STORA ENSO 2002 ENVIRONMENT RESOURCES

Transcription

1 STORA ENSO 2002 ENVIRONMENT RESOURCES

2 Environmental and social responsibility policy Responsible business Stora Enso is committed to developing its business towards ecological, social and economic sustainability. These tasks are recognised as shared responsibilities within Stora Enso enabling a continuous improvement of our operations. Eco-perspective Stora Enso s objective is to supply customers with products and services that satisfy various needs related to printed communication, packaging and construction purposes. These products are mainly produced from renewable raw materials, and are recyclable and safe to use. The concept of product life cycle guides our environmental activities and provides the framework for our efforts. We expect the same commitment from our suppliers and partners so that at every stage, from raw material to the end product, the impact on the environment will be minimised. Social respect As an international company, Stora Enso acknowledges its role as a model company in the global, national and local society. Our attitude shall be characterised by respect for the cultures, customs and values of individuals and groups in countries where we operate. When developing our business to earn credibility, we will comply with and when necessary go beyond the requirements of national standards and legislation. Transparent interaction In order to continuously strengthen our operations and develop environmental and social issues in a sustainable way, Stora Enso considers an open discussion and interaction with all stakeholders, both governmental and non-governmental, as fundamental. 2 ENVIRONMENT AND RESOURCES 2002

3 CONTENTS FINANCIAL HIGHLIGHTS OPENING WORDS On the right road For the fourth year in a row Stora Enso has been listed on the Dow Jones Sustainability Index. We are proud to be ranked as the leading forest products company on this index. I see this endorsement as clear proof that we are heading in the right direction, says DCEO Björn Hägglund. 5 6 ENVIRONMENTAL INVESTMENTS AND COSTS Restructuring assets to benefit the environment In 2002, Stora Enso spent a total of EUR 250 million on environmental investments and costs, compared to EUR 235 million in Total environmental investments amounted to EUR 66 million, while environmental costs totalled approximately EUR 184 million. WOOD & FIBRE Advanced tools and harmonised goals Systems for tracing the origin of wood were further improved in all forest units during Important progress in this work has been achieved through the harmonisation of environmental and social responsibility principles for wood procurement operations across the Nordic Countries, Russia, the Baltic Countries and Central Europe MANAGEMENT 8 Award-winning performance The European Union has commended Stora Enso for systematically implementing Eco-Management and Audit Schemes (EMAS). By the end of the year, 42 mills and two wood procurement units were EMAS-registered, and altogether 95% of the Group s pulp, paper and board production capacity was covered by EMAS and/or ISO environmental management systems. This represents an increase from 87% in A special conservation programme for the endangered white-backed woodpecker is included in the ecological landscape plans for company-owned forests in Sweden. Totally Chlorine-Free or Elemental Chlorine-Free pulp? 13 Plantations research co-operation in China 13 Concentrating on core business 14 Stora Enso has transferred some hectares of its Finnish forests to Tornator, a new company which will concentrate on silviculture. Simultaneously, approximately hectares of forest was auctioned off in the USA. Wood procurement organisation 14 Frequently asked questions 14 ENVIRONMENT AND RESOURCES

4 CONTENTS Langerbrugge Mill s new paper machine is due to be in use by the end of May WATER RESOURCE EFFICIENCY Chemicals 21 Residuals 22 TRANSPORT ENVIRONMENTAL PERFORMANCE Prompt responses ensure compliance 22 In most cases limits of environmental permits were fulfilled by comfortable margins. The few infractions were followed by corrective measures. Resource utilisation 24 Langerbrugge Mill to run on recovered fibre 15 Stora Enso s new paper machine in Belgium is strategically located close to markets and substantial sources of recovered paper. The new machine will increase Stora Enso s utilisation of recovered fibre. WOOD PRODUCTS ENERGY Wood-based fuels renewable energy assets The share of bio-fuels in Stora Enso s energy production increased to 62%, from 60% in Emissions of carbon dioxide from the combustion of fossil fuels were reduced in spite of increased production Trends 25 In spite of increases in the production of pulp, paper and board, most emissions totals were down at Group level. The most notable improvement was an absolute reduction of 25% in the landfilling of solid waste. Sulphur dioxide emissions were also reduced significantly by 11% overall. Discharges of Nitrogen and Phosphorus were down 4% and 8% respectively in specific terms. Discharges of AOX were also down by 6% in specific terms. Mills 26 EXAMINATION REPORT CONTACTS GLOSSARY MISSION VISION VALUES Varkaus is one of nine Stora Enso mills that provide heat for local district heating systems. Read more in the Web report 4 ENVIRONMENT AND RESOURCES 2002

5 FINANCIAL HIGHLIGHTS Responsibility &Performance S tora Enso is an integrated forest products company producing magazine papers, newsprint, fine papers, packaging boards and wood products, areas in which the Group is a global market leader. Stora Enso sales totalled EUR 12.8 billion in The Group has some employees in more than 40 countries in five continents and about 15 million tonnes of paper and board annual production capacity. Stora Enso s shares are listed in Helsinki, Stockholm and New York. Stora Enso serves its mainly business-to-business customers through its own global sales and marketing network. A global presence provides local customer service. Customers are large and small publishers, printing houses and merchants, as well as the packaging, joinery and construction industries worldwide. The main markets are Europe, North America and Asia. The Group has production facilities in Europe, North America and Asia. Its modern production capacity and the good integration between raw material, energy and efficient processes ensure production continuity. Stora Enso is committed to developing its business towards ecological, social and economic sustainability. This commitment is demonstrated through its values and its environmental and social responsibility policy, and has been recognised by selection for the Dow Jones DJSI World and DJSI STOXX sustainability indexes since they were launched in In 2002 Stora Enso had the highest score in this sustainability ranking among forest products companies in Stora Enso is also included in the FTSE4Good index. Key figures Sales, EUR million Operating profit, EUR million excluding non-recurring items, EUR million % of sales Profit before tax and minority interests, EUR million excluding non-recurring items, EUR million Profit for the period, EUR million Capital expenditure, EUR million Interest-bearing net liabilities, EUR million Capital employed, EUR million Return on capital employed (ROCE), % excluding non-recurring items, % Return on equity (ROE), % Debt/Equity ratio Earnings per share, EUR excluding non-recurring items, EUR Cash earnings per share, EUR excluding non-recurring items, EUR Equity per share, EUR Dividend per share, EUR * Payout ratio, % Market capitalisation, EUR million, 31 Dec Deliveries of paper and board, tonnes Deliveries of wood products, m Average number of employees *) Board s dividend proposal For more detailed information on the 2002 results, please see page 35 onwards in the Financials 2002 report. ENVIRONMENT AND RESOURCES

6 OPENING WORDS On the right road Stora Enso s position as the leading forest products company in the Dow Jones Sustainability Index reflects continual improvements in our environmental performance, and recognises our efforts to balance the various aspects of sustainability. W ith global product markets growing continuously, the need to find a good balance between the conservation and the sustainable use of material resources becomes even more crucial. The forest products industry has a unique position in this respect, since it is fundamentally based on renewable resources. As a leading forest products industry company, Stora Enso s vision for the future is to realise the potential of this advantageous position in a responsible and transparent way, in close partnership with our stakeholders. Investments produce results Summing up our progress during 2002, I am pleased to note that in many areas we have continued to improve our environmental work. One factor behind these improvements is the way we have continued to develop our asset structure. Significant recent investments are now bearing fruit. We are continuing to implement our strategy for environmental improvement, in order to boost our environmental performance through projects which are also economically viable, thanks to the increases in productivity and product quality they bring about. I believe economic growth is a basic pre-condition for environmental improvement, since without economic sustainability, attempts to achieve social and environmental improvements will ultimately prove futile. More progress in implementing management systems Although technical issues form the basis for improvements, the decisive factor in our environmental achievements is how we make the most of our personnel s commitment to the environment. Our unrivalled implementation of environmental management systems has been crucial in this respect. I am proud to report that during the past year we reached 95% coverage for third-party-verified environmental management systems in our pulp, paper and board production capacity (up from 87% in 2001). This is thanks to our North American mills, who have worked purposefully to introduce and certify environmental management systems in an impressively short period. Formal certification of the remaining uncertified North American mills is scheduled for January 2003, and this will accomplish Stora Enso s goal of ensuring that the Group s entire pulp, paper and board production is covered by third-party-verified environmental management systems. I am fully convinced that these efforts are strengthening our environmental work even further by directing our efforts towards addressing local needs and conditions especially since the quantitative goals for our environmental management systems are unit-specific and mill-specific. I am also pleased to note great improvements in resource utilisation, reflected in a dramatic 25% reduction in the landfilling of solid waste, achieved through locally focused efforts driven by environmental management systems. 6 ENVIRONMENT AND RESOURCES 2002

7 Climate a local and global issue One issue with far-reaching implications both locally and globally is climate change. Mitigating climate change is a global challenge that must be met with local measures, determined in both legal and technical terms by local conditions. Seen in a wider perspective, forest industry operations comprise both sources of carbon dioxide emissions, and mechanisms for absorbing and storing carbon. Compared to products made from competing materials, our products often have clear benefits in terms of their climatic impact. This gives the forest products industry a distinct advantage as society attempts to combat climate change. Even while we await political decisions on national and international regulation systems, we must independently continue to improve our energy-efficiency, and replace fossil fuels with bio-fuels. The share of biofuels in our own energy production has risen to 62%, from 60% in 2001, and emissions of carbon dioxide from the combustion of fossil fuels were reduced in spite of increased production. We are also closely following the development of new flexible mechanisms related to emission limits and emissions trading. Our North American division, for example, is a founding member of the Chicago Climate Exchange. Ensuring fibre comes from sustainable sources One of our most important operational issues is to guarantee that flows of raw materials and additives originate from acceptable sources. Our fibre strategy which is a key instrument in this context where wood, purchased pulp and recovered paper are concerned covers all the relevant aspects of quality, cost and sustainability. Important progress in this work has been achieved through the harmonisation of wood procurement principles across the Nordic Countries, Russia, the Baltic Countries and Central Europe. These principles stress the importance of documenting the origin of fibre, and also provide detailed guidelines for everyday operations. Our traceability system has already been integrated into thirdparty-verified management systems in Sweden, Finland and Russia. In order to communicate our achievements in sustainable forest management to our customers, we use four different forest certification systems each in its own national or regional context. We are also supporting efforts to attain the mutual recognition of credible certification systems. Stora Enso is already one of the largest consumers of recovered fibre in Europe and when the new newsprint machine at Langerbrugge is taken in to operation during spring 2003, our position will further improve. Langerbrugge Mill s location in Belgium is optimal, considering the close proximity of markets and a plentiful supply of recovered paper. Reporting locally, regionally and globally Another important aspect of our environmental work is transparency and accountability. The many environmental reports published each year by individual mills, divisions and units complement the reporting done at Group level. The social aspects of sustainability are now for the first time included in the Group reports, and are presented in the Corporate Social Responsibility section of this year s Company Report. We have also improved the web version of the Environment and Resources report, allowing us to present updated background information flexibly. Sustainable development is often said to be a journey rather than a destination. I also subscribe to this viewpoint. For the fourth year in a row Stora Enso has been listed on the Dow Jones Sustainability Index, and we are now proud to be ranked as the leading forest products industry company on this index. The Group is also again listed on the FTSE4Good Index, and I see such endorsements as clear proof that we are heading in the right direction. Björn Hägglund DCEO, Chairman of the Stora Enso Environment Committee ENVIRONMENT AND RESOURCES

8 MANAGEMENT Award-winning performance Stora Enso was ranked the most sustainable forest and paper company by Dow Jones in 2002, while the EU also commended the Group for systematically implementing EMAS. Stora Enso had the highest total score among paper and forest companies in the Dow Jones sustainability indexes, DJSI World and DJSI STOXX. Stora Enso has been included in these indexes ever since their launch. The Group s unreserved commitment to environmental management systems has always been mirrored in Stora Enso s DJSI profile. The greatest improvement in the Group s profile compared to the previous year s results concerns the social dimension of sustainability. Liisa Käär and Tuija Suur-Hamari in Brussels in June receiving official recognition from the EU for Stora Enso s implementation of EMAS. ENVIRONMENTAL INVESTMENTS AND ANNUAL COSTS Making more use of recovered paper The most important single investment during 2002 concerned construction work at Langerbrugge Mill, due for completion in spring The new paper machine at Langerbrugge will exclusively use recovered fibre. Total investments will amount to EUR 500 million, of which 40% is classified as environmental investment. Hylte Mill has invested EUR 22 million in a new waste water treatment plant installed during Stora Enso has invested a total of EUR 9 million on water treatment measures at Varkaus Mill, while Sachsen Mill invested EUR 3 million in rebuilding the mill s waste water treatment plant. In 2002, Stora Enso spent a total of EUR 250 million on environmental investments and costs, compared to EUR 235 million in This spending includes capital expenditure as well as operating and maintenance costs, but excludes interest and depreciation. Total environmental investments amounted to EUR 66 million, while environmental costs totalled approximately EUR 184 million. Estimates indicate that a total of 8 ENVIRONMENT AND RESOURCES 2002

9 EU praise for commitment to EMAS The European Union has commended Stora Enso for showing early commitment to EMAS (the EU s Eco-Management and Audit Scheme), as well as for the Group s systematic implementation of the scheme. The EU also thanked Stora Enso Timber for pioneering web-based EMAS reports, after Stora Enso Timber s Nordic sawmills published web-based reports in June Stora Enso s commitment to environmental management systems ensures that each unit focuses on continuous improvements related to the most significant environmental issues. Many units have already been certified for as long as 5 6 years. During this period, environmental loads have consistently decreased, in spite of increases in production (see page 25). There is a clear linkage between the systematic application of environmental management and concrete results. Further increasing coverage for EMAS and ISO By the end of 2002, 95% of the Group s pulp, paper and board production capacity was managed under third-party-verified ISO and/or EMAS environmental management systems. The increase from 87% in 2001 was achieved through the adoption of ISO environmental management systems at six of the nine former Consolidated Paper mills in the US. The remaining three mills also implemented ISO environmental management systems in December 2002, with formal certification scheduled for January This will accomplish Stora Enso s goal of ensuring that the Group s entire pulp, paper and board production is covered by third-party-verified environmental management systems. All Stora Enso Timber s Nordic sawmills also comply with the ISO and EMAS standards. The next goal is to implement environmental management systems in all the Group s Central European sawmills during 2003, with a view to eventual EMAS registration. Formal management systems now also cover most of the Group s major wood procurement organisations (see page 12). Stora Enso North America was granted ISO certification for its wood procurement operations in the US in Implementation of non-verified environmental management systems has continued in sales and service units. One example is Stora Enso Nederland, the Group s sales office in Amsterdam, where a new environmental programme has been based on a detailed assessment of the environmental aspects of the unit s work. The programme aims to further improve the status of the unit by updating existing environmental procedures. EMAS and marketing The EMAS Regulation encourages companies to develop EMAS into an effective marketing tool. Stora Enso is actively involved in this process and has suggested several practical ways of reaching this goal. Although the present regulation does not allow manufacturers to place the EMAS logo directly on products or their packaging, national authorities are required to publicise EMAS registration to allow consumers to prioritise EMAS-registered manufacturers. Stora Enso has expressed interest in participating in the European Commission s EMAS logo pilot study. Stora Enso has also been involved in testing Paper Profile (PP), a uniform product declaration scheme for environmental information. Product specific declarations have been sent to customers on demand, together with the relevant mills EMAS-statements. Everybody s business Operational management is responsible for environmental performance at each organisational level. The Environment Committee, chaired by the Deputy CEO, serves as the overall coordinating body for Group-wide environmental issues. The CEO and the DCEO make decisions on strategic and policy issues. Stora Enso Environment, headed by the Senior Vice President, Environment, closely co-operates with and supports Group-wide business operations through regional operational teams for Finland, Sweden, Continental Europe and North America. A team of environmental specialists provides the Group with vital expertise. Read more in the Web report EUR 55 million will be required to cover future corporate environmental liabilities. Clean-up work on contaminated soil in landfill at Huuna, where traces of PCB, furan and dioxin compounds had been detected, was finished during The related implementation also includes remediation projects such as decommissioning activities at the Falun Mine, the cleanup of mercury contamination at the former chloralkali plant at Skoghall and the final safe disposal of mercury at Skutskär harbour. There are currently no active or pending legal claims concerning environmental issues which could have a material adverse effect on Stora Enso s financial position. The following Stora Enso units are due to update their environmental permits between 2003 and 2007: Anjalankoski, Heinola Fluting, Imatra, Kemijärvi, Kotka, Keräyskuitu, Lahti, Heinola, Oulu, Pankakoski, Pori Board Mill, Summa, Varkaus, Veitsiluoto, Honkalahti Sawmill, Kitee Sawmill, Port Hawkesbury, Corbehem, Soustre, Baienfurt, Kabel, Langerbrugge, Maxau, Sachsen, Wolfsheck, Berghuizer, Celbi, Balabanovo, Barcelona, Páty, Ala Sawmill, Falun Redpaint, Fors, Grycksbo, Hylte, Kvarnsveden, Nymölla, Skoghall, Skutskär, Biron, Corenso North America, Duluth, Kimberly, Niagara, Stevens Point, Whiting and Wisconsin Rapids Paper and Pulp Mills. The Wisconsin Rapids Water Quality Center and Water Renewal Center will also be updating permits during this period. ENVIRONMENT AND RESOURCES

10 WOOD & FIBRE Advanced tools and harmonised goals Systems for tracing the origin of wood were further improved in all forest units during In addition to ensuring that wood comes from sustainable sources, such systems provide one of the most effective ways to combat illegal logging. T he Group s Northern European wood procurement units harmonised their wood procurement principles in All units operating in the Nordic Countries, Russia, the Baltic Countries and Central Europe now apply similar environmental and social responsibility principles to all sources of fibre. Ensuring raw material procurement is sustainable, and minimising environmental impacts remain the core elements of the new principles, but greater emphasis is now also given to social responsibility and communications. Broadening thirdparty-verification to cover all sources of wood will be the next step towards ensuring full compliance with these principles. Social, ecological and economic sustainability are the cornerstones of all of Stora Enso s wood procurement. Stora Enso s policies and principles form the common basis for all fibre procurement operations. Traceability systems are among the most vital tools for the practical implementation of these policies and principles. Traceability in three steps New complementary traceability guidelines have been adopted by Stora Enso Skog, Stora Enso Metsä, Stora Enso Forest Central Europe and Stora Enso Timber s wood procurement operations. The guidelines set out a framework for regional and national systems. Traceability systems cover fibre origin data from the cutting area all the way until the fibre first enters Stora Enso s possession, at a terminal, mill or transport point. The guidelines set out three distinct operational phases for traceability systems contract clauses, the registration and storage of wood origin data, and audits to verify the whole system. An efficiently operating wood traceability system improves awareness of the importance of environmental and social values amongst all stakeholders right along the wood supply chain. One significant example of how this work has been done in 2002 is Stora Enso Skog s traceability system, which now covers all the wood coming into Stora Enso s possession in the Baltic Countries. Meanwhile, Stora Enso Timber and Stora Enso Forest Central Europe have also introduced traceability systems, which will be developed for eventual external certification. Ecology and economy In Sweden, ecological landscape plans now cover the entire area of 1.4 million hectares where they are applicable some 87% of Stora Enso Skog s productive forest holdings. Areas of special biodiversity value are set aside from wood harvesting activities. The estimated cost of this nature conservation work corresponds to a 10% reduction in annual cutting, meaning that each year in Sweden Stora Enso voluntarily refrains from harvesting wood worth approximately EUR 9 million, for the benefit of biodiversity. Watercourses are among the valuable biotopes in wood procurement areas. Stora Enso Skog has developed special guidelines to instruct machine operators how best to cross watercourses. In Finland, Stora Enso Metsä received the best score for the sixth con- 10 ENVIRONMENT AND RESOURCES 2002

11 Stora Enso s Anne Härkönen checks kvartal markings in a Russian forest stand. Kvartals are grid units of about 2 km 2 which form the backbone of Russian forest management systems, and are also utilised in Stora Enso s traceability system. secutive year in the Tapio Forestry Development Centre s national ecological quality inventories of felling operations in The factors investigated included the preservation of valuable biotopes, the quality of water protection in wood harvesting, the consideration given to landscape values, and standards of forest management. In Canada, Stora Enso Port Hawkesbury signed a forest management agreement with the Unama ki Institute of Natural Resources, which represents the indigenous Mi kmaq people of Cape Breton Island. Stora Enso is assisting with forestry training and capacity building, while Mi kmaq traditional ecological knowledge will be used to improve the sustainability of forestry. Wiping out illegal logging Unfortunately not all actors in the international wood market apply the same rules. Illegal logging is harmful to the whole sector and creates distortions in pricing. It is also impossible to control the working conditions of illegal harvesters employees. Stora Enso does not co-operate with wood suppliers who fail to comply with Stora Enso s principles. Traceability systems are among the most effective methods to combat the unsustainable use of forest resources, as well as illegal logging. Stora Enso insists that partners everywhere comply with their respective national legislation, as well as Stora Enso s own policies and principles. Read more in the Web report Key figures The Group used a total of 41 million cubic metres (solid under bark) of wood in 2002, almost three-quarters of which was procured in Western Europe. Most of the wood from Europe and North America comes from small private forest holdings, larger state-owned holdings and land leased by the Group. Stora Enso owns 45% of Veracel, a company that manages plantations in Brazil, and 67% of the PT Finnantara Intiga plantation company in Indonesia. Veracel has approximately hectares of eucalyptus plantations, and Finnantara hectares of acacia. Stora Enso s forest operations in Celbi, Portugal, cover hectares of Eucalyptus globulus, and account for 50% of Celbi Mill s wood consumption. ENVIRONMENT AND RESOURCES

12 WOOD & FIBRE Audited systems ENVIRONMENTAL MANAGEMENT SYSTEMS Stora Enso Forest Stora Enso Forest Sweden (Stora Enso Skog) Stora Enso Forest Finland (Stora Enso Metsä) Stora Enso Forest Central Europe Stora Enso North America Stora Enso North America Forest Resources, USA Stora Enso Port Hawkesbury Limited, Woodlands Unit, Canada Plantations Stora Enso Celbi, Portugal PT Finnantara Intiga, Indonesia Veracel, Brazil EMAS ISO EMAS ISO EMAS ISO ISO ISO ISO ISO ISO Wood Supply Unit audited in December 2000 registration granted in 2001 Wood Supply Unit audited in December2000 certification granted in 2001 Ludvika Management Region certified in 1999 the first Finnish forestry organisation approved for an EMAS test register in 1999 transferred to the main EMAS register in connection with the revision of EMAS regulations new EMAS statement published in 2002 certification granted in 1998 renewed in 2001 after monitoring audit EMAS registration and ISO certification processes are to be started up certification granted in early 2002 certification audited for renewal in December 2001 and granted in January 2002 certification covers planning, harvesting, silviculture, road construction on companycontrolled lands and all wood transportation includes a programme designed to encourage principle wood suppliers to adopt good stewardship practices certification granted in early 2001 renewed in February 2002 certification process started in 2002; completion due during 2003 certification process started in July 2001; due to be granted in early 2003 includes forestry management activities and will cover planting, plantation maintenance, harvesting and wood transportation by truck and by barge FOREST CERTIFICATION SYSTEMS Stora Enso Forest Stora Enso Forest Sweden FSC (Stora Enso Skog) Stora Enso Forest Finland (Stora Enso Metsä) Stora Enso Forest Central Europe Stora Enso Timber Stora Enso North America Stora Enso North America Forest Resources, USA Stora Enso Port Hawkesbury Limited, Woodlands Unit, Canada FFCS PEFC FSC PEFC PEFC FFCS FSC SFI SM SFM All Stora Enso Skog s forest holdings in Sweden are FSC-certified. The Ludvika management region was the first area in Sweden to be granted FSC certification, back in All the transportation of wood from Stora Enso s forests to measuring stations at mills is chainof-custody certified. Part of Norrsundet Mill s pulp production also has FSC chain-ofcustody certified pulp. Stora Enso Metsä participates in the Finnish Forest Certification System (FFCS), which is endorsed by PEFC. The chain-of-custody system covers all fibre sources from the forests to the mills. The unit is covered by PEFC chain-of-custody certification. The Management Region Maxau also has FSC chain-of-custody certification. Bad St. Leonhard was Timber s first sawmill in Austria to receive PEFC certification, in The remaining sawmills in Austria and the Czech Republic are scheduled to receive PEFC certification during All sawmills in Finland have PEFC certification. Ala, Gruvön and Linghed Sawmills in Sweden have FSC certification, as does Imavere Sawmill in Estonia. The Sustainable Forestry Initiative SM (SFI) certification of Stora Enso North America Forest Resources, USA, covers wood procurement practices and procedures. A Public Audit Summary of Sustainable Forest Initiative SM (SFI) certification findings is available to stakeholders. Sustainable Forest Management (SFM) certification of Stora Enso Port Hawkesbury Limited Woodlands Unit, Canada was completed in December 2001, meeting both CSA and SFI standards. The CSA standard is applied to company-controlled lands, and the SFI standard is applied to all land management and wood procurement activities. Port Hawkesbury is the first forestry operation in North America to be approved for both CSA and American Forest & Paper Association (AF&PA) environmental certification. PEFC The Pan-European Forest Certification Scheme, which endorses the FFCS. The SFI SM and CSA Z809 systems are also PEFC members. FFCS The Finnish Forest Certification System. FSC Certification by the Forest Stewardship Council. SFI SM The Sustainable Forestry Initiative of the American Forest & Paper Association. CSA Z809 Forestry certification criteria of the Canadian Standards Association Program for Sustainable Forest Management. 12 ENVIRONMENT AND RESOURCES 2002

13 WOOD & FIBRE Pulp Plantations Totally Chlorine-Free or Elemental Chlorine-Free? Stora Enso has 15 pulp mills, all but one of which use the Elemental- Chlorine-Free (ECF) process. Nymölla Sulphite Pulp Mill uses a Totally Chlorine-Free (TCF) process, which is also used for part of Kemijärvi Pulp Mill s production. No elemental chlorine is used in Stora Enso s mills. The choice of bleaching process is made by each mill to optimise quality, production and environmental impacts. ECF pulp production increased globally by about 17% in 2001 and now has a market share of approximately 75%. TCF production declined slightly, maintaining a small niche market amounting to 5% of world bleached chemical pulp production (AET, May 2002). During the past years extensive research has been carried out to assess how TCF bleaching affects the environment compared to ECF Pulp balance ) 1) Figures are based on production and deliveries during ) Associated company. bleaching. These studies show that both bleaching techniques give equally good results, as long as waste water is treated using modern methods tonnes Short-fibre Long-fibre Fluff Total Production Sunila 2) (50%) Total production Deliveries to own mills External deliveries External purchases Pulp balance Plantations research co-operation in China In China, Stora Enso and the Government of the Guangxi Zhuang Autonomous Region are conducting a pre-feasibility study for industrial-scale plantations and integrated pulp and paper operations. Special emphasis is put on establishing sustainable and environmentally sound working methods. Stora Enso also signed in 2002 an agreement for co-operation in research and development with the Chinese Academy of Forestry in Beijing. This agreement establishes a basis for projects to examine reforestation and the use of plantation wood for paper-making, including the use of native poplar trees. At Veracel, in Brazil, the Eucalyptus genome is being studied together with other Brazilian forestry companies, seven universities and the Brazilian Forest Research Center. Around 500 kg of native tree seeds were also collected under the Atlantic Rainforest Program in Seedlings are to be used to replant or enrich remnants of Atlantic rainforest habitat interspersed between eucalyptus plantations. The harvesting operation at Veracel reached its first million cubic metres in A marine terminal for pulp wood deliveries was also completed. Forest gardens in West Kalimantan, Indonesia, harbour significant plant species diversity, and can be used in the restoration of native lowland rain forest habitats. Forest gardens are also an important source of various forest products for local people, and are actively protected within the PT Finnantara Intiga plantation area. Stora Enso Forest Consulting has been co-ordinating a research project assessing biodiversity management in commercial tree plantations in the tropics. The project was completed in According to research concluded in 2002, people living in the areas leased by PT Finnantara Intiga feel that tree plantations have had a positive impact on their livelihood. Measures taken in these areas have also contributed to conservation by restoring native rainforest species. ENVIRONMENT AND RESOURCES

14 WOOD & FIBRE Concentrating on core business Stora Enso has transferred some hectares of its Finnish forests to Tornator, a new company which will concentrate on silviculture. Simultaneously, approximately hectares of forest was auctioned off in the USA. These divested forests accounted for less than 10% of the Group s annual wood procurement. Stora Enso still owns about 2 million hectares of forest, including 1.9 million hectares in Sweden, where divestment options are being investigated. This type of restructuring is in line with Stora Enso s long-term strategy to concentrate on core business areas. Organisation Stora Enso Northern European Forest Units are Stora Enso Metsä in Finland (including Russia), Stora Enso Skog in Sweden (including the Baltic Countries), and Stora Enso Forest Central Europe. The Stora Enso North America Forest Resources Unit is responsible for wood procurement for the Group s US operations, and the management of company-owned land in Ontario, Canada. The Stora Enso Port Hawkesbury Woodlands Unit is responsible for wood procurement and the management of company land and licensed Crown lands in Nova Scotia, Canada. Stora Enso Timber is one of Stora Enso s core business areas, producing wood products. Sawmills in Austria and the Czech Republic use wood procured by Stora Enso Timber s own wood procurement organisations. Wood for other Stora Enso Timber sawmills in Finland and Sweden is procured by Stora Enso Metsä and Stora Enso Skog, respectively. Frequently asked questions Does Stora Enso buy wood from old-growth forests? Stora Enso does not buy wood from protected areas or areas where protection is planned. According to Stora Enso s wood procurement principles, all fibre sources must be consistent with the key elements of social, ecological and economic sustainability. Definitions of such terms such as old-growth, ancient or intact remain unclear, especially since they are often used in different ways in different contexts. An overview of definitions of these terms can be found in Stora Enso s Environmental Report Does Stora Enso buy illegally harvested wood? Purchasing wood logged without legal authorisation is against the Group s wood procurement principles. Careful documentation of the origin of wood and long-term partnerships with contractors are effective ways to prevent illegal wood entering Stora Enso s possession. In each country, Stora Enso seeks out and promotes the best practices, while also co-operating with authorities to wipe out illegal logging. How does Stora Enso sanction partners who operate illegally? Stora Enso constantly searches for the best and most sustainable practices within the Group s own operations, and insists that partners do the same. It is vital to ensure that the origin of wood can be traced in order to guarantee that the fibre comes from sustainable sources. Where suppliers fail to meet Stora Enso s standards, units may cancel contracts. Suppliers who fail repeatedly in this respect will not be considered for future contracts. What are Stora Enso s global wood procurement principles? According to Stora Enso s wood procurement principles, all fibre sources must be consistent with the key elements of social, ecological and economic sustainability including a full respect for human rights. How does Stora Enso make sure that these principles are followed? The majority of the wood procurement routines used by Stora Enso are covered by ISO and/or EMAS management systems. These systems are audited by independent verifiers to ensure compliance with Stora Enso s wood procurement principles. Does Stora Enso s wood procurement threaten endangered species? Ecological sustainability is a key element of Stora Enso s wood procurement policies. Landscape ecological planning and forest certification systems are examples of working tools used to ensure biodiversity is preserved. Read more in the Web report 14 ENVIRONMENT AND RESOURCES 2002

15 WOOD & FIBRE Recovered fibre Langerbrugge Mill to run entirely on recovered fibre Langerbrugge s new paper machine will increase Stora Enso s utilisation of recovered fibre. Construction of the newsprint line at Langerbrugge Mill in Belgium is progressing as planned, with the new paper machine due to be in use by the end of May The machine will produce tonnes of paper per year from recovered fibre, in line with Stora Enso Newsprint s aim to increase the use of recovered paper as raw material. Langerbrugge Mill is strategically located close to good sources of recovered paper, which will mainly be collected within a 300-kilometre radius. The new newsprint machine will consume approximately tonnes of recovered paper per year. Among other contracts, Stora Enso has signed an agreement with the Dutch recycling co-operative VAOP to purchase 2 million tonnes of recovered paper over the next 10 years to be used at the mill. Long-term contracts will help to even out price fluctuations. Utilisation rate rising During 2002, Stora Enso s production facilities used 2 million tonnes of recovered fibre roughly the same amount as in The utilisation rate in the Newsprint Division in 2002 was 49%, and this will rise to 52% by 2004, when the new line at Langerbrugge will be in full production. This will raise the recovered fibre utilisation rate for the whole Group from 15% in 2002 to 17% in The new newsprint line includes a de-inking plant and a 75 MW bio-fuel power plant. The power plant will use fibrous sludge from the de-inking plant as well as waste water sludge from the mill s waste water treatment plant, and meet 10% of the mill s energy needs. Efficient recovery Varkaus Mill supplies paper to the publishers of Spanish telephone directories, who have a producer s responsibility to recover this paper. Barcelona Mill has renewed its five-year-old contract to collect outdated directories from Spanish households. Used telephone directories are an important raw material source for Barcelona Mill. At Hylte Mill, a new project is examining raw material losses from the de-inking plant, using new on-line measurements and laboratory tests to identify where losses occur. This has already led to an increase in resource efficiency equivalent to tonnes of recycled paper annually. Also at Hylte, 700 tonnes of bale wire have been recovered from the deinking plant for use at a steel-works, rather than ending up as landfill. ENVIRONMENT AND RESOURCES

16 WOOD PRODUCTS ThermoWood has a long life-span thanks to a special heat treatment which ensures that no chemicals are needed to guarantee its durability. Sawmill bridgeheads for Russia and the Baltic Countries New sawmills will promote sustainable wood procurement and the local processing of wood. In 2002, Stora Enso and the owners of AS Sylvester, Estonia s largest wood products and wood procurement company, signed an agreement for Stora Enso Timber to acquire majority ownership of Sylvester. This transaction should be closed during the first quarter of 2003, after approval by the competition authorities. Stora Enso Timber will consequently acquire 66% of the outstanding shares of AS Sylvester s sawmill operations, as well as Sylvester s entire wood procurement operations. Stora Enso Forest Baltic will manage the forest operations and start to formalise and strengthen the traceability system, in order to guarantee the sustainability of fibre sources. The acquisition also includes a commitment to build three new sawmills over the next few years. Stora Enso has also recently decided to build two sawmills in Russia at Pitkäranta and Nebolchi. These new sawmills will promote sustainable wood procurement and the local processing of wood. Replacing non-renewable products Wood products have a role in mitigating climate change, particularly when they are used instead of non-renewable building materials. Wood locks up carbon dioxide during its use, and can subsequently be totally recycled into new products, or ultimately burned to produce bio-energy. Stora Enso Timber has recently been active in product development. ThermoWood and WoodHeart the most notable recent fruits of this work are both based on the natural properties of wood in terms of their resilience and resistance to moisture. ThermoWood undergoes a heat treatment which gives softwood qualities normally only found in hardwoods. Lengthening the life-span of wood products by improving their durability without chemical additives means reduced environmental impacts. WoodHeart products are made out of the cores of logs. They are ideal for windows and doors, since their consistency and durability are vital properties for both indoor and outdoor use. Stora Enso Timber has invested considerably in the latest technology for the manufacture of WoodHeart products at Honkalahti Sawmill. Virtually no waste The environmental impacts related to the production and use of wood products for construction are less significant than those of any competing building material such as steel, concrete or plastic. The environmental profile of wood products is further improved by the fact that not a single speck of raw material is wasted. Sawdust, bark, wood-chips and woodshavings are valuable both as important raw materials for the paper industry, and as bio-fuels. In fact these fibre products generally account for about 48% of the material yield from a log with the other 52% being used to make solid wood products. 16 ENVIRONMENT AND RESOURCES 2002

17 ENERGY Wood-based fuels renewable energy assets Stora Enso intends to make optimal use of its considerable potential to contribute towards mitigating climate change. The best ways to combat climate change are by further increasing the use of wood-based bio-fuels, and by making continuous improvements in energy-efficiency. These aims are given high priority in all investment decisions. Commitment to environmental management systems provides a sound basis for consistent and transparent monitoring of environmental impacts. This year s environmental report is even more detailed than previous reports, as it also includes millspecific CO2 emissions (pages 26 29). Emission figures are given for both renewable and non-renewable energy sources, even though renewable fuels are considered to be CO2-neutral in the Kyoto Protocol. Carbon dioxide is by far the most important greenhouse gas where Stora Enso s operations are concerned, so it is the only greenhouse gas monitored at Group level. Emissions of carbon dioxide from the combustion of fossil fuels have been reduced by some tonnes, in spite of slightly increased production. Notable contributions were made by Imatra Mill, where bio-fuels were used instead of peat, and by Port Hawkesbury Mill, where coal was replaced by gas. Finding ways to exploit bio-fuels Bio-fuels accounted for 62% of the Group s energy production in 2002 (60% in 2001). The most important bio-energy sources are black liquor from chemical pulp production, logging residuals and bark. Stora Enso units are continuously looking for new and more efficient ways to utilise residuals and by-products: At Port Hawkesbury Mill the share of bio-fuels increased by 8% during 2002 and TMP steam recovery increased dramatically from 13% in 2001 to 29% in The boiler now only uses marginal amounts of fossil fuel. Fuel oil and natural gas have been replaced by bark, sludge and sawmill residuals. At Wisconsin Rapids Pulp Mill improvements in bark and wood-waste processing and conveying systems have enabled the increased use of these residuals as bio-fuels. This has led to a 30% increase in the use of bio-fuels in the mill s boilers since the project was implemented in August In co-operation with Svensk Brikett Energi AB, Stora Enso Timber has installed a new facility for producing wood briquettes from shavings and dry chips at Gruvön Sawmill. As well as creating a clean and highly processed fuel, locating briquette production at the planing mill reduces transportation between the sawmill and end-users by approximately a third, since volumes are smaller when transporting briquettes. Tolkkinen Sawmill in Finland purchases its thermal and electrical energy from the local municipal power plant, which is situated on the mill site. In 2002 this power plant started to run exclusively on bio-fuels, including bark and other wood residuals supplied by the sawmill. TOTAL CONSUMPTION OF FUEL IN STORA ENSO S ENERGY PRODUCTION IN 2002, TJ Bio-fuels 62% Gas 20% Coal 9% Oil 6% Peat 3% Total TJ Bio-fuels already account for some 62% of the Stora Enso Group s total annual fuel consumption of TJ. Combined heat and power production covers 33% of the Group s total electricity consumption of 22.5 TWh. ENVIRONMENT AND RESOURCES

18 ENERGY Bark, sawdust, black liquor and logging residuals are all important wood-based energy sources. During 2002 Stora Enso found new ways to use these CO2-neutral bio-fuels. Stora Enso North America completed its first round of energy-efficiency audits during 2002, following similar procedures to those applied earlier in European units. It is vital that continuous improvements are sought in everyday operations, as can be seen from the case of Stevens Point Mill, where electricity consumption per tonne of product has been reduced by 3% through installing new energyefficient lighting fixtures, and by shutting down non-essential equipment. Sawmills in general have many good opportunities both to use biofuels to meet their own energy needs, and to provide cost-efficient energy solutions more widely within the Group. Taking advantage of new market mechanisms Stora Enso is both a large user of energy and a large producer of electricity and heat generated from bio-fuels. These aspects of the Group s operations make it vital to follow and understand emerging market mechanisms related to climate change. Stora Enso has therefore resolved to participate actively in such initiatives. Stora Enso s North American operations are to participate in the Chicago Climate Exchange (CCX), which aims to create an active marketplace to reduce the cost of carbon dioxide emission reductions. This participation will provide the company with valuable knowledge and experience regarding the design and operation of a market-based greenhouse gas emissions banking and trading programme. The CCX is a self-regulatory exchange that will administer a voluntary, pilot greenhouse gas emission reduction and trading programme in North America and Brazil. An unprecedented private-sectordesigned process has produced an agreement, known as the Chicago 18 ENVIRONMENT AND RESOURCES 2002

19 Stora Enso is creating new CO2-neutral new products to replace products based on non-renewable raw materials. CD/DVD disc box sliders made of carton also keep customers transportation costs down, since they are lighter than the conventional plastic boxes. Accord, that lays out the rules of this emissions trading programme. The CCX is unique among emerging greenhouse gas cap and trade programmes in that it is comprehensive, and involves multiple industries, emission sources and carbon sinks. The core of the CCX is a voluntary commitment taken by members to reduce greenhouse gas emissions during the years to a level below a historical baseline. This commitment covers multiple gases and multiple industrial sectors, is international in scope, and allows the use of offsets such as soil and biomass sequestration, landfill methane combustion and emission reductions in developing countries. Stora Enso North America has calculated the division s CO2 emissions through 2006, and confidently expects to be in compliance, especially when future energy efficiency improvements are factored in. Learning for the future Since January 2002, Stora Enso has sold green electricity and green certificates from Finland and Sweden through the Nordic Power Exchange Nord Pool to the Netherlands. Stora Enso s primary aim in this trading has been to gain practical experience related to commercial carbon flows and green energy. This helps the company to prepare for the utilisation of new market mechanisms such as emissions trading, clean development mechanisms and joint implementation projects. Another benefit is that all the mills involved have gone through very detailed verification processes, allowing them to get an even better insight into their own practices. The mills involved in the sale of green electricity to the Netherlands are Enocell, Imatra, Kemijärvi, Kotka, Norrsundet, Oulu, Skutskär, Summa, Sunila, Varkaus and Veitsiluoto. Nymölla Mill has additionally sold green electricity generated from biofuels to Birka Energy in Stockholm. Electricity procurement and consumption in the Group in 2002, TWh Finland Sweden Europe North Asia Total (excl. Finland America and Sweden) Group resources 1) CHP (Combined heat and power) Hydropower Nuclear power Other sources Subtotal External purchasing Total procurement Stora Enso mill consumption External sales ) Group resources = resources owned directly or indirectly by Stora Enso Much of the electricity purchased externally by the Group is purchased through long-term contracts. This allows Stora Enso to stabilise the effect of potential market fluctuations. Electricity procured from spot markets is also secured against price fluctuations. In line with the Kyoto Protocol, CO2 emissions related to purchased electricity are not included in the Group s aggregate emission figures. ENVIRONMENT AND RESOURCES

20 WATER Cleaner water around Hylte Mill Hylte Mill was the setting for the year s most significant waste water treatment project. A new waste water treatment plant has dramatically reduced discharges into the River Nissan from Hylte Mill. Thanks to Hylte s new waste water treatment plant, discharges of oxygen-demanding substances (COD) into the River Nissan fell by approximately 20% during Surveys have revealed that the mill does not have any significant impact on oxygen levels downstream. Unpleasant odours have sometimes bothered the mill s neighbours, but the adoption of the latest treatment methods has helped solve this problem. Sludge is now treated separately, before it is finally incinerated in a boiler to provide energy for the mill s pulp and newsprint machines. Hylte Mill has invested EUR 22 million in the new waste water treatment plant. The cleaning process now consists of one mechanical stage, two biological stages and a chemical treatment stage. Marine symbiosis The Maretarium aquarium centre stands beside Stora Enso s Kotka Mill on the shores of the Baltic Sea. The 50 Finnish fish species kept at Maretarium all depend on the high quality of the water in their tanks, which is taken from the sea just a short distance away from Stora Enso s Kotka Mill. Maretarium provides facilities for researchers from the University of Helsinki and the Finnish Game and Fisheries Research Institute. A special classroom can be reserved by local schools and kindergartens for lessons about aquatic ecosystems and the role of water in paper production. Maretarium was opened in May 2002 and has already welcomed almost visitors. Stora Enso is one of Maretarium s main sponsors. Mermaid to help the Baltic Sea One of the main aims of the WWF (the World Wide Fund for Nature) concerning the Baltic Sea is to reduce environmental loads, particularly the excess nutrient loads that lead to eutrophication a major problem in the Baltic. The WWF is currently conducting a special Baltic campaign Operation Mermaid in co-operation with various universities, research institutes, and Stora Enso as one of the major corporate sponsors. In addition to curbing eutrophication, the campaign aims to reduce the risk of oil accidents and increase awareness of environmental issues around the Baltic Sea, in order to protect endangered species and their habitats. Read more in the Web report 20 ENVIRONMENT AND RESOURCES 2002

21 Steps taken in 2002 The upgrading of Varkaus Mill s effluent treatment plant was completed. The main target of reducing phosphorous loads entering Lake Haukivesi was successfully achieved. Two-stage mechanical sludge dewatering and pneumatic transportation started up in May, allowing sludge to be used as bio-fuel by the mill, instead of going to landfill. The total cost of this project was EUR 9 million. At Sachsen Mill, the rebuilding of the waste water treatment plant was completed, and new process steps were put into operation. Thanks to a new cooling system, waste water temperature limits can be met all year round. Since the new anaerobic step is a closed system, odorous emissions can be avoided as well. The resultant biogas is utilised in the mill s sludge incinerator to replace natural gas. These investments involved a total sum of about EUR 3 million. New pulp washing equipment at Enocell Oy has reduced effluent emissions, with Chemical Oxygen Demand loads cut by 8%, in spite of a 9% increase in production. At Heinola Fluting Mill a tertiary flotation plant was incorporated in the waste water treatment process to ensure that permit conditions are consistently met, particularly where Phosphorus and suspended solids are concerned. The new flotation plant has been in use since November. Waste water from Tainionkoski Mill s board and paper machines has been directed through chemical treatment in the Kaukopää Mill area, as well as undergoing mechanical clarification. Thanks to this arrangement, Phosphorus, COD and BOD loads have decreased. Veitsiluoto Mill completed the enlargement of a biological treatment plant by building another secondary clarifier, and also improved the cooling of waste water before biological treatment. These measures help control total suspended solids. A new project aims to reduce COD loads in treated waste water from Maxau Mill before it is discharged into the River Rhine. This project should be completed in spring Evaporation capacity has been increased at Kemijärvi Mill, and waste water loads from the evaporation plant will be reduced. RESOURCE EFFICIENCY Chemicals Eco-efficiency through recovery Pulping chemicals can be used many times over. Many valuable chemicals, such as the sodium and sulphur compounds used in pulping, can be efficiently recovered and recycled. The black liquor formed during the cooking process contains pulping chemicals and dissolved material from the pulpwood. The organic material in this liquor is incinerated in recovery boilers. Residual chemicals are then recovered to be used again in the cooking process. Small quantities of fresh sodium hydroxide or sodium sulphate may be added to the cooking process to compensate for minor losses of chemicals. Paper-making chemicals cannot be recovered at the production stage, since most of them are incorporated in the end product. Any small amounts of non-recoverable chemicals remaining in waste water are cleaned out at mills waste water treatment plants. Boosting stability and quality In paper and board manufacturing, chemicals are needed for cooking, bleaching and improving the efficiency of production. They can also be used to stabilise processes and product quality. The suppliers of these various chemicals are evaluated under a system known as COMPASS (Company Management Performance Assessment). The COMPASS database today includes 160 chemical suppliers and 287 manufacturing units. Almost 90% of the 73 suppliers assessed during 2002 exhibited suitable environmental management capabilities and were approved. Continuous monitoring of chemicals Suppliers provide key information on their products on chemical safety data sheets. At each mill site, chemical safety is the responsibility of named and trained chemical contact persons. Stora Enso utilises various databases to make the necessary safety information easily available for everyone who handles or uses chemicals. Read more in the Web report ENVIRONMENT AND RESOURCES

22 RESOURCE EFFICIENCY Residuals TRANSPORT Making the most of material resources Stora Enso strives to use raw materials as efficiently as possible in production. This eliminates waste as well as cuts costs. Every effort is made to find productive uses for any residual materials. Biomass is increasingly being used to generate heat and electricity, for instance; while other ways to use residuals, such as for soil improvement in farmland and as protective covering for landfill sites, take advantage of their material properties. Such improvements in the utilisation of raw materials can greatly reduce the need for landfill. During 2002, several projects and investments have involved turning various residuals and by-products into useful raw materials. Oulu Mill s new EKO plant started operation in March The EUR 3 million plant reduces the consumption of the filler used in papermaking by up to 50%, and cuts landfill by approximately 40%. Calcium carbonate is recovered from waste water sludge and returned to the paper-making process. The remaining sludge consists mainly of pulp fibres and a small amount of calcium carbonate. When calcium carbonate is burned, it absorbs the sulphur dioxide generated in the combustion of the plant s peat fuel, reducing sulphur emissions. Stora Enso has become a partner in Finncao, a company which investigates ways to reuse residuals such as sludge and ash in order to reduce the amount of waste sent to landfill. Fors, Nymölla, Skutskär, Grycksbo and Kvarnsveden Mills are using combinations of residuals and by-products as covering materials for municipal landfills and their own landfills. The Water Renewal Center, the joint waste water treatment plant for the Stevens Point and Whiting Mills, has started to spread waste water treatment residuals on farmland as fertilisers and for soil amendment. Since the programme began, the quantities of waste water treatment residuals going to landfill have been reduced by 80%. When determining daily driving routes, the new system considers our tight schedules, the various wood assortments needed by the mills, the location of roadside timber stacks, and even road conditions, explains Markku Pulkki, one of Stora Enso s transport suppliers. PERFORMANCE Infractions and corrective measures Prompt responses ensure compliance In the vast majority of cases, the requirements of the environmental permits regulating operations at Stora Enso s units were fulfilled by comfortable margins. As well as resolving any formal infractions, Stora Enso units register any complaints, and initiate appropriate measures to resolve any problems. Complaints received during 2002 most commonly concerned noise and odour problems. Air emissions Niagara Mill received a Notice of Violation from the Wisconsin Department of Natural Resources (WDNR) alleging that the mill had failed to implement certain monitoring and reporting provisions of the air operating permit. The mill had itself disclosed these deficiencies, which have since been corrected. The Niagara Mill also received a Notice of Violation and a Finding of Violation from the federal Environmental Protection Agency, alleging 22 ENVIRONMENT AND RESOURCES 2002