University of Vaasa - Vaasan yliopisto

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where it uses renewable resources and is thus entitled to Green Certificates for
onward sale to generators that consume non-renewable resources. The income from
this amounted to 24 million Euros.
In company like Stora Enso there is a direct link between sustainability and financial
performance in energy and greenhouse gas emission issues. Financial data related is
now disclosed only in the financial statements. Stora Enso’s sustainability report,
however, include relevant information on energy and greenhouse gas emission
targets and activities on energy efficiency and greenhouse gas emission reductions,
but the financial valuation of these issues is missing. This is a shortcoming also in
GRI. It supports financial reporting, but adds only a little value to the financial
valuation. Corporate sustainability reports should have more discussion and data on
the financial impacts in order to be in better service for valuation.
Financial Value of Environmental Expenditures in Stora Enso
A clear link between corporate sustainability and financial performance is
environmental expenditures. For example Stora Enso reports that its overall
environmental expenditures in 2006 totaled 322 million Euros representing some 2 %
of its net sales. Stora Enso’s environmental costs include environmental capital
expenditures (€156 million), operating environmental expenses (€86 million) and
environmental liabilities (€42 million). Environmental investments represent 15 % of
Stora Enso’s total capital expenditures and environmental liabilities 10 % of
provisions.
Environmental expenditures are defined as an environmental performance indicator
in the GRI guidelines and are therefore usually included in corporate sustainability
reports. However, this information, when material, is already required to be disclosed
in financial statements. In that sense, corporate sustainability reporting does not add
value from the financial valuation point of view if the reasons behind environmental
expenditures are not interpreted properly. Stora Enso provides detailed facts about its
environmental activities underlying these costs and some valuable information on
future environmental investment needs and compliance costs which are useful for
financial valuation purposes.