Stora Enso Oyj

Lobbying Governance

AI Extracted Evidence Snippet Source

The bonds described in this report are issued under two frameworks: Green Bond Framework 2018 and Green Financing Framework 2023. The governance model for the project evaluation and selection has been updated for the framework published in 2023 with a dedicated Green Finance Council as approval body. According to the 2018 framework, approvals for use of proceeds for investment was approved by the Sustainability Council, whereas in the 2023 framework the individual financing projects are approved by the Green Finance Council. [...] Strategic investment projects are approved on group-level following the mandate by the CEO and Board of Directors. Each division is also granted an annual allocation intended for smaller annual replacement and development needs in relation to investments. All large projects are reviewed by the Investment Working Group comprising Group and division representatives and headed by the CFO. Risks are mitigated through detailed pre-feasibility and feasibility studies which are prepared for each large investment. Group investment guidelines stipulate the process, governance, risk management, and monitoring procedures for strategic projects. Post-completion audits are carried out for all significant investments. Stora Enso has defined a set of Green Finance specific steps, including, but not limited to, an assessment and compliance of Eligible Projects and Assets with the eligibility criteria outlined in the Green Financing Framework 2023, applicable laws and regulations, as well as the Group's sustainability agenda and policies. These steps have been integrated into the existing governance model. The overall governance model for Stora Enso's Green Financing Framework, including the definition of Eligible Projects and Assets, has been further developed by a dedicated Green Finance Council consisting of Executive Vice President, Strategy and Sustainability, who holds a veto in the decision making, as well as the CFO and members from the Sustainability and Treasury teams.

https://www.storaenso.com/-/media/documents/download-center/documents/investor-relations/2023/se_green_bond_report_2023.pdf

We continuously monitor, evaluate, and anticipate political decisions, public policy direction, and amended regulations in the areas that are of particular importance to our business and operations. [...] Stora Enso's public affairs team also works more directly with stakeholders to craft regulatory and public policy that drives this transition through innovation and economic growth. [...] Stora Enso is part of the European Union's Transparency Register (Register ID: 269853831446-79), which is available to the public. Our position papers and responses are uploaded and available by searching for Stora Enso Oyj or through this link: Transparency Register (europa.eu). We also regularly update the financial disclosure for Group Public Affairs, which includes our global, national and EU related costs. Information in regard to main trade association memberships, as well as some basic material on interest, which main EU legislative proposals or policies are targeted by us, as well as communication activities related to the EU policies can also be found in this register.

https://www.storaenso.com/en/about-stora-enso/publicpolicy

Stora Enso's Corporate Affairs team also engages more directly with stakeholders to feed into regulatory and public policy that drives the green transition through innovation and economic growth. A regulatory framework that contributes to sustainable solutions is key to our business, and environmental issues are high on our agenda. The key areas we engage on are climate change, biodiversity, and circularity. [...] Stora Enso is part of the European Union's Transparency Register (Register ID: 269853831446-79), which is available to the public. Our position papers and responses to consultations and roadmaps are uploaded and available by searching for Stora Enso Oyj or through this link. We also regularly update the financial disclosure for Group Corporate Affairs, which includes our global, national and EU related costs. Information regarding main trade association memberships, as well as some basic material on interests, which main EU legislative proposals or policies we focus on, as well as communication activities related to these EU policies can also be found in this register.

https://www.storaenso.com/en/sustainability/engagement-and-collaboration

Attach commitment or position statement(s)[…]See below for our overall commitment and statement copied from our website: https://www.storaenso.com/en/about-stora-enso/publicpolicy
Our positions are also available in many of our consultation responses to the EU and national EU member states as well as in letters we have co-signed for, for example, the Corporate Leadership Group, available in respective public domains.
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Stora Enso engages and collaborates with governments, regulators, legislators, businesses, and industry associations to achieve a stable policy environment that helps secure a more sustainable future.

With a presence in more than 50 countries, we aim to be a constructive partner to policy makers globally, in the EU, and in national governments to promote the much-needed green transition.
We work through relevant national, regional, and international trade associations and membership organisations. We continuously monitor, evaluate, and anticipate political decisions, public policy direction, and amended regulations in the areas that are of particular importance to our business and operations.

Stora Enso's public affairs team also works more directly with stakeholders to craft regulatory and public policy that drives this transition through innovation and economic growth. A regulatory framework that contributes to sustainable solutions is key to our business, and environmental issues are high on our agenda. The key areas we engage on are climate change, biodiversity, and circularity.

Climate change
The climate cannot wait. As a significant forest owner and wood purchaser, combatting climate change is at the core of Stora Enso's renewable business: growing trees absorb CO2 from the atmosphere and their fibers store carbon in wood-based products. These products substitute for fossil-based alternatives, such as plastic. This is called the substitution effect which refers to emissions that can be avoided because a renewable material originating from a sustainably managed source was chosen instead of a fossil-based one. That is, when Stora Enso's renewable products are chosen to replace fossil-based or other non-renewable alternatives, CO2 from fossil sources is prevented from entering the atmosphere annually.

Stora Enso fully supports the Paris agreement and limiting global warming to 1.5 degrees Celsius. We also welcome and support the EU's ambition to reduce EU emissions by at least 55% by 2030. Related policy should acknowledge the role of the substitution effect in combatting climate change.

Forests & biodiversity
Through active and sustainable forest management we always grow more than we harvest. We need healthy forests to ensure that our renewable raw material grows back and that they remain resilient to negative impacts, such as those of climate change. Climate change is a threat to, for example, biodiversity, which is vital for the humankind: it is the variety of life in genes, species, and in entire ecosystems. By tackling climate change, we can protect biodiversity. It is crucial to acknowledge that wood-based products are part of the solution to climate change through the substitution effect, carbon storage, and renewability.

We actively promote sustainable use of forests. We support the EU's ambition to protect at least 30% of EU land and sea area by 2030. We agree that efforts should be taken to restore degraded, damaged, or destroyed ecosystems. At the same time, it is crucial to acknowledge that forest protection, wood production, and other ecosystem services are not in contradiction. We believe our experience in sustainable forestry – where biodiversity concerns are high on the agenda – can be an inspiration both within industry and in policymaking. But we are not claiming that we have all answers already today. We fund and support research in this area, so we and the industry at large can ensure that forest practices are scientifically proven to promote biodiversity – and are not just based on beliefs and tradition.

Circularity
We believe that a circular economy is only truly possible when raw materials are also circular – materials that are renewable and grow back, such as wood. Wood grows back in sustainably managed forests that are duly regenerated after harvesting, and where forest health, biodiversity, and productivity are safeguarded.

We welcome and support the world's ambition to transition to a circular economy, including minimizing waste and ensuring circular design. In particular for our packaging divisions, two themes are critical in the push for packaging progress: recyclability and renewability. In order to make packaging more circular, recyclability must be advanced, while the renewability of raw materials leads to carbon neutrality. But it is also important to acknowledge that prioritising reuse is not necessarily always the most sustainable choice. For example, there is evidence that single-use paper-based packaging in fast food restaurants is better for the environment than reusable tableware. In addition, circular economy policies should acknowledge the benefits of renewable materials compared to fossil-based and other non-renewable alternatives.

Public disclosure and transparency
Stora Enso is part of the European Union's Transparency Register (Register ID: 269853831446-79), which is available to the public. Our position papers and responses are uploaded and available by searching for Stora Enso Oyj or through this link: Transparency Register (europa.eu). We also regularly update the financial disclosure for Group Public Affairs, which includes our global, national and EU related costs. Information in regard to main trade association memberships, as well as some basic material on interest, which main EU legislative proposals or policies are targeted by us, as well as communication activities related to the EU policies can also be found in this register.

CDP Questionnaire Response 2022

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]Stora Enso has set up a system and process where all consultation responses, position papers, and issues where we engage are coordinated in the Public Affairs Forum. All Heads of Sustainability from Stora Enso's business divisions are part of this Forum in addition to the Group Sustainability and Group Strategy functions. Issues of strategic importance, or where there may be differing positions among divisions, are elevated and brought to the Steering Group for decision. The Steering Group sets the priorities for Public Affairs and is the ultimate decision-making body. The steering group consists of the President and CEO; Country manager for Sweden and Executive Vice President for Legal; Deputy CEO, Country manager for Finland and CFO; Executive Vice President for Sustainability; and Executive Vice President for Brand and Communications. Stora Enso has set up a robust structure and organisation, with a public affairs presence in headquarter locations Helsinki and Stockholm, in addition to Brussels. The function also handles our engagements with officials and politicians. Group Public Affairs leads and coordinates the engagement with policy makers, and thus ensures that all engagement activities are consistent with our overall climate change strategy.

CDP Questionnaire Response 2022

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes

CDP Questionnaire Response 2023