Stora Enso

The Board of Directors and the President and CEO are responsible for the management of the Company. The Board of Directors and other corporate governance structures are described below:

Governance Structure:

• Shareholders exercise their ownership rights through shareholders' meetings
• The Board of Directors is the main governing body
• The President and CEO leads the company with support from the Group Leadership Team (GLT)
• Day-to-day operational responsibility rests with GLT members supported by divisional and function teams

Board Committees:

• Financial and Audit Committee
• People and Culture Committee
• Sustainability and Ethics Committee

Supporting Functions:

• Internal Audit
• Risk management
• Internal control
• Ethics and Compliance
• External Audit

Board of Directors: The Board of Directors is responsible for managing the Company together with the President and CEO. The governance follows Finnish law and corporate governance policies that comply with the Finnish Companies Act and Finnish Securities Market Act.

Shareholders' Meetings: The AGM is held annually by the end of June in Helsinki, Finland. The AGM deals with matters including:

• Presentation and adoption of annual accounts
• Distribution of funds to shareholders
• Discharge of Board members and CEO from liability
• Election of Board Chair, Vice Chair, and members
• Election of Auditor

2024 AGM Results: The 2024 AGM was held on 20 March 2024 in Helsinki. Of all issued and outstanding shares, 66.7% were represented (69.3% in 2023) and 83.2% of all votes (85.9% in 2023).

Information Provided to Board: The Board of Directors receives comprehensive information to support decision-making on sustainability matters. This includes:

Sustainability Committee Structure: The Board has established a Sustainability and Ethics Committee as one of its three committees, alongside the Financial and Audit Committee and People and Culture Committee.

Comprehensive Reporting: The Board receives detailed information through:

• Annual sustainability statement prepared in accordance with European Sustainability Reporting Standards (ESRS)
• Regular progress reports on sustainability targets and performance
• Updates on climate change mitigation and adaptation efforts
• Biodiversity and forest management reporting
• Health and safety performance metrics
• Diversity, equity and inclusion progress updates

Strategic Integration: Sustainability matters are integrated into the Board's oversight of:

• Strategic decision-making and business model development
• Risk management and internal controls
• Capital allocation decisions
• Performance monitoring and target setting

2024 Sustainability Oversight: In 2024, the Board was informed about significant sustainability progress including:

• 53% reduction in Scope 1 and 2 CO2 emissions from 2019 baseline (exceeding the 50% target by 2030)
• 39% reduction in Scope 3 emissions from 2019 baseline
• 94% of products technically recyclable
• 99% forest certification coverage
• Partnership with IUCN on positive biodiversity impacts

Integration of sustainability-related performance in incentive schemes

Overview

Stora Enso's incentive programmes are designed to drive alignment with common objectives and to create engagement by setting clear targets that each business unit or employee can influence. They consist of both financial and non-financial metrics. For short-term incentives (STI), targets are set for one year and potential payout takes place annually. All of the Group's own employees are eligible to participate in a bonus plan.

The long-term incentive plan (LTI) is primarily targeted at individuals who have the greatest impact on the Company's long-term success and performance. The purpose of the LTI plan is to incentivise and align management with shareholder interests and the Company's long-term strategy. The targets for the LTI plan are set for a three-year period, and payouts in Stora Enso shares are based on the Company's performance against set targets.

Roles covered

Sustainability-related objectives are integrated into the STI plans of all employees, currently focusing on occupational safety measures. These objectives extend to:

• CEO¹
• CFO
• Other Group Executives
• Division and business unit management

The LTI plan encompasses around 300 key employees.

¹ In accordance with the conditions outlined in the Remuneration Policy 2022, the appointment of a new CEO allows for exemptions from the policy. The Board has decided to exercise this right in the context of nominating the new CEO to ensure full focus on profit turnaround, cash flow improvements, and enhanced competitiveness. The deviation pertains to the performance periods of incentive plans. Following the conclusion of these performance periods, which are tied to the CEO's appointment, the CEO's incentive plans will align with those of the Group Leadership Team, as periodically determined by the Board.

Board remuneration

The Board's remuneration is not directly linked to the Company's performance, but may be paid partly in Company shares, as decided by the Annual General Meeting.

Specific sustainability KPIs tied to remuneration

Short-term incentive (STI)

Since 2022, sustainability measures have been part of the Company's variable remuneration.

For STI 2024 (payable in 2025):

• Safety performance: 10% allocation

Long-term incentive (LTI)

For the LTI plan:

• Carbon emission reduction: 10%
• Improving gender balance: 10%

Exception - CEO Performance Share Plan (18 September 2023–30 September 2025):

• Carbon emission reduction only (no gender balance metric)

Performance periods

• STI: Targets set for one year, annual payout
• LTI: Targets set for a three-year period, payouts in Stora Enso shares based on performance against set targets

Decision-making and governance

The Board's People and Culture Committee is responsible for preparing for the Board's approval the Remuneration Policy and Report, management nominations, compensation and incentive plans, including equity incentive remuneration plans. The Committee also reviews and proposes the total compensation of the CEO and evaluates the CEO performance.

The Board regularly reviews and defines key performance indicators, both financial and non-financial, to measure the progress of the Company and the completion of strategic objectives. The Group's remuneration programmes are based on this set of key performance indicators.

The sustainability performance criteria align with Stora Enso's key sustainability targets and key performance indicators (KPIs), thereby contributing to the overall fulfilment of the Group's sustainability ambition.

Remuneration Policy framework

The Remuneration Policy describes Stora Enso's main principles and the decision-making process for the remuneration of the members of the Board and President and CEO. The performance metrics defined in the policy include sustainability targets as decided by the Board.

Shareholders at the Annual General Meeting have established a Shareholders' Nomination Board, which annually prepares proposals for the Annual General Meeting's approval concerning the number of members of the Board of Directors, the Chair, Vice Chair and other members of the Board, as well as the remuneration for the Chair, Vice Chair and members of the Board and its committees. The compensation of the President and CEO is decided by the Board based on the evaluation and proposal by the Board's People and Culture Committee, and the Company's Remuneration Policy.

Risk Management and Internal Controls: Stora Enso has established comprehensive risk management and internal control systems over sustainability reporting:

Risk Management Structure:

• Risk management is integrated into the governance structure with dedicated risk management functions
• Internal control systems are established to ensure reliable sustainability reporting
• The Financial and Audit Committee oversees risk management and internal controls

Sustainability Reporting Controls:

• The Company prepares its sustainability statement in accordance with the European Sustainability Reporting Standards (ESRS)
• Internal controls ensure the accuracy and completeness of sustainability data
• Regular monitoring and evaluation of sustainability performance metrics

Data Management Systems:

• Systematic collection and verification of sustainability data across operations
• Integration of sustainability metrics into regular reporting processes
• Quality assurance procedures for sustainability data and disclosures

Oversight and Assurance:

• Board-level oversight through the Sustainability and Ethics Committee
• Internal audit functions include sustainability reporting areas
• External assurance processes for key sustainability metrics
• Regular review and updating of sustainability reporting procedures

Business Model and Strategy

Our Purpose:

• Do good for people and the planet
• Replace non-renewable materials with renewable products

Our Values:

• Lead
• Do what's right

Business Model: We create better choices for society by accelerating the transition to a circular bioeconomy. Our aim is to contribute positively to nature, and ensure the most effective use of fiber-based renewable materials.

Value Chain:

Forest

Our value creation has its foundation in the forest, where wood represents the largest part of our raw material. The forest is a value accretive real asset and functions as a long-term fiber supply for our products. Sustainable forest management ensures that new generations of trees replace those that are harvested.

Suppliers

With over 20,000 contractors, sub-contractors and suppliers, we prioritise responsible raw material sourcing and foster long-term relationships with key partners.

Operations

We constantly improve resource efficiency and make use of material streams that would otherwise end up as waste. Operating in a circular economy, many of our products and materials can be reused and recycled to reduce environmental impact and maximise value.

Customers

Our investments in energy, raw material efficiency, and product development enable customers to achieve their climate and circularity goals. By partnering with customers and other stakeholders, we create sustainable, valuable products that enhance our customer relationships and market share.

Consumers

Stora Enso supports its customers in meeting the growing consumer demand for low-carbon, circular products and, when possible, replacing fossil-based products with renewable ones. Consumers world-wide use our products daily, such as milk cartons, boxes for products bought online, and wooden housing.

Growth Areas: We are positioned in the following growing segments:

• Renewable packaging – driven by high demand for circular packaging. We hold leading global market positions in consumer board segments with high barriers-to-entry.

• Sustainable building solutions – driven by a growing wooden buildings market. We are a leading global supplier of building solutions, offering alternatives to fossil-intense construction materials.

• Biomaterials innovation – our agenda targets new applications in fiber products, lignin and biochemicals, focusing on novel products that replace fossil-based materials.

Our Divisions:

Strategic Transformation: We are transforming from traditional forest products toward strategic growth areas:

• 2006: 70% traditional products (paper), 30% strategic growth areas
• 2024: 53% foundation business (pulp, traditional wood products, forest), 47% strategic growth areas
• 2030 target: 80% strategic growth areas, 20% foundation business

Stakeholder Engagement:

Stora Enso maintains active relationships with various stakeholder groups to understand their interests and views:

Customers: Our customers include packaging converters, food producers, brand owners, retailers, construction companies, wholesalers, and industrial manufacturers. We prioritize close relationships and engagements with customers, achieving high scores in customer satisfaction surveys. We help customers achieve their climate and circularity goals through sustainable product offerings.

Employees: We have 19,000 employees across multiple countries. Our 2024 global employee engagement survey had a 79% response rate with an engagement score of 7.8, slightly above the industry benchmark. We conduct regular engagement surveys to understand employee perspectives and measure progress on our People Promise.

Forest Owners and Local Communities: We work with approximately 21,000 private forest owners and maintain close relationships with local communities where we operate. We purchased wood from private forest owners and engage through community representatives and direct contact.

Indigenous Peoples: We engage with indigenous Sámi communities in Sweden through ongoing dialogue about forestry and reindeer herding. We consult with Sámi communities before commencing forestry operations and hold annual evaluation meetings. In Brazil, we work with Pataxó and Tupinambá communities near our Veracel joint venture.

Suppliers and Partners: We work with over 20,000 contractors, sub-contractors and suppliers, prioritizing responsible raw material sourcing and fostering long-term relationships with key partners.

Investors and Shareholders: We maintain regular communication with investors through financial reporting, investor meetings, and the Annual General Meeting. In 2024, 66.7% of shares were represented at the AGM.

Regulatory Bodies and NGOs: We partner with organizations such as the International Union for Conservation of Nature (IUCN) on biodiversity initiatives and work with various certification bodies for forest management standards.

Material Impacts, Risks and Opportunities:

Climate Change - Material Impact and Strategic Integration:

Opportunities:

• Growing demand for renewable materials to replace fossil-based products
• Carbon storage in wood products and forest assets
• Our products enable customers to reduce their carbon footprint
• Potential for carbon credit revenues from forest management

Risks:

• Physical risks from extreme weather events affecting forest assets and operations
• Transition risks from changing regulations and carbon pricing
• Supply chain disruptions from climate events

Strategic Response:

• Set science-based targets aligned with 1.5-degree scenario
• Achieved 53% reduction in Scope 1 & 2 emissions (exceeding 2030 target)
• Targeting 50% reduction in Scope 3 emissions by 2030
• Forest assets provide natural carbon sequestration (4.3 million tonnes CO2 annually)

Circularity and Resource Efficiency:

Opportunities:

• Growing regulatory and consumer demand for circular products
• Premium pricing for recyclable packaging solutions
• Material efficiency improvements reducing costs

Risks:

• Resource scarcity increasing raw material costs
• Regulatory requirements for circular design

Strategic Response:

• 94% of products technically recyclable
• Target: 100% recyclable products by 2030
• Integration of circularity into product development

Biodiversity:

Opportunities:

• Enhanced ecosystem services from well-managed forests
• Reputation and market access benefits from biodiversity leadership
• Regulatory compliance advantages

Risks:

• Biodiversity loss affecting forest resilience and productivity
• Increasing regulatory requirements for biodiversity protection
• Stakeholder pressure on forest management practices

Strategic Response:

• 99% forest certification coverage
• Partnership with IUCN on biodiversity framework
• Net positive biodiversity impact target

Market Dynamics:

Opportunities:

• Growing packaging market driven by e-commerce and sustainability trends
• Increasing demand for wooden construction materials
• Premium positioning in renewable materials markets

Risks:

• Market volatility in pulp and wood products
• Economic downturns affecting demand
• Competition from alternative materials

Strategic Response:

• Diversified product portfolio across growing segments
• Leading market positions with high barriers to entry
• Continuous innovation in biobased materials

Raw Material Security:

Opportunities:

• Forest ownership providing supply security (36% self-sufficiency)
• Long-term relationships with wood suppliers
• Sustainable forestry ensuring renewable supply

Risks:

• Wood cost inflation affecting margins
• Supply constraints from competing uses
• Climate change affecting forest productivity

Strategic Response:

• 2.06 million hectares of forest assets globally
• Sustainable forest management practices
• Diversified sourcing across multiple regions

Process to Identify and Assess Material Impacts, Risks and Opportunities:

Stora Enso has established a comprehensive process to identify and assess material sustainability impacts, risks and opportunities through its materiality assessment:

Materiality Assessment Process: The Company conducts regular materiality assessments to identify the most significant environmental, social and governance topics that could affect the business or where the business has significant impacts on people and the environment.

Stakeholder Engagement: The materiality assessment process incorporates input from various stakeholder groups including:

• Employees through engagement surveys and feedback
• Customers through satisfaction surveys and direct dialogue
• Investors and shareholders through regular communication
• Local communities and indigenous peoples through consultation processes
• NGOs and experts through partnerships (e.g., IUCN collaboration)
• Suppliers through supply chain engagement

Risk Management Integration: The identification of material impacts, risks and opportunities is integrated into the Company's overall risk management framework, which includes:

• Regular risk assessments across all business areas
• Scenario analysis for climate-related risks and opportunities
• Integration with strategic planning processes
• Board-level oversight through committees

Continuous Monitoring: The Company continuously monitors emerging issues and trends that could affect materiality, including:

• Regulatory developments (such as CSRD requirements)
• Market dynamics and customer needs
• Scientific research and expert insights
• Global sustainability trends and megatrends

Expert Input: The Company leverages external expertise to validate and refine its materiality assessment, including partnerships with organizations like IUCN for biodiversity impacts and scientific institutions for climate-related assessments.

Integration with Strategy: The outcomes of the materiality assessment directly inform strategic decision-making, target setting, and resource allocation across the business.

ESRS Disclosures Covered:

Based on Stora Enso's 2024 materiality assessment and sustainability reporting, the Company covers disclosures across all main ESRS topics:

ESRS 2 - General Disclosures: All general disclosure requirements are covered, including governance, strategy and business model, and materiality assessment processes.

ESRS E1 - Climate Change: Comprehensively covered given climate change is highly material to the forest-based business model. Includes:

• Transition plans and policies
• Actions and targets (science-based targets aligned with 1.5°C scenario)
• GHG emissions across all scopes
• Energy consumption and mix
• Climate-related financial effects

ESRS E2 - Pollution: Covered with focus on air, water and soil pollution from industrial operations and forest management activities.

ESRS E3 - Water and Marine Resources: Covered given water use in pulp and paper operations and impacts on aquatic ecosystems.

ESRS E4 - Biodiversity and Ecosystems: Highly material given forest ownership and operations. Comprehensive coverage including:

• Transition plans and policies
• Partnership with IUCN
• Forest certification (99% coverage)
• Impact metrics and targets

ESRS E5 - Resource Use and Circular Economy: Highly material given the circular nature of forest products. Comprehensive coverage including:

• Circular economy policies and actions
• Resource efficiency targets
• Recyclability metrics (94% of products recyclable)

ESRS S1 - Own Workforce: Comprehensively covered including:

• Employee engagement (19,000 employees)
• Diversity, equity and inclusion initiatives
• Health and safety
• Training and development

ESRS S2 - Workers in the Value Chain: Covered through supply chain management with over 20,000 suppliers and contractors.

ESRS S3 - Affected Communities: Covered through community engagement programs, including work with indigenous peoples (Sámi, Pataxó, and Tupinambá communities).

ESRS S4 - Consumers and End-Users: Covered through customer engagement and product safety considerations.

ESRS G1 - Business Conduct: Covered through governance structures, ethics and compliance programs, and business conduct policies.

The Company's Sustainability Statement provides comprehensive coverage of these requirements in accordance with the Corporate Sustainability Reporting Directive (CSRD).

Transition Plan for Climate Change Mitigation:

Stora Enso has established a comprehensive transition plan aligned with limiting global warming to 1.5°C:

Science-Based Targets: We have set ambitious science-based targets aligned with the 1.5-degree scenario:

• Scope 1 & 2 emissions: 50% reduction by 2030 from 2019 baseline (already achieved 53% reduction by 2024)
• Scope 3 emissions: 50% reduction by 2030 from 2019 baseline (achieved 39% reduction by 2024)
• Net-zero target: Net-zero emissions by 2040

Strategic Transformation: Our transition plan centers on transforming our business model toward renewable materials:

• Shifting from traditional forest products to strategic growth areas
• Focus on renewable packaging, sustainable building solutions, and biomaterials innovation
• Target: 80% of sales from strategic growth areas by 2030 (currently 47%)

Operational Improvements:

• Energy efficiency improvements across operations
• Fuel switching from fossil fuels to renewable energy
• Investment in low-carbon technologies
• Systematic working capital reduction (EUR 700 million reduction over 1.5 years)

Product Innovation:

• Development of products that replace fossil-based materials
• Hard carbon from lignin for batteries
• Bio-based binders and chemicals
• Wood foam replacing fossil-based packaging foam

Forest-Based Solutions:

• Sustainable forest management ensuring carbon sequestration
• Our forests sequester 4.3 million tonnes CO2 annually
• Forest assets valued at EUR 8.9 billion providing natural carbon storage

Investment in Renewable Capacity:

• EUR 1 billion investment in consumer board production at Oulu (low-carbon packaging)
• Focus on packaging solutions that enable customer emission reductions

Circular Economy Integration:

• 94% of products technically recyclable (target: 100% by 2030)
• Cascading use of wood ensuring maximum efficiency
• Integration of circularity into product development

Climate Change Mitigation and Adaptation Policies:

Mitigation Policies:

Stora Enso has established comprehensive policies for climate change mitigation:

• Emissions Reduction Policy: Commitment to science-based targets aligned with 1.5°C scenario
• Energy Efficiency Policy: Systematic approach to reducing energy consumption across operations
• Renewable Energy Policy: Prioritizing renewable energy sources and fuel switching away from fossil fuels
• Product Development Policy: Focus on developing products that replace fossil-based alternatives
• Forest Management Policy: Sustainable forestry practices that maximize carbon sequestration

Adaptation Policies:

• Forest Resilience Policy: Managing forests to enhance resilience to climate impacts through:

  • Biodiversity protection and enhancement
  • Species diversification in forest management
  • Adaptation of forest management practices to changing climate conditions
  • Integration of climate scenarios into forest planning

• Operational Resilience Policy: Preparing operations for physical climate risks:

  • Assessment of climate risks to production facilities
  • Supply chain diversification to manage climate-related disruptions
  • Infrastructure adaptation measures

• Water Management Policy: Efficient water use and management considering changing precipitation patterns

Implementation Framework:

• Governance: Board-level oversight through Sustainability and Ethics Committee
• Management Systems: Integration of climate policies into operational management
• Monitoring and Reporting: Regular tracking of emissions and climate performance
• Stakeholder Engagement: Collaboration with customers, suppliers, and communities on climate action

Innovation and Technology:

• Investment in clean technologies and processes
• Research and development of climate solutions
• Partnerships for technology development (e.g., Altris partnership for battery materials)
• Digitalization and AI to optimize resource efficiency

Actions and Resources for Climate Change Policies:

Emission Reduction Actions:

Operational Improvements:

• Systematic energy efficiency improvements across all operations
• Fuel switching from fossil fuels to renewable energy sources
• Implementation of new technologies to reduce direct emissions
• Optimization of production processes for lower carbon intensity

Investment Actions:

• EUR 1 billion investment at Oulu site converting paper machine to consumer board production (low-carbon packaging)
• Technology investments in clean production methods
• Infrastructure upgrades for energy efficiency
• Investment in renewable energy capacity

Product Development Actions:

• Development of hard carbon from lignin for sustainable battery materials
• Partnership with Altris for sodium-ion battery materials
• Collaboration with Södra for sustainable kraft lignin supply
• Innovation in bio-based binders and chemicals
• Development of wood foam replacing fossil-based alternatives

Forest Management Actions:

• Sustainable forest management across 2.06 million hectares globally
• Forest regeneration ensuring continued carbon sequestration
• Biodiversity enhancement programs
• Partnership with IUCN for science-based biodiversity framework

Supply Chain Actions:

• Engagement with over 20,000 suppliers on emission reductions
• Collaboration with customers to reduce Scope 3 emissions
• Sustainable sourcing practices
• Working capital optimization reducing resource intensity

Resources Allocated:

Financial Resources:

• Major capital investments in low-carbon technologies
• R&D spending on climate solutions and innovation
• Working capital reduction of EUR 700 million over 1.5 years
• Forest asset value of EUR 8.9 billion supporting carbon sequestration

Human Resources:

• Dedicated sustainability teams across divisions
• Training and capacity building on climate action
• Integration of climate considerations into all roles

2024 Performance:

• Achieved 53% reduction in Scope 1 & 2 emissions (exceeding 2030 target)
• 39% reduction in Scope 3 emissions from 2019 baseline
• Annual CO2 sequestration of 4.3 million tonnes in owned forests
• Net climate impact of -13.5 million tonnes CO2 through product substitution

Climate Change Mitigation and Adaptation Targets:

Quantitative Targets:

Science-Based Targets: All targets are science-based and aligned with limiting global warming to 1.5°C scenario, demonstrating our commitment to the most ambitious climate action.

Forest-Based Targets:

• Forest Certification: Maintain 99% certification coverage (achieved: 99%)
• Carbon Sequestration: Maintain and enhance carbon storage in forest assets
• Biodiversity: Net positive impact on biodiversity by 2030

Adaptation Targets:

• Enhance forest resilience through sustainable management practices
• Adapt operations to physical climate risks
• Strengthen supply chain resilience to climate impacts

Business Transformation Targets:

• Strategic Growth Areas: 80% of sales from renewable packaging, sustainable building solutions, and biomaterials innovation by 2030 (current: 47%)
• Market Position: Strengthen leading positions in high-growth, low-carbon segments

Performance Against Targets:

Exceeded Targets:

• ✅ Scope 1 & 2 emissions: Achieved 53% reduction vs. 50% target by 2030
• ✅ Forest certification: Maintained 99% coverage vs. 96% target

On Track:

• 🔄 Scope 3 emissions: 39% achieved toward 50% target by 2030
• 🔄 Circularity: 94% achieved toward 100% target by 2030

Target Monitoring:

• Regular tracking and reporting of progress
• Integration with business performance indicators
• Board-level oversight through Sustainability and Ethics Committee
• External verification of key metrics

Financial Integration: Climate targets are integrated into financial performance with long-term targets including:

• Sales growth >5% per annum driven by sustainable products
• Adjusted ROCE >13% through efficient climate solutions
• Dividend policy supporting sustainable growth

Energy consumption and mix

Scope and methodology

Energy figures cover all Stora Enso production units. Aligned with the Financial Statements, the figures include the Group's joint operations according to the ownership share (50%). Energy consumption in offices is included based on estimates. Local factors are taken into account at the units when calculating the energy content of the fuels used.

Stora Enso applies a conservative approach according to ESRS in the split between renewable and non-renewable sources, and only classifies energy as renewable or nuclear-based if the origin of the purchased energy is clearly defined in the contractual arrangements with its suppliers. If the origin is not known, the source is classified as fossil.

Energy production encompasses the Group's own energy production. Electricity received at cost-based principle from Pohjolan Voima Oyj - where Stora Enso is a minority shareholder with a 16.1% ownership stake - is reported as its own line and included in own electricity generation due to Mankala principle.

Energy consumption and mix 2024

Energy intensity

Stora Enso's business activities fall within high climate impact sectors: Agriculture (Sector: Forestry, code AFO) and Manufacturing (Sector: Pulp, Paper & Wood products, code MPW) or alternatively NACE 02 (Forestry and logging), NACE 16 (Manufacture of products of wood), and NACE 17 (Manufacture of pulp, paper and paperboard). Therefore, the Group's total sales as reported in the Financial Statements is used to determine energy intensity.

Energy production 2024

Gross Scopes 1, 2, 3 and Total GHG emissions

Overall performance

Stora Enso achieved a 53% reduction in Scope 1 and 2 emissions and a 39% reduction in Scope 3 emissions from the 2019 baseline year by the end of 2024. The company has set a target of -50% reduction by 2030 for both Scope 1+2 and Scope 3 emissions.

Summary metrics

Note: Historical figures are restated due to structural changes or additional data after the previous annual report.

Climate impact overview

Stora Enso's annual climate impact (2024):

Footnotes:

1. Negative value indicates a net removal from atmosphere.
2. A modelled 100-year average with IPCC tool. Calculated by the Swedish University of Agricultural Sciences (SLU) based on Stora Enso's forest and production figures: Climate effects of a forestry company – including biogenic carbon fluxes and substitution effects.
3. Substitution effect describes the amount of greenhouse gas emissions avoided from using our products and biomass energy compared to more carbon-intensive fossil products and fuels. Calculated based on Stora Enso's product portfolio.
4. Stora Enso's CO₂e emissions in 2024 including direct emissions from our operations, emissions from purchased energy, and emissions from other sources along our value chain (Scope 1, 2, and 3). Calculated based on the Greenhouse Gas Protocol guidance.
5. Annual CO₂ sequestration in Stora Enso's owned or leased productive forest lands, three-year annual average. For further details, see Sustainability Statement, ESRS E1.

Detailed GHG emissions data

The excerpts provided do not contain the full ESRS E1-8 / E1-6 disclosure table with detailed Scope 1, 2, and 3 absolute emissions in tCO₂eq by reporting year. The report references that:

• Scope 1 and 2 emissions are 53% lower than in the base year 2019
• Scope 3 emissions are 39% lower than in the base year 2019
• The company reports on Scope 1, 2, and 3 emissions calculated based on the Greenhouse Gas Protocol guidance
• Total value chain emissions for 2024 are stated as 5.8 million tonnes of CO₂

The report references the full Sustainability Statement (ESRS E1) for detailed disclosure, which is not fully extracted in the provided excerpts.

Scope breakdown approach

Scope 1 and 2: Emissions originating directly from operations and the energy consumed. These are areas where the company can implement emission reductions through investments and fuel switching.

Scope 3: Indirect emissions from activities such as purchased goods and the processing of sold products. These represent the Scope 1 and 2 emissions of other companies within the value chain.

GHG intensity

No specific GHG intensity metric (e.g., tCO₂eq per million EUR revenue) was disclosed in the extracted excerpts.

Biogenic emissions

Biogenic CO₂ emissions are reported separately. The report notes non-operational fair valuation changes of biological assets but does not provide the specific biogenic emission figure in the extracted excerpts.

Regulated emissions

The report mentions the EU Emission Trading System (ETS) as part of regulatory considerations but does not disclose specific ETS-regulated emission figures in the extracted excerpts.

Methodology notes

• Emissions are calculated based on the Greenhouse Gas Protocol guidance
• Historical figures are restated due to structural changes or additional data after the previous annual report
• The company uses Science Based Targets aligned with the 1.5-degree scenario
• Forest carbon sequestration is calculated as a three-year annual average for owned or leased productive forest lands
• Substitution effects are calculated based on avoided emissions from using wood-based products versus fossil alternatives

Anticipated financial effects from material physical and transition risks and potential climate-related opportunities

Phase-in exemption

Stora Enso applies phase-in provisions in accordance with Appendix C of ESRS 1 and does not disclose anticipated monetary impacts of environmental risks for the financial year 2024. The phase-in provisions are applied to E1-9, E2-6, E3-5, E4-6, E5-6, S1-7, S1-8 (covers only EEA countries), S-11, S1-13, and S1-14 (88 d, e).

Time horizons

Stora Enso defines short-term as up to one year, medium-term as two to ten years, and long-term as ten years or more. This definition aligns with Stora Enso's enterprise risk management process.

Physical risks

Extreme weather events and higher average temperatures increase the risk of forest fires and insect outbreaks, which could cause damage to operations, forests and tree plantations, affecting forests asset values and regional wood prices. Milder winters could also impact the harvesting and transport of wood, as well as related costs in northern regions. More frequent extreme weather events also increase the risk of disruptions in the production, logistics and supply of raw materials and energy.

With regards to forest and plantation assets, Stora Enso benefits from strategic resilience through geographical diversification within its asset portfolio. Higher heat summation and longer growing seasons lead to accelerated forest growth with a direct positive impact on the value of Stora Enso's own forest assets and an indirect impact related to market wood availability and costs.

Stora Enso maintains property and business interruption insurance programmes. In 2024, the focus was on deep dives into specific physical risk impacts and further developing transition scenarios.

Transition risks

In the medium-term, Stora Enso recognises regulatory risks related to the treatment of biogenic emissions and the challenge of meeting its Scope 3 reduction targets.

Stora Enso's businesses may be affected by political or regulatory developments in any of the countries and jurisdictions where it operates, including changes to forest, biodiversity, environmental, fiscal, tax or other regulatory regimes. Potential impacts include higher costs and capital expenditure to meet new requirements, the expropriation of assets, imposition of royalties or other taxes targeted at the industry, and requirements for local ownership or beneficiation.

Political decisions on forest resources could limit the availability of wood, increase costs and reduce investment opportunities.

Climate-related opportunities

Stora Enso is transitioning toward renewable solutions, which has led to positive impacts on climate through forest carbon sequestration, carbon stored in its wood-based products, and substitution of fossil-based materials with renewable alternatives. Stora Enso also identifies an opportunity related to its high energy self-sufficiency.

Regulatory changes can present significant opportunities by driving market growth for sustainable products and creating competitive advantage through resource efficiency and renewability.

The Group is well positioned to capitalise on the ongoing shift toward a more circular and low-carbon economy, allowing it to effectively leverage its products.

Current financial effects

The current financial effects of climate change consist of investments in new boilers and other equipment to enhance energy efficiency and reduce carbon emissions.

The current financial effects from Stora Enso's material opportunities are tied to the revenue generated by its products. For instance, Stora Enso has made a significant investment in expanding its board production capacity at its Oulu site in Finland.

The current financial effects of Stora Enso's material opportunities mostly relate to its revenue from renewable products, the valuation of forest assets, and investment in biological assets. For more details, see the Consolidated income statement, Consolidated statement of financial position, and Consolidated cash flow statement in the Financial Statements.

Strategic resilience

The resilience of Stora Enso's strategy and business model to climate change has been tested through various scenario analyses, which are explained in more detail in ESRS E1. The analyses did not identify significant risks before 2040.

At the beginning of 2024, Stora Enso conducted an assessment of its business model and strategic resilience in relation to future key sustainability risks and opportunities, with focus on climate, biodiversity and circularity. The assessment's time horizons were set to 2030 and 2050. The analysis indicates that, to future-proof the Group's business model and strategy, it is essential for operations and products to actively remove carbon from the atmosphere and contribute to mitigating biodiversity loss. As a result, Stora Enso has established a transition plan to drive new opportunities and protects its business operations.

The current effects of Stora Enso's material impacts, risks, and opportunities on its business model, value chain, strategy and decision-making focus on climate mitigation, given the scientific consensus on the urgency of taking action. Stora Enso's emission reduction plans are aligned with the 1.5-degree scenario.

Pollution-Related Policies:

Stora Enso has established comprehensive policies to prevent and minimize pollution across air, water, and soil:

Air Quality Management:

• Emission control policies for all production facilities
• Continuous monitoring of air emissions
• Investment in clean technologies to reduce particulate matter and other air pollutants
• Implementation of best available techniques (BAT) for emission control

Water Management:

• Water quality policies ensuring protection of water resources
• Wastewater treatment standards exceeding regulatory requirements
• Water efficiency programs to minimize water consumption
• Protection of aquatic ecosystems near operations

Soil Protection:

• Sustainable forest management practices preventing soil degradation
• Chemical management policies for forest operations
• Soil health monitoring in forest areas
• Restoration activities for disturbed areas

Chemical Management:

• Policies for safe handling and use of chemicals in production
• Substitution programs to replace hazardous substances
• Regular assessment of chemical risks
• Compliance with REACH and other chemical regulations

Waste Management:

• Circular economy principles to minimize waste generation
• Waste prevention and reduction policies
• Safe disposal and treatment of hazardous waste
• Material recovery and recycling programs

Implementation Framework:

• Environmental management systems at all sites
• Regular environmental monitoring and reporting
• Compliance with all applicable environmental regulations
• Integration with sustainability and climate policies
• Stakeholder engagement on environmental performance

Actions and Resources for Pollution Management:

Operational Actions:

• Implementation of best available techniques (BAT) across production facilities
• Continuous emission monitoring systems at all major sites
• Regular upgrades of pollution control equipment
• Process optimization to minimize pollutant generation

Technology Investments:

• Investment in clean production technologies
• Wastewater treatment facility upgrades
• Air emission control system improvements
• Implementation of closed-loop water systems where feasible

Chemical Management Actions:

• Substitution programs replacing hazardous chemicals with safer alternatives
• Enhanced chemical inventory and tracking systems
• Employee training on safe chemical handling
• Regular chemical risk assessments

Water Management Actions:

• Water efficiency programs reducing consumption
• Treatment system optimization for better water quality
• Monitoring of water bodies near operations
• Collaboration with local communities on water protection

Forest Management Actions:

• Sustainable forestry practices minimizing soil and water impacts
• Buffer zones around water bodies
• Selective harvesting techniques
• Restoration of sensitive areas

Resources Allocated:

• Capital investments in pollution control equipment
• Dedicated environmental management teams
• Regular environmental monitoring and testing
• Training and capacity building for environmental performance
• Collaboration with environmental experts and consultants

Compliance and Monitoring:

• Regular environmental audits and assessments
• Compliance with all applicable environmental regulations
• Third-party verification of environmental performance
• Transparent reporting of environmental metrics

Targets related to pollution (E2-3)

Stora Enso has a continuous target of zero significant non-compliance events to support and promote its environmental policies and prevent negative impacts.

Target details

Measurement approach

A non-compliance in pollution typically means crossing a specific local monthly, quarterly, or annual permit limit of air, or emission to water. The target focuses on controlling air pollutants and their specific loads, as well as emissions to water and their specific loads.

Non-compliance breakdown (2024)

• Related to pollution of air: 4 events
• Related to pollution of water: 8 events

Incidents and corrective actions

The 2024 report details 12 specific pollution-related non-compliance incidents at various facilities (including Alytus sawmill, Enocell mill, Heinola mill, Plana mill, Varkaus board mill, and Forest operations) with corrective and preventive measures for each.

Pollution of air, water and soil (E2-4)

Accounting principles

According to the European Sustainability Reporting Standard on Pollution, the consolidation of each pollutant includes only the emissions from facilities for which the applicable threshold value specified in Annex II of Regulation (EC) No 166/2006 is exceeded.

The reporting of pollutants is a combination of unit-specific direct measurement, estimates, and calculations of emissions. Aligned with Stora Enso's Financial Statements, the figures contain emissions to air and water generated by the Group's joint operations according to the ownership share (50%).

Water effluents are monitored using both online and offline measurements, such as standard methods for the forest products industry. Board, pulp, and paper production sites monitor process water discharges, and water pollutants such as suspended solids, chemical oxygen demand, total organic carbon, phosphorous, nitrogen, and absorbable organic halogen compounds. Monitoring and reporting are conducted daily, monthly, or annually depending on the sites' operations, pollutants, and environmental permits. The share of the measure obtained from direct measurement is estimated to be almost 100%.

Third party assessments are used as a basis for estimates, in particular for heavy metal related emissions when direct measuring equipment is not available. In these cases, the average of third-party measured values is applied for the full year. The data is reported by each mill to Group's environmental reporting system based on direct measurements or estimates based on third party calculations.

Non-compliance incidents related to pollution during 2024 are disclosed as part of ESRS E2-3, including short-term actions regarding corrective and preventive measures.

The pollution of soil is a material topic for Stora Enso due to the environmental provision related to remediation of an existing condition caused by past operations in Falun, Sweden. Within Stora Enso's own organisation, thresholds for pollution of soil are not exceeded, and therefore not disclosed as part of ESRS E2-4.

Emissions to air by pollutant (2024)

Emissions to water by pollutant (2024)

Emissions to soil

Not disclosed - thresholds for pollution of soil are not exceeded within Stora Enso's own organisation, except for the environmental provision related to remediation of an existing condition caused by past operations in Falun, Sweden (provision EUR 27 million at year-end).

Anticipated financial effects from pollution-related impacts, risks and opportunities

Phase-in exemption applied

Stora Enso applies phase-in provisions in accordance with Appendix C of ESRS 1 and does not disclose anticipated monetary impacts of environmental risks for the financial year 2024. The phase-in provisions are applied to E1-9, E2-6, E3-5, E4-6, E5-6, S1-7, S1-8 (covers only EEA countries), S-11, S1-13, and S1-14 (88 d, e).

Water and Marine Resources Policies:

Stora Enso has established comprehensive policies for responsible water management across its operations:

Water Efficiency and Conservation:

• Water use efficiency policies to minimize consumption across all operations
• Implementation of closed-loop water systems where technically feasible
• Regular assessment of water use efficiency and improvement opportunities
• Integration of water considerations into operational planning

Water Quality Management:

• Stringent water quality standards for all discharges
• Wastewater treatment policies exceeding regulatory requirements
• Regular monitoring of water quality impacts
• Protection of water bodies and aquatic ecosystems

Forest Water Management:

• Sustainable forest management practices protecting watersheds
• Buffer zones around water bodies in forest operations
• Soil and water conservation in forestry activities
• Restoration of riparian areas and wetlands

Supply Chain Water Management:

• Engagement with suppliers on responsible water use
• Assessment of water risks in key supply regions
• Support for water stewardship initiatives

Risk Management:

• Water risk assessment and management procedures
• Climate change adaptation considering changing precipitation patterns
• Drought and flood preparedness planning
• Stakeholder engagement on water-related issues

Compliance and Governance:

• Compliance with all water-related regulations and permits
• Regular auditing of water management practices
• Integration with environmental management systems
• Board oversight of water-related risks and opportunities

Actions and Resources for Water and Marine Resources:

Water Efficiency Actions:

• Implementation of water-saving technologies in pulp and paper operations
• Process optimization to reduce water consumption per unit of production
• Closed-loop water systems installation where feasible
• Regular water audits and efficiency assessments

Water Treatment Actions:

• Upgrading wastewater treatment facilities to improve discharge quality
• Implementation of advanced treatment technologies
• Regular monitoring and testing of water discharges
• Maintenance and optimization of treatment systems

Forest Water Protection Actions:

• Establishment of buffer zones around water bodies during harvesting
• Selective harvesting techniques to minimize soil erosion and water impact
• Restoration of riparian vegetation and wetlands
• Soil protection measures during forestry operations

Technology Investments:

• Capital investments in water-efficient production equipment
• Advanced monitoring systems for water quality and quantity
• Treatment system upgrades and expansions
• Research and development in water-efficient processes

Stakeholder Engagement:

• Collaboration with local communities on water protection
• Partnership with environmental organizations on watershed management
• Engagement with regulatory authorities on water compliance
• Supplier collaboration on water stewardship

Resources Allocated:

• Dedicated water management teams at production sites
• Investment in water infrastructure and treatment systems
• Regular monitoring and laboratory testing of water parameters
• Training programs for employees on water management
• Integration of water considerations into capital investment decisions

Targets related to water and marine resources (E3-3)

To reduce its actual negative impacts related to water use, Stora Enso has established a target on reducing specific process water discharges per saleable tonne (m³/tonne) by 17% by 2030 from the 2019 baseline (36 m³).

On water withdrawal, Stora Enso has a continuous target on decreasing the trend for total water withdrawal per saleable tonne (m³/tonne) from the 2016 baseline (60 m³). The targets were not achieved for 2024. Water performance per saleable tonne, measured over rolling four quarters, has been impacted by lower production volumes as a steady water flow needs to be maintained at the water treatment plants.

The targets are in line with the Environmental Guidelines, defining the founding principles for water management. Setting a target on water is not mandated by legislation. External stakeholders were not involved in the target setting. The target is not based on conclusive scientific evidence.

Target details

Accounting principles

The targets have been established for operations with most significant impact on water use, and include process water and cooling and non-contact water intake. Process water discharges include the discharges by selected board, pulp, and paper production sites as cubic metres (m³). The target for total water withdrawal contains all board, pulp, and paper production sites. The water withdrawal and discharges are normalised by dividing water m³ with the total production of board, pulp, and paper as saleable tonnes (t) during the same period.

Water consumption

Water consumption metrics (2024)

Water withdrawal by source

Board, pulp, and paper production sites account for over 99% of the Group's total water withdrawal. These units predominantly draw process and cooling water from surface water sources:

• Surface water: 98% of total water withdrawal in 2024
• Municipal or groundwater supplies: approximately 2%

Water consumption in areas of water stress

According to the WRI Aqueduct Water Risk Atlas tool, five of the Group's production units operate in regions with High Baseline Water Stress:

1. Beihai, China
2. Langerbrugge, Belgium
3. Wujin corrugated unit, China
4. Qianan corrugated unit, China
5. Łódź, Poland

During 2024, these units:

• Withdrew 15.7 million m³ of water (4% of Group's total water withdrawal)
• Discharged 12.7 million m³ of process water (6% of Group's total process water discharges)

Accounting principles

Aligned with the Financial Statements, water related metrics include the Group's joint operations according to the ownership share (50%).

Total water consumption includes:

• Estimated water in products, residuals, and waste
• Volumes of evaporated water to air from process water cooling towers
• Evaporation from wastewater treatment plants
• Evaporation from cooling towers for non-contact water at mills
• Sawmills, corrugated production units, and offices (based on estimates)

The calculation builds on the Confederation of European Paper Industries' (CEPI) method and the Swedish Environmental Research Institute's (IVL) report on Water Profile for the Swedish forest industry. Approximately 25% of total volume of water consumption is obtained through direct measurement.

Total water withdrawal and discharges: In 2022, the Group implemented a standardised procedure to report water at board, pulp, and paper units, where cooling and process water flows are measured in different positions. Due to this, calculated figures do not always correspond to measured figures. The share obtained from direct measurement is estimated to be approximately 58%.

Water recycled and reused is reported based on amounts of reused cooling and non-contact water.

Water intensity ratio is calculated as the Group's total water consumption in m³ per million EUR of the Group's total sales as reported in the Financial Statements.

Stora Enso does not store water within its production sites. Almost 95% of water is recycled back into the environment, while only around 5% of water is consumed in production processes.

Anticipated financial effects from material water and marine resources-related impacts, risks and opportunities

Phase-in exemption applied

Stora Enso applies phase-in provisions in accordance with Appendix C of ESRS 1 and does not disclose anticipated monetary impacts of environmental risks for the financial year 2024. The phase-in provisions are applied to E1-9, E2-6, E3-5, E4-6, E5-6, S1-7, S1-8 (covers only EEA countries), S-11, S1-13, and S1-14 (88 d, e).

Transition Plan on Biodiversity and Ecosystems:

Stora Enso has developed a comprehensive transition plan for achieving net positive impact on biodiversity:

Partnership with IUCN: Stora Enso has developed a science-based framework using technology and data to forecast and enhance biodiversity impacts. The company's partnership with the International Union for Conservation of Nature (IUCN) offers expert insights to further refine and validate this framework.

Net Positive Biodiversity Target: Our biodiversity initiatives aim for a net positive impact, with action programmes in place until 2030 to enhance biodiversity at the species, habitat, and landscape levels.

Forest Management Approach:

• Sustainable forest management across 2.06 million hectares globally
• 99% forest certification coverage of land we own or manage
• Implementation of biodiversity-friendly forestry practices
• Restoration activities in sensitive areas

Technology and Innovation:

• Use of digitalisation, remote sensing technology, and artificial intelligence to enhance forest operations while aiding biodiversity protection and restoration
• Precise data collection to monitor forest volume, yield, variety, and detect diseases early
• Monitoring of tree species composition and deadwood creation with high granularity
• Identification of key areas for biodiversity enhancement

Ecosystem Services Enhancement:

• Focus on maintaining and enhancing ecosystem services from forest lands
• Protection of water resources and watersheds
• Soil conservation and improvement
• Habitat connectivity and corridor creation

Landscape-Level Planning:

• Integration of biodiversity considerations into forest management planning
• Collaboration with neighboring landowners on landscape-level conservation
• Ecosystem restoration projects
• Protection of high conservation value areas

Monitoring and Adaptive Management:

• Regular biodiversity monitoring and assessment
• Adaptive management based on scientific evidence
• Integration of climate change considerations
• Stakeholder engagement in biodiversity planning

Biodiversity and Ecosystems Policies:

Stora Enso has established comprehensive policies for biodiversity conservation and ecosystem protection:

Sustainable Forest Management Policy:

• Commitment to sustainable forestry practices that maintain and enhance biodiversity
• Implementation of ecosystem-based forest management approaches
• Protection of high conservation value areas within forest lands
• Restoration of degraded forest areas and habitats

Forest Certification Policy:

• Commitment to maintaining 99% forest certification coverage of land owned or managed
• Compliance with leading certification standards (FSC, PEFC)
• Regular third-party auditing of forest management practices
• Continuous improvement in certification standards

Species Conservation Policy:

• Protection of endangered and threatened species within forest areas
• Habitat management for key species groups
• Species-specific conservation measures
• Monitoring of species populations and trends

Ecosystem Services Policy:

• Recognition and management of ecosystem services provided by forests
• Integration of ecosystem service values into forest management decisions
• Protection of water resources and watersheds
• Carbon storage and climate regulation services

Biodiversity Research and Innovation Policy:

• Investment in biodiversity research and monitoring
• Collaboration with scientific institutions and conservation organizations
• Use of technology for biodiversity assessment and monitoring
• Integration of latest scientific knowledge into management practices

Stakeholder Engagement Policy:

• Engagement with indigenous peoples on traditional ecological knowledge
• Collaboration with local communities on biodiversity conservation
• Partnership with NGOs and conservation organizations
• Transparent reporting on biodiversity performance

No Net Loss/Net Positive Policy:

• Commitment to avoiding negative impacts on biodiversity
• Implementation of mitigation hierarchy (avoid, minimize, restore, offset)
• Target of achieving net positive impact on biodiversity by 2030

Actions and Resources for Biodiversity and Ecosystems:

Science-Based Framework Development:

• Development of science-based framework using technology and data to forecast and enhance biodiversity impacts
• Partnership with IUCN to provide expert insights and validate biodiversity framework
• Integration of latest scientific research into biodiversity management

Forest Management Actions:

• Implementation of sustainable forest management across 2.06 million hectares globally
• Maintenance of 99% forest certification coverage through FSC and PEFC standards
• Species-specific habitat management and conservation measures
• Restoration of degraded forest areas and sensitive habitats

Technology and Digital Innovation:

• Use of digitalisation, remote sensing technology, and artificial intelligence to enhance forest operations while protecting biodiversity
• Precise monitoring of forest volume, yield, variety, and early disease detection
• High-granularity monitoring of tree species composition and deadwood creation
• Identification of key areas for biodiversity through advanced data analysis

Restoration and Enhancement:

• Active restoration programs in sensitive areas
• Creation of habitat corridors and connectivity
• Wetland restoration projects
• Buffer zone establishment around water bodies and sensitive areas

Collaboration and Partnerships:

• Partnership with International Union for Conservation of Nature (IUCN) for expert guidance
• Collaboration with scientific institutions on biodiversity research
• Engagement with local communities and indigenous peoples
• Partnerships with conservation organizations

Monitoring and Assessment:

• Regular biodiversity monitoring and impact assessment
• Species population tracking and trend analysis
• Habitat quality assessments
• Ecosystem health monitoring

Resources Allocated:

• Dedicated biodiversity specialists and teams
• Investment in monitoring equipment and technology
• Funding for restoration and conservation projects
• Research and development investments in biodiversity solutions
• Training and capacity building for forest managers

Target Implementation: Action programmes are in place until 2030 to enhance biodiversity at the species, habitat, and landscape levels to achieve the net positive impact target.

Biodiversity and Ecosystem Targets:

Primary Biodiversity Target:

• Net Positive Impact on Biodiversity by 2030
  • Target: Achieve measurable net positive contribution to biodiversity across all operations
  • Scope: Species, habitat, and landscape levels
  • Implementation: Action programmes in place until 2030

Forest Certification Target:

• Forest Certification Coverage: 96% target (Achieved: 99%)
  • Current performance: 99% of land we own or manage covered by forest certification schemes
  • Status: ✅ Exceeded target
  • Standards: FSC (Forest Stewardship Council) and PEFC (Programme for the Endorsement of Forest Certification)

Ecosystem Enhancement Targets:

• Species Conservation: Maintain and enhance populations of key species within forest areas
• Habitat Quality: Improve habitat quality and connectivity across forest landscapes
• Ecosystem Services: Maintain and enhance ecosystem services including carbon storage, water regulation, and soil protection

Implementation Framework:

Science-Based Approach:

• Partnership with IUCN (International Union for Conservation of Nature) to validate and refine biodiversity framework
• Use of technology and data to forecast and enhance biodiversity impacts
• Integration of latest scientific research into target setting and monitoring

Monitoring and Measurement:

• High-granularity monitoring of tree species composition and deadwood creation
• Identification of key areas for biodiversity enhancement
• Regular assessment of biodiversity impacts and progress
• Use of digital technology, remote sensing, and AI for precise monitoring

Landscape-Level Targets:

• Enhancement of biodiversity at landscape scale through sustainable forest management
• Creation of habitat corridors and connectivity
• Integration with broader ecosystem conservation initiatives

Target Integration: Biodiversity targets are integrated with:

• Climate change mitigation (forest carbon sequestration: 4.3 million tonnes CO2 annually)
• Sustainable forest management across 2.06 million hectares
• Forest certification maintenance and improvement
• Stakeholder engagement with indigenous peoples and local communities

Impact metrics related to biodiversity and ecosystems change

Biodiversity impact indicators

Biodiversity indicators measure the compliance ratios of inspected harvesting sites against Stora Enso's specific biodiversity indicators for Sweden, Finland, and the Baltics. The consolidated ratios across the three regions are weighted averages using the harvested volumes in each region as a weight.

Forest certification coverage

Forest-related metrics

Annual forest growth and harvesting and total standing stock

Land area by location and certification

Owned lands:

Tornator (41%-owned associated company):

Leased lands:

Total forest land owned and leased: 2.1 million hectares globally

Non-compliance events

Details of significant incidents in 2024:

• Finland (Hukkajoki): River crossing without correct water protective measures caused significant damage to local population of freshwater pearl mussels. Immediate restoration initiated; costs approximately EUR 150,000.
• Finland: 5 additional incidents including creek crossing without water protection, harvesting near water spring, wood storage on protected flower site, logging of 0.06 ha conservation area, and harvesting without forest use declaration.
• Sweden: 5 incidents including road pipe connection in Natura2000 area, harvesting near orchid findings, groundwork for quarry outside permitted time period, quarry enlarged 24 m² outside permitted area, and 2 cases of harvesting without notification (1.7 ha and 1.3 ha).

Species impact - Red List species

In 2024, one incident caused significant local negative impact to an endangered species (freshwater pearl mussels) and its habitat near a harvesting site in Finland (Hukkajoki). Other incidents involved impacts on protected orchid (Goodyera repens) and hybrid pasque flower habitats in Sweden.

Restoration metrics

Approximately 20 hectares of wetland was restored in Sweden during 2024. Restoration activities in Hukkajoki, Finland supported by approximately EUR 150,000.

Methodology notes

• Biodiversity indicators: Compliance ratios weighted by harvested volumes across Sweden, Finland, and Baltics
• Forest certification: Based on proportion of land in wood production and harvesting owned or leased by Stora Enso covered by certification schemes
• Reporting aligned with FSC and PEFC standards
• Joint operations (Veracel, Montes del Plata) consolidated at 50% ownership share; Tornator at 41%
• Million m³ fo = million forest cubic meters
• Standing stock estimates disclosed in Financial Statements note 4.2

Anticipated financial effects from biodiversity and ecosystem-related impacts, risks and opportunities

Phase-in exemption applied

Stora Enso applies phase-in provisions in accordance with Appendix C of ESRS 1 and does not disclose anticipated monetary impacts of environmental risks for the financial year 2024. The phase-in provisions are applied to E1-9, E2-6, E3-5, E4-6, E5-6, S1-7, S1-8 (covers only EEA countries), S-11, S1-13, and S1-14 (88 d, e).

Context: Forest assets and biodiversity resources

Forests are a locally available strategic resource. At the end of 2024, Stora Enso's forest assets, including leased land, were valued at EUR 8.9 billion, spanning 2.1 million hectares globally. Stora Enso meets 36% of its wood raw material needs from its own sources and long-term agreements. The Group's forests assets contribute to carbon sequestration, biodiversity conservation, and the mitigation of financial risks related to wood dependency and availability.

In addition to owning forests, Stora Enso's current resources (and those anticipated for the future) to manage biodiversity and forest management include operative costs related to personnel in the biodiversity programmes and forest management, operating tree nurseries, forest certification fees, and the development of precision forestry.

During the year, Stora Enso supported restoration activities related to an environmental incident in Hukkajoki, Finland, by approximately 150,000 euros. The incident is being investigated as a serious nature conservation matter.

Resource Use and Circular Economy Policies:

Stora Enso has established comprehensive policies to promote circular economy principles and efficient resource use:

Circular Economy Framework:

• Commitment to circular economy principles to reduce, reuse, and recycle materials in both production and consumption
• Integration of circularity into product development processes
• Collaboration with customers and partners to promote product recycling
• Target: 100% recyclable products by 2030 (currently 94%)

Cascading Use of Wood:

• Policy supporting cascading use of wood, ensuring all parts of harvested trees, forestry residuals, and industrial side streams are used efficiently
• Biological assets (standing trees) serve as raw materials for pulp and mechanical wood production
• Wood residues are used as biofuels, mainly in our own operations
• Maximizing value from each tree through multiple applications

Resource Efficiency Policy:

• Continuous improvement in resource efficiency across all operations
• Material flow optimization to minimize waste generation
• Energy efficiency measures integrated with resource management
• Water efficiency and recycling programs

Waste Reduction and Management:

• Waste prevention as the primary strategy
• Material recovery and recycling programs
• Use of material streams that would otherwise end up as waste
• Circular material flows within and between operations

Product Design for Circularity:

• Design products for recyclability and reusability
• Development of renewable alternatives to fossil-based materials
• Integration of life cycle thinking into product development
• Collaboration with customers on end-of-life product management

Supply Chain Circularity:

• Engagement with suppliers on circular economy practices
• Sourcing of recycled materials where appropriate
• Support for supplier circular economy initiatives
• Integration of circularity criteria into supplier selection

Actions and Resources for Resource Use and Circular Economy:

Circularity Implementation Actions:

• Integration of circularity principles into product development across all divisions
• Collaboration with customers and partners to promote product recycling and circular solutions
• Development of recyclable alternatives to traditional materials
• Achievement: 94% of products are technically recyclable (target: 100% by 2030)

Resource Optimization Actions:

• Cascading use of wood ensuring all parts of harvested trees are utilized efficiently:
  • Standing trees → raw materials for pulp and mechanical wood production
  • Wood residues → biofuels for own operations
  • Industrial side streams → various applications
• Material flow optimization to minimize waste generation
• Working capital reduction of EUR 700 million over 1.5 years, reducing resource intensity

Innovation and Development:

• Development of innovative bio-based solutions replacing fossil-based materials:
  • Hard carbon from lignin for battery applications
  • Wood foams replacing fossil-based packaging foam
  • Bio-based binders for construction applications
  • Biochemicals from forest biomass

Operational Efficiency:

• Continuous improvement in resource efficiency across operations
• Use of material streams that would otherwise end up as waste
• Closed-loop systems where technically feasible
• Energy recovery from biomass residues

Partnership and Collaboration:

• Partnership with Altris for incorporating renewable lignin in sodium-ion batteries
• Collaboration with Södra for sustainable kraft lignin supply
• Customer collaboration on circular packaging solutions
• Supply chain engagement on resource efficiency

Investment in Circular Solutions:

• EUR 1 billion investment at Oulu site for consumer board production (circular packaging)
• Technology investments in resource-efficient processes
• R&D investments in circular economy innovations

Resources Allocated:

• Dedicated teams for circular economy development
• Capital investments in circular production technologies
• Research and development funding for bio-based materials
• Collaboration with external partners and research institutions

Performance Monitoring:

• Regular tracking of recyclability metrics
• Material flow analysis and optimization
• Waste reduction monitoring
• Resource efficiency indicators across operations

Resource Use and Circular Economy Targets:

Primary Circularity Target:

• 100% Recyclable Products by 2030
  • Current Performance: 94% of products are technically recyclable
  • Status: 🔄 On track (6 percentage points to achieve)
  • Scope: All products across divisions to be designed for recyclability

Resource Efficiency Targets:

• Cascading Use Optimization: Maximize value extraction from each tree through efficient use of all components
  • Standing trees → pulp and mechanical wood production
  • Wood residues → biofuels and energy
  • Industrial side streams → various applications

Waste Reduction Targets:

• Zero Waste to Landfill: Progressive reduction of waste sent to landfill
• Material Recovery Maximization: Increase recovery and reuse of materials from production processes
• By-Product Valorization: Convert all significant by-products into valuable applications

Working Capital Efficiency:

• Operating Working Capital Reduction: Achieved EUR 700 million reduction over 1.5 years
• Resource Intensity Reduction: Reduce resource consumption per unit of production

Innovation Targets:

• Bio-Based Material Development: Expand portfolio of bio-based alternatives to fossil materials
• Circular Product Innovation: Develop new products designed for circular economy principles
• Technology Integration: Implement technologies that enable circular material flows

Supply Chain Circularity:

• Supplier Engagement: Increase collaboration with suppliers on circular practices
• Recycled Content: Increase use of recycled materials where appropriate
• Supplier Circular Performance: Integration of circularity metrics into supplier assessment

Performance Integration: Circular economy targets are integrated with:

• Climate Targets: Circular solutions contribute to emission reductions
• Business Strategy: 80% of sales from strategic growth areas by 2030 (includes circular packaging)
• Financial Performance: Resource efficiency supporting profitability improvements

Monitoring and Reporting:

• Regular tracking of recyclability percentages across product portfolio
• Material flow analysis and circular indicator development
• Integration with sustainability reporting and ESRS disclosure requirements
• Stakeholder engagement on circular economy progress

Resource outflows

Circularity and Recyclability

Stora Enso is committed to circularity, with 94% of its products being technically recyclable by the end of 2024. This represents progress towards the company's target of 100% recyclable products by 2030.

Key circularity targets:

• Target: 100% recyclable products by 2030
• 2024 Performance: 94% of products were technically recyclable
• 2023 Performance: 93% recyclable
• 2022 Performance: 94% recyclable

The company's commitment to circularity involves reducing, reusing, and recycling materials in both production and consumption. Stora Enso integrates circularity into its product development and collaborates with customers and partners to promote product recycling.

Product Design and Materials

Stora Enso's product portfolio is focused on renewable, fiber-based materials:

• Packaging materials: Liquid packaging board, foodservice board, fresh cartonboard, containerboard (made from virgin and recycled fiber), book paper, newsprint, magazine paper
• Packaging solutions: Boxes and trays for packaging, packaging design and automation, converting of carton and corrugated board
• Biomaterials: Pulp, hard carbon battery material, lignin, biobased binders, wood foams, biobased chemicals, formed fiber, tall oil and turpentine
• Wood products: Material for mass timber construction (CLT, LVL), building concepts, window and door components, sawn and planed wood, pellets, sawdust

The majority of products are designed for reuse, recycling, or energy recovery at the end of their lifecycle. Products are based on wood fiber, which is renewable and often recyclable.

Specific Product Examples

• Folded boxes for dry food: Food safe, renewable materials to replace plastic
• Ready-meal trays and cups: Lightweight and 100% food safe in virgin fiber
• Paper cups: Cupstock designed for hot and cold beverage cups with sealable barriers
• Transport boxes for fruit: High quality and food safe white top kraftliner packaging board made from fresh fibers
• Corrugated board: Cost and weight-efficient packaging that is easy to assemble, handle, and recycle
• Fresh food trays: Easy-peeling packaging board consisting of 90% wood fiber, keeping plastic usage to a minimum
• Carton packaging for liquid food: Wood fiber-based packaging materials suitable for recycling
• E-commerce packaging: Recyclable solutions for e-commerce packaging

Approach to Circularity

Stora Enso operates in a circular economy, where many products and materials can be reused and recycled to reduce environmental impact and maximise value. The company focuses on:

• Developing recycled fiber into new products
• Dedicating efforts and investments towards reducing emissions, water usage, and energy consumption
• Utilising harvested trees, forestry residuals, and industrial side streams in the most efficient way
• Striving to maximise both environmental and financial value by efficiently utilising side streams generated during production processes

Anticipated financial effects from resource use and circular economy-related impacts, risks and opportunities

Phase-in exemption

Stora Enso applies phase-in provisions in accordance with Appendix C of ESRS 1 and does not disclose anticipated monetary impacts of environmental risks for the financial year 2024. The phase-in provisions are applied to E1-9, E2-6, E3-5, E4-6, E5-6, S1-7, S1-8 (covers only EEA countries), S-11, S1-13, and S1-14 (88 d, e).

Waste

Stora Enso manages waste through a systematic approach focused on resource efficiency and circularity. The company utilises harvested trees, forestry residuals, and industrial side streams in the most efficient way, with operations in a circular economy where materials can be reused and recycled to reduce environmental impact.

Waste Management Approach

The company's circularity commitment involves:

• Reducing, reusing, and recycling materials in both production and consumption
• Integrating circularity into product development
• Collaborating with customers and partners to promote product recycling
• Developing recycled fiber into new products
• Efficiently utilising side streams generated during production processes

Resource Efficiency

Stora Enso constantly improves resource efficiency and makes use of material streams that would otherwise end up as waste. Operating in a circular economy, many of the company's products and materials can be reused and recycled to reduce environmental impact and maximise value.

Specific quantitative waste data (total waste generated, hazardous vs non-hazardous split, waste diverted from disposal, waste directed to disposal) is not disclosed in the available excerpts.

Own Workforce Policies:

Stora Enso has established comprehensive policies governing its relationship with employees:

People Promise and Expectations Framework: In 2024, Stora Enso developed a People Promise and Expectations framework closely aligned with its strategy, built on four cornerstones:

1. Provide a Safe, Diverse, and Inclusive Environment:

• Zero-tolerance policy for discrimination, harassment, or bullying
• Commitment to diversity, equity, and inclusion (DE&I) in the workplace
• Value diversity of thought and encourage employees to share their views
• Active participation in continuous safety improvement across all operations
• Mental health awareness and physical safety promotion

2. Drive Customer Value, Performance, and Innovation:

• Customer value prioritization to guide direction and actions
• High performance and innovation promotion across the organization
• Diversity and collaboration support
• Manager skills enhancement and capability building
• Expert partnership development through training programs

3. Grow to Your Full Potential:

• Encouragement for all employees to drive their growth
• Setting high ambitions and embracing development opportunities
• Knowledge, skills, and network enhancement
• Strategic workforce planning ensuring necessary capabilities
• Recruitment and talent initiatives addressing workforce gaps

4. Performance Culture Framework: Positive performance culture based on the 4As:

• Ambition: Setting high standards and challenging goals
• Agility: Quick adaptation and responsiveness
• Analytical Approach: Data-driven decision making
• Accountability: Clear ownership and responsibility

Health and Safety Policy:

• Commitment to providing a safe working environment
• Continuous safety improvement as standard practice
• Mental health and wellbeing support
• Active employee participation in safety programs

Diversity and Inclusion Policy:

• Recognition that diversity includes gender, age, ethnicity, national origin, and other identity aspects
• Commitment to creating an inclusive environment where individual differences are respected
• Equal opportunity and fair treatment for all employees
• Support for employee resource groups (ERGs) such as Rainbow Alliance for LGBTQI+ employees

Processes for Engaging with Own Workforce:

Employee Engagement Surveys: Stora Enso conducts comprehensive employee engagement assessments:

• Global Survey 2024: Response rate of 79% with engagement score of 7.8 (above industry benchmark)
• Regular divisional surveys to support decentralized operating model development
• Continuous adjustment and refinement based on employee feedback
• Inclusion Index: New metric introduced in 2024 scoring 8.4 (average rank in manufacturing sector)

Ongoing Dialogue Mechanisms:

• Regular communication through various channels during organizational changes
• Manager and employee support during transformation processes
• Integration of feedback culture into performance management
• Continuous improvement forums for faster problem-solving

Works Council and Union Engagement:

• Careful adherence to national, union, and Works Council guidance
• Consultation processes for organizational changes
• Compliance with local labor relations requirements
• Transparent communication during restructuring activities

Decentralized Engagement Model: In 2024, Stora Enso progressed in identifying optimal practices within its decentralized operating model:

• Empowerment of divisions for closer employee engagement
• Leaner Group functions enabling more direct communication
• Customer-centricity through improved employee engagement

Division-Specific Engagement: Each division has tailored engagement approaches:

• Packaging Materials: Psychological safety workshops
• Packaging Solutions: Gender diversity in recruitment initiatives
• Wood Products: Purpose reports with development initiatives at divisional and unit levels
• Forest: Young Advisory Board for junior talents and "Experienced and Still Sparkling" program

Employee Resource Groups (ERGs):

• Rainbow Alliance ERG: Supporting LGBTQI+ employees and allies
• Foster awareness and sense of belonging
• Platform for employee networking and support

Communication Campaigns:

• Regular awareness campaigns on diversity and inclusion
• Events coinciding with International Women's Day, Pride Month, and Mental Health Day
• Webinars and discussion forums on various topics

Performance and Development Dialogue:

• Integration of performance management processes across organization
• Active feedback culture promotion
• Connection of employee development with business objectives

Processes to Remediate Negative Impacts and Channels for Own Workforce:

Grievance and Complaint Mechanisms: Stora Enso provides multiple channels for employees to raise concerns and report issues:

Zero-Tolerance Policies:

• Zero-tolerance policy for discrimination, harassment, or bullying
• Clear procedures for reporting violations
• Protection for employees who report concerns in good faith
• Swift investigation and resolution of complaints

Ethics and Compliance Framework:

• Dedicated Ethics and Compliance function as part of governance structure
• Clear reporting channels for ethical concerns
• Regular training on ethical conduct and reporting procedures
• Integration with internal control systems

Management Support Systems:

• Continuous support and communication through various channels during organizational changes
• Manager training on handling employee concerns
• Open communication policies encouraging dialogue
• Regular check-ins and feedback sessions

Safety Reporting Systems:

• Channels for reporting safety concerns and near-misses
• Active participation encouragement in continuous safety improvement
• Investigation and follow-up on safety incidents
• Preventive measures based on reported concerns

Diversity and Inclusion Support:

• Employee Resource Groups (ERGs) providing peer support
• Rainbow Alliance ERG specifically supporting LGBTQI+ employees and allies
• Awareness campaigns and education on inclusive behavior
• Regular monitoring through inclusion metrics and surveys

Organizational Change Support:

• Careful adherence to national, union, and Works Council guidance during changes
• Transparent communication about organizational decisions
• Employee support during transitions and restructuring
• Consultation processes before implementing major changes

Performance and Development Support:

• Regular performance feedback and development discussions
• Career development opportunities and training programs
• Skills development initiatives addressing individual needs
• Strategic workforce planning ensuring employee growth opportunities

Union and Works Council Channels:

• Formal channels through union representatives
• Works Council participation in addressing employee concerns
• Collective bargaining processes for workplace issues
• Compliance with local labor relations requirements

Taking Action on Material Impacts on Own Workforce:

Organizational Transformation Actions:

Profit Improvement Programme (2024):

• Implemented systematic approach to enhance competitiveness while supporting employees
• Reduction of approximately 1,000 employees but no closures of production sites
• Reductions proportional to division sizes addressing market conditions
• Careful adherence to national, union, and Works Council guidance
• Continuous support and communication through various channels

Decentralized Operating Model:

• Progress in identifying optimal practices within decentralized model
• Empowerment of divisions to create more customer-centric approach
• Leaner Group functions while maintaining employee support
• Enhanced local decision-making capabilities

Performance Culture Development:

4As Framework Implementation:

• Ambition: Raising performance standards and challenging teams
• Agility: Developing quick response capabilities
• Analytical Approach: Data-driven decision making
• Accountability: Clear ownership and responsibility structures
• Building high-performing teams and transparent company culture

Employee Development Actions:

Skills and Capability Building:

• Manager skills enhancement through training programmes, workshops, webinars, and conferences
• Sales Academy for sales teams and other functions to drive market performance
• Strategic workforce planning ensuring necessary capabilities
• Career development opportunities addressing individual growth

Diversity, Equity and Inclusion Initiatives:

• Stora Enso ranked top leader in Financial Times Diversity Leaders index
• 24% women among all managers
• 80 different citizenships represented among employees
• Division-specific DE&I actions:
  • "Female Leader Engineer Talent Programme Cooperation"
  • "Female Power Talks" programme in Austria
  • Young Advisory Board for junior talents in Forest division
  • "Experienced and Still Sparkling" programme for experienced employees

Health and Safety Actions:

• Active promotion of continuous safety improvement across operations
• Mental health awareness programs through webinars and discussion forums
• Physical safety measures and training
• Integration of safety into daily operations

Engagement and Communication:

• Employee engagement score 7.8 (above industry benchmark)
• 79% response rate in global engagement survey
• Inclusion Index score 8.4 (average in manufacturing sector)
• Regular communication campaigns on diversity and inclusion
• Employee Resource Groups fostering belonging and support

Effectiveness Measurement:

• Regular engagement surveys measuring progress
• Performance tracking against diversity metrics
• Safety performance monitoring
• Feedback mechanisms for continuous improvement
• Integration with business performance indicators

Targets related to own workforce

Diversity

Stora Enso has established a target related to the ESRS S1 sub-topic 'Equal treatment and opportunities for all', aimed at advancing actual positive impacts of diversity within its own workforce. The target is in line with the Diversity Policy.

Target: 25% representation of female managers among all managers

Target year: 2024

Baseline year: 2022

Baseline value: 23%

Scope: All managers (permanent managers with at least one direct report). Target excludes joint operations. Most of the data comes directly from the HR management system, with the exception of Business Unit Western Europe and few small units representing 7% of the data.

Type: Absolute target

Validation: Internal target. The People and Culture organisation, representing own employees, was closely involved in target setting.

Progress (2024): 24% - below the 2024 target

Accountability: Incorporated into the variable remuneration scheme. The People and Culture organisation is responsible for tracking performance against the target and identifying improvement areas.

Occupational health and safety

Stora Enso has set a target related to the ESRS S1 sub-topic 'Health and safety', on the management of risks and actual negative impacts related to safety incidents within its own workforce. The target is in line with the Group's Occupational Health and Safety Policy.

Target metric: Total Recordable Incident (TRI) rate

Target year: 2024

Baseline year: 2013

Baseline value: 14.0

Scope: Own workforce

Progress (2024): 5.2 - above the target level for 2024

Note: The specific target value for 2024 is not explicitly disclosed in the excerpts, only that the actual TRI rate of 5.2 was "above the target level."

¹ Including 50% of the employees at Veracel in Brazil and Montes del Plata in Uruguay.

Characteristics of non-employees in the undertaking's own workforce

Number of non-employee workers

Stora Enso reports working with workers classified as non-employees in its operations. The company states it works with "over 20,000 contractors, sub-contractors and suppliers" as noted in its value creation description.

In addition to its own employees, contractor employees work at production sites. The annual maintenance of mills leads to a temporary increase in the number of contractor workers. Stora Enso relies on contractors for:

• De Jong units in the Netherlands (Business Unit Western Europe)
• Forestry operations
• Packaging units in China

Scope and methodology

The company acknowledges that contractor employees work at its premises and that safety of contractors working at the Group's premises is included in its safety management approach.

Stora Enso monitors contractor accidents in separate categories for:

• On-site accidents
• Logistics incidents

In 2024, the company introduced a new key performance indicator (full TRI rate) to be implemented in 2025, which will assess the total number of recordable injuries among both its own employees and contractors.

Reporting limitations

Stora Enso does not provide:

• Specific headcount or FTE figures for non-employee workers
• Breakdown by type (contractor vs agency vs self-employed)
• Gender or demographic breakdowns for non-employee workers
• Multi-year comparative data for non-employee workforce

The company states that certain administrative functions and sales offices are excluded from safety figures due to limited data availability related to relatively small headcount, representing 7% of the total workforce.

The company notes that 87% of people in its own workforce are covered by health and safety management systems, and that the approach to safety extends to contractors, suppliers, and on-site visitors.

Collective bargaining coverage and social dialogue

Collective bargaining coverage

At the end of 2024, approximately 88% of Stora Enso's employees were covered by collective bargaining agreements. The number is an estimate due to differences in national legislation.

Social dialogue arrangements

Stora Enso Oyj has had an agreement on European Corporate Cooperation in place since 1999. In 2015, the European Works Council (EWC) agreement was updated according to the EWC's proposal. The purpose of the collaboration is to establish and develop an open, confidential information and consultation procedure between the company and its employees on EEA level. The agreement establishes that a cooperation meeting shall take place each year to discuss strategy and business topics.

Stora Enso has a Global Framework Agreement with the labour unions IndustriAll, UniGlobal, and BWI, which serves to protect the interests of workers with consistent standards across the Group's operations. Stora Enso also works closely with the European Works Council to provide an open and confidential information and consultation procedure between the Company and its employees on the EU/EEA level. The engagement involves yearly meetings with a wider group of union representatives, as well as regular meetings following each Board meeting where the CEO updates the subgroup of key union representatives on the topics discussed during the Board meeting.

The European Works Council is a vital part of cooperation between employees and management. The Council meets once a year with representatives selected from each country that has production units employing at least 150 employees. Through their representatives, every Stora Enso employee has the opportunity to raise topics and ask questions to the Group Leadership Team.

Country-level breakdown (EEA only)

Accounting principles

Stora Enso's reporting on collective bargaining covers the employees within the European Economic Area. The percentage is presented only for countries with significant employment, defined as 1,860 number of employees representing at least 10% of its total number of employees.

The global percentage of employees covered by workers' representatives is reported for each country within the European Economic Area that meets the requirement on significant employment, defined as 1,860 number of employees, which represents at least 10% of its total number of employees.

Phase-in application

Stora Enso applies phase-in provisions in accordance with Appendix C of ESRS 1. The phase-in provisions are applied to S1-8 (covers only EEA countries).

Diversity Metrics:

Gender Diversity:

• 24% women among all managers across the organization
• Active focus on gender balance improvement across all divisions
• Specific recruitment and development programs targeting gender diversity

Cultural and Ethnic Diversity:

• 80 different citizenships represented among employees globally
• Diverse workforce reflecting the international nature of operations
• Employees distributed across multiple countries and regions

Age Diversity: The organization actively manages age diversity through specific programs:

• Young Advisory Board: Development platform for junior and early-career talents in Sweden
• "Experienced and Still Sparkling" Programme: Launched in 2024 to recognize and value more experienced employees
• Balanced approach ensuring knowledge transfer between generations

Leadership Recognition:

• Stora Enso ranked top leader in the Financial Times Diversity Leaders index
• Recognition for comprehensive diversity and inclusion initiatives

Division-Specific Diversity Initiatives:

Packaging Solutions Division:

• "Female Leader Engineer Talent Programme Cooperation" with active collaboration from other divisions including Biomaterials and Packaging Solutions
• Focus on gender diversity in recruitment processes

Wood Products Division:

• "Female Power Talks" Programme: Hybrid program with four events in 2024 aimed at empowering women and fostering support networks in Austria
• Integration of diversity metrics into Purpose reporting

Forest Division:

• Emphasis on age diversity management
• Programs supporting both junior talents and experienced professionals

Inclusion Measurement:

• Inclusion Index score: 8.4 in 2024 global employee engagement survey
• Performance places Stora Enso in average rank among manufacturing sector
• New metric introduced to track inclusive culture development

Employee Resource Groups:

• Rainbow Alliance ERG: Supporting LGBTQI+ employees and allies
• Fostering awareness and sense of belonging
• Platform for community building and support

Adequate wages

Benchmark used

Stora Enso states that "all Stora Enso's own employees are paid an adequate wage, when reviewed in accordance with the ESRS disclosure requirement and using Wageindicator benchmark."

The company also notes that it "adheres to minimum wage regulations and pays at par or above the legal requirements."

Coverage

The disclosure explicitly states that all own employees are paid adequate wages when assessed against the Wageindicator benchmark.

Exclusions: The figures exclude joint operations due to the lack of full authority over contractual arrangements between the workers and the Group.

Methodology

The assessment was conducted in accordance with the ESRS S1-10 disclosure requirement using the Wageindicator benchmark. The company notes in its materiality assessment that it "considered external studies conducted over the years, such as pay gap analyses and adequate wage benchmarks."

Geographic scope

Global coverage of own workforce, excluding joint operations.

Targets and commitments

No forward-looking targets disclosed.

Value chain

The disclosure under S1-10 covers only own employees. However, the Supplier Code of Conduct (SCoC) mentioned under ESRS S2 addresses "fair remuneration" requirements for value chain workers, though specific living wage benchmarks for suppliers are not detailed in the S1-10 disclosure.

Training and skills development metrics

Phase-in provisions applied

Stora Enso applies phase-in provisions in accordance with Appendix C of ESRS 1 for S1-13, meaning certain training and skills development metrics are subject to transitional relief for the financial year 2024.

Actions and policies

Stora Enso undertakes several actions related to training and talent development:

1. A two-day meeting was held in 2024 for 140 Stora Enso key business leaders focused on building a more resilient organisation and driving business transformation through implementation of a positive performance culture.

2. Ongoing Leadership programmes designed to cater to the various stages and needs of leadership development within the organisation.

3. Talent development and upskilling plans are part of performance and development reviews to support individual career planning. The aim is that all employees are involved in at least one formal performance and development review with their manager each year.

4. A 'Sparkling' programme was launched in 2024 to recognise more experienced employees and provide them with additional opportunities to contribute.

Effectiveness tracking

Effectiveness of training and development measures is tracked through:

• Employee engagement survey
• Performance and career development reviews
• Gender pay gap analysis
• Progress against the Group target on gender balance

Quantitative metrics

No specific quantitative data on average training hours per employee (overall, by gender, or by employee category) or percentage of employees receiving performance and career development reviews is disclosed in the excerpts provided for 2024.

No total investment in training (€) is disclosed.

Health and safety metrics

Coverage

87% of people in Stora Enso's own workforce are covered by health and safety management systems.

Metrics related to health and safety (2024)

Accounting principles

The rate of recordable work-related accidents represents the number of work-related injuries per one million hours worked (Total Recordable Incident rate). The figure is calculated by dividing the number of work-related injuries by the number of total hours worked by people in own workforce and multiplied by one million.

The number of recordable work-related accidents is reported based on international Occupational Health and Safety (OHSA) definitions. The data is collected in the Group's Health and Safety reporting system.

The percentage of people in Stora Enso's own workforce who are covered by health and safety management systems refers to the proportion of total employees covered by externally certified safety management systems, such as ISO 45001. Certain administrative functions and sales offices are currently excluded from the Group's safety figures due to limited data availability, which is related to a relatively small headcount and lower occupational safety risk compared to production units. These units represent 7% of the total workforce.

For 2024, the data does not cover non-employees except for fatalities. Due to the inherent nature of occupational safety, the joint operations are consolidated at 100%. Fatalities are reported for cases occurring at Stora Enso's sites and premises.

Compensation metrics (ESRS S1-16)

Pay gap

Gender pay gap (unadjusted): 7.0%

Remuneration ratio

Annual total remuneration ratio (highest-paid individual to median employee): 41.8

Methodology

Gender pay gap: The gender pay gap has been calculated by counting the difference between male and female salaries and dividing that by the male salary. Salary data has been retrieved from the HR system or local payroll. The figure is reported without joint operations due to the lack of full authority over contractual arrangements between the workers and the Group.

Annual total remuneration ratio: The annual total remuneration ratio excludes the salary of the highest paid individual. The median remuneration data is retrieved from the HR system and local payroll, and includes only base and holiday salary, bonuses, and incentive schemes. Additional benefits are excluded as the data is not available in the system. The missing data is estimated to not impact the results. The figure excludes joint operations. For more information on remuneration, see Financial Statements, note 3. Employee remuneration.

Phase-in provision: Stora Enso applies phase-in provisions in accordance with Appendix C of ESRS 1. The phase-in provisions are applied to S1-16, among other disclosure requirements. However, both the gender pay gap and remuneration ratio metrics are disclosed for the financial year 2024.

Incidents, complaints and severe human rights impacts

Accounting principles

Stora Enso's potential non-compliance cases encompass all issues documented through its grievance and other reporting channels. The reporting on proven cases covers the items closed during the year, and therefore the recording of such incident may have occurred during the current or previous financial year. The metrics related to incidents and complaints cover work-related incidents of discrimination and other complaints related to the Group's own workforce. In 2024, there were no significant human rights issues or incidents, nor fines or penalties related to reported incidents. Therefore, reconciliation to Financial Statements is not presented. The figures exclude incidents investigated by the joint operations due to the lack of full authority over contractual arrangements between the workers and the Group.

Metrics related to incidents and complaints

Additional context

In 2024, there were no significant human rights issues or incidents, nor fines or penalties related to reported incidents. As of the end of 2024, Stora Enso had not become aware of any severe cases of human rights incidents related to the UN Guiding Principles on Business and Human Rights, ILO Declaration on Fundamental Principles and Rights at Work or OECD Guidelines for Multinational Enterprises that involve its own workforce or value chain workers.

Policies related to value chain workers

Stora Enso has established policies governing its relationships with workers in the value chain, addressing human rights, ethical business practices, and sustainability requirements.

Supplier Code of Conduct (SCoC)

Scope: The SCoC covers all Stora Enso's business activities and operations globally, extending to all suppliers and their sub-suppliers. It applies to all sourcing categories globally, with certain exclusions: joint operations, intellectual property rights (IPR), leasing fees, financial trading, government fees such as customs, and wood purchases from private individual forest owners are not obliged to accept the Supplier Code of Conduct.

Governance: Accountability for the implementation of the SCoC lies with the EVP, Head of each division. The SCoC is provided to suppliers during the pre-qualification process, where they are required to commit to adhering to it.

Key content: The SCoC outlines minimum standards for suppliers in addition to applicable laws and regulations. The policy covers:

• Responsible business practices
• Occupational health and safety
• Human and labour rights
• Involuntary labour
• Supporting and engaging with communities
• Protecting the environment
• Active monitoring, reporting, and working to reduce GHG emissions from suppliers' own operations and value chain
• Respect for ILO Convention 138 on abolition of child labour

The SCoC requires suppliers to allow Stora Enso, or a third party authorized by Stora Enso, to verify compliance through dialogue, disclosure of information or, if considered necessary, an audit of the supplier's operations. Suppliers must ensure that their employees, sub-suppliers, local communities, and other relevant stakeholders have access to grievance channels to anonymously voice their concerns about potential misconduct related to the requirements of the SCoC. Suppliers must also have processes in place to address these concerns and remedy any confirmed case.

Public availability: Not explicitly stated in the excerpts.

Link to international standards: The SCoC obliges suppliers to respect the ILO Convention 138 on abolition of child labour.

Monitoring:

• Suppliers are assessed for risks related to environmental, social and business practices using an internal risk assessment tool
• Supplier Code of Conduct audits are conducted for high-risk suppliers
• Findings from audits are followed-up
• If mitigation is not possible, supplier contracts may be terminated
• In 2024, 21 Supplier Code of Conduct audits were conducted, primarily in China, with the majority relating to contracted manufacturing and labour agencies
• 33 sites received renewed Forest Stewardship Council (FSC) chain-of-custody certifications in 2024, with audits covering requirements on core labour rights
• The SCoC needs to be signed as part of the pre-qualification process

Human Rights Policy and Guidelines

Scope: The policy applies to Stora Enso's operations and business relationships throughout the value chain. It requires suppliers and other business partners to respect human and labour rights and comply with the Group's policies and guidelines.

Governance: Not explicitly stated in the excerpts.

Key content: Stora Enso works to ensure that human rights are respected throughout its operations and business relationships. The policy outlines Stora Enso's commitment to ensuring respect for human rights following the United Nations Guiding Principles on Business and Human Rights. The Human Rights Guidelines address salient human rights topics, such as fair labour, access to grievance mechanisms, and children's rights. The policy requires suppliers and other business partners to respect human and labour rights and comply with the Group's policies and guidelines. Stora Enso strives to prevent situations where its activities have caused or contributed to adverse human rights impacts and engages with affected stakeholders in finding the most appropriate solution.

Public availability: Not explicitly stated in the excerpts.

Link to international standards:

• United Nations Guiding Principles on Business and Human Rights
• ILO Declaration on Fundamental Principles and Rights at Work
• OECD Guidelines for Multinational Enterprises

Monitoring: The Group is informed of incidents of non-respect through internal audits, grievance mechanisms, and third-party supplier audits, which include aspects such as occupational safety and labour rights. All potential non-compliance cases involving a Stora Enso employee or a contracted third-party are investigated by an independent internal team. When a suspected Supplier Code of Conduct non-conformity is identified during supplier visits or audits, or brought to the Group's attention through grievance channels, Stora Enso initiates a thorough investigation. In cases of non-conformity, Stora Enso takes a collaborative approach by working with the supplier to implement a corrective action plan. In cases where the level of criticality is deemed high, or if a supplier demonstrates an unwillingness to improve its performance, the business relationship is terminated.

Policy for Energy and Climate Change

Scope: The policy applies to Stora Enso's own operations.

Governance: The EVP, Strategy and Sustainability, is accountable for its implementation.

Key content: The policy promotes working with suppliers, customers, and partners to decarbonise the value chain, thereby aiming to mitigate the negative impacts resulting from emissions generated within the value chain.

Public availability: Not explicitly stated in the excerpts.

Link to international standards: Not explicitly stated in the excerpts.

Monitoring: Not explicitly stated for value chain workers in the excerpts.

Environmental Guidelines

Scope: The scope of the guidelines covers Stora Enso's own operations.

Governance: The Chief Sustainability Officer and Head of Sustainability for each division are accountable for their implementation.

Key content: The guidelines address topics related to environmental management and circularity, energy and climate change, pollution, water, forests, plantations, and land use. The guidelines require that all of Stora Enso's production units implement and maintain a third-party certified environmental management system. The guidelines require suppliers to actively monitor, report, and work to reduce GHG emissions from their own operations and value chain.

Public availability: Not explicitly stated in the excerpts.

Link to international standards: Third-party certified management systems (ISO 14001 and ISO 50001) are required.

Monitoring: Not explicitly stated for value chain workers in the excerpts.

Taking action on material impacts on value chain workers

Overview

To address the material risk of non-compliance by suppliers and other business partners, and to identify appropriate preventive actions, Stora Enso undertook the following actions during 2024. The Group plans to continue these actions in the short to mid-term future. The actions cover the Group's own operations and the upstream value chain, with specific geographic locations specified for relevant activities.

Material impact addressed: Risk of non-compliance by suppliers and other business partners with respect to human rights, labour rights, and working conditions.

Adaptation note: In line with the ongoing work to refine the business model for the Forest division and the identified need for adaptations in the business model or strategy, the Group has expanded its safety target to include value chain workers who perform activities at the Group's sites, starting in 2025.

Actions taken in 2024

1. Refined sustainability risk assessment approach

Following a 2023 pilot project on sustainability risk identification, Stora Enso has refined its approach to assessing sustainability risks from a country-specific perspective. This includes utilising data support from a third-party provider. Internally, efforts are underway to effectively leverage this data to enhance the screening of suppliers' sustainability risks by country. The action aims to improve decision-making regarding which countries and regions require heightened focus and to enhance the selection process for conducting additional assessments on suppliers.

• Scope: Own operations and upstream value chain
• Time horizon: Short to medium term (ongoing)
• Resources: Third-party data provider (non-financial)

2. Desktop assessment of kaolin supplier in Brazil

During 2024, Stora Enso conducted a desktop assessment to evaluate the social and environmental impact and potential risks of a tier 1 supplier in Brazil involved in kaolin processing and mining. Kaolin is a soft white clay used in some of the Group's packaging products. The assessment focused on reviewing the supplier's operations and their impact on local communities, land rights, and environmental incidents in the past. The assessment took a collaborative approach and involved online dialogue with the supplier.

Key outcomes: The key concerns identified in the assessment mainly relate to the accuracy and availability of public information, particularly regarding the review of the supplier's operations and their impact on local communities, land rights, and past environmental incidents. As a result, Stora Enso has developed a follow-up plan accordingly.

• Scope: Upstream value chain (Brazil)
• Time horizon: Short to medium term
• Resources: Desktop assessment and supplier dialogue (non-financial)

3. CSDDD compliance project

In 2024, Stora Enso launched a project to establish a risk-based and data-driven management system to ensure compliance with the forthcoming Corporate Sustainability Due Diligence Directive (CSDDD). The project will provide updates to Company policies, develop tools for due diligence in supply chain and other high-risk areas, provide training and advice to stakeholders, establish a related governance model, and set impact targets and KPIs for performance measurement.

• Scope: Own operations, upstream and downstream value chain
• Time horizon: Short to medium term (ongoing)
• Resources: Training, tools development, governance model (non-financial)

4. Silviculture contractors initiative (Sweden)

In Stora Enso's forest operations in Sweden, activities such as the clearing and planting of trees are carried out by silviculture contractors, who predominantly employ migrant workers. A human rights impact assessment conducted in 2022 revealed negative impacts on working conditions and human rights risks among silviculture contractors. These included limited workers' rights, overtime issues, unclear payment practices, safety concerns, and lack of transparency in housing and recruitment fees.

Mitigation measures: To mitigate similar potential impacts and related risks, Stora Enso is dedicated to continuously addressing these issues and further improving its processes. This includes implementing capacity building initiatives, engaging in frequent dialogues with contractors, and enhancing on-site assessments to focus on labour and human rights. Additionally, translators are involved in the assessments to address the needs and feedback of migrant workers.

• Scope: Upstream value chain (Sweden)
• Time horizon: Short to medium term (ongoing from 2022)
• Resources: Capacity building, translator engagement, on-site assessments (non-financial)

Effectiveness tracking

To track effectiveness of the actions, Stora Enso has set a target on maintaining the proportion of total supplier spend covered by Supplier Code of Conduct, including all categories and regions, at a minimum of 95%. Third-party audits assist in tracking the effectiveness of risk mitigation by providing an independent assessment of the measures implemented.

Third-party audits conducted in 2024:

• 21 Supplier Code of Conduct audits, primarily in China, with the majority relating to contracted manufacturing and labour agencies. The audits revealed non-conformities, related in particular to working hours, basic worker's rights, and emergency preparedness. Stora Enso formulated corrective action plans for all cases with necessary follow-up.
• 33 sites received renewed Forest Stewardship Council (FSC) chain-of-custody certifications, with audits covering requirements on core labour rights.
• 43 Health, Safety, Environment, and Quality (HSEQ) audits were conducted mainly in Finland connected to contractors working on-site at Stora Enso's production sites.

Remediation process

In case of material negative impacts, Stora Enso follows the processes described in ESRS S2-3 to provide and ensure remedy.

As outlined in the Supplier Code of Conduct, suppliers are required to ensure that their employees, sub-suppliers, local communities, and other relevant stakeholders have access to grievance channels to anonymously voice their concerns about potential misconduct related to the requirements of this Code. The Supplier must also have processes in place to address these concerns and remedy any confirmed case.

All potential non-compliance cases involving a Stora Enso employee or a contracted third-party are duly investigated by an independent internal team. Whenever a suspected Supplier Code of Conduct non-conformity is identified during supplier visits or audits, or brought to the Group's attention through grievance channels, Stora Enso initiates a thorough investigation. In cases of non-conformity, Stora Enso takes a collaborative approach by working with the supplier to implement a corrective action plan. In cases where the level of criticality is deemed high, or if a supplier demonstrates an unwillingness to improve its performance, the business relationship is terminated.

Human rights incidents

By the end of 2024, Stora Enso had not become aware of any severe cases of human rights incidents related to the UN Guiding Principles on Business and Human Rights, ILO Declaration on Fundamental Principles and Rights at Work or OECD Guidelines for Multinational Enterprises that involve value chain workers. The Group is informed of incidents of non-respect through internal audits, grievance mechanisms, and third-party supplier audits, which include aspects such as occupational safety and labour rights.

As of the end of 2024, Stora Enso had not been made aware of any reported instances of severe human rights issues or incidents connected to its upstream and downstream value chain.

Targets related to value chain workers

Target on Supplier Code of Conduct Coverage

Target metric: Proportion of total supplier spend covered by Supplier Code of Conduct (including all categories and regions)

Target value: Minimum 95% each year (continuous target)

Target year: Ongoing (each year)

Baseline year: 2014

Baseline value: 78%

Scope: All categories and divisions, global sourcing categories. Excludes joint operations, intellectual property rights (IPR), leasing fees, financial trading, government fees such as customs, and wood purchases from private individual forest owners.

Type: Absolute percentage target

Alignment: In line with Stora Enso's Supplier Code of Conduct

Stakeholder involvement in target setting: Workers in the value chain, their legitimate representatives, or credible proxies were not involved in the target setting, tracking of the performance or identifying any lessons or improvements.

Progress to date (2024): 95% - target met

Purpose

This target is set to manage material risks related to value chain workers.

Policies related to affected communities

Stora Enso discloses two key policies guiding its approach to affected communities:

Human Rights Policy

Scope and coverage:

• Covers all operations and supply chain
• Addresses vulnerable groups, including indigenous people
• Focuses on land and natural resource rights

Key content and principles:

• Commitment to the UN Guiding Principles on Business and Human Rights
• Proactive risk identification
• Mitigating adverse impacts
• Implementing remediation measures
• Addresses reputational risks related to water and land impacts
• Addresses negative impacts of land use conflicts in Brazil
• Ensures management of land and natural resource rights respects stakeholder rights
• Rights acquired through due diligence processes
• Avoiding involuntary displacement of indigenous peoples from traditional lands and natural resources
• Upholds rights to health and adequate standard of living for affected communities

Links to international standards:

• UN Guiding Principles on Business and Human Rights
• Indigenous and Tribal Peoples Convention (C169)
• Convention on the Elimination of Discrimination Against Women (CEDAW)
• Convention on the Rights of the Child (UNCRC)
• International Convention on the Protection of the Rights of All Migrant Workers and Members of Their Families

Human Rights Guidelines

Key content and principles:

• Describes approach and practices for achieving Human Rights Policy objectives
• Special attention to vulnerable groups, including indigenous people
• Ensures management of land and natural resource rights respects stakeholder rights in operations and supply chain

Wood and Fiber Sourcing, and Land Management Policy

Key content and principles:

• Addresses managing tree plantations as part of local land use and contributing to sustainable livelihoods
• Forbids harvesting in violation of traditional rights of indigenous people or civil rights
• Protects and respects rights of local communities and indigenous peoples as essential part of sustainable forest management

Implementation monitoring:

• Human rights impacts identified and addressed through Environmental and Social Impact Assessment (ESIA) requirements for new or significant changes to facilities and plantations
• Consulting and informing affected and potentially affected stakeholders
• Air, water, and soil emissions governed through regulatory permitting and monitoring
• Local environmental management system for industrial or forestry operations

Environmental Guidelines

Key content and principles:

• Human rights and local communities aspects embedded in all three chapters
• Specifically outline right to water and sanitation
• Right to safe, clean, healthy, and sustainable environment

Taking action on material impacts on affected communities

Stora Enso has implemented a set of actions in its own operations and joint operations to address the risk and identified negative impact related to affected communities. None of the listed actions entail plans that necessitate significant capital expenditure or operational expenditure.

Whilst Stora Enso is active on community investments to advance positive impacts in local communities, the impacts were not considered to cross the materiality threshold.

Addressing reputational risk

To address the reputational risks associated with raw material dependency and potential conflicts related to use of natural resources and management of environmental impacts, such as deforestation, biodiversity loss, and land and water use, Stora Enso has implemented an ongoing, long-term action plan that encompasses its own operations and joint operations.

Scope: Own operations and joint operations

Time horizon: Long term

The action plan comprises the following aspects:

• Environmental and Social Impact Assessments (ESIAs) conducted for all new projects that could cause significant adverse impacts on local communities. Post-completion audits are carried out for all significant investments. The assessments inform on actions that may be required in project planning, construction, and operations to avoid possible negative impacts.

• Tree plantations and land holdings are an integral part of chains. Identifying areas where water usage might create a negative impact on local communities, is done by applying the WRI Aqueduct Water Risk Atlas to assess water-related risks at its production sites.

• Community consultations, including Free, Prior, and Informed Consent (FPIC) are an important tool for mitigating potential negative impacts, such as conflicts on land-related use (see ESRS S3-2).

• Deforestation-free practices and biodiversity management are described in ESRS E4. This includes the FSC and PEFC certifications on sustainable forest management practices.

• Engagement and collaboration is one of the key actions to ensure proactive and transparent communication, address the concerns of local communities and other stakeholders, such as NGOs, and to define the most appropriate actions.

• For details on the actions taken during 2024 regarding the evaluation of social and environmental impacts of a tier 1 supplier involved in kaolin processing and mining in Brazil, see ESRS S2-4.

Managing land-related conflicts in upstream value chain

In Brazil, Stora Enso has 50% ownership of the joint operation Veracel. Since the Group does not have direct operational control of the unit, it is leveraging its financial ownership to address the negative impacts related to land acquisition. The identification of appropriate actions is decided in collaboration with the local community.

Scope: Upstream value chain (Brazil joint operation)

Long-term action: Veracel continues to support the transition of families from the settlements to more permanent residencies on the same land, as the legal processes regarding their claim to the land are resolved over time.

Outcomes achieved: In total, since 2012, Veracel has voluntarily approved the transfer of approximately 20,000 hectares of land to benefit landless people as part of the sustainable resettlement. At the end of 2024, 139 hectares, or 0.1%, of productive land owned by Veracel remained occupied by movements not involved in the agreements. Veracel continues to recover occupied areas through legal processes.

Community engagement programmes

Stora Enso's joint operations conduct community engagement programmes involving employee volunteering.

Examples:

• Veracel's community liaison team, in collaboration with indigenous communities, arranges activities from awareness building on environmental topics to supporting educational programmes and cultural incentives.

• Montes del Plata, Uruguay: The community engagement programme encompasses a variety of initiatives, such as providing training for beekeepers and herders, promoting English language learning, and supporting educational continuity.

Engagement with indigenous peoples

Sweden - Sámi communities:

Stora Enso's forestry planning team engages in ongoing dialogue with the local Sámi communities, including discussions about forestry and reindeer herding, and identifying opportunities and challenges together.

Scope: Own operations (Sweden)

Time horizon: Ongoing

Process:

• Before commencing any forestry operations, Stora Enso consults with the Sámi communities
• Annual evaluation meetings assess the year's activities and consultations, ensuring continuous communication and collaboration
• The collaboration has led to solutions such as avoiding damage to lichen when preparing the soil for replanting, which is crucial for reindeer feeding during winter

Brazil - Pataxó and Tupinambá communities:

The Pataxó and Tupinambá communities represent almost 25,000 indigenous people on the Discovery Coast in Brazil.

Scope: Upstream value chain (Brazil joint operation)

Process:

• Engagement is carried out with communities impacted by forestry operations in the territory and is organised by a third-party consultancy
• Engagement activities are conducted prior to the initiation of harvesting operations and upon their completion to evaluate the process
• This active dialogue aims to establish an effective mechanism to minimise negative impact on these traditional communities during the development of operational activities

Effectiveness monitoring

To monitor the effectiveness of these actions, Stora Enso utilises:

• Certifications like FSC and PEFC
• Post-completion audits as part of the ESIAs
• Tracking cases of non-compliance
• Gathering stakeholder feedback

Legionnaire's disease case

In 2019, an outbreak of legionnaire's disease affected a municipality close to Ghent, Belgium, causing health impacts on the local communities. The case was concluded in 2024, and is described in more detail in ESRS E3.

Targets related to affected communities

Although Stora Enso is actively monitoring its impacts on affected communities, it currently lacks a specific target for this topic with defined timelines and desired outcomes. The Group does not track the effectiveness of its policies and actions with defined level of ambition or indicators. However, the Group is exploring the implementation of a suitable target. In the meantime, Stora Enso advances the progress in achieving its policy objectives through actions described in ESRS S3-4.

Policies related to consumers and end-users

Stora Enso has assessed ESRS S4-1 (Policies related to consumers and end-users) as not material.

According to the materiality assessment disclosed in the sustainability statement, the disclosure requirement S4-1 concerning policies related to consumers and end-users has been determined to be not material to the company's operations. As a result, no specific policies under this disclosure requirement are reported.

Incidents of corruption or bribery

Confirmed incidents

Stora Enso reports zero confirmed incidents of corruption or bribery during the reporting period 2024.

Convictions and fines

The company reports no convictions for violations of anti-corruption and anti-bribery laws and no fines paid for such violations during 2024.

Disciplinary actions

No specific information is disclosed regarding employees dismissed or disciplined due to corruption or bribery incidents during 2024.

Contracts terminated

No information is disclosed regarding contracts with business partners terminated or not renewed due to corruption or bribery issues during 2024.

Investigation procedures and speak-up mechanisms

Stora Enso has established comprehensive mechanisms for reporting and investigating potential misconduct:

• Speak Up Hotline: An external reporting channel available 24/7, accessible globally by phone, mail, or online, allowing employees and third parties to anonymously report potential non-compliance cases, including corruption and bribery.

• Investigation process: All cases are reported to and closed by the Disciplinary Committee, which consists of the General Counsel, Head of People and Communication, SVP Ethics and Compliance, and Investigation Manager (secretary). All cases are reported to the Board of Directors' Sustainability and Ethics Committee, and cases related to fraud or financial reporting integrity are also reported to the Financial and Audit Committee.

• Protection of whistleblowers: As outlined in the Stora Enso Code and Business Practice Policy, the company does not tolerate any retaliation against persons who in good faith report misconduct.

• Ethics and Compliance Management Committee: Supervises and monitors ethics and compliance-related policies, processes, and concrete compliance cases of principle interest. The Committee meets at least four times per year.

• Compliance forums: Divisional compliance forums assess risk and monitor compliance across all operational activities. Units use the Ethics and Compliance Self-Assessment Tool (T.E.S.T.) to monitor policy implementation and identify gaps and risks.

• Training: The Stora Enso Code training is mandatory for all employees and is available in thirteen languages, including a mobile-friendly version for production workers.

The company reports adherence to the United Nations Convention against Corruption and maintains procedures for anonymous reporting of violations related to accounting, internal controls, and auditing matters.