The SCA Sustainability Effect Community relations 2011/2012 Making a difference in people’s lives Everyday, SCA impacts the lives of millions of people and the nature in which we operate. We call it the SCA Sustainability Effect. SCA invests considerable time and money in community relations, ranging from major initiatives affecting people across the globe to small-scale projects with a local focus. Community relations are about establishing and maintaining a mutually and sustainable beneficial relationship with the communities where we do business and helping to improve people’s everyday lives. It’s about SCA being a good corporate citizen willing to assume responsibility for people and nature, and taking an active interest in the well-being of the communities in which we operate. In return, SCA gains a number of long-term benefits in the form of community support, loyalty and goodwill. It also helps us attract and retain top talents, giving employees a sense of pride in working at SCA and adding to our corporate culture. Making community relations part of our business strategy and targets also positions SCA favourably among customers and improve our market position. Positive, proactive links with the community have a beneficial effect on our bottom line. SCA prioritises initiatives with a clear link to its business, which is why many of these relate to hygiene, health, education, women and children. Kersti Strandqvist Senior Vice President, Corporate Sustainability Community relations as part of the business strategy Reaching out through education, partnerships and donations is a powerful way for SCA to make a difference in people’s lives. Competitive business and social pressures are forcing a redefinition of the relationship between company and community. The inclusion of community involvement in a company’s business strategy not only helps attract and retain top talents, but it also creates a competitve advantage that can add to the bottom line. In 2011, SCA invested about EUR 2.8m (SEK 26m) in community relations, corresponding to 0.3% of the company’s operating profit. Some 300 projects were registered in the company’s web-based system, which is more than twice the number reported in 2010. More than 100 of the initiatives are related to health and hygiene, making it the dominating area for community relations in terms of the number of projects, although the total amount spent on sports and culture was slightly more. Sports and culture include major projects, such as the partnership with the Philadelphia Eagles’ American football team in the US and sponsorship of the Timrå ice hockey team in Sweden. Emergency projects are dominated by donations to the Red Cross and included Japan earthquake relief and tornado relief support in the US. Education mainly relates to health and hygiene, such as Tork’s “Clean hands” education programme in various countries. More information about these initiatives is presented in the following pages. Australia, New Zealand, Canada and the US top the World Giving Index, compiled by the British Charities Aid foundation, meaning that these are the countries and citizens most likely to make donations to charity. The tradition of making donations as part of being a good citizen most likely explains why the Americas and Asia Pacific (including Australia and New Zealand) are the regions that invest the most in community relations initiatives by SCA. The Americas and Asia Pacific represent 24% and 20%, respectively, of the funds invested, while their corresponding shares of net sales are 9% and 4%. SCA’s community relations investments in 2011 by region Europe, 56% Americas, 24% Asia, 20% SCA’s community relations investments in 2011 by focus area Sports/Culture, 30 % Health and Hygiene, 28 % Emergency support, 17% Education, 10% Environment, 7% Other, 1 % Health and hygiene Many of SCA’s community relations initiatives support improved health and hygiene conditions. As the world’s second-largest hygiene company, SCA has a responsibility to raise awareness of the importance of strict hygiene standards. Working for improved school hygiene Small children are notoriously prone to infection. Staff and child education is essential. Textile towels – which spread infection – are still widely used. SCA has the ambition to raise children’s awareness of the importance of hygiene. Russia, Germany, Latin America, Austria, Sweden and Switzerland are examples of markets where SCA brands Tork (AwayFrom-Home tissue) and Pequeñin (baby diapers) arrange school programmes. The programmes include such activities as hygiene information, distribution of product samples or developing preschool guidelines for good hygiene practices. Tork’s “Clean hands” hygiene education programme received the “Best for Children” quality award from the Russian state in 2011. Increased awareness breaks taboos in China In China, average life expectancy has increased by almost ten years over the past four decades. This has increasingly pushed the taboo subject of adult incontinence to the forefront. To provide elderly Chinese with a more dignified life, it is crucial to break the silence associated with incontinence. Through an extensive training programme for nurses, SCA is helping to break the taboos, as well as increase awareness of incontinence and TENA’s range of incontinence products. At the beginning of 2012, SCA had trained more than 6,000 nurses at 1,100 hospitals. Some of SCA’s many initiatives: • SCA supports the biannual Global Forum on Incontinence, a conference that attracts thought leaders in the incontinence care field from across the globe. • In Russia, social workers without a medical background often care for people in their homes. TENA educates them regarding incontinence care and hygiene procedures. Education Education is a key element in helping individuals develop to their full potential. SCA drives a number of educational programmes to raise the general level of awareness of hygiene and forestry. Lessons in growing up Entering puberty is no picnic. There is a need for relevant information about the physiological and emotional changes that girls experience during this period in life. Several SCA school programmes in Latin America are directed at teenage girls to educate them about what happens to their bodies during puberty and menstruation. In Bolivia, Colombia, Ecuador, the Dominican Republic, Chile, Peru and Puerto Rico, more than one and a half million girls have completed the programmes since their inception. The programmes are run by SCA’s feminine care brands, Nosotras and Donnasept. Bringing forests to school “The forest in school” programme is one of the old- est school cooperation projects in Sweden. It started in 1973 with the mission to provide school children with a better understanding of forests, forestry and the forest industry. Thousands of children and teachers take part in visits to SCA harvesting sites, sawmills and paper mills every year and SCA offers schools the opportunity to use a forest on SCA land for school activities. As part of the project, SCA is also involved in teacher training and offers practical experience to school pupils interested in forestry or engineering. Some of SCA’s many initiatives: ’ • More than 200 nurses and care providers participated in the first TENA Empowering the Elderly seminar in Malaysia. The aim was to educate care providers in matters concerning elderly care. • SCA has an ongoing scholarship programme for children of SCA employees in the US and Canada. Scholarships are awarded based on achievements in academic performance, leadership and participation in school and community activities. Partnerships and donations Supporting and liaising with an organisation is an effective way of promoting the social and economic well-being of communities. The Red Cross – one of SCA’s partners SCA partners with local Red Cross organisations worldwide. The involvement varies from long-term partnerships, such as with the Red Cross in France, to emergency relief. In France, SCA and the Red Cross entered a partnership in 2011 aiming to support the country’s homeless and encouraging employee involvement. The first joint activity was the distribution of 40,000 hygiene kits to homeless people. The ability to maintain personal hygiene is essential to people’s health, self-esteem and dignity. The partnership includes sponsorship of an educational road show for teenagers, information programmes for elderly and internal involvement among SCA employees, including first-aid training, fundraising and volunteer work. Improving hygiene conditions in Africa Due to poor sanitary and hygiene conditions, illness and death are common aspects of everyday life in Sudan and Niger. SCA’s hygiene expertise can directly contribute to improving the quality of life in these countries. In partnership with the NGO Oxfam Novib, SCA works to improve hygiene conditions in South Sudan and Niger. As part of this initiative and through its Libresse (feminine care), Edet (consumer tissue) and Tork (Away-From-Home tissue) brands, SCA is building latrines, installing sanitary facilities such as hand-washing sinks and providing soap in schools. SCA is organising lessons in hygiene and providing free sanitary towels and awarding scholarships to girls to increase their chances of attending and completing school. In Niger, SCA’s TENA (incontinence care) brand supports young women suffering from incontinence caused by fistula due to childbirth at a very young age. Some of SCA’s many initiatives: • SCA’s Libra brand of feminine hygiene products has been a sponsor of The Ovarian Cancer Research Foundation (OCRF) in Australia since 2006. Libra’s support also extends to raising awareness of the disease and the OCRF via special advertising campaigns. • Cash4kids – employees vote for a children’s charity with a focus on health and supporting local charities and communities in the UK. • SCA’s TENA brand has donated incontinence care products to the Huband Cradle of Hope orphanage in Nairobi, Kenya. The products are intended for children, many of whom are affected by HIV. • In Malaysia, SCA has a collaboration with the National Autism Society. Activities include fundraising events, charity concerts, etc. Sports and culture Sports and culture often play a major role in local communities. SCA’s involvement ranges from sponsorship of professional teams at national level to contributions to local events. Going Green with the Philadelphia Eagles SCA’s partnership with the Philadelphia Eagles American football team since 2007 involves more than “just” sports. The Eagles selected SCA and Tork as its sole hygiene supplier due to SCA’s excellent sustainability commitments. SCA played a vital role in helping and advising the Eagles set up their ground-breaking Go Green programme, making them the ”greenest” national sports team in the United States. The Philadelphia Eagles continuously search for ways to reduce their environmental footprint, such as using beverage cups made of corn and purchasing 100% recycled tissue and soap-dispensing systems from SCA. The partnership also includes mutual events, such as tree-planting projects. Supporting the local community For many years, SCA has sponsored Timrå IK, the leading ice hockey team in the Sundsvall region. Ice hockey is a very popular sport in Sweden; many SCA employees in the Sundsvall region are enthusiastic fans of Timrå IK and have children who play in junior ice hockey teams. SCA owns a VIP lounge in the Timrå IK ice hockey arena, which is frequently used for representation. A substantial share of the money donated to Timrå IK is earmarked for sports activities for juniors and girls. Timrå is a professional hockey team, but most SCA community initiatives in the region are directed towards a broad range of sports as well as youth activities, including soccer, figure skating, judo, theatre, music and social events. Some of SCA’s many initiatives: • For several years, SCA in the US has donated money to the American Cancer Society’s Sole Burner Run/Walk. SCA also covers registration fees for participating employees and family members from its Wisconsin facilities. • In the UK, SCA supported a Coast-to-Coast Charity Bike Ride to benefit women suffering from breast cancer. The bike ride took place over four days and covered more than 370 kilometres. • For the fifth consecutive year, TENA organised the “For a full life” race in Mexico. More than 5,000 people, most of whom over the age of 50, participated in the event. • To support a healthy work-life balance, SCA in Germany arranges holiday activities for the children of employees during the summer vacation. This enables employees to work while their children can partake in holiday activities on site. • SCA and TENA sponsored two races in France in support of the fight against breast cancer, “La Parisienne”, a women-only race in Paris with 23,000 participants and the Odyssea races organised throughout France with 42,000 participants. Environment Community relations include caring for the environment. Few aspects of life affect people as much as their surrounding environment and their ability to enjoy it. • A “Tree Pool” for SCA employees brightens up their communities with a lasting gift. The Tree Pool programme helps employees to plant trees where they live, providing their communities with a piece of nature. Participation in the programme has been even greater than expected and trees have been planted throughout Europe in all kinds of locations, from preschools and sports clubs to community centres and town centres. • SCA and its UK and Ireland consumer tissue brand Velvet are leading a pioneering tree-planting project in Brazil. So far, it has resulted in over three million indigenous trees being planted in previously deforested areas. • SCA has joined the “Million Tree Project” to fight desertification and rebuild forests in Inner Mongolia, China. To date, SCA has donated 2,000 trees to combat climate change and restore the ecological environment. Emergency relief SCA focuses on long-term community relations activities. However, the company acknowledges the need for emergency efforts in crisis situations. • SCA contributed to the efforts of the UN refugee agency (UNHCR) in Ethiopian refugee camps by supplying 1.6 million feminine care products to Somali women and girls forced to flee their homes because of civil war and drought. In emergency situations, women comprise a particularly vulnerable group and sanitary products are crucial for their health and dignity. The feminine care products had a value of about EUR 42,000. • In collaboration with its Japanese business partner, Unicharm, SCA donated EUR 11,000 to the Red Cross emergency teams in Japan to support relief efforts following the earthquake and tsunami in March 2011. • Thailand’s worst flooding in 50 years affected the lives of millions. In addition to donating Drypers baby diapers to an emergency relief centre on the out- skirts of Bangkok, SCA employees also donated time and funds to aid flood victims. Personnel in Malaysia, Singapore, the Philippines and Thailand raised EUR 3,500 for the cause, a donation that was matched by SCA. SCA is a global hygiene and forest company that develops and produces personal care products, tissue, publication papers and solid-wood products. Sales are conducted in some 100 countries. SCA has many well-known brands, including the global brands TENA and Tork. Sales in 2011 amounted to EUR 11.7 billion (SEK 106 billion). SCA has approximately 37,000 employees. More information at www.sca.com Contacts: kersti.strandqvist@sca.com, SVP Corporate Sustainability, christina.ameln@sca.com, CSR Director, marita.sander@sca.com, Sustainability Communications Manager