SCA Press Backgrounder
Sustainability
At the heart of everything we do
Updated September 2014
SCA is a leading global hygiene and forest products company. The Group
develops and produces sustainable personal care, tissue and forest products with
leading brands such as TENA, Tork, Libero, Libresse, Lotus, Nosotras, Saba,
Tempo and Vinda. Sustainability is at the heart of everything we do and has been
since SCA’s foundation in 1929. We are in the business of creating value for
people and nature – value that benefits not only the environment and communities
we serve, but also customers and consumers, investors, employees and other
stakeholders. Sustainability is an integral part of our business model.
SCA has established a number of ambitions and
targets for people and nature that form the basis of our
initiatives. While our ambitions are visionary and future
oriented, our targets are specific, measurable and
represent the milestones on the road to achieving our
ambitions.
We have chosen targets in the areas we consider most
relevant to our business operations, to our
stakeholders and to SCA’s future growth. This includes carbon emissions, wind power,
biofuels, sourcing, biodiversity, hygiene solutions, people and nature innovations, our
code of conduct and employee health and safety. (You will find our sustainability
ambitions and targets in the appendix).
Health and hygiene are essential for every individual
Health and hygiene are essential for every individual’s well-being and sense of dignity.
SCA’s solutions improve hygiene standards throughout the world. Our products and
services improve everyday life and provide people with the opportunity to live an active
life.
An increasing global population, more elderly citizens and improved economic conditions
around the world are leading to increased demand for hygiene products, thereby creating
opportunities for SCA. Already at an income of USD 2 per day, people prioritize hygiene
products. We adapt our business model to the varying needs of customers and
consumers. In relevant markets, we offer packages with one or two products and
distribute them to small, local stores to provide access to hygiene products of good
quality to consumers with limited resources.
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We share our expertise and educate on the importance of good hygiene practices. 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 hand washing 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 absence.
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 by SEK 14,000
(EUR 1,600) per year.
A respected member of society
SCA has been closely linked to the community since we were founded in 1929. Already
in the 1950s, we had far-reaching social programs for our employees.
We strive to be a responsible and respected corporate citizen in the communities where
we operate. In 2013, we conducted 370 community relations initiatives, comprising largescale programs as well as small local projects. We work to remove taboos surrounding
incontinence and support the biannual Global Forum on Incontinence, a platform for
debate and education.
We give a helping hand at disasters. For example, when the Haiyan typhoon hit the
Philippines in 2013, we contributed with a financial donation to Médecins Sans
Frontières as well as hygiene products. We participate in tree-planting initiatives in
Europe, North America, Latin America and Asia.
Our forest is a unique resource
As Europe’s largest private forest owner, SCA places considerable emphasis on
sustainable forest management. SCA actively manages 2.6 million hectares of forest
land – which almost equals the size of Belgium.
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 (illegally
logged timber, timber from forests with high conservation value or timber from areas
where human rights or the rights of indigenous people are violated). To that 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
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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.
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 in 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 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.
SCA has a net growth in our forest and we replace every tree harvested in our own
forests with three new ones. Our growing forests absorb 2.6 million tons of carbon
dioxide annually, which widely exceeds the carbon emissions from our own total
production. If half of the world’s forests were managed the same way as ours, a major
part of the global carbon dioxide emissions would be absorbed by growing trees.
People and Nature innovation
Innovation and sustainability are tightly interlinked and function as each other’s drivers.
Generally, new technologies generate more sustainable products while demands from
customers and consumers impose requirements for sustainable innovations.
We assess the social, environmental and financial aspects of an innovation, and to be
featured as a people or nature innovation tough criteria must be met.
We use lifecycle assessments to measure environmental improvements in every phase
of the products. For example, in 1987-2013, the climate impact (carbon footprint) of
Libero’s open diapers was reduced by 52%.
Set to boost green power
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 ahead of schedule
SCA focuses on reducing water usage in water-stressed regions of Mexico, Colombia,
Spain, Italy, the US and Australia. At our facility in Allo in Spain, a water tank has been
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
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16 m per ton in just two years. These examples of innovative thinking helped us achieve
our water reduction target two years ahead of schedule.
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Sustainability as a business driver
A company's success and competitiveness depends on and is closely linked to the
society it operates in. Taking community needs and challenges into account generates
economic success for the company and value for society.
For SCA, sustainability adds business value in the following ways:
Strengthening competitive edge
Customers prefer to work with a financially stable company that treats its employees
fairly. That’s why focus on creating value for people, society and nature while delivering
business value strengthens our consumer and customer relations as well as our offering.
Our initiatives also help our customers achieve their own sustainability targets. For
example, our Tork Xpress Countertop dispenser system guarantees a reduction in hand
towel use of at least 25% compared with a stack of loose towels. Such one-at-a-time
dispensing improves hygiene and reduces consumption and waste.
Reducing costs and carbon emissions
New resource-efficient solutions reduce the environmental impact and also lower costs.
For example, SCA was the first company in the world to replace its oil-fired lime kiln at
the Östrand pulp mill in Sweden with a new one running on renewable wood pellets. The
fossil carbon dioxide emissions were reduced by 80 percent while cutting costs by an
annual SEK 50m (EUR 5.8m). A similar lime kiln is being installed in Munksund, Sweden
that will be operational in 2014.
Our energy-efficiency program, ESAVE, designed to reduce consumption and carbon
emissions, takes a more small-scale 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.
Reducing risk
Having control of the business reduces risk. SCA has a range of tools and systems to
monitor compliance with our Code of Conduct. Social audits and reviews are frequently
conducted in our business units and our suppliers are required to report to the ethics
database, Sedex. Last year, we carried out about 60 supplier audits with a focus on
social responsibility and ethics and launched anti-corruption training. These activities
also save money by reducing the risk of corruption and other impropriate business
behavior.
Attracting investors and employees
Investors show an increasing interest in sustainability. Nearly 15% of the SCA shares are
owned by investors with sustainability criteria. SCA is featured in 126 sustainability funds
globally. Working for a sustainable company also strengthens employee pride and
engagement. Ethics and values are important factors to recruit top talent.
Strengthening the brand
The development of SCA as a strong corporate brand is a key priority. Customers and
consumers worldwide are increasingly scrutinizing the companies from which they buy
product and brands. We want to ensure that SCA is recognized as a front-runner in
sustainability and ethics.
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Facts and figures
•
Our Code of Conduct was updated in 2013 to better meet today's requirements
and expectations of a global company. The Code will be implemented
throughout the Group in 2014.
•
The first wind farm in the cooperation between SCA and energy company
Statkraft was inaugurated in Sweden in 2013.
•
A new biofuel-fired lime kiln at the kraftliner mill in Munksund will reduce fossil
carbon emissions by 75 percent and costs by SEK 50m (EUR 5.8m) annually.
The facility will become operational in 2014.
•
The Group’s health and safety efforts resulted in a 13-percent reduction in its
accident frequency rate in 2013.
•
One of SCA’s two water targets was achieved two years ahead of schedule. By
year-end 2013, water usage in water-stressed regions had declined by 10.4%,
with 2010 as reference year.
•
SCA has trained 10,000 nurses from 1,200 hospitals throughout China on issues
related to incontinence and elderly care.
•
In 2013, we carried out about 60 supplier audits with a focus on social
responsibility and ethics and launched anti-corruption training.
•
SCA’s forests net absorb 2.6 million tons of carbon dioxide annually, which
exceeds the carbon emissions all from all SCA’s own production.
•
About 15% of the SCA shares are owned by investors with sustainability criteria.
•
More than 40% of SCA’s sales and marketing people have experienced a tender
situation where SCA’s sustainability work has affected the outcome.
•
126 sustainability funds were invested in SCA in 2013.
•
In 2013, SCA conducted 370 community relations initiatives, comprising largescale programs as well as small local projects. In total, SCA invested SEK 34m
in community relations.
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Our People and 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.
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’re 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.
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SCA’s People targets
Target
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. In markets
in which we operate we
will:
• Provide information on
hygiene matters
surrounding our products
and services.
• Strive to implement
education programs for
girls, women and
caregivers.
• Strive to offer the best
value for consumers,
making hygiene solutions
affordable to everyone.
Target
We will deliver better,
safe and environmentally
sound solutions to our
customers. We strive to
continuously improve
resource efficiency and
environmental
performance considering
the entire lifecycle of new
innovations.
Target
Our SCA supplier
standard will be used to
drive shared value and
priorities through our
supply chain.
We will use it in all our
supply chain contracts by
2015.
Outcome 2013
• SCA holds the number
one or two positions in at
least one hygiene
product segment in
nearly 90 countries.
• We conduct hygiene
training programs in all
product segments on all
continents.
• SCA offers a broad
portfolio of products
ranging from the
premium segment to the
economy segment.
Outcome 2013
We launched several
sustainable innovations,
including TENA Identifi,
TENA U-test, Tork
Intuition Sensor and Tork
Portable Mini Centrefeed
Dispenser.
Outcome 2013
A total of 75% (73) of
SCA’s global hygiene
supplier base and 60%
(40) of its forest product’s
supplier base had
committed to adhere to
the SCA Global Supplier
Standard.
We will maintain
compliance with our SCA
Code of Conduct. All
employees will receive
regular training in the
code.
91% (87) of employees
had received Code of
Conduct training.
Target
Our aim is zero
workplace accidents, and
we will reduce our
accident frequency rate
by 25% between 2011
and 2016.
The international health
and safety standard
OHSAS 18001 will be
implemented at all main
sites by 2016.
Outcome 2013
The accident frequency
rate, including acquired
sites, amounted to 8.4%
(9.7).
By the end of 2013, 45%
(30) of SCA’s 67 main
sites were certified
according to OHSAS
18001.
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Nature targets
Target
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
our forests by 2020, with
2010 as reference year.
The production of wind
power on SCA forest land
will be increased to 5 TWh
by 2020, with 2010 as
reference year.
Outcome 2013
By year-end 2013, CO2
emissions had been
reduced by 11.8% in
relation to the production
level.
In 2013, energy production
from SCA’s forest-based
biofuels was approximately
909 GWh (870 GWh in
2010).
Wind energy from SCA
forest land was 0.75 (0.4)
Twh.
Target
We will achieve and
maintain our target of zero
fresh fiber-based material
from controversial sources,
including pulp.
We will preserve the
biodiversity of our forests.
A minimum of 5% of our
productive forestland 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.
Outcome 2013
All deliveries of pulp to
SCA facilities met the
Group target. All of SCA’s
wood-consuming units
were reviewed by
independent auditors and
met the requirements of
the Group target.
7% of SCA’s productive
forestland was set aside
from forestry in ecological
landscape plans.
Furthermore, 15% of the
hectares planned for
harvesting in 2013 was set
aside for preservation.
Target
We aim to achieve water
sustainability and we will
reduce our water usage in
water-stressed regions by
10% by 2015, with 2010 as
reference year.
All SCA pulp and paper
mills will employ
mechanical and biological
water treatment plants by
2015.
Outcome 2013
By year-end 2013, water
usage in water-stressed
regions had declined by
10.4%.
Of the Group’s 44 pulp and
paper mills, mechanical
and biological effluent
treatment has been
installed, or is in the
process of being installed,
in 42 plants.
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Awards and ratings
We constantly obtain proof that we are far ahead in the field. For the seventh
consecutive year, we have been selected as one of the world's most ethical companies
by the Ethisphere Institute. We are included in the FTSE4Good Index and the Climate
Disclosure Leadership Index.
External monitoring of SCA's sustainability work is increasing continuously. Fund
managers' and investors' choice of strong sustainability performance companies is often
based on external indexes and rankings.
Ethisphere Institute
For the seventh
consecutive year, SCA
has been ranked among
the world’s most ethical
companies.
MSCI World ESG Index
SCA is included in MSCI
World ESG Index, a
broadly diversified global
equity index comprised
of companies with high
Environmental, Social
and Governance (ESG)
ratings relative to their
sector peers.
WWF Environmental
Paper Company Index
SCA is recognized by
WWF for leadership
in transparency for
disclosing its ecological
footprint in the WWF
Environmental Paper
Company Index 2013.
Global Compact
SCA is a UN Global
Compact signatory as of
2008. SCA's
Communication on
Progress (CoP) reports
for 2008 and 2009 were
selected as
representatives of Best
Practice by Global
Compact.
FTSE4Good Index
The FTSE4Good is a
market index that
measures the
performance of
companies meeting
globally recognized
corporate responsibility
standards. SCA has
been listed on the
FTSE4Good global
sustainability index since
2001.
Climate Disclosure
Project (CDP)
SCA is included in the
Climate Disclosure
Leadership Index. CDP
is an independent nonprofit organization
holding the largest
database of primary
corporate climate change
information in the world.
Nordic Sustainability
Stars
SIX STAR is a Nordic
sustainability index
launched in 2009 by SIX
and Ethix SRI Advisors.
SCA is ranked among
the top 25 Swedish
companies.
Vigeo
SCA is included in the
following sustainability
funds of Vigeo: the
Ethibel Sustainability
Excellence Europe and
the Ethibel Sustainability
Excellence Global.
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Nasdaq OMX
SCA is included in OMX
GES Sustainability
Nordic and OMX GES
Sustainability Sweden,
two indexes for
responsible investments
launched by Nasdaq
OMX and GES
Investment Services.
Kempen/SNS SRI
Universe
SCA is included in
Kempen SNS SRI
Universe and is
approved for holdings in
the Orange SeNSe
Fund.
World Business
Council for Sustainable
Development (wbcsd)
SCA is a member of
wbcsd.
ECPI
SCA is a constituent of
ECPI indices
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SCA in short
SCA is a leading global hygiene and forest products company. The Group
develops and produces sustainable personal care, tissue and forest products.
We were founded in Sweden in 1929, through a merger of 10 Swedish forest operations.
However, our history dates back several hundred years before that, as the oldest of
those operations was established in 1673. SCA is headquartered in Stockholm, Sweden.
Our services and solutions are used by millions of people throughout their lives: from
early childhood, through their teens and adulthood and into old age. We bring innovative,
sustainable and value-added products to the world.
SCA has 44,000 employees. Sales in 2013 amounted to SEK 93bn (EUR 10.7bn). The
Group has sales in about 100 countries under our leading global brands, TENA
(incontinence products) and Tork (away from home professional hygiene products), as
well as local and regional brands such as Libero, Libresse, Lotus, Nosotras, Saba,
Tempo and Vinda. Our hygiene products, such as baby diapers, toilet paper, napkins,
incontinence products, kitchen rolls, feminine-care products, facial tissues and
handkerchiefs, are used by millions of people through their whole lives. Sustainability is
an integral part of our business model and is fundamental in everything we do.
As Europe’s largest private forest owner, SCA places considerable emphasis on
sustainable forest management. SCA has 2.6 million hectares of forestland – almost the
size of Belgium. The Forest Products business area offers Publication Papers, Kraftliner
(packaging papers), Pulp, Solid-wood Products and Renewable Energy. Our forest is a
unique resource, contributing positively to the environment and supporting our
sustainability agenda. It is a source of valuable and renewable raw materials, and also
provides living space for a multitude of flora and fauna. The forest absorbs carbon
dioxide, regulates water flows and generates value for society in the form of such
pursuits as hunting, fishing and recreation. It enables energy through wind power and
biofuels. Responsible forestry and reforestation can be one of the solutions to climate
change. SCA has a net growth in our forest and we replace every tree harvested in our
own forests with three new ones. Our growing forests absorb 2.6 million tons of carbon
dioxide annually, which widely exceeds the carbon emissions from our own production.
Health and hygiene are essential for every individual’s well-being and sense of dignity.
SCA’s solutions improve hygiene standards throughout the world. We share our
expertise and educate on the importance of good hygiene practices. We engage in
activities across the globe to teach young women about menstruation and puberty and
educate children about the importance of proper hand hygiene. SCA has trained 10,000
nurses from 1,200 hospitals throughout China on issues related to incontinence and
elder care.
Rising global population, increased life expectancy, a greater number of elderly citizens
and a higher standard of living all contribute to growing demand for hygiene products,
creating opportunities for SCA.
Our employees around the world unites under SCA’s core values; respect, excellence
and responsibility. These values are rooted in the company's history common goals and
shared ambitions going forward inspiring and challenging the organization.
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Notes to editors
Latest press releases: http://www.sca.com/en/Media/Press-releases/
Download high resolution images and videos: http://www.sca.com/en/Media/Pressimages-and-films/
Interim reports: http://www.sca.com/en/IR/Reports/Interim-reports/
Annual reports: http://www.sca.com/en/IR/Reports/Annual-reports/
Sustainability reports: http://www.sca.com/en/Sustainability/sustainability-contacts/
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. The Group has about 44,000 employees.
Sales in 2013 amounted to approximately SEK 93bn (EUR 10.7bn). SCA was founded in
1929, has its headquarters in Stockholm, Sweden, and is listed on NASDAQ OMX
Stockholm. For more information, visit www.sca.com.
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FOR FURTHER INFORMATION, PLEASE CONTACT:
Karl Stoltz, Media Relations Manager. Group Function Communications
Phone: +46 709 42 63 38, Direct: +46 8 788 51 55, E-mail: karl.stoltz@sca.com
Marita Sander, Communications Director Sustainability, Group Function
Communications
Phone: +46 705 47 53 34, Direct: +46 8 788 52 46, E-mail: marita.sander@sca.se
Johan Karlsson, Vice President Investor Relations, Group Function Communications
Phone: +46 70 511 15 81, Direct: +46 8 788 51 30, E-mail: johan.ir.karlsson@sca.com
Joséphine Edwall-Björklund, Senior Vice President, Group Function Communications
Phone: +46 8 788 52 34, E-mail: josephine.edwall@sca.com
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