Slide 1: Stora Enso ESG investor presentation Full year 2023
Stora Enso ESG investor presentation Full year 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 Stora Enso ESG presentation 2023
Slide 4: Our sustainability performance in 2023
Our sustainability performance in 2023 -50% 100% 96% Targets reduction in absolute Technically* of owned and leased emissions by 2030 recyclable products lands covered by forest (Scope 1, 2, 3) by 2030 certification schemes Scope 1+2 -41% (2023 compared to 2019 baseline) 94% 99% Status (2023) (2023)
Slide 5: Climate
Climate THE RENEWABLE MATERIALS COMPANY ; ~
Slide 6: Stora Enso's annual climate impact
Stora Enso’s annual climate impact1 Our products store carbon2 Our products substitute fossil-based alternatives, saving3 −2.5 1 Negative value indicates a net removal from −13.4 million tonnes atmosphere. 2 A modelled 100-year average with IPCC tool. of CO2 Calculated by the Swedish University of A
Slide 7: Committing to 100% regenerative solutions by 2050 and net zero by 2040
Committing to 100% regenerative solutions by 2050 and net zero by 2040 Ambitions • Renewable and fully circular products and solutions by 2050 that, o will reduce climate impacts by sequestering more carbon than they emit and support biodiversity restoration • Implement decarbonisation strategies in
Slide 8: We stay committed to our science-based target for 2030
We stay committed to our science-based target for 2030 • 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 commi
Slide 9: 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 2024–2025, we will continue to invest in 3,000.0 projects which, in addition to business targets, aim at reaching the CO2e targets 2,500.0 Actions planned 2024-2026 Million tonnes 50% 2
Slide 10: 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 were approximately 1.5 (Scope 1 & 2, rolling four quarters) million tonnes at the end of 2023 0% – The decrease in emissions was mainly a 2.8 -12% -13% -27% consequence of lower producti
Slide 11: 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 2023, the estimated Scope 3 emissions were approximately 5 million tonnes 3% 0% -3% 5% – 34% less than the 2019 baseline 8 -24% -5% – The emissions decreased mainly due to mill 7 -34% -
Slide 12: Circularity
Circularity
Slide 13: 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 Stora Enso ESG prese
Slide 14: 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 15: 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 16: Innovating and collaborating for circularity
Innovating and collaborating for circularity • By the end of 2023, 94% of our products were Share of technically recyclable products recyclable – target 100% as of 31 Dec 2023 • We aim to ensure the recyclability of products through an increased focus on circularity in the innovation processes • Col
Slide 17: Biodiversity
ys THE RENEWABLE MATERIALS COMPANY
Slide 18: 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 19: 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 20: 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 21: Impact indicator performance – target to reach 90% for each indicator
Impact indicator performance – target to reach 90% for each indicator High stump creation Ground deadwood protection 84% 2022: 71% High stumps are standing deadwood that is vital for birds and insects. 81% Ground deadwood is an important habitat for many species. 2022: 84% Prioritised habitat preser
Slide 22: Stora Enso's productive forest land areas
Stora Enso’s productive forest land areas ~36% self-sufficiency of wood supply from own forest assets and long-term agreements Swedish forests 1,139,000 ha of productive forest land Veracel Brazil 49,000 ha Tornator of productive forest land 285,000 ha of productive forest land in Finland, Estonia &
Slide 23: Competitive wood supply operations securing fiber to our sites
Competitive wood supply operations securing fiber to our sites 100% 81% of our wood comes proportion of from sustainable third-party sources certified wood in our wood supply 99% 16% of lands owned of our wood and managed by comes from us are covered certified tree by certification plantations Stora
Slide 24: 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 25: 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 26: 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 27: Responsible business practices
Responsible business practices
Slide 28: 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 29: 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 30: 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 31: 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 32: 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 33: ESG reporting
ESG reporting
Slide 34: 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 35: 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 36: Our leading performance in ESG is recognised
Our leading performance in ESG is recognised Climate A-, Forest A and ESG rating AAA (highest Water A- possible score) Highest recognition level, Platinum ESG rating 14.4* out of 100 FTSE Transition ESG rating 4.4 out of 5.0 Top-ranked in both management Pathway quality and carbon Russell Initiative
Slide 37: Stora Enso ESG presentation 2023
Stora Enso ESG presentation 2023