SCA
Annual Green Bond Letter 2016
Green bond reporting
In March 2014, Svenska Cellulosa Aktiebolaget (SCA) became the first Nordic listed
company to issue a green bond. SCA raised SEK 1.5bn, which will be allocated to
projects with a positive environmental impact. The bond was oversubscribed and was
placed with approximately 30 investors.
SCA’s strategy and business model is based on financial,
environmental and social value creation. SCA takes a 360degree approach to its environmental impact, with targets
in place for reducing carbon dioxide emissions, increasing
biofuel and wind power production, achieving water sustainability and preserving biodiversity in its forests. SCA’s
production is energy intensive, particularly in its tissue and
forest products’ operations, and investments in renewable
energy and energy efficiency thus make financial and environmental sense.
Use of biofuel, 2006-2015
%
60
50
40
30
06 07 08 09 10 11 12 13 14 15
Air emissions, CO2 fossil
ktons
2,000
1,500
1,000
500
0
2013
2014
2015
2013
2014
2015
Air emissions, SO2
tons
800
700
600
500
400
300
200
100
0
Projects financed using proceeds from SCA’s green bond
SCA has used SEK 1,173m of its green bond proceeds, of which SEK 144m was allocated in 2015
and SEK 1,029m was allocated in 2014*.
Project
Total investment, SEKm
Investment in 2015, SEKm
Biofuel power plant, Nokia, Finland
Water treatment, Lilla Edet, Sweden
Water treatment, Kunheim, France
ESAVE
32.6
21.5
18.7
Ongoing
23.3**
21.5
16.3
82.4
* Details of the 2014 investment can be found in SCA Annual Green Bond letter 2015.
** SEK 14.2m of SCA’s investment in 2015 was allocated for new financing and SEK 9.1m
was allocated for refinancing
Examples of projects
Nokia, Finland
In cooperation with local partners, SCA is investing in a new biofuel power plant
that will provide SCA’s tissue paper mill in Nokia with a low-cost, renewable and
reliable energy supply. The plant will also reduce carbon emissions by almost
40%, equivalent to 20,000 tons per year.The biofuel plant will meet most of the
paper mill’s steam requirements, and provide all heating at the SCA facility.
Lilla Edet, Sweden
An investment of SEK 21.5m will reduce water usage from three million to two million cubic meters
annually, corresponding to one billion liters of water, or 30%. At the same time, the mill’s energy
consumption will be drastically reduced since smaller volumes of water will need to be heated
during the production process. Water treatment will also be improved.
Kunheim, France
SCA uses one of nature’s own smart systems to treat effluent from the company’s
paper mill in Kunheim, France. Since
December 2015, reeds growing on four
fields around the plant have been used to
treat the effluent. The reeds are planted in
pools filled with layers of sand and gravel
that filter the water naturally. Bacteria living
on the roots of the reeds break down the organic matter in the effluent. The combination
of bacteria, reeds and filtering layers make
it possible to treat water without adding any
more chemicals to the process. The process
is also cost-effective, energy-efficient
and requires little maintenance.
ESAVE
Since 2003, SCA’s ESAVE energy-efficiency
program has contributed to energy savings
and improved efficiency in all operational
business units. In 2015, 110 ESAVE projects
were implemented, resulting in a 0.5% (3.2)
reduction in energy used per ton of product
produced. The accumulated energy savings
in the 2010–2015 period amounted to 8.2%,
corresponding to a 1.6 TWh reduction in
energy consumption.