Slide 1: Stora Enso ESG investor presentation Q3 2023
Stora Enso ESG investor presentation Q3 2023
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: Our purpose
Our purpose Do good for Replace non- people and the renewable materials planet with renewable products 3 Stora Enso ESG presentation Q3 2023
Slide 4: Our sustainability performance
Our sustainability performance Net positive -50% impact on biodiversity 100% Targets reduction in absolute by 2050 recyclable products emissions by 2030 (Scope 1, 2, 3) Target to reach by 2030 100% compliance by indicator Scope 1+2 -41% High stumps (Q3 2023 compared Ground deadwood Status to 2019 ba
Slide 5: Advancing our sustainability agenda: key initiatives during Q3/2023
Advancing our sustainability agenda: key initiatives during Q3/2023 Climate Our new mixed-use building concept enables to transform the original building design for new purposes. By upcycling the building structure multiple times, emissions and waste are reduced at different stages of the lifecycle.
Slide 6: Climate
Climate THE RENEWABLE MATERIALS COMPANY ; ~
Slide 7: We make a positive climate impact
We make a positive climate impact Our products Our value Our forests Our products substitute chain emissions remove carbon store carbon fossil-based products 8.0 −1.5 −2.5 −16.2 million tonnes of CO2 million tonnes of CO2 million tonnes of CO2 million tonnes of CO2 Calculated by the Swedish Universi
Slide 8: Mitigating climate change with wood construction
Mitigating climate change with wood construction CO2 savings for every m³ built with wood -1 tonne CO2 -2.5 tonnes CO2 vs. concrete vs. steel We can significantly cut emissions in the construction sector by using renewable materials that store carbon during their entire lifetime 8 Stora Enso ESG pre
Slide 9: Science-based target to reduce CO2 emissions by 50%
Science-based target to reduce CO2 emissions by 50% • We have set a science-based target (SBT), in line with the 1.5-degree scenario, to reduce our greenhouse gas (CO2e) emissions • Target is to reduce absolute scope 1 & 2 CO2e emissions with 50% by 2030 from the 2019 baseline • We are also committe
Slide 10: Roadmap for reaching the 2030 target for scope 1 & 2
Roadmap for reaching the 2030 target for scope 1 & 2 Roadmap for reaching the 2030 target for scope 1 & 2 • During 2023–2025, we will continue to invest in 3.0 projects which, in addition to business targets, aim at reaching the CO2e targets 2.5 Actions planned 2023-2025 Million tonnes 50% 2.0 • Exa
Slide 11: On track to reach the target for scope 1 & 2 emissions
On track to reach the target for scope 1 & 2 emissions Direct and indirect CO2e emissions • Scope 1 & 2 emissions amounted to 1.52 million (scope 1 & 2, rolling four quarters) tonnes at the end of Q3 2023 0% – Emissions decreased mainly due to lower 2.8 -11% -12% -26% production volumes 2.4 -37% -41
Slide 12: Collaborating with our value chain to reduce scope 3 emissions
Collaborating with our value chain to reduce scope 3 emissions CO2e emissions along the value chain (scope 3) • In 2022, the estimated scope 3 emissions were 6.0 million tonnes 0% -10% -4% – 27% less than in the 2019 base year 8 -27% – The emissions decreased mainly due to mill 7 closures and discon
Slide 13: Biodiversity
THE RENEWABLE MATERIALS COMPANY
Slide 14: Biodiversity target 2050
Biodiversity target 2050 Net positive impact through active biodiversity management Own forests As a forest owner and wood sourcing partner & plantations Achieve net positive impact on biodiversity within own forests and plantations. Building on this, achieve a net positive impact on biodiversity ac
Slide 15: Steering our actions through the Biodiversity Leadership Programme
Steering our actions through the Biodiversity Leadership Programme • We steer our biodiversity actions through a Biodiversity Leadership Programme to improve biodiversity on the species, habitat and landscape levels Four streams to drive biodiversity • Science-based indicators to monitor and adapt p
Slide 16: Two main indicator categories for biodiversity
Two main indicator categories for biodiversity Impact (operational) indicators State indicators measure the conditions for measure the quality of forestry operations. biodiversity. Stora Enso’s instructions for biodiversity considerations The state indicators apply to Stora Enso’s own forests apply
Slide 17: Impact indicator performance from 2022 shows how well we achieved our 90% target
Impact indicator performance from 2022 shows how well we achieved our 90% target High stump creation Ground deadwood protection 65% 2021: 63% High stumps are standing deadwood that is vital for birds and insects. 82% Ground deadwood is an important habitat for many species. 2021: 94% Prioritised hab
Slide 18: Leader in sustainable forest management across one of the world's largest private forest estates
Leader in sustainable forest management across one of the world’s largest private forest estates ~30% self-sufficiency of wood supply from own forest assets and long-term agreements Swedish forests 1,389,000 ha of forest land Veracel Brazil 113,000 ha Tornator of forest land 301,000 ha of forest lan
Slide 19: Competitive wood supply operations securing fiber to our sites
Competitive wood supply operations securing fiber to our sites 100% 80% of our wood comes proportion of from sustainable third-party sources certified wood in our wood supply 99% 13% of lands owned of our wood and managed by comes from us are covered certified tree by certification plantations 19 St
Slide 20: Forest certification for sustainable forest management
Forest certification for sustainable forest management • Forest certification ensures that the raw material comes Target is to maintain the forest certification coverage from responsibly managed forests level of at least 96% for own and leased forest lands • Biodiversity is an integral part of fores
Slide 21: Biodiversity management practices in Nordic forests
Biodiversity management practices in Nordic forests Decaying wood High stumps Retention trees Forest structure Decaying wood During harvesting, Provide continuum of Variation in forest structure provides an important we make artificial decaying wood for forest helps to maintain species habitat for a
Slide 22: Biodiversity management practices in tree plantations
Biodiversity management practices in tree plantations Beekeeping Mosaic landscape Protection of improve local Plantations are designed to protect valuable ecosystems livelihoods, help valuable ecosystems and established Restoration Monitoring of such as remaining natural protecting the only on degra
Slide 23: Circularity
Circularity
Slide 24: Offering renewable and circular products
Offering renewable and circular products Efficient and Products with sustainable production a low footprint Sustainable forestry Circular design Renewability circle Seedlings Recycling circle Ecosystem Value to consumers services Value from and society CO2 absorption circularity 24 Stora Enso ESG pr
Slide 25: The world seeks new alternatives to fossil-based materials
The world seeks new alternatives to fossil- based materials • Only 7.2% of materials are being recycled* which emphasises the need for strong collaboration to advance circularity and strengthen the recycling infrastructure. • 25% of all plastic packaging can already today be replaced by paper-based
Slide 26: Our target outlines our commitment to a circular economy
Our target outlines our commitment to a circular economy • Our target is to achieve 100% technically recyclable products by 2030 • The target outlines our commitment to transparent and circular material flows that help minimise waste and combat climate change • Flagship projects will help drive recy
Slide 27: Innovating and collaborating for circularity
Innovating and collaborating for circularity • By the end of 2022, 94% of our products were Share of technically recyclable products recyclable – target 100% as of 31 Dec 2022 • We aim to ensure the recyclability of products through an increased focus on circularity in the innovation processes • Col
Slide 28: Responsible business practices
Responsible business practices
Slide 29: Environmental
Environmental Materials, residuals Energy Water and waste Our process raw materials are largely renewable. We continuously improve energy efficiency and The majority of our operations are located in strive towards energy self-sufficiency. areas of low water stress. We aim to increase the value from
Slide 30: Social
Social Employees Human rights Community Diversity and inclusion We take human rights into account across operations With a global presence, we engage with local Zero tolerance for discrimination, harassment and starting from investment decisions, paying special communities around the world bullying
Slide 31: Governance
Governance Business ethics Sustainable sourcing Zero tolerance towards all forms of corruption, bribery Continuous work to maintain high coverage for and supporting fair competition Supplier Code of Conduct (SCoC) The Stora Enso Code outlines our approach to ethical As part of our tendering process,
Slide 32: Creating value in communities
Creating value in communities Sourcing from >20,000 suppliers, reaching thousands of customers and their down- Purchase from EUR 1,251 million stream partners >20,000 value through taxes borne and collected forest owners and income generation to hundreds of local businesses 21,000 direct employees 3
Slide 33: Value chain collaboration driven by sustainability
Value chain collaboration driven by sustainability Converters Brand owners Retailers Stora Enso Building on the synergies within the Group • Integration benefits • New materials and business models • Innovation with brand owners and retailers • Tailored, premium service offerings • Fast ramp-up and
Slide 34: Lifting business performance by aligning ESG targets with remuneration
Lifting business performance by aligning ESG targets with remuneration ESG targets 10% Total shareholder return (TSR) 10% 40% Earnings per share (EPS) CO2 emission reduction Diversity and inclusion 40% The purpose of the LTIP is to incentivise and align management with shareholder interests and the
Slide 35: Stora Enso as a taxpayer
Stora Enso as a taxpayer • In 2022, we paid a total of EUR ~1.3 billion in taxes Taxes borne 2022 Taxes collected 2022 • We aim to be transparent with respect to economic value generation • We make a voluntary commitment to openly provide details of the taxes paid by the Group to governments • This
Slide 36: ESG reporting
ESG reporting
Slide 37: Sustainability in our funding and reporting
Sustainability in our funding and reporting Sustainable finance Framework for green and Green and sustainability- strategy sustainability-linked financing linked financing instruments The aim is to influence and Integrates Stora Enso’s climate, Financing instruments to invest in the develop the fina
Slide 38: The EU Taxonomy reporting is still in development phase
The EU Taxonomy reporting is still in development phase • Forest industry and its main products are largely out of the scope of the EU Taxonomy • Therefore, only a few relevant economic activity categories to report on – The most relevant categories for Stora Enso are forest management in its own fo
Slide 39: Our leading performance in ESG is recognised
Our leading performance in ESG is recognised Climate A-, Forest B and ESG rating AAA (highest Water B possible score) Highest recognition level, Platinum ESG rating 14.4* out of 100 FTSE Transition Top-ranked in both management ESG rating 4.4 out of 5.0 Russell Pathway quality and carbon Initiative
Slide 40: Stora Enso ESG presentation Q3 2023
40 Stora Enso ESG presentation Q3 2023