The SCA Sustainability Effect Creating value for people and nature Creating value for people and nature SCA is a leading global hygiene and forest products company with a long tradition of taking responsibility for people and for nature. As early as in the 1950s, SCA had established an extensive social program for its employees. And our origins as a forest products company have given us a deep connection with and responsibility toward the environment. tions, break taboos and educate millions of people. The SCA of today builds on this heritage when we provide innovative hygiene solu- Welcome to our world and welcome to SCA! All around the world, SCA is involved in sustainability initiatives based on our core values of respect, excellence and responsibility. In this brochure, we invite you to learn more about our work to create value for people and nature. 2014 achievements at a glance Every day 400,000,000 people used SCA’s products 99 million 80 0 seedlings were produced accidents recorded at 20 production sites Code of Conduct supplier audits were performed in 2013 and 2014 2,000,000 people received hygiene education Our people and Our people and nature ambitions outline our long-term view on the type of company we want to be and the direction we want to take. People ambitions We build our position as one of the most trusted companies in the world, delivering sustainable growth and value for our stakeholders. We improve hygiene standards worldwide with our hygiene solutions. For the millions of existing users of our products and services, and for the billions of people in emerging markets, we develop innovative solutions that make it easier to live healthy, sustainable lives. We support women’s empowerment and their freedom to participate fully in society – socially, educationally and professionally – across the world by giving them access to and education about hygiene solutions. nature ambitions Nature ambitions We deliver sustainable solutions with added value for our customers based on safe, resource-efficient and environmentally sound sourcing, production and development. We combat climate change and minimize our impact on the environment through a combination of new innovations and technologies, efficiency gains, consumer initiatives and carbon sequestering in our forests. We care for the forests with all of their biodiversity and we are committed to managing and utilizing them responsibly. We aim to maximize the benefits our forests have on our ecosystem, climate, customers and society, through a combination of innovation, efficiency gains and wise and long-term management. Nature targets Our people and nature targets are specific and measureable, and are thus critical to the achievement of our sustainability ambitions. Climate & Energy • We will reduce CO2 emissions from fossil fuels and from purchased electricity and heating by 20% by 2020, with 2005 as reference year. • We will triple our production of biofuels from the forests by 2020, with 2010 as reference year. • The production of wind power on SCA forestland will increase to 5 TWh by 2020. Water • We aim to achieve water sustainability, and we will reduce our water consumption in water-stressed regions by 10% by 2015, with 2010 as reference year (achieved in 2013). • All SCA pulp and paper mills will employ mechanical and biological water treatment plants by 2015. Fiber sourcing & Biodiversity • We will achieve and maintain our target of zero fresh fiberbased material, including pulp, from controversial sources. • We will preserve the biodiversity of our forests. A minimum of 5% of our productive land will be set aside from forestry in our ecological landscape plans, and a further 5% will be set aside as part of our consideration for nature in our managed forests. Combating climate change SCA takes a 360-degree approach to tackling its climate footprint and has set targets to reduce carbon emissions. One way of reducing carbon emissions is through major investments, such as the lime kiln installed in Munksund, Sweden in 2014. The lime kiln replaces oil with biofuels, thereby reducing carbon emissions by 75% and generating a cost saving of SEK 50m (EUR 5.5m) per year. Our energy efficiency program, ESAVE, designed to reduce consumption and carbon emissions, takes a more smallscale approach, yet generates a significant effect. A typical ESAVE project could involve reducing electricity consumption by improving or replacing pumps, compressors, fans or lighting. Between 2010 and 2014, 800 projects were implemented, resulting in a 7.7% reduction in energy used per ton of product produced. Set to boost green power Access to more renewable energy will reduce greenhouse emissions, and the EU aims to obtain 20% of its energy from renewable sources by 2020. SCA is committed to wind power and to boosting the production of green electricity, thereby ensuring that the Group is less susceptible to fluctuations in energy prices. In 2014, two new wind farms became operational on SCA’s land in northern Sweden as part of SCA’s and Statkraft’s wind power venture. Combined, the two wind farms will supply 590 GWh of electricity per year, sufficient to heat 30,000 houses. In total, SCA’s wind power plans include the construction of 830 wind turbines generating an impressive 7 TWh of green electricity. Vital water The distribution of accessible water is extremely uneven among regions. This is why SCA focuses on reducing water usage in water-stressed regions in Mexico, Colombia, Spain, Italy, the US and Australia. Water treatment is another focus area. In cooperation with local authorities, SCA rerouted the course of the Iton River and restored the wetlands around its plant in Hondouville, France. The river now flows past the plant instead of right through it, making it easier to control the water treatment system and prevent the risk of leaks. The restored wetlands will increase biodiversity and the hope is to welcome back species such as the yellow-bellied toad. Responsible use of raw materials SCA promotes sustainable forest management and one of our environmental targets is to ensure that none of the wood fiber we use comes from controversial sources*. To this end, SCA manages its own forests – the source of about half of our wood raw material – according to the international forest management standards established by the Forest Stewardship Council (FSC®) and the Programme for the Endorsement of Forest Certification (PEFC™). We demand that our suppliers comply with high environmental and social standards and we carry out regular assessments of our suppliers of fresh fiber-based raw material. SCA has 100% control over the origin of its fresh fiber-based raw material. *Illegally logged timber, timber from high conservation value forests (HCVF) or timber from areas where human rights or the rights of indigenous people are violated. FSC-N002446 We have a passion for forests Forests are not only a source of valuable and renewable raw materials; they also provide critical ecosystem services that make life on earth possible. Forests absorb carbon dioxide, regulate water flows and offer people opportunities for recreation, hunting and fishing. As Europe’s largest private forest owner, SCA has a responsibility to protect and preserve the biodiversity of its forest. We have set aside more than 7% of our productive forestland for preservation in ecological landscape plans, which includes preserving and reestablishing habitats for sensitive species. In addition, more than 14% of the forest area in planned harvesting sites was set aside for nature considerations in 2014. As a consequence, more than one tree in ten will die a natural death and become part of the life cycle – and be food for insects, birds and fungi. People targets Hygiene Solutions • We will make our knowledge about hygiene available to customers and consumers and ensure access to affordable, sustainable hygiene solutions to help them lead a healthy and dignified life. Sustainable Innovations • We will deliver better, safe and environmentally sound solutions to our customers. We strive to continuously improve resource efficiency and environmental performance, while considering the entire lifecycle of new innovations. Code of Conduct • Our SCA supplier standard will be used to drive shared values and priorities throughout our supply chain. We will use it in all our supply chain contracts by 2015. • We will maintain compliance with our SCA Code of Conduct. All our employees will receive regular training in the Code. Employee Health & Safety • Our aim is zero workplace accidents, and we will reduce our accident frequency rate by 25% between 2011 and 2016 (achieved in 2014). • The international OHSAS 18001 standard will be implemented at all main sites by 2016. Working together for improved continence care Few people talk about incontinence, but millions are affected by it. Estimates put the figure at 400 million people affected globally. As the world’s largest supplier of incontinence products through the TENA brand, SCA is working actively to break the taboos that surround incontinence and to develop and improve continence care across the globe. TENA Solutions is our concept to help nursing homes find an optimal care solution by offering in-depth analysis and training combined with innovative product solutions. A study* of 181 nursing homes around the world that have implemented TENA Solutions showed clear improvements in 95% of the cases, including 38% less leakage, 47% improved skin conditions, 44% more time for rewarding care, 29% lower cost and 31% less waste. *Based on average percentages from 85-181 TENA Solutions case studies carried out in 2011-2013 in Europe, the US, Canada and China. Innovating for success Customer and consumer-based innovation drives growth and profitability and is key to SCA’s business success. Working with sustainability and resource efficiency drives innovation, and an innovative culture leads to more sustainable solutions. In our design and innovation process, sustainability is always in focus. Life cycle assessments examine the environmental impact of every phase of a product’s life cycle, from raw materials to manufacture, transport, use, reuse and disposal. For example, the carbon footprint of Libero’s open baby diapers was reduced by 24% between 2008 and 2014. Tork EasyCube is a dispenser system equipped with small sensors that register in real time when the paper needs to be refilled. This information is sent directly to the computers or mobile phones of the service personnel who can fix the problem. Our daily compass A company’s reputation is based on trust – trust it earns by managing its operations and relationships in a responsible manner. SCA’s Code of Conduct is the framework that helps us translate our values into action. All employees are regularly trained in the Code, covering topics such as business ethics, human rights and anti-corruption. Risk analysis, training, audits and monitoring processes are some of the tools we use to ensure compliance. This is a continuous effort that never really stops. We aim for zero workplace accidents We care deeply about our employees, which is why we make sure our workplaces are healthy and safe. We use the health and safety standards mandated by national legislation, international regulations and industry standards as a starting point. To these we add SCA’s own requirements, which typically exceed mandated requirements. We work tirelessly to identify workplace risks and try to eliminate them before they cause accidents. This dedication to safety has paid off. In 2014, we achieved our target of a 25% reduction in the accident frequency rate between 2011 and 2016, two years ahead of schedule. Securing a responsible supply chain With a large and increasingly complex global supply chain, the ability to monitor performance and risks and to manage social and environmental impacts among suppliers is of utmost importance. Our shared commitment to responsible sourcing rests on a three-pronged platform: signing of our Global Supplier Standard, performance disclosure through Sedex (the world’s largest database for sharing ethical supply chain data) and supplier audits. In 2013 and 2014, we carried out about 80 supplier audits focused on ethics and social responsibility in China, Mexico, India, Russia and Turkey. Working for a healthy world We share our knowledge of hygiene with girls, women, children, parents, relatives and caregivers across the globe. Here are some of the initiatives carried out in 2014. 900,000 900,000 Colombian girls attended education programs to learn about what happens in the body during menstruation and puberty. 12 million have participated in this program since its initiation in 1989. 7,600 4,000 In Hungary, 4,000 children were taught about the importance of washing their hands, particularly when it comes to avoiding illness. In Sweden, SCA has been educating teachers and students about forests and the forest industry for 40 years. Some 7,600 people took part in this program in 2014 and more than a million have participated since it was initiated in 1974. 2,500 SCA entered a partnership with UN’s Water Supply and Sanitation Collaborative Council (WSSCC) to break the silence on menstruation. In connection with SCA’s participation in the Volvo Ocean Race, SCA and WSSCC educated girls from South Africa and China on menstrual hygiene management. In China, seminars and educational programs were arranged for 2,500 nurses and professional caregivers, to support people suffering from incontinence. Since 2009,15,000 healthcare professionals have received training. A leading global hygiene and forest products company SCA is a leading global hygiene and forest products company that develops and produces sustainable personal care, tissue and forest products. Sales are conducted in about 100 countries under many strong brands, including the leading global brands TENA and Tork, and regional brands, such as Libero, Libresse, Lotus, Nosotras, Saba, Tempo and Vinda. As Europe’s largest private forest owner, SCA places considerable emphasis on sustainable forest management. www.sca.com