Stora Enso is currently being discussed in the Swedish media after a Swedish national pension fund decided to sell their Stora Enso shares due to child labour issues in the value chains of Bulleh Shah Packaging in Pakistan. Stora Enso does not, under any circumstances, accept child labour. We have taken a number of measures to make sure that none of our suppliers use child labour. We regret if we haven´t been able to explain that to the pension fund.
As child labour and other human rights issues are in the focus of our responsibility approach in Pakistan, Stora Enso has taken steps to continuously update our investors and other stakeholders on the progress we are making. Stora Enso does not accept child labour in its operations or in its suppliers operations.
Stora Enso has a 35% shareholding in Bulleh Shah Packaging (Private) Limited in Pakistan, together with the Pakistani company Packages Limited. The joint venture agreement was formed in 2013. Bulleh Shah Packaging is committed to mitigating child labour in the long term by addressing its root causes in the communities and by driving change in its suppliers.
• Other community engagement actions taken in 2014 include the preparations for launching mobile clinics for health care in the communities together with a local hospital.
• The sourcing of the agricultural residuals presents a significant opportunity for creating shared value between Bulleh Shah Packaging and its stakeholders by increasing incomes in rural areas, Bulleh Shah Packaging is taking steps to ensure that social economic impacts are considered, e.g. that a fair proportion of payment for agricultural by-products reaches the farm workers involved in the wheat harvesting. The socio-economic realities in the supply chain were studied in 2013. In 2015 Bulleh Shah Packaging will continue the research with community interviews.
In November-December 2014, as a part of Stora Enso’s Human Rights Assessments, a separate assessment is being carried out at Bulleh Shah Packaging by an independent human rights consultant in line with the standard created together with The Danish Institute for Human Rights.
Stora Enso publishes our performance indicators for Global Responsibility – including those for Pakistan – in our interim reviews. You can download our latest report here: http://www.storaenso.com/investors
We will keep our stakeholders updated on our actions in Pakistan. Our sincere hope is that by openly and transparently disclosing our progress we will be able to convince our stakeholders of our approach to sustainability in Pakistan.
Main actions taken in 2014 include the following:
• In April, Stora Enso terminated all supplier relationships in Bulleh Shah Packaging’s Used Cartonboard (UCB) supply chain. Bulleh Shah Packaging has continued to support children and their families from dump sites despite terminating supplier relationships, for example by providing education. In 2014, Stora Enso financed a school for children aged 6–14 years with the support of a local NGO specialised in education.
• Bulleh Shah Packaging started to educate its suppliers in 2013, and in 2014 the Company started to audit its suppliers on the supplier Code of Conduct to mitigate human rights violations. Bulleh Shah Packaging audits all suppliers it has direct business relationships with. BSP also audits the second tier of wheat straw and biomass transportation suppliers.