We Lifecycle 2011 English

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WeliecycleSCAs interace with people and nature


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We have a swhen it comes to environmental

For SCA, sustainability is not just a buzz word. It is

an integral part o our operations and a part o our

strategy or growth and value creation.

We have a long tradition o taking responsibilityor people and or nature. As early as the 1950s,

SCA had established an extensive social pro-

gramme or its employees. And our origins as a or-

est products company has given us a deep connec-

tion with and responsibility to the environment.

SCAs sustainability timeline

1929The oundationo the SCA Group. SCA

builds houses or its

employees, schools,

inrastructure, etc.

SCA at a glanceSCA is a global hygiene-products and paper company with annual

sales o EUR 11.3bn (SEK 107bn) and approximately 45,000 employ-

ees. We sell our goods personal care products, tissue, packaging,

publication papers and solid-wood products in more than 100

countries around the world. More than hal o our revenues come

rom the sale o consumer products. The products are sold under

1950s SCA introducesits frst social programs. The

Social Fund (Sociala onden)

is established.

At the beginningo the 90s SCA initiates the useo LCA (Lie Cycle Assessments) to evaluate

a products environmental impact.

1995The EuropeanWorks Council (EWC) is

established.

1994 SCA GraphicLaakirchen is one o

the frst papermills in

Europe to introduce

ISO 14001 and EMAS.

1998 SCA publishes itsfrst environmental report.

2

1987 SCA adopts anature conservation policy

putting protection o bio-

diversity at the top o the

agenda.

1920 1990


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trong caseand social responsibility.

global brands, such as TENA and Tork, as well as strong regional

brands like Zewa, Tempo, Libero, Drypers and Saba. Our packag-

ing is used to transport ood, industrial products and consumer

durables and also unctions as point-o-sale containers and dis-

plays. Our orest products include high-quality newsprint and mag-

azine paper.

All around the world, SCA is involved in sustain-

ability initiatives based on our core values: respect,

excellence and responsibility. We have a systematic

approach and our intent is to be as transparent aspossible.

In this brochure we invite you to look at the

things we do to sustain human nature. Welcome to

our world!

At the end o the 90sRMS (Resource Management System),

SCAs database or collection o a wide

range o environmental data, is built up.

1999We establish a

goal or increased

recovery o waste.

2001The Groupestablishes its carbon

dioxide target.

2004 SCA signs a global ramework agreementwith ICEM, which represents more than 20 million

union members worldwide.

We establish our water usage target.

2005 Base year or assessmentso human rights in potential countries

o risk.

3

2003 SCAs corevalues are established.

1999 SCAs orests arecertifed in accordance with

FSC (Forest Stewardship

Council).

20082000

We introduce our goal or responsible sourc-ing o wood fber. Introduction o a newcarbon dioxide target.

2008 SCA joinsthe UN Global

Compact.

Introduction o SCAs Code o Conduct. Introduction o Business

Practice Reviews.


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Liecycle Evidence Report

humans

+ nature+ lie

+ cycle

=We liec

Environmentally and socially

4


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ycle!

ContentWe lie cycleEnvironmental responsibilityReducing carbon dioxide emissions 67

Water a primary objective 8

Responsible use o raw material 89

Innovative energy sources 11

We lie cycleSocial responsibility

We understand responsibility 13

A duty to break taboos 1415

An impressive track record 16

Liecycleevidence report

Examples, acts and fgures

on how we liecycle

The interace o humans and nature We interace

with people: our mission is to provide essential

products that improve the quality o everyday lie.

Every day, we aect the lives o millions o people

employees, customers, consumers, shareholders andother stakeholders.

We interace with nature: it is the source o our

products. We have worked with nature or centuries,

learning rom it, and gaining deep insight into its

cyclical processes. Our interaction with nature is

done with respect and concern or the orests o the

uture.

Liecycle We take the long view, the liecycle view.

We analyze our products environmental ootprint atevery stage, rom their beginnings in nature, to their

end o lie, and at every point in the cycle in between.

Thats why we collect and recover used papers and

transorm them into new products. Thats why we

use the same water over and over again, conserving

this scarce resource. Thats why we replace every

plant we harvest rom our own orests with three

new ones.

This way, we bring the liecycle o nature into bal-

ance with the human liecycle. In short, We liecycle.

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Taking the measure oresponsibleWe liecDoing well requires eort. Doing

even better requires ambitious

goals and the will to achieve

them. SCA has committed to

three key environmental goals

in areas we consider most im-

portant or our business.

We set up our carbon

dioxide target as early as 2001.

In 2008, the next step was taken

with the introduction o a new,

quantifed carbon dioxide

target.

Water is one o the most

important and most sensitive

natural resources on earth. In

2005, SCA introduced its water

target or more efcient use o

water.

Responsible use o wood

raw material is our third environ-

mental target. We want to make

sure that no fber-based material

used in production derives rom

controversial sources.

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Reducing carbondioxide emissions

SCA has long recognized the needor a global reduction in greenhousegases, in particular carbon dioxide.To that end, in 2001 we began a com-pany-wide eort to reduce our CO2emissions. We have accomplishedmuch since then, including the sys-tematic replacement o coal and oilwith bio-uels and natural gas. In2008, SCA ormulated a quantifed

CO2 target; through to 2020, emis-sions rom ossil uels will be reducedby 20%, using 2005 as areerence year. At year-end 2010,carbon dioxide emissions, in relationto the production level, had declinedby 4.2%.

1 300 projects or reducing CO2

In 2003, SCA initiated its Group-wide ESAVE program, designed to reduceenergy consumption and reduce CO2 emissions. Since its launch, more than1 300 small-scale projects have resulted in annual accumulated saving eectso 700 GWh o electricity and 1,400 GWh o heat. These projects have alsoyielded annual savings o EUR 63m.

TURNOFF

THELIGH

T

WHENLE

AVING

KEEPTHEHEATINSIDE

USE THE

ELECTRICITY TIMER


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environmental stewardship

yc e

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Our orests as absorberso carbon dioxideWe are Europes largest private owner oorest; we have 2.6 million hectares o or-est land actively sequestering carbon diox-ide rom the atmosphere. In any given year,only about 1% o the orest land under ourstewardship is harvested and each treeelled is replaced with three new ones. Thenet result, in terms o carbon dioxide, isthat the total carbon dioxide output romall our manuacturing worldwide is

matched by the net absorption o CO2 inour orests.

That said, we are actively pursuing thereduction o carbon dioxide emissions asone o our three key environmental goals.

SCA mills use substantial amounts o elec-tricity. While most o it comes rom electricgrids, about one quarter o the electricityused at our mills comes rom on-site co-generation.

More than 40% o SCAs uel balanceconsists o biouels, with the bulk o theremainder being generated by natural gas.Only about 4% is derived rom oil and 1%

rom coal.Investment in these on-site combustion

plants, while expensive, yields greatimprovements in energy saving and emission reduction. Additionally, these new

plants are oten able to burn productionwaste as uel, ampliying their environ-mental value.

Some examples o recent activity:

AtthestrandpulpmillinSweden,a new lime kiln is being built to replacetwo oilfred kilns. The new kiln will be

fred with uel pellets and reduce strandscarbonemissionsby80%.InAschaffenburg,Germany,anew

natural-gas based co-generation plantis being installed, which will be sel-

sufcient and expects to sell a surpluso 200 GWh to the national electricitygrid.

Greenelectricity


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8

Some other important initiatives

Water an increasingly

valuable resource

One o SCAs environmental objectives is to continually reducethe amount o resh water consumed by our pulp and papermills. Between 2005 and 2010, our goal was to reduce reshwater use by approximately 15%. As an associated objective,we aim to reduce the organic content o our wastewater by30% over the same period. The latter o these objectives wasachieved already in 2009.

Some o our plants have even more ambitious goals. Our BoxHill tissue plant in Australia, or example, has cut resh waterconsumption in hal over a ten-year period. Our paper mill in

Flagsta, Arizona, in the US, had been cited as the citys secondlargest user o potable water. Today, our Flagsta plant uses100% reclaimed water. Whats more, the plant is an especiallyefcient user o water, reducing its consumption per ton o paperto about one third o the industry norm.

Our water targets were concluded in 2010, although waterremains a prioritised matter or SCA and we are working toestablish new objectives.

A true concern or nature

SCAs vast orest holdings in northern Sweden aremanaged in line with a truly long-term perspective. Overthe past 50 years, the standing timber volume has beenincreased by 40% and the growth rate has more thandoubled.

Sustainable timber production is only one o our

objectives, however. We manage our orests to preservebiodiversity and with the intent that our orests will be atleast as rich in timber and natural beauty in the uture asthey are today.

Extensive use o recovered paper

About 50 percent o the wood fber we useoriginates rom recovered paper. Indeed,SCA is one o Europes largest collectorsand users o recovered paper. In certainmarkets, the US or example, weproduce tissue products rom 100%

recovered paper, a perormancelevel that has contributedto our position as the mostenvironmentally awaretissue producer.Recycling allows usto extract moreproducts and servicesrom the fber weharvest.


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Responsible useof raw material

One o SCAs primary environmentalgoals is to ensure that none o thewood fber we use comes rom contro-versial sources. To that end, SCA man-

ages its own orests the source oabout hal o our raw material according to the Forest StewardshipCouncils international orest manage-ment standards. In addition, we carryout regular assessments o our suppli-ers o wood raw material.

The net result is that SCA is oneo the worlds largest suppliers oFSC-certifed products. SCA alsoacknowledges other orestcertifcation schemes such asPEFC, SFI and CSA.

SCA has been working with Lie Cycle Assessment(LCA) since the early 90s. LCA includes a completeenvironmental assessment o the entire value chain(rom raw material, product manuacturing andtransportation, through usage and waste disposal)and is well integrated in SCAs development process

o new products. We use the LCA as a tool to fndout how we can optimize our product developmentto reduce the environmental impact.

For example, we investigate how we useresources in the value chain. Can we select moreefcient materials with regard to unction andenvironment? Are there new materials with lowerenvironmental impact? Can we decrease the energyin production processes and/or change to bettersources? Over the past 20 years, the possibility omaking thinner hygiene products by using newmaterials with higher absorption capacity has led tomajor environmental improvements.

Finally, using LCA lets us evaluate both productsand processes as to their overall environmentalimpact, even to their potential contribution toglobal warming.

Lie Cycle Assessment


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Ambitious environmental goals arefne, but the results need to beollowed up and measured to havecredibility. Measurement requires

a comprehensive system ormanaging the collection, analysisand presentation o environmentaldata.

At SCA, we have been usingsuch a resource management sys-tem (RMS) since the late 1990s tomonitor how we use energy, water,transportation and raw materials.We use the inormation or internalcontrol and to redirect resourceswherever we need improved per-ormance. Precise, consistent mea-

surement lets us deal with the actsand veriy the real results o ourenvironmental initiatives. And weare happy to share the inormationwith external stakeholders.

Measurement isa key to success

The mark of environmentalresponsibility

Our raw material, wood fber, is used or the production ohigh-quality products. We strive to maximize the potentialo this renewable raw material. Residue rom one processis, to a large degree, used as raw material or another pro-cess.

Materials that are not suitable as raw material or pro-duction are used or energy production. More than hal oeach tree harvested is used or energy production, either atour own mills or by our customers.

Logging residue is increasingly used as a biouel. Saw-dust is processed into uel pellets or large heat plants as

well as or household heating. SCA is a major supplier oorest-based biouels, delivering 3.5 TWh in 2010.

Increased productiono biouel

SCA is recognized or its environmental leadership, a posi-tion that is evident rom the certifcation o our products andmanuacturing sites by leading environmental organizationsand governmental authorities. Among them:

ISOtheInternationalStandardsOrganization,pub -lished standards under ISO 14001 speciying the require-ments o an environmental management system. All oSCAs European pulp and paper mills and most produc-tion sites around the world are ISO 14001 certifed.

EMAStheEco-ManagementandAuditSchemeoftheEUs European Council Regulation.

TheEUFloweranEUefforttopromotesustainabilityina rame-work or an integrated lie-cycle oriented prod-uct policy. The unction o the EU Ecolabel is, in part, tostimulate demand or products with reduced environmen-tal impact.

BlaueEngelGermanyslandmarkecolabelandtheworlds frst environmental label.

GreanSealacerticationwidelyrecognizedthroughoutNorth America.

EcoLogoaNorthAmericandesignation.SCAwasthefrst American sanitary paper manuacturer to earn theEcoLogo certifcation.

NordicEcolabeling,theSwanthisecolabelisacon-sumer buying guide introduced by the Nordic Council oMinisters.

EnvironmentalChoiceNewZealandaproductlabelingprogram that recognizes the eorts o manuacturers toreduce environmental impact.

IndustriaLimpiainMexiconationalcleanindustry

standard. LEEDintheUSgreenbuildingdesignstandards.


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Waste asfuture energy

Reducing waste is a key goal at SCA. But when wasteis inevitable, we put it to good use. At our Witzenhausen

manuacturing acility in Germany, production waste thatwas once sent to a local landfll together with household

waste rom the region is now used to power the co-gener-ation plant that supplies the mill with electricity and heat.And the power plant produces a signifcant surplus o

electricity, which is delivered to the local grid.

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SCA is making a major invest-

ment in wind power. Togetherwith the Norwegian power com-pany Statkrat, SCA is building awind arm on its orest land innorthern Sweden. We are con-ducting another wind-powerproject in partnership with theNorwegian company Fred.Olsen Renewables. Its remotelocation removes some o themore contentious issues that cansurround wind arms in popu-lated areas. At the same time,

prevailing winds and the prox-imity o existing transmissionlines make the location logisti-cally ideal.

The plans encompass a totalo 750 wind turbines witha potential o producing 4,400GWh per year.

At the same time as we helpboost the production o greenelectricity, we also become lessimpacted by power prices.

SCA set toboost greenpower


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Social responsibility & consumer know-howWelieWe touch peoples lives in

several important ways. One

is as a responsible employer o

approximately 45,000 men and

women in 60 countries around

the world. Another is as a major

manuacturer and responsible

marketer o consumer products.

As an employer, we recognize the rights oour employees. The right to organize. Theright to a healthy workplace. The right toopportunity or development. The right toair pay and air treatment.

As a manuacturer, we recognize that allmanner o people parents and babies,men and women, children and seniors,consumers and industrial customers relyon SCAs everyday products every day. Tis-sue products, baby diapers, eminine prod-ucts, incontinence products, packaging,

orest products, even biouels. It all comesrom SCA, a company that cares not onlyabout the source o its products, but theirdestination and the journey they take toreach it.

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cycle

We are mindul that our products come

into intimate contact with the consumerso those products. This act means we mustbe scrupulously careul with the materialsand, in particular, with the chemicals usedin our manuacturing processes. Extensive

testing and meticulously detailed systems

or chemicals and materials handlingensure that our products and the con-sumers who use them remain sae. As aminimum, we comply with existing prod-uct saety laws and regulations.

We understand responsibility

Meeting needs

in all markets

SCA wants to grow and broaden its cus-tomer base. Emerging markets are play-

ing an important role in achieving thesegoals.

Per-capita income is markedly lowerin emerging economies than in theindustrialized world. Yet the desire orhigh-quality consumer goods and orthe comort and convenience they bringis no dierent than it is in more advancedeconomies. To meet these consumerdemands, SCA markets basic, lessexpensive products and oten packagesthem with ewer units in every package,such as a single diaper.

To make the products more acces-sible to more customers, SCA sometimesuse non-traditional distribution chan-nels in remote areas. One example is inCosta Rica, where SCA has establishedpartnerships to enable its products to bedistributed to approximately 16,000very small mom and pop ownedstores called pulperias, many o whichare located in remote, hard-to-reachareas.

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SCA supports

the UN GlobalCompact

In 2008, SCA became a signatory to theUN Global Compact. It is the worldslargest voluntary corporate citizenshiporganization with more than 8,700companies and other stakeholdersparticipating rom more than 130countries. It seeks to promote theidea that business can be part o the

solution to the challenges o globaliza-tion and help in the realization o amore sustainable and inclusive globaleconomy. The SCA Code o Conduct,launched in 2004, is based upon theUN Global Compact principles.


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Some other important activities

Respect or

human rights

SCA is in the business o improving

peoples lives. This includes such

basics as improving awareness o

and access to eminine care and

incontinence care products. In a

world where poverty, social taboos

and lack o awareness can result in

limited development opportunities,

SCA plays a key role in starting the

dialogue among key stakeholders,such as healthcare proessionals

and consumers.

A duty to speak outMeeting womens everyday needs

Lack o access to eminine care products, orexample, can keep girls out o school or daysat time, jeopardizing education and leading tolower rates o literacy or women. As a majorsupplier o eminine care products, SCA has anobvious role in awareness eorts designed toimprove womens lives through the wider useo eminine care products.

For example, in Russia, SCA sponsors aneducational programme or teenage girls attheir schools the Libresse School. Trainedpsychologists speak to the young women aboutphysical and emotional changes during

puberty, and educate them about menstruationand eminine care. One o the aims o the pro-gramme is to help build the sel-confdence oyoung women. A total o 175,000 girls at more

WebelieveintheUNDeclarationofHumanRights.Wesup-port that belie with action.

Since 2005, we have undertaken human rights assessmentsat SCA acilities in 12 countries, with special emphasis onacilities in the emerging markets o Latin America, Eastern

Europe and Asia, where we consider the risk or violations tobe higher. These assessments evaluate such actors as condi-tions o employment, salaries, benefts, business practices,

and health and saety. Perhaps most importantly, however,these assessments help determine how well our Code o Con-duct and respect or human rights is being integrated intoour day-to-day operations.

Not surprisingly, these assessments show areas that could

be improved but in general they also show that SCAs acili-ties are o a high standard and conduct their operations incompliance with our Code o Conduct.

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We care deeply about the people o SCA, which is why we makesure our workplaces are healthy and sae. We use the health andsaety standards mandated by national legislation, internationalregulations, and industry standards as a starting point. To these

we add SCAs own requirements, which typically exceed man-dated requirements. We search assiduously or workplace risksand try to eliminate them beore they cause accidents. We are

aided in that eort by rigorous saety training and educationaleorts and by technical process improvements that eliminate ormitigate hazards in the workplace.

Many SCA acilities use national or international manage-

ment systems such as OHSAS 18001 to assist in their eortstowards improvements in health and saety.

than 3,000 schools have completed theprogramme.

Incontinence productsFew talk about incontinence, but millions

are aected by it. Estimates put the fgurebetween 5 and 7% o the worlds population.One in every our women over the age o 35experience bladder control problems.

As the worlds largest supplier o incon-tinence care products through the TENAbrand, SCA is working actively to break thetaboos that surround this condition.Through afliations with scientifc organi-zations in several countries throughout theworld, SCA is helping to raise standards oincontinence care, support incontinenceresearch, and improve training and inor-

mation provided to the healthcare commu-nity. Additionally, SCA uses its leading posi-tion to raise awareness and help remove thestigma associated with incontinence.

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Improvement o health andsaety in the workplace

Zero tolerance or

corruption

At SCA, corrupt business conduct oany nature is not tolerated. In 2008,

the Group thus developed a methodto evaluate compliance with businessethics, known as Business PracticeReviews. The method is an eectivemanner to identiy risks in dailyoperations, since the issues addressednot only concern SCA, but also theconduct o the Groups business part-ners, such as suppliers, distributorsand service companies.

In 2010, plants in Mexico and Italywere assessed.


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Weliecycle!Do you?sca.com

RecognitionFor the ourth consecutive year, SCA was named one o the worlds most ethical companiesin 2011 by the Ethisphere Institute, US.

In 2010, SCA was ranked as one o the worlds 100 most sustainable companies

by Canadian Corporate Knights.

SCA has been listed on the FTSE4Good global sustainability index since 2001.

SCA became a UN Global Compact member in 2008. SCAs 2008 and 2009 Communication

on Progress reports were selected as representative o Best Practice by the UN.

In 2007, SCA was named the worlds second greenest company by Eiris (Ethical Investment

Research Services) and the British daily, the Independent.

Production:n3

Print:E-print,2011

We Lifecycle 2011 English

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