Stora Enso’s
Annual Report 2020
Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wooden construction, and paper. Our fiber-based materials are renewable, recyclable, and fossil free. Our solutions offer low-carbon alternatives to products based on finite resources.
Full Annual Report 2020
Stora Enso’s Annual Report 2020 consists of five sections:
- Strategy,
- Sustainability,
- Financials,
- Governance and
- Remuneration.
Strategy 2020
Stora Enso supports customers to meet consumers’ demand for sustainable products based on renewable materials.
Sustainability 2020
Our sustainability work covers social, environmental, and economic responsibility in everything we do.
Financials 2020
Financials includes the report of the Board of Directors, the financial statements and information on our tax footprint and capital markets activities.
Governance 2020
Responsibility translates into a strong commitment to sound principles of corporate governance and sustainability.
Remuneration 2020
Remuneration includes the main principles and details of how our remuneration arrangements were implemented during the year.
Summary 2020
The Annual Report summary highlights our progress and presents the key events from our business and operations.
CEO’s review
Significant potential for profitable growth
The year 2020 was shaped by an uncertain political and economic landscape, but above all by the pandemic. In these challenging times for societies, companies, and individuals, Stora Enso has remained resilient. Our business is built on a renewable raw material, serving global markets with products that help consumers make eco-friendly choices.
"We want to support industries, producers and retailers in meeting the growing demand for eco-friendly and circular solutions"
Making choices for growth and value
We have renewed our strategy, entering a new phase in our transformation journey and shaping our business for accelerated growth and value. We will focus on Packaging, Building Solutions, and Biomaterials innovations. These are the areas where we have the leading market positions and are in the frontline of customer driven innovation. And we can build on strong and competitive assets to drive accelerated profitable growth. We also adjusted our long-term financial targets and our goal is to grow profitably by more than 5% annually, excluding Paper.
Although we have specific growth areas, our ability to create value has its foundation in forest. We are one of the biggest private forest owners in the world today. The forest is a valuable, growing asset that ensures a long-term fiber supply for our products.
Innovation and investments to support strategic focus
We will concentrate our innovation efforts and resources on new sustainable packaging materials, sustainable barriers, and biochemicals. Speed to market is essential and we will continue to push this through collaboration and an open innovation approach.
Oulu Mill was converted from paper to kraftliner. This is a major step forward in our transformation. We are ramping-up the production of formed fiber products, and are investing in cross laminated timber (CLT), a granulation and packing plant for lignin, and making a feasibility study on expanding pulp and board production.
Business during the pandemic
We have built a strong liquidity position and continue active working capital management and cost savings. A strong cash flow gives us flexibility. The market effects of Covid-19 have posed challenges for our paper and pulp businesses. With other parts of our diverse portfolio continuing to perform well, the overall impact has been limited.
Sustainability is integral to our relevance as a business, our role as a responsible member of society, and our ability to contribute to a greener world. Our emphasis is on social, environmental, and economic responsibility in our operations and the value chain.
Competitive edge
As I see it, the winners will be companies that have businesses which are sustainable in the long term from an environmental, social, and financial perspective; that stay close to their customers and innovate based on consumers’ future needs; and that can manage volatility. This is Stora Enso’s competitive edge.
The renewable future grows in the forest.
Annica Bresky
President and CEO
