This is Setra 2015

Transcription

This is Setra 2015

This is Setra
WITH SUSTAINABILITY REPORT 2015
SETRA GRO UP 2 0 1 5
1
Contents
CEO’s comments
4-5
Our business
6-7
Our sustainability work
8-9
Stakeholder dialogue
10-11
Market outlook
12-13
Our offering
14-17
Our employees
18-19
Our raw material
20-21
Our production
22-23
Our working environment
24-25
Our transports
26-27
GHG report
28-29
Board and Group Management
30-31
GRI Index
32-33
Setra in figures
34
Addresses
35
2
S ETR A G R O U P 20 15
Setra at a glance
Setra is one of Sweden’s largest wood products companies.
We process raw material from responsibly managed forests
and offer climate-friendly products and solutions for building
and living in the global market. Production and sales of wood
products is our core business. Sawn and planed redwood and
whitewood products account for the majority of our total annual
sales of SEK 4.2 billion. Exports to Europe, North Africa, the
Middle East and Asia account for about 60% of sales.
Setra Group includes nine sawmills, four processing units
(including one small unit in the UK) and two modular building
factories. Production units are spread throughout Sweden but
with a geographic concentration to central Sweden. Setra has
approximately 900 employees, most of whom work within production. Our principal owners are Sveaskog (50%) and Mellanskog (49.5%). The remaining 0.5% is owned by approximately
1,500 small shareholders.
Setra was formed in autumn 2003 through a merger between
Mellanskog Industri AB and AssiDomän Timber Holding AB. The
aim was to create a driving force in the development of a modern
wood products industry. The first part of the name “SE” reflects
the company’s Swedish roots. The second part of the name “TRA”
is the Swedish word for wood (“trä”) and indicates the focus of
the company’s operations. Setra = Swedish Wood.
Wood for Life
Key figures 2015
Operating profit
SEK 47 million
Net sales
SEK 4,218 million
Export share of sales
61%
Number of sawmills
Number of processing units*
Number of modular
building factories
=
9
4
2
15
*Of which one in UK
Production of sawn wood products
1.65 million m3
Average number of
employees
938
Average age
Proportion of women
48
14%
Raw material in Setra’s production
Pine
60%
Spruce
40%
Proportion of sales of sawn wood
products certified according to FSC®
or PEFC
38%
Proportion of thermal energy
from renewable fuels
99%
SETRA G ROUP 2 0 1 5
3
CEO’S COMMENTS
Our sales targets are also
our climate targets
“We cannot be satisfied with a profit of SEK 47 million even though we have done a good job
internally. Optimising every link in the value chain is important if we are to achieve long-term and
sustainable profitability,” says Hannele Arvonen, Setra’s President and CEO.
Hannele, how would you comment on the
results for 2015?
“We cannot influence market development, raw
material prices or exchange rates. But these
are all components that affect our earnings. It is
important that we focus on what we can influence
ourselves. That we optimise all the time in big and
small ways. Due to the uncertain market situation,
we decided to implement production cutbacks
in the fourth quarter. This has had a negative
impact on our earnings but means that we have
maintained good control of stocks and cash flow.
In order to optimise capacity utilisation at existing
processing units, we have decided to phase out
the planing mill in Valbo in 2016 and relocate
these operations to other units within the Group.”
How did the market develop during the
year?
“An imbalance between supply and demand for
wood products resulted in price falls in our main
markets. But demand for wood products in an
international perspective remains good. And we
mustn’t forget that we operate in a global market
where we are affected by both positive and negative
flows. In North Africa and the Middle East, war,
currency problems and a lower oil price have all
contributed to uncertainty in the wood products
market. When it comes to processed products,
the Swedish market is strong and a growing need
for housing construction is affecting demand for
our Plusshus products. We are working with our
bioproducts with a long-term approach in order to
create additional value.”
develop our business to meet market demands.
All investments are important and strategic.”
During the past year you also formulated a
sustainability policy. What do you have to
say about that?
“I am pleased and proud that we have a sustainability policy for Setra. The policy builds on the
sustainability issues that are most significant for
our operations. These are maintaining high ethical
standards in all our business relationships as well
as ensuring that our employees have the right
skills and are given opportunities to develop. It is
also important to work systematically to prevent ill
health and accidents and to offer our customers
climate-smart products that are produced taking
the environment and people into account. How
we conduct our sustainability work is important for
employees, owners, customers and suppliers. We
are all links in the same value chain.”
“Building a corporate culture is a long-term activity.
But it is clear that we make better decisions in a
value-driven organisation. And with more efficient
decision making, where decisions are made at
the right levels, conditions are created for further
development of operations and securing profitability. If we are allowed to accept responsibility and
influence things, we feel even better. Without our
responsible, committed and innovative employees
we cannot develop. For me values and the brand
belong together. If we have a strong culture, this
builds the brand outwards to our customers and
when we want to attract our future employees.
I also believe that the values at a workplace are an
increasingly important factor when choosing an
employer. If we want to develop our operations, we
must have the right skills in the right place.”
What can you tell us about other climate
initiatives?
Is the ‘One Setra’ process also
relevant here?
“The climate issue is high on our agenda. Our
most important contribution to sustainable development is to increase the use of wood. Wood is
renewable, unlike many other construction materials that are based on finite resources. One cubic
metre of wood binds the equivalent of 900 kilos
of carbon dioxide. Marketing and contributing to
increased use of wood is perhaps our key task for
the reduction of greenhouse gas emissions. This is
why our sales targets are also our climate targets.
How many businesses can say that?”
“‘One Setra’ is about how to act as one company
with common objectives that we all work towards.
It is also about making the most of skills and
sharing the experience that is all around us. About
working with a common approach. And on the
basis of our shared values. Willingness to work at
‘One Setra’ can be found throughout the organisation, which is fantastic. One example of this is that
our sales of wood products were placed in a single
market organisation during the year.”
A number of investments were decided in
2015. Can you comment on these?
In last year’s sustainability report you mentioned transports as a major challenge.
“During the year we carried out technology investments at our sawmills Färila, Malå and Rolfs.
A decision has also been made to invest in a new
log feeder and drying capacity at Kastet sawmill.
At the processing unit in Skutskär we are investing
in strength grading and cutting to exact lengths.
These investments show that our owners have confidence in us and that we have an organisation in
place that has both skills and determination. These
investments provide us with new opportunities that
strengthen our competitiveness. Through them
we will improve efficiency and be able to further
“Yes, and it still is a major challenge. Our transports to customers around the world account for
about half of our greenhouse gas emissions. In the
stakeholder dialogue we carried out in 2015 we
discussed with our transport providers how we can
develop sustainability work together. Optimising
the small things throughout the value chain is
extremely important. One excellent example of this
is our 4-metre project for China where lengths are
optimised back in the forest in dialogue with customers which provides more efficient transports
while reducing waste throughout the value chain.”
4
Setra has already identified a corporate
culture based on shared values as a
success factor. How are things there?
What challenges and opportunities do you
see in the future?
”The market is a major challenge but I want to
see the opportunities. Our products are renewable
and have the future on their side. Using products,
interiors and structures made of wood safeguards
tomorrow and promotes sustainable development. Setra has enormous potential. We have
a value-based culture as a starting point. We
will continue to focus on what we ourselves can
influence and do what we did today even better
tomorrow. There is an extremely powerful force in
this that carries us forward.”
CEO’S COMMENTS
Wood for Life
is the core of the Setra brand
and summarises our vision,
our values and our brand
promise.
Our vision – a sustainable world
We want to contribute to sustainable development. With our renewable
wood products we want to help build a sustainable world – for future
generations as well.
Our values – commitment, innovation and responsibility
Our shared values guide our decisions and behaviour in day-to-day work
so that we achieve our vision. With commitment, innovation and responsibility we will create a high-performing corporate culture and ensure
sustainable, profitable operations over time.
Our brand promise – natural simplicity
It must be simple to do business with Setra. We know about wood and
understand the needs of our customers and our customers’ customers.
We simply give our customers more natural comfort every day. Natural
simplicity is also about our product offering. Wood is an attractive,
warm and living material. It is functional, simple to use and comfortable
to live with.
Financial targets for the
Group adopted by the
Board
• Operating margin over
time to average
approximately 5%.
• Return on operating
capital over time to
average approximately
15%.
• Net debt/equity ratio to
normally amount to
30–60%.
SETRA
SETRA GR
GRO
OUP
UP 20
2 01155
5
OUR BUSINESS
Swedish wood for an international market
Setra’s mission is to process raw material from responsibly managed forests and to offer
climate-friendly products and solutions for building and living in a global market. Our vision is a
sustainable world – where increased use of renewable wood products contributes to sustainable
development from economic, environmental and social perspectives.
Setra is a Swedish wood products company that
operates in an international market. Our products are mainly used for building and living.
The Group has annual sales of SEK 4.2 billion
of which 60% comprise exports to Europe,
North Africa, the Middle East and Asia. Key
customer segments are the wood processing
industry, the building materials trade, modular
building companies, furniture manufacturers
and importers.
Sawn and processed redwood and whitewood products are Setra’s core business and
account for over 80% of total sales. The processed range includes building products such as
glulam, exterior claddings, interior claddings,
decking and outdoor flooring. Bioproducts such
as chips, wood shavings and bark are produced
in the sawing and planing processes and are
in demand from the pulp and paper industry
Setra’s Swedish*
production
units 2015
Rolfs
Malå
as well as from customers in the energy sector.
Bioproducts are an important business and
account for about 15% of Setra’s total sales.
With prefabricated wooden building systems
from Plusshus we offer solutions for living in the
future, from single-family homes to apartment
buildings.
Setra has approximately 900 employees most
of whom work at production units throughout
Sweden. Most of the production units are located in small communities which makes Setra a
significant local employer. The Group has some
50 employees outside Sweden. Setra has sales
offices in the UK, Germany, Poland, France,
Spain, Japan and China.
Setra also has a subsidiary in the UK, M&S
Softwood, with processing and distribution
operations. In 2015, Setra opened three new
distribution warehouses in King’s Lynn, Hull
and Rochester.
The raw material in Setra’s production
consists of pine and spruce. All sawlogs come
from responsibly managed forests and meet
controlled raw material requirements. This
means that origin is known and the material
meets basic requirements according to the
forest management certification systems FSC®
and PEFC. In Sweden, Setra has a total of nine
sawmills, three processing units and two modular building factories. Two of the sawmills, Malå
and Rolfs, have integrated sawing and planing.
Setra is a Swedish limited company and is
owned to 50% by Sveaskog, Sweden’s largest
forest owner, and 49.5% by the forest owners’
association Mellanskog. The remaining
approximately 1,500 small shareholders have
a combined holding of 0.5% of the shares in
the company.
! Redwood mills
Production, Number of
m3
employees
Kastet
Skinnskatteberg
228,000
214,000
70
75
Nyby
Malå*
195,000
162,000
65
80
Vimmerby
Rolfs*
125,000
91,000
50
60
Hasselfors
Heby
272,000
221,000
90
65
Färila
138,000
50
Net sales by market 2015
Sweden 39%
Europe 28%
North Africa
Middle East 22%
Asia 11%
Integrated sawing and processing.
Renholmen
! Whitewood mills
Net sales by business 2015
Sawn wood products 63%
Processed wood products 19%
Bioproducts 14%
Kastet
Långshyttan
Skutskär
Valbo
Nyby
Heby
Skinnskatteberg
Kristinehamn
Hasselfors
Vimmerby
96,000
35
Valbo*
35,000
20
Långshyttan
43,000
50
*Decision on closure mid-2016
! Modular building
factories
Number of
Delivered
living space, employees
2
m*
Kristinehamn
Renholmen
*Setra also has a production unit
in the UK (M&S Softwood).
6
Plusshus 4%
{
Färila
! Processing units
Skutskär
15,138
{
45**
35**
*Living space is the area in a building that is usable for living. Living space combined with ancillary space comprises the building’s total space. Plusshus homes
have an average living space of 120-140 m2, which means that delivered living
space in 2015 corresponds to approximately 120 homes.
**Including contracted staff.
OUR BUSINESS
Setra’s value chain
Sawmills
Sawn wood products
Processed wood products
Raw material
Plusshus
Bioproducts
Bark
Chips Shavings
RAW MATERIAL
PROCESSING
TRANSPORTS
CUSTOMER BENEFITS
Economic values Setra has generated for different stakeholders 2015, SEKm
Setra’s 10 largest markets
outside Sweden
– share of net sales 2015
Revenues from sale of wood products, bioproducts and building systems 4,224
Suppliers, raw material
Costs for purchases of timber raw material
-2,159
Suppliers, transport services Transport costs
-480
Suppliers, other
Costs for purchases of other goods and services as well as depreciation -988
Employees
Salaries and social security costs
7
-550
Lenders
Interest expenses
5
-21
State
Taxes
3
-6
Owners
Net profit
- of which Board’s proposed dividend
- of which value retained in operations
1
20
10
10
%
10
8
6
4
2
0
UK
Germ
any
Japa
n
Alge
ria
Egy
pt
Chin
Mor a
occo
Norw
a
Den y
mar
Sau
di A k
rabi
a
Customers
7
OUR SUSTAINABILITY WORK
8
OUR SUSTAINABILITY WORK
Towards a sustainable world
The sustainability policy builds on the sustainability issues that are most significant for
our operations. It is our guiding principle in the work for a sustainable Setra.
The Board decided on a sustainability policy
for Setra in autumn 2015. The introduction to
the policy describes Setra’s mission and vision.
Both the mission and the vision are strongly
linked to sustainable development.
Our aim is that sustainability will permeate
our entire value chain. And our values – commitment, innovation and responsibility – will
govern how we behave in a sustainable and
ethical manner in our day-to-day work. Our aim
is that all our stakeholders – employees, customers, suppliers, owners and the communities
in which we operate, will have confidence in us
and our activities.
The sustainability policy focuses on the issues
and areas where we have a significant influence,
clear responsibility and the ability to contribute,
as well as the issues that are high on our stakeholders’ agenda. The four areas that we have
identified as most important are business ethics,
employees, working environment, and environment and climate.
The new sustainability policy summarises the
essence of Setra’s key governing documents and
replaces the former ethical guidelines, environmental policy and working environment policy.
In order to ensure that Setra works towards
making this policy a reality, more objectives,
guidelines and activities will be identified.
Organisation
Setra’s CEO has ultimate responsibility for
sustainability issues but a lot of the operational
work is delegated. It is out in the production
units that the actual environmental and working
environment initiatives take place. Issues
related to business ethics are central to the
marketing, purchasing and logistics functions.
The responsibility of the HR function is to support managers in their efforts to develop Setra’s
most important assets, our employees.
Centrally within Setra there is an environmental manager as well as one employee who
works full time with sustainability issues and
is responsible for the company’s management
system. Their role, together with Group Management, is to develop sustainability initiatives,
support the organisation and act as experts.
Systematic work
Setra’s management system is used as a tool
to lead, plan, control, monitor and evaluate
operations. Setra is certified according to ISO
14001, which provides a good framework for
systematic improvements within the area of the
environment. The management system also
includes control of working environment and
fire safety work, but these systems are reviewed
externally.
Setra’s sawmills and processing units are
certified according to the Chain of Custody
standards of FSC and PEFC as well as FSC’s
standard for Controlled Wood. Chain of custody
certification shows that the company has a
system for tracing that the wood raw material
comes from responsibly managed forest and
has a controlled origin. Documentation for
this is also linked to the central management
system. A simplified management system for
energy will be introduced in 2016-2017 to meet
the requirements according to the new law on
energy audits of large companies.
Group-wide sustainability targets for all
of Setra have been adopted by Group Management. In 2015 a decision was reached on
common targets for energy efficiency, climate
performance and occupational safety. Local
sustainability targets are decided at unit level.
Setra’s sustainability policy
Setra processes raw material from responsibly
managed forests and offers climate-friendly products and solutions for building and living in a
global market. Our vision is a sustainable world.
Sustainability means that throughout our
entire value chain we encourage responsible
business that promotes human rights, good
working conditions, the environment and
anti-corruption
Our values – commitment, innovation and
responsibility – guide how we behave in a sustainable and ethical manner in our day-to-day
work. We comply with laws and regulations that
apply to our operations. We work with continual
improvements and with clear targets that are
followed up and reported.
Our stakeholders – employees, customers,
suppliers, owners and the communities in
which we operate – must have confidence in
Setra and our operations. Setra is transparent
about decisions and activities that have an
economic, environmental or social impact. Our
communication is open, clear and accurate.
Our four key sustainability areas:
Business ethics
We maintain high ethical standards in all our
business relationships. We treat our customers,
suppliers and partners with responsibility and
integrity. We compete on a fair basis and we
have zero tolerance for money laundering, bribery and other forms of anti-competitive practices. All financial information and sustainability
performance are reported correctly.
Working environment
Our working environment is safe, stimulating
and enjoyable. For us the working environment
includes both the physical and psychosocial
conditions at the workplace. We make systematic efforts to prevent ill health and accidents
and to increase wellness presence. Employees,
safety representatives and employers work
together to promote health and safety. Setra has
zero tolerance for industrial accidents.
Environment and climate
Employees
Employees are the company’s most important
resource. We make sure that we have the right
skills and provide everyone with opportunities to
develop. All employees are responsible for ensuring that their everyday behaviour and actions
comply with Setra’s values. Our managers and
leaders are key role models in this work. Setra
encourages increased equal opportunity and diversity. We recruit and engage with all employees
without discrimination or special treatment.
We take our impact on people and the environment into account throughout the value
chain. We apply the precautionary principle
when changing operations and work to prevent
pollution. Our sawlogs come from responsibly
managed forests and our processing is carried
out in a resource-efficient manner. Other key
environmental aspects in our operations include
energy consumption and climate impact.
9
STAKEHOLDER DIALOGUE
Focus on essentials
We need to cooperate throughout the value chain to develop a sustainable business.
Through good relationships and dialogue with our stakeholders we want to build a consensus
about what issues should have highest priority.
Responsible forest management, economic
performance and the working environment are
some issues that are given top priority by both
Setra and the company’s stakeholders. Other
significant aspects for Setra’s employees are
our values and corporate culture. It is on the
basis of our shared values, skills and experience
that we can accept responsibility, influence and
make a difference. Another significant aspect is
that Setra is a key employer in small communities. Setra is involved in various issues at a
local level and the ongoing dialogue with local
residents and the community is important.
Relevant and transparent reporting
Setra reported its sustainability work according
to the Global Reporting Initiative (GRI) for the
first time in 2014. By applying GRI’s guidelines
we want to ensure a relevant and transparent
reporting of the performance of our operations.
Ahead of the report Setra performed its first
targeted stakeholder dialogues on sustainability.
Ten representatives for customers and owners
were asked to choose the issues they considered most important for Setra to work on.
Renewed dialogue
A renewed dialogue with some of the customers and owners who took part in the 2014
survey was carried out in autumn 2015. The
dialogue was based on Setra’s sustainability
reporting and the result strengthened the
picture of the company’s most important
sustainability aspects.
Stakeholders also saw opportunities for
improvement within a number of areas:
• to further clarify and report measurable
sustainability targets
• to work for an increased proportion of
certified raw material and
• to provide more details about how the
company works with issues such as diversity,
supply chain and biodiversity.
In addition a targeted stakeholder dialogue
was held with our transport providers. Setra
Materiality assessment
– the most significant issues for a sustainable Setra
• Economic performance
Significance for stakeholders
Very
high
• Indirect economic
impact on
local community
• Noise, local
environmental
impact
• Responsible forest
management
• Resource efficiency
• Climate impact,
including transports
• Setra’s customer offering
• Working environment,
health and safety
• Diversity and equal
opportunity
• Values and culture
including business ethics
• Local community
engagement
• Skills development
and Skills supply
High
High
10
Significance for Setra
Very high
purchases a very large number of road and sea
transport services in order to be able to deliver
sawn and processed products to customers
in Swedish and international markets. These
transports account for more than 10% of
Setra’s total costs. Most of the sawlogs delivered
to our sawmills are transported by road with a
small proportion going by rail.
For transport providers issues relating to
working environment and safety, greenhouse
gas emissions and logistics planning are
particularly important and we need to cooperate
over these issues.
Significant sustainability issues
Setra’s most significant sustainability issues
have been chosen from several perspectives,
with the major focus on issues where the company has a significant impact, a clear responsibility and an opportunity to contribute, as well
as issues high on our stakeholders’ agenda.
STAKEHOLDER
I N T R E S S E DDIALOGUE
IALOG
Setra’s stakeholders
and examples of
their key issues
PRODUCT QUALITY
CUSTOMER SERVICE
PRODUCT DEVELOPMENT
FOREST MANAGEMENT
BUSINESS ETHICS
ECONOMIC PERFORMANCE
CLIMATE IMPACT
JOB OPPORTUNITIES
LOCAL ENVIRONMENTAL
IMPACT
LOCAL COMMUNITY
ENGAGEMENT
Customers
Local
residents/
community
Employees
LAWS AND
Authorities
PERMITS
Industry
INDUSTRY
DEVELOPMENT
PRODUCT INFORMATION
HEALTH AND SAFETY
SKILLS DEVELOPMENT
LEADERSHIP
CORPORATE
CULTURE
Owners
Logistics
providers
Timber
suppliers
ECONOMIC
PERFORMANCE
FOREST
MANAGEMENT
CLIMATE IMPACT
ETHICS
FAIR COMPETITION
FOREST
WORKING ENVIRONMENT MANAGEMENT
SAFETY
DIALOGUE
DIALOGUE
ECONOMIC
ECONOMIC PERFORMANCE PERFORMANCE
Tomorrow’s diesel in Hasselfors
Bio HVO is a totally renewable biofuel that is
produced from food residues and slaughterhouse waste. Setra Hasselfors is first in the
Setra Group to use one hundred per cent
HVO in trucks and timber machines. This
is a result of Setra’s agreement with Såifa
Värmland which owns the filling station in
Hasselfors.
All diesel vehicles can use HVO diesel.
Carbon dioxide emissions are expected to
decreased by as much as 50-90%, depend-
ing on the raw material used, compared with
traditional fossil diesel. It was in the stakeholder dialogue with our transport providers that
it became clear that we all had something to
gain by testing HVO in Hasselfors specifically.
Both Sveaskog’s timber lorries and Unite’s
lorries, which transport finished goods
and bioproducts for Setra, can fill up from
the Såifa station. This provides us all with
a climate benefit. HVO, which stands for
Hydrogenerated Vegetable Oil, is a type of
biodiesel which is chemically identical or
very similar to fossil diesel. Using hydrogen,
hydrocarbon chains are created which are
identical to diesel.
In addition to HVO diesel, Setra Group
currently also uses BioZ (80% fossil fuel
and 20% HVO) as well as purely fossil fuel
depending on location. 100% HVO diesel is
not yet available throughout Sweden.
11
MARKET OUTLOOK
Good development despite
uncertain market
“Consumption of wood products increased in most markets during the past year. But there is a large
supply, prices are falling and in general stock levels in Sweden increased. Setra has handled the
situation well under the circumstances,” says Olle Berg in a market commentary.
Much of 2015 was characterised by uncertainty
and turbulence. Currency problems and the general unrest in North Africa and the Middle East
contributed, as did slower growth in China. At
the same time, the global flows of wood products are changing. Increased building starts
in the US have meant that Canada has turned
its attention there while reducing some of its
exports to China. This in turn has led to Europe
and Russia exporting more to China. Russia
has also increased its sales to North Africa and
the Middle East which hardens competition and
puts pressure on prices.
Despite the uncertain situation, consumption of wood increased in most countries during
the past year. Therefore there is a demand.
But production has been extremely high which
means that stocks have been built up at the
same time as prices are falling at a rate that is
not really tracking raw material prices. Setra
has handled the year extremely well. Stock
levels in Sweden increased on average by 12%
in 2015. On the other hand we have reduced
our stocks by about 10% which
shows that we are responsive,
adaptable and proactive.
We have tried at all times to
maintain a good cash flow
by keeping stock levels
Olle Berg,
Market Director
12
under control, which means a more difficult
balancing act between production and deliveries. But we have met this challenge well. Our
volumes to China increased by 60% compared
with the previous year at the same time as we
also delivered more to North Africa and the
Middle East despite the turbulent situation.
The outlook for the global consumption
of wood products in 2016 is weakly positive.
We see an increase in construction starts in
most of our main markets even if much of the
uncertainty remains, above all in the Middle
East. Construction in the US is expected to
continue to rise in 2016. There is reason to
believe that European exports to the American
market will continue their positive development.
Asian markets, too, show good consumption
development. In Japan we will see consumption being brought forward ahead of tax rises
that take effect in 2017. In China we note that
house prices have swung from falling to rising
and even with a somewhat lower rate of growth,
there are good possibilities for wood product
exports from Europe not least thanks to an anticipated reduced flow from Canadian suppliers.
Forecasts for construction in Europe show good
growth figures compared with 2015 even if the
renovation and extension sector, which is so
critical for wood, is expected to shrink.
MARKET OUTLOOK
Shipping marks
Grades*
U/S
Sales volume by market, 2015
– sawn wood products
! > 100,000 m3
! 25,000 - 100,000 m3
! < 25,000 m3
V
VI
U/S+V
U/S+V+VI
Setra’s Royal shipping mark is a well-accepted trademark
for sawn wood products. It has been used since 1943
and functions today as a guarantee for timber quality and
customer service
*Planks and boards are sorted in different grades where
U/S (unsorted I-IV) is the highest grade, V (fifths) is the
second highest and VI (sixths) is the lowest grade.
Customers perceive
Setra as secure and
reliable
Setra conducted a customer survey during
the summer of 2015 addressed to customers
in the sawn wood products, processed wood
products and Plusshus segments. The aim
of the survey was to find out how customers
perceive Setra, why they choose Setra and
how they regard Setra’s brand and communication. The results will be used in Setra’s
ongoing improvement work. A total of 90
customers took part in the anonymous survey
which took the form of telephone interviews
by the market research company MarknadsKraft.
The results of the survey show that 78%
of participants have a positive or very positive
overall impression of Setra. A spontaneous
choice of words that characterise Setra includes “quality”, “pleasant” and “service”. Setra
is described as a major, secure and good
supplier and most customers name quality,
reliable deliveries and product range as reasons for choosing Setra. Customers are also
satisfied with their interaction with Setra – a
full 92% give the highest or second highest
rating to their Setra contacts. Compared with
other suppliers, Setra is perceived as more
responsible, but when it comes to innovation
and commitment Setra is much the same as
other suppliers. Nor does marketing come
out ahead compared with others. The survey
shows that Setra has several areas it can
improve. Among other things a view was
expressed that Setra needs to be more proactive in its contacts with customers.
13
OUR OFFERING
Sawn wood
products
Sawn redwood and whitewood products are important
exports. Redwood is used above all for the production
of visible wood products such as flooring, furniture,
windows and doors. Other applications for redwood
are outdoors in various pressure-treated products.
Whitewood satisfies high demands for strength and is
often used as construction timber but also for visible
products such as cladding and glulam.
Planks or boards?
Planks are sawn
from the central part
of the log and have
a thickness of at
least 32 mm.
Boards are sawn
from the outer part
of the log and have
a thickness of less
than 32 mm.
Customers: Customers are found mainly in the wood
processing industry. Planing mills, glulam factories,
house factories and packaging manufacturers are
examples of important customer categories.
Markets: Europe, North Africa, the Middle East and
Asia. About 85% of volumes produced are sold for
export.
Production: Setra has a total of nine sawmills. Six
specialised redwood sawmills: Skinnskatteberg,
Kastet, Nyby, Malå, Vimmerby and Rolfs. Three
specialised whitewood sawmills: Hasselfors, Heby
and Färila.
Share of net sales 2015
Sawn wood products 63%
Mattias Forslund,
Manager
Setra Färila.
Customisation led to efficiency
improvements throughout the chain
In the successful “4m China” project Setra has optimised timber lengths to get the
best possible load factor. As well as satisfying customer requirements, the project
has resulted in efficiency improvements in raw material, handling and transport.
Without investments or costs.
The “4m China” project is a good example of
how Setra works to satisfy customer requirements while increasing efficiency, improving
logistics and optimising raw material utilisation.
The project began in summer 2014 and six
months later, in January 2015, production of
the new timber length started at Setra Färila.
The project team represented all steps on the
production chain from raw material to market.
“It was our customers in China who make
cladding that required 4-metre lengths since
this would give a better load factor in the containers. We have therefore chosen to niche our
production based on their requirements,” says
Henrik Bertilsson, Sales Manager Asia and
New Markets, who ran the project.
Work to produce the new length starts out
in the forest where half the timber for Setra
Färila is crosscut to a length of 4.05 metres.
The length of the finished product is set to
3.985 metres which gives a few centimetres to
play with when the 12-metre long container is
loaded.
14
“It’s only one and a half centimetres off a
4-metre length which the customers don’t have
a problem with. This is normal practice in the
industry. As a result of our project customers
only have to handle one length and there are
fewer containers,” says Henrik.
Mattias Forslund is the Manager at Färila
and has only good words for the project. He
gladly names the working methodology as a
contributory factor to the highly successful
implementation.
“Since everybody was involved in the process we avoided unpleasant surprises later in
the project. We also carried out test runs and
test sorts with smaller quantities which gave us
security prior to the major changes and showed
what needed to be adjusted before going live.
We haven’t rushed but analysed the effects
already at an early stage. Everyone involved
has known what was to be done and why. The
bottom line is that a good basis leads to good
decisions,” concludes Mattias Forslund.
V Å ROAU R
E ROBFJFUEDRAI N G
DEN
Processed
wood products
A large part of Setra’s processed wood products
is sold to the Swedish building materials trade.
The range includes such things as glulam, interior
and exterior claddings, solid wood floors, decking,
battens and construction timber. Factory painted
facade cladding, finger-jointed products and a
large quantity of pressure-treated products are
also part of the range/offering.
Customers: The building materials trade is
the most important customer group, but many
products are supplied to different industrial
customers. Glulam is also sold as customised
solutions.
Market: Sweden is the largest market. About
35% of the volume produced is sold for export.
Production: Glulam is made in Långshyttan.
There is a planing mill in Skutskär. Further processing is also carried out at the sawmills Malå
and Rolfs. In the UK, M&S Softwood is a small
planing mill.
Processed wood products 19%
Grooved decking
Heartpine
It’s in to be out
Setra’s processed products include
several alternative offerings for decking
and outdoor flooring for patios, jetties or
terraces. Flat, grooved or textured boards
in various colours. Traditional green or
warm brown. Setra Decking, Heartpine
and Outdoor Flooring are made from
high-quality Swedish redwood. There
was considerable market demand for
Setra Glulam Decking in 2015. This is
a shape-stable, wide decking that gives
character and makes an impression on
patios and terraces.
Pressure-treated green decking
Brown decking
Glulam decking
15
OUR OFFERING
50%
C.
Planks and boards
Roughly half the volume of the log becomes
boards and planks. The other half becomes
various bioproducts.
50%
C.
Bioproducts
Raw chips
Pulp and paper
industry
Bark, sawdust
and dry chips
Energy sector
Bioproducts
Sales of bioproducts such as chips, sawdust
and bark account for about 15% of Setra’s total
sales. Raw chips, which are the most significant
bioproduct by value, come from the outer parts
of the fresh log and are a critical raw material for
the pulp and paper industry. Dry chips, bark and
sawdust are sold mainly as fuel to CHP plants.
Sawdust and shavings are also supplied to the
pellets industry.
Customers: Pulp and paper industry, CHP plants,
pellets factories, manufacturers of soil improvement products and animal litter.
Market Sweden.
Production: Everything in a log is used. Bioproducts such as chips, sawdust and bark result from
sawing and planing at all production units.
Sales of bioproducts
– share by customer segment 2015
Pulp and paper
mills 56%
Power and heating
plants 34%
Pellets 6%
Bioproducts 14%
Other* 4%
*Manufacturers of soil improvement products,
chipboard, etc.
Green special mixture from Setra
In April 2015 energy company E.ON inaugurated its new, modern district heating
plant, Sandkilsverket, in Åkersberga north of Stockholm. The plant is fired with 100%
renewable fuel most of which is a special mixture of bark and dry chips from Setra.
E.ON Värme is one of the largest players
in the Swedish district heating market
and produces and delivers heating to
approximately 21,700 customers. The
company is running several projects in
different municipalities in the Stockholm
region designed to create cooperation for
use of residual heat or renewable fuels to
provide solutions that are sustainable over
time. Setra has a long cooperation with
E.ON. Prior to starting up Sandkilsverket
discussions were held on the possibility
of providing a special mixture of bark and
dry chips for the biofuelled boiler in the
new plant.
“The advantage is that by mixing bark
and dry chips we can adjust the moisture
content to E.ON’s needs and get a mixture
that works all the year round,” explain
Johan Svensson, Raw Material coordinator, and Hanna Lindberg, Bioproducts
Coordinator at Setra.
16
Currently Setra delivers some 10,000
tonnes of biofuel annually to the boiler at
Sandkilsverket, corresponding to about
20 loads per week. Each load generates
about 100 MWh which keeps the 13 MW
boiler going on full power for just over
seven hours. Ulf Jonsson, fuel buyer at
E.ON Värme Sverige AB, is pleased with
the cooperation and appreciates Setra’s
new thinking about its biofuels.
“In this case Setra have not simply
delivered a bioproduct. They have taken
an extra step and processed the bioproduct so that it is a good fuel customised for
our plant in Åkersberga.”
V Å ROAU R
E ROBFJFUEDRAI N G
DEN
Plusshus
Setra Plusshus supplies customised
homes in wood with a high level of prefabrication. The offering includes singlefamily dwellings in the form of terraced,
link-detached or detached houses and
also apartment blocks, hotels and densification projects. Plusshus’ industrial-scale
building system is based on modules and
box units. Trälyftet is a building system
for multi-storey buildings with modules in
semi-solid wood. Manufacturing is on an
industrial scale and offers a cost-effective and innovative alternative to on-site
construction.
Customers: Commercial builders and
developers.
Markets: Sweden and Norway.
Production: Plusshus has two facilities, one in Kristinehamn and one in
Renholmen. Both units are flexible and
can produce box units and modules in
parallel.
Standard houses
During 2015 Plusshus launched a new
standard house concept for single-family
dwellings. Industrial-scale and standardised
solutions make for efficiency and the lead
time from order to occupation is shortened.
The concept is based on three choices: size,
model and style.
Plusshus 4%
1. Size
2. Model
3. Style and options
•
•
•
•
•
•
•
•
• Modern
• Classic
• Functional
115
129
137
154
m2
m2
m2
m2
Terraced
Link-detached
Semi-detached
Detached
Flexibility in a hot housing market
Setra Plusshus can look back on an exciting 2015 with many different projects. Industrial-scale building is
flexible and efficient in a hot housing market. Here are some current projects in the Stockholm area.
"
Developer:
Byggnadsfirma
Erik Wallin AB
"
"
Furuhusen,
Stockholm
Vällingby
Parkstad
Developer:
Alm Equity
Gudö Park,
Stockholm
Developer:
Järntorget AB
Delivery:
45 terraced town
houses, turnkey on
prepared foundations
Delivery:
21 link-detached
houses, turnkey on
Year of construction:
2015-2016
2015-2016
Vårvetet,
Stuvsta
Developer:
Byggnadsfirma
Erik Wallin AB
Delivery: 12 terraced
houses, frame
assembly and exterior
completion
Delivery:
17 link-detached
houses, turnkey on
2015-2016
2016
"
17
OUR EMPLOYEES
Values drive forward
Strengthening employeeship and a corporate culture based on shared values
are success factors for increased competitiveness. Long-term work continues on developing
a high-performing value-driven organisation.
Employeeship is about how we relate to each
other, our work and our surroundings. It is
about how we work together to achieve our
business goals and vision. At Setra our values
– commitment, innovation and responsibility – guide employeeship. The values must
be with us at work, in daily life. They must
help us to think and do the right things, both
together and as individuals. Our behaviour
has a decisive role both for business success
and for creating a sustainable and attractive
workplace.
Developing a corporate culture based on
shared values is a long-term undertaking.
The process which started in 2013 under the
working title “One Setra” has continued. The
most important tool in the work of developing a
value-driven organisation is the daily dialogue
and feedback about our behaviour and what
our values mean in practice.
Leadership
As role models, Setra’s leaders have an especially important position in the development of
a value-driven organisation. The content of
Setra’s internal leadership development programme was revised during the year to make
more space for issues related to value-driven
leadership. Since 2012 when Setra’s strategic
18
initiative for leadership development started,
some 120 leaders have attended the internal
leadership programme and been given tools
with which to develop in their leader role and
also the possibility to build internal networks.
The programme for leadership development
and value-driven leadership continues. The
emphasis is to provide additional training to
those who have already attended a programme
and to offer the internal programme to managers and leaders who are new in their roles.
Skills supply
Technical development, market demands
and new working methods mean higher skills
requirements which need to be particularly
addressed when recruiting new staff. Setra
wants to be an attractive employer for both
existing and future employees. The company
cooperates with various seats of learning,
regularly takes part in university career days
and offers internships and thesis work with
the company. Setra is making long-term
efforts to increase the proportion of female
employees. The company sees each recruitment as an opportunity to bring more women
into the organisation. Three managers were
recruited externally in 2015, one of whom is
a woman.
At Setra the annual performance review
provides an important basis for individual
skills development and further development
within the company. The aim is to offer all
employees at least one performance review
per year. In 2015 a new digital tool was
launched which will ensure a uniform process
and enable systematic work with skills development. To meet future demands the skills
level in the company needs to be raised. In
2015 the proportion of employees with higher
education was 14%.
The SetraRingen employee survey which
was carried out in 2013 showed, among
other things, that pride in working at Setra
as well as the MEI, motivated employee
index, had increased since the previous
survey. Leadership within the organisation
is also seen as more positive. A new, simplified model for employee surveys has now
been developed and will be introduced during
2016. The survey is planned to be carried
out twice a year to follow ongoing development work in key areas such as leadership,
value-driving and working environment.
OUR EMPLOYEES
Behaviour and feedback
discussed in a board game
During 2015 Setra developed a board game around the company’s values as a concrete way to talk about behaviour and how we give positive feedback to each other.
In the board game about Setra’s values, employees can train in living the
company’s values and finding successful behaviours to help them in their work.
This is done with dilemma questions and feedback cards. Factual questions are
also included for learning more about the wood products industry in general –
and Setra in particular.
The game has already had tangible effects, for example at Setra Nyby.
“The day after we played the game the values helped us when a problem
came up which we solved in a super way by asking ourselves the question
‘How are we going to solve this with our values?’. And at our meetings we have
spontaneously started to give each other positive feedback. It is a valuable
effect, it is more fun to work like that,” says Jonas Lantz, acting Mill Manager.
All employees at Setra have played, or will be playing, the game which is
based on Setra’s values commitment, innovation and responsibility. Studies
show that value-driven companies are more profitable, have higher growth and
experience greater customer satisfaction. They also see better cooperation
and increased job satisfaction.
Commitment
Innovation
Responsibility
Key figures employees
Average number
of employees
Proportion of
women, %
Average
age
2015
938
14
48
2014
931
13
48
2013
909
13
48
2012
966
14
48
2011
1,044
14
47
Proportion of salaried employees
and wage earners 2015
Wage earners
77%
Salaried
employees 23%
Proportion of employees within Sweden
and outside Sweden 2015
Within Sweden 94%
Within Sweden 95%
Outside
Outside
6%
Sweden Sweden
5%
19
OUR RAW MATERIAL
Timber from responsibly managed forests
The raw material used in Setra’s production is spruce and pine which is further processed
into various wood products at our sawmills and processing units. All sawlogs come from
responsibly managed forests and meet requirements for controlled raw material.
Setra does not own any forests. All the company’s sawlogs are purchased. The total volume
of purchases in 2015 was 3.3 million cubic metres, of which 60% was pine and 40% spruce.
Setra has some 15 raw material suppliers the largest of which are Setra’s owners
Sveaskog and Mellanskog. Purchases are made
almost exclusively from Swedish suppliers, but
small volumes come from Finland and Norway.
In 2015, imports accounted for approximately
3% of the total purchased volume.
The timber is often local or regional in
origin. The catchment area is normally within
a radius of about 100 kilometres from the
sawmill. Most of the purchased timber is delivered to the sawmills by road. Facilities with their
own railway tracks – Hasselfors, Kastet and
Skinnskatteberg – can also receive deliveries
by train which allows longer and more efficient
transports. During 2015 about 110,000 cubic
metres were delivered by train.
The forest is significant
One of Setra’s most important sustainability
aspects is that raw material comes from responsibly managed forests. The world’s forests
have considerable significance for the climate,
water supply and access to fresh air. The forest
is also a source of experiences and provides many benefits: food, medicines,
paper fibres and sawlogs. At felling,
responsible forest management
means consideration for nature
and setting aside forests
and natural areas with high
conservation values. It is
important that what is
worth protecting
is preserved
in the forest
and not
delivered
20
as timber to Setra’s sawmills. The timber that
Setra purchases is either certified or controlled
according to FSC® and PEFC, the world’s largest forest certification systems with standards
for forest management and traceability (Chain
of Custody).
Chain of Custody certification
Setra’s sawmills and processing units are
certified according to PEFC and FSC Chain
of Custody standards and FSC’s standard for
Controlled Wood. Chain of Custody certification
means that the company is able to show that
the wood raw material comes from responsibly
managed forests and has a controlled origin,
the link between certified forest management
and the certified end product.
Timber that is not certified is controlled
and meets the requirements of FSC Controlled
Wood and PEFC Controlled Sources. It also satisfies the requirements of the European Timber
Regulation. The minimum requirement for all
sawlogs is that the origin can be traced and it
meets five basic criteria. These are stated in
Setra’s raw material policy and mean that Setra
does not accept:
• Illegally felled timber
• Timber felled in contravention of traditional
and human rights
• Timber from felling that threatens high natural values
• Timber from
deforested areas or
areas converted into
plantations
• Timber from areas
with genetically modified trees
Control that the timber meets the criteria in
the raw material policy can be done in two
ways. Either the timber comes from a certified supplier where the supplier has carried
out the checks, or the checks are made by
Setra’s raw material coordinator. The checks
are usually made by supplier visits, follow up
of felling and other documentation reviews.
To achieve Chain of Custody certification
and certification according to FSC Controlled Wood a company must have a quality
management system for internal routines,
check the wood material’s origin, follow up
purchasing and sale of certified products,
and conduct internal audits. A company with
Chain of Custody certification has the right to
sell its products as certified. Either they carry
the FSC or PEFC logo or this is shown on the
invoice.
Customer-driven
In 2015, 38% of Setra’s sold wood products
were certified according to FSC or PEFC.
How much timber is bought in as certified
according to FSC or PEFC is determined above
all by customer demand. Setra has to pay a
premium to obtain certified raw material. Many
export markets require certified products
and the UK is one market where interest is
considerable.
There is also demand from the pulp and
paper industry for certified cellulose chips.
In 2015, 22% of cellulose chips were sold as
FSC certified. Setra has also noticed increased
interest from the energy sector for certified
biofuel products, although currently on a small
scale.
OUR RAW MATERIAL
FSC®
Forest Stewardship Council® is
an international, non-profit, multistakeholder organisation to promote
environmentally appropriate, socially
beneficial and economically viable
management of the world’s forests.
PEFC
Programme for the Endorsement of
Forest Certification is a non-profit
organisation that operates a certification
system primarily for small forest
owners. The aim is economically
sustainable and profitable forest
production with respect for the highest
ecological, cultural, social and ethical
standards.
A quiet forest visit
Sometimes Setra buys standing timber
locally and does the felling itself. In his role
as timber buyer at Setra, Christer Ekström
buys standing timber which is then felled
and sent to Setra’s unit in Vimmerby.
Before any purchase agreement is
signed, Christer carries out a natural
value assessment. This is about assessing
natural values, for example the presence
of red-listed indicator species and key
biotopes, in the forest being studied.
“On average I am out in the forest a
couple of days each week. But it doesn’t
have to be formal natural value assessments. I might meet the contractors carrying out the felling or swap experiences
and advice with the landowner. It can also
be an initial visual survey when I feel that
a site is interesting. With my experience I
can often sense if a stand can be bought.
If a site exudes natural values there won’t
be a deal,” says Christer.
Setra supports the development of responsible forest management. This means
consideration for nature when felling and
that forests and nature areas with high
conservation values are set aside. All raw
material that Setra buys in must meet the
requirements for controlled raw material
which means that the origin is traceable
and meets basic demands. This also applies when Christer buys standing timber.
Sales sawn wood products
- proportion certified and controlled
%
100
80
60
40
20
0
18%
19%
23%
21%
19%
18%
19%
17%
16%
19%
2011
2012
2013
2014
2015
Controlled
FSC®-certified
PEFC-certified
21
OUR PRODUCTION
High efficiency at every stage
Setra’s sawmills and processing units are certified according to the environmental
management standard, ISO 14001. Prioritised areas are more efficient energy utilisation,
noise and resource optimisation.
There are several steps in the sawmill process
which consume a lot of energy. The largest
single energy consumption is during timber
drying. Of Setra’s total energy use, which in
2015 amounted to 616 GWh, thermal energy
accounted for 75%. This thermal energy
is produced to 99% using renewable fuel,
primarily bark, from the company’s own
production. The use of fossil fuel for heating
amounted to less than 1%. Diesel is used
primarily when starting up the boilers.
Energy optimisation
Electricity, which is used among other things to
operate various machines used in production
and the fans in the kilns, accounted for 122
(127) GWh or 20% of total energy consumption in 2015. Total electricity consumption fell
but at the same time our production of sawn
and processed products was lower. Production
volumes and outside temperature affect both
the total and specific electricity consumption.
Setra’s objective is to reduce electricity
consumption by 20% by 2020 with 2010 as
the base year. Electricity consumption, which
is calculated per produced cubic metre of
sawn product, decreased by 6.7% in the
period 2010 to 2015.
During 2016 Setra plans to install new
electricity metering points. To continuously
follow up electricity consumption in various
sub-processes is important and a condition for
carrying out a qualitative energy analysis. The
result of measurements and analysis will guide
the company as to what actions and investments are most profitable from an energysaving perspective. Group management has
earmarked funds for investment in energysaving activities.
Fossil fuels such as diesel are mainly used
for internal transports. Increased knowledge
and driving more efficiently lead to lower diesel
consumption and lower emissions at the same
time as noise levels can be reduced. Efficient
inventory management is also a key component for minimising distances covered by the
trucks.
By 2020 the target is that diesel consumption
in trucks and machines will be reduced by
15% per cubic metre of sawn product. The
decrease between 2010 and 2015 was 10%.
Noise
The authorities’ increased focus on noise in
the community has resulted in higher requirements on Setra’s units. Sawmills and planing
mills are often close to local communities and
as these grow, new homes are built increasingly close to the units. Sawmill areas are often
large and a lot of operations take place outdoors. Reducing the spread of noise to local
residents requires a lot of noise-suppression
measures. Today work is underway at several
of Setra’s units to reduce disturbance from
noise. Examples are Malå, where the most
noisy components are being sound-proofed,
and Heby, where planning has started for the
construction of a noise barrier to protect the
nearest neighbours.
Resource optimisation
Using wood raw material optimally is a key
issue for Setra both from profit and sustainability perspectives. Purchase of sawlogs
accounts for some 50% of Setra’s total
costs. The value of each log is optimised
and we try to get a high saw yield, that is a
high volume of sawn product in relation to
the volume of raw material. Some of Setra’s
sawmills have specialised in sawing thin logs
while others saw thicker dimensions, so the
units cannot be directly compared with each
other. The saw yield is affected not only by
the dimensions of the log but also by the
sawing technology and the choice of sawing
the log to planks or boards depending on
the economic value of the end products. The
average saw yield for Setra’s nine sawmills in
2015 amounted to 49.6% (49.5).
Material that is not turned into boards or
planks by the saw line becomes cellulose
chips or bioenergy. The whole log is used.
Energy consumption in production*
Electricity consumption
– proportion by energy type 2015
– kWh/m³ sawn/processed wood product
– kWh/m³ sawn/processed wood product
75
18
Bioenergy (for heating)
75%
Electrical energy
20%
70
71.1
65
Diesel (for internal
transports) 5%
60
Fuel oil (for heating)
< 0.5%
55
*Subsidiaries Setra Plusshus and M&S
Softwood are not included
22
Diesel consumption
50
16
68.6
66.8
66.4
2013
2014
2015
16,0
15,8
15,9
2013
2014
2015
14
Target 2020:
56.9 kWh/m3
(-20% compared
with 2010)
2010
17,6
12
10
2010
Target 2020:
15 kWh/m3
(-15% compared
with 2010)
OUR PRODUCTION
Reduced electricity consumption through kiln control
Drying timber accounts in general for the main part of electricity consumption at a sawmill.
At Setra Nyby changes to the fan speed control system have reduced consumption.
A drying programme can run for anything between
40 and 172 hours depending on the timber dimensions and wood species. At Setra Nyby there are
14 batch kilns which have had fan speed control
installed in 2015.
A new control system for the kilns, which was installed in 2014, has been of great help in this work.
“Now we can control our drying programme
more exactly and really fine tune how the fans
should run. Using simulations I can run a test of a
programme and see what the result is before we try
it for real.”
Several units within the Setra Group are working
on making kiln control more efficient.
"
Usually the fans in a kiln run at the same speed
throughout the drying programme. But the speed
does not need to be constant. At Setra Nyby
slowing down the fans has contributed to energy
savings without any loss of quality.
“At the end of the drying process you can slow
the fans down since most of the moisture has
been transported away,” says Clas-Göran Larsson,
normally responsible for outgoing loading, who has
developed the drying programme with reduced fan
speeds.
The fans in a kiln help transport the moisture
away from the timber to get the correct moisture
level which varies depending on customer requirements.
Main environmental impact from a sawmill
Noise
Transport of sawlogs
to sawmill
Debarking and sawing
Sorting of sawlogs by diameter
and quality
Energy consumption
Electrical energy, thermal
energy and fuel
Emissions to air
Nitrogen oxides, carbon
dioxide and particulates
Planks and boards
Bark Chips Shavings
Internal transports
!
Transport of sawn wood products
to customers
Trimming, sorting
and packeting
!
Drying planks and
boards to required
moisture content
Bioproducts burned to produce
heat for the kilns
Transport of bioproducts
to customers
SETRA
SETRAGRO
G ROU
UP P2 02101
55
23
OUR WORKING ENVIRONMENT
Focus on health and safety
Working environment issues are given priority within Setra. Investments in enclosure guards,
training and wellness programmes are some key parts of our efforts to
provide a good and safe working environment.
Setra has zero tolerance for industrial accidents. That no one should sustain an injury
at their place of work goes without saying.
A good safety culture, based on knowledge,
is an important prerequisite for reducing the
number of accidents. Setra has set an interim
target towards zero tolerance which is that the
number of accidents at work which result in
sickness absence per 100 FTEs should be less
than 1.0 by 2020. In 2015, this figure was 2.7.
Slipping, crush and cut incidents, as well as
falling and flying objects, are the most common causes of workplace accidents resulting
in sickness absence.
At Setra, the CEO’s responsibility for the
working environment is delegated to the local
managers. Each unit has a safety officer and
its own safety committee headed by the mill
manager. In order to support local working
environment initiatives, the company has
formed a group-wide working environmental
council headed by Setra’s Environmental
Manager. The council, which mainly works
24
with communication, training and exchange
of experiences about safety issues, includes
safety officers, production employees and
Setra’s HR function.
Setra has a management system for the
working environment. Each unit sets targets for
working environment initiatives and instructions are drawn up for risky activities. Internal
audits are performed every year at which new
legislation and other news are discussed.
Enclosure guards
Major investments have been made in enclosure guards in recent years. These include
gates and safety covers which cut the power
if anyone gets close to moving machine parts.
All the saw lines and trimmers at Setra’s units
have been equipped with enclosure guards
since 2014.
Through SIA, the sawmill industry’s common
system for reporting industrial injuries, industrial
accidents and incidents are recorded by the
sawmills and processing units on an ongoing
basis. In our modular building factories,
Green cross is used, read more on the next
page. Identifying and preventing risks is a
central part of systematic working environment
activities.
Safety training
Training and communication about risks and
opportunities are important for Setra’s efforts
to develop a good safety culture. Starting in
2015, Setra requires all contractors who carry
out work at Setra’s units to have completed
the SSG Entre safety training course. Setra has
also further developed its internal training concept. The SSG Entre Safety Passport provides
the base for this training to which Setra has
added a company-specific module. At the
end of 2015 a number of “test pilots” did
this training and based on their views this
programme will be developed in an additional stage before being introduced for other
employees in 2016.
OUR WORKING ENVIRONMENT
Healthy workplaces
Industrial accidents with sickness absence*
The working environment at Setra must be safe, stimulating and
pleasant and take both physical and psychosocial circumstances
into account.
“To reverse Setra’s negative development for sickness rates it is
important to look at the whole picture. Factors such as leadership,
values, corporate culture, working group size are examples of areas
that we are focusing on to develop healthier workplaces,” says
Eva Boije, HR strategist at Setra.
In order to find common working methods and share experiences
between the production units, Setra purchased a group-wide solution
for company healthcare in 2015. Our working environment initiatives
to date have very much been about the physical working environment
with major investments in enclosure guards and safety training. In
future, Setra will increase its focus on the psychosocial working
environment. Setra’s managers, foremen and safety officers are key
people in this long-term work.
– number per 100 employees (FTEs)
2015
2.7
2014
2.8
2013
2.9
2012
2.8
2011
2.3
*From 1 January 2015, the statistics include Setra Plusshus AB
Total sickness absence
2015
5.7%
2014
5.1%
2013
4.0%
2012
4.1%
2011
4.0%
Ergonomic packaging
The employee and health surveys at Setra’s planing mill in Skutskär
showed that several employees were experiencing pain and stiffness
in their backs, shoulders, necks and knees.
In 2015. the unit improved ergonomics at the packaging station
in one of the two planing lines. But technical obstacles, it is a narrow space, made this work a challenge. The solutions available in
the market did not meet requirements.
In the end, Setra Skutskär chose to develop a tool together with
a supplier which had previously provided cost-effective solutions for
Setra. Now the packaging station adjusts itself so that employees
avoid unnecessary bending and crouching.
“The present solution meets all our demands for safety, ergonomics and efficiency. Everyone is pleased,” says Peter Wejbro,
Mill Manager.
Green cross
The employees at the Plusshus modular building factories in Kristinehamn and Renholmen get together every morning. Everyone in the
factories attends the morning meeting where questions about the day’s
production are discussed. How is production planning looking? Are there
any material shortages? How is absence today, do we need to move
people around? Another key issue that is discussed is the working
environment. Have there been any accidents or incidents? Incidents
are marked in the Green cross.
“A green day is a good day. If days are marked in yellow an incident
has occurred and if it is a red day, there has been an accident,” explains
Lennart Löwinger, Manager, and continues:
“We also discuss the incident and what we can do to avoid it happening again. At our safety committee meetings we do a more in-depth
analysis to see if accidents or incidents are caused by some systematic
errors or deficiencies. The most common accidents that occur are cuts,
someone shooting himself with a nail gun or stumbling. As luck would
have if, or maybe it’s skill, we haven’t had any more serious accidents in
recent years.
“The green cross is put up on the control boards around the factory
together with production planning and other important information. The
visual picture is important. It is a good reminder to think about safety
and if it it’s green, we can be pleased,” concludes Lennart.
25
OUR TRANSPORTS
Cooperation required to reduce climate impact
Our transport flows are large and complex. Emissions from transports account for more than half
of the company’s greenhouse gas emissions. But sustainable transports are also about road
safety and the working environment.
Transports are part of Setra’s offering. It is
important for Setra to find efficient logistics
solutions. Setra’s transport flows are big and
complex and employ a large number of people.
Timber
The incoming timber raw material is mainly
transported on timber lorries with a small proportion going by rail. In 2015 the proportion of
timber delivered by rail amounted to about 3%.
The catchment area for the timber is normally
within 100 kilometres from the sawmill.
Sawn and processed products to
customers
Sawn and processed products are transported
by road and by sea. In 2015, 52% of volume
was transported by road and 48% by sea.
Approximately 74% of the total volume of wood
products went to customers in an international
market. Most of transports within Europe are by
road while the longer deliveries, to North Africa,
the Middle East and Asia, go by sea as do shipments to the UK and Southern Europe. Before
sawn and processed products are loaded onto
ships, they are delivered by road to the port of
loading.
In recent years intermodal transports have
also been carried out, although on a small
scale. The wood products are collected at
Setra’s unit by lorry but the trailer/container is
then loaded onto a train for onward transport
to the customer or to the port of loading. From
a climate perspective, rail is the best mode
of transport, and sea transport causes lower
specific greenhouse gas emissions than road
transport.
26
Bioproducts
Setra sells large volumes of cellulose chips
to customers in the pulp and paper industry
as well as chips, bark and shavings to energy
customers. These products are voluminous and
deliveries are exclusively by road, often in a
regional market within a radius of approximately
200 kilometres.
Other transports include internal transports of
sawn products between sawmills and processing units, deliveries of other supplies to facilities
and deliveries from the units in the form of ash
and waste.
Cooperation for reduced climate impact
From a life cycle perspective where the climate
impact of the sawn wood products is assessed
“from the cradle to the grave”, transports
account for most of Setra’s greenhouse gas
emissions. Emissions vary with distance and
type of transport. Cooperation with our logistics
providers is a pre-condition for reducing climate
impact. Key aspects for climate-smart logistics
solutions are load factor and empty running.
Load factor refers to the
utilised load capacity and
empty running measures the proportion
of a journey when
the lorry is
empty.
Long-term cooperation makes it possible for
our logistics providers to plan and find smart
transport solutions. A close dialogue and good
planning are everything here. Several of our key
logistics providers and suppliers are actively
engaged in climate issues and have adopted
the Swedish Forest Industries Federation’s
sector-wide target to reduce fossil carbon
dioxide emissions from transports by 20% by
2020. One key measure in this work is to raise
the proportion of renewables in the tank. Diesel
mixed with renewable fuels is used at several of
Setra’s units.
One important event during the past year
was the government’s decision to increase the
maximum permitted gross weight on lorries with
trailers from 60 tonnes to 64 tonnes. This rule
came into force at the end of the first half of the
year. For Setra, this means that larger volumes
of bioproducts can be loaded on each vehicle,
which reduces emissions per delivered cubic
metre.
Q3 for sustainable transport
Greenhouse gas emissions are a key issue in
transport procurement, but fair competition
terms, drivers’ working hours and road safety
are other valued sustainability aspects. This is
why Setra is a member of Q3, a forum for sustainable transport and uses the procurement
tool developed by the association. When
procuring road transport services, Setra
has both environmental demands as well
as demands for working environment
and road safety.
OUR TRANSPORTS
Secure packets – secure deliveries
It is important that the packets that reach customers are whole, stable and
clearly labelled. A timber packet is handled about 10-15 times during its
life. Each lift puts a degree of strain on the packet. For volumes transported
by bulk carrier, the timber packages are lifted on board with straps that are
wrapped round the packet which places high demands on packet stability.
Setra is conducting an internal initiative which focuses on improvements
within packeting and deliveries. This is what we are working with:
Packet structure
Setra’s packet structure complies with
the Swedish standard for timber packets.
Important factors for packet stability and
quality are plastic band tension, length
and location of laths and that each layer
of boards is located correctly A review of
packet structure was carried out at all units
in 2015 and this improvement initiative
will continue in 2016.
kg
Weigher
Weighing
Correct details of the packet’s weight are
very important for transport. Setra has
installed a packet weigher at a unit and
is now evaluating this technology before
installing it at other units. The goal is that
the weight can be linked to the packet
number in IT systems and specified on
the packet label.
Packet information
Information about the packet with packet
number, volume, dimensions, grade, etc.,
must be readily accessible. Setra has
developed a standard for label placement. Setra’s packets have plastic covers
in eco-friendly polythene, with friction
film and UV protection. The plastic is
recyclable.
Transport
All Setra’s packets leave the units by road.
Those not transported on a conventional lorry
are loaded into a trailer or container. Regardless of the type of load carrier, load securing
is important to prevent shifting which causes
damage to the goods or, in the worst case,
accidents or personal injury. Setra’s outbound loading staff and logistics department
attended a load securing training in autumn
2015. This training was the kick-off for work
on load securing that will be conducted
during 2016.
Interview project
about hauliers’
work
In autumn 2015, Setra carried out the
Driver-check project. Lorry drivers working
for Setra were interviewed about such
things as the environment, working
conditions and road safety.
Driver-check is one step towards a better idea
of how the transport companies work. During
September, interviews were carried out with
drivers of both domestic and export deliveries.
“The drivers were extremely cooperative.
Their answers gave us both good insight into
how their companies work with environment and
safety matters and ideas for improvements at
our units. Extremely valuable and interesting,”
says Emil Malmgren, logistics specialist, who led
the work with Driver-check together with Lotta
Thedéen, Setra’s Environmental Manager.
Once the results of the interviews were collated, the affected hauliers were given feedback
and also suggestions for identified improvements. The responses were then included in
procurement of road transport for 2016.
27
GHG REPORT
Our climate impact
Most of Setra’s greenhouse gas (GHG) emissions originate at the transport stage.
But wood binds carbon and the benefits of using wood for building and living considerably
outweigh the products’ emissions from a life cycle perspective.
Setra works to reduce its GHG emissions in
several ways. One key area is more efficient
energy consumption in the company’s own
operations. Another is to improve the efficiency
of the company’s transport activities, sawlog
transports to the facilities and transports of the
company’s wood products and bioproducts
to customers. In our sales work we also want
to contribute to increased use of wood. By
replacing building materials such as steel and
concrete with wood, carbon storage is achieved
instead of carbon dioxide emissions.
Climate targets
Setra’s GHG emissions from sources owned by
the company (Scope 1) accounted for 6% of
total GHG emissions in 2015.
Electricity consumption (Scope 2) accounted for 21%. Setra’s target is to reduce electricity consumption by 20% and diesel consumption by 15% measured by cubic metre of sawn
product by 2020 with 2010 as the base year.
This represents a reduction of approximately 6
kg of carbon dioxide per cubic metre of sawn
product. Up until year-end 2015, the specific
emissions had decreased by more than 2 kg.
Emissions from transport-related activities
(Scope 3) accounted for 73% of total emissions.
Emissions can be reduced by increasing rail
transport of timber to the sawmills, making
demands in the transport procurement process
and choosing smart logistics solutions. In autumn 2015, a dialogue was conducted with our
key logistics providers which included developing cooperation within climate issues. Setra
has revised its guidelines for company cars and
now has stricter requirements for emissions
when buying new cars.
Calculations show that wood binds
approximately 900 kg of carbon dioxide per
cubic metre of sawn product. Carbon dioxide
emissions in a life cycle perspective, i.e. from
planting to transport to an average customer
in Sweden, are at the same time 59 kg. Using
wood for construction and housing provides a
lock-in effect of 841 kg of carbon dioxide per
cubic metre of sawn product. Marketing and increasing sales of wood products are Setra’s key
tasks for reducing greenhouse gas emissions.
Sales targets for sawn and processed wood
products are in themselves climate targets.
How will the targets be reached?
The target for reduced GHG emissions will be
achieved by the following activities:
• Energy audits of all sawmills and processing
unit. Installation of measuring points will allow
consumption to be monitored in a timely
manner. More information about electricity
use will lead to better decisions on what
action to take
• Replacement of control systems for more
energy-efficient control of the drying process
• Improved logistics in the timber yard and
finished products stocks through the ware
house management system
• Increased cooperation with transport
providers for more efficient logistics
• Using diesel mixed with renewable fuels,
such as HVO, in our machines
Climate calculations for Setra
Setra’s climate calculations are reported according
to the Greenhouse Gas Protocol’s guidelines (GHG
Protocol). The GHG Protocol is an international
calculation standard used by companies and
countries as a tool for understanding and quantifying their GHG emissions. Emissions are divided
into three scopes where:
• Scope 1 is direct GHG emissions from
operations.
• Scope 2 is indirect emissions from purchased
energy. When Setra buys in electricity, district
heating and district cooling the emissions
do not occur inside the gages but at energy
production.
• Scope 3 is indirect emissions from purchased
transport-related activities, employee
commuting, leased machines and the climate
impact of purchased products – in Setra’s
case primarily timber. Operations in the
subsidiaries Setra Plusshus and M&S
Softwood are not included in GHG calculations
for 2015.
GHG emissions per activity 2015
Outbound transports 50.1%
Energy 23.1%
Inbound transports 11.2%
Raw material and materials 10.6%
Machines 4.5%
Employee commuting 0.3%
Business travel 0.2%
Waste 0.0%
GHG emissions per scope 2015
Scope 3
Scope 1
6%
Scope 2
Scope 2
21%
Scope 1
28
Scope 3
73%
GHG REPORT
Setra’s GHG report, total carbon dioxide emissions, tonnes
2015
Emission activity1
Share of
total 2015
2014
2013
2012
Scope 1
Drying and heating
4,783
5,863
5,693
14,744
Machines
7,727
7,987
7,754
7,816
Business travel
157
Total, Scope 1
12,667
165
147
161
6%
14,015
13,594
22,722
43,912
60,723
32,959
21%
43,912
60,723
32,959
1,470
1,562
1,517
2,234
48
91
92
796
1,392
1,439
1,397
1,408
Scope 2
Purchased electricity, heating and cooling2
42,056
Total Scope 2
42,056
Scope 3
Fuel and energy-related activities
- of which fuel for drying, heating and purchased energy
- of which fuel for machines
- of which fuel for business travel (in scope 1)
Raw material and materials
Waste in own operations
30
31
28
29
21,400
23,008
22,379
21,499
23
20
25
29
Business travel (not included in scope 1)
171
160
119
121
Employee commuting
578
672
686
729
23,641
25,421
24,726
24,612
22,718
27,906
99,043
80,293
Total, Scope 3 excl. transport
Inbound timber deliveries
Outbound deliveries
101,567
Total, Scope 3 incl. transport
147,926
124,945
73%
177,974
Total Scope 1, 2, 3
Total amount excl. transport
78,363
83,347
Total amount incl. transport
202,649
235,901
Values in the table are 31% measured and 69% estimated.
2
Based on the emission factor for Nordic residual mix.
1
Wood in a climate perspective
– emissions and lock-in kg carbon dioxide per cubic metre of sawn product
kg
400
Calculation specifications
254
59
84
UK
47
Sw
ede
n
200
105
Jap
an
-200
Ge
rm
any
0
-400
-600
-800
-900
Setra’s GHG report is based on the GHG Protocol.
When calculating emissions per cubic metre of
sawn product, the allocation between wood product
and bioproducts is based on economic value. Sawn
products relate to both sawn and processed products,
processed products have slightly higher specific emissions than sawn products.
Four standard destinations have been selected for
deliveries to customers: locally in Sweden (road transport 300 km), Germany (road transport), UK (road and
sea transport) and Japan (road and sea transport). The
value for how much carbon is stored in a cubic metre
of a wood building product comes from Träguiden (The
Wood Guide), Swedish Wood.
-1000
■ Excl. deliveries to customers
■ Including transports to average customer in standard destinations
■ Amount of carbon stored in wood converted into CO²
29
Board of Directors
"
Michael Bertorp
"
Chairman of the Board since 2012.
Member of the Audit Committee.
Main occupation:
Börje Bengtsson
Member of the Board since 2014.
Member of the Audit Committee.
Main occupation:
Various directorships including
Board member of Mellanskog and
Svevia AB, and Chairman of the
Consultant and directorships.
Board of C-rad AB.
"
Sture Karlsson
"
Main occupation:
CEO Mellanskog.
Per Matses
Chairman of the Audit Committee.
Main occupation:
CFO Sveaskog.
"
Per-Olof Wedin
Ellinor Berglund
Employee representative.
Main occupation:
President & CEO Sveaskog.
Main occupation:
Customer service employee.
"
Employed since 1989.
Member of the Board since 2015,
deputy 2009–2015.
Main occupation:
Plane operator.
Tomas Larsson
"
"
Göran Sundqvist
Member of the Board since 2009,
deputy 2007–2009.
Main occupation:
Sawmill worker.
Employee representative
Deputy since 2015.
Main occupation: Shift foreman
30
"
Pontus Bohlin
Auditor
Martin Johansson
Öhrlings PricewaterhouseCoopers AB
Senior Auditor since 2009.
Authorised Public Accountant since 1997.
Group Management
"
Hannele Arvonen
"
Born 1966. Employed 2013.
Education: Master of Forestry
Science, BA International
Olle Berg
Market Director.
Education: M.Sc. Econ.
Relations.
"
Jonas Björnståhl
Klas Flygare
Production Director.
Raw Material & Bioproducts
Director.
Science.
Science.
"
Pontus Friberg
Lotta Löwhagen Lundberg
Business Support Director.
Corporate Communications and
Human Resources Director
Science.
Education: M.Sc. in Agriculture.
Anders Marklund
"
"
"
CFO.
Education: M.Sc. Econ.
Organisation
CEO
Finance
HR &
Communications
Business Support
Market
Raw Material &
Bioproducts
Production
Plusshus
31
GRI Index
In order to ensure relevant and credible reporting, Setra has chosen
to apply the Global Reporting Initiative’s (GRI) sustainability reporting
guidelines.
The table below lists the GRI aspects and indicators we have chosen
to report and where in the report information on each indicator can be
found. We work with and report the sustainability aspects where we
have a significant influence, a clear responsibility and the possibility
to contribute to sustainable development, as well as issues that are
especially high on our stakeholders’ agenda. Reporting of facts and key
figures relate to the 2015 financial year unless otherwise indicated. We
have chosen to apply GRI G4 at Core level. No independent review of
the report against GRI’s criteria has been performed. On the other hand,
Setra is subject to other external reviews, such as our certified management system and our forest management certification systems.
General standard disclosures
GRI
indicator
Description
G4-1
Statement from the CEO
Page
Comments
S TR ATEGY AND ANA LYSIS
4-5
ORGANISATIONA L PROFILE
G4-3
Name of the organisation
35
G4-4
Brands, products and services
6, 13-17, 26-27
G4-5
Location of company headquarters
35
G4-6
Countries where the organisation operates
6, 14-17, 19, 35
G4-7
Ownership structure and legal form
6, 35
G4-8
Markets served
6, 14-17, 19, 35
G4-9
Scale of the organisation
6-7
G4-10
Workforce
6, 18-19
Setra’s operations are mainly conducted by the company’s own employees, where the majority are
full-time and permanent employees.
G4-11
Percentage of total employees covered by collective bargaining
agreements
See comment
100% of Setra’s employees in Sweden are covered by collective bargaining agreements.
The average number of employees at Setra in 2015 amounted to 938, of whom 54 outside Sweden
(UK 43, Poland 1, Germany 1, France 2, Spain 2, China 3 and Japan 2.)
G4-12
Organisation’s supply chain
6-7, 20-21,
26-27
The organisation’s suppliers can be divided into three main groups. Suppliers of timber raw
material, suppliers of logistics services and other suppliers. Procurement of timber raw material and
transport services includes sustainability requirements. Work is underway to develop requirements
for other purchases.
G4-13
Significant organisational changes during the reporting period
See comment
A decision has been made to phase out the planing mill in Valbo during 2016.
G4-14
Precautionary principle
9, 22-23
The precautionary principle is applied when changing operations, for example installation of new
machines or choice of chemicals.
G4-15
Externally developed initiatives and principles to which the organisation subscribes or endorses
20-22, 28-29
G4-16
Membership of industry associations/advocacy organisations
See comment
Setra is a member of the Swedish Forest Industries Federation.
Facts and key figures in the report relate to all the Group’s units (parent company and
subsidiaries) unless otherwise specified.
Setra Group AB, reg. no. 556034-8483
IDENTIFIED M ATERIA L A SPECT S AND BOUNDARIES
G4-17
Entities included in the report
See comment
G4-18
Process for defining the report content
9-11, 32
G4-19
Identified material aspects
10-11, 33
G4-20
Aspect boundary for each material aspect within the
organisation
10-11
In the diagram identified aspects “responsible forest management and resource efficiency” as well
as “climate impact” are located partly outside the organisation.
Other aspects are within the organisation.
G4-21
Aspect boundary for each material aspect outside the
organisation
10-11
See above, G4-20.
G4-22
Effect of any restatements of information provided in
previous reports
See comment
No changed information.
G4-23
Significant changes from previous reporting periods in scope
and aspect boundaries
See comment
No significant changes in scope or aspect boundaries.
G4-24
Stakeholders
10-11
G4-25
Basis for identification and selection of stakeholders
10-11
G4-26
Stakeholder dialogue
10-11
G4-27
Key topics for each stakeholder group
10-11
S TA K EHOLDER ENGAGEMENT
REPORT PROFILE
G4-28
Reporting period
32
Report relates to the year 2015.
G4-29
Date of most recent previous report
32
Most recent report was published in March 2015.
G4-30
Reporting cycle
32
Calendar year.
G4-31
Contact point for questions regarding report
35
G4-32
GRI Index
32-33
G4-33
External assurance
32
GOV ERNANCE
G4-34
Governance structure
30-31
E THICS AND INTEGRIT Y
G4-56
32
Values and ethical principles
5, 9, 18-19
Setra Group AB is a limited company registered in Sweden with its registered office in Stockholm.
Sponsored company
In autumn 2013, when Setra had its 10th anniversary, a
cooperation was started with SOS Children’s Villages in order
to create involvement among Setra’s employees. Setra chose to
support the construction of the Thai Binh Children’s Village in
Vietnam with SEK 100,000 per year. In 2015, Setra supported
SOS Children’s Villages with an additional SEK 200,000 due
among other things to the refugee crisis in Europe.
Specific standard disclosures
GRI
indicator
Description
Page
Comments
ECONOMIC
G4-DMA
Management
5
Aspect managed: economic performance
Economic performance
G4-EC1
Direct economic value generated and distributed
7, 34
G4-EC4
Financial assistance received from government
See comment
In the 2015 financial year, Setra received SEK 16 million transport subsidy.
20-22, 28-29
Aspects managed: materials/responsible forest management, energy, emissions, products and
services, and legislative compliance. Environmental work managed on basis of ISO 14001. Responsibility delegated from CEO to Mill Managers. Environmental Manager responsible for management
system, etc., and is an expert function. Legislative compliance is sometimes monitored at internal
and external environmental audits.
EN VIRONMENTA L
G4-DMA
Management
Materials – responsible forest management and resource
efficiency
G4-EN1
Materials used
16, 20-22
Energy
G4-EN3
Energy consumption within the organisation
22-23
G4-EN6
Reduction of energy consumption
22-23
Aspects managed: materials/responsible forest management, energy, emissions, products and
services, and legislative compliance. Environmental work managed on basis of ISO 14001. Responsibility delegated from CEO to Mill Managers. Environmental Manager responsible for management
system, etc., and is an expert function. Legislative compliance is sometimes monitored at internal
and external environmental audits.
Emissions – climate impact
G4-EN15
Direct GHG emissions, scope 1
28-29
G4-EN16
Indirect GHG emissions, scope 2
28-29
G4-EN17
Other indirect GHG emissions, scope 3
28-29
G4-EN18
GHG emissions intensity
28-29
Products and Services – Setra’s offering
G4-EN27
Extent of impact mitigation of environmental impacts of products
and services
G4-EN29
Significant fines and other sanctions for non- compliance with
environmental laws and regulations
20-23, 26-29
Compliance – local environmental impact
See comment
No monetary fines or sanctions for environmental non-compliance have been awarded.
18-19, 24-25
Following aspects are governed: health and safety, training and skills development.
SOCIA L
G4-DMA
Management employee aspects
Occupational health and safety
G4-LA5
Workforce represented in committees for occupational health
and safety programmes
24
100% of employees in Sweden are represented by a safety officer and occupational health and
safety committees
G4-LA6
Industrial injuries, absentee rate and work-related fatalities
24-25
No work-related fatalities occurred in 2015.
Training and education
G4-LA11
Annual individual performance review
18
Anti-corruption – Ethics and values
G4-DMA
Management anti-corruption
9
Work with anti-corruption promotes sound and well-grounded business decisions and is part of being an responsible and ethical company. Setra’s Board decided on a sustainability policy for Setra
in 2015 where business ethics are a key aspect. There are special guidelines for compliance with
competition legislation. as well as for gifts, benefits and external entertainment. Implementation of
governing documents is underway and takes place through training.
G4-SO4
Communication and training on anti-corruption policies and
procedures
See comment
Training on anti-corruption policies and procedures took place in 2013-2014. No training took
place in 2015.
G4-SO5
Confirmed incidents of corruption and actions taken
See comment
No corruption cases were reported during the year.
G4-SO8
Significant fines and other sanctions for non-compliance
with legislation.
See comment
In 2015 Setra Långshyttan was charged a sanction fee of SEK 430,000 by the Swedish Work
Environment Authority due to inadequate enclosure guards, etc. Work is underway to install
enclosure guards in the form of a fence and optical protection in accordance with the Swedish Work
Environment Authority’s requirements. A new inspection will be made in 2016.
Management of customer satisfaction includes systematic follow-up of claims that for example
related to volumes, grades, moisture content or packaging.
Product labelling – Setra’s offering
G4-DMA
Management product labelling
13, 27
G4-PR5
Result of surveys measuring customer satisfaction
13
33
Setra in figures
SEKm
2015
2014
2013
2012
2011
4,218
4,194
4,068
4,069
4,476
6
41
25
27
42
Income statement
Net sales
Other operating income
Total income
Operating expenses
Depreciation according to
Items affecting comparability
4,224
4,235
4,093
4,096
4,518
-4,049
-3,919
-3,864
-4,027
-4,431
-109
-115
-122
-129
-129
-19
-
-
-20
-
Operating profit/loss
47
201
107
-80
-42
Net financial items
-21
-31
-37
-44
-43
Profit/loss after financial items
26
170
70
-124
-85
Tax
-6
-37
-10
8
26
Profit/loss for the year
20
133
60
-116
-59
Intangible assets
144
144
144
144
145
Property, plant and equipment
662
702
754
824
882
1
1
2
2
2
83
97
126
135
134
1,264
1,305
1,150
1,236
1,468
Balance sheet
Financial assets
Deferred tax assets
Current assets
Cash and cash equivalents
Total assets
Equity
Deferred tax liabilities
Financial liabilities and interest-bearing
provisions
Operating liabilities
324
363
383
280
278
2,487
2,612
2,559
2,621
2,909
1,264
1,274
1,162
1,137
1,240
2
-
-
9
15
571
739
772
894
906
650
599
625
581
748
2,487
2,612
2,559
2,621
2,909
Sales growth, %
0.6
3.1
0.0
-9.1
-3.6
Operating margin, %
1.1
4.8
2.6
-2.0
-0.9
Total equity and liabilities
Key figures
Net margin, %
0.5
3.2
1.5
-2.8
-1.3
1,467
1,669
1,561
1,708
1,847
Return on operating capital, %
3.0
12.4
6.5
-4.5
-2.2
Return on equity, %
1.6
10.9
5.2
-9.7
-4.5
Operating capital, SEKm
Equity ratio, %
50.8
48.8
45.4
43.6
42.6
Financial net debt, SEKm
213
344
388
607
627
Net debt/equity ratio, %
17
26
33
53
51
Interest cover, multiple
8.3
6.0
2.7
neg
neg
0.39
2.59
1.17
-2.25
-1.15
Cash flow from operating activities
269
113
262
100
199
Investments in property, plant and
equipment
78
63
51
96
79
Earnings per share, SEK
Sales growth
Change in net sales compared
with previous year expressed as a
percentage.
Operating margin
Operating profit expressed as a
percentage of net sales.
Net margin
Profit for the year expressed as a
percentage of net sales.
Operating capital
Total assets minus cash and cash
equivalents, financial assets and
non-interest bearing liabilities and
provisions.
Return on operating capital
Operating profit expressed as a
percentage of average operating
capital (based on the opening and
closing balance for the period).
Return on equity
Profit for the year expressed as
a percentage of average equity
(based on the opening and
closing balance for the period).
Equity ratio
Equity expressed as a percentage
of total assets.
Financial net debt
Interest-bearing liabilities and
provisions minus cash and cash
equivalents and short-term
investments.
Interest cover
Operating profit plus financial
income divided by financial
expenses.
Net debt/equity ratio
Financial net debt divided by
equity.
Earnings per share
Profit for the year divided by the
average number of shares during
the year
Cash flow and investments
34
A digital version of Setra’s financial
Annual Report (in Swedish) is available
at www.setragroup.com
Addresses
HEAD OFFICE
PROCESSING UNITS
Setra Group AB
Box 3027
Setra Långshyttan
Amungsvägen 17
SE-169 03 SOLNA
Street address:
Gårdsvägen 18
Telephone: +46 8-705 03 00
E-mail: [email protected]
PRODUCTION UNITS
Sawmills
Setra Färila
Snasbäcken
SE-820 41 FÄRILA
Telephone: +46 65176 81 00
Setra Hasselfors
SE-695 85 HASSELFORS
Telephone: +46 585 485 00
Setra Heby
SE-744 32 HEBY
Telephone: +46 224 368 00
770 70 LÅNGSHYTTAN
SE-770 70 LÅNGSHYTTAN
Telephone: +46 225 635 00
Setra Skutskär
Box 37
SE-814 21 SKUTSKÄR
Telephone: +46 26 27 94 50
Setra Valbo*
Box 1061
SE-818 21 VALBO
Telephone: +46 26 13 46 60
*discontinuing summer 2016
M&S Softwood Ltd
Estuary Road
King’s Lynn
NORFOLK PE30 2HJ, UK
SALES OFFICES
OUTSIDE SWEDEN
AGENTS
UK
G X.Papachristou & Co O E
125-127 Kifissias Ave
11524 ATHENS
Setra Sales UK
11 St Mary’s Court
North Bar Within, Beverley
EAST YORKSHIRE HU17 8DG, UK
Italy
Germany
Compagnia del Legno Srl
Viale della Vittoria, 245
Setra Sales Germany
Reichenberger str 5
DE-912 07 LAUF
Telephone: +49 170 921 1121
Poland
Setra Poland
Ul. Staromiejska 17 E
PL-84-300 LEBORK
Telephone: +48 695 19 86 86
France
MODULAR BUILDING
FACTORIES
FR-76 400 FÉCAMP
Setra Malå
Storgatan 75
Setra Plusshus
Hantverkargatan 5
Telephone: +34 91 353 39 20
SE-930 70 MALÅ
Telephone: +46 953 414 00
SE-681 42 KRISTINEHAMN
Telephone: +46 550 41 27 31
Japan
Setra Nyby
Nybyvägen 8
SALES & ADMINISTRATION
Setra Rolfs
Box 10154
SE-952 27 KALIX
Telephone: +46 923 732 00
Setra Skinnskatteberg
Box 100
SE-739 22 SKINNSKATTEBERG
Telephone: +46 222 452 00
Setra Vimmerby
Hamra 140
SE-801 04 GÄVLE
Telephone: +46 26 14 78 00
Setra Customers Service
Sawn Wood Products
Box 430
SE-801 05 GÄVLE
Telephone: +46 26 54 80 00
Setra Plusshus
Servicegatan 1
SE-931 76 SKELLEFTEÅ
Telephone: +46 910 71 44 30
Telephone: +39 0438 940 433
North Africa/Tunisia
Setra Group
c/o Mehdi Daldoul
17 Rue Ibnarfa
El Manzah 8
2037 Ariana, TUNIS
Telephone: +21 6 708 33 975
Telephone: +33 2 3528 8212
SE-930 47 BYSKE
Telephone: +46 912 301 81
Setra Gustavsbro
Box 223
IT-31029 VITTORIO VENETO TV
Setra Sales France
62 rue de Mer
Setra Kastet
Box 430
SE-801 05 GÄVLE
Telephone: +46 26 54 80 00
SE-743 63 BJÖRKLINGE
Telephone: +46 18 56 08 00
Telephone: +30 2 106 925 086
Telephone: +44 1482 87 00 35
Telephone: +44 1553 76 00 71
Setra Plusshus
Renholmen 105
Greece
Spain
Setra Sales Spain
C/ Colombia 63, 4 B
ES-28016 MADRID
Setra Group Tokyo Office
4th floor, Shibakoen
No 32 Mori Building
3-4-30, Shibakoen
Minato-ko
TOKYO 105-0011
Telephone: +81 3 5404 7560
China
Setra Group Guangzhou Office
Room 1306, Teem Tower
No 208 Tianhe Road,
Tianhe District,
Guangzhou 510620
P.R of China
Telephone: +86 20 2826 1820
SE-598 91 VIMMERBY
Telephone: +46 492 283 00
Contact us
– for more information about this report or other aspects of Setra’s sustainability initiatives, please contact
Lotta Löwhagen Lundberg
Corporate Communications & HR Director
[email protected]
+46 8 705 03 17
Anders Marklund
CFO
[email protected]
+46 8 705 03 03
Charlotte Thedéen
Environmental Manager
[email protected]
+46 8 705 03 22
Production: Setra Group AB in cooperation with Timmer Reklambyrå AB, Trossa AB and 2050 Consulting AB.
Photographers: Lars Hägglöf, Christian Ljung, Ola Högberg, Joakim Bergström, Anders Eliasson, Emil Nordin, Paulina Holmgren,
Erik Svensson, Jonas Westling, Leon, Setra’s photo archives. Paper: Scandia 2000, cover 250 g, inside pages 150 g. Printer: Åtta.45 Tryckeri AB.
WOOD FOR LIFE
Setra Group AB
Box 3027
SE-169 03 Solna
Tel +46 8 705 03 00
[email protected]
www.setragroup.com
36

This is Setra 2015

Transcription

Similar documents

Setra Model 276 Barometric Pressure Transducer

AMA FIM Supercross Series

Technical specifications

Materials Matter - Fort Street Studio

Warranty Info

www.FirstColorado.com 18205 Highway 285 Nathrop, CO 81236

Terra Plus Technical Data Sheet

BENEFITS OF OWNING A PERRY HOME

Decking by the pool Go for Ash wood… because less is more

For Sale in North Briarcliff / Sunrise Estates