Arbor Day Spilands Mark Lathrop

Producing from Wood, Respecting the Forest

Stora Enso

12. Responsible Consumption and Production 15. Life on Land Flourish Prize Finalist - For Business as an Agent of World Benefit - Weatherhead School of Management

Overview

Stora Enso aims to produce elements from land exploitation resources without threatening the environment and according to acceptable standard of working conditions to its employees. It also wants to foster the preservation and the restoration of the lands.

Authors

Farrah Ouattara

Farrah Ouattara

Tamsin Brecknell-Starling

Tamsin Brecknell-Starling

Clément BOUHIER

Clément BOUHIER

Rasmus Hietanen

Rasmus Hietanen

School

Jönköping International Business School

Jönköping International Business School

Professor

Guenola Nonet

Guenola Nonet

Innovation

The company tries to follow goals 12 and 15 of the UN Global Goals. The first one aims to set up production models involving an efficient way of using resources and energy, and jobs of an acceptable standard, both environment-friendly and combined with the building of a sustainable infrastructure. Besides this, organizations must tend toward “doing more and better with less” and to foster sensitization about ways to consume sustainably towards all their stakeholders. (UN, 2018a)

In the case of Stora Enso, this is done through all the activity of the organization. The main elements that encourage the accomplishment of these goals are the exclusivity given to renewable materials’ use and its recycling cycle and the priority put on the satisfaction of the stakeholders (especially for the employees). Then, the company also sets the display of an annual report available to anyone, meetings with the investors and consumers, and advice and news about sustainable development available online (Stora Enso, 2018).

With the second goal, the UN aims to make organizations fight desertification, bringing sustainable management to the sourcing from forests and stop territories’ deterioration and the effects on biodiversity. This goal also targets the restoration of damaged lands and soil and environment-friendly and efficient use of the resources taken off (especially in particular places protected by international agreements.) (UN, 2018b)

Thereby, Stora Enso brings its activity into line with this goal by providing products coming from its own forest managed under sustainability principles. Stora Enso has also participated in a project for the replanting of a rainforest in Brazil. (Stora Enso, n.d). Referring to efficient use of resources, the company claims to use 98% of its residual waste. Besides, as the use of water is in the center of its activity, the company gets involved in international and local actions related to it. On a larger scale, Stora Enso bases its sourcing and forest management on its long-term forestry planning. This one includes biodiversity analysis, identification of vital ecosystems, their conservation and restoration with other ecological elements. (Stora Enso, 2018).

Producing from Wood, Respecting the Forest

Inspiration

"[...] for me it is first important that the company I work for does something relevant for the future. I’ve been working with materials for a long time but also working with sustainable materials, which is the future instead of the past." (Kazemahvazi, 2018)

Overall impact

The decisions that Stora Enso makes impacts their stakeholders in many different ways, which will be discussed further. Customers, consumers and local communities are affected because the needs of these need to be met. Stora Enso complies with the needs of customers, consumers and local communities by doing good for the planet, responding to their demand in a changing environment. For example, by transforming fossil-based materials to renewable sources. The media is affected because if Stora Enso are doing positive things and cooperating with corporate social responsibility, positive comments will be made in the media, which can promote a stronger brand image. Stora Enso has over 20,000 suppliers worldwide, which are impacted by the sustainability requirements set by the company to improve their performance and meet with new demands (Storaenso.com, 2018).

Stora Enso ensures itself that all its stakeholders are involved in practicing business according to this concept and the one of business ethics. To enlighten their wishes and their interest, the company tries to give to their voice the biggest importance possible. Plus, all this is studied through exchanges, polls or grievance channels made available. Consequently, stakeholders are place in the center of the organization functioning and are all considered as essential. As an example of success in reaching stakeholders satisfaction requirements, according to the company’s study about its employees’ impressions toward their leaders, its rate has increased through the years. (Storaenso.com, 2018)

Business benefit

There are many benefits which will be discussed. Stora Enso thinks deeply about the needs of their customers and the environment, focusing on trying to reduce the harm by innovating and developing new products and services based on wood and other renewable materials. As global warming is an ongoing issue, the replacement of fossil fuels can benefit the environment.

According to the company, its sustainability principle makes it able to easily attract socially responsible investors and incorporation of environmental, social and governance. Furthermore, the company claims that it is now able to answer to an increasing global demand for sustainable processed raw material.

Social and environmental benefit

As sourced by the Stora Enso website, the company has a social and environmental focus on neighbouring communities, which includes:

  • Environmental and Social Impact Assessments (ESIA’s) for all new projects that could potentially have a negative impact on local communities - this is to evaluate and ensure local communities are protected.
  • Due diligence assessments as part of Stora Enso’s acquisition and investment processes, including environmental, social, and business practice issues.
  • Environmental management systems, for example, ISO 14001 for production units.
  • Sustainable forest management certification of Stora Enso’s own forestry operations and suppliers.
  • Restructuring processes planned in cooperation with local authorities (Storaenso.com, 2018).

In the records of the forth quarter of 2017, it can be seen that the company has reduced its CO2 emission of 37% through the past 11 years. Furthermore, the Greenhouse gas emission are expected to decrease by 31% per ton of of pulp, paper, and board produced in 12 years. Stora Enso has also introduced science-based targets to its strategy to make more efficient greenhouse gas emissions cuts. Then, the companies uses its materials by 98% avoiding waste and sustainably managing its forest using long-term forestry planning. Stora Enso also supports social projects such as the defense of the landless movement and indigenious people's rights in Brazil or child labour prevention in Pakistan.

Interview

Sohrab Kazemahvazi, Director

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Stora Enso

Stora Enso

Helsinki, FI

Business Website: http://www.storaenso.com

Year Founded: 1998

Number of Employees: 5001 to 10000

Stora Enso, a paper and pulp manufacturer headquartered in Finland, aims to do good for people and the planet. Issues such as sustainability, social responsibility and eco-friendliness are core values for the company. Fittingly, the company’s slogan is ‘the renewable materials company.’

Stora Enso is a market leader in its line of business, its annual sales rose to EUR 10 billion in 2017. The company employs over 26 000 people in over 30 countries. Stora Enso’s operations can be divided into four sections — the company offers renewable solutions in packaging, biomaterials, wooden constructions and paper globally.