The EU Deforestation Regulation (EUDR) is significantly changing the operating environment in forest-related industries. The EUDR aims to effectively prevent deforestation and to increase traceability throughout the supply chain and production. The regulation applies to a wide range of companies in different sectors and at all stages of the supply chain.
Stora Enso
Beyond compliance – Stora Enso’s EU deforestation regulatory solution provides competitive edge
Solita helped Stora Enso Packaging Materials meet the stringent environmental requirements of the EUDR regulation a year before the final deadline. One of the world’s oldest public companies, Stora Enso, has long been at the forefront of sustainability development. The deforestation regulation now makes the whole chain from source to delivery transparent.
It allows us to see where the wood is sourced from and enables us to evaluate and audit our suppliers in a new way. We’ve been using certified wood for a long time, but now transparency will increase in a concrete way.
Panu Hentunen Project Manager, Stora Enso
Results
-
Stora Enso’s Packaging Materials Division is ready for EUDR regulation one year ahead of the EU deadline
-
As an early adopter, Stora Enso has gained competitive advantage
-
Increased transparency and traceability at all stages of the supply chain and operations
-
Modular and flexible implementation enables extending the solution to other sustainability related use cases
-
Flexible solution adapts to regulatory changes
Every tree must be traceable
The regulation was originally due to come into force in December 2024; however, the deadline was postponed by one year. The penalties for non-compliance are significant: even up to 4% of turnover. When the regulation comes into force in the end of 2025, every delivery from the factory will have to be accompanied by a DDS (Due Diligence Statement).
“The idea is that in the future, the origin of the wood will be clear for each roll of carton. It’s a critical system,” says Auli Peltola, Head of Strategic Growth at Solita.
Stora Enso is one of Finland’s largest companies and promoting sustainable development has long been in the heart of its business strategy. Stora Enso employs around 20,000 people in total, and Packaging Materials is their largest division, so complying with EUDR regulation a year ahead of schedule is a significant achievement.
With this solution, we’ll be able to verify that all materials are from sources that don’t contribute to deforestation. The level of requirements is the same for everyone, which is a good thing.
Matti Vanhala Director, Digitalisation, Packaging Materials, Stora Enso
Seamless collaboration towards a moving target
In early 2024, when Stora Enso started designing and mapping the EUDR project requirements, regulatory specifications were still immature and often undefined. Solita’s solution-oriented approach and understanding of Stora Enso’s needs were crucial for a successful implementation.
“The interpretation of the law was initially broad, making progress challenging. Solita was a clear choice as our EUDR solution partner. We were impressed by the ability of their team and their solution. The moving target made the implementation challenging, but they tackled difficult situations. All credit to them,” says Stora Enso’s Hentunen.
Successful implementation was based on a modular, event-driven solution that enabled separating uncertain parts from stable core functionality. API-first approach ensured simultaneous user interface, backend and integration development. The solution was designed to fit with Stora Enso’s existing architecture and technologies.
“We had to aim for a moving target because the regulation wasn’t crystal clear when we started the work. It was great to see how much trust Stora Enso had in us. We did everything we could to be worthy of this trust, and we felt we succeeded,” says Solita’s Project Lead Miska Jaatinen.
Flexible solution adapts to regulatory changes and new use cases
Stora Enso is a B2B company and a leading supplier of renewable products for packaging, biomaterials and wood construction, and one of the world’s largest private forest owners. The company helps its customers replace fossil materials with low-carbon, renewable and recyclable alternatives for food, beverage and transport packaging.
The collaboration has enabled Stora Enso Packaging Materials to be ready ahead of schedule for EUDR regulation and to provide compliant information to both regulators and customers.
Importantly, the flexible EUDR solution will adapt to new regulatory changes in the future and can be extended to future use cases.
“We aimed to implement a long-lasting solution regardless of the tight schedule and changing specifications. Starting quickly required a lot of talent from all parties involved. While many companies are still in the planning phase, we are already able to implement further plans in close cooperation with our customers,” says Vanhala.
Impactful work motivates the best talents
Regulation alone won’t drive change. The solution is also a competitive advantage for Stora Enso.
The solution might be a good basis for digital product passport development in the coming years.
Auli Peltola Head of Strategic Growth, Solita
In the future, the competitive advantage will largely come from the additional services and features that will be built around mandatory implementation. Making the process as smooth as possible is a key objective.
“The ability of companies to respond to EU requirements varies a lot. We’ve been able to discuss the topic with our clients early on because we are at the forefront of EUDR solution development,” says Stora Enso Vanhala.
“It was great to be involved in this project to help a global company with long traditions and deep roots in Finland and Sweden to prevent climate change and promote sustainable development. Our Software Developers find it valuable to be involved in such meaningful work. This is a project in line with our values,” Jaatinen says.
Responsibility is a competitive advantage
At Stora Enso, the holistic and ambitious approach to sustainability has been continuously reinforced within the company and valued by clients.
“Our customers trust us to provide clear, reliable sustainability information based on their needs. In large companies, sustainability has been on the agenda for a long time. Now awareness has been growing also among smaller customers,” says Max Ek, Stora Enso’s Sustainability Manager.
The solution is flexible and therefore adaptable for the future.
This solution is in line with our sustainable development strategy. We’ve already come up with a couple of new ideas where we could benefit from similar thinking.
Max Ek Sustainability Manager, Stora Enso
-
Auli Peltola Head of Strategic Growth, Solita
[email protected] +358 503 498 418
See more of our work
-
GS1 Finland GS1 Finland and Solita help the food industry to comply deforestation regulationSolita helped GS1 Finland with its development project, which aims to help companies respond to the strict EUDR requirements. -
Outokumpu Driving AI solutions in sustainable stainless steel production – new digital innovation hubTogether with us Outokumpu built a machine learning development platform, processes, and governance. -
Ponsse Edge computing starts new era of intelligence in forest harvestingCollecting data from Ponsse forest machines for better services.