The SCA Sustainability Effect Creating value for people and nature Creating value for people and nature For SCA, sustainability is not just a buzz word. It is an integral part of our business model and part of our strategy for growth and value creation. We are a leading global hygiene and forest products company with a long tradition of taking responsibility for people and for nature. As early as 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 to the environment. All around the world, SCA is involved in sustainability initiatives based on our core values: respect, excellence and responsibility. In this brochure, we invite you to learn more about our efforts to create value for people and nature. Welcome to our world and welcome to SCA! We do everything we can to improve our environmental performance We help our customers achieve their sustainability targets Employees are proud to work for SCA We guide consumers to make the right choice SCA impacts the lives of millions of people every day Our people and Our people and nature ambitions explain our long-term view on the type of company we want to be and the direction we wish 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 - two years ahead of schedule). • 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. Combatting 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 fuel oil with biofuels, thereby reducing carbon emissions by 75% and generating a cost saving of SEK 50m (EUR 5.8m) 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 2013, 1,000 projects were implemented, resulting in a 3.1% 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 commits heavily to wind power, thereby boosting the production of green electricity and making SCA less susceptible to fluctuations in energy prices. In 2013, we inaugurated our first wind farm in northern Sweden as part of SCA’s and Statkraft’s wind power venture. The farm’s 26 turbines will generate 200 GWh, corresponding to the electricity required by about 40,000 houses. And this is only the beginning. In total, SCA’s wind power plans include the construction of 830 wind turbines generating an impressive 7 TWh of green electricity. Water target achieved two years early Accessible water resources are distributed extremely unevenly between regions. This is why SCA focuses on reducing water usage in water-stressed regions in Mexico, Colombia, Spain, Italy, the US and Australia. At our facility in Allo in Spain, a water tank was installed enabling process water to be stored in the event of a surplus in the system. Previously, all surplus water was sent straight to water treatment. Our tissue mill in Sahagún, Mexico has reduced the volume of water used in tissue production from 25 to 16 m3 per ton in just two years. These examples of innovative thinking helped us achieve our water reduction target two years ahead of schedule. 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. 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 re-establishing habitats for sensitive species. In addition, more than 10% of the forest area is preserved for nature considerations in connection with harvesting. 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. • 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. An external study of four nursing homes in Denmark showed that using TENA Solutions resulted in increased resident well-being and an improved working atmosphere for the caregivers, freeing up as much as one third of their working time. The concept also reduced laundry by 37%, waste by 31% and the total cost per patient and year by SEK 14,000 (EUR 1,600). 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. Since the 1990s, life cycle assessments have become central to the way SCA designs and innovates toward sustainability. 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. The carbon footprint of Libero’s open diapers, for example, decreased by 24% between 2008 and 2014. The Tork Xpressnap dispenser system guarantees a reduction in napkin use of at least 25% when compared to traditional napkin dispensers. The Tork Xpress Countertop guarantees a reduction in hand towel use of at least 25% over a stack of loose towels. The one-at-a-time dispensing function improves hygiene and reduces consumption and waste. Zero-tolerance approach to corruption A company’s reputation is based on trust – trust the company earns by managing its operations and relationships in a responsible manner. At SCA, corrupt business conduct is not tolerated in any form, and we have developed a spectrum of methods to evaluate compliance with business ethics. In 2013, SCA adopted a new anti-corruption policy and assessed potential corruption risks. Anti-corruption is also included in our Code of Conduct and we have developed extensive training programs in the area. Our Business Practice Reviews, conducted by the internal audit function, are an effective way to identify risks in our daily operations. In 2013, reviews were conducted in the Czech Republic, Spain and South Korea. SCA’s whistle-blower system offers opportunities for all employees to confidentially report Code of Conduct breaches. 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 2013, our accident frequency rate declined by 13% and we are well on track toward achieving our target of a 25% reduction by 2016. 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, we carried out about 60 supplier audits focused on ethics and social responsibility in China, Mexico, India, Russia and Turkey. Reaching out to make a difference Around the world, SCA is actively engaged in hundreds of community relations initiatives that benefit the well-being of these communities. Handwashing programs Educating girls SCA delivers educational programs to girls through schools that teach them about physiological and emotional changes associated with puberty and menstruation. In Latin America alone, more than 1,500,000 girls have completed the programs. Working to improve school hygiene through handwashing programs is a key activity across many countries in Europe and Latin America. Improved hand hygiene can prevent the spread of viruses and contribute to lower sickness absences. Tree planting As Europe’s largest private forest owner, SCA is committed to the environment. The Tree Pool program supports employees in planting trees where they live, providing their communities with a piece of nature. Improving healthcare In China, an aging population poses a challenge to the healthcare system. SCA helps by providing senior citizens with at-home nursing services carried out by professional caregivers and by educating nurses in incontinence care. A leading global hygiene and forest products company SCA is a leading global hygiene and forest products company. The Group 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