2. Contents
SCA at a glance.......................... 2 Sustainability ............................ 32
Strategy ...................................... 4 Integrating sustainability .......... 34
Strategic priorities ...................... 5 Economic responsibility ........... 35
Innovation ................................... 6 Environmental responsibility..... 36
Building strong brands ............ 10 Social responsibility.................. 37
Our business ............................ 14 Employees ................................ 38
Personal Care ........................... 16 Key figures................................ 40
Tissue ....................................... 20 Addresses................................. 41
Packaging................................. 24
Forest Products ........................ 28
SCA has been listed SCA was named one of the SCA was ranked as one of In 2008, SCA became a UN
on the FTSE4Good global world’s most ethical compa- the world’s most sustaina- Global Compact member. SCA’s
sustainability index nies by the Ethisphere Insti- ble companies in 2010 by 2008 and 2009 Communication
since 2001. tute in the US. the responsible business on Progress reports were selec-
magazine Corporate ted as representative of Best
Knights. Practice.
❯ Read more at www.sca.com
3. SCA at a glance
SCA is a global hygiene and paper company
that develops, produces and markets personal
care products, tissue, packaging, publication
papers and solid-wood products. SCA has
sales in more than 100 countries and about
45,000 employees. In 2010, SCA had annual
sales of SEK 109bn.
This is SCA
4. Rubriknivå 1
The year at a glance
• Net sales amounted to SEK 109,142m (110,857)
ipsum lorem SEK 8,492m (8,004)
1)
• Profit before tax totalled
• Earnings per share amounted to SEK 7.90 (6.78)
Dividend of SEK 4.00 (3.70) per share
1)
Excluding items affecting comparability.
Group’s largest markets
SEKm
Germany
UK
US
France
Sweden
Italy
Netherlands
Spain
Australia
Denmark
0 4,000 8,000 12,000 16,000
SCA’s sales per region
Europe, 75%
North America, 9%
Latin America, 6%
Asia, 5%
Australasia, 4%
Other countries, 1%
2 This is SCA
5. SCA in numbers
15 %
22% 25 %
29 %
Group Group
27 % 109,142 9,608
SEKm SEKm
16 %
36 %
30 %
Net sales Operating profit
11 % 9%
19 %
31 %
Group Group
102,227 36 % 34 % 45,341
SEKm
38 %
22 %
Capital employed Average number of employees
Personal Care Tissue Packaging Forest Products
This is SCA 3
6. Strategy
Business concept
To sustainably develop, produce and market increasingly
value-added products and services within Personal Care,
Tissue, Packaging and Forest Products. SCA’s products
simplify the everyday lives of hundreds of millions of people
around the globe. They also generate strong cash flow
that enables favourable dividend growth and increased
value for the SCA share.
Mission
To provide essential products that improve
the quality of everyday life.
Vision
To be recognized as the leading provider of value
for customers, shareholders and employees in its field.
❯ Read more at www.sca.com
4 This is SCA
7. Strategic priorities
To improve profitability, increase growth and achieve the Group’s financial target
for return on capital employed, SCA has established the following prioritised areas:
Costs and cash flow · Capital efficiency · Innovation · Growth
Personal Care Tissue Packaging Forest Products
• Higher growth in • Continued focus • Raise the share of • Shift toward more
prioritised emerging on innovation complete packaging value-added and
markets • Greater presence in solutions customised products
• Advance SCA’s emerging markets • Lead development in within publication pa-
leading position in • Optimisation of pro- the packaging market pers and solid-wood
incontinence care duction and distribution through innovation and products
under the TENA brand • Increase growth in AFH product development • Utilise the potential
• Increase the launch under the Tork brand • Continued rationalisa- for energy production
rate of innovations • Continued develop- tion and efficiency • Continued productivity
• Enhance the efficiency ment of the brand plat- enhancement improvements
of production and form within consumer • Continued focus on • Greater raw material
distribution tissue in Europe Europe integration
• Gradual expansion
of the pulp operation
The Group’s financial target: return on capital employed of 13%
In 2010, return on capital employed, excluding restructuring costs, was 9%
This is SCA 5
8. Innovation for profitable growth
SCA has a long history of successful inno-
vations. Successful innovation activities lead
to differentiation and increased added value
for SCA’s customers and consumers, thereby
contributing to strong, market-leading positions
and brands, and creating value for SCA’s
shareholders and other stakeholders.
SCA’s general innovation process is deeply
embedded in the Group’s strategy and business
model. It represents a fundamental framework
for concept generation and innovation.
6 This is SCA
9. SCA’s general innovation process
Innovation is a means of developing and differentiating SCA’s products and services,
retaining and strengthening market positions, building stronger brands and driving growth.
SCA’s general innovation process • customer and consumer insight
is deeply embedded in the • new technology
Group’s strategy and business • business model
model. It represents a fundamental
framework for concept generation Innovations can start anywhere
and innovation based on trends in in the Group or in cooperation
the business environment, insight with external partners in a net-
into customer and consumer work. Experience proves that
requirements and technological an innovation becomes successful
progress. The innovation-related only when there is coherence
processes are continuously honed between customer and consumer
and streamlined. insight, new technology and the
Innovation activities in the business model.
Group’s four business areas rest
on three basic building blocks:
Driving forces for continuous innovation activities
Meet changing demands Create long-term, profitable Create value by combining Generating growth
and requirements among differentiation vis-à-vis higher customer and con- in sales, earnings and in
customers and consumers. competitors. sumer value with reduced the number of customers
manufacturing costs. and consumers.
This is SCA 7
10. Innovation activities
Innovation in the hygiene business
Innovation in the hygiene segment is a prerequisite for retaining
and strengthening market shares, building strong brands and
creating new values for customers and consumers. A faster
innovation and launch pace are two focus areas.
Innovation in Packaging
SCA’s Packaging business area has innovation expertise
in many areas throughout the organisation. Packaging
seeks to develop optimal packaging solutions with regard
to function, design, logistics, transport, and environmental
footprint. Another innovation area is strengthening retail
points of sale and reducing the complexity of the industry’s
packaging solutions.
Innovation in Forest Products
Innovations are a tool used by the Forest Products business
area to further strengthen its competitiveness. Efforts in this
respect permit Forest Products to move up the value chain
and produce products and solutions with higher value and
margins. By this means, SCA differentiates itself from the rest
of the industry, while also meeting the requirements of business
partners and customers.
8 This is SCA
11. Examples of innovation
ZeoCool Tork Xpressnap Café TENA Ultra Thins
ZeoCool is a temperature- In response to the demands During the year, TENA launched
controlled packaging that main- of the growing café market for a new ultra-thin incontinence
tains complete product integrity a customized solution, SCA has pad, featuring improved comfort
of +2° C to +8° C by controlling launched a napkin dispenser, and the same safety and odour
the internal payload space by which delivers only one napkin control of a thicker pad.
reacting to the external ambient at a time. This reduces costs for
temperature. Among other consumers and saves resources.
applications, ZeoCool is
designed for shipping pharma-
ceutical and medicinal products
requiring constant low tempera-
tures during shipping. ❯ Read more at www.sca.com
This is SCA 9
12. Building strong brands to stay competitive
SCA’s brand-building focuses on developing
distinct and relevant brands based on high
customer and consumer insight. Innovation
is a key element in this work. Successful
innovation work results in differentiation
and higher added-value for customers and
consumers, which contributes to strong
market-leading brands and value creation
for SCA’s shareholders and other stakeholders.
10 This is SCA
14. Brand strategy
SCA’s strategy is to build a strong Group-wide brand in which SCA
is a guarantor for all of the Group’s product brands.
SCA ensures that products, raw global strength, creates close consumer needs drive innovation
materials, processes and the entire relations with customers and and business activities, and
operations are developed in a sus- consumers while the economies these are decisive for developing
tainable and responsible manner. of scale result in increased effi- SCA’s brands. The expertise
In addition, the strategy is to ciency. The strategy also facilitates and commitment of the
build a brand portfolio with strong crossmarket synergies and cost employees is crucial in this effort.
product brands, globally, region- savings.
ally and locally. A strong local Responsiveness and insight
presence, combined with SCA’s with regard to customer and
Packaging and Forest Products • SCA’s pulp grades are Product brands
mainly conduct operations marketed under the product within Packaging
under the SCA brand, but also names Celeste, Star and Luna. To secure a unique offering
work with product brands. • Publication paper products for customers, Packaging has
are presented as part of the a number of patented packaging
Product brands Grapho family, for example, solutions and paper grades that
within Forest Products GraphoCote, GraphoVerde are positioned under the brands
• Power Pot is the seedling and GraphoMax. Herculight, ZeoCool, Mira,
developed by SCA that is Trueflo and Freshpack.
marketed to forest owners.
12 This is SCA
15. Global and regional brands
Global brands within the hygiene business
SCA is world-leading In the AFH tissue seg-
in incontinence care ment, SCA is the world’s
with the global brand third-largest supplier
TENA. TENA is sold with the global brand
in more than 100 Tork. Tork is sold in 80
countries, with sales countries, with sales
exceeding EUR 1bn. of more than EUR 1bn.
Examples of regional brands within the hygiene business
SCA’s strongest market Libresse is SCA’s lead- Tempo is SCA’s consumer SCA’s baby diapers
for baby diapers is the ing brand for feminine tissue brand with strong are sold in Southeast
Nordic region, with more care products and is market positions in Europe Asia under the Drypers
than a 60% market share centred geographically and Asia. Tempo offers brand and are market-
for the Libero brand. in Europe. products for personal leading in Malaysia
hygiene, including toilet and Singapore.
paper and handkerchiefs.
This is SCA 13
16. Our business
SCA consists of four business areas – Personal
Care, Tissue, Packaging and Forest Products.
The Group operates in 100 countries and has
production in about 40 countries. Although
Europe is SCA’s main market, the Group also
holds strong positions in North America, Latin
America and Asia Pacific. Expansion takes
place through organic growth and acquisitions.
14 This is SCA
17. Personal Care Tissue Packaging Forest Products
The business area com- Consumer tissue consists SCA is a full-service Production comprises
prises three product seg- of toilet paper, kitchen supplier of packaging publication papers, pulp
ments: incontinence care, rolls, facial tissue, hand- solutions and offers both and solid-wood products,
baby diapers and feminine kerchiefs and napkins. transport and consumer and is conducted at 17
care. Production is In the Away-From-Home packaging. SCA operates facilities in three countries.
conducted at 27 facilities (AFH) tissue segment, one innovation centre Products are mainly sold
in 23 countries. Products SCA delivers complete and 16 design centres. in Europe, but also in Asia,
are sold in more than 100 hygiene concepts to com- Production is conducted North Africa and North
countries throughout the panies and institutions. at 170 facilities in 21 coun- America.
world. Production is conducted tries. Products are sold in
at 38 facilities in 18 36 countries in Europe.
countries. Products are
sold in some 80 countries
throughout the world.
This is SCA 15
18. • Strengthened global leadership for the TENA
brand in incontinence care.
• Higher pace of innovation and launch of improved
customers offerings.
• Start of production of baby diapers in Russia.
• Acquisition of baby diaper operation in Mexico.
• Efficiency improvement programme commenced
in European baby diaper operations.
16 This is SCA
19. Personal Care
SCA is one of the world’s largest companies in personal care products and
has a portfolio of incontinence care, baby diapers and feminine care products.
Market low market penetration drive totals 25% and the market shares
The global market for personal demand for incontinence prod- in Europe and the US are 41%
care products has annual sales ucts. In developing countries, and 20%, respectively.
of just over SEK 290bn and is the use of all product categories
growing at a rate of some 3% is expanding as the level of dis- Baby diapers
annually. Europe accounts for posable income increases and SCA is the third-largest player
about 30% and North America insight into the health benefits in baby diapers in Europe with
for 20% of the overall market. of hygiene grows. a market share of 12%. In Europe,
Growth is fuelled by innovation, SCA sells baby diapers under
higher market penetration and Incontinence care own brands and retailers’ brands.
increased disposable incomes. In incontinence care, SCA is SCA’s strongest market is the
In mature markets, baby diapers a world leader with its global Nordic region with a market share
and feminine care products have brand TENA, which generates of more than 60% under the
attained high market penetration, annual sales of more than EUR Libero brand, which is also grow-
while the aging population and 1 billion. The global market share ing rapidly in Russia and parts of
Net sales, 22% Operating profit, 29% Capital employed, 11% Av. no. of employees, 19%
SEK 25,027m SEK 2,922m SEK 10,620m 8,610 employees
This is SCA 17
20. Eastern Europe. SCA commands strong feminine care brands
a leading position in Southeast supported by SCA’s global
Asia with the Drypers brand and brand platform.
in South America with the Peque-
ñín brand through a joint venture. Growth
Several factors suggest the con-
Feminine care tinuation of healthy growth in per-
SCA is the third largest player sonal care products, particularly
in feminine care in Europe with in emerging markets. Growth is
a market share of 8%. SCA holds driven by innovation, the global
leading positions in the Nordic population increase, an aging
region, Australia, New Zealand population, higher market pene- In 2010, SCA continued to develop
and fast-growing markets in East- tration and increased disposable new products at an increasingly rapid
ern Europe, Russia, Latin America incomes. SCA’s target is annual pace, advanced its positions in both
and the Middle East. Libresse, organic growth of 5–7%. mature and emerging markets and
strengthened the global brand TENA
Libra, Bodyform, Saba, Nosotras
and its regional and local brands.
and Nana are some of SCA’s
18 This is SCA
21. Strategic priorities: SCA’s sales by region
• Develop SCA’s world-leading position
in incontinence care under the TENA brand. Europe, 64%
• Continuously enhance production and North America, 14%
distribution efficiency. Latin America, 8%
Asia, 7%
• Continue to gain in-depth insight into
Australasia, 5%
consumer and customer needs and apply
Other, 2%
this knowledge to product development
and increase the launch rate of innovative
product offerings.
• Increase the growth rate in fast-growing
markets in Eastern Europe, Russia, Asia,
Latin America and the Middle East. SCA’s market positions
• Grow through category expansion North
under global brands and a greater share Europe America Global
of high-value products. Incontinence care 1 (41%) 3 (20%) 1 (25%)
• Continue activities related to the global Baby diapers 3 (12%) – 4 (5%)
brand platforms and utilise synergies. Feminine care 3 (8%) – 5 (5%)
Data is based on market data and SCA’s estimates.
This is SCA 19
22. • Higher market shares for the Tork brand.
• Higher pace of innovation and launch
of new products.
• Start of production at tissue plant in Mexico.
20 This is SCA
23. Tissue
SCA offers consumer tissue products including toilet paper, kitchen rolls, facial
tissue, handkerchiefs and napkins. In the Away-From-Home (AFH) tissue segment,
SCA delivers complete hygiene concepts to companies and institutions.
Market Consumer tissue SCA is the second-largest tissue
The global market for tissue SCA is Europe’s largest supplier supplier in Australia. Tempo,
is valued at approximately of consumer tissue, with a market Zewa and Plenty are the leading
SEK 385bn annually. Europe share of 25%, and is the world’s brands in large parts of Europe.
accounts for some 25% and third-largest with an 8% market The Edet brand has a strong
North America for about 30% share. position in the Nordic region.
of the overall market, with growth SCA has the brands Familia
rates of 3% and 2%, respectively. and Favorita in South America AFH tissue
There is a higher growth rate in through joint ventures, which hold For AFH tissue, SCA is number
Eastern Europe than in more strong positions in such emerging three globally with the Tork brand,
mature markets in the West as a markets as Colombia, Chile and which commands a 16% share
result of rising disposable incomes Equador. SCA has a strong posi- of the market. SCA is the market
and greater use of tissue products. tion with the Regio brand in the
large Mexican market.
Net sales, 36% Operating profit, 30% Capital employed, 36% Av. no. of employees, 38%
SEK 39,870m SEK 3,041m SEK 36,168m 17,327 employees
This is SCA 21
24. leader in Europe with a 19% Market penetration outside West-
market share and is number ern Europe and the US remains
three in North America with relatively low, with considerable
a market share of 20%. growth potential. SCA’s target is
annual organic growth of 3 – 4%.
Growth
The conditions for continued
growth in tissue are favourable,
particularly in emerging markets.
Growth is driven by innovation,
the global population increase,
higher market penetration and SCA continued to develop new
increased disposable incomes. products at an increasingly fast
pace, advanced its positions in both
mature and emerging markets and
strengthened the global brand Tork
and its regional brands.
22 This is SCA
25. Strategic priorities: SCA’s sales by region
• Continue to strengthen the global
Tork brand in AFH tissue. Europe, 66%
• Increase growth in AFH tissue. North America, 18%
Australasia, 8%
• Continue to focus on consumer and customer
Latin America, 7%
insight, innovations, product development
Asia, 1%
and marketing.
• Raise the company’s presence in emerging
markets, mainly through proprietary brands.
• Continue development of the consumer
tissue brand platform in Europe.
• Strengthen positions of own consumer
tissue brands. SCA’s market positions
• Provide a clearer, added-value offering North
for retailers’ brands. Europe America Global
• Enhance efficiency of production Consumer tissue 1 (25%) – 3 (8%)
and distribution. AFH tissue 1 (19%) 3 ( 20%) 3 (16%)
Data is based on market data and SCA’s estimates.
This is SCA 23
26. • Increased rate of innovation and growth
in high value-added segments.
• Restructuring programme carried out as planned.
• Divestment of the Asian corrugated board
operation.
24 This is SCA
27. Packaging
SCA is a full-service supplier of packaging solutions and offers both
transport and consumer packaging. Most of SCA’s packaging is used
for food, consumer durables and industrial products.
Market vation and design, SCA holds Corrugated board
The European corrugated-board a strong position in the high-value The two largest market categories
market is valued at approximately segment of food and consumer for corrugated board packaging
SEK 235bn and SCA is the durables. are the food and manufacturing
second-largest producer of corru- In collaboration with its industries, which account for
gated board and containerboard customers, the Group develops approximately 45% and 30%,
in Europe with market shares of complete packaging solutions to respectively. The largest segment
10% and 8%, respectively. meet exacting demands regarding in the food industry is processed
SCA commands favourable the quality and appearance food, followed by fresh food and
market positions in transport of packaging. SCA holds large beverages. Consumer durables
packaging where customers often market shares in the fast-growing is another major market category,
seek to establish long-term part- international luxury goods seg- accounting for about 15% of the
ners for complete logistics and ment in where quality and product total market.
design solutions. Thanks to its presentation and the brand can
market-leading position in inno- be enhanced through packaging.
Net sales, 27% Operating profit, 16% Capital employed, 22% Av. no. of employees, 34%
SEK 29,633m SEK 1,577m SEK 22,229m 15,218 employees
This is SCA 25
28. Growth In the long term, SCA’s focus
Within Packaging, SCA will con- is to develop its leading positions Strategic priorities:
tinue to focus on Europe, with the in advanced packaging in high • Continue to rationalise
aim of achieving growth in pace value-added segments. These and streamline operations.
with the market. Continued focus segments have a more stable • Provide complete
on efficiency and innovation are rate of growth and offer SCA packaging solutions
important initiatives to increase future expansion opportunities and added-value offering.
the share of value-added prod- with solid growth.
• Lead development in the
ucts. Work on developing the
packaging market through
value chain and making it more
innovation and product
efficient and sustainable as well
development.
as finding new product areas are
• Capitalise on growth
also initiatives aimed at strength-
opportunities in profitable,
ening competiveness. Long-term
high-value segments.
competitiveness is also benefited
by SCA’s environmental profile. • Continued focus on
Europe.
26 This is SCA
29. SCA’s sales by product segment
Conventional corrugated board
packaging, 69%
Consumer packaging, 20%
Service, 4%
Industrial packaging, 4%
Protective packaging, 3%
The Packaging business area
is fully integrated – from forest
to recycling.
This is SCA 27
30. • New business unit formed, SCA Energy.
• Sales company established in China.
• Jointly-owned sawmill company founded.
• Efficiency improvement programme commenced
at Ortviken paper mill.
• Increased share of value-added products.
28 This is SCA
31. Forest Products
SCA is one of Europe’s most profitable producers of forest products
that offers its customers publication papers, pulp and solid-wood products.
Market GraphoVerde is a high-quality publication) and LWC paper
SCA is Europe’s largest private magazine paper with more than (Light Weight Coated). These
forest owner with a holding of 50% recycled fibre. paper grades are used for maga-
2.6 million hectares of forest, GraphoMax is an uncoated zines, catalogues and advanced
of which 2.0 million is managed publication paper grade based printed advertising, which are
for timber production. SCA is the entirely on fresh fibre. The printing all areas that offer favourable long-
sixth-largest publication papers characteristics of GraphoMax term global growth.
manufacturer and the third-largest are very impressive, making the SCA is the sixth-largest
solid-wood products manufacturer. paper grade ideal for advertising publication papers manufacturer
Forest Products primarily con- materials in particular. in Europe and the eighth largest
ducts operations under the SCA among manufacturers of LWC
brand but also works with product Publication papers paper. SCA is also the sixth-
brands. SCA specialises in the prime- largest among producers of SC
Luna is a strong brand for a pulp quality segments in magazine paper and newsprint.
grade with high absorption capacity. paper – SC (Super Calandered
Net sales, 15% Operating profit, 25% Capital employed, 31% Av. no. of employees, 9%
SEK 17,123m SEK 2,455m SEK 31,475m 4,186 employees
This is SCA 29
32. Pulp, timber and and furniture. SCA is the third-
solid-wood products largest solid-wood products
The European market for solid- manufacturer in Europe.
wood products amounts to some
SEK 110bn, with demand primarily Growth
deriving from the construction and The aim for Forest Products is
house building industries, which to grow in line with the market.
are relatively cyclical. Continuing the work on enhancing
Forest Products has an annual efficiency and customer-driven
pulp capacity of 520,000 tonnes. innovation is essential for
Approximately 40% of this capa- consolidating positions and
city is utilised within SCA for the improving profitability. The primary The European market for publication
production of tissue and public- focus is on increasing the share papers amounts to SEK 140bn.
ation papers. The remainder is of customised publication papers
sold to external customers. and solid-wood products. Efforts
SCA is also a qualified supplier to develop the value chain, make
of purpose-designed wood prod- it more efficient and sustainable,
ucts to the industry for further and develop new product areas
processing into such items as are also important to strengthen-
panels, floors, windows, doors ing competitiveness.
30 This is SCA
33. Strategic priorities: SCA’s sales by region
• Rationalisation and efficiency enhancement
to achieve higher profitability. Europe, 88%
• Higher share of value-added and customised Asia, 8%
products in publication papers and solid-wood Africa, 2%
products. North America, 1%
Latin America, 1%
• Greater raw material integration.
• Utilise the commercial strength of SCA’s leading
position in the environmental area, for example,
in renewable raw materials and recyclable products.
• Capitalise on the potential of energy production
and effective energy solutions available in SCA’s
extensive holdings of forests and forestland and
in the industry’s processes and by-products.
• Gradual expansion of the pulp operations.
This is SCA 31
34. Sustainability
For SCA, sustainability is not just a buzz word. It is an integral part of
our operations and a part of our strategy for growth and value creation.
We have a long tradition of taking responsibility for people and for nature.
As early as the 1950s, SCA had an extensive social programme 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. We have a system-
atic approach and our intent is to be as transparent as possible. The foun-
dation of our sustainability strategy comprises on four long-term targets.
32 This is SCA
35. SCA’s four sustainability targets
Carbon dioxide from 100% control of fresh- Improved Universal Code
fossil fuels shall be fibre raw materials water usage of Conduct
reduced by 20%
SCA has worked pro- SCA is Europe’s largest SCA’s target is to Over the past two
actively for some time private owner of forest- reduce water usage decades, SCA has
to reduce emissions land and the Group’s by 15% and to reduce grown into a global
from fossil fuels. The own forests have been the organic content in company with about
Group adopted its first certified in accordance wastewater by 30% 45,000 employees
carbon dioxide target with the FSC, Forest during the period 2005 worldwide. This places
in 2001. In 2008, SCA Stewardship Council, to 2010. SCA’s water stricter demands on
introduced a new quan- since 1999. SCA also target 2005 – 2010 has the company’s social
tified carbon dioxide purchases large quanti- reached its conclusion and environmental
target that requires the ties of fresh-fibre raw and work is under way responsibility. SCA’s
Group to reduce emis- materials from external to prepare future water Code of Conduct ap-
sions from fossil fuels suppliers. SCA’s goal is initiatives and targets. plies to all employees at
by 20% by the year that no wood fibre used all locations worldwide.
2020, with 2005 as in production derives
a reference year. from controversial
sources. ❯ Read more at www.sca.com
This is SCA 33
36. Integrating sustainability into strategy
Sustainability is an integral part of SCA’s operations and the company’s
strategy for growth and value creation.
For SCA, corporate sustainability • Sustainable solutions: “SCA
is a business approach that proactively delivers sustainable SCA Sustainab
ility Report
2010
generates long-term shareholder and innovative solutions based
value by embracing opportunities on customer and consumer
and managing risks deriving from insights, with added value for
economic, environmental and SCA and its stakeholders.”
social developments.
There are good reasons for • Sustainable operations: “SCA
sustainability excellence. It im- delivers sustainable products
proves competitiveness, reduces through safe, resource-efficient
cost and risk. It also contributes and environmentally sound
to strengthening the SCA brand operations.”
and to attract investors and • Sustainable dialogue with
employees. stakeholders: “SCA is one
The sustainability strategy is of the industry leaders within
an integral part of the company’s sustainability and the company SCA publishes a separate sustain-
strategy and business plans, and proactively interacts with key ability report each year. The Global
Reporting Initiative (GRI) guidelines,
supports SCA’s strategic focus stakeholders.”
level A+, are applied in the report
areas: cost and cash flow, capital and a detailed GRI index table can
efficiency, innovation and growth. be viewed at www.sca.com.
The sustainability strategy frame- The Sustainability Report was
work is divided into three key reviewed in its entirety by PwC.
directions: SCA’s Sustainability Report is
available at www.sca.com.
34 This is SCA
37. Economic responsibility
Sustainability programmes are of key importance to SCA’s ability to attract
customers, employees and investors. From an owner perspective, sustainability
initiatives help to maximise the value of the company.
Creating value regions to develop economically included. In 2010, interest from SRI
for stakeholders through the business relationships (Socially Responsible Investment)
Through its business operations, SCA has with local stakeholders, players remained considerable.
SCA helps to generate economic such as employees and local
development in society and eco- suppliers.
nomic development among its
stakeholders – both directly and SCA included in many
indirectly. sustainability indexes Our economic agenda
SCA provides its customers with SCA is assessed annually by • Long-term competitiveness,
products and it purchases mater- several ranking institutes. Since delivering growth and
ials and services from suppliers. 2001, SCA has been listed on profitability.
Wages are paid to employees, FTSE4Good, an index measuring • Create value for our
who in turn contribute to society earnings and performance among stakeholders.
through taxes and purchasing companies that meet globally
• Deliver sustainable prod-
power. Shareholders receive divi- recognised norms for corporate
ucts based on resource-effi-
dends and society receives responsibility. Carbon Disclosure
cient, safe and environmen-
income in the form of taxes. Project, Global Challenges Index,
tally compatible operations.
SCA’s community involvement Vigeo, Orange SeNSe Fund and
OMX GES Nordic Sustainability • Solid, long-term business
contributes positively to the local
Index are examples of other relationships.
communities. SCA’s operations
in emerging markets help these indexes and funds in which SCA is • Contribute to economic
development in emerging
markets.
This is SCA 35
38. Environmental responsibility
SCA endeavours to minimise its environmental footprint to the greatest
possible extent. The emphasis in the environmental work is on climate
and energy, responsible use of wood raw material and water.
Climate and energy ardship Council (FSC), the most paper. Accordingly, two water
SCA is an energy intensive com- stringent international standard for targets were introduced in 2005.
pany and major investments are forest management. SCA is one of The water target was concluded
required to achieve the Group’s the world’s largest suppliers of in 2010 and work is under way
carbon dioxide target. SCA works FSC-certified products. All of the to develop new targets for SCA’s
systematically to replace coal and timber supplied to SCA’s pulp and water management.
oil with natural gas and biofuel. paper mills and sawmills is FSC
ESAVE is SCA’s energy effi- certified or meets the FSC criteria
ciency programme. Since its for controlled wood.
launch in 2003, more than 1,300 The level of growth in SCA’s
projects have been carried out, forests exceeds the harvesting rate Our environmental agenda
resulting in accumulated saving by 20%, which means that SCA’s
effects of 700 GWh of electricity forests absorb a net amount of • Reduce carbon emissions
and 1,400 GWh of heat on an 2.6 million tonnes of carbon dioxide from own use of fossil
annual basis. In financial terms, per annum. This corresponds to the fuels and from purchased
this corresponds to approximately total amount of carbon emissions electricity and heat.
SEK 600m in annual savings. generated by all of the Group’s • Control sources of all fresh
production facilities. fibre-based raw material.
Responsible use of wood • Reduce water usage in
raw material Systematic work to areas with water scarcity.
SCA’s own forest holding is enhance water usage • Ensure high quality of
certified in accordance with the SCA uses large volumes of water wastewater.
requirements of the Forest Stew- in the manufacture of pulp and
36 This is SCA
39. Social responsibility
SCA activities in the field of corporate social responsibility
are an important part of corporate sustainability.
Its work is based on the Code audit unit. Since 2005, SCA has responsible conditions in its own
of Conduct, which provides the conducted evaluations of the operations and sets correspond-
basis for SCA’s approach to such Code of Conduct, including ing requirements for suppliers and
issues as health and safety, human rights, at facilities in other business partners.
employee relations, human rights, countries where an elevated risk
business ethics and community is assessed to exist. In 2010, the
involvement. process was updated for evalua-
tions of the Code of Conduct and
SCA’s Code of Conduct in December, an initial evaluation
SCA is committed to ensuring was conducted in Mexico accord-
compliance with the Code of ing to the new guidelines. Our social agenda
Conduct and policies in all its
• Strong focus on health
operations throughout the world. Supplier evaluation
and safety.
This is achieved through regular In 2010, a new global supplier
reviews and follow-up of non- standard was developed for • Ensure human rights
compliance with the Code. In SCA’s hygiene business based compliance.
2010, a total of eight cases of on the previous supplier standard. • Prevent corruption
non-compliance with the Code Compliance with SCA’s values and bribes.
of Conduct were reported. and ethical principles is an impor- • Assessment of suppliers.
Business Practice Reviews are tant part of the standard. SCA • Recruit, retain and develop
used to monitor compliance with sets high standards for socially employees with the right
business ethics and are regularly skills.
carried out by the SCA internal
This is SCA 37
40. Employees
SCA has 45,000 employees in 60 countries. The Group has operations in countries
with widely differing conditions and regulations relating to the working environment.
Shared values A living Code of Conduct
SCA’s three core values Respect, SCA has produced its Code of
Responsibility and Excellence, Conduct based on the Group’s
form the basis for how the Group three core values. The Code
conducts business and advances serves as a tool enabling opera-
the operation – with a strong tions to be conducted in accord-
of Conduct
focus on environmental and ance with ethical principles, appli- SCA Code
social responsibility. These cable legislation and regulations.
values unite all 45,000 employees The Code of Conduct is an inte-
at SCA under a shared set of gral part of the way the company Code of Conduct
beliefs that form the basis for does business.
leadership and employeeship. The Code provides guidelines The Code of Conduct is avail-
Respect and responsibility for SCA and its employees regard- able in 19 languages and is
for people and the environment ing health and safety, human based on SCA’s core values of
involves continuously developing rights, business ethics, employee “Respect, Responsibility and
operations in a sustainable and relations and community involve- Excellence,” and a number
responsible manner. The pursuit ment. Ensuring that the Code of internationally accepted
of excellence provides inspiration of Conduct is a living document declarations and conventions,
to renew and improve products throughout the Group requires including the UN’s declaration
and solutions in order to generate continuous efforts to reinforce on human rights, ILO’s core
increased added value for all of and rebuild awareness of its conventions and the OECD’s
SCA’s customers, consumers and principles. guidelines for multinational
other stakeholders. companies.
38 This is SCA
41. Employer awards and ratings
Below are some examples of recognition we’ve received
from outside groups for being a model employer.
Top Arbeitgeber 2011
On March 10th, the international research company CRF
Institute awarded SCA’s hygiene business with the title Top
Arbeitgeber 2011 for its outstanding and modern personnel
management. For the fourth time in a row, SCA was able to
qualify for the title as one of 101 companies. SCA particu-
larly impressed in the areas of career opportunities as well
as in additional employer benefits and work-life balance.
Universum Ideal Employer 2011 (Sweden)
In 2011 SCA conquered again rank 7 in Universum's sur-
vey "Sveriges bästa arbetsgivare", where employees rated
their employers.
Top Workplace 2011 (USA)
SCA’s Philadelphia employees participated in a workplace
survey conducted by Workplace Dynamics LCC, the Phila-
delphia Inquirer and Philadelphia Daily News. We are proud
to announce that SCA has been named as one of the Top
Workplaces in the survey.
Súper Empresas 2010 (Mexico)
SCA is represented on rank 11 in CNN Expansións list Súper
Empresas 2010 with Mexico's most popular employers.
This is SCA 39
42. Key figures
2010 2009
SEK EUR SEK EUR
Net sales, SEKm/EURm 109,142 11,450 110,857 10,466
Operating profit, SEKm/EURm 8,677 911 8,190 773
1)
Operating profit , SEKm/EURm 9,608 1,008 9,648 910
Operating margin, % 8 7
Operating margin, %1) 9 9
Profit before tax, SEKm/EURm 7,561 794 6,546 618
1)
Profit before tax , SEKm/EURm 8,492 891 8,004 755
Profit for the year, SEKm/EURm 5,592 587 4,830 456
1)
Profit for the year , SEKm/EURm 6,281 659 5,906 557
Earnings per share, SEK 7.90 6.78
1)
Earnings per share , SEK 8.89 8.32
Cash flow from current operations per share, SEK 10.53 16.36
Dividend, SEK 4.00 3.70
Strategic investments, incl. acquisitions, SEKm/EURm –2,920 –306 –3,082 –291
Equity, SEKm/EURm 67,821 7,538 67,906 6,577
Return on capital employed, % 8 7
1)
Return on capital employed, % 9 9
Return on equity, % 8 7
1)
Return on equity, % 9 9
Debt/equity ratio, multiple 0.51 0.60
Average number of employees 45,341 49,531
1)
Excluding items affecting comparability.
40 This is SCA
43. SVENSKA CELLULOSA AKTIEBOLAGET SCA (publ)
PO Box 200, SE-101 23 STOCKHOLM, Sweden. Visiting address: Klarabergsviadukten 63
Tel +46 8 788 51 00, fax +46 8 788 53 80 Corp. Reg. No.: 556012-6293 www.sca.com, info@sca.com
OPERATIONS
GHC (Global Hygiene Category) SCA Tissue Europe and SCA Packaging Europe
SE-405 03 GOTHENBURG SCA Personal Care Europe Culliganlaan 1 D
Sweden München Airport Center (MAC) BE-1831 DIEGEM
Visiting address: Postfach 241540 Belgium
Bäckstensgatan 5, Mölndal DE-85336 MÜNCHEN-FLUGHAFEN Tel + 32 2 718 3711
Tel + 46 31 746 00 00 Germany Fax + 32 2 715 4815
Visiting address:
Terminalstrasse Mitte 18
Tel + 49 89 9 70 06-0
Fax + 49 89 9 70 06-204
SCA Forest Products SCA Americas SCA Asia Pacific
SE-851 88 SUNDSVALL Cira Centre Unit 516, 159 Madang Road
Sweden Suite 2600 Xintiandi, Luwan District
Visiting address: 2929 Arch Street SHANGHAI 200020
Skepparplatsen 1 PHILADELPHIA, PA 19104 China
Tel + 46 60 19 30 00 USA Tel + 86 21 6135 7288
+ 46 60 19 40 00 Tel + 1 610 499 3700 Fax + 86 21 6135 7264
Fax + 46 60 19 33 21 Fax + 1 610 499 3402
The emission of green house gases from the production C ECOL AB
DI
R
of this printed product including paper, other materials,
EL
NO
and transports has been offset by investment in the 341 123
corresponding amount of certified reduction units from
ER
PR
IN T
the CDM project Gayatri Agro Industrial Power Limited. TE
D M AT
This report is produced by SCA in cooperation with Hallvarsson & Halvarsson. Photo: Peter Hoelstad, Håkan Lindgren and Juliana Yondt. Print: Elanders in Falköping 2011.
