Stora Enso Rethink 2010

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Stora Enso Rethink 2010

  1. 1. RethinkStora Enso 2010Saving rainforest Find out how Veracel is helping local biodiversity in Brazil. 18Trees, food and bombs In Laos, business meets corporate social responsibility in a concrete way. 42A 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. 14Insert Stora Enso Facts & Figures 2010 Stora Enso—1
  2. 2. 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, Finlanda 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.comto materials. Contents Editorial Why do we and you need to rethink? 4 Phenomenon Plastic floats 6 Column The customer always has a choice! 8Who knows if one day renewable materials and Stora Enso nanotechnology will be used to build emission free R&D Responsible choices 9vehicles? What we do know is that renewable materials have the power to push things forward. That is why Strategy The magic moment 11Stora Enso has redefined itself from a European forest company to a renewable materials company operating in Phenomenon Beekeeping in Uruguay 13growth 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
  3. 3. Editorial Rethink will become a movement insideWhy 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 ofJEnni-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 fromJouko Karvinen action for every person in our company – from more outsourcing to expert partners and clear a consumer angle rather than looking fromCEO 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 v4—Rethink Stora Enso—5
  4. 4. PhenomenonPlastic floatsA 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 natureof plastic creates a serious problem. The Trash Vortex is a gyre of marine litterin the North Pacific Ocean. In the gyre – esti-mated to be as large as the state of Texas – themass of floating plastic is in parts six timesgreater than the mass of plankton. It has been estimated that over a millionseabirds and 100 000 marine mammals andsea turtles are killed each year by ingestion ofplastics, or entanglement. Some plastics in the gyre will not breakdown 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 L6—Rethink Stora Enso—7
  5. 5. 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 AJEnni-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 choseChairman of theStora Enso Board ofDirectors 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.8—Rethink Stora Enso—9
  6. 6. The most important Strategy The magic momentthings grow betweenthe trees.During the Vietnam war over two million tonnes of bombs were dropped on Laos. That is why building aStora Enso eucalyptus plantation always starts with bomb clearing. What is left between the trees is workablefarmland, safe for local farmers to grow food and commercial plants. This is not charity, but beneficial to bothsides. 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. 10—Rethink Stora Enso—11
  7. 7. To me the beauty of our Rethink is that it is ● Our values: Phenomenonmore than a mere slogan. Rethink is a change • Create: Creativity is the engine that drivesprocess, 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 athe 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 theT his is what we promise our stakeholders: Stora Enso is the global rethinker of responsibility to succeed.the packaging, paper and wood productsindustry. We always rethink the old andexpand 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 identityinnovative solutions based on renewable achieve something real, something true to our The new logomaterials. 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 commitmentIt 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 ourthe different businesses, all over the world. end products, as well as sustainability cycles. planet by developingIt is an unstoppable change process, which, He came across the cycle shape in different innovative solutionsin the end, will carve a totally new identity for forms, again and again. Finally he had a closer based on renewablethe 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 ofthings 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 cyclesmaterials. 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, thebased 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 A12—Rethink Stora Enso—13
  8. 8. 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 thea 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 bestation, the whole both sides. practices can be shared globally throughoutcompany ‘breathes’ the Group. Stora Enso brings the latestsustainability,” says In addition to the native forests, South European sustainability trends and practicesCarolina Graça, America has fast-growing tree plantations to South America, while also learning fromSustainability, 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.14—Rethink Stora Enso—15
  9. 9. 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 ShanghaiS H u T T E R S T O C k / M i LT T O n16—Rethink Stora Enso—17
  10. 10. Saving T rekking along a path in the rain- forest, we push aside a leafy branch, and one of the oldestrainforest 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,” notesVeracel 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 rainforestfrom plantation trees each year. At Veracel, we conservation area of more than 6 000 hectares in the state of Bahia, Brazil. The Veracel Pulpsee how environmental, economic and social Mill, a joint venture between Stora Enso andbenefits can all come together in modern pulp Fibria, owns and maintains the reserve as part of the joint venture’s rainforest protection andproduction. 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.18—Rethink Stora Enso—19
  11. 11. 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 theimportance of protecting biodiversity, and are when saw mill companies started to show up. Originally, the Atlantic rainforest biome people living here have indeed benefitted inable 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 ofneed 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 theirForests 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, pasturepart 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 southernBelmonte, 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 ofmill 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 Environmentwhere the raw material for the annual produc- dense forest were not a high priority.” nearly destroyed the region’s whole economy,” incentives. Sergio Murillo workstion 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 Veracelwitnessed 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.20—Rethink Stora Enso—21
  12. 12. that the area possesses exceptional qualities expand their living habitat and increase overall can be seen as a large biological shield. Themaking 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. ForestsStora Enso Latin America, steady rainfall is natural regeneration: you put up fences around also reduce the need for pesticides, becauseone of the reasons for high plantation produc- an identified area and simply allow the rain- eucalyptus pests’ natural enemies live in thetivity 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 aeucalyptus 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, andremains 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 thewith pulp production beginning two years later Veracel replants rainforests with 80 different “The fact that it rains Veracel Station’s visitor centre is a heavenlyin 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 againstcurrently 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 groupswhich make the area especially well suited to to rainforests employs 60 people. Vice President at from local schools and communities thatgrowing 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 itrequirements 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, theland for environmental, social and agricultural hectares. conservation in the station offers guide and logistics services forreasons. 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 ongoingand 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’sdone 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 meetlandscape on the company lands, with the area cultural and social needs.of environmental reserves exceeding that of “When local people are able to benefit fromeucalyptus 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 localof conservation area is varied. Most of the restoration is natural community that has built a sustainable craftsprotected areas are rainforests that are business based on a rediscovered traditionalrecovering 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 wasespecially 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 environmentalformer pasture. In these areas the company is area and simply allow the protection. Veracel has shown that you can andattempting 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 Anjosforest remnants with rainforest corridors. to view a short film on the subject.By connecting tracts of rainforest, the aimis to help flora and fauna move from oneforest remnant to another, and thereby both22—Rethink Stora Enso—23
  13. 13. 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 dryOne man’s garbage ketchup stains on the cover as if to remind thatis another’s raw only a few weeks ago it belonged to somebody.material, as the That somebody lives nearby. Within 300Langerbrugge Mill kilometres from the mill gates reside about 80demonstrates. 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 Germany24—Rethink Stora Enso—25

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