Consumables

Stora Enso responds to report by Finnwatch and Swedwatch

Friday 06. September 2013 - Group continues developing sustainability practices of its Chennai Mill

The Finnish NGO Finnwatch, with the support of the Swedish NGO Swedwatch, has today published a report on the responsibility practices of Stora Enso Inpac Delta India. Finnwatch investigated Chennai Mill in spring 2013 and the report is based on its findings. Stora Enso co-operated with Finnwatch and Swedwatch in the process.
“We welcome the report, and would like to thank Finnwatch and Swedwatch for the co-operation and constructive dialogue we had during the process. We agree with many findings of the report, and some of the findings we are investigating further. There are also findings we do not agree with, based on evidence, such as the company not reporting all accidents,” says Mats Nordlander, EVP, Stora Enso Renewable Packaging.
The report recognises the decrease in the mill’s work-related accidents but finds several deficiencies in Chennai Mill’s working conditions and safety practices. The report also criticises the living conditions of low-wage employees and lack of positive discrimination practices.
Since Chennai Mill became a Stora Enso subsidiary in 2011, a number of improvements have been made. The number of accidents has decreased, the wages have been raised and collective agreements with the unions have been established. Furthermore, Stora Enso’s Code of Conduct has been implemented and the global HR policies of Stora Enso now apply to all employees at the mill.
“Our staff in Chennai has made good progress on sustainability and the mill is now on the right path. However, we are never fully satisfied with our performance. We are now focusing on several occupational health and safety issues at the mill, some of which were noted in the report”, says Mats Nordlander.
The mill has been audited several times, recently by a third-party auditor according to SA8000 standards, as well as by two global brand customers who gave the mill a green light as a sustainable supplier. Additionally, a comprehensive external legal review of the company’s compliance with  labour laws was conducted this year.
Chennai Mill currently holds ISO 14001 and ISO 9001 certificates, and has committed to achieving OHSAS 18001 occupational health and safety certification by the end of 2013.
Chennai Mill is located in Chennai in India’s Tamil Nadu State, and it produces consumer packaging (microflute, cartonboard) and transport packaging (master cartons). The company was established in 2005 and became a Stora Enso subsidiary in 2011 as part of the acquisition of a 51% majority shareholding in Inpac International.