IFC signs advisory services agreement with Stora Enso Lao

By Jenny Eagle

- Last updated on GMT

Related tags Risk

IFC advisory services agreement Stora Enso Lao
IFC, a member of the World Bank Group, has signed an advisory services agreement with Stora Enso Lao Co. to help the company improve its social risk management in Lao People's Democratic Republic.

While not investing in Stora Enso Lao, IFC’s loan exposure to the Stora Enso Group is $238 million. 

"Stora Enso Lao wants to implement best practices to assess and manage environmental and social risks and impacts​," said Helena Axelsson, deputy COO, Stora Enso Lao. 

"With IFC’s support, we will further strengthen our outreach program to farmers and improve our community engagement according to international best practice. This will include strengthening grievance mechanisms and communications planning​." 

IFC and Stora Enso will work together on stakeholder identification and engagement planning, including free, prior, and informed consent in the company's operating procedures. 

As part of the agreement, IFC will guide the company on the Government of Lao PDR's requirements for land acquisition and concession licensing processes to improve land management. 

IFC's Forestry Investment Program in Lao PDR supports development of business models for community-based reforestation of degraded and underutilized land.

The Forest Investment Program is a targeted multi-donor fund and program within the framework of the Climate Investment Funds.  IFC, through community-forestry partnerships with companies such as Stora Enso, aims to enhance technical skills of farmers to improve their productivity, while mitigating climate change. 

Stora Enso Lao PDR operations focus on optimum use of land for wood and food production. The company has a 2,200-hectare concession for a pilot and feasibility plantation project in Savannakhet and Saravane provinces. 

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