SCA
Annual Green Bond Letter 2015
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, 2005-2014
%
60
50
40
30
05 06 07 08 09 10 11 12 13 14
Air emissions, CO2 fossil
ktons
2,000
1,500
1,000
500
0
2012
2013
2014
2012
2013
2014
Air emissions, SO2
tons
1,000
800
600
400
200
0
Projects financed using proceeds from SCA’s green bond
SCA has used 1,029 SEKm of its green bond proceeds, of which 379 SEKm is allocated
for new financing and 650 SEKm for refinancing.
Project
Total investment, SEKm
Investment in 2014, SEKm
BioCoop, Ortviken, Sweden
Lime kiln, Munksund, Sweden
Water treatment, Lasso, Ecuador
ESAVE
392
489
28
Ongoing
75
156
28
120
Examples of projects
Munksund
In January 2015, a new lime kiln was
put into operation at the kraftliner mill
in Munksund, Sweden. Unlike its predecessor, the new kiln is fueled with
pellets instead of oil. This switch will
reduce the mill’s annual fossil CO2
emissions by 20,000 tons, or 75%,
and cut costs by SEK 50m per year.
BioCoop
SCA has invested SEK 380m and Sundsvall Energi SEK 100m in the BioCoop energy project,
the purpose of which is to increase deliveries of energy from SCA’s mills to the Sundsvall district
heating grid and reduce oil consumption. The project involved the redesign and conversion of
two boilers at Ortviken paper mill, enabling them to be fuelled with wood pellets, and connecting
Östrand pulp mill to the Sundsvall district heating grid. The new boilers reduce SCA’s carbon dioxide
emissions by approximately 20,000 tons annually.
Lasso
In 2013, a secondary wastewater
treatment phase was added to
SCA’s paper mill in Lasso, Ecuador,
to achieve high effluent standards.
This new system enabled the Lasso
mill to reduce its effluent BOD (Biochemical Oxygen Demand), COD
(Chemical Oxygen Demand) and
TSS (Total Suspended Solids)
concentrations by more than 90%
during 2014.
ESAVE
Since 2003, SCA’s ESAVE energy-efficiency program has contributed to energy
savings and improved efficiency in all operational business units. In 2014, 113
ESAVE projects were implemented, resulting in a 3.2% (1.8) reduction in energy
used per ton of product manufactured. This corresponded to a 810,000 MWh
decrease in energy consumption compared with 2013. The accumulated energy
saving was 7.7% in the 2010–2014 period.