S3 – Affected Communities

In 2024, we reached 8.4 million vulnerable people with diabetes, a 5% decrease from last year, mainly due to reduced tender sales of human insulins. Despite this, our commitment to addressing health inequity remains unwavering. We are intensifying efforts to make care more affordable for vulnerable populations, improve supply chains and build capacity for diagnosis and disease management. Key initiatives include Changing Diabetes® in Children (CDiC), which has reached over 64,000 children with type 1 diabetes in low- and middle-income countries since 2009. Other initiatives include Partnering for Change, a collaboration with the Danish Red Cross to address health issues in humanitarian crises, and iCARE, an integrated business model aimed at breaking down barriers to diabetes care in Middle Africa and Indonesia.

RSG's policies related to affected communities focus on reducing noise disturbance and improving the balance between airport activities and community well-being. The company is committed to reducing noise disturbance for communities surrounding its airports through collaboration with Air Traffic Control the Netherlands (LVNL) on the Minder Hinder noise reduction programme. RSG operates airports in strict alignment with national and regional regulations and prioritises proactive engagement with local communities to keep them informed of developments. This includes sharing updates on innovative solutions developed with partners to minimise environmental impact and contribute to community well-being. The company supports Dutch government efforts to maintain good balance between Schiphol and surrounding environment, with focus on reducing noise disturbance and strengthening legal protection of local residents.

With its strong global presence, Stora Enso depends on thriving and resilient communities. Our Purpose 'Do Good for the People and the Planet' and our Values 'Lead' and 'Do What's Right' underline our commitment to conducting business responsibly in the communities in where we operate. Our operations depend on local communities for a skilled workforce and the supply of our primary raw material, wood. In turn, we contribute to local employment, income generation, and infrastructure development. Additionally, our community development programmes and employee volunteering initiatives are designed to further enhance the livelihoods of these communities.

RSG engages with affected communities through various channels and initiatives. The company maintains proactive engagement with local communities to keep them informed of developments and shares updates on innovative solutions being developed with partners. RSG participates in the Minder Hinder noise reduction programme in partnership with LVNL, involving community input on measures to reduce noise disturbance. The Environmental Fund, successor to the Schiphol Quality of Life Foundation, has definite form and will start work in early 2025 with 10 million euros annually through 2030 for measures to improve quality of life in the local environment. The company supports government efforts in the Balanced Approach procedure to create better balance between aviation and local environment, seeking input from communities and stakeholders on proposed measures.

We prioritise open and transparent relationships with stakeholders to discuss the impact of our operations, build trust, and address concerns. We have a long history of engaging with local communities in diverse settings and cultures. The form and frequency of our engagement vary based on the local context. This may involve interaction through community representatives or direct and inclusive contact. Active cooperation with forest owners and stakeholders near our harvesting sites helps to promote sustainable sourcing, share knowledge, and gain social acceptance. We are a significant private forest owner in Sweden and a key forestry operator in Finland. We acknowledge our responsibilities to the indigenous Sámi people who reside near the lands where we operate or source our wood. Our forestry planning team engages in ongoing dialogue with the local Sámi communities in Sweden, including discussions about forestry and reindeer herding, and identifying opportunities and challenges together. Before commencing any forestry operations, we consult with the Sámi communities. Annual evaluation meetings assess the year's activities and consultations, ensuring continuous communication and collaboration. The Pataxó and Tupinambá communities, comprising nearly 25,000 indigenous people, live near Veracel, our joint venture in Brazil. In cooperation with indigenous communities, Veracel's community liaison team plans activities to foster dialogue and preserve traditional culture. Community consultations are held before logging operations begin and after activities near harvesting sites are completed to avoid or mitigate any potential impact.

Hydro also supports social and economic development in the communities where it operates. Read more about the skills development, community investments and efforts to support just transition in the sections on Affected communities and Human rights. In 2024, Hydro spent NOK 300 million in its local communities including community investments, TerPaz (local community centers), donations and sponsorships, and launched its program to increase funding to projects aligned with Hydro's Just Transition priorities in the communities where it operates. In addition to this, Hydro made a provision in December 2024 of NOK 300 million to support communities along the pipeline between the Paragominas mine and Alunorte refinery in Brazil. The provisioned funds will support infrastructure, local production facilities, and skills development.

RSG takes action on material impacts for affected communities primarily through noise reduction measures and community investment. The company published new airport charges at end of October with newer, quieter aircraft paying lower fees while older, noisier aircraft pay higher fees, with night flights costing about three to six times more than day flights depending on aircraft type. This promotes use of quieter, cleaner fleet. The Environmental Fund provides 10 million euros per year through 2030 for measures improving quality of life in surrounding areas. RSG lifted land reservation for second Kaagbaan runway development in July 2024 as part of its 8-point plan. The company collaborates on innovative solutions to minimise environmental impact, including studies on ultrafine particle removal and modified departure procedures to reduce emissions near gates.

We are committed to managing our actions responsibly, minimising adverse impacts on the environment and people while maximising positive outcomes. Our approach to engaging with local communities and indigenous peoples, as well as managing our impact, is further described in the Sustainability Statement.

Finally, we engage with impacted communities near our projects to minimise and address potential grievances and support local community projects. Community grievances (number): 2 in 2024, 3 in 2023. Community beneficiaries (number): 7,919 in 2024, 9,769 in 2023. Social Due Diligence on projects in scope (%): 83% in 2024, 59% in 2023. Reach 35,000 community beneficiaries by 2025.