Environmental and Social Impact Analysis Stora Enso Plantation Project in Guangxi,China
Final Report 5 February 2006

CONTENTS
FOREWORD--------------------------------------------------------------------------------------------------- 1
Acknowledgements ------------------------------------------------------------------------------------------- i
Executive Summary-----------------------------------------------------------------------------------------iv
1.Background on the Partnership and ESIA----------------------------------------------------------------iv
2. An Outlook on the Industry in China and Guangxi----------------------------------------------------- v
3. Key Findings and Conclusions----------------------------------------------------------------------------vi
4. Recommendations for Stora Enso --------------------------------------------------------------------- xiii
5. Issues and Recommendations for Government Stakeholders--------------------------------------- xv
6. Content of Full Report ---------------------------------------------------------------------------------- xvii
Part I Background ------------------------------------------------------------------------------------------ 1
Chapter 1. Background ------------------------------------------------------------------------------------- 2
Part II Eucalypt Plantation Management--------------------------------------------------------------12
Chapter 2. Eucalypts and plantations--------------------------------------------------------------------- 13
Chapter 3. Eucalypts and Sustainability ----------------------------------------------------------------- 18
Chapter 4. Stora Enso’s Approach to Eucalypt Plantation Management in Guangxi, China ---- 24
Part III Environmental Impact Analysis ---------------------------------------------------------------32
Chapter 5. Environmental Methodology ----------------------------------------------------------------- 33
Chapter 6. Water Use and Impacts of Eucalypt Plantations ------------------------------------------- 35
Chapter 7. Soil Sustainability in Eucalypt Plantations -------------------------------------------------- 42
Chapter 8. Carbon Sequestration--------------------------------------------------------------------------- 49
Chapter 9. Biodiversity Assessment ----------------------------------------------------------------------- 51
Part IV Social Impact Analysis ------------------------------------------------------------------------67
Chapter 10. Social Analysis Methodology--------------------------------------------------------------- 68
Chapter 11. Affected Groups ------------------------------------------------------------------------------- 71
Chapter 12. Land Rental ------------------------------------------------------------------------------------ 86
Chapter 13. Employment ---------------------------------------------------------------------------------- 104
Chapter 14. Special Populations and Other Special Topics ----------------------------------------- 122
Part V Integrated analysis of Social and Environmental Impacts ------------------------------- 146
Chapter 15. Methodology for Integrated Social-Environmental Analysis -------------------------- 147
Chapter 16. Cost-Benefit Analysis ----------------------------------------------------------------------- 148
Chapter 17. Social Analysis of Concerns about Envi. Impacts of Eucalypt Plantation----------- 151
Chapter 18. Natural and Cultural Heritage ------------------------------------------------------------ 154
Chapter 19. Scenario Analysis: What if the Stora Enso Project did not proceed? ---------------- 155
Chapter 20. Risks and Monitoring------------------------------------------------------------------------ 158
Part VI Conclusions, Recommendations and Suggestions--------------------------------------- 168
Theme: Technical Knowledge and Sustained Productivity ----------------------------------------- 170
Theme: Engagement with Society ---------------------------------------------------------------------- 171
Theme: Commitment to Stora Enso’s corporate principles ------------------------------------------- 173
References ------------------------------------------------------------------------------------------------- 176