We believe that the key to combatting global warming involves the use of renewable materials, resource and energy efficient production processes, and sustainable forest management practices. Stora Enso welcomes the Paris climate agreement as an important milestone in sustainable global development.
In December 2017, as the first forest products company, the Science Based Targets initiative approved Stora Enso's ambitious targets to reduce greenhouse gas (GHG) emissions throughout its value chain. With the targets, Stora Enso commits to reducing GHG emissions from operations by 31% per tonne of pulp, paper, and board produced by 2030, compared to a 2010 baseline. To reduce emissions in our value chain, we also commit to ensuring 70% of our non-fibre suppliers and downstream transportation suppliers in terms of spend set their own GHG reduction targets by 2025, and adopt science-based GHG reduction targets by 2030. In addition, by training 100% of our customer-facing staff on the advantages of setting science-based targets by 2020.
In Q3/2018, we achieved a GHG reduction of -24%.
Since 2007, our target has been to reduce our fossil carbon dioxide (CO2) emissions per saleable tonne of pulp, paper, and board by 35% from 2006 levels by the end of 2025, covering both direct and indirect emissions. In 2017, our fossil CO2 emissions per saleable tonne of board, pulp, and paper were 40% lower than the 2006 benchmark level (40% lower in 2016). The group's CO2 intensity will in the future be adversely affected by the use of coal for energy production at our Beihai Mill in China. Although coal is currently the only feasible energy source for an industrial project in Beihai, we are working to define a long-term strategy to migrate away from coal.
Carbon neutral CO2 emissions are fossil-free emissions generated during the combustion of biomass-based fuels coming from sustainably managed forests*. Stora Enso's operations primarily utilise renewable biomass-based fuels, so the share of carbon neutral CO2 emissions in our total CO2 emissions is high (80% in 2017).
In 2017, direct emissions from our operations accounted for 22% of our carbon footprint in 2017, while 11% resulted from purchased electricity and heat and 67% were generated elsewhere along the value chain.
* Recommendations on Biomass Carbon Neutrality, WBCSD 2015.
In February 2018, Stora Enso was top-ranked in greenhouse gas management. The Transition Pathway Initiative (TPI ) is an asset owner-led initiative. It evaluates and tracks the quality of companies’ management of their greenhouse gas emissions and of risks and opportunities related to the low-carbon transition. It also evaluates how companies’ future carbon performance would compare to the international targets and national pledges made as part of the Paris Agreement. TPI assessed how 19 of the largest paper producers globally are preparing for the transition to a low-carbon economy. Stora Enso was top-ranked in both management quality and carbon performance.
For the third year running a level of reasonable assurance has been provided for Stora Enso's reporting on direct and indirect fossil CO2 emissions (scopes 1 and 2). Stora Enso is one of the few companies in the world that assures its CO2 reporting for stakeholders at Reasonable Level.
The most effective ways to reduce our direct fossil CO2 emissions are to further improve our energy efficiency, and to continue to increase our use of biomass fuels. For over a decade, we have actively reduced the energy intensity of our operations – and our dependency on fossil fuels. We drive down fossil fuel use so that we get as close to zero as possible within the decade using technically and commercially feasible means.
Stora Enso evaluates risk and opportunities related to global warming through the Enterprise Risk Management (ERM) process, which forms an integral part of our management approach. We also routinely calculate the financial impacts of potential cost increases in relation to emission allowances and energy prices.
Stora Enso is a member of the We Mean Business coalition, the Prince of Wales's Corporate Leaders Group (CLG) and WBCSD's Low Carbon Technology Partnership initiative (LCTPi).
• Policy for Energy and Carbon
• Environmental guidelines
• Supplier Code of Conduct and Practical guide for suppliers
Our use of renewable materials enables us to contribute to the development of a low-carbon economy. Trees in sustainably managed forests absorb carbon dioxide from the atmosphere and together with wood-based products act as carbon sinks. Our products help our customers and society at large to reduce CO2 emissions by providing low-carbon alternatives to solutions based on fossil fuels and other non-renewable materials.
Together with the Paris Agreement, the European Union's Emissions Trading System (ETS) brings additional opportunities and challenges to the forest industry in combatting global warming.
Our commitment to respect human rights covers all our operations, including our employees, contractors, suppliers, and surrounding communities.