Calling climate change “an imminent global threat that demands urgent action from all segments of society,” Avery Dennison Corporation (NYSE: AVY) announced today that it has signed the American Business Act on Climate Pledge, a White House initiative to enlist U.S. companies in reducing greenhouse gas emissions. With this pledge, Avery Dennison is joining more than 140 companies who have voiced support for a strong outcome at the United Nations Climate Change Conference being held in Paris from November 30 to December 11 and have underscored their commitment to reducing emissions from their operations.
Stora Enso’s equity accounted investments Tornator Oyj in Finland and Bergvik Skog AB in Sweden increase the IFRS fair value of their biological assets, i.e. growing trees. Stora Enso’s shares of the increases are approximately EUR 87 million for Tornator and approximately SEK 490 million (EUR 50 million) for Bergvik Skog, totalling EUR 137 million, subject to normal year end verification. After taking into account the SEK/EUR related translation loss of EUR 164 million, the impact on Stora Enso’s IFRS operating profit in the fourth quarter of 2016 will be approximately EUR 27 million negative, subject to year-end exchange rates. The change will not have any impact on Stora Enso’s operational EBIT, and it will not be classified as an item affecting comparability (IAC).
Stora Enso’s share of the fair value of the biological assets is expected to be approximately EUR 515 million in Tornator and SEK 22 516 million (EUR 2 282 million) in Bergvik Skog. In the end of 2015, the respective values were EUR 428 million for Tornator and EUR 2 397 million for Bergvik Skog.
The change in Tornator’s fair value is due to an increase in felling plan and a decrease in the discount rate. As for Bergvik Skog, the change is due to a decrease in discount rate, an adjustment to the price curve, and a correction in the model from last year.