EN SCA magazine SHAPE 4 2015 focus 17 UN

4.2015 A MAGA ZINE FROM SCA ON TRENDS, MARKETS AND BUSINESS
OUTLOOK
THE
HISTORY
OF THE
DIAPER
How to fight mosquitos
(and Dengue fever) with
a newspaper.
Fast-growing
American in
the forest
s
y
wa
7
1
TO MEND
THE WORLD
Shape is a magazine from SCA primarily geared
toward customers, shareholders and analysts, but
also for journalists, opinion leaders and others interested in SCA’s business and development. Shape is
published four times a year. The next issue is due in
April 2016.
Publisher
Joséphine EdwallBjörklund
Managing Editor
Marita Sander
Editorial
Anna Gullers,
Inger Finell,
Appelberg
Design
Kristin Päeva,
Cecilia Farkas
Appelberg
Printer
Tag Worldwide
Address
SCA, Group
Communications,
Box 200,
101 23 Stockholm,
Sweden.
Telephone
+46 8 7885100
Fax +46 8 6788130
4.2015 A MAGA ZINE FROM SCA ON TRENDS, MARKETS AND BUSINESS
OUTLOOK
THE
HISTORY
OF THE
DIAPER
How to fight mosquitos
(and Dengue fever) with
a newspaper.
Fast-growing
American in
the forest
17 ways
TO MEND
THE WORLD
Cover photo:
Martin Sundström
Contents:
This issue of SCA Shape is published in Swedish, English, Spanish,
German, French, Dutch and Italian. The contents are printed on
GraphoSilk 90 grams from SCA. Reproduction only by permission
of SCA Group Communications. The opinions expressed herein are
those of the authors or persons interviewed and do not necessarily
reflect the views of the editors or SCA. You can subscribe to SCA
Shape or read it as a pdf at www.sca.com.
Address changes: www.sca.com/subscribe or
[email protected]
08. MEET CHINA’S TISSUE KING
Li Chao Wang is a high-profile figure in Chinese
business circles, and his company Vinda is closely
connected with SCA.
12. FOCUS: UN’S NEW GOALS
...such as
educating these
girls about
menstruation.
FOLLOW SCA ON:
The UN’s 17 new global goals for sustainable
development are designed for all actors in society
to make a difference. And SCA contributes in
several ways...
22. TALENT: TO GROW FAST
We take a closer look at the forest’s
fast grower.
24. BIG, BIGGER, ÖSTRAND
Twitter.com/
SCAeveryday
flickr.com/
photos/
hygienematters
Facebook.com/
SCA
Instagram/
SCAeveryday
Youtube.com/
SCAeveryday
linkedin.com/
company/
sca-company
2 SCA SHAPE 4 2015
The investment in Östrand is one of the largest-ever
industrial investments in Sweden.
JOHNÉR
28.
It’s been a long way from the
use of peat to the high-tech diapers that are wrapped around
our babies’ behinds.
HELLO, EDITORS...
...what do you
do with your
Christmas tree
after the holidays?
How do you make this cone open?
Read on page 22.
32. NEW WAY TO FIGHT DENGUE
A newspaper in Sri Lanka moved to raise
awareness of dengue fever in its own special way.
35. STORE FOR SURPLUS FOOD
Scandinavia’s first social super market sells
surplus food and hygiene products and allows
members reduced prices.
“I think that SCA
is in good ‘Shape’.”
Magnus Groth, president and CEO, SCA.
37. GROTH’S 10 MONTHS ON THE JOB
Magnus Groth talks about his experiences
during his first 10 months as president of SCA.
38. BEST IN CLASS
Qualifying for the Dow Jones Sustainability
Indices is not for everyone. Learn why on the
economy page.
MIKE MILLER, USA
I live in the woods, so we just
toss our tree on top of our
brush pile and let it slowly
return to nature.
ANNE HAMMARSKJÖLD,
SWEDEN
I have a somewhat ambivalent
attitude toward Christmas
trees. On one hand, I dream of
a “Disney tree,“ with so much
finery that you hardly see the
tree. On the other hand, I am
influenced by Hans Christian
Andersen’s fairy tale about the
little spruce that longed to be
a Christmas tree – which was
a lethal wish in the end. So I
rarely have a tree. However, I
cut off branches and put them
on my flowerbeds as protection against frost and snow.
DO YOU KNOW...
… how many kilos of toilet paper a Swede uses every year? Find out on page 5.
SCA SHAPE 4 2015 3
SHAPE UP
Check out what’s happening outside SCA
BOERI STRIKES AGAIN
STEFANO BOERI, an Italian
architect, is set to build a
36-story apartment tower in
Lausanne, Switzerland, that
will be the first building in the
world to be covered in evergreen trees.
The Tower of Cedars will
have more than 100 trees,
6,000 shrubs and 18,000
plants over 3,000 square
meters of green areas, reports
Boredpanda.
The plants will protect residents from dust, noise pollution and harsh wind.
Boeri previously designed
two 112 m towers in Milan as
well.
THE RETURN OF THE POSTCARD
THE OLD POSTCARDS we used to send our
loved ones from our holidays are nowadays
replaced by text messages and pictures on
Facebook and Instagram. Maybe a postcards
app can change that. By using photos from
your private photo album you can create
personalized postcards sent by mail – the
old-fashioned way. If that won’t do, there are
also sample designs that you can use. There
are several apps to help you create postcards,
such as Touchnote.
Counting the
world’s trees
How many trees are there in the world?
A new estimate says more than 3 trillion
(3,000,000,000,000), or about 422 trees per person.
About 43 percent of them are in the tropics.
Source: Nature
4 SCA SHAPE 4 2015
POWER TO THE
PERUVIAN PEOPLE
Knock, knock
KNOCK ON WOOD
GETT
Y IM
AG
ES
MISSION ACCOMPLISHED: a bicycle
helmet made entirely of material
from the forest. The outer shell of
the helmet is made of wood veneer,
and the straps are made of durable paper. The inside cushioning is
made of cellufoam, a new material
made of nanocellulose produced
from wood pulp, so it is both renewable and biodegradable and used
instead of oil-based materials.
Behind this invention is the
Swedish company Cellutech, promoting the development of commercial products using forest raw
materials.
X
PERU WILL PROVIDE more
than 2 million of its poorest
residents with electricity
– for free. Energy and Mining
Minister Jorge Merino says the
entire program will allow 95
percent of Peruvians to have
access to electricity by the end
of 2016, the Huffington Post
reports. That will be done by
installing a planned 12,500 solar
photovoltaic systems, reaching
500,000 households. Currently,
only about 66 percent of Peru’s
population has access to
electricity.
cellutech.se
ISTOCK
WATCH OUT FOR THE
REMOTE CONTROL
TELEVISION REMOTE-CONTROL
…
you hat
Did ow t
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h r
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th et p ar e,
go toil r ye rop
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Sw kil ers ge is s u e n
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pe av ver eri los. mp t 4
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ki
devices are the worst carriers
of bacteria in hospital rooms,
according to a study at the
University of Arizona. Remotes
spread antibiotic-resistant
bacteria, which contribute to
the 90,000 annual deaths from
infection acquired in hospitals in
the United States alone.
Bacteria carrier
number one in
hospitals.
SCA SHAPE 4 2015 5
LYFTET FÖR OSS
OCH FÖR NORRLAND
SCA investerar nästan åtta miljarder kronor i Östrands
massafabrik i Timrå, den största industriinvesteringen
i Norrland – någonsin.
Östrand ökar produktionen från 430 000 ton till 900 000 ton
och får den största produktionslinjen för blekt barrsulfatmassa
i världen.
Projektet har fått namnet Helios, efter
solens gud i den grekiska mytologin.
Genom Helios får Timrå och Norrland
världens mest konkurrenskraftiga massafabrik som i decennier framåt kommer
att skapa tillväxt, sysselsättning och
välfärd i Norrland.
SCA FOREST PRODUCTS
www.sca.com
How to
use a dead
Christmas
tree
COASTERS
Cut the trunk into thin
slices and sand them
down to create unique
coasters. If sap is
coming out of the tree
pieces, paint a thin
layer of polyurethane
over them.
INSULATE
PERENNIALS
Cut off some of the
boughs and lay them
over perennial beds to
insulate them from the
snow and frost.
IN SHORT
PATHWAYS
Cut the trunk into slices
to use as stepping
stones in your garden.
They can be used as
decoration along the
edges of existing paths.
MULCH
Pine needles dry
quickly and decompose
slowly, making them an
excellent moisture- and
mold-free mulch for
ground-covering crops,
such as strawberries, to
rest on.
WOOD CHIPS
Run the trunk and large
branches through a
wood chipper to make
wood chips that can
be used for mulch, to
suppress weeds or for
landscaping.
SCA SHAPE 4 2015 7
10 QUESTIONS
Li Chao Wang is the founder of Vinda, one of China’s
largest hygiene companies and a well-known household
tissue brand. He compares doing business to running a
marathon – only the most persistent succeed.
text ANNE HAMMARSKJÖLD photo SCA
The Tissue
KING
You have spent 30 years in the tissue industry.
How did you get started?
I became factory director at the Xinhui
Commodity Factory in Guangdong Province in the
1980s. At the time, poor tissue quality presented
a huge opportunity, since I believed people would
like to have high-quality products.
SCA is the majority shareholder of Vinda. In 2014, SCA
divested its hygiene business in China for integration
with Vinda and in 2015 SCA’s
hygiene business in South
East Asia, Taiwan and South
Korea was divested for
integration with Vinda. The
latter transaction is expected
to be effective during the
first quarter of 2016.
8 SCA SHAPE 4 2015
Why did you start Vinda?
In the 1980s, tissue in China was made from
straw pulp with bleaching agents. Tissue made
from wood pulp was unheard of. My objective in
founding Vinda in 1985 was simple: to provide
high-quality household paper to every Chinese
household. Vinda was the first domestic tissue
manufacturer to have its own brand and to use
wood pulp exclusively.
What have been Vinda’s milestones so far?
The first phase was to expand the scale by systematically establishing factories and strategic
points in China. The second was to improve the organizational structure, cultivate talent and highquality management. The third was to become
international. Vinda was listed on the Hong Kong
Stock Exchange in 2007, and SCA has become our
strategic partner and majority shareholder, with
a 51 percent stake.
We have developed our tissue brand from
a small position into a national or even international household name and achieved good
results. In 2014, revenue totaled nearly 8 billion
Hong Kong dollars (1 billion US dollars), more
than three times the level of 2007, and net profit
attributable to shareholders jumped more than
six times to HKD 593 million (USD 77 million).
And the next goal?
Our goal is to surpass the achievements of the
past three decades within the next five years and
we aim to become the leading hygiene company
in Asia.
What have you come to know about SCA
over the past years?
SCA has well-known brands, outstanding
products, a specialized sales channel for incontinence care, an innovative spirit, advanced
technologies and strong research and development capabilities. Vinda still has much to learn
as we diversify and expand our personal care
business.
“Sales revenue
generated
through e-commerce channels
has surged.”
LI CHAO
C
WANG
Age: 557
Family: Wife, daughter and
Famil
two sons
s
Education: Graduated from
Educa
the bu
business administration
program of Guangdong
progr
Radio and Television
University
Unive
Hobbies: Golf, basketball
Hobb
SCA SHAPE 4 2015 9
Many of Vinda’s middle managers are in their 30s, “they make the Vinda brand younger”, Mr.Li says.
VINDA’S
NET INCOME
HAS INCREASED
6.5
TIMES SINCE 2007
NET INCOME 2007:
HK$ 78 million
NET INCOME 2014:
HK$ 593 million
How does the cooperation between SCA and
Vinda benefit from the combined experience
and knowledge of both companies?
Vinda and SCA share the same vision on brand
management, product quality, attention to employees and sustainable development. China is an integral part of SCA’s expansion in emerging markets.
Vinda can use its well-established and extensive
sales channels in China to join hands with SCA to
promote its international brands to the country’s 1.3
billion people.
What are the most important synergies?
Vinda is one of the leading tissue companies in
China, and SCA is a leading global hygiene and
forest products company. Vinda will leverage its
competitive advantage in sales and distribution
by combining its own strong sales force, wide network and varied portfolio of quality products.
The tissue industry has seen rapid growth in
the Chinese market. Will the current financial
uncertainty change this?
China’s tissue market is highly competitive, but
it also presents opportunities. Vinda has adapted to
market changes and attracted a new generation of
customers, so it has enlarged its market share even
as China’s economy faced downward pressure.
The younger generation in China is keen on
online shopping, and Vinda set up an excellent
e-commerce marketing team. Sales revenue
generated through e-commerce channels has
surged, and Vinda has gained the highest market share.
10 QUESTIONS
“China is a
good place for
e-commerce.”
Christoph Michalski was recently
named CEO of Vinda International
Holdings Limited. Shape asked him
about his new job.
Mr Li visited Sweden during the Volvo Ocean
Race. Here he met with the Vinda CEO Christoph
Michalski.
“The younger
generation
in China
is keen
on online
shopping.”
How do you feel about welcoming a new generation to the company you created?
Many of our middle management are in their
30s with a lot of innovative ideas. I enjoy working
with the talented and energetic new generation
to make the Vinda brand younger and achieve
sustainable growth.
Given your long experience and success,
what is the most important thing you can
teach young people?
I often compare the development of an
enterprise to running a marathon – only the most
persistent succeed. Further, we should set clear
and workable strategic goals. The goal is not
limited to the present, but should look ahead
10 or 20 years.
You were previously President of SCA’s
Global Hygiene Category. What are you
most looking forward to in your new role
as CEO of Vinda?
The priorities going forward will be to continue to win in Tissue, build Personal Care in
China and Vinda in Asia.
What is the potential for SCA’s products and brands to do well on the Chinese
market?
Chinese consumers welcome international
hygiene brands. Urban Chinese consumers
are trading up for better-quality tissue such
as Tempo, and a relaxation of the one-child
policy is creating room for a good baby
brand like Libero. China’s aging population
will lead to increased demand for incontinence products like TENA and Dr. P. In addition, Vinda has an excellent team and a solid
sales channel, with nearly 1,300 distributors
and 300,000 points of sale.
Vinda has invested in e-commerce
with good results. How will this strategy
develop?
China is a good place for e-commerce.
The country is huge, with many tiers of cities,
counties and villages. Retailers can’t set up
physical stores everywhere, so an e-platform
can extend the reach. An e-platform is flatter and more direct for goods providers, so
goods with good brand houses can do well
online.
What’s more, Vinda has a first-mover
advantage. The company saw the online
trend much earlier than its peers. It set up a
dedicated e-commerce team two years ago
when competitors were focusing on offline
expansion. Vinda has a good brand reputation. Consumers click and buy Vinda products because Vinda is well regarded offline.
SCA SHAPE 4 2015 11
12 SCA SHAPE 4 2015
VIGNETTE
FOCUS: 17 UN
G ALS
LET’S FIX
THE WORLD
With 17 new goals, the United Nations is targeting
governments as well as civil societies and businesses
in an effort to alleviate poverty and promote sustainable
development. This will give business an increased
responsibility to make a difference.
text SUSANNA LINDGREN illustration DAVIDE BONAZZI
SCA SHAPE 4 2015 13
“For this to achieve
scale, companies need
to realize that there is
business to be
done.”Mark Didden
GOALS IN SHORT: Go to page 20 for more details
1. No poverty
2. Zero hunger
3. Good health and
well-being
4. Quality education
5. Gender equality
6. Clean water and
sanitation
7. Affordable and clean
energy
14 SCA SHAPE 4 2015
8. Decent work and economic growth
9. Industry, innovation and
infrastructure
10. Reduced inequalities
11. Sustainable cities and
communities
12. Responsible consumption and production
13. Climate action
14. Life below water
15. Life on land
16. Peace and justice,
strong institutions
17. Partnership for the
goals
HE UNIVERSAL TARGETS set by the
new Global Goals for Sustainable
Development are expected to
frame agendas and political policies
for the 193 UN member states over
the next 15 years. Even if countries adopt the goals,
their success will require action from other sectors as well. The overall document “International
Sustainability Agenda 2030,” which includes
the Global Goals, clearly calls on businesses to
apply their creativity and innovation to solve the
challenges of sustainable development (Article
67). Mark Didden, manager, Redefining Value,
at the World Business Council for Sustainable
Development, is convinced that working together
to reach the goals is a win-win for all actors. But it
takes more than a glossy corporate social responsibility (CSR) report to succeed.
“CSR activities are important,” he says. “But to
truly achieve changes, sustainable development
has to be incorporated into the core business, and
companies need to understand where they can
make the biggest impact. That could be by working with suppliers or in their operations, but many
companies have by far the greatest impact by innovating new, sustainable solutions.”
As examples, he points to LED lighting and
other energy-efficient innovations, or affordable
cookstoves that can replace open fires in developing countries.
“The key point is that for this to achieve scale,
companies need to realize that there is business
to be done,” Didden says. “I think the whole point
of sustainability is that it should not only benefit
the environment and society but should also give a
financial return. Otherwise, it will always be that
kind of side activity that companies do for reputational purposes.”
T
THE GLOBAL GOALS follow and expand on the
Millennium Development Goals (MDGs) that over
the past 15 years achieved significant changes by
creating awareness and reducing poverty. The
MDGs provided an important framework around
which governments could develop policies and
design aid programs, but they were often criticized
FOCUS: 17 UN G ALS
for being too narrow. The new goals reach further
and include financial as well as social and environmental targets, not only for developing countries
but for nations in all parts of the world.
“The big new delivery through the Global
Goals is integration,” says Anna Lidbom, who was
part of the Swedish delegation negotiating the
International Sustainability Agenda 2030. “We are
leaving the triangular approach where environmental, social and economic sustainability were
dealt with separately.
“A development in one area must not come at the
expense of another,” she says. “Look at the millennium goal to halve poverty globally. Financial
development in China largely contributed to
reaching the goal, but at the expense of environmental and social development.”
During the three years of negotiating the Global
Goals, which were formally approved by world
leaders in September 2015, NGOs, development
organizations and businesses worldwide have
been invited to the same tables as the government
representatives, which puts pressure on all stakeholders to act.
“This is a great opportunity for businesses to
take a position in the front seat,” Lidbom says.
“What’s happening now is that all government
representatives are planning their strategies and
formulating new proposals and legislation to
target a selection of these goals. Sooner or later all
businesses will have to relate to this. Rather than
wait for this to happen, companies should take the
lead.”
Lidbom foresees how increasing global urbanization creates great opportunities for businesses
working with everything connected to housing,
transportation, water and sanitation to lead the
way and create new, sustainable solutions that
limit environmental impact and preserve ecosystems while building more equal societies. No
company can build a meaningful strategy around
all the 17 Global Goals and their 169 sub-targets,
though.
“Not all of these goals are equally relevant for
each business or industry,” Didden says. “It’s
up to every company to identify what’s relevant
depending on sector, geography and strategic
priorities to see where in your value chain you have
the biggest impact on the Global Goals – positive or
negative. When these hot spots are identified, the
focus should be on reducing the negative impact
and scaling up the positive. There’s no point starting with your operations if your biggest impact lies
elsewhere in your value chain.”
A GOOD PLACE for every company to start is the
SDG Compass (http://sdgcompass.org/), which
provides guidance for companies on how they can
align their strategies as well as measure and manage their contribution to the Global Goals. The first
step is to understand the Global Goals, followed by
assessing the company’s impact.
“The third step is to set meaningful goals, long
and short term,” Didden says. “Don’t just benchmark the company against peers. See what the
Global Goals can inspire your company to achieve.
Then integrate them in your core business and
governance.”
Didden recommends that all reporting be transparent and in line with the Global Goals, as that
makes it easier for all stakeholders to understand.
“At the end of the day, corporate sustainability is no different today than a few months ago,
but the Global Goals provide a global framework
and a common language that all actors can stand
behind,” he says. “Provided that you can deliver
the right products and solutions, the goals offer
a number of business opportunities. The Global
Goals will shape policy direction and stakeholder
expectation, so companies can ignore them at
their peril.”
3 STEPS FOR
COMPANIES TO
GET STARTED
1. Visit http://sdgcompass.org/.Understand
the Global Goals.
2. Assess the company’s impact.
3. Set meaningful goals,
long and short term.
“This is a great opportunity
for businesses to take
a position in the front
seat.”Anna Lidbom
SCA SHAPE 4 2015 15
FOCUS: 17 UN G ALS
An opportunity to
make a difference
The new UN Goals for Sustainable Development are
designed for all actors in society to find areas where they
can make a difference. And SCA knows how to contribute.
text SUSANNA LINDGREN photos ALECSANDRA RALUCA DRAGOI, SCA, GETTY IMAGES
T
SCA in a hand washing
program in Russia.
16 SCA SHAPE 4 2015
he new Global Goals for Sustainable
Development are deliberately designed
for businesses and civil society to bear
responsibility as well as governments.
Even if none of the 17 goals are legally
binding, they will no doubt drive sustainable
activities by governments, development organizations and NGOs, as well as by business.
“To reach the goals, all stakeholders need to
cross old borders and fi nd new ways to work together,” says Kersti Strandqvist, head of sustainability at SCA. “We all have an opportunity to
make a difference. As individuals we can make
active consumer choices. As a company we are
corporate citizens and must also deserve our
place in society.”
What will make companies successful over
time, in her opinion, is all about identifying
and understanding societal problems.
“The Global Goals give a framework for companies to think in new ways, sometimes with new
partners, and to create new business opportunities while large social problems are addressed,”
Strandqvist says.
Many of the challenges that the new goals seek
to address have a particular relevance to SCA,
particularly in the areas of health, well-being and
sanitation as well as responsible consumption and
production.
“Health, sanitation and access to water are
the basis for solving many challenges,” she says.
“More girls could get an education, and it would
be easier for women to get a decent income. In the
Indian textile industry, women have to refrain
from work during their periods due to a lack of
sanitary facilities, just to give one example.”
SCA and the UN body WSSCC
educated girls, including these
two South African girls, about
menstrual hygiene management
during the Volvo Ocean Race
where SCA participated with an
all-female Team SCA.
SCA SHAPE 4 2015 17
Better you hear it from us
Tork EasyCubeTM Intelligent Restroom System
Keep a step ahead with Tork EasyCubeTM Intelligent Restroom System. Digital sensors at your
restroom’s entrance and in the towel, tissue and soap dispensers take the guesswork out of restroom
maintenance. By transmitting real-time data to an easy-to-use web app, you will know exactly when
refills are needed and exactly how many visitors have entered. Smart technologies help keep restrooms
clean and always ready for use – a difference that people notice!
Learn more about Tork EasyCube at easycube.sca-tork.com
or email us at [email protected]
www.torkusa.com
© 2015 SCA North America LLC. All rights reserved. ®Tork is a registered trademark of SCA North America LLC, or its affiliates.
GETTY IMAGES
NEW PIC
“Our extensive training
programs that focus on
hand washing, feminine
hygiene and incontinence
are an example of how
SCA works to spread
knowledge about
hygiene, which has a
strong link to health and
wellness.” Kersti Strandqvist
Well-functioneing products for incontinence is one
way to promote well-being.
Strandqvist finds some of the 17 goals particularly relevant for SCA, such as the third goal,
which aims to ensure healthy lives and promote
well-being.
“We try to ensure the availability of well-functioning hygiene products for all people, regardless
of wallet or education,” she says. “Our extensive
training programs that focus on hand washing,
feminine hygiene and incontinence are an example of how SCA works to spread knowledge about
hygiene, which has a strong link to health and
wellness.”
SCA’s educational programs for women, young
girls and the elderly are closely connected to the
fifth goal, as education contributes to increased
equality and strengthens the often weak position
these groups have in society. The fact that more
than 400 million people use SCA products every
day also makes the 12th goal about sustainable
consumption and production highly relevant for
the company.
“Among other things, we use life-cycle assessments to make our products efficient and
sustainable,” Strandqvist says. “By reducing our
environmental impact we help consumers to make
sustainable choices in everyday life. Our solutions
in areas like incontinence are cost-effective and
give caregivers more time to care for the elderly.”
SCA SHAPE 4 2015 19
How SCA
contributes
1. END POVERTY in
all its forms everywhere.
Comments by Kersti Strandqvist
2. END HUNGER,
achieve food security
and improved nutrition
and promote sustainable
agriculture.
3.SCA: “We work with products adjusted for the entire life cycle, from diapers
to incontinence care. Our goal is to make
our knowledge about hygiene available to customers and consumers and
ensure access to affordable, sustainable
hygiene solutions to help them lead a
healthy and dignified life.”
5.SCA: “We strive to provide information on hygiene matters around our
products and services. We know that
our education programs for girls, women
and caregivers strengthen the position
of many vulnerable groups in society
and contribute to increased equality. Access to good hygiene products
makes it possible for girls to go to school
and gives carers more time to care for
those who need assistance.”
3. ENSURE
HEALTHY LIVES
and promote well-being
for all at all ages.
4. ENSURE
INCLUSIVE
AND EQUITABLE
QUALITY
EDUCATION and
promote lifelong learning
opportunities for all.
The
goa
5. ACHIEVE GENDER EQUALITY and
empower all women and
girls.
SCA educating girls in menstrual hygiene.
6. ENSURE AVAILABILITY AND
SUSTAINABLE
management of water
and sanitation for all.
6.SCA: “All our hygiene products are
linked to water and sanitation. As
4.5 billion people in the world still don’t
have access to a toilet, it’s essential to
increase the awareness of the important connection between clean water,
sanitation and a healthy life. SCA has a
deep knowledge of sanitation matters
that we share through our comprehensive training programs on hand washing,
feminine hygiene and incontinence –
something that’s just as important in all
parts of the world.”
(www.sca.com/en/Sustainability/People/Hygiene)
20 SCA SHAPE 4 2015
7. ENSURE
ACCESS TO
AFFORDABLE,
reliable, sustainable and
modern energy for all.
8. PROMOTE
SUSTAINED,
inclusive and sustainable
economic growth, full and
productive employment
and decent work for all.
9. BUILD RESILIENT INFRASTRUCTURE,
promote inclusive and
sustainable industrialization and foster
innovation.
FOCUS: 17 UN G ALS
17. STRENGTHEN
THE MEANS OF
IMPLEMENTATION and revitalize
the global partnership for sustainable
development.
16. PROMOTE
PEACEFUL AND
inclusive societies for
sustainable development, provide access to
justice for all, and build
effective, accountable
and inclusive institutions at all levels.
15. PROTECT,
RESTORE AND
PROMOTE sustainable use of terrestrial
ecosystems, sustainably manage forests,
combat desertification,
halt and reverse land
degradation, and halt
biodiversity loss.
he 17
oals
14. CONSERVE
AND SUSTAINABLY USE THE
OCEANS, seas
and marine resources
for sustainable
development.
13. TAKE URGENT
ACTION to combat
climate change and its
impacts.
12. ENSURE
SUSTAINABLE
CONSUMPTION
and production
patterns.
11. MAKE CITIES
AND HUMAN
SETTLEMENTS
inclusive, safe, resilient
and sustainable.
10. REDUCE
INEQUALITY
within and among
countries.
15.SCA: “The forest is an important
resource that we care for diligently.
Through responsible forest management, SCA utilizes its environmental
values and produces valuable, renewable raw material. As one of the world’s
largest purchasers of pulp fiber, SCA
has a responsibility that also extends to
reviewing the purchasing of fresh fiber.
“All our forests are certified in accordance with the Forest Stewardship
Council® (FSC) standard and the
Programme for the Endorsement of
Forest CertificationTM (PEFC).”
(www.sca.com/en/Sustainability/Nature/sustainability-target-fibre-sourcing-and-biodiversity/)
14.SCA: “No water, no life. It is the
same for everybody – people, industries,
agriculture and the ecosystem. SCA’s
production uses water primarily to transport fiber and for cooling. The aim is to
use less water in water-stressed regions,
but also to purify the water we use as
effectively as possible.”
(www.sca.com/en/Sustainability/Nature/
sustainability-target-water/)
13.SCA: “SCA takes a 360-degree
approach to its environmental impact.
We have targets in place for reducing
carbon dioxide emissions, tripling the
production of forest-based biofuels and
increasing the availability of wind power.
SCA’s forests absorb a net 2.6 million
metric tons of carbon dioxide every year.
This exceeds the total amount of fossil
carbon dioxide emissions generated by
SCA’s entire production.”
(www.sca.com/en Sustainability/Nature/
Sustainability-target-climate-and-energy/)
12.SCA: “Four hundred million people
use SCA products every day, which
makes sustainable consumption a very
relevant goal for us. We use, among
other things, life-cycle assessments
to make our products as efficient and
sustainable as possible. We thereby help
consumers make sustainable choices
and minimize our environmental impact
at the same time.”
(FSC® C004466)
22 SCA SHAPE 4 2015
Lodgepole pine is more sensitive to weather and wind
due to its greater number of
needles. Thinned lodgepole
pine is more sensitive to
storms than thinned Swedish
pine.
Lodgepole pine grows rapidly
because the new needles are
exposed early on, the needle
surface is large and catches
a lot of light, root development is fast, and the species
utilizes the nitrogen in the
soil effectively.
Lodgepole pine (Pinus contorta) is a common conifer in
western North America and is one of 111 pine species in
the world. The forestry industry has introduced lodgepole
pine in Sweden, Norway and parts of Finland, and it has
become Sweden’s third conifer species after spruce and
pine in less than 50 years.
in the forest
FAST
GROWERS
The 3–7 cm cones are hard and
often need exposure to high
temperatures in order to open and
release their seeds. The cones
have prickles on the scales.
SCA SHAPE 4 2015 23
J O N NA F R A N S S O N, AG E N T M O L LY
Lodgepole pine has more,
longer and greener needles
than Swedish pine. The needles have a citrus smell.
The bark is gray and more
similar to the bark of spruce
than pine.
it is less suitable for high-strength lumber.
The impact of lodgepole pine plantations
on biodiversity has not been fully clarified, according to the Swedish University of
Agricultural Sciences, and efforts have been
made to keep the species away from nature
reserves in Sweden. The crown of the tree
can become so thick that the ground cover
changes, and the forests contain fewer lichens,
vascular plants and insects than ordinary,
managed pine stands.
Why is SCA going in for
lodgepole pine?
Lodgepole pine grows
around 40 percent faster
than Swedish pine on the
same land. This means that a
lodgepole pine grows as tall
in 70 years as a Swedish pine
in 100 years. SCA’s forests are
located in the far north – at
the same latitude in Canada
and Siberia there is just
tundra – and the trees grow
slowly. With faster-growing
trees, it’s possible to increase
the production of lumber as a
raw material for our industries. Growing trees also bind
carbon dioxide, helping to
offset climate change. It’s also
good to increase the amount
of renewable biofuel production, which replaces finite
fossil-based fuel production.
How long has SCA been
planting lodgepole pine?
SCA conducted comprehensive trials of various tree
species, including lodgepole
pine, in the 1960s. Lodgepole
pine was the most promising option, and SCA began
planting the species in the
early 1970s as a complement
to the Swedish tree species of
spruce and pine.
Do the stands have any
negative impact on the
environment?
A comprehensive environmental impact statement was
made in the late 1990s. In
most respects, lodgepole pine
and Swedish pine function in
nature in the same way. Since
lodgepole pine grows faster,
it takes less time for a forest
to grow on a clearing. The
forests are denser and darker,
which not all plants appreciate. To make sure there is
no negative impact on the
forest’s plants and animals
in the future, SCA’s policies
state that lodgepole pine must
never dominate a landscape –
that is, it should not make up
more than 20 percent of forest
across a large area. According
to the law, neither must the
species be planted close to a
nature reserve or a national
park.
Half of Sweden’s lodgepole pine forests are located on SCA’s
land. Here SCA’s Björn Lyngfelt, vice president communications, answers the most common questions SCA is asked
about the species.
Björn Lyngfelt
3 QUESTIONS TO…
hectares in Sweden, or around 2.5 percent of
Swedish forestland.
In many respects, lodgepole pine has the
same characteristics as Swedish pine and can
be used for largely the same things. It can be
converted into pulp, which can in turn be used
for tissue, packaging papers and publication
papers. It can be sawn, planed, painted and impregnated. But lodgepole pine grows considerably faster and thus produces softer lumber, so
TODAY LODGEPOLE PINE grows on 600,000
TECHNOLOGY
It’s one of the largest-ever industrial investments in
Sweden. When Östrand doubles its production of
kraft pulp, the SCA mill will be world-class in product
quality, competitiveness and environmental profile.
text LISA RHODINER SCA photo PER-ANDERS SJÖQUIST
A world-class
MILL
S
SCA’s Ingela Ekebro is
managing the investment
project.
24 SCA SHAPE 4 2015
CA ANNOUNCED on August 28 that it
would invest 800 million euros (7.8 billion Swedish kronor) in its Östrand pulp
mill near Sundsvall. This investment
is SCA’s largest to date and one of the
largest-ever industrial investments in Sweden.
The new plant is to be commissioned in the second
quarter of 2018.
Demand for bleached softwood kraft pulp is high,
the result of growing demand for tissue. The investment will make Östrand the world’s most efficient
softwood kraft pulp mill, and the mill is expected to
be an even more interesting partner and supplier to
SCA and other leading pulp customers.
“The investment in Östrand will increase sales
and competitiveness in the long term, as well as
providing a world-class cost position and higher
margin,” SCA President and CEO Magnus Groth
said.
A new soda recovery boiler was installed at
Östrand in 2006, and plans were launched to double the production of kraft pulp over time.
“BOTH THE soda recovery boiler and the lime
kiln are already built to cope with a production
increase,” says mill manager Ingela Ekebro, who
is leading the project. “We’re also planning for a
higher pulp quality than today.”
TECHNOLOGY
FACTS ABOUT
ÖSTRAND
Ingela Ekebro, responsible
for the investment project,
here with project manager
Håkan Wänglund.
The Östrand pulp mill
in Timrå, will be the
world’s largest softwood kraft pulp mill.
Annual production of
kraft pulp is to double
from around 430,000
metric tons now to
around 900,000 metric tons. Around half
of this is currently used in SCA’s own
production of tissue and publication
papers, while the rest
is sold to external
customers.
Today the plant also
produces 95,000
tons of chemical
thermo-mechanical pulp for hygiene,
packaging and other products. Special pulp grades with
properties adapted
specifically for publication papers and
tissue products have
been developed at
the Östrand plant.
SCA Östrand has
215 employees.
SCA SHAPE 4 2015 25
8
7
6
2
Östrands ma
ssafabrik
Many pieces
in a gigantic
project
1
Håkan Wänglund
DOUBLING TODAY’S production requires a
new wood room (where the wood is debarked
and chipped), a new evaporator, a new dryer,
two new baling lines, an extended water treatment plant, a large new bleach plant and a
large new fiber line.The fiber line will be the
largest in the world for softwood kraft pulp.
The investment comprises eight different
subprojects.
“Each subproject is incredibly comprehensive and will entail huge logistical challenges,”
says project manager Håkan Wänglund.
“There will be many people involved, a large
number of shipments to be delivered, and
construction in confined spaces. Careful
planning is essential so that everything flows.”
The first subproject involves building a new
woodyard. Work began in September, and
the wood yard and wood room are due for
completion in the third quarter of 2016. The
area must first be filled with 30,000 metric
tons of stone to consolidate the ground. In six
months’ time, large quantities of the stone will
be removed, and the area will then be ready to
be completed as a wood yard.
26 SCA SHAPE 4 2015
Welcome to
Östrand 2.0
THE EIGHT LARGEST
INVESTMENTS:
1.NEW CAUSTICIZATION PLANT
A brand new causticization
plant is to be built, where
sodium carbonate is converted
to sodium hydroxide (sodium
hydroxide is also called caustic soda). The existing lime kiln
and white liquor filter are to be
reused in the new plant.
2.NEW DRYER
A brand new dryer is to be
installed next to the existing
one. Two new packing lines will
be installed adjacent to the new
machine, which will be wider
and able to be operated slightly
faster than the current one.
TECHNOLOGY
5
3
4
1
3.WATER PURIFICATION
The existing water purification plant will be supplemented by two new basins
to handle the increased
volume of liquid resulting
from Östrand’s increased
pulp production.
will be used in the evaporation process, which means
that more steam will be
available for use in the
turbine. When the new
evaporator is commissioned the existing one will
be decommissioned.
4.NEW EVAPORATOR
The new evaporation line
will have a much higher
capacity and provide a
higher final dry content to
the lye, as well as being
more energy-efficient
than the existing line. As a
result, relatively less steam
5.NEW OPERATIONS
CENTER
The new operations center
will be common to the wood
yard, the fiber line, energy
and recycling, and water
purification. It will also
accommodate operation and
maintenance management.
6.PERIPHERAL SYSTEMS
This is a huge project
physically linking up all the
other sub-projects. The
project comprises surface
drainage, pipe bridges,
raw water treatment, feed
water treatment, piping
systems between departments, district heating, gas
management and cooling
systems. An estimated 38
kilometers of piping will be
installed, with the largest
pipes having a diameter of
3.3 m.
7.NEW FIBER LINE
The digester house in the
new fiber line will have
largely the same technology as today – that is,
continuous digesting – but
with considerably larger
capacity, considerably
increased energy efficiency and improved wood
economy. The new bleach
plant will be suitable for
both elemental chlorinefree bleaching and totally
chlorine-free bleaching to
ensure high pulp quality,
good environmental performance and cost-efficient
production. The new fiber
line also has a new chlorine
dioxide plant.
8.NEW WOOD YARD
The wood yard will have
two drum debarking lines
for long wood. The bark
from the wood yard will be
transported to the power
boiler on belt conveyors
instead of in blow pipes as
today.
SCA SHAPE 4 2015 27
OUTLOOK
For many people, the modern all-in-one diaper is the
obvious choice for babies and small children. But we
probably seldom think about the dramatic development
of this everyday hygiene product.
photo H. ARMSTRONG ROBERTS GETTY IMAGES
From peat
to high tech
WE MAY TAKE the modern diaper for granted and
even joke that diapers are so comfortable nowadays that it’s difficult to potty-train children. Yet
the development of children’s diapers did not
really take off until the 1950s. Before that, the solution for keeping children dry was to use whatever
was available – from peat to swaddling to nothing
at all.
For the diapers common in Europe and the
United States, the Second World War was a key
watershed in their development. Sweden was a
28 SCA SHAPE 4 2015
country that promoted new materials for diapers.
Cotton was in short supply during the war, as it was
needed for medical care, and the alternative was to
look to other materials.
For a country rich in forests, fiber in the form
of cellulose wadding was a good substitute. But
the United States, with its own cotton plantations, continued to use cloth diapers into the
1960s.
The next really big breakthrough on the way to
the modern diaper came in 1957, when the Swedish
company Mölnlycke, later acquired by SCA,
launched the world’s fi rst disposable diaper. This
product was actually a spin-off from contemporary
sanitary pads and rapidly became a major success
across large areas of Europe.
WHEN THE ALL-IN-ONE diaper was launched
in the late 1960s, it found a market in both the
United States and Europe. At that time diapers
were fastened using safety pins, so the next major
breakthrough was when P&G launched adhesive
GETTY IMAGES
In the 1950s the diaper received a
boost in Europe and the US from new
materials and new technology. Today
even swimpants exist, like these
from Libero.
tape fastenings. Today most diapers use Velcro
fastenings.
Today’s diapers are often incredibly effective
as regards both absorption and dryness. Now
the product developers’ challenge is to find other
functions that can differentiate diaper brands.
Examples include improved fastening, thinner
products and diapers containing lotion. In the
future we may see diapers made of starch-based
plastic or alternative raw materials that are even
“greener.”
SCA SHAPE 4 2015 29
SJÖBERG BILD
The development of the modern diaper has
been a contributing factor in enabling women
to leave the home for gainful employment.
When Mölnlycke, later SCA, launched the first disposable diaper in 1957, it rapidly became a success across
large areas of Europe. These early disposable diapers
were a larger version of contemporary sanitary pads.
The T-diaper launched in 1975 was a breakthrough – the fit meant that the diaper stayed in
place when the baby moved.
THE
LIBERATOR
30 SCA SHAPE 4 2015
WHEN MÖLNLYCKE developed the
first disposable diaper during the
Second World War, it was made
of cellular wadding, a forerunner of today’s fluff pulp. At first,
square sheets of tissue measuring around 40 centimeters
on a side were sold. When
changing the diaper, a number
of sheets were taken, folded
into a rectangle and inserted
into a net. When the diapers
began to be manufactured
under license in other European
countries, their Swedish origin
was evident in the name. In
Italy they were called pannolini
svedese (Swedish diapers), and
in Germany Schwedenwindeln
(Sweden diapers).
Mölnlycke’s disposable diaper was
developed during the
Second World War.
The 1960s saw the
launch of different
diapers for boys and
girls.
AS EARLY AS the 1960s,
Mölnlycke had a diaper
that was said to be suitable for the anatomy
of both girls and boys.
The broad side of the
diaper was placed
backward for girls
and forward for boys.
In 1962 Mölnlycke
launched a rectangular
diaper under the Lenina
brand. For the first time,
different diaper sizes
were now available for
babies and infants of
different ages, and for
day and night use.
THE T-DIAPER, WITH a
brand new shape, was
launched in 1975 and
fixed using textile pants.
The diaper differed substantially from previous
types of diapers and
was so groundbreaking that it is now part
of the permanent collection at the National
Museum of Science
and Technology in
Stockholm. Lenina
Libero with a tape
fastening was launched
two years later, and
1988 saw the launch
of the compressed
“Krabat” diaper.
OUTLOOK
IN 1975 SCA ACQUIRED
Mölnlycke, which
formed the basis of
the group’s hygiene
division. Around this
time both Mölnlycke
and Procter & Gamble
launched all-in-one
diapers. At first these
were relatively simple
products, but they
fairly soon acquired
new functions. The
first stage was elastic
around the legs.
UNTIL THE MID-1980s
all disposable diapers
were still made of 100
percent defibered
pulp, but materials
development has
progressed rapidly
since the mid-1980s.
Superabsorbents,
polymers that replace
some of the fluff pulp
and can absorb up
to 40 times their own
weight, arrived around
the same time.
IN 1993 SCA was the
first in Europe to launch
a pant diaper, Libero
Up & Go. Shaped like
a pair of briefs in a soft
textile-like material, it is
intended for use once
the child has learned to
walk and is active and
mobile. This product is
based on a cooperation agreement with the
Japanese company
Unicharm.
GETTY IMAGES
JOHNÉR
In the late 1980s superabsorbent polymers began to replace some of the fluff pulp in diapers. The new
material can absorb up to 40 times its own weight, making diapers increasingly effective.
Different countries and cultures choose different
solutions for keeping babies clean and dry.
DIAPER DEVELOPMENT
is ongoing. Barrier
systems to prevent
leakage, elastic
pockets and double
outer layers are just
some examples of
new functions. Libero
is launching limited
editions with decorative motifs.
SCA’S LIBERO TOUCH is
the latest diaper on the
market and was developed to be really soft and
kind to the skin. A blind
test shows that eight out
of 10 parents think it is
softer than its leading
competitor.
SCA SHAPE 4 2015 31
THE FIVE W’S
WHO: Mawbima newspaper,
founded in 2011. (“Mawbima”
means “motherland” in
Sinhalese.)
WHAT: The newspaper
infused its ink with citronella
oil to repel mosquitos that
can carry dengue fever.
WHERE: Colombo, Sri Lanka
WHEN: World Health Day,
April 7, 2014
WHY: To increase awareness
of dengue fever prevention,
as well the effectiveness of
natural mosquito repellents
like citronella.
Print ads depicted mosquitoes
behind a letter of the Sinhalese
alphabet.
32 SCA SHAPE 4 2015
MARKET
Newspaper ink
fights dengue
What if ink could save lives?
A newspaper in Sri Lanka moved to
raise awareness of a life-threatening
disease in South Asia.
text NANCY PICK photo LEO BURNET, STARCOM SRI LANKA
IN 201
2
2013,
3 DENGUE FEVER reached epidemic
prop
pr
opor
proportions
in Sri Lanka, with more than 32,000
case
ca
s s confi
c
cases
rmed. The mosquito-borne virus can be
deadly especially for young children.
de
deadly,
Th
he sstaff at Mawbima newspaper in Colombo
The
to no
took
notice. “There were a lot of deaths reported,”
says Saranga
Sa
says
Wijeyarathne, who was the newspa
paper’s
marketing director at the time, and who
ha lost
los friends to dengue. “We wanted to do
had
some
so
m th
something
for World Health Day – an awareness
campa
ca
campaign.”
The sstaff brainstormed and came up with the
ide
id
ea of printing a newspaper with mosquito-repelidea
lle
e ink.
ent
ink
lent
The ttechnicalities took time to figure out.
“W identifi
id
“We
ed 10 natural mosquito repellents,”
W jeya
Wi
Wijeyarathne
said. “We printed multiple sample and
an decided that citronella oil was the most
ples
effectiv
eff
ective.”
Team
Teaming
up with advertising agency Leo
Burnett Sri Lanka, Mawbima launched a public
awareness campaign that would culminate on
World Health Day, April 7, 2014.
The citronella issue was sold out by 10 am.
Even with an increased print run, the morning paper sold out by 10 am. Microsoft founder
Bill Gates tweeted to his followers, “I like the
ingenuity…mosquito-repellent newspaper helps
fight dengue in Sri Lanka.” Worldwide attention
followed, as media outlets from the BBC to CNN
picked up the story.
SCA SHAPE 4 2015 33
VIGNETTE
GETTY IMAGES
Even bus shelters were covered in citronella.
Citronella essence, a sweet-smelling and naturallyoccurring chemical, is found in the lemongrass.
“I like the ingenuity…mosquito-repellent
newspaper helps fight dengue in Sri Lanka.”
Bill Gates tweet
Before the launch, Mawbima had built up interest in Colombo with citronella-scented posters at
bus stops. The staff also devoted a month to technical testing. “We had to mix an adequate percentage of citronella oil with the ink so that it had a
strong enough smell,” Wijeyarathne said. “And we
had to find a balance, so that the newspaper press
would not be harmed.” The press emerged from
the process unscathed, although the powerful
scent of citronella lingered for weeks.
AMONG THE CAMPAIGN’S GOALS was “to create
DENGUE FEVER
Dengue is spread
by mosquito bites
and causes flu-like
symptoms. There is
no preventive vaccine for dengue, and
early treatment is key
for lowering the risk of
complications or death.
If the illness gets out of
control and becomes
“severe dengue,” it can
be lethal.
34 SCA SHAPE 4 2015
awareness of natural mosquito repellent options,” Wijeyarathne said. Too often, he says, Sri
Lankans believed that the only effective repellents were mosquito coils and other chemical
agents that can be harmful to children. Overall,
the aim of the citronella-scented newspaper was
to raise prevention awareness, rather than to
create a practical tool for repelling mosquitoes in
people’s homes.
Seeing the success of Mawbima’s citronella
initiative, newspapers followed suit in India,
Malaysia and even Japan. “If someone requested
technical assistance, we sent it,” Wijeyarathne
said. “This was an honor for us, and it was good for
society.”
MIXING INK
In addition to citronella, other scents have
been mixed with newspaper ink, usually for
advertising purposes.
• Baby-powder-scented ink was used by
The Times of India in 2014 in a baby care
advertisement.
• Coffee-scented ink was used in the Scottish
Press and Journal for an IT company ad.
• Lavender-scented
avender-scented ink was used by Mawbima
in 2015 for a soap company ad. By combining
scented
cented ink with 3-D printing, the newspaper
created
effect
eated a multisensory
multisens
n ory effe
ect
c it called 4-D.
PHOTO: JAKOB FRIDHOLM/JOHNÉR
Goodbye
to food waste
VIGNETTE
IN SHORT
SCANDINAVIA’S FIRST social food store,
Food Mission (Matmissionen), opened at
the end of 2015 in the Stockholm suburb of
Rågsved. The store will sell surplus food –
more than 200 tons in 2016 – that is dated
close to or just after the “best-before”
date, as well as other products such as
hygiene products.
Anyone can shop at Food Mission, but
the store offers memberships to economically vulnerable individuals and families,
with members allowed to pay one-third of
the regular store price.
During the first year, 20 unemployed
people will be given jobs in the store.
The project is a collaboration between
Stockholm City Mission, which owns and
operates the store, and Axfood, which is
providing food and funding. It is supported by some 10 organizations, including SCA, which will also donate goods to
be sold in the store.
SCA SHAPE 4 2015 35
%
95
of care homes show clear
care improvements1
Partnership
TENA Solutions: Individualised care
throughout your care home
At TENA, we believe that great care is built on partnerships. With TENA Solutions, we partner with
you to identify areas in your continence and personal hygiene care that could be improved, keeping
your residents, staff, budget and the environment in mind. And the results are proven: 81% of staff
agree residents’ overall well-being is improved – and 79% say they now have better care routines.2
Partner with TENA and strengthen the most important partnership of all: between your carers
and residents.
H
AC
CO
Claims based on SCA Data on file around the world mainly Europe but also USA, Canada and China. Results
vary across countries and care homes.
PL
AN
Talk to your local TENA representative, or visit INSERT LOCAL WEBSITE ADDRESS, to find out more.
1. Statistics are based on average percentages from 181 TENA Solutions case studies. 2011-2013.
2. Staff perception after implementation of TENA recommended TENA continence or personal hygiene care
routines, compared to their previous habits; All statistics are based on results from between 47-92 TENA
Solutions case studies involving 438-1018 respondents (depending on question). 2012-2014.
MONITOR
ECONOMY
VIGNETTE
Hi there, Magnus Groth!
How have your first 10 months
as president been?
“SCA is
in good
Shape”
“GOOD. THANK YOU! I’ve traveled widely, partly to
learn even more about our own operations and to meet
our employees, and partly to meet our customers and
investors. It’s only Latin America that I haven’t had
time to visit yet, but I’ll do so at the beginning of 2016.
I think that SCA is in good “Shape”. By
that I mean that we have a good earnings
trend and that there is a positive, friendly
SCA atmosphere in which employees
thrive. But we need to be even more
results-oriented, and this can certainly
be combined with our friendly corporate
climate. I believe that we sometimes lose
speed because we’re afraid of making
mistakes, we analyze and seek consensus
too much. We need to act more quickly,
and it’s OK to make mistakes sometimes
if you realize it quickly and take action
to rectify them. I’m also impressed by
our solid sustainability program, and I’m
pleased that SCA has again qualified for
inclusion in the Dow Jones Sustainability
Index, one of the world’s most prestigious
sustainability rankings. Sustainability
is an area we continuously need to work
with in order to stay relevant to our
stakeholders.
Magnus Groth, president and CEO,
SCA.
“IN AUGUST WE announced that as from
2017 SCA will be divided into a Hygiene
division and a Forest Products division,
enabling us to focus more on the respective operations. The forest assets will
be transferred to the Forest Products
division. The combination of forest
and forest products will be unique in
Scandinavia, creating major opportunities for synergies. “Our huge investment
in the Östrand pulp mill – one of the largest in Sweden’s history – is also exciting.
We’re doubling production capacity for
“Going forward,
we must take
the lead in the
digitization of
our industry in
all areas.”
pulp, while the investment will substantially improve cost-efficiency, making
Östrand a clear global leader from a cost
perspective.
“We’re also investing in the hygiene
area, which today accounts for over 85
percent of our sales. In October we made
a bid for the North American tissue manufacturer Wausau Paper. The acquisition
is an excellent strategic fit and strengthens our presence in North America.
Wausau Paper is strong in hygiene solutions for washrooms while our strength
is in napkin systems and our complementary solutions will benefit our customers
as we can offer a total solution.
“Going forward, we must take the
lead in the digitization of our industry
in all areas – from sales channels and
marketing to product development and
innovation.
And we must work constantly on
efficiencies and improvements. It
may sound boring and not the least
visionary, but I’m totally convinced that
it creates value for our customers and
shareholders.”
SCA SHAPE 4 2015 37
ECONOMY
VIGNETTE
One of the industries
in the DJSI that improved
the most this year
was transportation
and transportation
infrastructure.
RECOGNITION
FOR SCA
This year SCA qualified for
the Dow Jones Sustainability
World Index as well as the
Dow Jones Sustainability
Europe Index. The company
was also selected as industry leader in the household
products sector. The ratings
were especially high in the
areas of branding, innovation, environmental management, and environmental
and social reporting.
38 SCA SHAPE 4 2015
ECONOMY
VIGNETTE
Exclusively
sustainable
Qualifying for the Dow Jones Sustainability Indices
is considered proof of a transparent and thorough
performance in sustainability.
text SUSANNA LINDGREN photo GETTY IMAGES
T
he Dow Jones Sustainability
Indices (DJSI) are the longestrunning global sustainability
benchmarks worldwide. Since
their launch in 1999, they have
assessed the business practices of the
world’s largest companies annually.
“For the companies that qualify on the
DJSI list, this is an important sign of the
quality of the sustainability work performed and a symbol that builds trust for
stakeholders,” says Tommy Borglund, director of Corporate Social Responsibility
(CSR) at the Nordic consultancy agency
Hallvarsson & Halvarsson.
FOR 2015, THE 3,400 LARGEST com-
panies from both developed and emerging markets were invited to take part
in the annual Corporate Sustainability
Assessment, which is based on the
RobecoSAM’s analysis of fi nancially
material environmental, social and
governance factors. The survey assessed
some 2,500 companies and identified the
top-scoring companies in 24 different
industry groups.
When this year’s indices were presented in September, Guido Giese, head
of indices at RobecoSAM, said, “Over the
years the DJSI index family has not only
come to be the gold standard for corporate sustainability, but has also become a
competitive platform where companies
receive recognition for their sustainability practices.”
Tommy Borglund says the competitive
element makes a placement on the index
list a real achievement.
“It’s certainly a quality seal on your
CSR work, especially since only a few actors in each business segment qualify,” he
says. “This qualification gives investors
increased security, and some sustainability funds place their investments according to the DJSI.”
Sasja Beslik, head of sustainable
and responsible investment at Nordea
Investment, also recognizes the indices
as an indicator for investors.
But he adds, “The indices only value
the information provided by the companies themselves. In my opinion the DJSI
merely shows how good a company is at
communicating the CSR work. It indicates the good intention, but it’s my job as
an investor to investigate if what a company communicates actually coincides
with the work done.”
THE THREE industries in the DJSI that
improved the most this year relative to
last year were electronic equipment,
instruments and components; transportation and transportation infrastructure;
and homebuilding. The three industries
with the weakest performance were life
science tools and services, personal products, and oil and gas.
SCA SHAPE 4 2015 39
GETTYIMAGES
SCA INSIDE
News from SCA
HYGIENE PRODUCTS REACHED REFUGEES
TO ASSIST IN the ongoing refugee crisis
around the Mediterranean Sea, SCA has
donated hygiene products, such as feminine care products and baby diapers.
The products were sent to Greece and
the operation was organized in cooperation with UNHCR (United Nations High
Commissioner for Refugees).
Katinka Lindholm, National Director
at UNHCR Sweden, says: “We are very
pleased that SCA has once again supported our work. The company’s contribution helps to make life a little easier for
thousands of people who are on the run.”
Amelie Häger, Manager Corporate
p
Relations & Foundations
ions at UNHCR
UNH
Sweden, says: “SCA’s products have
arrived in Greece and the distribution to
refugees has started. They have really
filled a purpose there.”
Besides the hygiene products, SCA
also has made a financial donation to
Save the Children.
A number of local SCA initiatives
have taken place in support of refugees
around the Mediterranean Sea. For
example, in Germany SCA donated baby
diapers and tissue products to the Red
Cross in Vienna and Mannheim. In addition, the tissue site in Mannheim organized a donation of hygiene products to
a local relief initiative.
Another example is the Gothenburg
office in Sweden, which has supported several local aid organizations
with hygiene products, baby diapers
and clothes. Both in Germany and
Gothenburg several SCA employees are
dedicating private time to support local
charity organizations.
SCA has previously provided
humanitarian aid on several occasions,
such as the earthquake in Haiti, the
refugee crises in Somalia and South
Sudan, and the flooding in the Balkans.
SCA’s policy is to contribute as efficiently
as possible, mainly by supplying hygiene
products.
WOMEN PUSHING BOUNDARIES – THE BOOK
THE STORY of Team SCA, the all-female team that sailed in the Volvo Ocean Race 20142015, is documented in a book. Journey of Change: Women Pushing Boundaries, released in
October, follows the team through two years of hard training and nine months of sailing in
one
o of the world’s toughest races.
Award-winning photographer Rick Tomlinson and reporters Anna-Lena Elled and
Corinna
Halloran capture the demanding life onboard as well as the important work purCo
sued
sue by SCA and Team SCA onshore. Order your own copy on Amazon.
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SCA TO ACQUIRE
WAUSAU PAPER
POOLS TO
PROTECT FISH
THREE endangered
fish species will get
a chance to thrive in
new “baby pools,”
thanks to a contribution from SCA’s diaper
brand Libero and its
customers. The pools
are being built during
the renovation of the
saltwater aquarium
Havets Hus (The House
of the Sea) in Lysekil,
Sweden, during 2016
and 2017.
In the pools, the
small spotted cat
shark, thornback
ray and Atlantic wolf
fish can grow up in a
protected environment
until they become big
enough to be introduced into the ocean.
Japan is one of the countries facing challenges with longer life expectancies.
Old age Japanese challenge
AN AGING POPULATION and elderly care are issues high on the
government’s agenda in Japan. With longer life expectancies
and lower birth rates, Japan by 2050 will be challenged by a
significantly low ratio of only 1.2 people in employment to support each retiree.
At a TENA forum in Tokyo in September, a panel of healthcare experts and industry representatives, including SCA,
shared learning and experience around elderly care concepts
and best practices with nearly 100 Japanese nurses and opinion leaders.
The forum aimed to strengthen understanding on how total
care management and incontinence care education improve
the quality of life for elderly individuals and promote benefits for
society and the economy.
BABY DIAPERS FOR
A SUPERHERO
SCA WILL ACQUIRE Wausau
Paper for USD 513 million
(about SEK 4.2 billion).
Wausau Paper is one of
the largest Away-from-Home
tissue companies in North
America. With about 900
employees, the company
manufactures and markets
Away from Home towel and
tissue products along with
soap and dispensing systems.
Wausau Paper produces its
towels and tissue entirely from
recycled paper.
The completion of the transaction is subject to Wausau
Paper shareholder and regulatory approval.
Closing is expected to occur
in Q1 2016.
SCA SELLS HOLDING
IN BUSINESS JETS
TOGETHER WITH THE other
part-owners, SCA is divesting
its stake in Bromma Business
Jet AB. The buyer is Kvalitena,
a Swedish investment company focused on real estate.
The transaction will give rise to
costs of approximately SEK 95
million (USD 11 million) and will
be reported as an item affecting comparability in the third
quarter of 2015.
DRYPERS WEE WEE DRY has launched an all-new Superhero
limited edition range of diapers in Malaysia and Singapore,
giving kids the chance to be their own superhero. Watch the
Drypers Superhero video on Youtube (search for Drypers).
SCA SHAPE 4 2015 41
SCA INSIDE
CARING FOR
CHINA’S
ELDERLY
Men in black
IN CHINA, people over
the age of 60 make up
about 15 percent of
the population of 1.4
billion. That’s more than
200 million people, and
care for the elderly is an
ongoing priority for the
world’s most populous
country.
In the southern city
of Jiangmen, near
Guangzhou, SCA and
Vinda have signed
a memorandum of
understanding with the
local government to
jointly develop a pilot
program for elderly care
services. The program
includes a research and
development center for
relevant elderly care
products.
“SCA can support professional and
modern quality care for
China’s elderly, making
a contribution through
our global R&D capabilities, product innovations and experience
in incontinence care,”
says Annika Nordin,
acting president of
SCA’s Global Hygiene
category.
A NEW KIND OF protection for light urine leakages is the latest invention in the TENA Men family.
The Protective Shield is very thin, and the ultra-absorbent core
locks in leaks. Unlike any other TENA product it is black, making
it distinctly masculine and suitable for the darker underwear often
worn by men.
So far, the Protective Shield has been launched in Belgium, the
Netherlands and the UK. More markets will come later.
Check out the commercial with Stirling Gravitas where he shows
you how to stay cool and dry (search on Youtube for “Stirling
Gravitas”).
“Long life” written in
Chinese.
Dressed for wedding in tissue
TISSUE HAS MANY APPLICATIONS and wedding
dresses is apparently one of them. In August,
Vinda teamed up with renowned Chinese fashion designer Lan Yu to launch the world’s first
designer “tissue wedding dress” fashion show in
Shanghai. In addition to stunning wedding gown
pieces, the fashion show also showcased creations by students from the Donghua University
School of Fashion and Art Design. All wedding
42 SCA SHAPE 4 2015
dresses were constructed entirely from Vinda’s
premium Ultra Strong three-ply tissue. Lan Yu is
considered one of China’s most influential designers. The campaign attracted massive media coverage for Vinda as one of China’s leading tissue
brands and was widely talked about on Chinese
social media. SCA is the majority shareholder of
Vinda, which is listed on the Hong Kong Stock
Exchange.
ORTVIKEN CLOSES
PAPER MACHINE
Employees in Brazil
honor grandparents
A TENA CAMPAIGN in Brazil called
“Ride with Your Grandparents”
encourages people to post photos
of themselves spending time with
their grandparents and thereby improve
the quality of life for older people in Brazil.
As people post pictures on social media
with the hashtag #rolecomosavos (ride with
your grandparents), they challenge friends
and family on social networks to do the
same.
National celebrities and professional
soccer players have posted pictures of
themselves with their grandparents.
“We are primarily using Instagram and
Facebook,” says Rafael Leitão, marketing
coordinator, SCA Brazil.
Before going public with the campaign,
SCA launched it for its employees.
“Launching this kind of campaign with
the collaboration of employees is a key factor for its success,” says Agustin Londoño,
marketing director of SCA in Brazil.
40
KING OF THE FOREST
THE SWEDISH KING, His
PERCENT
SCA will reduce fossil
CO2 emissions in its
Nokia plant in Finland
by 40 percent when
producing steam with
renewable resources.
By investing in a new
biomass-fired boiler,
the plant will reduce its
carbon footprint, and
the mill will be able to
valorize its sludge while
overall energy costs will
be reduced.
SCA IS CLOSING down
a newsprint machine at
the Ortviken paper mill in
Sundsvall, Sweden.
“Global demand for publication paper has declined
in recent years, particularly
for newsprint, and we have
weak profitability,” says Ulf
Larsson, president SCA Forest
Products. “By closing down
our smallest and oldest paper
machine, we will be able to
focus on profitable orders
for the more efficient paper
machines.”
In conjunction with the
closure of the paper machine,
SCA intends to reduce staffing
in production, transport and
sales by about 95 positions.
ASIAN BUSINESS
INTEGRATES WITH VINDA
SCA DIVESTS its business in Southeast Asia, Taiwan and
South Korea for integration with Vinda. SCA is the majority
shareholder in Vinda, one of China’s largest hygiene companies. As part of the transaction, SCA and Vinda have signed
an agreement regarding an exclusive license to market and
sell the SCA brands TENA, (incontinence products) Tork (Away
from Home tissue), Tempo (consumer tissue), Libero (baby
diapers) and Libresse (feminine care) in Southeast Asia, Taiwan
and South Korea. With the agreement, Vinda will hold the rights
to these product brands in these Asian markets. Vinda will
acquire the brands Drypers, Dr.P, Sealer, Prokids, EQ Dry and
Control Plus in these markets.
Majesty Carl XVI Gustaf, visited Västernorrland in Sweden
in September to learn more
about the county’s forest
industry and research. In the
Njurunda Coast conservation
park, SCA introduced him to
harvest planning and a demonstration of nature conservation. The king also got to try
the controls of a harvester.
WAITING FOR MAX
ARE YOU waiting for “Max”,
the handwashing toolkit for
kids? “Max” is currently being
introduced in France and other
European countries will follow
during 2016.
SCA SHAPE 4 2015 43
Just like me you'll shed 121
lit res of t ears in your li fe.
That’s why you’ll need our best Tempo ever.
Now softer than ever, but strong as always.
Wit h you for li fe