another job? ethical, it is also the most important criterion for the whole process to succeed, be it from the company’s or helped us write our CVs and they came up with possible My mind was a jumble of agonising questions jobs for us. You can get a lot of help in finding new work, and thoughts. Depending on the person, it is very the employees’ point of view. At Stora Enso, a group of rethinkers in the Path­ but it is ultimately up to you to press ‘Send’ to get your common in this situation for the next phase to vary application out there,” he says. from depression to downright anger or to desperately builders Programme studied the dilemma of responsible reductions and came up with many suggestions on how Celhasic feels that outplacement services were a seeking an answer to the question “why”. The people great help during the transition, especially in helping to laid off from Stora Enso are no exception. to handle the situation. According to them, fair treatment means for example that each employee must be treated set goals for finding new work. Taina Kaakinen worked for Stora Enso Information “No one should feel ashamed to accept help; Analyst Services for 12 years before being recently with empathy and respect. This is important also for the employees who are staying with the company because instead, everyone should take advantage of the exper­ laid off due to the services being decentralised. “I felt tise that is on offer,” he encourages. the layoff was unfair to me and a disadvantage to the they need to know that their colleagues are treated well. This, in turn, is vital for the whole company, as It took Adi Celhasic four months to find a new job. He company. I feel that the decision was made without is now a project manager within the Swedish correc­ properly thinking about the consequences and without the company needs the trust and empowerment of the remaining employees in order to succeed in the future. tional system, Kriminalvården, and is enjoying his new sufficient research into the matter,” she says. work. “The worst thing about being laid off is the feeling Offering outplacement services is one good way to of unworthiness. The sense that my knowledge is not try to ensure that the process has a decent outcome for appreciated at the company management level that everyone. made the decision to close down our unit. My internal The writer of this article was laid off due to large-scale customers appreciate my work and have given me Through outplacement… co-determination negotiations from her previous place many thanks and praises.” Outplacement services are paid for by the downsizing of employment. Six months after signing the layoff company in an effort to help leaving employees deal papers she was employed fix-term by Stora Enso.

58 Rethink Stora Enso 59 A passion for responsible business

hallenges have always motivated Ambreen Waheed. Her new work as Global Responsibility C Director at Stora Enso’s joint venture company in Pakistan is just another example of the ambition this woman seems to carry within. After 15 years of heading the CSR (Corporate Social Responsibility) think­thank she founded herself, Ambreen decided to jump to yet another road less travelled and joined Bulleh Shah Packaging Limited, a Pakistani joint venture company of Stora Enso and Packaging Limited, in March 2013. “It was a major move, but I was fascinated by the possibility of creating perhaps the first integrated responsibility culture here in Pakistan,” Ambreen says. “Here I work as part of a seasoned interdisciplinary team within long­established systems. The first half­ year confirms that working at Bulleh Shah is a challenge I can take on with confidence,” she says with a warm smile.

Thinking without prejudices Stora Enso has a 35 per cent share in the Bulleh Shah joint venture that produces packaging products to local and international customers in the growing Pakistani market. Ambreen Waheed’s work is about building a holistic global responsibility approach for the company. This means, among other things, involvement with numerous stakeholders, including customers and NGOs, building a safety culture, skills training, and participatory planning. A passion for There’s also work related to implementing Stora Enso’s Code of Conduct amongst internal and external stakeholders and engaging top management around sustainability issues. responsible “We need to think outside the box to live in a respon­ sible way on every level,” Ambreen says. “I am confident that we can develop good solutions; after all, we have a good team at Bulleh Shah. I also enjoy working with my colleagues from Stora Enso. We share a similar passion business for work and for creating new things.” Better discretion But let’s go back to Pakistan in the 1980s when TEXT TIINA TUOMAINEN PHOTOS MARYAM ALTAF Ambreen Waheed was a computer science student at the University of Engineering & Technology in Lahore. Pakistan, with some 180 million inhabitants, offers “I decided to go into computer science at a time interesting development opportunities in the renewable when people in Pakistan didn’t even know what materials sector. However, as Ambreen Waheed, the computers were. But I saw a challenge ahead and wanted to go for it.” new Global Responsibility Director at Stora Enso’s joint After completing her degree, Waheed joined an R&D venture company Bulleh Shah, knows, a vigorously group at DEC, one of the world’s leading computer growing market also holds potential risks of doing companies at the time, developing Pakistan’s first computerised identity card system. business. “I am here to build an integrated responsibility “My aim was to help develop something useful culture,” she says. for people. I was driven by the challenge of human­ computer interaction.” While innovating a stakeholder­led process for developing an online social impact analysis system, she became convinced that stakeholder feedback is crucial for business process effectiveness. That led her to ask, “How can we use CSR as a business tool?”

60 Rethink Stora Enso 61 “The best solution is cooperation that benefits all parties.”

“Each part of the organisation and every element should live responsibly,” says Ambreen Waheed. “People have great ideas – from the grassroots level right to the very top. You This is what you asked just need to work with them.” What does sustainability really mean to you?

In pursuit of an answer, Ambreen enrolled in Strong Pakistani values the Judge Business School at Cambridge Univer­ In addition to her position at Bulleh Shah, this woman sity in the UK. While in the UK she worked closely effectively finds the time to continue contributing to a with Dr. Simon Zadek’s team that was developing number of CSR organisations in the Asia Pacific area, the AA1000 stakeholder engagement framework mentoring young entrepreneurs as well as lecturing at built on Ambreen’s earlier work with the Canadian universities in the U.S., Europe and Asia. International Development Agency (CIDA) on socio­ Close family relationships also play an essential role environmental impact assessment with multiple in Ambreen’s life. “I have tried to inculcate in my son the stakeholders. same in­built value system and inquiry­based learning “This also led to my pioneering research on ethical that my parents did in me. Basically, this pushes me to do practices along supply chains in Pakistan’s sporting challenging things, but always in the most ethical ways.” goods football industry.” In addition to the teachings from her own parents, “I realised that understanding a company’s oper­ Ambreen’s world view and values have been shaped ational environment is essential. Only then can one through various cultural encounters. Her travels in about understand why certain actions take place. Under­ 70 countries have taught her how to appreciate new standing is a key to change,” she underlines. cultures – and her own: To illustrate this, Ambreen gives an example from “For me, it has become important to wear traditional Bulleh Shah’s value chain: “We use wheat straw as clothing so that people can see I am from Pakistan. I our raw material for packaging board. In collecting our hope that I also carry with me the hospitality, warmth raw material, we deal with numerous farmers growing and openness that is characteristic of Pakistanis,” says wheat. There are instances where there’s a clear risk Ambreen. that children may be working on farms.” All the travelling and challenges have also taught her Typically, a reaction in such a situation might be to a good deal about what sustainability means in reality. consider abandoning the farmer, without understanding “For me, sustainability means acting in a way that why a child is on the farm. Another typical reaction on minimises the negative impact of our business decisions seeing children at work would be for a company to on the social or economic aspects of society at large.” support the opening of a school. This can be done, she believes, by evaluating the “These reactions do not necessarily address the real past, learning from it and envisioning the future based reason such a situation exists. In all actions local social on this learning. “It is about assessing and mitigating and cultural context needs to be taken into account. For the impact of what we do. We have to keep things instance, parents withdraw children from school seeing sustainable for others and for us.” that the poor education doesn’t improve their child’s Developing and planning improvements have been employment opportunities. This doesn’t mean children a cornerstone of Ambreen Waheed’s professional life. should work and not go to school. It means the best “I believe that responsible business models – from solution cannot be determined unless the context is the ground up to the top management – will be a key also understood,” Ambreen says. success factor in the future. I am confident that we For her, the best solution is cooperation that benefits can use CSR as an effective tool in making profitable, all parties. And it also means promoting education. sustainable business.” “This is a basis for the work we are doing.”

62 Rethink Stora Enso 63 Anybody there? Tracking design

PHENOMENON

REWIND: A YEAR AFTER RETHINK 2012 Anybody there? storaenso.com Half of the world’s population lives in urban areas, according to the UN, and Finland is no exception. The Helsinki metropolitan area and a few other cities have BULLS PRESS attracted an increasing number of people. The urban­ isation phenomenon has a big impact on rural areas – not only in terms of demographic density, but also by reducing the availability of services. The Uimaharju community in North Karelia is one such area. It has 2 500 residents and is located 50 kilometres from the city of Joensuu. The Uimaharju Tracking community’s location posed a challenge when the new Health Care Act with its requirements regarding emergency response time was introduced in Finland in 2011. The distance to the Joensuu hospital meant that design Uimaharju could not guarantee a quick response in case of emergency situations. he packaging for the new Polar Loop activity This problem critically affecting residents of Uima­ tracker wristband developed by Polar has a fun harju was solved together with Stora Enso. The two and unique look. The idea behind the design was Uimaharju mills, Uimaharju Sawmill and the Enocell Pulp T to create high in­store visibility for the product. The Mill, have a joint fire brigade that is able to act quickly Polar Loop packaging was designed in Finland at the in case of a fire or other emergency. The members of Lahti Designstudio introduced in Rethink 2012. the mill brigade volunteered to take an active role in the A team made up of Polar’s and Stora Enso Design­ solution to the problem affecting their community. In studio’s experts, led by packaging designer Outi autumn 2012, the brigade members received addi­ Honkavaara, took the concept of a triangular form and tional training in order to qualify as first responders and fine­tuned it until the outcome was a product package to provide assistance in emergency situations and in that was both feasible and cost­effective. treating various injuries. The example demonstrates what Designstudio is POLAR ELECTRO OY At all times, there are three trained firemen on call. all about: bringing together the customer’s and Stora Most of the firemen have lived in the region for years Enso’s experts in well­equipped facilities where the and have important knowledge of the surrounding area: design process can begin immediately. The first proto­ they usually reach the patient within 10 to 15 minutes. type of a packaging design may be developed even In certain situations, such as the need to perform CPR, during the first meeting. one minute can make the difference between life and The studio merges the customer’s needs, creativity death. and design with expertise in packaging structure and production. “Too often we forget that innovations start with design. A well­designed product is often also innovative,” says Design Manager Ilkka Harju, who is in charge of the Designstudio concept. He describes the mentality behind it as “Design thinking”. The number of Designstudios increased from five to eleven during 2013. At year­end there were studios in Finland, Sweden, Hungary, Poland, the Baltic countries, Russia, and China. Around 80 designers work in the studios, and more than a hundred packaging concepts have been designed in the workshops with dozens of customers – with success. The concepts have been widely praised and awarded at the highly respected Scanstar competition for the second year in a row. Polar is also happy with the partnership and the package design. “The finished Polar Loop packaging is the project’s best reward. There has been plenty of interest in the new shape and look of the packaging. There are still many ideas left for possible projects in the future,” says Anna-Marja Suvilaakso, Design Leader for Polar.

64 Rethink Stora Enso 65 Responsibly invested

“Investors have realised that socially responsible investing brings a broad perspective to risk assessment.”

AN EXPERT’S PERSPECTIVE Responsible operations are beneficial to investors and companies alike. For instance, responsibility reporting helps This type of investing makes it possible to align investment targets with one’s in mapping out business risks personal values – an approach that appeals to almost everyone. For individual inves­ and classifying the impacts the tors, the most common forms of responsible investments are definitely equity and Responsibly company’s operations have on fixed­income investments as well as the funds that invest in these. the surrounding communities. How is responsibility assessed? Responsibility indices are There are several approaches to responsible investing, from negative screening to one of many useful tools for invested positive screening and even thematic investing. companies: The traditional approach to responsible investing is negative screening, which Externally, inclusion in any means excluding sectors or companies that do not align with one’s values due to, for high­profile index or ranking instance, the type of industry or its ways of operating. enhances the company’s Positive screening refers to an investment approach that favours companies that reputation and sends a positive are committed to responsible business practices or which produce responsible prod­ message not only to investors, ucts or services. but to all stakeholders. Choosing best­in­class companies means that the most successful companies on the basis of financial, social or environmental criteria are chosen. Internally, being included in the Microfinance, community investment, and social entrepreneurship funds all repre­ ratings raises the company’s These days investors are looking for more than just fi nancial gain sent responsible forms of investment. awareness of sustainability from their money. A growing number of investors are concerned An easy approach for private investors – and one that helps to diversify their issues and fosters sustain­ able thinking. The company’s about the environment, climate and society of tomorrow. That investments – is to choose index­based investments, which typically follow a ‘best­ in­class’ approach. The Dow Jones Sustainability Index and FTSE4Good are two results also reveal the areas concern has given rise to a group of responsible investors who examples of responsible investment indices. where it has performed well are demanding greater transparency and other accountability from Another form of responsible investing that is well suited to private investors is and the areas it needs to focus companies in their business reporting. thematic funds related to a specific issue, for example, climate change. on in order to improve. In 2013 Stora Enso was Getting started included in the following TEXT RIIKKA SIEVÄNEN PHOTOS MARKKU PULKKINEN, STORA ENSO When it comes to responsible investing, it can take time for personal values to take responsibility indices: UN shape. Becoming familiar with the company’s reporting, reading the company’s Global Compact Stock Index, esponsible investors consider both the risks and opportunities inherent in environmental, social and corpo­ corporate social responsibility and investor relations webpages, and staying informed FTSE4Good, World’s Most rate governance issues. They invest in the future by building an investment portfolio made up of companies on a wide range of news topics helps to determine whether or not a particular invest­ Ethical Companies, and Nordic R that take the environment and social well­being into account in their business activities. ment target appeals to one’s personal values. Climate Index (CDP). Responsible investing is about good business practices that promote transparency, risk management, and Responsible investing is a wonderful thing because it gives people a chance to return on investment expectations. make a difference through their choices. After all, from small streams, mighty rivers flow. What’s behind the shift? Roughly 15 per cent, or nearly USD 35 billion, of the world’s investment assets are invested responsibly. In 2006, Riikka Sievänen is an expert and researcher in responsible that figure was “just” USD 4 billion. investing. She is co-author of the first Finnish-language Why the substantial increase? One of contributing factors is the shift that has taken place in investors’ values: book on responsible investing, together with Anna Hyrske, the inevitability of climate change and the corporate scandals and fraud that have come to light have led to Magdalena Lönnroth and Antti Savilaakso. increasing calls for more transparent business activities and better reporting. Investors have realised that respon­ sible investing brings a broad perspective to risk assessment. Responsible investing is defined as investments that take into account environmental, social and corporate governance (ESG) issues. Along with ESG issues, the transparency and sustainability of the company’s business approach are also considered.

66 Rethink Stora Enso 67 Building cities of the future

In ten years there will be eight billion people in the world. Sustainability and safety will become increasingly important when building urban structures for the Building growing population. Cross-Laminated Timber, CLT, offers an alternative to traditional construction materials.

TEXT NIINA STRENG cities PHOTOS STORA ENSO, PROMOLEGNO, MATTI ILRAMO ARCHITECTS of the future

The library going up in Melbourne, Australia, is constructed from pre-fabricated CLT elements.

68 Rethink Stora Enso 69 ocated on the Yarra River, the wooden building and urban regeneration,” says Andrew Nieland, Head Constructing and demolishing buildings also gener­ with intelligent and interesting architectural of Timber Solutions for Lend Lease. ates about half of all waste globally. CLT can reduce The first major wooden­building This is what you asked design turns heads in Melbourne, Australia. It is “Particularly in our Apartments business, these the amount of waste at every step of the manufacture project that Stora Enso and SRV L will collaborate on consists of the centrepiece of Victoria Harbour’s new civic core growth trends will see a number of inner urban sites and delivery cycle. For example, the sawdust and How does four blocks of flats ranging from and will serve as a next­generation library and commu­ under fifteen storeys requiring delivery in a sustainable shavings generated during the manufacturing process the forest 5 to 7 storeys in the Pukinmäki industry help nity centre. It is also the first public building made of and efficient manner.” are used as biomass for heating and power generation. area of Helsinki. Cross­Laminated Timber (CLT) in Australia. CLT is competing head on with precast concrete and CLT contains no toxic chemicals, so at the end of a solve And this is just the start. Linked by the library project, steel frame buildings. “There is a drive in the property building’s service life it can be recycled or reused and climate Stora Enso and Lend Lease, one of the world’s leading industry for safer, more sustainable and more efficient ultimately used as biomass. change? providers of fully integrated property and infrastructure forms of construction,” Nieland continues. Furthermore, CLT weighs just one­fifth of concrete solutions, are further tightening their co­operation and Lend Lease spent over three years undertaking so that means lighter foundation requirements and planning many new projects to be constructed. detailed due diligence on CLT from both a technical and reduced transportation needs. “A lighter weight struc­ CLT is an example of today’s engineered timber commercial perspective, and now they are convinced of ture can reduce piling and transfer slab loads by a products. “CLT offers builders an excellent alternative its potential. third,” Nieland explains. from walls, to floors and ceilings of urban, multi­storey “CLT, created with European technology, is a light­ The panels are available in a range of sizes and construction. The CLT­based system significantly weight, strong, solid­wood alternative to conventional customisations, further optimising material usage. improves the efficiency of the entire construction materials. Beyond sustainability, its pre­fabricated On top of the environmental benefits, using structural process,” explains Matti Mikkola, Head of Building nature drives safety and efficiency improvements on our CLT boards and elements can cut construction time by Solutions at Stora Enso Building and Living. projects,” says Nieland. 20–30 per cent compared to competing solutions. Stora Enso Building and Living’s CLT has been successfully used in a number of constructions, Carbon negative Safety comes first including eight­ and nine­storey residential buildings The global population is estimated to reach eight billion For Lend Lease, the third main advantage of CLT – and in the UK and Italy, a five­storey elderly care home in in 2025, and 70 per cent of the people will live in cities. by far the most important – is safety. Belgium and a 100­metre­high wind power plant in Rapid urbanisation increases the need for sustainable As Lend Lease’s number one priority, it has an Germany. Partnering with Lend Lease, Stora Enso aims housing. uncompromising commitment to operate incident­ and to speed up CLT’s entry to new markets. Globally, the construction sector uses a major part injury­free. Safety is a value shared with Stora Enso. “This close co­operation streamlines the supply of the world’s natural resources, which are mainly Indeed, construction sites can be hazardous Wood City, here we come! chain and helps to generate product and design innova­ non­renewable. Timber, the only renewable structural with the heavy loads being lifted and a lot of traffic In Finland, wood has long been used as a building material for houses, but tions benefitting both parties,” says Mikkola. material for large­scale applications, also has the poten­ and people working in a small area. CLT significantly a growing trend is now seeing wood used in the construction of multi­ tial to be a carbon­negative building material. Timber improves safety by taking high­risk site activities into a storey buildings. The development of new industrial solutions has inspired New kind of urban housing buildings have a significantly reduced carbon footprint, controlled factory environment. SRV, one of Finland’s largest construction companies, to seize the oppor­ “CLT will assist in addressing two key growth trends as timber stores a great amount of the carbon absorbed “Specific safety benefits include a reduced risk of tunities offered by wood construction. that we have identified in our strategy – sustainability when the trees were growing. falling materials, manual handling injuries, trips and “Wood has been used in realising special sites for some time, and until falls, and injuries from heavy tools used, for example, now, wooden blocks of flats have all been somewhat unique experimental in welding and grinding are eliminated. In addition, sites. There is currently a shift towards using wood in regular blocks of the vastly reduced truck activity improves safety and flats and office buildings,” says SRV’s Deputy CEO, Timo Nieminen. lessens the impact on the surrounding community,” As for the residents, Nieminen says their requirements are the same, Via Cenni Nieland lists. A unique social housing regardless of the construction material used. “The apartment must meet their needs and be of high quality and in a project in Milan, Italy, Not just a substitute constitutes four resi­ good location. The surroundings and available services also influence the CLT isn’t just a substitute for conventional materials. dential CLT buildings living experience,” he sums up. With CLT, all design is completed upfront. each with nine storeys In 2014 Stora Enso and SRV will launch the “This allows complete control of a project – from and 124 apartments. The construction of Wood City, an urban quarter concept to completion ­­ and drives the entire construc­ aim of the mixed use with built of wood, in Helsinki’s Jätkäsaari district. tion process to be fast, safe, simple and seamless. different types of spaces Wood City will represent the best in wood Installation sequencing, crane calculations, logistics is to create a platform architecture, while at the same time proving and delivery are all pre­planned. That means minimal for true community. that wood is suitable for apartment, office and waste and fewer decisions or errors to be made onsite,” Construction work was hotel construction. Nieland says. finalised in spring 2013. “We learned an enormous amount about executing a modern method of construction when working with CLT – not only about the timber material, but about the pre­fabrication process, logistics, installation and market acceptance. All of these areas have been assessed and reviewed for improvements for future projects.” CLT “Based on the lessons we’ve learned, we view Cross-Laminated Timber, or CLT, is the CLT as being cost competitive against conventional latest evolution in sustainable building construction and having significant potential for further efficiencies,” says Nieland. materials.

70 Rethink Stora Enso 71 Sensational paper What a waste!

REWIND: A YEAR AFTER RETHINK 2012 storaenso.com What a waste!

Sensational TERENDY PAULINA paper

Have you ever wanted to buy paper that The publishers were given both printed and is reliable and peaceful? Or sparkling and unprinted paper samples to examine. The idea was to collect all the sensory impressions the papers evoked in luxurious? But the only properties you could them. The results were then mapped against technical fi nd were high whiteness, good runnability or specifications and analysed at a research institute. excellent print gloss? While the printed samples were generally perceived to be relatively similar to one another, there were signifi­ cant differences between some of the samples in terms TEXT HANNE KARRINAHO PHOTO STORA ENSO of mental impressions they evoked. The experiences from the co­creation project were ublishers know how they want their magazines promising: customers are keen to take part in this kind to look, feel, sound and even smell. And paper of research, and it is as an easy and reliable method of Recycled raw P producers know their products right down to gaining relevant information from the market. the tiniest technical specification. But they speak two material keeps Stora Enso Poland’s new different languages. How to close the gap? Towards the language of readers paper machine Speaking about the emotions behind a paper choice for light­weight From senses to sensibility might sound far­fetched at first, but let’s think about it containerboard in We use all of our senses when making a final purchase again. motion. and consumption decision. When publishers are “The magazine begs to be picked up off the kiosk choosing the kind of paper to use, their first choice is shelf. Its content invites us to flip through the pages. ne man’s trash is another man’s treasure. This A campaign directed at schools and offices in Ostrołęka often based on the technical specifications provided The sound of the turning pages affirms that it is an is especially true in the case of recyclable raw resulted in a total of 10 250 tonnes of collected waste by the paper seller, but their final decision tends to be authentic, natural product. Fascinating images entice us O materials. Rethink 2012 revealed that Poland paper. The winner among the schools was Ostrołęka based more on softer or even sensory values. This has to take a closer look. The smell tells us that it is a brand had the worst recycling rate in Europe to date. In 2012, High School No. 5, which collected 3.5 tonnes of paper. been recognised in paper sales and marketing, but the new issue that no one else has thumbed through,” says the nation recycled only 38 per cent of its paper and The issue of recycling in Poland is now being scientific evidence linking sensory properties to tech­ Stora Enso’s Laura Ryhänen, who wrote her master’s board waste, compared to the impressive 70 per cent tackled at the national level. In July 2013, a law was nical terminology has been missing: how to translate thesis on the subject. recycling rate of no less than 13 European countries. passed making it compulsory for municipalities to the impression of “high brightness” or “good opacity” The feel of the product reveals essential information Ostrołęka Mill’s new PM5 paper machine uses sign a waste­collection agreement with a waste­ into sensory terms? And what exactly is the technical about the quality in question. The sensations associated 100% recycled fibre and is Stora Enso’s crown jewel in collection company. Prior to the law, households and specification of “peaceful”? with a fashion magazine or a TV magazine need to be Poland. The raw material for the machine comes from companies were independently responsible for their Things are about to change. Stora Enso set up a validated by reading or browsing through the maga­ Europe. PM5 started up at the beginning of 2013. It has own waste. The aim is for the law to reach as many co­creation project involving ten publishing customers zine. And these sensations are fundamentally different an annual capacity of 455 000 tonnes of containerboard Polish citizens as possible and to improve the nation’s around Europe to get more specific information linking from each other. Silk feels different from cotton, silver and can reach a production speed of one­and­a­half recycling rate. technical specifications with sensory values and to looks different from grey and a fashion magazine has a kilometres per minute, or 90 kilometres per hour. “We still have to wait a while before we can see what identify other mental impressions evoked by magazine different feel than a weekly celebrity magazine. Recycling is necessary in order to meet the demand impact the law has had on recycling, but I am confident papers. Sensory properties are a challenging subject, A common language linking paper producer to for raw material – and to have a positive environmental that we will see a positive development,” says Michal as it is still difficult to pinpoint specific factors that publishers and magazine readers is starting to emerge! impact. In 2013, Stora Enso continued its efforts to Gawrych, Sales Director at Stora Enso’s Ostrołęka Mill. contribute to certain experiences. spark a shift in Poland’s attitude towards recycling.

72 Rethink Stora Enso 73 Humanity in 2030

COLUMN

pyramid, and many people will raise their eyes into outer space. The colonisation of Mars will begin during the 2020s, according to different plans by many govern­ Humanity ments and even some private enterprises. Exponential technologies and immortality Change is not moving at a steady pace; in fact, it is accelerating very quickly. The next 20 years will bring in 2030: more transformations than seen in the past 200 years. In the coming decades, technologies will radically change humanity, in general, and human beings, in particular. Many experts now talk about the four sciences and technologies of the future: NBIC (nano- bio-info-cogno). We can think of nano and bio as the hardware of life and info and cogno as the software of life. In the next two decades, we will be able to replicate and improve the complexity of both the hardware and the software of human beings. The complexity of our hardware is embodied in the human genome and its 3 gigabits of data, while the complexity of our software is implied by the human brain and its 1017 operations per second. Based on some technological trends, we might achieve physical immortality by copying, reproducing, augmenting and enhancing our current hardware and software. Some scientists say that aging is a disease, but a curable one. Bacteria, germinal cells, stem cells and cancer cells, for example, do not go through an The rise of the East and Mars colonisation aging process. Once we understand why this happens, The Chinese word for crisis has two characters (危机). that knowledge may be used to stop the aging in The first character represents danger and the second complex organisms called humans. can be interpreted as opportunity, change of time, Thanks to research like the Human Brain Project in moment or chance. Even though the meaning of these Europe and the BRAIN Initiative in the USA, we may characters depends on the context and nearby charac­ also be able to reengineer our brains. As computer-to- ters, the understanding of crisis as danger plus oppor- brain interfaces keep improving, some scientists believe tunity can help us think about the challenges faced by that we will eventually be able to upload our brains into humanity in 2030. machines. In the coming years, China will have the planet’s Humanity is fast approaching what some people call largest economy, dethroning the USA to number two. “technological singularity”: the moment when artificial India will catch up quickly, becoming the third largest intelligence reaches human intelligence levels and then economy, and its population will continue increasing quickly overtakes it. Perhaps then, some humans will after surpassing China’s in 2025. The re-emergence of have become transhumans and posthumans, changing Asia will create a dramatic shift in power and geopolitics forever life on Earth and the universe. from what has been called the West to the East. Fortunately, during the next two decades, the world economy will keep expanding and human conditions will improve throughout the planet. Even Africa, the historic cradle of civilisation, will experience its own ­re-­emergence on the world stage. During the 2020s, most African countries will experience the rapid ­development of China and India. José (荷西) Luis Cordeiro, Poverty will be substantially reduced and the MBA, PhD is a Venezuelan environment will be significantly improved, thanks to a Director of The Millennium growing global conscience and continuous advances in It should be noted that certain statements herein which are not historical facts, including, without limitation those regarding expectations for market Project, and Faculty at technology. It is estimated that technology will also help growth and developments; expectations for growth and profitability; and statements preceded by “believes”, “expects”, “anticipates”, “foresees”, or Singularity University at to mitigate climate change problems. For example, the similar expressions, are forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Since NASA, California. Read these statements are based on current plans, estimates and projections, they involve risks and uncertainties, which may cause actual results to rapid growth in renewable energy technologies could more about the author at materially differ from those expressed in such forward-looking statements. Such factors include, but are not limited to: (1) operating factors such as mean that renewables will account for more than half of cordeiro.org continued success of manufacturing activities and the achievement of efficiencies therein, continued success of product development, acceptance all energy sources by 2030. of new products or services by the Group’s targeted customers, success of the existing and future collaboration arrangements, changes in business The world in 2030 will be radically different from the SINGULARITY UNIVERSITY strategy or development plans or targets, changes in the degree of protection created by the Group’s patents and other intellectual property rights, world today. Rapid economic growth and convergence the availability of capital on acceptable terms; (2) industry conditions, such as strength of product demand, intensity of competition, prevailing and will have lifted the conditions of the bottom of the future global market prices for the Group’s products and the pricing pressures thereto, price fluctuations in raw materials, financial condition of the customers and the competitors of the Group, the potential introduction of competing products and technologies by competitors; and (3) general economic conditions, such as rates of economic growth in the Group’s principal geographic markets or fluctuations in exchange and interest rates.

74 Rethink Rethink. ERveethryinthik.ng.

Sometimes you just have to stop and rethink. Think about We are, indeed, rethinking everything. Our mindset. Our where you are. And think about where you are heading. processes. Our products. We know that all big changes E verythiare maden by groupsg of people. But it’s equally true We have done just that. And we found that we needed to that changes are inspired and kept alive by individuals. go from being one of the biggest companies within the People who master the art of turning challenges into Sbioommeattiemrieasls y, opua pjusert, hpackaave tog isntgo,p a nandd w rooethdin pkr.o Tdhuicntks about oWpep aorretu, ninitdieees.d, rethinking everything. Our mindset. Our winhdeurset ryyo tuo abreei.n Agn tdhe t hinmoks at bsuoccut ewhssefurel aynodu ianrneo hveaatidvein g. processes. Our products. We know that all big changes company in the world of renewable materials. Why? Saroe, mwhadate a bbyo gurto yuopus? oPf eprehoapplse .y oBuu ts iht’osu eldq ureatllhiy ntrku we here BecauseWe have douron eplanet just t hisa tcalling. And wfore faou dramaticnd that w newe nee ded to ythaout acrhea hnegaedsi nagre. Pinsperhiapreds aynodu skehoptu ladli vret hbiny kin ydoivuidr uidaelsa. of approachgo from b etoin ghow on ewe of usethe bitsig resources,gest comp aandnie sbecause within th ite wPeoorkp.l eP ewhrhoap msa ysoteur a trhee t ahret poef rtsuornin nwge c ahrael lleonogkeinsg in fotor ? In isbi oforcingmateri ausls ,to p a ndper ,new packa solutionsging, an thatd w oobene td pro dtheuc ts wophpicohr tcaunsiteie ws.e’d like to say that you are the opportunity. modernindustry customer.to being th Fore m ionsstt asnuccce,e jsussftu tlhin ankd whinnaotv iat twivoeu ld A nd we’ll promise to treat you like one. bcoe mlikpea inf yt omin theorr owwo’srl ds koyf srcrenaepwearsb lwe emrea tbeuriialtl so.f Wrehnye?w able So, what about you? Perhaps you should rethink where Becausewood ele mouren planetts inst eisa dcalling of con forcr eat edramatic.* new you are heading. Perhaps you should rethink your idea of approach to how we use its resources, and because it w ork. Perhaps you are the person we are looking for? In is forcing us to nd new solutions that bene t the wFihnidc ho ucat mseo wree a’dt sliktoer atoe nssaoy. cthatom /ycaour eaerers the opportunity. modern customer. For instance, just think what it would A*Nnowd pwoses’ilbll ep ursoinmg isouer C tLoT t(crreoasst- lyamouin alitekde t iomnber.) technology. be like if tomorrow’s skyscrapers were built of renewable wood elements instead of concrete.*

Find out more at storaenso.com/careers *Now possible using our CLT (cross-laminated timber) technology. Scan and go directly to our career site

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