Stora Enso
Annual Report 2024
Contents
Our year 2024
Stora Enso in brief
4
CEO message
5
Key figures
7
Events in 2024
8
This is Stora Enso
Our business model
10
Our divisions
11
Stora Enso’s products in everyday life
12
Stora Enso worldwide
13
Value from our forest
14
Our strategy
Megatrends
17
Business environment and value creation
18
Strategic focus areas
19
Strategic progress
20
Our people
People and culture
22
Diversity, equity, and inclusion
23
Community engagement
24
Governance
Corporate Governance Stora Enso in 2024
26
Shareholders’ Meeting
26
Board of Directors
27
Board Committees
31
Management of the Company
32
Internal control and risk management related
to financial reporting
35
Members of the Board of Directors
36
Members of the Group Leadership Team
38
Appendix 1
40
Shareholders
Information for shareholders
42
Stora Enso in the capital markets
43
Taxpayer report
50
Report of the Board of Directors
Stora Enso introduction
54
Year 2024
55
Risk management
63
Sustainability Statement
69
Shares and governance
127
Outlook
129
Proposal for the distribution of dividend
130
Events after the reporting period
130
Alternative performance measures
131
Financial Statements
Consolidated financial statements
136
Notes to the Consolidated financial statements
141
Parent company financial statements
196
Notes to the parent company
financial statements
198
Signatures for the financial statements
211
Auditor’s report and assurance report
211
Appendices
Sustainability data by unit
219
Capacities by production site in 2025
221
Remuneration Report 2024 is available at
storaenso.com/annualreport
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Unaudited 2
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Unaudited 3
Our year 2024
Stora Enso in brief
4
CEO message
5
Key targets
7
Events in 2024
8
We are the renewable
materials company
Our purpose
• Do good for people and the planet
• Replace non-renewable materials with
renewable products
Our values
• Lead
• Do what’s right
We create better choices for society by
accelerating the transition to a circular
bioeconomy. Our aim is to contribute
positively to nature, and ensure the most
effective use of fiber-based renewable
materials.
Employees
19,000
Heritage
1288
1862
1872
1998
2005
2014
2016
2018
2019
2021
2023
2024
First documents
of the Swedish
mining company
Stora
Kopparbergs
Bergslag.
This business
progressed to
become Stora
Kopparbergs
Bergslag
encompassing
mining, iron, and
wood activities.
The Enso branch of
the company
emerge with the
establishment of a
steam-powered
sawmill in Kotka,
Finland, by Hans
Gutzeit.
Stora Enso was
formed through
the merger of the
Finnish Enso Oyj
and the Swedish
STORA.
Start-up of the
Veracel pulp mill
in Brazil (50%
owned joint
operation).
Start-up of the
Montes del Plata
pulp mill
in Uruguay. (50%
owned joint
venture)
Start-up of the
Beihai mill in China.
The converted
paper machine at
the Varkaus mill in
Finland starts
production of
containerboard.
Acquisition of
forest assets in
Sweden led to a
total of 1.4 million
hectares in
holdings.
Stora Enso issues
its first green
bonds.
The converted
paper machine
at the Oulu mill in
Finland starts
production of
packaging board.
Acquisition of De
Jong Packaging
Group in the
Netherlands.
Paper business is
discontinued.
Stora Enso
initiated the sale
of approximately
12% of its 1.4 million
hectares of forest
assets in Sweden.
Stora Enso
in brief
The forest is at the heart of Stora Enso and we
believe that everything made from fossil-
based materials today can be made from a
tree tomorrow. As a leading provider of
renewable packaging, biomaterials, and
wooden construction, and one of the largest
private forest owners globally, we actively
contribute to the circular bioeconomy
focusing on climate change, circularity, and
biodiversity. Our low-carbon and recyclable
fiber-based products support our customers
in choosing renewable options. Stora Enso’s
shares are publicly traded on the Helsinki
(STEAV, STERV) and Stockholm (STE A, STE R)
stock exchanges, as well as in the USA as
ADRs on OTC Markets (OTCQX) and ordinary
shares (SEOAY, SEOFF, SEOJF).
Image: Stora Enso’s newly opened headquarter building in Helsinki, the largest
mass timber building in Finland. The building is owned by mutual pension
insurance company Varma.
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Unaudited 4
Sales and adjusted EBIT margin
EUR million
%
Sales, EUR million
Adjusted EBIT, %
2022
2023
2024
0
2,000
4,000
6,000
8,000
10,000
12,000
0
3
6
9
12
15
18
Our divisions
Packaging Materials
Packaging Solutions
Biomaterials
Wood Products
Forest
Renewable materials
Wood, our raw material, is renewable,
recyclable, and fossil-free
Circularity
Our renewable products contribute
to a circular bioeconomy
Q&A with Hans Sohlström,
President and CEO
We spoke with Hans Sohlström to gain his perspective on Stora Enso’s performance in 2024.
We also discussed key priorities and the strategic direction for the business.
Q: Take us through 2024 for Stora Enso and
the industry. How would you sum it up?
Thanks to several efficiency improvement and cost-
saving actions across the entire Company, we were
able to deliver a significantly higher adjusted EBIT and
reduce working capital compared to 2023. However,
we were still far from our long-term financial targets,
and our systematic efforts to improve profitability and
reduce debt will continue.
Over the course of the year, the market gradually
recovered compared to the full year of 2023, although
consumer confidence and spending has yet to fully
rebound. Market uncertainties, along with fluctuations
in demand and pricing, persisted throughout 2024.
Our Forest division delivered record-high results,
primarily driven by increased wood prices. However,
high wood costs have continued to pressure margins
across the Group. We faced several challenges in the
market, including weak demand for consumer board,
overcapacity in corrugated board, a volatile pulp
market, a persistently weak construction sector, and
continued tightness in wood markets. To mitigate
these challenges, our Group-wide cost-saving
measures will continue to deliver results.
Q: What were your key focus areas for improvement
in 2024, and what was the biggest challenge?
Close relationships and engagements with both our
customers and employees are crucial, and I am
pleased that we continue to attain high scores in
customer satisfaction and employee engagement,
reflecting the strengths of Stora Enso.
In my first year, we identified two key areas to enhance
shareholder value: improving operational
performance to boost competitiveness and achieving
commercial excellence in sales and sourcing. The
positive impact of this approach is evident in the 75%
increase of our adjusted EBIT.
“Stora Enso’s profit improvement,
working capital reduction, and
value creation actions – focusing
on cost reduction through
improved sourcing, operational,
and commercial efficiencies –
made good progress across
all divisions.”
The biggest challenge has been the continued
volatility and market weakness, but we focus on
controlling what we can. We will do more with less and
become more efficient. My main mission is to drive
results and build a performance culture, where I see
significant potential for value creation. This positive
performance culture is based on the 4As: ambition,
agility, analytical approach, and accountability. This is
not just a project but a new culture and way of
working. The underlying effectiveness of our
organisation and our competitiveness must improve,
and my key performance indicator as a CEO is total
shareholder return, to maximise value for all
our shareholders.
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Unaudited 5
Q: How did Stora Enso progress towards achieving
its long-term strategic objectives in 2024?
Stora Enso’s profit improvement, working capital
reduction, and value creation actions—focusing on
cost reduction through improved sourcing,
operational, and commercial efficiencies—made good
progress across all divisions. Our systematic working
capital reduction actions during the last 1.5 years
resulted in a significant reduction of operating working
capital of about EUR 700 million reducing the relation
to net sales from above 14% to 7%
Initiated in February 2024, Stora Enso’s profit
improvement programme, focused on fixed cost
savings, progressed successfully. The programme
aimed to reduce fixed costs and enhance annualised
adjusted EBIT by EUR 120 million, and includes a
reduction of approximately 1,000 employees, with no
closures of production sites. These reductions were
proportional to division sizes and addressed
persistently weak and uncertain market conditions.
The full impact in fixed cost savings is starting
from 2025.
Q: What strategic actions were taken during
the year to make Stora Enso more competitive?
The ongoing consumer board investment of
EUR 1 billion at the Oulu site in Finland progressed
according to plan. Production ramp-up will begin in
the first half of 2025, with full capacity estimated to
be reached by 2027.
During the second half of the year, we decided to stop
the divestment process and instead retain our Beihai
consumer packaging board production site and
forestry business. We recognise that the value of using
these assets internally exceeds the achievable
proceeds from a sale. This decision supports our
strategic aim to augment our leadership in the
sustainable fiber-based packaging market. By
optimising the product mix, the Beihai site will further
elevate our position as a leading global consumer
board supplier, particularly in the Asia-Pacific region.
We are committed to financial prudence, with no
significant capital expenditure expected in the mid-
term as we pursue these strategic enhancements.
As part of our ongoing efforts to improve financial
stability, we announced the decision to prepare for
the sale of approximately 12% of our forest assets in
Sweden, covering 1.4 million hectares with a book value
of EUR 6.3 billion. This divestment seeks to strengthen
our balance sheet and crystallise the economic value
of our forest holdings. While prioritising financial
stability through strategic decisions such as the
divestment of forest assets in Sweden, we remain
equally dedicated to upholding the highest
environmental standards across all areas
of operation.
We also announced the acquisition of Junnikkala Oy,
a Finnish sawmill company, for a total enterprise value
of up to EUR 137 million, depending on its performance
in the next years. This strategic move will bolster our
wood supply for Stora Enso’s packaging board site in
Oulu, Finland, while shoring up our wood products
business. Located near our Oulu site, Junnikkala
operates three sawmills, creating significant synergies,
including a stable supply of raw materials.
During the year, Stora Enso partnered with Altris,
a Swedish developer of sodium-ion batteries, to
incorporate renewable lignin in producing sustainable
anode materials for these batteries. This initiative
seeks to lower carbon emissions and promote
a circular economy in battery manufacturing.
We also entered a collaboration with Södra, Sweden’s
largest forest owner association, to secure a stable
supply of kraft lignin. This partnership will support
Stora Enso’s production of sustainable lignin-based
materials with high added value, advancing the
Company’s commitment to renewable products and
reducing its environmental impact.
Q: Please take us through Stora Enso’s
sustainability progress during the year.
I am pleased to announce significant progress in our
sustainability efforts. As part of our long-term
commitment to sustainability, we have set ambitious
science-based targets aligned with the 1.5-degree
scenario. By the end of 2024, we achieved a 53%
reduction in our Scope 1 and 2 emissions from 2019.
This surpasses our target of a 50% reduction by 2030
and underscores our commitment to proactive
climate action. We remain dedicated to maintaining
and further reducing our emissions in line with our
business strategy.
“Stora Enso holds leading market
positions in renewable packaging,
biomaterials, and sustainable
construction segments.”
Scope 1 and 2 emissions, originating directly from our
operations and the energy we consume, are areas
where we can implement emission reductions
through investments and fuel switching. Our success
in these categories demonstrates our ability to
effectively mitigate our direct impact on climate
through operational efficiency and the
implementation of new technologies. We are also
committed to achieving a 50% reduction in our Scope
3 emissions by 2030, which include indirect emissions
from activities such as purchased goods and the
processing of sold products. Essentially, these
emissions represent the Scope 1 and 2 emissions of
other companies within our value chain.
As we continue working toward our Scope 3 target,
we are actively engaging and partnering with our
suppliers and customers. It is essential that the full
value chain commits to climate action together. By
doing so, we are not only achieving crucial emission
reductions for Stora Enso but also paving the way for
businesses of the future.
Q: What are your expectations and
focus areas for 2025 and beyond?
All the businesses in which we operate are in growing
segments, driven by strong sustainability trends.
Stora Enso holds leading market positions in
renewable packaging, biomaterials, and sustainable
construction segments, all of which are positioned for
long-term growth. These areas align with evolving
sustainability trends and regulatory developments,
favouring our renewable and innovative product
offerings. Increased consumer demand and brand
owners’ focus on sustainability drive our commitment
to offering more sustainable products, strengthening
the market position of our circular solutions and
making them a preferred choice in the industry.
We are leveraging these advantages to increase our
market presence and continue our progress. This
strategic alignment positions us to seize current
opportunities while building resilience for future
advancement. Looking ahead, we are prioritising
capital allocation and asset strategy in expanding
market segments to amplify competitiveness and
drive profitable growth across the Group.
Promoting a positive performance culture has been
essential in creating an environment that supports
customer focus, operational efficiency, innovation,
and excellence. Our annual employee engagement
survey, conducted in November 2024, had both a high
response rate and an overall strong engagement rate,
exceeding the industry benchmark. I am proud of how
our people and the organisation have performed
during challenging times and as a team, we will
continue the good work going forward.
As we pursue our long-term financial targets, we are
well-equipped to embrace new opportunities, tackle
future challenges, and deliver value to all our
stakeholders. I want to thank our owners, employees,
customers and business partners who have worked
with us throughout the year. Thank you for your
continued collaboration, trust, and support.
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Unaudited 6
Earnings per share (basic)
EUR -0.17
last 12 months
Climate change
Our Scope 1 & 2
CO2e emissions were
53%
lower than in the base year 2019
Biodiversity
99%
of the land we own or
manage was covered by
forest certification schemes
Circularity
94%
of our products were
technically recyclable
Proposed dividend
EUR 0.25
per share
The Board of Directors proposes that
the dividend be paid in two instalments, during
the second and fourth quarter of 2025.
Key figures
Key targets
2024
2023
2022
Target
Performance
against target
Financials
Sales growth
-4 %
-20 %
17 %
>5% per annum
Adjusted ROCE¹ excl. Forest
3.6 %
1.0 %
20.4 %
>13%
Net debt to adjusted EBITDA¹
3.0
3.2
0.7
<2.0
Net debt to equity
37 %
29 %
15 %
<60%
Dividend per share (EUR)
2
0.25
0.2
0.6
See below
3
Non-financials
Reduction of absolute CO2e emissions
(Scope 1 and 2) from 2019 base year
4
-53 %
-43 %
-28 %
-50% by 2030
Reduction of absolute CO2e emissions
(Scope 3) from 2019 base year
4
-39 %
-35 %
-24 %
-50% by 2030
Forest certification coverage
99 %
99 %
99 %
96 %
Circularity
4
94 %
93 %
94 %
100% recyclable
products by 2030
1 Last 12 months
2 For 2024, dividend proposal, The Board of Directors proposes that the dividend be paid in two instalments, during the second and fourth
quarter of 2025.
3 To distribute 50% of EPS excluding fair valuation over the cycle.
4 Comparative figures are restated due to structural changes or additional data after the previous annual report.
Achieved
On track
Not achieved
Adjusted ROCE excl. Forest*, %
Adjusted ROCE excl. Forest, %
Target >13%
2022
2023
2024
0
5
10
15
20
25
*Last 12 months
Net debt to adjusted EBITDA
Net debt to adjusted EBITDA
Target <2.0
2022
2023
2024
0.0
1.0
2.0
3.0
4.0
*Last 12 months
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Unaudited 7
Events in 2024
Stora Enso discontinues the divestment process of its
Beihai production site in China
Stora Enso decided to discontinue the divestment process for its Beihai
packaging board production site and forestry business. This decision
supports Stora Enso’s strategic aim to strengthen its leadership in the
fiber-based packaging market.
Read more on our website
Stora Enso prepares to sell parts of its forest assets
in Sweden
Stora Enso initiated the sale of approximately 12% of its 1.4 million
hectares of forest assets in Sweden. This sell aims to reduce debt and
strengthen Stora Enso’s balance sheet, highlighting the financial value
of its forest holdings.
Read more on our website
Stora Enso strengthens wood supply chain in Oulu
by sawmill acquisition
Stora Enso entered into an agreement to acquire 100% of the Finnish
sawmill company Junnikkala Oy. The acquisition aims to secure a cost-
efficient wood supply to Stora Enso’s packaging board site in Oulu,
Finland.
Read more on our website
Profit improvement programme and value creation
actions to improve long-term profitability
Stora Enso launched a profit improvement programme aimed at
reducing gross fixed costs to boost annualised adjusted EBIT by EUR 120
million, The programme covers a reduction of approximately 1,000
employees but does not involve any closures of production sites. Stora
Enso also implemented value creation actions across the group,
focused on sourcing, operational, and commercial efficiencies.
Read more on our website
Stora Enso partners with IUCN on positive impacts
on biodiversity
Stora Enso has developed a science-based framework using
technology and data to forecast and enhance biodiversity impacts.
The company's partnership with the International Union for
Conservation of Nature (IUCN) will offer expert insights to further
refine and validate this framework.
Read more on our website
Sustainability statement in accordance with
the Corporate Sustainability Reporting Directive
Stora Enso's Sustainability statement provides a comprehensive
overview of the risks and opportunities arising from social,
environmental, and governance issues, and on the impact of our
activities on people and the environment.
Read more in the Report of the Board of Directors
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Unaudited 8
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Unaudited 9
This is Stora Enso
Our business model
10
Our divisions
11
Stora Enso’s products in everyday life
12
Stora Enso worldwide
13
Value from our forest
14
Our business model
How we optimise
stakeholder value in
a circular bioeconomy
Together with our partners, we work
to replace or reduce the use of
fossil-based materials
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Unaudited 10
Forest
Our value creation has its foundation in the
forest, where wood represents the largest part of
our raw material. The forest is a value accretive
real asset and functions as a long-term fiber
supply for our products. Sustainable forest
management ensures that new generations of
trees replace those that are harvested.
Suppliers
With over 20,000
contractors, sub-
contractors and
suppliers, we prioritise
responsible raw material
sourcing and foster
long-term relationships
with key partners.
Operations
We constantly improve resource
efficiency and make use of material
streams that would otherwise end up
as waste. Operating in a circular
economy, many of our products and
materials can be reused and recycled
to reduce environmental impact
and maximise value.
Customers
Our investments in energy, raw material
efficiency, and product development
enable customers to achieve their climate
and circularity goals. By partnering with
customers and other stakeholders, we
create sustainable, valuable products that
enhance our customer relationships
and market share.
Consumers
Stora Enso supports its customers in
meeting the growing consumer demand
for low-carbon, circular products and,
when possible, replacing fossil-based
products with renewable ones. Consumers
world-wide use our products daily, such as
milk cartons, boxes for products bought
online, and wooden housing.
Growth areas
We are positioned in the following
growing segments:
Renewable packaging – is driven by
high demand for circular packaging.
We hold leading global market
positions in consumer board
segments with high barriers-to-entry.
Sustainable building solutions – is
driven by a growing wooden buildings
market. We are a leading global
supplier of building solutions, offering
alternatives to fossil-intense
construction materials.
Biomaterials innovation – our
agenda targets new applications
in fiber products, lignin and
biochemicals, focusing on novel
products that replace
fossil-based materials.
Our divisions
Share of external sales
46%
11%
14%
15%
13%
1%
Packaging Materials
Packaging Solutions
Biomaterials
Wood Products
Forest
Other
Share of capital expenditure
68%
5%
17%
5%
2% 4%
Packaging Materials
Packaging Solutions
Biomaterials
Wood Products
Forest
Other
Share of personnel
37%
22%
10%
19%
8%
4%
Packaging Materials
Packaging Solutions
Biomaterials
Wood Products
Forest
Other
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Unaudited 11
Products and applications
Main customer groups
Key figures
Market position
Packaging Materials
The Packaging Materials division is a global leader and expert partner in
circular packaging providing premium packaging board, made from virgin
and recycled fiber. Stora Enso helps customers reduce the use of fossil-
based materials by offering renewable and recyclable products for their
food, beverage, and transport packaging based on a wide selection
of base board and barrier coatings.
• Liquid packaging board
• Foodservice board
• Fresh cartonboard
• Containerboard
• Book paper
• Newsprint, magazine paper
Packaging converters, food
producers, brand owners,
retailers, and book and
newspaper producers
Sales:
EUR 4,502 million
Adjusted EBIT:
EUR 172 million
Adjusted ROOC*:
4.9%
#1
globally in liquid
packaging board
#1
in Europe in fresh
cartonboard
Packaging Solutions
The Packaging Solutions division is a packaging converter that produces
a wide-range of fiber-based packaging products for leading brands across
multiple market areas, including retail, e-commerce, and industrial
applications. Additionally, the division provides design, packaging
automation and sustainability services to help customers optimise
material use, improve logistics, and reduce CO2 emissions.
• Boxes and trays for
packaging
• Packaging design and
automation
• Converting of carton and
corrugated board
Brand owners in fresh
produce, horticulture,
food and beverage,
industrial applications,
e-commerce,
electronics, retail and
transport industries
Sales:
EUR 987 million
Adjusted EBIT:
EUR -15 million
Adjusted ROOC*:
-1.6%
#3
in corrugated boxes in
the Nordic countries
#2
in corrugated boxes in
the Benelux countries
Biomaterials
The Biomaterials division’s foundation is built on pulp, with the aim of
becoming customers’ first choice in selected grades. To unlock the full
potential of a tree the division also leverages all fractions to create
innovative biobased solutions, that replace fossil-based and other non-
renewable materials.
• Pulp
• Hard carbon battery
material
• Lignin
• Biobased binders
• Wood foams
• Biobased chemicals
• Formed fiber
• Tall oil and turpentine
Packaging, paper,
tissue, specialty paper,
hygiene products,
construction, and
furniture industries and
chemical producers
Sales:
EUR 1,587 million
Adjusted EBIT:
EUR 231 million
Adjusted ROOC*:
9.3%
#1
fluff producer
in Europe
Wood Products
The Wood Products division is Europe’s largest sawn timber producer and
a leading provider of sustainable wood-based solutions for the global
building sector. The division provides the building sector with renewable
and low-carbon wood-based solutions that help decarbonise the built
environment. Additionally, the division offers windows and door
components, and co-products such as pellets made from wood residuals.
• Material for mass timber
construction: CLT, LVL
• Services and digital tools
• Building concepts
• Window and door
components
• Sawn and planed wood
• Pellets
• Sawdust
Construction companies,
wholesalers and retailers
Sales:
EUR 1,522 million
Adjusted EBIT:
EUR -16 million
Adjusted ROOC*:
-2.7%
#1
globally in construction
cross-laminated timber
#2
in Europe in classic
sawn wood
Forest
The Forest division is responsible for wood sourcing for Stora Enso’s Nordic
and Baltic operations, as well as for B2B customers. It manages the Group’s
forest assets in Sweden and a 41% share in Tornator, whose forests are
primarily located in Finland. The division’s operations are based on
sustainable forest management encompassing planning, logistics,
harvesting, and forest regeneration.
• Wood procurement
• Management of the
Group’s own forests
• Biodiversity management
• Forest management and
other services for private
forest owners
Stora Enso’s Nordic and
Baltic production sites, B2B
customers, private
forest owners
Sales:
EUR 2,827 million
Adjusted EBIT:
EUR 309 million
Adjusted ROCE*:
5.2%
*Last 12 months
One of the largest
private forest owners
in the world
Stora Enso’s
products in
everyday life
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Unaudited 12
Hard carbon for batteries
Hard carbon from lignin is a biobased material for
batteries, offering a sustainable alternative to mined
or fossil-based materials and ideal for use in electric
vehicles, energy storage systems, and more.
E-commerce packaging
Recyclable solutions for e-
commerce packaging, ensuring
protection and cushioning while
enabling easy returns.
Paper cups
Cupstock designed for hot
and cold beverage cups
with sealable barriers and
high resistance.
Wood foams
Recyclable and biodegradable
cellulose-based packaging
foam that, replaces fossil-
based foam in cushioning.
Unbleached fluff pulp
Used for hygiene applications such
as baby care and feminine care
products. 30% lower carbon footprint
compared to traditional fluff pulp.
Fresh food trays
Easy-peeling packaging board used for
products such as cold cuts, fish, and
cheese. Consists of 90% wood fiber,
keeping plastic usage to a minimum.
Carton packaging for liquid food
Wood fiber-based packaging materials
used for packaging juices, milk, yogurt,
soups and other liquid-based products
are suitable for recycling.
Wood-based building solutions
Mass timber elements for offices, schools,
and multi-storey buildings cut carbon
emissions by up to 60%, storing carbon
throughout their lifetime.
Building concepts
Linking architectural guidelines with
building concepts for low-carbon,
cost-efficient offices, schools,
residential and industrial buildings.
Ready-meal trays and cups
Lightweight and 100% food
safe in virgin fiber, suitable for
frozen and chilled ready
meals or take-away.
Paperboard tube with
a fiber-based closure
Used for cosmetics and
personal care applications.
All components are
designed for recycling.
Prefabricated building solutions
Prefabricated building solutions
includes everything needed to create
a modern, sustainable wood structure.
Corrugated board for industrial, bulk
and heavy-duty transport packaging
A cost and weight-efficient packaging
that is easy to assemble, handle,
and recycle.
Renewable leak-
tight flower
packaging box
Allows customers
to move from plastic
buckets to renewable
cardboard boxes
optimised for
transport.
Folded boxes for dry food
Food safe, renewable materials to
replace plastic in dry foods such
as cereals, pasta or chocolate.
Transport box for fruit
High quality and food
safe white top kraftliner
packaging board
made from fresh fibers.
Strong and light
material suited for
fresh produce
transport and retail.
Stora Enso worldwide
Stora Enso operates globally and focuses on
using renewable materials to create value in
packaging, biomaterials, and wooden
construction. Our customers include global
companies such as packaging
manufacturers, brand owners, retailers,
industrial component manufacturers, and
construction companies.
Stora Enso manages its own and leased forest land
covering a total area of 2.1 million hectares worldwide.
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Europe, 69%
Asia Pacific, 13%
North America, 4%
South America, 1%
Other, 13%
Sales by destination
Finland, 27%
Sweden, 18%
China, 12%
Poland, 10%
Czech Republic, 6%
Austria, 5%
Other Europe, 16%
Brazil and Uruguay, 4%
Other countries, 1%
Employees by country¹
1 Including 50% of the employees at Veracel in
Brazil and Montes del Plata in Uruguay.
Europe
We are a leading European
producer of packaging board,
pulp, and wood-based products,
with most of our sales and
production located across
eleven countries in Europe.
South America
We obtain high-quality pulp from
eucalyptus plantations in South America. In
Brazil, we have a 50/50 joint venture with
Suzano, called Veracel. In Uruguay, we have
a 50/50 joint venture with Arauco, Montes del
Plata. Our share of the eucalyptus pulp
produced is partly used in our production
sites and partly sold as market pulp,
primarily to Europe and Asia.
Asia
Our consumer board site in Guangxi, China,
mainly serves the Asian markets with virgin
fiber-based board. Our operations also
include eucalyptus plantations that supply
our production facilities in the region. In
addition, we supply renewable packaging
products to our customers in Asia through
our global operations from production sites
in Europe and South America.
We primarily source our wood, our main
raw material, from our own Northern
European forests located near our
production facilities. We also source wood
from forest associates and private forest
owners, ensuring strategic sourcing
flexibility. In Central Europe, we source
wood and recycled fiber for our production
facilities through our own organisation.
Tornator
(41% ownership)
Finland, Estonia, and Romania
319,000 ha
of forest land
Swedish forests
(12% of holdings
announced for sale)
1,410,000 ha
of forest land
Veracel
(50% ownership)
Brazil
117,000 ha
of forest land
Montes del Plata
(50% ownership)
Uruguay
154,000 ha
of forest land
Guangxi
Southern China
62,000 ha
of forest land
Value from our forest assets
Our forests are the foundation of our business. They are a scarce resource and
a critical asset for the global renewable materials market, the balance and protection
of biodiversity, and the well-being of our communities.
Stora Enso, one of the world’s largest private forest
owners, holds forest assets valued at EUR 8.9 billion
as of the end of 2024, spanning 2.06 million hectares
globally. The company meets 36% of its wood raw
material needs from its own sources and long-term
agreements, mitigating wood market volatility while
enhancing long-term yields and financial flexibility.
In addition to sourcing wood from its own forests and
tree plantations, Stora Enso purchased wood from
approximately 21,000 private forest owners during the
year. In 2024, approximately 83% of Stora Enso’s wood
came from forests in Europe, most of which are
privately owned.
Our long-term target is to increase
the total value of our forest assets
While increasing the value of our forest assets, we
are actively addressing climate change through
adaptation and mitigation. Trees are a renewable
resource that grow back when forests are managed
sustainably. We ensure forest regeneration after
harvesting, as growing trees absorb carbon dioxide
and wood-based products store carbon, replacing
fossil fuel-based products.
We support the cascading use of wood, which means
that all parts of harvested trees, forestry residuals,
and industrial side streams are used in the most
efficient way. Our biological assets, primarily standing
trees, serve as raw materials for pulp and mechanical
wood production, while wood residues are used as
biofuels, mainly in our own operations.
Group’s forest assets value
EUR billion
6.1
6.6
2.6
2.3
Biological assets
Forest land
31 Dec 2023
31 Dec 2024
0
2
4
6
8
10
Including leased land and Stora Enso’s share of Tornator.
Market transaction-based
forest prices in Sweden
Index
SEK/m
3 fo
Southern Sweden
Central Sweden
Northern Sweden
Sweden
1995
2000
2005
2010
2015
2020
2024
0
200
400
600
800
1,000
Source: Ludvig & Co report, based on nominal prices.
Stora Enso’s forest assets are located in Central and Northern Sweden.
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Benefits of owning forest assets
Raw material efficiency and
optimisation of timber
value for various end uses.
Support Stora Enso’s
growth plans by securing a
36%
self-sufficiency
of wood supply.
Stable income from wood
sales with increasing long-
term demand for
renewable materials.
Yield improvement
initiatives to increase
harvesting sustainably in
our own forests through
tree breeding, fertilisation,
and advanced forest
management practices.
Returns from land development
include increased wind power
capacity, land swaps,
compensations for protected
areas, and revenue from land
sales and hunting rights.
Opportunity to develop
forest management
practices that respond to
changing market and
climate conditions while
enhancing biodiversity.
Stora Enso forest areas in Sweden
and Tornator forest areas in Finland
Board, pulp and paper production sites
Sawmills
Annual harvesting
10.5
million m³ forest cubic metres
Across all our forests, wood harvesting is planned to
align with the unique characteristics of each site.
Estimated annual
forest growth
13.9
million m³ forest cubic metres
Sustainable forest management
promotes healthy, thriving forests.
Annual CO2 sequestration
4.3
million tonnes CO2
CO2 sequestered in our own or leased productive
forest lands, 3-year annual average.
Innovation for future-fit forests
Our forest assets, forest professionals, and
international network enable us to focus on
development and innovation, optimise land utilisation,
and create new revenue streams. We are intensifying
initiatives in our Swedish forests, concentrating on
research, development, and the adoption of new
technologies and digitalisation.
Digitalisation, remote sensing technology, and
artificial intelligence enhance our operations in
forests and the wood supply chain while aiding in
biodiversity protection and restoration. With precise
data, we can accurately monitor forest volume, yield,
and variety, and detect diseases early. This data also
supports our efforts to implement more effective
biodiversity actions.
In the future, we aim to monitor tree species
composition and deadwood creation with high
granularity, identifying key areas for biodiversity. We
also encourage our partners to adopt similar
approaches.
Sustainable forestry and biodiversity
Sustainable forest and plantation management
ensures the long-term availability of wood while
preserving ecosystems and biodiversity, crucial for
forest resilience. Biodiversity refers to the variability of
life at genetic, species, and habitat levels. Globally,
biodiversity is declining, and more action is needed to
reverse this trend.
As one of the world’s largest private forest owners, we
have a responsibility to protect biodiversity across all
our operations.
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1 Total amount of wood (roundwood and chips) procured within these regions for delivery to our units (million m³ solid under bark).
2 Figures for Brazil and Uruguay include 50% of the wood procurement of our joint operations Veracel and Montes del Plata.
3 Includes wood delivered from Stora Enso’s forests to third-parties. Managed sources consist of long-term harvesting rights and contracts.
In 2024, we harvested in own and leased forests and sourced from long-term agreements a total of 10.5 million m³. Our deliveries to our mills
were 29.0 million m³ in total excluding energy wood.
Veracel (50%)
Montes del Plata (50%)
Guangxi
Tornator (41%)
Stora Enso’s
own forests, Sweden
2022
2023
2024
60
80
100
120
140
160
180
200
220
Estimated growth
Harvesting
2022
2023
2024
0
2
4
6
8
10
12
14
Total growth and harvesting
Million m³ fo
Total standing stock
Million m³ fo
Supply from own and managed sources³, %
Supply from other sources, %
Finland
Sweden and
Norway
Central Europe
Baltic countries
Uruguay²
Brazil²
China
0
10
20
30
40
Wood procurement by countries/region¹
%
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Our strategy
Megatrends
17
Business environment and value creation
18
Strategic focus areas
19
Strategic progress
20
Market dynamics
Macroeconomic and
geopolitical disruption
By navigating macroeconomic and
geopolitical disruptions, Stora Enso can
access new markets, streamline operations,
and enhance its competitiveness. However,
these disruptions could affect market
demand, prices, profit margins, and product
volumes. They may also increase costs and
complexity. Global instability could disrupt
supply chains, heightening risks while also
creating opportunities to strengthen
resilience and innovate in supply
management.
Regulatory change
Political or regulatory developments could
have both positive and negative impact on
Stora Enso’s businesses.
Access to raw materials
The growing demand for bio-based
materials, along with external factors such
as climate change and geopolitical
instability, may limit Stora Enso’s access to
wood-based raw materials. However, these
challenges also create opportunities to
innovate and identify alternative sources,
potentially driving greater sustainability and
efficiency in the industry.
Climate change
Climate change could pose challenges to
Stora Enso’s forests and operations,
impacting resource availability. However, it
also presents opportunities to innovate and
adapt, leading to advancements in
sustainable forestry practices. Such
improvements could enhance resilience
while positioning the company as a leading
provider of renewable fiber-based solutions,
attracting new customers and markets.
Global megatrends underpin
our business strategy
Megatrends and market dynamics are affecting our business, driving growth, improving
margins, and creating new business opportunities. However, these factors could also potentially
bring significant challenges and uncertainties. At the same time, sustainability initiatives,
technological advancements, and shifts in consumer preferences toward replacing fossil-based
materials are influencing purchasing behaviour. Global megatrends are fuelling the demand for
renewable materials, supporting our growth and value creation.
Key megatrends
Circularity
Circularity is gaining momentum across
various sectors and regions, driven by
policy, innovation, and consumer demand.
The world needs materials that are both
renewable and recyclable, and supporting
a circular bioeconomy to combat climate
change, conserve natural resources, and
minimise waste.
Eco-awareness
Climate change necessitates the more
efficient use of natural resources, and
consumer demand for sustainable
products is growing. Investors and other
financial institutions are increasingly
factoring climate and biodiversity impacts
into their investment strategies. Meanwhile,
policymakers and regulators are
developing regulations to mitigate and
adapt to climate change and halt
biodiversity loss.
Climate change
The increase in average global
temperatures has significant impacts on
the environment, society, and economy, as
seen in melting ice caps, rising sea levels,
extreme weather events, biodiversity loss,
food insecurity, and health risks. A key
factor in decelerating climate change, and
where Stora Enso can contribute, is
replacing fossil-based materials with
renewable alternatives.
Resource scarcity
Population growth, increasing
consumption patterns, and climate
change have led to the depletion of
natural resources, subsequently increasing
their price. This emphasises the need for
efficient resource utilisation, establishing
circular material flows, and waste
reduction.
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Business
environment
and value
creation
Business environment
Stora Enso’s forest operations are based on the
principles of sustainable forestry and demand for
renewable wood raw material for packaging and
construction. Stora Enso capitalises on the growing
demand for renewable resources, aligning with
market needs focused on reducing carbon emissions
and promoting circular economy.
The market for sustainable packaging is growing,
fuelled by increasing environmental concerns and
changes in consumer behaviour. Fiber-based
packaging for food is a significant growth area and e-
commerce continues to expand. There is higher
demand for packaging that is both functional and
sustainable. Stora Enso’s renewable and recyclable
packaging products, are well-positioned to benefit
from this trend.
The market for pulp is driven by demand in packaging,
tissue, speciality papers and disposable hygiene
products. Leveraging renewable technologies
enhances the ability to tap into sustainability trends
and seize opportunities.
The market demand for wood products is driven by
factors such as housing and construction trends,
consumer preferences for natural materials, and
environmental sustainability considerations.
Our value creation
• Wood fiber-based
products
• Renewable packaging
• Wood Products & pulp
• Sustainability trends as a
key driving force
• Growth per year >5%
• Net debt to adj. EBITDA <2
• LTM adj. ROCE excl.
Forest >13%
• 2030: 50% less CO2
emissions
• ͏2030: 100% recyclable
products
• ͏2040: Net-zero emissions
• Customer value and
innovation
• ͏Positive performance
culture
• ͏Safety, Diversity & Inclusion
Strong market positions
with high entry barriers in
growing segments
Optimised
and competitive
production assets
One of
the world’s largest
private forest owners
Growth opportunities
in biobased materials
and markets
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A focused and disciplined approach to capital allocation drives shareholder value
Cash flow generation
Allocating capital for
sustainable profitable growth
Organic growth – CAPEX at or below
depreciation over the cycle.
M&A – Selective M&A to support growth in
both Packaging and Building Solutions.
Returning capital
to shareholders
Dividend – To distribute 50% of EPS excluding fair valuation over the cycle.
Strategic focus areas
We create value for our shareholders by growing our leading positions in packaging,
biomaterials innovations, and building solutions, combined with a strict capital allocation
strategy, cost control, and other financial measures.
Renewable packaging
In Packaging, we continue to see strong demand for
plastic substitution and circular solutions. Fiber-
based packaging is the most sustainable option for
many products as it can be recycled, reused, or
composted. It is the fastest growing packaging
material globally and is expected to outpace plastic
alternatives in the long term.
We hold leading global market positions in
high-value segments and long-term customer
partnerships. Our wide range of fiber-based
packaging materials and solutions for cartons,
boxes, trays, cups, and bags serve industries such as
food and beverage, e-commerce, pharmaceutical,
and cosmetics.
Biomaterials innovation
In Biomaterials, we focus on providing innovative and
sustainable biobased solutions for high-growth, high-
margin markets. Through our expertise, strategic
collaborations and partnerships, we accelerate
breakthrough innovations in new fiber products,
biochemicals, and lignin-based applications, such as
anode material for batteries and bio-based binders for
construction, which can replace fossil-based materials.
Sustainable building solutions
There are growth opportunities in the building
industry, particularly with wooden alternatives to
materials such as concrete and steel, which have
larger carbon footprints. The global construction
market is shifting towards modular building methods
that use less energy and reduce carbon emissions.
Mass timber products now enable the construction of
safe and sustainable high-rise buildings. We are well-
positioned to capture more value across the entire
supply chain with our products and value-added
services, including prefabricated bespoke wooden
elements, new concepts, and digital services.
Forest
Forests are the foundation for Stora Enso’s
renewable solutions. Stora Enso owns forest assets
in Sweden and holds a 41% share in Tornator, whose
forest assets are primarily located in Finland. The
Forest division manages the forest assets in Sweden
and is also responsible for wood sourcing for Stora
Enso’s Nordic and Baltic operations.
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Ambition to significantly reduce earnings cyclicality
Developing a more value-added pulp product mix
Growth in packaging with increased integration of captive pulp
Growing the share of building solutions
36% self-sufficiency in wood supply
Forest
Pulp, traditional wood products
Sustainability supports our growth strategy
Growth and value drivers
Renewable
packaging
Biomaterials
innovation
Sustainable
building solutions
Strategic growth areas
30%
70%
Strategic
growth areas¹
Paper,
53%
47%
Strategic
growth areas¹
Foundation
sales²
80%
20%
Strategic
growth areas¹
Foundation
sales²
Sales 2006
Sales 2024
Sales 2030
Calculations are based on external sales.
1 Strategic growth areas include Renewable packaging, Sustainable building solutions, and Biomaterials innovations.
2 Foundation businesses include pulp, traditional wood products, and forest.
Value creation actions and profit
improvement programmes for long-
term competitiveness
Our value creation actions, focused on improved
sourcing, operational efficiency and commercial
excellence, made good progress across all
divisions. These efforts have significant impacted
profits and cost competitiveness during the year.
Additionally, our profit improvement programme,
targeting annual gross fixed cost saving of EUR 120
million, advanced successfully.
Together, these initiatives are contributing to
sustained enhancements in profitability and
competitiveness. Furthermore, we reduced
operating working capital by EUR 228 million during
the year, driven by ongoing efforts to enhance
capital release.
Investments and capital allocation
Stora Enso’s EUR 1 billion investment to convert the
idle paper machine at the Oulu site in Finland into
a high-volume consumer board production line is
proceeding according to plan. This investment
supports growth in renewable packaging, with
production expected to begin in early 2025.
In 2024, we initiated the sale of approximately 12%
of our 1.4 million hectares of forest assets in
Sweden. This sale aims to reduce debt and
strengthen the balance sheet by showcasing the
financial value of our forest holdings.
During the year, we decided to discontinue the
divestment process for our Beihai packaging
board production site and forestry business. This
decision aligns with our strategic aim to
strengthen our leadership in the fiber-based
packaging market.
We also made a strategic decision to enter into an
agreement to acquire 100% of the Finnish sawmill
company Junnikkala Oy. The acquisition aims to
secure a cost-efficient wood supply for our
packaging board site in Oulu, Finland, and will
support our wood products business with new
production assets.
Sustainability progress
During 2024, we continued to make progress on
our sustainability targets, achieving reductions in
carbon emissions across all three Scope
categories. Both active measures to reduce
emissions and the closure of sites and production
lines contributed to a 53% decrease in Scope 1 and
2 emissions and a 39% decrease in Scope 3
emissions compared to the 2019 baseline.
Our commitment to circularity involves reducing,
reusing, and recycling materials in both production
and consumption. We integrate circularity into our
product development and collaborate with
customers and partners to promote product
recycling. By the end of 2024, 94% of our products
were technically recyclable.
Our biodiversity initiatives aim for a net positive
impact, with action programmes in place until
2030 to enhance biodiversity at the species,
habitat, and landscape levels. Additionally, the
share of forest certification coverage of the land
we own or manage remained high at 99%.
Stora Enso’s annual climate impact¹
1 Negative value indicates a net removal from atmosphere.
2 A modelled 100-year average with IPCC tool. Calculated by the Swedish
University of Agricultural Sciences (SLU) based on Stora Enso’s forest and
production figures: Climate effects of a forestry company – including biogenic
carbon fluxes and substitution effects.
3 Substitution effect describes the amount of greenhouse gas emissions avoided
from using our products and biomass energy compared to more carbon-
intensive fossil products and fuels. Calculated based on Stora Enso’s product
portfolio.
4 Stora Enso’s CO2e emissions in 2024 including direct emissions from our
operations, emissions from purchased energy, and emissions from other
sources along our value chain (Scope 1, 2, and 3). Calculated based on the
Greenhouse Gas Protocol guidance.
5 Annual CO2 sequestration in Stora Enso’s owned or leased productive forest
lands, three-year annual average. For further details, see Sustainability
Statement, ESRS E1.
Strategic progress
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Our products substitute
fossil-based alternatives
Net impact
-13.5
million tonnes of CO2³
Our products store carbon²
Net impact
-2.5
million tonnes of CO2²
Our forests
sequester carbon
5
Net impact
-4.3
million tonnes of CO2
Our value
chain emissions
4
Net impact
5.8
million tonnes of CO2
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Our people
People and culture
22
Diversity, equity, and inclusion
23
Community engagement
24
People and culture
To lead in a changing world, Stora Enso developed a People Promise
and Expectations framework in 2024, closely aligned with its strategy.
Employee engagement
Stora Enso strives to understand employee
perspectives and measure progress on our People
Promise. We continuously adjust and refine our
approach to support teams growth and improve
through the all-employee survey, Engage. In year 2024
we ran a global survey as well as several divisional
surveys to support the development of our
decentralised operating model. The global survey
conducted in 2024, had a response rate of 79%.
The engagement score was 7.8, slightly above the
industry benchmark.
Ways of working in a decentralised model
In 2024, Stora Enso made further progress in identifying
optimal practices within its decentralised operating
model. This approach aims to empower our divisions,
create leaner Group functions, and increase
customer-centricity. These efforts have involved
organisational changed management across the
company. Throughout this process, we have carefully
adhered to national, union, and Works Council
guidance, while providing managers and employees
with continuous support and communication
through various channels
Our positive performance culture
To foster a positive performance culture, we
introduced the concept of 4As at the end of 2023.
Ambition, Agility, Analytical Approach and
Accountability guide us in developing high-
performing teams and building a strong, transparent
company culture. We are raising the bar by
challenging ourselves and creating an active
feedback culture. Our focus is on enhancing efficiency
by raising a high clock speed. We utilise new forums to
facilitate quicker problem-solving and connecting
performance management processes across the
organisation. Additionally, we are committed to
embedding a culture of continuous improvement as
our standard way of working, to encourage ongoing
development and progress.
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Cornerstones of our People Promise
Provide a safe, diverse,
and inclusive environment
We value diversity and inclusion as they
boost competitiveness, improve decision-
making, and encourage job satisfaction,
innovation, and agility. More information on
our diversity, equity, and inclusion initiatives
can be found on the next page.
Across all our operations and offices, we
encourage all our people to actively
participate in continuous safety
improvement. We promote mental health
awareness and physical safety through
webinars and discussion forums.
Drive customer value,
performance, and innovation
Stora Enso prioritises customer value to
guide its direction and actions, promoting
high performance and innovation across
the organisation, supported by diversity
and collaboration. We enhance managers’
skills, agility, capabilities, and build expert
partnerships through various training
programmes, workshops, webinars, and
conferences. Our Sales Academy is
designed to drive value and performance
in the marketplace for sales teams and
other functions.
Grow to your full potential
We encourage all employees to drive their
growth, set high ambitions, and embrace
development opportunities to enhance
their knowledge, skills, and networks. Our
strategic workforce planning ensures the
organisation has the necessary capabilities
to meet market demands. We focus on
recruitment and talent initiatives to
address workforce gaps and support
employee development.
Stora Enso ranked
top leader
in the Financial Times
Diversity Leaders index
Share of women
24%
among all managers
Employees representing
80
different citizenships
Diversity, equity, and inclusion
Stora Enso is committed to offering an inclusive and equitable workplace where we respect
and value individual differences. To meet market demands and effectively respond to our
customers' needs, we recognise the importance of having employees from diverse
backgrounds who bring a variety of perspectives.
Stora Enso is committed to diversity, equity, and
inclusion (DE&I) in the workplace. We respect and
value individual differences, striving to create an
inclusive and equitable environment for all
employees.
Reflecting the diverse societies in which we operate is
essential to achieving our strategic goals. Diversity
and inclusion drive improved performance,
collaboration, and innovation. We appreciate
diversity of thought and encourage employees to
share their views. We have a zero-tolerance policy for
discrimination, harassment, or bullying.
While we have set key performance indicators (KPIs)
related to gender balance, we acknowledge that
diversity includes more than just gender. It also
includes age, ethnicity, national origin, and other
aspects of identity. Our commitment to a safe,
diverse, and inclusive working environment is outlined
in our People Promise and Expectations.
Stora Enso is actively working towards greater
inclusion through various initiatives. We regularly
monitor employee feedback and perspectives on our
diversity and inclusion efforts through engagement
surveys. In 2024, we introduced a new Inclusion Index
in our global employee engagement survey, which
scored 8.4, placing Stora Enso in the average rank
among the manufacturing sector.
Employee resource groups (ERGs) foster awareness
and a sense of belonging. For example, the Rainbow
Alliance ERG supports LGBTQI+ employees and allies.
We also run communication campaigns to increase
awareness on DE&I, coinciding with events such as
International Women’s Day, Pride Month, and Mental
Health Day.
Each division has its own diversity focus areas and
actions to enhance a sense of belonging. For
instance, the Packaging Materials division promotes
psychological safety through workshops, the
Packaging Solutions division emphasises gender
diversity in recruitment. One of the recruitment
initiatives is the “Female Leader Engineer Talent
Programme Cooperation”, which also includes active
collaboration of other divisions such as Biomaterials
and Packaging Solutions.
The Wood Products division incorporates diversity
metrics into its Purpose report, with development
initiatives at both divisional and unit levels. As part of
the Gender Balance Project in Austria, the division
established a hybrid “Female Power Talks” programme,
which included four events in 2024 aimed at
empowering women and fostering support networks.
In addition to other aspects of diversity, the Forest
division focuses on age diversity, with programmes
such as the Young Advisory Board which serves as
a development platform for junior and early-career
talents in Sweden. The “Experienced and Still Sparkling”
programme launched in 2024, aims to recognise and
value more experienced employees.
Overall, Stora Enso is committed to continuously
improving DE&I, creating an environment where every
employee feels valued, respected, and that
they belong.
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
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Unaudited 23
Community engagement
With its strong global presence, Stora Enso depends on thriving and resilient
communities. Our Purpose “Do Good for the People and the Planet” and our Values
“Lead” and “Do What’s Right” underline our commitment to conducting business
responsibly in the communities in where we operate.
Our operations depend on local communities for
a skilled workforce and the supply of our primary raw
material, wood. In turn, we contribute to local
employment, income generation, and infrastructure
development. Additionally, our community
development programmes and employee
volunteering initiatives are designed to further
enhance the livelihoods of these communities.
We prioritise open and transparent relationships with
stakeholders to discuss the impact of our operations,
build trust, and address concerns. We have a long
history of engaging with local communities in diverse
settings and cultures. The form and frequency of our
engagement vary based on the local context. This
may involve interaction through community
representatives or direct and inclusive contact. Active
cooperation with forest owners and stakeholders near
our harvesting sites helps to promote sustainable
sourcing, share knowledge, and gain social
acceptance.
Two examples of how we work
with indigenous people
We are a significant private forest owner in Sweden
and a key forestry operator in Finland. We
acknowledge our responsibilities to the indigenous
Sámi people who reside near the lands where we
operate or source our wood. Our forestry planning
team engages in ongoing dialogue with the local Sámi
communities in Sweden, including discussions about
forestry and reindeer herding, and identifying
opportunities and challenges together. Before
commencing any forestry operations, we consult with
the Sámi communities. Annual evaluation meetings
assess the year’s activities and consultations, ensuring
continuous communication and collaboration. This
partnership has resulted in solutions such as
minimising damage to lichen during soil preparation
for replanting, which is essential for feeding reindeer
during winter.
Our approach to engaging with
local communities and indigenous
peoples, as well as managing our
impact, is further described in
the Sustainability Statement.
The Pataxó and Tupinambá communities, comprising
nearly 25,000 indigenous people, live near Veracel, our
joint venture in Brazil. In cooperation with indigenous
communities, Veracel’s community liaison team plans
activities to foster dialogue and preserve traditional
culture. Community consultations are held before
logging operations begin and after activities near
harvesting sites are completed to avoid or mitigate
any potential impact. We are committed to managing
our actions responsibly, minimising adverse impacts
on the environment and people while maximising
positive outcomes.
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
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Unaudited 24
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
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Unaudited 25
Governance
Corporate Governance Stora Enso in 2024
26
Shareholders’ Meeting
26
Board of Directors
27
Board Committees
31
Management of the Company
32
Internal control and risk management related to financial reporting
35
Members of the Board of Directors
36
Members of the Group Leadership Team
38
Appendix 1
40
Corporate Governance
Stora Enso in 2024
The duties of the various bodies within Stora Enso Oyj (“Stora Enso” or the
“Company”) are determined by the laws of Finland and by the Company’s
corporate governance policy, which complies with the Finnish Companies
Act and the Finnish Securities Market Act. The rules and recommendations
of the Nasdaq Helsinki Oy and Nasdaq Stockholm AB stock exchanges are
also followed, where applicable. The corporate governance policy is
approved by the Board of Directors (“Board”).
Stora Enso complies with the Finnish Corporate Governance Code 2025
issued by the Securities Market Association (the “Finnish Code”). The Finnish
Code is available at cgfinland.fi. Stora Enso also complies with the Swedish
Corporate Governance Code (the “Swedish Code”), with the exception of
the deviations listed in Appendix 1 of this Corporate Governance Report.
The deviations are due to differences between Swedish and Finnish
legislation, governance code rules and practices, and in these cases Stora
Enso follows the practice in its domicile. The Swedish Code is issued by the
Swedish Corporate Governance Board and is available
at corporategovernanceboard.se.
This Corporate Governance Report is available as a PDF document at
storaenso.com/investors/governance.
General governance issues
The Board and the President and CEO are responsible for the
management of the Company, the roles and responsibilities of which are
described in more detail later in this report. Other governance bodies have
an assisting and supporting role.
The Stora Enso group prepares Consolidated financial statements and
interim reports conforming to International Financial Reporting Standards
(IFRS Accounting Standards). The Company’s sustainability statement is
prepared in accordance with the European Sustainability Reporting
Standards. The annual financial statement, the Report of the Board of
Directors including the sustainability statement and interim reports are
published in Finnish and English. Stora Enso prepares its financial
statements in accordance with the Finnish Accounting Act.
The Company’s head office is in Helsinki, Finland, and it also has head office
functions in Stockholm, Sweden.
Stora Enso has one statutory auditor elected by the shareholders at the
Annual General Meeting (the “AGM”). To the maximum extent possible,
corporate actions and corporate records are taken and recorded in English.
Objectives and composition
of governance bodies
The shareholders exercise their ownership rights through the shareholders’
meetings. The decision-making bodies responsible for managing the
Company are the Board and the CEO, while the Group Leadership Team
(GLT) supports the CEO in managing the Company.
The day-to-day operational responsibility rests with the GLT members
supported by divisional and function teams.
Governance bodies
Shareholders’ meeting
Shareholders’ Nomination Board
External Audit
Board of Directors
Financial and Audit Committee
People and Culture Committee
Sustainability and Ethics Committee
Internal Audit
Risk management
Internal control
Ethics and
Compliance
President and CEO
Group Leadership Team (GLT)
Shareholders’ meetings
The AGM is held annually to present detailed information about the
Company’s performance and to deal with matters such as adopting
the annual accounts, setting the dividend (or distribution of funds) and its
payment, and appointing the Chair, Vice Chair, and the members of the
Board of Directors, as well as the Auditor.
Shareholders may exercise their voting rights and take part in the
decision-making process of Stora Enso by participating in shareholders’
meetings. Shareholders also have the right to ask the Company’s
management and Board of Directors questions at shareholders’ meetings.
Major decisions are taken by the shareholders at Annual or Extraordinary
General Meetings. At a shareholders’ meeting, each A share and every ten
R shares carry one vote. Shareholders may also exercise their decision-
making rights by means of pre-voting, which has been offered by the
Company as a means of exercising voting rights since 2020.
The Board of Directors convenes a shareholders’ meeting by publishing a
notice of the meeting at the Company’s website not more than three
months before the last day for advance notice of attendance mentioned
in the notice of the meeting and not less than three weeks before the date
of the meeting. In addition, the Company publishes details on the date and
location of the meeting, together with the address of the Company’s
website, in at least two Finnish and two Swedish newspapers. Other
regulatory notices to the shareholders are delivered in the same way.
The AGM shall be held annually by the end of June in Helsinki, Finland. The
Finnish Companies Act and Stora Enso’s Articles of Association specify in
detail that the following matters have to be dealt with at the AGM:
• presentation and adoption of the annual accounts
• presentation of the Board of Directors report and the Auditor’s report
• use of the result and distribution of funds to the shareholders
• resolution concerning discharge of the members of the Board and the
CEO from liability
• presentation of the remuneration policy and/or report
• decision on the number and the remuneration of the members of the
Board and the Auditor
• election of the Chair, Vice Chair, and other members of the Board and
the Auditor
• any other matters notified separately in the notice of the meeting.
In addition, the AGM shall take decisions on matters proposed by the Board
of Directors. A shareholder may also propose items for inclusion in the
agenda provided that they are within the authority of the shareholders’
meeting and the Board of Directors was asked to include the items in the
agenda no later than on the date set out by the Company, which must be
not earlier than four weeks before the publication of the notice of the
meeting and which will be announced at the Company’s website no later
than by the end of the financial year preceding the AGM.
An Extraordinary General Meeting of Shareholders is convened when
considered necessary by the Board of Directors or when requested in
writing by the Auditor or shareholders together holding a minimum of one
tenth of all the shares to discuss a specified matter which they
have indicated.
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
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Unaudited 26
In 2024
Stora Enso’s AGM was held on 20 March 2024 in Helsinki, Finland. Of all issued
and outstanding shares in the Company, a total of 66.7% of all shares (69.3% in
2023) and a total of 83.2% of all votes (85.9%) were represented at the meeting,
with 91.4% of all A shares (94.2%) and 59.6% of all R shares (62.2%) represented. All
Board members and most of the GLT members as well as Company’s Auditor
were present at the meeting. The AGM, in addition to regular matters,
authorised the Board to decide on a share issue or share repurchase covering
a maximum of 2,000,000 R shares in order to carry out the Company’s
compensation or remuneration schemes. No Extraordinary General Meetings
of Shareholders were convened in 2024.
Shareholders’ Nomination Board
Shareholders at the AGM have established a Shareholders’ Nomination
Board to exist until otherwise decided, and to annually prepare proposals
to the shareholders’ meeting concerning:
• the number of members of the Board;
• the Chair, Vice Chair, and other members of the Board;
• the remuneration for the Chair, Vice Chair, and members of the Board;
• the remuneration for the Chair and members of the committees of
the Board.
The AGM has approved the Charter of the Shareholders’ Nomination Board
and shall approve any proposed amendments of the Charter, other than
technical updates. The Shareholder’s Nomination Board according to its
Charter comprises four members:
• the Chair of the Board;
• the Vice Chair of the Board;
• two members appointed annually by the two largest shareholders
(one each) as of 31 August.
The Board through its Chair shall ensure that the annual appointment of
the members to the Shareholders’ Nomination Board is carried out as set
out in the Charter as decided by the AGM. The Board Chair shall annually
convene the first meeting of the Shareholders’ Nomination Board, which
shall elect its Chair amongst its members that are annually appointed by
the Company’s two largest shareholders.
The Shareholders’ Nomination Board shall serve until further notice, unless
the AGM decides otherwise. Its members are elected annually, and their
term of office shall end when new members are elected to replace them.
In 2024
The Shareholders’ Nomination Board comprised four members: Kari Jordan
(Chair of the Board), Håkan Buskhe (Vice Chair of the Board) and two other
members appointed by the two largest shareholders, namely Jouko Karvinen
(Solidium Oy) and Marcus Wallenberg (FAM AB). Marcus Wallenberg was
elected Chair of the Shareholders’ Nomination Board.
The main tasks of the Shareholders’ Nomination Board were to prepare the
proposals for the AGM 2025 concerning Board members and their
remuneration. During its working period 2024–2025, the Shareholders’
Nomination Board convened four (4) times. All members were male. Each
member of the Shareholders’ Nomination Board attended all the meetings.
Kari Jordan and Håkan Buskhe did not participate in the preparations or the
decision-making regarding Board remuneration.
In its proposal for the AGM 2025, the Shareholders’ Nomination Board proposes
that of the current members of the Board of Directors Håkan Buskhe, Helena
Hedblom, Astrid Hermann, Kari Jordan, Christiane Kuehne, Richard Nilsson and
Reima Rytsölä be re-elected members of the Board of Directors until the end of
the following AGM and that Elena Scaltritti and Antti Vasara be elected new
members of the Board of Directors for the same term of office. It is proposed
that Kari Jordan be elected Chair of the Board and Håkan Buskhe Vice Chair of
the Board. Elisabeth Fleuriot has informed the Shareholders’ Nomination Board
that she is not available for re-election. The Shareholders’ Nomination Board
also proposes that the annual remuneration for the Chair, Vice Chair, and
members of the Board of Directors, as well as for the Chairs and members of
Board Committees be increased by 3 percent.
For the purpose of carrying out its tasks, the Shareholders’ Nomination Board
has received the results of the external evaluation of the Board of Directors as
well as the assessment of each director’s independence of the Company and
of significant shareholders. The Shareholders’ Nomination Board has taken the
results of the Board evaluation and the requirements relating to director
independence into account in its work. The Shareholders’ Nomination Board
further considers the principles of the Board Diversity Policy in preparing its
proposal. The Shareholders’ Nomination Board has a Charter that defines its
tasks and responsibilities in more detail.
Remuneration
No remuneration is paid for members of the Shareholders’ Nomination Board
as decided by the AGM. The Shareholders’ Nomination Board Charter is
presented at storaenso.com/investors/governance.
Composition of the Shareholders’ Nomination Board in 2024
Kari Jordan¹, member
Håkan Buskhe¹, member
Chair of Stora Enso’s Board of Directors Vice Chair of Stora Enso’s Board of
Directors
Marcus Wallenberg, Chair
Jouko Karvinen, member
Chair of Stora Enso’s Shareholders’
Nomination Board. Born 1956. B.Sc.
(Foreign Service). Chair of the Board of
Directors of FAM AB.
Member of Stora Enso’s Shareholders’
Nomination Board. Born 1957. M.Sc.
(Tech.). Chair of the Board of Directors
of Solidium Oy.
1 Curriculum vitae of Kari Jordan and Håkan Buskhe, see chapter Members of the Board of Directors.
Board of Directors
Stora Enso is managed by the Board acting in accordance with the Finnish
Companies Act as well as other applicable legislation.
According to the Company’s Articles of Association, the Board comprises
six to eleven ordinary members appointed by the shareholders at the AGM
for a one-year term. The majority of the directors shall be independent of
the Company. In addition, at least two of the directors comprising this
majority shall be independent of significant shareholders of the Company.
A significant shareholder is a shareholder that holds at least 10% of all the
Company’s shares or the votes carried by all the shares or a shareholder
that has the right or the obligation to purchase the corresponding number
of already issued shares. The independence is evaluated annually in
accordance with the Finnish Corporate Governance Code.
All directors are required to deal at arm’s length with the Company and its
subsidiaries and to disclose circumstances that might be perceived as a
conflict of interest.
The shareholders at the AGM decide the remuneration of the Board
members (including the remuneration of the members of the Board
committees).
The Board supervises the operation and management of Stora Enso and
decides on significant matters relating to strategy, investments,
organisation, finance, and sustainability.
The Board is responsible for overseeing management and for the proper
organisation of the Company’s operations. Likewise, it is responsible for
overseeing the proper supervision of accounting and the control of
financial and sustainability matters.
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
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Unaudited 27
The Board has defined a working order, the principles of which are
published in chapter Working order of the Board in this report and at
storaenso.com/investors/governance.
The AGM elects the Chair and Vice Chair of the Board. Should the Chair or
Vice Chair of the Board of Directors resign or become otherwise unable to
act as Chair or Vice Chair during their term of office, the Board may elect a
new Chair or Vice Chair from among its members for the remaining term
of office.
The Board annually agrees on focus areas for the Board’s work during the
upcoming year constituting the Board Agenda.
The Board appoints the CEO, Chief Financial Officer (CFO), and other GLT
members. The Board approves the main organisational structure of
the Company.
The Board reviews and determines the remuneration of the CEO, which is
described in the Annual Report and on the Company’s website. The Board
and each of its Committees evaluates its performance annually. The
results of the Board’s evaluation are reviewed by the Board and shall be
communicated to the Shareholders’ Nomination Board, which shall take
the results of the Board evaluation into account in its work. The Board also
reviews the corporate governance policy annually and amends it
when required.
The Board’s work is supported through its committees – the Financial and
Audit Committee, the People and Culture Committee and the
Sustainability and Ethics Committee. Each committee’s Chair and
members are appointed by the Board annually.
The Board meets at least five times a year. The Board members meet
regularly without management in connection with the Board meetings.
Board Diversity Policy
The Company has established a Board Diversity Policy setting out the
principles concerning the diversity of the Board. The Shareholders’
Nomination Board shall, in connection with preparing its proposals for the
nomination of directors to the AGM, consider the principles of
the Company’s Board Diversity Policy.
Directors shall be nominated on the basis of their merits and with
consideration of the benefits of diversity and the principles that the
Company refers to as Diversity of Thought, including, but not limited to,
criteria of diversity such as gender, age, nationality, and individual
differences both in professional and personal experiences. The merits of
directors include knowledge of the operational environment of the
Company, its markets and of the industry within which it operates, and
may include elements such as financial, sustainability or other specific
competency, geographical representation, and business background as
required in order to achieve the appropriate balance of diversity, skills,
experience, and expertise of the Board collectively. The foremost criteria
for nominating director candidates shall be the candidates’ skills and
experiences, industrial knowledge as well as personal qualities and
integrity. The composition of the Board as a whole shall reflect the
requirements set by the Company operations and its development stage.
The number of directors and the composition of the Board shall be such
that they enable the Board to see to its duties efficiently. Both genders shall
be represented on the Board and the aim of the Company shall be to
strive towards a good and balanced gender distribution.
The Shareholders’ Nomination Board has taken the principles of the Board
Diversity Policy into account in its work. The Shareholders’ Nomination
Board finds that the composition of the Board as proposed to the AGM
2025 reflects diversity and a good variety of skills and experiences among
the Board members following the principles set out in the Board Diversity
Policy. The aim of the Shareholders’ Nomination Board going forward is to
maintain a good and balanced gender distribution.
The Board Diversity Policy is presented at storaenso.com/investors/
governance.
In 2024
The Board had eight members at the end of 2024, all of them independent of
the Company. The Board members are also independent of significant
shareholders of the Company with the exception of Håkan Buskhe (CEO of FAM
AB), Richard Nilsson (Investment Director at FAM AB) and Reima Rytsölä (CEO of
Solidium Oy).
The Board members nominated at the AGM in 2024 were Kari Jordan (Chair),
Håkan Buskhe (Vice Chair), Elisabeth Fleuriot, Helena Hedblom, Astrid Hermann,
Christiane Kuehne, Richard Nilsson and Reima Rytsölä. The Board convened
ten times during the year. The members’ participation rate in meetings
amounted to 100%.
An external evaluation relating to the Board’s work has been conducted during
2024, which together with the evaluation of the Board members’
independence has been provided to the Shareholders’ Nomination Board for
information. Overall assessment of the Board’s work and performance has
been effective and positive. The Board has worked according to all applicable
rules and regulations. For detailed information about the Board members and
their share ownerships, see chapter Members of the Board of Directors.
Remuneration
Board remuneration is decided by the AGM each year. The AGM 2024 decided
on an annual remuneration of EUR 215,270 for the Board Chair, EUR 121,540 for the
Vice Chair and EUR 83,430 for other members, which is paid partly in Company
shares as set out in the resolution of the AGM. In addition, remuneration may be
paid based on Board Committee memberships.
Board Diversity in 2024
During 2024, the Board has been composed of eight members representing
five different nationalities and a diverse range of experience from global
companies and industrial sectors. All Board members have university degrees
from different fields such as engineering, technology, finance, and law. All
members have vast experience from global companies either from operative
positions or through board memberships. A detailed description of the
educational and professional backgrounds of the Board members can be
found in chapter Members of the Board of Directors.
The Board members represent a good knowledge of the operational
environment of the Company as well as particular experience of amongst
others sustainability, ESG, financial competence, and the business environment
relevant to the operations of the Company. At the end of 2024 the age of the
Board members varied from 51 years to 69 years and the Board was
composed of four women and four men.
In 2024, the Shareholders’ Nomination Board has considered its previous
evaluation of competencies that may be further strengthened in the long-
term Board succession planning. In its proposal for the AGM 2025, the
Shareholders’ Nomination Board has proposed a Board composition that
includes four women and five men in the age range of 51 years to 69 years and
representing a total of five different nationalities. With the proposed Board
composition, the gender balance of the Board of Directors will comprise 44.4%
female and 55.6% male. The proposed new Board members Elena Scaltritti and
Antti Vasara would bring strong science and technology competence and
experience to the Board, and would, in the view of the Shareholders’
Nomination Board, add strong value to the Board as a collective.
The aim of the Shareholders’ Nomination Board going forward is to maintain
a good and balanced gender distribution.
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
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Unaudited 28
Working order of the Board
The working order describes the working practices of the Board.
A summary of key contents is presented below.
Board meetings
• occur regularly, at least five times a year, according to a schedule
decided in advance;
• special Board meetings, if requested by a Board member or the CEO, are
held within 14 days of the date of request;
• agenda and material shall be delivered to Board members one week
before the meeting.
Information
• the Board shall receive information monthly concerning financial
performance, the market situation, and significant events within the
Company’s and the group’s operations;
• Board members shall be informed about all significant events
immediately.
Matters to be handled at Board meetings
• matters specified by the Finnish Companies Act;
• approval of business strategy;
• organisational and personnel matters:
– decisions concerning the basic top management organisation;
– decisions concerning the composition of the GLT;
– remuneration of the CEO;
– appointment and dismissal of the CEO and approval of heads of
divisions and other members of the GLT, based on the CEO’s proposal;
– appointment of Committee Chairs and members;
– remuneration of GLT members based on the CEO’s proposal;
– review talent management and succession planning process (in
particular the CEO);
• economic and financial matters:
– approval and review of the annual budget;
– approval of loans and guarantees, excluding intra-group loans and
guarantees;
– approval of share repurchases, if any, as well as the report of share
repurchases;
– approval of financial reports;
• sustainability matters
– approval of the double materiality assessment;
– approval of the sustainability statement;
• investment matters:
– approval of major investments;
– approval of major divestments;
– receive relevant analyst meeting presentations and analyst reports;
• approval of the governing documents as defined in the Policy on
Delegation of Authority, including the following:
– Board and Committee Charters;
– Board Diversity Policy;
– Corporate Governance Policy;
– Disclosure Policy;
– Insider Guidelines;
– Remuneration Policy;
– Group Financial Risk Policy;
– Internal Control Policy;
– Enterprise Risk Management Policy;
• other matters:
– report of the CEO on the group’s operations;
– reports of the Financial and Audit Committee, People and Culture
Committee, and Sustainability and Ethics Committee by the chairs of
the respective committees. The recommendations and proposals by
the Shareholders’ Nomination Board shall be reported to the Board by
the Chair of the Board;
– annual self- or external assessment of Board work and performance
as well as independence;
• other matters submitted by a member of the Board or the CEO.
The Board of Directors’ and management’s annual working cycle
Our year 2024
This is Stora Enso
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Our people
Governance
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Unaudited 29
Board meeting / SECo, FAC, PCC
Inside Committee meeting
Ethics and Compliance Management Committee meeting
Board meeting (Q3) / FAC, PCC
Inside Committee meeting
Board meeting (strategy) / SECo, FAC
Inside Committee meeting
Ethics and Compliance Management Committee meeting
Board meeting (Q2) / FAC
Inside Committee meeting
Ethics and Compliance Management Committee meeting
Inside Committee meeting
Board meeting (Full year and Q4 + annual governance update) / SECo, FAC, PCC
Inside Committee meeting
Annual General Meeting / Board meeting / SECo
Ethics and Compliance Management Committee meeting
Inside Committee meeting
Board meeting (Q1) / FAC, PCC
Board meeting
SECo = Sustainability and Ethics Committee
FAC = Financial and Audit Committee
PCC = People and Culture Committee
Monthly
GLT meetings
Investment Working Group meetings
Divisional performance meetings
Quarterly
Meetings with auditors
Board skills matrix
Board diversity in figures
Tenure
Number of persons
2
3
1
2
1–2 years
3–5 years
6–9 years
≥10 years
Gender
Number of persons
4
4
Male
Female
The Board of Directors features equal representation of both
genders, with a composition of 50% female and 50% male.
Age*
Number of persons
0
4
1
3
18–50
51–60
61–65
>65
Occupation*
Number of persons
3
5
Non-Executive Director
Non-Executive Director
operating as a CEO, CFO,
or in another active
operational role in
another company
Our year 2024
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Shareholders
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Kari Jordan
Håkan Buskhe
Elisabeth Fleuriot
Helena Hedblom
Astrid Hermann
Christiane Kuehne
Richard Nilsson
Reima Rytsölä
Qualifications and Experience
Sustainability driven innovation
●
●
Finance and Risk Management
●
●
●
●
●
Global Business and Operative Management
●
●
●
●
●
●
●
●
Sustainability, ESG
●
●
●
●
●
●
Governance & Compliance
●
●
●
●
●
●
Business Leadership
●
●
●
●
●
●
●
Industry Experience
●
●
Strategic planning
●
●
●
●
●
●
●
●
Branding and Communications
●
●
Cyber security/IT & Digitalisation
●
●
Emerging Markets
●
●
●
Additional Qualifications and Information
Director since
2022
2020
2013
2021
2023
2017
2014
2024
Independent of Company
●
●
●
●
●
●
●
●
Independent of Owners
●
●
●
●
●
●
●
●
FAC membership 2024
Member
Member
Chair
SECo membership 2024
Member
Chair
Member
PCC membership 2024
Chair
Member
Member
Other current listed Boards*
1
1
0
0
0
0
1
2
Gender
Male
Male
Female
Female
Female
Female
Male
Male
Principal Skills (out of 8 Directors)
Sustainability
driven innovation
Finance and Risk
Management
Global Business
and Operative
Management
Sustainability, ESG
Governance &
Compliance
Business
Leadership
Industry Experience
Strategic planning
Branding and
Communications
Cyber security/
IT & Digitalisation
Emerging Markets
● yes ● no *at 31 December 2024
The table sets out the primary skills of each Board member. The fact that an item is not highlighted for a Board member does not mean that such member does not possess that qualification or skill.
2
5
8
6
6
7
2
8
2
2
3
Board committees
The tasks and responsibilities of the Board committees are defined in their
charters, which are approved by the Board. All the committees evaluate
their performance annually, are allowed to use external consultants and
experts when necessary, and shall have access to all information required.
Each committee’s Chair and members are appointed by the Board
annually.
Financial and Audit Committee
The Board has a Financial and Audit Committee to support the Board in
maintaining the integrity of the Company’s financial and sustainability
reporting and the Board’s control functions. It regularly reviews and
monitors the system of internal control and internal audit as well as its
efficiency, the management and reporting of financial risks, the audit
process, the Company’s procedures for monitoring related party
transactions, the annual corporate governance report, and the Report of
the Board of Directors including the Sustainability Statement. It makes
recommendations regarding the appointment of external auditor for the
Parent Company and the main subsidiaries, and monitors the auditor’s
independence.
The Committee comprises three to five Board members who are
independent of and not affiliated with the Company. The members of the
Committee must have sufficient expertise and experience to be able to
challenge and evaluate the Company’s internal accounting function and
internal and external audit functions. At least one member must have the
relevant expertise in accounting and auditing as required by the
applicable regulation. The Financial and Audit Committee meets regularly,
at least four times a year. The Committee members meet the external and
internal auditors regularly without the management being present. The
Chair of the Committee presents a report on each Financial and Audit
Committee meeting to the Board. The tasks and responsibilities of the
Financial and Audit Committee are defined in its charter, which is
approved by the Board. Financial and Audit Committee members may
receive remuneration solely based on their role as directors.
The compensation is decided by the shareholders at the AGM.
In 2024
The Financial and Audit Committee comprised three members: Richard Nilsson
(Chair), Elisabeth Fleuriot and Astrid Hermann. The Committee convened seven
times. The members’ participation rate in meetings amounted to 100%.
The main task of the Committee is to support the Board in maintaining the
integrity of Stora Enso’s financial and sustainability reporting and the Board’s
control functions. To fulfil its task, the Committee regularly reviews the
Company’s system of internal control, management, and reporting of financial
and enterprise risks (including IT and cyber security), as well as the internal and
external audit processes. During the year the Committee continued to follow-
up on the forest land and Finnish power asset valuations. In respect of the EU
Corporate Sustainability Reporting Directive (CSRD), the Committee monitored
compliance with the legal and regulatory requirements, and the quality and
controls of the reporting processes. In addition, the Committee reviewed
finance plans, treasury activities and material items affecting comparability
and impairments, including items relating to activities such as mergers &
acquisitions and restructurings. In addition, the Committee further reviews
relevant material compliance related cases relating to the integrity of financial
reporting or fraud investigations that have been reported to Internal Audit and
Ethics and Compliance during the year.
Remuneration
Chair EUR 23,278 per annum and member EUR 16,377 per annum as decided by
the AGM.
The Financial and Audit Committee Charter is presented at storaenso.com/
investors/governance.
People and Culture Committee
The Board has a People and Culture Committee which ensures that the
remuneration, talent and succession plans support the strategic aims of
Stora Enso. The Committee is responsible for preparing for the Board’s
approval the Remuneration Policy and Report, management nominations,
compensation and incentive plans, including equity incentive
remuneration plans. The Committee also reviews and proposes the total
compensation of the CEO and evaluates the CEO performance. There is a
People and Culture Committee representative present at the AGM to
answer questions relating to management remuneration. The Board
appoints the CEO and approves his/her remuneration as well as the
nomination and compensation of other members of the GLT.
The Committee comprises three to four Board members who are
independent of and not affiliated with the Company. The People and
Culture Committee meets at least once a year. The Chair of the People
and Culture Committee presents a report on each People and Culture
Committee meeting to the Board. The tasks and responsibilities of the
People and Culture Committee are defined in its charter, which is
approved by the Board. People and Culture Committee members may
receive remuneration solely based on their role as directors.
The compensation is decided by the shareholders at the AGM.
In 2024
The People and Culture Committee comprised three members: Kari Jordan
(Chair), Håkan Buskhe and Reima Rytsölä.¹ The Committee convened
four times. The members’ participation rate in meetings amounted to 92%.
The main task of the Committee is to recommend, evaluate, and propose
executive nominations and remunerations, review the Company’s
remuneration reporting, and to make recommendations to the Board relating
to management remuneration in general, including short- and long-term
incentive programmes.
In 2024, the Committee has focused on remuneration and developing the
talent pipeline for GLT positions. Subsequently three GLT nominations have
been made; EVP Forest Division, EVP Packaging Solutions Division and CFO.
Remuneration
Chair EUR 11,639 and member EUR 7,004 per annum as decided by the AGM.
The People and Culture Committee Charter is presented at storaenso.com/
investors/governance.
1 The Committee prior to the AGM on 20 March 2024 comprised the following three members: Kari Jordan
(Chair), Håkan Buskhe and Antti Mäkinen.
Sustainability and Ethics Committee
The Board has a Sustainability and Ethics Committee which is responsible
for overseeing the Company’s sustainability and ethical business conduct,
its strive to be a responsible corporate citizen, and its contribution to
sustainable development. The Committee regularly reviews Stora Enso’s
Sustainability Strategy and Ethics and Compliance Strategy and, in
accordance with Stora Enso’s corporate governance structure, oversees
their effective implementation as well as reviews the Company’s external
sustainability reporting. In its work the Committee takes into consideration
Stora Enso’s Purpose and Values as well as the Stora Enso Code and
Business Practice Policy. The topics of the Committee meetings include
safety, sustainability (in particular, climate change, circularity and
biodiversity) and ethics.
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
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Unaudited 31
The Committee comprises two to four Board members who are
nominated annually by the Board. The members are independent of and
not affiliated with the Company. At least one Committee member is
expected to have sufficient prior knowledge and experience in handling
sustainability and ethics matters.
The Committee meets regularly, at least twice a year. The Chair of the
Committee presents a report on each Sustainability and Ethics Committee
meeting to the Board. The tasks and responsibilities of the Committee are
defined in its charter, which is approved by the Board. Sustainability and
Ethics Committee members may receive remuneration solely based on
their role as directors. The compensation is decided by the shareholders
at the AGM.
In 2024
The Sustainability and Ethics Committee comprised three members: Christiane
Kuehne (Chair), Helena Hedblom and Richard Nilsson.¹ The Committee
convened six times. The members’ participation rate in meetings amounted
to 100%.
The Committee in each of its meetings reviews the areas relevant for the
Committee’s work, including safety and sustainability matters, as well as ethics
and compliance matters. The Committee further reviews safety status and
sustainability and ethics and compliance KPI’s, sustainability reporting, as well
as relevant sustainability and safety initiatives and processes carried out
during the year. In 2024 the main topics were divisional deep-dives in the area
of safety and sustainability, and the implementation of the new Corporate
Sustainability Reporting Directive (CSRD). During the year, the committee had
two extra meetings focusing on the double materiality assessment process
and results. In addition, an important part of the Committee’s work consisted of
overseeing reported compliance cases and environmental incident reports.
Remuneration
Chair EUR 11,639 and member EUR 7,004 per annum as decided by the AGM.
The Sustainability and Ethics Committee Charter is presented at
storaenso.com/investors/governance.
1 The Committee prior to the AGM on 20 March 2024 comprised the following two members: Christiane
Kuehne (Chair) and Helena Hedblom.
Management of the Company
Chief Executive Officer (CEO)
The CEO is in charge of the day-to-day management of the Company in
accordance with the Finnish Companies Act and the instructions and
orders issued by the Board. It is the duty of the CEO to ensure that the
Company’s accounting principles comply with the law and that financial
matters are handled in a reliable manner.
The Board approves the main organisation, including the functions
reporting to the CEO. At the end of 2024 the CEO was directly in charge of
the following functions, which also reported to him:
• Divisions (Packaging Materials, Packaging Solutions, Biomaterials, Wood
Products and Forest)
• CFO Office (responsible for Accounting, Controlling, Internal Audit,
Investor Relations, Information and Cyber Security, Global Business
Services, Tax, Transformation and Treasury)
• People and Communication
• Legal
• Strategy and Sustainability (responsible for Strategic Projects,
Sustainability, Corporate Finance and M&A, Investment Process, Energy
Services, Enterprise Risk Management and Corporate Affairs)
The CEO is also responsible for preparatory work with regard to Board
meetings. In addition, the CEO supervises decisions regarding key personnel
and other important operational matters. As of 1 November 2024, the
Company no longer has a deputy to the CEO.
Group Leadership Team as at 31 December 2024
President and CEO
Hans Sohlström
CFO¹
Packaging Materials
Hannu Kasurinen
Packaging Solutions²
Carolyn Wagner
Biomaterials
Johanna Hagelberg
Wood Products
Lars Völkel
Forest, Country Manager Finland
3
Tuomas Hallenberg
People and Communication
Katariina Kravi
Legal
Micaela Thorström
Strategy and Sustainability
Tobias Bäärnman
Country Manager Sweden⁴
Per Lyrvall
1 Seppo Parvi, CFO and Deputy CEO, Country Manager Finland was a member of GLT until 31 October 2024. Pasi Kyckling, Acting CFO 1 November 2024–12 January 2025 was not a member of GLT. Niclas Rosenlew started in his position as new CFO and GLT member on 13 January 2025.
2 Ad Smit, EVP Packaging Solutions was a member of GLT until 31 October 2024.
3 Per Lyrvall, EVP Forest until 14 October 2024.
4 Per Lyrvall remains as a Country Manager Sweden and GLT member until his retirement 1 April 2025. The role of Country Manager Sweden will be assumed by Tobias Bäärnman, EVP Strategy and Sustainability as of 1 April 2025.
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
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Unaudited 32
Group Leadership Team (GLT)
The GLT is chaired by the CEO. The GLT members are appointed by the CEO
and approved by the Board. At the 2024 year end, the ten GLT members
were the CEO, the heads of the divisions, People and Communication, Legal
(who is also General Counsel), Strategy and Sustainability, as well as
Country Manager Sweden. New CFO started in his position 13 January 2025.
The GLT assists the CEO in supervising the Group and divisional
performance against agreed targets, portfolio strategy, ensuring the
availability and value-creating allocation of Group funds and capital, and
statutory, governance, compliance, and listing issues and policies.
The GLT meets regularly every month, and as required.
In 2024
The GLT had ten members at the end of 2024. The GLT convened 19 times during
the year. Important items on the agenda in 2024 were financial performance,
safety, strategy and transformation, sustainability, digitalisation, performance
culture, and preparatory work for Board meetings.
Divisions and other functions
The divisions are responsible for their respective line of business and are
organised and resourced to deal with all business issues. The CEO steers
the divisions through in monthly performance meetings (including
innovations) as well as the GLT meetings.
Strategic investment projects are approved on the group level following
the mandate by the CEO and Board of Directors. Larger projects are
reviewed by the Investment Working Group (IWG) comprising group and
division representatives and chaired by the Executive Vice President (EVP),
Strategy and Sustainability (in addition, the allocation proposals are made
by IWG).
Innovation and R&D is organised in two structures. On the group level,
the long-term research and company-wide collaborations with academia
and external R&D providers are managed by a small team of experts.
The innovation related to current and future offering of the businesses are
executed within the divisions to drive market and customer focus.
Transformation work has been organized both at Group level and in each
business division. The objective of the Transformation is to both improve
financial performance of the Group and develop ways of working and
culture. Each division is responsible for their respective transformation
work. Group Transformation Office coordinates the overall Transformation
work.
At Stora Enso, sustainability work is led by the EVP, Strategy and
Sustainability, who reports directly to the CEO and is part of the Group
Leadership Team (GLT). The CEO holds the ultimate responsibility for the
successful implementation of Company’s sustainability agenda. The
everyday implementation of Stora Enso’s sustainability agenda is the
responsibility of the divisions and line management supported by
functional experts at all levels. Sustainability reporting is conducted
through collaboration between Group Sustainability and the CFO Office.
Stora Enso’s sustainability work during 2024 was steered by
the Sustainability Council, which included Heads of Sustainability from
the divisions. Chaired by the Chief Sustainability Officer, its work involves
identifying longer-term opportunities and challenges that may require
a Group-wide response as well as sharing of good practices. The
Sustainability Council met ten times during 2024. Both the GLT and the
Board of Directors are regularly informed about sustainability progress
and other topical issues.
The Company has established proper disclosure policies and controls, and
a process for quarterly and other ongoing reporting.
Other supervisory bodies and norms
Auditor
The AGM annually elects one auditor for Stora Enso. The Financial and Audit
Committee monitors the auditor selection process and gives its
recommendation as to who should serve as the auditor to the Board for
the purpose of making the proposal to the shareholders at the AGM.
The auditor shall be an authorised public accounting firm, which appoints
the responsible auditor.
Auditor’s fees and services
Year Ended 31 December
EUR million
2024
2023
Audit fees
4
4
Audit-related
0
0
Tax fees
0
0
Other fees
0
0
Total
5
5
In 2024
On the recommendation of the Financial and Audit Committee, the Board
proposed that PricewaterhouseCoopers Oy be re-elected auditor by the AGM
2024 for the seventh year as the Company’s auditors. The AGM 2024 elected
PricewaterhouseCoopers Oy as auditor for a term of office expiring at the end
of the AGM 2025.
Internal Audit
Group Internal Audit is an independent and objective assurance and
advisory function designed to add value by providing systematic way to
audit governance, risk management and internal controls system of
Stora Enso.
Internal Audit reports regularly the status of the audits as well as key
findings and recommendations to the Financial and Audit Committee.
Internal Audit reports also on regular basis to Stora Enso Sustainability and
Ethics Committee related to sustainability findings.
Administratively, the Head of Internal Audit reports to the Stora Enso CFO
and functionally to CEO. The Financial and Audit Committee approves
the appointment of the Head of the Internal Audit following
the recommendation by the CEO.
Internal Audit annual plan is created on risk- and assurance-based
method. Internal Audit co-operates with second line functions during
the year in order to avoid overlapping work with other assurance activities,
and to be able to identify possible gaps. During the year, Internal Audit
executes possible special engagements based on a separate request.
The Financial and Audit Committee approves the Internal Audit Annual
Plan including changes during the year, cost estimate and Internal Audit
Charter.
Ethics and Compliance Management Committee
Stora Enso’s Ethics and Compliance Management Committee supervises
and monitors legal and regulatory ethics and compliance related policies,
the implementation and maintenance of processes and tools regarding
the same, and concrete compliance cases of principle interest. The Ethics
and Compliance Management Committee consists of the General
Counsel (Chair), CEO, CFO, Head of People and Communication, Head of
Strategy and Sustainability and the Head of Internal Audit, with the SVP,
Ethics and Compliance being the secretary. The Ethics and Compliance
Management Committee shall convene at least four times every year.
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
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Unaudited 33
Ethics and Compliance
Stora Enso is committed to taking responsibility for its actions, to
complying with all applicable laws and regulations wherever it operates,
and to creating and maintaining ethical relationships with its customers,
suppliers and other stakeholders. The Stora Enso Code is a single set of
values defined for all employees to provide guidance on the Company’s
approach to ethical business practices, environmental values, and human
and labour rights. These same values are applied wherever Stora Enso
operates. The Business Practice Policy complements the Code, and sets
further out Stora Enso’s approach to ethical business practices and
describes the processes for reporting on violations thereof. Continuous e-
learning, communication, face-to-face training, and sign-off are
organised in order to ensure that these are part of the everyday decision-
making and activities at Stora Enso.
The Company has established divisional compliance forums to assess the
risk and monitor compliance in all operational activities. The divisions use a
tool called the Ethics and Compliance Self-Assessment Tool (T.E.S.T.) to give
them a better overview of the progress their units are making in policy
implementation, compliance measures taken, and possible gaps and risks
in compliance. The results of the T.E.S.T. are covered in the divisional
compliance forums and in the development of appropriate action plans
and follow-up.
Stora Enso’s employees are encouraged to report any suspected cases of
misconduct or unethical behaviour to their own supervisor, or to People
and Culture or Legal functions. Stora Enso uses an additional external
service, the reporting channel Speak Up, through which employees and
any third party globally can anonymously report potential non-
compliance cases by phone, mail, or online. This service, which covers all of
Stora Enso’s units, is available 24/7. All cases are upon completion reported
to and closed by the Disciplinary Committee. The Disciplinary Committee
consists of the General Counsel, the Head of People and Communication,
the SVP, Ethics and Compliance and the Investigation Manager being the
secretary. All cases are also reported to the Board of Directors’
Sustainability and Ethics Committee and in cases related to fraud or the
integrity of financial reporting, also to the Financial and Audit Committee.
Insider administration
The Company complies with the EU and Finnish insider regulation as well
as the guidelines of Nasdaq Helsinki Oy. The Company’s internal insider
guidelines are published and distributed throughout the group. Stora
Enso’s legal function and the General Counsel are responsible for the
procedures relating to inside administration, including monitoring
compliance with applicable regulation, the keeping of inside lists, and
internal training. The Company has established an Inside Committee
composed of the CEO, CFO as well as representatives of Strategy and
Sustainability, IR and Legal for the purpose of continuously reviewing
pending projects and the existence of inside information in the Company.
Persons discharging managerial responsibilities (PDMR’s) in Stora Enso are
the members of the Board, the CEO and the CFO, as well as other members
of the Group Leadership Team (GLT). PDMR’s, as well as their closely related
persons, are subject to a duty to notify the Company and the Finnish
Financial Supervisory Authority of all transactions with the securities of the
Company.
The Company also keeps a list of persons that are involved in the
preparation of interim reports and financial results, which is approved by
the General Counsel (Closed Period List). Persons included in the list are,
e.g., members of the Division management teams, key business leaders in
the Divisions, members of Investor Relations, as well as the heads and
certain team members of Treasury, Group Accounting and Reporting
and Legal.
Persons who participate in the development and preparation of a project
that constitutes inside information, are considered project specific insiders.
A separate project-specific insider register is established when required by
the decision of the General Counsel.
The insider guidelines do not permit Stora Enso PDMR’s or persons involved
in the preparation of interim reports or financial results and entered into
the Closed Period List to buy or sell any of the Company’s securities (i.e.,
shares or listed bonds) during the closed period defined below or when
they possess information that could have a material impact on the Stora
Enso share price.
Closed period
Stora Enso’s closed period starts when the reporting period ends or 30
days prior to the announcement of the results, whichever is earlier, and
lasts until the results are announced. The dates are published in the
financial calendar at storaenso.com/calendar.
During the closed periods, Stora Enso PDMR’s or persons entered into the
Company’s Closed Period List are not allowed to trade in Company
securities.
Guidelines for Related Party Transactions
The principles applicable to the monitoring of Stora Enso related party
transactions are set out in Stora Enso’s Guideline for Related Party
Transactions. The Guideline defines Stora Enso related parties and sets out
the decision-making order and principles for monitoring related party
transactions, including a description of Stora Enso internal controls with
regards to related party transactions. Information on material
transactions with related parties is set out in note 6.3 of Stora Enso’s
consolidated financial statements.
Stora Enso business activities may include regular or less frequent
transactions with related parties. Transactions with related parties shall
always promote the purpose of the Company and be concluded on
market terms and in the interest of the Company, as well as in compliance
with prevailing regulation. Internal controls have been designed to ensure
that related party transactions are duly monitored and identified.
Related party transactions, which are part of the ordinary course of
business and undertaken on market terms are approved in accordance
with the Company’s internal guidelines. Any transaction which would not
meet these terms must be reported to the Financial and Audit Committee
and be approved by the Board of Directors. The Board of Directors is
responsible for overseeing the processes established for monitoring
related party transactions.
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
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Unaudited 34
Internal control and
risk management related
to financial reporting
Internal control over financial reporting
The system of internal control related to financial reporting in the Stora
Enso group is based upon the framework issued by the Committee of
Sponsoring Organisations (COSO) and comprises five principal
components of internal control: control environment, risk assessment,
control activities, information and communication, and monitoring.
The internal controls related to financial reporting are designed to provide
reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements in accordance with applicable
laws and regulations, generally accepted accounting principles, and other
requirements for listed companies. Stora Enso’s internal control framework
over financial reporting is documented in the minimum internal control
requirements and applied for all business units and Group functions. In
2024, Stora Enso created a new framework for sustainability reporting,
which is further described in the Sustainability Statement section (ESRS 2
GOV-5).
Control environment
Stora Enso’s control environment sets the tone of the organisation
providing the company purpose and values, policies, processes and
structures as a foundation for carrying out internal control across the
organisation.
The Board, supported by the Financial and Audit Committee, has the
overall responsibility for setting up an effective system of internal control
and risk management. Responsibility for maintaining effective risk
management and internal controls over financial reporting is delegated to
the CEO. The GLT and senior management issue corporate guidelines in
accordance with Stora Enso’s policy management process. These
guidelines stipulate responsibilities and authority and constitute the
control environment for specific areas, such as legal, sustainability, people
and culture, finance and sourcing and logistics. Internal control
responsibilities have been described in Stora Enso’s Internal Control Policy
which also outlines the responsibilities of the first and second line of
defence. Internal control is divided into Group and division functions. Group
Internal Control, under the supervision of CFO and Group Controller, is
responsible for internal control governance, processes, tools and internal
control reporting, whereas division internal control functions are
responsible for executing the internal control processes in divisions.
Divisions, various support and service functions are accountable for
operating effective internal controls.
Risk assessment
Stora Enso’s management specifies objectives relating to the preparation
of financial statements. The Company applies a process to manage risks
by identifying, assessing and responding to risks over significant financial
statement accounts and disclosures based on the overall materiality. The
assessment of risks includes risks related to fraud and irregularities as well
as the risk of loss or the misappropriation of assets.
Control activities
Stora Enso’s control activities are the policies, guidelines, procedures and
organisational structures in place to ensure that management directives
are carried out and that necessary action is taken to address risks related
to the achievement of objectives relating to financial reporting. Stora
Enso’s minimum internal control requirements are aimed at preventing,
detecting, and correcting material accounting and disclosure errors and
irregularities and are performed on all company levels. They include a
range of activities such as approvals, authorisations, verifications,
reconciliations, reviews of operating performance, the security of assets,
and the segregation of duties, as well as IT general controls.
Information and communication
The Company’s information and communication channels support the
completeness and correctness of financial reporting. For example, the
management communicates information about Stora Enso’s financial
reporting objectives, financial control requirements, policies and
procedures regarding accounting and financial reporting to all employees
concerned. The management also communicates regular updates and
briefings regarding changes in accounting policies and reporting and
disclosure requirements. Subsidiaries and operational units make regular
financial and management reports to the management, including the
analysis of and comments on financial performance, scenarios and risks.
The Board receives monthly financial reports. The Company has internal
and external procedures for the anonymous reporting of violations related
to accounting, internal controls, and auditing matters.
Monitoring
The Company’s financial performance is reviewed at each Board meeting.
The interim and annual financial statements and the Report of the Board
of Directors are reviewed by the Financial and Audit Committee and
approved by the Board.
The effectiveness of the process for assessing risks and the execution of
control activities are monitored continuously at various levels. Information
on the development of essential risk areas as well as executed and
planned activities in these areas are regularly communicated to the
Financial and Audit Committee. Monitoring involves both formal and
informal procedures applied by management, including reviews of results
which are compared against the set budgets, plans and key performance
indicators. Stora Enso Group Internal Control function monitors the control
design and control operating effectiveness and prepares quarterly
internal control report to the management.
In addition to Group Internal Control function, the Stora Enso Group Internal
Audit has an independent oversight role on internal control over financial
reporting governance. The Group Internal Audit regularly evaluates the
effectiveness and efficiency of Stora Enso’s governance, risk management
and system of internal control over financial reporting.
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
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Unaudited 35
Members of the Board of Directors
Kari Jordan
Born 1956. Male. M.Sc. (Econ.). Vuorineuvos (Finnish
honorary title).
Position
Chair of Stora Enso’s Board of Directors since March
2023. Member since March 2022. Chair of the People
and Culture Committee since March 2023. Member
since March 2022.
Board memberships
Chair of the Board of Outokumpu Oyj.
Principal work experience
and other information
President and CEO of Metsä Group 2006–2018. CEO of
Metsäliitto Cooperative 2004–2017. Various board
positions and senior executive management positions
in Nordea Group 1998–2004, Merita Bank 1995–2000
and OKOBANK 1987–1994 as well as other key positions
in the financial sector.
Total remuneration 2024, EUR¹
226,909
Meeting attendance
10/10
FAC attendance
PCC attendance
4/4 ●
SECo attendance
Shareholding in Stora Enso²
15,818 R shares
Independent member
Yes
Håkan Buskhe
Born 1963. Male. M.Sc. (Eng.), Licentiate of Engineering.
Position
Vice Chair of Stora Enso’s Board of Directors since
March 2021. Member since June 2020. Member of the
People and Culture Committee since March 2021.
Board memberships
Chair of the Board of Directors of IPCO AB. Vice Chair of
the Board of AB SKF. Member of the Board of Kopparfors
Skogar AB, The Grand Group, Navigare Ventures AB,
Qarlbo Energy AB, Swedish Defence University and
Industrikraft i Sverige AB.
Principal work experience
and other information
CEO of FAM AB. CEO and President of SAAB AB 2010–
2019 and E.ON Nordic 2008–2010. Executive positions in
E.ON Sweden 2006–2008, CEO of the logistics
company Schenker North 2001–2006, as well as
several positions in Storel AB 1998–2001, Carlsberg A/S
1994–1998 and Scansped AB 1988–1994.
Total remuneration 2024, EUR¹
128,544
Meeting attendance
10/10
FAC attendance
PCC attendance
4/4 ▲
SECo attendance
Shareholding in Stora Enso²
15,912 R shares
Independent member
Yes/no³
Elisabeth Fleuriot
Born 1956. Female. M.Sc. (Econ.).
Position
Member of Stora Enso’s Board of Directors since April
2013. Member of the Financial and Audit Committee
since March 2019.
Board memberships
Chair of the Board of Foundation Caritas.
Principal work experience
and other information
Senior advisor at Astanor Venture Capital. President
and CEO of Thai Union Europe Africa 2013–2017. Senior
Vice President, Emerging Markets and Regional Vice
President, France, Benelux, Russia and Turkey, in
Kellogg Company 2001–2013. General Manager,
Europe, in Yoplait, Sodiaal Group 1998–2001. Several
management positions in Danone Group 1979–1997.
Total remuneration 2024, EUR¹
99,807
Meeting attendance
10/10
FAC attendance
7/7 ▲
PCC attendance
SECo attendance
Shareholding in Stora Enso²
35,506 R shares
Independent member
Yes
Helena Hedblom
Born 1973. Female. M.Sc. (Material Tech.).
Position
Member of Stora Enso’s Board of Directors since
March 2021. Member of the Sustainability and Ethics
Committee since March 2021.
Board memberships
Member of the Board of Wallenberg Investments AB.
Principal work experience
and other information
President and CEO of Epiroc since 2020. Prior to her
current position she was Senior Executive Vice
President Mining and Infrastructure at Epiroc. Various
General Management and Research and
development positions in Atlas Copco, since 2017
President for Atlas Copco’s Mining and Rock
Excavation Technique business area.
Total remuneration 2024, EUR¹
90,434
Meeting attendance
10/10
FAC attendance
PCC attendance
SECo attendance
6/6 ▲
Shareholding in Stora Enso²
8,994 R shares
Independent member
Yes
FAC
Financial and Audit Committee
PCC
People and Culture Committee
SECo
Sustainability and Ethics Committee
● Chair ▲ Member
1 Detailed description of remuneration for Board and
Committee memberships as decided by the AGM in 2024 can
be found in the Remuneration Report.
2 Shares held by Board members and related parties.
3 Håkan Buskhe is independent of the company but not of its
significant shareholders due to his position as the CEO of
FAM AB.
The independence is evaluated in accordance with
Recommendation 10 of the Finnish Corporate Governance Code
2025. The full recommendation can be found at cgfinland.fi. A
significant shareholder according to the recommendation is a
shareholder that holds at least 10% of all company shares or the
votes carried by all the shares or a shareholder that has the
right or the obligation to purchase the corresponding number
of already issued shares.
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Unaudited 36
Astrid Hermann
Born 1973. Female. B.Sc. (Business and MBA).
Position
Member of Stora Enso’s Board of Directors since March
2023. Member of the Financial and Audit Committee
since March 2023.
Board memberships
—
Principal work experience
and other information
CFO of Beiersdorf AG since 2021. Prior to that several
managerial finance roles at Colgate-Palmolive 2004–
2020 and at The Clorox Company 1997–2004.
Total remuneration 2024, EUR¹
99,807
Meeting attendance
10/10
FAC attendance
7/7 ▲
PCC attendance
SECo attendance
Shareholding in Stora Enso²
5,477 R shares
Independent member
Yes
Christiane Kuehne
Born 1955. Female. LL.M., B.B.A.
Position
Member of Stora Enso’s Board of Directors since April
2017. Chair of the Sustainability and Ethics Committee
since March 2019.
Board memberships
Member of the Board of James Finlays Ltd and
Foundation Pierre du Bois.
Principal work experience
and other information
Operative roles within the Nestlé Group 1977–2015. Her
last operative role at Nestlé was as Senior Vice
President Strategic Business Unit Food with strategic
responsibility for the food business of Nestlé at global
level.
Total remuneration 2024, EUR¹
95,069
Meeting attendance
10/10
FAC attendance
PCC attendance
SECo attendance
6/6 ●
Shareholding in Stora Enso²
20,067 R shares
Independent member
Yes
Richard Nilsson
Born 1970. Male. B.Sc. (BA and Econ.).
Position
Member of Stora Enso’s Board of Directors since April
2014. Chair of the Financial and Audit Committee since
April 2016 and member since April 2015. Member of the
Sustainability and Ethics Committee since March 2024.
Board memberships
Member of the Board of IPCO AB and group
companies, Cinder Invest AB, AB SKF and Tbox Sweden
AB. Member of the supervisory Board of GROPYUS AG.
Principal work experience
and other information
Investment Director at FAM AB since 2022. Investment
Manager at FAM AB 2008–2022. Pulp & paper research
analyst at SEB Enskilda 2000–2008, Alfred Berg 1995–
2000 and Handelsbanken 1994–1995.
Total remuneration 2024, EUR¹
113,712
Meeting attendance
10/10
FAC attendance
7/7 ●
PCC attendance
SECo attendance
3/3³ ▲
Shareholding in Stora Enso²
32,609 R shares
directly, 127 A
shares and 236 R
shares through
related persons
(spouse)
Independent member
Yes/no⁴
Reima Rytsölä
Born 1969. Male. M.Soc.Sc. (Social Sciences, Econ.)
Position
Member of Stora Enso’s Board of Directors since March
2024. Member of the People and Culture Committee
since March 2024.
Board memberships
Member of the Board of Metso Oyj and Nokian
Renkaat Oyj.
Principal work experience
and other information
CEO of Solidium Oy since 2022. Deputy CEO and Chief
Investment Officer at Varma Mutual Pension Insurance
Company 2014–2022. Various positions in Pohjola Bank,
amongst others as Senior Executive Vice President,
Head of Banking 2008–2013.
Total remuneration 2024, EUR¹
90,434
Meeting attendance
8/8⁵
FAC attendance
PCC attendance
2/3⁶ ▲
SECo attendance
Shareholding in Stora Enso²
2,638 R shares
Independent member
Yes/no⁷
FAC
Financial and Audit Committee
PCC
People and Culture Committee
SECo
Sustainability and Ethics Committee
● Chair ▲ Member
1 Detailed description of remuneration for Board and
Committee memberships as decided by the AGM in 2024 can
be found in the Remuneration Report.
2 Shares held by Board members and related parties.
3 Meetings attended out of the meetings held after election as
SECO member.
4 Richard Nilsson is independent of the company but not of its
significant shareholders due to his employment at FAM AB.
5 Meetings attended out of the meetings held after election as
Board member.
6 Meetings attended out of the meetings held after election as
PCC member.
7 Reima Rytsölä is independent of the company but not of its
significant shareholders due to his position as the CEO of
Solidium Oy.
The independence is evaluated in accordance with
Recommendation 10 of the Finnish Corporate Governance Code
2025. The full recommendation can be found at cgfinland.fi. A
significant shareholder according to the recommendation is a
shareholder that holds at least 10% of all company shares or the
votes carried by all the shares or a shareholder that has the
right or the obligation to purchase the corresponding number
of already issued shares.
Antti Mäkinen was Member of Stora Enso’s Board of Directors
since March 2018 until his resignation on 20 March 2024. Mäkinen
has participated in all Board and relevant Committee meetings
held during 2024 prior to his resignation. He was independent of
the company and the significant shareholders.
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Unaudited 37
Members of the Group Leadership Team (31 December 2024)
Hans Sohlström
Born 1964. Male. M.Sc. (Tech.), M.Sc. (Econ.)
Position
President and Chief Executive Officer (CEO).
Member of the GLT since 2023. Joined the
company in 2023.
Board memberships, principal work
experience and other information
Member of the Board of Stora Enso Oyj 2021–
2023. President and CEO of Ahlstrom Oyj
2018–2022. President and CEO of Ahlström
Capital 2016–2018 and of Rettig Group Oy
2012–2016. Member of UPM-Kymmene
Corporation’s Group Executive Team since
2004, responsible for Marketing 2004–2007,
New Businesses and Biofuels 2007–2008, and
Corporate Relations and Development
2008–2012. In 1990–2004 several managerial
positions at UPM leading profit units, mills
and sales.
Shareholding in Stora Enso
100,620 R shares directly, 179 R shares
through related persons (spouse)
Tobias Bäärnman
Born 1977. Male. M.Sc. (Econ.).
Position
Executive Vice President, Strategy and
Sustainability. Member of the GLT since
2020. Joined the company in 2017.
Board memberships, principal work
experience and other information
SVP Controlling, Strategy and IT for
Consumer Board division 2017–2019. Prior to
that Finance Director at Iggesund
Paperboard and various positions at Statoil
and Procter and Gamble.
Shareholding in Stora Enso
8,449 R shares
Johanna Hagelberg
Born 1972. Female. M.Sc. (Industrial Eng. and
Mgmt) and M.Sc. (Eng. and Mgmt of
Manufacturing Systems).
Position
Executive Vice President, Biomaterials
Division. Member of the GLT since 2014.
Joined the company in 2013.
Board memberships, principal work
experience and other information
EVP, Sourcing and Logistics 2014–2021. SVP
Sourcing, Stora Enso Printing and Living 2013–
2014. Chief Procurement Officer at Vattenfall
AB 2010–2013. Prior to that leading Sourcing
positions at NCC, RSA Scandinavia and
within the Automotive Industry for Scania,
Saab and General Motors. Chair of the Board
of Veracel. Member of the Board of Höegh
Autoliners AS and Montes del Plata.
Shareholding in Stora Enso
40,825 R shares
Tuomas Hallenberg
Born 1971. Male. M.Sc. (Forestry), MBA.
Position
Executive Vice President, Forest Division,
Country Manager Finland. Member of the
GLT since 15 October 2024. Joined the
company 15 October 2024.
Board memberships, principal work
experience and other information
SVP, Property Development and Renewables
at Metsähallitus (the Finnish national forest
company) 2020–2024. Prior to that several
leadership roles at Metsähallitus since 2014.
Various leadership and management roles
at UPM, mainly in the wood sourcing and
forest operations 1998–2014. Member of the
Board of the Defence Guilds’ Federation of
Finland. Member of the Board of Finnish
Forest Industries Federation and member of
the Business Council of International
Chamber of Commerce Finland as of 1
January 2025.
Shareholding in Stora Enso
0
Hannu Kasurinen
Born 1963. Male.
Position
Executive Vice President, Packaging
Materials Division. Member of the GLT since
2019. Joined the company in 1993.
Board memberships, principal work
experience and other information
Several leadership positions in Stora Enso,
including EVP and SVP, Liquid Packaging and
Carton Board in Consumer Board Division,
Group Treasurer, SVP of Strategy and EVP of
Wood Products Division.
Shareholding in Stora Enso
62,415 R shares
Katariina Kravi
Born 1967. Female. LL.M., Trained on the Bench.
Position
Executive Vice President, People and
Communication. Member of the GLT since
2020. Joined the company in 2020.
Board memberships, principal work
experience and other information
EVP, HR and Chief People and Culture Officer
at Tieto Oyj 2012–2020. Prior to that several
HR management positions at Nokia. Vice
Chair of the Board of Elisa Oyj. Member of the
supervisory board of Varma Mutual Pension
Insurance Company.
Shareholding in Stora Enso
16,175 R shares
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Unaudited 38
Per Lyrvall
Born 1959. Male. LL.M.
Position
Country Manager Sweden since 2013.
Member of the GLT since 2012. Joined the
company in 1994.
Board memberships, principal work
experience and other information
EVP, Forest Division 2022–14.10.2024. EVP,
Legal, General Counsel 2008–2022. Legal
Counsel 1994–2008. Prior to joining Stora
Enso legal positions at Swedish courts, law
firms and Assi Domän. Member of the Board
of Antidoping Sverige AB and the Swedish
Forest Industry Association
(Skogsindustrierna).
Shareholding in Stora Enso
89,368 R shares directly, 1,257 R shares
through related persons (spouse)
Micaela Thorström
Born 1976. Female. LL.M.
Position
Executive Vice President, Legal and General
Counsel. Member of the GLT since 2023.
Joined the company in 2015.
Board memberships, principal work
experience and other information
VP Group Legal 2022–2023. Legal Counsel
2015–2022. Prior to joining Stora Enso several
senior-level positions at Finnish companies
and law firms such as
PricewaterhouseCoopers, Hannes Snellman,
Lindholm Wallgren Attorneys and Roschier.
Member of the Board of Securities Market
Association. Member of the Nomination
Committee of Finnish Fair Foundation.
Shareholding in Stora Enso
813 R shares
Lars Völkel
Born 1975. Male. M.Sc. (BA).
Position
Executive Vice President, Wood Products
Division. Member of the GLT since 2020.
Joined the company in 2020.
Board memberships, principal work
experience and other information
CEO of Ambibox GmbH 2018–2020. CEO of
Franke Kitchen Systems 2014–2017. EVP Luxury
retail & CEO of Poggenpohl at Nobia 2011–
2014. Has held various managerial positions
at Electrolux incl. VP Western Europe.
Shareholding in Stora Enso
25,801 R shares
Carolyn Wagner
Born 1968. Female. Grad. Eng. (Packaging
Technology)
Position
Executive Vice President, Packaging
Solutions Division. Member of the GLT since 1
November 2024. Joined the company 1
November 2024.
Board memberships, principal work
experience and other information
Divisional CEO of the Packaging Division at
the German Klingele Paper & Packaging
Group 2021–2024. Prior to that several senior
positions at other corrugated packaging
companies, amongst others, DS Smith and
SCA.
Shareholding in Stora Enso
0
Seppo Parvi, CFO and Deputy CEO, Country
Manager Finland was a member of GLT until 31
October 2024. Pasi Kyckling, Acting CFO 1 November
2024–12 January 2025 was not a member of GLT.
Niclas Rosenlew started in his position as new CFO
and GLT member on 13 January 2025.
Ad Smit, EVP Packaging Solutions was a member of
GLT until 31 October 2024.
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Unaudited 39
Appendix 1
Due to differences between Swedish and Finnish legislation, governance
code rules and corporate governance practices Stora Enso’s Corporate
Governance deviates in the following aspects from the Swedish Corporate
Governance Code:
Rule 1.4 The company’s nomination committee is to propose a chair for
the annual general meeting. The proposal is to be presented in the notice
of the meeting.
• According to Finnish annual general meeting (AGM) practice, the Chair
of the Board of Directors opens the meeting and proposes the chair for
the AGM. The proposed chair is normally an attorney-at-law.
Rule 2.1 The nomination committee is also to make proposals on
the election and remuneration of the statutory auditor.
• According to the Finnish Code, the Financial and Audit Committee shall
make a recommendation on the auditor election for the Board, which
shall give its proposal on the matter to the AGM.
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Unaudited 40
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Unaudited 41
Shareholders
Stora Enso ensures that all material information that has an impact on
Stora Enso’s share price is simultaneously available to the general public
and financial community in order to ensure the right share price level in
relation to the company’s history, assets and future prospects. In its
engagement with the capital markets, Stora Enso supports the brand
with accurate, consistent and credible financial information.
Information for shareholders
42
Stora Enso in the capital markets
43
Shares and shareholders
43
Debt investors
49
Stora Enso as a taxpayer
50
Information for shareholders
Annual General Meeting (AGM)
Stora Enso Oyj’s Annual General Meeting (AGM) will be held on Thursday 20
March 2025 at 16:00 EET at Marina Congress Center in Helsinki.
Shareholders are invited to a Q&A session with Stora Enso’s President and
CEO Hans Sohlström and CFO Niclas Rosenlew at Marina Congress Center,
prior to the AGM. The event will take place from 14:30 to 15:30 EET. Please
note that this event is not part of the AGM and will be conducted in Finnish,
with simultaneous interpretation into English.
Detailed information on how to register for the Annual General Meeting
(AGM) and vote in advance is available on Stora Enso’s website at
storaenso.com/agm.
AGM and dividend in 2025
10 March
Record date for AGM
20 March
Annual General Meeting (AGM)
24 March
Record date for dividend (first instalment)
2 April
Dividend payment (first instalment)
25 September
Record date for dividend (second instalment)
2 October
Dividend payment (second instalment)
Dividend
The Board of Directors proposes to the AGM that a dividend of EUR 0.25 per
share to be distributed on the basis of the balance sheet adopted for the
year ending 31 December 2024. The Board of Directors proposes that the
dividend be paid in two instalments. The dividend payable on shares
registered with Euroclear Sweden will be forwarded by Euroclear Sweden
AB and paid in Swedish crowns. The dividend payable to ADR holders will
be forwarded by Citibank N.A. (Citi) and paid in US dollars.
Publications dates for 2025
11 February
Interim report for October-December and full-year
report for 2024
13 February
Annual Report 2024
25 April
Interim report for January-March 2025
23 July
Half-year report for January–June 2025
23 October
Interim report for January–September 2025
Distribution of financial information
Stora Enso’s Annual Report in English can be downloaded as a pdf file at
storaenso.com/annualreport.
The official financial statements in Finnish are available at the same
address. The governance and remuneration sections are also available in
Finnish. The interim, half-year and full-year reports are published in English
and Finnish at storaenso.com/press.
Information for holders of American Depositary
Receipts (ADRs)
The Stora Enso dividend reinvestment and direct purchase plan is
administered by Citibank N.A. The plan makes it easier for existing ADR
holders and first-time purchasers of Stora Enso ADRs to increase their
investment by reinvesting cash distributions or by making additional cash
investments. The plan is intended for US residents only. Further information
on the Stora Enso ADR programme is available at citi.com/DR.
Contact information for Stora Enso ADR holders
Citibank Shareholder Services
Computershare
P.O. Box 43077
Providence, Rhode Island 02940-3077
Email: citibank@shareholders-online.com
Toll-free number: (877)-CITI-ADR
Direct dial: (781) 575-4555
Investor relations contact
storaenso.com/investors
investor.relations@storaenso.com
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Unaudited 42
Stora Enso in the capital markets
Shares and shareholders
Shares and voting rights
The shares of Stora Enso Oyj are divided into A and R shares, which entitle
holders to the same dividend but different voting rights. Each A share and
every ten R shares carry one vote at a shareholders’ meeting. However,
each shareholder has at least one vote. As at 31 December 2024, Stora
Enso had 175,664,079 A shares and 612,955,908 R shares in issue, of which
the Company held no A shares or R shares. The total number of Stora Enso
shares in issue was 788,619,987 and the total number of votes was
236,959,669.
Share listings
Stora Enso shares are listed on the Nasdaq Helsinki and the Nasdaq
Stockholm. Stora Enso shares are quoted in Helsinki in euros (EUR) and in
Stockholm in Swedish crowns (SEK).
American Depositary Receipts (ADRs)
Stora Enso has a sponsored Level I American Depositary Receipts (ADR)
facility. Stora Enso ADRs are traded over-the-counter (OTC) in the USA. The
ratio between Stora Enso ADRs and R shares is 1:1, i.e. one ADR represents
one Stora Enso R share. Citibank, N.A. acts as the depositary bank for the
Stora Enso ADR programme. The trading symbols of the ADRs and Ordinary
Shares are SEOAY, SEOFF, SEOJF. The CUSIP number is 86210M106.
Share registers
The Company’s shares are entered in the Book-Entry Securities System
maintained by Euroclear Finland Oy, which also maintains the official share
register of Stora Enso Oyj. As at 31 December 2024, 788,619,987 of the
Company’s shares including both A and R shares were registered in
Euroclear Finland, 63,697,486 A and R shares in Euroclear Sweden AB and
12,704,576 shares in ADR form at Citibank, N.A.
Distribution by book-entry system, 31 December 2024
Number of shares
Total
A shares
R shares
Euroclear Finland Oy
788,619,987
175,664,079
612,955,908
Euroclear Sweden AB
1
63,697,486
4,095,266
59,602,220
Citi administered ADRs
1
12,704,576
-
12,704,576
Total
788,619,987
175,664,079
612,955,908
1 Shares registered in Euroclear Sweden and ADRs are both nominee registered in Euroclear Finland.
Trading codes and currencies
Helsinki
Stockholm
OTC
A share
STEAV
STE A
-
R share
STERV
STE R
-
ADRs
-
-
SEOAY
Segment
Large Cap
Large Cap
-
Sector
Materials
Materials
-
Currency
EUR
SEK
USD
ISIN, A share
FI0009005953
FI0009007603
ISIN, R share
FI0009005961
FI0009007611
CUSIP
-
-
86210M106
Reuters
STERV.HE
Bloomberg
STERV FH Equity
Stora Enso’s activities during 2024
Stora Enso’s Investor Relations activities in 2024 focused on promoting a fair
valuation of the Company and ensuring continued access to funding
sources in the equity markets. The Investor Relations (IR) team provided
timely and accurate information on the development of the Company’s
business operations, strategy, performance, markets, and financial position.
Throughout the year, the IR team conducted numerous individual and
group meetings, both in person and virtually, with equity investors. These
meetings were separately and with the senior management team
members and other experts at Stora Enso. The team also maintained
regular contact with equity research analysts at investment banks and
brokerage firms. Additionally, the team organised site visits to Stora Enso
mills in Sweden, and Finland. To further engage with investors, the senior
management and the IR team members gave presentations at virtual and
live investor conferences in the Nordics, Continental Europe, Latin America
and the United Kingdom.
Overall, Stora Enso’s Investor Relations activities in 2024 successfully
maintained strong relationships with investors and ensured continued
access to funding sources, while also promoting the Company’s
commitment to sustainability.
Disclosure of financially material ESG topics for investors
Stora Enso’s reporting on the material ESG topics is prepared according to
several internationally recognised frameworks.
The Sustainability Statement, published as part of the Report of the Board
of Directors, is prepared in accordance with the Corporate Sustainability
Reporting Directive and the European Sustainability Reporting Standards.
The statement provides a comprehensive overview of the risks and
opportunities arising from social, environmental, and governance issues,
and on the impact of the Group’s activities on people and the
environment. Stora Enso reports the share of its Taxonomy-eligible and
Taxonomy-aligned activities in the ‘EU Taxonomy’ section of the
Sustainability Statement. Stora Enso has identified six eligible activities to
report in the EU Taxonomy.
Stora Enso reporting on the SASB’s Sustainability Accounting Standards for
Forest Management and Containers & Packaging relate to topics that are
considered to be financially material in the industry. These include topics
such as sustainable forest management and forest certification,
greenhouse gas emissions, air quality, energy management, water
management, product safety, product life cycle management, and supply
chain management. For further details, see the SASB content index.
The Task-force on Nature-related Financial Disclosures (TNFD) provides a
framework for risk management and disclosure to identify, assess,
respond to, and disclose nature-related issues. In 2024, Stora Enso became
a TNFD Early Adopter and has published its first TNFD-aligned report for
the financial year 2024. For further details, see TNFD.
Guidance policy
NB: As a change to prior practices, Stora Enso will continue to provide
comments on its outlook but not a specific annual EBIT guidance. This
aligns with international practices.
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Unaudited 43
Closed period
Stora Enso’s closed period start when the reporting period ends or 30
days prior to the announcement of the results, whichever is earlier, and
lasts until the day of the announcement of the results. The dates are
published in the financial calendar at storaenso.com/investors. During
closed periods, Stora Enso PDMR’s or persons entered into the
Company’s Closed Period List are not allowed to trade in the Company’s
securities. In addition, there are no communications in regards to the
Group’s financials and/or financially related topics with the capital
markets or financial media during the closed period. This applies to
meetings, telephone conversations or other means of communication.
Shareholders
At the end of 2024, the Company had approximately 108,290 registered
shareholders, including about 51,361 Swedish and 56,020 Finnish
shareholders and 909 ADR holders. Each nominee register is entered in the
share register as one shareholder.
The free float of shares, excluding shareholders with holdings of more than
5% of shares or votes, is approximately 600 million shares, corresponding
to 79% of the total number of shares issued. The largest shareholder in
the Company is Solidium Oy based in Finland.
Shareholdings of other Group-related bodies
On 31 December 2024, E.J. Ljungberg’s Foundation owned 1,780,540 A shares
and 2,336,224 R shares, Mr. and Mrs. Ljungberg’s Testamentary Foundation
owned 5,093 A shares and 13,085 R shares and Bergslaget’s Healthcare
Foundation owned 626,269 A shares and 1,609,483 R shares.
Ownership distribution, 31 December 2024
% of shares
% of votes
% of shareholders
Solidium Oy
1
10.7%
27.4%
0.0%
FAM AB
2
10.2%
27.4%
0.0%
Social Insurance Institution
of Finland (KELA)
3.0%
10.1%
0.0%
Finnish institutions
(excl. Solidium and KELA)
12.2%
8.6%
2.5%
Swedish institutions (excl. FAM)
1.6%
1.0%
1.1%
Finnish private shareholders
3.7%
2.3%
49.4%
Swedish private shareholders
3.2%
2.1%
45.3%
ADR holders
1.6%
0.5%
0.8%
Under nominee names
53.7%
20.7%
1.0%
1 Entirely owned by the Finnish State
2 As confirmed to Stora Enso
Ownership distribution, % of shares held
Solidium Oy¹, 10.7%
FAM AB², 10.2%
Social Insurance Institution of Finland (KELA), 3.0%
Finnish institutions (excl. Solidium and KELA), 12.2%
Swedish institutions (excl. FAM), 1.6%
Finnish private shareholders, 3.7%
Swedish private shareholders, 3.2%
ADR holders, 1.6%
Under nominee names, 53.7%
1 Entirely owned by the Finnish State
2 As confirmed to Stora Enso
Major shareholders as at 31 December 2024
By voting power
A shares
R shares
% of shares
% of votes
1
Solidium Oy¹
62,655,036
21,792,540
10.7%
27.4%
2
FAM AB²
63,123,386
17,000,000
10.2%
27.4%
3
Social Insurance Institution
of Finland (KELA)
23,825,086
-
3.0%
10.1%
4 Ilmarinen Mutual Pension
Insurance Company
4,159,992
18,670,446
2.9%
2.5%
5 Varma Mutual Pension
Insurance Company
5,163,018
1,140,874
0.8%
2.2%
6 MP-Bolagen i Vetlanda AB²
4,885,000
1,000,000
0.7%
2.1%
7
Elo Mutual Pension Insurance
Company
2,010,000
10,087,000
1.5%
1.3%
8 E.J. Ljungberg’s Foundation
1,780,540
2,336,224
0.5%
0.9%
9 Bergslaget’s Healthcare
Foundation
626,269
1,609,483
0.3%
0.3%
10 The State Pension Fund (Finland)
-
5,600,000
0.7%
0.2%
11
Lannebo fonder
-
4,904,100
0.6%
0.2%
12 Unionen (Swedish trade union)
-
4,800,000
0.4%
0.2%
13 OP Finland Fund
-
3,041,759
0.4%
0.1%
14 Nordea Finnish Stars Fund
-
3,017,418
0.4%
0.1%
15 The Society of Swedish
Literature in Finland
-
3,000,000
0.4%
0.1%
Total
168,228,327
97,999,844
33.8%
75.1%
Nominee-registered shares³
75,519,278
478,429,538
70.3%
51.6%
1 Entirely owned by the Finnish State
2 As confirmed to Stora Enso
3 According to Euroclear Finland. As some of the shareholdings on the list are nominee registered, the
percentage figures do not add up to 100%.
The list has been compiled by the Company on the basis of shareholder information obtained directly from the
large shareholders, and from Euroclear Finland, Euroclear Sweden and a database managed by Citibank, N.A.
This information includes directly registered holdings, thus certain holdings (which may be substantial) of shares
held in nominee or brokerage accounts cannot be included. The list is therefore incomplete.
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Unaudited 44
Share capital
On 31 December 2024, the Company’s fully paid-up share capital entered
in the Finnish Trade Register was EUR 1,342 million. The current accountable
par of each issued share is EUR 1.70.
Conversion
According to the Articles of Association, holders of Stora Enso A shares
may convert these into R shares at any time. The conversion of shares is
voluntary. The conversions of a total of 566,837 A shares into R shares were
recorded in the Finnish Trade Register during the year 2024.
Equity per share
EUR
2020
2021
2022
2023
2024
0
2
4
6
8
10
12
14
16
18
Dividend per share
EUR
2020
2021
2022
2023
2024¹
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
1 Board of Directors’ proposal to the AGM for distribution of dividend. The Board of Directors proposes that the
dividend be paid in two instalments, during the second and fourth quarter of 2025.
Changes in share capital 2015–2024
No. of A
shares
issued
No. of R
shares
issued
Total no.
of shares
Share
capital (EUR
million)
Stora Enso Oyj, 31 Dec 2015
176,532,090
612,087,897
788,619,987
1,342
Conversion of A shares into R
shares, Dec 2015–Nov 2016
-25,000
25,000
-
-
Stora Enso Oyj, 31 Dec 2016
176,507,090
612,112,897
788,619,987
1,342
Conversion of A shares into R
shares, Dec 2016–Nov 2017
-114,770
114,770
-
-
Stora Enso Oyj, 31 Dec 2017
176,392,320
612,227,667
788,619,987
1,342
Conversion of A shares into R
shares, Dec 2017–Nov 2018
-79,648
79,648
-
-
Stora Enso Oyj, 31 Dec 2018
176,312,672
612,307,315
788,619,987
1,342
Conversion of A shares into R
shares, Dec 2018–Nov 2019
-55,838
55,838
-
-
Stora Enso Oyj, 31 Dec 2019
176,256,834
612,363,153
788,619,987
1,342
Conversion of A shares into R
shares, Dec 2019–Nov 2020
-2,419
2,419
-
-
Stora Enso Oyj, 31 Dec 2020
176,254,415
612,365,572
788,619,987
1,342
Conversion of A shares into R
shares, Dec 2020–Nov 2021
-10,366
10,366
-
-
Stora Enso Oyj, 31 Dec 2021
176,244,049
612,375,938
788,619,987
1,342
Conversion of A shares into R
shares, Dec 2021–Nov 2022
-5,769
5,769
-
-
Stora Enso Oyj, 31 Dec 2022
176,238,280
612,381,707
788,619,987
1,342
Conversion of A shares into R
shares, Dec 2022–Nov 2023
-7,364
7,364
-
-
Stora Enso Oyj, 31 Dec 2023
176,230,916
612,389,071
788,619,987
1,342
Conversion of A shares into R
shares, Dec 2023–Nov 2024
-566,837
566,837
-
-
Stora Enso Oyj, 31 Dec 2024
175,664,079
612,955,908
788,619,987
1,342
For more historical data about the share capital, please visit storaenso.com/investors/shares.
Share price performance and volumes
Helsinki
The Stora Enso R (STERV) share price decreased by 24% during 2024 (5%
decrease in 2023). Over the same period, the OMX Helsinki Index decreased
by 7% (7% decrease in 2023) and the OMX Helsinki Basic Materials Index
decreased by 22% (3% decrease in 2023).
Stockholm
The Stora Enso R (STE R) share price decreased by 21% during 2024 (5%
decrease in 2023). Over the same period, the OMX Stockholm Index
increased by 6% (15% increase in 2023) and the OMX Stockholm Basic
Materials Index decreased by 10% (10% increase in 2023).
OTC
Stora Enso ADR (SEOAY) share price decreased by 27% during 2024 (1%
decrease in 2023). Over the same period, the Standard & Poor’s Global
Timber and Forestry Index decreased by 6% (11% increase in 2023).
The volume-weighted average price of R shares over the year was EUR 11.53
in Helsinki (EUR 11.93 in 2023), SEK 130.79 in Stockholm (SEK 136.88 in 2023) and
USD 12.58 on the OTC in the USA (USD 13.00 in 2023). Total market
capitalisation of the Company was EUR 8.3 billion (EUR 10.5 billion) at
the end of 2024.
Share prices and volumes in 2024
Helsinki, EUR
Stockholm, SEK
OTC, USD
A share
14.00
160.50
High
R share
13.84
160.90
15.04
A share
9.10
102.00
Low
R share
9.12
104.10
9.47
A share
9.68
110.00
Closing, 31 Dec 2023
R share
9.72
111.50
10.12
A share
-23.8%
-21.8%
Change from previous year R share
-23.5%
-21.3%
-26.8%
A share
1,192,396
697,516
Cumulative trading
volume, no. of shares
R share
423,418,972
66,870,949
14,515,641
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Unaudited 45
Helsinki, Stora Enso A
Number of shares,
Share price
thousand
(EUR)
Volume
Monthly average share price
2020
2021
2022
2023
2024
0
500
1,000
1,500
2,000
2,500
0
5
10
15
20
25
Helsinki, Stora Enso R
Number of shares,
Share price
million
(EUR)
Volume
Monthly average share price
2020
2021
2022
2023
2024
0
20
40
60
80
100
0
4
8
12
16
20
Stockholm, Stora Enso R
Number of shares,
Share price
million
(SEK)
Volume
Monthly average share price
2020
2021
2022
2023
2024
0
10
20
30
40
0
50
100
150
200
New York, Stora Enso ADR
Number of shares,
Share price
million
(USD)
Volume
Monthly average share price
2020
2021
2022
2023
2024
0
1
2
3
4
0
6
12
18
24
Stora Enso R share vs Nasdaq Helsinki indices
1.1.2020 = 100
Stora Enso (EUR)
OMX Helsinki Basic Materials (EUR)
OMX Helsinki (EUR)
2020
2021
2022
2023
2024
50
75
100
125
150
Market capitalisation on Nasdaq Helsinki
EUR million
2020
2021
2022
2023
2024
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Unaudited 46
Stora Enso actively participates in the following ESG assessment schemes:
ESG rating
Stora Enso score /
best possible score
Rating compared to peers
CDP
Climate A-/A
Forest A/A
Water A-/A
Among the highest ranked in
the industry
FTSE Russell
4.4/5
Among the highest ranked in
the industry
ISS Corporate Rating
B/A+
Among the highest ranked in
the industry
ISS QualityScore
Governance 5/1*
Social 1/1*
Environment 2/1*
Above the industry average
MSCI
AAA/AAA
Among the highest ranked in
the industry
Sustainalytics
15.6/0**
Among the highest ranked in
the industry
VigeoEiris
71/100
Among the highest ranked in
the industry
*1 to 10 (1 indicating the lowest risk)
**0 to 100 (0 indicating the lowest risk)
Stora Enso is included in several stock market indices worldwide.
Stora Enso is also included in several stock market ESG indices worldwide.
These indices provide investors with a representation of the performance
of leading companies based on various categories and specific
ESG criteria.
Stora Enso is included in the following indices amongst others
OMX INDICES
STOXX INDICES
FTSE INDICES
MSCI INDICES
EURONEXT INDICES
SUSTAINABILITY INDICES
OMX Helsinki
EURO STOXX
FTSE RAFI All-World 3000
MSCI Finland
Euronext Europe 500
EURO STOXX Climate Transition
Benchmark
OMX Helsinki 25
EURO STOXX Mid
FTSE Developed Europe All Cap MSCI Europe
Euronext World
EURO STOXX Paris-Aligned
Benchmark
OMX Helsinki Large Cap
STOXX Developed World
FTSE Finland 25 Index
MSCI World
Euronext Developed Market
Euronext Climate Europe
OMX Helsinki Basic Materials
STOXX Developed Europe
MSCI World IMI
Euronext Low Carbon 300
World PAB
OMX Stockholm
STOXX Developed Nordic
MSCI ACWI
FTSE4Good Index
OMX Stockholm Large Cap
STOXX Global 3000
MSCI ACWI IMI
MSCI Acwi ESG Leaders
OMX Stockholm Basic
Materials
STOXX Nordic
MSCI Europe ESG Leaders
Nasdaq OMX Nordic 120
MSCI World Climate Change
MSCI World ESG Leaders
MSCI World SRI
OMX Sustainability Finland
STOXX Europe Sustainability
STOXX Global ESG Leaders
ISS STOXX World AC
Biodiversity
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Unaudited 47
Key share data 2015–2024, total operations (for calculations see Alternative performance measures)
According to Nasdaq Helsinki
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
Earnings per share, EUR
-0.17
-0.45
1.97
1.61
0.79
1.12
1.28
0.79
0.59
1.02
– diluted, EUR
-0.17
-0.45
1.97
1.61
0.79
1.12
1.28
0.79
0.59
1.02
– excl. FV, EUR
1
-0.56
-0.73
1.55
1.19
0.45
0.61
1.26
0.89
0.65
1.24
Equity/share, EUR
12.86
13.93
15.89
13.55
11.17
9.42
8.51
7.62
7.36
6.83
Dividend/share, EUR
2
0.25
0.20
0.60
0.55
0.30
0.30
0.50
0.41
0.37
0.33
Payout ratio excluding FV %
3
-44.6 %
-27.4 %
38.6
46.3
66.7
49.2
39.7
46.1
56.9
26.6
Dividend yield, %
A share
2.6
1.6
4.3
3.3
1.9
2.2
4.5
3.1
3.6
3.9
R share
2.6
1.6
4.6
3.4
1.9
2.3
5.0
3.1
3.6
3.9
Price/earnings ratio (P/E), excl. FV
A share
-17.3
-17.1
9.0
14.0
35.3
22.2
8.8
14.8
16.0
6.8
R share
-17.3
-17.2
8.5
13.6
34.8
21.2
8.0
14.9
15.7
6.8
Share prices for the period, EUR
A share
– closing price
9.68
12.45
13.90
16.60
15.90
13.55
11.05
13.20
10.40
8.40
– average price
11.54
12.82
16.61
16.68
12.06
12.88
16.36
11.93
8.50
8.87
– high
14.00
15.55
20.60
18.70
16.20
14.45
18.45
13.79
10.45
11.01
– low
9.10
11.00
13.40
14.45
9.26
10.85
10.75
10.26
6.56
6.70
R share
– closing price
9.72
12.53
13.15
16.14
15.65
12.97
10.09
13.22
10.21
8.39
– average price
11.53
11.93
16.12
15.70
11.52
11.05
14.61
11.54
7.88
8.70
– high
13.84
14.25
20.01
17.67
15.85
13.05
18.29
13.75
10.28
10.95
– low
9.12
10.11
12.66
13.67
7.25
9.10
9.92
9.70
6.50
6.58
Market capitalisation at year-end, EUR million
A share
1,700
2,194
2,450
2,926
2,802
2,388
1,948
2,328
1,836
1,483
R share
5,957
7,670
8,053
9,884
9,580
7,939
6,175
8,094
6,250
5,135
Total
7,657
9,864
10,503
12,809
12,383
10,328
8,123
10,422
8,085
6,618
Number of shares at the end of period, (thousands)
A share
175,664
176,231
176,238
176,244
176,254
176,257
176,313
176,392
176,507
176,532
R share
612,957
612,389
612,382
612,376
612,366
612,363
612,307
612,228
612,113
612,088
Total
788,620
788,620
788,620
788,620
788,620
788,620
788,620
788,620
788,620
788,620
Trading volume, (thousands)
A share
1,199
968
1,174
1,750
4,662
1,299
3,068
6,768
1,254
1,641
% of total number of A shares
0.7
0.5
0.7
1.0
2.6
0.7
1.7
3.8
0.7
0.9
R share
425,082
476,654
455,952
422,493
605,233
679,475
610,300
571,717
765,122
798,507
% of total number of R shares
69.3
77.8
74.5
69.0
98.8
111.0
99.7
93.4
125.0
130.5
Average number of shares (thousands)
basic
788,620
788,620
788,620
788,620
788,620
788,620
788,620
788,620
788,620
788,620
diluted
789,772
789,714
789,391
789,126
789,182
789,533
789,883
790,024
789,888
789,809
1 Earnings per share (EPS) excl. FV was added to the list of non-IFRS measures in 2020 replacing the key figure of EPS excl. IAC. Comparatives are recalculated for 2018-2019. For 2015–2017 table includes EPS excl. IAC figures.
2 Board of Directors’ proposal to the AGM for distribution of dividend for 2024. 3 Excluding IAC in 2011–2017 IAC = Items affecting comparability
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Unaudited 48
Debt investors
Funding strategy
Stora Enso’s funding strategy is based on the Group’s financial targets.
Stora Enso should have access to sufficient and competitively priced
funding at any time to be able to pursue its strategy and achieve its
financial targets. Stora Enso maintains consistent dialogue with fixed-
income community with informative and transparent communication and
meetings in conferences and roadshows. The Company’s Treasury
function is responsible for fixed income investor communication.
Funding is obtained in the currencies of the Group’s investments and
assets (primarily EUR, SEK, CNY and USD). Commercial paper markets are
used for short-term funding and liquidity management.
In 2024, the liquidity and funding position continued to be strong. Stora
Enso had approximately EUR 2.0 billion cash and cash equivalents at 31
December 2024. The Company also had in total EUR 800 million committed
undrawn credit facilities at year-end. Additionally, the Company has an
undrawn EUR 435 million loan commitment from European Investment
Bank and has access to EUR 830 million statutory pension premium loans
in Finland. Stora Enso has a good access to various funding sources.
Public debt structure as at 31 December 2024
EUR
USD
SEK
Public issues
EUR 500 million 2026
USD 300 million 2036
SEK 3500 million 2025
EUR 300 million 2027
SEK 2950 million 2027
EUR 300 million 2028
SEK 2750 million 2028
EUR 500 million 2029
EUR 500 million 2030
Private placements
EUR 125 million 2025
SEK 1000 million 2026
EUR 25 million 2027
SEK 425 million 2033
Debt programmes and credit facilities as at 31 December 2024
EUR
SEK
Commercial paper
programmes
Finnish Commercial Paper
Programme EUR 750 million
Swedish Commercial Paper
Programme SEK 10 000
million
EMTN (Euro Medium-Term
Note programme)
EUR 5 000 million
Back-up facility
EUR 700 million sustainability
linked revolving credit facility
2028
1
EUR 100 million Bilateral
Committed Credit Facility
2027 undrawn
1 Undrawn committed credit facility EUR 700 million. Part of the pricing for the facility agreement is based on
Stora Enso’s Science Based Targets to combat global warming by reducing greenhouse gases, including CO2.
Stora Enso has integrated sustainability agenda to its funding and
financial services. The Group has the long-term aim to secure funding
partners that have sustainability as a fundamental part of their agenda. It
aims to influence and develop the financial markets to ensure that
sustainability becomes an integral part of decisions and credit evaluation.
For more information, visit storaenso.com/investors.
Green bonds
In 2024, Stora Enso did not issue any bonds. Stora Enso has a Green and
Sustainability-Linked Financing Framework. The framework is based on
Stora Enso’s sustainability agenda and goals, driving the transformation
towards a circular bioeconomy.
The green financing element of the framework comprises the following six
eligible asset categories: sustainable forest management; sustainable
product processes, energy efficiency, renewable energy and waste to
energy, sustainable water management, and waste management and
pollution control. The categories are designed to promote the transition
towards a low-carbon and environmentally sustainable society in
accordance with Stora Enso’s sustainability agenda. The sustainability-
linked financing element specifies key performance indicators for
Stora Enso’s performance on climate change, biodiversity and circularity.
Read more about sustainable financing on Stora Enso’s website:
Sustainable finance.
Rating strategy
Stora Enso Group’s target is to have at least one public credit rating with
the ambition to remain investment grade and sustain such metrics
throughout business cycles. The present rating and outlook from Moody’s
and Fitch Ratings are shown below.
Ratings as at 31 December 2024
Rating agency
Long/short-term rating
Valid from
Fitch Ratings
BBB- (stable)
26 July 2024
Moody’s
Baa3 (stable) / P-3
21 November 2024
Stora Enso’s current credit ratings are: Baa3 with stable outlook from
Moody’s and BBB- with stable outlook from Fitch Ratings. Both ratings
correspond to an Investment Grade rating.
Stora Enso’s goal is to ensure that rating agencies continue to be
comfortable with Stora Enso’s strategy and performance. The Company’s
strategy is to achieve liquidity well in line with the comfort level of
the agencies. Review meetings are arranged with the Stora Enso
management annually, and regular contact is maintained with the
rating analysts.
Read more about debt and loans in note 5.3 Interest-bearing assets
and liabilities.
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Unaudited 49
Stora Enso as a taxpayer
Stora Enso aims to be transparent with respect to economic value
generation. For this purpose, Stora Enso makes a voluntary commitment to
provide information on the Group’s tax approach and details of the
corporate income taxes paid by the Group. Stora Enso follows the GRI 207
standard as a reference for its tax disclosure. This means that the Group
describes its tax policy and approach to tax and explains its processes
around tax governance, controls, and risk management. Moreover, Stora
Enso describes how it engages with stakeholders and deals with any
concerns there may be related to tax. The Group also discloses the
corporate income taxes paid and accrued, and other financial country-
by-country information.
Tax policy
The Stora Enso Tax Policy addresses the Group’s tax strategy, including
approach to tax, tax governance, compliance, tax risk management and
tax authority co-operation. The Tax Policy has been approved by the
President and CEO of Stora Enso and is reviewed annually. This report
discusses the principles of the Tax Policy.
Approach to tax
As a responsible taxpayer, Stora Enso is committed to observing the letter
and the spirit of applicable tax laws, rules and regulations, including
international transfer pricing guidelines and local legislation in all
jurisdictions where it conducts business activities or has otherwise any tax
obligation. In addition to legal and regulatory requirements, the tax
principles comply with Stora Enso’s values to ‘Lead’ and ‘Do what’s right’.
The strategic priorities of Stora Enso’s tax function are confirmed annually
by the Group CFO.
Stora Enso seeks to ensure that the tax strategy is aligned with the Group’s
business and commercial strategy. Stora Enso only undertakes tax
planning that is duly aligned to economic activity and does not take
aggressive tax planning positions. This means that all tax decisions are
made in response to commercial activity, and tax is one of many other
factors that are considered when making business decisions. Stora Enso
has an obligation to manage tax costs as part of the Company’s financial
responsibility to societies and shareholders. Stora Enso may therefore
respond to tax incentives and exemptions granted by governments on
reasonable grounds, and currently has operations in countries that offer
favourable tax treatments, where their location also is justified by sound
commercial considerations.
Stora Enso has operations in the following locations that offer favourable
tax treatments:
• The joint operation Montes del Plata operates a pulp mill in a Special
Economic Zone with favourable tax treatment in Uruguay. As of 2024 the
operations are subject to the global minimum tax requirement under
the OECD Pillar Two rules, with potential additional tax.
• Stora Enso’s two forestry companies in Guangxi, China are entitled to
exemption from corporate income tax from forestry income and value
added tax on their sales, and Stora Enso’s related industrial company is
entitled to reduced corporate income tax rate until 2025.
• Stora Enso conducts business, mainly consisting of sales support
services, in the United Arab Emirates, Singapore, and Hong Kong.
Tax governance, control, and risk management
Stora Enso acts, as part of protecting shareholder value, with integrity in all
tax matters. The Group’s Tax team, reporting to the Group CFO, works
closely with the businesses and other internal stakeholders to identify and
manage business and compliance tax risks to ensure a sustainable yet
business feasible platform for operations. The Group’s Tax team regularly
reports key tax matters to the Group management and the Finance and
Audit Committee of the Board of Directors.
Tax affairs are managed under an extensive set of Group policies and
guidelines. Internal stakeholders are continuously trained on tax-related
matters in order to enhance capabilities and improve overall tax
compliance and quality of tax reporting. Compliance processes are
subject to internal controls, and tax risks are annually reviewed as part of
the Group’s enterprise risk management process. The Tax team monitors
changes in tax legislation and regularly reviews tax affairs and risks with
stakeholders to ensure that Stora Enso can sufficiently identify, assess, and
mitigate tax risk.
In case employees have any concerns about unethical or unlawful
behaviour or the Company’s integrity, the anonymous Speak Up Hotline
can be used to report any suspected cases also regarding tax matters.
The Group’s tax disclosures are included in the assurance process of the
Annual Report. This ‘Stora Enso as a taxpayer’ report is subject to limited
assurance.
Stakeholder engagement
and concerns related to tax
Stora Enso’s commitment to tax transparency is also reflected in the
Group’s relationships with tax authorities and governments. Stora Enso
seeks to work positively, proactively and openly with tax authorities on a
global basis, utilising transparent advance processes to minimise
potential disputes. Stora Enso also works with government representatives,
mainly through associations, by providing corporate views and impacts at
request to aid law-making and implementation. Stora Enso readily
responds to investor enquiries, and constantly follows the development of
tax sustainability and transparency expectations.
Country-by-country reporting of income
taxes in 2024: How to read the report
The country-by country (CbC) data is reported along the line of the GRI
207-4 standard. However, while the reporting required in GRI 207-4 is based
on the data in Stora Enso’s consolidated Financial Statements, the
reporting is unconsolidated and does not fully reconcile with the
consolidated Financial Statements. The financial information in the CbC
report is the sum of the legal entities’ local standalone IFRS reported
balances in each country. Group level consolidation adjustments, such as
elimination of group internal transactions, are excluded. Due to this the
financial information is different than what is presented in the
consolidated financial statements for 2024.
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
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Unaudited 50
Country-by-country information for financial year 2024
Australia
96
3
0
0
32
50 Sales
China
709
-369
1
2
2,340
703 Manufacturing, sales, support services, forestry Tax losses
Hong Kong
32
0
0
0
7
0 Support services
India
0
0
0
0
5
0 Support services
Japan
2
0
0
0
12
0 Sales, support services
Singapore
4
1
0
0
14
0 Support services
Austria
424
20
5
3
948
126 Manufacturing, sales
Belgium
388
7
8
9
502
113 Manufacturing, sales
Timing differences
Germany
120
-35
1
1
492
7 Manufacturing, sales
Tax losses
Estonia
206
20
0
2
532
31 Manufacturing, sales, support services
Taxation not based on profit
Spain
2
0
0
0
14
0 Support services
Finland
6,066
131
9
3
5,211
2,979 Manufacturing, R&D, procurement, sales, group
management
Result includes non-taxable internal dividends
France
54
0
0
0
27
5 Sales, support services
Italy
6
3
2
1
26
0 Support services
Lithuania
116
4
0
1
309
20 Manufacturing, sales
Latvia
200
14
0
3
376
48 Manufacturing, sales
Netherlands
504
37
-3
0
786
303 Manufacturing, sales, support services
Result includes non-taxable internal dividends
Portugal
0
0
0
0
0
0 Support services
Slovenia
23
1
0
0
5
2 Sales
Slovakia
1
0
0
0
1
0 Procurement
Czechia
367
12
-3
3
1,154
151 Manufacturing, sales
Denmark
11
0
0
0
4
0 Support services
Poland
831
13
2
6
1,908
407 Manufacturing, sales
Sweden
4,208
-2
44
2
3,550
7,352 Manufacturing, R&D, procurement, sales, group
management, forest ownership
Timing differences
United Kingdom
192
3
2
1
70
27 Sales, support services
Norway
112
0
0
0
4
8 Procurement
Turkey
0
0
0
0
2
0 Support services
Ukraine
0
0
0
0
1
0 Support services
Mexico
1
0
0
0
9
0 Support services
MEUR
Total revenue
1
Profit/loss before
income tax
2
Income tax paid
(on cash basis)
3
Income tax accrued
(current year)
4
Number of employees
5
Tangible assets (other than
cash and equivalents)
8
Primary activity in jurisdiction
7
Main reasons for differences between current
tax accrued and tax as per statutory rate
8
Our year 2024
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Shareholders
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Financial Statements
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Unaudited 51
United States
86
20
0
0
33
17 Sales, support services
Tax losses
United Arab
Emirates
1
0
0
0
7
0 Support services
South Africa
0
0
0
0
2
0 Support services
Brazil
171
-7
1
1
538
294 Manufacturing, forestry
Uruguay
635
208
7
7
313
1,835 Manufacturing, forestry
Favourable tax treatment. Additional tax will be
due under Pillar Two minimum tax rules.
Stora Enso Group
15,573
87
78
44
19,233
14,480
MEUR
Total revenue
1
Profit/loss before
income tax
2
Income tax paid
(on cash basis)
3
Income tax accrued
(current year)
4
Number of employees
5
Tangible assets (other than
cash and equivalents)
8
Primary activity in jurisdiction
7
Main reasons for differences between current
tax accrued and tax as per statutory rate
8
Names of the resident entities can be found in note 6.2 Group companies in the Financial Statements.
1 Revenues is the total amount of income (excl. internal dividends) from domestic and foreign parties of the entities in the jurisdiction.
2 Profit/loss before tax is the total amount of the group entities’ profit or loss before tax in the jurisdiction, as reported under IFRS. The reported amounts include temporary and permanent differences between accounting and taxation, such as non-taxable dividends from other group companies, and thus do not represent the taxable income on which
taxes are calculated in the jurisdiction’s taxation.
3 Corporate income tax paid on a cash basis contains the total of corporate income taxes paid during the reported period by the companies in the jurisdiction to the home jurisdiction and all other jurisdictions. The amount contains tax payments for previous years and excess payments refundable in following years.
4 Corporate income tax accrued on profit/loss is the IFRS reported current tax expense of the reported period. The amounts do not include deferred taxes from temporary differences and tax losses, and thus do not represent the total tax expense of the entities in the income statement. The amounts do not contain taxes from previous periods.
5 Number of employees is the total average number of full-time equivalents in the jurisdiction during the year.
6 Tangible assets other than cash and cash equivalents states the total of IFRS reported values of tangible assets in the entities of the jurisdiction.
7 Primary activities in the jurisdiction lists the main activities of all group entities in the jurisdiction.
8 Reasons for differences between income tax accrued and tax as per statutory rate explains the main reasons for the difference between the reported corporate income tax accrued for the year (4), and the amount of tax when applying the jurisdiction’s statutory corporate income tax rate to the profit/loss before tax (2). The reasons for differences
may come from several sources, many of which are reporting technical. For example, profit/loss before tax (2) may contain items that will become taxable earlier or later than they are recognised in bookkeeping, creating timing differences on which deferred tax is recognised. In addition, differences may be due to utilization of tax losses or incurring
new loss, for which deferred tax is also normally recognised. However, as per the standard, the accrued income tax (4) is reported here excluding deferred taxes, which creates a timing related difference between tax accrued and tax as per the statutory rate. Other main reasons for differences listed in this column may be tax exempt items such as
group internal dividends, costs not deductible for tax purposes, favourable tax treatments (see previous page), and taxes from previous years.
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
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Unaudited 52
Our year 2024
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Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
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Unaudited 53
Report of the
Board of Directors
Stora Enso introduction
54
Business model
54
Strategy
54
Year 2024
55
Markets and deliveries
56
Group financial result
57
Segment financial results
59
Capital expenditure
61
Innovation, research and development
61
Employees
61
Nature-related financial disclosures (TNFD)
61
Risk management
63
Our approach to risk management
64
Risk governance
64
Risk management process
64
Main risks
65
Sustainability Statement
69
General information
70
Environmental information
86
Social information
113
Governance information
124
Shares and governance
127
Share capital
127
Governance
128
Related party transactions
128
Legal proceedings
128
Changes in management
128
Changes in Group structure
128
Resolutions of the Annual General Meeting
128
Outlook
129
Market outlook
129
Sensitivity analysis
129
Short-term risks
129
Proposal for the distribution of dividend
130
Events after the reporting period
130
Alternative performance measures
131
Head office photos: Stora Enso / © Tuomas Uusheimo
Introduction
Business model
The forest is at the heart of Stora Enso and we believe that
everything made from fossil-based materials today can be
made from a tree tomorrow. We are the leading provider of
renewable products in packaging, biomaterials, and wooden
construction, and one of the largest private forest owners in
the world. We create better choices for society by accelerating
the transition to a circular bioeconomy. We aim to contribute
positively to nature, and have the most effective use of fiber-
based renewable material.
Stora Enso had approximately 19,000 employees at the end of 2024. The
Group sales in 2024 were EUR 9 billion, with an adjusted EBIT of EUR 598
million. Stora Enso shares are listed at the Helsinki (STEAV, STERV) and
Stockholm (STE A, STE R) stock exchanges. In addition, the shares are traded
on OTC Markets (OTCQX) in the USA as ADRs and ordinary shares (SEOAY,
SEOFF, SEOJF).
Strategy
We create value for our shareholders by growing our leading positions in
packaging, biomaterials innovations, and building solutions, combined
with a strict capital allocation strategy, cost control, and other financial
measures. Global sustainability megatrends underpin our growth strategy.
We see the greatest potential for scalable innovation and
commercialisation of new products in the following three areas:
Renewable packaging
We have leading global market positions in high-value segments and
long-term customer partnerships in our packaging business. We continue
to see strong demand for plastic substitution and circular solutions. Fiber-
based packaging is the most sustainable option for many products as it
can be recycled, reused, or composted. It is the fastest growing packaging
material globally and is expected to outpace plastic alternatives in the
long term.
Sustainable building solutions
There are growth opportunities in the building industry, particularly with
wooden alternatives to materials such as concrete and steel, which have
larger carbon footprints. The global construction market is shifting towards
modular building methods that use less energy and reduce carbon
emissions. Mass timber products now enable the construction of safe and
sustainable high-rise buildings. We are well-positioned to capture more
value across the entire supply chain with our products and value-added
services, including prefabricated bespoke wooden elements, new
concepts, and digital services.
Biomaterials innovations
In Biomaterials, we focus on providing innovative and sustainable biobased
solutions for high-growth, high-margin markets. Through our expertise,
strategic collaborations and partnerships, we accelerate breakthrough
innovations in new fiber products, biochemicals, and lignin-based
applications, such as anode material for batteries and bio-based binders
for construction, which can replace fossil-based materials.
Forests are the foundation for our renewable solutions
Forest is a valuable, growing asset that facilities a long-term fiber supply
for our products. Our growth strategy is supported by cost-efficient wood
flows and resource optimisation. By streamlining these processes, we can
ensure a more efficient operation and better use of our resources.
Key targets
2024
2023
2022
Target
Financials
Sales growth
-4 %
-20 %
17 %
>5% per annum
Adjusted ROCE¹ excl. Forest
3.6 %
1.0 %
20.4 %
>13%
Net debt to adjusted EBITDA¹
3.0
3.2
0.7
<2.0
Net debt to equity
37 %
29 %
15 %
<60%
Dividend per share (EUR)
2
0.25
0.20
0.6
See below
3
Non-financials
Reduction of absolute CO2e emissions (Scope 1 and 2)
from 2019 base year
4
-53 %
-43 %
-28 %
-50% by 2030
Reduction of absolute CO2e emissions (Scope 3) from
2019 base year
4
-39 %
-35 %
-24 %
-50% by 2030
Forest certification coverage
99 %
99 %
99 %
96 %
Circularity
4
94 %
93 %
94 %
100% recyclable products by 2030
1 Last 12 months
2 Dividend proposal for 2024. The Board of Directors proposes that the dividend be paid in two instalments, during the second and fourth quarter of 2025.
3 To distribute 50% of EPS excluding fair valuation over the cycle.
4 Compared to the 2019 baseline. Historical figures are restated due to structural changes or additional data after the previous annual report.
Our year 2024
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Unaudited 54
Year 2024
The year began with signs of a gradual market recovery compared to
2023, although high interest rates and consumer confidence issues
persisted. Stora Enso anticipated increased demand and higher prices for
board and pulp. However, the Company faced challenges such as higher
maintenance costs and strikes in Finland, which impacted profits. Despite
these short-term challenges, Stora Enso focused on efficiency,
decisiveness, and essential operations to navigate the market
uncertainties.
In the second quarter, Stora Enso’s performance met expectations,
reinforcing the upgraded 2024 guidance. The Company saw advances in
profitability and cash flow improvement initiatives, supported by more
favourable market conditions in some segments. Higher volumes and
reduced fixed and chemical costs contributed to the positive earnings
trend, despite rising wood costs and political strikes in Finland.
The third quarter witnessed a strong increase in Stora Enso’s financial
performance compared to the previous year. This was driven by higher
prices and volumes, particularly in the Packaging Materials division. The
Biomaterials division also performed well, although demand weakened
with decreasing pulp prices. The Forest division achieved record results
due to increased wood prices. However, challenges persisted in the Wood
Products division due to a weak construction sector, and the Packaging
Solutions division faced price lags and market overcapacity.
Towards the end of the year, Stora Enso anticipated a slowdown in market
recovery, with weak consumer board demand, overcapacity in corrugated
board, and ongoing weakness in the construction sector. High wood costs
continued to pressure margins. Despite these challenges, Stora Enso’s
profitability improvement initiatives positively impacted earnings, and the
Company remained confident in its ability to focus on long-term growth
opportunities.
Throughout 2024, Stora Enso navigated the market dynamics by focusing
on efficiency, profitability improvement initiatives, value accretive actions,
and strategic capital allocation. The Company remained committed to
investing in both human and capital resources to provide exceptional
service to customers and create robust shareholder value growth. This
commitment is expected to build a more profitable, competitive, and
valuable Stora Enso.
Main strategic actions
Actions to improve sourcing and operational efficiency as well as
commercial excellence, and the implementation of cost reductions across
the Company have borne fruit, enhancing profitability and
competitiveness. Despite facing macroeconomic uncertainties,
fluctuations in market demand, and rising wood costs, these actions have
progressed well.
In September, Stora Enso initiated the sale of approximately 12% of its 1.4
million hectares of forest assets in Sweden. This transaction aims to reduce
debt, highlighting the financial value of the Group’s forest holdings. The
sale is dependent on finalising terms with investors, including long-term
wood supply and forest management agreements.
The divestment process for the Beihai packaging board production site
and forestry business, announced in December 2022, was discontinued in
October 2024. Stora Enso is of the view that the value in own use of the
assets exceeded the achievable transaction value, and therefore retained
these operations within the Group.
In October, Stora Enso entered into an agreement to acquire 100% of the
Finnish sawmill company Junnikkala Oy. The total enterprise value for the
transaction is up to EUR 137 million, a significant part of it being contingent
upon achieving specific production milestones. The acquisition, subject to
customary closing conditions including regulatory approvals, aims to
secure a cost-efficient wood supply to Stora Enso’s packaging board site in
Oulu, Finland, and to support the Group’s wood products business with new
production assets.
Sales and adjusted EBIT margin
Sales, EUR million
Adjusted EBIT, %
2021
2022
2023
2024
0
3,000
6,000
9,000
12,000
15,000
0%
5%
10%
15%
20%
25%
Net debt to adjusted EBITDA
Net debt, EUR million
Net debt to adjusted EBITDA
Target <2.0
2021
2022
2023
2024
0
1,000
2,000
3,000
4,000
0.0
1.0
2.0
3.0
4.0
Cash flow
Cash flow from operations, EUR million
Cash flow after investing activities, EUR million
2021
2022
2023
2024
0
500
1,000
1,500
2,000
Adjusted ROCE excl. Forest
Adjusted ROCE, %
Target >13%
2021
2022
2023
2024
0%
5%
10%
15%
20%
25%
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Markets and deliveries
Global cartonboard consumption experienced a rebound in 2024 following
a challenging year in 2023. The demand recovery was particularly strong
in Europe and North America, driven by the end of a long destocking period
throughout 2023. However, demand recovery slowed down during the
second half of 2024 due to increased macroeconomic uncertainties.
Global containerboard demand increased in 2024. The growth was driven
by the end of destocking that occurred during 2023. Despite this growth,
increased economic uncertainties caused a slowdown in the demand
increase as 2024 progressed.
European paper demand was relatively stable in 2024 after a sharp
decline in 2023. During the second half of 2024, demand continued to
follow the long-term structural demand erosion.
In Europe, demand for corrugated packaging grew by 4% in 2024, mainly
due to growth in retail spending, driven by the ongoing recovery in
purchasing power in e-commerce and retail sales. Nevertheless, the
market is still facing an overcapacity originating from many capacity
expansion decisions made during the past years. The expected increase in
retail sales and lower interest rates are expecting to support a modest
growth in the European corrugated packaging demand going forward.
Global demand for chemical market pulp fell 2% in 2024. Demand for
hardwood pulp declined 1% whereas softwood pulp demand was down
3.5%. Demand for unbleached kraft pulp (UKP) continued to fall whereas
demand for fluff pulp was steady. Chinese demand dropped by 20% y-o-y
during the Q2-Q3 due to destocking in 2024 that followed stock building in
2023. Demand growth in other regions was not able to offset the decline in
Asia.
The global chemical market pulp capacity increased by 2% in 2024. The
hardwood pulp capacity increased by 5% thanks to new capacity ramping
up in South America. Softwood pulp capacity declined by 1.5% and UKP by
8% due to capacity closures. The overall shipment-to capacity balance
stood at 87%, 3 percent points down from 2023.
Global pulp inventories were considered balanced in H1 2024 but started to
elevate towards the end of the year. Softwood pulp inventories were on
low side in first half of the year, peaked after summer months before
balancing by the end of the year thanks to capacity closures. Hardwood
pulp inventories were balanced in H1 after which the inventories increased
due to weaker demand and new capacity ramping up.
After weak markets in 2023, global sawn wood consumption increased in
2024 by +1.3% according to FEA (Forest Economic Advisor), with weaker
development experienced in Europe. Through the 2024 market supply and
demand reached better balance (due to supply curtailments) which
stabilised prices in most markets. During 2024, interest rates decreased
somewhat but remained still at a high level in most markets, and
combined with unclear geopolitical situation, customer confidence
remained low, which resulted in further drops in the number of building
permits and housing starts in comparison to 2023.
Estimated consumption of board, pulp, sawn softwood, and paper in 2024
Tonnes, million
Europe
North America
Asia and Oceania
Consumer board
10.9
9.2
33.3
Containerboard
35.8
32.1
97.9
Corrugated board (billion m
2)
1
8.5
n/a
n/a
Chemical market pulp
16.1
7.7
37.9
Sawn softwood (million m
3)
75.3
100.0
71.5
Newsprint
2.6
1.0
4.8
Uncoated magazine paper
1.4
0.6
0.1
1 European focus markets (Benelux, FI, PL, SE)
Source: Afry, CEPI, Numera, ICCA, PPPC, Stora Enso, Forest Economic Advisors (FEA)
Production and external deliveries
2024
2023
Change % 2024–2023
Consumer board deliveries, 1,000 tonnes
2,778
2,691
3.3%
Consumer board production, 1,000 tonnes
2,793
2,593
7.7%
Containerboard deliveries, 1,000 tonnes
1,242
1,236
0.5%
Containerboard production, 1,000 tonnes
1,530
1,592
-3.9%
Corrugated packaging European deliveries, million m
2
1,205
1,167
3.2%
Corrugated packaging European production, million m
2
1,157
1,094
5.7%
Market pulp deliveries, 1,000 tonnes
2,029
2,220
-8.6%
Wood products deliveries, 1,000 m
3
3,892
3,897
-0.1%
Wood deliveries, 1,000 m
3
13,451
13,667
-1.6%
Paper deliveries, 1,000 tonnes
611
761
-19.7%
Paper production, 1,000 tonnes
592
752
-21.3%
.
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Alternative performance measures
The alternative performance measures used by Stora Enso are explained in the chapter Alternative performance
measures.
Financial results – Group
Group sales decreased by 4% year-on-year to EUR 9,049 (9,396) million, due to by structural changes. Adjusted EBIT
was EUR 598 (342) million, and the adjusted EBIT margin was 6.6%. Adjusted EBIT increased mainly due to increased
sales volumes and prices, decreased fixed costs partly offset by increased wood costs. Earnings per share was EUR
-0.17 (-0.45) and earnings per share excluding fair valuations was EUR -0.56 (-0.73).
The IFRS operating result was EUR 93 (-322) million. The IFRS operating result includes a positive net effect of EUR 421
(positive 209) million from biological asset valuation from subsidiaries and joint operations. The positive impact
comes mainly from the increase in fair valuation in Stora Enso owned forests in Sweden, mostly driven by increases
in estimated wood prices and standing stock. There is also a positive net effect of EUR 52 (positive 136) million from
Stora Enso’s share of net profit of associated companies. The positive impact comes mainly from Finnish forests
operational profit, through Stora Enso’s 41% investment in Tornator.
Tangible and intangible asset (including goodwill) impairments amounted to EUR 746 (776) million.
The items affecting comparability (IAC) had an adverse impact of EUR 870 (895) million on IFRS operating result. The
main IACs in 2024 mainly relate to the impairments in Packaging Materials, Packaging Solutions and Wood
Products divisions as well as restructuring related costs. The IACs in 2023 mainly relate to the impairments in the
Packaging Materials, Biomaterials, Wood Products divisions and segment Other, restructurings related to Sunila, De
Hoop, Anjalankoski and Kvarnsveden sites and Group functions and Packaging Materials division, as well as
disposal of Nymölla, Maxau, Hylte and Wood Products DIY sites, and biocomposite business. Fair valuations and
non-operational items (FV) had a positive net impact on the IFRS operating result of EUR 364 (231) million. The main
IAC and FV items are presented in the chapter Alternative Performance Measures.
Net financial expenses at EUR 211 (173) million were EUR 38 million higher than a year ago. Net interest expenses, at
EUR 127 million, increased by EUR 14 million as a result of higher interest rates on borrowings and higher amount of
gross debt. Other net financial expenses, at EUR 64 million, were EUR 25 million higher, mainly due to write-down of
Russia related loan receivables and higher factoring and supply chain financing costs. The net foreign exchange
impact in respect of cash equivalents, interest-bearing assets and liabilities and related foreign-currency hedges
amounted to a loss of EUR 20 (loss of EUR 22) million, mainly due to revaluation of foreign currency net debt in
subsidiaries located in China.
The net tax totalled EUR -65 (64) million, equivalent to an effective tax rate of -55.4% (13.0%), as described in more
detail in note 2.5 Income taxes.
The loss attributable to non-controlling interests was EUR 48 (EUR 74) million, leaving a loss of EUR 136 (loss of EUR
357) million attributable to Company shareholders.
Adjusted return on capital employed was 4.3% (2.4%).
The Group capital employed was EUR 13,696 million on 31 December 2024, a decrease of EUR 360 million, mainly due
to impairments partly offset by investment projects, mainly the consumer board investment at the Oulu site, and
increase of the fair valuation of forest assets.
Key figures
2024
2023
2022
Sales, EUR million
9,049
9,396
11,680
Adjusted EBIT, EUR million
598
342
1,891
Adjusted EBIT margin
6.6%
3.6%
16.2%
Operating result (IFRS), EUR million
93
-322
2,009
Operating result margin (IFRS)
1.0%
-3.4%
17.2%
Return on equity (ROE)
-1.7%
-3.8%
13.3%
Adjusted ROCE
4.3%
2.4%
13.7%
Adjusted ROCE excl. Forest division
3.6%
1.0%
20.4%
Net debt/equity ratio
0.37
0.29
0.15
EPS (basic), EUR
-0.17
-0.45
1.97
EPS excluding FV, EUR
-0.56
-0.73
1.55
Dividend per share
1, EUR
0.25
0.20
0.60
Payout ratio, excluding FV
-44.6%
-27.4%
38.6%
Payout ratio (IFRS)
-145.4%
-44.2%
30.5%
Dividend yield, (R share)
2.6%
1.6%
4.6%
Price/earnings (R share), excluding FV
-17.33
-17.17
8.46
Equity per share, EUR
12.86
13.93
15.89
Market capitalisation 31 Dec, EUR million
7,657
9,864
10,503
Closing price 31 Dec, A share, EUR
9.68
12.45
13.90
Closing price 31 Dec, R share, EUR
9.72
12.53
13.15
Average price, A share, EUR
11.54
12.82
16.58
Average price, R share, EUR
11.53
11.93
16.12
Number of shares 31 Dec (thousands)
788,620
788,620
788,620
Trading volume A shares (thousands)
1,199
968
1,174
% of total number of A shares
0.7%
0.5%
0.7%
Trading volume R shares (thousands)
425,082
476,654
455,952
% of total number of R shares
69.3%
77.8%
74.5%
Average number of shares, basic (thousands)
788,620
788,620
788,620
Average number of shares, diluted (thousands)
789,772
789,714
789,391
1 Proposed dividend. The Board of Directors proposes that the dividend be paid in two instalments. See the Board of Directors’ proposal for the distribution of dividend.
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Unaudited 57
Breakdown of capital employed change
EUR million
Capital employed
31 December 2023
14,056
Capital expenditure excluding investments in biological assets
less depreciation
509
Investments in biological assets less depletion of capitalised
silviculture costs
-6
Impairments and reversal of impairments
-745
Fair valuation of forest assets
229
Unlisted securities (mainly PVO)
-208
Associated companies
28
Net liabilities in defined benefit plans
35
Operative working capital and other interest-free items, net
-180
Emission rights
-35
Net tax liabilities
79
Acquisition of subsidiary companies
72
Disposal of subsidiary companies
-8
Translation difference
-107
Other changes
-23
31 December 2024
13,696
Financing
Cash flow from operations was EUR 1,187 (954) million and cash flow after
investing activities was EUR 74 (-40) million. Working capital decreased by
EUR 283 (300) million, inventories increased by EUR 136 million and trade
receivables decreased by EUR 244 million. Trade payables increased by
EUR 115 million and thus had a positive impact on working capital.
Payments related to the previously recognised provisions were
EUR 100 million.
Operative cash flow
EUR million
2024
2023
Adjusted EBITDA
1,223
989
IAC on adjusted EBITDA
-125
-126
Other adjustments
-194
-210
Change in working capital
283
300
Cash flow from operations
1,187
954
Cash spent on fixed and biological assets
-1,113
-989
Acquisitions of associated companies
-1
-5
Cash flow after investing activities
74
-40
As at 31 December 2024, Group net interest-bearing liabilities were EUR
3,707 (3,167) million. The increase in net interest-bearing liabilities was
mainly driven by significant investments such as the consumer board
investment at the Oulu site in Finland. Cash and cash equivalents net of
bank overdrafts decreased to EUR 1,993 (2,464) million. The net debt/equity
ratio at 31 December 2024 increased to 0.37 (0.29). The ratio of net debt to
the last 12 months’ adjusted EBITDA decreased to 3.0 (3.2) due to higher
adjusted EBITDA. The average interest rate on borrowings for the full year
2024 increased to 4.1% (3.7%) with a run-rate of 4.0% as per the end of the
fourth quarter.
In July 2024, Stora Enso secured a EUR 435 million long-term loan from the
European Investment Bank to fund its EUR 1 billion investment at the Oulu
site in Finland. Loan repayment extends until 2037, and the loan is currently
undrawn.
During the second quarter, Stora Enso signed extensions of one to two
years for a total of EUR 350 million of its existing bilateral loans. The
Company also signed a two-year extension to its EUR 100 million
committed credit facility.
During 2024, Stora Enso’s total repayments of SEK bond notes amounted to
a nominal of EUR 135 million.
Stora Enso had in total EUR 800 million committed undrawn credit facilities
as per 31 December 2024. Additionally, the Company has access to EUR 830
million statutory pension premium loans in Finland.
The changes in the fair value of forest land, net of deferred taxes, which are
recognised in other comprehensive income (OCI) decreased the equity by
EUR 223 million (decreased by EUR 39 million) mainly due to increase in the
discount rate.
The changes in the fair valuation of equity investments fair valued through
other comprehensive income decreased equity by EUR 203 (decreased by
EUR 645) million. The decrease is mainly due to a lower fair valuation of the
Group’s shareholding in Pohjolan Voima Oy (PVO), explained especially by
lower electricity price forecasts. The changes in the fair valuation of cash
flow hedges fair valued through other comprehensive income decreased
equity by EUR 65 million, mainly driven by weaker SEK and stronger USD.
At the end of the year, the ratings for Stora Enso’s rated bonds were as
follows:
Rating agency
Long/short-term rating
Valid from
Fitch Ratings
BBB- (stable)
26 July 2024
Moody’s
Baa3 (stable) / P-3
21 November 2024
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Unaudited 58
Financial results – Segments
Packaging Materials division
The Packaging Materials division is a global leader and expert partner in
circular packaging providing premium packaging boards, made from
virgin and recycled fiber. Stora Enso helps customers reduce the use of
fossil-based materials by offering renewable and recyclable products for
their food, beverage, and transport packaging based on a wide selection
of base boards and barrier coatings.
EUR million
2024
2023
Sales
4,502
4,557
Adjusted EBITDA
472
267
Adjusted EBITDA margin
10.5 %
5.9 %
Adjusted EBIT
172
-57
Adjusted EBIT margin
3.8 %
-1.3 %
Fair valuations and non-operational items (FV)
1
2
12
Items affecting comparability (IAC)
1
-343
-597
Operating result (IFRS)
-169
-642
Adjusted EBIT, LTM
172
-57
Operating capital, LTM
3,490
3,580
Adjusted ROOC, LTM
4.9 %
-1.6 %
Cash flow from operations
462
370
Cash flow after investing activities
-323
-235
Board deliveries, 1,000 tonnes
4,920
4,963
Board production, 1,000 tonnes
4,916
4,843
1 The IAC for 2024 included asset impairments of EUR -141 million for China operations, EUR -90 million for the
Varkaus containerboard unit, EUR -47 million for the Langerbrugge paper unit, EUR -27 million for the Poland
containerboard unit, and EUR -38 million restructuring and other related to various units (mainly HQ,
Anjalankoski, Imatra, Swedish operations, China). The IAC for 2023 included impairments of fixed assets of EUR
-228 million for the Oulu containerboard unit, EUR -202 million for China operations, EUR -12 million for the
Anjalankoski site’s paper assets, EUR -26 million of goodwill impairments related to the Anjalankoski and De
Hoop sites, restructuring costs related to De Hoop site closure of EUR -79 million, closing down one paper line at
Anjalankoski site of EUR -26 million, restructuring program in division management and support functions of EU
-12 million and other restructuring costs of EUR -9 million, and other IAC cases of -3 million. The fair valuations
for 2024 included non-operational fair valuation changes of biological assets of EUR 2 (12) million.
The Packaging Materials division’s sales decreased by 1% to 4,502 (4,557)
million, but excluding structural changes, sales improved by 3% or
EUR 140 million driven by increased volumes.
Adjusted EBIT improved by EUR 229 million to EUR 172 (-57) million, driven by
structural changes and improved operating rates. Increasing fiber costs
were more than offset by decline in other variable costs (especially energy
and chemicals). Fixed costs were significantly lower due to structural
changes and positive impact from profit improvement actions.
Depreciations declined following the 2023 impairments.
Packaging Solutions division
The Packaging Solutions division is a packaging converter that produces
premium fiber-based packaging products for leading brands across
multiple market areas, including retail, e-commerce, and industrial
applications. Additionally, the division provides design and sustainability
services to help customers optimise material use, improve logistics, and
reduce CO2 emissions.
EUR million
2024
2023
Sales
987
1,077
Adjusted EBITDA
62
111
Adjusted EBITDA margin
6.3%
10.3%
Adjusted EBIT
-15
43
Adjusted EBIT margin
-1.5%
4.0%
Items affecting comparability (IAC)
1
-379
-26
Operating result (IFRS)
-394
17
Adjusted EBIT, LTM
-15
43
Operating capital, LTM
934
874
Adjusted ROOC, LTM
-1.6%
4.9%
Cash flow from operations
78
145
Cash flow after investing activities
31
62
Corrugated packaging European deliveries,
million m
2
1,217
1,178
Corrugated packaging European production,
million m
2
1,157
1,094
1 The IAC for 2024 included asset impairments of EUR -371 million related to operations in western Europe, and
EUR -8 million restructuring costs related to various units. The IAC for 2023 included EUR -19 million restructuring
costs in China and EUR -16 million related to the acquisition of De Jong Packaging Group, and EUR -1 million
other cases.
The Packaging Solutions division’s sales declined by 8% to EUR 987 (1,077)
million, driven by price pressure due to soft demand and overcapacity.
Adjusted EBIT was EUR -15 (43) million. Volumes were higher, however,
margin pressure due to increased containerboard prices during Q2-Q3,
soft demand, and overcapacity, combined with the continued ramp-up of
the new De Lier site in the Netherlands, decreased profitability.
Biomaterials division
The Biomaterials division’s foundation is built on pulp, with the aim of
becoming customers’ first choice in selected grades. To unlock the full
potential of a tree the division also leverages all fractions to create
innovative biobased solutions, that replace fossil-based and other non-
renewable materials.
EUR million
2024
2023
Sales
1,587
1,587
Adjusted EBITDA
372
256
Adjusted EBITDA margin
23.4%
16.1%
Adjusted EBIT
231
118
Adjusted EBIT margin
14.6%
7.4%
Fair valuations and non-operational items (FV)
1
32
25
Items affecting comparability (IAC)
1
-7
-224
Operating result (IFRS)
256
-81
Adjusted EBIT, LTM
231
118
Operating Capital, LTM
2,480
2,625
Adjusted ROOC, LTM
9.3%
4.5%
Cash flow from operations
507
431
Cash flow after investing activities
332
234
Pulp deliveries, 1,000 tonnes
2,207
2,277
1 The IAC for 2024 included EUR -7 million restructuring costs related to various units. The IAC for 2023 included
restructuring expenses from the closure of the Sunila pulp production of EUR -116 million, impairments of fixed
assets of EUR -59 million for the Uimaharju site, impairment of goodwill of EUR -44 million for the Nordic Mills,
EUR -4 million of other cases. The fair valuations for 2024 included non-operational fair valuation changes of
biological assets of EUR 32 (25) million.
The Biomaterials division’s sales were EUR 1,587 (1,587) million. The impact of
higher pulp sales prices was offset by the impact of lower volumes due to
the closure of the Sunila site in 2023. Market conditions were better,
especially in the first half of the year.
Adjusted EBIT at EUR 231 (118) million increased by 96%, primarily driven by
higher sales prices and actions reducing costs.
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
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Unaudited 59
Wood Products division
The Wood Products division is Europe’s largest sawn timber producer and
a leading provider of sustainable wood-based solutions for the global
building sector. The division provides the building sector with renewable
and low-carbon wood-based solutions that help decarbonise the built
environment. Additionally, the division offers window and door
components, and co-products such as pellets made from wood residuals.
EUR million
2024
2023
Sales
1,522
1,580
Adjusted EBITDA
27
-17
Adjusted EBITDA margin
1.8%
-1.0%
Adjusted EBIT
-16
-64
Adjusted EBIT margin
-1.1%
-4.1%
Items affecting comparability (IAC)
1
-57
-22
Operating result (IFRS)
-73
-86
Adjusted EBIT, LTM
-16
-64
Operating capital, LTM
609
687
Adjusted ROOC, LTM
-2.7%
-9.3%
Cash flow from operations
45
43
Cash flow after investing activities
-4
3
Wood products deliveries, 1,000 m
3
3,718
3,727
1 The IAC for 2024 included asset impairments of EUR -56 million related to the operations in northern Europe.
The IAC for 2023 included asset impairments of EUR -12 million related to the operations in northern Europe,
asset impairments of EUR -4 million related to the operations in southern Europe, EUR -4 million impact from
disposal of the Näpi site and EUR -3 million from disposal of Wood Products DIY unit, EUR 1 million other cases.
The Wood Products division’s sales were EUR 1,522 (1,580) million, down 4%,
due to the continued weak market demand and closure of two units.
Weakness in construction industry remained through the year, and the
number of building permits and housing starts in Europe declined further,
pressing the demand for the division’s products. To balance the lower
demand, production curtailments were implemented.
Adjusted EBIT remained negative, at EUR -16 (-64) million, but the result
increased 75%. Implemented fixed costs savings and lower variable costs,
except for raw material, delivered an improvement in the results.
Forest division
The Forest division is responsible for wood sourcing for Stora Enso’s Nordic
and Baltic operations as well as for B2B customers. It manages the Group’s
forest assets in Sweden and a 41% share in Tornator, whose forests are
primarily located in Finland. The division’s operations are based on
sustainable forest management encompassing planning, logistics,
harvesting, and forest regeneration.
EUR million
2024
2023
Sales
2,827
2,490
Adjusted EBITDA
364
305
Adjusted EBITDA margin
12.9%
12.2%
Adjusted EBIT
309
253
Adjusted EBIT margin
10.9%
10.2%
Fair valuations and non-operational items (FV)
1
342
206
Items affecting comparability (IAC)
1
-5
2
Operating result (IFRS)
646
461
Adjusted EBIT, LTM
309
253
Operating capital, LTM
5,989
5,740
Adjusted ROCE
5.2%
4.4%
Cash flow from operations
220
70
Cash flow after investing activities
171
19
Wood deliveries, 1,000 m
3
33,794
32,401
Operational fair value change of biological
assets
119
120
1 The IAC for 2024 included EUR -2 million related to environmental provision and EUR -3 million of restructuring
costs. The IAC for 2023 included a reversal of land related impairment of EUR 5 million and other provision
updates of EUR -3 million. The fair valuations for 2024 included non-operational fair valuation changes of
biological assets of EUR 382 (156) million, non-operational items of associated companies of EUR -34 (56)
million, and EUR -6 (-5) million impact from adjustments for differences between fair value and acquisition
cost of forest assets upon disposal.
The Forest division’s sales were EUR 2,827 (2,490) million, up 14%, due to
higher sales prices and increased demand.
Adjusted EBIT at EUR 309 (253) million increased by 22%. The increase was
due to the strong operational performance and higher sales prices in the
Group’s own forest assets.
Segment Other
The segment Other includes the divested paper sites until the completion
of the divestments, the reporting of the emerging businesses (including
Formed Fiber) as well as Stora Enso’s shareholding in the energy company
Pohjolan Voima (PVO), and Group Head Office and Global Business
Services.
EUR million
2024
2023
Sales
176
964
Adjusted EBITDA
-63
18
Adjusted EBITDA margin
-36.0 %
1.9 %
Adjusted EBIT
-72
1
Adjusted EBIT margin
-41.0 %
0.1 %
Fair valuations and non-operational items (FV)
1
-12
-13
Items affecting comparability (IAC)
1
-79
-28
Operating result (IFRS)
-162
-41
Cash flow from operations
-125
-105
Cash flow after investing activities
-134
-123
1 The IAC for 2024 included EUR -45 million of consulting costs related to profit improvement programme, EUR -8
million other restructuring costs, EUR -4 million related to closure and disposal of De Hoop, EUR -7 million
related to closure and disposal of Sunila, EUR -8 million related to disposal of Selfly Store and EUR -7 million
related to updates in environmental provisions. The IAC for 2023 included EUR 29 million related to
restructuring of Kvarnsveden, EUR 9 million to restructuring of Veitsiluoto, and EUR -15 million to restructuring of
Group Functions, EUR 52 million related to disposal of Maxau, EUR -30 million to disposal of Nymölla, EUR -45
million to disposal of Hylte, EUR -14 million to disposal of biocomposite business, and EUR -6 million on disposal
transactions costs, EUR -14 million related to fixed asset impairments in Group Operations unit and EUR 6
million related to environmental provision updates. The fair valuations for 2024 included non-cash income
and expenses related to CO2 emission rights and liabilities of EUR -11 (-13) million.
Sales for the segment Other were at EUR 176 (964) million and adjusted EBIT
EUR -72 (1) million. The reduction from the previous year was mainly driven
by the sale of the paper production units in Sweden and Germany, but also
reduced energy market prices and decentralised operating model.
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
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Unaudited 60
Capital expenditure
Additions to fixed and biological assets including internal costs capitalised
in 2024 totalled EUR 1,090 (1,125) million. The total amount includes additions
in biological assets of EUR 81 (71) million.
The EUR 1 billion investment at the Oulu site in Finland to convert the
remaining idle paper machine into a high-volume consumer board line is
progressing according to schedule. Production is expected to start during
the first half of 2025. The investment supports the Group’s growth strategy
in renewable packaging by providing new capacity for growing packaging
segments. The targeted end-use segments are food and beverage
packaging, especially frozen and chilled, as well as dry and fast food,
mainly in Europe and North America.
The EUR 30 million Heinola boiler and fuel handling modification project
announced in February 2023, is ongoing and is expected to be brought into
use 2025.
The EUR 38 million investment in unbleached kraft pulp (UKP) production at
the Enocell site in Finland was finalised during the fourth quarter.
The EUR 42 million investment in improvements to fluff pulp production at
the Skutskär site in Sweden is ongoing, and is expected to be completed in
the first half of 2025.
The ramp-up of the new corrugated packaging site in De Lier in the
Netherlands is ongoing and is expected to be completed in 2026.
The EUR 30 million upgrade and expansion of the Ostrołęka corrugated
plant in Poland is ongoing and is expected to be completed in 2026.
Innovation, research and development
Stora Enso’s growth focus is on the development of sustainable and
resource-efficient packaging applications to replace fossil-based
materials, innovative biomaterials for high-end applications, and
sustainable wooden-based materials and components that store carbon
and improve the energy efficiency of buildings. Stora Enso actively
engages with young and growing companies that are developing
technology and solutions aligned with the Company’s core and growth
areas, using a venture client approach.
Stora Enso’s long-term science and research priority is to address early-
stage research at universities and institutes to enable breakthroughs and
build competence to meet the needs of its divisions. The Group’s
Innovation and R&D team works closely with strategic partner universities,
research institutes, and excellence centres to tackle key scientific
questions related to renewable materials. Stora Enso engages in multiple
research programmes along the value chain, from forests to products and
circular material flows.
Stora Enso’s total spend on innovation, research, and development in 2024
was EUR 78 (114) million, equivalent to 1.0% (1.2%) of total sales. Research and
development work is fundamental to staying relevant and competitive in
relation to customers. In 2024, Stora Enso employed approximately 330
people in research and development. The responsibility for product
innovations and development of services is with the business divisions.
Intellectual property (IP) is an important tool to support Stora Enso’s
development of innovative products and processes while safeguarding
the Group’s intellectual assets. In 2024, Stora Enso continued to strengthen
its patent portfolio by applying for patents for 50 new innovations,
primarily in the Biomaterials and Packaging Materials divisions. The
Biomaterials division focused on patents for Lignode, biobinders, biofoam,
and circular chemicals, while the Packaging Materials division filed for
patents related to barriers, board technology and circular packaging.
During 2024, the patent portfolio was streamlined, mainly in Packaging
Solutions, with the aim of saving costs and further adapting it to current
and future business needs. Several IP divestment and licensing activities
were initiated and/or concluded during the year. Stora Enso’s patent
portfolio now amounts to over 3,200 applications and granted patents.
Employees
On 31 December 2024, there were 18,558 (19,842) full-time employees in
the Group. The average number of employees in 2024 was 19,233, which is
1,589 less than a year before. At the end of 2024, the Group’s top four
countries in respect to the number of employees were Finland, Sweden,
China, and Poland.
Nature-related financial disclosures (TNFD)
The Taskforce on Nature-related Financial Disclosures (TNFD) is a science-
based initiative supported globally by national governments, businesses,
and financial institutions. It provides a framework for risk management
and disclosure to identify, assess, respond to, and disclose nature-related
issues. The TNFD recommendations align with the global policy goals
outlined in the Kunming-Montreal Global Biodiversity Framework and are
structured around four pillars: Governance, Strategy, Risk & Impact
Management, and Metrics & Targets.
In 2024, Stora Enso became a TNFD Early Adopter and committed to
publishing its first TNFD-aligned report for the financial year 2024. The
Group’s reporting under the Corporate Sustainability Reporting Directive
(CSRD) comprises nature-related disclosures, which are in line with the
TNFD recommendations. It is recognised that the nature-related
disclosures will evolve over time as more data and information become
available, enabling a gradual increase in detail, scope, and emphasis.
Stora Enso utilised the LEAP (Locate, Evaluate, Assess, and Prepare)
framework in the 2024 TNFD reporting to demonstrate how the Group
addresses nature-related impacts, risks, and dependencies. This approach
was complemented by in-depth analyses of individual mills and divisions.
The table below summarises the outcomes of the Group-level LEAP
exercise, which focused on Stora Enso’s direct operations, including its
forest assets.
Stora Enso’s ambition regarding nature is to establish, maintain, and
develop practises across its value chain that contribute to a nature-
positive impact on society. This approach aims to enhance the valuation
of nature, while mitigating environmental impacts and preserving
biodiversity. In 2025, the Group plans to explore its consolidated nature
offerings for customers within its nature framework.
The TNFD index table, available for downloading on storaenso.com/
annualreport, provides further references to relevant sections in
the Group’s Annual Report. This includes the Sustainability Statement
prepared in accordance with the European Sustainability Reporting
Standards (ESRS).
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Unaudited 61
Stora Enso’s TNFD Leap framework
Process
Key outcomes
1.
Locate:
Interface
with nature
Mapping of Stora Enso’s direct operations, including forest assets, using geospatial data to
identify proximity to sensitive locations by utilising the Integrated biodiversity Assessment
Tool (IBAT) and WRI Aqueduct Water Risk Atlas.
Guiding questions:
•
Which of the Group’s activities are located in sensitive areas?
Stora Enso manages its own and leased forest land, covering a total area of 2.1 million hectares worldwide. Largest part is boreal
forests located in Sweden (68% of total forest area) and in Finland and the Baltics (15%) via Tornator (41% ownership). Stora Enso
also owns and leases eucalyptus plantations in China (3%), Brazil (6%), and Uruguay (7%). Stora Enso's Forest Resources Information
Systems include locations of the Company's forest assets and sensitive areas, aiding in effective forest management and
conservation planning. Moreover, Stora Enso employs third-party verified wood traceability systems to know the origin of
procured wood and ensuring that it is not sourced from sensitive areas.
Stora Enso operates 57 production facilities mainly in Northern, Western, and Central Europe, but also has operations in China and
via joint ventures in Brazil and Uruguay. According to the mapping assessment, five of the Group’s units operate in regions with
High Baseline Water Stress and five units with High Biodiversity Significances. These units are defined as material locations and are
disclosed in the section "Sustainability data by production unit" of the Annual Report.
2.
Evaluate:
Dependencies
& impacts
Evaluation of impact drivers and dependencies relevant to Stora Enso using the TNFD
sector guidance for Forestry, pulp and paper.
Guiding questions:
•
What environmental assets, ecosystem services, and impact drivers are associated
with the Group’s business processes, activities, and assessment locations?
•
What are the dependencies and impacts on nature?
Stora Enso’s business depends on several natural capital inputs as raw materials, such as wood and fresh water, and are
supported by soil quality, alongside ecosystem services for bioremediation, forest disease, and pest control, as well as climate
regulation, among others. The Group's impact on living organisms, people, and the environment originates from use of land,
renewable and non-renewable resources, and the generation of waste, emissions, effluents, and noise.
Location-specific nature and environmental impact assessments are performed in local management systems (ISO 14001) where
significant environmental aspects are determined and prioritised. These systems also monitor compliance with environmental
permits and manage the chemical and ecological status in local recipient control systems.
Stora Enso has, as a business with over 20,000 suppliers around the world, an important role within global supply chains to
influence upstream suppliers positively on nature, biodiversity, environmental health, human well-being, and business
perspectives.
3.
Assess:
Risks &
opportunities
The basis for the risk and opportunities assessment was based on the TNFD sector
guidance for Forestry, pulp and paper and the double materiality assessment (DMA)
process implemented for the reporting according to Corporate Sustainability Reporting
Directive. This approach is also integrated into the ERM process, including climate scenario
analysis.
During 2024, Stora Enso executed in-depth assessments on Group-level, for two mills, and
an upstream pilot for one of the divisions.
Guiding questions:
•
What are the nature-related risks and opportunities for the organisation?
•
Which risks and opportunities are material and should be prioritised?
The scenario analysis recognises that long-term changes in precipitation patterns, periods of drought, frequent extreme weather
events, and higher average temperatures that increase the risk of forest fires and insect outbreaks, could cause damage to
operations, forests, and tree plantations. This would affect forests asset values and regional wood prices. More frequent extreme
weather events also increase the risk of disruptions in the production, logistics, and supply of raw materials and energy.
Reputational risks may arise as a consequence of incidents or non-compliant behaviour, including failure to comply with norms,
laws and regulations, or policy documents. Damage to Stora Enso’s reputation and brand may result in a loss of investor and
customer confidence leading to higher cost of capital and decreased revenues. There is a risk that new policies and regulations
for forestry and biodiversity could limit harvesting levels in EU forests, potentially resulting in significant increases in wood prices
and supply limitations. This could lead to reduced competitiveness of products.
Owning forests provides Stora Enso with strategic advantages, including securing a reliable and consistent wood supply, reducing
reliance on external suppliers, promoting environmental stewardship through sustainable forestry practices, preserving and
actively managing biodiversity, working with conservation of protected areas, and contributing to carbon sequestration efforts.
Stora Enso has adopted an adaptive approach to biodiversity management and monitors progress with indicators, and then
adapts actions accordingly. The Group also uses the latest technologies, data, and modelling to predict future biodiversity based
on current management practices.
4.
Prepare:
To respond
& report
Stora Enso’s TNFD disclosure includes core metrics set by the TNFD recommendations and
sector-specific metrics set by the TNFD sector guidance for Forestry, pulp and paper. The
process has been integrated into the DMA and the preparation of the Sustainability
Statement and ESRS E1-5.
Guiding questions:
•
What risk management, strategy, and resource allocation decisions should be made?
•
How will targets be set, and progress be defined and measured?
•
What will be disclosed in line with the TNFD recommended disclosures?
•
Where and how will the nature-related disclosures be presented?
Biodiversity initiatives aim for a net positive impact, with action programmes in place until 2030 to enhance biodiversity at
species, habitat, and landscape levels.
Stora Enso has set a target to reduce Scope 1, 2 & 3 emissions by 50% from the 2019 baseline as verified by Science Based Targets
initiative. Further to achieve Net Zero by 2040. Indicators are reported in the Sustainability Statement, section ESRS E1-5.
Next steps for future assessments, target setting, and disclosure:
•
Further addressing material risks and opportunities at the Group’s production sites
•
Advancing the assessment in the supply chain and for the Group's joint venture operations
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Unaudited 62
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Unaudited 63
Risk management
In this section
Our approach to risk management
64
Risk governance
64
Risk management process
64
Main risks
65
Approach to risk management
Risk is an integral element of business and corporate
governance, characterised by both opportunities and threats.
These factors can influence future performance, results and
the Group’s ability to meet social and environmental
objectives. Stora Enso is committed to systematic and
proactive risk management as a core organisational
capability, embedding it into its culture and decision-making
process. Through dynamic risk analysis and scenario planning,
Stora Enso enhances opportunities and mitigates risks to
achieve its business goals.
Risk governance
Stora Enso defines risk as the effect of uncertainty on the Group’s ability to
meet organisational values, objectives and goals. The Group Risk Policy,
approved by the Board of Directors, outlines the overall approach to
governance and risk management in accordance with the COSO
(Committee of Sponsoring Organizations) framework and aligned with ISO
31000. The Board retains the ultimate responsibility for the overall risk
management process and determines predominantly through Group
policies, the appropriate and acceptable level of risk.
The Board has established a Financial and Audit Committee to support the
Board in monitoring the adequacy of the risk management process within
Stora Enso, and particularly in the management and reporting of financial
risks. This oversight scope also includes monitoring cybersecurity risks.
The Sustainability and Ethics Committee is responsible for overseeing the
company’s sustainability efforts, ethical business conduct, commitment to
being a responsible corporate citizen, and contribution to sustainable
development.
The head of Enterprise Risk Management, reporting to the Executive Vice
President, Strategy and Sustainability, is responsible for designing,
developing and monitoring the top-down implementation of the Group
risk management framework. Each division and Group function head,
together with their respective management teams, is responsible for
executing the process and cascading the framework and guidelines
further down the organisation. The Internal Audit unit evaluates the
effectiveness and efficiency of Stora Enso’s risk management process.
Risk management process
Risk management is embedded in all decision-making processes, with
holistic risk assessments also conducted as part of all significant
investment decisions. In connection with the annual strategy process,
business divisions and Group service and support functions conduct a
holistic baseline risk assessment linked to their key objectives. Specific
guidance regarding the risk management process is outlined in the
enterprise risk management instructions.
Business entities and functions identify the sources of risk events including
changes in circumstances, their causes, and potential consequences.
Stora Enso’s risk model defines the overall risk universe which supports
holistic risk identification and risk consolidation, while also providing
taxonomy and consistency in risk terminology.
Risk analysis involves developing an understanding of risks to provide an
input for risk evaluation. The purpose of risk evaluation is to prioritise risks
and support decision-making in determining which risks require treatment
or actions. Risks are assessed based on their impact and likelihood of
occurrence, often using specific risk scenarios. The effectiveness of existing
risk reduction is factored in to define the residual risk level. Pre-defined
impact scales consider financial, safety, compliance, and reputational
impacts, on both a quantitative and qualitative basis.
Risk treatment involves selecting one or more risk management option,
such as avoidance, reduction, sharing or retention. Additional risk
mitigation actions are determined for risks which exceed the perceived
risk tolerance incorporating the assignment of responsibility, schedules,
and timetable for risk response actions.
Following the annual baseline assessment, prioritised and emerging risks,
along with the corresponding risk mitigation and business continuity plans,
are reviewed during divisional business review meetings on a semi-annual
basis.
Despite the measures taken to manage and mitigate risks, some risks
remain beyond the direct control of management. As such, there can be
no absolute assurance that risks, if they occur, will not have a materially
adverse effect on Stora Enso’s business, financial condition, operating
profit or ability to meet financial obligations.
Risk management process
Monitor and
review
Establish the context
Communicate
and consult
Risk assessment
Identify
Analyse
Evaluate
Treat risks
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Our people
Governance
Shareholders
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Main risks
Reputation
Negative impacts on reputation often reflects the combined effects of various types of risks
and may result from incidents or non-compliant behaviour by employees, contractors,
suppliers or other business partners. This includes failures to comply with norms, laws and
regulations, or policy documents. Damage to Stora Enso’s reputation and brand could lead
to a loss of investor and customer confidence, resulting in higher cost of capital and
decreased revenues.
Policies such as the Stora Enso Code and Supplier Code of Conduct ensure that the Board
has oversight. Continuous and mandatory training sessions for employees and, occasionally
for, suppliers guarantee that the policies are being implemented, and audits are conducted
to monitor that Stora Enso’s requirements are met. Stora Enso has established a Speak Up
Hotline, through which employees and any third party globally can anonymously report
potential non-compliance cases. All reported cases are subject to an established
investigation and reporting process, with proven cases leading to actions. Stora Enso
continuously engages with its stakeholders to enhance relationships, to respond to
developing needs, and inform its strategy.
Stakeholder engagement, internal and external, is key to building and
fostering a strong corporate reputation. It ensures good
communication flows and solid collaborative alliances. Consistently
delivering high quality, compliant products and services is the
foundation of Stora Enso’s brand reputation. Stora Enso provides visibility
into its sustainability roadmap, deliver on its key commitments and
comply with the evolving regulatory framework through stringent
processes. Finally, the Group ensures strong community outreach and
involvement in the areas where is has operations.
Strategic risks
Macroeconomy,
geopolitics, and
currency rates
Changes in global economic conditions, such as sharp market corrections and foreign
exchange volatility, could have a negative and material impact on Stora Enso’s profit, cash
flows and financial position.
Stora Enso is exposed to several financial market risks, which the Group is responsible for
managing under policies approved by the Board of Directors. The objective is to achieve
cost-effective funding for Group companies and manage financial risks by using financial
instruments to reduce earnings volatility. The main exposures for the Group, besides
currency risk, are interest rate risk, liquidity risk, refinancing risk, commodity price risk and
credit risk.
Financial risks are discussed in detail in note 5.1 Financial risk management.
Stora Enso has a diversified portfolio of businesses which mitigates exposure to any one
country or product segment. The external environment is continuously monitored and
planning assumptions take into account important near- to medium-term and long-term
drivers and risks related to key macro-economic factors.
Compliance with the Board-approved risk appetite is closely monitored and cash flow and
liquidity are actively managed. Stora Enso hedges 15–60% of the highly probable 12-month
net foreign exchange flows in main currency pairs. Currency translation risk is reduced by
funding assets, whenever economically possible, in the same currency as the asset.
The divisions regularly monitor their order flows and other leading indicators, where
available, so they can respond quickly to a deterioration in trading conditions. In the event of
a significant deterioration in general economic condition and in main leading economic
indicators, the Group has the ability to implement cost reduction measures to offset the
impact on margins from a decline in sales.
Despite the volatility in the macroeconomy, global megatrends drive
the demand for renewable materials supporting Stora Enso’s growth
and value creation. A diverse business portfolio and geographical
presence, competitive strength and resilient balance sheet reduce the
Group’s risk exposures.
Climate change –
physical impacts
Long-term (25–30 years) changes in precipitation patterns, periods of drought, frequent
extreme weather events and higher average temperatures that increase the risk of forest
fires and insect outbreaks, could cause damage to operations, forests and tree plantations,
affecting forests asset values and regional wood prices. Milder winters could also impact on
the harvesting and transport of wood, as well as related costs in northern regions. More
frequent extreme weather events also increase the risk of disruptions in the production,
logistics and supply of raw materials and energy. In 2024, the focus was on deep dives into
specific physical risk impacts and further developing transition scenarios.
Physical risks are largely subject to risk transfer and therefore covered by Stora Enso’s
property and business interruption insurance programmes. With regards to forest and
plantation assets, Stora Enso benefits from strategic resilience through geographical
diversification within its asset portfolio. Diligent plantation planning ensures the avoidance of
frost sensitive areas, and R&D programmes are applied to increase tolerance to extreme
temperatures. Stora Enso maintains a diversity of forest types and structures and enforces
diversification in wood sourcing. Wood harvesting in soft soils involves the implementation of
best practices guidelines.
Nordic forests in Finland and Sweden could also benefit from increased
heat summation and longer growing seasons, leading to accelerated
forest growth with a direct positive impact on the value of Stora Enso’s
own forest assets and an indirect impact related to market wood
availability and costs.
Biodiversity loss
Stora Enso’s forestry and industrial operations have an impact on biodiversity. At the same
time, Stora Enso’s business depends on raw material inputs from natural capital, such as
wood and fresh water. Biodiversity is essential for maintaining the stability of ecosystem
processes in changing environments. Biodiversity loss can negatively impact the value of
Stora Enso’s forest assets and acceptability of wood as a raw material. Read more in the
TNFD chapter.
Stora Enso is committed to achieving a net positive impact on biodiversity in its own forests
and plantations through active biodiversity management. Biodiversity management is an
integral part of all Stora Enso’s forest and plantation management practices. Operations are
supported by new technologies and digitalisation, as well as continuous research and
innovation. For example, Stora Enso’s forest units have established special programmes
focusing on biodiversity management. In addition, Stora Enso uses tools, such as wood
traceability and forest certification, and engages in collaboration with various stakeholders
to protect ecosystems and safeguard natural resources.
Sustainable forest management maintains forest health and vitality.
Active biodiversity management and conservation in Stora Enso’s forest
operations, such as spatially optimising the volume of deadwood and
protection of key habitats, contribute to a positive biodiversity impact.
Healthy and biodiverse forests improve resilience against external
calamities and a changing climate.
Competition and
market demand
The packaging, pulp, paper, and wood products industries are mature, capital-intensive and
highly competitive. Stora Enso’s principal competitors include several large international
forest products companies and numerous regional and more specialised competitors.
Customer demand is influenced by general economic conditions and inventory levels, which
in turn affect product price levels. Product prices, which tend to be cyclical, are affected by
capacity utilisation, which decreases in times of economic slowdowns. Price changes differ
between products and geographic regions. See Table 1 for the operating profit sensitivity to a
+/- 10% change in either price or volume for different segments.
The ability to respond to changes in product demand and consumer preferences and to
develop new products on a competitive and economic basis requires innovation, continuous
capacity management, and structural development. Risks related to factors such as
demand, price, competition, and customers are regularly monitored by each division and
unit as a routine part of business management. These risks are also continuously monitored
and evaluated at the Group level to gain a perspective on Stora Enso’s total asset portfolio
and overall long-term profitability potential.
Stora Enso, one of the largest private forest owners in the world, also
benefits from a strategic renewable resource base. The Group’s
expertise in wood and wood-based renewable materials is focused on
responding to changing customer and consumer preferences, driven
by climate change.
Products based on renewable materials with a low carbon footprint
help customers and society at large to reduce CO2 emissions by
providing an alternative to solutions based on fossil fuels or other non-
renewable materials.
Risk
Description
Mitigation
Opportunity
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Our people
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Shareholders
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Regulatory changes
Stora Enso’s businesses may be affected by political or regulatory developments in any of
the countries and jurisdictions where it operates, including changes to forest, biodiversity,
environmental, fiscal, tax or other regulatory regimes. Potential impacts include higher costs
and capital expenditure to meet new requirements, the expropriation of assets, imposition of
royalties or other taxes targeted at the industry, and requirements for local ownership or
beneficiation.
The EU Green Deal and its climate targets for 2030 and 2050 have resulted in a proliferation
of future legislation and may impact Stora Enso’s future operations. The policy initiatives from
the European Commission include policies and legislation on areas such as the EU Forest
and Biodiversity strategies, the Renewable Energy Directive, the EU Emission Trading System
(ETS), the European Sustainable Products Regulation (ESPR), the Packaging and Packaging
waste revision as well as EU taxonomy.
Political decisions on forest resources, could limit the availability of wood, increase costs and
reduce investment opportunities.
Stora Enso has been granted various investment subsidies and has made certain
investment commitments in different countries such as Finland, China and Sweden. If
committed planning conditions are not met, local officials may pursue administrative
measures to reclaim some of the previously granted investment subsidies or impose
penalties on Stora Enso. The outcome of such a process could result in a negative financial
impact on Stora Enso.
Active monitoring of regulatory and political developments in the countries where Stora Enso
operates as well as participation in policy development primarily through industry
associations and other partnership programmes are important risk mitigation measures
related regulatory changes.
Regulatory changes can also present significant opportunities by
driving market growth for sustainable products and creating
competitive advantage through resource efficiency and renewability.
Strategic
investments
To succeed in implementing its strategy, Stora Enso must understand the needs of its
customers and find the best way to serve them with the right offering and the right
production asset portfolio. Failure to complete strategic projects in accordance with the
agreed schedule, budget or specifications can, therefore, have serious impacts on Stora
Enso’s financial performance. Significant, unforeseen changes in costs or an inability to sell
the envisaged volumes or achieve planned price levels may prevent Stora Enso from
achieving its business goals.
Risks are mitigated through thorough and detailed pre-feasibility and feasibility studies
which are prepared for each large investment. Investment guidelines stipulate the process,
governance, risk assessment, management and monitoring procedures for strategic
projects, including climate related risk factors. The guidelines also require the calculation of
potential cost and income for CO2 emissions as part of the investment proposal,
Environmental and Social Impact Assessments (ESIAs) are conducted for all new projects
that could cause significant adverse effects in local communities. Post completion audits are
carried out for all significant investments.
Replacing fossil-based materials by innovating and developing new
products and services based on wood and other renewable materials.
Mergers, acquisitions,
and divestments
Failure to realise the expected benefits from the acquisition of a company or asset can have
serious financial impacts on Stora Enso. The Group may also find itself liable for past acts or
omissions of the acquired business, without any adequate right of redress. Failure to achieve
expected values from the sales of assets or deliveries beyond the expected receipt of funds
may also impact Stora Enso’s financial position. Divestments or business restructuring may
involve additional costs due to historical and unaccounted liabilities as well as reputational
impacts.
Rigorous M&A guidelines, including due diligence procedures are applied to the evaluation
and execution of all acquisitions. Structured governance and policies, such as the policy for
responsible right-sizing, are followed when making restructuring decisions.
A strong balance sheet and cash flow enable value enhancing M&A,
when the timing and opportunity are right.
Operational risks
Personal safety –
employees and wider
workforce
Failure to maintain high levels of safety management can result in harm to Stora Enso’s
employees and contractors, as well as to communities near our operations and the
environment. Impacts in addition to physical injury, health effects and environmental
damage could include liability to employees or third parties, damage to reputation, or an
inability to attract and retain skilled employees. Government authorities could also enforce
the closure of our operations on a temporary basis.
Personnel safety and security can never be compromised. Therefore, Stora Enso must be
aware of potential safety risks and provide adequate guidelines to people for managing risks
related to, for example, travelling, working, and living in countries with security or crime
concerns.
Stora Enso’s goal is to provide an accident-free workplace. Encouraging a Group-wide safety
culture means that everyone is responsible for making every workday healthy and safe –
from top management throughout the Group. The approach to safety extends to
contractors, suppliers, and on-site visitors. Everyone is encouraged to share feedback and
suggest ideas for further improving safety. Additionally, safety is promoted among
contractors and suppliers through a dedicated e-learning. The Group also emphasises the
importance of safety by asking suppliers to provide information on their safety performance
in the tendering process.
Stora Enso’s Health and Safety Policy defines the objectives for safety management, as well
as the governance model for managing health and safety topics in practice and integrating
them into annual planning and reporting.
Achieving strong health and safety performance can enhance Stora
Enso’s employer brand, as well as improve engagement, efficiency and
productivity.
Risk
Description
Mitigation
Opportunity
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Our people
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Shareholders
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Physical assets
The installed capacity of Stora Enso’s production facilities has an inherent risk of potential for
failure or off-specification operations, which could result in poor product quality, unplanned
production downtime, lower output, or increased production costs. It may also impact Stora
Enso’s ability to meet delivery commitments and business plan objectives. In some
instances, these risks arise from inherent design deficiencies, failures in the mode of
operation, or operating practices. The most significant asset risks are predominantly in
integrated pulp and board production and related energy generation.
Protecting production assets and business results is a high priority for Stora Enso. This is
achieved through structured methods of identifying, measuring and controlling different
types of process risk and exposure. Divisional risk specialists manage this process together
with insurance companies and other loss prevention specialists. Each year a number of
technical risk inspections are carried out at production units. Risk improvement programmes
and cost-benefit analyses of proposed investments are managed through internal reporting
and risk assessment tools.
Internal and external property loss prevention guidelines, fire loss control assessments, key
machinery risk assessments and specific loss prevention programmes are also utilised.
Planned stoppages for maintenance and other work are important to keep machinery in
good order.
Preventive maintenance programmes and spare part criticality
analyses are utilised to secure the high availability and efficiency of key
machinery.
Product safety
Some of Stora Enso’s products are used for packaging liquids and food consumer products,
where any defects could affect health or packaging functionality, leading to costly product
recalls. Wood products are used in construction, potentially exposing Stora Enso to product
liability related to failures in structural design, product selection or installation. Failure to
ensure product safety could result in recalls involving significant costs including
compensation for customers’ indirect expenses, and reputational damage.
Mills producing food and drink contact products have established certified hygiene
management systems based on risk and hazard analysis. To ensure product safety, Stora
Enso actively participates in CEPI (Confederation of European Paper Industry) working groups
on chemical and product safety. In addition, Stora Enso mills have certified ISO quality
management systems. Contractual liability limitation and insurance protection further
mitigate Stora Enso’s risk exposure.
Stora Enso recognises the opportunity of differentiation and value
creation through superior product quality and the highest level of
product conformity.
People and
capabilities
Competition for personnel is intense and Stora Enso may, in the long term, not be successful
in attracting or retaining qualified personnel. The loss of key employees, the inability to
attract new or adequately trained employees, or a delay in hiring key personnel could
seriously harm Stora Enso’s business and impede reaching the Group’s strategic objectives.
Labour market disruptions and strikes, especially in times of restructuring and redundancies
due to divestments and mill closures or during labour market negotiations, could also have
adverse material effects on Stora Enso’s business, financial position and profitability.
Stora Enso manages the risks and loss of key talents through a combination of different
actions. Some of the activities aim towards making the Stora Enso employer brand better
known both internally and externally, globalising some of the remuneration practices and
intensifying the efforts to identify and develop talents. Finally, the Group actively focuses on
talent and management assessments, including succession planning for key positions. The
majority of employees are represented by labour unions under several collective
agreements in different countries where Stora Enso operates, thus relations with unions are
of high importance to manage labour disruption risks.
Stora Enso recognises that skilled and dedicated employees are
essential for success. Engaged, high-performing individuals drive the
implementation of transformation strategy and contribute to
commercial success.
Sourcing
Increasing input costs or challenges in availability of materials, goods and services may
adversely affect Stora Enso’s profitability. Securing access to reliable, low-cost supplies and
proactively managing costs and productivity are key priorities. Reliance on external energy
suppliers also makes Stora Enso susceptible to fluctuations in energy market prices.
Additionally, the supply chain faces heightened risks of disruption due to cyber incidents,
political instability, and other factors related to global trade. See Table 2 for Stora Enso’s
major cost items.
In many areas Stora Enso depends on suppliers and their ability to deliver products or
services on time and at required quality. Key inputs include fiber, chemicals, energy, and
machinery and equipment for capital investment projects. Increased demand for carbon
neutral primary and secondary biomass fuels may drive up energy costs. Critical services,
such as transport and outsourced business support, are also essential. For some of these
inputs, reliance on a limited number of suppliers poses a risk.
Input cost volatility is closely monitored at the business unit, divisional and Group levels, and
a consistent long-term energy risk management approach is applied. Price and supply risks
are mitigated through increased in-house generation, shareholding in competitive power
assets such as PVO/TVO, physical long-term contracts, and financial derivatives.
Stora Enso hedges price risks in raw material and end-product markets and supports the
development of financial hedging mechanisms. A wide range of suppliers is utilised and
monitored to avoid situations that might jeopardise continued production, business
transactions, or development projects.
Suppliers and subcontractors are required to comply with Stora Enso’s sustainability
standards, as they form part of the Group’s value chain. These sustainability requirements,
along with audit schemes encompass raw materials, and other goods and services
procured. Suppliers are assessed for risks related to environmental, social and business
practices using an internal risk assessment tool. Supplier Code of Conduct audits are
conducted for high-risk suppliers, and findings from these audits are followed-up. If
mitigation is not possible, supplier contracts may be terminated.
Stora Enso also has the opportunity to add value and drive innovation
globally by building strong, measurable relationships with top suppliers,
enforcing harmonised sourcing processes to enhance capabilities,
improve tender quality, reduce costs, and nurture sustainable suppliers.
Risk
Description
Mitigation
Opportunity
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Our strategy
Our people
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Shareholders
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Information
technology, security,
and digitalisation
Stora Enso is dependent on IT systems for both internal and external communications and
for the day-to-day management of its operations. Information systems, personnel, and
facilities are subject to cyber security risks, such as ransomware. In addition, the accidental
disclosure of confidential information due to a failure to follow information handling
guidelines, as a result of an accident or criminal act, may result in financial damage,
penalties, disrupted or delayed launch of new business lines or ventures, loss of customer
and market confidence, loss of research secrets, breach of data privacy regulations, and
other business-critical information.
The management of risks is actively pursued in the Information Risk Management System,
and best practice change management and project methodologies are applied. We actively
work to prevent cybercrime. Several security controls have been implemented to strengthen
the protection of confidential information and to ensure compliance with international
regulations.
Opportunities may arise from efficient operations, performance
optimisation, innovative product offerings. New customer services
through digitisation also present potential benefits. Additionally,
sophisticated IT systems, as well as new technologies offering
significant potential for higher level of process optimisation and
automatisation. These improvements can generate new business and
enhance value propositions for customers and consumers.
Ethics and
compliance
Stora Enso operates in a highly regulated business area and is therefore exposed to risks
related to breaches of applicable laws and regulations, including those related to capital
markets regulation, company and tax laws, customs, the environment, human rights, and
safety. This also covers areas addressed by policies such as the Stora Enso Code and
Business Practice Policy, including fraud, anti-trust, corruption, conflict of interests, and other
forms of misconduct. Breaches may lead to high compliance and remediation costs,
including prosecution costs, fines, penalties, and contractual, financial, and reputational
damage.
Stora Enso’s Ethics and Compliance Programme, which includes policy setting, promoting
values, training, knowledge sharing and grievance mechanisms, is continuously updated
and developed. Other compliance mechanisms include Stora Enso Group’s internal control
system and Internal Audit assurance, as well as the Supplier Code of Conduct in supplier
contracts, risk assessments, trainings and audits. In response to capital markets regulations,
Stora Enso’s Disclosure Policy emphasises the importance of transparency, credibility,
responsibility, proactivity and interaction.
Environmental risks are minimised through environmental management systems and
environmental due diligence for acquisitions and divestments, and indemnification
agreements where effective and appropriate remediation projects are required. Special
remediation projects related to discontinued activities and mill closures are executed based
on risk assessments.
Focusing on ethics in a wider sense, rather than merely complying with
laws and regulations, promotes a value-driven and more successful
business, fosters accountability, and enhances corporate reputation.
Risk
Description
Mitigation
Opportunity
The table 1 shows the operating profit sensitivity to a +/- 10% change in either price or volume for different segments
based on figures for 2024.
Table 1. Operating profit: Impact of changes +/- 10%, EUR million
Segments
Price
Volume
Packaging Materials
418
102
Packaging Solutions
96
34
Biomaterials
145
57
Wood Products
147
28
Forest
279
11
The table 2 shows Stora Enso’s major cost items.
Table 2. Composition of costs in 2024
Operative costs
% of costs
% of sales
Logistics and commissions
11%
10%
Manufacturing costs
Fiber
36%
34%
Chemicals and fillers
8%
7%
Energy
6%
6%
Material
10%
9%
Personnel
14%
14%
Other
9%
8%
Depreciation
6%
6%
Total costs and sales
100%
94%
Total operative costs and sales in EUR million
8,538
9,049
Associated companies, operational
87
Adjusted EBIT (EUR million)
598
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Our strategy
Our people
Governance
Shareholders
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Financial Statements
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Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
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Assured 69
Sustainability
Statement
In this section
General information
70
Environmental information
86
Social information
113
Governance information
124
General information
In this section
Basis for preparation
70
Governance
70
Strategy
73
Impact, risk and opportunity management
76
General basis for preparation of the Sustainability
Statement (BP-1)
Stora Enso’s Sustainability Statement has been prepared on a
consolidated basis in accordance with Chapter 7 of the Finnish Accounting
Act and the European Sustainability Reporting Standards (ESRS). It follows
the same consolidation principles as the Financial Statements prepared in
accordance with the IFRS Accounting Standards. Unless otherwise stated,
the Group’s consolidated performance figures expressed in this report
relate to the parent company, Stora Enso Oyj, and all companies in which
the Group holds 50% or more of the voting rights, directly or indirectly. For
more information on Group’s structure, see Financial Statements, note 6.2
Group structure.
Joint control refers to the contractually agreed sharing of control of a joint
arrangement, which exists only when decisions on relevant activities
require the unanimous consent of all parties sharing control. Joint
operations are joint arrangements in which the parties with joint control
have rights to the assets, and obligations for the liabilities associated with
the arrangement.
Stora Enso has two joint operations, Veracel in Brazil and Montes del Plata
in Uruguay. In both companies, Stora Enso holds a 50% ownership. In the
Group’s Financial Statements, the joint operations are recognised and
consolidated based on Stora Enso’s share of the assets, liabilities, revenues,
expenses, and cash flows of the joint operation.
In its current adopted form, ESRS lacks guidance on the consolidation
principle for joint operations. Regarding its joint operations, Stora Enso does
not have full authority to introduce and implement operating policies,
practices, and targets, rendering most of the ESRS reporting requirements
invalid. The same principle applies to financial reporting, where the Group’s
joint operations follow their own financial risk policies, which may differ
from those of Stora Enso. Unlike financial reporting, where joint operations
comply with IFRS accounting standards, joint operations do not adhere
to ESRS.
To ensure consistency with Stora Enso’s financial reporting, the
Sustainability Statement covers information proportional to Group's
ownership in the joint operations in the following ESRS disclosure
requirements: E1-5, E1-6, E1-7, E2-4, E3-4, E4-5, E5-4, E5-5, and S1-6 (total
number of employees). These disclosures encompass all intensity ratios
related to the Group’s financial revenue. However, due to the lack of full
authority over daily operations, joint operations are not governed by Stora
Enso’s policies, internal controls, or targets.
Following the double materiality principle, Stora Enso’s Sustainability
Statement contains relevant upstream and downstream value chain
information where necessary to understand the Group’s material impacts,
risks, and opportunities and to provide information that meets the
qualitative characteristics outlined in the Corporate Sustainability
Reporting Directive (CSRD). In the descriptions of material topics, joint
operations are referred to as ‘joint operations’ to distinguish them from the
Group’s own operations, over which the Group has full authority regarding
the operating policies.
Due to the sensitivity of information, Stora Enso has exercised the option to
not to disclose specific details related to intellectual property, know-how,
or the outcomes of innovation. In accordance with the Finnish Accounting
Act chapter 7 13 § (21.12.2023/1249), Stora Enso does not disclose information
on impending developments or matters under negotiation. Following the
Finnish Accounting Act, Stora Enso has also opted to omit value chain
metrics and comparative data from previous periods for the first
reporting year.
This Sustainability Statement has been verified by an independent third-
party assurance provider in accordance with the Finnish Auditing Act.
PricewaterhouseCoopers Oy has provided a level of Limited Assurance,
using the ESRS Standards and the requirements of the delegated acts of
the Taxonomy Regulation serving as criteria, covering the Sustainability
Statement as defined under BP-1. PricewaterhouseCoopers Oy applies the
International Standard on Quality Management (ISQM) 1. Additionally, a
level of Reasonable Assurance, using the GHG Protocol as criteria, has
been provided for Stora Enso’s reporting on direct and indirect greenhouse
gas (GHG) emissions (Scope 1 and 2). The Assurance Reports are available
on page 216 of the Annual Report.
Disclosures in relation to specific circumstances (BP-2)
Stora Enso’s Sustainability Statement fulfils the characteristics of specific
circumstances in some of its disclosures.
Due to the nature of Stora Enso’s operations, the time horizons differ from
the definitions provided in the CSRD. For risks, Stora Enso defines short-term
as up to one year, medium-term as two to ten years, and long-term as ten
years or more. This definition aligns with Stora Enso’s enterprise risk
management process.
Stora Enso applies phase-in provisions in accordance with Appendix C of
ESRS 1 and does not disclose anticipated monetary impacts of
environmental risks for the financial year 2024. The phase-in provisions are
applied to E1-9, E2-6, E3-5, E4-6, E5-6, S1-7, S1-8 (covers only EEA countries),
S-11, S1-13, and S1-14 (88 d, e).
In cases involving value chain estimation, outcome uncertainty, and
disclosures stemming from other legislation or generally accepted
sustainability reporting pronouncements, the information is presented
alongside the accounting principles of each metric. In ESRS E1-6, the
metrics related to Scope 3 are subject to a higher level of measurement
uncertainty, due to the data encompassing the full value chain.
Unless otherwise stated, the metrics disclosed in the Sustainability
Statement have not been validated by an external body other than the
assurance provider.
The role of the administrative, management,
and supervisory bodies (GOV-1)
The Board and the President and CEO (CEO) are responsible for the
management of the Company. The Board supervises the operation and
management of Stora Enso and decides on significant matters relating to
strategy, investments, organisation, and finance. It is also responsible for
overseeing the proper supervision of accounting and the control of
financial and sustainability matters. The CEO is responsible for the day-to-
day management of the Company in accordance with the Finnish
Companies Act and the instructions and orders issued by the Board. Other
governance bodies have an assisting and supporting role.
The duties of the various bodies within Stora Enso are determined by the
laws of Finland and by the Company’s corporate governance policy, which
complies with the Finnish Companies Act and the Finnish Securities Market
Act. The working order of the Board sets out the Board’s working practices
of the Board, and the tasks and responsibilities of the Board committees
are defined in their charters. There is no employee representative on the
Board.
The Corporate Governance Policy addresses corporate governance within
Stora Enso. The Group Risk Policy outlines the overall approach to
governance and the management of risks in accordance with the COSO
(Committee of Sponsoring Organizations) framework and in line with ISO
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
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Financial Statements
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Assured 70
31000. Both policies are approved by the Board of Directors. The Board’s
work is supported by its committees:
Financial and Audit Committee (FAC): Supports the Board in maintaining
the integrity of the Company’s financial and sustainability reporting, as
well as the Board’s control functions.
People and Culture Committee (PCC): Responsible for recommending
and evaluating executive nominations and remunerations, and making
recommendations to the Board on management remuneration issues.
Sustainability and Ethics Committee (SECo): Responsible for overseeing
the Company’s sustainability and ethical business conduct, impacts, risks,
and opportunities; supporting the FAC in approval of the Report of the
Board of Directors; and approving sustainability targets.
The Board of Directors, the Sustainability and Ethics Committee, and the
Financial and Audit Committee charters were updated in 2024 to reflect
new regulatory requirements on sustainability reporting. In addition, the
Sustainability and Ethics Committee’s agenda was realigned to prioritise
material topics, and the Committee’s collaboration with the Financial and
Audit Committee was strengthened. The Sustainability and Ethics
Committee reviews, evaluates, and oversees Stora Enso’s double
materiality assessment, including the identified material impacts, risks,
and opportunities, was well as the associated targets and action plans.
The Board approves the double materiality assessment. Furthermore, the
Financial and Audit Committee reviews and supports the material content
of the Sustainability Statement, as recommended by the Sustainability and
Ethics Committee, for inclusion in the Report of the Board of Directors,
subject to Board approval.
As stipulated by the Board Diversity Policy, the merits of directors include
knowledge of the Company’s operational environment, its markets, and
the industry in which it operates. This may also encompass elements such
as financial, sustainability or other specific competencies, geographical
representation, and business background as required to achieve the
appropriate balance of diversity, skills, experience, and expertise on the
Board collectively. In 2024:
• The Board comprised eight members, all non-executive.
• Diversity: 50% gender balance, with an average ratio of female to male
board members being 1:1. The age range was 51 to 69 years, and the
members represented five different nationalities.
• 2/8 of the Board members had industry experience, 3/8 had specific
experience in emerging markets, and all members had experience in
global business and operational management.
• 100% of the Board members were independent of the Company. Three of
the Board members were independent of the Company but not of its
significant shareholders.
In 2024, five of the Board members possessed sustainability or ESG-related
expertise as their primary skill. Additionally, two of the Board members had
specific expertise in sustainability-driven innovation. These skills are
aligned with the material topics identified as part of Stora Enso’s transition
plans: Climate change, Biodiversity and Circularity. Two out of the three
members of the Sustainability and Ethics Committee possessed expertise
in governance and compliance as their primary skill, and all the members
of the Financial and Audit Committee held this expertise. All Board
committees are allowed to engage external consultants and experts when
necessary. To ensure access to sufficient and relevant sustainability
expertise and skills, the Group’s subject matter experts present
sustainability topics and updates to the committees. More details are
provided under ESRS 2 GOV-2.
The Sustainability and Ethics Committee comprises two to four Board
members who are nominated annually by the Board. At least one
Committee member is expected to have sufficient prior knowledge and
experience in handling sustainability and business ethics matters. To
ensure the Board’s insight and competence on the Company’s material
sustainability-related topics, the Board regularly reviews and discusses
material impacts, risks and opportunities, targets, and external reporting
as described below under ESRS 2 GOV-2.
The CEO is responsible for overseeing effective risk management and
internal controls over financial and sustainability reporting. The Group
Internal Control function, supervised by the CFO and Group Controller, is
accountable for internal control governance, processes and tools. Division
internal control functions execute the internal control processes within
their respective divisions. The head of Enterprise Risk Management,
reporting to the Executive Vice President of Strategy and Sustainability, is
responsible for designing, developing, and monitoring the implementation
of the Group’s risk management framework. To ensure control over the
management of impacts, risks, and opportunities, Stora Enso has set
procedures to update the Board on incidents related to safety and
environmental non-compliances. In addition, the Board is responsible for
annually approving the updated Double Materiality Assessment and
reviewing strategic and operational risks.
Sustainability work is led by the Executive Vice President (EVP) responsible
for strategy and sustainability, who reports directly to the CEO and is part
of the Group Leadership Team (GLT). The CEO holds ultimate responsibility
for the successful implementation of Company’s sustainability agenda.
The Sustainability Council, which includes Heads of Sustainability from the
divisions, steered Stora Enso’s sustainability efforts in 2024. Chaired by the
SVP, Group Sustainability, the Council’s work involves identifying longer-
term opportunities and challenges that may require a Group-wide
response, as well as the sharing of good practices. The EVP Legal, General
Counsel, is responsible for ethics and compliance matters at Stora Enso
and reports to the CEO. Both the Group Leadership Team and the Board of
Directors are regularly updated on sustainability progress and other
topical issues. Group functions leading the work in their specific areas
propose Stora Enso’s sustainability targets related to material impacts,
risks, and opportunities, which are then approved by the Board’s
Sustainability and Ethics Committee. The Board of Directors receives
quarterly updates on performance against the targets.
Information provided to and sustainability matters
addressed by the administrative, management, and
supervisory bodies (GOV-2)
The key role of the Sustainability and Ethics Committee includes agreeing
on sustainability focus areas based on materiality, approving sustainability
targets, supporting the FAC in providing recommendations for the Report
of the Board of Directors’ approval, and approving targets for the next year.
Furthermore, the Sustainability and Ethics Committee receives in-depth
updates twice a year on material topics, which are held together with
the divisions. This ensures that the Board is well-informed about these
significant topics and possesses the necessary expertise in relation
to them.
The main responsibilities of the Sustainability and Ethics Committee
include determining the key sustainability focus areas based on their
materiality, approving sustainability targets, and supporting the Financial
and Audit Committee in providing recommendations for the approval of
the Board of Directors’ Report. All non-compliance cases are reported to
the Sustainability and Ethics Committee upon completion, and cases
related to fraud or the integrity of financial reporting are also reported to
the Financial and Audit Committee. Significant non-compliances are
reported to Sustainability and Ethics Committee within 24 hours of their
occurrence.
The Sustainability and Ethics Committee receives regular updates and
engages in discussions with the management, as outlined below in the
table. This is done to ensure that the Board remains well-informed about
the material topics, follows a structured annual process for reviewing and
approving material sustainability issues, and possesses the necessary
expertise in relation to them.
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Our people
Governance
Shareholders
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Quarterly updates and
discussions
•
Safety (TRI and fatalities) statistics
•
Ethics and Compliance incident reviews
•
Review of the quarterly sustainability scorecard to
assess performance against sustainability targets
Bi-annual updates and
discussions
•
Deep dives into material sustainability topics with
divisions on the management of significant risks,
impacts, and opportunities
•
Sustainability focus areas: proposal and agreement
Annual updates and
discussions
•
Integrated ERM and Double Materiality Assessment
review with the Financial and Audit Committee
•
Approval of sustainability targets
•
Review of the Sustainability Statement and support to
Financial and Audit Committee in providing
recommendations to the Board for the approval of
the Board of Directors Report
Matters addressed by Sustainability and Ethics Committee
In addition to the topics listed above, the Board receives updates and
discusses other material sustainability topics as needed. The updates are
provided by the GLT members and their teams, primarily Group
Sustainability and Group Legal. In 2024, these included the Company’s net
zero plan for 2040, an environmental incident at Stora Enso’s harvesting
site, the implementation plan for the due diligence process in accordance
with the Corporate Sustainability Due Diligence Directive, and an ESG
update on market information and international remuneration disclosure
practices. The description of the Board’s involvement in the double
materiality assessment and the setting of thresholds is presented under
ESRS 2 IRO-1 and the outcome of the assessment is disclosed under ESRS 2
SBM-3.
The Board supervises the operation and management of Stora Enso and
decides on significant matters relating to strategy, investments,
organisation, and finance. Information on the development of essential risk
areas, as well as executed and planned activities in these areas are
regularly communicated to the FAC. SECo receives regular updates on
material sustainability topics, including related impacts, risks and
opportunities as described above. The two Committees present a report
on each meeting to the Board to be utilised in the Board’s approval,
supervisory and decision-making processes. Risks are reviewed jointly with
the FAC and SECo to ensure a holistic approach to overseeing Company
risks. In accordance with the Board’s working order, matters handled in the
meetings include, among others, the approval of major investments and
divestments. The Group’s Investment Guidelines address sustainability
matters to be considered, but do not provide specific guidance on
potential trade-offs.
Integration of sustainability-related
performance in incentive schemes (GOV-3)
Stora Enso’s incentive programmes are designed to drive alignment with
common objectives and to create engagement by setting clear targets
that each business unit or employee can influence. They consist of both
financial and non-financial metrics. For short-term incentives (STI), targets
are set for one year and potential payout takes place annually. All of the
Group’s own employees are eligible to participate in a bonus plan.
The long-term incentive plan (LTI) is primarily targeted at individuals who
have the greatest impact on the Company’s long-term success and
performance. The purpose of the LTI plan is to incentivise and align
management with shareholder interests and the Company’s long-term
strategy. The targets for the LTI plan are set for a three-year period, and
payouts in Stora Enso shares are based on the Company’s performance
against set targets.
1
The Board’s remuneration is not directly linked to the Company’s
performance, but may be paid partly in Company shares, as decided by
the Annual General Meeting.
Since 2022, sustainability measures have been part of the Company’s
variable remuneration. Sustainability-related objectives are integrated
into the STI plans of all employees, currently focusing on occupational
safety measures. These objectives extend to the short-term incentive
programmes of the CEO
1, CFO, other Group Executives, as well as division
and business unit management. For the STI 2024 (payable in 2025), 10% is
allocated to safety performance. The LTI plan encompasses around 300
key employees. In the LTI plan, sustainability metrics focus on carbon
emission reduction (10%), and improving gender balance (10%) with the
exception of the CEO Performance Share Plan (18 September 2023–30
September 2025), in which the sustainability metrics relate only to the
carbon emission reduction. The sustainability performance criteria align
with Stora Enso’s key sustainability targets and key performance indicators
(KPIs), thereby contributing to the overall fulfilment of the Group’s
sustainability ambition.
The Remuneration Policy describes Stora Enso’s main principles and the
decision-making process for the remuneration of the members of the
Board, President and CEO. The performance metrics defined in the policy
include sustainability targets as decided by the Board. The Board regularly
reviews and defines key performance indicators, both financial and non-
financial, to measure the progress of the Company and the completion of
strategic objectives. The Group’s remuneration programmes are based on
this set of key performance indicators. Shareholders at the Annual General
Meeting have established a Shareholders’ Nomination Board, which is to
exist until otherwise decided, and will annually prepare proposals for the
Annual General Meeting’s approval concerning the number of members of
the Board of Directors, the Chair, Vice Chair and other members of the
Board, as well as the remuneration for the Chair, Vice Chair and members
of the Board and its committees. The compensation of the President and
CEO is decided by the Board based on the evaluation and proposal by the
Board’s People and Culture Committee, and the Company’s Remuneration
Policy.
1 In accordance with the conditions outlined in the Remuneration Policy 2022, the appointment of a new CEO
allows for exemptions from the policy. The Board has decided to exercise this right in the context of
nominating the new CEO to ensure full focus on profit turnaround, cash flow improvements, and enhanced
competitiveness. The deviation pertains to the performance periods of incentive plans. Following the
conclusion of these performance periods, which are tied to the CEO’s appointment, the CEO’s incentive plans
will align with those of the Group Leadership Team, as periodically determined by the Board.
Statement on due diligence (GOV-4)
Stora Enso takes precautionary and systematic action to mitigate and
remedy potential adverse environmental and social impacts through, for
example, the following processes and tools:
• Due diligence, in which the Company evaluates the impact that current
or potential business operations may have on local communities and
the environment.
• Third-party certified management systems in place at production units
that apply international standards such as ISO 14001, ISO 45001, and ISO
50001.
• SMETA audits focusing on social matters and working conditions.
• Third-party forest management certification for the Group’s own forestry
operations and suppliers, such as FSC
1 and PEFC
2, which also include
community considerations as a prerequisite.
• When necessary, restructuring processes and the closure of operations
are conducted in cooperation with the authorities to support
communities through related changes and to create opportunities for
new business initiatives.
• Grievance mechanisms are available for all external stakeholders,
including communities close to the Group’s operations.
Stora Enso recognises the human rights-related principles of the UN Global
Compact, relevant Children’s Rights and Business Principles, and the
OECD’s Guidelines for Multinational Enterprises. The core elements of Stora
Enso’s due diligence are further described in the following paragraphs:
1 Stora Enso Communications’ FSC® trademark license number is FSC-N001919.
2 Stora Enso PEFC trademark license number is PEFC/02-44-22.
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Our people
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Core elements of due diligence
Paragraphs in the Sustainability Statement
a) Embedding due diligence in
governance, strategy and business
model
ESRS 2 GOV-2, ESRS 2 GOV-3, ESRS 2 SBM-3
b) Engaging with affected stakeholders
in all key steps of the due diligence
ESRS 2 GOV-2, ESRS 2 SBM-2, ESRS 2 IRO-1, ESRS
MDR-P
c) Identifying and assessing adverse
impacts
ESRS 2 IRO-1, ESRS 2 SBM-3
d) Taking actions to address those
adverse impacts
ESRS 2 MDR-A
e) Tracking the effectiveness of these
efforts and communication
ESRS 2 MDR-A, ESRS 2 MDR-T
f) Third-party certified management
systems
ESRS E1-2, ESRS E4-3
Risk management and internal controls over
sustainability reporting (GOV-5)
In 2024, the responsibilities of the Board of Directors were extended to
cover sustainability reporting. Correspondingly, Stora Enso’s internal
control framework was extended to sustainability reporting. A set of
internal controls was designed to provide reasonable assurance
regarding the reliability of the sustainability reporting and adherence to
laws, regulations, policies, and guidelines. Stora Enso’s system of internal
control follows the principles of the framework issued by the Committee of
Sponsoring Organizations (COSO).
The Group’s purpose and values, policies, processes, and structures serve
as the foundation for carrying out internal control across the organisation.
The Board, supported by the Financial and Audit Committee, has the
overall responsibility for setting up an effective system of internal control
and risk management for sustainability reporting. The responsibility is
further delegated within the organisation. The Group Internal Control
function is responsible for internal control governance, processes, tools,
and internal control reporting. Divisional internal control functions are
responsible for executing the internal control processes in the divisions.
Divisions and various support and service functions are accountable for
operating effective internal controls. Internal control responsibilities for
sustainability reporting are described in Stora Enso’s Internal Control Policy.
In 2024, a project to implement internal controls for sustainability reporting
was carried out, encompassing the entire organisation. Risk assessments
were conducted for the end-to-end sustainability reporting processes and
risks were prioritised based on their impact and likelihood. The main risks
identified were related to the accuracy, timeliness, and completeness of
the reporting. To ensure that these risks are appropriately addressed,
internal controls were designed and implemented at potential points of
failure or error in the process, from the source data to consolidation and
disclosures. Control activities implemented include review and approval
processes, verifications, reconciliations, IT general controls, and controls
supported by IT systems. The Sustainability Statement and qualitative data
points are housed in a platform designed to support collaboration and the
structured collection of evidence for claims and data. Control activities
also include the policies, guidelines, procedures, and organisational
structures in place to ensure that management directives are carried out
and that necessary actions are taken to address risks related to the
achievement of objectives concerning sustainability reporting.
The effectiveness of the process for assessing risks and executing control
activities is monitored continuously. Stora Enso’s Internal Control function
oversees control design and effectiveness providing quarterly internal
control reports to management and bi-annual updates to the Board’s
Financial and Audit Committee. In addition, the Stora Enso Group Internal
Audit has an advisory role on governance, risk management, and the
internal control system related to sustainability reporting.
Strategy, business model and value chain (SBM-1)
Stora Enso provides wood-based, renewable products in packaging,
biomaterials, and wooden construction, and is one of the largest private
forest owners in the world. In 2024, the Group’s sales were EUR 9,049 million.
Stora Enso operates in the following ESRS sector groups and related
sectors:
Sector group: Agriculture. Sector: Forestry (code AFO)
Sector group: Manufacturing. Sector: Pulp, Paper & Wood products (MPW)
Stora Enso’s strategy is based on creating value in the circular economy
with renewable, fiber-based products. The Group’s forests serve as a
reliable and long-term source of fiber for its products. Stora Enso’s key
product categories include:
• Packaging materials: liquid packaging board, food service board, fresh
cartonboard, fresh and recycled containerboard, paper
• Packaging solutions: boxes and trays for packaging, packaging design
and automation, converting of carton and corrugated board
• Biomaterials: pulp, innovative bio-based solutions
• Wood products and building solutions: material for mass timber
construction (CLT and LVL), building concepts, sawn and planed wood
Stora Enso’s main market is Europe, accounting for approximately 69% of
sales. The second largest market is the Asia-Pacific region, contributing 13%
of sales. Stora Enso is a business-to-business company, and its key
customer segments include packaging converters, brand owners and
retailers, industrial component manufacturers, and construction
companies. Over half of the Group’s sales are directed toward consumer
end uses. The Group’s financial performance by division and external sales
by destination are presented in the Financial Statements, note 2.1
Segment information.
Stora Enso is a significant employer in its operating countries, employing
approximately 19,000 people at the end of 2024. The number of employees
by countries is presented under ESRS S1-6.
Stora Enso’s long-term ambition is to provide regenerative products and
solutions by 2050 across all markets, and product and customer
categories. This means providing renewable and circular products and
solutions that remove more carbon than they emit and support
biodiversity restoration. Currently, the long-term ambition aligns with the
significant products, markets, and customer groups within the Group. The
majority of the products are designed for reuse, recycling, or energy
recovery at the end of their lifecycle, underscoring the commitment to the
circular economy. Furthermore, Stora Enso has enhanced its metrics for
assessing biodiversity impacts and implemented measures aimed at
restoring biodiversity.
The key sustainability matters impacting the Company’s strategy are
climate change and biodiversity loss, which may adversely affect the
health and resilience of forests and tree plantations, the value of forest
assets, and wood prices. Conversely, the elements of the strategy that
impact sustainability matters are mainly related to the renewable, wood-
based products that serve as alternatives to fossil-based materials and
contribute to mitigating climate change and supporting the circular
economy. The main challenge in terms of sustainability matters lies in the
evolving regulatory landscape and political decisions on forest resources,
which could limit the availability of wood, increase costs, and reduce
investment opportunities.
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Our people
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Stora Enso business model
Stora Enso is a business-to-business company focusing on three key growth areas: renewable packaging, sustainable building solutions, and biomaterials innovation. Pulp and traditional wood products, together with the Company’s
forest assets, form the foundation of the business. The Group procures wood from both internal and external sources, manufacturing it into a range of wood-based products and materials. A global sales and distribution network is used
to deliver products to customers worldwide for further processing. The majority of sales are directed towards consumer end uses. The main business actors include private forest owners, chemical suppliers, transportation and logistics
partners, and the key customer segments detailed in the illustration below.
Transport to Stora Enso production sites
Transport to customers
Securing a reliable supply of raw materials
Stora Enso’s operations
Renewable materials to global customer base
Wood as primary raw material
Purpose
Values
Key customer segments
• Packaging converters, brand owners and retailers, industrial
component manufacturers and construction companies
Products
• Fiber-based packaging materials and solutions
• Materials for mass timber construction, building concepts, sawn
and planed wood
• Bio-based solutions focused on lignin, wood foams,
and biochemicals
• Pulp and traditional wood products
• Owned and leased forest land in Europe and China
• 50% ownership of eucalyptus plantations in Brazil and Uruguay
• Large network of private forest owners providing tactical flexibility
in wood sourcing
Do good for people and
the planet. Replace non-
renewable materials with
renewable products.
Lead.
Do What’s Right.
Other raw materials
Production and conversion units worldwide
• Long-term relationships with key suppliers to ensure a reliable
supply of key raw materials
• Large, global supplier base for key raw materials, such as
chemicals, fillers, and energy
Focused on resource efficiency
• Utilising harvested trees, forestry residuals, and industrial side
streams in the most efficient way
• Developing recycled fiber into new products
• Dedicating efforts and investments towards reducing emissions,
water usage, and energy consumption
Skilled and engaged employees
• Safety as a top priority
• Focus on attracting and retaining top talent to secure future skills
as a purpose-driven, inclusive company
• Professional development with continuous learning and
career growth
Upstream
Own operations
Downstream
Outcomes and benefits
(current and expected)
Financial market
Focused capital allocation driving shareholder value and
sustainable profitable growth: dividends to shareholders, and
interest and principal payments to lenders
Customers and end-users
Helping customers meet consumer demand for low-carbon,
renewable products while maintain the highest product
safety standards
People and communities
Safe and inclusive workplace with opportunities for development
Large supplier network creating indirect employment opportunities
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Interests and views of stakeholders (SBM-2, incl. S1, S2, S3)
Stora Enso’s stakeholder engagement is rooted in both systematic and informal interactions, complemented by
regular surveys on topics such as customer and employee satisfaction. The Group also gains insights through its
established grievance mechanisms. Stakeholder engagement is conducted continuously and is being integrated
into existing engagement practices.
The purpose of the engagement is to:
• build trust and enhance transparency,
• identify market opportunities,
• address concerns and areas for improvement,
• recognise global trends and weak or silent signals,
• promote sustainable business practices, and
• advance industry standards.
Stora Enso engages regularly with affected stakeholders and users of the Sustainability Statement as outlined in
the table to the right. During these engagements, key stakeholders have highlighted the opportunities for Stora
Enso to advance circular economy through its wood-based products, which are aligned with the Group’s business
model. They also emphasised the importance of implementing responsible business practices throughout
operations and the value chain, as these are crucial for securing the long-term acceptability of the strategy.
The outcomes of stakeholder engagement are incorporated into the annual double materiality assessment
process. Moving forward, the Group Leadership Team and the Board of Directors will receive regular updates, at
least annually, regarding the perspectives and interests of affected stakeholders and users of the Sustainability
Statement. These updates will also include potential implications for Stora Enso’s strategy, operations, and
significant sustainability-related impacts.
Stakeholder group
How engagement is organised
Affected stakeholders
Customers
•
Bilateral meetings, newsletters
•
Trade fairs and conferences
•
Customer satisfaction surveys
•
Collaboration to create new services and solutions
Employees
•
Employee engagement survey, performance and development reviews
•
Regular all-employee calls
•
Engagement with union representatives, safety observations, and grievance channels
•
Trainings, such as business ethics and safety
Suppliers and workers in the value chain
•
Continuous collaboration and trainings
•
Supplier audits, human rights assessments
•
Commitment to Stora Enso’s Supplier Code of Conduct and related criteria
•
Grievance channels
Forest owners
•
Bilateral discussions on forest management, forestry services, and wood purchases
•
Forest owner events and webinars
•
Newsletters, forest owner magazines, and digital channels
•
Forest management platforms, such as eMetsä in Finland
Local communities
•
Dialogue and collaboration via different communication channels and meetings
•
Engagement with local authorities and local community councils
•
Volunteering initiatives
•
Group and local level grievance channels
Nature (silent stakeholder)
•
Presented via scientific research, ecological data, and data on the conservation of species
Users of Sustainability Statement
Investors and analysts
•
Investor calls and meetings, webinars, teach-ins
•
Roadshows and conferences, Annual General Meeting, Capital Markets Day
•
Engagement with ESG specialists and investor initiatives
•
Analyst and investor perception studies, ESG ratings
Governments and policymakers
•
Public consultations, bilateral meetings and events
•
Engagement in policy-making processes, advocacy through industry associations
•
Supporting policymakers by providing industry insights and technological capabilities
Non-governmental organisations (NGOs)
•
Knowledge sharing and joint initiatives
Industry and trade organisations
•
Active participation to develop industry practices and collaboration in joint projects
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Our people
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Shareholders
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Assured 75
Material impacts, risks and opportunities and their
interaction with strategy and business model (SBM-3)
Stora Enso’s material impacts, risks, and opportunities, identified through
the double materiality assessment, primarily occur within its own
operations and upstream value chain. Summaries for each material topic
are provided below, with detailed descriptions of the identified impacts,
risks, and opportunities presented at the beginning of each topical
standard. These descriptions also include expected time horizons and
value chain locations.
Environment
In the short-term, Stora Enso has a direct negative impact on climate
change through its GHG emissions from its own operations and an indirect
impact through its value chain. Additionally, the Group has positive
impacts on climate through forest carbon sequestration, carbon stored in
its wood-based products, and substitution of fossil-based materials with
renewable alternatives. Stora Enso also identifies an opportunity related to
its high energy self-sufficiency. The current financial effects of climate
change consist of investments in new boilers and other equipment to
enhance energy efficiency and reduce carbon emissions. In the medium-
term, the Group recognises regulatory risks related to the treatment of
biogenic emissions and the challenge of meeting its Scope 3 reduction
targets. The resilience of Stora Enso’s strategy and business model to
climate change has been tested through various scenario analyses, which
are explained in more detail in ESRS E1. The analyses did not identify
significant risks before 2040.
Regarding pollution, Stora Enso’s industrial activities generate emissions to
air and water across short- to long-time horizons, posing risks of
environmental non-compliance and significant incidents. In addition, Stora
Enso is accountable for environmental provision related to pollution of soil
in Falun, Sweden, spanning a short- to long-term horizon.
From a short- to long-term horizon, Stora Enso’s own production sites rely
on water, especially in board, pulp, and paper production processes.
Although most operational units are in areas with low water stress, the
Group acknowledges the significance of water as a crucial factor in
achieving its objectives. Stora Enso also acknowledges the potential risk of
environmental incidents associated with water discharges, which could
negatively impact freshwater ecosystems. The current financial effects
related to negative impacts include the repayment of grants to
authorities in Belgium. This repayment stemmed from a 2019 legionella-
related incident, classified as an environmental infringement. The case
was resolved in court in 2024.
Owning forest assets provides Stora Enso with strategic advantages. These
include securing a reliable and consistent wood supply, reducing
dependency on external suppliers, promoting environmental stewardship
through sustainable forestry practices, actively managing and preserving
biodiversity, and contributing to carbon sequestration efforts. The Group
has a positive impact through sustainable forest management in its own
operations and upstream value chain. At the same time, Stora Enso
recognises its negative impacts on biodiversity, such as damage to key
habitats or species. Identified risks are include biodiversity loss, non-
compliance with harvesting regulations, and the impacts of climate
change on forest ecosystems.
Stora Enso contributes positively to a circular economy through its
partnerships, and renewable products and solutions. Beyond its own
business activities, business relationships play a critical role in enabling
these positive impacts. However, the Group has also identified negative
impacts associated with raw material sourcing and waste generation.
Stora Enso’s strategy is closely aligned with the principles of the circular
economy, allowing the Group to effectively leverage its products. The
current financial effects from Stora Enso’s material opportunities are tied
to the revenue generated by its products. For instance, Stora Enso has
made a significant investment in expanding its board production capacity
at its Oulu site in Finland.
Social
With a workforce of approximately 19,000 employees, Stora Enso has a
direct impact on the safety and well-being of its people. Positive impacts
are mainly linked to the Group’s business model and focus on its own
operations. These include creating employment opportunities, supporting
professional development, actively promoting work-related rights,
advancing gender diversity, and offering training opportunities.
In addition to these positive impacts, the Group has identified negative
impacts related to occupational safety incidents, which still occur despite
preventive safety measures. The Group also acknowledges its
dependency on a talented workforce, and recognises risks associated with
attracting and retaining talent, as well as potential incidents of
discrimination or harassment.
Through its supplier relationships, Stora Enso is also connected to workers
in the value chain. The Group recognises risks related to breaches of its
Supplier Code of Conduct and safety incidents for workers across its
upstream value chain.
Stora Enso acknowledges that climate change may lead to controversies
with local communities and non-governmental organisations concerning
forest management practices, biodiversity, and land and water use. Stora
Enso is primarily involved in these community-related risks through its joint
operations in South America.
Governance
Business conduct is acknowledged as a fundamental aspect of
responsible global business, serving as the cornerstone of stakeholder
trust and legal compliance. Stora Enso upholds high business standards,
an ethical corporate culture, and a robust compliance programme, which
generate positive impacts for employees and business partners. However,
there are risks of non-compliance with laws, regulations, and internal
policies which could lead to significant costs and reputational damage.
The Group is exposed to these risks through its own operations and
business relationships.
Resilience
Stora Enso tested the resilience of its strategy and business model in 2021,
when it established transition plans, and introduced a new sustainability
agenda centred around three focus areas: climate, biodiversity and
circularity. This was preceded by an assessment of Stora Enso’s business
model and strategic resilience in relation to future key sustainability risks
and opportunities. The assessment’s time horizons were set to 2030 and
2050. The analysis indicates that, to future-proof the Group’s business
model and strategy, it is essential for operations and products to actively
remove carbon from the atmosphere and contribute to mitigating
biodiversity loss. As a result, Stora Enso has established a transition plan to
drive new opportunities and protects its business operations. For further
details, see ESRS E1-1 and ESRS E4-1.
The current effects of Stora Enso’s material impacts, risks, and
opportunities on its business model, value chain, strategy and decision-
making focus on climate mitigation, given the scientific consensus on the
urgency of taking action. Stora Enso’s emission reduction plans are aligned
with the 1.5-degree scenario. In addition to reduction actions, the Group
focuses on opportunities by optimising biodiversity management through
new technical solutions and driving the circular economy through
partnerships and product innovation. Due to the substantial
environmental footprint of forest management and the manufacturing
industry, many of the identified impacts and risks related to pollution,
water and biodiversity are predominantly addressed through responsible
business practices and resource efficiency rather than significant
changes to the Group’s strategy or business model. Similarly, the impacts
on employees and workers in the value chain are also primarily addressed
through robust employee management processes, and HR and
sustainable sourcing policies.
The current financial effects of Stora Enso’s material opportunities mostly
relate to its revenue from renewable products, the valuation of forest assets,
and investment in biological assets. For more details, see the Consolidated
income statement, Consolidated statement of financial position, and
Consolidated cash flow statement in the Financial Statements.
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The ESRS requirements addressing material impacts, risks, and
opportunities are listed in ESRS 2 IRO-2-56. In addition to the ESRS disclosure
requirements, Stora Enso has prepared entity-specific disclosures on
biodiversity. These disclosures include data on biodiversity impact
indicators and forest certificates.
Description of the process to identify and assess
material impacts, risks and opportunities (IRO-1)
Methodologies and assumptions
At the beginning of 2024, Stora Enso conducted a double materiality
assessment in compliance with the new Corporate Sustainability
Reporting Directive (CSRD) requirements. The main objectives of the
assessment were to identify sustainability topics that have a significant
impact on the Group’s business performance, risks, and opportunities
(financial materiality), highlight sustainability topics that reflect significant
impacts on people and the environment (impact materiality), and
determine the materiality of the information to be reported.
The process adhered to the requirements outlined in the European
Commission Delegated Regulation 2023/2772 on European Sustainability
Reporting Standards for conducting a double materiality assessment,
starting with an overview of Stora Enso’s activities, business relationships,
and operating context. It identified key stakeholders across the entire
value chain, both upstream and downstream. As a part of the process,
nature was recognised as a silent stakeholder.
After establishing an overview of the value chain and stakeholders, the
next step involved identifying the actual and potential impact, risks, and
opportunities associated with sustainability matters. The assessment
covered Stora Enso’s own operations and the impacts it is, or may be,
associated with through its value chain. Once the long list of impacts, risks,
and opportunities was established based on scientific research and
stakeholder input, it was compared with the full scope of European
Sustainability Reporting Standards’ environmental, social, and governance
matters to ensure the inclusion of all relevant topics. After completing the
list, the topics were assessed and rated. Since the Corporate Sustainability
Reporting Directive does not provide guidance on setting the threshold,
the proposal was aligned with the EU Taxonomy, where only economic
activities with a significant impact are included.
Due to an environmental incident in Hukkajoki, Finland (described in ESRS
E4-4), Stora Enso conducted a new double materiality assessment to
review and adjust the framework of material topics accordingly. The
update was also used as an opportunity to integrate the latest Enterprise
Risk Management (ERM) results to ensure that the Sustainability Statement
and risk reporting remain fully aligned.
The assessment methodologies varied based on topics, but included, for
example, interviews, workshops, and data analyses. As part of the
assessment finalised in early 2024, a broad representation of key internal
and external stakeholders were engaged in discussions and interviews to
ensure that the assessment covered all relevant impacts, risks, and
opportunities. The stakeholders represented both those affected by the
Group’s operations and users of the Sustainability Statement as well as
other stakeholder groups such as nature (silent stakeholder), public
authorities, and non-governmental organisations (NGOs). The focus of the
engagement was on open interviews to gain deeper insight into the actual
and potential impacts, risks, and opportunities related to Stora Enso’s
business, operations, and value chain. The outcome of the engagement
was consistent with Stora Enso’s strategy and business model. Moreover,
the Group Leadership Team and the Board’s Sustainability & Ethics
Committee discussed the double materiality assessment process and its
outcomes to provide their views on Stora Enso’s material topics.
The underlying assumptions relied on the latest scientific research,
according to which climate change and biodiversity loss are accelerating.
Climate change was also considered one of the underlying drivers of
financial risks.
Assessment of impacts, risks, and opportunities
Stora Enso’s assessment of impacts, risks, and opportunities followed
the process described below:
1) Impact materiality
Environment
To ensure as objective a view as possible, the identification of
environmental impacts began with a review of scientific research,
followed by an assessment of the relevance and materiality for Stora Enso,
with input from the Group’s subject matter experts.
The process for identifying climate-related impacts focused on the
Group’s own operations, which were considered to be more exposed to
possible risks, as well as its joint operations. For pollution and water, the
focus was on the Group’s own operations. In terms of biodiversity, forestry
sites located within the Group’s own forest land or in the upstream value
chain were included. Since Stora Enso and its upstream value chain are
responsible for raw material extraction, the downstream value chain was
not considered relevant for the assessment. For resource use and
circularity, the assessment covered impacts related to the Group’s own
resource use across its whole value chain due to the significant volumes of
resource inflows, outflows and waste (sourced raw materials, waste,
products produced, and end-of-life of products).
The overall process was complemented by additional steps to identify and
assess specific environmental matters:
Climate-related impacts
The analysis comprised impacts on climate change through the Group’s
own operations (Scope 1 and 2) and value chain (Scope 3) emissions as
disclosed in ESRS E1-6. Screening was conducted for all production sites
and material value chain emission categories. Stora Enso did not utilise
other drivers for climate-related impacts in the scenario analysis although
the Group recognises the Stockholm Resilience Centre’s Planetary
Boundaries framework and related tipping points in its sustainability work.
In addition to actual impacts, Stora Enso has estimated its potential
impacts based on production forecasts. Stora Enso’s locked-in GHG
emission are described in ESRS E1-1.
Water-related impacts
The analysis of water-related impacts was based on the WRI Aqueduct
Water Risk Atlas, which is used to annually assess water-related risks at
production sites, providing information on water scarcity, stress, flooding,
and water quality. According to the tool, five of the Group’s production sites
operate in regions with High Baseline Water Stress: Beihai in China,
Langerbrugge in Belgium, Wujin and Qianan corrugated units in China, and
Łódź in Poland. The assessment is conducted for Stora Enso’s own units
and does not cover the upstream or downstream value chain.
Biodiversity and ecosystems
The assessment considered biodiversity loss-related systemic risks to
society and business through scientific research, such as the Living Planet
2024 report and the Dasgupta Review 2021. Additionally, the assessment
examined the tree species used for re-planting and significant incidents
that negatively impact biodiversity. The impacts were identified through
long-term surveillance of the ecological status of the sites and three sets
of biodiversity indicators.
Some of Stora Enso’s industrial units are located near biodiversity-
sensitive areas, such as Natura 2000, but these sites do not actively
contribute to the deterioration of natural habitats due to strict
environmental permitting processes. The biodiversity-related impacts
and risks connected to industrial units are described in ESRS E2 and ESRS E3.
Whenever a new industrial unit is established or production capacities are
increased, Stora Enso ensures that the project plan undergoes an
environmental impact assessment including a thorough evaluation of
biodiversity-sensitive areas. The assessment is used to determine
significant impacts. To identify biodiversity-sensitive sites, Stora Enso
screened all site locations by applying the IBAT assessment tool to create
an overview of key biodiversity areas located in conjunction with its
industrial operations. Stora Enso’s impacts on biodiversity-sensitive areas
are described in ESRS E4 SBM-3.
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The Group’s own forests and upstream harvesting sites may be near or
located in biodiversity-sensitive areas. Despite strict rules in harvesting
operations, there have been incidents causing negative impacts to these
habitats and their species. In 2024, a significant local negative impact was
caused to an endangered species and its habitat near one of Stora Enso’s
harvesting sites in Finland. See further details in ESRS E4-4.
Stora Enso acknowledges the necessity of implementing measures to
mitigate any negative effects on biodiversity. These are part of the Group’s
ways of working and are further described in ESRS E4-3.
Resource use and circularity
The assessment of resource outflows and product-related impacts relied
on Life Cycle Assessments (LCAs) and Environmental Product Declarations
(EPDs) conducted by Stora Enso’s experts and customers, often in
collaboration with academia, expert organisations, or industry
associations.
People and Governance
When identifying the impacts on people, the process began by referring to
globally recognised human rights principles, such as the International
Labour Organisation’s Core Convention and the International Bill of Human
Rights. Stora Enso also took into account employee survey results,
occupational safety performance, and insights provided by the Group’s
subject matter experts. The identification of actual and potential impacts
involved interviews with the Group’s employees. In addition, Stora Enso
considered external studies conducted over the years, such as pay gap
analyses and adequate wage benchmarks. As described in ESRS 2 GOV-4,
Stora Enso’s due diligence consists of multiple processes and tools. These
processes were taken into account in the double materiality assessment
when identifying and assessing adverse impacts, such as ongoing
business restructurings, third-party certified management systems, and
third-party forest management certification.
Consultation of affected stakeholders
Stora Enso consulted with affected stakeholders on the topics related to
own employees as part of the double-materiality assessment process. For
other topics, Stora Enso did not directly consult the affected stakeholders.
Pollution in terms of air emissions and water effluents generated by Stora
Enso’s sites are regulated by the relevant authorities, with limits set through
environmental impact assessments and permitting processes, which
consider local conditions and relevant legislation. Consultations are not
conducted directly with affected communities, but indirectly through
these assessments and processes. For pollution-related impacts, Stora
Enso consulted with environmental managers from its industrial units to
determine compliance with environmental permit limits and associated
emission levels. The screening process relied on measured values,
calculations, or estimates from third-party assessments.
For biodiversity-related impacts, Stora Enso did not conduct consultations
with affected communities on sustainability assessments of shared
biological resources and ecosystems, since the engagement is otherwise
done on a regular basis. The Group’s engagement with affected
communities is further described in ESRS S3. The engagement is also
carried out in situations where a site, raw material production or sourcing
activity is likely to have an adverse impact on biodiversity and ecosystems.
Prioritisation of impacts
The different impact types were rated according to the below matrix, on a
scale from 1 to 5. Stora Enso applied EFRAG’s guidance on the severity of
the impact, with severity taking precedence over likelihood when
assessing potential impacts to people or the environment. In practice this
means that potential impacts that could be difficult to remediate were
always rated higher. Following the principle of significant impact, the risks,
impacts, and opportunities with “High or critical impact to environment
and people” or “Very high or catastrophic impact to environment and
people” were considered material from an impact perspective. On impact
materiality, scientific frameworks and global human rights principles
guided the rating. For example, impacts on planetary boundaries were
considered severe.
Impact type
Scale
Scope
Remediability
Likelihood
Actual positive
impacts
x
x
Actual negative
impacts
x
x
x
Potential
positive impacts
x
x
x
Potential
negative
impacts
x
x
x
x
2) Financial materiality: Risks
The identification of financially material topics began by reviewing all
financial risks recorded in the Group’s Enterprise Risk Management (ERM)
process. Stora Enso classifies risks into two categories: strategic and
operational risks. Strategic risks refer to internal and external events that
may make it difficult, or even impossible, for the Group to achieve strategic
goals. These risks can have severe consequences that impact the Group’s
operations in the long-term. Operational risks refer to risks of losses
resulting from disruptions to day-to-day business operations and having
a shorter-term impact. While these risks can have significant financial
consequences, damage the Group’s reputation, and weaken the
Company’s compliance position, they do not impact the Group’s ability to
achieve long-term strategic goals.
In addition to the internally recognised risks, the assessment considered
scientific reports, global megatrend reports, and Stora Enso’s own
transition plans to identify all relevant risks and opportunities. The
transition plans were established in 2021, when Stora Enso introduced a
new sustainability agenda centred around three focus areas: climate,
biodiversity, and circularity. This was preceded by an assessment of Stora
Enso’s business model and strategic resilience in relation to future key
sustainability risks and opportunities. The assessment’s time horizons were
set for 2030 and 2050. The focus of the assessment was on transition
events, such as increasing legislation and external stakeholder pressure.
The assessment also incorporated findings from the Group’s ERM process,
which identified transitional risks associated with growing regulations.
Political decisions concerning forest resources could potentially limit wood
availability, increase costs, and hinder investment opportunities. Stora
Enso will be impacted by transition events on the medium term as the
European Commission implements new biodiversity and forest related
regulations. Stora Enso has formal traceability systems in place to ensure
that the origin of purchased wood and pulp is known. These traceability
systems are third-party verified through the FSC Chain of Custody/
Controlled Wood scheme, the PEFC Chain of Custody/Due Diligence
System, and ISO 14001. Stora Enso also purchases pulp from external
suppliers for reasons related to quality and logistics. Most of the pulp used
in operations is produced internally at the Group’s mills. In addition, pulp
purchased from external suppliers is covered by Stora Enso’s traceability
systems. However, the new European Deforestation Regulation (EUDR) will
also increase the requirements for Stora Enso.
Moreover, there is a potential risk of regulations that could restrict the
manufacturing of single-use products, even if they are made from fiber-
based materials. The growing demand for biobased materials, particularly
wood-based raw materials, can potentially lead to a shortage in the
supply of raw materials.
Stora Enso also considered dependencies related to the risks and
opportunities that may arise from those dependencies. These risks include,
for example, dependencies on a skilled workforce, raw materials, and their
availability. Stora Enso is dependent on biodiversity and ecosystems due to
wood being its primary raw material. Biodiversity loss can have a negative
impact on the value of Stora Enso’s forest assets, increase risks of
shortages in wood supply, and cause reputational damage. Stora Enso’s
climate scenario analysis primarily focused on physical and systemic risks
that could impact its forests. The ecosystem services considered in the
assessment included tree growth and forest health. The climate scenario
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analysis and results are described in ESRS E1 SBM-3. Stora Enso’s board,
pulp, and paper sites are dependent on water as the production
processes require substantial amounts of water, accounting for over 99%
of the Group’s total water withdrawal. These units predominantly draw
process and cooling water from surface water sources, with 98% of the
total water withdrawal derived from surface water in 2024. Approximately
2% is sourced from municipal or groundwater supplies. According to the
WRI Aqueduct Water Risk Atlas tool, five of the Group’s production units
operate in regions with High Baseline Water Stress.
Sustainability-related risks were marked and classified into ESRS sub-sub-
categories, and assigned to their corresponding value chain locations. The
financial materiality scores relied on the ratings provided by the divisions
in their original Enterprise Risk Management assessment, including
likelihood, magnitude and nature of effects. Following the principle of
significant impact, risks, impacts and opportunities with a 10% or higher
divisional EBITDA impact were considered financially material. The
divisional EBITDA impact was considered instead of the Group EBITDA to
focus on specific activities, business relationships, geographies or other
divisional factors that contribute to a heightened risk of adverse impacts.
Since sustainability is embedded into the Group’s strategy, many of the
sustainability-related risks are considered high and prioritised in the ERM
process due to strategic or operational importance.
Ethics and compliance risks are assessed as part of Stora Enso’s overall
risk assessment procedure, outlined in the Enterprise Risk Management
instructions. These assessments cover all of Stora Enso’s units and
compliance areas and are repeated regularly. The results are used by
divisional management teams and by the Group Ethics and Compliance
team to prioritise and create action plans. For matters related to business
conduct, the Ethics and Compliance Self-Assessment Tool (T.E.S.T.) provides
divisions and functions with an overview of their progress in implementing
policies and compliance measures, while also identifying and managing
possible gaps and risks. The results and subsequent actions are addressed
through Divisional Compliance Forums, comprising heads of key functions
in the divisions.
Assessment of physical and transition risks related to climate
Stora Enso has utilised multiple climate-related scenario analyses to
inform the identification and assessment of physical risks, and transition
risks and opportunities over the short, medium, and long-term. Due to the
nature of Stora Enso’s operations, the time horizons differ from CSRD
definitions. In strategic risks, Stora Enso defines short term as up to five
years, medium term as five to ten years, and long term as ten years or
above. This definition is in line with Stora Enso’s enterprise risk
management process.
• Climate-related physical risks: for the identification of hazards and the
assessment of exposure and sensitivity Stora Enso utilised global Shared
Socioeconomic Pathway (SSP) scenarios: SSP1-1.9 (Sustainability – Taking
the Green Road), SSP2-4.5 (Regional Rivalry – a Rocky Road) and SSP5-8.5
(Fossil-fuelled Development – Taking the Highway) and assessed how its
assets and business activities may be exposed and sensitive to these
climate related hazards, but did not identify material physical climate
change impact risks before 2040. Long-term (25–30 years) changes in
precipitation patterns, periods of drought, frequent extreme weather
events, and higher average temperatures that increase the risk of forest
fires and insect outbreaks could cause damage to operations, forests,
and tree plantations. More frequent extreme weather events also
increase the risk of disruptions in the production, logistics, and supply of
raw materials and energy. The assessment covered the Group’s own
operations that were considered more exposed to possible risks, as well
as its joint operations.
• Climate-related transition risks: identified climate-related transition
associated with new legislation and the need to adjust operations to
a lower-carbon and resilient economy. In 2021, Stora Enso assessed
a business impact scenario for 2030, based on the global transition
required to limit the global average temperature increase to 1.5 degrees
Celcius, in line with the Paris agreement of 1.5 degrees (RCP 1.9). The
assessment concluded that the transition to a low-carbon, circular
bioeconomy is well aligned with Stora Enso’s strategy. The scenario work
also indicated that potential new regulations and market mechanisms,
driven motivations to limit climate change and its effects on society and
the environment could impact Stora Enso’s operating costs. These
impacts could include limitations on wood harvesting volumes or forest
management practices, as well as increases in greenhouse gas
emission costs and energy prices. Sustainable product initiatives and
requirements may also influence the Group’s future market access,
product demand growth, and product development requirements. Due
to Stora Enso’s location in Europe, the mandates and regulations on
existing products and services are considered almost certain in the
medium term, as the European Union is implementing EU Green Deal and
related legislations. Recent legislation has focused specifically on
emission reduction, deforestation, biodiversity and circular economy,
all of which are central to Stora Enso’s strategy.
3) Financial materiality: Opportunities
The assessment of material opportunities relied on the transition plans
described in 2) Financial materiality: risks. The analysis indicates that to
future-proof Stora Enso’s business and strategy, it is imperative for its
operations and products to actively remove carbon from the atmosphere
and contribute to halting biodiversity loss. As an outcome, Stora Enso
established a transition plan designed to drive new opportunities and
future-proof the Group’s business in an environment that is constantly
changing at an accelerated pace. The development and progress in
the identified focus areas (climate change, biodiversity, and circularity) are
being closely monitored within the Group, and their status was also
factored into the double materiality assessment.
When identifying opportunities within the circular economy, Stora Enso
referred to the 2021 transition plans that identified financial opportunities in
the downstream value chain through the Group’s products and solutions,
which enable customers to respond to the growing consumer demand for
sustainable products. Stora Enso leverages its deep understanding of
customer needs and maintains strong relationships with customers to
design products that are functional and create value throughout
their lifecycle.
Stora Enso also identified two opportunities related to its dependencies. By
further optimising its material use, the Group has an opportunity to reduce
its impact on the environment, increase its yield, and lower the financial
costs related to raw materials. Stora Enso strives to maximise both
environmental and financial value by efficiently utilising side streams
generated during production processes. In addition, Stora Enso identified
an opportunity related to its dependency on water based on the WRI
Aqueduct Water Risk Atlas assessment. Majority of production sites are
located in areas with low water stress which contributes to consistent and
sufficient water supply and ensures operational stability and efficiency.
Moreover, it supports the Group’s long-term resilience against climate
change as areas with a low risk of water adequacy are less likely to
experience the adverse impacts of climate change, such as prolonged
droughts or water scarcity.
Input parameters used
Input parameters included scientific research, such as sector specific
impacts identified by the UN Environment Programme World Conservation
Monitoring Centre (UNEP-WCMC), the Planetary Boundaries framework by
the Stockholm Resilience Center, reports from the Intergovernmental Panel
on Climate Change (IPCC), the WRI Aqueduct Water Risk Atlas tool, and the
Science Based Targets for Nature Framework. Regarding impacts on
people, the input parameters included globally recognised human rights
principles, such as the International Labour Organization’s Core
Conventions and the International Bill of Human Rights.
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Outcome and reporting
The results of the two double materiality assessments conducted during the year were discussed and reviewed
with the Sustainability and Ethics Committee, the Financial and Audit Committee, the Sustainability Council, and the
Group Leadership Team in a total of nine meetings that took place between January 2024 and February 2025. A
third-party and the external assurance provider also reviewed the assessment’s results to ensure compliance and
the inclusion of material impacts, risks, and opportunities. The Board of Directors approved the double materiality
assessment threshold and results in February 2025. An internal control for the double materiality assessment was
established as part of the sustainability reporting control implementation project. The project is further described
in ESRS 2 GOV-5.
The outcome of the double materiality assessment aligns with Stora Enso’s strategy and business model. Based on
the results, the Group’s ambition to develop 100% regenerative solutions by 2050, along with its sustainability
agenda focusing on climate change, biodiversity, and circularity, remains valid. The results are described in more
detail in the section ESRS 2 SBM-3, and all material topics covered in this statement are listed in the Sustainability
Statement, ‘Requirements in ESRS covered by the undertaking’s sustainability statement (IRO-2)’.
In 2024, Stora Enso enhanced its process to ensure the monitoring of material impacts, risks, and opportunities, as
well as the annual review of the double materiality assessment’s results. The updated process was integrated with
the Enterprise Risk Management, the Corporate Sustainability Due Diligence Directive, and the Task Force on
Nature-related Financial Disclosures preparations. The update takes into account all actual significant impacts the
Group had on the environment and people during the year.
Requirements in ESRS covered by the undertaking’s
sustainability statement (ESRS IRO-2)
The below table presents a list of the disclosure requirements compiled in the Sustainability Statement. The
material information has been determined based on the material impacts, risks and opportunities resulting from
the Group's materiality assessment. After identifying material topical standards, the materiality was assessed on
disclosure requirement and data point level. The materiality assessment process and the use of thresholds is
described in ESRS 2 IRO-1.
General information
ESRS 2
BP-1 General basis for preparation of sustainability statements
70
ESRS 2
BP-2 Disclosures in relation to specific circumstances
70
ESRS 2
GOV-1 The role of the administrative, management
and supervisory bodies
70
ESRS 2
GOV-2 Information provided to and sustainability matters addressed by the undertaking’s
administrative, management and supervisory bodies
71
ESRS 2
GOV-3 Integration of sustainability-related performance in incentive schemes
72
ESRS 2
GOV-4 Statement on due diligence
72
ESRS 2
GOV-5 Risk management and internal controls over sustainability reporting
73
ESRS 2
SBM-1 Strategy, business model and value chain
73
ESRS 2
SBM-2 Interests and views of stakeholders
75
ESRS
Disclosure requirement
Page
ESRS 2
SBM-3 Material impacts, risks and opportunities and their interaction with strategy and
business model
76
ESRS 2
IRO-1 Description of the process to identify and assess material impacts, risks and
opportunities
77
ESRS 2
IRO-2 disclosure requirements in ESRS covered by the undertaking’s sustainability statement
80
Environmental information
E 1 Climate change
ESRS 2 GOV-3 Integration of sustainability-related performance in incentive schemes
72
E 1 Climate change
E1-1 Transition plan for climate change mitigation
91
E 1 Climate change
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and
business model
91
E 1 Climate change
ESRS 2 IRO-1 Description of the processes to identify and assess material climate-related
impacts, risks and opportunities
77
E 1 Climate change
E1-2 Policies related to climate change mitigation and adaptation
92
E 1 Climate change
E1-3 Actions and resources in relation to climate change policies
92
E 1 Climate change
E1-4 Targets related to climate change mitigation and adaptation
94
E 1 Climate change
E1-5 Energy consumption and mix
95
E 1 Climate change
E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions
95
E 1 Climate change
E1-7 GHG removals and GHG mitigation projects financed through carbon credits
97
E2 Pollution
ESRS 2 IRO-1 Description of the processes to identify and assess material pollution-related
impacts, risks and opportunities
77
E2 Pollution
E2-1 Policies related to pollution
98
E2 Pollution
E2-2 Actions and resources related to pollution
98
E2 Pollution
E2-3 Targets related to pollution
99
E2 Pollution
E2-4 Pollution of air, water and soil
100
E3 Water and marine resources
ESRS 2 IRO-1 Description of the processes to identify and assess material water and marine
resources-related impacts, risks and opportunities
77
E3 Water and marine resources
E3-1 Policies related to water and marine resources
101
E3 Water and marine resources
E3-2 Actions and resources related to water and marine resources
101
E3 Water and marine resources
E3-3 Targets related to water and marine resources
102
E3 Water and marine resources
E3-4 Water consumption
102
E4 Biodiversity and ecosystems
E4-1 Transition plan and consideration of biodiversity and ecosystems in strategy and
business model
103
E4 Biodiversity and ecosystems
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and
business model
103
E4 Biodiversity and ecosystems
IRO-1 Description of processes to identify and assess material biodiversity and ecosystem-
related impacts, risks and opportunities
77
E4 Biodiversity and ecosystems
E4-2 Policies related to biodiversity and ecosystems
104
ESRS
Disclosure requirement
Page
Our year 2024
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Our people
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Shareholders
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Appendices
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Assured 80
E4 Biodiversity and ecosystems
E4-3 Actions and resources related to biodiversity and ecosystems
104
E4 Biodiversity and ecosystems
E4-4 Targets related to biodiversity and ecosystems
105
E4 Biodiversity and ecosystems
E4-5 Impact metrics related to biodiversity and ecosystems change
107
E5 Resource use and circular
economy
ESRS 2 IRO-1 Description of the processes to identify and assess material resource use and
circular economy-related impacts, risks and opportunities
77
E5 Resource use and circular
economy
E5-1 – Policies related to resource use and circular economy
109
E5 Resource use and circular
economy
E5-2 – Actions and resources related to resource use and circular economy
109
E5 Resource use and circular
economy
E5-3 – Targets related to resource use and circular economy
110
E5 Resource use and circular
economy
E5-4 – Resource inflows
111
E5 Resource use and circular
economy
E5-5 – Resource outflows
111
Social information
S1 Own workforce
ESRS 2 SBM-2 Interests and views of stakeholders
75
S1 Own workforce
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and
business model
113
S1 Own workforce
S1-1 Policies related to own workforce
114
S1 Own workforce
S1-2 Processes for engaging with own workforce and workers’ representatives about impacts
115
S1 Own workforce
S1-3 Processes to remediate negative impacts and channels for own workforce to raise
concerns
115
S1 Own workforce
S1-4 Taking action on material impacts on own workforce, and approaches to managing
material risks and pursuing material opportunities related to own workforce, and
effectiveness of those actions
115
S1 Own workforce
S1-5 Targets related to managing material negative impacts, advancing positive impacts,
and managing material risks and opportunities
116
S1 Own workforce
S1-6 Characteristics of the undertaking’s employees
117
S1 Own workforce
S1-8 Collective bargaining coverage and social dialogue
117
S1 Own workforce
S1-9 Diversity metrics
118
S1 Own workforce
S1-10 – Adequate wages
118
S1 Own workforce
S1-14 – Health and safety metrics
118
S1 Own workforce
S1-16 – Remuneration metrics (pay gap and total remuneration)
118
S1 Own workforce
S1-17 – Incidents, complaints and severe human rights impacts
118
S2 Workers in the value chain
SBM-2 Interests and views of stakeholders
75
S2 Workers in the value chain
SBM-3 Material impacts, risks and opportunities and their interaction with strategy and
business model
119
ESRS
Disclosure requirement
Page
S2 Workers in the value chain
S2-1 Policies related to value chain workers
119
S2 Workers in the value chain
S2-2 Processes for engaging with value chain workers about impacts
119
S2 Workers in the value chain
S2-3 Processes to remediate negative impacts and channels for value chain workers to raise
concerns
120
S2 Workers in the value chain
S2-4 Taking action on material impacts on value chain workers, and approaches to
managing material risks and pursuing material opportunities related to value chain workers,
and effectiveness of those action
120
S2 Workers in the value chain
S2-5 Targets related to managing material negative impacts, advancing positive impacts,
and managing material risks and opportunities
120
S3 Affected communities
ESRS 2 SBM-2 – Interests and views of stakeholders
75
S3 Affected communities
ESRS 2 SBM-3 - Material impacts, risks and opportunities and their interaction with strategy
and business mode
121
S3 Affected communities
S3-1 – Policies related to affected communities
121
S3 Affected communities
S3-2 – Processes for engaging with affected communities about impacts
122
S3 Affected communities
S3-3 – Processes to remediate negative impacts and channels for affected communities to
raise concerns
122
S3 Affected communities
S3-4 – Taking action on material impacts on affected communities, and approaches
123
S3 Affected communities
S3-5 – Targets related to managing material negative impacts, advancing positive
effectiveness of those actions
123
Governance information
G1 Business Conduct
GOV-1 The role of the administrative, supervisory and management bodies
70
G1 Business Conduct
ESRS 2 IRO-1 Description of the processes to identify and assess material impacts, risks and
opportunities
77
G1 Business Conduct
G1-1 Business conduct policies and corporate culture
124
G1 Business Conduct
G1-3 Prevention and detection of corruption and bribery
125
G1 Business Conduct
G1-4 Incidents of corruption or bribery
126
ESRS
Disclosure requirement
Page
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Assured 81
List of data points in cross-cutting and topical standards that derive from other EU legislation
ESRS 2 GOV-1 Board’s gender diversity paragraph 21 (d)
Indicator number 13 of Table #1 of Annex 1
Commission Delegated Regulation (EU)
2020/1816 ( 27 ), Annex II
71
ESRS 2 GOV-1 Percentage of board members who are
independent paragraph 21 (e)
Delegated Regulation (EU) 2020/1816,
Annex II
71
ESRS 2 GOV-4 Statement on due diligence paragraph 30
Indicator number 10 Table #3 of Annex 1
72
ESRS 2 SBM-1 Involvement in activities related to fossil fuel
activities paragraph 40 (d) i
Indicator number 4 Table #1 of Annex 1
Delegated Regulation (EU) 2020/1816,
Annex II
n/a
ESRS 2 SBM-1 Involvement in activities related to chemical
production paragraph 40 (d) ii
Indicator number 9 Table #2 of Annex 1
Delegated Regulation (EU) 2020/1816,
Annex II
n/a
ESRS 2 SBM-1 Involvement in activities related to
controversial weapons paragraph 40 (d) iii
Indicator number 14 Table #1 of Annex 1
Delegated Regulation (EU) 2020/1818 ( 29 ),
Article 12(1) Delegated Regulation
(EU) 2020/1816, Annex II
n/a
ESRS 2 SBM-1 Involvement in activities related to cultivation
and production of tobacco paragraph 40 (d) iv
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 ( 28 ) Table 1: Qualitative
information on Environmental risk and
Table 2: Qualitative information on
Social risk
Delegated Regulation (EU) 2020/1818,
Article 12(1) Delegated Regulation
(EU) 2020/1816, Annex II
n/a
ESRS E1-1 Transition plan to reach climate neutrality by 2050
paragraph 14
Regulation (EU) 2021/1119, Article 2(1)
91
ESRS E1-1 Undertakings excluded from Paris-aligned
Benchmarks paragraph 16 (g)
Article 449a
Regulation (EU) No 575/2013; Commission
Implementing Regulation (EU) 2022/2453
Template 1: Banking book-Climate Change
transition risk: Credit quality of exposures
by sector, emissions and residual maturity
Delegated Regulation (EU) 2020/1818,
Article12.1 (d) to (g), and Article 12.2
91
ESRS E1-4 GHG emission reduction targets paragraph 34
Indicator number 4 Table #2 of Annex 1
Article 449a
Regulation (EU) No 575/2013; Commission
Implementing Regulation (EU) 2022/2453
Template 3: Banking book – Climate
change transition risk: alignment metrics
Delegated Regulation (EU) 2020/1818,
Article 6
94
ESRS E1-5 Energy consumption from fossil sources
disaggregated by sources (only high climate impact
sectors) paragraph 38
Indicator number 5 Table #1 and Indicator
n. 5 Table #2 of Annex 1
95
ESRS E1-5 Energy consumption and mix paragraph 37
Indicator number 5 Table #1 of Annex 1
95
ESRS E1-5 Energy intensity associated with activities in high
climate impact sectors paragraphs 40 to 43
Indicator number 6 Table #1 of Annex 1
95
Disclosure requirement and related data point
SFDR reference
Pillar 3 reference
Benchmark Regulation reference
EU Climate Law reference
Location in the Sustainability Statement
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Assured 82
ESRS E1-6 Gross Scope 1, 2, 3 and Total GHG emissions
paragraph 44
Indicators number 1 and 2 Table #1 of
Annex 1
Article 449a; Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 Template 1: Banking book –
Climate change transition risk: Credit
quality of exposures by sector, emissions
and residual maturity
Delegated Regulation (EU) 2020/1818,
Article 5(1), 6 and 8(1)
95
ESRS E1-6 Gross GHG emissions intensity
paragraphs 53 to 55
Indicator number 3 Table #1 of Annex 1
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 Template 3: Banking book –
Climate change transition risk:
alignment metrics
Delegated Regulation (EU) 2020/1818,
Article 8(1)
96
ESRS E1-7 GHG removals and carbon credits paragraph 56
Regulation (EU) 2021/1119, Article 2(1)
97
ESRS E1-9 Exposure of the benchmark portfolio to climate-
related physical risks paragraph 66
Phased-in, not disclosed in 2024
ESRS E1-9 Disaggregation of monetary amounts by acute
and chronic physical risk paragraph 66 (a)
ESRS E1-9 Location of significant assets at material physical
risk paragraph 66 (c)
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 paragraphs 46 and 47;
Template 5: Banking book - Climate
change physical risk: Exposures subject to
physical risk.
Delegated Regulation (EU) 2020/1818,
Annex II Delegated Regulation
(EU) 2020/1816, Annex II
Phased-in, not disclosed in 2024
ESRS E1-9 Breakdown of the carrying value of its real estate
assets by energy-efficiency classes paragraph 67 (c).
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation
(EU) 2022/2453 paragraph 34;Template
2:Banking book -Climate change transition
risk: Loans collateralised by immovable
property - Energy efficiency of
the collateral
Phased-in, not disclosed in 2024
ESRS E1-9 Degree of exposure of the portfolio to climate-
related opportunities paragraph 69
Delegated Regulation (EU) 2020/1818,
Annex II
Phased-in, not disclosed in 2024
ESRS E2-4 Amount of each pollutant listed in Annex II of
the E-PRTR Regulation (European Pollutant Release and
Transfer Register) emitted to air, water and soil,
paragraph 28
Indicator number 8 Table #1 of Annex 1
Indicator number 2 Table #2 of Annex 1
Indicator number 1 Table #2 of Annex 1
Indicator number 3 Table #2 of Annex 1
100
ESRS E3-1 Water and marine resources paragraph 9
Indicator number 7 Table #2 of Annex 1
101
ESRS E3-1 Dedicated policy paragraph 13
Indicator number 8 Table 2 of Annex 1
101
ESRS E3-1 Sustainable oceans and seas paragraph 14
Indicator number 12 Table #2 of Annex 1
Not material
ESRS E3-4 Total water recycled and reused paragraph 28 (c) Indicator number 6.2 Table #2 of Annex 1
102
ESRS E3-4 Total water consumption in m
3 per net revenue on
own operations paragraph 29
Indicator number 6.1 Table #2 of Annex 1
102
ESRS 2- SBM 3 - E4 paragraph 16 (a) i
Indicator number 7 Table #1 of Annex 1
104
ESRS 2- SBM 3 - E4 paragraph 16 (b)
Indicator number 10 Table #2 of Annex 1
103
ESRS 2- SBM 3 - E4 paragraph 16 (c)
Indicator number 14 Table #2 of Annex 1
103
ESRS E4-2 Sustainable land / agriculture practices
or policies paragraph 24 (b)
Indicator number 11 Table #2 of Annex 1
104
Disclosure requirement and related data point
SFDR reference
Pillar 3 reference
Benchmark Regulation reference
EU Climate Law reference
Location in the Sustainability Statement
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Assured 83
ESRS E4-2 Sustainable oceans / seas practices or policies
paragraph 24 (c)
Indicator number 12 Table #2 of Annex 1
Not material
ESRS E4-2 Policies to address deforestation paragraph 24 (d) Indicator number 15 Table #2 of Annex 1
104
ESRS E5-5 Non-recycled waste paragraph 37 (d)
Indicator number 13 Table #2 of Annex 1
112
ESRS E5-5 Hazardous waste and radioactive waste
paragraph 39
Indicator number 9 Table #1 of Annex 1
112
ESRS 2- SBM3 - S1 Risk of incidents of forced labour
paragraph 14 (f)
Indicator number 13 Table #3 of Annex I
114
ESRS 2- SBM3 - S1 Risk of incidents of child labour
paragraph 14 (g)
Indicator number 12 Table #3 of Annex I
114
ESRS S1-1 Human rights policy commitments paragraph 20
Indicator number 9 Table #3 and Indicator
number 11 Table #1 of Annex I
114
ESRS S1-1 Due diligence policies on issues addressed by the
fundamental International Labor Organisation Conventions 1
to 8, paragraph 21
Delegated Regulation (EU) 2020/1816,
Annex II
114
ESRS S1-1 processes and measures for preventing trafficking
in human beings paragraph 22
Indicator number 11 Table #3 of Annex I
114
ESRS S1-1 workplace accident prevention policy or
management system paragraph 23
Indicator number 1 Table #3 of Annex I
114
ESRS S1-3 grievance/complaints handling mechanisms
paragraph 32 (c)
Indicator number 1 Table #3 of Annex I
115
ESRS S1-14 Number of fatalities and number and rate of work-
related accidents paragraph 88 (b) and (c)
Indicator number 2 Table #3 of Annex I
Delegated Regulation (EU) 2020/1816,
Annex II
118
ESRS S1-14 Number of days lost to injuries, accidents, fatalities
or illness paragraph 88 (e)
Indicator number 3 Table #3 of Annex I
Phased-in, not disclosed in 2024
ESRS S1-16 Unadjusted gender pay gap paragraph 97 (a)
Indicator number 12 Table #1 of Annex I
Delegated Regulation (EU) 2020/1816,
Annex II
118
ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b)
Indicator number 8 Table #3 of Annex I
118
ESRS S1-17 Incidents of discrimination paragraph 103 (a)
Indicator number 7 Table #3 of Annex I
118
ESRS S1-17 Non-respect of UNGPs on Business and Human
Rights and OECD Guidelines paragraph 104 (a)
Indicator number 10 Table #1 and Indicator
n. 14 Table #3 of Annex I
Delegated Regulation (EU) 2020/1816,
Annex II Delegated Regulation (EU)
2020/1818 Art 12 (1)
118
ESRS 2- SBM3 – S2 Significant risk of child labour or forced
labour in the value chain paragraph 11 (b)
Indicators number 12 and n. 13 Table #3 of
Annex I
119
ESRS S2-1 Human rights policy commitments paragraph 17
Indicator number 9 Table #3 and Indicator
n. 11 Table #1 of Annex 1
119
ESRS S2-1 Policies related to value chain workers
paragraph 18
Indicator number 11 and n. 4 Table #3 of
Annex 1
119
ESRS S2-1 Non-respect of UNGPs on Business and Human
Rights principles and OECD guidelines paragraph 19
Indicator number 10 Table #1 of Annex 1
Delegated Regulation (EU) 2020/1816,
Annex II Delegated Regulation
(EU) 2020/1818, Art 12 (1)
119
Disclosure requirement and related data point
SFDR reference
Pillar 3 reference
Benchmark Regulation reference
EU Climate Law reference
Location in the Sustainability Statement
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Assured 84
ESRS S2-1 Due diligence policies on issues addressed by the
fundamental International Labor Organisation Conventions 1
to 8, paragraph 19
Delegated Regulation (EU) 2020/1816,
Annex II
119
ESRS S2-4 Human rights issues and incidents connected to
its upstream and downstream value chain paragraph 36
Indicator number 14 Table #3 of Annex 1
120
ESRS S3-1 Human rights policy commitments paragraph 16
Indicator number 9 Table #3 of Annex 1
and Indicator number 11 Table #1 of Annex 1
121
ESRS S3-1 non-respect of UNGPs on Business and Human
Rights, ILO principles or OECD guidelines paragraph 17
Indicator number 10 Table #1 Annex 1
Delegated Regulation (EU) 2020/1816,
Annex II Delegated Regulation
(EU) 2020/1818, Art 12 (1)
121
ESRS S3-4 Human rights issues and incidents paragraph 36
Indicator number 14 Table #3 of Annex 1
123
ESRS S4-1 Policies related to consumers and end-users
paragraph 16
Indicator number 9 Table #3 and Indicator
number 11 Table #1 of Annex 1
Not material
ESRS S4-1 Non-respect of UNGPs on Business and Human
Rights and OECD guidelines paragraph 17
Indicator number 10 Table #1 of Annex 1
Delegated Regulation (EU) 2020/1816,
Annex II Delegated Regulation
(EU) 2020/1818, Art 12 (1)
Not material
ESRS S4-4 Human rights issues and incidents paragraph 35
Indicator number 14 Table #3 of Annex 1
Not material
ESRS G1-1 United Nations Convention against Corruption
paragraph 10 (b)
Indicator number 15 Table #3 of Annex 1
125
ESRS G1-1 Protection of whistle- blowers paragraph 10 (d)
Indicator number 6 Table #3 of Annex 1
125
ESRS G1-4 Fines for violation of anti-corruption and anti-
bribery laws paragraph 24 (a)
Indicator number 17 Table #3 of Annex 1
Delegated Regulation (EU) 2020/1816,
Annex II)
126
ESRS G1-4 Standards of anti- corruption and anti- bribery
paragraph 24 (b)
Indicator number 16 Table #3 of Annex 1
126
Disclosure requirement and related data point
SFDR reference
Pillar 3 reference
Benchmark Regulation reference
EU Climate Law reference
Location in the Sustainability Statement
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Assured 85
Environmental information
In this section
EU Taxonomy
86
E1 Climate change
91
E2 Pollution
98
E3 Water and marine resources
101
E4 Biodiversity and ecosystems
103
E5 Resource use and circular economy
109
EU Taxonomy
To meet the EU’s climate and energy targets for 2030 and reach the
objectives of the European Green Deal, a classification system for
sustainable economic activities called EU Taxonomy was introduced in
2020. Companies in the scope of the Corporate Sustainability Reporting
Directive are obligated to report the share of Taxonomy-eligibility and
Taxonomy-alignment in their operations. Taxonomy-eligibility describes if
an economic activity is included in the scope of activities recognised in the
EU Taxonomy Regulation. Taxonomy-alignment describes if an economic
activity is sustainable based on the technical screening criteria for
substantial contribution and do-no-significant harm specified for
the activity. Taxonomy-aligned activity needs to be also carried out in
compliance with the minimum safeguards, thus to respect basic human
rights and follow good business conduct rules.
Breakdown of EU Taxonomy key performance indicators in 2024
EUR million
Turnover
1
Capex
Opex
Taxonomy aligned activities
428
4.7%
64
5.9%
68
9.1%
Taxonomy eligible but not aligned
activities
140
1.6%
9
0.8%
26
3.4%
Total taxonomy eligible activities
568
6.3%
73
6.7%
94
12.5%
Taxonomy non-eligible activities
8,493
93.7%
1,017
93.3%
654
87.5%
Total
9,062
100% 1,090
100%
747
100%
1 In the EU Taxonomy, turnover includes also rental income, therefore the total turnover figure differs slightly
from the Group total sales.
Taxonomy eligible and aligned activities
Stora Enso has identified six eligible activities to report in the EU Taxonomy
in the conducted annual exercise. From Stora Enso’s main activities, the
production of wood-based solutions for construction industry is included
in the EU Taxonomy through its contribution to buildings energy efficiency.
Other main activities, production of pulp, consumer board, containerboard
and corrugated packaging, are yet excluded from the scope of the EU
Taxonomy.
Economic activity
Description
1.3 Forest management
The activities in the forests owned by Stora Enso in
Sweden. Tree plantations in South America and
China are not included in the activity.
1.4 Conservation forestry
Stora Enso’s 50% owned joint operation Veracel has
dedicated more than half of its land for the
protection and restoration of biological biodiversity
in natural Atlantic rainforest. This rainforest is
excluded from the harvesting activities.
2.4 Remediation of contaminated
sites and areas
Remediation projects of contaminated sites and
areas related to discontinued operations and mill
closures at Stora Enso sites.
3.4 Manufacture of batteries
Pilot plant costs and research and development
expenses related to hard carbon innovation. For
more information on Lignode® by Stora Enso, see
the Group’s website storaenso.com/lignode.
3.5 Manufacture of energy efficiency
equipment for buildings
Wood-based solutions for the construction industry
which contribute to buildings energy efficiency.
Door, window and roofing components and
external wall systems manufactured from classic
sawn, CLT, LVL and construction beams are
considered eligible.
4.20 Cogeneration of heat/cool and
power from bioenergy
Wood side-streams and by-products from the pulp
process are used for energy production. The
bioenergy generated from biobased feedstock is
considered eligible.
100% of Stora Enso’s Swedish forests are certified under certification
systems (PEFC or FSC) which lays the foundation for sustainable forest
management. Stora Enso considers its 1.3 Forest management and 1.4
Conservation practices aligned with EU Taxonomy, but has been unable to
fulfil the third party verification requirement described in forest
management and conservation forestry substantial contribution criteria
(section 4. Audit). Stora Enso has been actively searching a partner who is
capable of conducting EU Taxonomy compliant verification and will
continue the search. Until then the Group reports its forest management
and conservation forestry as eligible but not-aligned in EU Taxonomy.
The alignment assessment of 3.4 Manufacture of batteries activity is done
based on the predicted future industrial scale operations and production
which will be aligned with the technical screening criteria of the activity
once started.
As Stora Enso is not a manufacturer of the end products, the compliance
with the activity’s 3.5 Manufacture of energy efficiency equipment for
buildings substantial contribution was assessed based on the knowledge
of the end use and the energy efficiency related regulations in the primary
market areas.
The eligibility and alignment assessments for all activities have been
carried out based on the best interpretation of the Taxonomy Regulation
and the available guidelines from the European Commission. In case of
unclarities, the conservative approach has been chosen.
Accounting principles
The EU Taxonomy KPIs, turnover, capex and opex, are presented in
separate tables as defined in the regulation. Double counting is avoided by
having a clear cost structure in reporting which ensures that the profit
centers and cost elements are separate for each activity. In reporting the
activities do not overlap between environmental objectives.
Turnover
The total turnover is the Group’s total sales, as presented in the line of sales,
in consolidated income statement and in note 2.1 Segment information, and
rental income in 2024, which respectively include the IFRS 15 and the IFRS 16
income according to the EU Taxonomy turnover definition. The external sales
connected to the economic activities are reported under Taxonomy-eligible
turnover. Taxonomy-eligible and aligned shares of turnover remained at the
levels of the previous reporting period.
The output of 1.3 Forest management activity, the grown wood, is used
mostly internally in Stora Enso’s own operations. The forest management
turnover in the EU Taxonomy includes the sale of externally sold
roundwood and forest residuals.
In category 3.5 Manufacture of energy efficiency equipment for buildings,
the external sales related to the share of production that is estimated to
end up for doors, windows, roofing and external wall systems, is included
under the EU Taxonomy turnover.
In category 4.20 Cogeneration of heat/cool and power from bioenergy, the
turnover includes the external sales of the excess electricity and heat
which is not consumed internally.
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Assured 86
Capex
The total capex is the Group’s total capital expenditure in 2024, as
presented in the line of additions, excluding goodwill additions, in note 4.1
Intangible assets, property, plant and equipment and right of use assets,
and note 4.2 Forest assets. The Taxonomy-eligible capex are the
investments related to the assets or processes associated with the
respective economic activities. Taxonomy-eligible and aligned shares of
capex remained at the levels of the previous reporting period.
In category 1.3 Forest management the capex includes investments that
support the forest management activities, such as forest land acquisitions
and investments in roads and bridges.
In category 4.20 Cogeneration of heat/cool and power from bioenergy
the capex includes the investments made to bioenergy production at
Stora Enso sites. The largest investments relate to Oulu and Heinola
production sites in Finland.
Opex
The total opex covers the maintenance expenses, short-term lease costs,
non-capitalised research and development costs and silviculture costs at
the Group level. The Taxonomy-eligible opex include the corresponding
direct non-capitalised costs related to the economic activities. Compared
to 2023, taxonomy-eligible and aligned shares of capex decreased by 1
percentage point to 13% (14%) and 9% (10%) due to lower R&D costs and
closure of a site.
In 2024 the following were reported under the EU Taxonomy opex:
1.3 Forest management, the silviculture costs and related research and
development costs.
1.4 Conservation forestry, the costs from the conservation operations.
2.4 Remediation of contaminated sites and areas, the expenses related to
the environmental remediation work carried out.
3.4 Manufacture of batteries, the pilot plant costs and research and
development expenses related to hard carbon innovation. Turnover for
the activity is expected within future years.
3.5 Manufacture of energy efficiency equipment for buildings,
the expenses related to the share of production that is estimated to end
up for doors, windows, roofing and external wall systems is reported.
4.20 Cogeneration of heat/cool from bioenergy, the maintenance salaries,
maintenance material and other direct costs related to the day-to-day
serving of the asset.
Minimum safeguards
Minimum safeguards were assessed in Group-level from two angles: by
reviewing the company processes for human rights, corruption, taxation
and fair competition to determine that the adequate processes and
controls are in place, and by investigating that there are no known
breaches or violations existing in the parent company, in its subsidiaries or
by senior management. The Group considers its processes to be at
a robust level and with no violations to meet the alignment with the
minimum safeguards. For more information on the Group’s governance,
see ESRS G1 Business Conduct.
Template 1 Nuclear and fossil gas related activities
Row
Nuclear energy related activities
1.
The undertaking carries out, funds or has exposures to research,
development, demonstration and deployment of innovative
electricity generation facilities that produce energy from nuclear
processes with minimal waste from the fuel cycle.
NO
2.
The undertaking carries out, funds or has exposures to
construction and safe operation of new nuclear installations to
produce electricity or process heat, including for the purposes of
district heating or industrial processes such as hydrogen
production, as well as their safety upgrades, using best available
technologies.
NO
3.
The undertaking carries out, funds or has exposures to safe
operation of existing nuclear installations that produce electricity
or process heat, including for the purposes of district heating or
industrial processes such as hydrogen production from nuclear
energy, as well as their safety upgrades.
NO
1
Fossil gas related activities
4.
The undertaking carries out, funds or has exposures to
construction or operation of electricity generation facilities that
produce electricity using fossil gaseous fuels.
NO
5.
The undertaking carries out, funds or has exposures to
construction, refurbishment, and operation of combined heat/
cool and power generation facilities using fossil gaseous fuels.
NO
6.
The undertaking carries out, funds or has exposures to
construction, refurbishment and operation of heat generation
facilities that produce heat/cool using fossil gaseous fuels.
NO
1 Stora Enso holds a 16.1% interest in Pohjolan Voima Oyj (PVO). The investment is fair valued through other
comprehensive income (FVTOCI) and therefore not in the scope of the Group’s EU Taxonomy reporting. For
more information see note 4.4 Equity instruments.
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Assured 87
Proportion of Turnover from products or services associated with Taxonomy-aligned economic activities 2024
EUR million
Substantial contribution criteria
DNSH criteria
('Does Not Significantly Harm')
Economic Activities
Code
Turnover
Proportion of
turnover year
2024
Climate change
mitigation
Climate change
adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate change
mitigation
Climate change
adaptation
Water
Pollution
Circular Economy
Biodiversity
Minimum
safeguards
Proportion of
Taxonomy
aligned or
eligible
turnover year
2023
Category
enabling
activity
Category
transitional
activity
EUR
%
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Manufacture of energy efficiency equipment for buildings
CCM 3.5
387
4.3%
Y
N
N/EL
N/EL
N/EL
N/EL
n/a
Y
Y
Y
Y
Y
Y
4.4%
E
Cogeneration of heat/cool and power from bioenergy
CCM 4.20
41
0.5%
Y
N
N/EL
N/EL
N/EL
N/EL
n/a
Y
Y
Y
n/a
Y
Y
0.4%
Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1)
428
4.7%
4.7%
4.8%
Of which Enabling
387
4.3%
4.3%
4.4%
E
Of which Transitional
T
A.2. Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Forest management
CCM 1.3
139
1.5%
EL
EL
N/EL
N/EL
N/EL
N/EL
1.3%
Cogeneration of heat/cool and power from bioenergy
CCM 4.20
2
0.0%
EL
EL
N/EL
N/EL
N/EL
N/EL
0.0%
Turnover of Taxonomy-eligible but not environmentally sustainable activities (not
Taxonomy-aligned activities) (A.2)
140
1.6%
1.6%
1.3%
A.Turnover of Taxonomy eligible activities (A.1+A.2)
568
6.3%
6.3%
6.1%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities
8,493
93.7%
TOTAL
1
9,062
100%
1 In the EU Taxonomy, turnover includes also rental income, therefore the figure differs slightly from the Group total sales.
Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective
N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective
N/EL – Not eligible, Taxonomy non-eligible activity for the relevant environmental objective
EL - Taxonomy-eligible activity for the relevant objective
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
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≡
Assured 88
Proportion of capex from products or services associated with Taxonomy-aligned economic activities 2024
EUR million
Substantial contribution criteria
DNSH criteria
('Does Not Significantly Harm')
Economic Activities
Code
Capex
Proportion of
capex year
2024
Climate change
mitigation
Climate change
adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate change
mitigation
Climate change
adaptation
Water
Pollution
Circular Economy
Biodiversity
Minimum
safeguards
Proportion of
Taxonomy
aligned or
eligible capex
year 2023
Category
enabling
activity
Category
transitional
activity
EUR
%
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Manufacture of energy efficiency equipment for buildings
CCM 3.5
1
0.1%
Y
N
N/EL
N/EL
N/EL
N/EL
n/a
Y
Y
Y
Y
Y
Y
0.4%
E
Cogeneration of heat/cool and power from bioenergy
CCM 4.20
63
5.8%
Y
N
N/EL
N/EL
N/EL
N/EL
n/a
Y
Y
Y
n/a
Y
Y
5.1%
Installation, maintenance and repair of renewable energy
technologies
CCM 7.6
0.3%
E
Capex of environmentally sustainable activities (Taxonomy-aligned) (A.1)
64
5.9%
5.9%
5.7%
Of which Enabling
1
0.1%
0.1%
0.6%
E
Of which Transitional
T
A.2. Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Forest management
CCM 1.3
9
0.8%
EL
EL
N/EL
N/EL
N/EL
N/EL
0.6%
Cogeneration of heat/cool and power from bioenergy
CCM 4.20
—
0.0%
EL
EL
N/EL
N/EL
N/EL
N/EL
0.3%
Capex of Taxonomy-eligible but not environmentally sustainable activities (not
Taxonomy-aligned activities) (A.2)
9
0.8%
0.8%
0.9%
A.Capex of Taxonomy eligible activities (A.1+A.2)
73
6.7%
6.7%
6.6%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Capex of Taxonomy-non-eligible activities
1,017
93.3%
TOTAL
1,090
100%
Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective
N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective
N/EL – Not eligible, Taxonomy non-eligible activity for the relevant environmental objective
EL - Taxonomy-eligible activity for the relevant objective
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Assured 89
Proportion of opex from products or services associated with Taxonomy-aligned economic activities 2024
EUR million
Substantial contribution criteria
DNSH criteria
('Does Not Significantly Harm')
Economic Activities
Code
Opex
Proportion of
opex year 2024
Climate change
mitigation
Climate change
adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate change
mitigation
Climate change
adaptation
Water
Pollution
Circular Economy
Biodiversity
Minimum
safeguards
Proportion of
Taxonomy
aligned or
eligible opex
year 2023
Category
enabling
activity
Category
transitional
activity
EUR
%
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Remediation of contaminated sites and areas
PPC 2.4
2
0.3%
N/EL
N/EL
N/EL
Y
N/EL
N/EL
Y
Y
Y
n/a
Y
Y
Y
0.7%
Manufacture of batteries
CCM 3.4
16
2.1%
Y
N
N/EL
N/EL
N/EL
N/EL
n/a
Y
Y
Y
Y
Y
Y
2.6%
E
Manufacture of energy efficiency equipment for buildings
CCM 3.5
18
2.4%
Y
N
N/EL
N/EL
N/EL
N/EL
n/a
Y
Y
Y
Y
Y
Y
2.5%
E
Cogeneration of heat/cool and power from bioenergy
CCM 4.20
32
4.3%
Y
N
N/EL
N/EL
N/EL
N/EL
n/a
Y
Y
Y
n/a
Y
Y
4.1%
Opex of environmentally sustainable activities (Taxonomy-aligned) (A.1)
68
9.1%
8.8%
0.3 %
9.9%
Of which Enabling
34
4.5%
4.5%
5.2%
E
Of which Transitional
T
A.2. Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Forest management
CCM 1.3
24
3.2%
EL
EL
N/EL
N/EL
N/EL
N/EL
2.9%
Conservation forestry
CCM 1.4
1
0.1%
EL
EL
N/EL
N/EL
N/EL
N/EL
0.1%
Remediation of contaminated sites and areas
PPC 2.4
1
0.1%
N/EL
N/EL
N/EL
EL
N/EL
N/EL
—%
Cogeneration of heat/cool and power from bioenergy
CCM 4.20
—
0.0%
EL
EL
N/EL
N/EL
N/EL
N/EL
0.7%
Opex of Taxonomy-eligible but not environmentally sustainable activities (not
Taxonomy-aligned activities) (A.2)
26
3.4%
3.3%
0.1%
3.8%
A.Opex of Taxonomy eligible activities (A.1+A.2)
94
12.5%
12.1%
0.4%
13.7%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Opex of Taxonomy-non-eligible activities
654
87.5%
TOTAL
747
100%
Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective
N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective
N/EL – Not eligible, Taxonomy non-eligible activity for the relevant environmental objective
EL - Taxonomy-eligible activity for the relevant objective
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Assured 90
ESRS E1 Climate change
Transition plan for climate change mitigation (E1-1)
In 2021, Stora Enso updated its transition plan for climate change mitigation
to ensure that its strategy and business model are compatible with the
transition to a sustainable economy and the goal of limiting global warming
to 1.5 degrees, in line with the Paris Agreement. The transition plan was
approved by the Group Leadership Team in 2021. As part of the transition
plan update, Stora Enso undertook the following efforts:
• Set climate targets, which are compatible with the goal of limiting global
warming to 1.5 degrees in line with the Paris Agreement. These targets
align with the Science Based Targets initiative’s (SBTi) 1.5-degree
pathway, as explained in ESRS E1-4.
• To align the compatibility of the Group’s business model with the transition
plan, Stora Enso has established mitigation efforts as defined in ESRS E1-3.
The decarbonisation levers for climate change mitigation in the Group’s
own operations include enhancements in energy efficiency, investments in
electrification, fuel switches, and the use of renewable energy.
Key significant investments related to climate change mitigation actions
are disclosed in ESRS E1-3. The transition plan aligns with the Group’s
strategy, and incorporates climate-related scenario analysis, which has
been used to inform the strategy. Some of the decarbonisation levers link
directly to the Group’s product portfolio, placing the transition plan at the
core of the business model. The climate mitigation actions are included in
the financial planning described in ESRS E1-3.
At the end of 2024, Scope 1 and 2 CO2eq emissions totalled 1.23 million
tonnes or -53% less, and Scope 3 emissions 4.53 million tonnes or -39% less
than in the base year 2019. In terms of potential locked-in GHG emissions,
Stora Enso acknowledges that future investments and new technology are
essential to achieve its climate targets. Therefore, the Group intends to
continue investments in low-carbon and energy-efficient solutions,
particularly to reduce the use of fossil fuels. Actions and investments are
further described in ESRS E1-3 and presented as part of the graph ‘Achieved
and expected reductions’ in ESRS E1-4.
Stora Enso reports according to the EU Taxonomy. The forest industry is
not central to current legislation, limiting Stora Enso’s relevant economic
activities for reporting. However, opportunities to expand taxonomy
alignment exist in forestry activities where the Group seeks a partner to
perform EU Taxonomy-compliant verification, as forest certification
audits do not fully meet the criteria. In 2024, Stora Enso’s taxonomy-
aligned capex was EUR 64 million, see section EU Taxonomy. Stora Enso is
not excluded from the EU-Paris aligned benchmarks.
Material impacts, risks and opportunities (ESRS 2 SBM-3)
Our year 2024
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Assured 91
Description
Impact, risk,
or opportunity
Time horizon
Location in
the value chain
Related sub-topic or
sub-sub-topic
Transition
risk
Physical
risk
Positive impact on climate through forest carbon sequestration, products
substituting fossil-based alternatives, and carbon stored in wood-based
products.
Actual positive
impact
Short, medium,
and long term
Own operations,
joint operations
Climate change
mitigation
Direct impact on climate change due to greenhouse gas emissions
emitted by production sites.
Actual negative
impact
Short, medium,
and long term
Own operations
Climate change
mitigation
Indirect impact on climate change due to greenhouse gas emissions
resulting from its upstream and downstream value chain.
Actual negative
impact
Short, medium,
and long term
Joint operations,
Upstream and
downstream value
chain
Climate change
mitigation
Energy-intensive production processes.
Actual negative
impact
Short, medium,
and long term
Own operations,
joint operations
Energy
Operations generate biogenic emissions, which are treated as carbon
neutral. Stora Enso recognises a regulatory risk of a possible change in the
treatment of these emissions, which would impact the Group’s path
towards climate neutrality and product lifecycle assessments.
Risk
Medium and long
term
Own operations,
joint operations,
upstream and
downstream value
chain
Climate change
mitigation
x
Uncertainty in reaching the net zero target for Scope 1 and 2 by 2040
without adequate investments and new technology. The lack of direct
control over value chain emissions may lead to challenges in reaching
Scope 3 reduction targets. Inability to meet the targets may lead to
possible damage to Stora Enso’s reputation and brand, which may result in
a loss of investor and customer confidence leading to higher cost of
capital and decreased revenues.
Risk
Medium and long
term
Own operations,
upstream and
downstream value
chain
Climate change
mitigation
x
Risk of climate-related hazards becoming more common due to climate
change, creating physical impacts to production unit assets and
operations, and causing disruptions in the supply chain. Examples of such
hazards include, but are not limited to: rising sea levels, flooding, severe
rains, wind gusts, droughts, snow loads, and forest fires.
Risk
Long term
Own operations,
joint operations,
upstream and
downstream value
chain
Climate change
adaptation
x
Stora Enso’s scenario analysis recognises that long-term (25–30 years)
changes in precipitation patterns, periods of drought, frequent extreme
weather events, and higher average temperatures that increase the risk of
forest fires and insect outbreaks, could cause damage to operations,
forests, and tree plantations. This would affect the value of forests assets
and regional wood prices. In northern regions, milder winters may also
impact the harvesting and transportation of wood and related costs. More
frequent extreme weather events also increase the risk of disruptions in the
production, logistics, and supply of raw materials and energy.
Risk
Long term
Own operations,
joint operations,
upstream value
chain
Climate change
adaptation
x
Opportunity due to high energy self-sufficiency, which reduces the Group’s
exposure to external cost instability and market disruptions. With access to
renewable biomass and fossil-free electricity, Stora Enso is well-positioned
to contribute to the green transition and a low-carbon economy.
Opportunity
Short, medium,
and long term
Own operations
Energy
Opportunity in sustainable forest management to enhance the resilience
of forest ecosystems, and the potential for changing climate to increase
tree growth and species distribution, particularly in northern latitudes.
Opportunity
Medium and long
term
Own operations,
joint operations,
upstream value
chain
Climate change
mitigation
E1 disclosure requirement related to ESRS 2 SBM-3
Aligned with the Task Force on Climate-related Financial Disclosures
(TCFD) recommendations, Stora Enso utilises scenarios to assess climate
change impacts. Stora Enso has tested the resilience of its strategy and
business model in relation to climate change through multiple resilience
analyses conducted over the past years. These analyses focused on the
Group’s core business and certain operations that might be more exposed
to risks due to their location. No material physical climate change impact
risks before 2040 were identified. Resilience analyses have been
conducted for Stora Enso’s own operations, covering production assets in
Sweden, Finland, Poland, and Belgium, as well as for the forest assets in
Sweden. In addition, resilience analyses have been conducted for Stora
Enso’s joint operations in Brazil and Uruguay and the plantations in
South America.
The scenario analyses for the operational assets for Stora Enso’s own
operations and upstream operations (joint operations) were conducted as
desktop studies by reviewing location-based historical weather data
against five different climate scenarios (SSP1-1.9, SSP5-8.5). For forest assets
in Sweden, the study was done as a literature review by a third-party. The
analysis for the upstream value chain covering plantations in South
America was conducted by a third party. The time horizon on materiality
was set to 2040, with an overall horizon extending to 2100.
Stora Enso assumes that the transition to a lower-carbon and resilient
economy will affect the Group through emission reductions, regulations,
and the need to adapt operations, for example, by electrification.
The results of the resilience analysis show that operational assets in
Sweden and Finland have endured similar weather conditions in the past.
Stora Enso acknowledges that weather extremes will become more
frequent, but there is little evidence to suggest that those would have a
material impact on the ability to operate assets before 2040. Assets
located in continental Europe, are at a higher risk of climate hazards
compared to those in the Nordics. However, no material impact was
identified. The results of the resilience analysis for forest assets in Sweden
were inconclusive. A warmer climate enhances forest growth, but at the
same time, more frequent storms, drought, and pest damage may
negatively affect growth. Based on the outcome, there are both risks and
opportunities in the changing climate. There is uncertainty in the resilience
analysis, as recent climate development suggests that expected time
horizons for impacts in different scenarios might be shorter than
anticipated. In 2024, the EU’s climate service reported that for the first time,
global warming had exceeded 1.5°C over the course of an entire year.
Based on the resilience analysis, Stora Enso has the ability to adjust or
adapt its strategy to respond to climate change in the short, medium, and
long term. Climate-related transition risks relate to Stora Enso’s capability
to reduce its emissions across the value chain, and also its capability to
position its business offering to support the global transition to a low-
carbon, circular economy. Stora Enso’s operations and value chain benefit
from their wide geographical distribution, as it is unlikely that all locations
would be impacted simultaneously. In 2021, Stora Enso assessed a business
impact scenario that identified climate-related transition opportunity. The
results concluded that the overall transition to a low carbon, circular
economy is aligned with the Group’s strategy.
Policies related to climate change mitigation
and adaptation (E1-2)
The minimum requirement is that all policies and guidelines be reviewed
at least once every two years. Each policy owner shall ensure that the
documents under their responsibility are reviewed and updated within
the defined time frame.
Policy for Energy and Climate Change
The policy outlines the ambition for combatting climate change through
objectives across products, industrial operations, and the value chain. The
policy addresses the management of negative impacts related to GHG
emissions generated from Stora Enso’s own operations by continuously
improving energy efficiency and increasing the deployment of renewable
energy through a higher share of biomass. The policy also promotes
working with suppliers, customers, and partners to decarbonise the value
chain, thereby aiming to mitigate the negative impacts resulting from
emissions generated within the value chain. In addition, the policy includes
a commitment to collaborating with customers and stakeholders to
substitute non-renewable materials, and to sustainable forest
management practices. The efforts contribute to positive climate impacts
through forest carbon sequestration, the use of products as substitutes for
fossil-based alternatives, and the carbon stored in wood-based products.
The policy applies to Stora Enso’s own operations, and the EVP, Strategy
and Sustainability, is accountable for its implementation.
Environmental Guidelines
The guidelines address topics related to environmental management
and circularity, energy and climate change, pollution, water, forests,
plantations, and land use. The guidelines require that all of Stora Enso’s
production units implement and maintain a third-party certified
environmental management system. Third-party certified management
systems (ISO 14001 and ISO 50001) help improve environmental
performance and energy efficiency. In relation to energy and climate
change, the guidelines address both the negative and positive impacts
outlined in the Policy for Energy and Climate Change.
The scope of the guidelines covers Stora Enso’s own operations. The Chief
Sustainability Officer and Head of Sustainability for each division are
accountable for their implementation.
Supplier Code of Conduct (SCoC)
The SCoC outlines minimum standards for suppliers in addition to
applicable laws and regulations. The policy lists objectives for responsible
business practices, occupational health and safety, human and labour
rights, supporting and engaging with communities, and protecting the
environment. It requires suppliers to actively monitor, report, and work to
reduce GHG emissions from their own operations and value chain. The
supplier must allow Stora Enso, or a third party authorised by Stora Enso, to
verify compliance with the requirements of this SCoC through dialogue,
disclosure of information or, if considered necessary by Stora Enso, an
audit of the supplier’s operations. The policy also addresses managing the
negative impacts resulting from GHG emissions in the Group’s value chain.
The scope of the policy covers all Stora Enso’s business activities and
operations globally. Accountability for the implementation of the SCoC lies
with the EVP, Head of each division. The SCoC is provided to suppliers
during the pre-qualification process, where they are required to commit to
adhering to it.
Actions and resources in relation to
climate change policies (E1-3)
Stora Enso’s climate ambition extends across its entire value chain,
encompassing forests, its own operations and products. The Group’s
climate ambition and mitigation actions align with the Paris Agreement
and the SBTi’s 1.5 degree pathway.
Climate change mitigation in the Group’s own operations
The action plan consists of the two decarbonisation levers described
below, encompassing the Group’s own operations. The action plan
contributes to the Group’s target to reduce GHG emissions for Scope 1 and
2 by 50% by 2030 from the 2019 baseline. The plan supports the
achievement of the objectives outlined in the Policy for Energy and Climate
Change and the Environmental Guidelines on climate change mitigation,
as well as managing the negative impacts resulting from the GHG
emissions generated in the Group’s own operations. The time horizon of
the action plan spans from short to long term.
Decarbonisation lever: energy efficiency and investments into electrification
Stora Enso focuses on continuously improving energy efficiency at its
production sites through targeted measures. The central energy and
water efficiency investment fund is an important tool for implementing
energy savings across the production units.
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To reduce greenhouse gas emissions in their energy-intensive production
processes, Stora Enso invests in e-boilers as alternatives to traditional fossil
fuel-based heating systems. For instance, a new 60 MW electric boiler was
commissioned in Anjalankoski, Finland. in 2024 to decrease the usage of
fossil fuels for heat production. In Lahti, Finland, two new electric boilers are
currently being installed and are expected to be fully operational by early
2025. These will replace fossil-based energy to further reduce the site’s
carbon emissions and enhance efficiency. Furthermore, Stora Enso is
investing in the electrification of vehicles.
By the end of 2024, the emission reduction achieved for this
decarbonisation lever was 0.08 million tonnes from the 2019 base year.
The expected emission reduction by 2030 is 0.08 million tonnes.
Decarbonisation lever: fuel switches and use of
renewable and nuclear energy
To reduce the carbon intensity of its industrial operations Stora Enso
promotes the use of various forms of low carbon electricity and heat,
including energy sources such as nuclear, wind, solar, and bioenergy.
The Group’s operations largely utilise renewable biomass fuels from forest
and process side streams. Fuel switches are implemented in both
production processes and transportation. To support its decarbonisation
targets, Stora Enso purchases Guarantees of Origin to ensure that
electricity has been generated from renewable or nuclear energy sources,
with lower greenhouse gas emission factors. Examples of measures taken
at the mills during the reporting year:
• An investment was completed to upgrade the chemical recovery line at
the Imatra pulp mill in Finland. This enhancement involved improving the
black liquor evaporation technology to increase the capacity of the
recovery line. The higher dry matter content of black liquor improves
energy efficiency and increases the share of biofuel.
• Renewal of the energy set-up and process equipment at the Heinola
fluting site, Finland, to replace the remaining fossil-based fuels with
renewable bioenergy. The expected GHG reduction is over 90%.
Construction work is expected to be completed in the latter half of 2025.
• At the end of 2023, an investment project was completed at the Enocell
pulp mill to replace fossil-based heavy fuel oil with renewable bioenergy,
such as pitch oil. The use of bioenergy has continued through 2024, and
the mill’s goal is to fully replace heavy fuel oil with bioenergy.
• The Ala mill in Sweden achieved fossil-free operations in 2024 through
efforts that include utilising bio and electric boilers for heat production,
sourcing fossil-free electricity, and implementing a fuel change in the
fleet, which now runs on renewable diesel and electricity.
In 2024, the emission reduction achieved for this decarbonisation lever
was 0.86 million tonnes. The expected emission reduction by 2030 is 0.28
million tonnes.
In addition to the decarbonisation levers described above, site and
production line closures, aligned with Stora Enso’s business model and
strategy, also impact the reduction of GHG emissions.
Climate change mitigation in the value chain
Stora Enso aims to reduce Scope 3 emissions in alignment with the
objectives of the Policy for Energy and Climate Change, the Environmental
Guidelines, and the Supplier Code of Conduct to mitigate negative
impacts on climate change resulting from GHG emissions in the Group’s
upstream and downstream value chain. While Stora Enso has identified
potential reduction areas, it has not defined decarbonisation levers for its
value chain (Scope 3). Scope 3 accounting differs inherently from Scope 1
and 2, as it involves activities beyond a company’s direct control and is still
a developing field partly due to limited primary data availability.
The two key mid- to long-term actions to address value chain emission
reduction are described below. These actions contribute to the Group’s
target to reduce GHG emissions by 50% by 2030 from the 2019 baseline.
1) Stora Enso aims to continuously improve its Scope 3 data collection and
reporting processes, focusing on improving the granularity of data down
to the production unit level. This will allow for a better-informed baseline
and support data-driven development actions. The scope of the activities
covered by the automation project spans the Group’s entire value chain.
2) Stora Enso collaborates with its raw material suppliers, logistics partners,
and customers to enhance efficiency and lower carbon intensity within
the value chain. This is a continuous, long-term action across the Group’s
upstream and downstream value chain.
By the end of 2024, the achieved emission reduction for Scope 3 was 2.93
million tonnes from the 2019 base year. The expected emission reduction
by 2030 is 0.8 million tonnes.
Climate change adaptation types
Stora Enso’s objective and approach to climate change adaption are
included as part of the Environmental Guidelines. To address the policy
objective and to mitigate the increasing risks posed by climate-related
hazards, Stora Enso implements nature-based adaptation solutions. The
scope of the action covers the Group's own operations and upstream
value chain, with a long-term time horizon. Examples of this action include:
• Increasing mixed forests, and promoting sustainable forest
management and harvesting practices, see ESRS E4.
• Enforcing diversification in wood sourcing.
• Enhancing materials efficiency, see ESRS E5.
• Monitoring water risk areas and taking relevant action, see ESRS E3.
Addressing opportunities and positive impacts
The two key actions to address the positive impact and opportunity on
climate change mitigation, as well as the opportunity to increase forest
resilience and growth, are described below. The third key action addresses
the opportunity for energy self-sufficiency. These long-term actions
contribute to the achievement of the objectives outlined in the Policy for
Energy and Climate Change and the Environmental Guidelines.
1) Promotion of sustainable forest management practices in Stora Enso’s
own and managed forests to increase the resilience of forest ecosystems
and improve forest sequestration. In 2024, the three-year average of
annual carbon sequestration in the Group’s owned or leased productive
forest lands was 4.3 million tonnes of CO2. See ESRS E1-7.
2) The Group’s innovation and product development focuses on wood-
based, renewable products that substitute fossil-based alternatives. In
2024, the substitution effect amounted to 13.5 million tonnes of CO2. In
addition, the Groups’s wood-based products stored carbon amounting to
2.5 million tonnes of CO2. See ESRS E1-7 for more details. Recent key
investments include:
• EUR 1 billion investment at the Oulu site in Finland to convert the
remaining idle paper machine into a high-volume consumer board line.
• In 2024, Stora Enso’s total spend on innovation, research and
development was EUR 78 million.
3) By securing and enhancing energy self-sufficiency, Stora Enso aims to
mitigate exposure to external cost volatility and market disruptions in its
own operations. The action consists of long-term contracts to manage
energy supply, direct market access via energy exchanges, combined
heat and power production at production units, and shareholding in the
Finnish energy company Pohjolan Voima Oyj. The Group also places
increased emphasis on harnessing its own electricity generation
capabilities and electricity demand flexibility. In 2024, Stora Enso's total
energy self-sufficiency was 72%.
Stora Enso’s EU Taxonomy aligned Capex related to climate change
mitigation was EUR 64 million and Opex EUR 66 million, see further details in
the section EU Taxonomy. The difference between the ESRS 1 and EU
Taxonomy disclosed Capex and Opex is due to Stora Enso’s central business
areas not being addressed by the current scope of the EU Taxonomy.
Stora Enso acknowledges that future investments and new technology are
required to reach its target of net-zero by 2040. Therefore, the Group
intends to continue investing in low-carbon and energy-efficient solutions.
Our year 2024
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Assured 93
2.61
0.08
-0.08
-0.86
-0.52
1.23
-0.08
-0.28
1.31
Base year
2019
Production
increase
Energy
efficiency and
investments
into
electrification
Fuel switches
and use of
renewable
energy
Impacts from
site and
production line
closures
2024
emissions
Energy
efficiency and
investments
into
electrification
Fuel switches
and use of
renewable
energy
2030 target
-50% from 2019
2040 net
zero target
0
1
2
3
Targets related to climate change mitigation
and adaptation (E1-4)
Climate change mitigation
In 2017, Stora Enso established a science-based target to reduce its
greenhouse gas (GHG) emissions and achieved this target nine years
ahead of schedule. In 2021, Stora Enso raised its ambition to align with the 1.5-
degree scenario. The updated target is to reduce absolute CO2eq emissions
in both its own production (Scope 1 and 2) and within the value chain
(Scope 3) by 50% by 2030 from the 2019 baseline. The targets have been
approved by the Science Based Targets initiative (SBTi) and are aligned
with the Group’s Energy and Climate Change Policy.
For setting the targets, Stora Enso uses a publicly available science-based
target-setting method for Scope 1, 2 and 3 emissions called the Absolute
Contraction Approach. Since the targets are set for absolute emission
reductions, the possible future developments, such as changes in sales
volumes or shifts in customer demand, will not alter the targets. GHG
removals, carbon credits or avoided emissions are not considered as
means to achieve the targets. See accounting principles for GHG emissions
in ESRS E1-6.
In 2023, Stora Enso reinforced its climate commitment by joining The
Climate Pledge initiative, aiming for net zero carbon emissions by 2040,
across all three Scope categories. The 2019 base year applies to both the
2023 and 2040 targets. As the target is set for absolute emission
reductions, future developments, such as changes in sales volumes or
shifts in customer demand, will not alter the target. See the accounting
principles for GHG emissions in ESRS E1-6.
By the end of 2024, Stora Enso achieved a -53% reduction in Scope 1 and 2
emissions compared to base year 2019, surpassing the target set for 2030.
The decarbonisation levers and related contribution in reductions are
disclosed in the graph ‘Achieved and planned reductions within the
Group’s own operations’. For Scope 3, Stora Enso achieved a -39%
reduction by the end of 2024.
% of GHG emissions reduction
Unit
2024
Scope 1 and 2
%
-53 %
Scope 3
%
-39 %
Total
%
-43 %
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Assured 94
7.46
-2.93
-0.80
4.53
3.73
Base year
2019
Decarbonisation of the
upstream and
downstream value chain
2024
emissions
Decarbonisation of the
upstream and
downstream value chain
2030 target
-50% from 2019
2040 net
zero target
0
1
2
3
4
5
6
7
8
Achieved and planned GHG reductions within the Group’s own operations
CO2eq, million tonnes
Achieved and expected GHG reductions within the value chain
CO2eq, million tonnes
Achieved reductions within
the value chain by 2024
Achieved reductions in own operations by 2024
Planned reductions
in own operations
Expected reductions
within the value chain
Energy
Stora Enso has set an energy efficiency target as part of the Group’s path
towards climate neutrality and as a means to reduce negative impacts
generated by energy use. The target is to achieve on annual energy saving
of -1.1% until 2030. The target was established in 2021, and the target value is
applied for each year. At the end of 2024, Stora Enso surpassed its target
level with a projected annual energy saving of -1.6%.
The target was established with input from internal stakeholders on Stora
Enso’s Energy and Climate Userboard. The target covers the Group's
Packaging Materials, Biomaterials, and Wood Products divisions. The target
is in line with the Policy for Energy and Climate Change and supports the
achievement of the Group’s Scope 1 and 2 Science Based Targets.
Accounting principles
In addition to operational changes, the projected energy savings include
savings from the investments for which the reporting year marks the first
year of impact. Energy savings are reported as a percentage reduction
compared to total energy consumption for the year, without considering
efficiency investments. Generally, the full-year impact of an energy saving
investment is realised in the year following its implementation. The
projected energy savings exclude packaging converting units and joint
operations.
Target related to energy
Unit
2024
Projected energy savings, %
(MWh saved/MWh total energy used,
electricity, heat, and fuels)
%
-1.6 %
Energy consumption and mix (E1-5)
Accounting principles
The energy figures cover all Stora Enso production units. Aligned with the
Financial Statements, the figures include the Group’s joint operations
according to the ownership share (50%). Energy consumption in offices is
included in the figures based on estimates. Local factors are taken into
account at the units when calculating the energy content of the fuels
used.
Stora Enso applies a conservative approach according to ESRS in the split
between renewable and non-renewable sources, and only classifies
energy as renewable or nuclear-based if the origin of the purchased
energy is clearly defined in the contractual arrangements with its
suppliers. If the origin is not known, the source is classified as fossil. Some
production units that purchase electricity from the grid have estimated
their energy consumption, as invoices from the energy provider were not
available at year-end. These estimates do not have a material impact on
the Group’s total energy consumption figure.
Stora Enso’s business activities fall within high climate impact sectors:
Agriculture (Sector: Forestry, code AFO) and Manufacturing (Sector: Pulp,
Paper & Wood products, code MPW) or alternatively NACE 02 (Forestry and
logging), NACE 16 (Manufacture of products of wood), and NACE 17
(Manufacture of pulp, paper and paperboard). Therefore, the Group’s total
sales as reported in the Financial Statements is used to determine
energy intensity.
Energy consumption and mix
Unit
2024
Fuel consumption from coal and coal products
TWh
1.1
Fuel consumption from crude oil and petroleum
products
TWh
1.2
Fuel consumption from natural gas
TWh
0.5
Fuel consumption from other fossil sources
TWh
1.3
Consumption of purchased or acquired electricity,
heat, steam, and cooling from fossil sources
TWh
0.3
Total fossil energy consumption
TWh
4.4
Share of fossil sources in total energy consumption (%)
%
10.4%
Consumption from nuclear sources
TWh
3.9
Share of consumption from nuclear sources in total
energy consumption
%
9.3%
Fuel consumption from renewable sources
TWh
33.3
Consumption of purchased or acquired electricity,
heat, steam, and cooling from renewable sources
TWh
0.6
The consumption of self-generated non-fuel
renewable energy
TWh
0.0
Total renewable energy consumption
TWh
33.8
Share of renewable sources in total energy
consumption
%
80.3%
Total energy consumption
TWh
42.2
Energy intensity ratio
Unit
2024
Total energy consumption from activities in high
climate impact sectors
TWh
42.2
Energy intensity
MWh/EUR
million
4,658
For energy balance, the figures encompass the Group's own energy
production. Electricity received at cost-based principle from Pohjolan
Voima Oyj - where Stora Enso is a minority shareholder with a 16.1%
ownership stake - is reported as its own line and included in own electricity
generation due to Mankala principle. This is further described in Financial
Statements, note 4.4 Equity instruments.
Stora Enso’s energy balance contains also external energy sales, which are
partly EU taxonomy-eligible. For more information, see EU Taxonomy.
Energy production
Unit
2024
Renewable
TWh
29.5
Non-renewable
TWh
2.9
PVO shareholder
TWh
2.5
Renewable
TWh
0.4
Nuclear
TWh
2.1
Total energy production
TWh
34.8
Gross Scopes 1, 2, 3 and Total GHG emissions (E1-6)
Stora Enso's carbon footprint, following the financial consolidation
scope (aligned with ESRS)
Accounting principles
To align with the ESRS requirements, Stora Enso discloses an alternative
carbon footprint in the table below. In these figures, joint operations are
consolidated line by line into Scope 1, 2, and 3 emissions according to
the ownership share (50%). This consolidation approach is aligned with the
Financial Statements. For further accounting principles on greenhouse gas
emissions, see next page.
Stora Enso’s total sales as reported in the Financial Statements are used to
determine the greenhouse gas emission intensity.
Stora Enso’s carbon footprint 2024
(includes joint operations)
Unit
2024
Scope 1 GHG emissions
CO2-eq, million
tonnes
1.33
Scope 2 GHG emissions
CO2-eq, million
tonnes
0.06
Significant Scope 3 GHG emissions
CO2-eq, million
tonnes
4.36
Total GHG emissions
CO2-eq, million
tonnes
5.75
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GHG intensity per net revenue
Unit
2024
Total GHG emissions (location-based) per net revenue
CO2-eq tonnes/
EUR million
636
Total GHG emissions (market-based) per net revenue
CO2-eq tonnes/
EUR million
676
Stora Enso's carbon footprint, following the GHG Protocol’s principle of
operational control
Accounting principles
In its GHG accounting, Stora Enso follows the three standards provided by
the Greenhouse Gas Protocol of the World Resources Institute and the World
Business Council for Sustainable Development: the GHG Corporate
Accounting and Reporting Standard, the GHG Protocol Scope 2 Guidance,
and the Corporate Value Chain (Scope 3) Accounting and Reporting
Standard. Stora Enso uses the operational control approach to consolidate
these standards. The science-based targets for reducing GHG emissions
are reported as a percentage change from the baseline, which is updated
annually to reflect the current Company structure.
Scope 1 and 2 emissions include direct and indirect GHG emissions,
calculated as fossil CO2 equivalents (CO2eq), from all production units,
excluding joint operations. In addition to CO2, other relevant GHG emissions
for Stora Enso are methane (CH4) and nitrous oxide (N2O), which are
generated when using fossil and biomass fuels in the units’ power boilers.
These gases are converted to CO2eq using their respective global warming
potential based on the fourth assessment report of the Intergovernmental
Panel on Climate Change (IPCC), or fuel-specific CO2 emission factors
based on site analysis. The sources of Stora Enso’s Scope 1 factors are 2006
IPCC Guidelines for National Greenhouse Gas inventories, Chapter 2:
Stationary Combustion, and for biogenic emissions Fuel classification 2018
from Statistics Finland. HFCs are estimated to present 500 to 1,000 tonnes,
while SF6 is not applicable.
In 2024, 60% of Stora Enso’s Scope 1 emissions were from regulated
emission trading schemes. For more information on emissions covered by
trading schemes, see Financial Statements, note 4.5 Emission rights and
other non-current assets. In 2024, the biogenic emissions related to Scope 1
amounted to 9.14 (million tCO2eq). When including joint operations, the
biogenic emissions related to Scope 1 were 11.86 (million tCO2eq).
Scope 2 GHG emissions are calculated based on purchased electricity and
heat. The CO2 emission factors used for purchased energy largely follow
the market-based methodology, meaning that almost all units apply CO2
factors provided by their energy suppliers. When these are not available,
the Group applies the country-specific residual mix factor. In the absence
of residual mix factors, the most recent location-based factors provided
by the International Energy Agency (IEA) are used. The applied factors do
not separate the percentage of biogenic CO2. Scope 2 includes market
instruments, such as the trading of Guarantees of Origin for electricity.
Scope 3 emissions include fossil CO2eq emissions from other sources in the
upstream and downstream value chain of all production units. Stora Enso
follows the WBCSD guidance for Scope 3, which includes 15 potential
categories of emissions and applies an activity-based methodology for
Scope 3 accounting. This means that emissions are estimated by
multiplying the activity data with the relevant carbon emission factors.
Due to estimation based on volume materiality, some categories may be
excluded from the reporting if they are deemed insignificant to total
emissions, or not applicable to the Group’s business operations. Material
emission categories included in Scope 3 emissions are reviewed whenever
new information on data level or accounting methodology becomes
available. When primary data is not available for the carbon emission
factors of Stora Enso’s activity data, the Group utilises secondary sources,
such as EcoInvent, the Network for Transport Measures, Metsäteho, The
Alliance for Beverage Cartons and the Environment (ACE) and the
European Federation of Corrugated Board Manufacturers (FEFCO).
Occasionally proxy factors are also used.
In the 2024 reporting, the Scope 3 categories, as defined by ESRS, included:
Purchased goods and services, Fuel and energy related activities,
Upstream transportation and distribution, and Processing of sold products.
The share of primary data used based on the volume of emissions is 10%. In
GHG accounting, joint operations are included as part of Scope 3
emissions due to the lack of operational control, which is further explained
in ESRS 2 BP-1. To ensure ESRS-alignment, an alternative carbon footprint,
following the consolidation principles of the Group's Financial Statements,
has been disclosed at the start of this section.
The excluded Scope 3 categories are: Capital goods, Waste generated in
operations, Business travelling, Employee commuting, Upstream leased
assets, Downstream transportation, Use of sold products, End-of-life
treatment of sold products, Downstream leased assets, Franchises, and
Investments.
Total GHG emissions
disaggregated
Retrospective
Milestones and target years
Base
year
2019
2023
2024
Change,
%
2025
2030
(2050)
Annual %
Target /
base year
Scope 1 GHG Emissions
Gross Scope 1 GHG
emissions (CO2-eq,
million tonnes)
2.27
1.17
n/a
1.13
-4.5 %
Percentage of Scope 1
GHG emissions from
regulated emission
trading schemes (%)
72%
60%
n/a
Scope 2 GHG Emissions
Gross location-based
Scope 2 GHG emissions
(CO2-eq, million
tonnes)
n/a
0.42
n/a
Gross market-based
Scope 2 GHG emissions
(CO2-eq, million
tonnes)
0.34
0.05
n/a
0.17
-4.5 %
Significant scope 3 GHG emissions
Total Gross indirect
(Scope 3) GHG
emissions (CO2-eq,
million tonnes)
7.33
4.53
n/a
3.73
-4.5 %
Purchased goods
and services
2.34
1.60
n/a
Fuel and energy
related activities
0.54
0.21
n/a
Upstream
transportation and
distribution
1.24
0.96
n/a
Processing of sold
products
3.21
1.75
n/a
Total GHG emissions
Total GHG emissions
(location-based) (CO2-
eq, million tonnes)
n/a
6.12
n/a
Total GHG emissions
(market-based) (CO2-
eq, million tonnes)
10.00
5.75
n/a
5.04
-4.5 %
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Assured 96
Stora Enso’s carbon footprint 2019–2024 according to GHG Protocol
(Following the GHG Protocol’s principle of operational control, Scope 1 and 2
emissions covered by reasonable assurance)
1, 2
Fossil CO2 equivalent (million tonnes)
Trend
2019
2020
2021
2022
2023
2024
2019-2024
Scope 1
2.27
2.08
2.13
1.78
1.45
1.17
-48%
Scope 2
3
0.34
0.19
0.10
0.09
0.05
0.05
-84%
Scope 3
7.46
7.21
7.67
5.65
4.88
4.53
-39%
Total
10.07
9.47
9.90
7.52
6.38
5.76
-43%
1 Scope 1+2 emissions covers Stora Enso’s production units. Includes the trading of Guarantees of Origin for
electricity. Joint operations are included in Scope 3 emissions.
2 All comparative figures are restated due to structural changes or additional data after the previous report.
3 The CO2 factors used for purchased energy (Scope 2) largely follow the market-based methodology, which
means that almost all production sites apply CO2 factors provided by their energy suppliers. When applying
available residual factors, location-based Scope 2 emissions for 2024 are 0.42 million tonnes of CO2
equivalents.
GHG removals and storage (E1-7)
Stora Enso’s business activities are connected with GHG removals and
carbon storage, as the Group’s forests sequester carbon and its wood-
based products store carbon. While the Group does not use these
removals or storage in its greenhouse gas reporting of Scope 1, 2 and 3, the
amounts are disclosed in accordance with ESRS requirements to provide a
coherent picture of the positive impacts identified as part of the double
materiality assessment.
Stora Enso’s primary means of reducing fossil carbon emissions is through
direct action within its own operations and value chain as described in
ESRS E1-3. The Group’s carbon performance is reported without offsets as
advised by the Science Based Targets initiative. Although direct action is
the primary means of emissions reduction, some emissions currently
remain unavoidable. Therefore, carbon offsetting is used for certain Group
products to offer materials that help customers reduce their climate
impact. Offsetting for products is only done through projects that are
measurable and third-party verified, such as those in accordance with the
Gold Standard.
Accounting principles
Carbon stored by Stora Enso’s products is calculated as the average
carbon storage over 100 years from the harvest year, using the IPCC half-
life methodology. The figure has been calculated by the Swedish University
of Agricultural Sciences (SLU) based on Stora Enso’s forest and production
figures (Climate effects of a forestry company – including biogenic carbon
fluxes and substitution effects).
The forest carbon sink is calculated as the three-year average of annual
CO2 sequestration in Stora Enso’s owned or leased productive forest lands.
The carbon stored in Stora Enso’s productive forests is calculated as of end
of the reporting year. In line with the Financial Statements, the figure
contains the biological assets of the Group’s joint operations proportional
to the ownership share (50%). For further details, see Financial Statements,
note 4.2 Forest assets.
Accounting methods for forest carbon sinks and storage are not
standardised, and the chosen method and reporting period can influence
the results. In sustainably managed forests, carbon sink and storage levels
are maintained or increased throughout the forests’ management cycle.
During this cycle, factors such as harvesting and natural disturbances,
growth rates related to forest ages and types, and other possible events
can cause short-term variations in the carbon sinks and storage.
Metrics related to GHG removals and storage
Unit
2024
Total GHG removals
Annual CO2 sequestration in owned or leased
productive forest lands, three-year annual average
million tonnes
4.3
Total GHG storage
Total CO2 stored in Stora Enso’s productive forest as
of 31 Dec 2024
million tonnes
295
Carbon stored in Stora Enso's products
million tonnes
2.5
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ESRS E2 Pollution
Material impacts, risks and opportunities (ESRS 2 SBM-3)
Pollution-related impacts and risks are connected to Stora Enso’s business
model, as the Group’s production processes generate emissions to both
air and water. This poses a risk of local significant or even critical negative
impacts for both the environment and people. During the past years, some
of the risks have materialised into local environmental incidents. The
actual negative impacts can be caused, for example, by atmospheric
emissions and aerosol loading from fuel combustion for energy
generation. Negative impacts related to water contamination are mainly
caused by water effluents and pollutants containing suspended solids,
chemical oxygen demand, total organic carbon, phosphorous, nitrogen,
and absorbable organic halogen compounds.
Policies related to pollution (E2-1)
The minimum requirement is that all policies and guidelines be reviewed
at least once every two years. Each policy owner shall ensure that the
documents under their responsibility are reviewed and updated within the
defined time frame.
The Environmental Guidelines outline the commitment to comply with all
applicable legal and regulatory obligations and protecting the
environment. This means applying precautionary management actions to
mitigate and remedy potential adverse impacts on the environment and
people. The mitigation and prevention measures focus on ensuring
compliance with regulations, controlling pollution to air, water, and soil,
and implementing and maintaining environmental management systems.
The guidelines specifically address phosphorus, nitrogen, chemical oxygen
demand (COD), and absorbable organic halogen compounds (AOX), but
do not cover all pollutants. Additionally, the guidelines do not explicitly
address the avoidance of incidents and emergencies, as these are
expected to be documented in local environmental management
systems. The guidelines do not detail remediation of actual negative
impacts, as corrective actions are typically defined specifically for each
case through dialogue between authorities and the relevant production
unit. For further details on the guidelines, see ESRS E1-2.
Actions and resources related to pollution (E2-2)
The following two key actions carried out in the Group’s own operations
contribute to the achievement of the objectives outlined in the
Environmental Guidelines for preventing, mitigating, and remedying
impacts to air, water, and soil. Both long-term actions are aligned with the
target of achieving zero environmental non-compliances.
1) Managing emissions to air and water
Stora Enso’s long-term action involves implementing and maintaining
processes and systems to monitor and control emissions to air and water,
thereby effectively managing its pollution-related impacts and associated
risks. Environmental management systems are regarded as the primary
tool for driving continual improvements in processes and environmental
performance. All production sites are required to implement and uphold
third-party certified environmental management systems. At the end of
2024, 47 out of the Group's 57 production sites had an ISO 14001 certificate.
To ensure water quality and compliance with local permit limits, Stora
Enso’s board, pulp, and paper mills continuously monitor effluent
discharges, including temperature and pH levels, into local water bodies.
Compliance with local environmental permit limits is regulated and
controlled by relevant authorities, with any deviations promptly reported
to them. Regarding atmospheric emissions, Stora Enso employs advanced
technologies such as scrubbers and boiler process control systems to
reduce air emissions and mitigate odours from point sources at its
industrial units. These emissions primarily stem from fuel combustion for
energy generation and from production processes.
• As an example, a new electric boiler was commissioned at the Anjala
site in Finland in 2024, not only reducing the use of fossil fuels but also
minimising emissions to air.
2) Addressing environmental incidents and liabilities
Stora Enso addresses the management of environmental incidents by
maintaining a group-wide reporting and management process. The
approach aims to ensure regulatory compliance, adherence to permits,
and continuous improvement. It involves the following steps:
• Significant events are reported to the Board’s Sustainability and Ethics
Committee within 24 hours, and are also included in the externally
published Annual Report each year. This process aligns with the
Environmental Guidelines, which prioritise regulatory compliance,
adherence to permits, and the target of zero environmental incidents.
• Root cause analysis is carried out for each incident, and corrective and
preventive measures are decided accordingly. The analysis findings are
shared internally for ongoing improvement and prevention efforts.
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Assured 98
Description
Impact, risk, or opportunity
Time horizon
Location in the value
chain
Related sub-topic or
sub-sub-topic
Emissions to air are generated from industrial operations.
Actual negative impact
Short, medium, and long
term
Own operations, joint
operations
Pollution of air
Significant environmental incidents occur at industrial operations and
forestry (wood supply) operations.
Actual negative impact
Short, medium, and long
term
Own operations
Pollution of air/water
Stora Enso has an environmental provision related to purifying runoff water
from Kopparberg mine in Sweden before releasing the water into the
environment.
Actual negative impact
Short, medium, and long
term
Own operations
Pollution of water/soil
Effluents to water are generated from industrial operations.
Actual negative impact
Short, medium, and long
term
Own operations, joint
operations
Pollution of water
Risk of pollution-related environmental non-compliance, such as exceeding
permit limits. Incidents may damage Stora Enso’s reputation and brand,
which may result in a loss of investor and customer confidence leading to
higher cost of capital and decreased revenues. Incidents may also lead to
fines and other financial liabilities.
Risk
Short, medium, and long
term
Own operations
Pollution of air/water
• Internal investigations are conducted with the involvement of relevant
internal and external stakeholders for each incident. The time frame for
completion varies depending on the nature of the case. Collaboration
and dialogue with the relevant authorities are managed individually for
each case.
• Corrective and preventive measures may include, for example, training
of the Group’s own employees and suppliers, and installation of new
equipment. In some instances, Stora Enso is also subject to potential
fines from local authorities. The cases that occurred, along with the
corrective short-term actions and remediation taken in 2024, are
described in ESRS E2-3.
• Accountability for long-term consequences: Stora Enso has
environmental provisions related to remediation of an existing condition
caused by past operations. The most material provision being the
agreement between Stora Enso and the City of Falun that obligates the
Group to purify runoff water from the Kopparberg mine before releasing
the water into the environment. The provision at year-end amounted to
EUR 27 million. For all environmental provisions, see Financial Statements,
note 4.9 Provisions.
Resources related to pollution
Current and future resources to prevent and manage local pollution-
related impacts consist of operational costs, such as personnel costs,
permit-related costs, repair and maintenance costs, and wastewater
treatment chemicals.
In 2024, Stora Enso’s total environmental investments amounted to EUR 120
million. These investments were mainly targeted at improving the quality
of air and water, to enhance resource and energy efficiency, and to
minimise the risk of accidental spills. In 2024, the Group’s environmental
investments related to emissions to air and water amounted to EUR 93
million. Investments in new technology and the upgrading of existing
equipment are necessary to control and reduce environmental pollution
and its impacts. These improvements are targeted at enhancing quality of
air and water, maintaining compliance, and minimising the risk of
accidental spills into the environment. Future investments will be decided
by prioritising required improvements at industrial units.
Stora Enso’s environmental costs in 2024, excluding interest and including
depreciation, totalled EUR 208 million. These costs include taxes, fees,
refunds, permit-related costs, and repair and maintenance costs, as well
as wastewater treatment chemicals and certain other materials. In 2024,
the Group’s environmental costs related to emissions to air and water
totalled EUR 75 million.
Targets related to pollution (E2-3)
Stora Enso has a continuous target of zero significant non-compliance
events to support and promote its environmental policies and prevent
negative impacts. The target for significant environmental non-
compliance events was set in 2017, aiming for zero cases by the end of the
year. In 2017, there were a total of 10 significant non-compliance events. In
2024, there were a total of 24 significant non-compliance events, 12 of
which were related to pollution of air or water.
The target focuses on controlling air pollutants and their specific loads, as
well as emissions to water and their specific loads, since crossing of
monthly, quarterly, or annual local permit is considered as a significant
non-compliance event. The target is not based on conclusive scientific
evidence, but rather on legal compliance. The target is monitored based
on the group-wide reporting process described in ESRS E2-2. Stakeholders
were not included in the target setting.
In alignment with the Corporate Sustainability Reporting Directive, the
target is disclosed also in ESRS E4-4, covering cases related to biodiversity
and ecosystems. The cases related to pollution of air and water are
presented in the below table.
Accounting principles
The target is measured as the number of significant non-compliance
events occurred during the reporting year. The target includes Stora Enso’s
own business operations: industrial units and harvesting sites.
A non-compliance in pollution typically means crossing a specific local
monthly, quarterly, or annual permit limit of air, or emission to water. The
incidents related to pollution of air and water are reported per production
site, based on their specific environmental permissions.
Number of significant non-compliance events
2024
Related to pollution of air
4
Related to pollution of water
8
Location
Description of the event
Corrective and preventive measures
Alytus
sawmill,
Lithuania
Two events: Recurring
problems with water
discharges in 2024 led to
exceeded permit limits for
suspended solids and
biochemical oxygen demand
(BOD) in the water.
Implementation of additional cleaning of
water drainages and improved regular
sampling. Preparation of a new technical
solution for rainwater treatment.
Enocell mill,
Finland
Suspended solids water permit
limit exceeded
Adjusted water flows, bark press repaired,
primary sludge removal revised, and
improved measurement procedures
implemented.
Enocell mill,
Finland
Phosphorus water permit limit
exceeded
Improvements in measurement and
control procedures, including improved
model for phosphorous balance. Using
back-up water basin to improve cooling
effects and to handle high phosphorus
loads in conjunction with shutdown and
start-up.
Forest,
Finland
A small vessel transporting
floating logs sank at the Vuoksi
harbour close to Imatra mill and
leaked light fuel oil into water.
Vessel lifted and leaked oil contained
according to standard procedures.
Heinola mill,
Finland
Odorous sulphur gases spread
to the city of Heinola
Preparations to invest in a new sulphur
oven and a new absorption tower to
replace the old equipment.
Heinola mill,
Finland
Odorous sulphur gases spread
to the city of Heinola
Absorption towers’ nozzles cleaned.
Preparations to invest in a new sulphur
oven and a new absorption tower to
replace the old equipment.
Heinola mill,
Finland
Odorous sulphur gases spread
to the city of Heinola
Improved shutdown instructions and
training concerning chemicals handling.
Repairing pH measurement and
improved automation. Preparations to
invest in a new sulphur oven and a new
absorption tower to replace the old
equipment.
Plana mill,
Czechia
Two events: Water permit limits
for chemical oxygen demand
(COD) and hydrocarbon
content exceeded
Cleaning of wastewater treatment pond
and other operational corrective
activities performed. Additional
treatment technologies to improve
readiness for sudden heavy rains and
winter season under investigation.
Plana mill,
Czechia
Volatile organic compounds
(VOC) air permit limit exceeded
New environmental permit received with
higher production volumes and glue
usage. Updated chemical training for the
production staff.
Varkaus
board mill,
Finland
Phosphorus permit limit to
water exceeded
Enhanced shutdown procedures and
improved timing for sampling the monthly
water samples.
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Assured 99
Pollution of air, water and soil (E2-4)
Accounting principles
According to the European Sustainability Reporting Standard on Pollution,
the consolidation of each pollutant includes only the emissions from
facilities for which the applicable threshold value specified in Annex II of
Regulation (EC) No 166/2006 is exceeded.
The reporting of pollutants is a combination of unit-specific direct
measurement, estimates, and calculations of emissions. Aligned with Stora
Enso’s Financial Statements, the figures contain emissions to air and water
generated by the Group’s joint operations according to the ownership
share (50%).
Water effluents are monitored using both online and offline measurements,
such as standard methods for the forest products industry. Board, pulp,
and paper production sites monitor process water discharges, and water
pollutants such as suspended solids, chemical oxygen demand, total
organic carbon, phosphorous, nitrogen, and absorbable organic halogen
compounds. Monitoring and reporting are conducted daily, monthly, or
annually depending on the sites’ operations, pollutants, and environmental
permits. The share of the measure obtained from direct measurement is
estimated to be almost 100%.
Third party assessments are used as a basis for estimates, in particular for
heavy metal related emissions when direct measuring equipment is not
available. In these cases, the average of third-party measured values is
applied for the full year. The data is reported by each mill to Group’s
environmental reporting system based on direct measurements or
estimates based on third party calculations..
Non-compliance incidents related to pollution during 2024 are disclosed
as part of ESRS E2-3, including short-term actions regarding corrective
and preventive measures.
The pollution of soil is a material topic for Stora Enso due to the
environmental provision related to remediation of an existing condition
caused by past operations in Falun, Sweden. Within Stora Enso’s own
organisation, thresholds for pollution of soil are not exceeded, and therefore
not disclosed as part of ESRS E2-4.
Emissions to air by pollutant
Unit
2024
Carbon monoxide (CO)
tonnes
5,202
Ammonia (NH3)
tonnes
189
Non-methane volatile organic compounds (NMVOC)
tonnes
1,352
Nitrogen oxides (NOx/NO2)
tonnes
7,435
Sulphur oxides (SOx/SO2)
tonnes
335
Copper and compounds (as Cu)
kg
130
PCDD + PCDF (dioxins + furans) (as Teq)
kg
30
Chlorine and inorganic compounds (as HCl)
tonnes
41
Particulate matter (PM10)
tonnes
1,178
Hydro-fluorocarbons (HFCs)
kg
649
Emissions to water by pollutant
Unit
2024
Total nitrogen
tonnes
517
Total phosphorus
tonnes
63
Cadmium and compounds (as Cd)
kg
312
Copper and compounds (as Cu)
kg
1,370
Mercury and compounds (as Hg)
kg
15
Nickel and compounds (as Ni)
kg
570
Zinc and compounds (as Zn)
tonnes
9
Halogenated organic compounds (as AOX)
tonnes
195
Total organic carbon (TOC) (as total C or COD/3)
tonnes
4,593
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Assured 100
ESRS E3 Water and marine resources
Material impacts, risks and opportunities (ESRS 2 SBM-3)
Policies related to water and marine resources (E3-1)
The minimum requirement is that all policies and guidelines be reviewed
at least once every two years. Each policy owner shall ensure that the
documents under their responsibility are reviewed and updated within the
defined time frame.
The Environmental Guidelines are described in ESRS E1-2. For managing
water-related negative impacts and risks as defined in the above table in
SMB-3, the guidelines set the founding principles for efficient, low, and
optimised water use. This encompasses water withdrawal, water
treatment, and process water discharges. More specifically, the guidelines
outline the commitment to reducing the impacts of water use, enhancing
efficiency and recycling, improving water quality, minimising water
pollution, and mitigating and remediation of any potential adverse
impacts on environment and people.
ISO 14001 environmental management system comprises on-site
management procedures for identifying and assessing material water-
related impacts, risks, and opportunities focusing on the local material
water issues with the highest priority. Process water is minimised with
tailored activities to achieve continuous improvements. The wastewater
treatment facilities that treat the process water from production
processes aim to prevent ecological harm cased by discharged water.
The impacts on local communities are addressed as part of the
Environmental and Social Impact Assessments for new industrial projects,
as well as through due diligence processes for mergers, acquisitions, and
divestments.
Most of the production units are located in areas where water is generally
abundant, and water scarcity is closely monitored. Water risks are
identified for ground and surface water scarcity, failures of water related
equipment, flooding, runoff and rising water levels, and for raw water
temperature implications.
Actions and resources related to water and marine
resources (E3-2)
Stora Enso’s four key long-term actions to improve water use efficiency
and to mitigate potential negative impact in areas of water scarcity are
described below. The actions contribute to the objectives of the
Environmental Guidelines on protecting the environment.
1) Site-specific investments in technology and equipment are done on an
annual basis to enhance water efficiency. The amount varies between the
years. In 2024, the Group’s energy and water efficiency fund supported
water-related investments of approximately EUR 2 million at four
production sites. These investments are estimated to reduce the Group’s
water discharges by 2 million cubic meters and total costs by
approximately EUR 2 million annually. In the Financial Statements, these
investments are included in the note 4.1 Intangible assets, property, plant
and equipment and right-of-use assets. This action supports the targets of
reducing specific process water discharges and decreasing the trend for
total water withdrawal as described in ESRS E3-3.
2 ) Action is taken locally to manage the potential impact related to
productions units that are located in areas with water stress. WRI Aqueduct
Water Risk Atlas is used to assess water-related risks at production sites,
providing information on water scarcity, stress, flooding, and water quality.
Examples of initiatives from year 2024 to address water stress include:
• Beihai mill in China implemented several initiatives to enhance water
efficiency. For example, the mill began reusing power plant drainage
waters in other parts of the production. As a result of these measures,
both specific total water withdrawal and specific process water
discharges have decreased compared to the previous year.
• At the Langerbrugge mill in Belgium, water discharges were reduced by
approximately 5% compared to the previous three years mainly by
recovering full blow down of scrubbers.
3) Continuous efforts are taken at the production sites to optimise water
use by utilising only freshwater from surface, ground, and municipal
sources. After use, the process water is cleaned at treatment plants before
being returned to the local ecosystem. As an outcome, almost 95% of
water is recycled back into the environment, while only around 5% of water
is consumed in production processes. This action helps to mitigate the
impact generated by both water consumption and withdrawal.
4) To mitigate the risk of environmental incidents or exceeding permit
limits related to water effluents, Stora Enso monitors water usage and
discharges into water bodies in accordance with the limits established by
environmental permit processes. For detailed actions, see section
ESRS E2-2.
During 2024, EUR 16 million of grants have been repaid back to authorities in
Belgium. This repayment stemmed from a 2019 legionella-related incident,
classified as an environmental infringement. The case was resolved in
court in 2024. For further details, see Financial Statements, note 4.8
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Assured 101
Description
Impact, risk, or opportunity
Time horizon
Location in
the value chain
Related sub-topic or
sub-sub-topic
Stora Enso’s industrial operations withdraw significant amounts of water.
Production of board, pulp, and paper requires substantial amounts of
water, accounting for over 99% of the Group’s total water withdrawal.
Actual negative impact
Short, medium, and
long term
Own operations
Water withdrawals
Water withdrawal and consumption occur in areas of water scarcity.
Potential negative impact
Short, medium, and
long term
Own operations
Water withdrawals;
Water consumption
Water-intensive production processes.
Actual negative impact
Short, medium, and
long term
Own operations, joint
operations
Water consumption
Industrial operations impact freshwater ecosystems through water
discharges.
Actual negative impact
Short, medium, and
long term
Own operations, joint
operations
Water discharges
Risk of an environmental incident or exceeding permit limits related to
water effluents, leading to negative impact on environment and/or
people. Incidents may also damage Stora Enso’s reputation and brand,
which may result in a loss of investor and customer confidence leading
to higher cost of capital and decreased revenues. Incidents may also
lead to fines and other financial liabilities.
Risk
Short, medium, and
long term
Own operations
Water discharges
Majority of the production sites are located in areas with low water stress
which contributes to consistent and sufficient water supply and ensures
operational stability and efficiency. Moreover, it supports the Group’s
long-term resilience against climate change as areas with a low risk of
water inadequacy are less likely to experience the adverse impacts of
climate change, such as prolonged droughts or water scarcity.
Opportunity
Medium and long term
Own operations
Water withdrawal;
Water consumption
Operative liabilities. In 2024, Stora Enso’s water-related costs were EUR 20
million. For further details on the Group’s environmental costs and
investments, see ESRS E2-2.
Targets related to water and marine resources (E3-3)
To reduce its actual negative impacts related to water use, Stora Enso has
established a target on reducing specific process water discharges per
saleable tonne (m
3 /tonne) by 17% by 2030 from the 2019 baseline (36 m
3).
On water withdrawal, Stora Enso has a continuous target on decreasing
the trend for total water withdrawal per saleable tonne (m
3/tonne) from
the 2016 baseline (60 m
3). The targets were not achieved for 2024. Water
performance per saleable tonne, measured over rolling four quarters, has
been impacted by lower production volumes as a steady water flow
needs to be maintained at the water treatment plants.
The targets are in line with the Environmental Guidelines, defining the
founding principles for water management Setting a target on water is not
mandated by legislation. External stakeholders were not involved in the
target setting. The target is not based on conclusive scientific evidence.
Accounting principles
The targets have been established for operations with most significant
impact on water use, and include process water and cooling and non-
contact water intake. Process water discharges include the discharges by
selected board, pulp, and paper production sites as cubic metres (m
3) The
target for total water withdrawal contains all board, pulp, and paper
production sites. The water withdrawal and discharges are normalised by
dividing water m
3 with the total production of board, pulp, and paper as
saleable tonnes (t) during the same period. Detailed accounting principles
are available in ESRS E3-4.
Targets related to water
Unit
2024
Process water discharges per saleable tonne of board,
pulp, and paper
m
3 /tonne
34
Total water withdrawal per saleable tonne of board,
pulp, and paper
m
3 /tonne
60
Water consumption (E3-4)
Production of board, pulp, and paper requires substantial amounts of
water, accounting for over 99% of the Group’s total water withdrawal.
These units predominantly draw process and cooling water from surface
water sources, with 98% of the total water withdrawal derived from surface
water in 2024. Approximately 2% is sourced from municipal or groundwater
supplies. According to the WRI Aqueduct Water Risk Atlas tool, five of the
Group’s production units operate in regions with High Baseline Water
Stress: Beihai in China, Langerbrugge in Belgium, Wujin and Qianan
corrugated units in China, and Łódź in Poland. During 2024, these units
withdrew 15.7 million m
3 of water, which is 4% of the Group’s total water
withdrawal. The process water discharges of these units were 12.7 million
m
3, which is 6% of the Group’s total process water discharges. Stora Enso
does not store water within is production sites.
Accounting principles
Aligned with the Financial Statements, the water related metrics include
the Group’s joint operations according to the ownership share (50%). The
Group continuously improves the accuracy of water reporting and
consolidation of data. The data is reported by each mill to the Group’s
environmental reporting system.
Total water withdrawal includes process water and cooling and non-
contact water intakes by all industrial units as cubic metres (m
3). Total
water discharges include the discharges of all industrial units as cubic
metres (m
3). In 2022, the Group implemented a standardised procedure to
report water at board, pulp, and paper units, where cooling and process
water flows are measured in different positions at the units. Due to this, the
calculated figures do not always correspond to the measured figures of
total water withdrawal. The share of the measure obtained from direct
measurement is estimated to be approximately 58%.
The reported water consumption includes estimated water in products,
residuals, and waste, as well as volumes of evaporated water to air from
process water cooling towers, from wastewater treatment plants, and
from cooling towers for non-contact water at the Group’s mills. Sawmills,
corrugated production units, and offices are included in the consumption
figures based on estimates. The calculation of water consumption builds
on the Confederation of European Paper Industries’ (CEPI) method of
describing water use and consumption, and the Swedish Environmental
Research Institute’s (IVL) report on Water Profile for the Swedish forest
industry. It is estimated that approximately 25% of the total volume of
water consumption is obtained through direct measurement.
The total water recycled and reused is reported based on the amounts of
reused cooling and non-contact water.
Water intensity ratio is calculated as the Group’s total water consumption
in m
3 per million EUR of the Group’s total sales as reported in the Financial
Statements.
Metrics related to water
Unit
2024
Total water withdrawals
million m
3
401
Total water discharges
million m
3
379
Total water consumption
million m
3
19.6
Total water consumption in areas at water risk,
including areas of high-water stress
million m
3
1.6
Total water recycled and reused
million m
3
18.6
Water intensity ratio
m
3/million EUR
2,169
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Assured 102
ESRS E4 Biodiversity and ecosystems
Transition plan and consideration of biodiversity and
ecosystems in strategy and business model (E4-1)
In 2021, Stora Enso introduced a new sustainability agenda centred around
three focus areas: climate, biodiversity, and circularity. This was preceded
by an assessment of Stora Enso’s business model and strategic resilience
in relation to future key sustainability risks and opportunities. The
assessment process engaged internal stakeholders from all divisions,
while also seeking input from external experts. The assessment did not
include consultations with affected communities. The assessment’s time
horizons were set to 2030 and 2050.
The assessment's focus was on transition events, such as increasing
legislation and external stakeholder pressure. These key risks are further
described in SBM-3. The resilience assessment covered Stora Enso’s own
operations and incorporated a number of scientific studies and analysis,
one of the most important being the Planetary Boundary concept by
Stockholm Resilience Center. The concept identifies nine planetary
boundaries, and crossing them leads to physical, systemic risks that are a
threat to society. In 2021, two of the planetary boundaries - climate change
and biodiversity loss - were crossed, both relevant for Stora Enso. Since
then, four more boundaries have been crossed. The analysis did not cover
the upstream and downstream value chain.
The results of the analysis indicated that biodiversity loss is proceeding at
an accelerated speed, and stakeholders expect companies to address
systematic climate and biodiversity related risks beyond their own
industries. The conducted analysis indicates that in order to future-proof
Stora Enso’s business and strategy, it is imperative for its operations and
products to actively remove carbon from the atmosphere and contribute
to halting biodiversity loss. Additionally, responsible business practices
should be implemented to ensure that the Group operates within the
defined planetary boundaries for other Earth systems, such as freshwater
use.
As an outcome, Stora Enso established a transition plan designed for
driving new opportunities and future-proofing the Group’s business in an
environment that is constantly changing on an accelerated pace. For
biodiversity, a target was established on achieving a net-positive impact
on biodiversity in the Group’s own forests and plantations by 2050. The
long-term goal is supported by a set of biodiversity indicators, with defined
intermediate targets. The transition plan for climate is presented under
ESRS E1-1.
Material impacts, risks and opportunities (ESRS 2 SBM-3)
E4 disclosure requirement related to ESRS 2 SBM-3
Stora Enso had a total of 2.1 million hectares of owned or leased lands in
2024. Additionally, the Group purchased wood from approximately 21,000
private forest owners. The Group does not have direct impact on land-use
change as existing forests are not converted to agriculture, plantations,
or other purposes. In the double-materiality assessment, no material
negative impact with regards to land degradation, desertification, or soil
sealing was identified.
In addition to its own forestry sites, Stora Enso sources most of its wood
from private and other forest owners in Finland, Sweden, Norway, the
Baltics, and Central Europe. These harvesting sites are considered to be
part of Stora Enso’s upstream value chain. The Group's own forests and
harvesting sites of the local forest owners may be located near
biodiversity-sensitive areas, but significant negative impact is not
typically caused to these habitats due to strict policies and harvesting
practices. However, in 2024 significant local negative impact was caused
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Assured 103
Description
Impact, risk,
or opportunity
Time horizon
Location in
the value chain
Related sub-topic or
sub-sub-topic
Sustainable forest management maintains forest health and vitality. Active
biodiversity management and conservation in forest operations, such as
spatially optimising the volume of deadwood and protection of key habitats,
contribute to positive biodiversity impact.
Actual positive impact
Short, medium, and long
term
Upstream value chain,
Own operations, joint
operations
Direct exploitation
Negative impacts to biodiversity, such as damage to key habitats or species,
can result from unsustainable forest management and harvesting practices
or levels.
Actual and potential
negative impact
Short, medium, and long
term
Upstream value chain,
Own operations
Direct exploitation
Environmental non-compliance cases in forestry (wood supply) operations
occurred during the year.
Actual negative impact
Short
Upstream value chain,
Own operations
Direct exploitation;
Endangered species
and their habitat
Dependency on wood as raw material, which makes Stora Enso vulnerable to
wood price fluctuations. The rising market demand for wood has led to
increased prices in recent years. There is also a potential risk of new policies
and regulations related to forestry and biodiversity that could limit harvesting
levels in EU forests. This could result in wood price increases and potential
supply limitations, which may adversely affect the competitiveness of
products.
Risk
Short, medium, and long
term
Upstream value chain,
Own operations
Impacts and
dependencies on
ecosystem services
Biodiversity loss can reduce the value of Stora Enso’s forest assets and
decrease forests’ resiliency to external calamities. Biodiversity loss can impact
the acceptability of wood as raw material.
Risk
Medium and long term
Own operations, joint
operations
Impacts and
dependencies on
ecosystem services
Risk of non-compliance related to harvesting, such as damage to ecologically
sensitive areas or non-compliance with regulations. Incidents may damage
Stora Enso’s reputation and brand, which may result in a loss of investor and
customer confidence leading to higher cost of capital and decreased
revenues. Incidents may also lead to fines and other financial liabilities.
Risk
Short, medium, and long
term
Upstream value chain,
Own operations
Direct exploitation
Owning forests provides Stora Enso with strategic advantages, including
securing a reliable and consistent wood supply, reducing reliance on external
suppliers, promoting environmental stewardship through sustainable forestry
practices, preserving and actively managing biodiversity, and contributing to
carbon sequestration efforts.
Opportunity
Short, medium, and long
term
Own operations, joint
operations
Impacts and
dependencies on
ecosystem services
New technology enables effective collection and processing of biodiversity
data. Stora Enso combines science, technology and data to develop models
to optimise biodiversity management and conservation in the Group’s forests
and wood supply.
Opportunity
Short, medium, and long
term
Upstream value chain,
Own operations, joint
operations
Impacts and
dependencies on
ecosystem services;
Endangered species
and their habitat
Climate change related physical risks on biodiversity and the Group’s forest assets are described in ESRS E1.
to an endangered species and its habitat near one of the harvesting sites
in Finland. See further details in ESRS E4-4.
As per the Corporate Sustainability Reporting Directive, Stora Enso’s
material forestry sites fall into two categories: sites under operational
control and sites within the value chain, where the Company holds 50%
ownership, or less. In all operations, actual negative impacts on
biodiversity may occur through harvesting and other activities, and some
of the sites may be located near biodiversity-sensitive areas.
Forestry site
Direct
operational
control
Ecological
status
Activities
impacting
ecological
status
Biodiversity-
sensitive areas
impacted
Sweden (own
forest)
1
Yes
Moderately
modified
Forestry
operations
Yes
China
1
Yes
Largely
modified
Forestry
operations
(plantations)
No
Brazil
1
No
Largely
modified
Forestry
operations
(plantations)
No
Uruguay
1
No
Largely
modified
Forestry
operations
(plantations)
No
Tornator -
Finland, Estonia,
Romania
2
No
Moderately
modified
Forestry
operations
No
Private forest
owners: Finland,
Sweden, Norway,
Baltics
No
-
Forestry
operations
Yes
1 Stora Enso has identified a financial dependency on the biodiversity and ecosystems related to the sites it
owns directly or jointly, as the biodiversity and ecosystem condition may impact the value of the assets in
the long-term.
2 Tormator Oyj is a 41%-owned Finnish associate company.
Policies related to biodiversity and ecosystems (E4-2)
The minimum requirement is that all policies and guidelines be reviewed
at least once every two years. Each policy owner shall ensure that the
documents under their responsibility are reviewed and updated within the
defined time frame.
Wood and Fibre Sourcing, and Land Management Policy
Stora Enso’s Wood and Fibre Sourcing, and Land Management Policy
outlines the approach to responsible sourcing of wood and fiber from
sustainably managed forests and tree plantations. The policy addresses
sustainable forest and land management practices, which safeguard the
health and ecological functions of ecosystems and help conserve
biodiversity, soil, and water resources. The policy also addresses the
prevention of negative impacts and potential risks to biodiversity that may
arise from unsustainable forest management and harvesting practices or
levels. The Environmental Guidelines introduced in ESRS E1-2 further
elaborate on the policy objectives. The key contents of the policy include:
• utilising wood in an efficient way to ensure high added value from the
resources;
• promoting sustainable forest and land management practices with
forest owners;
• monitoring the condition of forests and results of management
activities, and using, for example, forest certifications to promote and
verify sustainable forest management;
• utilising traceability systems to ensure that all the wood and fiber used in
own operations originates from legal sources;
• designing and managing tree plantations as part of local land use and
contributing to sustainable livelihoods;
• recognising the unique economic and cultural rights of indigenous
peoples.
In addition, the policy forbids procurement of wood and fiber which:
• has been illegally harvested;
• logged in protected areas or areas currently undergoing official
processes of designation for protection, unless the logging is clearly in
line with national conservation regulations;
• harvested in forests where High Conservation Values are threatened by
logging;
• sourced from areas undergoing conversion from forest or other wooded
ecosystems to plantations or non-forest uses, unless such conversion is
justified on grounds of net social and environmental gain; or
• harvested in violation of traditional rights or civil rights.
The scope of the policy cover the Group's own operations and upstream
value chain, and EVP, Forest division, is accountable for implementation of
the policy. The policy does not specifically relate to material dependencies,
or physical and transition risks or opportunities.
Supplier Code of Conduct
The Supplier Code of Conduct sets the minimum requirements on
suppliers with the obligation to protect the environment, among other
topics. It specifically obliges the supplier to understand the connections
that its business may have on impacts on biodiversity and, as relevant, act
to safeguard biodiversity. The policy addresses the negative impacts and
risks, which may result from unsustainable forest management practices.
The Supplier Code of Conduct is required to be signed as part of the pre-
qualification process. See ESRS E1 for further details on the policy.
Biodiversity and ecosystem protection is included in Stora Enso Wood and
Fibre Sourcing, and Land Management Policy. Stora Enso has not adopted
policies specifically to sustainable sea practices.
Actions and resources related to biodiversity
and ecosystems (E4-3)
Science and technology to model current and future impacts
The following two actions contribute towards the objectives of the Wood
and Fibre Sourcing, and Land Management Policy. The actions relate to the
opportunities enabled by new technology for optimised biodiversity
management and conservation, and enhancing positive biodiversity
impact. The actions support the achievement of the net positive target on
biodiversity as described in ESRS E4-4.
1) Creation of a science-based framework to validate the net positive
impact on biodiversity in the Nordic forests. Leveraging science,
technology and data, the framework will enable forecasting of biodiversity
impacts and thus allows operations to be adapted towards the net
positive target. The backbone of the science-based framework is built on
digital forest data. In early 2024, Stora Enso signed a partnership with the
International Union for Conservation of Nature (IUCN) to gain external
expert insights for further development of the framework. Scope of the
framework encompasses the Group’s own operations and managed
forests in the Nordics (upstream value chain). The framework is being
developed through the collaboration and expected to be finalised within
the coming years.
2) The development of advanced technologies supports the goal of
enabling a more integrated approach to managing biodiversity and wood
production in forest landscapes. Precision forestry programme utilises
Artificial Intelligence to create a highly accurate digital twin of the forest,
integrating multiple data layers into a digital platform. This data can be
used to model forest management actions in a certain area and predict
their potential impact on rare species. The scope of the action covers the
Group’s own and managed forests, and is expected to continue medium
to long term.
Biodiversity and sustainable forestry
Stora Enso strives to actively enhance biodiversity as an integral part of
sustainable forest management. The following three actions contribute to
the Group’s net positive target on biodiversity, and the objectives of the
Wood and Fibre Sourcing, and Land Management Policy.
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1) Biodiversity action programme, implemented in 2022 for the Group’s own
forest in Sweden, aims to employ management measures to enhance
biodiversity throughout the forest’s life cycle. Some aspects of this
programme have also been extended to private suppliers’ forests in the
Nordics. The monitoring of these activities is currently under development,
and so far, primarily demonstrated through a set of science-based
biodiversity indicators to holistically monitor different aspects of
biodiversity (see ESRS E4-5). Additionally, Stora Enso collaborates with
private forest owners in Finland, Sweden, and the Baltics to support them in
biodiversity and forest management, utilising insights also from the
forest owners.
2) In the Northern forests, Stora Enso is dedicated to long-term forest
management that adheres to the principles of sustainable forest
management. In retention forestry (even-aged forestry), the most
common method in the North, thinning occurs in middle-aged forests to
promote growth of vital trees for a healthy forest. Final harvesting involves
clear-felling while retaining biodiversity features such as living trees in
groups and buffer zones, and conserving and producing deadwood. The
forest is regenerated by planting seedlings adapted to the site. The
species and structural diversity of the forests are enhanced through
natural regeneration during the rotation cycle. Some examples of the
action carried out in the Northern forests during 2024 included:
• Restoring wetlands in the Group’s own forest in Sweden, and in Finland in
collaboration with Tornator to improve the conditions for various
species. In the long run, wetlands will turn into carbon sinks. In the
Group’s own forest in Sweden, approximately 20 hectares of wetland
was restored during 2024.
• Restoring sunny slope environments in Finland, an area that is more
exposed to sunlight and consequently creates a unique habitat, in
collaboration with Tornator, to enhance the conditions for species that
thrive in these areas.
• Approximately 39 million tree seedlings planted or delivered for planting
in the Nordics.
3) In 2023, new biodiversity indicators were introduced for Stora Enso’s joint
operations in South America’s plantation areas to demonstrate the link
between biodiversity management actions and their outcomes, ensuring
that purposeful biodiversity measures are implemented with monitorable
results. The implementation is expected to continue in the coming years.
Forest certification and deforestation-free practices
Stora Enso takes continuous actions to respond to the objectives of the
Wood and Fibre Sourcing and Land Management Policy and the Supplier
Code of Conduct on sustainable sourcing of wood and sustainable forest
management practices. Continuous forest regeneration measures are
complemented by the following three actions to address the risk related to
non-compliance in harvesting operations.
1) Stora Enso has implemented forest certifications and third-party
traceability systems to know the origin of the wood and to ensure that it
comes from sustainable sources. These include the Forest Stewardship
Council’s (FSC) Chain of Custody/Controlled Wood scheme, the Chain of
Custody/Due Diligence System of the Programme for the Endorsement of
Forest Certification (PEFC), and the ISO 14001 environmental management
system. The action continues on long-term and encompasses all wood
sourcing operations (own operations and upstream value chain).
It contributes to the target on forest certification coverage described in
ESRS E4-4.
2) Stora Enso does not establish tree plantations in natural forests,
protected areas, or water-sensitive locations, and only uses land with low
biodiversity values, such as former pastureland. The action continues on
long-term and encompasses plantations in South America.
3) In 2024, the Group’s 50% owned joint operation, Montes del Plata in
Uruguay, received the FSC Ecosystem Services recognition (FSC-C016979)
acknowledging the performance of companies that take action on the
restoration and conservation of forest ecosystem services. Veracel, the
50% owned joint operation in Brazil, was the first company in Brazil with
planted forest to receive this recognition in 2020 (FSC-C017612).
For engagement with affected communities, see ESRS S3.
Resources to manage biodiversity and forest management
Forests are a locally available strategic resource. At the end of 2024, Stora
Enso’s forest assets, including leased land, were valued at EUR 8.9 billion,
spanning 2.1 million hectares globally. Stora Enso meets 36% of its wood
raw material needs from its own sources and long-term agreements. The
Group’s forests assets contribute to carbon sequestration (described in
ESRS E1-7), biodiversity conservation, and the mitigation of financial risks
related to wood dependency and availability. For more information on
Stora Enso’s forest assets and related valuation, see Financial Statements,
note 4.2 Forest Assets.
In addition to owning forests, Stora Enso’s current resources (and those
anticipated for the future) to manage biodiversity and forest
management include operative costs related to personnel in the
biodiversity programmes and forest management, operating tree
nurseries, forest certification fees, and the development of precision
forestry.
During the year, Stora Enso supported restoration activities related to an
environmental incident in Hukkajoki, Finland, by approximately 150,000
euros. The incident is being investigated as a serious nature
conservation crime and further described in ESRS E4-4. Additionally,
following the incident, Stora Enso has entered into negotiations with
Metsähallitus Parks & Wildlife Finland concerning long-term cooperation
aimed at protecting and restoring the habitat of freshwater mussels in
river water systems in Finland.
In 2024, the Group’s Forest management and Conservation forestry -
related EU taxonomy-eligible opex was EUR 25 million and capex EUR 9
million. Description of taxonomy-eligible activities is provided in the section
on EU Taxonomy.
Stora Enso has not used biodiversity offsets in its action plans.
Targets related to biodiversity and ecosystems (E4-4)
Biodiversity
Stora Enso is committed to achieving a net-positive impact on biodiversity
in its own forests and plantations by 2050 through active biodiversity
management. Biodiversity impact indicators measure how well
biodiversity is preserved in harvesting, according to internal standards and
requirements. Stora Enso’s current target is to reach 90% performance for
each indicator, meaning that at least 90% of surveyed sites meet the best
practices for biodiversity as defined in the Group’s biodiversity
requirements. The target was set in 2022, with a baseline value 84%. The
target is to reach 100% performance for each indicator by 2030. At the end
of 2024, the total compliance rate was 89%, progressing towards the target
set for 2030.
The target relates to identified impacts in relation to the Group's own
operations and upstream value chain, and is aligned with Stora Enso’s
Wood and Fibre Sourcing, and Land Management Policy. When considering
the mitigation hierarchy, the target can be allocated to all layers:
avoidance, minimisation and restoration of impacts. The target was set
before the Kunming-Montreal Global Biodiversity Framework and EU
biodiversity strategy for 2030 were established, but is aligned with
their targets.
Ecological thresholds and allocations were not considered when setting
the target. Whilst the target is set in line with scientific research, it is not
based on conclusive scientific evidence. External stakeholders were not
included in the target setting. Biodiversity offsets were not used in the
target setting.
Accounting principles
Biodiversity indicators measure the compliance ratios of inspected
harvesting sites against Stora Enso’s specific biodiversity indicators for
Sweden, Finland, and the Baltics. The consolidated ratios across the three
regions are weighted averages using the harvested volumes in each
region as a weight.
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Compliance rate of biodiversity impact indicators
Unit
2024
High stumps creation
%
82%
Ground deadwoods preservation
%
83%
Soil and water protection
%
94%
Prioritised habitat preservation
%
96%
Tree retention
%
85%
Buffer zone preservation
%
93%
Total
%
89%
Forest certification
Biodiversity is an integral part of forest certifications, including protection
of valuable ecosystems. To promote sustainable forest management
practices and related positive impacts, Stora Enso has set a continuous
target to maintain a forest certification coverage level of at least 96% for
the Group’s own and leased forest lands. The target was set in 2013, with
a baseline value 93%. The forest certification coverage has remained
stable and amounted to 99% in 2024.
The geographical scope of the target includes Stora Enso’s owned lands in
Sweden, owned and leased lands in China, and owned and leased lands of
its joint operations in Uruguay and Brazil. The target relates to identified
impacts in relation to its own and upstream value chain, and is aligned
with Stora Enso’s Wood and Fibre Sourcing, and Land Management Policy.
When considering mitigation hierarchy, the target can be allocated to
minimisation and restoration of impacts. Ecological thresholds and
allocations were not considered when setting the target, and it is not
based on conclusive scientific evidence. The basis for reporting (FSC
certificates) is verified by FSC, but the consolidated metric is not validated
by an external body other than the assurance provider. External
stakeholders were not included in the target setting. Biodiversity offsets
were not used in the target setting.
Accounting principles
The forest certification scheme coverage is calculated based on the
proportion of land in wood production and harvesting owned or leased by
Stora Enso that is covered by forest certification schemes. Reporting on
total land area and its forest certification coverage is aligned with
financial reporting on forests assets.
Target related to biodiversity and ecosystems
Unit
2024
Forest certification scheme coverage
%
99%
Sustainable forestry
Stora Enso has a target on zero environmental non-compliances, as
described in ESRS E2-3. Stora Enso defines a significant non-compliance
related to forestry operations as a legal environmental non-compliance or
permit violation, or a breach that has irreversible environmental or social
impact. Target was not met for 2024, as there were 12 non-compliance
events related to sustainable forestry or biodiversity.
Ecological thresholds and allocations were not considered when setting
the target, and it is not based on conclusive scientific evidence. External
stakeholders were not included in the target setting. Biodiversity offsets
were not used in the target setting.
Biodiversity or forestry related significant non-compliance events
Non-compliance events
2024
Number of significant non-compliance events related
to sustainable forestry or biodiversity
12
Location
Description of the event
Corrective and preventive measures
Forest,
Finland
River crossing without correct
water protective measures
caused significant damage to
local population of freshwater
pearl mussels.
Immediate restoration of the river
crossing site was initiated. This incident
led to the development of a
comprehensive programme to enhance
training for staff, contractors, and
subcontractors, as well as improving the
planning and implementation of forestry
and water conservation measures near
sensitive habitats. The costs related to the
incident are described in ESRS E4-3.
Forest,
Finland
Crossing of a small creek
without correct water protective
measures linked to small-scale
disturbance to freshwater pearl
mussels.
Instructions and procedures related to
water crossings updated and training
provided.
Forest,
Finland
Harvesting too close to a water
spring.
Updated procedures for communication
between planner and harvesting operator
to verify work instructions.
Forest,
Finland
Wood stored on site of hybrid
pasque flower, a rare spring
flower.
An IT system limitation identified and
removed.
Forest,
Finland
An area of 0.06 ha of private
conservation area was logged.
Updated procedures to ensure that the
most recent map information will be
included in harvesting instruction.
Forest,
Finland
Harvesting without forest use
declaration.
IT system error identified and corrected.
Forest,
Sweden
Road pipe connected to a
stream in the Natura2000 area
changed without necessary
consultation with County
Administration Board.
New routines for Natura2000 areas and
connected streams.
Forest,
Sweden
Harvesting too close to
individual findings of the
orchid Goodyera repens.
Review of instructions to ensure that
planning of sites in areas with known
findings is conducted only during the
flowering period to facilitate sightings.
Forest,
Sweden
Groundwork preparing for a
quarry was done outside the
permitted time-period, risking
disturbance to a nesting
golden eagle.
New routines for establishing quarries
were created.
Forest,
Sweden
Quarry enlarged 24 m
2 outside
permitted area.
Mark all quarries with legal permits in the
field.
Forest,
Sweden
Harvesting 1.7 ha without
harvesting notification.
New routines established for harvesting
sites with multiple measures.
Forest,
Sweden
Harvesting 1.3 ha without
harvesting notification.
New routines established for harvesting
sites with multiple measures.
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Assured 106
Impact metrics related to biodiversity
and ecosystems change (E4-5)
Stora Enso has selected three types of indicators to measure biodiversity
based on their value for forest biodiversity according to science:
• Biodiversity impact indicators monitor harvesting operations in the
Northern forests as reported in ESRS E4-4.
• Long-term biodiversity indicators follow developments in response to
the biodiversity action programme in the Group’s own forest in Sweden.
• Biodiversity indicators for tree plantations monitor developments in
South American plantations, where biodiversity is protected and
restored in dedicated set-aside areas. These metrics are not disclosed
as part of Stora Enso’s Sustainability Statement due to the lack of direct
operational control. Stora Enso exercises its ownership share to
negotiate on the required actions to advance positive impacts.
All these indicators have been used internally for years, but recently Stora
Enso has started to report them externally on its website to enhance
transparency.
In 2024, some of Stora Enso’s sites negatively impacted biodiversity-
sensitive areas. The descriptions and impacted hectares for incidents are
disclosed in ESRS E4-4.
Key forest-related figures
Accounting principles
As wood is Stora Enso’s most important raw material, information on
company-owned forest resources (type, standing stock, growth,
harvesting, and certification) is essential for contextualising the
biodiversity impacts of the operations. Aligned with the Financial
Statements, the figures include the wood procurement of the joint
operations according to the ownership share (50%).
Wood procurement includes total amounts of wood (roundwood and
chips) procured for delivery to Stora Enso’s units (million m
3, solid under
bark). The reporting on third-party certified wood as a percentage of total
supply is based on actual deliveries to the mills. Internal deliveries between
the mills have been eliminated.
Metrics related to forest
Unit
2024
Total amount of wood delivered to Stora Enso's sites
million m
3
29.0
% of third-party certified wood of total wood supply
%
85%
% of wood from own sources or long-term supply
agreements
%
36%
% of wood from managed semi-natural forests in
Europe
%
83%
% of wood from tree plantations
%
17%
The estimated annual forest growth and total standing stock are counted
for productive forest areas. Million m
3 fo refers to million forest cubic
meters. The annual forest growth figures are based on estimates, whereas
the annual harvesting is based on actual data. Total standing stock and
the related accounting principles are disclosed in the Financial
Statements, note 4.2 Forest assets, section ‘Valuation and standing stock of
forest assets’.
Annual forest growth and harvesting and total
standing stock
Unit
2024
Estimated annual forest growth
million m
3 fo
13.9
Stora Enso's own forests, Sweden
5.9
Tornator (41%)
1.5
Guangxi
1.2
Montes del Plata (50%)
2.9
Veracel (50%)
2.3
Annual harvesting
million m
3 fo
10.5
Stora Enso's own forests, Sweden
4.1
Tornator (41%)
1.4
Guangxi
1.1
Montes del Plata (50%)
2.4
Veracel (50%)
1.6
Total standing stock
million m
3 fo
214.6
Stora Enso's own forests, Sweden
153.7
Tornator (41%)
33.8
Guangxi
4.2
Montes del Plata (50%)
16.0
Veracel (50%)
6.8
Forests, plantations and lands as of 31 December 2024
Accounting principles
To provide information on the extent of ecosystems, Stora Enso has
prepared an entity-specific disclosure on the hectares of the material
forest lands. Figures for land areas, and their forest certification coverage,
include Stora Enso’s own and leased forest assets. The figures measure
area coverage, rather than condition of ecosystems. For more information,
see Financial Statements, note 4.2 Forest assets.
Aligned with the Financial Statements, the joint operations and the equity-
accounted investment in Tornator, Finland, are consolidated based on
Stora Enso’s ownership stakes in these companies.
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Assured 107
Unit
Area
1
Certification coverage
Details of local landscapes
and protected areas
Owned lands
Swedish forest holdings
1,410,000 ha, of which
1,150,000 productive forest
land
PEFC and FSC for 1,410,000
ha
Protected areas total to 451,000 ha and consist of
productive or non-productive land, which has been
set-aside from wood production and infrastructure
development either voluntarily or by legal
requirements.
Montes del Plata
plantations and lands,
Uruguay (50% owned joint
operation with Arauco)
223,000 ha, of which
130,000 ha planted for pulp
production
PEFC and FSC for 190,000
ha; FSC 32,000 ha
Protected areas total to 90,000 ha and consist of
remnants of native ecosystems, such as grasslands
and riparian forests, within the company’s lands.
Local landscape consists mainly of pasturelands
and agricultural fields.
Veracel plantations and
lands, Bahia, Brazil (50%
owned joint operation with
Suzano)
207,000 ha, of which 82,000
ha planted for pulp
production
CERFLOR (PEFC) for 188,000
ha; FSC for 188,000 ha
Protected areas total to 99,000 ha, including 6,000 ha
Private Natural Heritage Reserve, and mostly consist
of native forest remnants at different stages of
regeneration. Local landscape consists of
pasturelands and agricultural fields cleared from
Atlantic rainforest between the 1950s and 1980s.
Tornator (41%-owned associated company)
Finland
700,000 ha, of which
626,000 productive forest
land
PEFC for 700,000 ha and
FSC for 700,000 ha
Protected areas total to 66,000 ha and consist of
productive and non-productive land, which has
been set-aside from harvesting either voluntarily or
by legal requirements.
Estonia
65,000 ha, of which 59,000
productive forest land
PEFC for 65,000 ha and FSC
for 65,000 ha
Protected areas total to 2,400 ha.
Romania
12,000 ha, of which 12,000
productive forest land
PEFC for 12,000 ha and FSC
for 12,000 ha
Protected areas total to 160 ha.
Leased lands
Plantations and lands,
Guangxi, China
62,000 ha, of which 54,000
ha planted
Chinese Forest
Certification Council
certificate (PEFC) for 62,000
ha; FSC for 62,000 ha
Protected areas total to 7,600 ha and consist
of buffer zones and other important areas for
protection of watersheds and native flora and fauna.
No pristine ecosystems are found in the leased lands.
Local mosaic landscape includes agricultural crop
fields, forest plantations, and settlements.
Montes del Plata
85,000 ha, of which 74,000
ha planted
PEFC for 83,000 ha and FSC
for 83,000 ha
Protected areas total 11,000 ha and consist
of remnants of native ecosystems, such as
grasslands and riparian forests. Local landscape
consists mainly of pasturelands and agricultural
fields. In most of the leased areas, protected areas
are excluded from lease agreements.
Veracel
27,000 ha, of which 12,000
ha planted
CERFLOR (PEFC) for 14,000
ha; FSC for 14,000 ha
Protected areas total to 12,000 ha and consist of
native forest remnants at different stages
of regeneration.
1 Reported as total areas of the companies. Stora Enso’s share corresponds to the ownership share. Includes operations where Stora Enso’s shareholding is significant and
the size of the area exceeds 1,000 hectares.
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Assured 108
ESRS E5 Resource use and circular economy
Material impacts, risks and opportunities (ESRS 2 SBM-3)
Policies related to resource use
and circular economy (E5-1)
The minimum requirement is that all policies and guidelines be reviewed
at least once every two years. Each policy owner shall ensure that the
documents under their responsibility are reviewed and updated within
the defined time frame.
Circularity Guidelines
The Circularity Guidelines outline the Group’s commitment to contributing
to a circular economy and addressing the opportunities and positive
impacts outlined in the table ‘Material impacts, risks and opportunities’.
The core principles of the guidelines encompass design for renewable and
recycled materials, reducing the use of virgin material, a commitment to
using fewer resources to produce a product, and designing out waste.
The design for circular business models encompasses circular sourcing,
which involves procuring products and services that align with circular
economy principles. The guidelines cover the Group’s full materials value
chain and all geographies. The accountability for the implementation of
the guidelines lies with the EVP, Head of each division.
Environmental Guidelines
The Environmental Guidelines describe the approach to environmental
management (see ESRS E1-2). Related to circularity and resource use, the
guidelines outline the commitment to use renewable forest-based
resources – both virgin and recycled fiber – to promote circularity. This
entails using of raw materials efficiently, reducing process residuals,
reusing fiber, creating business opportunities from process residuals and
by-products, and reducing waste to landfills to close to zero. Additionally,
the guidelines emphasise seeking partnerships with stakeholders and
customers to introduce new renewable products to the market. Stora Enso
is committed to responsible sourcing to protect ecosystems, preserve
biodiversity, and safeguard soil and water resources. The Group supports
sustainable forest management and requires its external pulp suppliers to
adhere to similar principles in wood and fiber procurement.
The guidelines address the management of all the material impacts, risks,
and opportunities listed in the table ‘Material impacts, risks and
opportunities’.
Actions and resources related to
resource use and circular economy (E5-2)
The actions described below support the objectives of both
the Environmental Guidelines and Circularity Guidelines.
Circular products and solutions
Stora Enso creates positive impacts and identifies opportunities in the
circular economy through its wood-based products. Negative impacts are
associated with the amount of outflows which are managed through the
actions described below to ensure recyclability.
1) Designing for recyclability is integrated in product development to
ensure that the Group’s materials are widely accepted in recycling
streams and capable of being transformed into new products. This is a
continuous action to meet the Group’s target of 100% technically
recyclable products by 2030.
2) Expansion of capacity within consumer packaging with a EUR 1 billion
investment in Oulu, Finland, to convert the idle paper machine into a high-
volume consumer board production line. The new line, set to start
operations in the first half of 2025, utilises new technologies that enable
lighter packaging materials and greater resource efficiency. The mill will
leverage by-products from forest management and wood processing for
the manufacturing of products.
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Assured 109
Description
Impact, risk,
or opportunity
Time horizon
Location in
the value chain
Related sub-topic or
sub-sub-topic
Contribution to circular economy through products and solutions that enable
customers to respond to the growing consumer demand for sustainable products.
Actual positive impact
Short, medium, and
long term
Own operations,
upstream and
downstream value
chain
Resource outflows
related to products
and services
Significant amounts of resource outflows generated through products. Most of Stora
Enso’s products are technically recyclable, but actual recyclability and circular
economy depend on system level changes.
Actual negative
impact
Short, medium, and
long term
Downstream value
chain
Resource outflows
related to products
and services
While most of the residuals from industrial operations are utilised in other production
processes, waste is still generated and landfilled.
Actual negative
impact
Short, medium and
long term
Own operations, joint
operations
Waste
Industrial operations require significant volumes of raw materials. While most of the
total process material usage is based on renewable materials, sourcing these raw
materials has an impact on people and the environment (for example, a negative
impact on biodiversity; see ESRS E4).
Actual negative
impact
Short, medium, and
long term
Own operations, joint
operations, upstream
value chain
Resources inflows,
including resource use
Dependency on upstream value chain for raw materials. The ongoing nature crisis
may cause supply chain disruptions. Increasing regulation may impact the raw
material costs. Increasing input costs or availability of materials, goods and services
may adversely affect Stora Enso’s profitability. Climate change related impacts are
described in ESRS E1.
Risk
Medium and long term
Own operations, joint
operations, upstream
value chain
Resources inflows,
including resource use
Stora Enso’s strategy is strongly aligned with circular economy principles, focusing on
generating revenue through renewable products. The Group’s wood-based products
serve as carbon capture and can be reused, recycled, or converted into energy at the
end of their lifecycle. Furthermore, Stora Enso has made a significant investment in
expanding its board production capacity in Oulu, Finland, and actively supports
recycling through strategic partnerships and investments in recycling infrastructure.
The Group also sees substantial opportunities in transforming process residuals into
new products through innovation and research, thereby generating new revenue
streams and reducing waste.
Opportunity
Short, medium, and
long term
Own operations,
upstream and
downstream value
chain
Waste; Resource
outflows
Regulatory changes can also present significant opportunities by driving market
growth for sustainable products and creating competitive advantage through
resource efficiency and renewability.
Opportunity
Short, medium, and
long term
Own operations,
upstream and
downstream value
chain
Waste; Resource
outflows
3) Further development of Stora Enso’s building concepts using mass
timber products, which enable the design of mixed-use, flexible, and
adaptable buildings. An example of this is the new Stora Enso head office
in Helsinki, Finland, completed in 2024. The building features lightweight,
prefabricated mass timber elements, designed for adaptability to
future needs.
The risk associated with the Group’s products are linked to climate-related
supply chain disruptions and changes in regulatory requirements.
Regulatory changes can also bring opportunities by driving market growth
for sustainable products and create competitive advantages through
resource efficiency and renewability. To address these risks and
opportunities, Stora Enso actively monitors regulatory developments and
participates in trade and industry associations dedicated to advancing
recycling practices in society.
Value chain cooperation
Stora Enso has identified opportunities to enhance the collection, sorting,
and recycling infrastructure for recyclable products through partnerships
and collective initiatives. The long-term action consists of various
collaborations and initiatives, such as:
• Improvement of collection, sorting, and recycling of post-consumer
paper and packaging materials in Europe. The production site in
Ostrołęka, Poland, features a beverage carton recycling facility that
detaches fibers from polymers and aluminium. These fibers are then
recycled into cartonboard materials, contributing to material circularity
by transforming used paper-based packaging into new paper-based
materials. The non-fiber fraction of the cartons, polyAI, is recovered and
recycled in a dedicated facility by a Swedish packaging company Tetra
Pak.
• Continuous active participation in the cross-industry alliance
4Evergreen, which develops tools and guidelines for the packaging
industry to improve the recyclability of fiber-based packaging.
• Involvement in the four-year European innovation project, Woodcircles,
which aims to enhance the circular utilisation of wood in construction.
The collaboration focuses on reducing waste and resource
consumption, with Stora Enso responsible for developing a construction
product made from recycled wood material.
Resource use
To prevent and minimise actual negative impacts on environment caused
by resource-intensive production processes, Stora Enso continuously focuses
on enhancing resource efficiency and reducing waste. The actions to
minimise waste are closely connected with the opportunities to transform
side streams into new products, aligned with the target for the utilisation of
process residuals (see ESRS E5-3). Key actions during the reporting year:
1) Utilisation of secondary raw material: in Poland, Stora Enso owns and
manages a network of fourteen depots, where Paper for Recycling (PfR) is
collected and baled for transportation to Stora Enso’s Ostrołeka site in
Poland and to external PfR customers.
2) Continuous development to reduce polymer content in barrier coatings
to minimise environmental impacts, with most recent new product
launched in 2023. In 2024, Stora Enso also continued its engagement in the
Recycled Materials Challenge (ReMatCh) programme, collaborating with
value chain partners on how to better apply the cascading principle to
polymers, particularly those found in barrier layers.
3) Collaboration in a new five-year research programme, ‘Emission Free
Pulping’, led by VTT Technical Research Centre of Finland and the Swedish
research institute RISE. The programme aims to significantly reduce
biomass burning and increase the product yield from wood, from
approximately 50% to around 70%.
4) Partnership with Altris, a Swedish developer of sodium-ion batteries, to
drive the adaptation of Stora Enso’s lignin-based product in Altris’ sodium-
ion battery cells, supporting the establishment of a European battery
value chain.
5) Long-term agreement with Södra, Sweden’s largest forest owner
association, under which Södra will supply Stora Enso with kraft lignin from
Södra’s Mönsterås site in Sweden. The facility is set to begin operations in 2027.
6) Collaboration with Stora Enso’s Forest division in Finland and the mills in
Imatra, Heinola, Enocell, and Oulu with the overall aim of creating a new
forest ash fertiliser product using ash from the mills. The first steps were
taken in 2024, and the work towards achieving this goal continues in 2025.
Efforts to enhance energy efficiency are described in ESRS E1, and water
efficiency actions in ESRS E3.
To address the risk related to dependency on upstream value chain for
raw materials, Stora Enso entered into an agreement to acquire 100% of the
Finnish sawmill company Junnikkala Oy. The acquisition aims to secure a
cost-efficient wood supply for Stora Enso’s packaging board site in Oulu,
Finland, and to support Stora Enso’s wood products business with new
production assets. The transaction is subject to customary closing
conditions including regulatory approvals.
Resources related to resource use and circular economy
Stora Enso’s current and future resources to manage opportunities under
circular economy consist of capital expenditures related to product
portfolio optimisation, such as the Oulu site conversion project in Finland
(Action 2. described under ‘Circular products and solutions’). Further details
on investments can be found in the Financial Statements, note 4.1
Intangible assets, property, plant an equipment and right-of-use assets.
In 2024, Stora Enso signed a EUR 435 million bilateral loan with the European
Investment Bank to support the financing of the Oulu investment. In
addition, Stora Enso has two outstanding green bonds issued in 2023, with
part of the proceeds being used to support the investment in Oulu. Further
details on interest-bearing assets and liabilities can be found in the
Financial Statements, note 5.3 Interest bearing assets and liabilities.
Targets related to resource use
and circular economy (E5-3)
Circular economy
To address the opportunity related to the Group’s resource outflows
associated with its products and services, Stora Enso has set a target to
increase circular product design, aiming for 100% technical recyclability of
its products by 2030. The target was established in 2021, with a baseline
value 93%. By the end of 2024, 94% of the Group’s products were technically
recyclable.
The target aligns with one of the core principles of the Group’s Circularity
Guidelines, ‘Design for recyclability’, and relates to the EU’s waste hierarchy
category ‘Recycling’. This target is not mandated by regulation and is not
based on conclusive scientific evidence. External stakeholders were not
involved in setting the target.
Accounting principles
Product circularity is calculated based on the technical recyclability of
products and their production volumes consolidated as tonnes. The
figures are based on actual weight or estimates based on weight
conversion. Technical recyclability is defined by international standards
and tests when available, such as those by CEPI (Confederation of
European Paper Industries) and PTS (Papiertechnische Stiftung). In the
absence of these, Stora Enso’s own tests or estimates that prove
recyclability are used.
The reporting scope includes Stora Enso’s packaging, pulp, paper, and solid
wood products, as well as biochemical by-products.
Target related to circular economy
Unit
2024
Technically recyclable products
%
94%
Resource efficiency
To address the negative impact related to residuals and waste generated
in Stora Enso’s production processes, the Group has set a waste
management target related to waste diverted from disposal, specifically
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the process residuals utilisation rate. The continuous target is to maintain
the utilisation rate above 98%. The target was set in 2017, with a baseline
value 98%. By the end of 2024, the utilisation rate was 99%, and above the
target level.
The target aligns with the Environmental Guidelines and aims to minimise
waste, relating to the EU’s waste hierarchy category ‘Other recovery’ (for
example, energy recovery). This target is not mandated by regulation and
is not based on conclusive scientific evidence. External stakeholders were
not involved in setting the target.
Accounting principles
The figures cover process-related residuals and waste from all production
units, excluding joint operations. Residuals and waste not related to
production processes are reported separately. The figures are
consolidated as dry tonnes. The figures are based on actual weight or
estimates.
The target covers process waste and residuals, such as ash, sludge, chips,
and wood waste from production units. Utilisation includes energy
generation, landscaping, landfill construction, road construction, pulp
manufacturing, brick and cement manufacturing, and agricultural use, as
well as new approaches and products. The scope excludes sawdust and
wood cutting savings for internal pellets production. Tall oil, turpentine,
lignin, sodium biosulphite, biocomposite, and soap are considered
products and therefore excluded.
Target related to resource use
Unit
2024
Process residuals utilisation rate
%
99%
Resource inflows (E5-4)
Stora Enso’s operations require significant volumes of raw materials,
creating a dependency on the upstream value chain. While most of the
total process material use is based on renewable materials, sourcing
these raw materials has impacts the environment and people. The
ongoing nature crisis may cause supply chain disruptions, and increasing
regulation may affect raw material costs. Climate change-related
impacts are described in ESRS E1.
Stora Enso’s critical raw material is wood. The Group’s fiber-based
products are derived from renewable resources, primarily wood fibers
from sustainably managed forests. In 2024, 93% of the total resource
inflows were based on biological materials, including wood, purchased
pulp, paper and board, and starch. Many of the products are FSC or PEFC
certified, or receive other verification for responsible chain-of-custody and
due diligence. The proportion of third-party certified wood in Stora Enso’s
total wood supply was 85%, resulting in a total of 77% sustainably sourced
biological materials used in 2024. The Group applies the principle of
cascading use of wood, ensuring that all parts of harvested trees, forestry
residuals, and industrial side streams are used in the most economically
and environmentally efficient way before being used as energy.
In 2024, Stora Enso utilised 1.3 million tonnes of Paper for Recycling (PfR) in
its products, such as recycled newsprint and containerboard. By actively
collecting, sorting, and recycling materials, Stora Enso helps to ensure that
the value of renewable materials is prioritised, with recycled content
directed toward the highest-value applications.
Chemicals, pigments, and fillers comprise approximately 4% of the Group’s
total material use. Chemicals are assessed before purchase and use,
ensuring requirements are adequately addressed for legal compliance,
health and safety, environmental protection, product safety, eco-labels,
and circularity. Stora Enso works to substitute dangerous chemicals and
engages with suppliers to find alternative products.
Plastics used for products and their packaging include fossil-based virgin
plastics 47,900 tonnes, bio-based virgin plastics 4,600 tonnes, and recycled
plastics 1,200 tonnes.
The majority of Stora Enso’s product portfolio comprises raw materials and
packaging solutions designed for customers’ products. Therefore, Stora
Enso’s own packaging for its products mainly consists of wraps and pellets.
The share of packaging out of the total material inflow is estimated to be 2%.
Stora Enso is dependent on water for its production processes, as
disclosed in ESRS E3.
Accounting principles
Metrics related to resource inflows cover biological and technical process
raw materials used for products and their packaging as delivered to Stora
Enso’s production units. Aligned with the Financial Statements, the figures
include the joint operations according to ownership share (50%).
The figures are based on actual weight measurement or delivered values.
Wood is converted from delivered cubic meters to fresh tonnes (including
water content) by using an average conversion factor for tree species
processed by Stora Enso. The data is reported by each mill to the Group’s
environmental reporting system.
Metrics related to resource inflows
Unit
2024
Wood
thousand tonnes
31,743
Purchased pulp, paper and board
thousand tonnes
620
Starch
thousand tonnes
114
Total weight of biological materials
thousand tonnes
32,477
Chemicals
thousand tonnes
819
Pigments and fillers
thousand tonnes
417
Plastics
thousand tonnes
54
Recycled board and paper
thousand tonnes
1,329
Total weight of technical materials
thousand tonnes
2,618
Total weight of materials
thousand tonnes
35,095
Sustainably sourced biological materials used to
manufacture the products
%
77%
Secondary reused or recycled materials
%
4%
Secondary reused or recycled materials
thousand tonnes
1,330
Resource outflows (E5-5)
Products and materials
Stora Enso contributes to the circular economy through its products and
solutions that enable customers to respond to the growing consumer
demand on sustainable products. Through an in-depth customer
understanding and close relationships with its customers, Stora Enso
designs products to be functional and valuable throughout their lifecycle.
The Group’s circular guidelines are disclosed in ESRS E5-1 and actions
regarding circular products and solutions are detailed in ESRS E5-2. The
technical recyclability of Stora Enso’s products is disclosed in E5-3. Since
Stora Enso is mainly a producer of materials rather than products, the
expected product durability and repairability are not relevant to report for
the Group.
Stora Enso has an opportunity to contribute to society with renewable raw
materials and solutions: wood-based products serve as alternatives to
fossil-based materials, and can be reused, recycled, or used for energy at
the end of their lifecycle. The Group also provides recycling solutions and
services through its use of recycled materials (packaging and paper), and
in its partnerships and investments in recycling infrastructure.
The key products and materials from production sites consist of
packaging, pulp, paper, and solid wood products as well as biochemical
by-products. In 2024, approximately 92% of the materials used in products
and their packaging were renewable, including wood, recycled board and
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paper, and starch. The majority of Stora Enso’s products are either raw
materials or packaging designed for customers’ products. Therefore, Stora
Enso’s own packaging for its products mainly consist of wrappings and
pellets. The share of packaging in the total materials and products put on
the market is estimated to be 2%.
Accounting principles
The rate of recyclable content in products are calculated according to
principles disclosed in ESRS E5-3, based on the technical recyclability of
products and their production volumes consolidated as tonnes. The
figures are based on actual weight or estimates based on weight
conversion. In addition, an estimate of the weight of the packaging and its
recyclable content is included. When calculating the rate, the numerator
used is the weight of the recyclable content in the products and their
packaging, while the denominator is the total weight of the products and
their packaging. In order to avoid double-counting, internal deliveries are
eliminated from the figures.
Metrics related to resource outflows
Unit
2024
Rate of recyclable content in products and products
packaging
%
92%
Waste
In 2024, Stora Enso's total amount of waste generated was 1,365 thousand
tonnes, out of which 93% was diverted from disposal. The majority of the
generated waste constituted of bark and mixed sludge. Stora Enso’s sites
generate and distribute energy to local district heating systems and
industrial partners, largely based on the incineration of harvesting and
production process residuals. For more information, see ESRS E1-5.
Accounting principles
Stora Enso’s waste reporting builds upon relevant EU legislative
frameworks and policies including the EU Circular Economy Action Plan,
Directive 2008/98/EC of the European Parliament and of the Council
(Waste Framework Directive) and the EU industrial strategy. For forest
industry, the relevant waste streams include ash, sludge, chips, and wood
waste from production units.
The figures include waste from all production units. In addition, aligned
with the Financial Statements, the figures include the Group’s joint
operations according to ownership share (50%). The waste generated at
offices are included based on estimates.
Diversion from disposal includes energy generation, landscaping, landfill
construction, road construction, pulp manufacturing, brick and cement
manufacturing, and agricultural use.
To avoid double-counting, the scope excludes sawdust and wood cutting
savings for internal pellets production. Materials with official by-product
status are excluded from the reported waste, and include methanol, bark,
ash, tall oil, turpentine, sodium biosulphite, and soap.
The waste figures are consolidated as dry tonnes, and the figures are based
on actual weight measurement. The data is reported by each mill to the
Group’s environmental reporting system.
Metrics related to resource outflows
Unit
2024
Total amount of waste generated
thousand tonnes
1,365
Total amount of waste diverted from disposal
thousand tonnes
1,273
Non-hazardous waste
thousand tonnes
1,249
Preparation for reuse
thousand tonnes
42
Recycling
thousand tonnes
219
Other recovery operations
thousand tonnes
988
Hazardous waste (incl. radioactive)
thousand tonnes
24
Preparation for reuse
thousand tonnes
22
Recycling
thousand tonnes
0
Other recovery operations
thousand tonnes
1
Total amount of waste directed to disposal
thousand tonnes
92
Non-hazardous waste
thousand tonnes
47
Incineration
thousand tonnes
1
Landfill
thousand tonnes
40
Other disposal operations
thousand tonnes
6
Hazardous waste (incl. radioactive)
thousand tonnes
45
Incineration
thousand tonnes
2
Landfill
thousand tonnes
41
Other disposal operations
thousand tonnes
1
Total amount of non-recycled waste
thousand tonnes
1,145
Percentage of non-recycled waste
%
84%
Total amount of hazardous waste
thousand tonnes
69
Total amount of radioactive waste
thousand tonnes
0
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Social information
In this section
S1 Own workforce
113
S2 Workers in the value chain
119
S3 Affected communities
121
ESRS S1 Own workforce
Material impacts, risks and opportunities (ESRS 2 SBM-3)
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Description
Impact, risk, or opportunity
Time horizon
Location in
the value chain
Related sub-topic or
sub-sub-topic
Stora Enso offers employment opportunities for approximately 19,000
employees.
Actual positive impact
Short, medium, and long
term
Own operations, joint
operations
Secure employment
Active promotion of work-related rights, such as freedom of association,
collective bargaining agreements, work councils, and trade unions.
Actual positive impact
Short, medium, and long
term
Own operations
Social dialogue; Freedom
of association
Promotion of gender diversity and equal wage in a male dominant industry.
Actual positive impact
Short term
Own operations
Diversity; Gender equality
and equal pay for work of
equal value
Training and development opportunities for employees.
Actual positive impact
Short, medium, and long
term
Own operations
Training and skills
development
Stora Enso pays adequate wages to its employees. The Group adheres to
minimum wage regulations and pays at par or above the legal
requirements.
Actual positive impact
Short, medium and long
term
Own operations
Adequate wages
Despite preventive safety measures, safety incidents still occur, particularly
at the production sites. Some sites have a higher risk level due to specific
equipment and labour-intensive processes.
Actual negative impact
Short, medium, and long
term
Own operations, joint
operations
Health and safety
Profit improvement programme launched in February 2024, resulting in
redundancies across operations.
Actual negative impact
Short term
Own operations
Secure employment
Discrimination, bullying, or harassment might occur despite zero tolerance.
Potential negative impact
Short, medium, and long
term
Own operations
Measures against violence
and harassment in the
workplace
Stora Enso relies on talented individuals to implement its strategy and
achieve commercial success. Attracting and retaining qualified personnel
may be challenging due to intense competition for top-tier talent. The loss
of key employees, the inability to attract new or adequately trained
employees, or a delay in hiring key personnel could seriously harm Stora
Enso’s business and impede reaching the Group’s strategic objectives.
Risk
Short, medium, and long
term
Own operations
Secure employment
Serious or fatal injuries to employees, contractors, or third parties might
occur despite active efforts to identify, mitigate, and manage safety-related
risks. Impacts, in addition to physical injury, health effects and
environmental damage, could include liability to employees or third parties,
damage to reputation, or an inability to attract and retain skilled employees.
Government authorities could additionally enforce the closure of Stora
Enso’s operations on a temporary basis.
Risk
Short, medium, and long
term
Own operations, joint
operations
Health and safety
S1 disclosure requirement related to ESRS 2 SBM-3
Stora Enso’s actual and potential impacts, risks, and opportunities originate
from the Group’s business model and strategy. The identified positive
impacts are a result of a proactive approach to people development,
which helps in retaining skilled employees. The Group recognises the
importance of having a talented workforce, and through active actions, it
aims to retain skilled employees and top-tier talents who are crucial for
implementing the Group’s business model and strategy, and achieving
commercial success. The negative impacts related to restructuring are a
direct result of the Group’s 2024 profit improvement programme,
impacting nearly all of Stora Enso's operations.
The disclosure on ESRS S1 covers all individuals in Stora Enso's own
workforce who could be materially impacted by the Group. This includes
those employed directly by the Stora Enso, as well as safety of contractors
working at the Group’s premises. Through its operations, Stora Enso directly
impacts approximately 19,000 employees. In addition to its own employees,
the Group also works with workers classified as non-employees by ESRS, as
there are often contractor employees working at the production sites. The
annual maintenance of mills leads to a temporary increase in the number
of contractor workers. Furthermore, Stora Enso relies on contractors for the
De Jong units in the Netherlands (Business Unit Western Europe), as well as
its forestry operations and packaging units in China.
Stora Enso acknowledges that employees at its production sites have a
higher likelihood of experiencing safety incidents. Certain sites have been
identified as having a higher risk level due to the nature of their operations,
which involve specific equipment and labour-intensive processes.
Stora Enso’s positive impacts are directed towards its own employees,
though these impacts may vary between different locations and
countries.
Stora Enso’s material impacts do not arise from transition plans for
reducing negative impacts on the environment, or achieving greener
and climate-neutral operations. The Group has not identified countries,
or geographic areas within in its own operations with a heightened risk of
compulsory, forced, or child labour.
Policies related to own workforce (S1-1)
The minimum requirement is that all policies and guidelines be reviewed
at least once every two years. Each policy owner shall ensure that the
documents under their responsibility are reviewed and updated within the
defined time frame.
Occupational Health and Safety Policy
The policy addresses managing safety risks and potential negative
impacts from safety incidents. It outlines safety objectives and
governance for health and safety management, integrating them into
annual planning and reporting. The scope of the policy covers the Group’s
own employees and those working on behalf of Stora Enso. The Safety
Network, comprising the safety representatives from the divisions and
functions, is accountable for the implementation of the policy.
Stora Enso has a safety management system for managing occupational
health and safety risks, certified according to ISO 45001:2018. In 2024, 42 out
of 57 operational units were externally certified according to the ISO
standard.
Stora Enso Code
The Code sets a single set of values for all employees and provides them
with the tools to make the right decisions in their work, while promoting
transparency and ethics. In relation to topics concerning its own workforce
(ESRS S1), the policy addresses risks associated with retaining skilled
personnel and preventing potential negative impacts related to
discrimination, bullying, or harassment. It also helps to maintain positive
impacts related to equal opportunities and treatment. All Stora Enso
employees are required to complete the Code training. The scope of the
policy covers the Group’s own employees, and EVP Legal, General Counsel,
is accountable for the implementation of the policy.
Diversity Policy
The Diversity Policy outlines the commitment to an inclusive workplace
where individual differences are respected and people have equal
opportunities. Similar to the Code, the policy addresses managing actual
positive impacts related a diverse and inclusive workplace and the
potential negative impacts if failing to take adequate actions. According to
the policy, no employee shall face discrimination in hiring, compensation,
working hours, advancement, discipline, termination, or retirement based
on ethnicity, national or social origin, caste, birth, religion, disability, gender,
gender identity, sexual orientation, marital status, family responsibilities,
union membership, political affiliation, age, or any other characteristic that
could lead to discrimination. The scope of the policy covers the Group’s
own employees, EVP, People and Communication, is accountable for the
implementation of the policy.
To prevent, mitigate, and address discrimination once detected, all
employees are required to complete Code training. Additionally,
appropriate reporting channels for raising concerns and addressing non-
compliance are established. Promotion of actions to advance diversity
and inclusion are described in ESRS S1-4.
Human Rights Policy and Guidelines
In relation to its own workforce, the Human Rights Policy and Human Rights
Guidelines address positive impacts related to fair employment practices
and secure employment.
Stora Enso adheres to The United Nation’s Guiding Principles on Business
and Human Rights. Stora Enso is also committed to those rights set out in
the International Bill of Rights and the ILO Declaration on Fundamental
Principles and Rights at Work, as outlined in the Human Rights Guidelines.
Alignment with these principles is reflected in the Group’s commitment to
respecting human rights across its operations and business relationships,
and conducting human rights due diligence to identify, assess, and
remedy any adverse human rights impacts. The guidelines outline the
approach and commitment towards salient human rights issues, of which
the relevant for the Group's own workforce are: right to a safe workplace,
fair employment conditions, and access to grievance mechanisms. The
processes to monitor compliance with aforementioned international
standards consists of:
• Ensuring grievance mechanisms are in place and accessible for
everyone.
• Reported non-compliance cases.
• Sedex Member Ethical Data Audits (SMETA) conducted regularly,
assessing performance against applicable labour standards, as well as
health and safety, environmental, and business ethics criteria.
• Annually published Modern Slavery and Human Trafficking Statement
describes the Group’s actions to prevent modern slavery in its
operations and supply chains, in accordance with the United Kingdom’s
Modern Slavery Act 2015 and the Australian Modern Slavery Act 2018.
The policy outlines the Group’s objectives for engaging with affected and
potentially affected stakeholders to ensure that its approach and focus on
human rights are valid. Engagement with own workforce is described in
S1-2. Stora Enso collaborates with stakeholders, affected individuals, and
their representatives to find appropriate remedies, including situations
where violations are committed by third parties connected to the Group's
operations, products, or services. Stora Enso does not obstruct the access
of affected stakeholders to other remedy initiatives.
The scope of the policy and guidelines covers the Group’s own operations
and all business relationships in the upstream and downstream value
chain. EVP, Strategy and Sustainability, is accountable for the
implementation of the policy and guidelines.
Stora Enso is aligned with the OECD’s Guidelines for Multinational
Enterprises, the human rights-related principles of the UN Global Compact,
and relevant Children’s Rights and Business Principles. The Human Rights
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Guidelines also address trafficking in human beings, and forced,
compulsory, and child labour.
Minimum Human Resources Requirements
for Labour Conditions
The Minimum Human Resources Requirements for Labour Conditions
establish a set of minimum requirements for all employees to ensure they
are treated with respect and fairness. This is linked to a positive impact
achieved through a working environment where employees are motivated
and able to perform effectively in their positions. The requirements also
address the risk related to dependency on skilled workforce. The scope of
the policy covers the Group’s own employees, and EVP, People and
Communication, is accountable for the implementation of these
requirements.
The afore listed policies focus on inclusion of all employee groups without
specific commitment to individuals from groups at particular risk of
vulnerability within the Group's own workforce.
Processes for engaging with own workforce and
workers’ representatives about impacts (S1-2)
Stora Enso actively engages with its workforce and workers’
representatives about actual and potential impacts through a variety of
channels and methods at different stages of the employee life cycle. The
annual all-employee survey, Engage, is a vital tool for collecting
perspectives and providing necessary insight to help teams and the
Group to improve. The results of the survey are reviewed by the Group
Leadership Team and the Board of Directors, ensuring that employee
perspectives are considered in decision-making. The Engage survey also
servers as the primary means for tracking effectiveness of engagement.
In 2024, Stora Enso implemented a series of new questions in the Engage
survey to gain deeper insights into employees’ perceptions of their sense
of belonging, being valued, and fair opportunities. Employees also have the
chance to submit open feedback and suggestions.
Additionally, ‘All Employee’ calls provide an opportunity for employees to
anonymously submit questions and feedback to management. These calls
are arranged bi-monthly, or more frequently if needed. They also serve to
inform employees about relevant impacts that affect all employees,
including topics such as safety. The group-level initiatives are
complemented by various other channels, such as town halls, and
personal development discussions. The overall responsibility for the
engagement lies with the EVP, People and Communication, whereas the
divisions have the operational responsibility on implementation and
monitoring.
Stora Enso’s occupational health and safety accountability lies within
divisions with clearly defined governance practices to promote
collaboration and knowledge sharing across the Group. Safety Sponsor is
a Group Leadership Team member elected by the CEO for a two-year term
to support the safety management and secure reporting of safety matters
to the CEO and designated other forums. When necessary, relevant
stakeholders such as workers’ representatives, contractors, and suppliers
are consulted to ensure their input and perspectives are considered in
safety-related decisions and initiatives. Majority of engagement takes
place at the mills through ongoing, regular activities such as discussions,
trainings, and safety walks. The annual Safety Week is organised to share
good safety practices among employees and contractors and to support
the development of a safer working environment.
Stora Enso has a Global Framework Agreement with the labour unions
IndustriAll, UniGlobal, and BWI, which serves to protect the interests of
workers with consistent standards across the Group’s operations. Stora
Enso also works closely with the European Works Council to provide an
open and confidential information and consultation procedure between
the Company and its employees on the EU/EEA level. The engagement
involves yearly meetings with a wider group of union representatives, as
well as regular meetings following each Board meeting where the CEO
updates the subgroup of key union representatives on the topics
discussed during the Board meeting.
Processes to remediate negative impacts and channels
for own workforce to raise concerns (S1-3)
Stora Enso provides remedy in situations where its activities have caused
or contributed to an adverse impact on employees and engages with
affected stakeholders to agree on the best solution for remediation. The
effectiveness is assessed case by case and according to the local
legislation. Employees are encouraged to feel safe and comfortable
speaking up, and as outlined in the Code, Stora Enso does not tolerate any
retaliation against a person who in good faith reports misconduct. In
restructuring situations, Stora Enso is committed to working closely
together with the Group’s other locations, the local community, and other
relevant stakeholders to support the re-employment and training of the
affected employees. The majority of Stora Enso employees are covered by
collective bargaining agreements, and in situations involving
organisational restructuring, consultation processes with trade unions are
carried out according to local legislation and relevant collective
bargaining agreements.
Reporting of suspected non-compliances is facilitated via any of the
Group’s grievance channels, be it personal contact with manager or
human resources, e-mail, letter, phone, or anonymously via the third-party
‘Speak Up’ reporting channel The process for tracking and monitoring
issues raised is described in ESRS G1-1 ‘Non-compliances and protection of
whistleblowers’. The Code e-learning is mandatory for all employees and is
available also in a mobile-friendly version tailored specifically for
production workers. The Code is available in thirteen languages. In addition
to the mandatory training, the effectiveness of the channels is supported
through communication activities and awareness raising described in
ESRS G1-1 ‘Ethical corporate culture’. As part of the Engage survey, the Group
tracks how safe employees feel to speak up or report their concern in case
they suspect or experience any form of misconduct.
In case of fatalities, remediation is defined by statutory workers’
compensation insurance. The safety reporting tool is used to report safety
observations, aiding in the identification and resolution of unsafe
situations. Safety incidents are thoroughly investigated, findings are
shared with the Safety Network, and appropriate preventive measures are
implemented to prevent the recurrence of similar negative impacts in
the future.
The European Works Council is a vital part of cooperation between
employees and management. The Council meets once a year with
representatives selected from each country that has production units
employing at least 150 employees. Through their representatives, every
Stora Enso employee has the opportunity to raise topics and ask questions
to the Group Leadership Team.
Taking action on material impacts on own workforce,
and approaches to managing material risks and
pursuing material opportunities related to own
workforce, and effectiveness of those actions (S1-4)
In line with the decentralised operating model, the main responsibility for
the planning and implementation of actions related to the Group’s own
workforce was transferred to divisions in late 2023. The process for
determining group-wide actions is primarily guided by the People Promise
and Expectations framework, the results of the employee engagement
survey, proactive safety management findings, and external benchmarks
and industry trends. The actions take place in the Group’s own operations
and the safety actions include contractors working at the Group’s
premises.
Occupational safety
The following actions are undertaken to prevent risks related to safety
incidents that may potentially result in actual negative impacts. They
contribute to the achievement of the Occupational Health and Safety
Policy objectives and Group safety target (TRI rate).
1) The leading indicator, Safety Engagement Rate, introduced in 2023,
focuses on proactive safety reporting to identify safety risks. In each
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division, safety engagement is measured as a leading indicator, with
specific targets related to, for example, safety observations, notifications
or improvement ideas, reporting of near misses, and safety walks.
2) To further emphasise the Group’s commitment to safety within the
value chain, a new key performance indicator will be introduced in 2025.
The indicator will assess the total number of recordable injuries among
both its own employees and contractors (full TRI rate).
The effectiveness of the above actions is measured through safety
observations and near misses reported, and performance against
divisional targets on the leading safety indicator and the Group TRI rate.
Diversity, equity, and inclusion
Stora Enso has positive impacts on enhancing diversity, equity, and
inclusion within its own workforce. Diversity, equity, and inclusion (DE&I)
contribute to enhanced satisfaction and well-being at work and are strong
enablers of improved performance, collaboration, and innovation. Key
actions to promote equal treatment and opportunities for all, in
accordance with the objectives of the Diversity Policy are outlined below.
1) In 2024, new inclusion-related questions were added to the annual
employee engagement survey. The results indicate that Stora Enso ranks
within the average range of the industry benchmark.
2) Several initiatives are undertaken as part of continuous, medium to
long-term action to cultivate a more inclusive and supportive workplace
while raising awareness. Firstly, the voluntary Employee Resource Groups
(ERGs) provide support in personal or career development and foster a
safe space where employees can be their authentic selves. Secondly, the
DE&I network, established in 2023 and consisting of representatives from
both the Group and divisions, facilitates knowledge-sharing and identifies
key areas for development. Thirdly, Stora Enso participates in the Female
Leader Engineer talent programme in Sweden for students with an interest
in leadership, specifically connecting women and non-binary students in
engineering with the Swedish industry.
3) In alignment with the decentralised operating model, the
implementation of diversity initiatives is managed in divisions. The
initiatives contribute to the achievement of the target on reaching 25%
representation of female managers among all managers. Some examples
carried out in 2024 included:
• Wood Products, Austria: quarterly female power talks to connect and
empower female employees, encourage their participation in
management positions, and promote equal development opportunities
within the company. The initiative will continue in 2025.
• Packaging Materials, Sweden: workshops for all managers at the
Skoghall mill to promote psychological safety and enhance inclusion.
• Packaging Solutions: establishing a process to ensure a diverse
succession pipeline for critical business roles by utilising HR system as a
digital tool. Complemented by particular emphasis on ensuring gender
diversity in recruitment principles, processes, and practices.
• In addition to gender diversity, age diversity is one of the recognised
focus areas. The Young Advisory Board provides a development
platform for early-career talents, while the ‘Experienced and Still
Sparkling’ programme was launched in 2024 to recognise more
experienced employees and provide them with additional opportunities
to contribute.
Effectiveness of the measures is tracked through employee engagement
survey, performance and career development reviews, gender pay gap
analysis, and progress against the Group target on gender balance.
Training and talent attraction and retention
The key actions to manage positive impacts on workforce retention and
attraction, as well as to mitigate any risks associated with failure to do so,
are described below. These actions are aligned with the Diversity Policy's
ambition to ensure that the people in the organisation possess the
capabilities and engagement required to deliver on the Group’s strategy.
1) A two-day meeting was held in 2024 for 140 Stora Enso key business
leaders. The purpose was to align around the Group’s ambition to build a
more resilient organisation, and one which is committed to driving
business transformation through the implementation of a positive
performance culture. These new ways of working are being cascaded
throughout the organisation via team specific action plans.
2) Ongoing Leadership programmes designed to cater to the various
stages and needs of leadership development within the organisation.
3) Talent development and upskilling plans are part of performance and
development reviews to support individual career planning. The aim is that
all employees are involved in at least one formal performance and
development review with their manager each year.
Additionally, efforts to enhance inclusion also contribute to talent retention,
see actions in ‘Diversity, equity, and inclusion’.
For the effectiveness of the actions, Stora Enso tracks the outcomes of the
annual Engage survey.
Support in restructuring situations
To address the risk posed by the continued weak and uncertain market
environment, Stora Enso launched a profit improvement programme in
the first quarter of 2024, targeting to reduce fixed costs and enhance
annualised adjusted EBIT by EUR 120 million. It includes a reduction of
approximately 1,000 employees across the organisation, with no
production site closures. Change negotiations were carried out in line with
the local legislation. Together with employee representatives, Stora Enso
implemented active measures to support the re-employment
opportunities for affected employees. The actions, appropriate responses,
and evaluation of their effectiveness are assessed in accordance with
local legislation.
Targets related to managing material negative
impacts, advancing positive impacts, and managing
material risks and opportunities (S1-5)
Diversity
Stora Enso has established a target related to the ESRS S1 sub-topic ‘Equal
treatment and opportunities for all’, aimed at advancing actual positive
impacts of diversity within its own workforce. The target is in line with the
Diversity Policy.
In 2022, a target was set for reaching 25% representation of female
managers among all managers by 2024, with a baseline of 23%. At the end
of 2024, the share of female managers was 24%, which remains below the
2024 target.
Advancing gender balance continues as a key focus area and is
incorporated into the variable remuneration scheme. The People and
Culture organisation, representing own employees, was closely involved in
target setting. The People and Culture organisation is also responsible for
tracking performance against the target and identifying improvement
areas.
Accounting principles
The share of female managers is calculated as the headcount of all
permanent managers with at least one direct report. The manager must
be permanent, but the subordinates can be temporary or permanent.
Most of the data comes directly from the HR management system, with
the exception of Business Unit Western Europe and few small units that are
yet to be included in the system roll-out, representing 7% of the data.
External stakeholders were not included in the target setting. Target
excludes joint operations.
Targets related to own workforce
2024
Female managers among all managers
24%
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Occupational health and safety
Stora Enso has set a target related to the ESRS S1 sub-topic ‘Health and
safety’, on the management of risks and actual negative impacts related
to safety incidents within its own workforce. The target is in line with the
Group’s Occupational Health and Safety Policy. The target was set in 2013
with a baseline of 14.0. At the end of 2024, the Group’s TRI rate was 5.2, which
is above the target level for 2024.
Stora Enso uses the Total Recordable Incident (TRI) rate as its main key
lagging performance indicator (KPI), as this provides a comprehensive
overview of safety performance, including less severe accidents.
The target is set for one year at a time, based on the outcome of the
previous year’s safety performance. The focus is on continuous
improvement. Safety Network, representing Group’s own employees, is
closely involved in the target setting.
Accounting principles
The KPI relies on incidents reported in Stora Enso’s safety management
system. The reported TRI rate shows the number of recordable incidents as
per one million hours worked, and covers Group’s own and joint operations’
employees.
In 2025, the KPI will be extended to cover also non-employees working at
Group’s sites. External stakeholders were not included in the target setting.
Targets related to own workforce
2024
Total recordable incident rate (own employees)
5.2
Stora Enso has not established targets related to policy implementation.
Characteristics of the undertaking’s employees (S1-6)
Accounting principles
Stora Enso’s reporting on headcount covers its own employees. Aligned
with the Financial Statements, the total number of employees include the
Group’s joint operations according to the ownership share (50%). The other
figures reported under S1-6 are reported without joint operations due to
the lack of full authority over contractual arrangements between the
workers and the Group. Stora Enso’s employee figures reflect the end-of-
year situation and are rounded to the nearest fifty. For the average
number of employees in each business segment, see Financial
Statements, note 2.1 Segment information.
The headcount per country includes countries where the Group has at
least 1,860 employees, which represents at least 10% of its total number of
employees. Since persons cannot legally register as having a third, often
neutral, gender in Stora Enso’s major operating countries, the ‘Other’
category is not included in the gender split reporting due to sensitivity of
the data although presented in the table. Same applies to category 'Not
reported'.
The data for turnover is collected through HR system (Workday) and local
payroll, and covers permanent employees. The turnover is calculated as
leavers that include all who left the Company during 2024, excluding
divestments, and divided by average headcount. There are minor
deviations due to different data sources.
Number of employees by gender
2024
Male
13,950
Female
4,650
Other
n/a
Not reported
n/a
Total employees
18,600
Number of employees by countries
2024
Finland
4,950
Sweden
3,400
China
2,300
Poland
1,900
Employees by contract type,
broken down by gender
Female
Male
Other
Not
disclosed
Total
Number of employees
4,650
13,950
n/a
n/a
18,600
Number of permanent
employees
3,800
12,200
n/a
n/a
16,000
Number of temporary employees
600
1,150
n/a
n/a
1,750
Number of non-guaranteed
hours employees
0
50
n/a
n/a
50
Metrics related to employees
2024
Employee turnover %
13%
Number of employee who have left the undertaking
2,200
Collective bargaining coverage and social
dialogue (S1-8)
Accounting principles
Stora Enso’s reporting on collective bargaining covers the employees
within the European Economic Area. The percentage is presented only for
countries with significant employment, defined as 1,860 number of
employees representing at least 10% of its total number of employees.
At the end of 2024, approximately 88% of Stora Enso’s employees were
covered by collective bargaining agreements. The number is an estimate
due to differences in national legislation.
The global percentage of employees covered by workers’ representatives
is reported for each country within the European Economic Area that
meets the requirement on significant employment, defined as 1,860
number of employees, which represents at least 10% of its total number
of employees.
Stora Enso Oyj has had an agreement on European Corporate Cooperation
in place since 1999. In 2015, the European Works Council (EWC) agreement
was updated according to the EWC's proposal. The purpose of the
collaboration is to establish and develop an open, confidential information
and consultation procedure between the company and its employees on
EEA level. The agreement establishes that a cooperation meeting shall take
place each year to discuss strategy and business topics.
Collective
bargaining
coverage
Social dialogue
Collective bargaining coverage rate
Employees – EEA
Workplace
representation (EEA
only)
0-19%
20-39%
40-59%
60-79%
80-100%
Finland, Sweden,
Poland
Finland, Sweden,
Poland
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Diversity metrics (S1-9)
Accounting principles
Stora Enso defines its top management as the CEO and Group Leadership
Team which means one and two levels below the highest operational
administrative and supervisory body (Board of Directors). The data is
collected through its HR management system and covers 100% of the
Group Leadership Team.
The data for age distribution in workforce is collected through the Group’s
HR management system, which covers 93% of the Group’s employees. The
figures are reported without joint operations due to the lack of full authority
over contractual arrangements between the workers and the Group.
Metrics related to top management
2024
Number of employees at top management level
Male
7
Female
4
% of employees at top management level
Male
64%
Female
36%
Age distribution in workforce (in %)
2024
Under 30 years old
12%
30-50 years old
55%
Over 50 years old
33%
Adequate wages (S1-10)
All Stora Enso’s own employees are paid an adequate wage, when
reviewed in accordance with the ESRS disclosure requirement and using
Wageindicator benchmark. The figures exclude joint operations due to the
lack of full authority over contractual arrangements between the workers
and the Group.
Health and safety metrics (S1-14)
Accounting principles
Stora Enso reports incidents and accidents using international
Occupational Health and Safety (OHSA) definitions when reporting Total
Recordable Incident (TRI). Due to the inherent nature of occupational
safety, the joint operations are consolidated at 100%. For 2024, the data
does not cover non-employees except for fatalities. Stora Enso also
monitors contractor accidents in separate categories for on-site
accidents and logistics incidents.
The percentage of people in Stora Enso’s own workforce who are covered
by health and safety management systems refers to the proportion of
total employees covered by externally certified safety management
systems, such as ISO 45001. Certain administrative functions and sales
offices are currently excluded from the Group’s safety figures due to
limited data availability, which is related to a relatively small headcount
and lower occupational safety risk compared to production units. These
units represent 7% of the total workforce.
Stora Enso uses the Total Recordable Incident (TRI) rate as its main key
lagging performance indicator (KPI), as this provides a comprehensive
overview of safety performance by also including less severe accidents.
The rate of recordable work-related accidents for own workforce
represents the number of work-related injuries per one million hours
worked. The figure is calculated by dividing the number of work-related
injuries by the number of total hours worked by people in its own workforce
and multiplied by one million.
The number of recordable work-related accidents for own workforce is
reported based on the international Occupational Health and Safety
(OHSA) definitions. The data is collected in the Group’s Health and Safety
reporting system. Stora Enso recognises a marginal error due to the partial
system coverage.
Fatalities are reported for cases occurring at Stora Enso’s sites and
premises.
Metrics related to health and safety
2024
% of people in its own workforce who are covered by
health and safety management system
87%
Rate of recordable work-related accidents for own
workforce
5.2
Number of recordable work-related accidents for own
workforce
177
Fatalities in own workforce as result of work-related
injuries
Employees
0
Non-employees
0
Fatalities as result of work-related injuries of other
workers working on undertaking's sites
0
Remuneration metrics (pay gap and total
remuneration) (S1-16)
Accounting principles
The gender pay gap has been calculated by counting the difference
between the male’s and female’s salaries and dividing that by the male’s
salary. Salary data has been retrieved from the HR system or local payroll.
The figure is reported without joint operations due to the lack of full
authority over contractual arrangements between the workers and the
Group.
The annual total remuneration ratio excludes the salary of the highest paid
individual. The median remuneration data is retrieved from the HR system
and local payroll, and includes only base and holiday salary, bonuses, and
incentive schemes. Additional benefits are excluded as the data is not
available in the system. The missing data is estimated to not impact the
results. The figure excludes joint operations. For more information on
remuneration, see Financial Statements, note 3. Employee remuneration.
Metrics related to remuneration
2024
Gender pay gap
7.0%
Annual Total Remuneration ratio
41.8
Incidents, complaints and severe human rights
impacts (S1-17)
Accounting principles
Stora Enso’s potential non-compliance cases encompass all issues
documented through its grievance and other reporting channels. The
reporting on proven cases covers the items closed during the year, and
therefore the recording of such incident may have occurred during the
current or previous financial year. The metrics related to incidents and
complaints cover work-related incidents of discrimination and other
complaints related to the Group's own workforce. In 2024, there were no
significant human rights issues or incidents, nor fines or penalties related
to reported incidents. Therefore, reconciliation to Financial Statements is
not presented. The figures exclude incidents investigated by the joint
operations due to the lack of full authority over contractual arrangements
between the workers and the Group.
Metrics related to incidents and complaints
2024
Number of incidents of discrimination
25
Number of complaints filed through channels for people
in own workforce to raise concerns
15
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ESRS S2 Workers in the value chain
Material impacts, risks and opportunities (SBM-3)
S2 disclosure requirement related to ESRS 2 SBM-3
Stora Enso’s disclosure on ESRS S2 covers value chain workers who are
likely to be materially impacted by the Group. This includes workers
employed by entities in the Group’s upstream value chain, who are
governed by the Supplier Code of Conduct. Stora Enso's impacts and risks
related to safety of the non-employees at its production sites are
disclosed under ESRS S1. The impacts on value chain workers originate from
the Group's business model and strategy, moreover, the risk of non-
compliances and safety incidents connected to its dependency on raw
materials and external personnel. While the impacts have not led to
adaptations in the business model or strategy, the Group has expanded its
safety target to include value chain workers who perform activities at the
Group’s sites, starting in 2025. Stora Enso continuously identifies and
assesses potential and actual adverse impacts related to human rights
and defines preventive and mitigating actions accordingly.
Stora Enso regards the risk of child and forced labour as a material issue
because any actual violation would severely impact the affected
individuals and result in significant financial repercussions for the Group.
Stora Enso has not identified any specific geographies with a significant
risk of child or forced labour, however, there are operations in areas where
the risk is heightened.
When identifying the types of value chain workers who are or could
potentially be negatively affected, Stora Enso concentrated its focus on
countries and value chains where the Group employs large numbers of
people, both directly or indirectly, and on the high-risk categories. Direct
value chain workers at Stora Enso’s sites may face higher risks due to
industrial processes. The safety of these employees is covered under ESRS
S1. None of the material risks or impacts were considered to relate to a
specific group of value chain workers.
Policies related to value chain workers (S2-1)
The below policies relate to the risk resulting from the violation of Stora
Enso’s ethical business practices and values. The minimum requirement is
that all policies and guidelines be reviewed at least once every two years.
Each policy owner shall ensure that the documents under their
responsibility are reviewed and updated within the defined time frame.
Human Rights Policy and Guidelines
Stora Enso works to ensure that human rights are respected throughout its
operations and business relationships. It takes human rights into account
across its operations from investment decisions onwards, paying special
attention to vulnerable groups, and encourages its partners to do the
same. The Human Rights Policy outlines Stora Enso’ commitment to
ensuring respect for human rights following the United Nations Guiding
Principles on Business and Human Rights. The policy requires suppliers and
other business partners to respect human and labour rights and comply
with the Group’s policies and guidelines. The Human Rights Guidelines
address the salient human rights topics, such as fair labour, access to
grievance mechanisms, and children’s rights. Stora Enso strives to prevent
and eliminate all forms of forced labour in its operations and supply
chains, including modern slavery, child labour, and debt bondage. Both the
policy and guidelines aim to mitigate the prevention of the risk of non-
compliance with Stora Enso’s standards in the Group’s own operations and
upstream value chain. See further details on the Human Rights Policy,
Human Rights Guidelines, and adherence to internationally recognised
human and labour rights and standards in ESRS S1-1.
Through the Human Rights Policy, Stora Enso commits to engaging with
affected and potentially affected stakeholders, including value chain
workers, to ensure that its approach and focus are valid. Stora Enso is
committed to remedy situations where its activities have caused or
contributed to adverse human rights impacts and engages with affected
stakeholders in finding the most appropriate solution. These solutions are
dependent on the needs of the affected people and the details of
the case.
Supplier Code of Conduct (SCoC)
The SCoC is a legally binding document that imposes sustainability
requirements on Stora Enso’s suppliers and needs to be signed as part of
the pre-qualification. In addition to environmental topics, the SCoC covers
areas such as human and labour rights, involuntary labour, occupational
health and safety, ethical recruitment, and fair remuneration. The SCoC
helps manage material risk related to the breach of these requirements
occurring in the Group’s own operations or upstream value chain. The
policy obliges suppliers to respect the ILO Convention 138 on abolition of
child labour. It does not explicitly address precarious work. See ESRS E1-2 for
more details on the SCoC.
The policy, which addresses the risk and actual negative impact related to
the safety of workers in the value chain working at the Group’s sites and
premises is outlined in ESRS S1-1.
By the end of 2024, Stora Enso had not become aware of any severe cases
of human rights incidents related to the UN Guiding Principles on Business
and Human Rights, ILO Declaration on Fundamental Principles and Rights
at Work or OECD Guidelines for Multinational Enterprises that involve value
chain workers. The Group is informed of incidents of non-respect through
internal audits, grievance mechanisms, and third-party supplier audits,
which include aspects such as occupational safety and labour rights.
Processes for engaging with value chain workers
about impacts (S2-2)
The perspectives of value chain workers support Stora Enso in taking
appropriate actions to generate positive impacts and mitigate any
potential negative impacts. This input can then be used to, for example, to
define audit scopes or targeted initiatives that address those impacts.
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Description
Impact, risk, or opportunity
Time horizon
Location in
the value chain
Related sub-topic or
sub-sub-topic
Despite preventive safety measures, safety incidents still occur. Stora Enso has
control over its value chain workers when the activities occur on the Group’s
sites and premises. The impacts and safety incidents where the Group has
direct control are reported under ESRS S1.
Actual negative impact
Short, medium, and
long term
Upstream, own
operations, joint
operations
Health and safety
Non-compliance by suppliers or other business partners with Stora Enso’s
standards on human and labour rights, occupational health and safety,
environmental standards, ethical recruitment, and reasonable employee
compensation may result in adverse consequences for people, the
environment, and Stora Enso’s reputation.
Risk
Short, medium, and
long term
Upstream, own
operations
Forced labour; Child
labour
Risk of safety incidents for the workers in its value chain. The Group has control
over its value chain workers when the activities occur on the Group’s sites and
premises. The incidents where Group has direct control are reported under
ESRS S1. Severe incidents in the value chain may damage Stora Enso’s
reputation and brand, which may result in a loss of investor and customer
confidence leading to higher cost of capital and decreased revenues.
Risk
Short, medium, and
long term
Upstream, own
operations, joint
operations
Health and safety
Engagement takes place on a consistent basis and at specific project or
business process stages. It starts with risk mitigation measures, such as
supplier screening and pre-qualification, and extends to defining
remedies. Engagement takes various forms, including participation,
consultation, or information sharing. Engagement is carried out either
directly with the workers in the value chain, contractors and other business
partners, or suppliers’ representatives. The operational responsibility for
ensuring that the engagement happens and that its results inform the
Group’s approach, is with EVP, Head of each division.
Third-party audits are an important tool to engage with suppliers, track
effectiveness of engagement, and focus on improvement measures
where needed. See more details on third-party audits in ESRS S2-4. Other
means of assessing the effectiveness of engagement include utilising
feedback mechanisms through the Group’s established grievance
channels or through specific project-defined feedback processes.
The approach to gaining insight into the perspectives of particularly
vulnerable groups is tailored to each specific case. An example of this
process can be found in section ESRS S2-4, which discusses silviculture
workers. Engagement related to the safety of workers in the value chain
working at the Group’s sites and premises is outlined in ESRS S1-2.
Processes to remediate negative impacts and channels
for value chain workers to raise concerns (S2-3)
Stora Enso continuously identifies and assesses potential and actual
adverse impacts related to human rights and defines preventive and
mitigating actions accordingly. The Group is committed to remedying
situations where its activities have caused or contributed to adverse
human rights impacts. Remediation measures and assessment of their
effectiveness are determined on a case-by-case basis and according to
the local context. The Group’s remediation process includes implementing
corrective actions and ensuring knowledge-sharing to prevent similar
cases from arising in the future.
All internal and external stakeholders can anonymously report potential
non-compliance cases via the Speak up channel. Suspected non-
compliances can also be reported externally to national competent
authorities and to certain EU-institutions. Equal protection against
retaliation and liability is ensured in all cases.
As outlined in the SCoC, suppliers are required to ensure that their
employees, sub-suppliers, local communities, and other relevant
stakeholders have access to grievance channels to anonymously voice
their concerns about potential misconduct related to the requirements of
this SCoC. The Supplier must also have processes in place to address
these concerns and remedy any confirmed case.
All potential non-compliance cases involving a Stora Enso employee or a
contracted third-party are duly investigated by an independent internal
team. Whenever a suspected Supplier Code of Conduct non-conformity is
identified during supplier visits or audits, or brought to the Group’s
attention through grievance channels, Stora Enso initiates a thorough
investigation. In cases of non-conformity, Stora Enso takes a collaborative
approach by working with the supplier to implement a corrective action
plan. In cases where the level of criticality is deemed high, or if a supplier
demonstrates an unwillingness to improve its performance, the business
relationship is terminated.
The SCoC needs to be signed as part of the pre-qualification process and
it contains information on the grievance channels to ensure suppliers are
aware of these channels. Currently, Stora Enso lacks a systematic
monitoring process to assess the effectiveness of the grievance channels
through the involvement of value chain workers, and that workers in the
trust them as a means to express their concerns or needs. As outlined in
the Code and Business Practice Policy, Stora Enso does not tolerate any
retaliation against a person who in good faith reports misconduct. For
more information on the grievance mechanisms and protection against
retaliation, see ESRS G1-1 ‘Non-compliances and protection of
whistleblowers’.
Processes to remediate negative impacts and channels to raise concerns
related to the safety of workers in the value chain working at the Group’s
sites and premises is outlined in ESRS S1-3.
Taking action on material impacts on value chain
workers, and approaches to managing material risks and
pursuing material opportunities related to value chain
workers, and effectiveness of those actions (S2-4)
To address the material risk of non-compliance by suppliers and other
business partners, as described in SBM-3 of this section, and to identify
appropriate preventive actions, Stora Enso undertook the following actions
during the reporting year. The Group plans to continue these actions in the
short to mid-term future. The actions cover the Group’s own operations
and the upstream value chain, with specific geographic locations
specified for relevant activities.
1) Following a 2023 pilot project on sustainability risk identification, Stora
Enso has refined its approach to assessing sustainability risks from a
country-specific perspective. This includes utilising data support from a
third-party provider. Internally, efforts are underway to effectively leverage
this data to enhance the screening of suppliers’ sustainability risks by
country. The action aims to improve decision-making regarding which
countries and regions require heightened focus and to enhance the
selection process for conducting additional assessments on suppliers.
2) During 2024, Stora Enso conducted a desktop assessment to evaluate
the social and environmental impact and potential risks of a tier 1 supplier
in Brazil involved in kaolin processing and mining. Kaolin is a soft white clay
used in some of the Group’s packaging products. The assessment focused
on reviewing the supplier’s operations and their impact on local
communities, land rights, and environmental incidents in the past. The
assessment took a collaborative approach and involved online dialogue
with the supplier. The key concerns identified in the assessment mainly
relate to the accuracy and availability of public information, particularly
regarding the review of the supplier’s operations and their impact on local
communities, land rights, and past environmental incidents. As a result,
Stora Enso has developed a follow-up plan accordingly.
3) In 2024, Stora Enso launched a project to establish a risk-based and
data-driven management system to ensure compliance with the
forthcoming Corporate Sustainability Due Diligence Directive (CSDDD). The
project will provide updates to Company policies, develop tools for due
diligence in supply chain and other high-risk areas, provide training and
advice to stakeholders, establish a related governance model, and set
impact targets and KPIs for performance measurement.
4) In Stora Enso’s forest operations in Sweden, activities such as the
clearing and planting of trees are carried out by silviculture contractors,
who predominantly employ migrant workers. A human rights impact
assessment conducted in 2022 revealed negative impacts on working
conditions and human rights risks among silviculture contractors. These
included limited workers’ rights, overtime issues, unclear payment
practices, safety concerns, and lack of transparency in housing and
recruitment fees. To mitigate similar potential impacts and related risks,
Stora Enso is dedicated to continuously addressing these issues and
further improving its processes. This includes implementing capacity
building initiatives, engaging in frequent dialogues with contractors, and
enhancing on-site assessments to focus on labour and human rights.
Additionally, translators are involved in the assessments to address the
needs and feedback of migrant workers.
As of the end of 2024, Stora Enso had not been made aware of any
reported instances of severe human rights issues or incidents connected
to its upstream and downstream value chain.
To track effectiveness of the actions, Stora Enso has set a target on
maintaining the proportion of total supplier spend covered by Supplier
Code of Conduct, including all categories and regions, at a minimum of
95%. Third-party audits assist in tracking the effectiveness of risk mitigation
by providing an independent assessment of the measures implemented.
• Stora Enso focuses its audit efforts on suppliers in high-risk categories.
During 2024, 21 Supplier Code of Conduct audits were conducted,
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primarily in China, with the majority relating to contracted
manufacturing and labour agencies. The audits revealed non-
conformities, related in particular to working hours, basic worker’s rights,
and emergency preparedness. Stora Enso formulated corrective action
plans for all cases with necessary follow-up.
• In 2024, 33 sites had received a renewed Forest Stewardship Council
(FSC) chain-of-custody certifications, with audits covering requirements
on core labour rights.
• 43 Health, Safety, Environment, and Quality (HSEQ) audits were
conducted mainly in Finland connected to contractors working on-site
at Stora Enso’s production sites. The actions to address risks and
negative impacts related to occupational safety at Stora Enso’s
premises are disclosed in ESRS S1-4.
In case of material negative impacts, Stora Enso follows the processes
described in ESRS S2-3 to provide and ensure remedy. Actions to prevent
negative impacts related to the safety of workers in the value chain
working at the Group’s sites and premises is outlined in ESRS S1-4.
Targets related to managing material negative
impacts, advancing positive impacts, and managing
material risks and opportunities (S2-5)
To manage material risks related to value chain workers, Stora Enso has
set a continuous target on maintaining the proportion of total supplier
spend covered by Supplier Code of Conduct, including all categories and
regions, at a minimum of 95% each year. The target was established in 2014
with a baseline value of 78%, and it is in line with Stora Enso’s Supplier Code
of Conduct. At the end of 2024, the coverage rate was 95%, which met the
targeted level. Workers in the value chain, their legitimate representatives,
or credible proxies were not involved in the target setting, tracking of the
performance or identifying any lessons or improvements.
Accounting principles
Stora Enso measures the proportion of total supplier spend covered by its
Supplier Code of Conduct for all categories and divisions. The Supplier Code
of Conduct applies to all Stora Enso’s sourcing categories globally. Joint
operations, intellectual property rights (IPR), leasing fees, financial trading,
government fees such as customs, and wood purchases from private
individual forest owners are not obliged to accept the Supplier Code of
Conduct. The total supplier spend excludes the aforementioned items.
Target related to sustainable sourcing
2024
% of supplier spend covered by the Supplier
Code of Conduct (SCoC)
95%
ESRS S3 Affected communities
Material impacts, risks and opportunities (ESRS 2 SBM-3)
S3 disclosure requirement related to ESRS 2 SBM-3
Stora Enso’s disclosure on ESRS S3 covers all the communities that could be
materially impacted by the Group’s own operations or upstream value
chain. Stora Enso’s impact on affected communities is connected to its
strategy and business model, particularly through its business relationship
with the 50% owned joint operations in Veracel, Brazil. The ongoing land-
related conflicts in Brazil have resulted in negatives impact on a specific
group of affected communities. Some of the affected individuals are
representatives of indigenous people. The conflicts arise from illegal land
invasions aimed at gaining access to land for subsistence farming. This
has resulted in the occupation of company-owned land. According to
legal requirements, the occupants are removed and farming activities are
stopped. As an adaptation action, Veracel is committed to maintaining
ongoing dialogue with landless movements and other affected individuals
and actively supports land allocations through the Sustainable Settlement
Initiative. These conflicts may also contribute to or lead to the identified
reputational risk described in the table above.
The reputational risk is related to Stora Enso’s resource-intense business
model, which depends on forests as a source of its primary raw material,
and can lead to potential conflicts over forest management practices,
biodiversity, and land and water use. The most significant risks are
observed in communities living around areas where Stora Enso or its joint
operations have a physical presence, such as forests and production sites.
The risk is considered in strategy execution through the implementation of
Environmental and Social Impact Assessments (ESIAs), which are
mandatory for new production facilities or significant changes to existing
facilities and plantations. As part of its dependency on raw materials, the
Group’s industrial operations require significant amounts of water to
maintain production processes. Although Stora Enso’s joint operations are
not situated in regions experiencing severe droughts, the Group closely
monitors the situation, as these communities are considered to be at a
greater risk of harm.
Policies related to affected communities (S3-1)
The key policies guiding Stora Enso’s approach to affected communities
are the Human Rights Policy and the Human Rights Guidelines. They outline
the objectives for respecting human rights throughout the Group's
operations and engaging with affected and potentially affected
stakeholders to ensure that its approach and focus on human rights are
valid. The policies cover proactive risk identification, mitigating adverse
impacts, and implementing remediation measures. They address the
reputational risks related to water and land impacts, as well as the
negative impacts of land use conflicts in Brazil.
The Human Rights Policy outlines the Group’s commitment to the UN
Guiding Principles on Business and Human Rights. The approach and
practices for achieving these objectives is described in the Human Rights
Guidelines, with special attention given to vulnerable groups, including
indigenous people. Stora Enso strives to ensure that the management of
land and natural resource rights related to its operations and supply chain
respects stakeholder rights. These rights must be acquired through due
diligence processes, which include avoiding the involuntary displacement
of indigenous peoples from their traditional lands and natural resources.
The Group’s management practices uphold the rights to health and an
adequate standard of living for communities affected by its business
activities. For further details on the policy and guidelines, see ESRS S1-1.
Engagement is described in ESRS S3-2 and remediation in ESRS S3-3.
Protecting and respecting the rights of local communities and indigenous
peoples is an essential part of sustainable forest management practices.
The Wood and Fiber Sourcing, and Land Management Policy, described in
ESRS E4-2, addresses managing tree plantations as part of local land use
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Description
Impact, risk, or opportunity
Time horizon
Location in
the value chain
Related sub-topic or
sub-sub topic
Stora Enso’s joint operation in Veracel has ongoing land rights conflicts
in Brazil.
Actual negative impact
Short, medium, and
long term
Joint operations
Land-related impacts
Risk of reputational harm related to conflicts with local communities and
NGOs over forest management practices, biodiversity, land, and water-
use. The conflicts may damage Stora Enso’s reputation and brand, which
may result in a loss of investor and customer confidence leading to higher
cost of capital and decreased revenues.
Risk
Short, medium, and
long term
Joint operations
Water and sanitation; Land-
related impacts
and contributing to sustainable livelihoods. It forbids harvesting in violation
of traditional rights of indigenous people or civil rights. Human rights and
local communities aspects are also embedded in all three chapters of the
Environmental Guidelines described in ESRS E1-3. The guidelines specifically
outline the right to water and sanitation, and to a safe, clean, healthy, and
sustainable environment.
Stora Enso’s policy alignment with internationally recognised is disclosed in
ESRS S1-1. In addition, Stora Enso is committed to international agreements
on the rights of vulnerable groups, including but not limited to the
Indigenous and Tribal Peoples Convention (C169), Convention on the
Elimination of Discrimination Against Women (CEDAW), Convention on the
Rights of the Child (UNCRC), and the International Convention on the
Protection of the Rights of All Migrant Workers and Members of Their
Families (CRMW). Stora Enso carries out chain-of-custody audits, FSC and
PEFC, which require compliance with the ILO Declaration on Fundamental
Principles and Rights at Work. For further information on monitoring
compliance with international standards, see ESRS S1-1.
Stora Enso is committed to remedying situations where its activities have
caused or contributed to adverse human rights impacts. The established
grievance mechanisms are accessible to all external stakeholders,
including affected communities. The Group engages with potentially
affected people and/or their representatives on a regular basis to identify
any needs for updating its priorities, policies, and practices and consulting
stakeholders when updating documents that affect them.
By the end of 2024, Stora Enso had not become aware of any severe cases
of human rights incidents related to non-respect of the UN Guiding
Principles on Business and Human Rights, ILO Declaration on Fundamental
Principles and Rights at Work, or OECD Guidelines for Multinational
Enterprises that involve affected communities.
Processes for engaging with affected communities
about impacts (S3-2)
Stora Enso incorporates the perspectives of affected communities into its
decision-making processes to gain insights into the local context, to
identify potential impacts, and to collaboratively develop an appropriate
approach. Before harvesting, Stora Enso consults communities near the
harvesting operations to listen to their concerns and expectations, and to
incorporate their feedback into the decision-making process. In Veracel,
Brazil, and Montes del Plata, Uruguay, the community liaison teams
collaborate with, consult, and inform all affected local communities before
and after forestry operations. In Sweden, Stora Enso works in collaboration
with the local Sami people prior to each felling season to review and adjust
plans to accommodate the Sami community’s specific needs, such as
reindeer herding, and to address other expressed interests or concerns.
Human rights impacts are identified and addressed through
Environmental and Social Impact Assessment (ESIA) requirements for new
or significant changes to facilities and plantations. This involves consulting
and informing affected and potentially affected stakeholders to avoid
adverse impacts on stakeholder rights. Air, water, and soil emissions are
governed through regulatory permitting and monitoring as well as
considered in the local environmental management system related to the
industrial or forestry operations.
Engagement takes place either directly with the communities or through
community representatives, and occurs at different stages of the
cooperation or project. It varies from consultation and participation to
informing. Some of the engagement takes place regularly, while other
interactions occur on an ongoing basis. The operational responsibility for
the engagement and ensuring that the results inform the Group’s
approach is with the EVP, Head of each division and the CEOs of the joint
operations in Brazil and Uruguay. Effectiveness of the engagement is
primarily tracked by monitoring the cases reported through grievance
channels.
Indigenous peoples
Community consultations, including Free, Prior and Informed Consent
(FPIC), are a regular element in Stora Enso’s human rights due diligence
and forestry operations, especially concerning land leasing and
indigenous peoples’ rights. They are a central tool to mitigate conflicts
related to land use. The engagement with the indigenous peoples is
designed together with the representatives of the affected stakeholders.
Local communities are consulted during the planning and decision-
making stages of new investments. FPIC allows indigenous peoples to give
or withhold consent to a project or development through a process where
they participate as equals and making decisions about their lands and
territories in accordance with their traditions and customs. The aim is to
establish bottom-up participation and consultation prior to the beginning
of a project or development that takes place on ancestral land or uses
resources within the indigenous population’s territory. This includes
consent on issues that might impact indigenous peoples’ rights, lands,
territories, resources, traditional livelihoods, and cultural heritage. Stora
Enso expects its joint operations to adhere to similar operational
procedures.
The Pataxó and Tupinambá communities represent almost 25,000
indigenous people in on the Discovery Coast in Brazil. Engagement is
carried out with communities impacted by forestry operations in the
territory and is organised by a third-party consultancy. Engagement
activities are conducted prior to the initiation of harvesting operations and
upon their completion to evaluate the process. This active dialogue aims
to establish an effective mechanism to minimise negative impact on
these traditional communities during the development of operational
activities. The engagement with traditional fishing communities in
conducted mainly through local associations at least annually to address
any changes in quality of life or livelihoods of the affected communities.
Some areas of Veracel’s land have been illegally occupied since 2008.
Veracel strives to maintain continuous dialogue with landless movements
and supports land allocations through the Sustainable Settlement Initiative
launched in 2012. The Sustainable Settlement Initiative is facilitated by the
Government of the State of Bahía and is conducted in cooperation with
the National Institute of Colonisation and Agrarian Reform (INCRA) and the
representatives of six officially recognised landless people’s social
movements. In 2018, Veracel signed a new agreement with the social
landless movements to complement the earlier agreed Sustainable
Settlement Initiative.
Stora Enso acknowledges its responsibilities towards the indigenous Sámi
people residing in or near its land or where it procures wood. Systematic,
ongoing dialogue helps to manage the risk of conflicts over forest
management practices and biodiversity, as well as associated
reputational risks. Before any forestry operations, Stora Enso consults with
the Sámi communities. Annual evaluation meetings review the year’s
activities and consultations to ensure ongoing communication and
collaboration. As an example, in Sweden, the collaboration has led to
solutions such as avoiding damage to lichen when preparing the soil for
replanting, which is crucial for reindeer feeding during winter.
Processes to remediate negative impacts and channels
for affected communities to raise concerns (S3-3)
Remediation measures are determined on a case-by-case basis, taking
into account the specific local context. The Group’s approach to
remediation involves implementing corrective actions and promoting
knowledge-sharing to proactively prevent the recurrence of similar cases
in the future. Processes to identify the action needed to address an actual
or potential negative impact are guided by the human rights due
diligence process and tools. These include monitoring compliance with the
Company’s policies, requirements, and guidelines; ensuring that grievance
mechanisms are operating effectively and are accessible to all relevant
stakeholders; engaging and consulting with affected people or their
representatives; and conducting project-specific impact assessments.
The nature of the negative impact determines the range of possible
remediation approaches, which can range from one-time settlements to
long-term programmes with rigorous monitoring to ensure their
effectiveness. To evaluate the most suitable course of action and response
to an existing or potential impact, Stora Enso engages in consultations with
the affected local community, and if necessary, seeks the assistance of a
third-party remediator. In instances of actual negative impacts involving
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legal violations, the court determines the appropriate actions and
remediation measures. In relation to indigenous peoples, the process of
providing remedy involves taking into account their customs, traditions,
rules, and local legislation.
All external stakeholders can anonymously report potential non-
compliance cases via the Speak up channel. The joint operations in Brazil
and Uruguay have their own grievance mechanisms available in local
language. Operations in China has also established an internal grievance
channel in local languages for stakeholders with inadequate knowledge of
the main language. Stora Enso does not have a specific process to assess
that affected communities are aware of and trust these structures or
processes as a way to raise their concerns or needs and have them
addressed. For more information on the grievance mechanisms and
protection against retaliation, see ESRS G1-1.
Stora Enso does not have a specific process to assess the effectiveness of
the remedy. It is assessed case-by-case, consisting of, for example,
constructive dialogue with the community.
Taking action on material impacts on affected
communities, and approaches to managing material
risks and pursuing material opportunities related to
affected communities, and effectiveness of those
actions (S3 -4)
Stora Enso has implemented a set of actions in its own operations and
joint operations to address the risk and identified negative impact related
to affected communities. None of the listed actions entail plans that
necessitate significant capital expenditure or operational expenditure.
Whilst Stora Enso is active on community investments to advance positive
impacts in local communities, the impacts were not considered to cross
the materiality threshold. As of the end of 2024, Stora Enso had not become
aware of any reported instances of severe human rights issues or
incidents involving affected communities.
In 2019, an outbreak of legionnaire’s disease affected a municipality close
to Ghent, Belgium, causing health impacts on the local communities. The
case was concluded in 2024, and is described in more detail in ESRS E3.
Addressing reputational risk
To address the reputational risks associated with raw material
dependency and potential conflicts related to use of natural resources
and management of environmental impacts, such as deforestation,
biodiversity loss, and land and water use, Stora Enso has implemented an
ongoing, long-term action plan that encompass its own operations and
joint operations. The action plan comprises the following aspects:
• Environmental and Social Impact Assessments (ESIAs) conducted for all
new projects that could cause significant adverse impacts on local
communities. Post-completion audits are carried out for all significant
investments. The assessments inform on actions that may be required in
project planning, construction, and operations to avoid possible
negative impacts.
• The Group’s tree plantations and land holdings are an integral part of
local land use, and therefore sustainable land use practices are defined
specifically for each location. The actions to monitor water-related
impacts are described in sections ESRS E2 and ESRS E3. While water is
generally abundant at Stora Enso’s production locations, water stress
may still impact operations locally and through the Group’s wider supply
chains. Identifying areas where water usage might create a negative
impact on local communities, is done by applying the WRI Aqueduct
Water Risk Atlas to assess water-related risks at its production sites.
• Community consultations, including Free, Prior, and Informed Consent
(FPIC) are an important tool for mitigating potential negative impacts,
such as conflicts on land-related use (see ESRS S3-2).
• Deforestation-free practices and biodiversity management are
described in ESRS E4. This includes the FSC and PEFC certifications on
sustainable forest management practices.
• Engagement and collaboration is one of the key actions to ensure
proactive and transparent communication, address the concerns of
local communities and other stakeholders, such as NGOs, and to define
the most appropriate actions.
• For details on the actions taken during 2024 regarding the evaluation of
social and environmental impacts of a tier 1 supplier involved in kaolin
processing and mining in Brazil, see ESRS S2-4.
To monitor the effectiveness of these actions, Stora Enso utilises
certifications like FSC and PEFC, conducts post-completion audits as part
of the ESIAs, tracks cases of non-compliance, and gathers stakeholder
feedback.
Managing land-related conflicts in upstream value chain
In Brazil, Stora Enso has 50% ownership of the joint operation Veracel. Since
the Group does not have direct operational control of the unit, it is
leveraging its financial ownership to address the negative impacts related
to land acquisition as described in ESRS S3 SBM-3. The identification of
appropriate actions is decided in collaboration with the local community.
As a long-term action, Veracel continues to support the transition of
families from the settlements to more permanent residencies on the same
land, as the legal processes regarding their claim to the land are resolved
over time.
In total, since 2012, Veracel has voluntarily approved the transfer of
approximately 20,000 hectares of land to benefit landless people as part of
the sustainable resettlement. At the end of 2024, 139 hectares, or 0.1%, of
productive land owned by Veracel remained occupied by movements not
involved in the agreements. Veracel continues to recover occupied areas
through legal processes.
In case of material negative impacts, Stora Enso follows the processes
described in ESRS S3-3 to provide and ensure remedy.
In addition to the actions outlined above, Stora Enso supports the resilience
and livelihood of local communities through development programmes
and initiatives, with monetary and in-kind donations, and employee
volunteering. For example, Veracel’s community liaison team, in
collaboration with indigenous communities, arranges activities from
awareness building on environmental topics to supporting educational
programmes and cultural incentives. In Montes del Plata, Uruguay, the
community engagement programme encompasses a variety of
initiatives, such as providing training for beekeepers and herders,
promoting English language learning, and supporting educational
continuity.
Targets related to managing material negative
impacts, advancing positive impacts, and managing
material risks and opportunities (S3-5)
Although Stora Enso is actively monitoring its impacts on affected
communities, it currently lacks a specific target for this topic with defined
timelines and desired outcomes. The Group does not track the
effectiveness of its policies and actions with defined level of ambition or
indicators. However, the Group is exploring the implementation of a
suitable target In the meantime, Stora Enso advances the progress in
achieving its policy objectives through actions described in ESRS S3-4.
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Governance information
In this section
G1 Business conduct
124
ESRS G1 Business conduct
Material impacts, risks and opportunities (ESRS 2 SBM-3)
Business conduct policies and corporate culture (G1-1)
Policies
The Stora Enso Code, the Group’s code of conduct, outlines the approach
to ethical business practices and process for identifying, reporting, and
investigating concerns about behaviour in contradiction with the Code.
The policy addresses the management of identified positive impacts
related to business conduct, grounded in the Company’s purpose and
values. It is designed to foster stakeholder trust and create a safe, inclusive
environment for employees. Additionally, the policy outlines measures to
mitigate risks associated with misconduct or non-compliance by
implementing clear principles and processes, and by encouraging
employees to report concerns. Stora Enso does not tolerate any retaliation
against a person who in good faith reports misconduct. Any person found
engaging in retaliation is subject to disciplinary action by Stora Enso,
including termination of employment. The policy is described in more
detail in ESRS S1-1.
The Business Practice Policy, consistent with the United Nations Convention
against Corruption, complements the Code and details Stora Enso’s
approach to ethical business practices. It provides additional guidance to
prevent risks in the areas such as anti-corruption and competition law,
and outlines the procedures for reporting any violations of these practices.
The policy shall be followed by all Stora Enso employees and the Group’s
business partners. The EVP Legal, General Counsel, is accountable for the
implementation of the policy. Process for monitoring entails the tailored
training described in ESRS G1-3.
The Supplier Code of Conduct (SCoC) extends the principles of the Stora
Enso Code to its suppliers, setting forth specific requirements they must
follow. Through the SCoC, Stora Enso manages the risk and potential
negative impact associated with corruption and bribery. This includes
mandating responsible business practices and ensuring full compliance
with all applicable permits, laws, and regulations. Furthermore, the SCoC
requires that suppliers ensure their own suppliers and sub-suppliers
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Description
Impact, risk or opportunity
Time horizon
Location in
the value chain
Related sub-topic or
sub-sub topic
Stora Enso operates globally, including in high-risk markets that
present both business opportunities and potential ethical and
compliance risks. The Group maintains stringent business
standards, fosters an ethical corporate culture, and implements a
strong compliance programme. These efforts have a positive
impact on both employees and business partners.
Actual positive impact
Short, medium,
and long term
Own operations, upstream and
downstream value chain
Corporate culture
Stora Enso is guided by its values of ‘Lead’ and ‘Do what's right’.
The Group empowers all employees to act with integrity and
encourages them to speak up against any misconduct or
unethical behaviour they may witness. Part of fostering an open
corporate culture includes protecting whistle-blowers, ensuring
that individuals feel safe to report any suspicions of misconduct
without the risk of personal negative impacts.
Actual positive impact
Short, medium,
and long term
Own operations, upstream and
downstream value chain
Corporate culture;
Protection of
whistleblowers
The risks related to business conduct encompass fraud, anti-trust
violations, corruption, conflict of interest, and other forms of
misconduct, all of which are areas covered by the Stora Enso
Code and Business Practice Policy. In the event of breaches of
these laws, regulations, or policies, Stora Enso may incur
significant compliance and remediation costs. These costs may
encompass regulatory fines and penalties, legal expense, and
potential damages to business relations, finances, or reputation.
Risk
Short, medium,
and long term
Own operations, upstream and
downstream value chain
Prevention and detection
including training;
Corporate culture
Despite strict rules, processes, and policies, suspicions and
incidents of non-compliance still occur. The risks may lead to
negative impacts on people and the environment, or financial
consequences for the Group.
Risk
Short, medium,
and long term
Own operations, upstream and
downstream value chain
Incidents;
Corporate culture
adhere to the stipulations of this SCoC or their own equivalent codes of
conduct. For further details on the SCoC, see ESRS E1-2.
Non-compliances and protection of whistleblowers
All employees and stakeholders are actively encouraged to report any
instances of suspected misconduct they identify. Stora Enso is subject to
legal requirements under the national law transpose the EU
Whistleblowing Directive. The measures to protect whistleblowers, their
rights, privacy, and confidentiality include secure and anonymous
reporting channels and policies against non-retaliation. Reporting is
facilitated via any of the Group’s grievance channels, be it personal
contact, e-mail, phone, or anonymously via the ‘Speak Up’ reporting
channel. This service, which covers all of Stora Enso’s units, is available 24/7
and allows reports to be submitted anonymously. Additionally, the service
is available to external stakeholders, including suppliers, customers, and
investors. Employees can also raise concerns also with their manager,
People & Culture organisation, or the Ethics and Compliance Team.
Managers and HR representatives have the responsibility to forward
serious complaints to the Ethics and Compliance team for further
investigation and actions.
All potential non-compliance cases involving a Stora Enso employee or a
contracted third-party are duly, promptly, and objectively investigated by
a dedicated team that is independent from the chain of management
involved in the matter. The investigation shall, if possible, be completed In a
high-risk case within thirty calendar days from the initial report, and in
other cases, within sixty calendar days. All cases, upon completion, are
reported to both the Disciplinary Committee and the Board of Directors’
Sustainability and Ethics Committee. In cases where a remediation plan is
required, it is implemented together with the relevant management
representatives.
To support all parties involved in evaluating a misconduct investigation
and determining the appropriate disciplinary action, the Ethics and
Compliance team maintains a Disciplinary Action Standard and cascades
it to the relevant internal organisations. This standard establishes the
ethical foundations for any disciplinary action taken in response to
misconduct investigated within Stora Enso. It serves as a guide for the
Ethics and Compliance team, as well as other decision-makers such as
those in People & Culture organisation, business organisations, and union
representatives, when evaluating a misconduct investigation and
determining the appropriate disciplinary action.
The functions identified as being most at risk in terms of corruption and
bribery include senior leadership, sales, sourcing, and corporate affairs. For
training provided to these functions, see ESRS G1-3.
Ethical corporate culture
Stora Enso’s corporate culture is built on a foundation of openness and
honesty, fostering a value-driven organisation that upholds the
Company’s core values of ‘Lead’ and ‘Do What's Right’. To further develop
and promote an ethical corporate culture, Stora Enso conducts training
sessions and engages in communication and awareness raising activities.
Training
Stora Enso does not have a specific policy on training related to business
conduct. However, all employees are required to complete the mandatory
onboarding training on the Stora Enso Code. In addition, e-learning
courses and customised training sessions cover various topics like
onboarding business partners, gifts and hospitality, and joint purchasing
agreements. See more on specific trainings in ESRS G1-3.
Ethics and Compliance index
Stora Enso tracks the advancement of positive impacts on its corporate
culture using an Ethics and Compliance index. The index is calculated as
an average of five ethics and compliance-related questions in Engage, the
annual employee survey. The questions assess whether employees feel
safe to speak up, are inspired by Stora Enso’s purpose and values, adhere
to the Stora Enso Code and other policies in their daily work, believe their
manager sets a good example, and see their team operating in
accordance with general legislation and Stora Enso’s practices. In 2024, the
result was 8.8, with the maximum rating being 10.
Awareness raising and Ethics Ambassador Network
Stora Enso employs diverse communication channels to foster an ethical
corporate culture. The Ethics Ambassador Network consists of around 250
voluntary employees from across the organisation. Ambassadors receive
training on internal policies, rules, and ethical culture. They actively
promote ethics, and company purpose and values in their workplaces.
Ambassadors play a critical role in fostering ethical dialogue, cascading
ethics information, and aiding the Group ethics and compliance team in
understanding the local corporate culture for continuous improvement of
communication efforts.
Prevention and detection of
corruption and bribery (G1-3)
Both the Stora Enso Code and Business Practice Policy require zero-
tolerance towards any form of corruption. To help prevent incidents of
corruption or bribery, sales and sourcing teams are offered tailored
training on competition law and anti-corruption, including training on
trade associations, joint purchasing agreements, gifts and hospitality, and
the onboarding of critical business partners. Details on specific trainings
are outlined in the table below .Controls are in place for day-to-day
operations, mandating that employees, for example, seek approval from
Legal and their line managers prior to offering any hospitalities involving
public officials.
High-risk roles, such as senior leadership, sales, sourcing, and corporate
affairs, undergo in-depth compliance training. They also complete an
annual refresher training on business ethics and confirm compliance with
company policies. Top management employees, including the Group
Leadership Team, have specific Ethics and Compliance onboarding
training to enhance ethical leadership. New Board members regularly
receive onboarding introductions, which cover topics related to the Stora
Enso Code, Business Practice Policy, and the Group’s ethics and
compliance programme, including anti-corruption and various other
business ethics topics.
In addition to the trainings provided for at-risk functions, Stora Enso’s all
employees must complete the Stora Enso Code training, as described in
ESRS G1-1. The Code training is designed to build understanding of business
conduct, including the detection of corruption and bribery.
The policies are implemented through the aforementioned trainings and
are also made accessible on the Company website and intranet. The
divisions employ an Ethics and Compliance Self-Assessment Tool (T.E.S.T)
to gain a clearer overview of the progress their units are achieving in
policy implementation, the compliance measures implemented, and any
potential gaps and risks in compliance. The Supplier Code of Conduct is a
legally binding document for all suppliers, outlining the common set of
minimum standards, including matters related to corruption and bribery.
All suppliers are required to commit to the SCoC as part of the pre-
qualification process.
Third parties who act on Stora Enso’s behalf are subject to additional Know
Your Counterparty (KYC) screening before onboarding. Corruption risks are
evaluated via internal and external questionnaires, watchlist and adverse
media screening as well as interviews and more in-depth due diligence
when necessary. Mitigation actions are always put in place when such a
party is engaged. In 2024, the screening was conducted for 83 critical
business partners. The reporting channels described in ‘Non-compliances
and protection of whistleblowers’ also serve to detect allegations or
incidents of corruption or bribery.
The process and responsibilities for investigating, addressing, and
reporting incidents follow the same principles as outlined in chapter ‘Non-
compliances and protection of whistleblowers’.
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Our people
Governance
Shareholders
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Financial Statements
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Assured 125
Accounting principles
The data regarding training coverage is gathered via a training platform
and reflects the status as of December 31, 2024, for Stora Enso’s active
employees. The figures are reported without joint operations due to the
lack of full authority over contractual arrangements between the workers
and Stora Enso.
At-risk functions
All employees at own
workforce
Critical
employees
Critical
employees
Office
workers
Production
workers
In-depth
compliance
training
(COMPLY)
Annual
sign-off
Stora Enso
Code
Stora Enso
Code intro
Training coverage
Total
3,550
3,000
7,600
10,150
Total receiving training
3,450
3,000
7,350
9,250
Total receiving training, %
97%
100%
97%
91%
Delivery method and
duration
Computer-based training
2 hours
20 minutes
40 minutes
15 minutes
Frequency
How often training is
required
Once
Annually
Once
Once
Topics covered
Definition of corruption
x
x
x
x
Business conduct and
corporate culture policies
x
x
x
x
Procedures on suspicion/
detection
x
x
x
x
Stora Enso values
x
x
x
x
Practical examples
x
x
x
x
Applicable to Group
Leadership Team
x
x
x
Incidents of corruption or bribery (G1-4)
As described in ESRS G1-3, both the Stora Enso Code and Business Practice
Policy require zero-tolerance towards any form of corruption. Despite strict
policies, incidents still occur. All employees and stakeholders are
encouraged to report any instances of suspected misconduct they
identify. All potential non-compliance cases involving a Stora Enso
employee or a contracted third-party are duly, promptly, and objectively
investigated by a dedicated team independent from the chain of
management involved in the matter. The actions to address proven cases
of corruption or bribery can include own worker dismissal or discipline.
Further actions to address breaches in procedures and standards of anti-
corruption and anti-bribery are described in ESRS G1-1 and ESRS G1-3.
Accounting principles
The reporting on proven corruption, bribery, and non-compliance cases
covers the cases closed during the year, and therefore the recording of
such an incident may have occurred during the current or previous
financial years. In 2024, Stora Enso had no convictions of anti-corruption
and anti-bribery laws, and paid no fines related to such incidents.
Metrics related to confirmed incidents
2024
Number of confirmed incidents of corruption or bribery
6
Number of confirmed incidents in which own workers
were dismissed or disciplined for corruption or bribery-
related incidents
5
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Our people
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Shareholders
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Shares and governance
Share capital
Stora Enso Oyj’s shares are divided into A and R shares. The A and R shares entitle holders to the same dividend but
different number of votes. Each A share and every ten R shares carry one vote at a shareholders’ meeting. However,
each shareholder has at least one vote. During 2024, a total of 566,837 A shares converted into R shares were
recorded in the Finnish Trade Register.
Number of shares as at 31 December 2024
A shares
R shares
Total
Number of shares
175,664,079
612,955,908
788,619,987
Number of votes (at least)
175,664,079
61,295,590
236,959,669
Board of Directors is authorised to decide on the repurchase and on the issuance of Stora Enso R shares. The
amount of shares to be issued or repurchased shall not exceed a total of 2,000,000 R shares, corresponding to
approximately 0.25% of all shares and 0.33% of all R shares.
Major shareholders as of 31 December 2024
By voting power
A shares
R shares
% of shares
% of votes
1
Solidium Oy¹
62,655,036
21,792,540
10.7%
27.4%
2
FAM AB²
63,123,386
17,000,000
10.2%
27.4%
3
Social Insurance Institution of Finland (KELA)
23,825,086
-
3.0%
10.1%
4
Ilmarinen Mutual Pension Insurance Company
4,159,992
18,670,446
2.9%
2.5%
5
Varma Mutual Pension Insurance Company
5,163,018
1,140,874
0.8%
2.2%
6
MP-Bolagen i Vetlanda AB²
4,885,000
1,000,000
0.7%
2.1%
7
Elo Mutual Pension Insurance Company
2,010,000
10,087,000
1.5%
1.3%
8
E.J. Ljungberg’s Foundation
1,780,540
2,336,224
0.5%
0.9%
9
Bergslaget’s Healthcare Foundation
626,269
1,609,483
0.3%
0.3%
10 The State Pension (Finland)
-
5,600,000
0.7%
0.2%
11
Lannebo fonder
-
4,904,100
0.6%
0.2%
12 Unionen (Swedish trade union)
-
4,800,000
0.4%
0.2%
13 OP Finland Fund
-
3,041,759
0.4%
0.1%
14 Nordea Finnish Stars Fund
-
3,017,418
0.4%
0.1%
15 The Society of Swedish Literature in Finland
-
3,000,000
0.4%
0.1%
Total
168,228,327
97,999,844
33.8%
75.1%
Nominee-registered shares³
75,519,278
478,429,538
70.3%
51.6%
1 Entirely owned by the Finnish State
2 As confirmed to Stora Enso
3 According to Euroclear Finland. As some of the shareholdings on the list are nominee registered, the percentage figures do not add up to 100%.
The list has been compiled by the Company on the basis of shareholder information obtained directly from the large shareholders, and from Euroclear Finland, Euroclear
Sweden and a database managed by Citibank, N.A. This information includes directly registered holdings, thus certain holdings (which may be substantial) of shares held in
nominee or brokerage accounts cannot be included. The list is therefore incomplete.
Share distribution as at 31 December 2024
By size of holding, A share
Shareholders
% of shareholders
Shares
% of shares
1–100
6,924
59.6%
264,242
0.2%
101–1,000
4,135
35.6%
1,438,963
0.8%
1,001–10,000
535
4.6%
1,231,685
0.7%
10,001–100,000
21
0.2%
421,191
0.2%
100,001–1,000,000
3
0.0%
381,594
0.2%
1,000,001–
8
0.1%
171,926,404
97.9%
Total
11,626
100.0%
175,664,079
100.0%
By size of holding, R share
Shareholders
% of shareholders
Shares
% of shares
1–100
16,579
37.4%
785,395
0.1%
101–1,000
21,760
49.0%
8,705,318
1.4%
1,001–10,000
5,587
12.6%
14,725,775
2.4%
10,001–100,000
394
0.9%
10,424,483
1.7%
100,001–1,000,000
51
0.1%
18,992,857
3.1%
1,000,001–
23
0.1%
559,322,080
91.2%
Total
44,394
100.0%
612,955,908
100.0%
According to Euroclear Finland. This table includes only shares registered in Euroclear Finland. E.g. Stora Enso’s Swedish shareholders are listed under their nominee bank in
this list. Therefore, this table is not comparable with the table Major shareholders as of 31 December 2024
Ownership distribution as at 31 December 2024
% of shares
% of votes
Solidium Oy
1
10.7%
27.4%
FAM AB
2
10.2%
27.4%
Social Insurance Institution of Finland (KELA)
3.0%
10.1%
Finnish institutions (excl. Solidium and KELA)
12.2%
8.6%
Swedish institutions (excl. FAM)
1.6%
1.0%
Finnish private shareholders
3.7%
2.3%
Swedish private shareholders
3.2%
2.1%
ADR holders
1.6%
0.5%
Under nominee names
53.7%
20.7%
1 Entirely owned by the Finnish State
2 As confirmed to Stora Enso
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The shareholding in Stora Enso Oyj’s shares by the members of the Board
of Directors 31 December 2024 is presented in note 3.2. Their holding in total
represents 0.00% of the Company’s A-shares and 0.02% of the R-shares.
Stora Enso Oyj shares held by the members of the Group
Leadership Team 31 December 2024
Shares held (direct and indirect
ownership)
A
R
Hans Sohlström¹
President and CEO
0
100,799
Tobias Bäärnman
EVP Strategy and Sustainability
0
8,449
Johanna Hagelberg
EVP Biomaterials
0
40,825
Tuomas Hallenberg
EVP Forest
0
0
Hannu Kasurinen
EVP Packaging Materials
0
62,415
Katariina Kravi
EVP HR and Communications
0
16,175
Per Lyrvall²
Country manager Sweden
0
90,625
Micaela Thorström
EVP Legal and Counsel
0
813
Lars Völkel
EVP Wood Products
0
25,801
Carolyn Wagner
EVP Packaging Solutions
0
0
Total
0
345,902
Share of outstanding shares
0.00%
0.06%
1 Includes 179 R shares held through related persons (spouse)
2 Includes 1,257 R shares held through related persons (spouse)
The total shareholding of the members of the Board of Directors and the
Group Leadership Team on 31 December 2024 represented 0.02% of the
total voting rights in the Company.
Governance
Stora Enso complies with the Finnish Corporate Governance Code 2025
issued by the Securities Market Association (the “Code”). The Code is
available at cgfinland.fi. Stora Enso also complies with the Swedish
Corporate Governance Code (“Swedish Code”), with the exception of the
deviations listed in Appendix 1 of the Corporate Governance report. The
deviations are due to differences between Swedish and Finnish legislation,
governance code rules and practices, and in these cases Stora Enso
follows the practice in its domicile. The Swedish Code is issued by the
Swedish Corporate Governance Board and is available at
corporategovernanceboard.se.
Related party transactions
Stora Enso’s Guideline for Related Party transactions addresses the
principles and processes for related party transactions in Stora Enso
Group, including decision-making, identifying related party transactions,
reporting and monitoring of related party transactions. Any transaction
undertaken with a related party, which is not undertaken on market
terms or which does not form part of the Company’s ordinary course of
business shall be reported to the Financial and Audit Committee and
approved by the Board of Directors. Furthermore, Board members and
members of the Group Leadership Team are subject to additional
transparency requirements to ensure proper review of transactions
involving them, their close family or a related entity. For more details on
related party transactions, see the Financial Statement, note 6.3 and the
Parent company financial statements note 26.
Legal proceedings
Contingent liabilities
Stora Enso has undertaken significant restructuring actions in recent years
which have included the divestment of companies, sale of assets and mill
closures. These transactions include a risk of possible environmental or
other obligations the existence of which would be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the Group. A provision has been recognised for
obligations for which the related amount can be estimated reliably and for
which the related future cost is considered to be at least probable.
Stora Enso is party to legal proceedings that arise in the ordinary course of
business and which primarily involve claims arising out of commercial law.
The management does not consider that liabilities related to such
proceedings before insurance recoveries, if any, are likely to be material to
the Group’s financial condition or results of operations.
Veracel
On 11 July 2008, Stora Enso announced that a federal judge in Brazil had
issued a decision claiming that the permits issued by the State of Bahia for
the operations of Stora Enso’s joint operations company Veracel were not
valid. The judge also ordered Veracel to take certain actions, including
reforestation with native trees on part of Veracel’s plantations and a
possible fine of, at the time of the decision, BRL 20 (EUR 4) million. Veracel
disputes the decision and has filed an appeal against it. Veracel operates
in full compliance with all Brazilian laws and has obtained all the necessary
environmental and operating licences for its industrial and forestry
activities from the relevant authorities. In November 2008, a Federal Court
suspended the effects of the decision. No provisions have been recorded
in Veracel’s or Stora Enso’s accounts for the reforestation or the possible
fine.
Changes in the Group management
Tuomas Hallenberg started as Executive Vice President of the Forest
division and Country Manager Finland, and a member of the Group
Leadership Team in October. Previously, he worked in several leadership
positions at Metsähallitus (the Finnish national forest managing company).
He took over from the previous EVP Forest division Per Lyrvall who will
remain Country Manager Sweden and member of the GLT until he retires
during the spring 2025.
Stora Enso’s Chief Financial Officer and Deputy CEO, Seppo Parvi, left his
position at Stora Enso in the end of October. Niclas Rosenlew was
appointed as new CFO and a member of the Group Leadership Team. He
was previously Group CFO at SKF, and joined Stora Enso in January 2025.
Pasi Kyckling, Stora Enso’s Group Transformation Officer, was appointed
acting CFO for the interim period.
Carolyn Wagner started as Executive Vice President of the Packaging
Solutions division and a member of the Group Leadership Team in
November. She was previously Divisional CEO of the Packaging Division at
the German Klingele Paper & Packaging Group, and replaces Ad Smit who
retired at the end of the year.
Changes in the Group structure
Stora Enso Paper Oy merged with the parent company Stora Enso Oyj as of
1 January 2024.
During 2024, Stora Enso divested several non-core assets, including the De
Hoop containerboard site in The Netherlands, where production had
ended in 2023; the Selfly Store smart vending machine solutions business;
the Sunila site in Finland, where pulp production had ended in 2023; the E-
Corrugated packaging site in the UK; and a paper for recycling trading in
Denmark.
For more details, see the Parent company financial statements note 1 and
the Consolidated Financial Statements, note 6.2 Group companies.
Resolutions by the Annual General Meeting
Stora Enso Oyj’s Annual General Meeting was held on 20 March 2024 in
Helsinki, Finland. The AGM adopted the accounts for 2023, adopted the
remuneration report for 2023 through an advisory resolution and granted
the Company’s Board of Directors and Chief Executive Officer discharge
from liability for the period.
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The AGM resolved, in accordance with the proposal by the Board of
Directors, that the Company shall distribute a dividend of EUR 0.10 per
share for the year 2023. The dividend was paid on 4 April 2024. In addition,
the AGM resolved that the Board of Directors is authorised to decide at its
discretion on the payment of an additional dividend up to a maximum of
EUR 0.20 per share. The second dividend instalment of EUR 0.10 per share
was paid on 20 December 2024.
The AGM resolved, in accordance with the proposal by the Shareholders’
Nomination Board, that the Board of Directors shall have eight (8)
members.
The AGM further resolved to re-elect the current members of the Board of
Directors – Håkan Buskhe, Elisabeth Fleuriot, Helena Hedblom, Astrid
Hermann, Kari Jordan, Christiane Kuehne, and Richard Nilsson – as
members of the Board of Directors until the end of the following AGM and
to elect Reima Rytsölä as a new member of the Board of Directors for the
same term of office. The AGM resolved to elect Kari Jordan as Chair of the
Board of Directors and Håkan Buskhe as Vice Chair of the Board of
Directors.
The AGM resolved, in accordance with the proposal by the Shareholders’
Nomination Board, that the annual remuneration for the Board of Directors
be paid as follows:
Chair
EUR 215,270 (2023: 209,000)
Vice Chair
EUR 121,540 (2023: 118,000)
Members
EUR 83,430 (2023: 81,000)
The AGM also resolved that the annual remuneration for the members of
the Board of Directors be paid in Company shares and cash so that 40% is
paid in Stora Enso R shares.
The AGM resolved the annual remuneration for the Board committees in
accordance with the proposal by the Shareholders’ Nomination Board.
The AGM resolved to elect PricewaterhouseCoopers Oy as auditor until the
end of the Company’s next AGM. PricewaterhouseCoopers Oy has notified
the Company that Samuli Perälä, APA, will act as the principally responsible
auditor. PricewaterhouseCoopers Oy will also act as the sustainability
reporting assurance provider of the Company until the end of the
Company’s next AGM.
Resolutions by the organising meeting
of the Board of Directors
Richard Nilsson (Chair), Elisabeth Fleuriot and Astrid Hermann were elected
members of the Financial and Audit Committee.
Kari Jordan (Chair), Håkan Buskhe and Reima Rytsölä were elected
members of the People and Culture Committee. Christiane Kuehne (Chair),
Helena Hedblom and Richard Nilsson were elected members of the
Sustainability and Ethics Committee.
Outlook
As a change to prior practices, Stora Enso will continue to provide
comments on its outlook but not a specific annual EBIT guidance. This
aligns with international practice.
Stora Enso expects demand to remain subdued and volatile, affected by
macroeconomic confidence and continued geopolitical uncertainty.
Wood prices are expected to remain at high levels. Throughout 2025, the
Group continues with its actions to reduce costs and strengthen
operational and commercial excellence with the aim to improve
operational performance and competitiveness.
During the full year 2025, the Group's adjusted EBIT is anticipated to be
adversely impacted by approximately EUR 100 million, primarily in H1/2025,
due to the ramp-up, in the coming months, of the new packaging board
line in Oulu, Finland.
The Group's capital expenditure forecast for the full year 2025 is EUR 730–
790 million.
Sensitivity analysis
Energy sensitivity analysis: the direct effect of a 10% change in electricity
and fossil fuel market prices would have an impact of approximately EUR 6
million on adjusted EBIT for the next 12 months.
Wood sensitivity analysis: the direct effect of a 10% change in wood prices
would have an impact of approximately EUR 227 million on adjusted EBIT
for the next 12 months.
Pulp sensitivity analysis: the direct effect of a 10% change in pulp market
prices would have an impact of approximately EUR 105 million on adjusted
EBIT for the next 12 months.
Chemical and filler sensitivity analysis: the direct effect of a 10% change in
chemical and filler prices would have an impact of approximately EUR 45
million on adjusted EBIT for the next 12 months.
Foreign exchange rates transaction risk sensitivity analysis for the next
twelve months: the direct effect on adjusted EBIT of a 10% strengthening in
the value of the US dollar, Swedish krona and British pound would be
approximately positive EUR 84 million, negative EUR 11 million and positive
EUR 12 million annual impact, respectively. Weakening of the currencies
would have the opposite impact. These numbers are net of hedges and
assuming no changes occur other than a single currency exchange rate
movement in an exposure currency.
The Group's consolidated income statement on adjusted EBIT level is
exposed to a foreign-currency translation risk worth approximately EUR 149
million expense exposure in Brazilian real (BRL) and approximately EUR 78
million income exposure in Chinese Renminbi (CNY). These exposures arise
from the foreign subsidiaries and joint operations located in Brazil and
China, respectively. For these exposures a 10% strengthening in the value of
a foreign currency would have a negative EUR 15 million and a positive EUR
8 million impact on adjusted EBIT, respectively.
Short-term risks and uncertainties
The geopolitical unrest could have an adverse impact on the Group.
Potential trade tariffs, retaliatory measures, conflict-related risks to people,
operations, trade credit, cyber security, supply, and demand, could also
affect the Group negatively.
The risk of a prolonged global economic downturn and recession,
continued high inflation, as well as sudden interest rate changes, currency
fluctuations, trade union and political strike actions, and logistical chain
disruptions could all adversely affect the Group’s profits, cash flow and
financial position, as well as access to material, flow of goods and
transport.
Macroeconomic and geopolitical disruption may increase costs, add
complexity, and lower short-term visibility, which could further impact
market demand, prices, profit margins, and volumes of the Group's
products. New capacity and volume entering the market might distort
demand, volumes, inventories and pricing. Moreover, forced capacity cuts
might further impact on profitability.
There is a risk of continued price volatility for raw materials such as wood,
chemicals, other components and energy in Europe. The continued tight
wood market, especially in the Nordics, could cause increased costs, limit
harvesting and cause disruptions such as delays and/or lack of wood
supply to the Group's production sites. Regulatory or similar initiatives
might challenge the Group's strategy, growth and operations.
Other risks and uncertainties include, but are not limited to; general
industry conditions, unanticipated expenditures related to the cost of
compliance with existing and new environmental and other governmental
regulations, and related to actual or potential litigation; material process
disruption at Stora Enso's manufacturing facilities with operational or
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environmental impacts; risks inherent in conducting business through joint
ventures; and other factors.
Stora Enso has been granted various investment subsidies and
compensations, and has made certain investment commitments in
several countries such as Finland, China, and Sweden. If commitments to
planning conditions are not met, local officials may pursue administrative
measures to reclaim some of the previously granted investment subsidies
or impose penalties on Stora Enso. The outcome of such a process could
result in adverse financial impact on Stora Enso.
Proposal for the distribution
of dividend
Stora Enso Oyj's Annual General Meeting (AGM) will be held on Thursday 20
March 2025 at 16:00 EET at the Marina Congress Center in Helsinki, Finland.
More information is available at storaenso.com/agm.
The parent company distributable shareholders’ equity on 31 December
2024 amounted to EUR 1,439,829,704.03 including the profit for the period of
EUR 57,335,679.15.
The Board of Directors proposes to the AGM that a dividend of EUR 0.25 per
share be distributed on the basis of the balance sheet adopted for the
year 2024. This would correspond to EUR 197,154,996.75 in aggregate for all
currently registered 788,619,987 shares, which would leave EUR
1,242,674,707.28 in distributable shareholders’ equity. The Board of Directors
proposes that the dividend be paid in two instalments.
The first dividend instalment, EUR 0.13 per share, is proposed to be paid to
shareholders who on the record date of the first dividend instalment, 24
March 2025, are registered in the shareholders’ register maintained by
Euroclear Finland Oy or in the separate register of shareholders
maintained by Euroclear Sweden AB for Euroclear Sweden registered
shares. The Board of Directors proposes to the AGM that the first instalment
of the dividend be paid on or about 2 April 2025.
The second dividend instalment, EUR 0.12 per share, is proposed to be paid
to shareholders who on the record date of the second dividend instalment
on 25 September 2025 are registered in the shareholders’ register
maintained by Euroclear Finland Oy or in the separate register of
shareholders maintained by Euroclear Sweden AB for Euroclear Sweden
registered shares. The Board of Directors proposes that the second
dividend instalment would be paid on or about 2 October 2025.
Dividends payable to Euroclear Sweden registered shares will be
forwarded by Euroclear Sweden AB and paid in Swedish crowns. Dividends
payable to ADR holders will be forwarded by Citibank N.A. and paid in US
dollars.
Stora Enso's policy is to distribute 50% of earnings per share (EPS) excluding
fair valuation over the cycle. In 2024, EPS excluding fair valuation was EUR
-0.56.
Events after the reporting period
The were no significant events after the reporting period end.
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Alternative performance measures
According to the European Securities and Markets Authority (ESMA) Guidelines, an alternative performance measure is understood as a financial measure of historical or future financial performance, financial position, or cash flows, not
defined under IFRS. Used together with the IFRS measures, alternative performance measures provide meaningful supplemental information to the management, investors, analysts and other parties with regards to the financial
development of the business operations.
Operating result (IFRS)
Net result for the period excluding income tax and net financial items (finance costs).
Used in combination with below measures to determine the
profitability of the Group.
Adjusted EBIT
Operating result (IFRS) excluding items affecting comparability (IAC) and fair valuations and non-operational items (FV) of the line-by-line consolidated entities
and Stora Enso’s share of operating result excluding IAC and FV of its associated companies.
The Group’s key non-IFRS performance metric, which is used to
evaluate the performance of operating segments and, in
combination with below ratios, to steer allocation of resources
to them.
Adjusted EBITDA
Operating result (IFRS) excluding silviculture costs and damage to forests, fixed asset depreciation and impairment, IACs and FV. The definition includes the
respective items of subsidiaries, joint arrangements and associated companies.
Used by management to analyse the business and, from time-
to-time, for short term and long-term target setting.
Adjusted return on capital employed (ROCE), LTM
3 (%)
Adjusted EBIT
3 x 100
Capital employed
1
Used for long-term Group financial targets setting.
Adjusted return on operating capital (ROOC), LTM
3 (%)
Adjusted EBIT
3 x 100
Operating capital
1
Used for long-term divisional financial targets setting.
Return on equity, ROE, LTM
3 (%)
Net result for the period x 100
Total equity
1
A measure of the profitability in relation to equity.
Net debt
Interest-bearing liabilities – interest-bearing assets, marked with “I” in the statement of financial position.
Used for long-term Group financial targets setting.
Net debt/equity ratio
Net debt
Equity
2
Used for long-term Group financial targets setting.
Net debt/last 12 months’ adjusted EBITDA ratio
Net debt
LTM adjusted EBITDA
Used for long-term Group financial targets setting.
Earnings per share (EPS) excluding FV
Net result for the period excluding fair valuations and non-operational items after tax divided by the weighted average number of shares
Stora Enso's dividend policy is to distribute 50% of earnings per
share (EPS) excluding fair valuation over the cycle.
Operating capital and capital employed
Operating capital is comprised of items marked with “O” in the statement of financial position. Capital employed = Operating capital – Net tax liabilities. Net tax
liabilities are marked with "T" in the statement of financial position.
Used for long-term Group financial targets setting.
Items affecting comparability (IAC)
The most common IAC are significant capital gains and losses, impairments or impairment reversals, disposal gains and losses relating to Group companies,
provisions for planned restructurings, environmental provisions, changes in depreciation due to restructuring and penalties. In order for qualifying cases to be
considered as items affecting comparability, a materiality threshold will be applied of at least EUR 4 million for Packaging Materials, EUR 2 million for Biomaterials, and
EUR 1 million for the rest of the divisions including segment Other.
Represent certain significant items, identified by the
management, considered not indicative of the operating
business performance due to their nature and/or frequency.
Fair valuations and non-operational items (FV)
Fair valuations and non-operational items include non-cash income and expenses related to CO2 emission rights and liabilities, non-operational fair valuation
changes of biological assets, adjustments for differences between fair value and acquisition cost of forest assets upon disposal and the Group’s share of
income tax and net financial items of associated companies. Non-operational fair value changes of biological assets reflect changes made to valuation
assumptions and parameters. The adjustments for differences between fair value and acquisition cost of forest assets upon disposal are a result of the fact that
the cumulative non-operational fair valuation changes of disposed forest assets were included in previous periods in IFRS operating result (biological assets)
and other comprehensive income (forest land) and are included in adjusted EBIT only at the disposal date (for non-strategic forest assets disposals).
Represent adjustments for certain items considered by the
management less relevant for understanding operating
business performance. These adjustments result in differences
in the recognition and measurement principles applicable
under IFRS.
Operational fair value change of biological assets
Operational fair value changes of biological assets contain all other fair value changes (see above about non-operational fair value changes of biological assets),
mainly due to inflation and differences in actual harvesting levels compared to the harvesting plan.
The long-term value change of the growing forests is an
important component of the forestry business profitability.
Cash flow from operations (non-IFRS) and cash flow
after investing activities (non-IFRS)
Cash flow from operations (non-IFRS) is equal to net cash provided by operating activities (IFRS) before cash flows related to financial items and income taxes. Cash
flow after investing activities (non-IFRS) is equal to cash flow from operations (non-IFRS) minus cash spent on intangible assets, property, plant and equipment, and
biological assets and acquisitions of associated companies.
These are measures of cash generation, working capital
efficiency and capital expenditure outflows.
Alternative performance measure
Definition
Purpose
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Capital expenditure
Capital expenditure on fixed assets includes investments in and acquisitions of tangible and intangible assets as well as internally generated assets and
capitalised borrowing costs, net of any related subsidies. Capital expenditure on leased assets includes new capitalised leasing contracts. Capital expenditure
on biological assets consists of acquisitions of biological assets and capitalisation of costs directly linked to growing trees in plantation forests. The cash flow
impact of capital expenditure is presented in cash flow from investing activities, excluding lease capex, where the cash flow impact is based on paid lease
liabilities and presented in cash flow from financing and operating activities.
A measure of the operating business investments capitalised
as tangible and intangibles assets.
Fixed costs
Maintenance, personnel and other administration type of costs, excluding IAC and FV.
A measure of the costs that are less variable in nature.
Alternative performance measure
Definition
Purpose
1 Average for the last five quarter ends 2 Attributable to the owners of the Parent 3 Last 12 months prior to the end of reporting period
Reconciliation of key figures
EUR million
2024
2023
2022
Adjusted EBIT
598
342
1,891
Capital employed, average
14,060
14,230
13,795
Adjusted ROCE
4.3%
2.4 %
13.7 %
Adjusted EBIT excl. Forest division
290
89
1,687
Capital employed excl. Forest division, average
8,071
8,490
8,276
Adjusted ROCE excl. Forest division
3.6%
1.0%
20.4%
Net result for the period
-183
-431
1,536
Total equity, average
10,576
11,413
11,532
Return on equity (ROE)
-1.7%
-3.8%
13.3%
Net debt
3,707
3,167
1,853
Adjusted EBITDA
1,223
989
2,529
Net debt to adjusted EBITDA ratio
3.0
3.2
0.7
Earnings per share (EPS) excl. fair valuation
EUR million
2024
2023
2022
Earnings per share (EPS) excl. FV EUR
Net result for the period attributable to owners of
the Parent
-136
-357
1550
FV on net result for the period attributable to
owners of the Parent
307
218
324
Net result for the period attributable to owners
of the parent excl. FV
-442
-575
1,225
Average number of shares
789
789
789
Earnings per share (EPS) excl. FV EUR
-0.56
-0.73
1.55
Reconciliation of operational profitability
EUR million
2024
2023
2022
Adjusted EBITDA
1,223
989
2,529
Depreciation and silviculture costs of associated
companies
-13
-11
-11
Silviculture costs
1
-111
-102
-100
Depreciation and impairment excl. IAC
-501
-534
-527
Adjusted EBIT
598
342
1,891
Fair valuations and non-operational items
364
231
363
Items affecting comparability (IAC)
-870
-895
-245
Operating result (IFRS)
93
-322
2,009
1 Including damages to forests
Segment share of adjusted EBIT, IAC, fair valuations and non-
operational items and operating result
Adjusted EBIT
IAC, fair valuations
and non-
operational items
Operating result
EUR million
2024
2023
2024
2023
2024
2023
Packaging Materials
172
-57
-341
-585
-169
-642
Packaging Solutions
-15
43
-379
-27
-394
17
Biomaterials
231
118
25
-199
256
-81
Wood Products
-16
-64
-57
-22
-73
-86
Forest
309
253
337
208
646
461
Other
-72
1
-90
-42
-162
-41
Inter-segment
eliminations
-11
49
0
0
-11
49
Total
598
342
-505
-664
93
-322
Net financial items
-211
-173
Profit before Tax
-118
-495
Income tax expense
-65
64
Net Profit
-183
-431
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Items affecting comparability in 2024
EUR million
2024
Impairments - Packaging Materials
-305
Impairments - Packaging Solutions
-371
Impairments - Wood Products
-56
Disposal & closure of De Hoop
-4
Disposal & closure of Sunila
-6
Disposal of Selfly Store
-8
Disposals - other
-8
Restructuring - Packaging Materials
-32
Restructuring - Packaging Solutions
-8
Restructuring - Biomaterials
-6
Restructuring - Forest
0
Restructuring - Group functions and segment Other
-7
Profit improvement programme - consulting costs
-45
Environmental provisions
-14
Other items
0
Total
-870
Items affecting comparability in 2023
EUR million
2023
Impairments - Packaging Materials
-468
Impairments - Biomaterials
-103
Impairments - Wood Products
-16
Impairments - Segment Other
-14
Impairment reversal - Forest
5
Disposal of Nymölla
-30
Disposal of Hylte
-45
Disposal of Maxau
52
Disposal of biocomposite business
-15
Disposal of Wood Products DIY unit
-4
Disposals related transaction costs
-6
Acquisition of De Jong Packaging Group
-16
Closure of Sunila pulp mill
-116
Closure of De Hoop
-79
Restructuring - Anjalankoski
-26
Restructuring - Packaging Materials
-21
Restructuring - Packaging Solutions
-10
Restructuring - Wood Products
-5
Restructuring - Biomaterials
-4
Restructuring - Group functions
-15
Restructuring (2021 announced) - Kvarnsveden
29
Restructuring (2021 announced) - Veitsiluoto
9
Updates in environmental provisions
5
Other items
-2
Total
-895
Fair valuations and non-operational items in 2024 and 2023
EUR million
2024
2023
Non-operational fair valuation changes of biological
assets, Packaging Materials
2
12
Non-operational fair valuation changes of biological
assets, Biomaterials
32
25
Non-operational fair valuation changes of biological
assets, Forest
382
156
Non-cash income and expenses related to CO2
emission rights and liabilities, Other
-11
-13
Non-operational items of associated companies, Forest
-34
56
Adjustments for differences between fair value and
acquisition cost of forest assets upon disposal, Forest
-6
-5
Total
364
231
Calculation of net debt
EUR million
31 Dec 2024
31 Dec 2023
Listed securities
11
9
Non-current interest-bearing receivables
14
76
Interest-bearing receivables
47
64
Cash and cash equivalents
1,999
2,464
Interest-bearing assets
2,072
2,613
Non-current interest-bearing liabilities
3,894
4,775
Current portion of non-current debt
1,090
347
Interest-bearing liabilities
788
657
Bank overdrafts
7
0
Interest-bearing Liabilities
5,779
5,780
Net debt
3,707
3,167
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Our year 2024
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Audited 134
Financial
Statements
Contents
Consolidated financial statements (audited)
136
Consolidated income statement
136
Consolidated statement of comprehensive income
136
Consolidated statement of financial position
137
Consolidated cash flow statement
138
Supplemental cash flow information
139
Statement of changes in equity
140
Notes to the consolidated financial statements (audited)
141
1
Basis for reporting
141
1.1
Accounting principles
141
1.2
Critical accounting estimates and judgements
143
2 Financial performance
144
2.1
Segment information
144
2.2
Other operating income and expenses
147
2.3
Depreciation, amortisation and impairment charges
148
2.4
Net financial items
149
2.5
Income taxes
150
2.6
Earnings per share
152
3 Employee remuneration
153
3.1
Personnel expenses
153
3.2
Board and executive remuneration
153
3.3
Post-employment benefit obligations
155
3.4
Employee variable compensation and equity incentive
schemes
158
4 Operating capital
159
4.1
Intangible assets, property, plant and equipment and right-of-
use assets
159
4.2
Forest assets
161
4.3
Associates
165
4.4
Equity instruments
166
4.5
Emission rights and other non-current assets
167
4.6
Inventories
167
4.7
Operative receivables
168
4.8
Operative liabilities
169
4.9
Provisions
169
5 Capital structure and financing
171
5.1
Financial risk management
171
5.2
Fair values
176
5.3
Interest-bearing assets and liabilities
178
5.4
Derivatives
181
5.5
Shareholders' equity
185
5.6
Cumulative translation adjustment and equity hedging
185
5.7
Non-controlling interests
186
6 Group structure
188
6.1
Acquisitions, disposals and assets held for sale
188
6.2
Group companies
191
6.3
Related party transactions
194
7 Other
195
7.1
Commitments and contingencies
195
7.2
Events after the reporting period
195
Parent company Stora Enso Oyj financial statements (audited)
196
Notes to the parent company financial statements (audited)
198
The official audited financial statements in Finnish are available at storaenso.com/download-centre
The audit firm PricewaterhouseCoopers Oy has provided an independent auditor’s reasonable assurance
report only on Stora Enso’s ESEF Financial Statements in Finnish in accordance with ISAE 3000 (Revised).
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Audited 135
Consolidated financial statements
Consolidated income statement
Year ended 31 December
EUR million
Note
2024
2023
Sales
2.1
9,049
9,396
Other operating income
2.2
325
378
Changes in inventories of finished goods and work in progress
48
-209
Materials and services
-5,948
-6,133
Freight and sales commissions
-838
-883
Personnel expenses
3.1
-1,228
-1,275
Other operating expenses
2.2
-543
-638
Share of results of associated companies
4.3
52
136
Change in net value of biological assets
4.2
421
209
Depreciation, amortisation and impairment charges
2.3
-1,246
-1,303
Operating result
2.1
93
-322
Financial income
2.4
118
91
Financial expenses
2.4
-329
-264
Result before Tax
-118
-495
Income tax
2.5
-65
64
Net result for the year
-183
-431
Attributable to
Owners of the Parent
-136
-357
Non-controlling Interests
5.7
-48
-74
Net result for the year
-183
-431
Earnings per share
Basic earnings per share, EUR
2.6
-0.17
-0.45
Diluted earnings per share, EUR
2.6
-0.17
-0.45
Consolidated statement of comprehensive income
Year ended 31 December
EUR million
Note
2024
2023
Net result for the year
-183
-431
Other Comprehensive Income (OCI)
Items that will not be reclassified to profit and loss
Equity instruments at fair value through OCI
4.4
-202
-645
Actuarial gains and losses on defined benefit plans
3.3
22
-52
Revaluation of forest land
4.2
-281
-49
Share of OCI of associated companies
4.3
5
-23
Income tax relating to items that will not be reclassified
2.5
53
22
-403
-748
Items that may be reclassified subsequently to profit and loss
Cumulative translation adjustment (CTA)
5.6
-89
56
Net investment hedges and loans
5.6
4
-15
Cash flow hedges and cost of hedging
5.4
-81
-1
Share of OCI of non-controlling interests (NCI)
5.7
-5
5
Income tax relating to items that may be reclassified
2.5
19
-1
-152
44
Total comprehensive income
-738
-1,135
Attributable to
Owners of the Parent
-685
-1,066
Non-controlling interests
5.7
-53
-69
Total comprehensive income
-738
-1,135
The accompanying Notes are an integral part of these consolidated financial statements.
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Consolidated statement of financial position
Assets
Goodwill
O
4.1
162
505
Other intangible assets
O
4.1
277
304
Property, plant and equipment
O
4.1
5,006
4,854
Right-of-use assets
O
4.1
499
521
5,945
6,183
Forest assets
O
4.2
7,227
7,105
Biological assets
O
4.2
5,243
4,836
Forest land
O
4.2
1,983
2,269
Emission rights
O
4.5
73
108
Investments in associated companies
O
4.3
954
926
Listed securities
I
4.4
11
9
Unlisted securities
O
4.4
602
810
Non-current interest-bearing receivables
I
5.3
14
76
Deferred tax assets
T
2.5
205
134
Other non-current assets
O
4.5
53
59
Non-current assets
15,082
15,411
Inventories
O
4.6
1,672
1,545
Tax receivables
T
31
31
Operative receivables
O
4.7
969
1,239
Interest-bearing receivables
I
5.3
47
64
Cash and cash equivalents
I
1,999
2,464
Current assets
4,719
5,343
Assets held for sale
6.1
0
0
Total assets
19,802
20,754
As at 31 December
EUR million
Note
2024
2023
Equity and liabilities
Share capital
5.5
1,342
1,342
Share premium
77
77
Invested non-restricted equity fund
633
633
Fair value reserve
1,808
2,293
Cumulative translation adjustment
5.6
-457
-375
Retained earnings
6,735
7,015
Equity attributable to owners of the Parent
10,139
10,985
Non-controlling Interests
5.7
-150
-97
Total equity
9,989
10,889
Post-employment benefit obligations
O
3.3
181
217
Provisions
O
4.9
81
83
Deferred tax liabilities
T
2.5
1,416
1,433
Non-current interest-bearing liabilities
I
5.3
3,894
4,775
Non-current operative liabilities
O
4.8
10
11
Non-current liabilities
5,582
6,520
Current portion of non-current debt
I
5.3
1,090
347
Interest-bearing liabilities
I
5.3
788
657
Bank overdrafts
I
5.3
7
0
Provisions
O
4.9
37
85
Operative liabilities
O
4.8
2,296
2,211
Tax liabilities
T
2.5
13
45
Current liabilities
4,231
3,346
Liabilities related to assets held for sale
6.1
0
0
Total liabilities
9,813
9,865
Total equity and liabilities
19,802
20,754
As at 31 December
EUR million
Note
2024
2023
Items designated “O” comprise Operating Capital, items designated “I” comprise Interest-bearing Net Liabilities, items designated “T” comprise Net Tax Liabilities.
The accompanying Notes are an integral part of these consolidated financial statements.
2023 restated due to reversal of held for sale classification. For more details see note 6.1 Acquisitions, disposals and assets held for sale.
Our year 2024
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Audited 137
Consolidated cash flow statement
Cash flow from operating activities
Net result for the year
-183
-431
Adjustments and reversal of non-cash items:
Taxes
2.5
65
-64
Depreciation and impairment charges
2.3
1,246
1,303
Change in value of biological assets
4.2
-421
-209
Change in fair value of share awards
-2
-2
Share of results of associated companies
4.3
-52
-136
CTA and profits and losses on sale of fixed assets and investments¹
2.2
-3
-20
Net financial items
2.4
211
173
Other adjustments
15
16
Dividends received from associated companies
4.3
29
25
Interest received
77
64
Interest paid
-197
-149
Other financial items, net
-43
-31
Income taxes paid
-73
-85
Change in net working capital, net of businesses acquired or sold
283
300
Net cash provided by operating activities
952
752
Cash flow from investing activities
Acquisition of subsidiary shares and business operations, net of acquired cash
6.1
-75
-584
Acquisition of shares in associated companies
4.3
-1
-5
Acquisition of unlisted securities
4.4
0
-18
Cash flow on disposal of subsidiary shares and business operations, net of disposed
cash
6.1
8
237
Cash flow on disposal of unlisted securities
4.4
3
0
Cash flow on disposal of intangible assets and property, plant and equipment
4.1
23
47
Capital expenditure
2.1, 4.1
-1,010
-897
Investment in biological assets
4.2
-103
-92
Proceeds from/payment of non-current receivables, net
22
-1
Net cash used in investing activities
-1,133
-1,313
Year ended 31 December
EUR million
Note
2024
2023
Cash flow from financing activities
Proceeds from issue of new long-term debt
5.3
19
2,006
Repayment of long-term debt and lease liabilities
5.3
-225
-716
Change in short-term interest-bearing liabilities
5.3
54
272
Dividends paid
-146
-472
Purchase of own shares
-3
-6
Net cash used in financing activities
-301
1,084
Net change in cash and cash equivalents
-483
523
Translation adjustment
11
24
Net cash and cash equivalents at beginning of year
2,464
1,917
Net cash and cash equivalents at year end
1,993
2,464
Cash and cash equivalents at year end
2
1,999
2,464
Bank overdrafts at year end
-7
0
Net cash and cash equivalents at year end
1,993
2,464
Year ended 31 December
EUR million
Note
2024
2023
1 CTA = Cumulative Translation Adjustment
2 Cash and cash equivalents comprise cash-in-hand, deposits held at call with banks and other liquid investments with original maturity of less than three months. Bank
overdrafts are included in current liabilities.
The accompanying Notes are an integral part of these consolidated financial statements.
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Audited 138
Consolidated cash flow statement
Supplemental cash flow information
Year ended 31 December
EUR million
Note
2024
2023
Change in net working capital consists of:
Change in inventories
-136
328
Change in interest-free receivables:
Current
259
347
Non-current
2
-19
Change in interest-free liabilities:
Current
168
-355
Non-current
-10
-2
Change in net working capital, net of businesses acquired or sold
283
300
Cash and cash equivalents consist of:
Cash on hand and at banks
912
825
Cash equivalents
1,088
1,639
Cash and cash equivalents
1,999
2,464
Non-cash investing activities
Total capital expenditure excluding right-of-use assets
933
946
Amounts paid
-1,010
-897
Non-cash part of additions to intangible assets and property, plant and equipment
-77
49
Cash flow on acquisitions of subsidiaries and business operations
Purchase consideration on acquisitions, cash part
6.1
-77
-612
Cash and cash equivalents in acquired companies, net of bank overdraft
6.1
2
27
Net cash flow on acquisition
-75
-584
Cash flow on disposals of subsidiaries and business operations
Cash part of the consideration
6.1
13
266
Cash and cash equivalents in divested companies
6.1
-5
-29
Net cash flow from disposal
8
237
The accompanying Notes are an integral part of these consolidated financial statements.
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Statement of changes in equity
Fair value reserve
EUR million
Share capital
Share
premium and
reserve fund
Invested non-
restricted
equity fund
Treasury
shares
Equity
instruments
through OCI
Cash flow
hedges
Revaluation
reserve
OCI of
associated
companies
CTA and net
investment
hedges and
loans
Retained
earnings
Attributable
to owners of
the parent
Non-
controlling
interests
Total
Balance at 1 January 2023
1,342
77
633
—
1,298
39
1,579
87
-415
7,893
12,532
-30
12,502
Net result for the year
—
—
—
—
—
—
—
—
—
-357
-357
-74
-431
OCI before tax
—
—
—
—
-645
-1
-49
-23
41
-52
-730
5
-726
Income tax relating to OCI
—
—
—
—
—
—
10
—
—
12
22
—
22
Total Comprehensive Income
—
—
—
—
-645
-1
-39
-23
41
-397
-1,066
-69
-1,135
Dividend
—
—
—
—
—
—
—
—
—
-473
-473
—
-473
Acquisitions and disposals
—
—
—
—
—
—
—
—
—
—
—
2
2
Purchase of treasury shares
—
—
—
-6
—
—
—
—
—
—
-6
—
-6
Share-based payments
—
—
—
6
—
—
—
—
—
-8
-2
—
-2
Balance at 31 December 2023
1,342
77
633
—
653
38
1,540
63
-375
7,015
10,985
-97
10,889
Net result for the year
—
—
—
—
—
—
—
—
—
-136
-136
-48
-183
OCI before tax
—
—
—
—
-202
-81
-281
5
-85
22
-621
-5
-626
Income tax relating to OCI
—
—
—
—
—
16
58
—
3
-4
72
—
72
Total Comprehensive Income
—
—
—
—
-203
-65
-223
5
-82
-118
-685
-53
-738
Dividend
—
—
—
—
—
—
—
—
—
-158
-158
—
-158
Acquisitions and disposals
—
—
—
—
—
—
—
—
—
—
—
—
—
Purchase of treasury shares
—
—
—
-3
—
—
—
—
—
—
-3
—
-3
Share-based payments
—
—
—
3
—
—
—
—
—
-4
-1
—
-1
Balance at 31 December 2024
1,342
77
633
—
450
-27
1,317
68
-457
6,735
10,139
-150
9,989
CTA = Cumulative Translation Adjustment, NCI = Non-controlling Interests, OCI = Other Comprehensive Income
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Audited 140
Notes to the consolidated financial statements
1 Basis for reporting
1.1 Accounting principles
Principal activities
Stora Enso Oyj (“the Company”) is a Finnish public limited liability company
organised under the laws of the Republic of Finland and with its registered
address at Katajanokanlaituri 4, 00160 Helsinki. Its shares are currently
listed on Nasdaq Helsinki and Stockholm. The operations of Stora Enso Oyj
and its subsidiaries (together “Stora Enso” or “the Group”) are organised
into the following reportable segments: Packaging Materials, Packaging
Solutions, Biomaterials, Wood Products, Forest and segment Other. The
Group’s main market is Europe.
The Financial Statements were authorised for issue by the Board of
Directors on 10 February 2025.
Basis of preparation
The consolidated financial statements of Stora Enso have been prepared
in accordance with IFRS Accounting Standards as adopted by the
European Union. The consolidated financial statements of Stora Enso have
been prepared according to the historical cost convention, except as
disclosed in the accounting policies. The detailed accounting principles
are explained in the related notes with a few exceptions where the
accounting principles are presented in this note. The consolidated
financial statements are presented in euros, which is the parent
company’s functional currency.
All figures in these consolidated financial statements have been rounded
to the nearest million, unless otherwise stated. Therefore, figures in this
report may not add up precisely to the totals presented and may vary
from previously published financial information.
New and amended standards and interpretations
adopted in 2024
The Group has applied the following new and amended standards and
interpretations which are effective from 1 January 2024:
• Amendments to IAS 1 Presentation of Financial Statements: Information
about long-term debt with covenants. IAS 1 requires a company to
classify debt as non-current only if the company can avoid settling the
debt in the 12 months after the reporting date. However, a company’s
ability to do so is often subject to complying with covenants. The
amendments specify that covenants to be complied with after the
reporting date do not affect the classification of debt as current or non-
current at the reporting date. Instead, the amendments require
a company to disclose information about these covenants in the notes
to the financial statements. The effective date was 1 January 2024. The
amendment did not have a significant impact on the Group.
• Amendments to IAS 1 Presentation of Financial Statements: Classification
of liabilities as current or non-current. The amendments clarify a
criterion for classifying a liability as non-current. The amendments
specify that an entity’s right to defer settlement must exist at the end of
the reporting period; clarify that classification is unaffected by
management’s intentions or expectations about whether the entity will
exercise its right to defer settlement; clarify how lending conditions
affect classification; and clarify requirements for classifying liabilities an
entity will or may settle by issuing its own equity instruments.
The effective date was 1 January 2024. The amendment did not have
a significant impact on the Group.
• Amendments to IFRS 16 Leases: Lease Liability in Sale and Leaseback.
Amendment requires a seller-lessee to subsequently measure lease
liabilities arising from a leaseback in a way that it does not recognise
any amount of the gain or loss that relates to the right of use it retains.
The new requirements do not prevent a seller-lessee from recognising in
profit or loss any gain or loss relating to the partial or full termination of
a lease. The effective date was 1 January 2024. The amendment did not
have a significant impact on the Group.
• Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial
Instruments: Disclosures: Supplier Finance Arrangements. The
amendments require entities to add disclosure requirements, and
‘signposts’ within existing disclosure requirements that requires entities
to provide qualitative and quantitative information about supplier
finance arrangements. The effective date was 1 January 2024. The Group
is engaged in supply chain financing and the amendment resulted in
additional disclosures in the notes of the consolidated financial
statements.
• Other standards, standard amendments and interpretations did not
have any significant impact on the Group’s consolidated financial
statements or disclosures.
Restatement of comparative figures
As announced in December 2022, Stora Enso initiated a sales process for
divesting its Beihai packaging board production site and forestry
operations in Guangxi, China.
The Beihai operations were classified as held for sale from the end of 2023
and based on the evaluation during 2024, the divestment was not seen as
highly probable anymore. Stora Enso’s view is that the value in own use of
the assets exceeds the achievable transaction value, and has therefore
chosen to retain these operations within the Group. As a result, the held for
sale classification was ceased in 2024.
Comparative figures for 2023 have been restated accordingly.
Restatements are related to consolidated statement of financial position,
where assets held for sale were presented separately. For 2023, there are
no cash flow or income statement impacts as a result of the restatements.
Assets held for sale included mainly fixed assets, forest assets, inventories
and operating receivables, whereas related liabilities consisted mainly of
non-current and current interest bearing liabilities and operating liabilities.
Consolidation principles
The consolidated financial statements include the parent company,
Stora Enso Oyj, and all companies controlled by the Group. Control is
defined as when the Group:
• has power over the investee,
• is exposed, or has rights, to variable returns from its involvement with the
investee; and
• has the ability to use its power to affect its returns.
If facts and circumstances indicate that there are changes to the three
elements of control listed above the Group reassess whether or not it
controls an investee. The subsidiaries and joint operations are listed in note
6.2 Group companies.
All intercompany transactions, receivables, liabilities and unrealised profits,
as well as intragroup profit distributions, are eliminated. Accounting
policies for subsidiaries, joint arrangements and associated companies
are adjusted where necessary to ensure consistency with the policies
adopted by Stora Enso.
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Associated companies over which Stora Enso exercises significant
influence are accounted for by using the equity method. These companies
are investments in which the Group has significant influence, but which it
does not control. Significant influence means the power to participate in
the financial and operating policy decisions of the company without
control or joint control over those policies. More detailed information is
presented in note 4.3 Associates.
Joint control is the contractually agreed sharing of control of the joint
arrangement, which exists only when decisions on relevant activities
require the unanimous consent of the parties sharing control. Joint
operations are joint arrangements, whereby the partners who have joint
control of the arrangement have rights to the assets, and obligations for
the liabilities, relating to the arrangement. Joint ventures are joint
arrangements, whereby the partners who have joint control of the
arrangement have rights to the net assets of the joint arrangement.
The Group has two joint operations, Veracel and Montes del Plata. In both
companies, Stora Enso’s ownership is 50%. The arrangements are based on
shareholders’ agreements, which give Stora Enso rights to a share of
returns and make the Group indirectly liable for the liabilities, as its ability
to pay for the pulp is used to finance debts. In relation to its interest in joint
operations, the Group recognises its share of assets, liabilities, revenues,
expenses and cash flows of the joint operation. The share is determined
based on rights to the assets and obligations for the liabilities of each joint
operator.
• Veracel is a jointly owned company of Stora Enso and Suzano located in
Brazil. The pulp mill produces bleached eucalyptus hard wood pulp and
both owners are entitled to half of the mill’s output. The eucalyptus is
sourced mostly from the company’s own forest plantations. The mill
commenced production in 2005.
• Montes del Plata is a jointly owned company of Stora Enso and Arauco
located in Uruguay. The pulp mill produces bleached eucalyptus hard
wood pulp and Stora Enso’s part is sold entirely as market pulp. The
eucalyptus is sourced mostly from the company’s own forest
plantations. The mill commenced production in 2014.
Revenue recognition
Sales comprise products, raw materials and services less indirect sales tax
and discounts, and are adjusted for cash flow hedging result on sales in
foreign currencies. Sales are recognised after Stora Enso has transferred
the control of goods and services to a customer and the Group retains
neither a continuing right to dispose of the goods, nor effective control of
those goods; usually, this means that sales are recorded upon the delivery
of goods to customers in accordance with the agreed terms of delivery.
Stora Enso’s terms of delivery are based on Incoterms 2020, which are the
official rules for the interpretation of trade terms as issued by the
International Chamber of Commerce (ICC). The main categories of
the terms covering Group sales are:
• “D” terms, under which the group is obliged to deliver the goods to the
buyer at the agreed place in the manner specified in the chosen rule, in
which case the point of sale is the moment of delivery to the buyer.
• “C” terms, whereby the Group arranges and pays for the external
carriage and certain other costs, though the Group ceases to be
responsible for the goods once they have been handed over to
the carrier in accordance with the relevant term. The point of sale is thus
the handing over of the goods to the carrier contracted by the seller for
the carriage to the agreed destination.
• “F” terms, being where the buyer arranges and pays for the carriage,
thus the point of sale is the handing over of the goods to the carrier
contracted by the buyer at the agreed point.
Where local rules may result in invoices being raised in advance of the
above, the effect of this revenue advancement is quantified, and an
adjustment is made accordingly. Stora Enso’s sales mainly comprise sales
of products and the revenue is typically recognised at a point in time when
Stora Enso transfers control of these products to a customer. Revenues
from services are recognised over time once the service has been
performed. More detailed information regarding Stora Enso’s principal
activities and disaggregation of revenue is presented in note 2.1 Segment
information.
Foreign currency transactions
Transactions in foreign currencies are recorded at the rate of exchange
prevailing at the transaction date, but at the end of the month foreign-
currency-denominated receivables and liabilities are translated using the
month-end exchange rate. Foreign exchange differences for operating
items are presented in the appropriate income statement line in the
operating profit, and, for financial assets and liabilities, they are presented
in the financial items in the consolidated income statement, except when
deferred in equity as qualifying cash flow hedges, net investment hedges
or net investment loans. Translation differences on non-monetary
financial assets, such as equities classified at fair value through other
comprehensive income (FVTOCI), are included in equity.
Foreign currency translations
The income statements of Group companies with functional and
presentational currencies other than the euro are translated into the
Group reporting currency using the average exchange rates of the year,
whereas the statements of the financial position of these companies are
translated using the exchange rates at the reporting date. The Group is
exposed to currency risks arising from exchange rate fluctuations on the
value of its net investment in non-euro foreign entities. Exchange
differences arising from the retranslation of net investments in foreign
entities that are non-euro foreign subsidiaries, joint operations or
associated companies and of financial instruments that are designated to
hedge such investments, are recorded directly in equity as cumulative
translation adjustment (CTA). See note 5.6 Cumulative translation
adjustment and equity hedging for more details.
Future standard changes endorsed by the EU but not yet
effective in 2024
• Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates:
Lack of Exchangeability. The amendment contains guidance to specify
when a currency is exchangeable and how to determine the exchange
rate when it is not. The effective date is 1 January 2025. The Group
expects that the amendment does not have a significant impact.
• No other published standards, standard amendments or interpretations
which would be expected to have any significant impact on the Group’s
consolidated financial statements or disclosures.
Future standard changes not yet effective and not yet
endorsed by the EU in 2024
• IFRS 18 Presentation and Disclosure in Financial Statements. The objective
of the new IFRS 18 standard is to set out requirements for the
presentation and disclosure of information in general purpose financial
statements to help ensure they provide relevant information that
faithfully represents an entity’s assets, liabilities, equity, income and
expenses. The new Standard will give investors more transparent and
comparable information about companies’ financial performance.
IFRS 18 is effective for annual reporting periods beginning on or after 1
January 2027 (retrospective application is mandatory). IFRS 18 replaces
current IAS 1 Presentation of Financial Statements. New standard carries
forward many requirements from IAS 1 unchanged.
IFRS 18 introduces three sets of new requirements to improve companies’
reporting of financial performance.
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Comparability in the income statement. IFRS 18 introduces three defined
categories for income and expenses - operating, investing and
financing - to improve the structure of the income statement, and
requires all companies to provide new defined subtotals.
Transparency of management-defined performance measures (often
referred to as alternative performance measures). IFRS 18 requires
companies to disclose explanations of company specific measures that
are related to the income statement, referred to as management-
defined performance measures. The new requirements will improve the
discipline and transparency of management-defined performance
measures.
Grouping of information in the financial statements. IFRS 18 sets out
guidance on how to organise information and whether to provide it in
the primary financial statements or in the notes. The changes are
expected to provide more detailed and useful information. IFRS 18 also
requires companies to provide more transparency about
operating expenses.
The Group is evaluating the impact of the new standard and expects
that it has material impact on the Group’s primary financial statements
and certain notes of the consolidated financial statements.
• Amendments to IFRS 9 and IFRS 7 - the Classification and Measurement
of Financial Instruments. The amendments will address diversity in
accounting practice by making the requirements more understandable
and consistent. These include clarifying the classification of financial
assets with environmental, social and corporate governance (ESG) and
similar features (ESG-linked features in loans could affect whether the
loans are measured at amortised cost or fair value), and settlement of
liabilities through electronic payment systems, where the amendments
clarify the date on which a financial asset or financial liability is
derecognised. With these amendments, the IASB has also introduced
additional disclosure requirements to enhance transparency regarding
investments in equity instruments designated at fair value through other
comprehensive income and financial instruments with contingent
features, for example features tied to ESG-linked targets. The
amendments are not expected to have significant impact on the Group.
• Amendments to IFRS 9 and IFRS 7 - Contracts Referencing Nature-
dependent Electricity. The own-use requirements in IFRS 9 are amended
to include the factors an entity is required to consider for contracts to
buy and take delivery of renewable electricity for which the source of
production of the electricity is nature-dependent. Hedge accounting
requirements are amended to permit an entity using a contract for
nature-dependent renewable electricity with specified characteristics
as a hedging instrument. Amendments also introduce disclosure
requirements about contracts for nature-dependent electricity with
specified characteristics. The Group is evaluating the impact of the
standard amendments and amendment is not expected to have any
significant impact on Stora Enso.
• Other published standards, standard amendments or interpretations
are not expected to have any significant impact on the Group’s
consolidated financial statements or disclosures.
1.2 Critical accounting estimates and judgements
The preparation of consolidated financial statements in accordance with
IFRS requires management to make estimates, judgements and
assumptions that affect the reported assets and liabilities, as well as the
disclosure of contingent assets and liabilities at the reporting date and the
reported income and expenses during the period. These estimates,
judgments and assumptions might have a significant impact on the
amounts recognised in the consolidated financial statements. The
estimates are based on historical experience and various other
assumptions that are believed to be reasonable and reflect
management’s best estimates, though actual result and timing could
differ from these. The estimates, judgements and assumptions are
reviewed regularly and updated if there are changes in circumstances or
as a result of new information. The accounting items presented below
represent those matters which include the most estimation uncertainty
and exercise of judgement. More details are included in the respective
notes.
• Property, plant and equipment, intangible assets and right-of-use assets
and Goodwill - note 2.3 Depreciation, amortisation and impairment
charges
• Income taxes - note 2.5 Income taxes
• Post-employment benefits - note 3.3 Post-employment benefit
obligations
• Leases - note 4.1 Intangible assets, property, plant and equipment and
right-of-use assets
• Forest assets - note 4.2 Forest assets
• Fair value of financial instruments - note 4.4 Equity instruments and note
5.2 Fair values.
• Provisions - note 4.9 Provisions
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2 Financial performance
2.1 Segment information
Accounting principles
Stora Enso’s reportable segments are Packaging Materials, Packaging Solutions,
Biomaterials, Wood Products, Forest and the segment Other. Operating segments
reflect the Group’s management structure and the way financial information is
regularly reviewed by Stora Enso’s President and CEO who is responsible for
allocating resources and assessing the performance of the operating segments.
Costs, revenues, assets and liabilities are allocated to operating segments on a
consistent basis. Transactions between operating segments are based on arm’s
length terms, and they are eliminated on consolidation. The activities of
the reportable segments are:
Packaging Materials
The Packaging Materials division is a global leader and expert partner in
circular packaging providing premium packaging boards, made from
virgin and recycled fiber. Stora Enso helps customers reduce the use of
fossil-based materials by offering renewable and recyclable products for
their food, beverage, and transport packaging based on a wide selection
of base boards and barrier coatings.
Packaging Solutions
The Packaging Solutions division is a packaging converter that produces
premium fiber-based packaging products for leading brands across
multiple market areas, including retail, e-commerce, and industrial
applications. Additionally, the division provides design and sustainability
services to help customers optimise material use, improve logistics, and
reduce CO2 emissions.
Biomaterials
The Biomaterials division’s foundation is built on pulp, with the aim of
becoming customers’ first choice in selected grades. To unlock the full
potential of a tree the division also leverages all fractions to create
innovative biobased solutions, that replace fossil-based and other non-
renewable materials.
Wood Products
The Wood Products division is Europe’s largest sawn timber producer and
a leading provider of sustainable wood-based solutions for the global
building sector. The division provides the building sector with renewable
and low-carbon wood-based solutions that help decarbonise the built
environment. Additionally, the division offers window and door
components, and co-products such as pellets made from wood residuals.
Forest
The Forest division is responsible for wood sourcing for Stora Enso’s Nordic
and Baltic operations as well as for B2B customers. It manages the Group’s
forest assets in Sweden and a 41% share in Tornator, whose forests are
primarily located in Finland. The division’s operations are based on
sustainable forest management encompassing planning, logistics,
harvesting, and forest regeneration.
Segment Other
The segment Other includes the divested paper sites until the completion
of the divestments, the reporting of the emerging businesses (including
Formed Fiber) as well as Stora Enso’s shareholding in the energy company
Pohjolan Voima (PVO), and Group Head Office and Global Business
Services.
External sales
46%
11%
14%
15%
13%
1%
Packaging Materials
Packaging Solutions
Biomaterials
Wood Products
Forest
Segment Other
Operating result (IFRS), MEUR
Packaging Materials
Packaging Solutions
Biomaterials
Wood Products
Forest
Segment Other
-400
-200
0
200
400
600
800
Capital expenditure
70%
5%
14%
5% 2% 4%
Packaging Materials
Packaging Solutions
Biomaterials
Wood Products
Forest
Segment Other
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Operating segments 2024
EUR million
Packaging
Materials
Packaging
Solutions
Biomaterials
Wood Products
Forest
Other
Eliminations
Group
External sales
4,207
977
1,303
1,357
1,157
49
0
9,049
Internal sales
295
10
284
165
1,670
128
-2,552
0
Sales total
4,502
987
1,587
1,522
2,827
176
-2,552
9,049
Product sales
8,986
Service sales
63
Sales total
9,049
Operating result
-169
-394
256
-73
646
-162
-11
93
Net financial expense
-211
Income taxes
-65
Result for the period
-183
Operative assets
4,594
807
2,835
803
8,036
743
-325
17,494
Tax receivables
236
Interest-bearing receivables
2,072
Total assets
19,802
Operative liabilities
1,138
202
318
250
703
298
-301
2,606
Tax liabilities
1,429
Interest-bearing liabilities
5,779
Total liabilities
9,813
Other items
Depreciations/impairments/impairment reversals
-560
-452
-99
-100
-21
-13
0
-1,246
Capital expenditures (excluding investments in biological assets)
709
50
136
50
21
43
0
1,009
Operating capital
3,457
606
2,518
553
7,334
445
-24
14,888
Average personnel
7,074
4,229
1,989
3,736
1,480
725
0
19,233
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Operating segments 2023
EUR million
Packaging
Materials
Packaging
Solutions
Biomaterials
Wood Products
Forest
Other
Eliminations
Group
External sales
4,362
1,066
1,363
1,453
989
162
0
9,396
Internal sales
195
11
223
127
1,501
801
-2,859
0
Sales total
4,557
1,077
1,587
1,580
2,490
964
-2,859
9,396
Product sales
9,317
Service sales
79
Sales total
9,396
Operating result
-642
17
-81
-86
461
-41
49
-322
Net financial expense
-173
Income taxes
64
Result for the period
-431
Operative assets
1
4,402
1,223
2,772
855
7,906
1,189
-371
17,975
Tax receivables
166
Interest-bearing receivables
2,613
Total assets
20,754
Operative liabilities
1
1,158
195
321
238
549
505
-358
2,607
Tax liabilities
1,478
Interest-bearing liabilities
1
5,780
Total liabilities
9,865
Other items
Depreciations/impairments/impairment reversals
-805
-74
-297
-67
-21
-38
0
-1,303
Capital expenditures (excluding investments in biological assets)
636
161
162
51
29
15
0
1,054
Operating capital
3,243
1,028
2,451
617
7,358
684
-13
15,368
Average personnel
7,269
4,389
2,196
4,079
1,434
1,455
0
20,822
1 2023 restated due to reversal of held for sale classification. For more details see note 6.1 Acquisitions, disposals and assets held for sale.
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Geographical information
External sales by destination
Non-current assets by
country
13
Capital expenditure by
country
2
EUR million
2024
2023
2024
2023
2024
2023
Austria
294
347
132
134
6
15
Baltic States
267
271
56
66
9
9
Czechia
168
189
185
193
5
8
Finland
623
664
3,291
2,872
718
587
France
260
299
2
2
0
0
Germany
811
862
1
34
8
9
Italy
387
453
0
0
0
1
Netherlands
503
597
435
797
16
131
Poland
506
511
366
407
23
30
Sweden
1,255
1,111
7,077
7,127
131
174
UK
293
344
0
8
0
0
Other Europe
845
901
92
126
10
12
Total Europe
6,213
6,548
11,636
11,767
926
975
China (incl. Hong Kong)
3
931
991
593
755
9
15
Japan
248
242
0
0
0
0
Uruguay
37
33
1,725
1,543
38
35
USA
259
302
0
0
0
0
Other countries
1,360
1,279
297
316
36
29
Total
9,049
9,396
14,251
14,382
1,009
1,054
1 Non-current assets excluding financial instruments and deferred tax assets.
2 Excluding biological asset capital expenditure
3 Non-current assets by country figure for 2023 has been restated due to reversal of held for sale classification. For more details see note 6.1 Acquisitions, disposals and assets
held for sale.
2.2 Other operating income and expenses
Accounting principles
Research and development
Research costs are expensed as incurred in other operating expenses in the consolidated income statement. Development
costs are also expensed as incurred unless they meet the criteria to be recognised as intangible assets in accordance with IAS
38, in which case they are capitalised as intangible assets and amortised over their expected useful lives.
Government grants
Government grants relating to the purchase of property, plant and equipment are deducted from the carrying value of the
asset, while the net cost is capitalised. Other government grants are recognised as income on a systematic basis over the
periods necessary to match them with the related costs they were intended to compensate.
Green certificates
Stora Enso is part of the local green energy production system which entitles selected mills in Europe to receive green certificates
based on megawatt hours of green energy produced. Green certificates received are recognised at grant date market value
only in the balance sheet. As such, subsequent changes in market prices do not impact the income statement, and the income is
recognised only when certificates are sold.
Other operating income and expenses
EUR million
2024
2023
Other operating income
Emission rights allocated and disposal gains
107
145
Sale of green certificates
4
12
Gains on disposal of fixed assets
8
44
Gains on disposal of Group companies and business operations
8
52
Dividend and gain on sale of unlisted shares
3
1
Insurance compensation
16
8
CTA release
1
0
Government grants
97
40
Other
1
82
76
Total
325
378
1 Including rent income, fair value changes for non-hedge accounted derivatives and other items. Derivatives are discussed in more detail in note 5.4 Derivatives.
EUR million
2024
2023
Other operating expenses
Lease expenses
44
43
Credit losses, net of reversals
3
9
Losses on disposal of fixed assets
7
4
Losses on disposal of Group companies and business operations
8
19
CTA release
0
56
Provision changes in income statement
54
94
Other
1
427
414
Total
543
638
1 Includes expenses related to, among others, consultancy and other services, IT and telecommunications, properties and administration, audit, training, travelling,
insurance, penalties, and currency translation differences on operative payables.
Materials and services include
2024
2023
Emissions rights to be delivered
55
82
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The Group has recorded an other operating income of EUR 107 (145) million
related to emission rights. The actual realised profits amounted to EUR 63
(75) million on the disposal of surplus rights. Under Materials and Services,
an expense of EUR 55 (82) million has been booked related to the cost of
CO2 emissions from production. See note 4.5 Emission rights and other
non-current assets for more details related to emission rights. The income
from the sale of green certificates amounted to EUR 4 (12) million.
Lease expenses comprise expenses related to short-term leases of EUR 11
(12) million, low-value assets of EUR 26 (26) million and variable lease
payments not included in the measurement of lease liabilities of EUR 2 (2)
million. They also include service payments specified in lease contracts,
which are excluded from the measurement of lease liabilities.
In 2024, research and development expenses of EUR 77 (98) million were
recorded.
Auditor’s fees and services
EUR million
2024
2023
Audit fees
4
4
Audit-related fees
0
0
Tax fees
0
0
Other fees
0
0
Total
5
5
Aggregate fees for professional services rendered to the Group principal
auditor PwC amounted to EUR 5 (5) million. Audit fees relate to the auditing
of the annual financial statements or ancillary services normally provided
in connection with statutory and regulatory filings. Audit-related fees are
incurred for assurance and associated services that are reasonably
related to the performance of the audit or for the review of financial
statements. Assurance fees related to the Sustainability Statement are
included in other fees.
2.3 Depreciation, amortisation and impairment charges
Accounting principles
Depreciation or amortisation of an asset begins when it is available for use in the
location and condition necessary for it to be operated in the manner intended by
management. Depreciation or amortisation ceases when the asset is derecognised
or classified as held for sale. Depreciation or amortisation does not cease when the
asset becomes idle. Assets are depreciated and amortised on a straight-line basis
during their useful lives. Useful lives are reviewed annually. If an asset is disposed
and the asset’s book value is higher than the disposal proceeds, the difference is
recognised as an impairment in the period when reliable estimate of disposal loss is
available, at the latest when a binding sales contract is signed. Right-of-use (ROU)
assets are depreciated using the straight line method from the commencement
date of the contract to the earlier of the end of the lease term or the end of the
useful life of the ROU assets.
The carrying amounts of intangible assets, property, plant and equipment and ROU
assets are reviewed at each reporting date to determine whether there is any
indication of impairment, whereas goodwill is tested annually. If any such indication
exists, the recoverable amount is estimated as the higher of the fair value less costs
of disposal and the value in use (discounted cash flow method), with an
impairment loss being recognised whenever the carrying amount exceeds the
recoverable amount.
A previously recognised impairment loss is reversed if there has been a change in
the estimates used to determine the recoverable amount, however, not to an
extent higher than the carrying amount that would have existed had no
impairment loss been recognised in prior years. For goodwill, however, a recognised
impairment loss is not reversed.
Whilst intangible assets, property, plant and equipment and ROU assets are subject
to impairment testing at the cash generating unit (CGU) level, goodwill is subject to
impairment testing at the CGU or group of CGUs level, which represents the lowest
level within the Group at which goodwill is monitored for internal management
purposes.
Critical accounting estimates and judgement
The value in use (discounted cash flow) method uses future projections of cash
flows of a CGU or a group of CGUs and includes, among other estimates, projections
of future product pricing, production levels, costs, market supply and demand,
projected capital expenditures and weighted average cost of capital. The discount
rates used reflect the best estimate of the weighted average cost of capital. The
Group has evaluated the most sensitive estimates and assumptions, which, when
changed, could have a material impact on the valuation of the assets including
goodwill and, therefore, could lead to an impairment. These estimates and
assumptions are sales prices, operating costs, the discount rate and expected
remaining useful life.
Management believes that the assigned values and useful lives, as well as the
underlying assumptions, are reasonable, though different assumptions and
assigned useful lives could have a significant impact on the reported amounts. For
material intangible assets and property, plant and equipment in an acquisition, an
external advisor makes a fair valuation and assists in determining their remaining
useful life. The key assumptions used in the impairment testing are explained further
in this note.
Depreciation, amortisation and impairment charges
EUR million
2024
2023
Depreciation and amortisation
Intangible assets
37
41
Buildings and structures
66
76
Plant and equipment
334
349
Right-of-use assets
56
59
Other tangible assets
8
8
Total
500
533
Impairment
Goodwill
342
85
Intangible assets
30
24
Buildings and structures
90
134
Plant and equipment
254
494
Right-of-use assets
26
33
Other tangible assets
5
6
Total
746
776
Reversal of impairment
Plant and equipment
-1
-6
Total
-1
-6
Depreciation, amortisation and impairment charges
1,246
1,303
Impairment testing
The recoverable amount for the cash generating units (CGUs) has been
determined as the higher of fair value less costs of disposal and their value
in use. Value in use is determined by using cash flow projections from
financial estimates approved by the Board of Directors and management.
The pre-tax discount rates are determined for each CGU, taking into
account the business environment of the CGU and the tax and risk profile
of the country in which the cash flow is generated. The table in the goodwill
impairment testing section below sets out the pre-tax discount rates used
for goodwill impairment testing, which are similar to those used in the
impairment testing of other intangible assets, property, plant and
equipment, and ROU assets.
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The following assumptions are used in calculating value in use for
each CGU:
• Sales price estimates in accordance with internal and external specialist
analysis;
• Cash flows and discount rates were prepared in nominal terms;
• Current cost structure to remain unchanged;
• For goodwill testing, a five-year future period, followed by perpetuity
value, is primarily used,
• For intangible assets, property, plant and equipment, and ROU assets,
the testing period is the remaining expected economic life of the assets.
Property, plant and equipment, other intangible assets,
and ROU assets impairments
The total impairments on property, plant and equipment, other intangible
assets and ROU assets in 2024 amounted to EUR 405 (691) million and
resulted mainly from predictions of a weaker cash flow estimates
compared to previous estimates.
In 2024, impairments were primarily related to the Packaging Materials,
Packaging Solutions and Wood Products divisions. In Packaging Materials,
the impairments of EUR 248 million were related to the Consumer Board
China CGU (EUR 141 million), the Varkaus Mill CGU (EUR 54 million), the Poland
CGU (EUR 27 million) and the Langerbrugge Mill CGU (EUR 24 million). In
Packaging Solutions, the impairments of EUR 98 million were related to the
Western Europe CGU. In Wood Products, the impairments of EUR 51 million
were related to the Northern Europe CGU.
In 2023, impairments were primarily related to the Biomaterials and
Packaging Materials divisions. In Biomaterials, the impairments of EUR 146
million pertained to the Nordic Mills CGU and were mainly associated with
the Sunila site, due to the closure of the pulp production site in Finland, and
the Uimaharju site, due to predictions of a weaker cash flow estimates
compared to previous estimates. In the Packaging Materials division,
impairments of EUR 490 million were primarily related to the
Containerboard Oulu CGU (EUR 228 million), due to predictions of a weaker
cash flow estimates compared to previous estimates; the Consumer
Board China CGU (EUR 202 million) in connection with the potential
disposal transaction and based on the fair value less cost to sell; and
the De Hoop Mill CGU (EUR 42 million), due to the closure of the site in
the Netherlands.
Goodwill impairments
The total impairments on goodwill in 2024 amounted to EUR 342 (85)
million and resulted from predictions of a weaker cash flow estimates
compared to previous estimates.
In 2024, goodwill impairments were recognised for the Packaging Solutions
Western Europe CGU (EUR 277 million), Packaging Materials Varkaus Mill
CGU (EUR 36 million), Packaging Materials Langerbrugge Mill CGU (EUR 23
million) and Wood Products Norther Europe CGU (EUR 6 million).
In 2023, a goodwill impairment of EUR 28 million was recognised for the
Anjala Mill CGU and EUR 13 million for the De Hoop Mill CGU, primarily due to
restructurings in the Packaging Materials division. Additionally, a goodwill
impairment of EUR 44 million was recognised for the Biomaterials division’s
CGU Nordic Mills, due to predictions of a weaker cash flow estimates
compared to previous estimates.
The most material groups of CGUs containing goodwill
2024
2023
EUR million
Goodwill at
year end
Pre-tax
discount
rate
Goodwill at
year end
Pre-tax
discount
rate
Packaging Solutions - Western
Europe
0
9.7 %
277
9.3 %
Wood Products - Southern Europe
109
11.6 %
110
11.8 %
Other CGUs
54
119
Total
162
505
Goodwill testing sensitivity analysis
The calculation of value in use is highly sensitive to discount rates, sales
prices and costs. Sensitivity analysis are conducted to calculate the
amounts by which the value assigned to the key assumption must change
in order for the unit’s recoverable amount to be equal to its carrying
amount for the CGUs for which a reasonably possible change in an
assumption could result in an impairment. The recoverable amount for
the Packaging Materials Oulu CGU amounted to EUR 1,187 million compared
with the carrying amount of EUR 1,089 million. The table below summarises
the amounts by which the key assumption must change in order for
the unit’s recoverable amount to be equal to its carrying amount.
Packaging
Materials
Oulu CGU
Increase in the discount rate (percentage points)
0.5 %
Annual decrease in the sales prices
-0.6 %
Annual increase in the costs
0.7 %
Summary of impairments and impairment reversals per division
EUR million
2024
2023
Packaging Materials
307
530
Packaging Solutions
375
5
Biomaterials
1
190
Wood Products
56
20
Forest
0
1
Other
6
23
Total (impairment +) / (Impairment reversal -)
745
770
2.4 Net financial items
Accounting principles
Net financial items comprise net interest expenses, foreign exchange gains and
losses and other financial income and expenses mainly arising from interest-
bearing assets and liabilities.
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Financial income and expense
EUR million
2024
2023
Net financial expense in the income statement
Financial income
118
91
Financial expense
-329
-264
Total
-211
-173
Represented by
Interest expense
Interest expense from borrowings measured at
amortised cost
-218
-167
Interest component of the effective hedges under
cash flow hedge
11
9
Interest expense on leases
-25
-23
Interest capitalised
29
7
Interest income on loans and receivables measured at
amortised cost
75
61
Net interest expense
-127
-113
Foreign exchange gains and losses
Currency derivatives
2
-12
Borrowings, cash equivalents, lease liabilities and
other
-22
-10
Net foreign exchange gains and losses
-20
-22
Other financial income
1
6
Other financial expense
Financial fees
-43
-28
Fair valuation losses
0
0
Impairments of interest-bearing assets
-15
-11
Net interest on net defined benefit liabilities
-6
-5
Net other financial expense
-64
-38
Total
-211
-173
Gains and losses on derivative financial instruments are shown in note 5.4 Derivatives.
In 2024, the net interest expense increased mainly as a result of higher
interest rates on borrowings and higher amount of gross debt. The
negative impact was partly offset by higher interest income on loans and
receivables.
The amount of interest costs capitalised during the year amounted to EUR
29 (EUR 7) million, and were mainly related to the Oulu site conversion
project in Finland. The average interest rate used for capitalisation was 4.1%
(3.6%). Costs on long-term debt issues capitalised as part of non-current
debt amounted to EUR 6 (9) million in the statement of financial position.
During the year, EUR 3 (2) million was amortised through interest expense
by using the effective interest rate method.
Exchange gains and losses for currency derivatives mainly relate to non-
hedge accounted instruments fair valued in the income statement. In
2024, the amount reported as other financial income mainly consists of
fair valuation gains, while other financial expense in the table above
relates to net financial fees for unused committed credit facilities,
guarantees and factoring and supply chain financing programmes.
Impairments of interest-bearing assets relate to receivables originating
from the sale of the Russia operations in 2022. During 2024 the Group
decided to write-off the remaining receivables of EUR 15 million, the write-
off is discussed in more detail in note 5.3 Interest-bearing assets and
liabilities.
2.5 Income taxes
Accounting principles
The Group income tax expense/benefit includes taxes of Group companies based
on taxable profit/loss for the period, together with tax adjustments for previous
periods and the change in deferred taxes. Tax assets and liabilities reflect
uncertainty related to income taxes, if any.
Deferred taxes are provided using the liability method, as measured with enacted,
or substantially enacted, tax rates, to reflect the net tax effects of all temporary
differences between the tax bases and the accounting bases of assets and
liabilities. No deferred tax is recognised for the initial recognition of goodwill and the
initial recognition of an asset or liability in a transaction which is not a business
combination, and at the time of the transaction this affects neither accounting
profit nor taxable profit. Deferred tax is recognised on transactions in which equal
amounts of deductible and taxable temporary differences arise on initial
recognition. Deferred tax assets reduce income taxes payable on taxable income in
future years. The deferred tax assets, whether arising from temporary differences or
from tax losses, are recognised only to the extent that it is probable that future
taxable profits will be available against which the assets can be utilised.
Critical accounting estimates and judgement
Tax assets and liabilities are reviewed on a regular basis and balances are adjusted
appropriately. The deferred tax assets, whether arising from temporary differences
or from tax losses, are recognised only to the extent that it is probable that future
taxable profits will be available against which the assets can be utilised.
Management considers that adequate provision has been made for future tax
consequences based on the current facts, circumstances and tax laws. However,
should any tax positions be challenged and not prevail, different outcomes could
result and have a significant impact on the amounts reported in the consolidated
financial statements.
Tax expense
EUR million
2024
2023
Current tax
-41
-54
Deferred tax
-24
119
Total income tax
-65
64
Income tax rate reconciliation
EUR million
2024
2023
Profit before tax
-118
-495
Tax at statutory rates applicable to profits in the
country concerned
1
76
121
Non-deductible expenses and tax exempt income
2
-14
-10
Valuation of deferred tax assets
-44
-60
Taxes from prior years
-2
-3
Changes in tax rates and tax laws
0
-1
Impairment of goodwill
3
-84
-19
Results from associated companies
10
27
Other
-8
9
Total income taxes
-65
64
Effective tax rate
-55.4 %
13.0 %
Statutory tax rate (blended)
64.1 %
24.5 %
1 Includes a EUR 30 million impact from countries with tax holidays and tax benefits in 2024 and a EUR 22 million
impact from tax holidays and other tax benefits in 2023.
2 The tax value of non-deductible expenses of EUR 18 million has been netted against tax exempt income of 4
EUR million in 2024, and tax value of non-deductible expenses of EUR 12 million has been netted against tax
exempt income of EUR 3 million in 2023.
3 Impairment of goodwill previously presented on line other. Comparative figures restated accordingly.
The statutory tax rate is a weighted average of the statutory tax rates
prevailing in jurisdictions where Stora Enso operates.
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Change in deferred taxes in 2024
EUR million
Value at
1 Jan 2024
Income
statement
OCI
Acquisitions/
disposals
Translation
difference
Value at
31 Dec 2024
Forest assets
-1,315
-117
69
-2
30
-1,335
Fixed assets
-83
61
0
0
5
-17
Financial instruments
-12
2
16
0
0
5
Untaxed reserves
-6
-1
0
0
0
-7
Pensions and provisions
3
-33
-5
0
-3
-38
Tax losses and tax credits carried
forward
112
50
0
-1
2
164
Other deferred taxes
3
17
0
0
-2
18
Total
-1,299
-22
81
-3
31
-1,211
Equity hedges and net investment
loans (CTA)
-3
3
Cash flow hedging
0
0
Change in deferred tax
-24
83
-3
31
Assets
1
134
205
Liabilities
1
-1,433
-1,416
1 Deferred tax assets and liabilities have been offset in accordance with IAS 12.
OCI = Other Comprehensive income, CTA = Cumulative Translation Adjustment
Change in deferred taxes in 2023
2
EUR million
Value at
1 Jan 2023
Income
statement
OCI
Acquisitions/
disposals
Translation
difference
Value at
31 Dec 2023
Forest assets
-1,267
-54
9
0
-4
-1,315
Fixed assets
-123
105
0
-62
-3
-83
Financial instruments
-10
-2
-1
0
0
-12
Untaxed reserves
-85
77
0
0
2
-6
Pensions and provisions
26
-34
9
0
1
3
Tax losses and tax credits carried
forward
74
40
0
0
-2
112
Other deferred taxes
15
-14
0
0
1
3
Total
-1,370
119
18
-62
-4
-1,299
Equity hedges and net investment
loans (CTA)
0
0
Change in deferred tax
119
18
-62
-4
Assets
1
74
134
Liabilities
1
-1,443
-1,433
1 Deferred tax assets and liabilities have been offset in accordance with IAS 12.
2 2023 restated due to reversal of held for sale classification.
OCI = Other Comprehensive income, CTA = Cumulative Translation Adjustment
The recognition of deferred tax assets is based on the Group’s estimations of future taxable profits available
against which the Group can utilise the benefits.
Non-recognised deferred tax assets on deductible temporary differences amounted to EUR 126 (97) million.¹ There is
no expiry date for these differences. Taxable temporary differences in respect of investments in subsidiaries,
branches and associates and interests in joint operations, for which deferred tax liabilities have not been
recognised amounted to EUR 440 (428) million.
Tax losses
Tax losses carried forward
Recognised tax values
Unrecognised tax values
1
EUR million
2024
2023
2024
2023
2024
2023
Expiry within five years
193
304
7
9
41
66
Expiry after five years
565
326
108
60
6
6
No expiry
1,199
1,213
48
42
208
219
Total
1,957
1,842
163
111
256
290
1 2023 restated due to reversal of held for sale classification.
At the end of 2024, tax losses of EUR 496 (259) million related to Finland. A deferred tax asset of EUR 99 (52) million
was recognised relating to these tax losses, as it is likely that future taxable profit will be available against which the
unused tax losses can be utilised before expiration. Despite losses in recent years in Finland, the Group has
considered in its assessment that the losses arise from identifiable causes unlikely to recur and that measures to
improve profitability are in place.
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Uncertain tax positions
At balance sheet date there were on-going tax audits in several
jurisdictions. It is not expected that any significant additional taxes in
excess of those already recorded for will arise as a result of these audits.
Impact of OECD Pillar Two model rules
The Group is within the scope of the OECD Pillar Two model rules as from 1
January 2024. The Group applies the exception to recognising and
disclosing information about deferred tax assets and liabilities related to
Pillar Two income taxes, as provided in the amendments to IAS 12.
The impact of the legislation to the Group’s average effective tax rate is
expected to vary from year to year. In 2024 current tax expense of EUR 41
million includes EUR 2 million Pillar Two top-up tax expense.
2.6 Earnings per share
Accounting principles
Basic earnings per share, attributable to the owners of the parent company, are
calculated by dividing the net result attributable to shareholders by the weighted
average number of ordinary shares in issue during the year, excluding ordinary
shares held by the Group as treasury shares. Diluted earnings per share are
calculated by adjusting the weighted average number of ordinary shares plus the
diluted effect of all potential dilutive ordinary shares, such as shares from share-
based payments.
Earnings per share
2024
2023
Net result for the period attributable to the owners of
the parent, EUR million
-136
-357
Weighted average number of A and R shares
788,619,987
788,619,987
Weighted average number of share awards
1,151,874
1,094,121
Weighted diluted number of shares
789,771,861
789,714,108
Basic earnings per share, EUR
-0.17
-0.45
Diluted earnings per share, EUR
-0.17
-0.45
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3 Employee remuneration
3.1 Personnel expenses
Personnel expenses
EUR million
2024
2023
Wages and salaries
926
962
Pension expenses
143
147
Share-based remuneration
2
4
Other statutory employer costs
135
139
Other voluntary costs
22
23
Total
1,228
1,275
Pension expenses
EUR million
2024
2023
Defined benefit plans
7
7
Defined contribution plans
137
140
Total
143
147
The average number of employees in 2024 amounted to 19,233 (20,822). Pension costs are discussed further in note
3.3 Post-employment benefit obligations.
In 2024, the expense of the share-based remuneration was EUR 2 (4) million. Share-based remuneration comprising
of share awards is described in more detail in note 3.4 Employee variable compensation and equity incentive
schemes. Remuneration of the Group Leadership Team and Board are described in note 3.2 Board and executive
remuneration.
3.2 Board and executive remuneration
Board and committee remuneration
2024
2023
EUR thousand (before taxes)
Cash
Value of
shares
1
Total
4
Total
Committee memberships
Board members at 31 December 2024
Kari Jordan, Chair
140
87
227
220
People and Culture, Nomination
2, 3
Håkan Buskhe, Vice Chair
79
49
129
125
People and Culture, Nomination
2, 3
Elisabeth Fleuriot
66
34
100
97
Financial and Audit
Helena Hedblom
57
34
90
88
Sustainability and Ethics
Astrid Hermann
66
34
100
97
Financial and Audit
Christiane Kuehne
61
34
95
93
Sustainability and Ethics
Richard Nilsson
80
34
114
104
Financial and Audit, Sustainability
and Ethics
Reima Rytsölä
57
34
90
—
People and Culture
Former Board members
Antti Mäkinen (until 20 March, 2024)
—
—
—
88
People and Culture
Hans Sohlström (until 18 September, 2023)
—
—
—
88
Sustainability and Ethics
Total remuneration as Directors
1
605
340
945
1,000
1 40% of the Board remuneration, excluding Committee remuneration, in 2024 was paid in Stora Enso R shares purchased from the market and distributed as follows: to Chair
6,806 R shares, Vice Chair 3,843 R shares, and members 2,638 R shares each. The Company has no formal policy requirements for the Board members to retain shares
received as remuneration.
2 Stora Enso’s Shareholders’ Nomination Board has been appointed by the AGM in 2016 to exist until otherwise decided. The Shareholders’ Nomination Board according to its
Charter as approved by the AGM comprises of four members: the Chair and Vice Chair of the Board of Directors, as well as two members appointed by the two largest
shareholders (one each) as of 31 August each year. No separate remuneration is paid to members of the Nomination Board.
3 Marcus Wallenberg, appointed by FAM AB, is Chair of the Nomination Board. Jouko Karvinen is the member of the Shareholders’ Nomination Board appointed by Solidium
Oy. Kari Jordan and Håkan Buskhe were appointed as members of the Shareholders’ Nomination Board in their roles as Chair and Vice Chair of the Board of Directors.
4 The Company additionally pays the transfer tax for share purchases for each member, in line with AGM decision, which amount is considered also taxable income for
each member.
Shareholders at the Annual General Meeting (AGM) have established a Shareholders’ Nomination Board to exist
until otherwise decided and to annually prepare proposals for the AGM’s approval concerning the number of
members of the Board of Directors, the Chair, Vice Chair and other members of the Board, as well as the
remuneration for the Chair, Vice Chair and members of the Board and its committees.
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Board share interests at 31 December 2024
Shares held (direct and indirect
ownership)
A
R
Board members at 31 December 2024
Kari Jordan, Chair
15,818
Håkan Buskhe, Vice Chair
15,912
Elisabeth Fleuriot
35,506
Helena Hedblom
8,994
Astrid Hermann
5,477
Christiane Kuehne
20,067
Richard Nilsson
1
127
32,845
Reima Rytsölä
2,638
Total shares held
127
137,257
1 Spouse holds 127 of A shares and 236 of R shares.
The following Board members also served in 2024
Shares held when Board
membership ended
(direct and indirect)
Effective date of Board
membership ending
Antti Mäkinen
19,415
20 March 2024
Group Leadership Team (GLT) remuneration and share interests
The following table includes the remuneration earned by GLT members during the year, including those shares with
performance conditions that have ended and are due to vest in the coming year. The Company recommends and
expects the CEO and GLT members to hold Stora Enso shares at a value corresponding to at least one annual base
salary. Stora Enso shares received as remuneration are therefore recommended not to be sold until this level has
been reached.
The aggregate cost of earned remuneration for the GLT in 2024 amounted to EUR 9 (12) million. The total number of
GLT members was 11 (11) at the year end in 2024.
In accordance with their respective pension arrangements, GLT members may retire at sixty-five years of age with
pensions consistent with local practices in their respective home countries. Employment contracts provide for six
months’ notice prior to termination, with severance compensation of twelve months basic salary if the termination
is at the Company’s request.
The outcome of the financial targets relating to the Short-term incentive programmes for the performance year
2024, and Long-term incentive programmes for the performance years 2022 to 2024 were reviewed and confirmed
by the People and Culture Committee and approved by the Board of Directors in February 2025.
Note 3.4 Employee variable compensation and equity incentive schemes includes details of incentive schemes
and share opportunity programmes for the management and staff of Stora Enso.
Group Leadership Team remuneration
2024
2023
EUR thousand
CEO
Others
2,5
GLT Total
CEO
Former
CEO
Others
GLT Total
Remuneration
1, 4
Annual salary
1,000
3,476
4,476
290
669
3,656
4,615
Local housing (actual costs)
—
2
2
—
—
3
3
Other benefits
—
940
940
—
26
263
289
Termination benefits
—
—
—
—
933
300
1,233
Short Term Incentive programme
3
640
1,187
1,827
—
157
1,024
1,181
Long Term Incentive programme
3
—
394
394
—
912
1,652
2,564
1,640
5,999
7,639
290
2,697
6,898
9,885
Pension costs
Mandatory plans
139
809
948
48
428
920
1,396
Stora Enso voluntary plans
—
636
636
—
—
730
730
139
1,445
1,584
48
428
1,650
2,126
Total compensation
1,779
7,444
9,223
338
3,125
8,548
12,011
1 The Finnish Corporate Governance code requires companies to report remuneration that is paid or due, and due to this the figures presented in the above table do not
directly reconcile with the amounts recognised as personnel expenses in the Income statement as presented in the below table Group Leadership Team remuneration in
Income statement.
2 Includes earnings related to Seppo Parvi until 31 October 2024, Ad Smit until 31 October 2024, Tuomas Hallenberg as of 15 October 2024 and Carolyn Wagner as of 1
November 2024.
3 Related to amounts due at year end, which will be paid in 2025. LTI value is calculated using the 30 December 2024 closing price of EUR 9.72 and forecasted LTI outcome as
after Q3/2024.. The final value of the vested shares will be approved after February 2025 and depend on the share price on vesting date 18 March 2025.
4 Remuneration for executives is disclosed only for the period during which they were GLT members.
5 Remuneration of GLT members decreased in 2024 compared to 2023 mainly due to the performance outcome of variable pay programmes. The average number of GLT
members during 2024 was 9.21.
Group Leadership Team remuneration in Income statement
2024
2023
EUR thousand
CEO
Others
GLT Total
CEO
Former
CEO
Others
GLT Total
Salaries and other short-term employee
benefits
1,640
5,605
7,245
290
852
4,946
6,088
Long Term Incentive programme
1
146
632
778
137
432
1,245
1,814
Post-employment benefits
2
139
1,445
1,584
48
428
1,650
2,126
Total recognised in Income statement
1,925
7,682
9,607
475
1,712
7,841
10,028
1 The costs of long-term incentive (LTI) programmes are recognised as costs over the three year vesting period based on the share price at grant date and the estimate of
equity instruments that will eventually vest.
2 Includes statutory and supplementary pension contributions.
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Executives other than CEO
Short term incentive (STI) programmes for management
In 2024, GLT members had STI programmes with up to a maximum of 70%
or 80% of their annual fixed salary, payable the year following the
performance period. 100% of the STI for 2024 was based on Group and
divisional financial measures.
Long-term incentive (LTI) programmes for management
The 2022, 2023 and 2024 programmes feature performance metrics with
one-year performance periods, which are accumulated after three years,
as well as three-year performance periods. All three programmes will be
settled in a single portion after three years, with the absolute maximum
vesting level being 100% of the number of shares granted. The 2022
programme pertains to the performance period 2022–2024, the 2023
programme to the performance period 2023–2025, and the 2024
programme to the performance period 2024–2026. The opportunity under
these programmes is in Performance Shares, with shares vesting in
accordance with performance criteria proposed by the People and
Culture Committee and approved by the Board of Directors.
During the year, the 2024 programme was launched, under which GLT
members (as of the year-end) can potentially receive a value
corresponding to 221,370 shares before taxes, assuming the maximum
vesting level during the three-year vesting period (2024–2026) is achieved.
The total number of shares actually transferred will be lower, as a portion
corresponding to the tax obligation will be withheld to cover income tax.
The fair value of employee services received in exchange for share-based
compensation payments is accounted for in a manner consistent with the
method of settlement, which is either cash or equity settled as described in
more detail in note 3.4 Employee variable compensation and equity
incentive schemes. For the equity-settled portion, it is possible that the
actual cash cost does not align with the accounting charges, as the share
price is not updated at the time of the vesting. The figures in the Group
Leadership Team Remuneration table refer to individuals who were
executives at year-end or during part of the year.
At the end of the year, the performance period for the 2022 programme
ended, and will be settled in one portion after three years, in March 2025,
depending on Earnings Per Share (EPS) for the Stora Enso Group, Relative
Total Shareholder Return (TSR) and ESG metrics (emission reduction and
diversity) . The outcome of the Performance Share programme will be
confirmed in the beginning of March 2025, once the relative TSR outcome
is confirmed. The maximum number of shares due to executives (GLT
members at year-end) from programmes that ended during 2024
amounted to 111,060 shares. The total number of shares actually transferred
will be based on the confirmed outcome and a portion corresponding to
the tax obligation will be withheld to cover income tax.
CEO
President & Chief Executive Officer – Hans Sohlström
The CEO has been employed by Stora Enso and assumed the position of
CEO on 18 September 2023. He has a notice period of six months, with a
severance payment of twelve months’ salary upon termination by the
Company, but no contractual payments in the event of change of control.
The CEO’s pension plan and retirement age are in accordance with the
Finnish statutory TyEL plan. The CEO has no supplementary pension plan.
Short-term incentive (STI) programme for CEO
The CEO is entitled to an STI programme with a maximum opportunity of
100% of the annual fixed salary for each 12-month period. The CEO STI plan
for the period Q4/2023– Q3/2024 resulted in an outcome of 64% and was
paid in 2024.
Long-term incentive (LTI) programme for CEO
As of 18 September 2023, a two-year CEO Performance Plan was initiated,
with a vesting date in Q4/2025. The CEO has the potential to receive a
value corresponding to a maximum of 169,420 shares before taxes. The
performance targets are related to the balance sheet, capital expenditure,
strategy, and sustainability. The CEO is not participating in the LTI 2023–25
or other potential LTI programmes that commenced during 2024.
Group Leadership Team share interests
R shares
held
1
Shares due
2025
2
Performance
share
opportunity
2026–2027
3
Restricted
share
opportunity
2026–2027
3
Total, Serving Officers
345,902
280,480
383,500
—
1 Direct and indirect ownership. None of the GLT members holds A shares.
2 Shares due to GLT member are gross of taxes for the LTI programmes with performance periods that ended
in 2024 and are due to be paid 2025. The Performance Share programme value is based on maximum earning
opportunity and final value will be available after February 2025. Some GLT members hold restricted shares in
the Restricted Shares programme that ended in 2024 and those shares are due to be paid 2025.
3 Potential shares to GLT members are gross of taxes for LTI programmes with performance periods that end
in 2025-2026 and are due to be paid 2026-2027.
3.3 Post-employment benefit obligations
Accounting principles
Employee benefits
The Group operates a number of defined benefit and contribution plans throughout
the world, the assets of which are generally held in separate trustee administered
funds. Such pension and post-retirement plans are generally funded by payments
from employees and by the relevant Group companies, taking into account the
recommendations of independent qualified actuaries. Employer contributions to
the defined contribution pension plans are charged to the consolidated income
statement in the year they relate to.
For defined benefit plans, accounting values are assessed using the projected unit
credit method. Under this method, the cost of providing pensions is charged to the
consolidated income statement to spread the regular cost over the service lives of
employees in accordance with the advice of qualified actuaries who carry out a full
valuation of the plan every year. The pension obligation is measured as the present
value of the estimated future cash outflows using interest rates of highly rated
corporate bonds or government securities, as appropriate, that match the currency
and expected duration of the related liability.
The Group recognises all actuarial gains and losses arising from defined benefit
plans directly in equity, as disclosed in its consolidated statement of
comprehensive income. Past service costs are identified at the time of any
amendments to the plans and are recognised immediately in the consolidated
income statement regardless of vesting requirements. The full liability for all plan
deficits is recorded in the Group’s consolidated statement of financial position.
Critical accounting estimates and judgement
The determination of the Group pension obligation and expense is subject to the
selection of certain assumptions used by actuaries in calculating such amounts,
including, among others, the discount rate, the annual rate of increase in future
compensation levels and estimated lifespans. Amounts charged in the income
statement are determined by independent actuaries; however, where actual
results differ from the initial estimates, together with the effect of any change in
assumptions or other factors, these differences are recognised directly in equity, as
disclosed in the statement of comprehensive income.
The Group’s pension expenses amounted to EUR 143 (147) million in 2024, as
shown in note 3.1 Personnel expenses. Pensions are classified as defined
contribution plans and defined benefit plans. The majority of the Group’s
pensions plans are defined contribution plans for which the charge
amounted to EUR 137 (140) million. The aim of the Group is to provide
defined contribution plans as its post-employment benefits.
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Net defined benefit obligation reconciliation
Defined
benefit obligation (+)
Fair value
of plan assets (-)
Net defined benefit obligation /
(asset)
EUR million
2024
2023
2024
2023
2024
2023
At 1 January
775
736
-578
-577
197
159
Current service cost
7
7
0
0
7
7
Settlements
-1
0
1
0
0
0
Interest expense (+) income (-)
29
27
-23
-22
6
5
Total included in income statement
35
34
-22
-22
12
12
Actuarial changes in demographic
assumptions
-1
1
0
0
-1
1
Actuarial changes in financial
assumptions
-3
31
0
0
-3
31
Actuarial changes from experience
adjustments
-7
19
0
0
-7
19
Return on plan assets
1
0
0
-16
-1
-16
-1
Asset ceiling impact
1
0
0
4
2
4
2
Total remeasurement gains (-) /
losses (+) included in OCI
-11
52
-12
0
-23
52
Benefit payments
-58
-56
47
45
-11
-12
Employer contributions and refunds
0
0
-13
-20
-13
-20
Translation difference
-6
3
4
-3
-2
0
Disposals and classification as held
for sale
0
6
0
-1
0
5
At 31 December
735
775
-574
-578
161
197
1 Excluding amounts included in interest expense (+) income (-)
In 2025, contributions of EUR 4 (22) million are expected to be paid to Group’s defined benefit plans.
Significant actuarial assumptions used in the valuation of defined benefit obligations
Finland
Germany
Sweden
2024
2023
2024
2023
2024
2023
Discount rate %
3.2
3.1
3.4
3.3
3.3
3.1
Future salary increase %
3.0
3.0
2.5
2.5
2.9
2.9
Future pension increase %
2.2
2.2
2.0
2.0
2.0
2.0
Duration of pension plans
8.0
8.0
9.8
8.8
13.8
12.7
Sensitivity of the defined benefit obligation
Impact on defined benefit obligation
Change in
assumption
Increase in
assumption
Decrease in
assumption
Discount rate
0.50 %
Decrease by 5.8%
Increase by 6.5%
Salary growth rate
0.50 %
Increase by 1.3%
Decrease by 1.3%
Pension growth rate
0.50 %
Increase by 5.0%
Decrease by 4.6%
Life expectancy
1 year
Increase by 3.5%
Decrease by 3.5%
The Group defines following actuarial risks associated with defined benefit plans:
Interest risk
The obligations are assessed using market rates of high-quality corporate or government bonds to discount the
obligations and are therefore subject to any volatility in the movement of the market rate. The net interest income
or expense recognised in profit and loss are also calculated using the market rate of interest.
Life expectancy
In the event that members live longer than assumed, the obligations may be understated originally and a deficit
may emerge if funding has not adequately provided for the increased life expectancy.
Defined benefit plan summary by country as at 31 December 2024
EUR million
Finland
Germany
Sweden
Other
Total
Present value of funded obligations
150
6
261
156
574
Present value of unfunded obligations
0
122
17
22
160
Defined benefit obligations (DBO)
150
128
278
178
735
Fair value of plan assets
-149
-5
-270
-149
-574
Net obligation in the balance sheet
1
123
7
29
161
Represented by
Defined benefit pension plans
1
123
7
8
140
Other post-employment benefits
0
0
0
21
21
Net obligation in the balance sheet
1
123
7
29
161
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Defined benefit plan summary by country as at 31 December 2023
EUR million
Finland
Germany
Sweden
Other
Total
Present value of funded obligations
167
5
277
151
600
Present value of unfunded obligations
0
131
20
23
174
Defined benefit obligations (DBO)
167
136
297
174
775
Fair value of plan assets
-160
-5
-271
-142
-578
Net obligation in the balance sheet
7
131
26
32
197
Represented by
Defined benefit pension plans
7
131
26
9
174
Other post-employment benefits
0
0
0
23
23
Net obligation in the balance sheet
7
131
26
32
197
Finland
In Finland, the employees are entitled to a statutory pensions benefit determined by the Employee Pension Act
(TyEL). These benefits are defined as contribution benefits. They are insured with an insurance company and
provide coverage for old age, disability, and death. The charge in the income statement from contribution benefits
is EUR 63 (62) million.
In addition, the Group has additional defined benefit plans which resulted in a charge of EUR 0 (0) million excluding
finance costs. Defined benefit plans and plan assets are managed by insurance companies. Details of the exact
structure and investment strategy surrounding plan assets are not available to participating employers, as the
assets actually belong to the insurance companies themselves. The assets are managed in accordance with EU
regulations, and also national requirements, under which there is an obligation to pay guaranteed benefits
irrespective of market conditions.
Germany
The German pension costs amounted to EUR 2 (3) million, of which EUR 2 (3) million related to defined contribution
plans and EUR 0 (0) million to defined benefits excluding finance costs. The net defined benefit obligation
amounted to EUR 123 (131) million.
Defined benefit pension plans are mainly accounted for in the statement of financial position through book
reserves with some minor plans using insurance companies or independent trustees. Retirement benefits are
based on the years worked and salaries received during the pensionable service, and the commencement of
pension payments are linked to the national pension scheme’s retirement age. Pensions are paid directly by the
companies themselves to their former employees. The security for the pensioners is provided by the legal
requirement that the book reserves held in the statement of financial position are insured up to certain limits.
Sweden
In Sweden, all blue-collar staff and part of the white-collar staff are covered by defined contribution plans, with a
charge of EUR 48 (50) million in the income statement. Defined benefit plans are covering the remaining white-
collar staff and resulted in a charge of EUR 3 (3) million, excluding finance costs. The net defined benefit obligation
amounted to EUR 7 (26) million. The decrease in the net obligation during the year is explained by the benefit
payments made during the year and changes in actuarial assumptions, especially from a slightly higher in
discount rate. Stora Enso has undertaken to pay all local legal pension obligations for the main ITP scheme to the
foundation, so the remaining obligation relates to other small plans. The long-term investment return target for the
foundation is a 3% real return after tax.
Other countries
The net defined benefit obligation in the remaining countries amounted to EUR 29 (EUR 32) million. The change in
net obligation arose mainly from changes in actuarial assumptions.
Plan assets
2024
2023
EUR million
Quoted
Unquoted
Total
% of total
Quoted
Unquoted
Total
% of total
Equity instruments
90
6
96
17%
89
7
96
17%
Debt instruments
67
29
96
17%
41
51
92
16%
Property
0
61
61
11%
0
62
62
11%
Cash
15
0
15
3%
5
0
5
1%
Assets held by insurance
companies
0
221
221
39%
0
228
228
39%
Others
0
85
85
15%
7
89
96
17%
Total pension fund assets
172
402
574
100%
142
436
578
100%
Plan assets do not include any real estate or other assets occupied by the Group or the Company's own financial instruments.
The two main financial factors affecting Group’s pension obligation are changes in interest rates and inflation
expectations. The aim of asset investment allocations is to neutralise these effects, secure solvency for benefit
payments and maximise returns.
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3.4 Employee variable compensation and equity
incentive schemes
Accounting principles
Share awards
The costs of all employee-related share-based payments are charged to the
consolidated income statement as personnel expenses over the vesting period.
All share-based payment transactions are classified as equity-settled share
awards. The equity-settled share awards (net of tax), are measured at the fair value
of the equity instruments on the grant date, and are adjusted for the present value
of expected dividends. The fair value of the equity-settled share-based payments
determined on the grant date is expensed on a straight-line basis over the vesting
period, based on the estimate of equity instruments that will eventually vest, with a
corresponding increase in equity.
Short term incentive (STI) programmes
Salaries for senior management are negotiated individually. Stora Enso
has incentive plans that take into account the performance, development
and results of both business units and individual employees. This
performance-based variable compensation system is based on
profitability as well as on attaining key business targets.
Group Executives, as well as division and business unit management have
STI programmes in which the payment is calculated as a percentage of
the annual base salary with a maximum level ranging from 35% to 100%.
Middle management and employees participate in an STI programme
with a maximum incentive level from 7% to 25%. All incentives are
discretionary. These performance-based programmes cover most
employees globally, where allowed by local practice and regulations. For
the performance year 2024, the annual incentive programmes were
based on financial measures and safety targets. The financial success
metrics in the STI programme 2024 are adjusted EBIT and operating
working capital.
Long term incentive (LTI) programmes
Since 2005, new share-based programmes for executives have been
launched every year. The 2022, 2023 and 2024 programmes feature a
performance metric with one-year performance periods, which are
accumulated after three years, as well as performance metrics with three-
years performance periods. All outstanding programmes will be settled in
a single portion after three years.
For the 2022 and 2023 plans, three quarters (75%) of the opportunity under
the programmes are in performance shares, where shares will vest in
accordance with performance criteria proposed by the People and
Culture Committee and approved by the Board of Directors. The financial
performance metrics for the 2022, 2023, and 2024 programme are 3-year
Earnings Per Share (EPS) for the Stora Enso Group and Relative Total
Shareholder Return (absolute TSR in 2024), which also feature ESG metrics
(emissions reduction and diversity). One quarter (25%) of the opportunity
under the programmes are in Restricted Shares, for which vesting is
subject to continued employment. For the 2024 plan, Restricted Shares
have been awarded only in exceptional cases. Members of the GLT have
been awarded only performance shares.
Outstanding restricted and performance share opportunities before taxes
are shown in the table below. The total number of shares actually
transferred will be less than that shown below because a portion of shares
corresponding to employees’ tax obligation will be withheld to cover
income tax.
Share awards at 31 December 2024
Outstanding restricted and performance share awards
at year end
Number of shares
2025
2026
2027
Total
2022 programme
608,011
608,011
2023 programme
937,080
937,080
2024 programme
1,125,160
1,125,160
Total
608,011
937,080
1,125,160
2,670,251
The costs of the Stora Enso share-based programmes are recognised as
costs over the vesting period, which is the period between the grant and
vesting. The total impact of share-based programmes in the income
statement amounted to an expense of EUR 2 (EUR 4) million, all of which
were related to restricted and performance share awards.
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Audited 158
4 Operating capital
4.1 Intangible assets, property, plant and equipment and
right-of-use assets
Accounting principles
Goodwill
Goodwill represents future economic benefits arising from assets that are not
capable of being individually identified and separately recognised by the Group on
an acquisition. Goodwill is computed as the excess of the cost of an acquisition over
the fair value of the Group’s share of the fair value of net assets of the acquired
subsidiary at the acquisition date and is allocated to those groups of cash
generating units expected to benefit from the acquisition. Goodwill arising on the
acquisition of non-euro foreign entities is treated as an asset of the foreign entity
denominated in the local currency and translated at the closing rate.
Goodwill is not amortised but tested for impairment on an annual basis, or more
frequently if there is an indication of impairment.
Other intangible assets
Intangible assets are stated at their historical cost and amortised on a straight-line
basis over their expected useful lives, which usually varies from 3 to 10 years and up
to 20 years for patents. An adjustment is made for any impairment. Intangible items
acquired must be recognised as assets separately from goodwill if they meet the
definition of an asset, are either separable or arise from contractual or other legal
rights, and their fair value can be measured reliably.
The cost of development or acquisition of new software clearly associated with an
identifiable asset that will be controlled by the Group and has a probable benefit
exceeding its cost beyond one year is recognised as an intangible asset and will be
amortised over the expected useful life of the software between 3 to 10 years.
Intangible assets recognised separately from goodwill in acquisitions consist of
marketing and customer-related or contract and technology-based intangible
assets. Typical marketing and customer-related assets include trademarks, trade
names, service marks, collective marks, certification marks, customer lists, order or
production backlogs, customer contracts and the related customer relationships.
Contract and technology-based intangible assets are normally licensing and
royalty agreements or patented technology and trade secrets, such as confidential
formulas, processes or recipes. The initial fair value of customer contracts and
related relationships is derived from expected retention rates and cash flow over
the customers’ remaining estimated lifetime using excess earnings method. The
initial fair value of trademarks is derived from a discounted cash flow analysis using
the relief from royalty method.
Property, plant and equipment
Property, plant and equipment acquired by Group companies are stated at their
historical cost, which are adjusted where appropriate by asset retirement costs.
Assets arising on the acquisition of a new subsidiary are stated at fair value at the
date of acquisition. Depreciation is computed on a straight-line basis and adjusted
for any impairment and disposal charges. The carrying amount represents the cost
deducted by received grants and subsidies and less the accumulated depreciation
and any impairment charges. Interest costs on borrowings to finance the
construction of assets are capitalised as part of the cost during the construction
period when the requirements are fulfilled.
Land and water areas are not depreciated, as these are deemed to have an
indefinite life, but otherwise depreciation is based on the following expected
useful lives:
Asset class
Depreciation
years
Buildings, industrial
10-50
Buildings, office & residential
20-50
Groundwood mills
15-20
Hydroelectric power
40
Paper, board and pulp mills, main machines
20-30
Heavy machinery
10-20
Converting factories
10-15
Sawmills
10-15
Computers
3-5
Vehicles
5
Office equipment
3-5
Railway, harbours
20-25
Forest roads
10-15
Roads, fields, bridges
15-20
Ordinary maintenance and repair charges are written as expensed when incurred,
but the costs of significant renewals and improvements are capitalised and
depreciated over the remaining useful lives of the related assets. Retirements, sales
and disposals of property, plant and equipment are recorded by deducting the cost
and accumulated depreciation from the accounting records with any resulting
terminal depreciation adjustments reflected in impairment charges in the
consolidated income statement. Capital gains are shown in other operating
income.
Spare parts are accounted for as property, plant and equipment if they are major
and used over more than one period, or if they are used only in connection with an
item of property, plant and equipment. In all other cases, spare parts are carried as
part of the inventory and recognised in profit or loss as consumed items.
Right-of-use (ROU) assets
At inception of a contract, the Group assesses whether a contract is, or contains, a
lease. A contract is, or contains, a lease if the contract conveys the right to control
the use of an identified asset for a period of time in exchange for consideration. ROU
assets are initially measured at cost, which comprises the initial amount of the
lease liability adjusted mainly for lease payments made at or before the
commencement date. The Group allocates the consideration in the contract to
each lease component and will separate non-lease components if these are
identifiable. Lease terms are negotiated on an individual basis and contain a wide
range of different terms and conditions.
The ROU assets are subsequently depreciated using the straight line method from
the commencement date to the earlier of the end of the lease term or the end of
the useful life of the ROU asset. In addition, the ROU asset is adjusted for certain
remeasurements of the lease liability.
The Group has elected not to recognise ROU assets for short-term leases that have
a lease term of 12 months or less and leases of low value assets. Leases of low value
assets mainly include IT and office equipment, certain vehicles and machinery and
other low value items. The Group recognises the lease payments associated with
these leases as an expense on a straight-line basis over the lease term, see note 2.2
Other operating income and expenses, for more information.
Critical accounting estimates and judgement
When assessing the lease term and if an extension or renewal options are included
or not, the Group considers all relevant facts, circumstances and incentives that
might have an impact on the assessment. Options to extend or renew the lease are
included in the lease term only if it is reasonably certain that Stora Enso will exercise
the option. The Group will do a reassessment, for example upon changes in
circumstances, receiving new information or an occurrence of a significant event
that is within the control of the lessee and might have an impact on the
assessment.
For more information about critical accounting estimates and judgement related
to valuation of intangible assets, property plant and equipment, right-of-use assets
and goodwill, please see note 2.3 Depreciation, amortisation and impairment
charges.
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Audited 159
Intangible assets
EUR million
Computer
software
Customer
relationships
and
trademarks
Other
intangible
assets
Assets in
progress
Goodwill
Total
Acquisition cost
At 1 January 2023
222
0
100
18
502
842
Translation difference
-1
0
-3
0
-3
-7
Reclassifications
5
0
0
0
0
5
Additions
15
206
6
18
349
594
Disposals
1
-1
0
106
0
0
105
At 31 December 2023
241
206
209
36
848
1,539
Translation difference
0
0
2
0
-1
1
Reclassifications
5
0
2
-13
0
-6
Additions
9
0
15
19
0
43
Disposals
1
-4
0
-7
0
0
-10
At 31 December 2024
251
206
222
42
847
1,567
Accumulated amortisation and impairment
At 1 January 2023
185
0
35
0
258
478
Translation difference
-1
0
-2
0
-1
-3
Disposals
1
-1
0
107
0
0
106
Amortisation
17
16
8
0
0
41
Impairment
6
0
14
3
85
109
At 31 December 2023
206
16
162
3
343
730
Translation difference
0
0
2
0
1
3
Reclassifications
-6
0
0
0
0
-6
Disposals
1
-3
0
-6
0
0
-9
Amortisation
14
16
7
0
0
37
Impairment
1
14
16
0
342
372
At 31 December 2024
212
45
181
3
685
1,127
Net Book Value at 31 December 2024
39
160
40
38
162
440
Net Book Value at 31 December 2023
35
190
47
32
505
809
1 Company disposals are included in Disposals line. Company disposals and classification of assets as held for sale are discussed in more detail in note 6.1 Acquisitions,
disposals and assets held for sale.
2023 restated due to reversal of held for sale classification. For more details see note 6.1 Acquisitions, disposals and assets held for sale.
Included in Customer relationships and trademarks, as part of the acquisition of De Jong Packaging Group, are customer-related
intangibles purchased with a carrying amount of EUR 133 million and a remaining amortisation period of 13 years, as well as marketing-
related intangibles of EUR 27 million with remaining amortisation periods ranging from 3 to 18 years.
Property, plant and equipment
EUR million
Land and
water
Buildings and
structures
Plant and
equipment
Other tangible
assets
Assets in
progress
Total
Acquisition cost
At 1 January 2023
103
3,041
10,909
393
454
14,900
Translation difference
1
-22
-17
-2
7
-32
Reclassifications
0
25
260
8
-298
-5
Reclassifications to biological assets
0
-2
-1
0
0
-3
Additions
5
77
434
14
583
1,113
Disposals
1
-1
-32
-495
-4
-1
-533
At 31 December 2023
109
3,087
11,089
410
745
15,440
Translation difference
0
18
-29
-4
1
-14
Reclassifications
195
-10
-56
1
-129
1
Reclassifications to biological assets
0
-3
-1
0
0
-4
Additions
1
25
291
2
555
874
Disposals
1
-199
-7
-79
-8
0
-292
At 31 December 2024
107
3,111
11,215
400
1,172
16,004
Accumulated depreciation and impairment
At 1 January 2023
2
1,804
7,882
336
16
10,040
Translation difference
0
-4
7
-1
0
1
Disposals
1
0
-31
-480
-4
0
-516
Depreciation
0
74
349
10
0
433
Impairments and reversals
0
133
488
5
1
628
At 31 December 2023
2
1,976
8,246
345
17
10,586
Translation difference
0
-5
-41
-3
0
-48
Reclassifications
195
-23
-164
-4
-1
2
Additions
0
1
0
0
0
1
Disposals
1
-198
-20
-72
-8
0
-298
Depreciation
0
64
334
9
0
408
Impairments and reversals
12
77
253
3
2
347
At 31 December 2024
11
2,071
8,557
342
18
10,998
Net Book Value at 31 December 2024
96
1,039
2,659
58
1,154
5,006
Net Book Value at 31 December 2023
107
1,111
2,843
65
728
4,854
1 Company disposals are included in the Disposals line. Company disposals and classification of assets as held for sale are discussed in more detail in note 6.1 Acquisitions,
disposals and assets held for sale.
2023 restated due to reversal of held for sale classification. For more details see note 6.1 Acquisitions, disposals and assets held for sale.
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Audited 160
Right-of-use assets
EUR million
Land and
water
Forest land
Buildings and
structures
Plant and
equipment
and other
Total
Acquisition cost
At 1 January 2023
105
243
96
113
556
Translation difference
-5
-14
-1
0
-19
Reclassifications to biological assets
0
-16
0
0
-16
Additions
0
5
188
14
207
Disposals
1
0
0
-22
-19
-41
Other changes
1
15
7
3
26
At 31 December 2023
101
233
268
111
712
Translation difference
3
9
-1
-2
9
Reclassifications to biological assets
0
-18
0
0
-18
Additions
5
5
53
13
76
Disposals
1
-1
0
-10
-14
-25
Other changes
-4
-7
7
-1
-4
At 31 December 2024
104
222
317
107
750
Accumulated depreciation and impairment
At 1 January 2023
10
22
49
56
138
Translation difference
-1
-1
0
0
-3
Disposals
1
0
0
-18
-18
-36
Depreciation
3
3
32
21
59
Impairment
28
0
3
2
33
At 31 December 2023
40
24
66
61
192
Translation difference
2
1
-1
-1
1
Disposals
1
-1
0
-9
-15
-24
Depreciation
2
3
31
19
56
Impairment
10
0
16
0
26
At 31 December 2024
53
28
104
65
250
Net Book Value at 31 December 2024
51
194
212
43
499
Net Book Value at 31 December 2023
61
209
201
49
521
1 Company disposals are included in the Disposals line. Company disposals and classification of assets as held for sale are discussed in more detail in note 6.1 Acquisitions,
disposals and assets held for sale.
2023 restated due to reversal of held for sale classification. For more details see note 6.1 Acquisitions, disposals and assets held for sale.
Stora Enso’s most material right-of-use assets capitalised consist of land areas used in forestry and industrial
operations, various machinery and equipment leases including operative machinery and logistic equipment, as
well as properties including offices, warehouses and other operative properties. Some of the leases contain
renewal options and extension options that are considered in the lease term if the Group is reasonably certain to
exercise the option.
See notes 5.3 Interest-bearing assets and liabilities for more details about lease liabilities and 2.2 Other operating
income and expenses for details about lease expenses included in the income statement.
Intangible assets and property, plant and equipment, and right-of-use asset additions
The total capital expenditure excluding investments in biological assets for the year amounted to EUR 1,009 (1,054)
million. Details of the ongoing projects and future plans are discussed in more detail in the Report of the Board of
Directors.
4.2 Forest assets
Accounting principles
Stora Enso’s forest assets are defined as standing growing trees, classified as biological assets, and related forest land. Biological
assets consist of standing trees to be used as raw material for pulp and mechanical wood production and as biofuels.
Forest asset valuation is based on continuous operations and sustainable forest management, while also taking into account
environmental restrictions and other reservations. Biological assets are recognised and valued in accordance with IAS 41
Agriculture at fair value, while forest land assets are recognised in accordance with IAS 16 Property, plant and equipment. Leased
forest land assets are presented as part of right-of-use assets in note 4.1 Intangible assets, property, plant and equipment and
right-of-use assets.
Nordic and plantation forest assets are classified as different asset classes due to their differing nature, usage, and
characteristics. The main difference is the short-term growing cycle of 6–12 years in plantations versus the long-term growing
cycle of 60–100 years in Nordic forests. There are also differences in regeneration methods, forest management, and the use of
assets for other purposes.
Nordic forest assets include holdings in Sweden and Finland, while plantation forest assets include holdings in China, Brazil and
Uruguay. Accounting policies for the different classes of forest assets are presented separately below. Additionally, the Group has
minor forest asset holdings in Estonia and Romania through the associate company Tornator. The Group holds forest assets in its
own subsidiaries in Sweden and China as well as in joint operations in Brazil and Uruguay, and in associate company in Finland.
Stora Enso also ensures that the Group’s share of the valuation of forest holdings in associated companies and joint operations is
consistent with Group accounting policies. At harvesting, biological assets are transferred to inventory.
Nordic forest assets
Forest assets in Sweden and Finland are recognised at fair value and valued using a market approach method based on forest
market transactions in the areas where Stora Enso’s forests are located. Stora Enso’s forest assets create value by securing wood
supply, increasing long-term yield, optimising land use and securing financial flexibility. They play an important role in mitigating
climate change impacts, as growing trees absorb CO2. The forest lands offer additional opportunities for future value streams,
such as wind power.
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Audited 161
The total forest assets value is calculated with verified inventory data and regional
standing stock prices, considering, among others:
• regional market transaction data based on the geographical locations of forest
assets,
• standing stock prices by forest cubic metre (m³ fo) combined from traded forest
estates and
• regional standing stock inventory.
Information relating to forest asset transactions is available from market data
suppliers. Stora Enso applies three-year (36-month) weighted average market
transaction prices which are considered to include a sufficient number of
transactions and are estimated to represent market conditions at the reporting
date. The market transaction information is viewed as market-corroborated inputs.
Certain adjustments are made to refine the market-corroborated inputs using
unobservable inputs; therefore, inputs are categorised based on Level 3 of the fair
value hierarchy.
The total value of the forest assets in the Nordics is allocated across biological
assets and forest land. The allocation of the combined fair value of forest assets is
based on the income approach where the present values of expected net cash
flows for both biological assets and forest land are calculated separately.
The discount rate is determined as the rate at which the valuation, based on market
transaction prices, matches the combined cash flows of total forest assets for
biological assets and forest land. The discount rate is estimated to be the same for
biological assets and forest land as the nature and timing of the cash flows
are similar.
Biological assets are measured at fair value in accordance with IAS 41. The fair value
is based on the income approach and the discounted cash flow method, whereby
the fair value of the biological assets is calculated using cash flows from continuous
operations, taking into account the growth potential of one cycle. Forest land is
measured at fair value using the revaluation method, as defined in IAS 16. The fair
value of forest land is measured based on the income approach, including net cash
flows related to trees to-be-planted in the future as well as other land related
income, such as wind power leases, hunting rights and soil material sales. The
valuation of forest assets owned through Tornator Oyj in Estonia and Romania is
based on the discounted cash flow method both for biological and land assets.
Changes in the fair value of biological assets are recognised in the income
statement. Changes in the fair value of forest land, net of deferred taxes, are
recognised in other comprehensive income (OCI) and accumulated in a
revaluation reserve in equity. The revaluation reserve is not recycled to the income
statement upon disposal. If the fair value of forest land were to be less than cost, the
difference would be recognised in the income statement as an impairment loss.
Plantation forest assets
In plantation forest areas, biological assets are recognised at fair value in
accordance with IAS 41 and based on the income approach in those areas where
the Group has forest land. Fair value measurement is based on Level 3 of the fair
value hierarchy. Forest land is measured initially and subsequently at cost, using the
cost model as defined in IAS 16.
The valuation of biological assets is based on the discounted cash flow method.
This method uses cash flows from continuous operations, incorporating sustainable
forest management, and taking into account growth potential of one cycle. The fair
value of biological assets is based on the productive forest land. The yearly harvest
from the forecasted tree growth is multiplied by wood prices and the cost of
silviculture and harvesting is deducted. The fair value of biological assets is
measured as the present value of the harvest from one growth cycle, taking into
consideration environmental restrictions and other reservations. The discount rate
applied is determined using the weighted average cost of capital method.
Young standing timber less than two years old (less than three years in Montes del
Plata) is considered to be an immature asset and accounted at cost. The fair value
approximates the cost when little biological transformation has occurred or the
impact of the transformation on the price is not expected to be significant. This
varies according to the location and species of the assets.
Changes in the fair value of biological assets are recognised in the income
statement. Forest land is measured at cost and not depreciated.
Critical accounting estimates and judgement
Biological assets
The fair value of biological assets is determined by using discounted cash flow
method. These discounted cash flows require estimates of growth, harvesting, sales
price, costs and discount rate. To determine the fair value of biological assets,
management must estimate future price levels and trends for sales and costs and
conduct regular surveys to establish the volumes of wood available for harvesting
and their current growth rates.
Nordic forest assets
The fair value of forest assets in the Nordics is determined using a market approach,
based on forest market transactions in the areas where Stora Enso’s forests are
located. Market prices between areas vary significantly and judgement is applied to
define relevant areas for market transactions used in valuation. The valuation of the
forest assets is based on detailed transaction data and price statistics provided by
market data suppliers. Judgement is applied when adjustments are made to
reflect the specific characteristics and nature of Stora Enso’s forest assets and to
exclude certain non-forest assets and outlier transactions. Stora Enso applies
three-year (36 month) weighted average market transaction prices, which are
considered to include a sufficient number of transactions and are estimated to
represent market conditions at the reporting date.
The value of the forest assets is allocated to biological assets and forest land. The
allocation of the combined fair value of forest assets is based on the income
approach where the present values of expected net cash flows for both biological
assets and forest land are calculated separately. The total net cash flows for each
component include estimates for future cash flows.
The value of forest assets disclosed in the consolidated statement of financial
position from subsidiary companies and joint operations amounts to EUR 7,227
(7,105) million as shown below. The Group’s indirect share of forest assets held by
associated company amounts to EUR 1,474 (1,417) million. The total forest asset value,
including leased forest land, amounts to EUR 8,894 (8,731) million.
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Audited 162
Forest assets
Biological assets
Forest land
2
Forest assets total
EUR million
2024
2023
2024
2023
2024
2023
Subsidiaries and joint operations
Value at 1 January
4,836
4,531
2,269
2,315
7,105
6,846
Translation differences
-132
2
-60
0
-192
2
Unrealised change in fair value
1
638
385
-281
-49
358
335
Additions
102
71
57
1
159
72
Disposals and classification as held
for sale
3
-6
4
-2
2
-9
6
Change due to harvesting
1
-208
-168
—
—
-208
-168
Other operative changes
1
-9
-7
—
—
-9
-7
Reclassification from PPE
22
20
—
—
22
20
Value at 31 December
5,243
4,836
1,983
2,269
7,227
7,105
Associated company
Tornator Oyj (41%)
1,335
1,287
139
130
1,474
1,417
Value at 31 December
1,335
1,287
139
130
1,474
1,417
Total
6,579
6,123
2,122
2,399
8,701
8,522
1 For biological assets, changes are presented in the profit and loss. For forest land, changes in fair value are recognised directly in equity.
2 Not including leased forest land.
3 2023 restated due to reversal of held for sale classification. For more details see note 6.1 Acquisitions, disposals and assets held for sale.
Valuation and standing stock of forest assets
As at
31 December 2024
Swedish
forests
Guangxi
Veracel
(50%)
MdP
(50%)
Tornator
(41%)
Total
Total area
Thousand ha
1,410
62
117
154
319
2,063
- of which owned
Thousand ha
1,410
—
103
111
319
1,944
- of which leased
Thousand ha
—
62
14
43
0
119
Productive area
Thousand ha
1,150
54
49
102
286
1,641
Total area
Standing stock
million m
3 fo.
1
155.9
4.2
6.8
16.0
34.1
217.0
Productive area
Standing stock
million m
3 fo.
1
153.7
4.2
6.8
16.0
33.8
214.6
Estimated
growth
million m
3 fo.
1
5.9
1.2
2.3
2.9
1.5
13.9
Harvesting
million m
3 fo.
1
-4.1
-1.1
-1.6
-2.4
-1.4
-10.5
Other changes
million m
3 fo.
1
2.1
-0.2
0.0
0.6
0.3
2.8
Harvesting
million m
3 u.b.
2
-3.4
-0.9
-1.3
-2.0
-1.1
-8.7
Biological assets
EUR million
4,577
189
118
358
1,335
6,579
Biological assets Productive area
EUR/ha
3,980
3,517
2,392
3,516
4,675
4,009
Forest land
EUR million
1,725
—
25
233
139
2,122
Total forest assets
EUR million
6,302
189
143
592
1,474
8,701
Leased forest land
EUR million
—
140
6
48
—
194
Total forest assets incl. leased land
6,302
329
150
639
1,474
8,894
1 Forest cubic meters
2 Solid under bark (sub) cubic meters
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Appendices
≡
Audited 163
As at
31 December 2023
Swedish
forests
Guangxi
Veracel
(50%)
MdP
(50%)
Tornator
(41%)
Total
Total area
Thousand ha
1,383
70
116
138
310
2,016
- of which owned
Thousand ha
1,383
—
104
95
310
1,892
- of which leased
Thousand ha
—
70
12
43
—
125
Productive area
Thousand ha
1,139
61
49
92
285
1,627
Total area
Standing stock
million m
3 fo.
1
151.9
4.3
6.1
15.0
33.7
210.8
Productive area
Standing stock
million m
3 fo.
1
149.7
4.3
6.1
15.0
33.4
208.4
Estimated
growth
million m
3 fo.
1
5.8
1.3
2.2
2.0
1.5
12.8
Harvesting
million m
3 fo.
1
-4.2
-1.2
-1.3
-2.3
-1.4
-10.5
Other changes
million m
3 fo.
1
-2.5
0.0
0.0
-0.3
0.6
-2.1
Harvesting
million m
3 u.b.
2
-3.5
-1.0
-1.1
-1.9
-1.1
-8.6
Biological assets
EUR million
4,239
184
124
288
1,287
6,123
Biological assets Productive area
EUR/ha
3,723
3,010
2,531
3,121
4,509
3,764
Forest land
EUR million
2,072
—
30
167
130
2,399
Total forest assets
EUR million
6,312
184
154
455
1,417
8,522
Leased forest land
EUR million
—
157
4
48
—
209
Total forest assets incl. leased land
6,312
341
158
504
1,417
8,731
1 Forest cubic metres
2 Solid under bark (sub) cubic metres
Subsidiaries and joint operations
At the end of 2024, forest assets (excluding leases) were located by value, in Sweden 87% (89%), China 3% (3%), Brazil
2% (2%) and Uruguay 8% (6%). The total area amounts to 1,744 (1,706) thousand hectares of which 7% (7%) is leased
and 0% (0%) is restricted. From Stora Enso’s total forest holdings 1,355 (1,341) thousand hectares constitutes
productive forest area. The Montes del Plata and Veracel amounts reflect the ownership share.
Swedish forests
At the end of 2024, the value of biological assets in Swedish forests amounted to EUR 4,577 (4,239) million, related
forest land amounted to EUR 1,725 (2,072) million and total forest assets amounted to EUR 6,302 (6,312) million.
Standing stock increased due to more accurate volume measurements in productive areas and a slight increase
in market prices had a positive impact on forest asset value, but due to negative foreign exchange impact, the
value of the forest assets decreased slightly. Biological assets increased due to increase in wood market prices but
increased discount rate had a negative effect on the value. Deferred tax liabilities related to forest assets
amounted to EUR 1,297 (1,297) million. The discount rate of 4.1% (3.8%) was applied in the valuation.
The productive area in Swedish forests amounted to 1,150 (1,139) thousand hectares with a standing stock of 153.7
(149.7) million forest m³. The weighted three-year (36 month) average market transaction price applied in the
valuation for Swedish forests assets in 2024 is EUR 41 (42) per forest m³. The forest asset value corresponds to an
average of EUR 5,480 (5,540) per hectare of productive forest area.
As explained in the section Critical accounting estimates and judgement, the valuation of forest assets is based on
detailed transaction data and price statistics as provided by different market data suppliers. Market transaction
data is adjusted to consider the characteristics and nature of Stora Enso’s forest assets and to exclude certain
non-forest assets and outliers. The valuation takes into account the location of the forest land, price levels and
volume of standing stock. Market prices vary significantly between areas. Future changes in the value of Swedish
forest assets will be influenced by changes in market transaction prices and changes in volume of standing stock,
considering growth and other factors.
Forest asset location and volume
2024
North
Middle
South
Total
Productive area
Thousand ha
191
959
0
1,150
Percentage of total
%
17 %
83 %
0 %
100 %
Standing stock
million m
3 fo.
1
17.6
136.1
0.0
153.7
Percentage of total
%
11 %
89 %
0 %
100 %
1 Forest cubic metres
2023
North
Middle
South
Total
Productive area
Thousand ha
186
953
0
1,139
Percentage of total
%
16 %
84 %
0 %
100 %
Standing stock
million m
3 fo.
1
16.9
132.8
0.0
149.7
Percentage of total
%
11 %
89 %
0 %
100 %
1 Forest cubic metres
Guangxi
At the end of 2024, the value of the biological assets in Guangxi, China, amounted to EUR 189 (184) million. All the
forest land in China is leased. In 2024 some of the lease contracts ended. The biological asset value increase is
mainly driven by capital expenditure, sales prices and foreign exchange impact, whereas harvesting depletion and
lower volume decreased the value. Biological assets included young standing timber with a value of EUR 30 (24)
million. The discount rate of 9.2% (9.7%) used in the discounted cash flows (DCF) decreased in 2024.
Veracel
Veracel is a 50% joint operation in Brazil. Stora Enso’s share of biological assets was EUR 118 (124) million. The
decrease is mainly caused by increased discount rate and weaker exchange rate, while higher prices and volume
increased the value. Biological assets included young standing timber with a value of EUR 33 (40) million. The
discount rate of 12.4% (10.2%) is used in 2024. The related forest land is measured at cost.
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Montes del Plata
Montes del Plata (MdP) is a 50% joint operation in Uruguay. Stora Enso’s
share of biological assets was EUR 358 (288) million. The increase is mainly
driven by acquisitions, higher wood price and stronger exchange rate.
Biological assets included young standing timber with a value of EUR 55
(48) million. The discount rate of 9.0% (9.0%) is used in the DCF in 2024. The
related forest land is measured at cost.
Associated company
Tornator
Tornator Oyj is a 41% owned Finnish associate company. Stora Enso’s share
of biological assets was EUR 1,335 (EUR 1,287) million, related forest land
amounted to EUR 139 (130) million, and total forest assets equalled to EUR
1,474 (1,417) million. The increase in the value of forest assets is mainly driven
by acquisitions and slightly higher market prices.
Stora Enso’s share of the productive forest area totals 286 (285) thousand
hectares with a standing stock of 33.8 (33.4) million forest m
3. The weighted
three-year (36 month) average market transaction price applied in the
valuation for forest assets located in Finland in 2024 is EUR 44 (42) per
forest m
3. The forest asset value in Finland corresponds to an average of
EUR 5,160 (4,960) per hectare of productive forest area.
Valuation sensitivities of significant assumptions
of a +/- 10% movement
EUR million
Wood market
prices
Growth rate
Discount rate
Guangxi
+/-32
+/-20
+/-3
Veracel
+/-11
+/-11
+/-3
Montes del Plata
+/-39
+/-39
+14/-13
Nordic forest asset valuation is sensitive to changes in market transaction
prices and volume of standing stock. A change in the average market
price of forest assets in Sweden of EUR 1 per forest m
3 would impact the
value of forest assets by EUR 154 (150) million. A change in the volume of
standing stock of 1 million forest m
3 would impact the value of forest assets
by EUR 41 (42) million.
4.3 Associates
Accounting principles
Associated companies over which Stora Enso exercises significant influence are
accounted for using the equity method. Stora Enso does not control associated
companies alone or jointly with other parties, but has significant influence. The
Group’s share of the associated companies profit or loss is recognised in the
consolidated income statement. The Group’s interest in an associated company is
carried in the consolidated statement of financial position at an amount that
reflects its share of the net assets of the associate together with goodwill. Goodwill
arising from the acquisition of an associated companies is included in the carrying
amount of the investment and is assessed for impairment as part of that
investment. There is no material goodwill in the carrying amount of associated
companies.
When the Group share of losses exceeds the carrying amount of an investment, the
carrying amount is reduced to zero and any recognition of further losses ceases
unless the Group is obliged to satisfy obligations of the investee that it has
guaranteed or which it is otherwise committed to.
The Group’s share of results in associated companies is reported in the operating
result to reflect the operational nature of these investments. Similarly, dividends
received from associated companies are presented in the net cash provided by
operating activities in the consolidated cash flow statement.
Principal associated company investments
Ownership
interest %
EUR million
Company
Reportable
segment
Domicile
and
principal
place of
operations
2024
2023
2024
2023
Tornator Oyj
Forest
Finland
41.00
41.00
922
892
Others
32
35
Carrying amount
954
926
Group share of associated companies income statements
EUR million
2024
2023
Sales
139
126
Net operating expenses
-80
-69
Biological asset valuation
14
121
Operating result
74
178
Net financial items
-14
-12
Net result before tax
60
166
Income tax
-10
-30
Net result for the year
52
136
The average number of personnel in the associated companies was 1,015
in 2024, compared with 1,046 in 2023.
A summary of the financial information, prepared in accordance IFRS, in
respect of the Group’s material associate, Tornator Oyj is set out below. The
Group’s share of Tornator Oyj is reported in the Forest division and covers
the majority of the Group’s total carrying amount of associated
companies.
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Tornator Oyj
EUR million
2024
2023
Forest assets
3,595
3,456
Other non-current assets
71
73
Current assets
134
102
Non-current liabilities
948
851
Current liabilities
141
146
Tax liabilities
460
459
Sales
221
194
Net result for the year
133
341
Other comprehensive income
12
-57
Total comprehensive income
145
284
Dividends received during the financial year
70
60
Net assets of the associate
2,250
2,175
Ownership interest
41.00 %
41.00 %
Carrying amount of the Group’s interest in
Tornator Oyj
922
892
The Group’s current 41% ownership in Tornator is valued at EUR 922 (892)
million at the year-end. The Group’s share of Tornator’s net profit was EUR
54 (140) million, including a biological asset valuation gain net of taxes of
EUR 12 (97) million.
Aggregate information of associated companies
that are not individually material
EUR million
2024
2023
Non-current assets
44
33
Current assets
16
13
Non-current liabilities
8
0
Current liabilities
20
11
Sales
49
47
Net result for the year
-2
-4
Dividends received during the financial year
0
0
Net assets of the associates
32
35
Associate company value
32
35
Associate company value for Tornator Oyj
922
892
Total associate company value
954
926
Associated company balances
EUR million
2024
2023
Receivables from associated companies
Non-current loan receivables
2
2
Trade receivables
5
2
Current loan receivables
10
0
Liabilities to associated companies
Trade payables
46
128
Associated company transactions
EUR million
2024
2023
Sales to associated companies
30
16
Purchases from associated companies
199
181
The Group engages in transactions with associated companies such as
sales and purchases of wood. All agreements are negotiated at arm’s
length and are conducted on terms that the Group considers customary
in the industry and generally no less favourable than would be available
from independent third parties.
4.4 Equity instruments
Accounting principles
The Group has elected to classify its equity investments in Pohjolan Voima shares
and certain listed shares held by the Group at fair value through other
comprehensive income (FVTOCI) under IFRS 9 by applying the irrevocable election
for equity instruments under the standard due to the long-term nature of the
ownership. The gains and losses resulting from changes in the fair value of equity
investments under FVTOCI are not recycled to the income statement upon
impairment or disposal, only the dividend income is recognised in the income
statement. In addition, the Group also has certain equity investments in unlisted
securities that are classified as fair value through income statement. The majority
of the Group’s equity instruments consist of investments in Pohjolan Voima Oyj
(PVO).
Critical accounting estimates and judgement
Where the fair value of financial assets and liabilities cannot be derived directly
from publicly quoted market prices, other valuation techniques, such as discounted
cash flow models, and Gordon model, are applied. Changes in the key assumptions,
such as future cash flow estimates, could affect the reported fair value of the
financial instruments. Investments in equity and debt instruments of unlisted
entities, such as Pohjolan Voima Oyj (PVO), represent a significant portion of the
Group’s assets and require management judgement, as explained in more detail
below.
Equity instruments
EUR million
2024
2023
1 January
819
1445
Change in fair value - OCI
-203
-645
Change in fair value - Income statement
0
0
Additions
0
18
Disposals
-3
0
Translation difference and other changes
-1
0
31 December
613
819
PVO shares
The Group holds a 16.1% (15.7%) interest in Pohjolan Voima Oyj (PVO), a public
limited company in the energy sector that produces electricity and heat
for its shareholders in Finland at cost-based and non-profit making
principle (Mankala-principle). Each subsidiary of the PVO group has its own
class of shares that, instead of dividends, entitle the shareholder to the
energy produced in proportion to its ownership of that class of share. Also,
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the shareholders then have an obligation to cover the costs of production,
which are generally lower than market prices. Stora Enso received EUR 3 (0)
million of dividends from PVO during 2024. The holding is fair valued using
the discounted cash flow method. The valuation is categorised at level 3 in
the fair value hierarchy. More details about these levels are included in
note 5.2 Fair values.
The electricity prices used in the valuation are based on market future
derivative prices for the first two years and on long-term electricity price
estimates for the years thereafter. The historical financial statements
provide the basis for the cost structure for each power asset and for future
periods, estimates from PVO shareholder information is used when
available and these are adjusted by inflation factor in future years. The
discount rate of 6.31% used in the valuation model is determined using the
weighted average cost of capital method. A +/- 5% change in the
electricity price used in the DCF would change the valuation by EUR +86
million and -86 million, respectively. A +/- percentage point change in the
discount rate would change the valuation by EUR -114 million and +151
million, respectively.
PVO’s shares are divided in different share series. The B and B2 series relate
to PVO’s shareholdings in Teollisuuden Voima Oyj (TVO), which operates
three nuclear plants in Finland (Olkiluoto 1–3).Stora Enso holds an indirect
share of approximately 8.9% of the capacity of the Olkiluoto 3 nuclear plant
unit through its PVO B2 shares.
PVO shareholding and other equity instruments 31 December 2024
EUR million
Share
Series
1
% Holding
Asset
Category
Fair value
2024
Fair value
2023
PVO
A
20.6
Hydro
191
226
PVO
B, B2
15.7, 14.8
Nuclear
378
546
PVO
C
10.9
Thermal
1
7
Total PVO
570
778
Other unlisted securities
31
32
Total unlisted securities
602
810
Listed securities (Packages Ltd)
6.4
11
9
Total Equity instruments
613
819
1 After the finalisation of winding down of their related operations, the share series C2, V and M were dissolved
during 2024.
The valuation of PVO in 2024 amounted to EUR 570 (778) million. The
decrease in PVO’s valuation is mainly due to a decrease in electricity price
estimates, netted with impact from lower discount rate. No deferred tax is
recognised, as under Finnish tax regulations, holdings above 10% are
exempt from tax on disposal proceeds.
4.5 Emission rights and other non-current assets
Accounting principles
The Group participates in the European Emissions Trading Scheme, with the aim of
reducing greenhouse gas emissions. The Group has been allocated allowances to
emit a fixed tonnage of carbon dioxide (CO2) over a fixed period of time, which are
recognised as intangible assets, government grants and as liabilities for the
obligation to deliver allowances equal to those emissions that have been made
during the compliance period.
Intangible assets related to emission allowances are measured at level 1 fair value
at the date of initial recognition. The liabilities to deliver allowances are recognised
based on actual emissions and are settled using allowances on hand and
measured at the carrying amount of those allowances. At the reporting date, if the
market value for the emission allowances is less than the carrying amount, any
surplus allowances that are not required to cover emissions made are impaired to
the market value.
The Group expenses emissions made at the grant date fair value, under materials
and services, together with purchased emission rights at their purchase price. Such
costs will be offset under other operating income by the income from the original
rights used at their grant date fair value. The consolidated income statement will,
thus, be neutral in respect to all the rights consumed that were within the original
grant of rights. Sales of excess emission allowances are recognised as income on
the delivery date. Any net effect represents the costs of purchasing additional rights
to cover excess emissions, or the sale of unused rights in case that the realised
emissions are below the allowances received free of charge or the impairment of
allowances that are not required for own use.
Emission rights
EUR million
2024
2023
Value at 1 January
108
123
Emission allowances allocated
110
146
Sales
-65
-64
Settlement with the government
-80
-98
Disposals and classification as held for sale
—
0
Value at 31 December
73
108
The liability to deliver allowances is presented in the consolidated
statement of financial position in line other operative liabilities. As of 31
December 2024, the liability to deliver allowances amounted to EUR 56 (79)
million as presented in note 4.8 Operative liabilities. The excess emission
rights held at the year end were valued at EUR 17 (28) million.
Other non-current assets
EUR million
2024
2023
Prepaid expenses and accrued income
21
25
Tax credit
3
4
Other non-current operative assets
28
29
Total
53
58
4.6 Inventories
Accounting principles
Inventories are reported at lower of cost and net realisable value with the cost
determined by the first-in first-out (FIFO) method or, alternatively, by the weighted
average cost where it approximates FIFO. The same cost formula is used for all
inventories having a similar nature and use to the Group. The cost of finished goods
and work in progress comprises raw material, direct labour, depreciation, other
direct costs and related production overheads, but excludes interest expenses. Net
realisable value is the estimated selling price in the ordinary course of business, less
the costs of completion and sale.
Where market conditions result in the manufacturing costs of a product exceeding
its net realisable value, a valuation allowance is made. Valuation allowances are
also made for old, slow moving and obsolete finished goods and spare parts when
needed. Such valuation allowances are deducted from the carrying value of the
inventories in the consolidated statement of financial position.
EUR million
2024
2023
Materials and supplies
468
403
Work in progress
73
62
Finished goods
829
808
Spare parts and consumables
325
322
Other inventories
26
30
Advance payments and cutting rights
85
66
Obsolescence allowance - spare parts and
consumables
-104
-102
Obsolescence allowance - finished goods
-12
-18
Net realisable value allowance
-20
-25
Total
1,672
1,545
2023 restated due to reversal of held for sale classification. For more details see note 6.1 Acquisitions, disposals
and assets held for sale.
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EUR 5,842 (6,271) million of inventories in total were expensed during the
year. EUR 23 (35) million of inventory write-downs were recognised as an
expense. EUR 26 (55) million were recognised as a reversal of previous
write-downs.
4.7 Operative receivables
Accounting principles
Trade receivables
Trade receivables are recognised initially at fair value and subsequently at their
anticipated realisable value with an estimate made for loss allowance on expected
credit losses based on a forward-looking and objective review of all outstanding
amounts at period end. A simplified approach under IFRS 9 has been implemented
for trade receivables and loss allowances are recognised based on expected
lifetime credit losses in the consolidated income statement within other operating
expenses. For non-defaulted receivables, expected credit losses are estimated
based on externally generated customer level probability of default data that is
used in the forward-looking loss allowance calculation model. The loss allowance
model for non-defaulted receivables also takes into account a macroeconomic
indicator that considers the macroeconomic developments and further
incorporates forward-looking data to the calculation model. The rebuttable
presumption that default does not occur later than when a financial asset is 90
days past due has been applied in the calculation model and a default is normally
estimated to occur when trade receivables are at least 90 days overdue or there is
otherwise objective evidence supporting the conclusion that a default has
occurred. Trade receivables will be written off and booked as a credit loss only with
the court’s decision of bankruptcy or in some other cases when there is objective
evidence supporting the write-off. Trade receivables are presented in current
assets under operative receivables in the consolidated statement of
financial position.
Trade receivables under factoring arrangements
Stora Enso uses factoring arrangements as one of the working capital
management tools. Sold trade receivables are derecognised once significant
related risks and rewards of ownership have been transferred to the buyer.
Outstanding balances for trade receivables that were not yet sold at period end but
qualify to be sold under factoring programmes in the next period, are classified as
trade receivables fair valued through other comprehensive income in accordance
with the business model and contractual cash flow characteristics tests under IFRS
9. Please refer to note 5.2 Fair values for further details.
Current operative receivables
EUR million
2024
2023
Trade receivables - gross carrying amount
688
939
Loss allowance
-20
-27
Prepaid expenses and accrued income
87
80
Other receivables
214
247
Total
969
1,239
2023 restated due to reversal of held for sale classification. For more details see note 6.1 Acquisitions, disposals
and assets held for sale.
Age analysis of trade receivables
EUR million
2024
2023
Not overdue
619
841
Less than 30 days overdue
39
57
31 to 60 days overdue
1
1
61 to 90 days overdue
0
3
91 to 180 days overdue
1
1
Over 180 days overdue
27
36
Total
688
939
As at 31 December 2024, a gross amount of EUR 69 (98) million of trade
receivables were overdue. These relate to a number of countries and
unrelated customers that have no recent history of default. At 31
December 2024, lifetime expected credit losses for trade receivables
amounted to EUR 20 (27) million. Loss allowances for trade receivables are
estimated on an individual basis based on a forward-looking model where
estimated probabilities of customer default are used in the calculation
model. If the Group has concerns regarding the financial status of a
customer, an advance payment or an irrevocable letter of credit drawn
from a bank is required. At the year end, the letters of credit awaiting
maturity totalled EUR 48 (54) million. Please refer to note 5.1 Financial risk
management for details of customer credit risk management.
Age analysis of loss allowance
EUR million
2024
2023
Not overdue and less than 90 days overdue
1
2
91 to 365 days overdue
1
2
Over 365 days overdue
17
23
Total
20
27
Reconciliation of loss allowance
EUR million
2024
2023
Opening balance at 1 January
27
32
Change in loss allowance booked through income
statement
3
9
Write-offs
-10
-15
Other
0
1
Closing balance at 31 December
20
27
The actual credit losses during 2024 amounted to EUR 10 (15) million of
trade receivables being written-off from the Group’s balance sheet.
Stora Enso has entered into factoring agreements to sell trade receivables
in order to accelerate cash conversion. These agreements resulted in full
derecognition of trade receivables amounting to a nominal value of EUR
414 (178) million at the end of the year. The continuing involvement of Stora
Enso in the sold receivables was estimated as being insignificant due to
the non-recourse nature of the factoring arrangements involved.
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4.8 Operative liabilities
Non-current operative liabilities
EUR million
2024
2023
Share-based payments
1
2
Other payables
9
9
Total
10
11
Current operative liabilities
EUR million
2024
2023
Trade payables
1,781
1,666
Payroll and staff-related accruals
224
227
Accrued liabilities and deferred income
114
122
Emission liabilities
56
79
Advances received
15
18
Other payables¹
107
99
Total
2,296
2,211
1 Other payables consist especially of taxes payable to government, such as VAT and payroll taxes.
2023 restated due to reversal of held for sale classification. For more details see note 6.1 Acquisitions, disposals
and assets held for sale.
In 2024, EUR 16 million of grants were paid back to the authorities in Belgium, as a result of a 2019 legionella-
related incident being considered as an environmental infringement.
Supplier Chain Finance arrangements
Stora Enso has entered into several supply chain finance agreements.
Supply chain finance arrangements are recognised as trade payables
and are not reclassified after initial recognition.
Supply chain finance arrangements have the following terms and
conditions:
Suppliers offered chance to join the programme, either as part of contract
negotiations or during the contract period to update the terms the
agreement. This is a trade payable programme where invoices are paid to
the bank under the same payment terms that Stora Enso has agreed upon
with the supplier, while the bank pays the supplier early for the invoice
according to the arrangement. The bank conducts negotiations for the
supplier’s participation in the programme, with Stora Enso acting as an
agent to connect the two parties. The only cost to the supplier is the early
payment of invoices. The programme is funded on a non-recourse basis
by the funder, and the supplier predominantly bears the cost of the
discounting in the programme. In some individual contracts the supplier
pays for the discounting in the programme, but charges this cost back to
Stora Enso. These individual contracts are still classified as trade payables.
No joint and several liability clause is included in the programme, with all
invoices treated the same in Stora Enso’s subsidiaries.
EUR million
2024
SCF presented within trade payables
254
Of which suppliers have received payment
236
Range of payment due dates
Days after invoice date
2024
Trade payables that are part of an arrangement
60-180
Comparable trade payables that are not part of an arrangement
60-120
There were no material non-cash changes that would have caused
changes in the carrying amounts.
4.9 Provisions
Accounting principles
Provisions are recognised when the Group has a present legal or constructive
obligation as a result of past events, and it is probable that an outflow of resources
will be required to settle the obligation, and a reliable estimate of the amount of the
obligation can be made. Provisions are measured at the management’s best
estimate and there is some uncertainty regarding the timing and amount of the
costs. Provisions for obligations to dismantle, remove or restore assets after their
use are added to the carrying amount of the assets at acquisition date and
depreciated over the useful life of the asset. Provisions are discounted to their
current net present value if the effect of the time value of money is material.
Environmental provisions
Environmental expenditures resulting from the remediation of an existing condition
caused by past operations, and which do not contribute to current or future
revenues, are recognised as provisions. Environmental provisions are recorded
when it is probable, based on current interpretations of environmental laws and
regulations, that a present obligation has arisen and the amount of such liability
can be reliably estimated.
Restructuring provisions
A restructuring provision is recognised in the period in which the Group becomes
legally or constructively committed to the plan. The relevant costs are those that
are incremental to, or incurred as a direct result of, the exit plan, or are the result of
a continuing contractual obligation with no ongoing economic benefit, or represent
a penalty incurred to cancel the obligation.
Other provisions
Other provisions are recognised regarding different legal or constructive
obligations, such as reforestation, onerous contracts, ongoing lawsuits, claims, or
similar.
Critical accounting estimates and judgement
The amounts recognised as provisions are based on the management’s best
estimate of the costs required to settle the obligation. Due to uncertainty regarding
the timing and amount of these costs, the actual costs might differ significantly
from the original estimate. The carrying amounts of provisions are reviewed
regularly and adjusted when needed to consider changes in cost estimates,
regulations, applied technologies and conditions.
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Provisions
EUR million
Environ-
mental
provisions
Restructuring
provisions
Other
provisions
Total
provisions
Carrying Value at 1 January
2023
73
21
30
124
Translation difference
0
0
1
1
Disposals and classification as
held for sale
3
0
0
3
Charge in Income Statement
New provisions
7
89
12
107
Increase in existing provisions
4
4
1
8
Reversal of existing provisions
-16
-7
0
-22
Payments
-9
-31
-14
-54
Carrying Value at 31 December
2023
63
77
28
168
Translation difference
-1
0
-2
-3
Disposals and classification as
held for sale
0
-1
0
-1
Charge in Income Statement
New provisions
2
42
10
55
Increase in existing provisions
14
2
0
16
Reversal of existing provisions
-3
-14
0
-17
Payments
-8
-80
-12
-100
At 31 December 2024
67
26
25
118
Allocation between current and
non-current provisions
Current provisions: Payable
within 12 months
5
21
11
37
Non-current provisions: Payable
after 12 months
62
5
14
81
Total at 31 December 2024
67
26
25
118
The Group has undergone major restructuring in recent years, from
divestments to mill closures and administrative cost-saving programmes.
The obligation at the end of 2024 amounted to EUR 26 (EUR 77) million for
restructuring provisions and EUR 25 (EUR 28) million for other provisions.
Material payments in 2024 in restructuring provisions are mainly related to
the divestment of De Hoop BV in Netherlands, as announced in December
2024, and to the profit improvement programme. The most material
restructuring provision included in the ending balance of 2023 is EUR 35
million related to closing down the De Hoop containerboard site in the
Netherlands.
The most significant environmental provision is based on an agreement
between Stora Enso and the City of Falun that obligates the Group to purify
runoff from the Kopparberg mine before releasing the water into the
environment. The provision at year end amounted to EUR 27 (EUR 27) million.
The most material case in other provisions is related to an obligation in
some Nordic countries to take care of reforestation within a specified time
after final harvesting.
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5 Capital structure and financing
5.1 Financial risk management
Risk management principles and process
Stora Enso is exposed to several financial market risks that the Group is
managing under the policies approved by the Board of Directors. The
objective is to ensure cost-effective funding of Group companies and
manage financial risks effectively. The Stora Enso Group Financial Risk
Policy governs all financial transactions in Stora Enso. This policy and any
future amendments take effect once they are approved by the Board of
Directors and all policies covering the use of financial instruments must
comply with it. The Group’s joint operations companies operate under their
own financial risk policies, which may not be fully similar to the Group’s
policies.
The major financial market risks are detailed below with the main
exposures for the Group being interest rate risk, currency risk, liquidity risk,
refinancing risk, and commodity price risk, especially for fiber, pulp,
and energy.
Interest rate risk
The Group is exposed to an interest rate risk that is the risk of fluctuating
interest rates affecting the interest expense of the Group and value of its
assets and liabilities. Stora Enso is exposed to the interest rate risk through
interest-bearing assets and liabilities, such as loans, financial instruments
and lease liabilities, but also through commercial agreements and
operative assets and liabilities such as biological assets. The Group’s aim is
to keep interest costs stable. The Group’s aggregate duration should not
exceed the average loan maturity, but should aim towards a long duration.
A duration above the average loan maturity is approved by the Board
of Directors.
The Group may use interest-rate swaps and cross-currency swaps to
manage the interest-rate risk by synthetically converting floating-rate
loans into fixed-rate loans through the use of derivatives. The Group’s
floating and fixed rate interest-rate position as per the year-end is
presented in the following table. The table includes the respective assets
and liabilities classified as held for sale.
Floating and fixed interest-rate position
As at
31 December 2024
As at
31 December 2023
EUR million
Floating
rate
Fixed rate
Floating
rate
Fixed rate
Non-current interest-bearing
receivables
1
1
8
11
51
Current interest-bearing
receivables
1
4
28
1
14
Cash and cash equivalents
1,999
—
2,464
—
Interest-bearing liabilities
2
-1,747
-3,928
-1,718
-3,998
Interest-bearing assets and
liabilities excluding interest rate
derivatives
258
-3,892
758
-3,934
Interest-rate and cross-currency
swaps
346
-346
488
-488
Interest-bearing assets and
liabilities, net of interest rate
derivatives
604
-4,238
1,246
-4,422
1 Excluding interest receivable, listed securities, and derivative assets
2 Non-current interest-bearing liabilities, current portion of non-current debt, short-term interest bearing
liabilities and bank overdrafts excluding derivative liabilities and interest payable
2023 figures have been restated.
The average interest duration for the Group’s net interest-bearing
liabilities, including all interest rate derivatives but excluding cash and
cash equivalents, is 2.5 (2.7) years.
As of 31 December 2024, one percentage point increase in interest rates
would increase annual net interest expenses by approximately EUR 7
(EUR 10) million and a similar decrease in interest rates would decrease net
interest expenses by EUR 7 (EUR 10) million. This assumes that the duration
and the funding structure of the Group remain constant throughout the
year. This simulation calculates the interest effect of a 100 basis point
parallel shift in interest rates on all floating rate instruments excluding
cash equivalents from their next reset date to the end of the year. In
addition, all short-term loans maturing during the year are assumed to be
rolled over on maturity to year end using the new higher or lower
interest rate.
A one percentage point parallel change up or down in interest rates would
also result in fair valuation gains or losses of EUR 3 (EUR 6) million before
taxes in the cash flow hedge reserve in OCI regarding interest rate swaps
under cash flow hedge accounting. Note 5.4 Derivatives summarises
the nominal and fair values of the outstanding interest rate
derivative contracts.
Foreign exchange risk – transaction risk
The Group operates globally and is exposed to a foreign-currency
transaction risk arising from exchange rate fluctuations. Foreign exchange
transaction risk exposure comprises both the geographical location of
Stora Enso production facilities around the world, sourcing of raw materials
and sales of end products in foreign currencies, mainly denominated in US
dollars, British pounds and Swedish crowns. Stora Enso Group companies
with functional currency other than euro are also exposed to a foreign-
currency transaction risk arising from EUR denominated net cash flows.
These EUR exposures mainly arise from Stora Enso subsidiaries located in
Sweden, Czechia and Poland.
The currency transaction risk is the impact of exchange rate fluctuations
on the Group’s Income statement, which is the effect of currency rates on
expected future cash flows and subsequent trade receivables or payables.
The Group’s standard policy to mitigate the risk is to hedge 15–60% of the
highly probable forecast cash flows in major currencies for the next 12
months by using derivative financial instruments, such as foreign
exchange forwards and foreign exchange options. The Group may also
hedge periods between 12 months and 36 months, or change the above
mentioned hedging ratio for the next 12 months upon the discretion of the
Group’s management.
For operative receivables and payables in foreign currencies, the objective
is to hedge 50–100% of the outstanding net receivable balance in major
currency pairs.
The table below presents the estimated net operative foreign currency
transaction risk exposures for the main currencies for the next 12 months
and the related foreign-currency hedges in place as at 31 December,
retranslated using year-end exchange rates.The net operative receivables
and payable exposures, representing the balances as at 31 December,
include foreign currency exposures generated by external and
intercompany transactions in line with the requirements of IFRS 7. A
positive amount of exposure in the table below represents an estimated
future inflow or receivable of a foreign currency amount.
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Operative foreign currency transaction risk exposure
As at
31 December 2024
As at
31 December 2023
EUR million
EUR
SEK
USD
GBP
AUD
UYU
EUR
SEK
USD
GBP
AUD
UYU
Estimated annual net cash flow exposure in
hedged foreign-currency flows
1
792
-321
1,580
158
73
-46
674
-278
1,446
126
63
-48
Cash flow hedges for the next 12 months
-436
206
-737
-38
-20
32
-394
188
-632
-34
-15
27
Estimated annual net cash flow exposure,
net of hedges
356
-115
843
120
54
-14
280
-90
814
93
47
-21
Hedging percentage as at 31 December for
next 12 months
55 %
64 %
47 %
24 %
27 %
69 %
58 %
68 %
44 %
27 %
25 %
57 %
Weighted-average hedged rate against EUR
2
11.42
1.11
0.84
1.64
43.74
11.57
1.10
0.87
1.66
45.07
Operative receivables and payables net
exposure
-87
-40
49
17
42
-4
-38
-23
181
18
18
-5
Net receivable currency hedges
34
6
6
-10
-22
—
-7
7
-119
-15
-20
—
Net operative receivables exposure, net of
hedges
-54
-34
55
7
19
-4
-45
-15
62
3
-2
-5
Estimated annual net transaction risk
exposure after hedges
302
-149
898
127
73
-18
235
-105
876
96
46
-26
1 Cash flows are forecasted highly probable net operating foreign-currency cash flows in hedged currencies. The exposure presented in the EUR column relates to operative
transaction risk exposure from EUR denominated cash flows in Group companies located in Sweden, Czechia and Poland with functional currency other than EUR.
2 The weighted-average exchange rate against EUR is calculated based on bought leg of option collar structure and forward contracts’ forward rate and therefore
represents the weighted-average hedged rate based on the least favourable hedged rate from the Group’s point-of-view.
In addition, the Group hedge estimated net operative foreign currency exposures in SEK and USD for the period
between 12 and 24 months. Cash flow hedges outstanding at the reporting date was EUR 130 million for SEK
exposures and EUR -96 million for USD exposures. A calculated 5% weakening of exposure currencies would result in
a EUR -6 million (SEK hedges) and EUR 5 million (USD hedges) effect on cash flow hedging OCI reserve at year end.
The following table includes the estimated effect on the annual operating result of a weakening of an exposure
currency against the functional currencies of exposed subsidiaries. The sensitivities have been calculated based
on a 5% movement in EUR, SEK, USD, GBP and AUD while 10% movement in UYU. These changes are estimated as
reasonably possible changes in exchange rates, measured against year-end closing rates. A corresponding
strengthening of the exposure currency would have an approximately equal opposite impact. A negative amount
in the table reflects a potential net loss in the income statement or equity and, conversely, a positive amount
reflects a potential net gain. In practice, the actual foreign currency results may differ from the sensitivity analysis
presented below, since the income statements of subsidiaries with functional currencies other than the euro are
translated into the Group reporting currency using the average exchange rates for the year, whereas the
statements of the financial position of such subsidiaries, including currency hedges, trade receivables and
payable, are translated using the exchange rates at the reporting date. The translation risk exposures are
discussed more in detail under the Translation risk chapter below.
The calculation includes currency hedges and assumes that there are no changes in other underlying currencies.
The currency effects are based on estimated operative foreign currency flows for the next twelve months, hedging
levels at the year end, and the assumption that the currency cash flow hedging levels and all other variables will
remain constant during the next twelve months. Hedging instruments include foreign exchange forward contracts
and foreign exchange options. Indirect currency effects with an impact on prices and product flows, such as a
product becoming cheaper to produce in a different geographical location, have not been considered in this
calculation.
Sensitivity analysis of operative foreign currency transaction risk exposure
As at
31 December 2024
As at
31 December 2023
EUR million
EUR
SEK
USD
GBP
AUD
UYU
EUR
SEK
USD
GBP
AUD
UYU
Exposure currency change by
1
-5 %
-5 %
-5 %
-5 %
-5 %
-10 %
-5 %
-5 %
-5 %
-5 %
-5 %
-10 %
Effect on estimated annual net cash flows in
hedged flows
-40
16
-79
-8
-4
5
-34
14
-72
-6
-3
5
Effect on cash flow hedging OCI reserve
before taxes as at year end
2
22
-10
37
2
1
-3
20
-9
32
2
1
-3
Effect on net operative receivables and
payables after hedges
3
3
2
-3
—
-1
—
2
1
-3
—
—
1
Estimated annual EBIT impact
4
-15
7
-45
-6
-4
2
-12
5
-44
-5
-2
3
1 The sensitivity analysis for EUR denominated annual net cash flows, operative net receivables and related hedges refer to the EUR denominated transaction risk arising
from EUR denominated foreign-currency cash flows in Sweden, Czechia and Poland with functional currency other than EUR.
2 The effect on OCI cash flow hedging reserve before taxes at year end is related to the fair value change in derivative contracts qualifying as cash flow hedges of highly
probable forecast transactions under IFRS 9. Amount effecting OCI will be recycled to operative result when the transaction realises.
3 Currency effect related to net operative receivables or payables and related hedges.
4 The estimated annual EBIT impact includes currency effects in respect of operative exposures in the Statement of Financial Position, forecast cash flows and the related
hedges.
The following table presents the financial foreign currency exposure and the related hedges in place as at 31
December for the main currencies. Net debt includes foreign-currency external loan payables and receivables,
foreign-currency internal loan payables and loan receivables and cash equivalents. Loans designated as net
investment loans under IAS 21 are excluded from the table as they reduce the foreign-currency exposures on a
Group level. Internal transaction exposure includes foreign-currency payables and receivables outstanding within
the Group at reporting date. The currency derivatives mainly hedge financial exposures in the statement of
financial position. A negative amount of exposure in the table represents a net payable of a foreign currency
amount.
Additionally, the table includes the estimated effect on the income statement of a currency weakening of an
exposure currency against EUR. The sensitivities have been calculated based on a 5% movement in SEK, USD, CNY,
PLN, and CZK. These changes are estimated as reasonably possible changes in exchange rates, measured against
year-end closing rates. A corresponding strengthening of the exposure currency would have an approximately
equal opposite impact. A negative amount in the table reflects a potential net loss in the Income statement and,
conversely, a positive amount reflects a net potential gain. In practice, the actual foreign currency results may
differ from the sensitivity analysis below as the exposure amounts may change during the year.
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Financial foreign currency exposure and estimated currency effects in income statement
As at
31 December 2024
As at
31 December 2023
EUR million
SEK
USD
CNY
PLN
BRL
CZK
SEK
USD
CNY
PLN
BRL
CZK
Foreign-currency net debt
1
256
-151
141
-11
80
30
140
-121
185
-3
44
24
Currency hedges
-257
-53
—
-11
—
-29
-158
-5
—
-5
—
-21
Net exposure after hedges
-2
-204
141
-22
80
1
-18
-126
185
-8
44
3
Internal transaction exposure
3
-6
—
137
13
—
Currency hedges
—
—
—
—
—
—
Net non-operative exposure
3
-6
—
137
13
—
Exposure currency change by
-5 %
-5 %
-5 %
-5 %
-5 %
-5 %
-5 %
-5 %
-5 %
-5 %
-5 %
-5 %
Effect in the Income Statement
2
—
10
-7
1
-4
—
-6
6
-9
-1
-2
—
1 The Group has designated certain internal loans to Chinese subsidiaries as net investment loans under IAS 21. The loans are denominated in EUR, USD, and CNY. The
underlying foreign currency gain or loss will be posted as part of CTA in Equity. The nominal amount of net investment loans amounted to EUR 620 (EUR 591) million as per
the year end and reduces the currency exposure for relevant currencies in the above table.
2 Gains and losses are recognised as part of Net financial items in the Income Statement
Foreign exchange risk – translation risk
Translation risk results from fluctuations in exchange rates affecting the value of Stora Enso’s consolidated net
foreign currency denominated assets, liabilities, and income. Translation risk is reduced by funding assets,
whenever economically possible, in the same currency as the asset itself. The Group may also enter into foreign
exchange forwards, foreign exchange options or foreign currency denominated loans to hedge its net investments
in foreign entities with different functional currencies than the Group.
The balance sheets of foreign subsidiaries, associated companies and foreign currency denominated equity
instruments in the scope of IFRS 9 are translated into euros using exchange rates prevailing on the reporting date,
thus exposing consolidated Group equity to fluctuations in currency rates. The resulting translation differences,
along with other movements such as the translation rate difference in the income statement, are recorded directly
in shareholders’ equity. These cumulative differences materialise through the Income statement on the disposal, in
whole or in part, of the foreign entity.
The following table presents the translation risk exposure in the Group’s Income statement arising from the
translation of subsidiaries’ and joint operations’ foreign-currency income statements into the presentation
currency of the Group in the consolidated financial statements.
Translation exposure in Income statement
As at
31 December 2024
As at
31 December 2023
EUR million
SEK
USD
BRL
CZK
CNY
SEK
USD
BRL
CZK
CNY
Translation exposure in Income Statement
-2
-208
-149
-57
78
-357
-196
-179
-65
67
Exposure currency change by
-5 %
-5 %
-10 %
-5 %
-10 %
-5 %
-5 %
-10 %
-5 %
-5 %
Effect on EBIT from translation risk exposure
—
10
15
3
-8
18
10
18
3
-3
The next table presents the translation exposure for geographical areas for which the Group has applied net
investment hedging techniques to reduce the foreign-currency translation exposure in the consolidated equity. In
practise, the Group also incurs material unhedged translation risk exposures in other geographical areas such as
Sweden and China. The exposures used in the calculations are based on the foreign currency denominated equity
and the hedging levels as at 31 December. Full details of actual CTA movements and hedging results are given in
note 5.6 Cumulative translation adjustment and equity hedging. The sensitivity analysis includes the effects of
currency hedges of net investments in foreign entities and assumes that no changes take place other than a
single currency exchange rate movement on 31 December each year.
Hedged translation exposure in Equity
As at 31 December
EUR million
2024
2023
Translation exposure on equity in USD area
1
1,799
1,625
EUR/USD equity hedges
2
-289
-271
Translation exposure after hedges
1,510
1,354
Sensitivity before hedges - EUR strengthening 5%
-90
-81
Sensitivity after hedges - EUR strengthening 5%
-75
-68
¹ Includes the joint operation Montes del Plata in Uruguay, which has USD as its functional currency.
² USD denominated bonds classified as hedges of net investments in foreign assets.
Liquidity and refinancing risk
Liquidity risk arises from the difficulty of obtaining finance for operations at a given point in time. Stora Enso’s
financial risk policy states that the average maturity of outstanding loans and committed credit facilities covering
short-term borrowings should be at least four years. The policy further states that the Group must have cash
equivalents and undrawn committed credit facilities to cover all debt maturing within the next 12 months, including
supply chain financing and factoring. At 31 December 2024, undrawn committed credit facilities and undrawn
loans were at EUR 1,235 (EUR 800) million. The credit facilities are used as a backup for general corporate purposes
and are fully undrawn. Additionally, Stora Enso has access to various additional long-term sources of funding up to
EUR 1,100 (EUR 1,100) million. These mainly relate to available funding sources from Finnish pension funds.
During 2024, Stora Enso secured a EUR 435 million long-term loan from European Investment Bank. Loan is currently
undrawn and loan repayment extends until 2037. Stora Enso signed extensions of one to two years for a total of EUR
350 million of its existing bilateral loans. In addition, the Company also signed a two-year extension to its EUR 100
million committed credit facility. Funding events from during 2024 are described in more detail in note 5.3 Interest-
bearing assets and liabilities
As disclosed in note 4.8, the Group has entered into several supply finance agreements to improve the Group’s
working capital. The finance providers are in good financial condition and the Group has no significant
concentration of liquidity risk with the finance providers. The Group’s supplier finance agreements are discussed in
more detail in note 4.8.
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Refinancing risk, or the risk that maturing debt is not refinanced in the markets, is mitigated by Stora Enso’s target of
maintaining an even maturity profile of outstanding debt. The table below shows maturity analysis for the Group’s
contractual financial liabilities classified under principal headings based on the remaining period to contractual
maturity at the reporting date. Forward interest rates as at the year-end were used for estimating contractual
finance charges for the upcoming years. The table includes the respective assets and liabilities classified as held
for sale.
Contractual maturity repayments of financial liabilities, settlement net: 2024
EUR million
2025
2026
2027
2028
2029
2030+
Total
Bond loans
430
587
582
540
500
826
3,466
Loans from credit institutions
577
255
104
4
4
35
979
Lease liabilities
83
59
54
48
44
257
545
Other non-current financial liabilities
0
1
0
0
0
0
2
Non-current borrowings including current
portion
1,090
903
741
592
548
1,119
4,992
Estimated contractual finance charges
163
123
88
73
53
168
668
Estimated contractual lease charges
27
24
23
21
20
162
276
Contractual repayments on non-current
borrowings
1,281
1,050
851
686
620
1,449
5,936
Current borrowings, carrying amounts
689
0
0
0
0
0
689
Gross-settled derivative liabilities - receipts
-1,333
-225
0
0
0
0
-1,558
Gross-settled derivative liabilities -
payments
1,370
232
0
0
0
0
1,602
Trade payables
1,781
0
0
0
0
0
1,781
Bank overdrafts
7
0
0
0
0
0
7
Estimated contractual finance charges
14
0
0
0
0
0
14
Total contractual repayments at 31
December 2024
3,808
1,057
851
686
620
1,449
8,471
Contractual maturity repayments of financial liabilities, settlement net: 2023
EUR million
2024
2025
2026
2027
2028
2029+
Total
Bond loans
136
440
590
591
548
1,310
3,615
Loans from credit institutions
140
717
105
5
5
27
998
Lease liabilities
71
57
48
43
39
263
520
Other non-current financial liabilities
0
2
0
0
0
0
2
Non-current borrowings including current
portion
347
1,217
742
639
592
1,600
5,137
Estimated contractual finance charges
193
152
113
82
69
194
802
Estimated contractual lease charges
29
26
25
23
22
225
350
Contractual repayments on non-current
borrowings
569
1,395
880
744
683
2,018
6,289
Short-term borrowings, carrying amounts
595
0
0
0
0
0
595
Gross-settled derivative liabilities - receipts
-2,154
0
0
0
0
0
-2,154
Gross-settled derivative liabilities -
payments
2,132
0
0
0
0
0
2,132
Trade payables
1,666
0
0
0
0
0
1,666
Bank overdrafts
0
0
0
0
0
0
0
Estimated contractual finance charges
9
0
0
0
0
0
9
Total contractual repayments at 31
December 2023
2,817
1,395
880
744
683
2,018
8,537
Financial transactions counterparty credit risk
Financial counterparty risk is the risk of fluctuations in the value of the Group’s assets as a result of counterparties
being unable to meet their obligations arising from financial contracts. The exposure to a financial counterparty
risk is measured as the maximum loss that Stora Enso can suffer directly in the event of a single counterparty’s
credit default. This risk is minimised by:
• entering into transactions only with leading financial institutions and with industrial companies that have a good
credit rating;
• only investing in liquid funds and deposits with financial institutions or companies that have a minimum credit
rating of A-3 or BBB-.
• at least the higher of 50% of cash equivalents, or EUR 150 million, of cash equivalents to be held at counterparties
with a minimum rating of A- or equivalent using credit ratings from main rating agencies;
• investing at least EUR 75 million of the Group’s cash and cash equivalents at counterparties other than the
counterparty at which most of Stora Enso’s cash and cash equivalents are held;
• requiring parent company guarantees when dealing with any subsidiary of a rated company.
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The Group Financial Risk Policy defines the limits for accepted counterparty risk, based on the tenor of financial
contract and counterparty’s credit rating.
At the year end 2024, there were no significant concentrations of risk with respect to counterparties of derivative
contracts, with the highest counterparty mark-to-market exposure being at EUR -8 (13) million and credit rating of
A+ (A+) using Standard and Poor’s credit rating symbols.
Customer credit risk
Customer credit risk is Stora Enso’s exposure to contracts arising from deterioration in the financial health of its
customers. The Group uses various measures to reduce customer credit risks, including, but not limited to, letters of
credit, prepayments and bank guarantees. The Group has also obtained export guarantees, covering both political
and commercial risks, which are used in connection with individual customers outside the OECD area.
Management considers that no significant concentration of credit risk with any individual customer, counterparty
or geographical region exists for Stora Enso. The ageing information of trade receivables and related loss
allowances are given in note 4.7 Operative receivables.
Commodity price risk
Outstanding commodity hedges
As at
31 December 2024
As at
31 December 2023
Underlying
amount of
commodity
hedged
Average
hedged
commodity
price
Nominal
amount
hedged in
EUR million
Fair value
EUR million
Underlying
amount of
commodity
hedged
Average
hedged
commodity
price
Nominal
amount
hedged in
EUR million
Fair value
EUR million
Electricity purchases
- Nordic region
2,242,560
MWh
EUR 37.3
84
-1 245,712 MWh
EUR 55.6
14
-1
Oil purchases
208,896
barrels
USD 72.9
15
-1
205,058
barrels
USD 75.9
14
-1
The Group is exposed to commodity and energy price volatility that will have an impact on the Group’s profitability.
Electricity, natural gas and oil hedge derivatives are part of energy price risk management in the Group, whilst
other commodity risks are measured and hedged if economically possible. In addition to electricity hedge
derivatives, the Group also manages energy price risk by entering into long-term physical fixed price purchase
agreements, and by holding a 16.1% stake in Pohjolan Voima Oy (PVO), which is a privately owned Group of
companies in the energy sector in Finland. The fair value of the shares amounted to EUR 570 (EUR 778) million as per
the year-end. The fair value of these shares is dependent on electricity market prices and discussed in more detail
in note 4.4 Equity instruments.
A 10% movement in energy and raw material prices would result in a EUR 10 (EUR 5) million change in the fair value of
commodity financial hedges described in the above table. The majority of these fair value changes, after taxes, are
recorded directly in Equity under Hedging Reserves, until the contracts mature and the result is entered in the
Income statement. These estimates only represent the sensitivity of commodity financial instruments to market
risk and not the Group’s full exposure to raw material and energy price risks as a whole, since the actual underlying
purchases are not financial instruments within the scope of the IFRS 7 standard. At the end of 2024, the maturities of
the energy and commodity contracts, including both financial hedges and fixed-price physical purchase
agreements, ranged between 2025 and 2027. In 2023, the maturities ranged between 2024 and 2025.
In an effort to mitigate other commodity price risk exposures in relation to wood fiber price risk, the Group is a
significant owner of forest assets in the Nordic region. In Sweden the Group owns 1.4 million hectares of forest land.
In addition, Stora Enso holds 41% share in Tornator Oyj, which is a significant forest owner in Finland. The Group’s
share in Tornator is reported as an associate company and discussed in more detail in note 4.3 Associates. The
Group’s forest assets are discussed in more detail in note 4.2 Forest assets.
Equity price risk
The Group has certain investments in publicly traded securities. Currently these relate to Packages Ltd shares in
Pakistan. The market value of these equity investments was EUR 11 (EUR 9) million at the year end. Market value
changes in these investments are recorded, after taxes, directly under Shareholders’ Equity in the Equity
instruments through OCI reserve. More details on the publicly traded securities can be found from note 4.4 Equity
instruments.
Capital risk management
Stora Enso’s debt structure is focused on capital markets and commercial banks. Group objectives when
managing capital are to safeguard the ability to continue as a going concern in order to provide returns for
shareholders and benefits for other stakeholders, as well as to maintain an optimal capital structure to maintain
reasonable cost of capital. In order to maintain or adjust the capital structure, the Group may, subject to
shareholder approval as appropriate, vary the dividends paid to shareholders, buy its own shares on financial
markets, return capital to shareholders, issue new shares or sell assets to reduce debt. The Group strives to pay
stable dividends linked to the long-term performance with the aim of distributing 50% of Earnings per share (EPS)
excluding fair valuations over the cycle.
The Group monitors its capital on the basis of a target net debt-to-equity ratio of 0.60 or less, and aiming that the
Net-debt-to-adjusted EBITDA ratio remains below 2.0, indicating a solid financial position and financial flexibility.
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Capital structure
As at 31 December
EUR million
2024
2023
Interest-bearing liabilities
1
5,779
5,780
Interest-bearing assets
1
2,072
2,613
Net debt
3,707
3,167
Equity attributable to owners of the parent
10,139
10,985
Adjusted EBITDA
2
1,223
989
Net debt to equity ratio
0.37
0.29
Net debt to adjusted EBITDA
3.0
3.2
1 Interest-bearing liabilities and assets in the table include the respective amounts classified as held for sale.
More detailed reconciliation of net debt is included in the “Alternative performance measures” chapter in the
Report of the Board of Directors.
2 Adjusted EBITDA definition is included in the “Alternative performance measures” chapter in the Report of the
Board of Directors.
The Group’s subsidiary Stora Enso (Guangxi) Packaging and Forestry
Company Ltd have complied with financial covenants related to debt-to-
assets ratio during the reported periods. There are no other covenants in
the Group’s financing contracts.
5.2 Fair values
Accounting principles
Financial assets
The Group classifies its financial assets into three categories, which are amortised
cost, fair value through other comprehensive income and fair value through profit
and loss. The classification is made according to the IFRS 9 standard and
management determines the classification of investments at the time of
initial recognition.
With investments in debt instruments, the classification is made based on the
business model and contractual cash flow characteristics of debt instruments.
Investments in debt instruments, for which the business model objective is to hold
the financial instruments to collect contractual cash flows and those cash flows are
solely payments of principal and interest, are classified as amortised cost and
presented under current or non-current assets in the consolidated statement of
financial position. Investments in debt instruments, for which the business model
objective is to hold the financial instruments for both to collect contractual cash
flows and sell financial instruments and the cash flows are solely payments of
principal and interest, are classified as fair value through other comprehensive
income and presented under current or non-current assets in the consolidated
statement of financial position.
The Group’s investments into equity instruments, such as listed and unlisted
securities, are classified as fair value through profit and loss unless the Group has at
inception decided to apply the irrevocable election under IFRS 9 to classify the
investments as fair value through other comprehensive income with only dividend
income from the investments being recognised in the income statement.
Investments that are not measured at amortised cost or at fair value through other
comprehensive income are classified as fair value through profit and loss and are
therefore fair valued through the consolidated income statement and presented
under current or non-current assets in the consolidated statement of financial
position.
Financial liabilities
The Group’s financial liabilities are classified into amortised cost or fair value
through profit and loss categories. Financial liabilities are measured at amortised
cost unless the Group has decided to apply a fair value option to designate a
financial liability to be measured at fair value through profit and loss.
Derivatives
Derivative financial assets and liabilities are measured at fair value and classified
as fair value through profit and loss or, if the Group has applied hedge accounting,
at fair value through other comprehensive income according to the IFRS 9
standard. Derivative financial instruments and hedge accounting are discussed in
more detail in note 5.4 Derivatives.
Fair value of financial instruments
The fair values of publicly traded derivatives and listed securities, are based on
quoted market prices at the reporting date; the fair values of interest rate swaps
are calculated as the present value of the estimated future cash flows, and the fair
values of foreign exchange forward contracts are determined using forward
exchange rates at the reporting date. The valuation principles for derivative
financial instruments have been described in more detail in note 5.4 Derivatives.
In assessing the fair values of non-traded derivatives and other financial
instruments, the Group uses a variety of methods and makes assumptions based
on the market conditions at each reporting date. Quoted market prices or dealer
quotes for identical or similar instruments are used for non-current debt. Other
techniques, such as option pricing models and estimated discounted value of
future cash flows, are used to determine fair values for the remaining financial
instruments. The face values, less any estimated credit adjustments, for financial
assets and liabilities with a maturity of less than one year are assumed to
approximate their fair values. The fair values of financial liabilities for disclosure
purposes are estimated by discounting the future contractual cash flows at the
current market interest rates available to the Group for similar financial
instruments.
Purchases and sales of financial instruments are recognised based on trade date
accounting, which is the date on which the Group commits to purchasing or selling
the financial instrument. Financial instruments are derecognised when the rights to
receive or the cash flows from the financial instruments have expired or have been
transferred and the Group has substantially transferred all risks, rewards and
obligations of the ownership of the financial asset or liability.
Fair value hierarchy
The Group uses the following hierarchy for determining and disclosing the fair value
of financial instruments by valuation technique:
• Level 1: quoted (unadjusted) prices in active markets for identical assets or
liabilities;
• Level 2: other techniques, for which all inputs which have a significant effect on
the recorded fair value are observable, either directly or indirectly;
• Level 3: techniques which use inputs which have a significant effect on the
recorded fair values that are not based on observable market data.
The Group evaluates the categorisation of its fair value measurements within the
fair value hierarchy on a regular basis at the end of the reporting period. There were
no transfers recognised in the fair value hierarchy between Levels 1 and 2 and no
transfers into or out of Level 3 fair value measurements during 2024 and 2023. See
note 4.4 Equity instruments for more information on Level 3 fair value measurement
of unlisted securities.
Critical accounting estimates and judgement
Where the fair value of financial assets and liabilities cannot be derived directly
from publicly quoted market prices, other valuation techniques, such as discounted
cash flow models, transaction multiples, the Black and Scholes model and the
Gordon model, are applied. The key judgements include future cash flows, credit
risk, volatility and changes in assumptions about these factors which could affect
the reported fair value of the financial instruments.
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Carrying amounts of financial assets and liabilities by measurement and fair value categories: 2024
Fair value hierarchy
EUR million
Amortised
cost
Fair
value
through
OCI
Fair value
through
income
statement
Total
carrying
amount
Fair
value
Level 1
Level 2
Level 3
Note
Financial assets
Listed securities
—
11
—
11
11
11
—
—
4.4
Unlisted securities
—
587
15
602
602
—
—
602
4.4
Non-current interest-bearing
receivables
9
5
—
14
14
—
5
—
5.3
Derivative assets
—
5
—
5
5
—
5
—
Loan receivables
9
—
—
9
9
—
—
—
Trade and other operative receivables
626
42
—
668
668
—
42
—
4.7
Current interest-bearing receivables
38
9
1
47
47
—
10
—
5.3
Derivative assets
—
9
1
10
10
—
10
—
Other short-term receivables
38
—
—
38
38
—
—
—
Cash and cash equivalents
1,999
—
—
1,999
1,999
—
—
—
Total
2,672
654
16
3,342
3,342
11
57
602
Fair value hierarchy
EUR million
Amortised
cost
Fair
value
through
OCI
Fair value
through
income
statement
Total
carrying
amount
Fair
value
Level 1
Level 2
Level 3
Note
Financial liabilities
Non-current interest-bearing liabilities
3,889
5
—
3,894
4,129
—
5
—
5.3
Derivative liabilities
—
5
—
5
5
—
5
—
Non-current debt
3,889
—
—
3,889
4,124
—
—
—
Current portion of non-current debt
1,090
—
—
1,090
1,090
—
—
—
5.3
Current interest-bearing liabilities
744
42
2
788
788
—
44
—
5.3
Derivative liabilities
—
42
2
44
44
—
44
—
Current debt
744
—
—
744
744
—
—
—
Trade and other operative payables
2,005
—
—
2,005
2,005
—
—
—
4.8
Bank overdrafts
7
—
—
7
7
—
—
—
Total
7,735
47
2
7,784
8,019
—
50
—
In accordance with IFRS, derivatives are classified as fair value through income statement. In the above tables for financial assets and liabilities the cash flow hedge
accounted derivatives are however presented as fair value through OCI, in line with how they are booked for the effective portion.
Carrying amounts of financial assets and liabilities by measurement and fair value categories: 2023
Fair value hierarchy
EUR million
Amortised
cost
Fair
value
through
OCI
Fair value
through
income
statement
Total
carrying
amount
Fair
value
Level 1
Level 2
Level 3
Note
Financial assets
Listed securities
—
9
—
9
9
9
—
—
4.4
Unlisted securities
—
794
15
810
810
—
—
810
4.4
Non-current interest-bearing
receivables
62
14
—
76
76
—
15
—
5.3
Derivative assets
—
14
—
15
15
—
15
—
Loan receivables
62
—
—
62
62
—
—
—
Trade and other operative receivables
882
30
—
912
912
—
30
—
4.7
Current interest-bearing receivables
21
39
4
64
64
—
43
—
5.3
Derivative assets
—
39
4
43
43
—
43
—
Other short-term receivables
21
—
—
21
21
—
—
—
Cash and cash equivalents
2,464
—
—
2,464
2,464
—
—
—
Total
3,428
887
19
4,334
4,334
9
87
810
Fair value hierarchy
EUR million
Amortised
cost
Fair
value
through
OCI
Fair value
through
income
statement
Total
carrying
amount
Fair
value
Level 1
Level 2
Level 3
Note
Financial liabilities
Non-current interest-bearing liabilities
4,774
1
—
4,775
4,926
—
1
—
5.3
Derivative liabilities
—
1
—
1
1
—
1
—
Non-current debt
4,774
—
—
4,774
4,925
—
—
—
Current portion of non-current debt
347
—
—
347
347
—
—
—
5.3
Current interest-bearing liabilities
651
4
2
657
657
—
6
—
5.3
Derivative liabilities
—
4
2
6
6
—
6
—
Current debt
651
—
—
651
651
—
—
—
Trade and other operative payables
1,892
—
—
1,892
1,892
—
—
—
4.8
Bank overdrafts
—
—
—
0
0
—
—
—
Total
7,664
6
2
7,672
7,823
—
8
—
31 December 2023 restated, see chapter Restatements for more details.
In accordance with IFRS, derivatives are classified as fair value through income statement. In the above tables for financial assets and liabilities
the cash flow hedge accounted derivatives are however presented as fair value through OCI, in line with how they are booked for the effective portion.
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In the previous tables, the fair value is estimated to be equal to the
carrying amount for current financial assets and financial liabilities, such
as trade receivables and payables due to their short time to maturity and
limited credit risk. The fair value of non-current loan receivables,
considered as a level 2 fair value measurement, is based on the
discounted cash flow analysis. The fair value of non-derivative interest-
bearing liabilities, considered as a level 2 fair value measurement, is
estimated based on a discounted cash flow analysis in which the yield
curves observable at commonly quoted intervals are used as a discount
factor in the model.
Reconciliation of level 3 fair value measurement of financial
assets and liabilities
EUR million
2024
2023
Financial assets
Opening balance at 1 January
810
1,437
Reclassifications
0
0
Gains/losses recognised in other comprehensive
income
-205
-646
Additions
0
18
Disposals
-3
0
Closing balance at 31 December
602
810
The Group did not have level 3 financial liabilities as at 31 December 2024.
5.3 Interest-bearing assets and liabilities
Accounting principles
Interest-bearing assets - loan receivables
Loan receivables are debt instruments with fixed or determinable payments that
are not quoted on an active market. They are recorded initially at fair value and
subsequently measured at an amortised cost. Loss allowance for expected credit
losses is calculated based on the general approach under IFRS 9, where loss
allowance is recognised based on 12-month expected credit losses if there has not
been a significant increase in credit risk since the initial recognition. A significant
increase in the credit risk will be evaluated based on a comparison of the risk of a
default occurring on the financial instrument as at the reporting date with the risk of
default occurring on the financial instrument as at the date of initial recognition.
The Group may use, for example, rates of credit default swaps (CDS) observable on
financial markets to produce the risk assessment.
Interest income on loan receivables is included in financial income and expense.
Loan receivables with a maturity less than 12 months are included in current assets
under interest-bearing receivables, and those with maturities greater than 12
months, in non-current interest-bearing receivables.
Interest-bearing liabilities
Interest-bearing liabilities are recognised initially at fair value, net of transaction
costs incurred. In subsequent periods, interest-bearing liabilities are measured at
amortised cost using the effective interest method. Any difference between the
proceeds net of transaction costs and redemption value is recognised in the
consolidated income statement over the maturity period of the borrowings. Interest
expenses are accrued for and recorded in the consolidated Income statement for
each period.
Interest-bearing liabilities with an original maturity greater than 12 months are
classified as non-current interest-bearing liabilities in the consolidated statement
of financial position, though repayments falling due within 12 months are presented
in current liabilities under the current portion of non-current debt. Short-term
commercial paper, bank and other interest-bearing liabilities, for which the original
maturity is less than 12 months, are presented in current liabilities under interest-
bearing liabilities.
Lease liabilities
At inception of a contract, the Group assesses whether a contract is, or contains, a
lease. A contract is, or contains, a lease if the contract conveys the right to control
the use of an identified asset for a period of time in exchange for consideration.
Lease liabilities are initially capitalised at the commencement of the lease and
measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the Group’s incremental borrowing rate.
The lease term applied corresponds to the non-cancellable period except in cases
where the Group is reasonably certain to exercise renewal option or prolong the
contract. The Group allocates the consideration in the contract to each lease
component and separates non-lease components if these are identifiable. Lease
terms are negotiated on an individual basis and contain a wide range of different
terms and conditions.
The lease liabilities are subsequently measured at amortised cost using the
effective interest method. Lease payment is allocated between the capital liability
and finance charges to achieve a constant interest rate on the outstanding liability
balance. Lease liabilities are remeasured mainly when there is a change in future
lease payments arising from a change in an index or rate, or if there is a change in
the Group’s assessment whether it will exercise an extension option. When lease
liability is remeasured, a corresponding adjustment is generally made to the
carrying amount of the right-of-use asset.
The Group has elected not to recognise lease liabilities for short-term leases that
have a lease term of 12 months or less and leases of low value assets. Leases of low
value assets mainly include IT and office equipment, certain vehicles and
machinery and other low value items. The Group recognises the lease payments
associated with these leases as an expense on a straight-line basis over the lease
term.
For more information about critical accounting estimates and judgement related
to leases, see note 4.1 Intangible assets, property, plant and equipment and right-of-
use assets
Managing Interest Rate Benchmark Reform and associated risks
The Group monitors the transition process from IBORs to new benchmark rates by
reviewing the total number of contracts that have yet to transition to an alternative
benchmark rate. The impact of any ongoing changes is expected to be limited. The
Group’s financial instruments are mainly indexed to Euribor and Stibor reference
rates which are expected to continue to exist for now. All interest-bearing liabilities
have been transitioned to follow new benchmark rates. There has been no
significant impact on the Group from the change.
Interest-bearing assets
EUR million
2024
2023
Listed securities
11
9
Long-term derivative assets
5
15
Long-term deposits
0
48
Long-term loans to associated companies
2
2
Other long-term loan receivables
7
12
Total non-current interest-bearing assets
25
85
Short-term derivative assets
9
42
Current portion of long-term deposits
22
0
Other short-term loan receivables
16
22
Cash and cash equivalents
1,999
2,464
Total current interest-bearing assets
2,047
2,528
Total interest-bearing assets
2,072
2,613
The annual average interest income rate for deposits and loan
receivables during the year was approximately 3.4% (3.0%). Current
interest-bearing receivables included EUR 6 (EUR 8) million accrued
interest at 31 December 2024. The Group has evaluated that there has
not been a significant increase in credit risk related to interest-bearing
deposits and investments after the initial recognition. Accordingly, the
loss allowance is recognised based on 12-month expected credit losses.
During 2024, the Group assessed that it has no reasonable expectation to
recover financial assets from the sale of Russian operations in 2022.
Therefore the receivable, a total of EUR 15 million, was written-off the
balance sheet and impacted the net financial items.
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Interest-bearing liabilities
EUR million
2024
2023
Bond loans
3,454
3,601
Loans from credit institutions
978
997
Lease liabilities
545
520
Long-term derivative financial liabilities
5
1
Other non-current liabilities
2
2
Non-current interest-bearing liabilities including
current portion
4,985
5,123
Short-term borrowings
689
595
Interest payable
55
56
Short-term derivative financial liabilities
44
6
Bank overdrafts
7
0
Total interest-bearing liabilities¹
5,779
5,780
EUR million
2024
2023
Carrying value at 1 January
5,780
3,972
Additions in long-term debt, companies acquired
0
131
Proceeds of new long-term debt
19
2,006
Repayment of long-term debt
-176
-619
Additions in lease liabilities, companies acquired
0
99
Additions in lease liabilities
82
109
Repayment of lease liabilities and interest
-85
-87
Change in short-term borrowings
69
177
Change in interest payable
23
45
Change in derivative financial liabilities
42
-41
Disposals and classification as held for sale
-2
-8
Other
15
26
Translation differences
11
-29
Total interest-bearing liabilities¹
5,779
5,780
1 2023 restated, see chapter Restatements for more details.
Events during 2024 and 2023
In July 2024, Stora Enso secured a EUR 435 million long-term loan from
the European Investment Bank to fund its EUR 1 billion investment at
the Oulu site in Finland. Loan repayment extends until 2037, and the loan is
currently undrawn.
During the second quarter, Stora Enso signed extensions of one to two
years for a total of EUR 350 million of its existing bilateral loans. The
Company also signed a two-year extension to its EUR 100 million
committed credit facility.
During 2024, Stora Enso’s total repayments of SEK bond notes amounted to
a nominal of EUR 135 million.
Stora Enso published a new framework for green and sustainability-linked
financing in May 2023. The combined Green and Sustainability-Linked
Financing Framework allows Stora Enso to issue both green and
sustainability-linked financing instruments, as well as a combination of
the two.
In May 2023, Stora Enso issued two EUR 500 million green bonds with 3- and
6.25-year maturities. In November 2023, Stora Enso issued new SEK green
bonds with nominal value of SEK 6,100 million, equal to EUR proceeds of 524
million at the transaction date FX rate. The SEK green bonds feature several
tranches, with the maturities ranging from 2025 to 2028. Later in December
2023 the Company also completed a private placement of SEK 425 million
with maturity in 2033. This was equal to EUR proceeds of 38 million at
the transaction date FX rate.
During 2023, Stora Enso drew new bilateral loans totaling EUR 400 million,
with original maturities ranging from 1.5 to 3 years, along with extension
options. The Company also re-financed a total of EUR 450 million of its
bilateral loans and committed credit facility, originally maturiting in the
fourth quarter of 2023. The existing loans were extended by one to two
years, and the new terms also include extension options. In the fourth
quarter a one-year extension was signed for the revolving credit facility of
EUR 700 million, extending its maturity to 2028.
During 2023, Stora Enso’s total repayments of SEK and EUR bond notes
amounted to a nominal of EUR 427 million. This amount includes partial
repayment of SEK bond notes with original maturity in February 2024,
which resulted in a EUR 1 million modification net gain being recognised in
the Income Statement under net financial items.
Interest-bearing liabilities – maturities, interest rates
and currency breakdown
Stora Enso’s borrowings maturities range from 2025 to the longest
borrowing maturing in 2039. The Company’s borrowings have either fixed
or floating interest rates ranging from 0.6% (0.6%) to 7.3% (7.3%). Stora Enso’s
average interest rate on borrowings for the full year amounted to 4.1%
(3.7%) with a run-rate of 4.0% as per the year end. Part of Stora Enso’s
borrowings have been fixed through floating-to-fixed interest rate swaps.
The majority of Group loans are denominated in euros, US dollars, Swedish
crowns or Chinese renminbis. Detailed maturity analysis of the Group’s
borrowings are set out in note 5.1 Financial risk management.
Net debt
In 2024 net interest-bearing liabilities, including amounts classified as held
for sale, increased by EUR 540 (increased by EUR 1,314) million to EUR 3,707
(3,167) million. Net interest-bearing liabilities are equal to total interest-
bearing liabilities less total interest-bearing assets such as cash
equivalents and deposits. Cash and cash equivalents net of overdrafts
decreased by EUR 472 (increased by EUR 547) million to EUR 1,993 (2,464)
million as at 31 December 2024. In 2024, the total cash outflow for leases
was EUR 85 (87) million including interest component of EUR 25 (23) million.
The ratio of net debt to the last 12 months’ adjusted EBITDA was 3.0 (3.2).
The net debt/equity ratio was 0.37 (0.29) as per the year-end.
Our year 2024
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Financial Statements
Appendices
≡
Audited 179
Bond loans
Issue/ Maturity Dates
Description of Bond
Interest Rate %
Currency of Bond
Nominal Value
Issued
Outstanding As at 31 December
Carrying Value As at 31 December
2024
2023
2024
2023
All Liabilities are Held by the Parent Company
Currency million
EUR million
Fixed Rate
2006-2036
Global 7.250% Notes 2036
7.25
USD
300
300
300
287
269
2016-2023
Euro Medium Term Note
2.125
EUR
300
300
0
0
2017-2027
Euro Medium Term Note
2.50
EUR
300
300
300
300
299
2018-2028
Euro Medium Term Note
2.50
EUR
300
300
300
299
299
2019-2024
Euro Medium Term Note (Green Bond)
1.875
SEK
1,750
1,750
44
2020-2025
Euro Medium Term Note (Green Bond)
2.375
SEK
1,550
1,550
1,550
135
140
2020-2030
Euro Medium Term Note (Green Bond)
0.625
EUR
500
500
500
496
496
2023-2027
Euro Medium Term Note (Green Bond)
4.75
SEK
400
400
400
35
36
2023-2026
Euro Medium Term Note (Green Bond)
4.00
EUR
500
500
500
499
499
2023-2029
Euro Medium Term Note (Green Bond)
4.25
EUR
500
500
500
498
497
2023-2027
Euro Medium Term Note (Green Bond)
4.75
SEK
600
600
600
52
54
2023-2028
Euro Medium Term Note (Green Bond)
5.00
SEK
2,250
2,250
2,250
196
202
Total Fixed Rate Bond Loans
2,797
2,834
Floating Rate
2015-2025
Euro Medium Term Note
Euribor+2.25
EUR
125
125
125
125
125
2015-2027
Euro Medium Term Note
Euribor+2.35
EUR
25
25
25
25
25
2019-2024
Euro Medium Term Note (Green Bond)
Stibor+1.45
SEK
1,250
1,030
93
2019-2026
Euro Medium Term Note (Green Bond)
Stibor+1.60
SEK
1,000
1,000
1,000
87
90
2020-2025
Euro Medium Term Note (Green Bond)
Stibor+2.20
SEK
1,550
1,550
1,550
135
140
2023-2027
Euro Medium Term Note (Green Bond)
Stibor+1.25
SEK
2,350
2,350
2,350
205
211
2023-2028
Euro Medium Term Note (Green Bond)
Stibor+1.60
SEK
500
500
500
44
45
2023-2033
Euro Medium Term Note
Stibor + 2.20
SEK
425
425
425
37
38
Total Floating Rate Bond Loans
658
767
Total Bond Loans
3,455
3,601
Our year 2024
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Financial Statements
Appendices
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Audited 180
5.4 Derivatives
Accounting principles
Derivative financial instruments and hedge accounting
Derivative financial instruments are initially recognised in the consolidated
statement of financial position at fair value and subsequently measured at their fair
value at each reporting date according to valuation methods described in this
note. Derivative contracts with maturity greater than 12 months are classified as
non-current interest-bearing receivables and liabilities, and contracts maturing
within 12 months are presented under current interest-bearing receivables and
liabilities.
When derivative contracts are entered into, the Group designates them as either
hedges of highly probable forecast transactions or firm commitments (cash flow
hedges), hedges of the exposure to changes in the fair value of recognised assets
or liabilities (fair value hedges), hedges of net investments in foreign entities, or
derivative financial instruments not meeting the hedge accounting criteria in
accordance with IFRS 9. The method of recognising the resulting gains or losses on
derivative instruments is dependent on the nature of the item being hedged.
At the inception of a hedge, the Group documents the relationship between the
hedging instrument and the hedged item, as well as its risk management objective
and strategy for undertaking various hedging transactions. This process includes
linking all financial instruments designated under hedge accounting to specific
assets and liabilities or to specific firm commitments or highly probable forecast
transactions in order to verify and document the hedge relationship between the
hedged item and the hedging instrument as required by IFRS 9. The Group also
documents its qualitative prospective assessment at the hedge inception of
whether the derivatives used in a hedge relationship are highly effective in
offsetting changes in fair value or cash flows of hedged items. Hedge effectiveness
will be assessed in accordance with IFRS 9 requirements.
The hedge ratio used for hedging relationships is usually 1:1. For currency and
commodity hedging purposes, the Group uses a hedge designation where the
critical terms of the hedging instrument and the hedged item will coincide in terms
of the notional amount and timing. In respect of interest rate hedging, the interest
rate basis between swap contracts and underlying debt will coincide. Since the
critical terms of the hedges and underlying risks match, the hedging instruments
are considered to offset any changes related to the anticipated transactions.
Potential sources of ineffectiveness that may be expected to occur in relation to
currency and commodity hedges are mainly related to the forecasted transaction
not occurring in the amount or at the time expected. For interest rate hedges,
cross-currency basis spread or initial fair value of the hedging instrument at the
date of hedge designation may result in ineffectiveness being recognised in the
income statement. Potential sources of ineffectiveness for all the aforementioned
hedges also include possible effects of credit risk dominating fair value changes
arising from the hedging instrument and the hedged item designated under the
hedging relationship.
Cash flow hedges
Derivatives used in currency cash flow hedges are mainly forward contracts and
options, with swaps mainly used for commodity and interest rate hedging
purposes. During 2024 and 2023, the Group did not enter into new interest rate swap
contracts.
Changes in the fair value of derivatives designated and qualifying as cash flow
hedges, and which are effective, are recognised in a separate equity category of
OCI cash flow hedges reserve, the movements of which are disclosed in the
consolidated statement of comprehensive income. For foreign exchange forwards,
both the spot element and forward points have been included to the hedge
designation. In case of foreign exchange options, the time value of an option is
excluded from the hedge designation and only the intrinsic value component of an
option is designated as the hedging instrument. The changes in option time value
are recognised in a cost of hedging reserve within OCI. The cumulative gain or loss
of a derivative deferred in equity is transferred to the consolidated income
statement and classified as an income or expense in the same period in which the
hedged item affects the consolidated income statement. The unrealised gains and
losses related to cash flow hedges are expected to be recycled through the income
statement within one to four years with the longest hedging contract maturing in
2027 (2027). However, the majority of the contracts are expected to mature in 2025.
Realised results of hedge accounted derivative instruments hedging foreign
currency sales transactions or purchases are booked as adjustments to sales or
materials and services, depending on the nature of the underlying hedged item. In
respect of hedges of exposures to foreign currency risk of future transactions
resulting in the recognition of non-financial assets, the gains and losses deferred to
the cash flow hedges reserve within OCI are transferred from equity to be included
in the initial acquisition cost of the non-financial asset at the time of recognition.
The Group may hedge foreign-currency risk of external or internal foreign-currency
purchases where the underlying amount purchased in a foreign-currency impacts
the value of inventory in a local currency. In such cases the gains and losses are
initially booked as an adjustment to raw material inventory and recycled further to
finished goods inventory with being ultimately recognised in the consolidated
income statement at the time when the hedged items are sold to an external
customer. In case of non-current assets, the deferred amounts are ultimately
recognised in the income statement through depreciation over the lifetime of the
non-financial assets.
When a hedging instrument expires or is sold, terminated or exercised or no longer
meets the hedge accounting criteria under IFRS 9, any cumulative gain or loss
deferred in equity at that time remains in equity and is accounted for as an
adjustment to income or expense when the committed or forecast transaction is
ultimately recognised in the consolidated income statement. However, if the
underlying forecasted transaction is no longer expected to occur, the cumulative
gain or loss reported in equity from the period when the hedge was effective is
immediately recognised in the consolidated income statement.
Fair value hedges
In case of fair value hedges, the Group uses either derivatives or borrowings as a
hedging instrument to manage the risk associated with the fair value of a hedged
item. The gains and losses on hedging instruments designated and qualifying as
fair value hedges, and which are highly effective, are recorded in the consolidated
income statement, along with any changes in the fair value of the hedged assets or
liabilities attributable to the hedged risk. As at the end of 2024, the Group did not
have fair value hedges.
Net investment hedges
For hedges of net investments in foreign entities, the Group uses either derivatives
or foreign-currency borrowings for this purpose. If the hedging instrument is a
derivative, any gain or loss thereon relating to the effective portion of the hedge is
recognised in equity in CTA as disclosed in the consolidated statement of
comprehensive income; the gain or loss relating to the ineffective portion is
immediately recognised in the consolidated income statement. In addition,
exchange gains and losses arising on the translation of a foreign-currency
borrowing that hedges net investment in a foreign operation are also recognised in
CTA, with any ineffective portion being immediately recognised in the consolidated
income statement. The gains and losses recognised in CTA are recycled from
equity to the consolidated income statement at the time when the underlying
hedged net investment is disposed.
Non-hedge accounted derivatives
Certain derivative transactions, while providing effective economic hedges under
Group risk management policies, do not qualify for hedge accounting under the
specific rules in IFRS 9 and therefore changes in the fair value of such non-qualifying
hedges are accounted for at fair value in the consolidated income statement. For
non-hedge accounted derivatives economically hedging foreign-currency risk of
net of operative receivables and payables, the fair value changes are recognised in
operating result under other operating income and expense. For other non-hedge
accounted derivatives, the fair value changes are recognised in the consolidated
income statement under financial income and expense.
Valuation of derivatives
Derivative financial instruments are recorded in the statement of financial position
at their fair values defined as the amount at which the instrument could be
exchanged in an orderly transaction between market participants at the
measurement date. The fair values of such financial items have been estimated on
the following basis:
• Foreign exchange forward contract fair values are calculated using forward
exchange rates at the reporting date.
• Foreign exchange option contract fair values are calculated using reporting date
market rates together with common option pricing models.
• Commodity contract fair values are computed with reference to quoted market
prices on futures exchanges or other reliable market sources.
• Interest rate swaps fair values are calculated using a discounted cash flow
method.
• Cross-currency swaps fair values are calculated by using a discounted cash flow
method with the exchange of notional also included in the valuation model.
Our year 2024
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Report of the Board of Directors
Financial Statements
Appendices
≡
Audited 181
Total foreign exchange gains and losses in the income statement
excluding hedges
EUR million
2024
2023
Other operating income
27
-11
Other operating expense
-18
-4
Borrowings, cash equivalents. lease liabilities and other
-22
-10
Total
-13
-25
Hedge gains and losses in operating result
EUR million
2024
2023
Cash flow hedge accounted derivatives
Currency hedges
-2
-7
Commodity hedges
-5
-2
Total
-7
-8
As adjustments to sales
-5
-7
As adjustments to materials and services
-1
-2
Realised from OCI through income statement
-7
-8
Currency hedges ineffectiveness
1
1
Net gains/losses from cash flow hedges
-6
-7
Non-hedge accounted derivatives
Net receivable hedges
-3
5
Net gains/losses on non-hedge accounted
derivatives
-3
5
Net hedge gains/losses in operating result
-9
-2
In 2024, certain forecasted future transactions were no longer expected to
occur, and due to this hedge accounting was ceased for those
transactions. This resulted in a gain of EUR 1 (gain of 1) million being booked
in the Group’s operating result and is being presented in the table above
as ineffectiveness from cash flow hedges.
Hedge gains and losses in financial items
EUR million
2024
2023
Non-hedge accounted derivatives
Currency derivatives
2
-12
Interest rate derivatives
0
4
Net gains/losses on non-hedge accounted
derivatives
2
-8
Net gains/losses in financial items
2
-8
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Audited 182
Nominal and fair values of derivative instruments
EUR million
Nominal values
Positive
fair values
Negative
fair values
Net fair values
Nominal values
Positive
fair values
Negative
fair values
Net fair values
2024
2023
Currency derivatives
Forwards: Operational cash flow hedging
1,340
5
-38
-33
1,210
31
-4
27
Options: Operational cash flow hedging
673
1
-6
-5
405
6
-1
5
Total cash flow hedge accounted
2,013
7
-44
-38
1,615
37
-5
33
Forwards: Trade and loan receivables hedging
515
1
-2
-1
379
4
-1
3
Total non-hedge accounted
515
1
-2
-1
379
4
-1
3
Total currency derivatives
2,528
7
-47
-39
1,994
41
-6
35
Commodity derivatives
Electricity swaps: Costs hedging
84
1
-2
-1
14
0
-1
-1
Oil swaps: Costs hedging
15
0
-1
-1
14
0
-1
-1
Total cash flow hedge accounted
98
2
-3
-1
28
0
-2
-2
Total commodity derivatives
98
2
-3
-1
28
0
-2
-2
Interest rate derivatives
Interest rate swaps: Financial expenses hedging
346
6
0
6
443
16
0
16
Total cash flow hedge accounted
346
6
0
6
443
16
0
16
Total interest rate derivatives
346
6
0
6
443
16
0
16
Total cash flow hedge accounted
2,457
14
-47
-34
2,086
54
-7
47
Total non-hedge accounted
515
1
-2
-1
379
4
-1
3
Total derivatives
2,973
15
-50
-35
2,464
57
-8
49
Positive and negative fair values of financial derivative instruments are shown under interest-bearing receivables
and liabilities, and non-current interest-bearing receivables and liabilities. The presented fair values in the table
include accrued interest and option premiums.
Our year 2024
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Financial Statements
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Audited 183
Changes in fair values of hedged items and hedging instruments 2024
EUR million
Change in value
of hedged item to
determine hedge
effectiveness
Change in value
of outstanding
hedging
instruments
Ineffectiveness
Foreign exchange risk - Forward and option contracts (excluding option time
value)
1
69
-68
1
Foreign exchange risk - Net investment hedges
17
-17
0
Commodity price risk - Commodity swaps
5
-5
0
Interest rate risk - Interest rate swaps
10
-10
0
1 Ineffectiveness booked in operating result.
Changes in fair values of hedged items and hedging instruments 2023
EUR million
Change in value
of hedged item to
determine hedge
effectiveness
Change in value
of outstanding
hedging
instruments
Ineffectiveness
Foreign exchange risk - Forward and option contracts (excluding option time
value)
1
-23
24
1
Foreign exchange risk - Net investment hedges
2
-10
10
0
Commodity price risk - Commodity swaps
21
-21
0
Interest rate risk - Interest rate swaps
13
-13
0
1 Ineffectiveness booked in operating result.
2 Comparison figures restated.
Breakdown of cash flow hedging reserve and net investment hedges in equity 2024
EUR million
At 1 Jan 2024
Change in fair
value
recognised in
OCI/CTA
Reclassified
from OCI to
profit and loss
Reclassified to
non-financial
assets
Tax impact
At 31 Dec 2024
Foreign exchange risk - Operational
cash flow hedging
25
-70
2
0
14
-30
Commodity price risk - Commodity
swaps
-1
-5
5
0
0
0
Interest rate risk - Interest rate swaps
13
-10
0
0
2
5
Interest rate and foreign exchange
risk - Cross-currency swaps
0
0
0
0
0
0
Cost of hedging reserve
1
-3
0
0
1
-2
Total cash flow hedge reserve in OCI
38
-88
7
0
16
-27
Foreign exchange risk - Net
investment hedges
7
-17
0
0
3
-7
Total net investment hedges in CTA
7
-17
0
0
3
-7
Total hedging reserves
45
-105
7
0
20
-34
Breakdown of cash flow hedging reserve and net investment hedges in equity 2023
EUR million
At 1 Jan 2023
Change in fair
value
recognised in
OCI/CTA
Reclassified
from OCI to
profit and loss
Reclassified to
non-financial
assets
Tax impact
At 31 Dec 2023
Foreign exchange risk - Operational
cash flow hedging
2
20
8
2
-6
25
Commodity price risk - Commodity
swaps
15
-21
2
0
4
-1
Interest rate risk - Interest rate swaps
23
-13
0
0
3
13
Interest rate and foreign exchange
risk - Cross-currency swaps
1
0
-1
0
0
0
Cost of hedging reserve
-1
2
0
0
0
1
Total cash flow hedge reserve in OCI
39
-12
9
2
0
38
Foreign exchange risk - Net
investment hedges
1
10
-2
0
-2
7
Total net investment hedges in CTA
1
10
-2
0
-2
7
Total hedging reserves
40
-3
7
2
-2
45
Our year 2024
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Financial Statements
Appendices
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Audited 184
Financial impact of netting for instruments subject to an enforceable master netting agreement 2024
Not offset in the statement of financial position
EUR million
Gross amount of
recognised
financial
instruments
Related liabilities
(-) or assets (+)
subject to master
netting
agreements
Collateral
received (-) or
given (+)
Net exposure
Derivative assets
15
-12
0
3
Derivative liabilities
-50
12
0
-37
Financial impact of netting for instruments subject to an enforceable master netting agreement 2023
Not offset in the statement of financial position
EUR million
Gross amount of
recognised
financial
instruments
Related liabilities
(-) or assets (+)
subject to master
netting
agreements
Collateral
received (-) or
given (+)
Net exposure
Derivative assets
57
-2
0
56
Derivative liabilities
-8
2
0
-6
The Group enters into derivative transactions under master netting agreements agreed with each counterparty. In
case of an unlikely credit event, such as default, all outstanding transactions under the agreements are
terminated, and only a single net amount per counterparty is payable for settlement of all transactions. The
agreements do not meet the criteria for offsetting in the statement of financial position, because offsetting is
enforceable only in the occurrence of certain future events.
5.5 Shareholders' equity
Accounting principles
Dividend and capital repayments
Any dividend or capital repayment proposed by the Board is not deducted from distributable shareholders’ equity until approved
by the shareholders at the Annual General Meeting.
At 31 December 2024, shareholders’ equity amounted to EUR 10,139 (10,985) million, compared to the market
capitalisation on Nasdaq Helsinki of EUR 7,657 (9,864) million. The market values of the shares were EUR 9.68 (12.45)
for A shares and EUR 9.72 (12.53) for R shares. In 2024, EUR 158 (473) million of dividends was recognised as distributed
to owners, corresponding to EUR 0.20 (0.60) per share.
The A shares entitle the holder to one vote per share, whereas R shares entitle the holder to one vote per ten shares
with a minimum of one vote, though the accountable par of both shares is the same. A shares may be converted
into R shares at any time at the request of a shareholder. At 31 December 2024, the Company’s fully paid-up share
capital, as entered in the Finnish Trade Register, was EUR 1,342 (1,342) million. The current accountable par of each
issued share is EUR 1.70 (1.70).
At 31 December 2024, Directors and Group Leadership Team members owned 127 (127) A shares and 483,159
(506,790) R shares representing 0.02% of the total voting rights of the Company. Full details of Director and Executive
interests are shown in note 3.2 Board and executive remuneration. A full description of Company share award
programmes is shown in note 3.4 Employee variable compensation and equity incentive schemes. However, none
of these have any impact on the issued share capital.
Change in number of shares
A shares
R shares
Total
At 1 January 2023
176,238,280
612,381,707
788,619,987
Conversion of A shares to R shares
-7,364
7,364
—
At 31 December 2023
176,230,916
612,389,071
788,619,987
Conversion of A shares to R shares
-566,837
566,837
—
At 31 December 2024
175,664,079
612,955,908
788,619,987
Number of votes as at 31 December 2024¹
175,664,079
61,295,590
236,959,669
Share capital at 31 December 2024, EUR million²
299
1,043
1,342
1 The R share votes are calculated by dividing the number of R shares by 10.
2 No changes in share capital in 2024 or 2023.
5.6 Cumulative translation adjustment and equity hedging
Accounting principles
The Group operates internationally and is thus exposed to currency risks arising from exchange rate fluctuations on the value of
its net investment in non-euro entities. Exchange rate differences arising from the retranslation of net investments in foreign
non-euro entities, and financial instruments that are designated as hedges of such investments, are recognised directly in equity
in the cumulative translation adjustment (CTA). Movements in CTA (including related hedges) are shown in the consolidated
statement of comprehensive income.
The cumulative translation adjustments related to disposed and liquidated entities are combined with their gain or loss on
disposal. The CTA is recycled in the consolidated income statement upon disposal and liquidation.
The Group policy for translation risk exposure is to minimise this by funding assets in the same currency whenever economically
viable, but if matching the assets and liabilities in the same currency is not possible, hedging of the remaining translation risk
may take place. The Group has also applied net investment loan accounting for certain intragroup loans for which settlement is
neither planned nor likely to occur in the foreseeable future. These are in substance, a part of the entity’s net investment in the
foreign operation.
Our year 2024
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Report of the Board of Directors
Financial Statements
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Audited 185
Cumulative translation adjustment - movement
EUR million
2024
2023
At 1 January
CTA
-376
-432
Net investment hedges and loans
6
21
Income tax related to hedges and loans
-4
-5
Net CTA in equity
-375
-415
CTA movement OCI
CTA movement
-88
0
CTA release through income statement
-1
56
Net investment hedges and loans
4
-15
Income tax related to hedges and loans
3
0
CTA movement OCI total
-82
41
At 31 December
CTA
-465
-376
Net investment hedges and loans
10
6
Income tax related to hedges and loans
-2
-4
Net CTA in equity
-457
-375
In 2024 there were no significant releases of cumulative translation adjustments to the income statement.
In 2023 the release of cumulative translation adjustments to the income statement amounted to a loss of EUR 56
million and was related to disposals of Hylte and Nymölla sites in Sweden.
Cumulative translation adjustment – financial position
Cumulative Translation
Adjustment (CTA)
Net investment
hedges and loans
Net CTA in the statement of
financial position
EUR million
2024
2023
2024
2023
2024
2023
Brazil
-284
-242
0
0
-284
-242
China
143
151
1
-4
144
147
Czechia
35
39
-9
-9
26
30
Poland
-14
-22
17
17
3
-5
Sweden
-649
-494
33
33
-616
-461
Uruguay (USD)
298
191
-33
-31
265
160
Others
6
1
0
0
6
1
CTA before Tax
-465
-376
10
6
-455
-370
Taxes
0
0
-2
-4
-2
-4
Net CTA in Equity
-465
-376
8
2
-457
-375
Hedging instruments and unrealised hedge losses
Nominal amount (Currency)
Nominal amount (EUR)
Unrealised losses (EUR)
EUR million
2024
2023
2024
2023
2024
2023
Borrowings
USD area
300
300
289
271
-47
-33
Total hedging
289
271
-47
-33
The Group is currently only hedging its equity exposure to the US dollar arising from its joint operation located in
Uruguay with USD as functional currency.
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5.7 Non-controlling interests
Accounting principles
Non-controlling interests are presented as a separate component within the equity of the Group in the consolidated statement
of financial position. The proportionate shares of profit or loss attributable to non-controlling interests and to owners of the
parent company are presented in the consolidated income statement after the net result for the period. Transactions between
non-controlling interests and Group shareholders are transactions within equity and are thus shown in the statement of
changes in equity. The measurement type of non-controlling interest is decided separately for each acquisition.
Non-controlling interests
EUR million
2024
2023
At 1 January
-97
-30
Acquisitions
—
2
Share of net result for the period
-48
-74
Share of other comprehensive income
-5
5
At 31 December
-150
-97
Principal non-controlling interests
2024
2023
2024
2023
Company
Principal place of
business
Ownership and voting rights
held by non-controlling
Interests, %
EUR million
Stora Enso Pulp and Paper Asia AB Group
(subgroup)
1
Sweden and
China
5.79%–19.92%
5.79%–19.92%
-148
-100
Others
-
-2
3
Total
-150
-97
1 Consists of non-controlling interests in Guangxi Integrated Project and Operations. Entity level ownership presented in note 6.2 Group companies.
Non-controlling interests in Stora Enso Pulp and Paper Asia AB Group
Summarised financial information in respect of the subsidiaries that have material non-controlling interests is set
out below.
Stora Enso Pulp and Paper Asia AB Group
EUR million
2024
2023
Assets
675
858
Equity attributable to the owners of the parent
-515
-345
Non-controlling interests
1
-148
-100
Total equity
-663
-445
Liabilities
1,337
1,303
Net result for the period
-196
-268
Attributable to
Owners of the parent
-153
-194
Non-controlling interests
-43
-74
Net result for the period
-196
-268
Net cash flow from operating activities
9
16
Net cash flow from investing activities
-38
-37
Net cash flow from financing activities
18
-23
Net cash flow
-11
-43
1 No dividends were paid to non-controlling interests in 2024 or 2023.
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Audited 187
6 Group structure
6.1 Acquisitions, disposals and assets held for sale
Accounting principles
Acquired companies are accounted in accordance with the acquisition method
whereby these companies are included in the consolidated financial statements
from the date the control is obtained. Accordingly, the consideration transferred
(including contingent consideration) and the acquired company’s identifiable net
assets are measured at fair value at the date of the acquisition. Transaction costs
related to acquisition are expensed as incurred. The measurement type of non-
controlling interest is decided separately for each acquisition, and measured either
at fair value or non-controlling interest’s proportionate share of the net assets. The
excess of the consideration transferred, non-controlling interest and possible
previously held equity interest over the fair value of net assets of the acquired
company is recognised as goodwill.
The disposed companies are included in the consolidated financial statements up
to the date when the control is lost. The gain or loss on disposal together with
cumulative translation adjustments (CTA) related to disposed companies are
recognised in the consolidated income statement at the date control is lost. Gains
and losses on the disposal of a Group entity include any goodwill relating to the
entity sold.
Assets are classified as held for sale, if their carrying amounts will be recovered
mainly through a sale transaction rather than through continuing use. The assets
must be available for immediate sale in their present condition subject only to
terms that are usual and customary for sale of such assets. Also, the sale must be
highly probable and expected to be completed within one year from the date of
classification. These assets and related liabilities are presented separately in the
consolidated statement of financial position and measured at the lower of the
carrying amount and fair value less costs to sell. Comparative information is not
restated when classification is made. Assets classified as held for sale are
not depreciated.
Acquisition of Group companies
EUR million
2024
2023
Net assets acquired
Cash and cash equivalents
2
27
Property, plant and equipment
0
200
Forest assets
77
0
Intangible assets
0
222
Right-of-use assets
0
99
Working capital
0
5
Tax assets and liabilities
-2
-56
Interest-bearing assets and liabilities
0
-233
Fair value of net assets acquired
77
265
Purchase consideration, cash part
77
612
Purchase consideration, contingent
0
0
Total purchase consideration
77
612
Fair value of net assets acquired
-77
-265
Non-controlling interest
0
2
Goodwill
0
349
Cash outflow on acquisitions
-77
-612
Cash and cash equivalents of acquired subsidiaries
2
27
Cash flow on acquisition, net of acquired cash
-75
-584
2024
Montes del Plata forest assets
In March 2024 Stora Enso’s 50% owned joint operation in Uruguay, Montes
del Plata (MdP), completed a transaction to acquire forest assets and
related forestry business in Uruguay. Stora Enso’s share of the transaction
includes approximately 16.3 thousand hectares of land, of which about 9.8
thousand hectares are productive land. The acquired units are fully owned
and reported under the Biomaterials division. The acquired forest land and
operations are located in various regions of Uruguay. These operations
primarily include forestry plantations to supply wood for pulp production.
Stora Enso’s share of the cash purchase consideration was EUR 77 million.
The related transaction costs were not considered significant. The fair
values of the identifiable assets and liabilities as of the acquisition date
consisted mainly of forest assets and are presented in the table above.
The post combination review was completed at the end of 2024 and
therefore acquisition accounting is considered final. There were no
significant measurement period adjustments in 2024. The acquisition is not
considered to have had a significant impact on Stora Enso Group’s sales or
net profit.
2023
De Jong Packaging Group
In September 2022, Stora Enso signed an agreement to acquire De Jong
Packaging Group, and the transaction was completed at the beginning of
January 2023. De Jong Packaging Group is based in the Netherlands and is
one of the largest corrugated packaging producers in the Benelux
countries. De Jong Packaging Group is also active in containerboard
production through the acquisition of the De Hoop mill in the Netherlands
in 2021. De Jong Packaging Group has 16 sites in the Netherlands, Belgium,
Germany and the UK and employs approximately 1,300 people. The
acquisition will advance Stora Enso’s strategic direction, increase its
corrugated packaging capacity, accelerate revenue growth and build
market share in renewable packaging in Europe. De Jong Packaging
Group’s products enhance Stora Enso’s offering. The acquisition is
expected to generate synergies over the cycle, mainly through sourcing,
containerboard integration optimisation and commercial opportunities.
The shares of the acquired companies are mainly 100% owned, with certain
units having minor non-controlling interests. The non-controlling interest is
measured on the basis of the proportionate share of the identifiable net
assets.
The cash purchase consideration was EUR 612 million, excluding a
contingent earn-out component. The maximum amount of the earn-out
component is EUR 45 million, which will be settled in cash in 2024 and is
subject to De Jong Packaging Group achieving certain earnings
thresholds. The contingent consideration is measured at its fair value and
is estimated at EUR 0 million at the date of acquisition and at the end of the
year 2023. The fair values of the identifiable assets and liabilities as of the
acquisition date are presented in the table above.
The post combination review was completed at the end of 2023 and
therefore acquisition accounting is considered to be final. The fair values of
the acquired assets, liabilities and goodwill in the table above are
representing final acquisition accounting. Measurement period
adjustments in 2023 included property, plant and equipment decrease of
EUR 23 million, right-of-use assets decrease of EUR 5 million, working capital
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Audited 188
items decrease of EUR 10 million, tax items increase of EUR 14 million and
goodwill increase of EUR 22 million.
The goodwill represent the expected synergies, mainly through sourcing,
containerboard integration optimisation and commercial opportunities.
The goodwill is allocated to divisions benefiting from the acquisition,
Packaging Solutions and Packaging Materials. None of the goodwill
recognised is expected to be deductible for tax purposes. Also, as part of
the acquisition, customer related intangible assets have been recognised
with a carrying amount of EUR 167 million and an amortisation period of 15
years, and marketing related intangible assets of EUR 39 million with
amortisation periods of between 5–20 years. See note 4.1 Intangible assets,
property, plant and equipment and right-of-use assets for more details.
For 2023, De Jong Packaging Group contributed sales of EUR 598 million
and a net result of EUR -88 million to the Group’s results, of which the De
Hoop unit closure impairment and provision charges had approximately
EUR -58 million net result impact. The acquired units are included in Stora
Enso Group’s consolidated sales and net result from the beginning of 2023.
The related transaction costs amounted to EUR 6 million and are
presented in other operating expenses. The acquired units are reported in
the Packaging Solutions and Packaging Materials divisions.
Disposal of Group companies
EUR million
2024
2023
Net assets sold
Cash and cash equivalents
5
29
Property, plant and equipment
2
271
Intangible assets
0
60
Working capital
6
-5
Tax assets and liabilities
1
-28
Interest-bearing assets and liabilities
-2
-96
Net assets in disposed companies
13
233
Total disposal consideration
13
266
CTA release
1
-56
Asset writedowns
1
-7
-17
Loan impairments
0
0
Transaction costs
-1
-6
Total net gain/loss
-7
-45
1 2023 mainly related to units classified as held for sale and restated since Beihai unit held for sale classification
was ceased in 2024.
2024
De Hoop site
In December 2024, Stora Enso completed the divestment of its 100% owned
De Hoop site in the Netherlands to DS Smith. Production at the De Hoop
containerboard site was closed in 2023. The sold unit was part of the
segment Other at the time of disposal. The transaction did not have a
significant impact on the Group.
Selfly Store business
In December 2024, Stora Enso completed the divestment of its 100% owned
Selfly Store business to Husky Intelligent Fridges. Selfly Store provides
complete smart vending machine solutions. The sold unit was part of the
segment Other. The transaction did not have a significant impact on
the Group.
Sunila site
In December 2024, Stora Enso completed the divestment of its 100% owned
Sunila site in Finland to AALTO Development Oy. Production in the Sunila
pulp mill was closed in 2023. Stora Enso’s Lignode pilot plant operations in
Sunila continue unaffected by the disposal. The sold unit was part of the
segment Other at the time of disposal. The transaction did not have a
significant impact on the Group.
E-Corrugated site
In October 2024, Stora Enso completed the divestment of its 100% owned E-
Corrugated unit in the United Kingdom to Lavelle Corrugated. The sold unit
was part of the Packaging Solutions division. The transaction did not have
a significant impact on the Group.
Paper for recycling trading unit
In July 2024, Stora Enso completed the divestment of its 51% share in a
Danish-based Packaging Materials division unit to Hartmann. The unit
specialises in paper for recycling trading. The transaction did not have a
significant impact on the Group.
2023
Biocomposite business
In November 2023, Stora Enso divested its Biocomposite business to
Sweden Timber, which also owns the paper production site at Hylte. The
sold unit was part of the segment Other at the time of disposal. The
transaction did not have a significant impact on the Group.
Wood Products DIY site
In August 2023, Stora Enso divested its 100% owned Wood Products DIY unit
in the Netherlands to Megahout, a local importer, wholesaler and producer
of a wide variety of wood products. The divestment reduced Stora Enso’s
planing capacity by 80,000 m
3. The sold unit was part of the Wood
Products division. The transaction did not have a significant impact on
the Group.
Hylte site
In April 2023, Stora Enso divested its 100% owned Hylte paper production site
in Sweden and all related assets to Sweden Timber, a Swedish based
sawmill and planing mill company. The Hylte site’s annual capacity is
245,000 tonnes of newsprint paper. During 2022, the Group recognised
asset write-downs of EUR 16 million related to the transaction. The selling
price of the transaction was not significant. The loss on disposal was
approximately EUR 45 million, consisting mainly of cumulative translation
adjustments (CTA) being released from equity to the income statement.
The sold unit was part of the segment Other at the time of disposal.
Maxau site
In February 2023, Stora Enso divested its 100% owned the Maxau paper
production site in Germany and all related assets to Schwarz Group, one of
the top retailers in the world. The transaction reduced Stora Enso’s annual
supercalendered paper (SC paper) capacity by 530,000 tonnes. The selling
price of the transaction was approximately EUR 211 million and the gain on
disposal was approximately EUR 52 million. The sold unit was part of the
segment Other at the time of disposal.
Nymölla site
In January 2023, Stora Enso divested its 100% owned Nymölla paper
production site in Sweden and all related assets to Sylvamo, a US-based
global producer of uncoated paper. The Nymölla site’s capacity is 485,000
metric tonnes of woodfree uncoated office papers. During 2022, the Group
recognised asset write-downs of EUR 6 million related to the transaction.
The selling price of the transaction was approximately EUR 49 million. The
loss on disposal was approximately EUR 30 million, consisting mainly of
cumulative translation adjustments (CTA) being released from equity to
income statement. The sold unit was part of the segment Other at the time
of disposal.
Russian operations
As communicated in 2022, Stora Enso sold all of its operations in Russia.
Related to one forest operations unit, the disposal was expected to be
completed in 2023, upon finalisation of certain formalities. These
formalities were finalised in 2023 and did not have a significant impact on
the Group. For more information about the valuation of Russia-related
receivables, see note 5.3 Interest-bearing assets and liabilities.
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Assets held for sale
At the end of 2024 and 2023 there were no assets held for sale. 2023 has
been restated, more information below about the reversal of held for sale
classification.
As announced in December 2022, Stora Enso initiated a sales process to
divest its Beihai packaging board production site and forestry operations
in Guangxi, China, which are part of the Packaging Materials division.
The Beihai operations were classified as held for sale at the end of 2023.
Based on evaluations during 2024, the divestment was no longer
considered highly probable. Stora Enso’s view is that the value in own use
of the assets exceeds the achievable transaction value, and therefore, it
chose to retain these operations within the Group. Consequently, the held-
for-sale classification was ceased during 2024. Comparative figures for
2023 have been restated accordingly.
Property, plant and equipment
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Audited 190
6.2 Group companies
Group ownership, %
Group ownership, %
Subsidiaries
Country
2024
2023
Anjala Fiber & Energy Oy
Finland
100.00
100.00
AS Stora Enso Latvija
Latvia
100.00
100.00
Bangma Productie B.V.
Netherlands
100.00
100.00
Bangma Verpakking B.V.
Netherlands
100.00
100.00
Bergnät 1 AB
Sweden
100.00
100.00
Beta Skog 1 AB
Sweden
100.00
100.00
Cellutech AB
Sweden
100.00
100.00
Centrum Dystrybucji i Obróbki Drewna Sp. z.o.o.
Poland
100.00
100.00
Changzhou Stora Enso Packaging Technology Co. Ltd.
China
100.00
100.00
DanFiber A/S
Denmark
0.00
51.00
De Jong Box B.V.
Netherlands
100.00
100.00
De Jong Kasser Ehf.
Iceland
0.00
100.00
De Jong Packaging Ltd.
UK
100.00
100.00
De Jong Verpackung GmbH
Germany
100.00
100.00
De Jong Verpakking B.V.
Netherlands
100.00
100.00
DJV Holding B.V.
Netherlands
100.00
100.00
DJV Strategisch Advies B.V.
Netherlands
100.00
100.00
Dongguan Stora Enso Inpac Packaging Co. Ltd.
China
100.00
100.00
DuraSense AB
Sweden
0.00
100.00
eCorrugated Ltd.
UK
0.00
100.00
Enso Alueverkko Oy
Finland
100.00
100.00
Euro - Timber, spol. s.r.o.
Slovak Republic
100.00
100.00
Felco B.V.
Netherlands
100.00
100.00
FuraCore AB (Formerly Lignode AB)
Sweden
100.00
100.00
FuraCore BV
Belgium
100.00
0.00
Gaster Wellpappe GmbH
Germany
100.00
100.00
Green Packaging System B.V.
Netherlands
100.00
100.00
Guangxi Stora Enso Forestry Co. Ltd.
China
89.50
89.50
Herman Andersson Oy
Finland
100.00
100.00
HESPOL Sp. z.o.o.
Poland
100.00
100.00
Jiashan Stora Enso Inpac Packaging Co. Ltd.
China
100.00
100.00
Karpack B.V.
Netherlands
100.00
100.00
KPMB Agri BV
Belgium
100.00
100.00
KPMB NV
Belgium
100.00
100.00
Lignode Holding Oy
Finland
100.00
100.00
Lignode Oy
Finland
100.00
100.00
Lumipaper Ltd
UK
100.00
100.00
Lumipaper NV
Belgium
100.00
100.00
PTI Packmitteltechnik GmbH
Germany
80.00
80.00
Pulse Anilox Cleaning B.V.
Netherlands
100.00
100.00
Rudico B.V.
Netherlands
100.00
100.00
Rudico Groep B.V.
Netherlands
100.00
100.00
Rudico Holding B.V.
Netherlands
100.00
100.00
Selfly Store Oy
Finland
0.00
100.00
Skogsutveckling Syd AB
Sweden
66.67
66.67
Södra Norrlands Hamnbolag nr 1 AB
Sweden
100.00
100.00
Stora Enso (Guangxi) Forestry Company Ltd.
China
80.08
80.08
Stora Enso (Guangxi) Packaging Company Ltd.
China
80.08
80.08
Stora Enso (HK) Ltd
Hong Kong
100.00
100.00
Stora Enso (Southern Africa) (Pty) Ltd
South Africa
100.00
100.00
Stora Enso AB
Sweden
100.00
100.00
Stora Enso Amsterdam B.V.
Netherlands
100.00
100.00
Stora Enso Arapoti Holding Florestal S.A.
Brazil
100.00
100.00
Stora Enso Australia Pty Ltd
Australia
100.00
100.00
Stora Enso Belgium NV
Belgium
100.00
100.00
Stora Enso Bergskog 2 AB
Sweden
100.00
100.00
Stora Enso Bergskog 3 AB
Sweden
100.00
100.00
Stora Enso Bois SAS
France
100.00
100.00
Stora Enso Brasil Ltda
Brazil
100.00
100.00
Stora Enso China Co., Ltd
China
100.00
100.00
Stora Enso China Holdings AB
Sweden
100.00
100.00
Stora Enso China Packaging (HK) Co., Limited
Hong Kong
100.00
100.00
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Stora Enso Corbehem SAS
France
100.00
100.00
Stora Enso Danmark A/S
Denmark
100.00
100.00
Stora Enso De Hoop B.V.
Netherlands
0.00
100.00
Stora Enso Eesti AS
Estonia
100.00
100.00
Stora Enso Espana S.A.U
Spain
100.00
100.00
Stora Enso Fors AB
Sweden
100.00
100.00
Stora Enso France SAS
France
100.00
100.00
Stora Enso Germany GmbH
Germany
0.00
100.00
Stora Enso Germany GmbH (Formerly Stora Enso Paper GmbH)
Germany
100.00
100.00
Stora Enso Holding B.V.
Netherlands
100.00
100.00
Stora Enso Holding France SAS
France
100.00
100.00
Stora Enso Holdings UK Ltd
UK
100.00
100.00
Stora Enso Ingerois Oy
Finland
100.00
100.00
Stora Enso Inpac Corrugated Packaging (Hebei) Company Limited
China
100.00
100.00
Stora Enso Inpac Hebei Protective Packaging Co., Ltd.
China
100.00
100.00
Stora Enso Inpac Packaging Co. Ltd
China
100.00
100.00
Stora Enso International Oy
Finland
100.00
100.00
Stora Enso Italia Srl
Italy
100.00
100.00
Stora Enso Japan K.K.
Japan
100.00
100.00
Stora Enso Kvarnsveden Industriutveckling AB
Sweden
0.00
100.00
Stora Enso Langerbrugge NV
Belgium
100.00
100.00
Stora Enso LLC
Ukraine
100.00
100.00
Stora Enso Mexico S.A.
Mexico
100.00
100.00
Stora Enso Middle East DMCC
United Arab
Emirates
100.00
100.00
Stora Enso Narew Sp.z.o.o.
Poland
100.00
100.00
Stora Enso North American Sales, LLC
USA
100.00
100.00
Stora Enso Oulu Oy
Finland
100.00
100.00
Stora Enso Packaging AB
Sweden
100.00
100.00
Stora Enso Packaging AS
Estonia
100.00
100.00
Stora Enso Packaging Oy
Finland
100.00
100.00
Stora Enso Packaging SIA
Latvia
100.00
100.00
Stora Enso Packaging UAB
Lithuania
100.00
100.00
Stora Enso Paper AB
Sweden
100.00
100.00
Stora Enso Paper France SAS
France
0.00
100.00
Stora Enso Paper Oy
Finland
0.00
100.00
Stora Enso Paper UK Ltd
UK
100.00
100.00
Stora Enso Pension Trust Ltd.
UK
100.00
100.00
Stora Enso Poland S.A.
Poland
100.00
100.00
Stora Enso Polska Sp.z.o.o.
Poland
100.00
100.00
Stora Enso Portugal Lda
Portugal
100.00
100.00
Stora Enso Praha s.r.o.
Czechia
100.00
100.00
Stora Enso Publication Papers Oy Ltd
Finland
100.00
100.00
Stora Enso Pulp AB
Sweden
100.00
100.00
Stora Enso Pulp and Paper Asia AB
Sweden
94.21
94.21
Stora Enso Skog AB
Sweden
100.00
100.00
Stora Enso Skog AS
Norway
100.00
100.00
Stora Enso Skog och Mark AB
Sweden
100.00
100.00
Stora Enso South East Asia Pte Ltd
Singapore
100.00
100.00
Stora Enso Timber AB
Sweden
100.00
100.00
Stora Enso Treasury Stockholm AB
Sweden
0.00
100.00
Stora Enso Turkey Karton Ve Kağıt Ticaret Anonim Sirketi
Turkey
100.00
100.00
Stora Enso UK Limited
UK
100.00
100.00
Stora Enso US Inc.
USA
100.00
100.00
Stora Enso Veitsiluoto Oy
Finland
100.00
100.00
Stora Enso Wood Products d.o.o. Koper
Slovenia
100.00
100.00
Stora Enso Wood Products GmbH
Austria
100.00
100.00
Stora Enso Wood Products Japan K.K.
Japan
100.00
100.00
Stora Enso Wood Products Planá s.r.o.
Czechia
100.00
100.00
Stora Enso Wood Products Sp.z.o.o.
Poland
100.00
100.00
Stora Enso Wood Products Zdirec s.r.o.
Czechia
100.00
100.00
Stora Enso WP Bad St. Leonhard GmbH
Austria
100.00
100.00
Stora Enso WP HV s.r.o.
Czechia
100.00
100.00
Stora Kopparbergs Bergslags AB
Sweden
100.00
100.00
Sumarbox B.V.
Netherlands
100.00
100.00
Sydved AB
Sweden
66.67
66.67
Twinpack B.V.
Netherlands
100.00
100.00
UAB Stora Enso Lietuva
Lithuania
100.00
100.00
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Virdia B2X, LLC
USA
100.00
100.00
Virdia LLC
USA
100.00
100.00
Virdia Ltd
Israel
100.00
100.00
Wellpappenfabrik Gesellschaft GmbH
Germany
80.00
80.00
Group ownership, %
Group ownership, %
Associated companies
Country
2024
2023
A.C.D.F. Industrie
France
35.00
35.00
Bergslagens Vind AB (Formerly Stora Enso Vind 1 AB)
Sweden
50.00
50.00
Honkalahden Teollisuuslaituri Oy
Finland
50.00
50.00
Industriewater Eerbeek B.V.
Netherlands
0.00
37.50
Industrikraft i Sverige AB
Sweden
20.00
0.00
Kemira Cell Sp.z.o.o.
Poland
45.00
45.00
Metsäteho Oy
Finland
23.95
23.95
Novimus Oy (Formerly Oy Keskuslaboratorio - Centrallaboratorium Ab)
Finland
32.24
32.24
Österbergs Förpackningsmaskiner AB
Sweden
50.00
50.00
Perkaus Oy
Finland
33.33
33.33
SELF Logistika SIA
Latvia
50.00
50.00
Steveco Oy
Finland
34.39
34.39
Suomen Keräyspaperi Tuottajayhteisö Oy
Finland
40.09
40.09
SweTree Technologies AB
Sweden
23.83
23.83
T&B Containers Holdings Ltd.
UK
30.00
30.00
Tornator Oyj
Finland
41.00
41.00
Trätåg AB
Sweden
50.00
50.00
TreeToTextile AB
Sweden
28.94
28.94
ZMP GMBH
Austria
30.00
30.00
Group ownership, %
Group ownership, %
Other companies
Country
2024
2023
AMEXCI AB
Sweden
9.10
9.10
Arevo AB
Sweden
12.73
12.73
CarbonScape Ltd
New Zealand
15.00
15.00
Clic Innovation Oy
Finland
9.87
9.87
Combient AB
Sweden
5.40
5.40
East Office of Finnish Industries Oy
Finland
4.00
4.00
Packages Limited
Pakistan
6.40
6.40
Pohjolan Voima Oyj
Finland
16.14
15.71
PulPac AB
Sweden
10.30
10.30
Radioskog AB
Sweden
10.00
10.00
RK Returkartong AB
Sweden
8.40
8.40
SSG Standard Solutions Group AB
Sweden
14.29
14.29
Suomen Puukauppa Oy
Finland
10.74
10.74
T&B Containers Ltd.
UK
30.00
30.00
Union Developement Récup. Pap.
France
10.70
10.70
Group ownership, %
Group ownership, %
Joint operations
Country
2024
2023
Celulosa y Energia Punta Pereira S.A.
Uruguay
50.00
50.00
El Esparragal Asociación Agraria de Responsabilidad Limitada
Uruguay
50.00
50.00
Eufores S.A.
Uruguay
50.00
50.00
Forestal Cono Sur S.A.
Uruguay
50.00
50.00
Monte Fresnos A.A.R.L.
Uruguay
50.00
0.00
Monte Fresnos S.A.
Uruguay
50.00
0.00
Ongar S.A.
Uruguay
50.00
50.00
Stora Enso Uruguay S/A
Uruguay
50.00
50.00
Taurion A.A.R.L.
Uruguay
50.00
0.00
Taurion S.A.
Uruguay
50.00
0.00
Terminal Logística e Industrial M`Bopocuá S.A.
Uruguay
50.00
50.00
Veracel Celulose SA
Brazil
50.00
50.00
Zona Franca Punta Pereira S.A.
Uruguay
50.00
50.00
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Audited 193
6.3 Related party transactions
Balances and transactions between Stora Enso and its subsidiaries and
joint operations have been eliminated on consolidation and are not
disclosed in this note. For the other entities which are classified as the
Group’s related parties and disclosed in this note, their subsidiary
companies are also considered as related parties.
The Group has classified Solidium Oy as a related party. Solidium Oy is
entirely owned by the State of Finland, and it owned 10.7% of Stora Enso
shares and 27.4% of all votes on 31 December 2024. The Group has applied
an exemption, as stated in IAS 24 paragraph 25, not to disclose
transactions and outstanding balances with government-related entities.
The Group has classified FAM AB and Wallenberg Investments AB as
related parties. FAM AB owned 10.2% of Stora Enso shares and 27.4% of all
votes on 31 December 2024. FAM AB is wholly owned by Wallenberg
Investments AB.
The key management personnel of the Group are the members of the
Group Leadership Team and the Board of Directors. The compensation of
key management personnel is presented in note 3.2 Board and executive
remuneration.
In the ordinary course of business, the Group engages in transactions on
commercial terms with associated companies, joint arrangements and
other related parties that are not any more favourable than those that
would be available to other third parties. Stora Enso intends to continue
with transactions on a similar basis with its associated companies and
joint arrangements. Further details of the transactions with associated
companies are shown in note 4.3 Associates.
Group companies, including subsidiary companies and joint operations,
are listed in note 6.2 Group companies.
Forest assets and wood procurement
The Group has a 41.0% interest in Tornator with the remaining 59.0% being
held mainly by Finnish institutional investors. Stora Enso has long-term
purchase contracts of wood at market prices with the Tornator Group, and
in 2024 purchases of 3 (2) million cubic metres came to EUR 167 (150)
million.
The Group procures wood at market prices from Kopparfors Fastigheter
AB, a fully owned subsidiary of Kopparfors Skogar AB, which is wholly
owned by FAM AB. In 2024 the purchases from the related party amounted
to EUR 15 (21) million and the sales of services by Stora Enso to the said
related party amounted to EUR 0 (1) million. At the end of 2024 the Group
had EUR 0 (6) million of open payables to the related party.
Stevedoring
The Group owns 34.4% of shares in Steveco Oy, a Finnish company
engaged in loading and unloading vessels. The other shareholders in
Steveco are UPM-Kymmene, Finnlines and Myllykoski. The stevedoring
services are provided by Steveco at market prices and in 2024 amounted
to EUR 25 (24) million.
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Audited 194
7 Other
7.1 Commitments and contingencies
Accounting principles
Guarantees
The guarantees entered into with financial institutions and other credit guarantors
generally oblige the group to make payment in the event of default by the
borrower. The guarantees have an off-balance sheet credit risk representing the
accounting loss that would be recognised at the reporting date if the
counterparties fail to perform completely as contracted. The credit risk amounts
are equal to the contract sums, assuming the amounts are not paid in full and are
irrecoverable from other parties.
Commitments
EUR million
2024
2023
On own behalf
Guarantees
17
18
Other commitments
6
6
On behalf of associated companies
Guarantees
4
5
On behalf of others
Guarantees
16
16
Other commitments
0
0
Total
43
44
Guarantees
37
38
Other commitments
6
6
Total
43
44
In 2024, the Group’s commitments amounted to EUR 43 (44) million. In
addition, the parent company Stora Enso Oyj has guaranteed the liabilities
of many of its subsidiaries and joint operations up to EUR 792 (734) million
as of 31 December 2024.
Capital commitments
EUR million
2024
2023
Total
304
683
Capital expenditure commitments are not recognised in the balance
sheet and these include the Group’s share of direct capital expenditure
contracts in joint operations. The largest commitments in relation to
capital expenditure relate to the mill conversion at Oulu site in Finland.
Contingent liabilities
Stora Enso has undertaken significant restructuring actions in recent years
which have included the divestment of companies, sale of assets and mill
closures. These transactions include a risk of possible environmental or
other obligations the existence of which would be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the Group. A provision has been recognised for
obligations for which the related amount can be estimated reliably and for
which the related future cost is considered to be at least probable.
Stora Enso has been granted various investment subsidies and
compensations, and has made certain investment commitments in
several countries such as Finland, China, and Sweden. If commitments to
planning conditions are not met, local officials may pursue administrative
measures to reclaim some of the previously granted investment subsidies
or impose penalties on Stora Enso. The outcome of such a process could
result in adverse financial impact on Stora Enso.
Stora Enso has been granted investment subsidies and has given certain
investment commitments in China. There is a risk that the majority owned
local Chinese company may be subject to a claim based on alleged costs
resulting from certain uncompleted investment commitments. Given the
specific mitigating circumstances surrounding the investment case as a
whole, Stora Enso does not consider it to be probable that this situation
would result in an outflow of economic benefits that would be material to
the Group.
Stora Enso is party to legal proceedings that arise in the ordinary course of
business and which primarily involve claims arising out of commercial law.
The management does not consider that liabilities related to such
proceedings before insurance recoveries, if any, are likely to be material to
the Group’s financial condition or results of operations.
Veracel
On 11 July 2008, Stora Enso announced that a federal judge in Brazil had
issued a decision claiming that the permits issued by the State of Bahia for
the operations of Stora Enso’s joint operations company Veracel were not
valid. The judge also ordered Veracel to take certain actions, including
reforestation with native trees on part of Veracel’s plantations and a
possible fine of, at the time of the decision, BRL 20 (EUR 4) million. Veracel
disputes the decision and has filed an appeal against it. Veracel operates
in full compliance with all Brazilian laws and has obtained all the necessary
environmental and operating licences for its industrial and forestry
activities from the relevant authorities. In November 2008, a Federal Court
suspended the effects of the decision. No provisions have been recorded
in Veracel’s or Stora Enso’s accounts for the reforestation or the possible
fine.
7.2 Events after the reporting period
The were no significant adjusting or non-adjusting events after the
reporting period end.
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Audited 195
Parent company Stora Enso Oyj financial statements
Parent company income statement
Year ended 31 December
EUR million
Note
2024
2023
Sales
2
2,631
2,809
Changes in inventories of finished goods and work in progress + / -
25
-43
Production for own use
2
3
Other operating income
3
462
658
Materials and services
4
-1,992
-1,985
Personnel expenses
5
-298
-341
Depreciation and impairment
6
-183
-274
Other operating expenses
7
-895
-1,283
2,877
3,265
Operating profit / loss
-246
-455
Financial income and expenses
9
238
278
Profit before appropriations and taxes
-8
-177
Appropriations
10
68
222
Income tax expense
11
-3
0
Profit for the period
57
45
Parent company statement of financial position
Assets
Non-current assets
Intangible assets
13
54
53
Tangible assets
13
834
917
Investments
14
9,250
8,596
Non-current assets total
10,137
9,567
As at 31 December
EUR million
Note
2024
2023
Current assets
Inventories
15
543
473
Short-term receivables
16
1,296
2,257
Financial securities
17
1,007
1,550
Cash in hand and at bank
764
661
Total current assets
3,610
4,941
Total assets
13,746
14,508
Equity and liabilities
Equity
18
Share capital
1,342
1,342
Share premium
3,639
3,639
Fair value reserve
-2
14
Invested non-restricted equity fund
633
633
Retained earnings
751
864
Profit for the period
57
45
Total equity
6,421
6,537
Accumulated appropriations
19
192
201
Obligatory provisions
20
25
36
Liabilities
Non-current liabilities
22
3,386
4,123
Current liabilities
23
3,722
3,611
Total liabilities
7,109
7,734
Total equity and liabilities
13,746
14,508
As at 31 December
EUR million
Note
2024
2023
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Audited 196
Parent company cash flow statement
Cash provided by operating activities
Profit for the period
57
45
Adjustments and reversal of non-cash items:
Direct taxes
3
0
Appropriations
-68
-222
Depreciation according to plan and impairment
183
274
Unrealised foreign exchange gains and losses
15
38
Other non-cash items
-2
15
Financial income and expenses
-238
-278
Change in working capital:
Increase(-)/decrease(+) in current non-interest-bearing receivables
266
48
Increase(-)/decrease(+) in inventories
-70
101
Increase(+)/decrease(-) in current non-interest-bearing liabilities
118
-154
Cash flow from operating activities before financial items and taxes
263
-133
Interest received from operating activities
214
181
Interest paid from operating activities
-250
-173
Dividends received from operating activities
481
371
Other financial items, net
-33
36
Direct taxes paid
-11
-23
Cash provided by operating activities
665
259
Net cash provided by investing activities
Investments in tangible and intangible assets
-112
-166
Capital gains from sale of tangible and intangible assets
1
0
Investments in other financial assets
0
-16
Investments in subsidiary shares and other capital contributions
-538
0
Proceeds from disposal of subsidiary shares and other repayment of capital
3
0
Proceeds from disposal of other investments
1
0
Payments of non-current loan receivables
-961
-2,184
Proceeds from non-current loan receivables
1,700
780
Net cash provided by investing activities
96
-1,586
Year ended 31 December
EUR million
2024
2023
Cash flow from financing activities
Proceeds from (issue of) long-term liabilities
0
3,468
Proceeds from (payment of) long-term liabilities
-730
-1,623
Proceeds from (issue of) short-term liabilities
91
164
Proceeds from (payment of) short-term liabilities
-544
-249
Dividends paid
-147
-472
Group contributions received
133
0
Cash flow from financing activities
-1,197
1,287
Net change in cash and cash equivalents
-437
-39
Translation differences
-3
3
Cash and cash equivalents at start of year
2,211
2,247
Cash and cash equivalents at year end
1,771
2,211
Cash and cash equivalents at year end includes:
Financial securities
1,007
1,550
Cash in hand and at bank
764
661
Cash and cash equivalents total
1,771
2,211
Year ended 31 December
EUR million
2024
2023
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Financial Statements
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Audited 197
Notes to the parent company financial statements
Note 1 Accounting principles
The financial statements of Stora Enso Oyj have been prepared in
accordance with the Finnish Accounting Act and other current rules and
regulations concerning financial statements in Finland. The financial
statements are presented in millions of euros and rounded and therefore
the sum of individual figures might deviate from the presented total figure.
Derivative contracts
Stora Enso is exposed to several financial market risks that the Group is
responsible for managing under policies approved by the Board of
Directors. The objective is to have cost-effective funding in Group
companies and to manage financial risks using financial instruments in
order to decrease earnings volatility. The main exposures for the Group are
interest rate risk, currency risk, funding risk and commodity price risk,
especially for fiber and energy. The parent company manages these risks
centrally in the Group. The Group’s risk management principles are
presented in more detail in note 5.1 Financial Risk Management to the
consolidated financial statements.
Derivative contracts are measured at fair value on the balance sheet.
Derivatives with external counterparties that are subject to hedge
accounting are recognised as financial assets and liabilities at fair value
through the income statement in the same manner as the parent
company’s derivatives with other Group companies as counterparties. The
parent company’s derivative contracts that are used to hedge the parent
company’s own cash flow are measured at fair value, and the change in
fair value (effective part) is recognised, in line with hedge accounting
principles, in the fair value reserve in equity on the balance sheet, while the
ineffective part is recognised in the parent company’s income statement.
The change in fair value of derivatives not included in hedge accounting is
entered immediately in the income statement.
Interest income and expenses related to derivatives that are used to
manage the interest rate risk are allocated over the contract period and
are used to adjust interest expenses related to hedged loans. Option
premiums are recognised as advance payments until the options mature.
With regard to derivatives, more information about the measurement
principles, fair values and changes in fair value is provided in note 25
Financial instruments.
Foreign currency transactions
Transactions in foreign currencies are recorded at the rate of exchange
prevailing at the transaction date, but at the end of the month foreign-
currency-denominated receivables and liabilities are translated using the
month-end exchange rate.
Equity incentive schemes
The employees covered by the scope of Stora Enso Oyj’s share-based
incentive schemes are awarded with shares in the company. The awarded
shares and the costs of the schemes are recognised as an expense in the
income statement when the shares are delivered. The settlement covers
taxes and similar changes incurred. The principles of the Group’s share
opportunity programmes are presented in more detail in note 3.4
Employee variable compensation and equity incentive schemes to the
consolidated financial statements.
Pensions
Statutory pension security is arranged through employment pension
insurance companies outside the Group. Some employees have additional
pension security through life insurance companies outside the Group.
Pension contributions are allocated in accordance with performance-
based salaries and wages for the financial period.
Non-current assets
The balance sheet value of intangible and tangible assets is their direct
acquisition cost less depreciation according to plan and any impairment.
Depreciation according to plan is recognised for intangible and tangible
assets, based on their expected useful lives.
Depreciation is based on the following useful lives:
Buildings and structures
10–50 years
Production machinery and equipment
10–20 years
Light machinery and equipment
3–5 years
Intellectual property rights
3–20 years
No depreciation is recognised for land and water areas.
Interest in Group companies
Interest in the Group companies is measured at cost less any impairment
losses. Interest in the Group companies is assessed for impairment
annually.
The fair value of the subsidiary shares has been assessed mainly based on
income approach, in which the fair value of investment is calculated
based on the discounted cash flow model (DCF). Impairment need is
assessed by comparing the fair value of the subsidiary shares to the book
value in the parent company’s balance sheet and possible write down is
booked through profit or loss, if considered permanent in nature.
Loan receivables
Loan receivables are debt instruments with fixed or determinable
payments that are not quoted on an active market. They are recorded
initially at fair value and subsequently measured at an amortised cost.
Investments in subsidiaries and other companies are measured at cost, or
fair value in case the fair value is less than cost. Loan receivables are
presented in the balance sheet item Investments. The loan receivables are
mainly from Group companies.
Inventories
Inventories are measured at acquisition cost or at net realisable value if
lower. Acquisition cost is determined using the FIFO method or the
weighted average cost method. The cost of finished goods and work in
progress comprises raw materials, direct labour, depreciation and other
direct costs, as well as the related production overhead. Net realisable
value is the estimated selling price less the costs of completion and sale.
Leasing
Leasing payments are recognised in other operating expenses. The
remaining leasing payments under leasing agreements are presented in
note 24 Commitments and Contingencies.
Expenditure on research and development
Expenditure on research and development is recognised as an expense
for the financial period.
Income taxes
The tax expense on the income statement includes income taxes based
on the taxable profit for the financial period and tax adjustments for
previous periods. The parent company does not recognise deferred tax
assets and liabilities, excluding derivatives, in its financial statements.
Deferred tax assets and liabilities that can be recognised on the balance
sheet are presented in note 21 Deferred tax liabilities and receivables.
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Audited 198
Obligatory provisions
Future costs and losses that no longer generate corresponding income, to
which the company is committed or by which the company is obligated,
are recognised in the income statement according to their nature and in
obligatory provisions on the balance sheet.
Emission rights
For 2024, 0.4 million tonnes of free emission allowances in accordance with
the EU Emissions Trading Directive were allocated to the company.
Emission allowances are recognised through a net cash cost basis,
meaning that the difference between the actual emissions and the
emission allowances received is recognised through profit or loss if the
actual emissions are larger than the emission allowances received. During
the financial period, the emissions emitted were estimated at 0.3 million
tonnes. The emission rights purchased during the financial period are
recognised in other operating expenses, and the emission rights sold
during the financial period are recognised in other operating income.
At the end of the financial period, the market value of the emission rights
was EUR 70.95 per tonne.
Comparability of the information for the financial period
Stora Enso Paper Oy merged with the parent company Stora Enso Oyj as of
1 January 2024. The merger included the transfer of subsidiary shares a
total of EUR 572.0 million to the parent company’s balance sheet. The
merger loss of EUR 9.5 million is presented in note 7 Other operating
expenses.
Note 2 Net sales by division and market area
EUR million
2024
2023
By division
Packaging Materials
1,559
1,564
Biomaterials
160
351
Forest
658
596
Wood Products
161
158
Other
93
140
Total
2,631
2,809
Distribution by region
Finland
1,043
1,256
Other Europe
908
888
North and South America
179
211
Asia and Oceania
394
279
Africa
108
99
Others
0
76
Total
2,631
2,809
Note 3 Other operating income
EUR million
2024
2023
Rent and equivalents
2
3
Gains on sale of fixed assets
1
0
Insurance compensation
1
0
Subsidies, grants and equivalents
17
11
Administration services
47
64
Proceeds from sales of emission rights
63
75
Other operating income
1
332
505
Total
462
658
1 Other operating income consists mainly of items relating to the division based operating model in the Group.
Note 4 Materials and services
EUR million
2024
2023
Materials and supplies
Purchases during the period
1,501
1,402
Change in inventories +/-
-29
59
External services
520
524
Total Materials and Services
1,992
1,985
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Audited 199
Note 5 Personnel expenses and average number of employees
EUR million
2024
2023
Salaries and fees
242
278
Statutory employer costs
Pensions
48
52
Other personnel costs
8
10
Total
298
341
Remuneration for the CEO and the members of the Board of Directors
Remuneration for the CEO and the members of the Board of Directors is presented in note 3.2 Board and executive
remuneration to the consolidated financial statements.
Pension liabilities for the CEO
Pension liabilities for the CEO are presented in note 3.2 Board and executive remuneration to the consolidated
financial statements.
Receivables from management
There were no loan receivables from the company’s management.
Average number of employees
2024
2023
Number of employees during the financial period
3,664
4,048
Note 6 Depreciation and impairment
EUR million
2024
2023
Depreciation according to plan
115
126
Impairment of fixed assets
68
148
Total
183
274
Depreciation and amortisation on each item in the statement of financial position is included under intangible and tangible assets.
Note 7 Other operating expenses
EUR million
2024
2023
Product freight
193
204
Sales commissions
56
60
Rental costs
22
22
Administration and office services
313
330
Insurance premiums
21
18
Other personnel expenses
17
18
Representation costs
0
0
Public and other relations
4
4
Emission rights expenses
51
60
Other operating expenses
1
208
563
Merger loss
9
4
Total
895
1,283
1 Other operating expenses consist mainly of items relating to the division based operating model in the Group.
Note 8 Auditors’ fees
EUR million
2024
2023
Audit fees
1
1
Other audit-related fees
0
0
Tax fees
0
0
Other fees
0
0
Total
2
2
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Audited 200
Note 9 Financial income and expenses
EUR million
2024
2023
Dividend income
From Group companies
480
346
From associated companies
29
25
From others
3
1
Total
511
371
Interest income from non-current investments
From Group companies
93
96
From associated companies
2
1
From others
0
1
Total
95
98
Other interest and financial income
From Group companies
42
48
From others
74
54
Total
116
102
Total financial income
722
571
Interest and other financial expenses
To Group companies
-85
-69
Other financial expenses
-200
-149
Total
-285
-217
Impairment on investments
Impairment on investments in non-current assets
-199
-75
Total financial expenses
-484
-293
Total financial income and expenses
238
278
The item “Financial Income and Expenses” includes exchange rate gains/losses (net)
-9
15
Note 10 Appropriations
EUR million
2024
2023
Difference between depreciation according to plan and depreciation recognised in taxation
9
89
Group contributions received
59
133
Total appropriations
68
222
Note 11 Income tax expense
EUR million
2024
2023
Income taxes from primary operations for the period
-3
0
Total income tax
-3
0
Note 12 Environmental expenses
EUR million
2024
2023
Materials and services
30
40
Personnel expenses
4
3
Depreciation and impairment
11
29
Total
44
72
Air quality protection
5
19
Wastewater treatment
22
34
Waste management
10
12
Soil and groundwater protection
1
1
Noise and vibration prevention
0
0
Other environmental protection measures
6
5
Total
44
72
Our year 2024
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Audited 201
Note 13 Intangible and tangible assets
Intangible assets
EUR million
Intellectual
property
rights
Other non-
current
expenditure
Advance
payments
and
acquisitions in
progress
Total
Acquisition cost 1 Jan
180
26
25
231
Increases
3
0
12
16
Increases merger
1
0
0
1
Decreases
-4
0
0
-4
Reclassification
15
0
-15
0
Acquisition cost 31 Dec
195
26
23
244
Accumulated depreciation and impairment 1 Jan
-153
-25
0
-178
Accumulated depreciation transferred in mergers
-1
0
0
-1
Accumulated depreciation on decreases and reclassifications
4
0
0
4
Depreciation for the period
-13
0
0
-13
Impairments
-2
-1
0
-3
Accumulated depreciation 31 Dec
-165
-25
0
-190
Book value on 31 December 2024
30
1
23
54
Book value on 31 December 2023
27
2
25
53
Tangible assets
EUR million
Land and
water areas
Buildings and
structures
Plant and
equipment
Other tangible
assets
Advance
payments
and
acquisitions in
progress
Total
Acquisition cost 1 Jan
18
626
3,006
184
59
3,893
Increases
0
1
42
0
40
83
Decreases
0
-1
-19
-2
0
-22
Reclassification
0
1
36
0
-38
0
Acquisition cost 31 Dec
18
628
3,065
182
62
3,954
Accumulated depreciation and
impairment 1 Jan
0
-466
-2,347
-165
0
-2,977
Accumulated depreciation on
decreases and reclassifications
0
1
19
2
0
22
Depreciation for the period
0
-13
-87
-2
0
-102
Impairment for the period
-4
-5
-56
0
0
-65
Accumulated depreciation 31 Dec
-4
-483
-2,471
-165
0
-3,123
Increase in value 1 Jan
2
0
0
0
0
2
Decreases
0
0
0
0
0
0
Increase in value 31 Dec
2
0
0
0
0
2
Book value on 31 December 2024
16
145
594
18
62
834
Book value on 31 December 2023
20
160
659
19
59
917
Production plant and equipment
Book value on 31 December 2024
581
Book value on 31 December 2023
626
Advance payments and acquisitions in progress
EUR million
Intangible
assets
Buildings and
structures
Plant and
equipment
Total
Acquisition cost 1 Jan
25
1
58
84
Increases
12
0
40
52
Reclassification
-15
-1
-36
-52
Acquisition cost 31 Dec 2024
23
0
62
84
Our year 2024
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Audited 202
Capitalised environmental expenditure
31 Dec 2024
EUR million
Land and
water areas
Buildings and
structures
Plant and
equipment
Other tangible
assets
Advance
payments
and
acquisitions in
progress
Total
Acquisition cost 1 Jan
4
22
46
3
18
93
Increases
0
1
12
0
6
18
Depreciations for the period
0
-1
-9
-1
0
-11
Book value on 31 December 2024
3
22
48
3
24
100
Air quality protection
0
8
40
0
14
63
Wastewater treatment
0
2
7
0
6
15
Waste management
2
0
0
2
0
5
Soil and groundwater protection
1
11
1
0
3
16
Noise and vibration prevention
0
0
1
1
0
1
3
22
48
3
24
100
31 Dec 2023
EUR million
Land and
water areas
Buildings and
structures
Plant and
equipment
Other tangible
assets
Advance
payments
and
acquisitions in
progress
Total
Acquisition cost 1 Jan
4
21
53
4
19
101
Increases
0
5
17
0
-1
21
Depreciations for the period
0
-4
-24
-1
0
-29
Book value on 31 December 2023
4
22
46
3
18
93
Air quality protection
1
6
33
0
11
50
Wastewater treatment
0
4
10
0
4
18
Waste management
2
1
1
2
1
7
Soil and groundwater protection
1
12
2
1
2
17
Noise and vibration prevention
0
0
1
1
0
1
4
22
46
3
18
93
In 2024 and 2023, no environmentally based fines, charges or compensation were paid. Subsidies were received for
environmental protection of EUR 0.0 million (EUR 0.9 million in 2023)
Note 14 Non-current investments in shares and loan receivables
EUR million
Shares in
Group
companies
Loan
receivables
from Group
companies
Shares in
associated
companies
Loan
receivables
from
associated
companies
Other
shares
Other
receivables
Total
investments
Acquisition cost 1 Jan
6,830
1,916
37
25
209
68
9,085
Increases
1,110
25
0
1
0
7
1,143
Decreases
-123
-107
0
0
-1
-59
-289
Acquisition cost 31 Dec
7,817
1,834
37
26
209
16
9,939
Impairments 1 Jan
-483
0
0
0
-1
-5
-490
Increases
-181
0
0
0
-18
0
-199
Impairments 31 Dec
-664
0
0
0
-20
-5
-689
Book value on 31 December 2024
7,153
1,834
37
26
189
11
9,250
Book value on 31 December 2023
6,347
1,916
37
25
208
63
8,596
Note 15 Inventories
2024
2023
Materials and supplies
258
229
Work in progress
9
9
Finished goods
232
206
Other inventories
0
0
Prepayments
44
28
Total
543
473
Our year 2024
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Audited 203
Note 16 Short-term receivables
Short-term loan receivables
Receivables from Group companies
Loan receivables
798
1,455
Commodity derivative receivables
2
0
Interest receivables
50
38
Total
850
1,493
Receivables from associated companies
Loan receivables
10
0
Total
10
0
Receivables from others
Loan receivables
21
11
Commodity derivative receivables
0
0
Other receivables
6
36
Interest receivables
9
12
Total
35
59
Total current interest-bearing receivables
896
1,553
EUR million
2024
2023
Current non-interest-bearing receivables
Receivables from Group companies
Trade receivables
153
240
Other receivables
58
274
Total
211
515
Receivables from equity accounted investments
Trade receivables
1
1
Total
1
1
Receivables from others
Trade receivables
109
137
Deferred tax assets
2
0
Other receivables
53
32
Accrued income
24
21
Total
187
189
Stora Enso may enter into factoring agreements to sell trade receivables in order to accelerate cash conversion. Nominally, such agreements led to the nominal
derecognition of EUR 59.7 million (EUR 42.8 million in 2023) by the end of the financial period. The continuing involvement of Stora Enso in the sold receivables was estimated
as being insignificant due to the non-recourse nature of the factoring arrangements involved.
EUR million
2024
2023
EUR million
2024
2023
Total current non-interest-bearing receivables
399
705
Total current receivables
1,296
2,257
Significant accruals
Tax-equivalent receivables
0
0
Advances paid
10
8
Other accruals
14
13
Total
24
21
Note 17 Financial securities
EUR million
2024
2023
From Group companies
2
16
From others
1,005
1,534
Total
1,007
1,550
Our year 2024
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Audited 204
Note 18 Shareholders’ equity
EUR million
2024
2023
Restricted shareholders’ equity
Share capital 1 Jan
1,342
1,342
Share capital 31 Dec
1,342
1,342
Share premium fund 1 Jan
3,639
3,639
Share premium fund 31 Dec
3,639
3,639
Fair value reserve 1 Jan
14
25
Increase (-) / Decrease (+)
-16
-11
Fair value reserve 31 Dec
-2
14
Total restricted equity
4,979
4,995
Change in share capital and number of shares are presented in Note 5.5 to the consolidated financial statements.
Non-restricted shareholders’ equity
Invested unrestricted equity reserve 1 Jan
633
633
Invested unrestricted equity reserve 31 Dec
633
633
Retained earnings 1 Jan
909
1,338
Dividend distribution
-158
-473
Retained earnings 31 Dec
751
864
Profit for the period
57
45
Total non-restricted equity
1,442
1,542
Total shareholders’ equity
6,421
6,537
Calculation of distributable equity 31 Dec
Fair value reserve 31 Dec
-2
0
Invested unrestricted equity reserve 31 Dec
633
633
Retained earnings 31 Dec
751
864
Profit for the period
57
45
Total
1,440
1,542
Note 19 Accumulated appropriations
EUR million
2024
2023
Depreciation difference
Intellectual property rights
-6
-4
Goodwill
0
0
Other non-current expenditure
-2
-2
Buildings and structures
13
13
Plant and equipment
190
198
Other tangible assets
-2
-3
Total
192
201
Note 20 Obligatory provisions
EUR million
2024
2023
Restructuring provisions
3
20
Environmental provisions
20
14
Pension provisions
0
1
Other provisions
2
1
Total
25
36
Note 21 Deferred tax liabilities and receivables
EUR million
2024
2023
Deferred tax liability due to depreciation difference
-19
-23
Deferred tax receivables and liabilities due to derivatives
1
-4
Deferred tax receivable due to loss
94
48
Deferred tax receivable due to provisions
5
7
Deferred tax receivables and liabilities due to other temporary differences
6
-1
Total deferred tax receivable
87
27
Deferred tax liabilities and receivables excluding derivatives have not been recognised on the balance sheet.
Our year 2024
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Audited 205
Note 22 Non-current liabilities
EUR million
2024
2023
Non-current liabilities
Bonds
3,029
3,472
Loans from credit institutions
355
651
Other non-current liabilities
1
0
Other non-current liabilities to group companies
1
0
Total
3,386
4,123
Liabilities with maturities later than five years
Bonds
823
1,303
Other non-current liabilities
22
4
Total
845
1,308
Specifications of Bond loans are presented in note 5.3 Interest-bearing liabilities in consolidated financial statements.
Note 23 Current liabilities
Current interest-bearing liabilities
Liabilities to Group companies
Other loans
1,798
2,396
Interest due
0
0
Total
1,798
2,396
Liabilities to others
Other loans
242
224
Commodity derivative liabilities
2
0
Interest due
50
50
Bonds
430
136
Loans from credit institutions
400
100
Total
1,124
511
Total current interest-bearing liabilities
2,922
2,907
EUR million
2024
2023
Current non-interest-bearing liabilities
Liabilities to Group companies
Trade payables
64
72
Commodity derivative liabilities
1
1
Accrued liabilities and deferred income
0
3
Total
65
75
Liabilities to associated companies
Trade payables
187
126
Total
187
126
Liabilities to others
Advances received
3
6
Trade payables
427
393
Other loans
34
22
Accrued liabilities and deferred income
85
82
Total
548
503
Total current non-interest-bearing liabilities
800
704
Total current liabilities
3,722
3,611
Substantial accrued liabilities and deferred income
Payroll payments accrued
58
56
Annual discounts
14
12
Other accrued liabilities and deferred income
12
14
Total
85
82
EUR million
2024
2023
Our year 2024
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Audited 206
Note 24 Commitments and contingencies
EUR million
2024
2023
On own behalf, for own debt
Mortgages
0
0
For Group debt
Guarantees
792
734
On behalf of Associated companies
Guarantees
4
5
On behalf of others
Guarantees
10
10
Other commitments, own
Leasing commitments, in next 12 months
22
9
Leasing commitments, after next 12 months
30
13
Lease commitments
6
5
Other commitments
15
15
Total
879
792
Mortgages
0
0
Guarantees
806
748
Leasing commitments
52
23
Lease commitments
6
5
Other commitments
15
15
Total
879
792
Contingent liabilities
Stora Enso Oyj has implemented significant restructuring measures in recent years. These measures have included
divestments of business operations and production units, as well as mill closures. These transactions include a risk
of possible environmental or other obligations, the existence of which would be confirmed only by the occurrence
or non-occurrence of one or more uncertain future events not wholly within the control of the Group. A provision
has been recognised for obligations for which the related amount can be estimated reliably and the occurrence of
which is considered likely.
Stora Enso Oyj has been granted various investment subsidies and has given certain investment commitments in
Finland. If committed planning conditions are not met, local officials may pursue administrative measures to
reclaim some of the formerly granted investment subsidies or to impose penalties on Stora Enso Oyj and the
outcome of such a process could result in a negative financial impact on Stora Enso Oyj.
Stora Enso Oyj is party to legal proceedings that arise in the ordinary course of business and primarily involve
claims arising out of commercial law. The company management does not believe that such processes as a
whole, before any insurance compensation, would have significant impacts on the company’s financial position or
profit from operations. Some of the most significant legal proceedings are described in note 7.1 to the consolidated
financial statements.
Note 25 Financial instruments
Valuation of derivatives
The fair value is defined as the amount at which a derivative instrument could be exchanged in an orderly
transaction between market participants at the measurement date. The fair values of such instruments are
determined on the following basis:
• Foreign exchange forward contract fair values are calculated using forward exchange rates on the reporting
date.
• Foreign exchange option contract fair values are calculated using reporting date market rates together with
common option pricing models.
• Commodity contract fair values are computed with reference to quoted market prices on futures exchanges or
other reliable market sources.
• Interest rate swaps fair values are calculated using a discounted cash flow method.
Fair value hierarchy
Stora Enso uses the following hierarchy for determining and disclosing the fair value of financial instruments by
valuation technique:
• Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities;
• Level 2: other techniques, for which all inputs that have a significant effect on the recorded fair value are
observable, either directly or indirectly;
• Level 3: techniques which use inputs that have a significant effect on the recorded fair values that are not based
on observable market data.
The parent company’s derivatives are classified as Level 2 in the fair value hierarchy.
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Audited 207
Nominal and fair values of derivative instruments
As at 31 December 2024
EUR million
Nominal
values
Positive fair
values
Negative fair
values
Fair values,
Net
Cash flow hedges entered on behalf of the parent company and its
subsidiaries, for which hedge accounting is applied in target
companies
Foreign exchange forwards
2,491
34
-41
-7
Foreign exchange options
1,280
7
-8
-1
Commodity contracts
167
4
-4
0
Interest rate swaps
346
6
0
6
Non-hedge accounted derivatives
Foreign exchange forwards
774
2
-4
-2
Total
5,058
52
-56
-4
of which against subsidiaries
2,138
38
-9
28
of which against external parties
2,920
15
-47
-32
As at 31 December 2023
EUR million
Nominal
values
Positive fair
values
Negative fair
values
Fair values,
Net
Cash flow hedges entered on behalf of the
parent company and its subsidiaries, for which
hedge accounting is applied in target companies
Currency forwards
2,284
34
-34
1
Currency options
667
7
-5
2
Commodity contracts
27
1
-1
0
Interest rate swaps
443
16
0
16
Non-hedge accounted derivatives
Currency forwards
588
5
-5
0
Commodity contracts
0
0
0
0
Total
4,009
63
-44
19
of which against subsidiaries
1,586
6
-37
-31
of which against external parties
2,423
56
-7
49
Fair value reserve
The net amount of the parent company’s unrealised cash flow hedge loss in the fair value reserve was EUR -2.2
(14.3) million, which was related to currency and interest rate derivatives. Currency and interest rate derivatives
also include a gain of EUR 0.2 (0.2) million related to the time value of options. These unrealised gains are
recognised in the income statement upon the maturity of the hedging contracts. The longest hedging contract will
mature in 2027. However, the majority of the contracts are expected to mature during 2025. The ineffective portions
of hedges are recognised as adjustments to financial items, revenue or materials and services according to the
hedged item. During 2024 and 2023, there were no material ineffectiveness related to hedges recognised in the
income statement. Derivatives used in currency cash flow hedges are mainly forward contracts and options.
Swaps are mainly used in commodity hedges and interest rate cash flow hedges.
Hedge gains and losses in operating profit
EUR million
2024
2023
Cash flow hedge accounted derivatives
Currency hedges
-2
2
Total
-2
2
As adjustments to sales
-2
2
As adjustments to materials and services
0
0
Items realised from the fair value reserve that are recognised in the income statement
-2
2
Net losses from cash flow hedges
-2
2
Non-hedge accounted derivatives
Currency derivatives
-2
0
Net gains on non-hedge accounted derivatives
-2
0
Net hedge gains/losses in operating profit
-4
2
Hedge gains and losses in financial items
EUR million
2024
2023
Non-hedge accounted derivatives
Currency derivatives
3
-21
Net gains/losses in financial items
3
-21
Our year 2024
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Financial Statements
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Audited 208
Sensitivity of currency derivatives to strengthening of EUR
31 December 2024
EUR million
SEK
USD
GBP
Currency change against EUR
-5.0 %
-5.0 %
-5.0 %
Nominals of currency derivatives hedging next 12 months cash flow in EUR
0
-81
-6
Estimated effect on fair value reserve in EUR (net of taxes)
0
6
0
Sensitivity of commodity derivatives to price risk
There were no outstanding commodity derivatives related to parent company’s cash flows at the end of reporting
period.
More detailed information about financial instruments are presented in note 5.1 Financial risk management, note
5.2 Fair values and note 5.4 Derivatives to the consolidated financial statements.
Note 26 Related party transactions
EUR million
2024
2023
Related party transactions with associated companies and joint ventures:
Purchase of materials and supplies during the year
22
23
Interest income on non-current loan receivables
0
1
Non-current loan receivables at year end
3
26
Trade payables at year end
44
126
The Group’s principles for related party transactions are presented in note 6.3 to the consolidated financial statements. In the parent company’s notes 14, 16, 22, and 23, the
loans with group companies are specified. The terms have complied with company’s established principles and policies and adhered to arm’s length principle.
Note 27 Separated Electricity business statements
According to the Electricity Market Act (588/2013), a company operating in the electricity market, must separate its
electricity business from its other business operations.
Basis of preparation of the separated electricity business statements: income, costs, assets and liabilities
immediately attributable to the electricity business are allocated directly and indirect costs and non-attributable
items are allocated according to allocation or allocation keys.
Electricity business income statement
31 December
EUR million
2024
2023
Sales
87
126
Other operating income
0
1
Materials and services
-65
-113
Personnel expenses
0
0
Depreciation and impairment
-6
-14
Other operating expenses
-1
-1
Operating profit
16
-2
Profit before Appropriations and Taxes
16
-2
Appropriations
0
5
Profit before Taxes
17
3
Income tax expense and windfall tax
-3
-1
Profit / loss for the period
13
2
Our year 2024
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Financial Statements
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Audited 209
Electricity business statement of financial position
Assets
Non-current assets
Tangible assets
28
47
Investments
171
190
Non-current assets total
199
237
Current assets
Short-term receivables
13
24
Total current assets
13
24
Total assets
212
261
Equity and liabilities
Equity
Share capital
35
35
Share premium
95
95
Invested non-restricted equity fund
17
17
Retained earnings
42
39
Profit for the period
13
2
Total equity
202
189
Accumulated appropriations
6
10
Liabilities
Non-current liabilities
—
52
Current liabilities
4
10
Total liabilities
4
62
Total equity and liabilities
212
261
As at 31 December
EUR million
2024
2023
Our year 2024
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Report of the Board of Directors
Financial Statements
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Audited 210
Signatures for the financial statements
These financial statements are prepared in accordance with the applicable accounting standards and give a true
and fair view of the assets, liabilities, financial position and profit or loss of the Group and of the companies
included in its consolidated financial statements. The report of the Board of Directors includes a fair review of the
development and performance of the Group and of the companies included in its consolidated accounts, together
with a description of the principal risks and uncertainties and the financial position of the Company. The
sustainability statements included in the Report of the Board of Directors have been prepared in accordance with
the reporting standards referred to in Chapter 7 of the Finnish Accounting Act and Article 8 of the Taxonomy
Regulation.
10 February 2025
Kari Jordan
Håkan Buskhe
Chair
Vice Chair
Elisabeth Fleuriot
Helena Hedblom
Astrid Hermann
Christiane Kuehne
Richard Nilsson
Reima Rytsölä
Hans Sohlström
President and CEO
Our year 2024
This is Stora Enso
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Governance
Shareholders
Report of the Board of Directors
Financial Statements
Appendices
≡
Audited 211
Auditor’s Report (Translation of the Finnish Original)
To the Annual General Meeting of Stora Enso Oyj
Report on the Audit of the Financial Statements
Opinion
In our opinion
• the consolidated financial statements give a true and fair view of the group’s financial position, financial
performance and cash flows in accordance with IFRS Accounting Standards as adopted by the EU
• the financial statements give a true and fair view of the parent company’s financial performance and financial
position in accordance with the laws and regulations governing the preparation of financial statements in
Finland and comply with statutory requirements.
Our opinion is consistent with the additional report to the Audit Committee.
What we have audited
We have audited the financial statements of Stora Enso Oyj (business identity code 1039050-8) for the year ended
31 December 2024. The financial statements comprise:
• the consolidated statement of financial position, consolidated income statement, consolidated statement of
comprehensive income, statement of changes in equity, consolidated cash flow statement and notes to the
consolidated financial statements, which include material accounting policy information and other explanatory
information
• the parent company statement of financial position, parent company income statement, parent company cash
flow statement and notes to the parent company financial statements.
Basis for Opinion
We conducted our audit in accordance with good auditing practice in Finland. Our responsibilities under good
auditing practice are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements
section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Independence
We are independent of the parent company and of the group companies in accordance with the ethical
requirements that are applicable in Finland and are relevant to our audit, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
To the best of our knowledge and belief, the non-audit services that we have provided to the parent company and
group companies are in accordance with the applicable law and regulations in Finland and we have not provided
non-audit services that are prohibited under Article 5(1) of Regulation (EU) No 537/2014. The non-audit services that
we have provided are disclosed in note 2.2 to the Consolidated Financial Statements.
Our Audit Approach
Overview
• We have applied an overall group materiality of EUR 60 million.
• We performed audit procedures at 23 reporting components in 10 countries that are
considered significant based on our overall risk assessment and materiality.
• Valuation of forest assets
• Provisions and contingent liabilities
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the
financial statements. In particular, we considered where management made subjective judgements; for example,
in respect of significant accounting estimates that involved making assumptions and considering future events
that are inherently uncertain.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable
assurance whether the financial statements are free from material misstatement. Misstatements may arise due to
fraud or error. They are considered material if individually or in aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of the financial statements.
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Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the
overall group materiality for the consolidated financial statements as set out in the table below. These, together
with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of
our audit procedures and to evaluate the effect of misstatements on the financial statements as a whole.
Overall group materiality
EUR 60 million
How we determined it
Based on operating profit and total assets
Rationale for the materiality benchmark applied
We chose operating profit and total assets as the benchmarks because, in our
view, they are relevant benchmarks against which the performance of the group is
commonly measured by users of the financial statements.
How we tailored our group audit scope
We tailored the scope of our audit, taking into account the structure of the group, the accounting processes and
controls, and the industry in which the group operates.
The Group operates through a number of legal entities or other reporting components globally. We determined
the nature, timing and extent of audit work that needed to be performed at reporting components by us, as the
group engagement team, or component auditors operating under our instruction. Where the work was performed
by component auditors, we issued audit instructions to those auditors including our risk analysis, materiality and
global audit approach. We performed audit procedures at 23 reporting components in 10 countries that are
considered significant based on our overall risk assessment and materiality. We have considered that the
remaining reporting components do not present a reasonable risk of material misstatement for consolidated
financial statements and thus our procedures related to these reporting components have been limited to
analytical procedures performed at group level and to possible targeted audit procedures over individual
significant balances.
By performing the procedures above at reporting components, combined with additional procedures at the group
level, we have obtained sufficient and appropriate evidence regarding the financial information of the group as a
whole to provide a basis for our opinion on the consolidated financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the financial statements of the current period. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
As in all of our audits, we also addressed the risk of management override of internal controls, including among
other matters consideration of whether there was evidence of bias that represented a risk of material
misstatement due to fraud.
Key audit matter in the audit of the group
How our audit addressed the key audit matter
Valuation of forest assets
Refer to Note 1.2 and Note 4.2 in the consolidated financial
statements for the related disclosures.
Forest assets comprise of biological assets and forest land
excluding leased forest land assets. As of December 31, 2024
the fair value of the Group’s forest assets owned through
subsidiaries, joint operations and associated companies was
EUR 8 701 million. The fair value of EUR 6 579 million was related
to biological assets and EUR 2 122 million was related to
forest land.
Forest assets in Sweden and Finland are recognised at fair
value and valued by using a market approach method on the
basis of the forest market transactions in the areas where
Stora Enso’s forests are located.
Market prices between areas vary significantly and judgment
is applied to define relevant areas for market transactions
used in the valuation. Market transaction data is adjusted to
consider characteristics and nature of the Group’s forest
assets and to exclude certain non-forest assets and
transactions considered as outliers compared to other
transactions. Biological assets valuation is calculated based
on a discounted cash flow (DCF) method in accordance with
IAS 41 Agriculture. For forest land the revaluation method is
applied as defined in IAS 16 Property, plant and equipment.
Forest land is revalued using a DCF method based on
estimated future net cash flow streams related to trees to-
be-planted in the future as well as other income, such as
hunting rights, wind power leases and soil material sales.
Total value determined for biological assets and forest land
agrees to the market transaction based fair value of forest
assets as a discount rate implied by the market transactions
is used in the DCF method to value these assets.
The value of biological assets outside Sweden and Finland is
measured based on fair value less cost to sell. The fair value is
determined using a DCF method based on sustainable forest
management plans taking into account the growth potential
of one cycle. The one cycle varies depending on the
geographic location and species. Determining the
discounted cash flows requires estimates of growth, harvest,
sales price and costs.
We obtained an understanding of management’s forest
assets valuation process, evaluated the design and tested
the operating effectiveness of internal controls related to
directly and indirectly owned forest assets.
Our audit procedures over valuation of directly owned forest
asset included:
• Evaluation of the methodology adopted by management
for the valuation;
• Testing the mathematical accuracy of the model used for
valuation;
• Assessment of the discount rates applied in the valuation;
• Assessment of the other key valuation assumptions; and
• Validation of key inputs and data used in the valuation
model including sales price assumptions, growth
assumptions and cost assumptions.
In addition, specific to the market transaction based
valuation our audit procedures included:
• Assessment of the definition of relevant areas for market
transactions used in the valuation;
• Assessment of the adjustments made to the market
transaction data; and
• Validation of key inputs and data used in the valuation
model including market transaction data and volume of
standing trees.
We involved valuation specialists in the audit work over
valuation of directly owned forest assets.
Related to indirectly owned forest assets we have
communicated with the auditors of the three largest
associates and joint operations. As part of
the communication, among other things, we have evaluated
the audit procedures performed and conclusions reached
related to valuation of forest assets.
In addition, we assessed the appropriateness of disclosures
related to forest assets.
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The other European forest lands are revalued by using a DCF
method based on its estimated future net cash flows related
to trees to-be-planted in the future as well as other non-
forest related income. The forest land for the plantations is
accounted at cost.
Due to the level of judgment involved in the valuation of forest
assets as well as the significance of forest assets to the
Group’s financial position, this is considered to be a key audit
matter.
Provisions and contingent liabilities
Refer to Note 1.2, Note 4.9 and Note 7.1 in the consolidated
financial statements for the related disclosures.
As of 31 December 2024, the Group had environmental,
restructuring and other provisions totaling EUR 118 million.
In addition, the Group has disclosed significant open legal
cases and contingent liabilities in Note 7.1.
The assessment of the existence of the present legal or
constructive obligation, the analysis of the probability of the
outflow of future economic benefits, and making a reliable
estimate, require management’s judgment to ensure
appropriate accounting and disclosures.
Due to the level of judgment relating to recognition, valuation
and presentation of provisions and contingent liabilities, this
is considered to be a key audit matter.
We obtained an understanding of management’s process to
identify new obligations and changes in existing obligations.
We analysed significant changes in material provisions from
prior periods and obtained a detailed understanding of these
changes and assumptions applied.
Our audit procedures related to material provisions
recognized included:
• Assessment of the recognition criteria for the liability;
• Evaluation of the methodology adopted by management
for the measurement of the liability;
• Testing of the mathematical accuracy of the
measurement calculation;
• Assessment of the discount rates applied in
the measurement; and
• Assessment of the other key measurement assumptions
and inputs.
We obtained legal letters on the main outstanding legal
cases.
We reviewed minutes of the meetings of the board of
directors and board committees.
We assessed the appropriateness of the presentation of the
most significant contingent liabilities in the consolidated
financial statements.
We have no key audit matters to report with respect to our audit of the parent company financial statements.
There are no significant risks of material misstatement referred to in Article 10(2c) of Regulation (EU) No 537/2014 with respect to
the consolidated financial statements or the parent company financial statements.
Responsibilities of the Board of Directors and
the Managing Director for the Financial Statements
The Board of Directors and the Managing Director are responsible for the preparation of consolidated financial
statements that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU, and
of financial statements that give a true and fair view in accordance with the laws and regulations governing the
preparation of financial statements in Finland and comply with statutory requirements. The Board of Directors and
the Managing Director are also responsible for such internal control as they determine is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors and the Managing Director are responsible for
assessing the parent company’s and the group’s ability to continue as a going concern, disclosing, as applicable,
matters relating to going concern and using the going concern basis of accounting. The financial statements are
prepared using the going concern basis of accounting unless there is an intention to liquidate the parent company
or the group or to cease operations, or there is no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with good auditing practice will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with good auditing practice, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
parent company’s or the group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
• Conclude on the appropriateness of the Board of Directors’ and the Managing Director’s use of the going
concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the parent company’s or the group’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention
in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the parent company or the group to cease to continue
as a going concern.
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• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,
and whether the financial statements represent the underlying transactions and events so that the financial
statements give a true and fair view.
• Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial
information of the entities or business units within the group as a basis for forming an opinion on the group
financial statements. We are responsible for the direction, supervision and review of the audit work performed for
purposes of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Other Reporting Requirements
Appointment
We were first appointed as auditors by the annual general meeting on 28 March 2018.
Other Information
The Board of Directors and the Managing Director are responsible for the other information. The other information
comprises the report of the Board of Directors.
Our opinion on the financial statements does not cover the other information.
In connection with our audit of the financial statements, our responsibility is to read the other information
identified above and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
With respect to the report of the Board of Directors, our responsibility also includes considering whether the report
of the Board of Directors has been prepared in compliance with the applicable provisions, excluding the
sustainability report information on which there are provisions in Chapter 7 of the Accounting Act and in
the sustainability reporting standards.
In our opinion the information in the report of the Board of Directors is consistent with the information in
the financial statements and the report of the Board of Directors has been prepared in compliance with
the applicable provisions. Our opinion does not cover the sustainability report information on which there are
provisions in Chapter 7 of the Accounting Act and in the sustainability reporting standards.
If, based on the work we have performed, we conclude that there is a material misstatement of the report of
the Board of Directors, we are required to report that fact. We have nothing to report in this regard.
Other Statements
We support the proposal that the financial statements are adopted. The proposal by the Board of Directors
regarding the distribution of profits is in compliance with the Limited Liability Companies Act. We support that
the Board of Directors and the Managing Director of the parent company should be discharged from liability for
the financial period audited by us.
Helsinki 12 February 2025
PricewaterhouseCoopers Oy
Authorised Public Accountants
Samuli Perälä
Authorised Public Accountant (KHT)
Our year 2024
This is Stora Enso
Our strategy
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Governance
Shareholders
Report of the Board of Directors
Financial Statements
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Audited 215
Assurance Report on the Sustainability Statement (Translation of the Finnish Original)
To the Annual General Meeting of Stora Enso Oyj
We have performed a limited assurance engagement on the group sustainability statement of Stora Enso Oyj
(business identity code 1039050-8) that is referred to in Chapter 7 of the Accounting Act and that is included in
the report of the Board of Directors for the reporting period 1.1.–31.12.2024.
Opinion
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our
attention that causes us to believe that the group sustainability statement does not comply, in all material
respects, with
1)
the requirements laid down in Chapter 7 of the Accounting Act and the sustainability reporting standards
(ESRS);
2)
the requirements laid down in Article 8 of the Regulation (EU) 2020/852 of the European Parliament and of
the Council on the establishment of a framework to facilitate sustainable investment, and amending
Regulation (EU) 2019/2088 (EU Taxonomy).
Point 1 above also contains the process in which Stora Enso Oyj has identified the information for reporting in
accordance with the sustainability reporting standards (double materiality assessment).
Our opinion does not cover the tagging of the group sustainability statement in accordance with Chapter 7,
Section 22, of the Accounting Act, because sustainability reporting companies have not had the possibility to
comply with that requirement in the absence of the ESEF regulation or other European Union legislation.
Basis for Opinion
We performed the assurance of the group sustainability statement as a limited assurance engagement in
compliance with good assurance practice in Finland and with the International Standard on Assurance
Engagements (ISAE) 3000 (Revised) Assurance Engagements Other than Audits or Reviews of Historical
Financial Information.
Our responsibilities under this standard are further described in the Responsibilities of the Authorised Group
Sustainability Auditor section of our report.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Authorised Group Sustainability Auditor's Independence and Quality Management
We are independent of the parent company and of the group companies in accordance with the ethical
requirements that are applicable in Finland and are relevant to our engagement, and we have fulfilled our other
ethical responsibilities in accordance with these requirements.
Our firm applies International Standard on Quality Management ISQM 1, which requires the firm to design,
implement and operate a system of quality management including policies or procedures regarding compliance
with ethical requirements, professional standards and applicable legal and regulatory requirements.
Responsibilities of the Board of Directors and the Managing Director
The Board of Directors and the Managing Director of Stora Enso Oyj are responsible for:
• the group sustainability statement and for its preparation and presentation in accordance with the provisions of
Chapter 7 of the Accounting Act, including the process that has been defined in the sustainability reporting
standards and in which the information for reporting in accordance with the sustainability reporting standards
has been identified;
• the compliance of the group sustainability statement with the requirements laid down in Article 8 of the
Regulation (EU) 2020/852 of the European Parliament and of the Council on the establishment of a framework to
facilitate sustainable investment, and amending Regulation (EU) 2019/2088;
• such internal control as the Board of Directors and the Managing Director determine is necessary to enable the
preparation of a group sustainability statement that is free from material misstatement, whether due to fraud
or error.
Inherent Limitations in the Preparation of a Sustainability Statement
In reporting forward-looking information in accordance with ESRS, management of the Company is required to
prepare the forward-looking information on the basis of assumptions that have been disclosed in the sustainability
statement about events that may occur in the future and possible future actions by the Group. Actual outcomes
are likely to be different since anticipated events frequently do not occur as expected.
Responsibilities of the Authorised Group Sustainability Auditor
Our responsibility is to perform an assurance engagement to obtain limited assurance about whether the group
sustainability statement is free from material misstatement, whether due to fraud or error, and to issue a limited
assurance report that includes our opinion. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of users
taken on the basis of the group sustainability statement.
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Audited 216
Compliance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised) requires that we
exercise professional judgment and maintain professional skepticism throughout the engagement. We also:
• Identify and assess the risks of material misstatement of the group sustainability statement, whether due to
fraud or error, and obtain an understanding of internal control relevant to the engagement in order to design
assurance procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the parent company’s or the group’s internal control.
• Design and perform assurance procedures responsive to those risks to obtain evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Description of the Procedures That Have Been Performed
The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in
extent than for, a reasonable assurance engagement. The nature, timing and extent of assurance procedures
selected depend on professional judgment, including the assessment of risks of material misstatement, whether
due to fraud or error. Consequently, the level of assurance obtained in a limited assurance engagement is
substantially lower than the assurance that would have been obtained had a reasonable assurance engagement
been performed.
Our procedures included for example the following:
• We interviewed the company’s management and the individuals responsible for collecting and reporting the
information contained in the group sustainability statement at the group level and business areas of the
organization to gain an understanding of the sustainability reporting process and the related internal controls
and information systems.
• We familiarised ourselves with the background documentation and records prepared by the company where
applicable and assessed whether they support the information contained in the group sustainability statement.
• We assessed the company's double materiality assessment process in relation to the requirements of the ESRS
standards, as well as whether the information provided about the assessment process complies with the ESRS
standards.
• We assessed whether the sustainability information contained in the group sustainability statement complies
with the ESRS standards.
• Regarding the EU taxonomy information, we gained an understanding of the process by which the company has
identified the group's taxonomy-eligible and taxonomy-aligned economic activities, and we assessed the
compliance of the information provided with the regulations.
Helsinki 12 February 2025
PricewaterhouseCoopers Oy
Authorised Sustainability Auditors
Samuli Perälä
Authorised Sustainability Auditor
Our year 2024
This is Stora Enso
Our strategy
Our people
Governance
Shareholders
Report of the Board of Directors
Financial Statements
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Audited 217
Independent practitioner’s reasonable assurance report
on selected sustainability information (Translation of the Finnish original)
To the Management of Stora Enso Oyj
We have been engaged by the Management of Stora Enso Oyj (business identity code 1039050-8) (hereinafter also
the “Company” or “Parent company”) to perform a reasonable assurance engagement on selected sustainability
information for the reporting period 1.1.–31.12.2024, disclosed in sustainability statement that is referred to in Chapter
7 of the Accounting Act and that is included in the report of the Board of Directors 2024 (hereinafter the “selected
sustainability information”).
Selected sustainability information
The sustainability information subject to our reasonable assurance or the reporting period 1.1.–31.12.2024 covers:
Greenhouse Gas gross emissions for Scope 1 and Scope 2 (market-based), which are presented in group
sustainability statement in the table “Fossil CO2 equivalent”.
Our assurance engagement does not extend to selected sustainability information in respect in respect of earlier
reporting periods.
Management’s responsibility
The Management of Stora Enso Oyj is responsible for preparing the selected sustainability information in
accordance with the reporting criteria as set out in European Sustainability Reporting Standards (ESRS). The
Management of Stora Enso Oyj is also responsible for such internal control as the management determines is
necessary to enable the preparation of the selected sustainability information that is free from material
misstatement, whether due to fraud or error.
Greenhouse gas quantification is subject to inherent uncertainty because of incomplete scientific knowledge used
to determine emissions factors and the values needed to combine emissions of different gases.
Practitioner’s independence and quality management
We are independent of the parent company and of the group companies in accordance with the ethical
requirements that are applicable in Finland and are relevant to our engagement, and we have fulfilled our other
ethical responsibilities in accordance with these requirements.
PricewaterhouseCoopers Oy applies International Standard on Quality Management (ISQM) 1, which requires the
firm to design, implement and operate a system of quality management including policies or procedures
regarding compliance with ethical requirements, professional standards and applicable legal and regulatory
requirements.
Practitioner’s responsibility
Our responsibility is to express a reasonable assurance opinion on the selected sustainability information based on
the procedures we have performed and the evidence we have obtained. We conducted our reasonable assurance
engagement in accordance with International Standard on Assurance Engagements (ISAE) 3410 “Assurance
Engagements on Greenhouse Gas Statements”. This standard requires that we plan and perform the engagement
to obtain reasonable assurance about whether the selected sustainability information is free from material
misstatement.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Reasonable assurance opinion
In our opinion, Stora Enso Oyj’s selected sustainability information for the reporting period 1.1.–31.12.2024 is prepared,
in all material respects, in accordance with the reporting criteria.
Our assurance report has been prepared in accordance with the terms of our engagement. We do not accept, or
assume responsibility to anyone else, except to Stora Enso Oyj for our work, for this report, or for the opinion that we
have reached.
Helsinki 12 February 2025
PricewaterhouseCoopers Oy
Samuli Perälä
Authorised Auditor, KHT
Our year 2024
This is Stora Enso
Our strategy
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Report of the Board of Directors
Financial Statements
Appendices
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Audited 218
Sustainability data by production unit
Certificates
GHG emissions
Pollution
Water
Biodiversity
Waste
Number of
employees
a)
ISO 45001
ISO14001
Scope 1 and 2
CO2eq
emissions
Biogenic CO2
emissions
COD
Total
suspended
solids
AOX
Phosphorus
Nitrogen
SO2
b)
NOx as NO2
Total water
withdrawal
Process
water
discharges
Water stress
WRI Water
Aqueduct
c)
Biodiversity
significance
(IBAT)
d)
Total waste
to landfill
Hazardous
waste
e)
Production site
t
t
t
t
t
t
t
t
t
1,000 m
3
1,000 m
3
t
t
Austria
Bad St. Leonhard
236
x
x
983
0
11
11
Low
45
Brand
197
x
x
1,475
0
0
47
47
Low
Low
37
Ybbs
394
x
x
2,494
0
53
46
Low
103
Belgium
Langerbrugge
354
x
x
203,399
505,079
1,161
180
2
0
0
0
244
8,092
6,013
High
Low
39,290
Roeselare
12
54
Medium-High
China
Beihai
430
x
x
342,326
105,560
218
113
0
0
0
184
7,508
6,625
High
215
52
Dongguan
454
x
3,723
0
0
0
0
0
0
0
9
9
Medium-High
61
37
Qian´an
459
x
2,121
0
0
0
1
0
High
—
Wujin
434
x
x
8
0
0
32
32
High
97
Czechia
Planá
234
x
x
2,496
44,177
8
3
0
0
14
14
Low
320
206
Ždírec
438
x
x
4,221
125,729
0
0
0
0
80
5
Low-Medium
3,385
36
Estonia
Imavere
279
x
x
2,542
56,360
7
2
0
0
0
24
15
Low-Medium
108
Tallinn
28
x
x
70
1
Low-Medium
Finland
Anjala/Ingerois
495
x
x
31,769
159,665
92
0
0
0
186
23,424
7,174
Low
—
21,995
Enocell
267
x
x
38,861
1,280,367
10,011
178
66
0
0
0
780
66,591
22,006
Low
2,877
50
Heinola Fluting
221
x
x
85,536
222,146
773
122
0
0
335
245
10,934
1,528
Low
878
147
Honkalahti
133
x
x
1,741
35,554
0
0
238
231
Low
33
35
Imatra
1,079
x
x
142,149
2,030,068
14,746
2,438
50
14
183
0
1,561
85,636
53,687
Low
224
415
Kristiinankaupunki
57
x
x
33
1
1
Low-Medium
Low
3
Lahti
271
x
x
3,543
3
0
0
0
26
18
Low
356
Oulu
526
x
x
23,828
910,111
1,416
179
0
0
0
868
31,510
14,853
Low
Medium
148
118
Uimaharju
84
x
x
1,180
4
4
Low
45
17
Varkaus (sawmill)
150
x
x
2,676
9
1
0
0
164
148
Low
5
62
Varkaus
270
x
x
33,924
618,136
2,379
399
0
68
0
376
21,827
16,454
Low
2,006
18
Veitsiluoto
58
x
x
1,645
1
14
Germany
Augsburg
19
414
2
0
Low
Heidelberg
153
x
1,126
1
0
Low-Medium
Low
1
Sausenheim
186
x
3,353
8
3
Low
High
St. Ingbert
21
x
x
83
Low-Medium
Low
Latvia
Laukalne
190
x
x
3,856
39,873
0
0
0
0
0
0
37
37
Low-Medium
168
29
Riga
166
x
x
2,325
0
17
17
Medium-High
38
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Certificates
GHG emissions
Pollution
Water
Biodiversity
Waste
Number of
employees
a)
ISO 45001
ISO14001
Scope 1 and 2
CO2eq
emissions
Biogenic CO2
emissions
COD
Total
suspended
solids
AOX
Phosphorus
Nitrogen
SO2
b)
NOx as NO2
Total water
withdrawal
Process
water
discharges
Water stress
WRI Water
Aqueduct
c)
Biodiversity
significance
(IBAT)
d)
Total waste
to landfill
Hazardous
waste
e)
Production site
t
t
t
t
t
t
t
t
t
1,000 m
3
1,000 m
3
t
1
Lithuania
Alytus
247
x
x
1,357
27,084
10
0
0
24
8
Medium-High
57
Kaunas
46
x
x
82
1
1
Medium-High
Medium
1
Netherlands
Aalsmeer
50
125
Low
De Lier
446
18,338
85
66
Low
High
280
Dronten
53
207
Low
Low
Eerbeek Felco
38
158
3
1
Low
Medium
196
Eerbeek Rudico
37
72
Low
Medium
17
Roosendaal
58
274
Low
Venlo
f)
16
118
Low-Medium
Medium
Poland
Łódz
235
x
x
3,261
20
12
High
4
Mosina
79
x
x
229
1
1
Medium-High
Medium
64
Murow
285
x
x
1,949
28,215
0
0
9
8
Low-Medium
High
183
Ostrołęka Containerboard
g)
675
x
x
169,468
495,415
944
147
0
68
0
465
14,271
10,067
Medium-High
High
77
Ostrołęka Corrugated
g)
266
x
x
2,718
98
95
Medium-High
High
Tychy
169
x
x
2,537
16
10
Medium-High
4
Sweden
Ala
115
x
x
1,869
69,250
0
0
62
62
Low-Medium
Falu Rödfärg
h)
x
472
0
21
5
Low
13
3
Fors
472
x
x
1,086
212,826
1,458
92
0
0
0
0
0
5,905
4,579
Low
41
Gruvön
170
x
x
5,053
0
0
57
57
Low
11
Hylte Formed Fiber
47
1
2
107
45
Low
Jönköping
160
x
x
799
12
12
Medium
52
Skene
57
x
x
5
5
5
Low
166
Skoghall
626
x
x
60,190
953,614
9,195
815
16
9
81
0
469
42,880
30,117
Low
2,767
283
Skoghall (Forshaga)
103
x
x
886
8
6
Low
5
8
Skutskär
435
x
x
10,941
1,218,150
4,418
490
20
15
117
0
666
51,734
18,496
Low
11,962
3,637
Vikingstad
f)
42
x
x
742
14
14
Low-Medium
0
Total production units
i)
1,226,893
9,137,378
46,748
5,262
154
37
517
335
6,044
371,624
192,646
25,112
68,391
a) Yearly average as full-time equivalents.
b) Total sulphur is reported as sulphur dioxide (SO2) equivalent, but includes all sulphurous compounds.
c) Production site located in region with high baseline water stress according to the WRI Water Aqueduct Tool.
d) Biodiversity significance assessed via IBAT associated with each site indicating the total sum of significance score for Key Biodiversity Areas. Empty cell indicate no significance.
e) Reported on the basis of country-specific definitions applied in national regulations.
f) Venlo and Vikingstad production sites were closed during the reporting year.
g) Water discharges reported together from both Ostrołeka units.
h) Does not have its own personnel but hires personnel from Stora Enso AB.
i) Excluding joint operations.
See Sustainability Statement for accounting principles applied.
The divestment of Ellesmere Port was completed in October 2024. Therefore the unit is not presented in the ‘Sustainability data by unit’ table.
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Capacities by production site in 2025
Consumer board
Location
Grade
Division
Capacity 1,000 t
Beihai
CHN
LPB, CUK, FSB, FBB
575
Fors
SWE
FBB
455
Imatra
FIN
FSB, SBS, FBB, LPB
1,230
Ingerois
FIN
FBB
310
Oulu¹
FIN
FBB, CUK
—
Skoghall²
SWE
LPB, CUK
1,000
Total
Packaging Materials
3,570
1 The converted consumer board line at the Oulu mill expected to start up during H1/2025., the full capacity of 750,000 tonnes is estimated to be reached during 2027.
2 Includes the expected capacity increase for the BM8, ramp-up ongoing
Containerboard
Location
Grade
Division
Capacity 1,000 t
Heinola
FIN
SC fluting
300
Ostrołęka
POL
Testliner, PfR fluting, sack paper,
wrapping paper
660
Oulu
FIN
Kraftliner, white-top kraftliner
450
Varkaus
FIN
Kraftliner, white-top kraftliner
410
Total
Packaging Materials
1,820
Paper
Location
Grade
Division
Capacity 1,000 t
Anjalankoski
FIN
Book paper
185
Langerbrugge
BEL
SC, news
555
Total
Packaging Materials
740
Barrier coating
Location
Grade
Division
Capacity 1,000 t
Beihai
CHN
Barrier coating
80
Skoghall (Forshaga)
SWE
Barrier coating
120
Imatra
FIN
Barrier coating
455
Total
Packaging Materials
655
Corrugated packaging
Grade
Division
Capacity million m²
Baltic states (Riga)
Corrugated packaging
120
Finland (Lahti)
Corrugated packaging
140
Poland (Łódz, Mosina, Ostrołeka, Tychy)
Corrugated packaging
390
Sweden (Jönköping, Skene)
Corrugated packaging
120
Western Europe (De Lier, Heidelberg, Augsburg, Sausenheim) Corrugated packaging
860
Total
Packaging Solutions
1,630
Additionally, conversion capacity available at the following sites: Tallinn and Kaunas (EST), and Kristiinankaupunki (FIN)
China Packaging
Location
Grade
Division
Capacity million pcs
Capacity million m²
Gaobu, Dongguan
CHN
Consumer packaging
390
30
Qian’an, Hebei
CHN
Consumer packaging
100
10
Wu Jin, Jiangshu
CHN
Consumer packaging
300
35
Total
Packaging Solutions
790
75
Chemical pulp
Location
Grade
Division
Capacity 1,000 t
Enocell
FIN
Long-fiber
630
Skutskär
SWE
Long-fiber, fluff
545
Montes del Plata (50% share) URU
Short-fiber
750
Veracel (50% share)
BRA
Short-fiber
575
Total
Biomaterials
2,500
Chemical pulp
Location
Grade
Division
Capacity 1,000 t
Heinola
FIN
NSSC
285
Kaukopää, Imatra
FIN
Short and long-fiber
825
Ostrołęka
POL
Long-fiber
130
Oulu
FIN
Long-fiber
550
Skoghall
SWE
Long-fiber
390
Tainionkoski, Imatra
FIN
Long-fiber
195
Varkaus
FIN
Long-fiber
335
Total
Packaging Materials
2,710
Chemical pulp total (Packaging Materials and Biomaterials)
5,210
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Deinked pulp (DIP)
Location
Grade
Division
Capacity 1,000 t
Langerbrugge
BEL
DIP
Packaging Materials
680
Ostrołęka
POL
Recycled fiber-based pulp
Packaging Materials
700
Varkaus
FIN
Recycled fiber-based pulp
Packaging Materials
150
Total
1,530
CTMP
Location
Grade
Division
Capacity 1,000 t
Beihai
CHN
BCTMP
210
Fors
SWE
CTMP
220
Kaukopää
FIN
CTMP
220
Oulu
1
FIN
BCTMP
—
Skoghall
SWE
CTMP
310
Total
Packaging Materials
960
1 Start-up during H1/2025
Formed fiber
Location
Product
Division
Capacity million pcs
Hylte
SWE
Formed Fiber
90
Skene
SWE
Formed Fiber
17
Total Formed Fiber
Segment Other
107
Wood Products
Location
Sawing Capacity
1,000 m³
Further Processing
Capacity 1,000 m³
Pellet capacity
1,000 t
CLT
capacity 1,000 m³
LVL capacity
1,000 m³
Ala
SWE
400
50
100
—
—
Alytus
LIT
240
115
—
—
—
Bad St. Leonhard
AUT
360
105
—
80
—
Brand
AUT
440
295
—
—
—
Gruvön
SWE
370
150
100
80
—
Honkalahti
FIN
340
70
—
—
—
Imavere
EST
350
160
100
—
—
Launkalne
LAT
270
70
50
—
—
Murow
POL
300
210
—
—
—
Planá
CZE
390
220
—
—
—
Uimaharju¹
FIN
240
—
—
—
—
Varkaus
FIN
260
120
30
—
85
Veitsiluoto
FIN
200
—
—
—
—
Ybbs
AUT
700
450
—
110
—
Zdírec²
CZE
580
220
80
70
—
Total
5,440
2,235
460
340
85
1 Uimaharju sawmill belongs to the Biomaterials division.
2 Theoretical CLT capacity 120,000 m³, limited capacity due to ramp-up.
Abbreviations used in the tables:
BCTMP
bleached chemi-thermomechanical pulp
CKB
coated kraft back board
CLT
cross-laminated timber
CTMP
chemi-thermomechanical pulp
CUK
coated unbleached kraftboard
DIP
deinked pulp
FBB
folding boxboard
FSB
food service board
LPB
liquid packaging board
LVL
laminated veneer lumber
LWC
light-weight coated paper
NSSC
neutral sulphite semi-chemical pulp
PfR
paper for recycling
SBS
solid bleached sulphate board
SC
supercalendered paper
SC fluting semi-chemical fluting
The formula: (Sum of net saleable production of two best consecutive months / Available time of these two consecutive
months) × Available time of the year
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Appendices ≡
222
Stora Enso Oyj
P.O. Box 309
FI-00101 Helsinki, Finland
Visiting address: Katajanokanlaituri 4
Tel: +358 2046 131
Stora Enso AB
P.O. Box 70395
SE-107 24 Stockholm, Sweden
Visiting address: World Trade Center
Klarabergsviadukten 70, C4
Tel. +46 1046 46 000
storaenso.com
Concept and design: Miltton Oy
Photography: Riku Aronen, Lasse Arvidson, Daniel Dahlgren, Magnus Glans, Krisse Hemminki, Gabriel Huber, Kalle Kouhia,
Petteri Löppönen, Mikko Nikkinen, Mikko Ryhänen, Pasi Salminen, Jarmo Suorsa, Linda Svarfvar, Tuomas Uusheimo, Chen Xiaozhao,
and Stora Enso’s archive.
It should be noted that Stora Enso and its business are exposed to various risks and uncertainties and certain statements
herein which are not historical facts, including, without limitation those regarding expectations for market growth and
developments; expectations for growth and profitability; and statements preceded by “believes”, “expects”, “anticipates”,
“foresees”, or similar expressions, are forward-looking statements. Since these statements are based on current plans, estimates
and projections, they involve risks and uncertainties, which may cause actual results to materially differ from those expressed in
such forward-looking statements. Such factors include, but are not limited to: (1) operating factors such as continued success of
manufacturing activities and the achievement of efficiencies therein, continued success of product development, acceptance
of new products or services by the Group’s targeted customers, success of the existing and future collaboration arrangements,
changes in business strategy or development plans or targets, changes in the degree of protection created by the Group’s
patents and other intellectual property rights, the availability of capital on acceptable terms; (2) industry conditions, such as
strength of product demand, intensity of competition, prevailing and 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. All statements are based on management’s best assumptions and beliefs in light of the information currently
available to it and Stora Enso assumes no obligation to publicly update or revise any forward-looking statement except to
the extent legally required.