FULLTEXT DEL 4 AV 6
Årsredovisning 2024
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.
P r o c e s s e s f o r e n g a g i n g w i t h o w n w o r k f o r c e a n d
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.
P r o c e s s e s t o r e m e d i a t e n e g a t i v e i m p a c t s a n d c h a n n e l s
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.
T a k i n g a c t i o n o n m a t e r i a l 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.
T a r g e t s r e l a t e d t o m a n a g i n g m a t e r i a l n e g a t i v e
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
M a t e r i a l i m p a c t s , r i s k s a n d o p p o r t u n i t i e s ( S B M - 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.
P r o c e s s e s f o r e n g a g i n g w i t h v a l u e c h a i n w o r k e r s
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
===== SIDA 120 =====
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.
P r o c e s s e s t o r e m e d i a t e 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
M a t e r i a l i m p a c t s , r i s k s a n d o p p o r t u n i t i e s ( E S R S 2 S B M - 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
===== SIDA 122 =====
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.
P r o c e s s e s f o r e n g a g i n g w i t h a f f e c t e d c o m m u n i t i e s
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.
T a k i n g a c t i o n o n m a t e r i a l i m p a c t s o n a f f e c t e d
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.
T a r g e t s r e l a t e d t o m a n a g i n g m a t e r i a l n e g a t i v e
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)
B u s i n e s s c o n d u c t p o l i c i e s a n d c o r p o r a t e c u l t u r e ( G 1 - 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
===== SIDA 125 =====
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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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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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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Financial
Statements
===== SIDA 135 =====
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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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.
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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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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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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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