Environmental Risks in the Swedish Pulp and Paper Industry : A study on environmental risk identification, mitigation and stakeholder drivers towards environmental initiatives

Sammanfattning: AbstractClimate change and the ever growing frequency of natural disasters and extreme weather conditions are issues of high interest in present times and are considered to be one of the biggest threats facing mankind. These prevalent issues associated with environmental risks can eminently cause implications towards corporations, not least when the frequency and intensity can impact their operations and finances. Recent happenings confine with the increased importance and urgency to address matters of environmental concerns, not least when advocates fear that mankind is heading into uncharted territories, when the affect towards corporations and society are unknown. Subsequently, the increased stressed conditions related to our environment are thought to elevate the magnitude and severity of environmental risks that can result in economic havoc. This calls for a great understandings of environmental risks and their potential impact on corporations, thus it was of essence to detect which environmental risks that permeate the business environment, identify risks highlighted by the chosen corporations and elucidate potential mitigation strategies towards addressing these risks. With this stated, it is of value to consider environmental risks in light of corporate strategies to help overcome the risk of economic loss. The objective and focus of this study was to identify what environmental risks that are identified by large Swedish corporations within the pulp and paper industry. More specifically, attend to the different environmental risks and mitigation strategies in terms of addressing prominent risks that can affect corporate finances. Further the aim was to see if the corporations perceive the natural environment as a stakeholder or what drivers initially influence them to adhere to environmental interests, this influenced by the stakeholder theory. An additional objective was to see if any differences existed between the risks placed ´on the agenda´ by the media for the given industry and the specific corporate risk identification. This objective was derived from the agenda-setting theory. In order to meet these objectives, annual reports, other relevant sources and publications of the largest corporations within the pulp and paper industry in Sweden were examined. This in order to acquire the information of necessity to answer the stated research question: What environmental risks do large corporations within the Swedish pulp and paper industry identify and how are these managed, and what stakeholders influence the corporations to adhere to the natural environment? The findings revealed evidence that corporations placed emphasis on presenting environmental risks and different mitigation strategies to prevent the chance of financial loss. The most apparent risks that were found constituted of: raw material risks, production risk, climate change, facility risk, forest risk, restoration cost risk and insect/animal pest risk.  Further, we found similarities between the risks acquired from corporate data and the elucidated risks for the pulp and paper industry prevalent in media. Subsequently, it was found that only one corporation chose to explicitly state the natural environment as a stakeholder, though other key drivers towards influencing the corporations towards adhering to environmental concerns were found, key drivers such as: inputs by internal and external stakeholders through substantiality analysis, different laws, policies and regulations, trend spotting, their own perceived social responsibility and also through pressure by media. Key words: Environmental risks, risk management, pulp and paper industry, stakeholder, climate change, environmental management systems, agenda-setting theory, stakeholder theory.