Stora Enso Rethink 2010

Rethink
Stora Enso 2010

Saving rainforest Find out how Veracel is helping local biodiversity in Brazil. 18
Trees, food and bombs In Laos, business meets corporate social responsibility in a concrete way. 42
A CEO’s diary It appears that leading a company like Stora Enso is far from a tidy office job. 66
A talk with a woodpecker Stora Enso’s sustainability expert Carolina Graça shares her insights. 14

Insert Stora Enso Facts & Figures 2010 Stora Enso—1

The world needs
Rethink
Stora Enso Rethink 2010
Editor in chief Lauri Peltola
Concept & design Miltton Oy
Printing Libris Oy
Cover photo Jenni-Justiina Niemi, Visuamo Oy
Stora Enso Oyj P.O. Box 309, FI-00101 Helsinki, Finland

a new approach
Visiting address Kanavaranta 1, tel. +358 2046 131
Stora Enso AB Box 70395, SE-107 24 Stockholm, Sweden
Visiting address World Trade Center, Klarabergsviadukten 70, tel. +46 1046 46000
www.storaenso.com, group.communications@storaenso.com

to materials. Contents
Editorial Why do we and you need to rethink? 4
Phenomenon Plastic floats 6
Column The customer always has a choice! 8
Who knows if one day renewable materials and Stora Enso nanotechnology will be used to build emission free
R&D Responsible choices 9
vehicles? What we do know is that renewable materials have the power to push things forward. That is why Strategy The magic moment 11
Stora Enso has redefined itself from a European forest company to a renewable materials company operating in Phenomenon Beekeeping in Uruguay 13
growth markets. Find out more about our rethinking: storaenso.com/rethink Interview A talk with a woodpecker 14

Plastic fantasies
Plastic is everywhere. But what
do we really know about it and
its competitors? 16

S H u T T E R S T O C k / M i LT T O n PE T R i A R T T u R i A S i k A i n E n M A RC E L O S i n G E R

Saving Trees, food Everybody
rainforest and bombs along
Veracel is improving biodiversity in Brazil whilst In Laos, Stora Enso Stora Enso’s and Arauco’s joint venture in
producing over a million tonnes of pulp. 18 is helping local Uruguay benefits locals as well. 54
communities by
Business Modern pulp production 60
On business clearing land of
bombs for both plan- Strategy Into packaging growth markets 61
Publication Paper tations and locals’ Insert Stora Enso Facts & Figures 2010
Taste for waste 24 food production. 42 Global Responsibility
Fine Paper Global, practical, engaged 63
Change on course 29 Straw poll How’s your recycling? 65
Packaging
The final shift
A new take on packaging 33 Tough decision to
Wood Products shut down a paper
A CEO’s diary
Welcome the era of wood 37 machine. 50 A few days on the heels of Stora Enso CEO
as he travels the globe. 66

Phenomenon Tree gardeners 68
Column For the love of wood 70

2—Rethink Stora Enso—3

Editorial Rethink will become
a movement inside

Why do we and you need to rethink? and outside the
company with an
accelerating pace
of ideas and concrete
results.

W e in Stora Enso have started a change.
A change for the future. Through several
challenging years in a roller coaster operating
A nother clear change is how we steer our
assets in cyclical markets. Old wisdom
was specialisation to the extreme both
Montes del Plata pulp mill investment decision
ten years earlier – and create twice the value
with half the cash spent. The Inpac packaging
environment we have become a stronger machine by machine but also by doing most company acquisition in China and India follows
company. So why do we need to change when everything ourselves, not only in the core exactly the same logic – we won eight to ten
we are finally on the right track? Why not just paper and board manufacturing, but also for years of time in the fastest growing consumer
keep going? The simple answer is: because the example in mill maintenance. The issue with packaging markets in the world. Now that I
world is changing. And we want to be part of this was that in a reduced demand situation would call Rethink.
changing the world, part of the change for the we not only had to reduce operating rates of

JEnni-JuST iinA niEMi
better. We want to be the pathfinder, not follow
the others.
Why do we call our change process Rethink?
our machines, but also much of our costs were
fixed. After rethinking the old way of “minimum
cost at any cost” has been replaced with
T here are already many other examples
of Rethink. From the value proposition to
our customers to product innovation, looking
Because we want our slogan to be a call to “maximum flexibility at optimum cost” – with at ourselves from a customer and even from
Jouko Karvinen action for every person in our company – from more outsourcing to expert partners and clear a consumer angle rather than looking from
CEO of Stora Enso the CEO to the latest young trainee. And a call priority setting where lowest cost assets will the forest out – questioning old ways of doing
to action for you personally, too. always run at highest operating rates – and and thinking. What we want is that Rethink
maximise our returns. becomes a movement inside and outside of the

W e in the company already started in 2010.
We have many brilliant examples of our
excellent people challenging old traditions T he achievements of the past three years
have been tremendous – a total of 500
company with an accelerating pace of ideas,
and concrete results of Rethink.

of looking at business, driving operations or
making investments. No more “we have always
done it this way”. Let me share with you a few
million euros, or five margin points, less fixed
costs in 2010 than in 2007! That is a pretty
good kick start for the next part of our journey.
W e also want to invite you, the reader of
our rethought Annual Report, to join our
journey. Be it the stakeholder dialogue with
examples of rethinking in action in Stora Enso And we are only in the beginning of this NGOs and local governments on environmental
2010. journey, so we have much more to gain! and social issues, or making a difference to our
The traditional wisdom in our industry has Rethink is not only about flexibility and cost planet through replacing plastics with recy-
been to benchmark manufacturing assets either. It is also about speed and time. We clable and renewable fibre-based packaging, it
based on cost charts, which are based on have for a long time had a plantation project is time for all of us, including myself, to rethink
average cost assumptions. We have started to in Uruguay, which would have at consistent and renew. Not only for the good of Stora Enso
look at total resource costs, not so much on investment speed given us an opportunity to and our shareholders – but for the good of
paper or board machine width and speed only build a full-size pulp mill in about 2020. Then you, every consumer in the world and our joint
– and using actual cost data. And that has now came the opportunity to partner with Arauco planet.
allowed us to be a lot more selective and to and not only combine their plantations with I hope you will enjoy reading our Rethink
invest in, for example, three power plants in the ours but to also purchase a significant piece Report as well as our Global Responsibility
worst economic downturn, with a very good of additional plantations from ENCE. What Report. And yes, I hope they will also make
financial return. that means is that we were able to make the You – rethink.
iS T O C k PH O T O / A n T O n S E L E z n E v


Phenomenon

Plastic floats

A
round 100 million tonnes of plastic is
produced each year. Approximately
10 percent of it ends up in the sea,
where the durable and stable nature
of plastic creates a serious problem.
The Trash Vortex is a gyre of marine litter
in the North Pacific Ocean. In the gyre – esti-
mated to be as large as the state of Texas – the
mass of floating plastic is in parts six times
greater than the mass of plankton.
It has been estimated that over a million
seabirds and 100 000 marine mammals and
sea turtles are killed each year by ingestion of
plastics, or entanglement.
Some plastics in the gyre will not break
down even during the lifetime of the grand-
children of the people who threw them away.
Sources: Ecosystems and Biodiversity in Deep Waters and High Seas (2006),
Greenpeace website (www.greenpeace.org)

C O R b i S / S kOY / G A R Y b E L L


Column R&D Many of the latest Stora Enso products are made with sustainability and responsibility in mind.

The customer always has a choice! Responsible choices

i f a customer cannot get what he wants
from us, he will always be able to get it from
somebody else. This is a sobering statement
A s the Board of Directors of Stora Enso,
it is important for us to remember we
are appointed by and responsible to all our
Recyclable board for packaging cold cuts
Stora Enso’s new Primeforma board is a
sustainable and mostly renewable solution
Flexible and personalised packaging
The Stora Enso Gallop powered by Xerox is a
cutting-edge solution for the digital printing
that too many companies tend to ignore. shareholders. Our duty is to represent all developed to meet the needs of thermoformed and die-cutting of packages. The world’s first
In a global business environment that shareholders and to try to generate long-term food packaging. Products made of Primeforma sheet-fed integrated digital printing packaging
is changing very fast, our customers have shareholder value. Is there a conflict between board can be recycled just like any cardboard line works inline and on demand, shortening
to adapt their way of doing business. This caring for your customers and creating share- packages. The board can be used on existing lead times, enabling quick changeovers and
naturally includes how they look upon their holder value? Not at all! packaging lines previously used for plastic providing the possibility to print individual,
suppliers. “Old” ways of engaging with Understanding our customers, as well as packaging. The revamped range of cold cuts variable data on each package cost-effec-
suppliers may be neither efficient nor relevant. developing products and services that support HK Ruokatalo’s cold by HK Ruokatalo, one of Finland’s leading food tively. Gallop also enables item-level product
their competitiveness is where it all starts cuts are the first to manufacturers, hit the stores in September identification used for tracking and tracing

A
JEnni-JuST iinA niEMi
t Stora Enso we must rethink how we and ends. By doing this we will create lasting be packaged using 2010. It was the first time board trays were products. The workflow based on the Gallop
engage with our customers. We have to shareholder value. board trays. used for packaging sliced meat. production line enables lower minimum orders,
Gunnar Brock rethink how we add value to our customers. less waste and less storage. Microsoft chose
Chairman of the
Stora Enso Board of
Directors
Is our product development addressing the
right issues? Are our processes and services
meeting the new and added demands from our
T he Stora Enso Board of Directors is giving
Group management their full support to
drive the Rethink change process. Rethinking,
Creative furniture design
Stable, strong and good-looking – these are
examples of adjectives that can be associated
Stora Enso Gallop for packaging its Windows
7 software.

customers? As a way to rethink, Stora Enso questioning old ways of doing things and with the Särmä table that Stora Enso and Isku Intelligence for health monitoring
has started to make systematic and regular finding new ways and solutions to satisfy have jointly developed. The most interesting Conductive printing combined with an
customer surveys in order to better under- customers, shareholders, employees and feature of this table is that it needs no frame embedded microchip was the basis for the
stand in what way we should change to better the society at large, is a daunting challenge. under the top, because bending is prevented by development of Stora Enso Pharma DDSi, an
respond to the new requirements. We feel that Stora Enso management is fully having a cross lamination-based structure that intelligent pharmaceutical packaging solution.
committed and ready to take on this task. makes the table top stronger and more stable. Now the same technology is used for a new

T he results from a survey conducted last
autumn were generally positive, but far
from perfect. Stora Enso differed in a positive
There is a Chinese saying: “a long march
starts with a first step.” Stora Enso has taken
that first step! Stora Enso Gallop
Furthermore, the table’s legs can be attached
directly to the top. This structural feat results in
a lighter-weight table, and saves both time and
purpose: in an electronic health journal, the
Memori card, which a patient can use to record
and report his/her condition or symptoms. The
way from its competitors in such areas as provides packaging money in manufacturing. The beautiful appear- solution is a time-saver both for health profes-
● company reputation for Microsoft’s ance of the table top is achieved by making the sionals and the outpatient, as fewer visits to the
● environmental performance Windows 7 software. surface layer out of Stora Enso Effex. medical centre are needed.
● quality of products
● quality of service
● quality of sales personnel.

H owever, Stora Enso also received criti-
cism. The customers said the company
feels cold and distant and is not flexible and
innovative enough. According to one particular
comment: “This is a moment of change and
you have to be reactive and caring – not so
much hard-shell.”
I think this statement carries two impor-
tant messages for us. One is that we must be
reactive, and even anticipate, the changing
demands from our customers. The other is that Pharma DDSi helps

iSk u
we must care about them. Not to take them for save both doctors’
granted, not to stop to support them, but to try and patients’ time.
to understand their particular challenges where
our products are involved. The elegant
Särmä table, by
Stora Enso and Isku.


The most important
Strategy

The magic moment

things grow between
the trees.
During the Vietnam war over two million tonnes of bombs were dropped on Laos. That is why building a
Stora Enso eucalyptus plantation always starts with bomb clearing. What is left between the trees is workable
farmland, safe for local farmers to grow food and commercial plants. This is not charity, but beneficial to both
sides. Find out more about our eucalyptus plantations: storaenso.com/revive

W e knew that sooner or later it would come
out. Now that I think about it, I am sure
that many of the people at Stora Enso knew it
animation, Jouko’s attention was undivided.
He sat silent, doing his utmost not to reveal his
enthusiasm.
too – some perhaps unconsciously. After a few Sometimes, with certain events and projects,
turbulent years, something new was happening you can pinpoint the “magic moment”, the time
at Stora Enso. There was something fresh in when everything comes together. Here was the
the air, a buzz you could feel but not quite put magic moment discovering Rethink. This was
into words. what Stora Enso was, and would be, all about!
Stora Enso was evolving. The world around We had wanted to talk about the change
us was changing, and we were moving on with within Stora Enso and drive that change
it. I could see it all around me: we were thinking forward. We had wanted to tell our stakeholders
TOM AS W HiT EHOuSE
about our business in new ways, and the spirit we were a different company than before. Now
of seeing things afresh had become something we had the concept to make it happen.
Lauri Peltola of a daily routine.
Head of Group
Communications
and Global Respon-
And then – on that one morning in March
2010 – it just happened. I was thinking that it
would be just another meeting with an external
S o, what is it in Rethink that makes all the
difference? What exactly does the concept
capture? To put it in a nutshell: the world around
sibility at Stora Enso consultant trying to sell their high-flying ideas. us is going through a profound change. People
After meeting tens of consultants you tend to around the world are rethinking – our stake-
get a bit sceptical as you realise that many a holders are rethinking. Whether it is the way
time they do not know the company, under- the world has to be saved from financial crises,
stand the business, or realise how serious how companies have to pay serious attention to
companies are about their identity. On this responsibility issues everywhere they operate,
particular day, however, everything became or consumers asking for a paper bag instead of
crystal clear. In a small meeting room, me and plastic at the grocery store, we are all rethinking
my team, our CEO Jouko Karvinen, and the – reassessing the way we live our lives and treat
external consultants captured all that was this planet, our shared home.
happening in the company, and encapsulated it We at Stora Enso have been rethinking
in one concept. more than any company within this industry,
That concept is Rethink. but it is not until now that we are ready to
tell about it to the outside world. An external

O ur CEO is not especially known for his
patience. During presentations too long
and boring he tends to start multitasking. But
view on Stora Enso still reflects the company
we were five or ten years ago, but from the
inside, things are looking very different. We
now, he suddenly was not reading emails from are constantly questioning old ways of doing
his mobile anymore. Instead, as the agency things, and not only that – we are also coming
people were presenting their Rethink slides and up with new solutions.


To me the beauty of our Rethink is that it is ● Our values: Phenomenon
more than a mere slogan. Rethink is a change • Create: Creativity is the engine that drives
process, and at the same time a dynamic crys- us to reinvent ourselves and achieve busi-
tallisation of our corporate philosophy. Rethink ness success.
challenges not only us at Stora Enso but also • Renew: Every day we build our future in a
the world around us at any given time – also in sustainable way.
the future. • Trust: We recognise the talents of our
people with the opportunity to learn and the

T his is what we promise our stakeholders:
Stora Enso is the global rethinker of
responsibility to succeed.

the packaging, paper and wood products
industry. We always rethink the old and
expand to the new to offer our customers
A s we wanted to signal the change also
visually, we decided to go for a new
symbol and logo. Also visually we wanted to Visual identity
innovative solutions based on renewable achieve something real, something true to our The new logo
materials. business and thinking. The designer of our new symbolises Stora
The exciting thing about this is that it is real. logo, Creative Director Brian Kaszonyi from Enso’s commitment
It is not a publicity gimmick, but happening N2, dove into our business and got familiar to creating a sustain-
throughout the Stora Enso organisation, in with our raw materials, production processes, able future for our
the different businesses, all over the world. end products, as well as sustainability cycles. planet by developing
It is an unstoppable change process, which, He came across the cycle shape in different innovative solutions
in the end, will carve a totally new identity for forms, again and again. Finally he had a closer based on renewable
the company. At the same time, all this ties in look at how pulp was made and found his materials.
perfectly with our vision, mission and values – inspiration in the eucalyptus tree and its flower. The design of
things that we are dead serious about. Looking at our new visual identity, you the logo reflects the
realise it is not made up or artificial. It is truly shapes related to
● Our vision: Today we as a company, people about us and who we are, and it has a story Stora Enso’s busi-
and planet face new challenges never before behind it. We are quite excited about it. ness and products,
seen. The world needs a new approach to And this is what catches the magic of Rethink. the unending cycles
materials. We at Stora Enso are excited about pretty of nature and, most
● Our mission: We will win with solutions much everything that is happening here right importantly, the
based on renewable materials. now. eucalyptus flower.

The unusual, petal-
less eucalyptus Beekeeping
flower symbolises
a sustainable
raw material, the
in Uruguay
eucalyptus tree,

L
which has a growing ocal honey-producers have rented suit-
importance in Stora able land from Montes del Plata, a joint
Enso’s global pulp venture of Stora Enso and Arauco in
production. Uruguay. Utilising surrounding euca-
lyptus plantations as a protective “storage” for
beehives is one form of co-operation between
agriculture and forest industry in the country. In
addition to the piloting beekeeping project, major
co-operation projects on company land take
place with local beef and milk producers.

SHu T T ERSTOCk G A b R i E L PE R E i R A


Interview Brazilian Carolina Graça, is something similar to yours here in Scan-
dinavia. There are Brazilians who go in the
33, is one of the sustainability natural forests to collect fruit and seeds, for

A talk with experts at Stora Enso. We example. More typically people go for leisure
activities in forest parks, if there is one near the

a woodpecker
invited her for an interview in city. However, I have to say that unfortunately in
a damp Nordic forest during the past many Brazilians did not know how to
utilise forests in a sustainable manner. Luckily,
her work trip to Finland last know-how and attitudes have improved a lot.
autumn. Also, when it comes to the Brazilians’ relation-
ship with the fast-growing tree plantations, it’s
Text Joni Mäkitalo good to remember that they cover less than
Photo Jenni-Justiina Niemi, Visuamo Oy one percent of the national territory.

W
hen Carolina Graça In your opinion, what makes a sustainable
studied Agriculture company?
Engineering at the The most sustainable company is not neces-
University of São sarily the one with the largest sustainability
Paulo, the students department. In an ideal situation, the whole
used to refer to company “breathes” sustainability. However,
Forestry Engineering it can’t be just a feeling, either. You need tools
students as “woodpeckers”. and techniques to manage all of your proj-
“Nowadays, I’m much closer to a ‘wood- ects, and to create new ideas for and ways of
pecker’ than many of them,” she says, smiling. continuous improvement. I think Stora Enso’s
The forestry sustainability professional success in international indexes measuring
and mother of Nicolas, soon four years old, sustainability performance shows that we do a
joined Stora Enso Latin America last June. Her lot of things right. There is naturally a lot to do
work days, either at the São Paulo office or in and many aspects where we can improve, but
the field, revolve around Stora Enso’s global I believe there is the right sustainability attitude
responsibility issues in Brazil and Uruguay. in the company. This is a good foundation to
build on.
How do you yourself maintain a sustainable
lifestyle? What led you to come over to Scandinavia?
Believe it or not, I try to adopt industry best This trip is part of our top-talent training
practices also in my daily life outside of work. programme in Latin America in which I am
For instance, I recycle, and live in a way participating. The programme includes
that consumes energy wisely. I also discuss working periods at the headquarters and in
sustainable living habits with my family. different business units. The idea behind the
programme is for local professionals to gain
What do you think about the Nordic forests? knowledge on Stora Enso’s corporate culture,
In addition to the Brazilian forests, I have way of doing business, challenges faced, and
been to forests in France, Germany, Canada Group strategy.
and USA, but this is my first visit to forest in
Scandinavia. What especially caught my atten- What new elements has Stora Enso’s
tion is the scale: in Central Europe, the forests Scandinavian background brought to
are more fragmented than here in Scandinavia. sustainability work in South America?
I was travelling by train from Helsinki city to One of the main benefits of being an inter-
Sharing knowledge
Imatra city, and the forest in between felt national company is that you can learn from
“In an ideal situ-
endless, as rows of trees kept rolling past on organisations in other countries, as best
ation, the whole
both sides. practices can be shared globally throughout
company ‘breathes’
the Group. Stora Enso brings the latest
sustainability,” says
In addition to the native forests, South European sustainability trends and practices
Carolina Graça,
America has fast-growing tree plantations to South America, while also learning from
Sustainability, Stora
on former pasture land. How would you South America. It’s a vice versa transaction.
Enso Latin America.
describe the people’s relationship with the For example, Stora Enso’s Arapoti Paper Mill in
forests? Brazil is frequently visited by people from other
That depends a lot on the region. In the regions units due to Arapoti’s exemplary employee
where you have native forests, the relationship safety performance.


A
t home, taking out the everyday of environmental awareness among youngsters A cupful of
garbage of an average Finnish is already high. It’s easy, however, to introduce innovation
household, I realise that much these ideas in other geographical areas, as Stora Enso has
of what I am carrying will once well,” notes Kuusipalo. recently expanded
again end up at the landfill. This According to the professor, people usually its selection of
is mostly because of the high amount of plastic choose a particular type of package based biopolymer-coated
among the trash, as there are few possibilities on its price. Thus far, consumers have had to packaging boards
for recycling the material in my neighbourhood. pay slightly more for packaging made from in order to meet
Hence, just like the two before, also the renewable materials compared to their plastic growing demand.
third plastic bag of the week gets thrown into alternatives. Kuusipalo believes pricing is As a result
the largest of the waste containers, the one for mostly a question of volume: as the demand for of many years
mixed waste. renewable and sustainable packaging grows, of research and
If recycling plastic is complicated, expensive, prices will fall. development work,

Plastic
or, as in many countries, simply not organised biodegradable
at all, is the only way to reduce the amount of coating options are
plastic waste to stop using plastic altogether? A compostable plastic now available for
This is exactly what the British-Finnish movie However, giving up plastic completely sounds a number of Stora

fantasies
director John Webster and his family did. somewhat utopian. In some ways, plastic is Enso board grades
The Websters went to the extreme, and still unbeatable as a material. For example, a used in cups, plates,
tried to live without oil for a year. As oil is paperboard package containing liquids or food trays and cartons.
used in its production, plastic was also on the has to be coated with a thin layer of plastic One of the
family’s list of banned materials. Many of the to protect the contents against damage from company’s innova-
moments Webster captures on film turn into light, oxygen, humidity, grease or heat. But, tions is a paperboard
tragicomedy as the family desperately seeks as it turns out, plastic can also be made from cup that has more
We are surrounded by a material alternatives to plastic packaging for the most something else besides petroleum. to it than first meets
called plastic. But what do we really mundane of items such as fish or toilet paper. “Biopolymer is compostable and biode- the eye.
The family actually ended up making their own gradable and it is used, for example, to coat
know about it? toothpaste. paper cups or packaging for frozen foods.
Text Jussi Palmén Biopolymer can also be manufactured from
renewable materials. When combining this with
Why not wood? paperboard, you have a product made entirely
We have come to regard plastic as the stan- of renewable materials,” Kuusipalo explains.
dard material used in a multitude of things Accoding to Kuusipalo, traditional plastic
around us. Is there really no alternative? Let’s still has a slightly better water and water
ask someone who knows. vapour transmission than biopolymer. However,
We spoke to Jurkka Kuusipalo, professor biopolymer can already surpass traditional
of paper converting and packaging technology plastic in some critical properties, such as the
at the Tampere University of Technology, ability to withstand greasy substances. For all
Finland. The institute is known for strong capa- its current uses the properties of biopolymer
bilities in studying plastics. are outstanding. And through technological ● 100%
“If we look at data on the materials used advancement, these can still be improved biodegradable
in the manufacture of consumer packaging upon, the professor believes. ● Breaks down natu-
over the last couple of years, a visible trend “Biopolymer-coated products can already rally to humus and
of increasing use of renewable raw materials be produced using the same machinery as carbon dioxide when
emerges,” says Kuusipalo. products coated with traditional plastic. There recycled properly
This means that packages for CD cases is no big difference regarding production. In ● Renewable wood
or ready-made food are more and more the packaging industry, interest in biomaterials fibre as primary raw
commonly made of paperboard and other has been growing of late, and I believe it will material
wood-based materials. This is not revolutionary continue to do so.” ● Coated with
or unheard of as such, but what could be, is When it comes to recycling, bioplastics biopolymer
the way the share of renewable materials in have one significant advantage over traditional ● Provides enduring
packaging might grow in the future. ones: thanks to being compostable and biode- shelter for the liquid
“Particularly the young are well aware of gradable, bioplastics can be recycled together inside
the many different aspects of responsible with food waste. ● Used for serving
consumption. There are signs indicating that beverages at the
in the future the demand for sustainable and Finnish pavilion at
recyclable packaging will grow, especially in the 2010 World Expo
Europe and the United States where the level in Shanghai
S H u T T E R S T O C k / M i LT T O n


Saving
T
rekking along a path in the rain-
forest, we push aside a leafy
branch, and one of the oldest

rainforest
trees in the region comes
into view. A chorus of birds
chirps rather cautiously in the
surrounding humid forest.
“It takes ten people standing hand in hand
to cover this tree’s circumference,” notes
Veracel is helping local biodiversity in Brazil Gildevânio Pinheiro, our guide, leaning against
the leafy giant.
while producing over a million tonnes of pulp We are at the Veracel Station, a rainforest
from plantation trees each year. At Veracel, we conservation area of more than 6 000 hectares
in the state of Bahia, Brazil. The Veracel Pulp
see how environmental, economic and social Mill, a joint venture between Stora Enso and
benefits can all come together in modern pulp Fibria, owns and maintains the reserve as part
of the joint venture’s rainforest protection and
production. regeneration programme.
Text Joni Mäkitalo Photos Eduardo Moody Pinheiro, together with his team of seven,
is in charge of supervising the area, which still
faces many environmental challenges, such as
poaching of endangered species.
“What is really important is that we talk and
spread information about the environment in

Bahia, Brazil
The location of
Stora Enso’s and
Fibria’s joint rain-
forest initiative.

Rainforest Veracel Pulp Mill
conservation Favourable climate
Guided tour at conditions help to
Veracel Station intro- make this mill the
duces to the region’s best pulp mill in the
biodiversity. world.


local communities,” says Pinheiro, who has the growth of cities, industries and agriculture. tracts of native forest in southern Bahia had “Unemployment became a severe problem.
lived in the region for more than twenty years. For the most part, however, rainforests in been clear-cut, as had happened in so many To many, the arrival of Veracel was a sign of
“Younger generations better understand the the region remained intact up until the 1950s other parts of coastal Brazil before. renewed hope for the local economy. And the
importance of protecting biodiversity, and are when saw mill companies started to show up. Originally, the Atlantic rainforest biome people living here have indeed benefitted in
able to teach their elders about it. People are all The region’s economy was born around this reached all the way to northern Argentina and many ways.”
the time becoming more and more aware of the industry, and an additional economic boost eastern Paraguay, forming a wide stretch of
need to protect the environment.” came with the completion of a new highway, rainforest along the Brazilian coast. Today, only
constructed through the region’s rainforests in seven percent of Brazil’s Atlantic rainforests Pastoral eucalyptus
the 1970s. The new road improved logistics and remain. These tracts are conserved by public Landowners in the region converted their
Forests that once were made it easier for people to move in the area in and private initiatives. deforested land properties to other uses,
The Veracel Mill is located in the southern search of work opportunities. After so much of the rainforest had been especially cattle ranching. To this day, pasture
part of Bahia, in the cities of Eunápolis and “At that time, the region lived solely from clear-cut, the region’s economic situation remains a dominant land use form in southern
Belmonte, 50 kilometres inland from the wood,” says Gelton F. de Freitas Jr., Secretary became dire. Bahia.
Atlantic shore. Eucalyptus plantations for the of the Environment for the city of Eunápolis. “Cocoa plantations used to be an important Eucalyptus planting began here at the Secretary of
mill spread across ten municipalities. This is From seeds to “In the past, environmental preoccupations employer, but they were hit by a plague which end of the 1980s, supported by governmental the Environment
where the raw material for the annual produc- dense forest were not a high priority.” nearly destroyed the region’s whole economy,” incentives. Sergio Murillo works
tion of over a million tonnes of pulp is grown. The forest’s oldest Large-scale saw mill industry in the region says Sergio Murillo, Secretary of the Environ- Veracel started to buy pasture land and for the city of Itagi-
In the past century, the coast of Brazil has trees are of bewil- started to decline when the rainforests began ment for Itagimirim, a city where Veracel now experiment with planting trees on it in 1991. mirim, where Veracel
witnessed a loss of rainforest to accommodate dering proportions. to run out. By the end of the 1980s, almost all grows eucalyptus. Results from the experiments soon indicated grows eucalyptus.

Rainforest regeneration at
veracel takes place at a rate of
400 hectares planted per year.


that the area possesses exceptional qualities expand their living habitat and increase overall can be seen as a large biological shield. The
making it ideal for wood production. biodiversity. forest works as a buffer zone keeping fires and
According to Otávio Pontes, Vice President, “The best method of forest restoration is plant diseases away from plantations. Forests
Stora Enso Latin America, steady rainfall is natural regeneration: you put up fences around also reduce the need for pesticides, because
one of the reasons for high plantation produc- an identified area and simply allow the rain- eucalyptus pests’ natural enemies live in the
tivity in the region. Most agricultural crops forest to return,” says Eliane Anjos, Sustain- rainforest and thus help thwart the problem.
require a regular dry season for high yields, but ability Manager at Veracel. The existing Atlantic rainforests play a
eucalyptus trees flourish thanks to the steady The method is effective as long as existing significant role also in maintaining the hydrolog-
rainfall. rainforest and seed nests can be found suffi- ical balance of coastal Brazil by, for example,
“The fact that it rains here all around the ciently close for the seeds to be carried by wind protecting springs.
year fits perfectly to tree farming. Another and animals to the area being revived.
important factor is the temperature, which also “However, this is often not the case, and
remains stable throughout the year.” then the only remaining option is to plant the Sustainable income
The construction of the mill started in 2003, rainforest,” notes Anjos. Steady rainfall Fruit juice made from local produce at the
with pulp production beginning two years later Veracel replants rainforests with 80 different “The fact that it rains Veracel Station’s visitor centre is a heavenly
in 2005. tree species per hectare. Before the actual all year round here source of refreshment after trekking in the rain-
Stora Enso considers the Veracel Mill planting, seeds must be collected and nursed, fits tree farming forest, which in itself acts as a buffer against
currently the best pulp mill in the world. This is and the seedlings transported to the area. In all, perfectly,” says the day’s heat.
in large part thanks to the climate conditions the ongoing process of transforming pastures Otávio Pontes, The station is frequently visited by groups
which make the area especially well suited to to rainforests employs 60 people. Vice President at from local schools and communities that
growing eucalyptus. “As in all our operations, we support local Stora Enso participate in varied rainforest activities with
The environmental laws of Brazil set strict companies in rainforest regeneration, and thus Latin America. an educational twist. “We are trying to make it
requirements for landowners in the state of stimulate the local economy,” says Anjos. possible for local people to rebuild their rela-
Bahia; one-fifth of every land property must By the end of 2010, the company had School visits tionship with the rainforest,” states Anjos.
be reserved for conservation. The Veracel already planted 4 000 hectares of rainforest, help to spread The station also supports academic work.
Mill, however, conserves more than half of its with the annual rate of replanting being 400 the message of In addition to directly financing research, the
land for environmental, social and agricultural hectares. conservation in the station offers guide and logistics services for
reasons. When construction on the mill began, Anjos says that, from one perspective, community. research purposes in the rainforests.
the company noticed that the hilly landscape the company’s work for the rainforests and Veracel is also involved in an ongoing
and regional climate conditions allow conserva- biodiversity is a way of ensuring public approval Taking a stroll camera trap survey of the region’s medium-
tion exceeding legal requirements. for the pulp mill. Additionally, rainforests bring Sustainability sized and large mammals, such as pumas and
“Veracel decided to plant eucalyptus only on direct benefits to eucalyptus plantations. They manager Eliane jaguars. Other projects for increasing biodiver-
plateaus, where planting and harvesting can be balance out the ecosystem and provide other Anjos tries to help sity include an attempt to revitalise the region’s
done most efficiently,” Pontes says. environmental services, as well. local people to harpy eagle population, which has almost
All valleys, riversides, slopes and other Otávio Pontes from Stora Enso says that, benefit from forest vanished in the region.
especially contoured areas are conserved. solely from a farming point of view, a rainforest conservation. In addition to environmental benefits, Vera-
The decision to do so has resulted in a mosaic cel’s rainforest restoration efforts try to meet
landscape on the company lands, with the area cultural and social needs.
of environmental reserves exceeding that of “When local people are able to benefit from
eucalyptus plantations. forest conservation, they are also better able
to give practical value to biodiversity, and even
turn it into a business opportunity for them-
Biodiversity reinforcement “The best method of forest selves,” Anjos notes.
Life on the company’s 105 000 hectares As an example, she mentions a local
of conservation area is varied. Most of the restoration is natural community that has built a sustainable crafts
protected areas are rainforests that are business based on a rediscovered traditional
recovering from logging activity in the region’s regeneration: you put up material, piaçava.
past. Intact, primary forests can also be found, “Historically, the thinking in the region was
especially in the area’s deep valleys. fences around an identified guided by the notion that you cannot combine
A part of the company’s protected land is economic development with environmental
former pasture. In these areas the company is area and simply allow the protection. Veracel has shown that you can and
attempting to restore the former rainforest. that, in fact, it is the only way.”
Veracel takes part in a governmental rainforest to return.”
effort in Brazil that aims to connect coastal Please visit www.storaenso.com/rethink
-Eliane Anjos
forest remnants with rainforest corridors. to view a short film on the subject.
By connecting tracts of rainforest, the aim
is to help flora and fauna move from one
forest remnant to another, and thereby both


Do you see sustainability in business ON BUSINESS Publication Paper

as just the latest passing fad?

T
Take a trip to Langerbrugge Mill,
he waste paper mountains loom
where recycling of local paper waste grey and violet in the back of a mill
and using bioenergy have seen shed. Their silhouette imitates the
Pyrenees so well that you could
the business through difficult times. imagine being on a French ski
holiday. Walking closer, the headlines become
Text Eeva Taimisto Photos Teemu Kuusimurto
visible: Weather forecast for Belgium: cold.
Footballer’s secret girlfriend apologises.
The mountains are stored at Stora Enso’s
Langerbrugge Mill in Belgium, on the outskirts
of the city of Ghent. The mill produces news-
print and uncoated magazine paper by using
solely recycled paper as raw material. This
strategy, along with the mill’s other sustain-
ability efforts, has been a recipe for success
even in the most difficult of times.
And times, they have been hard. Over-
supply, escalation of costs with shrinking
prices and declining customer demand have

Taste for waste
taken their toll on the whole publication paper
industry. Layoffs and mill closures in Europe
have become frequent news, and the future
remains uncertain.
Mills thriving in this kind of an environment
attract curiosity. At Langerbrugge, profitable
business has been built on sustainability,
recycling community waste, and producing
bioenergy. For sceptics who find eco-friend-
liness to be a mere marketing strategy for
companies enjoying good times, Langerbrugge
Mill presents a tough call.

The perfect spot
Great business, however, did not come
without change. Back in 1997 when the mill
still used wood as raw material, things did not
look promising. It was only after rethinking
the whole idea of the mill that it became truly
profitable. In Langerbrugge, change started
from raw materials.
Looking at the sheer size of the waste paper
piles, it makes perfect sense the mill decided
to stop using wood. The waste paper smells
slightly, a truck has just dropped it in the ware-
house. A magazine is lying on the floor, with dry
One man’s garbage ketchup stains on the cover as if to remind that
is another’s raw only a few weeks ago it belonged to somebody.
material, as the That somebody lives nearby. Within 300
Langerbrugge Mill kilometres from the mill gates reside about 80
demonstrates. million people and 70% of the purchase power
of Europe. Inside this same radius are the big
cities of Europe: Paris, London, Amsterdam and
Brussels, along with the Ruhr area in Germany


Stora Enso Rethink 2010

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