Stora Enso About Stora Enso Our strategy

Our strategy

We create value for our stakeholders with leading positions in packaging, biomaterials innovations and building solutions.

Strategic focus areas

Renewable packaging

In Packaging, we continue to see high demand for plastic substitution and circular solutions. Fiber-based packaging is the most sustainable option for many products, as it can be recycled, reused, or composted. Fiber-based packaging is the fastest growing packaging materials globally, and fiber-based packaging is expected to grow faster than plastic alternatives long-term. We have leading global market positions in high-value segments and long-term customer partnerships. Our innovative and customised solutions help our customers reduce their environmental impact and enhance their brand image. We offer a wide range of fiber-based packaging materials and solutions, such as cartons, boxes, trays, cups, and bags, for various industries, such as food and beverage, e-commerce, pharmaceutical, and cosmetics.

Sustainable building solutions

There are growth opportunities in the building industry, offering wooden alternatives to other construction materials that have a larger carbon footprint, such as concrete and steel. The global construction market is moving from labour intensive to modular building methods that use less energy and have a low carbon footprint. Today, mass timber products can be used to build sustainable and safe high-rise buildings. We have a strong position to capture more value in the full supply chain with our products and value-added services, such as pre-fabricated, bespoke wooden elements, new concepts, and digital services.

Biomaterials innovation

In Biomaterials, we focus on offering innovative and sustainable materials for high growth, high margin markets with our portfolio of biobased solutions, proprietary technologies, and a unique value proposition. Through our know-how, strategic collaborations and partnerships, we accelerate breakthrough innovations in wood foams, biochemicals, and lignin-based applications, including anode material for batteries and biobinders for construction, which can replace fossil-based materials.

Forests are the foundation for Stora Enso’s renewable solutions

Stora Enso has forest assets in Sweden and a 41% share of Tornator, whose forest assets are mainly located in Finland. The Forest division is responsible for wood sourcing for Stora Enso’s Nordic and Baltic operations.

Global megatrends underpin our business strategy

Sustainability is core to our businesses, accelerating our growth, enabling margin expansion, and opening up new business opportunities. While climate change continues to impact the environment, economy, and society, an expanding global population and middle class is pushing up demand for food, clothing, housing and energy. At the same time, sustainability actions, technology developments, and consumer demand and preferences to substitute and replace fossil-based materials are changing buying behaviour. Overall, global megatrends drive the demand for renewable materials supporting our growth and value creation.

Key drivers

Circularity

Circularity is gaining momentum across various sectors and regions, driven by policy, innovation, and consumer demand. The world needs materials which are both renewable and recyclable, and supporting a circular bioeconomy to combat climate change, save natural resources, and minimise waste.

Climate change

The increase in average global temperatures has significant impacts on the environment, society, and economy, as seen in melting ice caps, rising sea levels, extreme weather events, biodiversity loss, food insecurity, and human health risks. A key factor to decelerate climate change, and where Stora Enso can contribute, is in replacing fossil-based materials with renewable materials.

Eco-awareness

Climate change requires us to use natural resources more efficiently, and more and more consumers demand sustainable products. Investors and other financial institutions increasingly factor in companies’ climate and biodiversity impacts in their investment strategies. Policy makers and regulators shape regulation to mitigate and adapt to climate change and halt biodiversity loss.

Resource scarcity

A growing population and middle class increase the demand for food, such as meat, fish, dairy, sugar and vegetable oils. These require more land, energy and water to produce. This rise in global resource scarcity also increases the price of natural resources.

Annual Report 2023