This Finnish-based integrated paper, packaging, board and wood products business employees over 44,000 people in 40 countries. However, it is fair to say that continued expansion has led to a number of growing pains along the way.
As a member and advocate of the UNGC, Article 13 is committed to profiling innovative activities of fellow members to encourage peer learning and joined up thinking amongst UNGC participants.
Stora has been a signatory of the United Nations Global Compact since 7 March 2002.
Business Insight
The global paper and forestry product leader was finding it more and more difficult to gain stakeholder trust as it grew in size and expanded operations across the globe.
Aware of the need to maintain and build trust with a diverse range of stakeholders Stora Enso developed an assessment tool for identifying risks that could affect its projects.
Transformation
The tool was applied to a plantation operation in Guangxi, China, first acquired in 2002. As well as identifying the risks associated with the project, the process, undertaken in 2005, provided a powerful demonstration to stakeholders as to how the company is managing its environmental and social impacts.
Critical to the process was the fact that the tool, the Environmental and Social Impact Assessment (ESIA), was implemented by an external party. In this case the assessment was undertaken by the United Nations Development Programme (UNDP) China and the full results were made public.
The report detailed the opinions of local residents and other stakeholders on potential mitigation measures and development priorities surrounding Stora’s plantations.
The result, the Guangxi Sustainability Agenda and action plan, concentrating on a number of issues initially identified in particular the ongoing engagement of the local villagers and biodiversity concerns.
Importantly, the report identified a number of development areas beyond Stora’s areas of expertise. The identification of these areas allowed Stora to build long-term partnerships with like-minded organisations with the necessary expertise to work on these developmental areas.
End Game
By undertaking such a thorough process Stora was able to gain the trust of not only local residents but also investors in its Chinese operations. The final report was a powerful communication tool with key stakeholders and it provided a vital external view of where the company should concentrate its sustainability activities. The report has also contributed to Stora’s continued expansion in the area.
Along with the additional transparency and credibility this use of a ‘fresh pair of eyes’ identified issues that may have otherwise been missed.
No major environmental issues were identified with all potential impacts able to be mitigated through good plantation management practices in which the company has a good track record.
However, major challenges were identified in the engagement of local residents. By recognising this through the application of the tool Stora was able to more proactively and constructively contribute to the social development of these communities.
But the benefits were even more far reaching; UNDP, who have since entered into a long-term partnership with Stora has been able to apply the model for large scale commercial and public reports for other projects within China. This knowledge transfer has been vital in promoting more sustainable practices in China.
References:
- "An inspirational guide to implementing the UNGC"
- Stora Enso website
Also in this feature:
© Article 13 – March 2008
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