1. Tracing the origin of wood for sustainable operation
Helena Jantunen
CSR Co-ordinator
STORA ENSO – Wood Supply Russia
12 April 2005

2. Total world forest territory 3.9 billion hectares
Europe 188 million ha
Oceania 198 million ha 5%
South America 886 million ha 5%
North America 549 million ha
23%
14%
Asia 548 million ha
14%
22%
Russia 851 million ha
17%
Africa 650 million ha
Source: FAO
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3. Stora Enso in Brief A world leader
Paper
Packaging Boards
Forest Products
A world leader
15.7 million tonnes of paper and board
7.4 million m3 of sawn and processed wood products
Three core product areas
Paper, Packaging Boards and Forest Products
Sales: EUR 12.2 billion
Approximately employees in 40 countries
Market capitalisation: EUR 9.3 billion
Shares listed on Helsinki, Stockholm and New York stock exchanges
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4. Balancing aspects of sustainability
(Corporate Responsibility)
Economic
Social
(CSR)
Environmental
Accountability: Transparency, Stakeholder dialogue
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5. Major wood procurement areas measured in million m3 solid under bark (sub), 2003
Other countries
15.2
Canada
0.4
15.9
Finland
0.9
Sweden
4.7
4.7
6.0
2.5
Russia US
The Baltic Countries
7.1
Continental Europe
Portugal
0.8
Total consumption of wood in Stora Enso's own mills in 2003 was approximately 44 million m3.
The total figure includes deliveries to joint venture and subsidiary companies.
Wood flows between procurement areas
Total amount of wood procured in the region (The wood is either consumed inside the region or delivered to other areas.)
x.x
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6. Forestry benefits from strong law enforcement
Forest industry needs a stable business environment to secure long-term investments and supply of raw material
Illegal logging
Undermines long term sustainability
distorts competition
adversely affects public image of the entire industry
Different definitions of illegal logging by different stakeholders:
Unauthorised harvesting
Unsound economic mechanisms and business practices
Unsustainable forest management
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7. Stora Enso position
Stora Enso actively works to combat illegal logging wherever the Group operates. Stora Enso also acts to prevent any other illegal activities related to the wood supply. Where Stora Enso cannot directly prevent such illegal incidents, the Group co-operates with the authorities and other stakeholders in order to improve the working environment.
Illegal logging= Wood harvesting in violation of national laws and state laws
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8. Strategies to fight unsound practices
Clear corporate policies and ethical codes support ethical business
Recognize and analyse the risks related to legality and sustainability
Focus on long term partnerships and investments
Have local representative network to control and verify
Increase own logging operations
Keep the supply chains as short as possible
Partnership and training to promote supplier’s awareness/performance
Have active stakeholder dialogue and cooperation
customers and suppliers
governmental and public authorities
NGOs
research institutes
media
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9. Traceability system – case Russia
Tool for verifying compliance with
corporate policies and legislation
Third party verified through
ISO and EMAS
since
Environmental clause in contracts
ensure supplier’s commitment to Stora Enso policies
Auditing
Wood origin data
Contracts C B A
External audits D
Internal audits for monitoring and development
Supplier audits to verify
Harvesting rights
Environmental policies
Worker safety polices
Field audits to verify
Documentation and origin
Forestry practices and forest certification
Biodiversity, conservation status
Social aspects: Worker safety
Wood origin data from each harvesting site to SE database
GIS map system – Forest certification data
Legal harvesting rights – Volumes
Environmental values
08 March 2005

10. Stora Enso targets to maximise wood coming from certified forests
Promoting forest certification where ever Stora Enso operates
Today less than 5% of the forests of the world are certified
About 45% of wood used by Stora Enso comes from certified forests
Also Traceability systems needed to verify the origin
Stora Enso’s traceability systems cover 98% of wood
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11. Conclusion: Joint efforts to prevent illegal logging
Public authorities and the working environment
Develop legislation and law enforcement
Well functioning controls systems are effective, cost-efficient, based on analyses and focussed into preventing and punishing illegal actions
Private sector and ethical business practices
Corporate policies and guidelines to support ethical behaviour
Traceability systems third party verified through EMAS, ISO14001, ISO 9002 and Chain-of-Custody are strong tools in ensuring legality
Cooperation and partnership
Partnership along supply chain between suppliers and customers
Cooperation between public authorities, companies, NGOs and researchers help recognise risks and increase transparency and effectiveness
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12. For more information, visit
 sustainability
08 March 2005