SCA Environmental and Social Report 2005
SCA Environmental and Social Report 2005
SCA Environmental and Social Report 2005
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<strong>SCA</strong> <strong>Environmental</strong><br />
<strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong><br />
Respect, Excellence<br />
<strong>and</strong> Responsibility
Contents<br />
<strong>SCA</strong> at a glance 1<br />
Key environmental data 2<br />
Forword by CEO 3<br />
Policy, results <strong>and</strong> commitments 4<br />
Rating 8<br />
<strong>Environmental</strong> <strong>Report</strong> 12<br />
Products <strong>and</strong> Processes 12<br />
Risk Management 13<br />
Incidents 21<br />
Opportunities 22<br />
<strong>Social</strong> <strong>Report</strong> 27<br />
Implementation 28<br />
Health <strong>and</strong> safety 29<br />
Employee relations 33<br />
Business practise 37<br />
Human rights 38<br />
Community relations 39<br />
Resource Management System 41<br />
RMS report <strong>and</strong> data 42<br />
Resources 44<br />
Discharges 46<br />
Data tables 48<br />
Raw material, energy<br />
<strong>and</strong> discharges 49<br />
Mill facts 50<br />
Tissue 50<br />
Personal Care 52<br />
Packaging 53<br />
Forest Products 54<br />
Statement of limited review 55<br />
Organizational structure 56<br />
Glossary 57<br />
<strong>SCA</strong> in the world 60
<strong>SCA</strong> at a glance<br />
Group<br />
Personal Care<br />
Tissue<br />
Packaging<br />
Forest Products<br />
Market position<br />
North<br />
Products Europe America Worldwide<br />
Incontinence<br />
products 1 3 1<br />
Baby diapers 2 – 3<br />
Feminine<br />
hygiene products 3 – 4<br />
Market position<br />
North<br />
Products Europe America Worldwide<br />
Consumer<br />
tissue 1 – 4<br />
AFH tissue 1 3 3<br />
Market position<br />
North<br />
Products Europe America Worldwide<br />
Corrugated<br />
packaging 2 – –<br />
Containerboard 2 – –<br />
Market position<br />
Products Europe<br />
Publication<br />
papers 6<br />
Pulp –<br />
Solid-wood<br />
products 6<br />
Sales in some 90 countries<br />
throughout the world.<br />
Products are sold both under<br />
<strong>SCA</strong>’s br<strong>and</strong>s <strong>and</strong> retailers’<br />
br<strong>and</strong>s <strong>and</strong> are distributed<br />
via the retail trade <strong>and</strong> care<br />
institutions. Production is<br />
carried out at 19 plants in 16<br />
countries.<br />
Sales in some 60 countries<br />
throughout the world.<br />
Products are sold both under<br />
<strong>SCA</strong>’s br<strong>and</strong>s <strong>and</strong> retailers’<br />
br<strong>and</strong>s <strong>and</strong> distributed via<br />
the retail trade <strong>and</strong> corporate<br />
customers. Production is<br />
carried out at 39 plants in 20<br />
countries.<br />
Sales in some 50 countries in<br />
Europe, North America <strong>and</strong><br />
Asia. Most of the packaging<br />
is used for food, consumer<br />
durables <strong>and</strong> industrial<br />
products. Production is<br />
carried out at more than 300<br />
plants in about 30 countries.<br />
Sales primarily in Europe,<br />
but also in North America<br />
<strong>and</strong> Japan. Publication<br />
papers sold to publishers<br />
<strong>and</strong> printing houses account<br />
for about half of sales. Other<br />
production comprises pulp,<br />
solid-wood products <strong>and</strong><br />
timber to <strong>SCA</strong>’s own mills.
Personal Care<br />
Tissue<br />
Group total 1<br />
SEK 96,385m<br />
Net sales<br />
20%<br />
SEK 19,351m<br />
Net sales<br />
32%<br />
SEK 30,701m<br />
Packaging<br />
Net sales<br />
34%<br />
SEK 32,359m<br />
Forest Products<br />
Net sales<br />
17%<br />
SEK 15,935m<br />
Group total 2<br />
SEK 7,293m<br />
Operating profit<br />
34%<br />
SEK 2,474m<br />
Operating profit<br />
22%<br />
SEK 1,577m<br />
Operating profit<br />
24%<br />
SEK 1,775m<br />
Operating profit<br />
26%<br />
SEK 1,886m<br />
Group total<br />
Capital employed<br />
SEK 95,341m<br />
Net operating assets<br />
8%<br />
SEK 8,749m<br />
Net operating assets<br />
34%<br />
SEK 35,529m<br />
Net operating assets<br />
28%<br />
SEK 29,661m<br />
Net operating assets<br />
30%<br />
SEK 32,060m<br />
1) The Group’s net sales exclude intra-Group deliveries. Business areas’ net sales, on the other h<strong>and</strong>, are reported including<br />
intra-Group deliveries. Total figures for the Group also include other operations not included in business areas.<br />
2) Excluding items affecting comparability.<br />
Group total<br />
SEK 7,471m<br />
Operating cash flow<br />
33%<br />
SEK 2,455m<br />
Operating cash flow<br />
24%<br />
SEK 1,772m<br />
Operating cash flow<br />
30%<br />
SEK 2,215m<br />
Operating cash flow<br />
21%<br />
SEK 1,595m<br />
Group total<br />
50,916 employees<br />
Average number of<br />
employees 13%<br />
6,644 employees<br />
Average number of<br />
employees 32%<br />
16,009 employees<br />
Average number of<br />
employees 47%<br />
24,104 employees<br />
Average number of<br />
employees 8%<br />
4,053 employees
A global consumer goods<br />
<strong>and</strong> paper company<br />
<strong>SCA</strong> is a global consumer goods <strong>and</strong><br />
paper company that develops, produces<br />
<strong>and</strong> markets personal care products,<br />
tissue, packaging solutions, publication<br />
papers <strong>and</strong> solid-wood products. <strong>SCA</strong><br />
creates value through knowledge of<br />
the needs of consumers <strong>and</strong> customers,<br />
regional presence <strong>and</strong> efficient production.<br />
<strong>SCA</strong> conducts global operations<br />
with sales in some 90 countries <strong>and</strong><br />
production in about 40. More than half<br />
of sales are consumer products within<br />
personal care, tissue <strong>and</strong> packaging<br />
solutions where the end-users are<br />
individuals <strong>and</strong> households. Every day,<br />
consumer products from <strong>SCA</strong> are used<br />
by hundreds of millions of consumers<br />
worldwide. <strong>SCA</strong>’s products are mainly<br />
sold under own br<strong>and</strong>s as well as via<br />
Essential products for everyday life.<br />
retailers’ br<strong>and</strong>s. <strong>SCA</strong>’s best-known<br />
br<strong>and</strong>s include TENA, Tork, Edet,<br />
Zewa, Libero <strong>and</strong> Libresse.<br />
Industrial companies, the retail<br />
trade <strong>and</strong> media are major buyers<br />
of <strong>SCA</strong>’s transport packaging <strong>and</strong><br />
publication papers for newspapers <strong>and</strong><br />
magazines. <strong>SCA</strong>’s packaging solutions<br />
are mainly used for transport of food,<br />
industrial products <strong>and</strong> consumer<br />
durables. Customers include worldleading<br />
companies such as Hewlett<br />
Packard, Philips <strong>and</strong> Unilever. Publication<br />
papers are sold to newspaper <strong>and</strong><br />
magazine publishers, among others,<br />
mainly in Europe.<br />
<strong>SCA</strong>’s own timber supplies are a key<br />
part of the Group’s raw material flow<br />
<strong>and</strong> contribute to a strong link between<br />
the different product segments.<br />
Net sales by business area<br />
(excl. intra-Group deliveries)<br />
Forest Products 15%<br />
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000<br />
Number of employees<br />
<strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong> 1<br />
Sweden<br />
UK<br />
Germany<br />
USA<br />
China<br />
France<br />
Mexico<br />
Italy<br />
Netherl<strong>and</strong>s<br />
Denmark<br />
Austria<br />
Malaysia<br />
Personal Care 20%<br />
Packaging 33% Tissue 32%<br />
Group’s largest markets<br />
Germany<br />
UK<br />
USA<br />
France<br />
Sweden<br />
Italy<br />
Netherl<strong>and</strong>s<br />
Spain<br />
Denmark<br />
Australia<br />
Mexico<br />
Belgium<br />
<strong>SCA</strong> at a glance<br />
0 2,000 4,000 6,000 8,000 10,000 12,000<br />
SEKm<br />
Average number of employees by country
Key environmental data<br />
Key environmental data<br />
Production <strong>2005</strong> 2004 2003<br />
Paper <strong>and</strong> pulp ktonnes 9,893 9,500 9,111<br />
Timber <strong>and</strong> solid-wood products 1,000 m 3 sw 1,576 1,509 1,485<br />
Raw material supply <strong>2005</strong> 2004 2003<br />
Wood/sawmill chips 1 ktonnes 4,212 4,086 4,021<br />
Purchased pulp 2 ktonnes 1,197 1,151 1,150<br />
Containerboard* ktonnes 2,623 2,555 2,448<br />
Corrugated board ktonnes 40 50 47<br />
Recovered paper ktonnes 4,617 4,259 3,810<br />
Inorganic material ktonnes 326 321 296<br />
Organic fossil material ktonnes 270 412 335<br />
Water Mm 3 237 222 219<br />
Energy <strong>2005</strong> 2004 2003<br />
Electricity<br />
Internal hydro power GWhe 15 17 14<br />
Co-generation GWhe 2,274 2,437 2,402<br />
Grid supply GWhe 6,569 5,883 5,513<br />
TOTAL GWhe 8,858 8,335 7,930<br />
Fuels<br />
Biofuel TJfuel 28,843 27,761 26,734<br />
Fossil fuel TJfuel 50,202 49,195 46,799<br />
Electric boiler TJfuel 406 269 543<br />
Total TJfuel 79,452 77,225 74,076<br />
of which co-gen. TJfuel 12,605 14,067 13,904<br />
Discharges <strong>2005</strong> 2004 2003<br />
To air<br />
NOX as NO2 tonnes 5,711 5,643 6,102<br />
SO2 tonnes 2,967 2,467 2,187<br />
Dust tonnes 663 716 524<br />
CO2 fossil ktonnes 2,926 2,973 2,693<br />
CO2 biogenic ktonnes 3,489 3,116 2,566<br />
To water<br />
COD tonnes 37,123 32,452 35,143<br />
BOD tonnes 9,067 7,544 8,980<br />
Suspended solids tonnes 6,924 6,763 7,578<br />
AOX tonnes 11 6 11<br />
P tonnes 82 110 90<br />
N tonnes 605 679 699<br />
Effluent water Mm 3 129 125 114<br />
Solid waste<br />
L<strong>and</strong>fill tonnes 467,922 375,031 432,850<br />
Recovery tonnes 1,136,913 1,087,762 921,042<br />
Hazardous tonnes 3,350 3,213 2,606<br />
1 Gross production/supply, internal deliveries included.<br />
2 Partly internal deliveries.<br />
2 <strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong>
Sustainability <strong>and</strong> finance<br />
‘Some observers associate environmental <strong>and</strong> social<br />
awareness with increased costs. At <strong>SCA</strong>, we prefer to<br />
consider resource efficiency <strong>and</strong> good social relations<br />
as outst<strong>and</strong>ing qualities of successful companies. Being<br />
proactive has also allowed us to meet new regulations<br />
cost efficiently thereby turning a potential liability into a<br />
business asset.’<br />
In many industrialised countries,<br />
people <strong>and</strong> businesses are so used to an<br />
abundance of clean water that water<br />
conservation can be an overlooked as<br />
an environmental issue. For us, water<br />
is an important asset because it plays<br />
an important role in the production<br />
process. After focusing for seven years<br />
on the reduction of l<strong>and</strong>fill waste <strong>and</strong><br />
achieving significant improvement at<br />
many sites, we are shifting our attention<br />
to water management for the<br />
next five years. This new focus will<br />
complement our existing objectives of<br />
emissions control <strong>and</strong> traceability of<br />
wood-based materials.<br />
We are determined to be a world<br />
leader in business integrity. Our current<br />
challenge is to ensure that the Code<br />
of Conduct is reflected in all activity<br />
at the local level. In <strong>2005</strong>, we worked<br />
on Group-wide implementation of<br />
the Code of Conduct <strong>and</strong> conducted<br />
a pilot study to underst<strong>and</strong> how it<br />
worked in practise. We also developed<br />
new key indicators to better measure<br />
compliance. For 2006, we will continue<br />
to implement our Code especially in<br />
terms of supply chain <strong>and</strong> human rights<br />
issues.<br />
Efficiency programme <strong>and</strong><br />
cost savings<br />
Over the past two years, <strong>SCA</strong> has faced<br />
a tough economic climate in many of<br />
its product areas. We have experienced<br />
extremely tough competition <strong>and</strong> price<br />
pressure <strong>and</strong> have initiated cost savings<br />
<strong>and</strong> efficiency programmes. At the<br />
same time, <strong>SCA</strong> has launched a record<br />
number of new products <strong>and</strong> br<strong>and</strong><br />
platforms to increase sales. However,<br />
despite the intense focus on cost savings<br />
<strong>and</strong> division downsizing, <strong>SCA</strong> has<br />
never compromised its environmental<br />
<strong>and</strong> social responsibility.<br />
Some observers associate environmental<br />
<strong>and</strong> social responsibility with<br />
increased costs. At <strong>SCA</strong>, we prefer to<br />
consider resource efficiency <strong>and</strong> good<br />
social relationships as outst<strong>and</strong>ing<br />
qualities of successful companies. Being<br />
proactive has also allowed us to meet<br />
new regulations cost efficiently thereby<br />
turning a potential liability into a business<br />
asset.<br />
<strong>SCA</strong> products <strong>and</strong> sustainability<br />
Throughout the entire production cycle<br />
of its wood-based products, <strong>SCA</strong> is<br />
committed to making the world cleaner.<br />
Most of <strong>SCA</strong>’s products <strong>and</strong> processes<br />
can be considered part of nature’s<br />
life cycle. The materials we use in our<br />
products have a minimal impact on the<br />
environment <strong>and</strong> are often recyclable.<br />
<strong>Environmental</strong> <strong>and</strong> social credibility,<br />
however, means little if the products<br />
we supply do not live up to consumer<br />
expectations. Contributing to an<br />
improved quality of life for the millions<br />
of people who use our products daily<br />
is equally important as our environmental<br />
<strong>and</strong> social actions. It is fundamentally<br />
important that our products<br />
<strong>and</strong> services are both economically<br />
advantageous <strong>and</strong> ecologically sound.<br />
I hope that this report provides<br />
a good overview of how our work<br />
on environmental <strong>and</strong> social issues<br />
contributes to making <strong>SCA</strong> a successful<br />
company.<br />
Jan Åström<br />
President <strong>and</strong> CEO<br />
Foreword by CEO<br />
<strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong> 3
Policy, results <strong>and</strong> commitments<br />
<strong>SCA</strong> sustainability policy<br />
Our networks within the organization implement <strong>SCA</strong>’s policies on environmental<br />
<strong>and</strong> social responsibility. Our company policy, main commitments <strong>and</strong> results<br />
in <strong>2005</strong> are presented below.<br />
<strong>SCA</strong> places great weight on renewable<br />
<strong>and</strong> recyclable raw materials <strong>and</strong> strives<br />
to offer environmentally sound products<br />
<strong>and</strong> services. These must be capable of<br />
meeting customer <strong>and</strong> consumer needs<br />
in terms of functionality, affordability,<br />
safety <strong>and</strong> environmental impact.<br />
Policy statements<br />
• <strong>SCA</strong> will conduct its activities in accordance<br />
with the highest st<strong>and</strong>ards<br />
of corporate best practise <strong>and</strong> in<br />
full compliance with all applicable<br />
regulatory requirements. <strong>SCA</strong> is<br />
committed to sustainable business<br />
development in light of all economic,<br />
environmental <strong>and</strong> social issues.<br />
• <strong>SCA</strong> is committed to transparency <strong>and</strong><br />
open communication about its environmental<br />
<strong>and</strong> social practises. It seeks<br />
dialogue with its stakeholders in order<br />
to contribute to the development of<br />
global best practise. <strong>SCA</strong> dem<strong>and</strong>s<br />
the same commitment to transparency<br />
<strong>and</strong> open communication from<br />
its suppliers <strong>and</strong> subcontractors.<br />
4<br />
• <strong>SCA</strong> assesses the environmental impact<br />
of its products during their various<br />
life stages <strong>and</strong> includes suppliers<br />
<strong>and</strong> subcontractors in this process.<br />
• <strong>SCA</strong> promotes the implementation<br />
of appropriate, well-established<br />
environmental management systems<br />
throughout its organization. <strong>SCA</strong><br />
continuously reviews <strong>and</strong> challenges<br />
its objectives <strong>and</strong> targets in order<br />
to reduce its global impact on the<br />
environment.<br />
• <strong>SCA</strong> aims to provide a safe <strong>and</strong> nondiscriminatory<br />
work environment<br />
for its employees. All units must, at<br />
a minimum, strictly abide national<br />
laws <strong>and</strong> collective agreements. <strong>SCA</strong><br />
actively strives for continuous improvement<br />
of health <strong>and</strong> safety in the<br />
workplace.<br />
<strong>SCA</strong> long-term commitments<br />
At the corporate level, <strong>SCA</strong>’s environmental<br />
<strong>and</strong> social commitments constitute<br />
a guiding framework. Corporate<br />
environmental <strong>and</strong> social activities<br />
The new product family ultra-thin pads was<br />
launched in Mexico in <strong>2005</strong> <strong>and</strong> in Europe at<br />
the beginning of 2006.<br />
reflect the shared ambition of both<br />
corporate <strong>and</strong> operational management<br />
to contribute to sustainable development.<br />
To achieve local relevance <strong>and</strong><br />
participation, responsibility for the<br />
establishment of detailed environmental<br />
<strong>and</strong> social objectives rests with<br />
the various Business Groups. <strong>SCA</strong>’s<br />
corporate environmental commitments<br />
are established relative to production in<br />
order to measure efficiency the provision<br />
of products <strong>and</strong> services to our<br />
customers.<br />
<strong>SCA</strong> has a long-term commitment<br />
to reducing carbon dioxide emissions.<br />
Currently high electricity prices, caused<br />
in part by the EU Emissions Trading<br />
Scheme, have caused <strong>SCA</strong> to increase<br />
its own electricity production through<br />
back-pressure power. This is a very efficient<br />
way to produce power whereby<br />
fuel energy content is optimized<br />
through the combined production of<br />
electricity <strong>and</strong> thermal energy. It does,<br />
however, increase <strong>SCA</strong>’s direct emissions<br />
somewhat.<br />
<strong>SCA</strong> is achieving significant emissions<br />
reduction by investing in largescale<br />
energy projects. This has resulted<br />
in the nearly total exclusion of coal <strong>and</strong><br />
a reduction in oil to 7.4% of <strong>SCA</strong>’s total<br />
fuel use. As a result of <strong>SCA</strong>’s strategy<br />
to replace fossil fuel with biofuel, more<br />
than a third of <strong>SCA</strong>’s fuel mix today<br />
consists of biofuel.<br />
Although a number of additional<br />
large projects are planned, it will take<br />
time before they have an effect on<br />
emissions. Meanwhile ESAVE projects<br />
<strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong>
will continue to contribute to energy<br />
efficiency.<br />
Regarding reduction of l<strong>and</strong>fill<br />
waste, <strong>SCA</strong>’s goal-oriented work for the<br />
last seven years has resulted in an average<br />
annual reduction of 6%. <strong>SCA</strong> has<br />
successfully achieved its objective <strong>and</strong><br />
established routines throughout the<br />
entire company. The fraction of waste<br />
sent to l<strong>and</strong>fills is small, <strong>and</strong> in some<br />
units, has been almost eliminated. From<br />
a corporate perspective, we regard the<br />
objective as achieved.<br />
A few facilities, however, must<br />
continue to reduce l<strong>and</strong>fill waste. <strong>SCA</strong><br />
has decided to shift its focus to water<br />
management <strong>and</strong> to introduce a new<br />
corporate objective. The water management<br />
objective applies to all <strong>SCA</strong> paper<br />
<strong>and</strong> pulp mills around the world.<br />
The water management objective<br />
involves both reduced water consumption<br />
<strong>and</strong> reduced organic content.<br />
<strong>SCA</strong>’s water management network<br />
Policy, results <strong>and</strong> commitments<br />
fosters knowledge throughout the<br />
company in order to achieve objectives<br />
as cost-efficiently as possible.<br />
Establishing procedures to ensure<br />
that wood <strong>and</strong> virgin fibre products<br />
are derived from approved sources<br />
remains a company objective. These<br />
procedures are being implemented but<br />
work remains regarding evaluation of<br />
suppliers.<br />
<strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong> 5
Policy, results <strong>and</strong> commitments<br />
Results <strong>and</strong> commitments<br />
RESULTS OF <strong>SCA</strong> ENVIRONMENTAL AND SOCIAL COMMITMENTS <strong>2005</strong><br />
<strong>SCA</strong> will continue working<br />
to reduce carbon dioxide<br />
emissions from fossil fuels<br />
relative to production levels.<br />
<strong>SCA</strong> will further reduce its<br />
proportion of l<strong>and</strong>fill waste.<br />
<strong>SCA</strong> will establish procedures to<br />
ensure that wood-based materials<br />
used in its processes are derived<br />
from non-controversial wood<br />
sources.<br />
<strong>SCA</strong> will fully implement its<br />
Code of Conduct.<br />
<strong>SCA</strong> will monitor Code of Conduct<br />
compliance through existing<br />
reporting systems <strong>and</strong> through<br />
the introduction of new Key<br />
Performance Indicators (KPI)<br />
where needed.<br />
Result: CO2 emissions relative to production decreased by 7% in <strong>2005</strong>.<br />
They increased by 1% in 2004 after decreasing by 4% in 2003.<br />
Result: The proportion of production waste disposed in l<strong>and</strong>fills was<br />
further reduced by 12% in <strong>2005</strong>, after a 32% reduction in 2004 <strong>and</strong> an 8%<br />
reduction in 2003. Since a large number of units have, for the most part,<br />
eliminated l<strong>and</strong>fill waste, the objective for 2006 will no longer be regarded<br />
as a corporate goal.<br />
Result: <strong>SCA</strong> is implementing this policy. <strong>SCA</strong> has discussed this policy with<br />
its suppliers of wood <strong>and</strong> virgin fibre based products to assure compliance.<br />
A significant amount of work, however, must still be done before full compliance<br />
can be guaranteed. As yet, some types of virgin fibre products have not been<br />
fully included in the policy. These products, mainly packaging paper, will be<br />
included in 2006.<br />
Result: Implementation of the Code of Conduct was approximately 95%<br />
complete at year-end <strong>2005</strong>. Delays have occurred as a result of integration<br />
of newly acquired businesses <strong>and</strong> extensive restructuring programmes<br />
undertaken in <strong>2005</strong>. Information <strong>and</strong> training at remaining sites will be<br />
undertaken in 2006.<br />
Result: Several new indicators for monitoring Code of Conduct compliance<br />
were introduced in <strong>2005</strong> including percentage of <strong>SCA</strong> employees covered by<br />
collective bargaining agreements <strong>and</strong> the age of the youngest worker at each site.<br />
Further details <strong>and</strong> results may be found in the section on social reporting.<br />
6 <strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong>
OUR COMMITMENTS FOR THE FUTURE<br />
1<br />
<strong>SCA</strong> will reduce its specific water consumption<br />
<strong>and</strong> improve the quality of its effluents.<br />
15% reduced water consumption (m/T)<br />
30% reduced organic content (kg BOD/T)<br />
The target is related to <strong>SCA</strong> pulp <strong>and</strong> paper mills that are included<br />
in the RMS system for the period <strong>2005</strong>–2010 (reference year <strong>2005</strong>).<br />
2<br />
<strong>SCA</strong> will continue working to reduce its specific<br />
emissions of carbon dioxide from fossil fuels relative<br />
to production levels.<br />
3<br />
<strong>SCA</strong> is continuing to implement procedures that ensure<br />
that wood-based materials used in its processes are<br />
derived from non-controversial wood sources.<br />
4<br />
<strong>SCA</strong> will strive to refine <strong>and</strong> improve Key Performance<br />
Indicators (KPIs) used to monitor compliance with<br />
the Code of Conduct.<br />
5<br />
<strong>SCA</strong> will work to integrate CSR requirements into<br />
existing supplier performance management systems<br />
for all business groups.<br />
Policy, results <strong>and</strong> commitments<br />
<strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong> 7
Rating<br />
Measuring our commitment to corporate sustainability<br />
How companies perform on environmental, social <strong>and</strong> strategic governance<br />
issues has a growing impact on their competitiveness, profitability <strong>and</strong><br />
share price performance.<br />
Companies that manage sustainability<br />
well tend to deliver better risk-adjusted<br />
financial results than their industry<br />
peers. The companies that are best at<br />
sustainable development are well-positioned<br />
to capitalize on new opportunities<br />
in the future. It is estimated that<br />
about 5% of <strong>SCA</strong> stocks is managed by<br />
funds with environmental <strong>and</strong> social<br />
selection criteria. <strong>SCA</strong> belongs to a<br />
group of fifty companies whose shares<br />
are often owned by European sustainability<br />
funds. Analyses of the company’s<br />
sustainability work are becoming<br />
more sophisticated where, among other<br />
things, the company’s management <strong>and</strong><br />
direction as well as social responsibilities<br />
have received greater attention.<br />
Through its four areas of activity –<br />
personal hygiene products, tissue,<br />
packaging, <strong>and</strong> forest products – <strong>SCA</strong><br />
offers a balanced portfolio with less<br />
cyclical variation than traditional forest<br />
product companies. At the same time,<br />
<strong>SCA</strong> has in the last five years become a<br />
global player by investing in the Americas,<br />
Asia <strong>and</strong> Australasia from its base<br />
in Europe.<br />
<strong>SCA</strong> communicates with the financial<br />
market about the company’s sustainability<br />
work through, among other<br />
things, publication of the Corporate<br />
<strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>and</strong><br />
via contacts with various rating institutes.<br />
The corporation is rated according<br />
to the leading sustainability indices<br />
<strong>and</strong> is included in many environmental<br />
<strong>and</strong> socially responsible investment<br />
funds. We have asked senior analysts<br />
at DJSE, FTSE4Good, Innovest <strong>and</strong><br />
Ethibel about how they rate <strong>SCA</strong> in<br />
relation to similar companies <strong>and</strong> about<br />
its strengths <strong>and</strong> weaknesses in terms of<br />
sustainable development. Comments<br />
from a recent study of international tissue<br />
producers are also included.<br />
FTSE4Good rating<br />
The FTSE Group is a world-renowned<br />
index company, a joint venture between<br />
The Financial Times <strong>and</strong> the London<br />
Stock Exchange. Its sole business is the<br />
calculation of market indices, among<br />
which is FTSE4Good, which measures<br />
the performance of companies that<br />
meet globally recognised corporate<br />
responsibility st<strong>and</strong>ards <strong>and</strong> facilitates<br />
investment in these companies.<br />
<strong>SCA</strong> is considered a ‘high-impact’<br />
company in environmental terms, yet it<br />
meets FTSE4Good <strong>Environmental</strong> criteria<br />
because of its policy, environmental<br />
management system <strong>and</strong> environmental<br />
reporting. FTSE4Good analysts<br />
examine company policies, systems <strong>and</strong><br />
reporting in terms of various indicators<br />
the company must meet to be included<br />
in the index. For example, <strong>SCA</strong> must<br />
have identified its key impacts including<br />
climatological change, air <strong>and</strong> water<br />
emissions, waste <strong>and</strong> recycling, <strong>and</strong><br />
water efficiency.<br />
The FTSE4Good indicators are<br />
divided into three main areas – policy,<br />
EMS <strong>and</strong> reporting. Its evaluation of<br />
<strong>SCA</strong> shows that the company satisfies<br />
the criteria for policy <strong>and</strong> EMS but has<br />
shortcomings in terms of reporting<br />
<strong>and</strong> that more information is needed<br />
regarding incidents <strong>and</strong> the economic<br />
dimension.<br />
For more information, please<br />
consult the FTS4GOOD website<br />
at www.ftse.com<br />
INNOVEST rating<br />
INNOVEST is a leading investment<br />
consultancy based in New York. It<br />
specialises in non-traditional drivers of<br />
investment risk <strong>and</strong> return including<br />
company performance on environmental,<br />
social <strong>and</strong> strategic governance<br />
issues with particular focus on<br />
competitiveness, profitability <strong>and</strong> share<br />
price performance. Innovest currently<br />
has approximately USD 1.1 billion in<br />
structured sub-advisory m<strong>and</strong>ates.<br />
In <strong>2005</strong>, <strong>SCA</strong> was classified in a<br />
new global business ranking Global<br />
100 Most Sustainable Corporations in<br />
the World, compiled by Innovest <strong>and</strong><br />
unveiled in Davos, Switzerl<strong>and</strong> at the<br />
<strong>2005</strong> World Economic Forum. The<br />
‘Top 100’ emerged from a pool of over<br />
2,000 firms that represent large global<br />
indices such as the S&P 500, MSCI<br />
World, FTSE 350 <strong>and</strong> Eurostoxx. Companies<br />
were selected according to their<br />
ability to manage strategic opportunities<br />
in new environmental <strong>and</strong> social<br />
markets.<br />
For the company’s comparative<br />
8 <strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong>
anking, INNOVEST analysts focus on<br />
issues such as corporate environmental<br />
strategy, LCAs, historic environmental<br />
liabilities, sustainable governance, environmentally-related<br />
profit opportunities,<br />
human capital management <strong>and</strong><br />
stakeholder relations, product issues,<br />
intellectual capital <strong>and</strong> emerging markets.<br />
They also do a ‘negative screening’<br />
to be sure that the company is not involved<br />
in areas such as tobacco, nuclear<br />
energy, <strong>and</strong> other areas. Companies are<br />
ranked on a scale from CCC (laggards)<br />
to AAA (best).<br />
INNOVEST obtains its information<br />
from the companies themselves<br />
<strong>and</strong> checks on them through third parties<br />
such as NGOs, trade organizations,<br />
community groups, government <strong>and</strong><br />
regulatory authorities, industry-specific<br />
news sources <strong>and</strong> other media.<br />
Within a peer group of 26 other<br />
world-leading companies, <strong>SCA</strong> placed<br />
in the top quarter of the INNOVEST<br />
index. In <strong>2005</strong>, <strong>SCA</strong> was found to have<br />
performed very well in environmental<br />
analysis <strong>and</strong> social analysis as well as in<br />
both combined.<br />
Says senior analyst Juan Silva: ‘In<br />
the forestry group, European companies<br />
are above average, the main reason<br />
being a more sophisticated regulatory<br />
environment in Europe.<br />
We perceive <strong>SCA</strong> as above average for<br />
the following reasons:<br />
• proactive work on energy efficiency<br />
• material recovery <strong>and</strong> reuse<br />
• sound sustainability governance <strong>and</strong><br />
sophisticated structure that demonstrates<br />
commitment<br />
• accountability <strong>and</strong> coordination ensured<br />
by the networks <strong>and</strong> the structure<br />
of the Council for Sustainable<br />
Development as well as committees<br />
for environmental <strong>and</strong> social responsibility<br />
• good labour relations<br />
• application of social responsibility<br />
concept to minimise impact of<br />
restructurings<br />
We see two areas of potential risk:<br />
1. Sustainability performance in<br />
emerging markets. Since <strong>SCA</strong> has<br />
exp<strong>and</strong>ed through joint ventures, production<br />
units work independently with<br />
their own environmental management<br />
systems. We fear a lack of sustainability<br />
programmes in these facilities. We are<br />
thinking above all about Latin America<br />
<strong>and</strong> Asia. We consider the corporate<br />
Code of Conduct a good starting point<br />
for proactive initiatives in this area <strong>and</strong><br />
to protect the company from environmental<br />
<strong>and</strong> social risks in emerging<br />
markets.<br />
2. CO2 emissions have not been significantly<br />
reduced for the last two years.<br />
We underst<strong>and</strong> that new facilities have<br />
been introduced during the reporting<br />
period, but improvement seems to have<br />
hit a ceiling.<br />
A positive for <strong>SCA</strong> is that it seems to<br />
have integrated product innovation<br />
into its sustainability commitment<br />
<strong>and</strong> has become a leader in resource<br />
efficiency.’<br />
For more information, please<br />
consult the Innovest website at<br />
www.innovestgroup.com<br />
<strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong> 9<br />
Rating<br />
ETHIBEL rating<br />
Ethibel is an independent consultancy<br />
<strong>and</strong> research organisation. The Ethibel<br />
seal aims to guarantee the quality of<br />
socially responsible <strong>and</strong> ethical investments.<br />
ETHIBEL has added <strong>SCA</strong> to its<br />
sustainability index <strong>and</strong> register, has<br />
given the company the grade of A for<br />
‘industry leader’, <strong>and</strong> has placed <strong>SCA</strong> in<br />
its pioneer register.<br />
<strong>SCA</strong> has been placed in the Paper<br />
& Forestry Industry category even<br />
though ETHIBEL analysts were well<br />
aware of the importance of hygiene<br />
products to the Group’s activities.<br />
ETHIBEL analyst Laetitia Roesems<br />
sees a weakness for <strong>SCA</strong> - its limited<br />
reporting of activities in developing<br />
countries. ‘Detailed reporting is necessary’,<br />
says Laetitia Roesems, ‘including<br />
reports on social relations in order to<br />
underst<strong>and</strong> the positive impact the<br />
company seems to have on local social<br />
structures, the country’s economy, <strong>and</strong><br />
the environment.<br />
‘It would be nice to know how<br />
global partnership with the unions also<br />
improves social dialogue in countries<br />
where unions <strong>and</strong> industrial relations<br />
are less developed.’<br />
ETHIBEL recommends using the<br />
indicators from the Global <strong>Report</strong><br />
Initiative (GRI) as a benchmark. <strong>SCA</strong>’s<br />
strengths, <strong>and</strong> the main reason why the<br />
company gets the ETHIBEL quality seal<br />
as clear industry leader are its commitment<br />
to FSC, impressive recycling efforts,<br />
good employee relations <strong>and</strong> social<br />
dialogue including an international<br />
partnership with the unions. Concludes
Rating<br />
Laetitia Roesems: ‘I would like to add<br />
that we observed some vagueness about<br />
non-FSC labelled wood – where it<br />
comes from <strong>and</strong> how big it is in relation<br />
to the total amount of timber used.’<br />
For more information, please consult<br />
the Ethibel website at www.ethibel.org<br />
Dow Jones Sustainability Index rating<br />
The Dow Jones Sustainability Indexes<br />
(DJSI) are the first global indices to<br />
track the financial performance of leading<br />
sustainability-driven companies<br />
worldwide. Based on cooperation between<br />
the Dow Jones Indexes, STOXX<br />
Limited <strong>and</strong> SAM, leading companies<br />
in sustainability are tracked to provide<br />
asset managers with benchmarks to<br />
manage sustainability portfolios. The<br />
indices take into account issues such as<br />
corporate governance, climatological<br />
change, supply chain st<strong>and</strong>ards <strong>and</strong><br />
labour practises.<br />
Based on Dow Jones’s allocation by<br />
industry, <strong>SCA</strong> was originally classified<br />
a forestry company in DJSI, but<br />
was moved to the household products<br />
industry (from which <strong>SCA</strong> was temporarily<br />
deselected in 2004) <strong>and</strong> is now in<br />
the personal products industry among<br />
hygiene <strong>and</strong> other personal products as<br />
well as cosmetics. This is because more<br />
than 50% of its turnover comes from<br />
the sale of hygiene products. In <strong>2005</strong>,<br />
<strong>SCA</strong> was selected for inclusion in DJSI’s<br />
European sub-category, the Dow Jones<br />
STOXX Sustainability Index.<br />
Four equally weighted indicators –<br />
energy use, greenhouse gas emissions,<br />
waste disposal <strong>and</strong> water – are used to<br />
evaluate environmental performance.<br />
A decrease in environmental impact of<br />
more than 10% is considered to be ‘best<br />
practise’.<br />
<strong>SCA</strong>’s identified strengths are its<br />
comprehensive reporting, environmental<br />
performance <strong>and</strong> eco-efficiency in<br />
water management <strong>and</strong> waste disposal,<br />
as well as human capital development<br />
including use of best practise tools<br />
for skills mapping <strong>and</strong> in employee<br />
personal development. Says Gabriela<br />
Grab, senior analyst at SAM in Zurich,<br />
Switzerl<strong>and</strong>: ‘<strong>SCA</strong> is in a very good<br />
position regarding its human capital<br />
development, which is the basis for<br />
innovation <strong>and</strong> an important element<br />
in SAM’s corporate sustainability assessment.<br />
The application of comprehensive<br />
social st<strong>and</strong>ards to the company’s suppliers<br />
regarding human rights <strong>and</strong> the<br />
establishment of procedures to ensure<br />
that wood-based materials are derived<br />
from sustainable sources contributes to<br />
the high marks given to the group.’<br />
Areas for improvement where<br />
<strong>SCA</strong> should do more are:<br />
• transparency of supply chain <strong>and</strong><br />
external purchases<br />
• energy efficiency <strong>and</strong> CO2 emissions<br />
reduction<br />
• quantitative data on social management<br />
in emerging markets.<br />
Adds Gabriela Grab: ‘The company<br />
must explain what it is doing to tackle<br />
these challenges if it wants to included<br />
among the best 10% in the world. In<br />
terms of energy <strong>and</strong> greenhouse gas<br />
emissions, the picture regarding emissions<br />
reduction is unclear because of<br />
acquisitions <strong>and</strong> increased sales. There<br />
is definitely room for improvement in<br />
these areas’.<br />
For more information, please<br />
consult the DJSI website at<br />
www.sustainability-indexes.com<br />
WWF study of the ‘tissue giants’<br />
In November <strong>2005</strong>, the World Wildlife<br />
Fund published a study that evaluated<br />
the environmental performance of<br />
Europe’s five leading tissue manufacturers.<br />
It was a tough evaluation where all<br />
five companies achieved less than 50%<br />
of the total possible score as defined by<br />
WWF. Nonetheless, <strong>SCA</strong> Tissue scored<br />
better than its four main competitors.<br />
The WWF believes that <strong>SCA</strong> Tissue ‘is<br />
on the right track’.<br />
<strong>SCA</strong> obtained its best scores<br />
in the following:<br />
• degree of responsibility in sourcing<br />
wood fibre<br />
• transparency/comparability among<br />
current clean production levels<br />
• ISO 14001/EMAS/audit for each mill<br />
• transparency of public reporting <strong>and</strong><br />
reporting to WWF<br />
<strong>SCA</strong>’s lowest score was for ‘actual<br />
improvement in recent months’ (33%),<br />
but the score is still much better than its<br />
competitors’ average (14.25%) in that<br />
area.<br />
Study available at www.wwf.org<br />
10 <strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong>
Goal 1<br />
Reduce<br />
water consumption<br />
<strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong> 11
<strong>Environmental</strong> report<br />
ENVIRONMENTAL REPORT<br />
Interest in environmental issues in today’s society has resulted in fundamental <strong>and</strong><br />
decisive changes in industry. Companies need to address emerging environmental<br />
issues <strong>and</strong> to conform to new legislation. New dem<strong>and</strong>s sometimes impose increased<br />
costs on industry but opportunities are also created. This chapter will describe risk<br />
management <strong>and</strong> opportunities for <strong>SCA</strong>. We will also describe our products <strong>and</strong><br />
processes in greater detail as well as incidents that occurred in <strong>2005</strong>.<br />
PRODUCTS & PROCESSES<br />
<strong>SCA</strong> products are a response to many<br />
fundamental needs in society. Hygiene<br />
products have changed the lives of<br />
millions. Hygiene products play a<br />
decisive role in improving the health of<br />
people in emerging nations. They also<br />
help people in developed parts of the<br />
world live dignified, unencumbered <strong>and</strong><br />
independent lives to a much higher age.<br />
Packaging contributes to the protection<br />
<strong>and</strong> marketing of innumerable<br />
products, which would be impossible<br />
to transport, display <strong>and</strong> sell without<br />
light-weight, protective coverings.<br />
The printed word on newspapers <strong>and</strong><br />
in all types of publications is the first<br />
Resources <strong>and</strong> discharges<br />
<br />
step toward knowledge <strong>and</strong> increased<br />
underst<strong>and</strong>ing of the world at large.<br />
<strong>SCA</strong> is involved in the entire life<br />
cycle of many of its products, from<br />
responsible forest management to<br />
recovery <strong>and</strong> recycling of used fibre,<br />
or the recycling of process water in<br />
closed systems. <strong>SCA</strong> is Europe’s largest<br />
collector <strong>and</strong> user of recovered fibre.<br />
For disposable products, such as baby<br />
diapers or incontinence products, <strong>SCA</strong><br />
ensures that all product materials are<br />
compatible with various solid waste<br />
treatment options.<br />
<strong>SCA</strong> production processes are<br />
energy intensive. The Group is actively<br />
optimizing incineration opportunities<br />
<br />
<br />
for its own waste <strong>and</strong> producing green<br />
electricity through locally generated<br />
back-pressure power. <strong>SCA</strong> is also<br />
striving to increase the calorific value<br />
of secondary fuel from waste that is incinerated<br />
in its own power production<br />
plant or an external energy plant.<br />
<strong>SCA</strong> also uses certain fossil materials<br />
<strong>and</strong> compounds such as ink,<br />
synthetic additives, plastic film or highabsorption<br />
material in hygiene <strong>and</strong><br />
packaging products. These materials<br />
can be collected <strong>and</strong> recycled or, in the<br />
case of single use consumer products,<br />
disposed of in the same way as the<br />
product itself such as incineration with<br />
energy recovery.<br />
This is a schematic diagram of resources <strong>and</strong> discharges involved in the industrial production of pulp <strong>and</strong> paper. <strong>SCA</strong> uses energy <strong>and</strong><br />
raw materials (forest fibre <strong>and</strong> recovered paper) in its processes <strong>and</strong> different transport systems to transport raw material to the mills <strong>and</strong><br />
to distribute products to <strong>SCA</strong> customers. These processes result in air emissions, water discharges <strong>and</strong> solid waste.<br />
<br />
12 <strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong>
RISK MANAGEMENT<br />
<strong>SCA</strong> takes a systematic approach to<br />
economic, social <strong>and</strong> environmental<br />
risks – from the selection of raw materials,<br />
energy sourcing or water management<br />
to the environmental impact of<br />
production, product safety for users<br />
<strong>and</strong> the recycling or safe disposal of<br />
disposable products.<br />
<strong>SCA</strong>’s legislative network, comprised<br />
of specialists who follow regulatory<br />
affairs at the EU <strong>and</strong> national level,<br />
acts as an early warning network to<br />
influence legislation by shedding light<br />
on issues from chemicals to water. For<br />
each issue, <strong>SCA</strong>’s network formulates<br />
a position that becomes the basis for<br />
work with trade associations <strong>and</strong><br />
legislators. A regulatory platform comprised<br />
of eight experts from all Group<br />
business areas is responsible for coordinated<br />
communication <strong>and</strong> for communicating<br />
<strong>SCA</strong>’s position to lawmakers at<br />
both the EU <strong>and</strong> national level.<br />
Water management<br />
In large parts of the world, water is<br />
becoming scarce while in other parts,<br />
water quality is an increasingly important<br />
issue. <strong>SCA</strong>’s production processes<br />
use large amounts of water. Restrictions<br />
on water availability may constrain the<br />
development of <strong>SCA</strong> units, <strong>and</strong> process<br />
water usage <strong>and</strong> treatment costs may<br />
increase.<br />
The intrinsic value of clean water<br />
will increase dramatically in coming<br />
decades. The sixth EU <strong>Environmental</strong><br />
Action Programme defines the objectives<br />
of European policy until 2010.<br />
<strong>SCA</strong> is aware of the need to conserve<br />
water <strong>and</strong> optimises water use at all its<br />
mills <strong>and</strong> plants. Water management is<br />
a major commitment for <strong>SCA</strong> for the future.<br />
Ground water conservation is forc-<br />
<strong>SCA</strong> mill in Ortviken, Sundsvall, Sweden.<br />
ing industry to improve filtering <strong>and</strong><br />
purification of surface water used in production.<br />
<strong>SCA</strong> mills are large consumers<br />
of water: when pulp is pumped onto the<br />
fine mesh net or ‘wire’ that will become<br />
paper, it is 1% fibre <strong>and</strong> 99% water.<br />
Water is the vehicle that transports<br />
fibre through the entire production<br />
process. All <strong>SCA</strong> mills – regardless of<br />
their production technology – try to<br />
conserve as much of the used water<br />
as possible. Optimisation efforts can<br />
result in a 30 to 40% reduction in water<br />
usage by improving all phases of water<br />
use. <strong>SCA</strong> also optimises its wastewater<br />
treatment plants through implementation<br />
of new technology <strong>and</strong> anaerobic<br />
<strong>and</strong> aerobic reactors that not only<br />
clean the water but can produce energy<br />
<strong>Environmental</strong> report<br />
through the combustion of treatment<br />
sludge or the production of biogas.<br />
<strong>SCA</strong>’s new double commitment<br />
on water over the next five years is to<br />
reduce water consumption relative<br />
to production levels by 15% in m³<br />
per tonne <strong>and</strong> to reduce the organic<br />
content of effluent water by 30% (kg<br />
Biochemical Oxygen Dem<strong>and</strong> – BOD<br />
– per tonne).<br />
The large Lucca mill (Italy) produces<br />
electricity by recovering methane<br />
gas produced by anaerobic treatment of<br />
water effluent. The biogas that results<br />
from this bacterial activity is combusted<br />
to produce 500 kW of useful power.<br />
At the end of <strong>2005</strong>, the mill went a step<br />
further <strong>and</strong> installed downstream the<br />
first electro-dialysis unit in a European<br />
<strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong> 13
<strong>Environmental</strong> report<br />
paper mill in order to desalinise the<br />
water before it is re-introduced into the<br />
production process.<br />
After a production cycle, the water,<br />
although cleaned, contains large<br />
amounts of salt. It must be desalinised<br />
to the level of normal freshwater<br />
to prevent interference in the paper<br />
production process. The resulting salt<br />
concentrate is sent to the municipal<br />
wastewater treatment plant, which<br />
has sufficient capacity to h<strong>and</strong>le the<br />
salt condensate without difficulty. The<br />
recycled water, which is reintroduced<br />
into the paper production cycle (60 m³/<br />
hour), significantly reduces fresh water<br />
consumption at the mill. <strong>SCA</strong> considers<br />
the electro-dialysis unit a pilot project<br />
that will be replicated at other locations<br />
if it proves efficient.<br />
Another example is the installation<br />
of biological cleaning at the Ortviken<br />
(Sweden) paper mill in <strong>2005</strong>. Improved<br />
paper quality <strong>and</strong> increased production<br />
at the mill had increased the load on<br />
the wastewater treatment plant. Bacteria<br />
that removed about half of the most<br />
easily degradable water contaminants<br />
required a large amount of oxygen. A<br />
new biological treatment technology<br />
has dramatically reduced oxygen consumption<br />
<strong>and</strong> the amount of residual<br />
bio-sludge. This, in turn, has reduced<br />
the amount of fuel needed to incinerate<br />
the sludge. The investment is both<br />
commercially <strong>and</strong> environmentally<br />
viable.<br />
A third example is the close cooperation<br />
of <strong>SCA</strong> Tissue with the City<br />
of Flagstaff in the Arizona (United<br />
States) desert. A long drought in the<br />
area threatened to close the tissue mill.<br />
The mill, however, was able to significantly<br />
reduce its water consumption<br />
by switching from fresh groundwater<br />
to reclaimed water. The <strong>SCA</strong> Flagstaff<br />
tissue mill produces kitchen rolls <strong>and</strong><br />
napkins from 66,000 tonnes/year of<br />
recycled paper.<br />
After carefully testing the quality<br />
of water reclaimed by the city’s water<br />
treatment plant, mill management <strong>and</strong><br />
Flagstaff municipal authorities decided<br />
to undertake a joint investment <strong>and</strong><br />
switch to completely recycled water.<br />
The city’s municipal treatment plants<br />
treat water used by thous<strong>and</strong>s of households<br />
as well as <strong>SCA</strong> mill waste water.<br />
The governor of Arizona, impressed by<br />
this cooperation <strong>and</strong> the reduction in<br />
dem<strong>and</strong> on the city’s potable water system,<br />
awarded the <strong>SCA</strong> Flagstaff tissue<br />
mill the Governor’s Prize for <strong>2005</strong>.<br />
Virgin fibre sourcing <strong>and</strong> assured<br />
wood traceability<br />
The issues of responsible forest management<br />
<strong>and</strong> illegally logged timber are<br />
becoming increasingly important in<br />
society <strong>and</strong> among customers. Customers<br />
want products that are derived from<br />
legal <strong>and</strong> environmentally-friendly<br />
sources. Stronger measures are being<br />
discussed at both the national <strong>and</strong><br />
international level to combat the trade<br />
in timber from controversial sources.<br />
Responsible timber sourcing helps<br />
mitigate risks to business relationships<br />
<strong>and</strong> reduce the probability of costly<br />
legal controls.<br />
<strong>SCA</strong> has high environmental objectives<br />
for managing its own 2.6 million<br />
hectares of forest in northern Sweden.<br />
In 1999, <strong>SCA</strong>’s forest management<br />
programme was certified according to<br />
the stringent st<strong>and</strong>ards of the Forest<br />
Stewardship Council (FSC), which<br />
verifies that <strong>SCA</strong> has achieved its forest<br />
management objectives. Over the years,<br />
<strong>SCA</strong> has worked closely with the WWF<br />
<strong>and</strong> other stakeholders to develop a<br />
widely supported <strong>and</strong> viable chainof-custody<br />
st<strong>and</strong>ard for FSC certification<br />
that allows customers to support<br />
responsible forest management through<br />
their choice of certified products. The<br />
FSC Chain-of-Custody st<strong>and</strong>ard includes<br />
mechanisms to keep timber from<br />
controversial sources out of the raw<br />
materials used in certified products.<br />
Controversial sources as<br />
defined by WWF:<br />
• illegally logged timber<br />
• timber from forests with high<br />
conservation value<br />
• timber from areas where human<br />
rights or traditional rights of indigenous<br />
persons are being violated<br />
• timber from genetically modified trees<br />
• timber from areas undergoing<br />
transformation from natural<br />
forests to plantations.<br />
To meet Chain-of-Custody st<strong>and</strong>ards,<br />
all wood supplied to <strong>SCA</strong> mills that<br />
produce publication papers from virgin<br />
wood fibre must meet the FSC criteria<br />
for controlled timber, which must be<br />
documented in all business agreements<br />
with external suppliers <strong>and</strong> verified<br />
through regular audits by independent<br />
auditors. <strong>SCA</strong> sawmills that produce<br />
wood products <strong>and</strong> mills that produce<br />
publication papers (Ortviken, Sweden<br />
<strong>and</strong> Laakirchen, Austria) or pulp are<br />
Chain-of-Custody certified by FSC.<br />
They are supplied with FSC certified<br />
pulpwood that comes from FSC certified<br />
forests or controlled timber sources<br />
including PEFC certified timber from<br />
Austria. Strict agreements are made<br />
with external timber suppliers to ensure<br />
that controlled timber criteria are satisfied.<br />
14 <strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong>
Risk Management<br />
Goal 2<br />
Reduce specific emissions<br />
of carbon dioxide<br />
<strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong> 15
<strong>Environmental</strong> report<br />
<strong>SCA</strong> is today one of the world’s biggest<br />
suppliers of FSC certified products.<br />
The breadth of this portfolio, which<br />
includes solid-wood products, pulp,<br />
toilet paper, kitchen rolls, magazine<br />
paper <strong>and</strong> newsprint, is probably unequalled.<br />
The latest addition to the FSC<br />
product range is SC paper from the mill<br />
in Laakirchen, Austria. The dem<strong>and</strong> for<br />
FSC certified paper products that bear<br />
the FSC logo is increasing in Europe,<br />
particularly in the United Kingdom <strong>and</strong><br />
in Germany.<br />
Sixty percent of the fibre in various <strong>SCA</strong> tissue products for<br />
the consumer <strong>and</strong> AFH markets is recovered fibre.<br />
OBS! Retuschera<br />
bort klottret.<br />
<strong>SCA</strong> has started to enact procedures<br />
to ensure that wood <strong>and</strong> virgin fibrebased<br />
materials used in its processes are<br />
not derived from controversial sources.<br />
Suppliers have been contacted but not<br />
all have responded yet. After suppliers<br />
have documented how their operational<br />
st<strong>and</strong>ards meet <strong>SCA</strong> requirements,<br />
<strong>SCA</strong> will evaluate them based on their<br />
responses. When necessary, <strong>SCA</strong> will<br />
audit the supplier in order to obtain<br />
complete information.<br />
A double source of raw materials:<br />
Swedish forests <strong>and</strong> ‘urban<br />
European forests’<br />
Recovered paper is a raw material<br />
source that has allowed the industry to<br />
exp<strong>and</strong> in a way that would have been<br />
inconceivable based on virgin fibre<br />
alone. Recovery rates in Europe have<br />
been rising continuously for the last<br />
fifty years. The environmental benefits<br />
<strong>and</strong> economic feasibility of recovered<br />
paper as a raw material source depend<br />
on its availability, transport distance<br />
<strong>and</strong> the quality of paper collected.<br />
Hence, recycling operations are most<br />
environmentally efficient near large<br />
urban centres. In contrast, in sparsely<br />
populated areas, virgin fibre from the<br />
forest is preferable. Certain uses have<br />
particular strength requirements that<br />
m<strong>and</strong>ate 100% virgin fibre. To be<br />
effective, recycling operations need a<br />
continuous supply of virgin fibre-based<br />
paper. It is, therefore, not a choice of<br />
recovered over virgin fibre but of finding<br />
an efficient solution where both<br />
alternatives play a role. A potential<br />
risk factor is legislation that unilaterally<br />
promotes recycling at the expense<br />
of virgin fibre products either through<br />
recycled content requirements or exaggerated<br />
targets for recycled paper.<br />
<strong>SCA</strong> has pioneered the development<br />
of recycled paper production over the<br />
last few decades by progressively developing<br />
new ways to use recovered paper<br />
as a raw material. <strong>SCA</strong> contributed to<br />
the fine-tuning of technology used to<br />
produce packaging paper (containerboard)<br />
<strong>and</strong> tissue (hygiene paper).<br />
It has also helped organise the collection<br />
<strong>and</strong> trade of this raw material<br />
– recovered paper. This has occurred<br />
in conjunction with increased political<br />
awareness of society’s need to change<br />
16 <strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong>
its consumption patterns <strong>and</strong> produce<br />
less waste.<br />
<strong>SCA</strong> Recycling is an efficient organisation<br />
with collection sites, depots,<br />
<strong>and</strong> lorry transport throughout Europe.<br />
Raw materials are delivered to both<br />
<strong>SCA</strong> packaging <strong>and</strong> tissue paper mills<br />
(60% internal delivery). In <strong>2005</strong>, paper<br />
collection in Italy, France, Spain <strong>and</strong><br />
the United Kingdom has increased such<br />
that the United Kingdom has become<br />
the biggest net exporter of recovered<br />
paper in Europe.<br />
The WWF gives its best marks to<br />
<strong>SCA</strong> Tissue (see page 10, analysts’<br />
perspective of <strong>SCA</strong>) for its extensive<br />
use of recycled fibre, which constitutes<br />
about 50% of the fibre used in various<br />
tissue products for the consumer <strong>and</strong><br />
Away-From-Home markets.<br />
<strong>SCA</strong> believes there should not be<br />
a blind push for more recycled fibre in<br />
tissue or packaging. In several major<br />
markets, recycling has reached its<br />
physical limits. Germany has the highest<br />
collection rate, in excess of 14 million<br />
tonnes. It has achieved a balance<br />
between collection <strong>and</strong> use of recovered<br />
paper. During 2007–2008, it will begin<br />
to import recycled fibre. As recovered<br />
paper consumption increases dramatically<br />
in Asia, with the economic takeoff<br />
of China (consumption increased by<br />
32% in <strong>2005</strong> along with construction<br />
of many new mills), Europe is likely<br />
to face a price increase for recovered<br />
fibre. There is very little collection in<br />
Asia, where all recovered paper for its<br />
mills comes from the United States <strong>and</strong><br />
Europe.<br />
REACH – pending chemical<br />
legislation<br />
The European parliament <strong>and</strong> the<br />
Council of Ministers have intensely de-<br />
bated the EU Commission proposal for<br />
new chemical legislation in <strong>2005</strong> <strong>and</strong><br />
reached agreement on major principles<br />
following a first reading of the proposal.<br />
The legislation is expected to come<br />
into force in spring 2007 following a<br />
second reading in 2006.<br />
<strong>SCA</strong> <strong>and</strong> European forest-based<br />
industries support the objectives of<br />
REACH <strong>and</strong> agree that responsibility<br />
for the safe use of chemicals lies with<br />
industry <strong>and</strong> that the human <strong>and</strong> environmental<br />
consequences of chemical<br />
use must be better documented.<br />
Most of the discussion has focused<br />
on the extent to which the toxicity <strong>and</strong><br />
environmental impact of chemicals<br />
must be tested <strong>and</strong> the costs of testing<br />
for industry. <strong>SCA</strong>, as large user of<br />
chemicals, is anticipating a possible<br />
increase in chemical costs <strong>and</strong> the possible<br />
removal of some chemicals from<br />
the market.<br />
<strong>SCA</strong> <strong>and</strong> other forest-based industries<br />
have been especially active in discussions<br />
about the potential effects of<br />
REACH on natural <strong>and</strong> recovered raw<br />
materials. It was unclear in the original<br />
proposal if REACH would require<br />
identification <strong>and</strong> registration of all<br />
minor natural components in virgin cellulose<br />
pulp, but after much discussion,<br />
it appears that cellulose pulp has been<br />
exempted from registration. A major<br />
issue for recycled fibre-based industries<br />
that use recovered paper as a raw<br />
material is the effect of REACH on raw<br />
material recovered paper, which is recycled<br />
but is classified as waste. It now<br />
appears that waste will be exempted<br />
from REACH requirements.<br />
REACH impacts not only the<br />
chemical industry but all industrial <strong>and</strong><br />
professional users of chemicals. This<br />
means that in contrast to current legis-<br />
One of <strong>SCA</strong>’s tissue products.<br />
<strong>Environmental</strong> report<br />
lation, <strong>SCA</strong> will have to establish new<br />
administrative routines for chemicals<br />
<strong>and</strong> develop new ways of cooperating<br />
with its chemicals suppliers. Details<br />
need to be fine-tuned in cooperation<br />
with the EU Commission, the chemical<br />
industry <strong>and</strong> industrial users of chemicals.<br />
<strong>SCA</strong> is active in this work.<br />
<strong>SCA</strong> uses Chemsource, a chemical<br />
database of more than 10,000<br />
chemicals developed by STFI (Swedish<br />
Pulp <strong>and</strong> Paper Institute) <strong>and</strong> the<br />
Swedish paper industry. Chemsource<br />
can be accessed via a web-based system<br />
developed by SSG Teknik AB. Chemsource<br />
is available to all <strong>SCA</strong> paper<br />
manufacturing units in Europe <strong>and</strong><br />
contains information from safety data<br />
sheets, including environmental, health<br />
<strong>and</strong> safety factors, <strong>and</strong> procedures <strong>and</strong><br />
instructions for safe h<strong>and</strong>ling.<br />
<strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong> 17
<strong>Environmental</strong> report<br />
ESAVE<br />
ESAVE is a <strong>SCA</strong> programme aimed at<br />
minimising energy consumption as well<br />
as reducing the environmental impact<br />
of energy use. Energy accounts for a<br />
considerable proportion of <strong>SCA</strong>’s production<br />
costs. In <strong>2005</strong>, energy costs<br />
increased substatially <strong>and</strong> now constitute<br />
just over 5% of the company’s<br />
total turnover. Over the years, ESAVE<br />
has progressed in a positive direction<br />
through a number of small-scale<br />
projects.<br />
Since ESAVE’s inception in 2002,<br />
about 175 projects have been completed<br />
<strong>and</strong> have resulted in an approximately<br />
200 GWh reduction in<br />
fuel consumption <strong>and</strong> a 50,000 tonne<br />
reduction in CO2 emission. Electricity<br />
savings amount to approximately<br />
150 GWh. Completed projects have<br />
resulted in cost savings of about EUR<br />
13 million. Most ESAVE projects pay<br />
for themselves within one to two years.<br />
Assessing environmental risks in<br />
acquisitions<br />
<strong>SCA</strong> has grown significantly over the<br />
last twenty years, mainly through<br />
acquisition.<br />
Acquisition teams follow a procedure,<br />
a so-called due diligence process,<br />
to evaluate a company, determine its<br />
value, <strong>and</strong> make an offer to its owners.<br />
<strong>Environmental</strong> liability, which can<br />
be significant especially if <strong>SCA</strong> as a potential<br />
buyer is faced with the prospect<br />
of cleaning up a contaminated industrial<br />
site, is a part of this evaluation<br />
process. It is therefore essential that all<br />
potential issues are identified to ensure<br />
that they are reflected in the purchase<br />
price <strong>and</strong> other contractual agreements.<br />
<strong>SCA</strong> follows an environmental<br />
due diligence checklist to identify all<br />
relevant environmental issues. The list<br />
includes a number of topics such as<br />
hydrological considerations, historical<br />
l<strong>and</strong> use, governmental regulation<br />
<strong>and</strong> air <strong>and</strong> water emissions. Sufficient<br />
information is rarely available in data<br />
provided by the target company. The<br />
first phase, therefore, is a theoretical<br />
study complemented by site visits <strong>and</strong> a<br />
review of on-site documentation. This<br />
first phase is frequently followed by<br />
detailed soil <strong>and</strong> occasionally groundwater<br />
sampling. Although not 100%<br />
foolproof, it does provides a structured<br />
approach to limiting liability arising<br />
from environmental issues in the due<br />
diligence process.<br />
A similar process is applied during<br />
site closings <strong>and</strong> divestments.<br />
Ground contamination<br />
European legislation particularly emphasises<br />
soil decontamination <strong>and</strong> site<br />
rehabilitation where companies change<br />
their type of operations or close them.<br />
Soil decontamination can be extremely<br />
costly, technically challenging, <strong>and</strong> time<br />
consuming.<br />
In Kostheim, Germany, a former<br />
loading <strong>and</strong> unloading zone was turned<br />
into a park after the removal of soil that<br />
had been contaminated prior to <strong>SCA</strong><br />
operations.<br />
In 2006, <strong>SCA</strong> will close its Djursl<strong>and</strong><br />
mill in Grenaa, Denmark. Authorities<br />
have been notified of previous<br />
ground contamination, which was<br />
cleaned up <strong>and</strong> inspected in 1998. <strong>SCA</strong><br />
has planned <strong>and</strong> financially prepared<br />
for any possible decontamination of the<br />
site in coming years.<br />
Hygiene product safety<br />
Hygiene products such as absorbent<br />
intimate hygiene products, wet wipes<br />
<strong>and</strong> toilet paper can involve direct contact<br />
with the skin. In addition, hygiene<br />
products such as kitchen rolls <strong>and</strong> their<br />
industrial equivalent can involve direct<br />
contact with food. Product safety is,<br />
therefore, of paramount importance for<br />
<strong>SCA</strong> hygiene products. Legal requirements<br />
as well as customer <strong>and</strong> consumer<br />
expectations dem<strong>and</strong> that <strong>SCA</strong><br />
have procedures in place to guarantee<br />
product safety.<br />
Personal care products are normally<br />
composed of a variety of materials in or-<br />
18 <strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong>
Publication paper from <strong>SCA</strong>.<br />
der to give them their desired qualities.<br />
Systems are in place to ensure that the<br />
materials used in these products are safe.<br />
All raw materials are procured according<br />
to the <strong>SCA</strong> Personal Care Supplier<br />
st<strong>and</strong>ard. Compliance with this<br />
st<strong>and</strong>ard is assured through supplier audits.<br />
Raw materials also subject to an internal<br />
safety assessment based on international<br />
safety st<strong>and</strong>ards <strong>and</strong> detailed<br />
chemical composition information provided<br />
by the suppliers. The safety assessments<br />
include analyses for chemi-<br />
cal impurities as well as testing to assure<br />
that the products are neither toxic nor<br />
allergenic, nor cause skin reactions.<br />
Before the raw materials are processed,<br />
they undergo occupational safety<br />
assessments to identify potential hazards<br />
<strong>and</strong> to insure that they are h<strong>and</strong>led<br />
in accordance with current legislation.<br />
Personal Care is synchronising health<br />
<strong>and</strong> safety work at factories through<br />
internal networks where professionals<br />
meet <strong>and</strong> exchange information <strong>and</strong><br />
identify areas for improvement.<br />
<strong>Environmental</strong> report<br />
Tissue products for food contact<br />
are covered by specific legislation in<br />
Europe. Routines are in place to insure<br />
that our mills only use chemicals approved<br />
for such uses. Other regulatory<br />
requirements that govern tissue product<br />
manufacture such as the selection of<br />
relevant raw material fibre <strong>and</strong> quality<br />
management systems are also followed.<br />
<strong>SCA</strong> plays a very active role in industry<br />
trade associations in Europe to<br />
further develop procedures <strong>and</strong> to document<br />
the safety of hygiene products.<br />
<strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong> 19
Goal 3<br />
Wood-based materials<br />
will not be derived from<br />
controversial<br />
wood sources<br />
20 <strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong>
INCIDENTS<br />
Despite preventative measures, some<br />
incidents <strong>and</strong> accidents occurred in<br />
<strong>2005</strong>. Fortunately, they have been<br />
relatively minor.<br />
The following is a list of incidents<br />
<strong>and</strong> accidents:<br />
• <strong>SCA</strong> Packaging Suzhou, China<br />
At the start of the Chinese New Year,<br />
a bus that was transporting employees<br />
from the Suzhou <strong>SCA</strong> Packaging<br />
site caught fire <strong>and</strong> within five<br />
minutes was completely destroyed.<br />
Using fire training they had practised<br />
at their site, including evacuation <strong>and</strong><br />
fire equipment use, the passengers<br />
evacuated the bus with no casualties.<br />
• <strong>SCA</strong> Graphic Laakirchen, Austria<br />
High dem<strong>and</strong> for particularly bright<br />
paper grades led to maximum permissible<br />
chemical oxygen dem<strong>and</strong><br />
(COD). In addition, nitrification<br />
processes caused nitrogen values to<br />
sporadically exceed what are already<br />
very low limits. There was, however,<br />
no environmental damage. To solve<br />
the problem, an ozone unit was<br />
installed to reduce COD after the second<br />
stage of water purification. The<br />
new unit was installed in December<br />
2004 <strong>and</strong> started functioning in <strong>2005</strong>.<br />
<strong>SCA</strong> Graphic Laakirchen is now<br />
in full compliance with COD load<br />
limits. Authorities were informed of<br />
the problem <strong>and</strong> measures were taken<br />
to eliminate excesses.<br />
• <strong>SCA</strong> Graphic Östr<strong>and</strong>, Sweden<br />
A lye mixture that contained organic<br />
compounds was accidentally<br />
discharged from the pulp mill. The<br />
amount of oxygen-consuming<br />
Employees at <strong>SCA</strong> factories regularly practice evacuation <strong>and</strong> fire extinguishment.<br />
substances increased for several days,<br />
but the limit values were not exceeded<br />
<strong>and</strong> remained within acceptable levels.<br />
• <strong>SCA</strong> Aschaffenburg, Germany<br />
<strong>and</strong> Djursl<strong>and</strong>, Denmark<br />
Fires in recovered paper stocks<br />
were reported in August <strong>2005</strong> at the<br />
<strong>Environmental</strong> report<br />
Aschaffenburg packaging paper mill<br />
(containerboard) in Germany <strong>and</strong> in<br />
September <strong>2005</strong> at the Djursl<strong>and</strong> mill<br />
in Denmark. Minor incidents such<br />
as these occur regularly in recovered<br />
paper stocks, especially in the summer.<br />
Local fire-fighters rapidly contained<br />
<strong>and</strong> extinguished the fires.<br />
<strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong> 21
<strong>Environmental</strong> report<br />
OPPORTUNITIES<br />
<strong>Environmental</strong> management of industrial<br />
production provides an additional<br />
perspective on resource efficiency.<br />
Measurement of energy consumption,<br />
material use, fibre yield <strong>and</strong> logistic<br />
efficiency is the basis of cost efficient<br />
production. In a resource intensive<br />
industry such as <strong>SCA</strong>, it is also the basis<br />
for good management practise. This<br />
means that, in most cases, good environmental<br />
practise goes h<strong>and</strong> in h<strong>and</strong><br />
with good economics.<br />
We have abundant examples of<br />
reductions in production waste, chemical<br />
use <strong>and</strong> energy consumption, but<br />
we have decided to present only a few<br />
examples.<br />
Timely identification of market<br />
trends, new legislation <strong>and</strong> changes in<br />
consumption patterns are all opportunities<br />
from which <strong>SCA</strong> can benefit.<br />
<strong>SCA</strong> Products<br />
One advantage of <strong>SCA</strong> products is that<br />
they consist mainly of a renewable raw<br />
material: wood fibre. <strong>SCA</strong> products<br />
store carbon in solid-wood products<br />
such lumber <strong>and</strong> furniture, sometimes<br />
for very long periods. Fibres can be<br />
used efficiently through recycled packaging<br />
<strong>and</strong> paper. When the products<br />
have outlived their usefulness, such as<br />
recovered paper, they can be incinerated<br />
for energy recovery without, in<br />
the long run, adding additional carbon<br />
dioxide to the atmosphere. Used <strong>SCA</strong><br />
products function as secondary fuel<br />
<strong>and</strong> can replace fossil fuels such as oil,<br />
gas or coal. Green electricity, which can<br />
be used by <strong>SCA</strong> facilities or sold to the<br />
The effects of hygiene <strong>and</strong> tissue during<br />
manufacturing, use, <strong>and</strong> disposal are calculated<br />
through life cycle analyses.<br />
22 <strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong>
grid, <strong>and</strong> whose heat can, in some cases,<br />
also be used for communal heating, is<br />
often produced simultaneously. Use of<br />
wood-based fuels also avoids adding<br />
carbon to the biosphere.<br />
Over the past 50 years, <strong>SCA</strong>’s forest<br />
timber stocks have grown by a net<br />
40%. The increase in <strong>SCA</strong> forest timber<br />
stock corresponds to a net increase in<br />
bound carbon dioxide of 500,000 to<br />
1 million tonnes per year. This is the<br />
result of significant investment in forest<br />
management, which is motivated by the<br />
high dem<strong>and</strong> for forest products. The<br />
consequences of including carbon reductions<br />
in the Kyoto Protocol are still<br />
unclear, but they may lead to additional<br />
forest management incentives. With its<br />
active participation in the development<br />
of FSC certification for its forests, <strong>SCA</strong><br />
wants to be a major driver of the forest<br />
<strong>and</strong> fibre industry in the future.<br />
Envisaging the entire tissue <strong>and</strong><br />
personal care product life cycle<br />
<strong>Environmental</strong> debate in Europe,<br />
in recent years, has shifted from the<br />
environmental impact of production<br />
facilities to the environmental impact<br />
<strong>and</strong> properties of products themselves.<br />
Consumers <strong>and</strong> public procurement<br />
officials to an increasing degree are basing<br />
their purchasing decisions on such<br />
criteria.<br />
<strong>Environmental</strong> organisations<br />
actively promote or advise against<br />
products on such grounds. <strong>SCA</strong> must<br />
therefore present objective evidence on<br />
the environmental impact of its products.<br />
This is especially true for personal<br />
care products such as diapers, feminine<br />
hygiene products <strong>and</strong> incontinence<br />
products.<br />
The environmental impact of<br />
Personal Care <strong>and</strong> Tissue products dur-<br />
ing manufacturing, use <strong>and</strong> disposal is<br />
measured through Life Cycle Assessment<br />
(LCA) calculations. LCA provides<br />
information about the environmental<br />
impact of a product throughout its life<br />
cycle <strong>and</strong> serves as basis for a holistic<br />
approach to environmental work. LCA<br />
are conducted on a regular basis in<br />
conjunction with the product development<br />
process.<br />
In <strong>2005</strong>, Absorbent Hygiene Products<br />
Manufacturers within EDANA,<br />
an international trade organization for<br />
manufacturers of hygiene products, of<br />
which <strong>SCA</strong> is an active member, produced<br />
for the first time a Sustainability<br />
<strong>Report</strong> on Baby Diapers <strong>and</strong> Incontinence<br />
Products.<br />
The report, based in part on life<br />
cycle analyses (LCA), clearly demonstrates<br />
the important contribution of<br />
<strong>SCA</strong> hygiene products to the quality<br />
of life for millions of people <strong>and</strong> <strong>SCA</strong>’s<br />
continuous commitment to all aspects<br />
of social progress, environmental performance<br />
<strong>and</strong> economic growth.<br />
Disposable diapers today are much<br />
thinner, lighter <strong>and</strong> more absorbent<br />
than their previous variants. As a result,<br />
they are more effective, comfortable<br />
<strong>and</strong> convenient for both infants <strong>and</strong><br />
adults.<br />
The debate about the environmental<br />
impact of disposable versus reusable<br />
diapers has been going on for quite<br />
some time. EDANA’s Sustainability<br />
<strong>Report</strong> cites the most recent investigation,<br />
a LCA analysis commissioned by<br />
the UK environmental agency <strong>and</strong> conducted<br />
by an independent consultant.<br />
The report concluded that there is no<br />
environmental advantage of one over<br />
the other, but the social advantages of<br />
disposable diapers are self-evident: they<br />
are the choice of 95% of families.<br />
<strong>Environmental</strong> report<br />
The new generation of diapers is known for<br />
improved comfort <strong>and</strong> absorption.<br />
Among other facts stated in the<br />
EDANA Sustainability <strong>Report</strong> is the<br />
exact contribution of baby diapers <strong>and</strong><br />
incontinence products to the waste<br />
flow (total solid waste) in Europe: less<br />
than half a percent (0.3–0.4%). Even in<br />
the municipal waste flow generated by<br />
households, diapers constitute only 2%<br />
of waste while garden <strong>and</strong> food waste<br />
each constitute 18 to 20% of municipal<br />
solid waste.<br />
Although diaper <strong>and</strong> incontinence<br />
product disposal presents no public<br />
health or environmental safety risk,<br />
disposal in l<strong>and</strong>fills is the least desirable<br />
disposal alternative. The best disposal<br />
options are community composting,<br />
industrial collection, <strong>and</strong> composting<br />
or various kinds of incineration that<br />
range from bulk incineration of municipal<br />
solid waste with energy recovery to<br />
selective incineration.<br />
They fulfil three distinct objectives:<br />
• volume reduction by about 90%<br />
• stabilisation of waste: the ash is inert<br />
<strong>and</strong> will not produce gas or leachates<br />
when deposited in l<strong>and</strong>fills<br />
• energy recovery generates steam<br />
for electricity production <strong>and</strong> local<br />
heating.<br />
<strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong> 23
<strong>Environmental</strong> report<br />
Mechanical sorting <strong>and</strong> biological<br />
treatment prior to incineration, called<br />
Mechanical Biological Treatment<br />
(MBT) is a hybrid technology that<br />
separates useable waste, produces<br />
energy (biogas) <strong>and</strong> reduces the weight<br />
<strong>and</strong> organic content of the waste to be<br />
deposited in l<strong>and</strong>fills or incinerated.<br />
Diaper composting is possible. Several<br />
composting operations in Europe<br />
accept diapers as part of compostable<br />
household waste. Diapers <strong>and</strong> incontinence<br />
products are, however, unsuitable<br />
for home composting.<br />
The EU Emissions Trading System<br />
<strong>SCA</strong> sees implementation of the Kyoto<br />
Protocol as a long-term opportunity<br />
<strong>and</strong> has, through one of its corporate<br />
objectives, clearly demonstrated its<br />
commitment to reducing greenhouse<br />
gas emission. To implement the Kyoto<br />
agreement, the European Union has<br />
established a greenhouse gas Emissions<br />
Trading System (ETS) that caps industrial<br />
emissions. If a facility emits more<br />
than the amount permitted, it must buy<br />
additional allowances <strong>and</strong>, in certain<br />
cases, pay fines (EUR 40 per tonne<br />
CO2). Facilities that emit less than the<br />
permitted amount can sell their allowances<br />
or credits on the market.<br />
<strong>SCA</strong>, due to previous actions<br />
including investment in combined<br />
heat <strong>and</strong> power production plants <strong>and</strong><br />
fuel switches that replace oil <strong>and</strong> coal<br />
with natural gas, bio fuel, <strong>and</strong>/or reject<br />
material, has been able to capitalize on<br />
emissions trading. In the first year of<br />
ETS implementation, <strong>SCA</strong> has earned a<br />
surplus of carbon credits. For efficiency’s<br />
sake, <strong>SCA</strong> has decided to h<strong>and</strong>le<br />
emissions trading centrally after internal<br />
arbitration between deficit surplus<br />
mills has been completed.<br />
The positive effects for <strong>SCA</strong> of<br />
ETS participation has, unfortunately,<br />
been offset by European electricity<br />
cost increases. To a significant degree,<br />
this undesirable effect of ETS has been<br />
exacerbated by energy industry consolidation<br />
<strong>and</strong> lack of competition within<br />
the energy market. When the EU Emissions<br />
Trading Scheme is reviewed, the<br />
unintended consequences of the scheme<br />
must be highlighted <strong>and</strong> the distortions<br />
addressed in order to avoid the transfer<br />
of assets from energy consuming industries<br />
to the energy sector.<br />
Green electricity<br />
Green electricity certification is a tool<br />
used in some EU countries to promote<br />
the use of renewable energy. The forest<br />
products industry is one of the greatest<br />
producers of green electricity, <strong>and</strong> <strong>SCA</strong><br />
is no exception.<br />
An advantage for <strong>SCA</strong> is that<br />
wood product residuals can be used to<br />
produce green electricity. <strong>SCA</strong> strives<br />
to use, as much as possible, all residuals<br />
as fuel for the production of thermal<br />
energy <strong>and</strong> electricity.<br />
Black liquor is the main production<br />
residual of chemical pulp production.<br />
Liquor is incinerated in a soda boiler<br />
that, in turn, feeds a turbine to produce<br />
green electricity. The steam is reused in<br />
the paper production process.<br />
In <strong>2005</strong>, <strong>SCA</strong> started constructing a<br />
new soda boiler at pulp mill in Östr<strong>and</strong>,<br />
Sweden. The boiler will incinerate<br />
wood residuals that have been removed<br />
from the cellulose during kraft pulp<br />
production. The boiler will produce<br />
steam that can be used in both production<br />
<strong>and</strong> to generate green electricity.<br />
When the new boiler is operational, it<br />
will cover all of the plant’s electricity<br />
needs.<br />
At paper mills that use recovered<br />
paper, recovered paper sludge plays an<br />
important role. An example is the Lilla<br />
Edet mill in Sweden that produces h<strong>and</strong><br />
wipes <strong>and</strong> drying paper (Tork) as well<br />
as toilet paper <strong>and</strong> kitchen rolls from<br />
both virgin <strong>and</strong> recycled fibre. The Lilla<br />
Edet turbine produces 2 MW of green<br />
electricity. The mill recycles production<br />
sludge <strong>and</strong> also plans to recycle<br />
old sludge that has been deposited in<br />
l<strong>and</strong>fills for the last 30 years.<br />
<strong>SCA</strong>’s total green electricity production<br />
capacity increased to 95 MW in<br />
<strong>2005</strong> <strong>and</strong> will increase to 120 MW<br />
when the new Östr<strong>and</strong> facility starts<br />
production.<br />
The economic potential of biobased<br />
fuel is expected to increase<br />
significantly in the future. New EU<br />
policies aimed at further promoting<br />
renewable energy sources are being<br />
discussed. There is, however, a chance<br />
that the subsidies can lead to distorted<br />
competition for raw materials such<br />
that, for example, it becomes profitable<br />
to use pulp wood for fuel.<br />
24 <strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong>
An example of a <strong>SCA</strong> packaging solution.<br />
Secondary fuel from rejects<br />
Using rejects <strong>and</strong> paper production<br />
residuals for fuel is an efficient use of resources.<br />
As the price of fossil fuel rises,<br />
switching to these alternative fuels<br />
becomes more economically attractive.<br />
<strong>SCA</strong> is also successfully converting<br />
some of these residuals into alternative<br />
commercial fuels.<br />
In <strong>SCA</strong> paper recycling facilities,<br />
ten percent of all recovered paper used<br />
by the mills every day becomes residual<br />
waste. The main reason is the presence<br />
of unwanted materials. Residuals can<br />
be coarse (metal, plastic fragments,<br />
wet resistant paper) or fine (s<strong>and</strong>, glass,<br />
staples). <strong>SCA</strong> engineers at the De Hoop<br />
mill in the Netherl<strong>and</strong>s <strong>and</strong> in Munksund,<br />
Sweden are investigating ways to<br />
decrease the amount of waste <strong>and</strong> its<br />
related costs as well as increase its value<br />
as a secondary fuel. The mills invested<br />
in a process that separates plastic from<br />
wood fibre. The drying process uses<br />
heat from paper production, heat that<br />
would otherwise be wasted. Drying the<br />
wet residual mix increases its calorific<br />
value as a secondary fuel. It also makes<br />
the material lighter, which reduces<br />
transport costs as well as space need<br />
for transport. In addition, a greater<br />
portion of metal can be removed from<br />
the mixed waste with this new process.<br />
As a result of the new process, the end<br />
material can be classified as a secondary<br />
fuel <strong>and</strong> can replace, for example, coal<br />
in German power plants.<br />
Many <strong>SCA</strong> units have completely<br />
stopped disposing residuals <strong>and</strong> sludge<br />
in l<strong>and</strong>fills. The waste is now inciner-<br />
<strong>Environmental</strong> report<br />
ated with energy recovery in cement<br />
furnaces or power plants. Part of it is<br />
used as raw material for bricks or in<br />
road construction. Similar projects are<br />
planned for the packaging paper mills<br />
(containerboard) in Witzenhausen,<br />
Germany <strong>and</strong> Obbola, Sweden. Boilers<br />
at both locations will incinerate residuals<br />
to produce steam <strong>and</strong> electricity for<br />
production processes <strong>and</strong> to supply the<br />
grid.<br />
Sawdust <strong>and</strong> wood residuals from<br />
<strong>SCA</strong> sawmills are transformed into<br />
pellets that are sold by <strong>SCA</strong> Bionorr<br />
as heating fuel – actually biofuel – to<br />
households or to large communal<br />
furnaces, which use pellets to heat<br />
public buildings <strong>and</strong> institutions such<br />
as hospitals, schools <strong>and</strong> other public<br />
buildings in Stockholm.<br />
<strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong> 25
Goal 4<br />
Code of Conduct<br />
implementation<br />
26 <strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong>
SOCIAL REPORTING<br />
For <strong>SCA</strong>, sustainable development means ensuring<br />
that our business remains viable <strong>and</strong> contributes<br />
lasting benefits to society by considering the economic,<br />
environmental, ethical <strong>and</strong> social implications of<br />
everything we do.<br />
The <strong>SCA</strong> Code of Conduct is a compilation<br />
of universal st<strong>and</strong>ards that<br />
describe <strong>SCA</strong>’s expectations for its businesses<br />
<strong>and</strong> partners regardless of location<br />
or background. It is based on <strong>SCA</strong>’s<br />
core values of Excellence, Respect<br />
<strong>and</strong> Responsibility, which are values<br />
we want our customers, employees,<br />
suppliers <strong>and</strong> investors to feel that they<br />
experience from us.<br />
The st<strong>and</strong>ards outlined in the Code<br />
of Conduct are not entirely new for<br />
<strong>SCA</strong> – they summarise policies the<br />
company has adhered to for many<br />
years. The Code, while not exhaustive,<br />
provides guidelines for <strong>SCA</strong> <strong>and</strong> its<br />
employees regarding health <strong>and</strong> safety<br />
issues, human rights (including child<br />
<strong>and</strong> forced labour), business practises,<br />
employee relations, data privacy <strong>and</strong><br />
procedures for reporting code viola-<br />
tions. The Code of Conduct applies<br />
to all employees <strong>and</strong> in all countries<br />
in which <strong>SCA</strong> operates. The complete<br />
Code of Conduct can be read at<br />
www.sca.com.<br />
This chapter describes <strong>SCA</strong>’s<br />
efforts to embed its Code of Conduct<br />
into its day-to-day business operations,<br />
to evaluate human rights compliance<br />
within its operations, to develop<br />
mechanisms to ensure Code of Conduct<br />
compliance in its supply chain, <strong>and</strong> a<br />
host of other subjects of interest to its<br />
stakeholders.<br />
At <strong>SCA</strong>, Corporate <strong>Social</strong> Responsibility<br />
(CSR) is a part of our core business<br />
process, not an appended afterthought.<br />
Hence CSR is an integral part<br />
of <strong>SCA</strong> Group management systems<br />
<strong>and</strong>, where delegated, the responsibility<br />
of operational line managers.<br />
<strong>2005</strong> Employees per region<br />
Rest of world
<strong>Social</strong> <strong>Report</strong>ing<br />
Implementation<br />
Pilot Code of Conduct survey<br />
For 2004-<strong>2005</strong>, one of CSR’s targets<br />
was to ensure enhanced Code of Conduct<br />
awareness among <strong>SCA</strong> employees.<br />
To measure progress toward this target,<br />
a pilot survey was undertaken in <strong>2005</strong><br />
to gage how Code of Conduct implementation<br />
has worked in practise. The<br />
survey was designed to:<br />
• evaluate the level of Code implementation.<br />
• evaluate the effectiveness of the methodology<br />
used to inform <strong>and</strong> train<br />
employees about the Code.<br />
• to obtain a picture of Code compliance<br />
throughout the Group.<br />
The pilot survey was voluntary <strong>and</strong><br />
confidential. Eight hundred <strong>SCA</strong><br />
employees were invited to participate<br />
in the survey. Five hundred seventyfour<br />
(72% of those eligible) responded. Results:<br />
98% were familiar with the Code,<br />
80% had undergone Code awareness<br />
training, <strong>and</strong> 76% had found information/training<br />
received to be effective.<br />
Employee morale <strong>and</strong> opinions on<br />
particular subjects continue to be monitored<br />
through short ‘pulse’ surveys,<br />
targeted at a representative sample<br />
of employees. For example in <strong>2005</strong>,<br />
<strong>SCA</strong> Packaging Munksund, Sweden<br />
surveyed all employees on health, lifestyle<br />
<strong>and</strong> work environment. 95% of<br />
employees responded <strong>and</strong> all units have<br />
developed activity plans to improve all<br />
identified risk areas.<br />
Ensuring that the Code of Conduct<br />
is a living document throughout the<br />
Group requires continuous, ongoing<br />
effort to reinforce <strong>and</strong> rebuild awareness<br />
of its principles. To further support<br />
implementation, a Code of Conduct<br />
e-learning training course was launched<br />
in eight languages in <strong>2005</strong> to support<br />
increased Code awareness <strong>and</strong> underst<strong>and</strong>ing<br />
among <strong>SCA</strong> employees. Managers<br />
also received support through<br />
an online Code of Conduct toolbox<br />
that consolidates all information <strong>and</strong><br />
tools currently available, including a<br />
step-by-step guide for putting Code of<br />
Conduct principles into practise at the<br />
local level.<br />
GRIEVANCE AND COMPLAINTS<br />
PROCEDURE<br />
Violations of the Code of Conduct<br />
Employees are encouraged to report<br />
ethical concerns or suspected violations<br />
of the <strong>SCA</strong> Code of Conduct to<br />
their line manager or to their human<br />
resources department. In <strong>2005</strong>, a formal<br />
procedure for reporting suspected<br />
violations of the <strong>SCA</strong> Code of Conduct<br />
was developed <strong>and</strong> implemented.<br />
This system includes an e-mail service<br />
that allows employees to report their<br />
concerns directly to the Group human<br />
resources director.<br />
A small number of minor violations<br />
were reported through this procedure<br />
in <strong>2005</strong>. All reports were thoroughly<br />
investigated <strong>and</strong> the results reported to<br />
<strong>and</strong> reviewed by Group management.<br />
One employee was dismissed following<br />
investigation of a Code of Conduct<br />
violation in Slovakia.<br />
Eighty percent of survey respondents had undergone<br />
training on the Code of Conduct <strong>and</strong> 76% of those<br />
found the information to be effective.<br />
28 <strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong>
Health <strong>and</strong> safety<br />
An area where <strong>SCA</strong> strives for continuous<br />
improvement is the health <strong>and</strong><br />
safety of employees <strong>and</strong> contractors<br />
who work at our sites. Every injury or<br />
death at an <strong>SCA</strong> place of work is one<br />
too many. In <strong>2005</strong>, <strong>SCA</strong> made further<br />
progress in turning its Health <strong>and</strong><br />
Safety Policy into action. The complete<br />
<strong>SCA</strong> Health <strong>and</strong> Safety Policy can be<br />
found at www.sca.com.<br />
Performance monitoring is key to<br />
meeting the objective of continuous<br />
improvement. Work-related injuries<br />
<strong>and</strong> illnesses are reported at all facilities<br />
throughout the <strong>SCA</strong> Group with<br />
particular attention to incidents that<br />
require time away from work (Lost<br />
Time Accidents). A root cause analysis<br />
is undertaken for all accidents or unsafe<br />
conditions.<br />
In <strong>2005</strong>, work continued to further<br />
embed health <strong>and</strong> safety considerations<br />
into our operations. Between February<br />
<strong>and</strong> June, all <strong>SCA</strong> Packaging<br />
Containerboard Mills were audited<br />
by an internal audit team comprised<br />
of <strong>SCA</strong> Packaging Containerboard<br />
Safety Managers, <strong>and</strong> an external, accredited<br />
consultant, using the international<br />
st<strong>and</strong>ard Occupational Health<br />
& Safety Assessment Series (OHSAS<br />
18001) as criteria. The audit programme<br />
included additional emphasis<br />
on health issues. Results showed noticeable<br />
improvement in health <strong>and</strong> safety<br />
performance when compared with the<br />
results of a previous audit undertaken<br />
in 2001. This internal audit process is<br />
valuable for <strong>SCA</strong> because it enabled<br />
mills that met OHSAS 18001 criteria<br />
to be certified. It also trained <strong>SCA</strong><br />
safety managers in auditing protocol<br />
<strong>and</strong> practise. In addition, it provided<br />
an opportunity for the sharing of Best<br />
Practises throughout the division.<br />
Increased training <strong>and</strong> better<br />
communication are key elements of<br />
ongoing <strong>SCA</strong> activity to improve health<br />
<strong>and</strong> safety performance. In <strong>2005</strong>, <strong>SCA</strong><br />
Tissue Europe continued the roll out of<br />
crisis management training throughout<br />
Europe. The training, targeted<br />
to regional <strong>and</strong> local management, is<br />
designed to reduce the risk of crisis incidents<br />
<strong>and</strong>, in the event of an incident,<br />
to safeguard the business by limiting<br />
the incident’s negative impact on<br />
employees, customers, <strong>SCA</strong> <strong>and</strong> other<br />
stakeholders.<br />
Other examples of ongoing activities<br />
include <strong>SCA</strong> Songjiang in Shanghai,<br />
China where work was undertaken in<br />
<strong>2005</strong> to improve working conditions<br />
through better lighting <strong>and</strong> internal<br />
remodelling. A basketball court for<br />
employees was built. The changes lead<br />
to significantly improved morale <strong>and</strong><br />
motivation amongst employees <strong>and</strong> the<br />
employee turnover rate declined from<br />
5.6% to 0.6% in <strong>2005</strong>.<br />
At <strong>SCA</strong> Zhabei in Shanghai,<br />
China annual medical assessments are<br />
conducted on all employees. <strong>SCA</strong> Asia<br />
Pacific is looking to exp<strong>and</strong> this practise<br />
to all Asian packaging plants.<br />
Legionella bacteria<br />
Legionella bacteria are found naturally<br />
in the environment, usually in water.<br />
Legionella bacteria thrive best in warm<br />
water such as that found in hot tubs,<br />
cooling towers, hot water tanks, large<br />
plumbing systems, or parts of large<br />
building air-conditioning systems.<br />
Legionella bacteria can give rise to<br />
Legionnaires’ disease. Humans can<br />
be infected with Legionnaires’ disease<br />
when they inhale mist or vapour (small<br />
droplets of water in the air) that has<br />
been contaminated with the bacteria,<br />
<strong>Social</strong> <strong>Report</strong>ing<br />
for example, steam from a spa whirlpool<br />
that has not been properly cleaned<br />
<strong>and</strong> disinfected.<br />
Tests at wastewater treatment<br />
plants at several paper mills across the<br />
<strong>SCA</strong> Group in <strong>2005</strong> revealed, in some<br />
instances, higher than desired levels of<br />
Legionella bacteria. This resulted in<br />
Group-wide focus on potential risks<br />
<strong>and</strong> the implementation of remedial action<br />
where necessary to separate water<br />
flows, identify methods to curb bacteria<br />
propagation <strong>and</strong> to regularly sanitise<br />
risk-prone areas of the plant.<br />
Industry-wide research <strong>and</strong> investigations<br />
have been initiated in several<br />
countries including Sweden where the<br />
Swedish Forest Industries Federation<br />
<strong>and</strong> the Swedish Institute for Infectious<br />
Disease Control have initiated an investigation<br />
of 46 mills with bio-treatment<br />
plants. The results <strong>and</strong> subsequent<br />
recommendations of these studies will<br />
be communicated to all <strong>SCA</strong> mills.<br />
Health <strong>and</strong> safety certification<br />
<strong>SCA</strong> has committed to achieving international<br />
st<strong>and</strong>ard Occupational Health<br />
& Safety Assessment Series (OHSAS<br />
18001) certification for several manufacturing<br />
units. In addition to previously<br />
certified mills, the New Hythe mill in<br />
the United Kingdom <strong>and</strong> the Witzenhausen<br />
mill in Germany were certified<br />
in <strong>2005</strong>. <strong>SCA</strong> Songjiang in Shanghai as<br />
well as several other mills are expected<br />
to be certified in 2006.<br />
Safe behaviour awards<br />
<strong>SCA</strong> strives to actively recognize safe<br />
behaviour. Awards for safety-related<br />
achievements are made each year to<br />
encourage <strong>and</strong> motivate greater safety<br />
awareness throughout the <strong>SCA</strong> Group.<br />
In <strong>SCA</strong> Americas, the first recipient of<br />
<strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong> 29
<strong>Social</strong> <strong>Report</strong>ing<br />
HEALTH & SAFETY AWARDS<br />
<strong>SCA</strong> Packaging Containerboard<br />
Europe (<strong>2005</strong>)<br />
‘BEST OF LAST YEAR’<br />
Health<br />
<strong>SCA</strong> Packaging Djursl<strong>and</strong>,<br />
Denmark<br />
Safety<br />
<strong>SCA</strong> Packaging Aschaffenburg,<br />
Germany<br />
Health & Safety Champion<br />
<strong>SCA</strong> Packaging Aschaffenburg,<br />
Germany<br />
‘BEST OF THE LAST FIVE YEARS’<br />
Health<br />
<strong>SCA</strong> Packaging Djursl<strong>and</strong>,<br />
Denmark<br />
Safety<br />
<strong>SCA</strong> Packaging Aschaffenburg,<br />
Germany<br />
Health & Safety Champion<br />
<strong>SCA</strong> Packaging Djursl<strong>and</strong>,<br />
Denmark<br />
IR – Incident rate<br />
2001 2002 2003 2004 <strong>2005</strong><br />
Hygiene 3.4 2.5 2.9 2.2 2.3<br />
Packaging 2.2 2.4 1.8 1.7 1.7<br />
Forest Products 1.9 2.3 2.4 2.0 2.4<br />
Americas* 1.6 1.4 1.7 2.2<br />
<strong>SCA</strong> Group 2.8 2.3 2.3 1.9 2.0<br />
*The 2002–2004 results reflect performance of N. American<br />
businesses only. The <strong>2005</strong> result reflects performance of<br />
the entire Americas Business Group<br />
ASR – Accident Severity Rate<br />
2001 2002 2003 2004 <strong>2005</strong><br />
<strong>SCA</strong> Group 20 20 18 21 21<br />
the newly created President’s Award for<br />
Safety was the Sun Prairie mould shop.<br />
The President’s Award for Safety is a<br />
recognition programme developed to<br />
reward a facility whose safety process<br />
is determined to be the ‘best of the best’<br />
following a rigorous, highly-competitive<br />
evaluation process.<br />
Safety results<br />
More than 60 <strong>SCA</strong> businesses experienced<br />
no accidents or injuries in <strong>2005</strong>.<br />
<strong>SCA</strong> Business Groups continue to set<br />
challenging improvement targets, <strong>and</strong><br />
the results of efforts to develop an improved<br />
culture of safety are becoming<br />
evident. In <strong>2005</strong>, increased emphasis<br />
was placed on proactive indicators such<br />
as ‘near miss’ analyses <strong>and</strong> an increased<br />
number of internal safety audits.<br />
<strong>SCA</strong> continuously measures, reports,<br />
<strong>and</strong> publicises key indicators for all<br />
operations:<br />
• Number of Lost Time Accidents (LTA)<br />
• Number of Days Lost (DLA)<br />
• Accident Severity Rate (ASR)<br />
• Incidence Rate (IR)<br />
• Frequency Rate (FR)<br />
In <strong>SCA</strong>’s hygiene operations, the<br />
number of LTAs declined in <strong>2005</strong> along<br />
with the Accident Severity Rate(ASR),<br />
which declined from 19 to 18 days.<br />
The <strong>SCA</strong> Group Incident Rate (IR)<br />
increased marginally in <strong>2005</strong> (see above<br />
table); the five-year trend, however,<br />
indicates a 29% decline. This represents<br />
significant improvement for the<br />
<strong>SCA</strong> Group. The <strong>SCA</strong> Group Accident<br />
Severity Rate (ASR) remained the same<br />
in <strong>2005</strong>, while the relative number of<br />
accidents appears to be declining. The<br />
Frequency Rate (FR), defined as incidents<br />
<strong>and</strong> accidents per million hours<br />
worked, ranged from 7 to 19 amongst<br />
Business Groups. The average for the<br />
<strong>SCA</strong> Group is 12.<br />
Most regrettably, in <strong>2005</strong>, one <strong>SCA</strong><br />
employee lost his life as a result of an<br />
accident. On 8 November <strong>2005</strong>, a fatal<br />
accident occurred at the Östr<strong>and</strong> pulp<br />
mill in Sweden where an employee died<br />
after being crushed while transporting<br />
an oil barrel in an elevator that was not<br />
designed for this purpose.<br />
Evaluation of this fatality, as well<br />
as all other accidents <strong>and</strong> incidents,<br />
indicates that no new systems are<br />
required, but instead, that more work<br />
needs to done to improve operational<br />
discipline to ensure that the systems<br />
that are in place are followed <strong>and</strong><br />
understood by all employees, <strong>and</strong> that<br />
lessons learned are shared throughout<br />
the organization.<br />
Conditional verdict following<br />
fatality in 2003<br />
In 2003, a <strong>SCA</strong> employee tragically lost<br />
his life as the result of an accident in the<br />
drying machine at the Östr<strong>and</strong> mill in<br />
Sweden. The incident led to prosecution<br />
of the supervisor who was responsible<br />
for the unit’s work environment for violation<br />
of occupational health <strong>and</strong> safety<br />
laws. In <strong>2005</strong>, the supervisor was found<br />
guilty <strong>and</strong> fined. The court determined<br />
that <strong>SCA</strong> had not done a sufficient risk<br />
analysis of this work environment <strong>and</strong><br />
should have ensured that adequate safety<br />
equipment was available <strong>and</strong> used.<br />
<strong>SCA</strong> has consequently taken action at<br />
all mills to prevent the occurrence of a<br />
similar accident.<br />
Striving for continuous improvement<br />
<strong>SCA</strong> Asia Pacific continuously strives<br />
to increase safety <strong>and</strong> improve working<br />
conditions in all its facilities draw-<br />
30 <strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong>
ing on best practises already in place<br />
within <strong>SCA</strong>. In <strong>2005</strong>, <strong>SCA</strong> Asia Pacific<br />
invested significant resources to ensure<br />
the full compliance of China operations<br />
with <strong>SCA</strong>’s Health <strong>and</strong> Safety Policy<br />
Guidelines. Numerous measures were<br />
taken to improve safety. Weekly safety<br />
briefings that included safety guideline<br />
reminders <strong>and</strong> discussion of any<br />
possible incidents were held. Signs,<br />
safety awareness training sessions <strong>and</strong><br />
management audits are also used. This<br />
approach is causing a change in the culture<br />
<strong>and</strong> improving attitudes towards<br />
safety <strong>and</strong> working conditions in <strong>SCA</strong><br />
Asia Pacific operations.<br />
At <strong>SCA</strong> packaging plants in China,<br />
weekly audits were introduced in <strong>2005</strong>.<br />
A team walked the site <strong>and</strong> photographed<br />
examples of good <strong>and</strong> poor<br />
tidiness <strong>and</strong> safety. Each unit received a<br />
score <strong>and</strong> plant management reviewed<br />
the results with the aim of promoting<br />
continuous improvement. A plastic reel<br />
stripper (see photo) was introduced<br />
upon discovering that a disproportionately<br />
large number of h<strong>and</strong> <strong>and</strong> limb<br />
injuries/cuts was occurring as a result of<br />
the use of h<strong>and</strong>made cutting tools.<br />
Formal safety training for production<br />
management <strong>and</strong> supervisors<br />
was completed in <strong>2005</strong>. Chinese<br />
governmental fire <strong>and</strong> safety officials<br />
were invited to present lectures on<br />
legislative changes in China <strong>and</strong> to<br />
provide practical advice. Following<br />
the training session on fire, the <strong>SCA</strong><br />
Suzhou Cartons plant conducted its<br />
own fire training exercise. Employees<br />
evacuated the site <strong>and</strong> practised using<br />
fire equipment. Several days later at the<br />
start of the Chinese New Year, a bus<br />
that was transporting employees from<br />
the Suzhou site caught fire <strong>and</strong> within<br />
five minutes was completely destroyed.<br />
A plastic reel stripper is used, instead of a stripper in metal in order to avoid injuries.<br />
Using the fire training they had recently<br />
practised, passengers evacuated the bus<br />
with no casualties.<br />
A health <strong>and</strong> safety awareness<br />
campaign that covers safe interventions<br />
(maintenance, jams <strong>and</strong> stoppages, set<br />
up <strong>and</strong> cleaning) in the workplace <strong>and</strong><br />
measures to prevent accidents was conducted<br />
in October <strong>2005</strong> in packaging,<br />
recycling <strong>and</strong> transport businesses in<br />
the UK <strong>and</strong> Irel<strong>and</strong> as part of European<br />
Safety Week activities.<br />
In <strong>SCA</strong> Packaging Middle Europe,<br />
several new safety interventions were<br />
implemented in <strong>2005</strong>, e.g. private<br />
mobile telephones were banned on<br />
the production floor. External safety<br />
audits were also conducted during the<br />
year along with the display of speciallydesigned<br />
safety promotion posters at<br />
each machine centre.<br />
All <strong>SCA</strong> plants have implemented<br />
<strong>Social</strong> <strong>Report</strong>ing<br />
programmes <strong>and</strong> activities to promote<br />
health. The programmes involve a wide<br />
range of initiatives ranging from gym<br />
memberships to seminars on nutrition<br />
<strong>and</strong> cooking to physician <strong>and</strong> physiothera-<br />
pist-developed personal programmes.<br />
Drug testing<br />
For several years <strong>SCA</strong>’s Ortviken <strong>and</strong><br />
Östr<strong>and</strong> mills tested employees for<br />
drugs as a way to proactively prevent<br />
accidents. The testing has the full<br />
support of local trade unions. All<br />
prospective employees are required to<br />
submit to drug testing as a condition<br />
of employment. R<strong>and</strong>om drug tests are<br />
carried out routinely. Any employee<br />
found to have a drug problem is offered<br />
rehabilitation <strong>and</strong> support. <strong>SCA</strong> policy<br />
requires all units to offer a rehabilita-<br />
tion programme to employees with<br />
drug problems.<br />
<strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong> 31
<strong>Social</strong> <strong>Report</strong>ing<br />
Goal 5<br />
Code of Conduct<br />
Compliance<br />
32 <strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong>
Employee relations<br />
Freedom of association<br />
<strong>SCA</strong> recognizes the right of employees<br />
to freely associate with <strong>and</strong> join trade<br />
unions. In <strong>2005</strong>, more than 70% of<br />
<strong>SCA</strong>’s 50,916 employees were covered<br />
by collective bargaining agreements.<br />
<strong>SCA</strong> businesses are expected, at all<br />
times, to comply with local employment<br />
legislation <strong>and</strong> to treat employees<br />
in accordance with <strong>SCA</strong>’s core values<br />
<strong>and</strong> Code of Conduct. <strong>SCA</strong>’s policy is<br />
to dialogue with employees on major<br />
organisational changes <strong>and</strong> to ensure<br />
that processes for addressing issues are<br />
in place at all locations.<br />
During the year, the average<br />
number of employees in the Group<br />
was 50,916, compared to 49,914 in<br />
2004. In <strong>2005</strong>, 4,860 employees joined<br />
<strong>SCA</strong> while 5,154 employees left due<br />
to retirement, restructuring, etc. A<br />
breakdown of number of employees by<br />
region is presented in the table below.<br />
Diversity<br />
<strong>SCA</strong> is committed to creating a diverse<br />
workforce <strong>and</strong> to providing a work<br />
environment in which everyone is<br />
treated fairly <strong>and</strong> with respect, has an<br />
opportunity to contribute to business<br />
success, <strong>and</strong> to realize individual<br />
potential. In real terms, this means<br />
harnessing the unique skills, experience<br />
<strong>and</strong> perspectives each individual brings<br />
to the workplace <strong>and</strong> recognizing that<br />
these differences are important for our<br />
success. <strong>SCA</strong> employment is offered<br />
<strong>and</strong> provided on the basis of merit.<br />
We are firmly oppose employment<br />
discrimination <strong>and</strong> are committed to<br />
supporting all employees’ right to work<br />
in an environment free of harassment<br />
<strong>and</strong> intimidation.<br />
As in previous years, <strong>SCA</strong>, in <strong>2005</strong>,<br />
conducted a Management Diversity<br />
Survey aimed at identifying the extent<br />
of diversity <strong>and</strong> its patterns among<br />
<strong>SCA</strong>’s senior management. Distribution<br />
by nationality, age <strong>and</strong> gender was examined.<br />
The results indicate that <strong>SCA</strong>’s<br />
most senior 300 managers represent 25<br />
nationalities (2004:21). Ninety percent<br />
(2004: 93%) are male. Swedish nationals<br />
account for 32% of the total, while<br />
UK nationals comprise the second largest<br />
group at 13%.<br />
In 2004, <strong>SCA</strong> exp<strong>and</strong>ed its diversity<br />
survey to cover the Group’s top 1,000<br />
positions. The exp<strong>and</strong>ed survey was<br />
conducted again in <strong>2005</strong> <strong>and</strong> showed<br />
that <strong>SCA</strong>’s top 1,000 positions represent<br />
34 (2004: 29) nationalities. Of the<br />
total, 88% are male (2004: 87%) <strong>and</strong><br />
87% are under age 55. Swedish nationals<br />
account for 22% (2004: 27%) of<br />
the total, while UK nationals comprise<br />
the second-largest group at 15% (2004:<br />
13%).<br />
In <strong>2005</strong>, approximately 25% of<br />
<strong>SCA</strong> employees were female. There<br />
Key figures employees <strong>2005</strong><br />
EU excl. Rest of Asia Rest of<br />
SEKm Sweden Sweden Europe Americas Pacific world Total<br />
Sales 6,851 60,196 3,488 16,848 8,079 923 96,385<br />
Employees 6,288 26,450 714 9,690 7,512 262 50,916<br />
Women, % 23% 21% 23% 27% 39% 21% 25%<br />
Salaries 2,288 9,784 278 2,333 997 15 15,695<br />
<strong>Social</strong> costs 1,025 2,467 52 711 127 5 4,387<br />
Other 16%<br />
Mexican 2%<br />
Belgian 2%<br />
Other 16%<br />
Belgian 3%<br />
Danish 4%<br />
French 5%<br />
<strong>Social</strong> reporting<br />
<strong>2005</strong>, Nationalities of <strong>SCA</strong> top 300<br />
management<br />
Total: 25 nationalities. 90 % male, 10 % female.<br />
<strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong> 33<br />
Italian 4%<br />
French 5%<br />
Dutch 6%<br />
American 8%<br />
Italian 5%<br />
Dutch 6%<br />
American 12%<br />
55 years, 13%<br />
German 12%<br />
Swedish 32%<br />
British 13%<br />
<strong>2005</strong>, Nationalities of <strong>SCA</strong> top 1,000<br />
management<br />
Total: 34 nationalities. 88 % male, 12 % female.<br />
<strong>2005</strong>, Age structure <strong>SCA</strong> top 1,000<br />
management<br />
Swedish 22%<br />
British 15%<br />
German 12%<br />
35–55 years, 80%
<strong>Social</strong> reporting<br />
<strong>SCA</strong> is committed to developing a diverse workforce <strong>and</strong> to providing a work environment<br />
in which everyone is treated fairly <strong>and</strong> with respect, <strong>and</strong> has the opportunity to contribute<br />
to business success <strong>and</strong> realize individual potential.<br />
were significant regional differences,<br />
with women representing about 22%,<br />
27%, <strong>and</strong> 39% of full-time employees<br />
in Europe, the Americas <strong>and</strong> Asia<br />
Pacific, respectively.<br />
Examples of ongoing programmes<br />
to address employment equality <strong>and</strong><br />
diversity issues include <strong>SCA</strong> Packaging<br />
Middle Europe, which has an all-female<br />
sales team in Hungary <strong>and</strong> a predominantly<br />
female international sales team<br />
in the Czech Republic.<br />
At least three <strong>SCA</strong> businesses won<br />
awards in <strong>2005</strong>. <strong>SCA</strong> Packaging Czech<br />
Republic was selected as one of the best<br />
employers in the region in <strong>2005</strong> in the<br />
Ustecky region of the Czech Republic.<br />
<strong>SCA</strong> Sancella in Mexico, with approximately<br />
300 employees, was selected<br />
in <strong>2005</strong> by the Great Places to Work<br />
Institute as one of the top 50 places to<br />
work in Mexico. The <strong>SCA</strong> Tissue plant<br />
in Monterrey, Mexico won a local<br />
government Place of Integrated Labour<br />
award in <strong>2005</strong> for its employment poli-<br />
cies, which have led to the employment<br />
of individuals with different abilities.<br />
Developing capabilities<br />
<strong>SCA</strong> commits substantial resources<br />
annually to creating opportunities for<br />
employee personal growth <strong>and</strong> professional<br />
development. Each Business<br />
Group has training <strong>and</strong> development<br />
programmes tailored to its needs. These<br />
include training courses, international<br />
assignments, mentoring, team development<br />
days, workshops, seminars<br />
<strong>and</strong> electronic learning. In <strong>2005</strong>, skill<br />
enhancement activities were carried out<br />
at a total cost of approximately SEK<br />
170 million.<br />
<strong>SCA</strong> Forest Products provides employees<br />
with a range of opportunities<br />
from the opportunity to complete their<br />
high school education to leadership<br />
training for managers <strong>and</strong> supervisors.<br />
In <strong>2005</strong>, <strong>SCA</strong> Forest Products also initiated<br />
a new trainee programme in Sweden.<br />
Interest amongst students was sig-<br />
nificant <strong>and</strong> over 900 applications were<br />
received. From this group, six trainees<br />
were selected by <strong>SCA</strong> to participate in<br />
an 18-month programme that includes<br />
training <strong>and</strong> development opportunities<br />
at different <strong>SCA</strong> locations.<br />
In <strong>2005</strong>, <strong>SCA</strong> Packaging Europe<br />
started a series of development programmes<br />
for its 150 most senior managers.<br />
Each practical, action-oriented<br />
programme addresses the philosophy<br />
<strong>and</strong> principles of change, continuous<br />
improvement <strong>and</strong> cross-functional<br />
teamwork.<br />
In <strong>2005</strong>, <strong>SCA</strong> Asia Pacific Packaging<br />
middle <strong>and</strong> senior managers from<br />
16 packaging plants participated in a<br />
development exercise to help them better<br />
underst<strong>and</strong> their skills <strong>and</strong> capabilities.<br />
In addition to various functional<br />
development programmes <strong>and</strong> initiatives,<br />
<strong>SCA</strong> Personal Care has chosen<br />
to formalise its approach to leadership<br />
development <strong>and</strong> succession management<br />
by establishing a Leadership<br />
Pipeline. The Pipeline describes the<br />
different levels of leadership within the<br />
organization <strong>and</strong> the corresponding<br />
skills required by leaders to drive <strong>and</strong><br />
support business goals <strong>and</strong> strategies.<br />
To increase internal knowledge<br />
<strong>and</strong> better manage supply chain<br />
processes, the <strong>SCA</strong> Packaging Supply<br />
Chain department conducted a series<br />
of 25 specially designed education <strong>and</strong><br />
training courses in 2004 <strong>and</strong> <strong>2005</strong>.<br />
Over 230 employees have attended the<br />
courses to date.<br />
Other training undertaken in <strong>2005</strong><br />
includes English language training,<br />
Master of Machines training <strong>and</strong><br />
data privacy training. Comprehensive<br />
Six Sigma quality training was also<br />
conducted in <strong>2005</strong>. Six Sigma is a<br />
34 <strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong>
disciplined, data-driven methodology<br />
for eliminating defects in any process.<br />
At <strong>SCA</strong>, it is used to improve existing<br />
processes that fall below specification<br />
<strong>and</strong>/or that require incremental<br />
improvement.<br />
Employee dialogue<br />
During <strong>2005</strong>, we consulted employees<br />
on a wide range of business issues<br />
<strong>and</strong> we met regularly with our employee<br />
works councils to discuss Group<br />
performance <strong>and</strong> other significant<br />
issues.<br />
In April 2004, <strong>SCA</strong> signed a global<br />
framework agreement with ICEM<br />
(International Federation of Chemical,<br />
Energy, Mine <strong>and</strong> General Workers’<br />
Unions which has more than 20 million<br />
members worldwide), the Swedish Paper<br />
Workers’ Union (which in this case<br />
represents all Swedish trade unions)<br />
<strong>and</strong> <strong>SCA</strong>’s European Works Council.<br />
The agreement is based on the Code of<br />
Conduct <strong>and</strong> expresses <strong>SCA</strong>’s willingness<br />
to promote co-operation <strong>and</strong> social<br />
responsibility within its worldwide<br />
operations <strong>and</strong> to act as a responsible<br />
employer. Areas covered by the agreement<br />
are reviewed annually in a joint<br />
meeting with the signatories. The <strong>2005</strong><br />
review concluded that no violations of<br />
the agreement had occurred.<br />
Restructuring <strong>and</strong> reorganisation<br />
Openness <strong>and</strong> transparency are key<br />
factors to minimising disruption <strong>and</strong><br />
maximising re-employment opportunities<br />
during restructuring. Unavoidable<br />
restructuring in <strong>2005</strong> resulted in the<br />
termination of approximately 2,000<br />
employees.<br />
<strong>SCA</strong> is committed to providing<br />
effective support to all employees<br />
affected by the changes. The first step<br />
in the restructuring procedure is for<br />
Business Group management teams to<br />
inform line management at the affected<br />
plants. Line management then informs<br />
its teams. <strong>SCA</strong> also notifies the <strong>SCA</strong><br />
European Works Council <strong>and</strong> other<br />
employee representatives in accordance<br />
with <strong>SCA</strong> policy, national legislation<br />
<strong>and</strong> collective agreements. Employees<br />
are informed early in the process about<br />
the reasons for the changes, expected<br />
consequences, <strong>and</strong> how the changes<br />
will be implemented. The greatest<br />
challenge in plant closings is involving<br />
employees in subsequent decisionmaking.<br />
<strong>Social</strong> plans, which address both<br />
Group <strong>and</strong> individual needs, are created.<br />
Typically our social programmes<br />
contain employment search assistance<br />
combined with financial support, <strong>and</strong><br />
assistance with further education.<br />
Agreements, which include severance<br />
pay <strong>and</strong> provisions that address the<br />
search for alternate employment, are<br />
made with affected employees. Services<br />
available include individual career<br />
counselling, job searches, workshops<br />
<strong>and</strong> administrative support. Often<br />
local employers are also contacted.<br />
<strong>SCA</strong> also assists new employers by<br />
providing training to increase their<br />
competence in their new place of work.<br />
Early retirement schemes are also<br />
offered. The purpose of this interaction<br />
is to avoid disruption of business<br />
operations during the closing process<br />
through complete co-operation of<br />
the workforce. <strong>SCA</strong> believes that a<br />
responsible attitude also yields other<br />
benefits such as enhanced staff loyalty<br />
<strong>and</strong> a positive reputation as a responsible<br />
employer.<br />
During <strong>2005</strong>, <strong>SCA</strong> Packaging<br />
Europe held courses for project leaders<br />
<strong>Social</strong> reporting<br />
involved in restructuring <strong>and</strong> reorganisation<br />
programmes. The courses were<br />
designed to cover key tasks involved in<br />
a plant closing <strong>and</strong> the transfer of operations.<br />
The training includes project<br />
planning, customer contact, transition<br />
<strong>and</strong> move management, communication,<br />
personnel issues, <strong>and</strong> post-closing<br />
tasks.<br />
EXAMPLES OF CLOSINGS IN <strong>2005</strong><br />
<strong>SCA</strong> Packaging Argovia, Oftringen,<br />
Switzerl<strong>and</strong><br />
Immediately following the decision,<br />
the <strong>SCA</strong> Packaging Argovia management<br />
team developed the first draft of<br />
a social plan <strong>and</strong> on 30 August <strong>2005</strong>,<br />
the intended closing of Argovia was<br />
communicated to all employees.<br />
Employment office representatives<br />
presented available training opportunities<br />
in areas such as applying<br />
for a job, interview techniques, etc.<br />
In September, a Job Wall, a central<br />
location where job openings were<br />
posted, was created. Tips on applying<br />
for jobs, job hunting information,<br />
photographs, <strong>and</strong> examples of good<br />
applications were also posted. A Job<br />
Centre was opened in mid-September.<br />
It was a large meeting room that<br />
contained computer workstations<br />
where employees could work on their<br />
job applications. At Argovia, employees<br />
could meet two days a week with<br />
consultants from the local employment<br />
office. Many employees used Job<br />
Centre services <strong>and</strong> additional help<br />
was always available in the Human<br />
Resources or Communications departments.<br />
Just six weeks later, more than<br />
40% of the Argovia employees had a<br />
personal solution or a new job. The<br />
Job Centre will remain open until the<br />
middle of 2006.<br />
<strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong> 35
<strong>Social</strong> reporting<br />
Keon Park factory, Victoria, Australia<br />
This closure went very smoothly with<br />
no industrial action <strong>and</strong> little media<br />
attention. From a human sources perspective,<br />
the unions were satisfied with<br />
<strong>SCA</strong>’s well-planned implementation<br />
process with its strong focus on support<br />
for affected employees. Activities<br />
included:<br />
Outplacement support programmes,<br />
financial counselling, employee assistance<br />
programme, job fair, regular reward<br />
<strong>and</strong> recognition activities to keep<br />
employees motivated. Temporary employment<br />
agency representatives were<br />
brought on-site to register employees<br />
<strong>and</strong> establish job leads. Last day of work<br />
activities were designed to be uplifting<br />
rather than sorrowful. The collective<br />
impact of all these activities was cooperation<br />
<strong>and</strong> commitment. Employees<br />
exceeded high production targets each<br />
month for the four months prior to<br />
closing. <strong>SCA</strong> worked hard to treat all<br />
employees with respect.<br />
<strong>SCA</strong> Packaging Djursl<strong>and</strong>, Denmark<br />
Following the August announcement<br />
of the Djursl<strong>and</strong> mill closing, management<br />
<strong>and</strong> employee negotiations were<br />
started with the aim of agreeing on a<br />
redundancy scheme. The atmosphere<br />
of the negotiations was cordial <strong>and</strong><br />
an agreement was reached in mid-<br />
September. A key point of the agreement<br />
was continuation of production<br />
until 31 March 2006. A consultant was<br />
hired to help clarify educational needs<br />
for future careers. 110 of 140 employees<br />
met with the consultant in October.<br />
Djursl<strong>and</strong> employees have been cooperative<br />
regarding <strong>SCA</strong>’s decision to close<br />
the mill. The atmosphere at the mill is<br />
very positive, <strong>and</strong> we anticipate that<br />
a majority of the employees will stay<br />
<strong>SCA</strong> is committed to providing the most effective support possible to all employees affected by business<br />
changes such as plant closings.<br />
until 31 March 2006. Co-operation between<br />
management <strong>and</strong> the Employee<br />
Works Council continues in accordance<br />
with the <strong>SCA</strong> Code of Conduct with the<br />
mutual respect of all parties involved.<br />
Remuneration<br />
<strong>SCA</strong> underst<strong>and</strong>s that remuneration<br />
practises reflect market conditions in<br />
our countries <strong>and</strong> regions of operation<br />
<strong>and</strong> that remuneration must comply<br />
with relevant legislation <strong>and</strong> with<br />
the <strong>SCA</strong> Code of Conduct. All <strong>SCA</strong><br />
employees in <strong>2005</strong> earned more than<br />
the stipulated minimum wage in their<br />
countries of employment.<br />
Terms of employment<br />
Since 1 January <strong>2005</strong>, the Code of<br />
Conduct has been an integral <strong>and</strong><br />
regular part of <strong>SCA</strong> employment<br />
contracts.<br />
36 <strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong>
Business practise<br />
Suppliers<br />
At every stage of our dealings with<br />
suppliers – from selection <strong>and</strong> consultation<br />
to payment – <strong>SCA</strong> is committed to<br />
the principles outlined in our Code of<br />
Conduct. The global scale of our supply<br />
procurement presents opportunities to<br />
influence the social <strong>and</strong> environmental<br />
footprint of our suppliers.<br />
<strong>SCA</strong> will work to ensure that the<br />
supplier selection process is not only<br />
fact-based but goes beyond price<br />
considerations alone. Companies in<br />
the <strong>SCA</strong> supply chain are expected<br />
to comply with acceptable social <strong>and</strong><br />
environmental st<strong>and</strong>ards. Work is<br />
underway to integrate requirements<br />
outlined in the Code of Conduct into<br />
existing supplier performance management<br />
systems.<br />
Suppliers are audited regularly. In<br />
2006, CSR requirements will be integrated<br />
into the audit process. Detailed<br />
supplier self-assessments or site visits<br />
may be done if any potential CSR concerns<br />
are identified in the initial assessment<br />
process. New suppliers will also<br />
be required to complete an in-depth<br />
self-assessment whilst selected potential<br />
suppliers will receive site visits in order<br />
to ensure compliance with the Code of<br />
Conduct.<br />
As a purchaser, <strong>SCA</strong> recognizes<br />
that its tendering processes, for<br />
example, must be fair <strong>and</strong> unbiased<br />
<strong>and</strong> comply with the Code of Conduct.<br />
<strong>SCA</strong> wood sourcing policy is a good<br />
example of how seriously the company<br />
takes this responsibility. <strong>SCA</strong> is<br />
Europe’s largest private owner of forest<br />
l<strong>and</strong> <strong>and</strong> is committed to responsible<br />
forest management. All <strong>SCA</strong> forests<br />
are managed <strong>and</strong> certified according<br />
to Forest Stewardship Council<br />
(FSC) criteria. In <strong>2005</strong>, <strong>SCA</strong> decided<br />
to implement procedures to ensure<br />
that the wood goods <strong>and</strong> fibre-based<br />
materials used in our processes do not<br />
originate from controversial timber<br />
sources. <strong>SCA</strong> will require that suppliers<br />
verify the source of all wood <strong>and</strong> virgin<br />
fibre-based materials that we purchase<br />
from them.<br />
Business partners<br />
In recent years, key business customers<br />
are paying greater attention to our performance.<br />
Increasing stakeholder, legal<br />
<strong>and</strong> regulatory pressures have led to a<br />
customer expectation that we continue<br />
to maintain solid CSR credentials <strong>and</strong><br />
in so doing, help them provide a reliable<br />
service to their own customers.<br />
<strong>SCA</strong> does not tolerate corruption,<br />
fraud or bribery <strong>and</strong> will not knowingly<br />
take part in transactions with business<br />
partners whom we know or believe to<br />
be involved in child labour, forced labour<br />
or other recognized human rights<br />
violations.<br />
As part of our efforts to prevent<br />
anti-competitive behaviour, <strong>SCA</strong> has a<br />
continuous antitrust compliance programme,<br />
which includes annual Groupwide<br />
training on competition law. Each<br />
<strong>Social</strong> reporting<br />
Business Group is required to report<br />
annually to the <strong>SCA</strong> Board of Directors<br />
on compliance assurance activities. The<br />
reports should include the name of the<br />
person responsible for the activity, the<br />
target group, a presentation of seminars<br />
or meetings held, new company<br />
acquisition, new employee recruitment<br />
<strong>and</strong> a review of participation in trade<br />
associations <strong>and</strong> benchmarking.<br />
Stakeholder engagement<br />
Our stakeholder relationships are<br />
crucial to the way we do business.<br />
Stakeholder engagement deepens our<br />
underst<strong>and</strong>ing of their expectations<br />
<strong>and</strong> how we can meet or hopefully<br />
exceed them.<br />
The underst<strong>and</strong>ing we gain from<br />
this dialogue strongly influences the<br />
formulation of our policies, actions <strong>and</strong><br />
reporting.<br />
Although investors who are specifically<br />
interested in sustainability represent<br />
a relatively small proportion of our<br />
shareholder base, this proportion has<br />
been steadily increasing over the past<br />
three years, <strong>and</strong> we expect this trend to<br />
continue.<br />
<strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong> 37
<strong>Social</strong> reporting<br />
Human rights<br />
<strong>SCA</strong> fully supports the principles set<br />
out in the UN Universal Declaration of<br />
Human Rights. Our Code of Conduct<br />
<strong>and</strong> core values emphasise the high<br />
st<strong>and</strong>ard of ethical behaviour expected<br />
from all <strong>SCA</strong> employees.<br />
In line with our commitment to the<br />
UN human rights declaration, <strong>SCA</strong><br />
prohibits the use of child or forced<br />
labour throughout its operations. Child<br />
labour refers to the employment of individuals<br />
who do not meet the applicable<br />
minimum legal age for employment.<br />
To monitor Code of Conduct compliance,<br />
all <strong>SCA</strong> sites are required to annually<br />
report the age of their youngest<br />
employee.<br />
In <strong>2005</strong>, the youngest employees<br />
were 15 years of age <strong>and</strong> worked as<br />
apprentices, administrative trainees or<br />
in summer jobs in our Austrian, Danish<br />
<strong>and</strong> UK operations.<br />
Human rights country risk framework<br />
As a result of <strong>SCA</strong>’s commitment to<br />
world-class st<strong>and</strong>ards of business integrity<br />
throughout its operations, the challenge<br />
for our businesses worldwide is to<br />
ensure that the <strong>SCA</strong> Code of Conduct is<br />
reflected in all action at the local level.<br />
From 2004–<strong>2005</strong>, a Human Rights<br />
Country Risk Framework was developed<br />
<strong>and</strong> utilised. It enabled the assessment<br />
<strong>and</strong> identification of countries<br />
with significant social <strong>and</strong> ethical risks<br />
based on criteria that includes the country’s<br />
political situation, human rights<br />
record, level of corruption <strong>and</strong> degree<br />
of integration into the international<br />
community. Based on the results of the<br />
Human Rights Country Risk Framework,<br />
as a first phase, in-depth human<br />
rights assessments will be conducted at<br />
a sample of <strong>SCA</strong> factories in six highrisk<br />
countries from <strong>2005</strong>–2006.<br />
The assessments are aimed at identifying<br />
areas that potentially conflict with<br />
the <strong>SCA</strong> Code of Conduct. The assessments<br />
are on based personal interviews<br />
<strong>and</strong> collected quantitative <strong>and</strong> qualitative<br />
data. Assessments of two factories<br />
were undertaken in Russia during the<br />
4th quarter of <strong>2005</strong>. No areas of noncompliance<br />
with the Code of Conduct<br />
were identified; however, areas for improvement<br />
were noted. Work will be<br />
undertaken in 2006 towards improving<br />
occupational health <strong>and</strong> safety performance,<br />
implementing a formal system<br />
to verify the legality of fibre sources<br />
<strong>and</strong> developing a system to ensure that<br />
suppliers are aware of <strong>and</strong> comply with<br />
the st<strong>and</strong>ards outlined in <strong>SCA</strong>’s Code<br />
of Conduct. A sample of factories in<br />
China, Columbia, Malaysia, Mexico<br />
<strong>and</strong> Pol<strong>and</strong> are scheduled to be assessed<br />
during the first half of 2006.<br />
38 <strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong>
Community relations<br />
<strong>SCA</strong> objectives include accountability<br />
<strong>and</strong> transparency, provision of a<br />
desirable work environment <strong>and</strong> local<br />
community development support in<br />
communities where we operate. <strong>SCA</strong><br />
invests in its communities of operation<br />
through donations of cash, equipment,<br />
products <strong>and</strong> services. Many <strong>SCA</strong> employees<br />
do volunteer work for charitable<br />
<strong>and</strong> other social causes, <strong>and</strong> various<br />
<strong>SCA</strong> businesses have programmes to<br />
encourage employees to volunteer time<br />
for charitable causes.<br />
Natural disaster response<br />
Examples of charitable contributions<br />
by <strong>SCA</strong> in <strong>2005</strong> include response to<br />
devastation caused by tsunamis in<br />
Southeast Asia early in the year. <strong>SCA</strong><br />
undertook a variety of activities to raise<br />
funds for those affected. <strong>SCA</strong> donated<br />
products <strong>and</strong> <strong>SCA</strong> employees donated<br />
cash, a sum that were matched by the<br />
<strong>SCA</strong> Group. Financial contributions<br />
amounting to approximately SEK 3<br />
million were made to relief organisations,<br />
in particular, the International<br />
Federation of Red Cross <strong>and</strong> Red<br />
Crescent Societies.<br />
In <strong>2005</strong>, Hurricane Katrina devastated<br />
parts of the USA. <strong>SCA</strong> Americas<br />
together with <strong>SCA</strong> employees donated<br />
over SEK 750,000 along with incontinence<br />
products, kitchen rolls, <strong>and</strong> toilet<br />
paper. A number of <strong>SCA</strong> employees<br />
enlisted in the US National Guard <strong>and</strong><br />
volunteer fire-fighting units in an effort<br />
to assist.<br />
Following devastation caused<br />
by Hurricane Stan in September–<br />
October <strong>2005</strong>, <strong>SCA</strong> donated approximately<br />
SEK 300,000 worth of tissue<br />
<strong>and</strong> personal care products to people<br />
in the Mexican states of Chiapas <strong>and</strong><br />
Veracruz.<br />
A school group on a field trip to a <strong>SCA</strong> factory.<br />
<strong>SCA</strong> Personal Care<br />
In <strong>2005</strong>, <strong>SCA</strong> Personal Care in<br />
Drummondville, Canada established<br />
a sponsorship programme to promote<br />
<strong>SCA</strong> involvement in the community<br />
<strong>and</strong> the initiatives of local organisa-<br />
tions that work with young <strong>and</strong> old<br />
people who are experiencing difficulty.<br />
A multi-art centre was developed<br />
specifically to reach young people<br />
with problems through exposure to<br />
music, computer technology, video, etc.<br />
<strong>SCA</strong> Personal Care also supported the<br />
Myosotis Home, which provides both<br />
temporary <strong>and</strong> permanent accommodation<br />
for the elderly. The Home<br />
will care for an elderly person whilst<br />
the family that regularly cares for the<br />
person takes a break to renew their<br />
strength <strong>and</strong> energy.<br />
<strong>Social</strong> reporting<br />
<strong>SCA</strong>’s Personal Care operation in<br />
Bowling Green, Kentucky has been<br />
involved in local community activities<br />
for many years <strong>and</strong> has been recognised<br />
for its support of economic development<br />
within the community. For the<br />
past 15 years, <strong>SCA</strong> has partnered with<br />
a local school to help young people<br />
gain first-h<strong>and</strong> work experience. Each<br />
year a student is employed through the<br />
Cooperative Office programme, which<br />
allows the student to attend classes<br />
<strong>and</strong> work in the <strong>SCA</strong> office. Bowling<br />
Green employees support a variety<br />
of organisations including the United<br />
Way, the American Red Cross, the<br />
Para-Olympics, <strong>and</strong> fund-raising walks<br />
for the American Heart Association,<br />
American Cancer Society, Alzheimer’s<br />
Association, etc.<br />
<strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong> 39
<strong>Social</strong> reporting<br />
<strong>SCA</strong> Tissue Europe<br />
<strong>SCA</strong> Tissue has operated a tissue conversion<br />
plant in the Russian settlement<br />
of Kammenogorsk since 1998. The<br />
Kamennogorsk settlement of 5,000<br />
residents is situated between the towns<br />
of Vyborg <strong>and</strong> Svetogorsk, approximately<br />
30 km from the Finnish border.<br />
With the exception of the local school,<br />
no cultural facilities were available<br />
in this tiny community. The community<br />
has attempted several times since<br />
1995 to raise funds to build a Russian<br />
Orthodox church. A wooden frame<br />
was erected, but work was discontinued<br />
due to lack of funds after a national<br />
financial crisis in 1998. In 2004, the<br />
local Orthodox community <strong>and</strong> the<br />
administration of Kamennogorsk community<br />
approached local businesses for<br />
support. <strong>SCA</strong> sponsored installation<br />
of electricity <strong>and</strong> lighting. In <strong>2005</strong>, the<br />
Church of Saint Seraphim from Sarov<br />
was opened to the great appreciation of<br />
the community.<br />
<strong>SCA</strong> Packaging Europe<br />
Community contributions in <strong>2005</strong><br />
included <strong>SCA</strong> Packaging Edinburgh’s<br />
donation of strong double-wall corru-<br />
gated board to the North Edinburgh Arts<br />
Centre for the creation of a children’s<br />
play sculpture area. <strong>SCA</strong> Packaging<br />
Italy participated in an exhibition<br />
entitled The World of the Book. The<br />
display, which was constructed of<br />
corrugated board, travelled to schools<br />
across Italy promoting book reading.<br />
<strong>SCA</strong> Packaging Aschaffenburg<br />
participated in the Route of Industrial<br />
Culture, a community collaboration<br />
in Germany. Organised by the Sustainable<br />
<strong>and</strong> Accessible Urban L<strong>and</strong>scapes<br />
partnership (SAUL), the event aimed<br />
to promote a better underst<strong>and</strong>ing of<br />
industry <strong>and</strong> to profile the Rhine-Main<br />
region as an attractive location for<br />
industry.<br />
<strong>SCA</strong> Forest Products<br />
Over the past 30 years, the Swedish<br />
forest industry has cooperated with<br />
schools to promote increased knowledge<br />
of forestry <strong>and</strong> the forest industry<br />
among primary school teachers <strong>and</strong><br />
students. This initiative, called Forest at<br />
School, attempts to create <strong>and</strong> maintain<br />
close contact between the forest<br />
industry <strong>and</strong> schools. The programme<br />
includes study visits to forest industry<br />
operations, further education of teachers,<br />
<strong>and</strong> ‘school forests’, i.e. forest areas<br />
that provide h<strong>and</strong>s-on forest resource<br />
educational experiences to school<br />
children. <strong>SCA</strong> is an active participant in<br />
this programme that is available in the<br />
four northernmost provinces of Sweden.<br />
Over 20,000 teachers <strong>and</strong> students<br />
participated in the programme in <strong>2005</strong>.<br />
<strong>SCA</strong> Asia Pacific<br />
<strong>SCA</strong> Asia Pacific donated diapers<br />
<strong>and</strong> incontinence products in <strong>2005</strong> to<br />
various organizations <strong>and</strong> families in<br />
Malaysia, Singapore <strong>and</strong> Thail<strong>and</strong>. Recipients<br />
include h<strong>and</strong>icapped, disabled<br />
<strong>and</strong> severely ill children <strong>and</strong> adults as<br />
well as homes for impoverished <strong>and</strong><br />
ab<strong>and</strong>oned children.<br />
To raise awareness of care for the<br />
elderly, a TENA charity event was<br />
held in <strong>2005</strong> in co-operation with The<br />
Organization of the Missing Old Man<br />
(OMOM) in Taiwan. TENA donated<br />
400 love bracelets, which help the<br />
public identify elderly people who have<br />
gone missing <strong>and</strong> assist them in returning<br />
safely to their homes. From October<br />
<strong>2005</strong>–June 2006, TENA will donate<br />
TWD 5 to OMOM for each package of<br />
TENA product sold in hypermarkets<br />
<strong>and</strong> supermarkets.<br />
<strong>SCA</strong> Hygiene Australasia signed the<br />
National Packaging Covenant (NPC)<br />
in <strong>2005</strong>. This voluntary Australian<br />
industrial agreement is aimed at<br />
managing the environmental impact<br />
of consumer packaging. As an NPC<br />
signatory, <strong>SCA</strong> will submit an action<br />
plan that describes upcoming actions to<br />
support product stewardship, packaging<br />
reduction <strong>and</strong> recycling promotion<br />
for the coming year.<br />
The action plan encompasses all<br />
product types produced <strong>and</strong> sold in<br />
the Australian market <strong>and</strong> initiatives<br />
such as reducing packaging material,<br />
increasing recycled product content<br />
<strong>and</strong> improving energy <strong>and</strong> water<br />
efficiency.<br />
<strong>SCA</strong> sponsored electrical systems <strong>and</strong> lighting for<br />
the Church of Saint Seraphim from Sarov in the<br />
Russian Community of Kamennogorsk.<br />
40 <strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong>
Resource<br />
Management<br />
System (RMS)<br />
<strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong> 41
Resource Management System (RMS)<br />
RESOURCE MANAGEMENT SYSTEM (RMS)<br />
<strong>SCA</strong> has a comprehensive information management system for the collection<br />
<strong>and</strong> aggregation of data from both production sites <strong>and</strong> Business Groups.<br />
The Resource Management System (RMS) analyzes data that describes <strong>SCA</strong><br />
energy, water, transport <strong>and</strong> raw material use as well as waste <strong>and</strong> emission levels.<br />
RMS is also used for internal auditing <strong>and</strong> follow-up <strong>and</strong> external benchmarking,<br />
<strong>and</strong> as an evaluation tool for acquisitions <strong>and</strong> large investments.<br />
<strong>SCA</strong> is comprised of four business areas<br />
<strong>and</strong> their support operations. The business<br />
areas are divided into six Business<br />
Groups, each of which manufactures a<br />
range of products at a number of sites.<br />
Aggregated RMS data encompasses<br />
the main products produced by <strong>SCA</strong><br />
plants. Some products are delivered to<br />
other <strong>SCA</strong> units for further processing<br />
whilst others are brought directly to<br />
market. Data that represents total <strong>SCA</strong><br />
production is based on the production<br />
at each site. Due to the degree of<br />
integration between <strong>SCA</strong> sites <strong>and</strong> its<br />
business areas, total production data<br />
should be interpreted as a gross figure.<br />
A pulp mill production unit within <strong>SCA</strong> Group.<br />
This also applies to wood/sawmill chip<br />
supply because <strong>SCA</strong> sawmill chips<br />
are often transferred to <strong>SCA</strong> mills. In<br />
addition, pulp used within the Group is<br />
partly produced by <strong>SCA</strong> pulp mills <strong>and</strong><br />
delivered to <strong>SCA</strong> paper mills.<br />
The presentation of data in an<br />
intelligible form that facilitates meaningful<br />
comparison of figures is a complex<br />
task. RMS data tables represent<br />
total amounts for:<br />
• production<br />
• raw material supply<br />
• energy supply<br />
• discharges<br />
These elements are presented<br />
as follows:<br />
• total for the <strong>SCA</strong> group<br />
• total for each Business Group<br />
• total for each pulp <strong>and</strong> paper mill<br />
<strong>SCA</strong> production units usually manufacture<br />
a single product such as processed<br />
timber goods, kraftliner or corrugated<br />
board. Some sites, however, h<strong>and</strong>le<br />
many products thereby making the situation<br />
for each <strong>SCA</strong> unit unique. This<br />
fact must be kept in mind when apportioning<br />
<strong>and</strong> interpreting the data.<br />
This year, five Tissue mills <strong>and</strong> two<br />
Personal Care factories are presented<br />
in RMS for the first time. The hygiene<br />
product sites are located in Australia,<br />
New Zeal<strong>and</strong> <strong>and</strong> Mexico.<br />
PERSONAL CARE<br />
Personal care products are produced<br />
in eleven Personal Care factories in<br />
Europe, North America, Central <strong>and</strong><br />
South America <strong>and</strong> Australiasia.<br />
Market pulp is the main raw<br />
material. Synthetic materials are<br />
used to enhance the quality <strong>and</strong> functionality<br />
of high-absorption hygiene<br />
products.<br />
TISSUE PRODUCTS<br />
In the RMS report there are 34 tissue<br />
mills in Europe, North America, Central<br />
<strong>and</strong> South America <strong>and</strong> Australia-<br />
42 <strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong>
sia. They produce the tissue grades<br />
shown in the chart below.<br />
The raw material supply consists<br />
of integrated pulp, market pulp <strong>and</strong><br />
recovered paper.<br />
As indicated in the chart, the raw<br />
material content can vary substantially<br />
amongst tissue products produced at<br />
each site.<br />
PACKAGING<br />
Corrugated board <strong>and</strong> speciality<br />
packaging<br />
Corrugated board is produced by more<br />
than 320 plants. The RMS includes<br />
only larger units with corrugating capacity.<br />
Smaller converting <strong>and</strong> packaging<br />
units have not been included due to<br />
their size.<br />
About 40 plants do specialty packaging.<br />
About 50% of these units are<br />
foam-moulding plants. The remaining,<br />
mainly smaller, units manufacture <strong>and</strong><br />
assemble various types of industrial<br />
packaging, <strong>and</strong> packaging for temperature-sensitive<br />
<strong>and</strong> consumer goods.<br />
The raw material supply (for foam<br />
moulding) consists mostly of EPS, EPP<br />
<strong>and</strong> various other polymeric resins.<br />
Due to the relatively small size<br />
of the plants, only aggregated data<br />
is used for protective packaging<br />
operations.<br />
Containerboard<br />
Containerboard was produced at ten<br />
European sites in <strong>2005</strong>. Kraftliner is<br />
comprised mainly of unbleached kraft<br />
pulp, which has been fully integrated<br />
into mill operations. Other sites produce<br />
testliner <strong>and</strong> fluting, which both<br />
consist of 100% recovered fibre.<br />
FOREST PRODUCTS<br />
Publication papers<br />
The Group has three European mills<br />
Resource Management System (RMS)<br />
that produce publication papers. All are<br />
integrated mills that produce both pulp<br />
<strong>and</strong> paper from wood <strong>and</strong>/or recovered<br />
paper. Inorganic material such as kaolin<br />
clay <strong>and</strong> calcium carbonate are used to<br />
improve paper quality.<br />
Pulp, timber <strong>and</strong> solid-wood products<br />
<strong>SCA</strong> has a pulp mill that produces kraft<br />
pulp <strong>and</strong> CTMP (chemical thermal<br />
mechanical pulp). Nearly<br />
50 percent of the raw material deliv-<br />
ered to the sawmills becomes solid-<br />
wood products. The remaining raw<br />
material is comprised of wood chips,<br />
sawdust <strong>and</strong> bark. Wood chips are<br />
used for pulp production in adjacent<br />
pulp <strong>and</strong> paper mills. Sawdust <strong>and</strong><br />
bark are mainly used for energy<br />
recovery. Sawdust is also used in<br />
the production of pellets for energy<br />
production. Data for <strong>SCA</strong>’s seven<br />
sawmills has been consolidated.<br />
Business areas Products Main raw materials Market<br />
Personal Care<br />
Tissue<br />
Packaging<br />
Forest Products<br />
Incontinence products, baby diapers<br />
<strong>and</strong> feminine hygiene products<br />
Household <strong>and</strong> toilet paper, paper<br />
h<strong>and</strong>kerchiefs, napkins <strong>and</strong> kitchen rolls<br />
Kraftliner, testliner<br />
<strong>and</strong> fluting<br />
Corrugated board <strong>and</strong><br />
protective packaging<br />
Pulp <strong>and</strong> synthetic materials such as<br />
super absorbents, glue <strong>and</strong> plastic<br />
Pulp from integrated units, purchased pulp<br />
from recovered paper<br />
Timber <strong>and</strong>/or recovered fibre<br />
Testliner, kraftliner, fluting, EPS (exp<strong>and</strong>ed polystyrene),<br />
EPP (exp<strong>and</strong>ed polypropylene) <strong>and</strong> other<br />
polymeric resins<br />
<strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong> 43<br />
External<br />
External<br />
External <strong>and</strong><br />
Internal<br />
External<br />
Newsprint <strong>and</strong> magazine papers Timber <strong>and</strong>/or recovered paper External<br />
Timber, wood chips for pulp manufacture, solidwood<br />
products, chlorine-free sulphate pulp <strong>and</strong><br />
CTMP (chemical thermo mechanical pulp)<br />
Wood<br />
External <strong>and</strong><br />
Internal
Resource Management System (RMS)<br />
Resources<br />
<strong>SCA</strong> resource use for <strong>2005</strong>. <strong>SCA</strong> uses raw materials,<br />
water, energy <strong>and</strong> transport in the production <strong>and</strong><br />
distribution of its products.<br />
Raw materials<br />
A typical <strong>SCA</strong> product is comprised of<br />
different types of wood or wood fibre.<br />
Products also include small amounts of<br />
inorganic <strong>and</strong> organic fossil material.<br />
Renewable resources (virgin wood<br />
fibre <strong>and</strong> recycled fibre) account for the<br />
major part of the total weight of a typical<br />
<strong>SCA</strong> product. Inorganic materials<br />
(kaolin, clay <strong>and</strong> calcium carbonate)<br />
are used as filler <strong>and</strong> coating pigments<br />
to satisfy customer dem<strong>and</strong> for high paper<br />
quality. Synthetic materials are used<br />
in high-absorption hygiene products<br />
to enhance quality <strong>and</strong> functionality,<br />
as well as in special high-protection<br />
packaging.<br />
<strong>SCA</strong> is Europe’s largest collector<br />
<strong>and</strong> users of recovered fibre. The diagram<br />
shows the material composition<br />
of <strong>SCA</strong> some products.<br />
Water<br />
Water sources are presented under the<br />
heading Raw Material. The figures given<br />
are totals for surface water, ground<br />
water <strong>and</strong> community tap water. The<br />
total amount of water intake is 237 Mm³.<br />
Energy<br />
When calculating energy use, the<br />
amount of purchased energy – supplied<br />
as thermal energy, electricity <strong>and</strong> fuel<br />
– for a production unit should be<br />
included as well as energy derived from<br />
wood, liquor, bark, sludge, reject paper<br />
<strong>and</strong> electricity produced on-site. A large<br />
part of consumed energy is derived<br />
from the incineration of wood residu-<br />
als <strong>and</strong> from on-site co-generation of<br />
electricity. Thus, the presentation of<br />
<strong>SCA</strong> energy data includes figures for<br />
both fuel <strong>and</strong> electricity.<br />
In <strong>2005</strong>, 37% of the Group’s fuel<br />
supply (78,979 TJ) was generated from<br />
biofuels such as wood residuals from<br />
forest industries. Natural gas is the most<br />
commonly used fossil fuel within <strong>SCA</strong>.<br />
It represents 85 percent of fossil fuel<br />
consumption. Biofuels are used whereever<br />
possible.<br />
In the total amount of fuel supplied<br />
to a production unit, fuel for co-generated<br />
electricity is presented separately.<br />
This enables comparable comparison<br />
of mills <strong>and</strong> products. Electricity can be<br />
supplied from the grid, which reduces<br />
the amount of fuel accordingly.<br />
With co-generation, high fuel to<br />
electricity conversion efficiency is also a<br />
factor in reducing air emissions. Of the<br />
total amount of electricity consumed by<br />
<strong>SCA</strong>, 26% is produced on-site in efficient<br />
CHP (Combined Heat <strong>and</strong> Power)<br />
schemes <strong>and</strong> 74 % is supplied by national<br />
power utilities. A minor proportion<br />
of the total electricity requirement<br />
is produced by a local hydroelectric<br />
power plant.<br />
Part of the electricity is used in<br />
electric boilers <strong>and</strong> for operating heat<br />
pumps. This electricity is converted into<br />
primary thermal heat <strong>and</strong> appears in<br />
the fuel balance accordingly.<br />
To avoid duplication, the use of<br />
secondary energy such as Thermal<br />
Mechanical Pulp (TMP) steam recovery<br />
is not included in the balances. TMP<br />
Distribution of raw materials for production<br />
of some <strong>SCA</strong> products<br />
Co-generation<br />
25.7%<br />
Fuel oil 7.4%<br />
Wood waste 13.8%<br />
Spent Liquour<br />
22.9%<br />
Coal 1.7%<br />
Internal hydro power<br />
0.2%<br />
Grid supply<br />
74.2%<br />
NG + LPG<br />
53.6%<br />
44 <strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong><br />
%<br />
100<br />
80<br />
60<br />
40<br />
20<br />
0<br />
Printing paper<br />
Pulp<br />
Timber<br />
Ground water 13%<br />
Protective packaging<br />
Personal Care<br />
Tissue<br />
Corrugated<br />
Container board<br />
Fresh wood fibre Rec fibres<br />
Organic fossil Inorganic mat<br />
Distribution of electricity supply<br />
Distribution of fuel supply<br />
including to co-generation<br />
Distribution of water supply<br />
Community water 3%<br />
Surface water<br />
84%
A large part of <strong>SCA</strong>’s transport is ship-based.<br />
steam, a resource that originates within<br />
the system, is already included in the<br />
electricity balance.<br />
If <strong>SCA</strong> production processes do not<br />
consume all the electricity produced onsite,<br />
excess electricity is supplied to the<br />
national grid. In <strong>2005</strong>, <strong>SCA</strong> delivered<br />
230 GWh of electricity to the national<br />
grid.<br />
<strong>SCA</strong> supplies secondary heat derived<br />
from effluent hot water to community<br />
district heating systems, mainly in Sweden.<br />
This is a desirable method of energy<br />
conservation. In <strong>2005</strong>, <strong>SCA</strong> delivered<br />
thermal heat to district heating systems,<br />
equivalent to 20,740 m³ fuel oil.<br />
<strong>SCA</strong> also delivered heat equal to<br />
30,981 m³ fuel oil to nearby paper mills.<br />
Transport<br />
Raw materials are transported to<br />
<strong>SCA</strong> production plants <strong>and</strong> finished<br />
products are delivered to <strong>SCA</strong> customers.<br />
The majority of <strong>SCA</strong> transport is<br />
procured from external suppliers.<br />
<strong>SCA</strong> transport use corresponds<br />
to 29 billion tonne kilometres. Shipbased<br />
transport accounts for the largest<br />
portion of transport with road <strong>and</strong><br />
rail-based transport accounting for the<br />
balance.<br />
<strong>SCA</strong> transport of raw materials <strong>and</strong><br />
products corresponds to 12 329 TJ fuel<br />
<strong>and</strong> 61 GWh electricity.<br />
Lorry 25.2%<br />
<strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong> 45<br />
Rail 5.8%<br />
Resource Management System (RMS)<br />
Distribution of transport usage<br />
Ship 69.1%
Resource Management System (RMS)<br />
Discharges<br />
<strong>SCA</strong> Group discharges are presented in the figures<br />
for years 2003, 2004 <strong>and</strong> <strong>2005</strong>. It should be noted<br />
that <strong>SCA</strong> has, in recent years, made a number of<br />
acquisitions. This year, five tissue mills <strong>and</strong> two<br />
Personal Care sites in Mexico <strong>and</strong> Australasia are<br />
presented for the first time in the RMS.<br />
Air emissions<br />
Air emissions from combustion plants<br />
within <strong>SCA</strong> production units include<br />
both fossil <strong>and</strong> biofuel emissions as well<br />
as emissions from purchased thermal<br />
energy. When energy (primarily thermal<br />
<strong>and</strong>/or electricity) is supplied to a<br />
non-<strong>SCA</strong> operation, air emissions are<br />
allocated to delivered energy in proportion<br />
to the energy content deducted<br />
from <strong>SCA</strong>’s main products.<br />
Three different discharges are<br />
measured <strong>and</strong> reported in relation to air<br />
emissions: NOX, SO2 <strong>and</strong> fossil CO2.<br />
In large pulp <strong>and</strong> paper mills, both<br />
NOX <strong>and</strong> SO2 are carefully measured<br />
<strong>and</strong> balanced. In other mills <strong>and</strong> plants<br />
(sawmills, corrugated board plants <strong>and</strong><br />
hygiene product manufacturing units)<br />
a st<strong>and</strong>ard value of 100 mg/MJ fuel<br />
is used for NOX emissions, while SO2<br />
is based on the fuel’s sulphur content.<br />
The CO2 emission figure is based on the<br />
carbon content of the consumed fuel.<br />
<strong>Report</strong>ed CO2 emissions may differ<br />
somewhat from those reported to<br />
local authorities associated with the<br />
EU Emissions Trading Scheme (ETS).<br />
Participating countries in ETS use<br />
various limits <strong>and</strong> definitions in their<br />
calculations whilst <strong>SCA</strong>’s calculation<br />
<strong>and</strong> presentation of RMS data is done<br />
according to special rules. A global<br />
company such as <strong>SCA</strong>, with operations<br />
on several continents, must have only<br />
one set of rules for data calculation in<br />
order to present a uniform report <strong>and</strong><br />
to be able to track company emissions.<br />
Air emissions from transport<br />
A significant proportion of air emissions<br />
are related to transport <strong>and</strong><br />
not to on-site production. Transport<br />
emissions are not included in the data<br />
tables “Raw materials, energy, <strong>and</strong><br />
emissions” on pages 49–54 have been<br />
excluded from the diagram on page 47.<br />
To water<br />
<strong>SCA</strong> effluent water is separated into<br />
cooling water <strong>and</strong> process water. Cooling<br />
water has only been heated <strong>and</strong> has<br />
not been contaminated in any way. The<br />
total amount of discharged process<br />
water is 128 Mm³. This water is treated<br />
by methods similar to those used for<br />
municipal water treatment. Year <strong>2005</strong><br />
values, as provided in the data tables,<br />
are for effluent process water.<br />
Water discharges addressed in the<br />
data are COD, BOD, suspended solids,<br />
AOX, P <strong>and</strong> N. There are, however,<br />
some differences in some testing methods.<br />
All <strong>SCA</strong> production of bleached<br />
chemical pulp uses Totally Chlorine<br />
Free (TCF) processes. The data presented<br />
for AOX relates to the treatment<br />
of incoming water.<br />
Each production site has its own<br />
permits for air <strong>and</strong> water emissions/<br />
discharges based on the legal <strong>and</strong> local<br />
st<strong>and</strong>ards of respective countries <strong>and</strong><br />
regions. Where there is no continuous<br />
measurement, <strong>SCA</strong> uses st<strong>and</strong>ard<br />
values recalculated for a full year of<br />
production.<br />
Use of different testing methods<br />
does not provide a completely accurate<br />
picture at the Group-level, but developments<br />
at the sites can be followed.<br />
Water discharges from <strong>SCA</strong>’s corrugated<br />
board plants are not included<br />
in this data presentation as the small<br />
amount of water used is normally discharged<br />
to community sewage systems.<br />
The discharges reported here are<br />
aggregated across sites where measurements<br />
are regularly done with the<br />
46 <strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong>
A timber lorry on the way to a<br />
<strong>SCA</strong> production plant.<br />
exception of sawmills where small<br />
estimated values are included.<br />
Solid waste<br />
This report includes figures on l<strong>and</strong>fill<br />
waste, waste for recovery <strong>and</strong> hazardous<br />
waste. Waste for recovery refers<br />
to materials that are recovered as raw<br />
material for other industries such as the<br />
cement, brick <strong>and</strong> construction industries.<br />
Waste for recovery is comprised<br />
mainly of ash, sludge, organic waste<br />
<strong>and</strong> plastic. Hazardous waste refers<br />
primarily to waste oil but also includes<br />
organic solvents, batteries <strong>and</strong> fluorescent<br />
tubes.<br />
Air emission NOX<br />
tonnes<br />
6,000<br />
5,000<br />
4,000<br />
3,000<br />
2,000<br />
1,000<br />
0<br />
2,500<br />
2,000<br />
1,500<br />
1,000<br />
500<br />
0<br />
2003<br />
Air emission SO2<br />
tonnes<br />
3,000<br />
2,500<br />
2,000<br />
1,500<br />
1,000<br />
500<br />
0<br />
2003<br />
Air emission CO2<br />
ktonnes<br />
3,000<br />
1,000<br />
800<br />
600<br />
400<br />
200<br />
0<br />
2003<br />
2004<br />
2004<br />
2004<br />
Distribution of solid waste<br />
ktonnes<br />
1,200<br />
<strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong> 47<br />
<strong>2005</strong><br />
<strong>2005</strong><br />
<strong>2005</strong><br />
2003 2004 <strong>2005</strong> 2003 2004 <strong>2005</strong><br />
L<strong>and</strong>fill<br />
Recovery<br />
Emission from transport CO2<br />
ktonnes<br />
1,200<br />
1,000<br />
800<br />
600<br />
400<br />
200<br />
0<br />
Emission from transport NOx, SO2<br />
tonnes<br />
16,000<br />
12,000<br />
8,000<br />
4,000<br />
0<br />
30,000<br />
20,000<br />
10,000<br />
600<br />
500<br />
400<br />
300<br />
200<br />
0<br />
100<br />
0<br />
Resource Management System (RMS)<br />
2003<br />
2004<br />
<strong>2005</strong><br />
2003 2004 <strong>2005</strong> 2003 2004 <strong>2005</strong><br />
NOX SO Water effluents COD, BOD<br />
Suspended solids<br />
tonnes<br />
40,000<br />
03 04 05<br />
COD<br />
03 04 05<br />
BOD<br />
Water effluents P, N<br />
tonnes<br />
700<br />
03 04 05<br />
Susp solids<br />
2003 2004 <strong>2005</strong> 2003 2004 <strong>2005</strong><br />
P<br />
N
Resource Management System (RMS)<br />
Data tables<br />
The notes below define the terminology<br />
used in our environmental data tables<br />
in the context of <strong>SCA</strong>. Production is<br />
the sum of all main products delivered<br />
from each site. <strong>SCA</strong> off-site integration<br />
is not included.<br />
RAW MATERIAL SUPPLY<br />
Wood/sawmill chips the sum of wood<br />
delivered to each site.<br />
Purchased pulp the sum of pulp<br />
supplied to a site.<br />
Recovered paper the sum of recovered<br />
paper supplied to a site.<br />
Inorganic material covers inorganic fillers<br />
<strong>and</strong> coating materials supplied to a<br />
site calculated at 100 % dry substances<br />
(ds).<br />
Organic fossil material covers crude-<br />
oil-based materials such as super<br />
absorbent <strong>and</strong> adhesives calculated at<br />
100 percent ds.<br />
Water represents the sum of surface<br />
water, ground water <strong>and</strong> tap water for<br />
processes <strong>and</strong> cooling purposes.<br />
Where input water is not measured,<br />
it has been calculated as equaling the<br />
effluent water.<br />
ENERGY<br />
Internal hydro power electricity produced<br />
in fully owned local hydro power<br />
stations.<br />
Co-generation electricity produced<br />
in CHP (combined heat <strong>and</strong> power)<br />
schemes allocated to the production.<br />
Grid supply the electricity supplied from<br />
the national grid.<br />
Biofuel renewable fuel from wood <strong>and</strong><br />
process residues.<br />
Fossil fuel coal, fuel oil <strong>and</strong> natural gas<br />
supplied to the site, exclusive of fuel for<br />
transport.<br />
Electric boiler electricity supplied for<br />
thermal heat (production), for boilers<br />
<strong>and</strong> heat pumps, measured at the site<br />
<strong>and</strong> converted in GJ.<br />
Of which co-gen that part of the total<br />
fuel supply allocated to the electricity<br />
produced by the CHP schemes.<br />
DISCHARGES<br />
NOX as NO2 the nitrogen oxides NO <strong>and</strong><br />
NO2, calculated as NO2 derived from<br />
combustion. Where NOX is not measured,<br />
a st<strong>and</strong>ard value of 100 mg/MJ<br />
fuel is used.<br />
SO2 total sulphur calculated as SO2<br />
from processes <strong>and</strong> combustion at the<br />
site. Where SO2 is not measured, the<br />
input sulfur in the fuel is calculated.<br />
Dust particles in the flue gas created<br />
during combustion.<br />
CO2 fossil the carbon dioxide derived<br />
from combustion of fossil fuels. It is<br />
calculated from the carbon content of<br />
each fuel.<br />
CO2 biogenic the carbon dioxide derived<br />
from combustion of biofuel. It is<br />
calculated from the carbon content of<br />
wood.<br />
COD the chemical oxygen dem<strong>and</strong> substance<br />
measured in the effluent water<br />
leaving the site.<br />
BOD the biochemical oxygen dem<strong>and</strong><br />
substance measured over seven days in<br />
Swedish mills <strong>and</strong> five days in the rest<br />
of Europe, in accordance with national<br />
legislative systems.<br />
Suspended solids particles which are<br />
not dissolved in the effluent water.<br />
AOX the amount of chlorine-bound<br />
organic substances.<br />
P the total of phosphorus in the effluent<br />
water.<br />
N the total of nitrogen in the effluent<br />
water.<br />
Effluent water water discharged to the<br />
watercourse after treatment.<br />
L<strong>and</strong>fill solid waste material sent to<br />
a l<strong>and</strong>fill.<br />
Recovery solid waste material recovered<br />
into an outside process.<br />
Hazardous waste material disposed of<br />
by authorised contractors, as defined<br />
by national laws.<br />
48 <strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong>
Raw materials, energy <strong>and</strong> discharges<br />
Resource Management System (RMS)<br />
Tissue Products Personal Care Packaging Forest Products <strong>SCA</strong> Group Total<br />
Production <strong>2005</strong> 2004 <strong>2005</strong> 2004 <strong>2005</strong> 2004 <strong>2005</strong> 2004 <strong>2005</strong> 2004<br />
Paper <strong>and</strong> pulp ktonnes 2,343 1,951 407 439 5,006 4,983 2,137 2,127 9,893 9,500<br />
Timber <strong>and</strong> solid-wood products 1,000 m 3 1,576 1,509 1,576 1,509<br />
1. Raw Materials <strong>2005</strong> 2004 <strong>2005</strong> 2004 <strong>2005</strong> 2004 <strong>2005</strong> 2004 <strong>2005</strong> 2004<br />
Wood/saw mill chips* ktonnes 449 423 0 0 701 671 3,062 2,992 4,212 4,086<br />
Purchased pulp* ktonnes 795 806 263 262 6 6 133 136 1,197 1,151<br />
Containerboard* ktonnes 0 0 0 0 2,623 2,555 0 0 2,623 2,555<br />
Corrugated board ktonnes 0 0 0 0 40 50 0 0 40 50<br />
Recovered paper ktonnes 1,666 1,313 0 0 2,171 2,161 780 785 4,617 4,259<br />
Inorganic material ktonnes 9 0 0 0 12 16 305 305 326 321<br />
Organic fossil material ktonnes 2 1 220 222 62 70 13 17 270 412<br />
Water Mm 3 98 93 0 0 45 45 93 84 237 222<br />
2. Energy <strong>2005</strong> 2004 <strong>2005</strong> 2004 <strong>2005</strong> 2004 <strong>2005</strong> 2004 <strong>2005</strong> 2004<br />
Electricity<br />
Internal hydro power GWhe 0 0 0 0 0 0 15 17 15 17<br />
Co-generation GWhe 527 627 0 0 644 689 1,103 1,121 2,274 2,437<br />
Grid supply GWhe 2,629 2,014 283 259 1,240 1,204 2,417 2,405 6,569 5,883<br />
Total GWhe 3,156 2,641 283 259 1,884 1,893 3,535 3,542 8,858 8,335<br />
Fuels<br />
Biofuel TJfuel 4,496 4,467 0 0 10,594 9,811 13,754 13,483 28,843 27,761<br />
Fossil fuel TJfuel 22,799 21,070 220 214 17,347 17,912 9,837 9,999 50,202 49,195<br />
Electric boiler TJfuel 38 53 0 0 51 34 317 182 406 269<br />
Total TJfuel 27,333 25,590 220 214 27,992 27,756 23,908 23,664 79,452 77,225<br />
of which co-gen. TJfuel 3,427 4,679 0 0 3,306 3,572 5,872 5,816 12,605 14,067<br />
3. Dicharges <strong>2005</strong> 2004 <strong>2005</strong> 2004 <strong>2005</strong> 2004 <strong>2005</strong> 2004 <strong>2005</strong> 2004<br />
To air<br />
NOx as NO2 tonnes 2,008 1,926 22 22 2,073 2,166 1,608 1,530 5,711 5,643<br />
SO2 tonnes 1,447 648 0 0 882 1,207 638 611 2,967 2,467<br />
Dust tonnes 169 139 0 0 376 367 118 210 663 716<br />
CO2 fossil ktonnes 1,304 1,196 12 12 1,037 1,071 573 694 2,926 2,973<br />
CO2 biogenic ktonnes 577 441 0 0 1,297 1,106 1,615 1,569 3,489 3,116<br />
To water<br />
COD tonnes 12,838 10,053 0 0 11,591 11,365 12,694 11,033 37,123 32,452<br />
BOD tonnes 3,834 2,923 0 0 3,770 3,609 1,462 1,011 9,067 7,544<br />
Suspended solids tonnes 3,174 2,556 0 0 3,113 3,809 637 398 6,924 6,763<br />
AOX tonnes 3 2 0 0 2 2 6 2 11 6<br />
P tonnes 26 27 0 0 28 42 27 41 82 110<br />
N tonnes 193 215 0 0 202 272 210 193 605 679<br />
Effluent water Mm 3 60 58 0 0 30 28 38 38 129 125<br />
Solid waste<br />
L<strong>and</strong>fill tonnes 251,092 155,593 3,062 4,217 122,947 130,053 90,822 85,168 467,922 375,031<br />
Recovery tonnes 716,388 692,027 43,081 41,249 117,713 118,281 259,732 236,206 1,136,913 1,087,762<br />
Hazardous tonnes 631 1,174 0 0 1,759 1,391 960 648 3,350 3,213<br />
* Partly internal deliveries<br />
<strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong> 49
Resource Management System (RMS)<br />
Mill facts<br />
Tissue<br />
<strong>2005</strong><br />
Edet<br />
Sweden<br />
Prudhoe<br />
UK<br />
Tawd<br />
UK<br />
Chesterfield<br />
UK<br />
Oakenholt<br />
UK<br />
Stembert<br />
Belgium<br />
Mannheim tissue<br />
Germany<br />
ti, gp,<br />
Grades ti ti ti ti ti ti ti, gp bsi pp, bsi ti ti, nw ti ti ti ti ti ti<br />
Production ktonnes 89 65 26 28 49 66 275 213 319 104 5 22 60 29 121 25 43<br />
Energy<br />
Electricity<br />
Internal hydro power GWhe 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0<br />
Co-generation GWhe 5 0 34 0 0 0 208 59 267 29 0 0 0 0 84 0 0<br />
Grid supply GWhe 152 124 43 30 51 82 245 69 315 108 11 29 73 33 58 28 36<br />
Total GWhe 157 124 77 30 51 82 454 128 582 137 11 29 73 33 142 28 36<br />
Fuels<br />
Biofuel TJfuel 601 0 0 0 0 0 198 3,697 3,895 0 0 0 0 0 0 0 0<br />
Fossil fuel TJfuel 100 1,092 830 273 41 574 3,587 753 4,340 1,013 38 173 389 221 1,376 197 289<br />
Electric boiler TJfuel 38 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0<br />
Total TJfuel 739 1,092 830 273 41 574 3,785 4,450 8,235 1,013 38 173 389 221 1,376 197 289<br />
of which co-gen. TJfuel 19 0 425 0 0 0 932 263 1,195 123 0 0 0 0 465 0 0<br />
Dicharges<br />
To air<br />
NOx as NO2 tonnes 58 27 57 9 33 51 206 608 814 68 2 6 21 0 62 22 27<br />
SO2 tonnes 2 4 0.1 3 0 0 13 226 239 4 0 0 0 0 0 0 0<br />
Dust tonnes N/A 6 5 N/A 0.5 N/A 0.4 35 36 N/A 0 N/A N/A N/A N/A N/A N/A<br />
CO2 fossil ktonnes 7 59 57 15 2 29 143 103 246 57 2 10 20 11 76 9 16<br />
CO2 biogenic ktonnes 83 0 0 0 0 0 169 325 494 0 0 0 0 0 0 0 0<br />
To water<br />
COD tonnes 470 104 93 612 61 112 598 5,583 6,181 198 104 16 32 21 193 0.09 0<br />
BOD tonnes 110 10 N/A N/A 5 53 292 999 1,291 15 N/A N/A 9 1 10 N/A 0<br />
Suspended solids tonnes 92 25 82 91 6 23 132 393 525 0.5 55 71 1 9 24 0.01 0<br />
AOX tonnes 0.3 N/A N/A N/A N/A N/A 2 0 2 0.5 N/A N/A N/A N/A 0.2 N/A 0<br />
P tonnes 1 0.5 N/A N/A N/A 0.3 2 12 14 1 N/A 0.3 0.04 0.02 0.4 N/A 0<br />
N tonnes 14 1 N/A N/A N/A 3 4 67 71 8 0.6 10 0 0.2 12 N/A 0<br />
Effluent water Mm 3 3.700 2.306 0.875 0.450 0.419 1.098 3.939 12.182 16.100 1.645 0.240 1.160 0.502 0.364 3.440 0.003 0<br />
Solid waste<br />
L<strong>and</strong>fill tonnes 1,936 7,426 1,265 1,691 310 363 180 N/A 180 0 0 0 0 47 0 179 81<br />
Recovery tonnes 27,079 55,591 4,543 24,060 1,818 4,152 55,120 N/A 55,120 87,695 2,293 19,570 3,448 724 102,552 4,293 2,034<br />
Hazardous tonnes 25 13 8 N/A 8 76 104 N/A 104 43 43 12 38 12 42 26 7<br />
ti = tissue paper reels <strong>and</strong>/or tissue<br />
consumer products<br />
nw = non wowen<br />
gp = grease proof paper<br />
pp = packaging paper<br />
bsi = bleached sulfite pulp<br />
uc= uncoated fine paper<br />
rc= recycled pulp<br />
mp= market pulp<br />
E/T= external treatment<br />
N/A= data not available<br />
50 <strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong><br />
Mannheim pulp<br />
Germany<br />
Mannheim<br />
Total Germany<br />
Kostheim<br />
Germany<br />
Friesl<strong>and</strong><br />
Netherl<strong>and</strong>s<br />
Tilburg<br />
Netherl<strong>and</strong>s<br />
Le Theil<br />
France<br />
Roanne<br />
France<br />
Ortman<br />
Austria<br />
Valls<br />
Spain<br />
Mediona<br />
Spain
Svetogorsk<br />
Russia<br />
Benavente (Nisa)<br />
Portugal<br />
Lucca 1<br />
Italy<br />
Lucca 4<br />
Italy<br />
Collodi<br />
Italy<br />
Pratovecchio<br />
Italy<br />
Alsip<br />
US<br />
Barton<br />
US<br />
Flagstaff<br />
US<br />
Menasha<br />
US<br />
South Glenn Falls<br />
US<br />
Resource Management System (RMS)<br />
ti ti ti ti ti ti ti ti ti ti ti ti ti, rp<br />
ti, uc,<br />
mp ti ti ti ti<br />
40 6 125 26 38 21 52 74 64 211 75 71 102 164 24 40 52 48 58 2,343<br />
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0<br />
0 12 71 0 0 24 2 0 0 0 0 0 0 0 0 0 0 0 0 527<br />
35 0 58 22 33 0.7 54 119 50 300 86 75 80 110 33 52 79 123 149 2,629<br />
35 12 129 22 33 24 55 119 50 300 86 75 80 110 33 52 79 123 149 3,156<br />
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4,496<br />
367 25 1,559 186 267 358 476 581 448 1,836 672 305 500 837 305 683 783 983 680 22,799<br />
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 38<br />
367 25 1,559 186 267 358 476 581 448 1,836 672 305 500 837 305 683 783 983 680 27,333<br />
0 0 957 0 0 231 11 0 0 0 0 0 0 0 0 0 0 0 0 3,427<br />
37 1 141 19 15 21 6 11 26 78 17 6 22 66 30 72 78 77 26 2,008<br />
0 0 0 0 0 0 0 0 0 1 1 0 0 872 129 184 7 0 0 1,447<br />
N/A N/A 1 N/A 0.2 N/A 1 2 2 42 N/A N/A 1 17 N/A 48 4 3 N/A 169<br />
21 1 87 10 15 18 27 29 25 95 40 17 28 81 20 41 44 55 34 1,304<br />
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 577<br />
E/T 11 158 33 58 0 N/A N/A 687 N/A N/A N/A N/A N/A 284 543 1,467 N/A 1,400 12,838<br />
E/T 1 N/A N/A N/A 0 193 63 57 37 238 N/A N/A 23 163 145 953 58 400 3,834<br />
E/T 1 91 8 196 0 334 116 137 47 113 N/A N/A 43 36 81 27 661 280 3,174<br />
E/T N/A N/A N/A N/A 0 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 3<br />
E/T 0.2 N/A N/A N/A 0 0 0.3 3 3 N/A N/A N/A 1 N/A N/A N/A N/A N/A 26<br />
E/T 0.2 N/A N/A N/A 0 0 1 2 66 N/A N/A N/A 4 N/A N/A N/A N/A N/A 193<br />
E/T 0.328 0.273 0.518 0.172 0 1.678 4.509 0.354 7.758 2.291 N/A N/A 1.160 0.729 0.613 2.427 1.312 3.700 60<br />
2,101 159 516 102 153 493 6,054 61,895 40,091 13,221 0 N/A 26,745 46,660 18,270 2370 16,474 861 1,452 251,092<br />
0 7,518 1,378 525 277 2,136 2 0 0 207256 84128 N/A 0 0 0 15,712 0 159 2,323 716,388<br />
N/A 1 21 2 2 N/A 21 0 14 0.2 0.2 3 94 16 N/A N/A N/A N/A N/A 631<br />
<strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong> 51<br />
Ecatepec<br />
Mexico<br />
Monterrey<br />
Mexico<br />
Uruapan<br />
Mexico<br />
Lasso<br />
Ecuador<br />
Medellin<br />
Colombia<br />
Pisa<br />
Chile<br />
Box Hill<br />
Australia<br />
Kawerau<br />
New Zeal<strong>and</strong><br />
ti,<br />
ctmp<br />
Total<br />
Tissue Products<br />
34 mills
Resource Management System (RMS)<br />
Personal Care<br />
<strong>2005</strong><br />
Grades<br />
Absbond<br />
Sweden<br />
Auckl<strong>and</strong><br />
New Zeal<strong>and</strong><br />
Bowling Green<br />
US<br />
Drummondville<br />
US<br />
Production ktonnes 4 5 30 30 86 18 88 86 57 4 407<br />
Energy<br />
Electricity<br />
Internal hydro power GWhe<br />
Co-generation<br />
GWhe<br />
Grid supply GWhe 5 5 24 18 48 18 38 84 34 10 283<br />
Total GWhe 5 5 24 18 48 18 38 84 34 10 283<br />
Fuels<br />
Biofuel<br />
TJfuel<br />
Fossil fuel TJfuel N/A N/A 7 9 1 29 33 88 52 N/A 220<br />
Electric boiler<br />
TJfuel<br />
Total TJfuel N/A N/A 7 9 1 29 33 88 52 N/A 220<br />
of which co-gen.<br />
Dicharges<br />
To air<br />
TJfuel<br />
NOx as NO2 tonnes N/A N/A 0.7 0.9 0.1 2.9 3.3 8.8 5.2 N/A 22<br />
SO2 tonnes N/A N/A 0 0 0 0 0 0 0 0 0<br />
Dust tonnes 0 0 0 0 0 0 0 0 0 0<br />
CO2 fossil ktonnes N/A N/A 0.4 0.5 0.1 1.6 1.8 4.9 2.9 N/A 12<br />
CO2 biogenic ktonnes 0 0 0 0 0 0 0 0 0 0<br />
To water<br />
COD tonnes 0 0 0 0 0 0 0 0 0 0 0<br />
BOD tonnes 0 0 0 0 0 0 0 0 0 0 0<br />
Suspended solids tonnes 0 0 0 0 0 0 0 0 0 0 0<br />
AOX tonnes 0 0 0 0 0 0 0 0 0 0 0<br />
P tonnes 0 0 0 0 0 0 0 0 0 0 0<br />
N tonnes 0 0 0 0 0 0 0 0 0 0 0<br />
Effluent water Mm 3 0.016 0.004 0.019 0.023 0.026 0.032 0.015 0.080 0.020 0.010 0.2<br />
Solid waste<br />
L<strong>and</strong>fill tonnes 0 365 1,002 663 0 0 0 0 0 1,031 3,062<br />
Recovery tonnes 76 710 2,410 2,048 8,180 3,411 7,266 13,818 4,633 529 43,081<br />
Hazardous tonnes 0 0 0 0 0 0 0 0 0 0 0<br />
N/A = data not available<br />
Falkenberg<br />
Sweden<br />
Gemerska<br />
Slovakia<br />
52 <strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong><br />
Gennep<br />
Netherl<strong>and</strong>s<br />
Hoogez<strong>and</strong><br />
Netherl<strong>and</strong>s<br />
Linselles<br />
France<br />
Springvale<br />
Australia<br />
Total<br />
Personal Care
Packaging<br />
Munksund<br />
Sweden<br />
Obbola<br />
Sweden<br />
New Hythe<br />
Great Britain<br />
De Hoop<br />
Nerherl<strong>and</strong>s<br />
<strong>2005</strong><br />
Grades kl, wtl kl, tl tl, fl tl, fl fl tl, fl tl, fl tl, fl,wtl fl tl, fl<br />
Aschaffenburg<br />
Germany<br />
Witzenhausen<br />
Germany<br />
Resource Management System (RMS)<br />
Production ktonnes 333 412 243 352 258 315 83 363 62 191 2,613 2,317 10 66 5,006<br />
Energy<br />
Electricity<br />
Internal hydro power GWhe 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0<br />
Co-generation GWhe 186 63 117 135 0 97 45 2 0 0 644 0 0 0 644<br />
Grid supply GWhe 167 263 4 3 130 26 2 146 25 88 853 291 15 81 1,240<br />
Total GWhe 352 326 120 137 130 124 48 148 25 88 1,497 291 15 81 1,884<br />
Fuels<br />
Biofuel TJfuel 5,935 3,727 0 0 275 61 0 74 0 484 10,555 0 39 0 10,594<br />
Fossil fuel TJfuel 305 856 2,162 2,811 1,638 2,109 839 1,396 228 705 13,051 2,897 204 1,196 17,347<br />
Electric boiler TJfuel 51 0 0 0 0 0 0 0 0 0 51 0 0 0 51<br />
Total TJfuel 6,292 4,583 2,162 2,811 1,913 2,169 839 1,470 228 1,189 23,657 2,897 243 1,196 27,992<br />
of which co-gen. TJfuel 781 264 771 706 0 410 279 74 0 0 3,284 22 0 0 3,306<br />
Dicharges<br />
To air<br />
NOx as NO2 tonnes 464 381 100 116 280 127 30 31 9 146 1,684 319 20 50 2,073<br />
SO2 tonnes 63 215 1 N/A 5 16 N/A N/A 0.4 227 527 354 0 0 882<br />
Dust tonnes 31 319 N/A N/A 1 N/A N/A N/A N/A 9 359 14 N/A 4 376<br />
CO2 fossil ktonnes 27 65 122 157 92 118 47 78 13 65 784 180 12 60 1,037<br />
CO2 biogenic ktonnes 742 463 0 0 32 3 0 4 0 48 1,292 0 5 0 1,297<br />
To water<br />
COD tonnes 5,071 2,975 200 309 210 249 0 322 39 0 9,375 2,179 N/A 37 11,591<br />
BOD tonnes 2,321 580 12 15 35 17 0 56 3 0 3,040 727 N/A 3 3,770<br />
Suspended solids tonnes 803 1,465 50 N/A 53 17 0 60 7 0 2,455 654 N/A 4 3,113<br />
AOX tonnes 0.5 1.0 N/A N/A 0.2 0.2 0 N/A N/A 0 2 N/A N/A 0 2<br />
P tonnes 3.3 18 2 N/A 1.3 0.6 0 1.6 0.5 0 28 N/A N/A 1 28<br />
N tonnes 17.2 111 22 12.00 7.49 5.50 0 24.4 1.6 0 202 N/A N/A 0 202<br />
Effluent water Mm 3 15.52 6.04 1.92 1.59 1.11 1.40 0 1.49 0.34 0 29 0.69 N/A 0 30<br />
Solid waste<br />
L<strong>and</strong>fill tonnes 6,789 10,560 31,602 2,544 0 2,158 2,629 39,645 6,806 8,936 111,669 6,341 166 4,771 122,947<br />
Recovery tonnes 5,383 19,673 1,000 20,565 16,731 22,329 3,430 6,308 37 10,467 105,924 2,140 156 9,493 117,713<br />
Hazardous tonnes 97 71 11 35 103 18 0 5 0 0 340 1,358 56 4 1,759<br />
kl = kraftliner<br />
wtl= white top liner<br />
tl = testliner<br />
fl = fluting<br />
N/A = data not available<br />
<strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong> 53<br />
Argovia<br />
Switzerl<strong>and</strong><br />
Lucca<br />
Italy<br />
Castelfranco<br />
Italy<br />
Djursl<strong>and</strong><br />
Denmark<br />
Containerboard<br />
10 mills<br />
Corrugated board<br />
73 plants<br />
Total<br />
EPS<br />
13 plants<br />
US <strong>and</strong> Mexico<br />
38 plants<br />
Packaging
Resource Management System (RMS)<br />
Forest Products<br />
Aylesford<br />
UK<br />
Laakirchen<br />
Austria<br />
np = newsprint<br />
sc = SC paper<br />
lwc = LWC paper (light-weight coated)<br />
ctmp = chemical thermomechanical pulp<br />
bk = bleached kraft pulp<br />
N/A = data not available<br />
Ortviken<br />
Sweden<br />
<strong>2005</strong><br />
Grades np sc np, lwc<br />
Östr<strong>and</strong><br />
Sweden<br />
Pulp & paper<br />
4 mills<br />
sawn<br />
bk, timber<br />
ctmp products<br />
Total<br />
Forest business<br />
7 mills<br />
54 <strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong><br />
Forest<br />
Products<br />
Production ktonnes 387 486 790 474 2,137 2,137<br />
Energy<br />
Electricity<br />
1,576 1,576<br />
Internal hydro power GWhe 0 15 0 0 15 15<br />
Co-generation GWhe 352 444 85 222 1,103 1,103<br />
Grid supply GWhe 11 263 1,756 256 2,286 131 2,417<br />
Total GWhe 363 722 1,841 478 3,404 131 3,535<br />
Fuels<br />
Biofuel TJfuel 500 0 3,084 9,064 12,649 1,105 13,754<br />
Fossil fuel TJfuel 4,110 4,480 497 645 9,732 105 9,837<br />
Electric boiler TJfuel 0 0 156 0 156 161 317<br />
Total TJfuel 4,610 4,480 3,738 9,709 22,537 1,371 23,908<br />
of which co-gen. TJfuel 2,343 2,217 375 937 5,872 5,872<br />
Dicharges<br />
To air<br />
NOx as NO2 tonnes 333 228 239 700 1,499 109 1,608<br />
SO2 tonnes 2.0 0 56 550 608 30 638<br />
Dust tonnes 1.1 N/A 17 99 117 1 118<br />
CO2 fossil ktonnes 232 246 36 50 565 8 573<br />
CO2 biogenic ktonnes 48 0 306 1,122 1,476 139 1,615<br />
To water<br />
COD tonnes 795 1,014 3,763 7,122 12,694 0 12,694<br />
BOD tonnes 21 52 140 1,249 1,462 0 1,462<br />
Suspended solids tonnes 72 29 444 92 637 0 637<br />
AOX tonnes N/A 0.2 0 5.5 5.7 0 6<br />
P tonnes 5.7 1.9 4.6 15 27.2 0 27<br />
N tonnes 3.6 3.9 91.8 111 210.3 0 210<br />
Effluent water Mm 3 5.45 6.92 11.76 14.04 38.2 0 38<br />
Solid waste<br />
1,000 m³<br />
L<strong>and</strong>fill tonnes 88,855 0 245 31 89,132 1,690 90,822<br />
Recovery tonnes 17,795 134,138 35,123 72,293 259,349 383 259,732<br />
Hazardous tonnes 0 78 158 622 858 102 960
To the readers of the <strong>SCA</strong> <strong>Environmental</strong><br />
<strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong><br />
At the request of <strong>SCA</strong>’s <strong>Environmental</strong><br />
Committee (ENV-C), we have performed<br />
a limited review of information<br />
from <strong>SCA</strong>’s Resource Management System<br />
(RMS) provided under the heading<br />
“<strong>Environmental</strong> Key Data Figures”,<br />
in the environmental commitments on<br />
page 6 <strong>and</strong> on pages 41–54 in the <strong>SCA</strong><br />
<strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong><br />
<strong>and</strong> in the PDF-file “RMS mill data”<br />
found on <strong>SCA</strong>’s website on the Internet<br />
(www.sca.com/environment).<br />
The purpose with our limited<br />
review is to express whether we have<br />
found any indications that the reporting<br />
under the heading “<strong>Environmental</strong><br />
Key Data Figures”, in the environmental<br />
commitments on page 6 <strong>and</strong> on<br />
pages 41–54 in the <strong>SCA</strong> <strong>Environmental</strong><br />
<strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong> <strong>and</strong> in the<br />
PDF-file is not, in all material aspects,<br />
performed in accordance with the criteria<br />
stated below. The limited review<br />
has been performed in accordance with<br />
FAR’s draft st<strong>and</strong>ard on independent<br />
limited reviews of voluntary separate<br />
sustainability reports.<br />
The <strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong><br />
<strong>Report</strong> <strong>2005</strong> was approved by <strong>SCA</strong>’s<br />
Corporate Management in February<br />
2006. It is the responsibility of <strong>SCA</strong>’s<br />
department for Public <strong>and</strong> <strong>Environmental</strong><br />
Affairs to enable reporting of<br />
data <strong>and</strong> information, <strong>and</strong> its processing,<br />
within the RMS. Our task is to<br />
express a report on data <strong>and</strong> information<br />
from <strong>SCA</strong>’s RMS based on our<br />
limited review.<br />
Data <strong>and</strong> information provided<br />
under the heading “<strong>Environmental</strong> Key<br />
Data Figures”, in the environmental<br />
commitments on page 6 <strong>and</strong> on pages<br />
41–54 in the <strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong><br />
<strong>Social</strong> <strong>Report</strong> <strong>2005</strong> <strong>and</strong> in the PDF-file<br />
have been prepared based on <strong>SCA</strong>’s<br />
principles for calculation <strong>and</strong> disclosure<br />
of RMS data <strong>and</strong> information.<br />
These form the criteria used to evaluate<br />
our limited review procedures.<br />
The scope of our limited review<br />
procedures included the following<br />
activities:<br />
• Discussions with members of <strong>SCA</strong>’s<br />
RMS-network on risk management<br />
issues related to RMS data <strong>and</strong> information<br />
reporting.<br />
• Review of <strong>SCA</strong>’s principles for calculation<br />
<strong>and</strong> disclosure of RMS data<br />
<strong>and</strong> information.<br />
• Overall review of <strong>SCA</strong>’s systems<br />
<strong>and</strong> routines of data registration<br />
for environmental accounting <strong>and</strong><br />
reporting.<br />
• Visit at a paper mill <strong>and</strong> interviews<br />
in order to assess whether data <strong>and</strong><br />
information is reported in a st<strong>and</strong>ardized<br />
format <strong>and</strong> in accordance with<br />
established principles, in all material<br />
aspects.<br />
• Review of the scope <strong>and</strong> limitations<br />
of the content of the information<br />
given under the heading “<strong>Environmental</strong><br />
Key Data Figures” <strong>and</strong> on<br />
pages 41–54 in the <strong>SCA</strong> <strong>Environmental</strong><br />
<strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong> <strong>and</strong> in the<br />
PDF-file.<br />
• Review of underlying documentation,<br />
on a test basis, to assess whether the<br />
information under the heading “<strong>Environmental</strong><br />
Key Data Figures”, in the<br />
environmental commitments on page<br />
6 <strong>and</strong> on pages 41–54 in the <strong>SCA</strong><br />
<strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong><br />
<strong>2005</strong>, in the PDF-file <strong>and</strong> in the RMS<br />
are based on that documentation.<br />
• Discussions with <strong>SCA</strong> Director of <strong>Environmental</strong><br />
Affairs <strong>and</strong> responsible<br />
RMS-network on the results of our<br />
limited review.<br />
Based on our limited review procedures,<br />
nothing has come to our<br />
attention that causes us to believe that<br />
data <strong>and</strong> information provided under<br />
the heading “<strong>Environmental</strong> Key<br />
Data Figures”, in the environmental<br />
commitments on page 6 <strong>and</strong> on pages<br />
41–54 in the <strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong><br />
<strong>Social</strong> <strong>Report</strong> <strong>2005</strong> <strong>and</strong> in the PDF-file<br />
which are extracted from <strong>SCA</strong>’s RMS<br />
have not, in all material aspects, been<br />
prepared in accordance with the above<br />
stated criteria.<br />
Stockholm, March 9, 2006<br />
Deloitte AB<br />
Svante Forsberg<br />
Authorized Public Accountant<br />
Åse Bäckström<br />
Expert member FAR<br />
Statement of limited review<br />
<strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong> 55
Organizational structure<br />
<strong>SCA</strong> sustainability structure<br />
The Sustainability Council is comprised<br />
of representatives from senior corporate<br />
management. It provides overall<br />
leadership <strong>and</strong> accountability for <strong>SCA</strong><br />
<strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> Responsibility<br />
activities.<br />
Two committees (<strong>Environmental</strong><br />
<strong>and</strong> Corporate <strong>Social</strong> Responsibility)<br />
report to the Sustainability Council<br />
<strong>and</strong> their two chairpersons report<br />
directly to the CEO. The committees<br />
identify measures that <strong>SCA</strong> can or<br />
should take. They coordinate environmental<br />
<strong>and</strong> social initiatives throughout<br />
the Group.<br />
The key to the committees’ success<br />
is a double governance structure, which<br />
embeds responsibility throughout the<br />
organisation. Ten environmental <strong>and</strong><br />
social networks carry out extensive<br />
cross-sectional work throughout the<br />
Group’s various business areas. At<br />
<strong>SCA</strong> Group Sustainability Council<br />
(Finance, Environment, <strong>Social</strong> Responsibility)<br />
Jan Åström<br />
Chairman, CEO<br />
Senior Corporate Management<br />
the same time, responsibility for the<br />
management of specific issues rests the<br />
relevant the business area. <strong>SCA</strong> allows<br />
its business units considerable freedom<br />
in determining their own objectives<br />
<strong>and</strong> practises within the framework<br />
of policies <strong>and</strong> objectives set by the<br />
Sustainability Council <strong>and</strong> applied by<br />
the networks. In giving business units<br />
continuous autonomy over their environmental<br />
<strong>and</strong> social activities, <strong>SCA</strong><br />
enhances the success of its initiatives by<br />
increasing the sense of local relevance<br />
<strong>and</strong> ownership.<br />
Dialogue with stakeholders occurs<br />
at the central, regional or local level<br />
depending of the type of stakeholder<br />
organisation. Progress on environmental<br />
<strong>and</strong> social issues is communicated<br />
to stakeholders, mainly through the<br />
Annual <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong><br />
<strong>Report</strong>.<br />
Chairman ENV-C Chairman CSR-C (in attendance)<br />
<strong>Environmental</strong> Committee (ENV-C)<br />
Anders Hildeman, Chairman<br />
Senior Vice President<br />
Public <strong>and</strong> <strong>Environmental</strong> Affairs<br />
<strong>SCA</strong> Group Network<br />
Networks:<br />
Product Safety, Resource Management,<br />
<strong>Environmental</strong> Management System, Legislation,<br />
Emissions Trading, Water Management<br />
<strong>Social</strong> Responsibility<br />
Committee (CSR-C)<br />
Karin Eliasson, Chairman<br />
Senior Vice President, Human Resources<br />
<strong>SCA</strong> Group Network<br />
Workgroups:<br />
Health & Safety, Employee Indicators,<br />
Code of Conduct Implementation,<br />
<strong>Social</strong> Due Diligence<br />
MEET OUR TEAMS<br />
Our teams, the <strong>Environmental</strong><br />
Committee (ENV-C) <strong>and</strong> the Corporate<br />
<strong>Social</strong> Responsibility Committee (CSR-C)<br />
are interested in your comments.<br />
<strong>Environmental</strong> issues<br />
Do not hesitate to contact<br />
Patrik Isaksson,<br />
Director <strong>Environmental</strong> Affairs<br />
By e-mail to patrik.isaksson@sca.com<br />
By mail to <strong>SCA</strong>, Box 7827, SE-103 97<br />
Stockholm, Sweden<br />
<strong>Social</strong> Issues:<br />
Please contact<br />
Yogi Pillay, Manager Corporate <strong>Social</strong><br />
Responsibility Programmes<br />
By e-mail: yogi.pillay@sca.com<br />
By mail to <strong>SCA</strong>, Box 7827, SE-103 97<br />
Stockholm, Sweden<br />
Members of the <strong>Environmental</strong><br />
Committee (ENV-C):<br />
Anders Hildeman, Roine Morin,<br />
John Swift, Berit Gullbransson,<br />
Björn Lyngfelt, Patrik Isaksson,<br />
Kirsty Halliday, Per Arfvidsson<br />
<strong>and</strong> Hans Walden<br />
Members of the Corporate <strong>Social</strong><br />
Responsibility Committee (CSR-C)<br />
Sven Gatenheim, Tan Han Keat, Håkan<br />
Andersson, Tony Atherton, John<br />
O’Rourke, Christina Rindegård, Karin<br />
Eliasson, Michael Runnakko, Caroline<br />
Brent, <strong>and</strong> Bo Rhodiner<br />
56 <strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong>
Glossary<br />
AOX, Absorbable organic halogens expresses<br />
the amount of chlorine-bound organic substances.<br />
Some of these substances accumulate in fish <strong>and</strong><br />
fish-eating birds.<br />
Bribery is the giving or receiving of any undue reward<br />
by or to any person to influence their behavior<br />
in a manner contrary to the principles of honesty <strong>and</strong><br />
integrity.<br />
Business partner A client, customer, or a supplier<br />
of the company. Any company that conducts business<br />
in association with <strong>SCA</strong> may be regarded as a<br />
business partner.<br />
Child Labor refers to the employment of workers<br />
who do not meet the applicable national minimum<br />
legal age requirement.<br />
The Code of Conduct is a formal statement of the<br />
values <strong>and</strong> business practices of a company. A code<br />
is a statement of minimum st<strong>and</strong>ards, together with<br />
a pledge by the company to observe them <strong>and</strong> to<br />
require its contractors, subcontractors<strong>and</strong> suppliers,<br />
to observe them.<br />
Compulsory Labor This includes work done in a<br />
situation where the workers have to lodge a monetary<br />
deposit or identity papers with their employer.<br />
Corporate <strong>Social</strong> Responsibility (CSR) Managing<br />
a company’s business processes in a way that creates<br />
economic value while also respecting people <strong>and</strong> communities<br />
<strong>and</strong> minimizing environmental impact.<br />
BAT, Best Available Technology officially used<br />
terminology to describe the state-of-the-art technology<br />
that industry should use in the field of activity<br />
concerned (see IPPC directive <strong>and</strong> BREF).<br />
BOD, Biochemical oxygen dem<strong>and</strong> Water emission<br />
factor which describes the amount of oxygen<br />
consumed during biodegradation of dissolved<br />
organic matter in effluent water, without describing<br />
the specific substances present. High BOD values<br />
indicate depletion of the normal oxygen content of<br />
the water environment. It is measured over 7 days in<br />
<strong>SCA</strong>’s Swedish mills <strong>and</strong> 5 days in the rest of Europe,<br />
in accordance with national legislative systems.<br />
BREF Best Available Technology Reference Document.<br />
This document identifies BAT (Best Available<br />
Technology) for the 32 sectors selected by the EU,<br />
including the pulp <strong>and</strong> paper industry. All pulp <strong>and</strong><br />
paper mills with a capacity exceeding 20 tonnes/day<br />
should follow the IPPC directive (see IPPC)<br />
Biodiversity A term describing the multitude of<br />
life-forms <strong>and</strong> species (flora <strong>and</strong> fauna) in an ecosystem.<br />
An ecosystem is a biological community living<br />
in a particular physical environment.<br />
Benchmarking Method of comparing performance<br />
<strong>and</strong> productivity of manufacturing units. Used<br />
extensively by <strong>SCA</strong> in all its families of operation:<br />
paper mills, fluff production units, packaging integrated<br />
box plants, combustion plants, etc …<br />
COD, Chemical oxygen dem<strong>and</strong> Water emission<br />
factor which describes the amount of oxygen which<br />
is consumed when dissolved matter in effluent water<br />
oxidizes. High COD values can indicate a risk of<br />
depletion of the normal oxygen content in the water<br />
environment.<br />
CO2, Carbon dioxide a gaseous compound emitted<br />
naturally through geological activity during the<br />
decomposition process <strong>and</strong> through human activity.<br />
Industry <strong>and</strong> transport <strong>and</strong> heating/cooling are currently<br />
the largest emitters of CO2.<br />
Carbon trading The trading of carbon emissions<br />
credits by companies or, at, a different level, by countries,<br />
within a global limitation scheme, (designed<br />
to achieve global emissions reductions using market<br />
mechanisms.<br />
Carbon sink As they grow, forests transform gaseous<br />
carbon into solid form, thereby absorbing CO2<br />
whilst simultaneously producing oxygen. Forests,<br />
agricultural l<strong>and</strong> use <strong>and</strong> the world’s oceans are considered<br />
to be “carbon sinks” by current science.<br />
Chain-of-Custody The traceability of the origins<br />
of a product through all its transformations from<br />
raw material to finished product. In the <strong>SCA</strong> context,<br />
Chain-of-Custody certification links <strong>SCA</strong>’s products<br />
with its FSC-certified forests.<br />
CHP See Co-generation or Combined Heat <strong>and</strong><br />
Power.<br />
Chemicals All chemical compounds involved in the<br />
wood fiber industry’s manufacturing output need to<br />
be identified <strong>and</strong> monitored through the product life<br />
cycle. This process is being addressed by <strong>SCA</strong> <strong>and</strong><br />
its manufacturing counterparts across the European<br />
Union. The European Commission is preparing new<br />
legislation on chemicals in its REACH project (see<br />
REACH).<br />
Chemical pulp Pulp from wood fibers which is<br />
processed chemically, normally by cooking.<br />
Chemical Thermo Mechanical Pulp, CTMP<br />
A high yield pulp (about 90–95 percent yield from<br />
the wood) which is obtained by heating <strong>and</strong> then<br />
grinding chemically pre-treated spruce chips in refining<br />
machinery.<br />
Climate Change Also defined as global warming.<br />
Human activity contributes to the warming of the<br />
global environment <strong>and</strong> its resulting effects, which<br />
range from higher temperatures to eccentric weather<br />
patterns <strong>and</strong> melting of the ice caps.<br />
Co-generation or Combined Heat <strong>and</strong> Power,<br />
CHP Generation of electricity <strong>and</strong> heat from fuel.<br />
Co-generation has higher total efficiency than separated<br />
production of thermal energy <strong>and</strong> electricity<br />
respectively.<br />
Containerboard Paper specially manufactured for<br />
the production of corrugated board.<br />
Corrugated board Two outer layers of paper with<br />
an intermediate layer of fluting. Also called medium.<br />
(See liner <strong>and</strong> fluting).<br />
Council of Europe Not to be confused with the<br />
European Commission <strong>and</strong> its Council of Ministers,<br />
grouping the heads of State of the European Union.<br />
The Council of Europe, based in Strasbourg, comprises<br />
46 Western <strong>and</strong> Eastern Europe countries. It<br />
was set up to defend human rights, parliamentary democracy<br />
<strong>and</strong> the rule of law, develop continent-wide<br />
agreements to st<strong>and</strong>ardise social <strong>and</strong> legal practices<br />
<strong>and</strong> promote a European identity with shared values.<br />
Dow Jones Sustainability Index It is the share<br />
index of companies that are considered leaders in the<br />
area of sustainable development <strong>and</strong> that conduct<br />
their businesses accordingly.<br />
EDANA International association serving the nowovens<br />
<strong>and</strong> related hygiene industries. EDANA exists<br />
to create the foundation for sustainable growth of<br />
the nonwovens <strong>and</strong> associated hygiene industries<br />
through active promotion, education <strong>and</strong> dialogue.<br />
Website: www.edana.org <strong>and</strong> www.hapco.edana.org<br />
EMAS Eco-Management <strong>and</strong> Audit Scheme:<br />
created by European Council Regulation.<br />
Glossary<br />
<strong>Environmental</strong> Management System That part<br />
of the overall management system which includes the<br />
structure, practices, procedures <strong>and</strong> resources for the<br />
systematic implementation of the organization’s own<br />
environmental policy.<br />
EPD, <strong>Environmental</strong> Product Declaration type<br />
of product labelling. To avoid misleading labelling<br />
of the “dolphin-friendly” type, <strong>SCA</strong> favours<br />
specific product declarations, which are accurate,<br />
informative <strong>and</strong> clearly state their objective (Type 3<br />
EPD). Also see Eco-labelling. As a principle, <strong>SCA</strong> is<br />
opposed to eco-labelling for packaging, as it would<br />
cause confusion with the product being packed.<br />
ESAVE Structured energy-saving programme introduced<br />
by <strong>SCA</strong> in its energy intensive manufacturing<br />
units in 2002. Its aim is to substantially reduce the<br />
consumption of energy in production units.<br />
ETS, Emission Trading Scheme (or System)<br />
greenhouse gas emission allowance trading scheme<br />
for the cost-effective reduction of such emissions in<br />
the European union, made in the context of the Kyoto<br />
Protocol. Installations operating in the paper <strong>and</strong><br />
board industry, in the energy sector, iron <strong>and</strong> steel<br />
production <strong>and</strong> the mineral industry apply ETS as of<br />
January 1st, <strong>2005</strong> in two initial phases; from <strong>2005</strong> to<br />
2007 <strong>and</strong> from 2008 to 2012. CO2 emissions are subject<br />
to permits <strong>and</strong> fines (if emissions are above the<br />
cap set for the operation). The “allowance” means<br />
the entitlement to emit 1 tonne of carbon dioxide.<br />
ETS, European Tissue Symposium organisation<br />
based in Brussels made up of European Tissue<br />
producers, engaged in a dialogue with the European<br />
Commission, the Council of Europe <strong>and</strong> other international<br />
organisations. ETS has been involved in<br />
the development of the recently published Council of<br />
Europe Guidelines For Tissue Paper Kitchen Towels<br />
<strong>and</strong> Napkins.<br />
EUR The exchange rate EUR–SEK used in this<br />
report is based on the average rate dated from December<br />
31, <strong>2005</strong> being 1 EUR=9.42 SEK.<br />
Forced Labor This includes indentured, debt bondage<br />
or involuntary labor of any kind.<br />
<strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong> 57
Glossary<br />
Freedom of Association refers to the right of<br />
employees to lawfully join associations of their own<br />
choosing, peacefully associate, organize or bargain<br />
collectively.<br />
FR, Frequency Rate The number of accidents/incidents<br />
per million hours worked. It is an indicator<br />
of Safety statistics in industry (also see LTA <strong>and</strong><br />
Incidence Rate).<br />
Fresh wood fiber Also referred to as virgin fiber.<br />
First generation use sustainable raw material derived<br />
from wood.<br />
FSC, Forest Stewardship Council an international<br />
organization promoting responsible forest<br />
management. FSC has developed principles for forest<br />
management used for certifying the management of<br />
forest holdings, <strong>and</strong> a system of tracing, verifying<br />
<strong>and</strong> labelling timber <strong>and</strong> wood products which is<br />
based on FSC-certified forests. <strong>SCA</strong> is an active supporter<br />
of FSC.<br />
Green energy In the case of <strong>SCA</strong>, energy produced<br />
by burning recovered waste products such as bark,<br />
sawdust, plastic rejects, production sludge or other<br />
materials.<br />
GWh Gigawatt hours, unit of energy measurement<br />
(electricity <strong>and</strong> heat). 1GWh=1 million kWh.<br />
HAPCO Absorbent Hygiene Products Manufacturers<br />
Committee; a group member of EDANA, of<br />
which <strong>SCA</strong> Hygiene is an active member; Website:<br />
www.hapco.edana.org<br />
Human Rights are based on the recognition of<br />
the inherent dignity <strong>and</strong> the equal <strong>and</strong> inalienable<br />
rights of all members of the human family, <strong>and</strong> are<br />
the foundation of freedom, justice, <strong>and</strong> peace in the<br />
world. They are defined in the Universal Declaration<br />
of Human Rights (1948).<br />
Incidence Rate, IR Number of incidents per 100<br />
employees. Also see LTA’s <strong>and</strong> Frequency Rate.<br />
International Labor Organization, ILO The International<br />
Labor Organization is a United Nations<br />
Agency, which establishes Conventions on Labor<br />
st<strong>and</strong>ards that are binding on member states when<br />
ratified. There are over 150 ILO Conventions, 8 of<br />
which are “Core Conventions” since they embody<br />
fundamental human rights <strong>and</strong> set minimum labor<br />
st<strong>and</strong>ards.<br />
IPP, Integrated Product Policy In a communication<br />
published in June 2003, the EC states that “its<br />
primary aim is to reduce the environmental impacts<br />
of products throughout their life cycle, harnessing<br />
where possible a market driven approach within<br />
which competitive concerns are integrated”. The<br />
IPP encourages “green products, “green” public<br />
procurement <strong>and</strong> eco-labelling.<br />
IPPC The European Union’s Integrated Pollution<br />
<strong>and</strong> Prevention Control directive (96/61/EC).<br />
ISO 14001 The st<strong>and</strong>ard published by the International<br />
St<strong>and</strong>ards Organization, specifying the requirements<br />
of an environmental management system.<br />
All <strong>SCA</strong> European mills are certified ISO 14001.<br />
Kraftliner Packaging paper made of fresh wood, as<br />
opposed to testliner <strong>and</strong> medium (recycled ).<br />
Kyoto Protocol United Nations framework<br />
convention on climate change. Voluntary agreement<br />
between industrialised nations, ratified by Europe<br />
<strong>and</strong> the object of European directive 2003/87/EC, to<br />
reduce by 2012 the levels of man-made CO2 below<br />
the level reached in 1990.<br />
Leach/Leachate The percolation of liquids<br />
through the earth. The leaching natural process can<br />
pollute underground water or surface water which is<br />
situated below a retention basin of wastewater or a<br />
l<strong>and</strong>fill which is biologically active for example.<br />
LWC, Light Weight Coated paper is a coated<br />
super calendered paper with a high mechanical pulp<br />
content. Used for periodicals <strong>and</strong> advertising materials<br />
with dem<strong>and</strong>ing colour-printing requirements.<br />
Life Cycle Assessment, LCA A method of<br />
assessing the environmental impact of a product,<br />
taking account of its entire lifespan from raw<br />
material extraction to waste disposal. The process<br />
is described in the ISO14040 series. SPINE is the<br />
common database enabling comparison between<br />
product elements.<br />
Liner The surface layer of corrugated board. Available<br />
in various grades, such as kraftliner (based on<br />
fresh wood fiber) <strong>and</strong> testliner or medium (based on<br />
recycled fiber).<br />
Liquor Substance(s) used in or resulting from<br />
chemical pulp production. White liquor is the cooking<br />
liquor (sodium hydroxide <strong>and</strong> sodium sulphide).<br />
Black liquor is the waste liquor from the completed<br />
production cycle. Most of it is re-used as fuel <strong>and</strong><br />
burnt in the recovery boiler. Green liquor is an aqueous<br />
solution, the residue of burning the black liquor.<br />
LTA, Lost Time Accidents Accidents that cause<br />
the absence of an employee from work for X<br />
number of days. One of the main Safety indicators in<br />
industry. See also FR (Frequency rate) <strong>and</strong> Incidence<br />
Rate (IR).<br />
MBT, Mechanical-biological treatment hybrid<br />
technology combining mechanical sorting of waste<br />
<strong>and</strong> biological treatment to produce biogas. A<br />
further processing stage can convert the residual<br />
material into refuse-derived fuel.<br />
Mechanical pulp Debarked wood which is ground<br />
or chipped for mechanical refining to separate the<br />
fibers which form pulp.<br />
Monitoring is the process of regularly collecting<br />
information to check performance against certain<br />
criteria.<br />
MSW, Municipal Solid Waste an important fraction<br />
(15%) of the total solid waste. Disposable diapers <strong>and</strong><br />
incontinence products are part of the MSW.<br />
N, Nitrogen A chemical element, also present in<br />
wood, that is necessary for plant <strong>and</strong> animal life.<br />
Excess N in water can cause major increases in the<br />
amount of algae, which can lead to oxygen deficiency<br />
when the algae decompose.<br />
Newsprint Paper for newspapers produced from<br />
mechanical pulp based on fresh fiber or recovered<br />
fiber.<br />
Non-governmental Organizations (NGOs) are<br />
national, international, <strong>and</strong> community based<br />
groups that raise awareness about social, environmental,<br />
community <strong>and</strong> human rights issues.<br />
Old Corrugated Container, OCC Used corrugated<br />
board collected for recycling.<br />
P, Phosphorus A chemical element, also present<br />
in wood, that is necessary for plant <strong>and</strong> animal life.<br />
Excess P in water can cause nutrient enrichment.<br />
PSR, Product Specific Requirement (also see<br />
EPD, <strong>Environmental</strong> Product Declaration): list of<br />
requirements enabling <strong>SCA</strong> to label its products in an<br />
accurate <strong>and</strong> informative way, avoiding unverifiable<br />
labelling.<br />
RAP, Regulatory Affairs Platform the network<br />
keeps <strong>and</strong> updates the list of <strong>SCA</strong> representatives<br />
in organisations at EU <strong>and</strong> national levels. It is in<br />
charge of communicating <strong>and</strong> defending <strong>SCA</strong> positions<br />
to lawmakers directly <strong>and</strong> through industry<br />
organisations.<br />
REACH, Regulation, Evaluation <strong>and</strong> Authorization<br />
of Chemicals Complex European legislation<br />
in preparation on the use of chemicals by industry.<br />
Some 30 000 chemicals will have to be registered<br />
with a Central European chemical agency after testing.<br />
Companies will have to obtain authorization to<br />
use hazardous chemicals.<br />
RMS <strong>SCA</strong>’s Resource Management System: a means<br />
of collecting <strong>and</strong> collating all environmental data<br />
<strong>and</strong> resource utilization within the <strong>SCA</strong> Group.<br />
Recovered fiber Paper-making fiber derived from<br />
a secondary source, such as used paper <strong>and</strong> board,<br />
used for recycling.<br />
Renewable All materials which can be re-grown or<br />
produced without depletion of natural resources.<br />
SC Super Calendared printing paper with a high<br />
gloss surface <strong>and</strong> with a high mechanical <strong>and</strong>/or deinked<br />
pulp content. Mainly used for periodicals <strong>and</strong><br />
advertising materials.<br />
SRI, <strong>Social</strong>ly-responsible investment a method<br />
of selecting stocks for investment using criteria<br />
related to a company’s environmental, social <strong>and</strong><br />
ethical performance.<br />
Sludge Residue from the production of paper;<br />
consists of inert materials, mainly small fiber debris,<br />
filler <strong>and</strong> other inert materials. It used to be sent to<br />
l<strong>and</strong>fill. Nowadays used as ‘new’ raw material <strong>and</strong><br />
incinerated with energy recovery.<br />
Solid wood products Wood sawn into various<br />
dimensions <strong>and</strong> sizes for furniture, joinery <strong>and</strong><br />
construction use.<br />
Stakeholders Groups of people with whom an organization<br />
has active relationships, <strong>and</strong> with whom<br />
effective dialogue is necessary to the functioning of<br />
the business. Shareholders, authorities, customers,<br />
58 <strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong>
employees <strong>and</strong> NGOs are all stakeholders in <strong>SCA</strong>’s<br />
business activities.<br />
Sustainability The ultimate (unreachable) goal of<br />
sustainable development.<br />
Sustainable Development Bringing into decision-<br />
making processes the three interlinked factors –<br />
economic growth <strong>and</strong> social <strong>and</strong> environmental<br />
care – which enable society to meet the needs of the<br />
present without compromising the needs of future<br />
generations. Also referred to as the “triple bottom<br />
line”.<br />
TCF, Totally Chlorine Free Paper pulp which is<br />
bleached without using chlorine in any form.<br />
TMP, Thermo Mechanical Pulp A high yield pulp<br />
(about 90-95 percent yield from the wood) which is<br />
obtained by heating spruce chips <strong>and</strong> then grinding<br />
them in refiners.<br />
Tork One of the br<strong>and</strong>s of <strong>SCA</strong> Hygiene Products;<br />
Away from home tissue.<br />
TJ, Terajoule a unit used to measure energy (fuel).<br />
Testliner Packaging paper made from recycled<br />
fiber. Medium or fluting is the rippled middle layer in<br />
corrugated board packaging.<br />
Tissue Creped soft paper which is the basis for<br />
hygiene products such as napkins, toilet paper <strong>and</strong><br />
towels, <strong>and</strong> towelling products for institutions,<br />
hotels, etc.<br />
TWh, TeraWatt hour Unit of energy measurement.<br />
1 TWh=10 Million KWh<br />
Waste To <strong>SCA</strong>, waste comprises only materials<br />
leaving our production units which cannot be used<br />
for any further useful purpose. Recovered paper<br />
<strong>and</strong> fiber are excluded, since they form part of <strong>SCA</strong>’s<br />
main raw materials.<br />
Chain -of-Custody verification<br />
for this report<br />
This document was produced<br />
in accordance with the rules<br />
of the Forest Stewardship<br />
Council (FSC).<br />
• Printed on coated publication<br />
paper GraphoCote LWC<br />
80 gr/m 2 .<br />
• The paper is made from virgin<br />
wood fibre from <strong>SCA</strong> FSC<br />
certified forest l<strong>and</strong> in northern<br />
Sweden.<br />
Glossary<br />
• The paper was produced at the<br />
Ortviken paper mill in Sundsvall,<br />
Sweden, from virgin wood fibre<br />
<strong>and</strong> kraft pulp from the Östr<strong>and</strong><br />
pulp mill in Timrå, Sweden.<br />
Ortviken is certified according to<br />
ISO 14001 <strong>and</strong> Chain-of-Custody<br />
certified according to FSC.<br />
• The kraft pulp from Östr<strong>and</strong> is<br />
bleached without the use of chlorine<br />
in any form (TCF). Östr<strong>and</strong> is<br />
certified according to ISO 14001<br />
<strong>and</strong> Chain-of-Custody certified<br />
according to FSC.<br />
• The paper meets the criteria of the<br />
Nordic Swan environmental seal.<br />
• Printed at El<strong>and</strong>ers Gummessons<br />
AB, Falköping, Sweden, which<br />
is Chain-of-Custody certified<br />
according to FSC.<br />
<strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong> 59
<strong>SCA</strong> in the world<br />
Europe, Africa <strong>and</strong> the Middle East<br />
Austria, Belgium, Czech Republic, Denmark,<br />
Estonia, Finl<strong>and</strong>, France, Germany, Greece,<br />
Hungary, Irel<strong>and</strong>, Italy, Latvia, Lithuania,<br />
Netherl<strong>and</strong>s, Norway, Pol<strong>and</strong>, Portugal, Romania,<br />
Russia, Slovakia, Spain, Sweden, Switzerl<strong>and</strong>,<br />
United Kingdom, Turkey, South Africa, Tunisia,<br />
Israel.<br />
Headquarters<br />
Svenska Cellulosa<br />
Aktiebolaget <strong>SCA</strong> (publ)<br />
Box 7827<br />
SE-103 97 STOCKHOLM<br />
Sweden<br />
Visitors: Stureplan 3<br />
Tel. +46-8 788 51 00<br />
Fax +46-8 660 74 30<br />
www.sca.com<br />
Publisher<br />
Svenska Cellulosa<br />
Aktiebolaget, <strong>SCA</strong> (publ)<br />
Stureplan 3<br />
SE-103 97 Stockholm<br />
Sweden<br />
Telephone<br />
+46-8 788 51 00<br />
www.sca.com<br />
Concept & Editor<br />
<strong>SCA</strong> <strong>and</strong> Luc Rivet<br />
Business groups<br />
Consumer Tissue<br />
Europe <strong>and</strong><br />
Personal Care<br />
München Airport Center<br />
(MAC)<br />
Postfach 241540<br />
DE-85356 MÜNCHEN<br />
FLUGHAFEN<br />
Germany<br />
Visitors:<br />
Terminalstrasse Mitte 18<br />
Tel. +49-89 9 70 06-0<br />
Fax +49-89 9 70 06-204<br />
Produced <strong>and</strong><br />
Designed by<br />
Hallvarsson & Halvarsson AB<br />
Stockholm, Sweden<br />
Printed by<br />
El<strong>and</strong>ers Gummesson AB,<br />
Falköping,Sweden<br />
Printed on<br />
<strong>SCA</strong> GraphoCote, 80 g.<br />
The cover is on<br />
Arctic the Matt 250 g.<br />
North, Central <strong>and</strong> South America<br />
Canada, Mexico, USA, Belize, Costa Rica,<br />
Dominican Republic, El Salvador, Guatemala,<br />
Honduras, Jamaica, Nicaragua, Panama,<br />
Puerto Rico, Argentina, Bolivia, Chile, Colombia,<br />
Ecuador, Peru, Venezuela.<br />
Packaging Europe<br />
Culliganlaan 1D<br />
B-1831 DIEGEM<br />
Belgium<br />
Tel. +32-2 718 3711<br />
Fax +32-2 715 4815<br />
Forest Products<br />
SE-851 88 SUNDSVALL<br />
Sweden<br />
Visitors: Skepparplatsen 1<br />
Tel. +46-60 19 30 00,<br />
19 40 00<br />
Fax +46-60 19 33 21<br />
Photography<br />
Magnus Fond,<br />
Bengt Olof Olsson/Bildhuset,<br />
Claes Grundsten/Bildhuset,<br />
Hans Bjurling/Johnér Bildbyrå,<br />
Per Magnus Persson/Johnér<br />
Bildbyrå<br />
Americas<br />
1510 Chester Pike,<br />
Baldwin Tower<br />
EDDYSTONE, PA 19022<br />
USA<br />
Tel. +1-610 499 3700<br />
Fax +1-610 499 3391<br />
A minimum of 30% of the<br />
wood fibre in this printed<br />
matter comes from<br />
well-managed forests,<br />
independently certified in<br />
accordance with the rules<br />
of the Forest Stewardship<br />
Council (FSC). FSC<br />
Trademark 1996.<br />
Forest Stewardship<br />
Council A.C.<br />
SGS-COC-1050<br />
Asia <strong>and</strong> Australasia<br />
China, Indonesia, Japan, Malaysia, Philippines,<br />
Singapore, South Korea, Taiwan, Thail<strong>and</strong>,<br />
Australia, Fiji, New Zeal<strong>and</strong><br />
Asia Pacific<br />
1958 Chenghang Road<br />
Pudong, Minhang district<br />
SHANGHAI 201114<br />
China<br />
Tel +86 21 5433 5200<br />
Fax +86 21 5433 2243<br />
Other Companies<br />
AB <strong>SCA</strong> FINANS<br />
Box 7827<br />
SE- 103 97 STOCKHOLM<br />
Sweden<br />
Visitors: Stureplan 3<br />
Tel +46-8 788 51 00<br />
Fax +46-8 788 53 21<br />
<strong>SCA</strong> FÖRSÄKRINGS-<br />
AKTIEBOLAG<br />
Box 7827<br />
SE- 103 97 STOCKHOLM<br />
Sweden<br />
Visitors: Stureplan 3<br />
Tel +46-8 788 51 00<br />
Fax +46-8 788 53 39<br />
60 <strong>SCA</strong> <strong>Environmental</strong> <strong>and</strong> <strong>Social</strong> <strong>Report</strong> <strong>2005</strong>
SVENSKA CELLULOSA<br />
AKTIEBOLAGET <strong>SCA</strong> (publ)<br />
Box 7827, SE-103 97 Stockholm, Sweden<br />
Tel +46-8 788 51 00, fax +46-8 660 74 30<br />
Org. nr: 556012-6293<br />
www.sca.com<br />
Business groups<br />
<strong>SCA</strong> Tissue Europe<br />
<strong>and</strong> <strong>SCA</strong> Personal Care<br />
München Airport Center (MAC)<br />
Postfach 241540<br />
DE-85336 MÜNCHEN-<br />
FLUGHAFEN<br />
Germany<br />
Visitors:<br />
Terminalstrasse Mitte 18<br />
Tel +49-89 9 70 06-0<br />
Fax +49-89 9 70 06-204<br />
<strong>SCA</strong> Packaging Europe<br />
Culliganlaan 1D<br />
B-1831 DIEGEM<br />
Belgium<br />
Tel +32-2 718 3711<br />
Fax +32-2 715 4815<br />
<strong>SCA</strong> Forest Products<br />
SE-851 88 SUNDSVALL<br />
Sweden<br />
Visitors: Skepparplatsen 1<br />
Tel +46-60-19 30 00, 19 40 00<br />
Fax +46-60-19 33 21<br />
<strong>SCA</strong> Americas <strong>and</strong><br />
<strong>SCA</strong> Personal Care<br />
North America<br />
Cira Centre<br />
Suite 2600<br />
2929 Arch Street<br />
Philadelphia, USA<br />
PA 19104<br />
Tel +1 610 499 3700<br />
Fax +1 610 499 3391<br />
<strong>SCA</strong> Asia Pacific<br />
1958 Chenhang Road<br />
Pudong, Minhang District<br />
SHANGHAI 201114<br />
China<br />
Tel +86 21 5433 5200<br />
Fax +86 21 5433 2243