Stora Enso has underscored its sustainability-first strategy with the release of its Annual Report 2025, demonstrating how regenerative forestry and decarbonization are now fully integrated into its financial and operational framework. The company reported net sales of €9.4 billion for the fiscal year, supported by a disciplined focus on high-margin renewable packaging and wooden construction solutions.
A defining element of its “Transition 2030” strategy is the alignment of funding with environmental outcomes. Sustainable financing now accounts for 45 percent of total group funding, reflecting a growing reliance on green bonds and sustainability-linked credit facilities to support long-term transformation, the sustainability report 2025 of Stora Enso indicated.
Decarbonization Progress Aligned With Science-Based Targets
Stora Enso, under the leadership of CEO Hans Sohlstrom, has delivered a 27 percent absolute reduction in Scope 1 and 2 greenhouse gas emissions compared to its 2019 baseline, maintaining a strong trajectory toward its target under the Science Based Targets initiative to achieve a 50 percent reduction by 2030. This progress has been driven by a significant shift toward carbon-neutral energy sources, which now represent 83 percent of the company’s total energy mix.
At the same time, the company has expanded its focus on Scope 3 emissions across the value chain, achieving a 15 percent reduction in emissions intensity per tonne of purchased goods and services. This has been enabled by the implementation of a comprehensive supplier sustainability code of conduct that now covers 96 percent of total supplier spend.
Regenerative Forestry and Biodiversity Integration
The company has advanced beyond conventional sustainability practices by embedding a regenerative forestry framework that actively enhances biodiversity and ecosystem resilience. In 2025, Stora Enso achieved full certification across all its owned forest assets, while 91 percent of wood supplied to its mills was covered by third-party verified chain-of-custody certification.
To strengthen biodiversity monitoring, the company introduced 15 science-based indicators across its forest holdings in Sweden and Finland, focusing on habitat creation, deadwood retention and long-term ecosystem health. A strategic divestment of 175,000 hectares of Swedish forest land further improved financial flexibility, reducing the net debt to adjusted EBITDA ratio to 2.8. This move allows greater focus on its remaining 1.2 million hectares and supports preparations for a potential forest business demerger by 2027.
Circular Innovation Driving Renewable Materials Growth
Innovation remains central to Stora Enso’s transformation into a renewable materials company. The group reported that 94 percent of its product portfolio is now technically recyclable, reflecting strong alignment with circular economy principles. In 2025, the company accelerated the commercialization of Lignode, a wood-based carbon material designed for battery anodes, while expanding its PFAS-free formed fiber packaging solutions through increased production capacity at its Oulu site.
The company is targeting full recyclability across its product portfolio by 2030, supported by an Eco-Design framework that evaluates the environmental impact of all new product innovations before they reach the market.
Safety, Workforce Diversity and ESG Performance
Operational safety remains a key priority, with the company reporting a Total Recordable Incident Rate of 5.2, continuing its steady progress toward a zero-harm objective. Workforce diversity also improved, with women now representing 31 percent of management positions, reflecting ongoing progress toward gender balance targets set for 2030.
Stora Enso’s sustainability leadership has been recognized through multiple global benchmarks. The company retained its EcoVadis Platinum rating and secured a place on the CDP Climate A List, while also achieving a AAA rating from MSCI ESG and a strong score of 4.6 out of 5 from FTSE Russell. These ratings reflect robust governance, transparency and performance across environmental, social and governance parameters.
Strong Sustainability Metrics and Global Reporting Alignment
The company reported a 61 percent reduction in Scope 1 and 2 emissions and a 38 percent reduction in Scope 3 emissions, reinforcing its climate leadership. Its product portfolio achieved a 94 percent recyclability rate, highlighting its commitment to circularity and renewable materials.
Sustainability reporting is aligned with major global frameworks, including the European Sustainability Reporting Standards, the GHG Protocol with assurance for Scope 1 and 2 emissions, and SASB standards for forest management and packaging. The company also ensures interoperability with IFRS S1 and S2 standards, enhancing consistency and comparability in sustainability disclosures.
Strategic Outlook Focused on Circular Bioeconomy
Stora Enso’s 2025 performance reflects a clear and consistent strategy centered on renewable materials, circular innovation and climate resilience. With strong emissions reductions, high recyclability rates and top-tier ESG ratings, the company continues to position sustainability as a core driver of long-term value creation. Its integrated approach combining regenerative forestry, green financing and advanced biomaterials innovation places it at the forefront of the global transition toward a low-carbon circular bioeconomy.
FASNA SHABEER
