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.
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, we will train 100% of our customer-facing staff on the advantages of setting science-based targets by 2020.
In Q4/2019, we achieved a GHG reduction of -22%, while the reduction achieved for Q1-Q4/2019 was -25%.
At our Beihai Mill in Guangxi, China, coal is currently the only feasible energy source for an industrial project of its scale in the region, as there are inadequate sustainable supply chains for non-fossil fuels at present. We continue to investigate long-term options to gradually move away from coal to biomass and other non-fossil fuels. The power boiler at Beihai Mill is technically able to use a variety of fuel mixes. In 2019, modest amounts of wastewater sludge, forest residuals and other side streams from our production processes were used in the boiler. The medium-term objective is to replace 10 000 tonnes of coal in annual fuel use with these steps. A power supply contract with low-carbon nuclear electricity has reduced the CO2 emissions from purchased electricity by over 50 000 tonnes compared with 2018.
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 (81% in 2019).
In 2019, direct emissions from our operations accounted for 23% of our carbon footprint, while 6% resulted from purchased electricity and heat and 71% were generated elsewhere along the value chain.
* Recommendations on Biomass Carbon Neutrality, WBCSD 2015.
In February 2020, Stora Enso was top-ranked in greenhouse gas management by the Transition Pathway Initiative for the third time in a row. The Transition Pathway Initiative (TPI ), an asset owner-led initiative, evaluates and tracks the quality of companies’ management of 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. In its assessment of how 18 of the largest paper producers globally are preparing for the transition to a low-carbon economy, TPI top-ranked Stora Enso in both management quality and carbon performance.For the fifth year running, a level of reasonable assurance was provided for Stora Enso's reporting on direct and indirect fossil CO2 emissions (scopes 1 and 2) in 2019.
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 been actively reducing the energy intensity of our operations – and in many places also our dependency on fossil fuels.
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. For more information on Stora Enso’s reporting according to TCFD recommendations within the categories of governance, strategy, risk management and metrics, see Financials 2019.
• Policy for Energy and Carbon
• Environmental guidelines
• Supplier Code of Conduct and Practical guide for suppliers
The use of renewable materials enables us to contribute towards a low-carbon economy. Trees in sustainably managed forests absorb carbon dioxide (CO2) from the atmosphere and together with wood-based products act as carbon storage. 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.
Our commitment to respect human rights covers all our operations, including our employees, contractors, suppliers, and surrounding communities.