Montes del Plata - Environmental, Social, and Governance

What is Stora Enso’s role in Montes del Plata?

Montes del Plata (MdP) is a 50/50 Joint Operation between Stora Enso and the Chilean pulp producer Arauco. MdP is a local Uruguayan company, run by a local management team and staff

Stora Enso recognised the challenge of understanding the socio-economic and environmental operating context for a Finnish-Swedish company establishing a presence in South America from the outset. Setting up a joint Operation with a regional partner helped overcome some of these challenges.

Engagement from Stora Enso in the management takes place by participation through MdP Board meetings and support groups e.g. Sustainability and Communication Support Group and Forestry and Logistics Support Group.

Why is Uruguay suitable for eucalyptus plantation?

Uruguay offers stable and predictable conditions for long-term forestry investments. The country has a strong legal framework, clear property rights, and longstanding forestry and environmental legislation that provides guidance on land use and conservation.

Uruguay’s climate and soils are well suited for eucalyptus plantations. Rainfall is abundant and evenly distributed throughout the year, supporting productive forest growth, allowing for a short 10-year rotation time for eucalyptus. In addition, the country has well-developed infrastructure, including roads, ports, and logistics networks that support industrial operations and exports.

The forestry sector has been supported across political administrations since the Forestry Law of 1987, which enabled the development of plantation forestry while also strengthening the protection of native forests. In addition, forestry companies such as Montes del Plata manage plantations as part of a broader landscape approach that includes the conservation of native grasslands, wetlands and other natural ecosystems.

What role does plantation forestry play in Uruguay’s economy and rural development?

Forestry is one of Uruguay’s main export sectors and an important contributor to regional development, employment, and industrial growth. The forestry value chain supports more than 45,000 jobs across the country and creates economic activity in many rural areas where employment opportunities can otherwise be limited.

Montes del Plata supports more than 6,000 jobs across its value chain and works with approximately more than 2,000 suppliers and service providers throughout Uruguay. The sector also contributes to infrastructure development, technology investments, and local services.

Plantation forestry in Uruguay coexists with other land uses such as cattle grazing and agriculture. Forest plantations currently cover around 6.5% of Uruguay’s productive land, while cattle grazing remains the dominant land use.

What are Stora Enso’s long-term sustainability ambitions in Uruguay?

Stora Enso’s ambition is to operate a competitive and profitable business while managing natural resources responsibly and contributing to the transition away from fossil-based materials.
In Uruguay, this means focusing on sustainable forestry, responsible water use, biodiversity protection, and long-term land stewardship, supported by science-based practices, monitoring, and regulatory compliance.

Montes del Plata (MdP) applies a landscape approach where plantations coexist with native forests, grasslands, wetlands, and conservation areas. The company combines long-term forestry planning, continuous environmental oversight, and structured stakeholder engagement to support responsible land use and long-term shared value creation. Examples include cattle grazing on forestry lands, mushroom collection, and honey production, benefiting local communities, the environment, and the business.

In 2023, MdP established sustainability goals for 2030 aligned with the UN Sustainable Development Goals (SDGs), covering environmental, social, people and ethical priorities, with specific targets and indicators in areas such as biodiversity, climate change, water stewardship, circular economy, gender equity, ethics and local development.

Does Montes del Plata have any plans to increase plantation lands?

Montes del Plata currently manages 307,000 hectares of land, of which 202,000 hectares are used for eucalyptus plantations. The focus remains on continuously improving the efficiency and sustainability of eucalyptus pulp operations and the existing land base. Efficiencies are achieved, among other measures, through improved management and breeding processes, resulting in higher yields to meet production demands.

What is the free trade zone regime in Uruguay and how does it affect taxation?

Free trade zones are a long-established policy tool used in more than 140 countries to attract investment, create jobs, and support economic development. In Uruguay, more than 1,000 companies operate in free trade zones, representing around one third of the country’s exports, more than 6% of GDP, and close to 70,000 jobs.

At Montes del Plata (MdP), the industrial plant and port terminal are in a free trade zone. Plantations across 16 departments, the nursery, forestry technology centre, M’Bopicuá port terminal, and other operational centres are outside free trade zones and operate under the standard tax framework.

Across the full value chain, MdP’s annual tax contribution is around USD 127 million. Across its full value chain, the company supports more than 6,000 full-time jobs and works with over 2,000 suppliers across Uruguay.

The company also contributes through salaries, social security payments, local procurement, and infrastructure investments. Net salaries amount to more than USD 100 million annually, supporting the economies of more than 100 communities. In 2024, MdP invested more than USD 160 million in areas such as road construction and repair, industrial improvements, and new technologies.

How does Stora Enso respond to criticism against foreign investments in Uruguay?

Stora Enso believes foreign investment should create long-term value for the countries and communities where companies operate. In Uruguay, forestry investments have developed within a stable legal framework established by the country itself and maintained across political administrations for decades. As a small country, Uruguay depends on foreign investment to support economic growth.

Montes del Plata (MdP) operates under Uruguayan legislation and regulatory oversight. Its operations are integrated into local supply chains and generate employment and regional development. The company works with local contractors, suppliers, authorities, and communities across the country.

At the same time, Stora Enso recognises that large-scale forestry and industrial operations can raise concerns and public debate. The company believes these discussions should be addressed through transparent reporting, continuous oversight by authorities, and fact-based dialogue grounded in science and long-term monitoring.

How does MdP address concerns regarding the participation of undocumented or informal workers in the forest sector?

Undocumented or informal workers in the forestry and agriculture sectors are well known concerns globally. MdP does not have undocumented nor informal workers in its company. Companies who intend to work with MdP need to sign the Supplier Code of Conduct, which requires suppliers and contractors to have controls in place to prevent participation of undocumented or informal workers in their workforce. MdP manages this risk thoroughly through processes and controls including continuous supplier auditing, education, monitoring and frequent interactions. For instance, they carry out operational controls, such as document verification and legal compliance checks as well as workplace surveys specifically targeting contractors and third-party workers.

How does MdP ensure that plantations are managed responsibly?

Montes del Plata (MdP) manages its plantations through long-term planning, science-based forestry practices, and continuous oversight within Uruguay’s forestry and environmental framework.

Before plantations are established, soil conditions, biodiversity values, water systems, and land-use suitability are assessed. Forestry projects are reviewed and approved by the General Forestry Directorate of the Ministry of Livestock, Agriculture and Fisheries, while larger projects are also assessed by DINACEA (National Directorate for Environmental Quality and Assessment) under Uruguay’s Ministry of Environment. Furthermore, projects of 40 hectares or more, as well as reforestation activities, must be registered with DINACEA, and some projects require additional local-level authorisations.

Plantations are managed as part of a broader landscape approach. Approximately 40% of the total managed land is not planted with trees and includes conservation areas such as native forests, grasslands, wetlands and biological corridors, as well as land used for cattle grazing, fire prevention and other non-forestry purposes.

Forest management practices are certified according to internationally recognised standards, including FSC® (Forest Stewardship Council®) and PEFC™ (Programme for the Endorsement of Forest Certification). Compliance is regularly audited by independent third parties.

Long-term research is also carried out together with universities and research institutions in Uruguay, including the Faculty of Agronomy at Universidad de la República (Udelar), particularly on water and soil impacts.

Are grasslands converted into eucalyptus plantations?

Grasslands are the dominant native ecosystem in Uruguay. Many grassland areas have long been shaped by human activity, particularly cattle grazing and agriculture. Today, cattle grazing accounts for approximately 67.5% of land use, while forestry plantations cover around 6.5%.

Native undisturbed grasslands are not converted into plantations by Montes del Plata. Plantations are established on land already under human influence and on soils classified as suitable for forestry under Uruguay’s forestry framework.

Before planting, areas with ecological value, biodiversity importance, wetlands, native vegetation, or other environmental characteristics are identified and conserved. Significant areas remain permanently unplanted for conservation and ecosystem protection and are subject to ongoing environmental monitoring.

Are eucalyptus plantations increasing risk for forest fires?

In Uruguay, most forest fires are caused by human activity and weather conditions rather than by a specific tree species. However, forests can influence fire behavior and, in a country largely covered by grasslands, may increase the potential for fire to spread. This is why fire prevention, monitoring and rapid response are a key part of plantation management. Montes del Plata, together with other forestry companies and public authorities, operates extensive fire prevention and response systems designed to protect plantations, nearby land uses and local communities.

Do Montes del Plata’s plantations reduce biodiversity?

Montes del Plata does not convert natural forests or other native ecosystems into plantations. Plantations are established on land already under human influence, primarily grasslands used for livestock production and other agricultural activities.

How does Montes del Plata integrate biodiversity and conservation into plantation operations?

Biodiversity and conservation are integrated into plantation planning and land use from the beginning. Before plantations are established, areas with ecological value are identified and protected, while plantations are managed as part of a broader landscape approach that includes native forests, grasslands, wetlands, and biological corridors.

Montes del Plata has identified and manages a network of conservation, restoration and other environmentally sensitive areas across its landholdings to protect different ecosystems and biodiversity values in Uruguay. The latest available data show 135 representative conservation areas covering more than 10,800 hectares, alongside high conservation value, restoration and other sensitive areas. These areas are actively monitored to support conservation efforts and generate knowledge about Uruguay’s natural ecosystems and biodiversity over time.

Operations are guided by Uruguay’s environmental legislation, long-term research and monitoring, and internationally recognised certification standards such as FSC® and PEFC™.*

*Stora Enso Communications’ FSC® trademark license number is FSC-N001919. Stora Enso PEFC trademark license number is PEFC/02-44-22.

Does Montes del Plata protect or conserve natural ecosystems such as native grasslands, forests and wetlands?

Yes. Montes del Plata manages its plantations as part of a broader landscape approach that integrates forestry production with the conservation of natural ecosystems. Approximately 40% of the land under management is not planted with trees and is dedicated to conservation and other non-forestry uses.

These areas include native grasslands, native forests and wetlands, as well as biological corridors and land used for fire prevention and cattle grazing. Some of these areas have been identified as High Conservation Value Areas (HCVAs) due to their ecological importance. (See also the next question on HCVAs.)

Overall, MdP manages close to 100,000 hectares of natural areas, including more than 10,000 hectares of native forest. These landscapes support biodiversity while also enabling complementary land uses. For example, local communities collect mushrooms in certain areas, and cattle grazing takes place alongside forestry activities. In plantation areas, trees provide shade and shelter for livestock, contributing to animal welfare and productivity.

MdP’s commitment to conservation also extends to the M’Bopicuá Biopark in Uruguay. With more than 25 years of recognised experience, the biopark is dedicated to the conservation, breeding, rehabilitation and reintroduction of native wildlife. It hosts more than 600 animals and welcomed over 6,500 visitors in 2025, serving as an important center for biodiversity conservation, research and environmental education.

Are there any High Conservation Value Areas on the lands Montes del Plata operates?

Yes. Montes del Plata maintains and monitors all together nine High Conservation Value Areas across the land it manages. These include Butiá Yatay palm groves, wetlands, habitats for endemic species such as Homonota uruguayensis, and sites with archaeological and historical value, including rock paintings and stone walls.

These areas are protected and actively monitored to maintain their ecological condition, support biodiversity, and strengthen ecological connectivity across the landscape.

How does Montes del Plata monitor and report the biodiversity impacts of plantations?

Biodiversity impacts are monitored through continuous environmental assessments, field studies, and long-term research carried out together with universities and research institutions in Uruguay.
Conservation areas and ecosystems are regularly reviewed to evaluate their ecological condition and support biodiversity management over time. This work also helps build scientific knowledge about Uruguay’s natural areas and species.

Environmental performance is externally audited under FSC® and PEFC™ certification systems and overseen by national authorities, supporting transparency and continuous improvement.

Does the Montes del Plata eucalyptus plantations affect water availability?

Long-term studies and operational experience in Uruguay indicate that responsibly managed eucalyptus plantations do not significantly affect water availability or contribute to desertification. As part of its management model, Montes del Plata evaluates soil types, the species to be planted and planned activities before any intervention to ensure responsible land and water management.

Uruguay’s climate is well suited for forestry, with annual rainfall typically between 1,200 and 1,400 mm and no regular dry season. Research conducted in collaboration with the Faculty of Agronomy and the Faculty of Engineering at Universidad de la República (Udelar) shows that eucalyptus plantations use a similar or slightly lower amount of water per day than crops such as soybeans or corn.

How are water impacts monitored, assessed and reported?

Water use and water quality are monitored and assessed through long-term research, field studies and continuous environmental measurements carried out together with universities and research institutions in Uruguay, including the Faculty of Agronomy at Universidad de la República (Udelar). In accordance with the Forest Environmental Management Plan (PGAF) established for each watershed, Montes del Plata monitors soil, water and biodiversity indicators. The company also conducts chemical and physical analyses of the main CONEAT (Uruguay’s national soil classification system) soil types used for afforestation.

In industrial operations, more than 150 water-related parameters are continuously measured, with data collected every ten minutes and reported to the authorities in real time. Around nine million data records are submitted annually to Uruguay’s Ministry of Environment.

Water quality is also analysed by external laboratories, including LATU (Technological Laboratory of Uruguay) and international laboratories. Environmental performance is further reviewed through regulatory oversight and external certification processes, providing transparency and independent verification of monitoring results.

What measures are used to protect rivers, wetlands and groundwater?

Protecting water resources is integrated into both forestry planning and industrial operations at Montes del Plata.

Before plantations are established, wetlands, native vegetation, and other ecologically sensitive areas are identified and conserved. The plantation design also incorporates hydrological considerations, with certain areas intentionally left unforested because of their importance to the water cycle, including drainage basins and low-lying areas surrounding watercourses. Buffer zones are maintained around all bodies of water.

Forestry operations are planned according to terrain contours to reduce runoff, erosion, and sediment flows into waterways. MdP also applies best forestry practices and rigorous compliance controls to prevent water contamination from chemicals, fertilisers, and forestry residues. In addition, the percentage of land that may be afforested in certain watersheds is regulated by Uruguay’s Ministry of Environment through prior environmental authorisations.

In pulp production, water is sourced from the Río de la Plata river, one of the largest river systems in the world. Water is reused throughout the process, and around 80% of the water taken into the process is treated and returned to the river under conditions defined and supervised by Uruguay’s Ministry of Environment. The remaining share returns to the atmosphere as water vapour.

How does Montes del Plata account for and report its carbon emissions and removals?

Montes del Plata (MdP) accounts for and reports its greenhouse gas (GHG) emissions and removals in accordance with the GHG Protocol Corporate Accounting and Reporting Standard. Its GHG inventory includes Scope 1 and Scope 2 emissions, as well as the most material Scope 3 emission categories. Emissions and removals are measured and independently verified every two years in accordance with ISO 14064-1 and the GHG Protocol.

The company assesses emissions, carbon removals and climate impacts through continuous monitoring, operational data collection and reporting aligned with international sustainability standards. In 2025, MdP’s total GHG emissions amounted to 891,481 tonnes of CO₂e, of which 75% were Scope 3 emissions associated with the value chain, including purchased goods and services, transportation and logistics.

At the same time, the company’s forests and other carbon pools continued to store and remove carbon from the atmosphere. In 2025, Montes del Plata reported a total carbon stock of 43.7 million tonnes of CO₂e.

As part of its 2030 sustainability goals, MdP has committed to reducing Scope 1 and Scope 2 emissions intensity by 10% from its 2021–2022 baseline. By 2025, the company had already achieved an 8% reduction toward this target. The company is also working to establish a Scope 3 emissions reduction target and plans to begin introducing renewable hydrogen-powered trucks into its transportation operations from 2026 onwards.

Detailed information on MdP’s greenhouse gas inventory, carbon stocks, emissions, removals and climate-related targets can be found in the company’s latest Sustainability Report.

What agrochemicals are used in Montes del Plata’s plantation operations in Uruguay and why?

Agrochemicals are mainly used during the first 18 months after planting to control weeds and pests and support the successful establishment of young trees.

One of the active ingredients used is fipronil, which is applied in granular form to control leaf-cutting ants, a significant pest that can damage young plantations. Herbicides, including glyphosate, may also be used in specific and targeted situations, such as controlling vegetation or preventing regrowth from previous tree varieties when new, improved varieties are planted between existing rows.

All agrochemicals and pesticides used in operations are approved by Uruguay’s Ministry of Livestock, Agriculture and Fisheries and are subject to strict requirements under international forest certification standards.

After the initial establishment phase, no further agrochemical applications are typically required during the 10–12 year growing cycle before harvest. Large-scale aerial spraying is not carried out.

How are the potential risks related to the use of agrochemicals managed?

Potential risks related to agrochemical use are managed through regulation, certification requirements, operational controls and targeted application methods.

One of the products used in plantation establishment is fipronil in granular form, which is applied to control leaf-cutting ants, a pest that is native to South America and does not occur in Europe. While certain uses of fipronil are restricted in some jurisdictions, its use in Uruguay is regulated and authorised for this purpose. In certified forestry operations, its use is also subject to specific requirements and oversight under international certification standards.

The product is applied locally and in small quantities, either mechanically or with backpack equipment, which minimises exposure and environmental impacts. When used in granular form, the risk to workers, biodiversity and surrounding communities is considered low. Applications are carried out by trained and authorised personnel using appropriate personal protective equipment and following established procedures.

Agrochemical applications are conducted only where needed, using defined doses and timing. Large-scale aerial spraying is not used. Operations are subject to oversight by Uruguayan authorities and are regularly reviewed through external certification audits.

How does Montes del Plata monitor and report the environmental impacts of plantations?

Environmental impacts are monitored through continuous environmental measurements, field studies, long-term research programmes and operational reporting, often conducted in collaboration with universities and research institutions in Uruguay.

Assessment covers areas such as biodiversity, water resources, soil quality and forestry operations. Environmental performance is also reviewed through external certification audits and oversight by national authorities.

Montes del Plata (MdP) also has internal and external grievance channels through which employees, contractors, communities and other stakeholders can raise concerns, including on environmental matters.

MdP publicly reports its environmental performance through its Sustainability Report and on Montes del Plata’s website. Relevant environmental and sustainability information is also reflected in Stora Enso’s sustainability reporting.

What is Montes del Plata’s contribution to local employment, infrastructure and public revenues?

Montes del Plata (MdP) is an important employer and economic actor in Uruguay’s rural areas. The forestry value chain supports more than 45,000 jobs nationwide, while MdP contributes around 6,000 jobs across its value chain and works with more than 2,000 suppliers and service providers across the country.

The company also contributes to infrastructure development, including road construction and maintenance, and invested more than USD 160 million (2025) in roads, industrial improvements, and new technologies. Beyond these investments, MdP invested USD 1.3 million in community development initiatives in 2025 and aims to reach a cumulative community investment of USD 15 million by 2030. Public revenues are generated through taxes, salaries, social security payments, and local procurement.

How does Montes del Plata address concerns from local communities about the impacts of its operations?

Montes del Plata (MdP) works with local communities through structured and ongoing engagement processes designed to support dialogue, transparency and long-term relationships in the areas where it operates. Being a responsible company that maintains close relationships with communities is one of the company’s strategic pillars.

The company engages with more than 100 communities across Uruguay and works together with local stakeholders, authorities, suppliers and civil society organisations to discuss topics such as forestry operations, infrastructure, environmental impacts, and local livelihoods.

Engagement takes place through regular meetings, stakeholder consultations, community outreach activities and ongoing dialogue channels that enable local concerns and expectations to be identified and addressed. MdP also has formal grievance mechanisms through which community members and other stakeholders can raise concerns and receive follow-up.

To better understand local perspectives, the company regularly conducts surveys, interviews, social studies and one-on-one dialogues with neighbours. Environmental and social impact assessments are also carried out, and local stakeholders are involved when planning and implementing activities that may affect surrounding communities.

In addition, MdP supports community development initiatives focused on employability, education, entrepreneurship and social inclusion. Through specific programmes, the company seeks to strengthen local capabilities, enhance positive impacts and build long-term partnerships with the communities where it operates.

How are community concerns and grievances related to plantation forestry operations addressed?

Montes del Plata has a formal grievance mechanism through which community members and other stakeholders can raise concerns related to its operations. Reported issues are reviewed, investigated where necessary and followed up through established procedures.

The most common concerns relate to road use, including road conditions, dust and vehicle speeds. Other issues may involve operational matters, such as damaged or open fences, as well as labour-related concerns.

The company uses feedback received through this process to identify improvement opportunities and implement corrective actions when needed. The handling of concerns is also reviewed through external certification audits, which include requirements related to transparency, accountability and stakeholder responsiveness.

What kinds of local development programmes does Montes del Plata support?

Montes del Plata (MdP) supports local development through a range of initiatives focused on education, employability, entrepreneurship and community development. These programmes help strengthen local skills, expand access to educational opportunities (including language learning), support workforce participation and provide funding for community-led projects and local initiatives.
The company also promotes sustainable economic opportunities in rural areas. One of the most tangible examples is its agroforestry approach, which enables forestry, livestock farming and beekeeping to coexist on the same land. Through agreements with local producers, 284 livestock farmers graze more than 54,000 head of cattle on company lands, while 40 beekeeping producers manage over 6,000 beehives, 27% of which are organically certified.

In addition, MdP supports the development of the eucalyptus mushroom value chain through its Mushroom Route initiative, implemented together with educational institutions and local partners. The programme promotes income generation from mushrooms that grow naturally in the company’s forests and currently involves around 450 families, with approximately 376,000 kilograms of mushrooms collected.

Does Montes del Plata adhere to international Human Rights standards?

Yes. Montes del Plata’s public Human Rights Policy sets out the company’s commitment to respecting and promoting human rights across its operations and business relationships, in accordance with Uruguayan legislation and internationally recognised principles.

This commitment is reinforced through the company’s Code of Ethics and Conduct and Supplier Code of Ethics and Conduct, which establish expectations related to non-discrimination, equal opportunities, occupational health and safety, ethical conduct and responsible business practices for employees, contractors and suppliers.

How is Montes del Plata progressing on its commitment to respect human rights?

Montes del Plata (MdP) integrates human rights commitments into daily operations, workforce management, and supply chain practices. This includes promoting fair and safe working conditions, occupational health and safety, wellbeing, and respect for labour rights across operations and contractor networks.

Requirements related to ethics, worker safety, and responsible practices are included in operational procedures and supplier expectations. This work is supported through training, operational oversight, external audits, and engagement with employees, contractors, and local stakeholders.

In practice, MdP operates through an integrated management system (IMS) that incorporates environmental, occupational health and safety, labour, and international convention requirements. The company also conducts environmental and social impact assessments before operations and applies preventive and corrective measures where needed.

MdP also maintains ongoing dialogue with local communities and stakeholders. One example of how these commitments are translated into practice is the company’s 2030 target to increase the participation of women in operational and forestry roles, helping to promote equal opportunities and greater inclusion in rural employment.

How does Montes del Plata ensure that contractors and suppliers adhere to responsible practices?

Montes del Plata (MdP) works with more than 2,000 suppliers and service providers across Uruguay. Contractors and suppliers are expected to comply with applicable legislation, safety requirements, ethical standards, and operational procedures related to responsible forestry practices.

These expectations are formalised in the company’s Supplier Code of Ethics and Conduct, which sets requirements related to labour rights, non-discrimination, occupational health and safety, environmental management, ethical business conduct and legal compliance.

Requirements related to labour rights, occupational health and safety, environmental management and compliance are integrated into supplier and contractor management processes. Performance is supported through training, operational oversight and external certification and audit systems. Through the MdP Academy, suppliers and contractors receive regular training on topics such as safety, environmental management, human rights, gender equality and community relations.

The company also works to continuously improve contractor performance through leadership workshops, safety programmes and recognition initiatives. For example, in 2025 MdP organised critical risk workshops for leaders from contractor companies and recognised top-performing contractors in the forestry, logistics and industrial value chain for their safety performance. MdP’s forestry and industrial operations are certified under ISO 45001, the international standard for occupational health and safety management.