Stora Enso Oyj Class A · OMXHEX:STEAV
Stora Enso Oyj Class A — ESG Presentation (January 2020)
34 slides from Stora Enso Oyj Class A's sustainability presentation, Jan 30, 2020
Slide 1: Stora Enso ESG Investor Presentation
Stora Enso ESG Investor Presentation
Slide 2: Disclaimer
Disclaimer It should be noted that certain statements herein which are not historical facts, including, without limitation those regarding expectations for market growth and developments; expectations for growth and profitability; and statements preceded by “believes”, “expects”, “anticipates”, “for
Slide 3: We are perfectly positioned to benefit from the megatrends
We are perfectly positioned to benefit from the megatrends… Global warming Growing middle class Increasing demand Eco awareness for raw material that is renewable, Changing lifestyles reusable and fossil free Urbanisation Growing population Digitalisation 3 30 January 2020
Slide 4: The renewable materials company
…as The renewable materials company Everything that’s made with fossil- based materials today can be made from a tree tomorrow 4 30 January 2020
Slide 5: Our renewable products…
Our renewable products… 5 30 January 2020
Slide 6: …contribute to a greener planet
…contribute to a greener planet Renewable Recyclable Store carbon Bio- Produced degradable sustainably Material is Every tree used is traced efficiently 6 30 January 2020
Slide 7: Our products have a lower carbon footprint
Our products have a lower carbon footprint Carbon footprint CO2 emissions EcoFishBox Fibre-based of lignin is of a CLT-frame by Stora Enso beverage carton around 80% building are 75% has 30% lower has 45% lower ” lower than the lower compared CO2 emissions CO2 emissions carbon footprint to a concret
Slide 8: 1% shift of fossil-based and other materials
1% shift of fossil- 20 BEUR based and other = renewable business materials 8 30 January 2020
Slide 9: Substituting materials from finite resources is our key competitive advantage
Substituting materials from finite resources is our key competitive advantage Our total climate benefit: Our products substitute 12 fossil-based products, saving Mt CO2 20 Mt CO2 Resource efficient value chain, Our forests are carbon emissions: neutral and absorb 11 Mt CO2 3 Mt CO2
Slide 10: Triple Bottom Line
Triple Bottom Line Social Sustainability Environmental Economic 10 30 January 2020
Slide 11: Our Sustainability Agenda
Our Sustainability Agenda Stakeholder input Materiality 1. 2. 3. 1. We care about all our people Social agenda 2. We help communities be resilient Triple Bottom Line (TBL) Employees and wider workforce Community Business ethics 3. We play fair Human rights 4. 5. 6. 4. We use natural resources with c
Slide 12: Sustainability performance 2019
Sustainability performance 2019 12 30 January 2020
Slide 13: Sustainable business = profitable business… UN SDGs
Sustainable business = profitable business… The UN’s Sustainable Development Goals (SDGs) Stora Enso supports all 17 SDGs. We have identified three strategic goals that our business has the most impact on. 13 30 January 2020
Slide 14: … and we have ambitious reduction targets for CO2…
… and we have ambitious reduction targets for CO2… • First forest products company to set externally approved science-based targets • Targets for our operations − Reduce greenhouse gas emissions by 31% per tonne by 2030 vs 2010 • Engagement targets for our suppliers • Engagement targets for our cust
Slide 15: … well below 2 degree scenario
… well below 2 degree scenario 15 30 January 2020
Slide 16: Stora Enso's carbon footprint
Stora Enso’s carbon footprint • Our target is to reduce fossil CO2 emissions by 31%* by 2030 − In Q4 2019 we reached a 22% reduction • We report on our emissions transparently − Stora Enso is included on CDP Climate A- List * Science-based target (SBT) performance compared to baseline year 2010. Cov
Slide 17: Forests, plantations & land use
Forests, plantations & land use We respect the local environment 100% 87% of our wood comes from comes from sustainable managed semi- sources. natural forests. 75% 98% of lands owned and managed by of our wood us are covered is certified. by certification. 17 30 January 2020
Slide 18: Controlling ~30% of wood supply and a #1 Nordic position
Controlling ~30% of wood supply and a #1 Nordic position are competitive advantages #1 Nordic position We control ~30% of our wood raw material Wood procurement by region consumption (million m3 sub) (million m3 sub) Uruguay China 2.3 0.4 Central Mm3 sub Mm3 sub Mm3 sub Brazil Europe 1.9 5.6 18 2.5
Slide 19: We are one of the biggest private forest owners in the world
We are one of the biggest private forest owners in the world Total forest assets value in balance sheet ~ 4.9 BEUR Swedish forests Tornator 1 408 000 ha of forest land Stora Enso’s share 255 000 ha in Finland, 27 000 Fair value: 3.1 BEUR (31 Dec 2019) ha in Estonia and 5 000 ha in Romania Fair value
Slide 20: Veracel – good progress with the Landless movements
Veracel – good progress with the Landless movements • At the end of 2019, 469 hectares owned by Veracel were occupied by social landless movements − Veracel continues recovery through legal processes − Previously Veracel has voluntarily reserved 20 000 ha to support the Sustainable Settlement Initia
Slide 21: Water
Water We use natural resources with care • Water availability is a global challenge and plays a central role in our production − We constantly strive to reduce its use • 96% of the water we withdraw from nature is released back to the environment − We ensure the water is purified and safe − Water is
Slide 22: Community investment
Community investment We help communities to be resilient • Our operations are often in rural communities that form an important stakeholder group • We strive to maximise our positive contribution through investments in − Capacity building, local sourcing, nature conservation, agroforestry • We manag
Slide 23: Responsible Sourcing
Responsible Sourcing We choose like-minded partners • We ensure that our suppliers are committed to high sustainability standards • Stora Enso has a rigorous supplier approval process − 96% of our supplier spend is covered by signed Supplier code of conduct, SCoC (Q4 2019) − We conduct risk assessme
Slide 24: Total Contribution to Society (TCS)
Total Contribution to Society (TCS) 24 30 January 2020
Slide 25: Stora Enso as tax payer
Stora Enso as tax payer • Stora Enso’s operations generate value through taxes for governments around the world • In 2019, Stora Enso paid again more than EUR 1 billion into public sectors, including EUR 767 million in collected taxes • Stora Enso aims to be transparent with respect to economic valu
Slide 26: Sustainability in our funding and reporting
Sustainability in our funding and reporting Revolving Credit Facility Green Bond Framework Green Bonds with a green aspect Pricing incudes sustainability A loan-format to support First green bonds issued in component based on ability sustainability-focused fixed February in 2019 to finance to reduce
Slide 27: Dividend proposal unchanged at 0.50 EUR per share
Dividend proposal unchanged at 0.50 EUR per share • Dividend proposal of 0.50 EUR per share for 2019 totalling 394 MEUR, unchanged from 2018 • Dividend policy: − Strive to pay stable dividends linked to the long-term performance − 50% of EPS over the cycle *Dividend proposal 27 30 January 2020 Stora
Slide 28: Ownership Distribution
Ownership Distribution as of 31 December 2019 % of % of shares votes % of shares held Solidium Oy* 10.7% 27.3% FAM AB 10.2% 27.3% Social Insurance Institution of Finland (KELA) 3.1% 10.1% Finnish institutions (excl. Solidium and KELA) 12.5% 8.8% Swedish institutions (excl. FAM) 9.3% 6.1% Finnish pri
Slide 29: Major Shareholders
Major Shareholders as of 31 December 2019 By voting power A shares R shares % of shares % of votes 1 Solidium Oyj* 62 655 036 21 792 540 11 27.3 2 FAM AB** 63 123 386 17 000 000 10 27.3 3 Social Insurance Institution of Finland (KELA) 23 825 086 973 982 3 10.1 4 Varma Mutual Pension Insurance Compan
Slide 30: Group Leadership Team
Group Leadership Team President CFO HR Packaging and CEO Seppo Parvi Malin Bendz Solutions Annica Bresky David Ekberg (acting) Sourcing & Paper Packaging Communication Legal Logistics Kati ter Horst Materials Ulrika Lilja Per Lyrvall Johanna Hannu Kasurinen Hagelberg Biomaterials Sustainability Fore
Slide 31: Board of Directors
Board of Directors Jorma Eloranta Hans Stråberg Elisabet Fleuriot since April 2016 since April 2009 since April 2013 Chair Vice Chair Hock Goh Mikko Helander Christiane Kuehne since April 2012 since March 2019 since April 2017 Antti Mäkinen Richard Nilsson Göran Sandberg since March 2018 since April
Slide 32: External recognition in 2019
External recognition in 2019 Euronext Vigeo Transition Pathway Initiative (TPI) WBCSD Stora Enso is listed in the Euronext Vigeo Stora Enso is top-ranked in greenhouse Stora Enso’s Sustainability Report 2018 was Europe, and Eurozone 120 indices as one gas management and performance included in the t
Slide 33: The Renewable Materials Company
THE RENEWABLE MATERIALS COMPANY
Slide 34: More information in Stora Enso's Investor kit
More information in Stora Enso’s Investor kit storaenso.com → download centre • Strategy • Businesses • Capacities • Markets • Financial performance • Cost structure • Capex • Dividend policy • Ownership structure • Management • Most recent quarterly results 34 30 January 2020