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Climate actions

​Stora Enso is constantly working to reduce carbon dioxide (CO2) emissions along the company's value chain.

Climate actions

​​Stora Enso is constantly working to reduce carbon dioxide (CO2) emissions along the company's value chain. This involves promoting sustainable forestry, creating innovative products based on renewable raw materials, and developing cleaner and more efficient processes and operations.​ 

Stora Enso also actively participates in global discussions related to climate change. In 2013 we were a sponsor at the World Climate Summit 2013 held in Warsaw, Poland. This summit brought together business representatives, global institutions and government leaders to discuss solutions, actions and policies to mitigate and adapt to climate change.​

 

 

Targeting a 35% reduction in CO2 intensity

Most of the greenhouse gas emissions generated by our operations come from the energy we purchase and produce at our mills. The most effective way for us to reduce our fossil CO2 emissions is to further improve our energy efficiency and to increase the share of bioenergy in our total energy use.

 

In 2011 we updated our previous target for reducing our fossil CO2 emissions, and we now aim to reduce emissions per saleable tonne of pulp, paper, and board by 35% from 2006 levels by the end of 2025. This CO2 intensity target covers both emissions generated directly by our own facilities (Scope 1), and indirect emissions produced during the generation of the electricity and heat we purchase (Scope 2).

 

In 2013 our CO2 emissions per saleable tonne of pulp, paper, and board were 28% lower than the 2006 benchmark level, so we are on our way towards reaching our target.

 

Reductions in our CO2 intensity in previous years have been achieved through investments in biomass boilers that have reduced our use of fossil fuels, and through increases in our

internal production of power and heat. Other contributing factors have included improved productivity, the use of more efficient equipment, and streamlined processes. This declining trend was

disrupted in 2013, mainly due to the increased use of fossil fuels at our Ostrołęka Mill in Poland and Maxau Mill in Germany.

 

We were not able to continue to reduce our direct fossil CO2 emissions during 2013, either in absolute terms or per unit of sales production. Since 2006 we have reduced our direct CO2

emissions from stationary combustion sources at our pulp, paper and board mills by 14% per unit of sales production.

 

Our indirect CO2 emissions are significantly influenced by the energy mixes used in the national grids of the countries where we operate. The fossil CO2 emissions resulting from the generation of the energy we purchased for electricity and heat during 2013 were 43% lower per unit of sales production than in 2006.

Forests and the climate

Wood is our most important raw material, and the benefits of using forest biomass are manifold. Sustainable forest and plantation management plays a vital role in mitigating global warming. Trees absorb carbon dioxide from the atmosphere and store the carbon it contains. Carbon is also stored in harvested wood products. As long as forests and plantations are managed sustainably, new generations of trees will grow back after mature trees are logged, absorbing more CO2 from the atmosphere. Wood can also be used as a substitute for carbon-intensive and non-renewable raw materials. Sustainable forest management also helps to maintain other valuable features of forests, such as biodiversity.

 

We promote forest certification and chain-of-custody certification schemes to guarantee that all our wood originates from sustainably managed forests and tree plantations. We also actively combat illegal logging, which is one of the causes of forest loss and degradation, threats to biodiversity and distorted markets for wood. Our tree plantations sequester more carbon than the previous land uses, especially in Latin America, where our plantations have almost entirely been planted on modified grasslands and degraded pasturelands. We actively restore and conserve areas of Atlantic rainforest in and around tree plantations we own through our joint venture Veracel in Brazil.

Risks and opportunities

We recognise a strategic opportunity in the fact that all Stora Enso's products are based on renewable materials with a comparatively low carbon footprint. Examples include our renewable

packaging and wood-based construction solutions. In many cases these products can be used as substitutes for fossil fuelbased materials. We believe that the market for these products will continue to grow.

 

EU climate and energy policies, such as the Renewable Energy Directive, emphasise the potential for biomass-based energy production in many sectors of society including industry, transport and housing. Stora Enso works widely with forest biomass, and we can be an important contributor in the context of enabling new forms of biomass-based energy production.

 

Due to the energy-intensive nature of our operations, we are subject to risks related to climate change and costs related to energy and climate regulations. Climate change is expected to increase the frequency of extreme weather events such as storms, flooding and droughts in many regions. Storms can result in serious wind damage to forests, often leading to the short-term oversupply of timber, but reduced supply in the medium term.

 

For a full description of Stora Enso's most material risks and opportunities related to climate change see www.storaenso.com/climate.

 

 

Managing risks related to climate change

Stora Enso evaluates risks and opportunities related to climate change according to the enterprise risk management process as part of our Group-wide risk and opportunity assessment work. This process forms an integral part of our management approach.

 

Stora Enso's business units also follow regulatory requirements regarding environmental risk assessment. Through thirdparty-certified systems like ISO 14001 each mill has implemented procedures for the systematic identification of emergency situations and environmental risks, and for dealing with related effects.

 

 

The EU emission trading system

The European Union's emission trading system (ETS) is a cornerstone of the EU's efforts to combat climate change, and a key tool for the cost-effective reduction of industrial greenhouse gas emissions. The ETS in effect imposes a cost on all CO2 emissions.

 

The ETS affects Stora Enso in two main ways. Firstly, it can be expected to further intensify the competition for biomass, which may lead to higher wood prices. Secondly, the ETS will also indirectly increase energy generation costs for our electricity suppliers when emission allowances have been completely purchased from 2013 onwards.

 

During the second commitment period of 2008–2012 the EU ETS impacted Stora Enso indirectly through European energy prices. At the same time we were able to profit by selling emission allowances allocated to us due to the forest industry's carbon leakage status. Carbon leakage status has been granted for industries where it is expected that costs related to climate policies would cause businesses to transfer production to countries with laxer constraints on greenhouse gas emissions.

Carbon leakage status has also been granted to the forest industry for the period 2013–2014, but if this status changed for  the period 2015–2019, Stora Enso would have to start purchasing

allowances leading to additional costs estimated at EUR 42 million if the system's prices are at EUR 5 per tonne of CO2 emissions.

 

We consistently calculate the financial impacts of potential price increases on emission allowances, including the financial impacts on our business in case of energy price increases. For more information on the financial impacts of emission allowances and on risks related to raw material and energy prices see note 5 and note 25 in our Financial Report: www.storaenso.com/annualreports.

Calculating our carbon footprint

Since 2007 we have estimated our Group-wide carbon footprint on an annual basis, with the aim of identifying the main sources of fossil CO2 emissions across our operations.

 

We base our carbon footprint accounting on guidelines provided by the Greenhouse Gas Protocol of the World Resource Institute (WRI) and the World Business Council for Sustainable Development

(WBCSD). Our accounting concentrates on fossil CO2, which is the dominant greenhouse gas in our carbon footprint, but emissions of other greenhouse gases are also included where data is available.

 

We report on our greenhouse gases in three areas:

• Scope 1: Emissions from sources we directly own or control, including on-site energy generation and processes, power boilers, lime kilns, paper-drying processes, vehicles, engines and harvesting equipment.

• Scope 2: Emissions related to the purchased electricity and heat consumed in our operations.

• Scope 3: Emissions from other indirect sources along our value chain as CO2 equivalent estimates. The main sources of our Scope 3 emissions are:

–– the transportation and harvesting of wood by our contractors

–– the manufacturing and transportation of other raw materials we use

–– the transportation of our products to customers

–– the further processing of our products by customers

 

For the fourth consecutive year Stora Enso achieved a high rating in the Carbon Disclosure Project's Nordic 260 Climate Disclosure Leadership Index (CDLI) in 2013. This annual index highlights those companies listed on the Nordic stock exchanges that have displayed a strong approach to the disclosure of information regarding climate change.

 

carbon footprint 2009-2013.JPG