Stora Enso s Human Rights Assessments 2014 Assessments by Danish Institute for Human Rights (DIHR)

Transcription

1 Stora Enso s Human Rights Assessments 2014 Assessments by Danish Institute for Human Rights (DIHR) Ulla Paajanen-Sainio, Head of Investor Relations, Stora Enso

2 It should be noted that certain statements herein which are not historical facts, including, without limitation those regarding expectations for market growth and developments; expectations for growth and profitability; and statements preceded by believes, expects, anticipates, foresees, or similar expressions, are forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of Since these statements are based on current plans. estimates and projections, they involve risks and uncertainties which may cause actual results to materially differ from those expressed in such forward-looking statements. Such factors include, but are not limited to: (1) operating factors such as continued success of manufacturing activities and the achievement of efficiencies therein, continued success of product development, acceptance of new products or services by the Group s targeted customers, success of the existing and future collaboration arrangements, changes in business strategy or development plans or targets, changes in the degree of protection created by the Group s patents and other intellectual property rights, the availability of capital on acceptable terms; (2) industry conditions, such as strength of product demand, intensity of competition, prevailing and future global market prices for the Group s products and the pricing pressures thereto. price fluctuations in raw materials, financial condition of the customers and the competitors of the Group, the potential introduction of competing products and technologies by competitors; and (3) general economic conditions, such as rates of economic growth in the Group s principal geographic markets or fluctuations in exchange and interest rates. Stora Enso 05 February

3 Today s Agenda 8.30 Welcome words, Ulla Paajanen-Sainio, Head of Investor Relations, Stora Enso 8.35 Stora Enso s approach to Human Rights, Karl-Henrik Sundström, CEO, Stora Enso 8.45 Stora Enso Human Rights Assessment results by Danish Institute of Human rights Cathrine Poulsen-Hansen and Mads Holst Jensen and Stora Enso assessments Pakistan and Laos, Terhi Koipijärvi, Acting EVP Global Responsibility, Stora Enso 9.15 Q&A on the assessment 9.30 Stora Enso s conclusions from the assessment and next steps, Karl-Henrik Sundström, CEO, Stora Enso Q&A Stora Enso 05 February

4 Stora Enso s approach to Human Rights Karl-Henrik Sundström, CEO, Stora Enso

5 Why did we do Human Rights Assessment? Global operations and our commitments call for robust human rights approach Our diverse and global operations mean human rights impacts on people Key to realise our Purpose and live our Values Assessments to understand impacts, before actions Stora Enso has committed to several international frameworks that emphasise integration of human rights into business This study is a baseline, a starting point Stora Enso 5 February

6 Human Rights Assessment 2014 Overall process description and timeline Timeline Q1 Jan-Mar 2014 Q1 Q2 Mar-Jun 2014 Q2 Q3 June-Sep 2014 Q3 Q4 Oct-Dec 2014 & After Scope and plan Build up capacity Act and assess Compile results Project phase Setting up project team and internal alignment. Pre-assessment information sessions Group wide. Pre-assessment workshops and trainings for > 80 unit level. coordinators. Finalize assessment tools with DIHR. Unit level assessments using DIHR s customized tool covering all units. External site visits at selected units by FWC. Mapping local stakeholders. DIHR quality check and compile results. Summary reports for all assessments. Preparation for action plans in External support at Laos (BSR), Guangxi (DIHR) and Pakistan Assessments in India, Brazil, Uruguay with HQ/Divisional support FWC site visits to 13 units in China, Estonia, Latvia, Poland and Russia Stora Enso 05 February

7 Human Rights Assessment 2014 Assessments supported by different parties The scope of the assessment included 93 entities in 22 countries - All industrial operations - All countries where we own or manage forests/plantations/land Danish Institute for Human Rights (DIHR) Human Right assessment tool developed for the group Consolidation of Human rights assessment results in the group Mapping for human rights impact assessment in Guangxi Business for Social Responsibility Human Rights assessment in Laos trial plantations operations Independent Human Rights Expert Frank Seier, Right2Respect Pakistan site visit and stakeholder interviews Support in using self assessment tool in Pakistan Fair Working Conditions (FWC) FWC is a non-profit audit and assessment organisation based in Ireland, works globally onditions.ie/ FWC site visits to 13 units in China, Estonia, Latvia, Poland and Russia Self assessment with DIHR tool Human Rights self assessment group wide excluding Guangxi and Laos Stora Enso 05 February

8 Stora Enso s Human Rights Assessments 2014 Assessments conducted by The Danish Institute for Human Rights (DIHR) Cathrine Poulsen-Hansen and Mads Holst Jensen

9 WHO WE ARE AND HOW WE WORK - Denmark s National Human Rights Institution - Mandated to work with states and private sector to provide human rights expertise - Worked with business since Engage with business to promote respect for human rights in line with our principles for corporate engagement Monitoring & Reporting Complaints handling Advice to state DIHR Capacity building Awareness & information Advice to business

10 EXERCISING RESPECT: COMPONENTS OF HUMAN RIGHTS DUE DILIGENCE POLICY COMMITMENT TO HUMAN RIGHTS Assessing impacts Communicating and reporting Stakeholder engagement Integration & acting upon findings Tracking & monitoring Process of continuous improvement Access to remedy/grievan ce procedure

11 WORKING TOGETHER DIHR/ STORA ENSO ENGAGEMENT ASSESSMENT TOOL DEVELOPMENT o o o o Self assessment tool Identifying actual and potential impacts Identifying level of compliance with international standards Across 3 areas: Employment conditions, Community impact, Suppliers and other business partners CONSOLIDATION OF ASSESSMENT RESULTS o o Summary reports for each unit level assessment Consolidation of results across units to identify cross-cutting challenges and develop recommendations MAPPING FOR A HUMAN RIGHTS IMPACT ASSESSMENT IN GUANGXI o o o o Covered: Forestry, Board mill construction, Production and maintenance of operational mill Documents review, site visit, SE and stakeholder interviews Mapping of relevant human rights issues and recommendations for SE Guangxi Assessment of community grievance mechanism

12 MAPPING FOR A HUMAN RIGHTS IMPACT ASSESSMENT IN GUANGXI, CHINA GUANGXI ASSESSMENT RESULTS AND RECOMMENDATIONS Forestry: Land contracting being addressed OHS for planting, tending and harvesting contractors being addressed Labour rights/working conditions for planting, tending and harvesting contractors Contractor camp living conditions Migrant workers and families being addressed Wood transport Board mill construction: Goods procurement for mill construction, production and maintenance Mill construction influx management Production and maintenance of operational mill: Operational in 2016 in line with Skoghall mill Crosscutting: Security Community grievance mechanism being addressed

13 Bulleh Shah Packaging in Pakistan Key Findings Stora Enso owns 35% minority stake in Bulleh Shah Packaging (BSP) in Pakistan BSP s staff conducted the assessment with Stora Enso DIHR tool active support from Stora Enso and Right2Respect (site visits) Key Findings: Children s rights actions already ongoing To improve overall human rights awareness More training on prevention of discrimination and harassment Training for security service providers Improve OHS and working hours for contracted workforce Strengthen employee and community grievance channel Bonded labour in agriculture Continue to implement Bulled Shah Packaging s Responsible Sourcing program Importance of collective bargaining among the contracted workforce Review of the wages and working conditions of contracted employees Stora Enso 05 February

14 Laos with trial plantation operations Assessment conducted by Business for Social Responsibility (BSR) Lack of formalized contracts for the informal pool of field workers from neighboring villages Informal selection of workers to participate in daily labor by Stora Enso s contractors at the village level (increasing the risk of discriminatory hiring) Evidence that not all community members understand the experimental agroforestry model, undermining the Free, Prior, and Informed Consent standard Underutilization of safety equipment and lack of a robust safety culture Children over the age of 12 are legally permitted to work in Laos, and permissive cultural norms around child labor make it difficult to enforce. Stora Enso is actively working to prevent child labor in the fields, and BSR provided specific guidance to help reduce the risk. Stora Enso has already initiated action plans to address this issue with the assistance of BSR Stora Enso 05 February

15 Key Human Rights Opportunities in Laos The assessment also identified several positive opportunities to advance human rights directly related to the project: a robust village development program employment opportunities for locals value creation through the promotion of food security and forestry operations protection of traditional practices around land use clear evidence that Stora Enso is obtaining the social licence to operate Stora Enso 05 February

16 IMPACT ASSESSMENT CONSOLIDATION RESULTS & RECOMMENDATIONS (EXCLUDING GUANGXI, PAKISTAN AND LAOS) EMPLOYMENT PRACTICES Own Employees and Third-Party in-premise staff Monitoring and managing status and rights of contracted employees Diversity Management Grievance mechanisms beyond available channels Employee Privacy National legal wages vs. fair entry level wages in certain countries Freedom of association in certain countries

17 IMPACT ASSESSMENT CONSOLIDATION RESULTS & RECOMMENDATIONS COMMUNITY IMPACT Periodic environmental and social impact assessments Structured unit level stakeholder engagement Training for security service providers Community grievance mechanisms partially addressed (Veracel, Brazil)

18 IMPACT ASSESSMENT CONSOLIDATION RESULTS & RECOMMENDATIONS SUPPLIERS AND OTHER BUSINESS PARTNERS Renewed Supplier Code of Conduct and Responsible Sourcing approach launched in 2014 Ongoing implementation at all Stora Enso units Need to keep watch for risk of missing out smaller spend suppliers

19 LIMITATIONS AND POSITIVE ASPECTS DIHR REFLECTION ON THE ASSESSMENT PROCESS LIMITATIONS: Many unit-level assessments done as self assessment Inadequate stakeholder engagement and involvement in some units POSITIVE ASPECTS: Very few companies have performed this level of analysis in such an open and engaging way - This process can inspire within Stora Enso and beyond Respect for human rights is not a end result, it is a journey and continuous process

20 Q&A

21 Key Group wide areas for improvement and understanding Own Employees Employee Privacy Diversity Management. Legal wages vs. Fair entry level wages in certain countries Freedom of association in certain countries with legal limitations Neighbouring Community Periodic environmental and social impact assessments Structured unit level stakeholder engagement Training for security service providers Community grievance mechanisms Suppliers and Third-Party in-premise staff Renewed Supplier Code of Conduct and Responsible Sourcing approach launched in 2014 Need to keep watch for risk of missing out smaller spend suppliers Grievance mechanisms beyond available channels Monitoring and managing status and rights of contracted employees. Stora Enso 05 February

22 Stora Enso - Next Steps (1/3) Baseline analysis: - Possible legal non-compliances - Gaps with Stora Enso policies - Severe impacts - Irreversible impacts Areas for immediate attention: - Employee Privacy - Diversity Management - Training and management of security service providers Further analysis and discussion with stakeholders needed: Legal wages vs. Fair entry level wages in certain countries Freedom of association in certain countries with legal limitations Need to keep watch for risk of missing out smaller spend suppliers Community grievance mechanisms Local stakeholder engagement Stora Enso 05 February

23 Stora Enso - Next Steps (2/3) Already being addressed: Monitoring and managing status and rights of contracted employees and own staff (OHS) Renewed Supplier Code of Conduct and Responsible Sourcing approach launched in 2014 Action plans being finalized based on findings from human rights assessments, inputs from DIHR, BSR and other partners Laos (BSR) Guangxi (DIHR, other partners) Pakistan (Human Rights Assessment findings) Stora Enso 05 February

24 Stora Enso - Next Steps (3/3) Priority actions plans by the end of Q for issues related to: Possible legal non-compliances Gaps with Stora Enso policies Severe impacts Irrevocable impacts Ambition level is to have the action plans for all identified negative impacts by the end of Q2 2015, all finished no later than 2015 Implementation to start upon finalizing action plans Partner with and consult external stakeholders, as appropriate Transparent communications throughout Stora Enso 05 February

25 Q & A with Stora Enso and DIHR