A new survey of more than 220 pulp and paper companies across Europe shows that fewer than 40% have reached a high level of sustainability maturity, despite increasing regulatory pressure and growing customer expectations.

Regulations Are Driving Change

The industry is adapting to several major European regulations, including:

• EU Deforestation Regulation (EUDR)
• Corporate Sustainability Reporting Directive (CSRD)
• Corporate Sustainability Due Diligence Directive (CSDDD)

The report concludes that sustainability is no longer viewed solely as an environmental issue but as a strategic business priority affecting competitiveness, risk management and long-term growth.

Four Pillars of Sustainability

Companies increasingly evaluate sustainability across four interconnected areas:

• Forests & Planet
• People
• Economy & Markets
• Governance

Performance across these pillars influences how effectively businesses manage regulatory compliance, supply chain risks and stakeholder expectations.

Certification Adoption Varies Across Europe

Certification remains an important element of sustainability strategies, particularly FSC certification, but adoption differs significantly between markets.

Reported certification rates range from approximately:

• 34% in Finland
• Over 60% in the United Kingdom

The report suggests wider adoption depends on stronger collaboration, improved impact measurement and greater confidence in certification systems.

Rising Costs Challenge Sustainability Goals

More than 60% of surveyed companies said market demand strongly influences sustainable sourcing decisions.

However, businesses also identified rising costs and inflation as the most significant factors shaping future decisions, creating tension between sustainability investments and financial performance.

Supply Chain Transparency Remains a Challenge

Around 70% of companies said they incorporate the rights of forest-dependent communities into their sourcing or manufacturing strategies.

Despite this progress, supplier engagement remains inconsistent, making it difficult to ensure sustainability commitments are implemented throughout the value chain.

Companies with higher sustainability maturity generally report greater confidence in certification systems, while less mature organizations continue to express concerns about traceability and transparency.

Circular Economy Gains Importance

The report also highlights growing interest in circular business models.

Certification schemes such as FSC Recycled help companies verify and communicate the use of 100% reclaimed materials, improving transparency around recycled content and supporting more credible circular economy practices.

Sustainability Becoming a Competitive Advantage

According to the report, the industry’s biggest challenge is no longer recognizing the importance of sustainability, but implementing practical solutions that remain commercially viable amid rising costs, stricter regulations and increasingly complex global supply chains.

Companies that successfully balance environmental performance with operational efficiency are expected to be better positioned to meet future regulatory requirements and strengthen their competitive position in the European pulp and paper market.

Last Updated on 26/06/2026 by Jota Machinery