Power life of - SCA

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Power life of - SCA

3.2012 A mAgAzine from sca on trends, mArkets And business

Women sail

under the

SCA flAg

Reforesting

Brazil

The booming

cleaning business

CHINA

tHe

WoRld’S

BeSt

CoNSUMPtIoN

StoRy

Power

of life

4 tips from

a stock market

millionaire


Shape is a magazine from SCA,

primarily geared toward customers,

shareholders and analysts, but also

for journalists, opinion leaders and

others interested in SCA’s business

and development. Shape is

published four times a year. The next

issue is due in December 2012.

Publisher

Joséphine Edwall-Björklund

Managing Editor

Marita Sander

Editorial

Anna Gullers,

Ylva Carlsson, Inger Finell

Appelberg

Design

Markus Ljungblom, Kristin Päeva

Appelberg

Printer

Sörmlands Grafi ska AB,

Katrineholm

Address

SCA, Corporate Communications,

Box 200, 101 23 Stockholm,

Sweden.

Telephone +46 8 7885100

Fax +46 8 6788130

SCA Shape is published in Swedish, English,

Spanish, German, French, Dutch and Italian.

The contents are printed on GraphoCote

90 grams from SCA. Reproduction only by

permission of SCA Corporate Communications.

The opinions expressed herein are

those of the authors or persons interviewed

and do not necessarily refl ect the views of

the editors or SCA. You can subscribe to SCA

Shape or read it as a pdf at www.sca.com.

Address changes can done at

www.sca.com/subscribe or by e-mailing

sophie.brauner@sca.com

3.2012 A MAGAZINE FROM SCA ON TRENDS, MARKETS AND BUSINESS

Women sail

under the

SCA FLAG

Reforesting

Brazil

The booming

cleaning business

CHINA

THE

WORLD’S

BEST

CONSUMPTION

STORY

Power

of life

Cover photo:

Getty Images

2 SCA SHAPE 3 2012

4 TIPS FROM

A STOCK MARKET

MILLIONAIRE

MATTIAS ANDERSSON is an

enthusiastic contributor to Shape.

In the past, he has followed Swedish

domestic politics, business

and technology and climbed

mountains to report on the Soviet

war in Afghanistan. Shape has

long benefi ted from his breadth

of knowledge and desire to

analyze the economic and social

trends shaping the world. “Every

time I’ve written for Shape, I’ve

learned something new about

the challenges and opportunities

that will shape the world in the

coming years,” he says.

Andersson has written a num-

Contributor

SCA’S SOCIAL MEDIA SITES

Youtube.com/

SCAeveryday shows

commercials and videos from SCA’s

press conferences, presentations

and interviews with executives and

employees.

Facebook.com/SCA is

intended to attract talent,

engage users and provide information

in a way that complements sca.com.

Twitter.com/SCAeveryday

provides a good summary of

every thing happening at sca.com and

in SCA’s social media. The aim is to

provide various users, journalists and

bloggers with relevant information.

Mattias Andersson

HEADING

FOR A CRIME

ber of works of nonfi ction as well

as television series and has produced

various television documentaries.

Unlike most Swedes,

he has not written a detective

story, but he aims to do so before

the entire Swedish population

drops dead in the world of fi ction.

When he is not writing for Shape,

he runs a communications fi rm

whose managerial meetings

generally end with a wrestling

match.

He lives in Stockholm with

his three children, the oldest of

whom is now packing his bags

for New York.

Slideshare.com/

SCAeveryday

is for investors and analysts, who

can download presentations from

quarterly reports and annual general

meetings.

Scribd.com/

SCAeveryday

makes some 50 publications available,

including SCA’s sustainability report,

its Hygiene Matters report and Shape

magazine.

Flickr.com/

HygieneMatters

supports the launch of the global

report Hygiene Matters with images.


CONTENTS

06. Chinese miracle

Private consumption is growing – and the state will push for

the expansion of health care and other social security systems.

16. Fortune maker

At the age of 96, Sweden’s Lennart Israelsson is

still passionate about stocks. Read his top tips.

20. Nice and clean

The cleaning business is booming – but much could be done to improve

the working environment.

24. Fight the germs

Tork’s antimicrobial foam cleanser combines soap with alcohol.

26. Rescue plan

In Brazil a reforestation project has started and the locals make a living out of it.

32. Heavy costs

Health and wellness in focus when obesity is growing.

34. Fragile life

The fi rst days with a prematurely born baby are anything but calm.

ALSO...

GIRL CREW SCA’s secret weapon – page 4

SHAPE UP – pages 30-31

12 HOURS with Markus Henningsson – page 40

SHORT NEWS FROM SCA – pages 4–5, 42– 43

DID YOU KNOW...

...that spinach has a powerful effect on muscle strength? See page 30.

“ Stocks

provide

a good

return,

but senior

citizens

dances

have an

even better

one.”

page 16


from SCA

UPDATEDNews

Women’s boat to

put SCA on the map

With an all-female boat in one of the world’s toughest

offshore races, Volvo Ocean Race 2014, SCA will

have a chance to put the company on the global map

in more than one way.

text ANNA GULLERS

A

N ALL-FEMALE team will take

on what is possible the

toughest off shore challenge

in the world by competing

in the next Volvo

Ocean Race. This is the sailing contest

that begins in southern Europe

and takes competitors around the

world for nine months, some 39,000

windswept nautical miles and innumerable

freeze-dried meals, before

reaching the fi nish line in northern

Europe. When the starting gun goes

off in late fall 2014, SCA will have a

boat of its own in the competition.

Richard Brisius from Atlant Ocean

Racing, is head of the team managing

SCA’s sailing adventure.

“This isn’t just an around-theworld

sailing race,” says Brisius,

who has previously managed a

number of successful VOR projects

and has also been a crew member

in two Volvo Ocean Races. “If it’s

handled right, it can generate surprisingly

large commercial value. As

a marketing tool, VOR is a diamond

in the rough. It’s a global event that

runs for a long stretch and involves

many countries.”

The competition is one of the

most diffi cult sporting events in

the world. Over the years, the boats

4 SCA SHAPE 32012

have become increasingly challenging

physically, and as a result

there have been fewer and fewer

women taking part. The last time

VOR had a boat with a female crew

was 2001.

“The race is headed for certain

death without women,” says Brisius,

who sees ocean racing as a sport

for both women and men.

THE NEW TYPE of boat now being

developed for ocean racing participants

is slightly smaller and has fewer

sails than the 70-foot vessels used

earlier, which helps to even the odds.

Brisius and his team now have to

pick the 10 to 12 women on SCA’s

crew, and he says the applications

are streaming in. The crew will train

over the next few years with experienced

ocean sailors and be shaped

into a well-oiled ocean sailing team.

But it won’t include just anybody.

“You have to be an ocean sailor

with strong qualifi cations, a team

player, enjoy the sea and not have

a tendency to get seasick,” says

Brisius, summing up the profi le of

his future crew. While SCA’s ocean

adventure has only just begun, the

strategy is clear:

“Team spirit. That will be our edge.”

The French boat

Groupama sealed the

overall victory in the

latest Volvo Ocean Race

when crossing the

fi nish line in July.

FACTS

Next race: 2014–2015

Start: Southern Europe, late fall 2014

Finish: Northern Europe, summer 2015

Boat type: 65-foot one-design

Route: 9-10 legs around the world

PHOTO: YVAN ZEDDA


A lot to communicate

SINCE SEPTEMBER 15 SCA has a new Senior

Vice President Corporate Communications in

Joséphine Edwall-Björklund.

Joséphine Edwall-Björklund, 48, has held

leading positions in communications since

1988. She previously held the position of

Vice President Communications at Ericsson

Global Services.

As head of the Corporate Communications

staff, Joséphine Edwall-Björklund will be a

New products in portfolio

TWO INNOVATIVE products have been added to

SCA’s incontinence care brand TENA’s product

range: self-tests for early detection of urinary

tract infections and wet gloves.

The self-test for urinary tract infections can

replace a time consuming urine sampling routine.

The test is simply placed into and taken

out of the pad with usual diaper change. It’s a

user friendly solution with quick results.

The products were added to the portfolio

through the acquisitions of the Swiss company

Swiss Medical Solution and the Dutch company

JoyinCare, respectively. Some 25 percent of all

Dutch care institutions are using wet gloves.

member of SCA’s

Corporate Senior

Management Team,

reporting to CEO Jan

Johansson.

“Joséphine Edwall-Björklund has a broad

background in internal and external communications

including branding and M&A, which

will be of great value for SCA”, comments Jan

Johansson, President and CEO.

From paper to

consumer goods

SCA HAS BEEN reclassifi ed from the Paper

Products category to Household Products in

the MSCI index. The reclassifi cation is a consequence

of this year’s large structural deals

that has resulted in 80 percent of SCA’s net

sales deriving from hygiene products. MSCI is

a leading provider of investment decision

support tools to investment

institutions. SCA was already classifi

ed as a Personal and Household

goods company on the Nasdaq

OMX Stockholm exchange.

DONATION

TO REFUGEES

SCA donates 1 million

feminine towels to UNHCR

(the UN refugee agency) to

be distributed in refugee

camps in South Sudan.

Since April, the number of

Sudanese refugees seeking

safety in South Sudan

has swelled from 99,000

to 175,000.

The UN refugee agency

(UNHCR) is concerned by

the alarming health and

nutrition situation for the

refugees in South Sudan.

Access to sanitary materials

is central to women’s

dignity and self esteem.

The lack of sanitary supplies

can affect women’s

health, but also their general

mobility.

NEW PAPER

GRADE

In October SCA launches

GraphoInvent, a new publication

paper grade, in

some 20 countries across

Europe. The paper has

new qualities, enabling it

to replace more expensive

alternatives. It has high

bulk and feels thick enabling

you to reduce grammage,

but the perceived

quality is the same as the

more expensive papers.

The lower weight also

makes it possible to save

distribution costs. It is also

cheaper to buy.

See more info:

www.graphoinvent.com

SCA SHAPE 32012 5


For three decades, the Chinese economic miracle

has seen record growth, filling the state’s coffers and

padding the wallets of the growing middle class. With

hundreds of millions of Chinese consumers eager to buy,

the spending spree of the millennium is now at hand.

6 SCA SHAPE 32012

China’s

bulging

wallets

text MATTIAS ANDERSSON

CHINA IS AT a historic turning point, notes the consulting

firm McKinsey in a report about the new

role of Chinese consumers in the global economy.

“The difference hereafter is that consumption,

rather than investment, will be the driving force.”

The engine of the Chinese economy has been

manufacturing, which has created a surge in

demand around the world for investments and

commodities. A deceleration is predicted in the

wake of the global slump in general and the

European debt crisis in particular. But even with

a slightly slower growth rate, China will retain its

leading position in the world’s growth league and

is expected to account for 43 percent of global

growth in 2020.

PHOTO: GALLERY STOCK


FEATURE

Chinese consumers have

played a fairly modest role in

the global market – so far.

SCA SHAPE 32012 7


ALTHOUGH THE Chinese economy tripled in

the 10 years from 2000 to 2010, Chinese

consumers have played a fairly modest

role in the global market – so far. Compared

with citizens in other countries,

the Chinese are notoriously thrifty. While Americans

save 4.4 percent of their income, Chinese

save a full one-third of their wages.

Private consumption represents 33 percent of

China’s GDP, compared with 71 percent in the US

and 65 percent in Britain. One important reason

is that people in China are expected to provide a

large share of their own security through their savings

for education, health care and retirement.

But now a shift is predicted, partly due to

political reasons. For the Chinese government,

stability is one the most critical points on their

agenda. Since the key to stability is high sustainable

growth, China made increased domestic

consumption a priority in the most recent fi ve-year

plan.

“If Europe’s economy collapses and that

aff ects exports, then what will happen with all the

unemployed?”asks Shaun Rein, managing director

of China Market Research Group and author

of The End of Cheap China: Economic and Cultural

Trends that Will Disrupt the World. “The government

wants to minimize the risks of social instability,

so they cannot rely on the export sector. China

must shift its focus to services and more advanced

manufacturing.”

To stimulate the desire to spend, the Chinese

state will push for the expansion of health care and

8 SCA SHAPE 32012

other social security systems and work to raise the

minimum wage. These measures have already

been implemented in a number of regions.

Andrew Rothman, a macroeconomic strategist

for the investment fi rm CLSA Asia-Pacifi c, writes

in an economic forecast for this year that China’s

economy today is already driven by consumption

to a considerable extent. “Forget about the fact

that household consumption accounts for a small

share of China’s GDP,” he says. “Driven by more

than a decade of double-digit income growth and

low household debt, China will this year continue

to be the world’s best consumption story, for everything

from instant noodles to luxury cars.“

MCKINSEY predicts that in 2020 China

will be the world’s second-largest

consumer market, after the US, with

spending of 4.8 trillion US dollars.

Today China is home to a middle class

that is larger than the total US population and has

the highest income among the BRIC countries of

Brazil, Russia, India and China.

The US auto manufacturer General Motors sells

more cars in China than in its domestic market.

New iPhone models have triggered consumer riots

in Beijing. Chinese department stores are now

fi lling up with a whole new generation of young

people who prefer consumption to revolution.

“In China’s future middle class, well-off young

people will replace older people with lower

incomes,” notes the bank Credit Suisse in an

analysis of the Chinese consumer market.

PHOTO: GALLERY STOCK

China’s middle class

is larger than the total

US population.

GROWING

OLDER

Percentage of age

60+ in China

2010

12%

2050

30%

SOURCE: UN


PHOTO: GALLERY STOCK

“ China will this year

continue to be the

world’s best consumption

story, for

everything from

instant noodles to

luxury cars.”

Andrew Rothman, CLSA Asia-Pacific

FEATURE

SCA SHAPE 32012 9


PHOTO: GETTY IMAGES

FEATURE

The one-child policy is estimated to have reduced births

by 250 million since 1980.

FROM OVERPOPULATION

TO LABOR SHORTAGE

JUST BEFORE Mao Zedong’s death in 1976,

Chinese women gave birth to an average of six

children. The new political leaders saw the rapid

rise in population as a potential threat, and in

1979 they launched what was to become China’s

famous one-child policy.

The world’s largest family planning program

was implemented through a combination of

carrots and sticks: whoever broke the rule of one

child per family was fi ned, and mothers pregnant

with a second child were persuaded to have an

abortion. Those who obeyed the policy were

encouraged with fi nancial support.

Since the 1990s, the birth rate in China has

been stable at under two children per woman.

The authorities themselves consider the policy

a success; it is said to have reduced births by

250 million since 1980.

But the policy has also been criticized – for

having promoted infanticide and for 500,000

“missing” girls (traditionally, the preference has

been for boys since they have a better chance

of contributing to the household economy) as

well as for having been unnecessarily harsh. The

general trend in developing countries since the

1960s has been to have fewer babies, and critics

argue that China could have achieved the same

results with less drastic measures.

China’s success with birth control also means

that its population will fall in the long term, and

the number of people over 60 will almost double

by 2050. A shortage of labor and rising costs for

an aging population have replaced overpopulation

as China’s great challenge for the future.

10 SCA SHAPE 32012

POPULATION

TREND

China, million people.

*UN forecast

1,462*

1,008.2

694.6

SOURCE: CENSUS OF CHINA, UN

1,265.8

2050

2010

2000

1982

1964

1,339.7

text JAN HÖKERBERG

Shifting

into a

new gear

SCA is investing heavily in the

Chinese personal care and tissue

markets, with the aim of becoming

a leading hygiene player.

SCA RECENTLY took an important step

in the Chinese personal care market

by acquiring the Taiwanese company

Everbeauty, including brands such as

Sealer disposable baby diapers and

Dr. P incontinence care products. The acquisition,

worth about 290 million US dollars, was

completed on June 1.

“With plants in Shanghai and Kaohsiung

[Taiwan], Everbeauty has been strong on lowcost

production,” says Stephan Dyckerhoff ,

president of SCA Hygiene Products North Asia.

“Sealer is No. 5 in the baby diaper market in

China, and Dr. P is No. 2 in incontinence care.

Both are very attractive brands for entry-level

users. Through the acquisition we will also get

access to Everbeauty’s distribution channels,

which is very important for us.”

Family-run Everbeauty, founded in 1986,

entered China in 1993 and has grown into a

company with more than 900 employees. Its

brands will complement SCA’s own products

in China, TENA incontinence care products

and Libero baby diapers, which are positioned

in the middle-premium and super-premium

segments respectively.


PHOTO: EVERBEAUTY

TENA was launched in China in 2009 and Libero

was introduced in 2011 as part of an SCA strategy to

build organically in the Chinese hygiene product

market after the company’s packaging business in

Asia had been divested.

In recent years, SCA has also increased its

investment activities in the Chinese tissue market,

the world’s second largest. The fi rst step came in

2006 when SCA started selling Tork away-fromhome

professional hygiene solutions in China.

In 2007, SCA acquired 20 percent of the shares

of Vinda Paper, a leading producer of toilet tissue,

kitchen rolls, facial tissues and handkerchiefs.

Vinda is the second-largest tissue company in

China. The ownership was diluted after the company

was listed on the Hong Kong Stock Exchange,

but SCA recently bought more shares and now

owns almost 22 percent.

In 2007, SCA also bought the Tempo tissue

brand from Procter & Gamble in Hong Kong,

where Tempo has been the leading pocket handkerchief

brand for more than 15 years. SCA has

been able to double the Tempo business in the

past four years by raising its market share to 70

percent and by introducing box tissue. SCA also

expanded the brand into the South China market.

“ We are open

to more

acquisitions,

and we aim

to be a leading

hygiene

player in

the Chinese

market.”

Stephan Dyckerhoff

Sealer is No. 5 in

the baby diaper market

in China.

“With 70 percent of the market, our growth

potential for handkerchiefs is limited,” Dyckerhoff

says. “Therefore, in the summer of 2012, we

have also been launching Tempo toilet paper in

Hong Kong.”

T

HE CHINESE tissue market has huge potential

for growth. The penetration rate

for toilet paper, the main tissue product,

is below 70 percent, and per capita consumption

is less than one-fourth that of

Western markets. The four main tissue suppliers

in China are Asia Pul p & Paper (APP) of Indonesia

and the local companies Hengan, Vinda Paper and

Zhongshun. The leading global hygiene companies

have concentrated on the personal care market

in China.

“All top tissue players invest heavily to grow

capacity, which in a longer perspective will

squeeze out the small players,” Dyckerhoff says.

“The top four control today some 30 percent of

the market, and it is expected that their share will

grow to 50 percent in 2016.

“We are open to more acquisitions, and we

aim to be a leading hygiene player in the Chinese

market,” he says.”

SCA SHAPE 32012 11


After educating several thousands

of Chinese nurses over the past

three years, SCA has broadened

the scope to also train nurses’

assistants about elderly people’s

hygiene needs.

Training program

expanded to caregivers

text JAN HÖKERBERG

INCONTINENCE is something that many elderly

people have to live with. Parents who suff er from

incontinence also suff er from lost dignity when

they fi nd it diffi cult to take care of their own toilet

needs and require intensive care from their

children. They become dependent on caregivers,

whether family members or otherwise. They

feel helpless and useless. They often get rashes

and skin irritations, have diffi culty sleeping and

become stressed.

“That was the starting point,” says Daniel

Huang, regional director for incontinence care at

SCA in Shanghai. “We off ered education to hospi-

tal nurses who were dealing with elderly people to

help them improve the lives of their patients.”

Some 6,500 nurses from more than 1,000

hospitals in 12 Chinese cities have benefi ted from

the education scheme since the project started in

2009. The responses have been very positive.

After educating nurses for three years, SCA

decided in 2012 to broaden the scope of the training

program in China.

“This year we are aiming to educate around

1,000 professional caregivers in 55 hospitals in

three Chinese cities – Guangzhou, Hangzhou and

Shanghai,” Huang says.

Caregivers at hospitals work as assistants to the

nurses. It is often the caregivers who do the handson

work, such as changing the patient’s clothes and

diapers and helping them with washing and other

hygiene matters.

“The concept is the same as for the nurses program,”

Huang says. “We want to increase the caregivers’

skills and knowledge about the patients’

personal hygiene, such as preventive treatment

and available solutions.”

SCA offers

education to hospital

nurses who deal with

elderly people. The

focus is on incontinence

care.

“ This year we

are aiming

to educate

around

1,000 professional

caregivers.”

Daniel Huang

SCA SHAPE 32012 13

PHOTO: GETTY IMAGES


text JAN HÖKERBERG

Strong demand for

home

nurses

SCA has established a joint venture

in China with the Singaporean

nursing-home specialist Econ to

bring home nurses to elderly people.

MOST ELDERLY PEOPLE in China prefer

to stay at home rather than go to nursing

homes or hospitals, placing heavy

demands on their children to take care

of them.

Since those in the first generation of China’s

one-child policy are now in their mid-30s, most

of them are working. They definitely need help to

take care of parents or grandparents.

SCA decided in late 2011 to start a home-nursing

service in China, employing its own nurses. SCA

and the Singaporean nursing home specialist Econ

Healthcare established a 50-50 joint venture called

Jiahu – Chinese for “home care.”

The nurses can carry out diagnosis and provide

a broad range of nursing and preventive care.

In the first six months, more than 250 senior citizens

from 17 communities in Shanghai received

care at home from Jiahu’s nurses, and the support

has been much appreciated by the elderly people’s

families and relatives.

The aim is to develop a strong nurse team and

a successful model in Shanghai within a couple

of years before expanding to other cities in China.

“It is valuable for us to have an experienced

14 SCA SHAPE 32012

partner, and we have made a lot of progress

already,” says Daniel Huang, regional director for

incontinence care at SCA in Shanghai. “However,

a barrier is that this type of service is not covered

by medical insurance.”

Because of its aging population, China will

never have enough places in nursing homes for the

elderly. Since most of them prefer to stay at home

anyway, home nurses can definitely be a solution.

Whether that happens is a question of changing

the regulations to permit medical professionals to

provide medical services at homes, which is not

allowed today.

“But over a short time, we have noticed an

increased acceptance from the community for

this project,” Huang says.

A trained nurse from Jiahu visiting a patient’s home.

“ A barrier

is that this

type of service

is not

covered by

medical

insurance.”

PHOTO: GAO ERQIANG


TENA Lady Mini Magic. Just as discreet as regular pantyliners.

But four times drier.


FEATURE

W

hy did you decide on

stocks in particular?

While most of my

friends were buying their

houses, and thus creating

real value, I had unsteady work at SJ, the

Swedish Railways. I often had to move to

diff erent towns, so it wasn’t a good idea to

invest in a house. In 1943, I got a permanent

job at the Konga station in Småland in

southern Sweden. That was during the war,

and the trains were often late because of

military transportation. To pass the time,

I read the newspaper Göteborgs Handelsoch

Sjöfarts tidning and Carl Pokorny’s

column about the stock market. He wrote

how equities were good protection against

infl ation, although it took me three years

16 SCA SHAPE 32012

From empty pockets to

Stock market

millionaire

A lot of people thought Lennart Israelsson was crazy when

he bought stock for 600 Swedish kronor in 1946. Workingclass

people didn’t do that. Slowly his stock portfolio

grew, and in 2007 it was worth 140 million kronor

(EUR 17 million). Then he chose to give away

almost his entire fortune.

text CHATARINA ALMQVIST photo PONTUS JOHANSSON

before I bought my fi rst stock for 600

Swedish kronor (EUR 45) in the engineering

company Sandvik.

Your mother was pretty unhappy about

your interest in stocks. Why?

She had an uncle who lost a lot of money

in the Kreuger crash in 1932. I listened to

what my mother said, but I didn’t follow

her advice. My friends thought I was totally

crazy – it was really unusual for workingclass

people to invest in stocks at that time.

It was only rich old guys who dealt in stocks

– we called them coupon clippers.

What was your childhood like?

I was born in 1916 on a small farm in

the village Algutsboda in Småland. It was

a place where nothing had happened in

300 years. People milked their cows by


Stocks and

dancing

Age: 96.

Lives: In Nässjö, Jönköping

County, Sweden.

Family: 88-year-old partner,

son, two grandchildren.

Education: Six years of

elementary school.

Interests: Stocks, dancing,

crossword puzzles, walking.

Best stock a dvice: Buy

shares in companies that

have a good cash fl ow, and

equity discount rate, and are

highly capitalized.

Best stock market buy:

The investment company

Ratos. Their shares have

increased considerably since

I bought some.

10 QUESTIONS

When other people

have sold off in a

panic, I’ve bought.

It’s so much fun to

buy when things

are cheap! ”

hand, plowed with wooden plows and had

no electricity.

When I was 13, I fi nished school and

then I worked in the fi elds. When I was

22, I moved to Stockholm and got a job at

Sieverts Kabelverk [a cable manufacturer],

which I really enjoyed, but then World

War II broke out and I was laid off . I went

home to Småland for Christmas and saw an

ad in the local paper that SJ was looking for

people in Kalmar, so I applied, got a job and

started at SJ in 1940. Then I worked there

for 40 years, fi rst as a temporary employee

at 180 kronor a month and fi nally as a station

manager at 5,400 kronor a month.

How did you achieve success with your

stock market activity?

I didn’t make much money as an SJ

employee, but I bought shares with the

dividends I got. And then I’ve often done

the opposite of what the experts have said to

do. For instance, when everyone was supposed

to buy IT stocks, I bought real estate.

I’ve considered stock market slumps to be

a good time to buy. When other people have

sold off in a panic, I’ve bought. It’s so much

fun to buy when things are cheap! The stock

market always recovers. Things have pretty

much looked the same the whole time

I’ve been at it – it goes up and down. I fi rst

became a millionaire when I retired in 1980.

My basic rules when I’ve looked at a company

are that they should preferably earn

SCA SHAPE 32012 17


1,000 SEK

t

Right time on the stock market

Lennart Israelsson is good at picking stocks, but he also

invested in shares during the golden years of the stock market,

1980 to 2000. On average, 1,000 SEK invested on the Stockholm

Stock Exchange in 1946 increased to 5,800 SEK by 1980

and to 346,000 SEK by today. (With infl ation, 1,000 SEK in

1946 would be worth 19,400 SEK today.)

1946 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2012

LENNART ON SCA

SCA is a very safe investment

as a long-term holding.

“In my lifetime, nothing

has increased in value as

much – in percentage terms

– as forest property. SCA

also has good cash fl ow.”

Forests also have a considerable

future value as

oil supplies decline and the

earth’s population increases.

The company also has

good products. “When the

population doubles, that’ll

require a lot of toilet paper,

so prospects are bright.”

18 SCA SHAPE 32012

3,900 SEK 5,800 SEK

t

t

10 kronor a share but only pay out half that

money in dividends so they still have cash.

The dividend yield should be around 4 or

5 percent, the P/E ratio should be between

5 and 15, and there should be a good equity

discount rate, preferably 20 to 30 percent.

Then I’m also careful about cash fl ow. If

they have a good cash fl ow, they can buy

companies, they can increase their dividend

or, when times are bad, they can keep

their dividend at the same level as before

because they have a good cash position. I’ve

only bought shares in Swedish companies.

That’s been enough since many of them

operate in an international fi eld.

What’s your portfolio worth today?

In 2007, it was worth 140 million kronor

(EUR 17 million). Since then, I’ve given

away almost all my money. Among other

things, I’ve started fi ve foundations, four

at diff erent schools and one with the Royal

Swedish Academy of Sciences. A professor

called from there and wondered if I

wanted to make a donation for a foundation

launched in Carl Linnaeus’s name – we’re

both from Småland. But I was so impressed

that a professor called me up that I invested

30 million kronor and instead started a

foundation in my own name.

73,000 SEK

t

3 40,000 SEK

t

323,000 SEK

t

“ I was presented to the king, who

said, ‘Right, Aktiestinsen, I know

who you are’.”

But giving almost everything away?

That’s the best thing, being able to give

money so that others can get some use

and joy out of it. Education is the best

investment there is, but when I was growing

up, it wasn’t common for people to

get an education, so now I want to help

others get one.

Y

ou fi rst became famous

in Sweden when you were

retired. How did that

happen?

I was invited to give a lecture

at the bank where I was a customer. There

were three of us giving talks – a journalist

from Stockholm, an equities analyst from

Malmö and then me. I talked about the

stock market and how I became a millionaire.

I was contacted later by one of the

tabloid papers that was doing a story on me.

The reporter thought I needed a stage name

so he came up with the idea of “Aktiestinsen,”

or “the shareholding stationmaster,”

because I dabbled in stocks and had worked

with the railroad. But I was never a stationmaster.

I was a station manager.

So you’ve never had a quiet retirement?

I’ve worked more than I thought I would


At the age of 95 Lennart Israelsson gave up driving. But he’s still into stocks. And dancing.

as a retiree. I’ve given talks at Rotary

clubs, universities, senior citizen clubs and

meetings for people interested in stocks.

I even gave a talk at the Globe Arena in

Stockholm in front of 2,500 people. I never

thought that could happen, that I could

stand in front of so many people. People call

me up almost daily who want advice on the

stock market. It’s all fun, especially talking

with young people.

Do you have other passions besides

stocks?

Dancing – I’ve had a lot of fun with that!

I go once a week to a senior citizens dance,

and it was at one of those that I met my partner.

I always say that stocks provide a good

return, but senior citizens dances have an

even better one.

I also read a lot, do crossword puzzles,

take walks and live a healthy life. I’ve

never smoked or been a drinker. I drink

water and call it the water of life because

it looks like aquavit.

Is it true you’ve been to the Nobel

banquet?

My partner and I were there four or fi ve

years ago. I get an invitation every year

because of my foundation at the Royal

Swedish Academy of Sciences, but we

haven’t been there since then. The party

goes on pretty late. But if my health’s OK,

we’ll probably go this year.

I was also at a lunch at the Royal Palace.

I was presented to the king, who said,

“Right, Aktiestinsen, I know who you are.”

I chatted a bit with the king. He was really

nice and pleasant.

You know, I really can’t grasp how well

my life has gone. I’ve been healthy my

whole life and my mind works fi ne. I sold my

car when I was 95. It was time – I was entering

a traffi c circle when a car came speeding

along. I was able to slam on the brakes and

avoid a crash. I’ve driven a car for 75 years

without ever having an accident and didn’t

want to end with one.

10 QUESTIONS

CRUCIAL

STOCK

TIPS

1. Dividend. It’s good if a

company earns SEK 10 per

share but only pays out

SEK 5. Then it has a good

cash position.

2. P/e ratio. It should be

around 5–15.

3. Price/book-value ratio.

It’s good to get one that is

undervalued.

4. Cash fl ow. There should

be a good cash fl ow in the

company. Then the company

can buy other companies,

buy back its own

shares or, in hard times,

keep dividends at the same

level as the year before.

SCA SHAPE 32012 19


FEATURE

Everyday

heroes

text SUSANNA LINDGREN photo PYSSE HOLMBERG

stylist JOHANNA LEIFSDOTTER model SYNK CASTING

20 SCA SHAPE 32012

Cleaning is a booming business. More than

4 million people in Europe are involved in the

challenging job that keeps our workplaces

or public buildings clean and healthy. But in

many places these everyday heroes still don’t

get the recognition they deserve.


There are fi ve times as many cleaning

companies in Europe today as there

were 20 years ago. Some 160,000

companies employ more than 4 million

cleaners, whose mission is to

keep our schools, hospitals, shopping centers

and train stations healthy, hygienic and dirtfree.

The increase is due in part to higher cleaning

standards and generally increased demand

for a cleaner environment.

“The biggest factor behind the growing

number of companies comes from outsourcing,”

says Andreas Lill, director at the European

Federation of Cleaning Industries (EFCI)

in Brussels. “This American trend has spread

in Europe during the last two decades. Increasingly,

public administrations outsource their

cleaning, catering or security services that

were previously provided in-house.”

FEATURE

Cleaners are working

in tough environments,

and the rate of sick leave

and work-related health

problems is high.

SCA SHAPE 32012 21


FEATURE

EFCI is the recognized social partner to the

European Commission in questions relating to the

cleaning industry. One major task for the organization

is to promote professionalism within the

industry. Just as important is the mission to ensure

better recognition of the cleaning profession and

to raise the status of the job in the eyes of the general

public.

“Cleaners are often still regarded as replaceable,

especially those who perform the everyday chores

like cleaning the offi ce fl oor,” Lill says. “In many

countries the cleaners are still not expected to be

Improved

handling

SCA has developed a new packaging

system designed to make working

life easier for cleaners. The aim of the

unique, ergonomically designed Tork

Easy Handling system of boxes and

plastic packaging is to prevent stress

injuries, boost effi ciency and make

cleaner’s job a little easier.

22 SCA SHAPE 32012

“ This is a

very good

example

of how

suppliers

of cleaningmaterials

can

improve

the daily

lives of

cleaners.”

seen, which forces them to work uncomfortable

hours like early mornings or late afternoons.”

He is convinced that making cleaners more visible

is a win-win proposition. It makes clear that

an important job is being done, and the cleaners

themselves feel more involved in the business

where they perform their cleaning tasks.

“Sweden is a good example where 70 percent

of all cleaning jobs are performed during offi ce

hours,” Lill says. “In the south of Europe, only 20

percent of cleaning services are performed during

offi ce hours.”

Daytime or nighttime, regardless of

when the job is performed, cleaners

are working in tough environments,

and the rate of sick leave and workrelated

health problems is higher in

the cleaning industry than in many other sectors.

This is a problem that aff ects not only the individuals

but the industry as a whole.

“One major reason for the high sick leave is

musculoskeletal disorders,” Lill says. “It’s not

surprising that you get pain in your arm or neck

after doing the same movement all day long.” Lill

welcomes SCA initiatives to off er easy-to-handle

cleaning material and packaging.

“This is a very good example of how suppliers

of cleaning materials can improve the daily lives

of cleaners,” he says. “Carrying, opening, storing,

unfolding and disposing of cleaning materials are

the most important considerations in improving

their working conditions.”

EVERY WEEK, cleaning workers in Europe handle

almost 1 million packages fi lled with Tork hygiene

products. These packages need to be received,

transported within the building, stored, carried,

opened, disposed of and recycled. To identify

potential improvements in how the packaging is

handled, SCA initiated an observation study of cleaning

workers and customers in Germany, France,


A clean passion

Cleaning supervisor Nedzad Turkanovic has two passions. One is

fl oors. The other is to make sure the working conditions for his staff

are good and the tasks are as enjoyable as possible.

NEDZAD TURKANOVIC’S team at Malmö University

has 16 people who keep the fl oors, lecture

halls and toilets clean. As team leader he knows

that good knowledge of both cleaning and how

to do it in the most ergonomic way possible is

of great importance, both for the result and for

the well-being of his staff . Turkanovic regularly

attends courses and seminars and also teaches

other colleagues in new methods and changes

within the cleaning industry.

“The latest trend is to incorporate more

tasks than just cleaning in our work schedule,”

Turkanovic says. “Besides general cleaning,

my team is also in charge of the laundry and the

maintenance of the coff ee machines.”

Making the job more of a multipurpose

service makes it more fl exible and enjoyable,

which is refl ected in a decrease in the amount

of sick leave taken by cleaners, he says.

the Netherlands and Sweden. The main aim of the

survey was to study workers handling Tork products

in order to identify areas of improvement.

“The main goal of our new Tork packaging is to

improve quality of everyday life and create awareness

of the cleaners’ situation,” says Kristian Grennfelt,

manager of the Tork Packaging Development and

Industrial Design Center. “As a major supplier we feel

a responsibility to improve working conditions in the

cleaning business.”

The Tork Easy Handling system, consisting of the

plastic Carry Pack and the cardboard Carry Box,

introduces several functions that improve effi ciency

and ergonomics compared with traditional packaging.

New handles allow cleaners to carry one

cardboard box in each hand, a more ergonomically

Good cleaning equipment is also essential

for the well-being of his staff .

“Today everyone in my team has a combi

machine for fl oor cleaning that facilitates the

mopping of heavy fl ooring,” he says. “That’s

great as it puts less strain on the body. Anything

that improves working conditions is good, such

as better packaging and soap dispensers.”

AS A SUPERVISOR, Turkanovic doesn’t grab the

mop himself as often as he used to. But there is

one thing he really enjoys – a well-maintained

and easy-to-clean fl oor.

“Part of my job is to maintain the fl oors and

worktops in the classrooms, and I really enjoy

sanding, repairing and treating them to keep

them in good condition,” he says. “I don’t know

why I’m so passionate about that, but it’s something

I really enjoy.”

Tork Easy Handling Carry Box

makes it easy to carry one

cardboard box in each hand.

MARKET

Nedzad

Turkanovic

Age: 38

Workplace: Cleaning

supervisor at the Faculty

of Odontology at Malmö

University.

Lives: In Malmö, Sweden

Hobbies: Biking and fi shing,

still dreaming about catching

the really big old pike.

Latest read book:

Steve Jobs, the authorized biography

by Walter Isaacson.

Best music for cleaning:

Dire Straits.

sound practice. The packaging is also easier both

to open and to fl atten as no tools are required.

“The new Tork Easy Handling products have

been very much appreciated by my staff as

the packaging is so easy to handle, just like the

new soap dispensers from Tork,” says cleaning

supervisor Nedzad Turkanovic in Malmö (see

article on top of the page).

SCA SHAPE 32012 23

PHOTO: SCA


TECHNOLOGY

Tork Premium

ANTIMICROBIAL

FOAM CLEANSER

The S4 premium antimicrobial

foam cleanser

has so far been

launched in Europe and

Australia.

2-in-1 product

Simultaneously cleans

and sanitizes the skin.

Low-alcohol formulation.

Hygienic system

Sealed system.

No bacteria buildup.

Easy to use

Low push force required,

suitable for

people with limited

hand strength.

Recommended by the

Swedish Rheumatism

Association.

Better for the

environment

Collapsible bottle takes

less space.

Recyclable packaging.

CLHANDS

It’s during times

of increased

risks, when

there are more

pathogens,

that we need

a more potent

formulation.”


EAN

By combining the mechanical removal of soap with the

antimicrobial effect of alcohol in an antimicrobial foam cleanser,

you can give the germs on your hands a real fi ght.

THE SWINE FLU pandemic

of 2009 scared most of us.

Hygienic demands changed

and hand-rub sanitizers

fl ooded the market.

The demand has since slackened, but

the product group is here to stay as an

important complementary niche. When

Tork launched its new S4 foam soap

system in 2011, an antimicrobial foam

cleans er was included in the range.

During the swine fl u pandemic Tork

saw a gap in the market. “There was

conventional soap and there were soaps

and sanitizers based on strong antimicrobial

chemicals,” says Peter Bergman,

product manager for soap. “We wanted to

cover the middle ground with a foam

cleanser that was eff ective against germs

but milder and better for the environment.”

Tradional soap and warm water are

suffi cient in most everyday situations and

environments. SCA’s recommendation is

normally to avoid using biocides unless

motivated by a certain need or requirement.

Alcohol is an exception, however,

and does not have the same negative

eff ects on health and environment as traditional

biocides and can thus be an extra

CONSCIENCE

protection during fl u season or pandemic

threats.

Tork saw a chance to combine the best

of two hygienic worlds: soap’s ability to

mechanically remove dirt and alcohol’s

sanitizing properties.

“Soap doesn’t kill germs, but lifts them

from the skin so they can be washed

away,” says senior scientist Carolyn

Berland. “Chemicals such as alcohol kill

germs like the fl u virus on the skin. No

chemical is eff ective against everything,

but by combining the mechanical removal

of soap with the antimicrobial eff ect of the

alcohol, we obtain a good eff ect against a

broad spectrum of pathogens.”

WE NORMALLY have lots of bacteria on

our hands, but most are not harmful,

Berland explains. “If we use soap to wash

our hands and rub our hands together

for 30 seconds, our immune systems can

deal with any remaining germs,” she

says. “It’s during times of increased risks,

when there are more pathogens, that we

need a more potent f ormulation.”

The antimicrobial foam cleanser is a

complex product, and the formulation

has been patented. “It’s diffi cult to fi nd

the right surfactant, one that will work

text ULF WIMAN illustration LADISLAV KOSA

well with the alcohol content,” Bergman

says. “You risk losing the soap’s foaming

properties, so quite a lot of work went

into that.”

The area is further complicated by

a distinction in the hygiene industry

between cosmetics and biocides. Conventional

soap belongs to the cosmetics

category, which is governed by simpler,

common European Union legislation.

Alcohol sanitizers, on the other hand,

belong to the biocide group, where legislation

diff ers locally throughout Europe

and the rest of the world. Having to

deal with various rules and regulations

complicates both the development and

the marketing.

“Unfortunately, biocides can’t be

eco-labeled in Europe, while they can

be in the US, for example,” says Janne

Müntzing, Global Segment Director.

“Alcohol is one of the most eff ective biocides,

but when diluted in sewage, it loses

its antimicrobial eff ect and so is relatively

harmless for waterborne organisms. It’s

problematic to produce products that

balance the need to target germs eff ectively

and be environmentally acceptable,

but our antimicrobial foam cleanser

manages to do that.”

SCA SHAPE 32012 25


FEATURE

26 SCA SHAPE 32012

Greening

Deforestation is a major cause of climate change,

accounting for up to one-fifth of manmade carbon

emissions by one estimate. In Brazil, a reforestation

project aims to offset this trend while also providing

a way for local people to make a living.

text ANNA MCQUEEN photo CORDIER SYLVAIN, GETTY IMAGES


the forest

“ Curbing deforestation is

a highly cost-effective way

of reducing greenhouse

gas emissions.”

FORESTS ARE HOME to most of the world’s landbased

flora and fauna. They provide a livelihood

for more than 1.5 billion people who rely on

them for food, shelter and fuel. Forests are also

key to the environment because growing forests

sequester vast quantities of carbon dioxide and

store carbon, both in the trees themselves and

in the vegetation and soil below. But the world’s

mature forests are under serious threat. Half have

already been destroyed. Of what remains, only 10

percent is protected. According to the UN Food and

Agriculture Organization, forests are disappearing

at a rate of around 13 million hectares a year,

the equivalent of 36 football fields every minute.

Deforestation is a major cause of climate

change. IPCC – the Intergovernmental Panel on

Climate Change – estimates the carbon released

from deforestation accounts for up to 20 percent

of global manmade emissions – more than the

world’s entire transportation sector. The Stern

Review on the Economics of Climate Change,

commissioned by the UK government in 2006,

is categorical: “Curbing deforestation is a highly

cost-effective way of reducing greenhouse gas

emissions,” it said, and it called for urgent action

to preserve the remaining areas of natural forest.

As Europe’s largest private forest owner,

FEATURE

SCA SHAPE 32012 27


SCA takes its environmental responsibilities

seriously. SCA’s forests are managed long term

with sustainable timber production and preserved

biodiversity as prioritized objectives. During the

last 50 years, the standing volume of living trees

has grown by more than 40 percent. In SCA’S own

forests, growth rate exceeds fellings by more than

20 percent, which means that SCA’s own carbon

sink grows by 2,6 million tons of carbon dioxide

per year.

SCA’s high ambitions regarding forests and

climate are expressed in many ways. For the

Velvet tissue brand, SCA has made the “Three

Trees Promise,” by which every tree harvested to

provide raw material for Velvet tissue is replaced

by three new ones.

VELVET TISSUE is made from a combination of softwood

and hardwood fi bers and recycled content.

Since all hardwood pulp and some of the softwood

pulp is procured from other suppliers than SCA,

the Velvet promise is not based only on SCA’s own

high-standard forestry practices, where each tree

harvested is replaced by three new ones. In Brazil,

SCA has established a pioneering partnership with

ethical forestry company Amata to plant the trees

required to fulfi l the “Three Trees Promise”.

“We are incredibly proud to be in partnership with

Amata, which is reintroducing indigenous trees to

Brazil,” says Sarah Wilson, communications director

for SCA UK and Ireland. “Amata has developed

a forestry model that aims to give a value to trees,

helping local people to make a living from the forest.”

Some of the trees will be harvested when they

reach maturity and can be used commercially by

local people, who are also learning to graze cattle

among the trees. “Instead of clearing land to make

way for ranching or palm oil production, Amata

believes that this method provides a viable alternative

for local people to make a living and encourages

ongoing replanting of trees,” she says.

SCA has been involved with Amata for several

years, and more than 3 million trees have been

planted so far.

28 SCA SHAPE 32012

Velvet is made from

both recycled content

and new fi ber.

1 = 3

Every tree harvested

to provide raw material

for Velvet tissue is

replaced by three

new ones.

Local people are employed to plant sustainable forests.

SCA & Amata

HOW THE

PARTNERSHIP

WORKS

SCA PROVIDES funding for Amata, which

uses the money to buy, plant and maintain

trees. “Sustainability is a big part of our

DNA, and we strive to be ethical and sustainable

in what we do,” says Sarah Wilson,

communications director for SCA UK and

Ireland. “We believe partnerships of this kind

may provide an alternative to some of the

commercial practices that can lead to deforestation.”

SCA does not own the trees, and

there is no fi nancial gain – this investment is

purely ethical.

Amata employs local people and teaches

that responsible forest management is an

economically viable alternative to cattle

ranching and other activities that lead to

deforestation.

The indigenous trees that Amata plants

create sustainable forests and are treated

as a crop, and thus an investment. They are

ready for harvest when they reach maturity,

at between six and 40 years. Some existing

trees that already grow in areas of the land

owned by Amata, primarily around watercourses,

will be permanently protected.

Currently this includes some 15 million trees

that will never be harvested.


A new paper grade –

developed from fresh bres

Thanks to fresh fibres GraphoInvent

has high bulk and feels thick enabling

you to reduce grammage. This brings

a number of benefits. The paper costs

less, but the perceived quality is the

same. Lower weight also means that

you and your customers save money

on distribution.

The high opacity of our paper means

that you can’t see the print through

the paper, even at low grammages.

It also means that you can choose a

lower-weight paper without losing the

feeling of quality.

graphoinvent.com


SHAPE UPPHOTOS

Why spinach

makes us strong

EVERYONE KNOWS that spinach

is good for you – but why?

Nitrate, which is found naturally

in spinach, has a powerful effect

on muscle strength. Scientists

have now identifi ed two relevant

proteins, the production of

which is stimulated by the intake

of nitrate. In addition to spinach,

nitrate occurs naturally in other

vegetables like beets and chard.

GETTYIMAGES, ISTOCKPHOTO

15 MILLION

With

room for

a laptop

THE HUGO COMPUTER case,

is made of heat-treated

wood with no chemicals

used in the manufacturing

process. The heat darkens

the colour of the original

wood. Creators are Jonas

Lindgren and Thomas

Jacobsson, students

from Skellefteå,

Sweden.

children around the world each year are

estimated to be born preterm, that is, before the

38th week of pregnancy.

Source: WHO (World Health Organization)

BENEFITS BENEATH

THE BARK

SPRUCE BARK, a by-product

in the paper pulp industry,

has been shown to contain

benefi cial antioxidants. Using

water and ethanol under

a high temperature and high

pressure, Swedish researchers

have found an environmentally

sustainable way to

obtain the antioxidants. Antioxidants

have been investigated

for the prevention of

diseases such as cancer and

coronary heart disease.


Doing the dishes

makes men happy

DOING THE DISHES makes you

happy. At least if you’re a man.

A study carried out in seven

countries involving only men

shows that those who spent

time doing the dishes, cleaning

the house, cooking and

doing other household chores

were happier than less active

men. On the whole, men who

worked around the house were

The next generation’s

walkers will be robots

more satisfi ed with life than

men who were less active, and

they experienced fewer confl

icts related to work and their

day-to-day life than other men.

Men from seven countries –

Sweden, Norway, Denmark, the

Netherlands, Germany, France

and Britain – were included in

the study, which was conducted

by Cambridge University.

DID YOU KNOW THAT…

LACTIC ACID BACTERIA can alter

immune responses in urinary

tract cells. An extra injection of

MANY OLDER PEOPLE fall down and have problems

getting up from the fl oor. The solution to the problem

may be a walker that lifts up someone who has fallen. A

Swedish research engineer has invented a walker that,

along with this lifting capacity, has GPS, Skype

and cameras, is powered by a motor and is

more of a robot than a traditional walker.

“A walker with a lifting function costs

just a few hundred dollars more, since

the technology itself is pretty simple.

Local governments [which fi nance

healthcare in a country like Sweden]

will quickly get that money back by not

having to move people to housing for

the elderly,” says Bo Glimskär, the walker’s

inventor.

lactic acid bacteria can reduce

the risk of women experiencing

urinary tract problems.

Harry Potter’s creator turns to tree

houses.

Fit for

a wizard

THE CREATOR of Harry Potter,

J.K. Rowling, is building twin

wooden tree houses on stilts

worth 159,000 EUR for her

children. The author wants to

create a fantasy world in the

backyard of her 17th century

mansion in Edinburgh and has

hired a company known for its

environmentally sound tree

houses, the Swedish newspaper

Dagens Industri reports.

The wooden houses, which

will be 40 feet (12 meters) high,

are to be linked by a gangway

made of rope and have a secret

tunnel with lights around

the doors and balconies.

The singer and soccer wife

Victoria Beckham is said to

have spent almost 40,000 EUR

on a tree house for her sons.

“Between 5 and

7 percent of the

world’s population

suff er from

incontinence.”

Source: SCA

SCA SHAPE 32012 31


FEATURE MARKET

The heavy costs of

OBESITY

text CHARLES MASTERS photo TIM ROBERTS, GETTY IMAGES

32 SCA SHAPE 32012 32012

Obesity is a growing problem for modern societies,

and its impact falls not just on individuals but also on

the companies where they work.

IN THE PAST few decades, obesity has gone

from an exceptional condition to the biggest

single health risk to individuals. There are

now more obese people in the world than

undernourished ones.

According to the World Health Organization,

worldwide obesity has more than doubled since

1980. In 2008, more than 1.4 billion adults were

overweight. Of these, more than 200 million

men and nearly 300 million women were obese.

“Overweight and obesity are major risk factors

for a number of chronic diseases, including

diabetes, cardiovascular diseases, incontinence

and cancer,” the WHO warns.

Inevitably, the cost to society is skyrocketing.

According to a recent report, medical spending


” There are now more

obese people in the

world than undernourished

ones.”

in the US due to obesity now exceeds even that due

to smoking.

Once considered a problem only in high-income

countries, obesity is now dramatically on the rise

in low- and middle-income countries, particularly

in urban settings. Studies suggest the rate of

obesity among children in Asia is increasing at

around 1 percent a year, roughly the same as in

the US, the UK and Australia. According to some

forecasts, Southeast Asia and the Western Pacifi c

are currently facing an epidemic of diseases

associated with obesity, such as diabetes and

cardiovascular disease.

The cost for society as a whole is huge, as

countries’ health services struggle to keep up and

all kinds of public amenities have to be adapted to

accommodate the increased bulk of users – from

reinforced ambulances to extra-wide plane and

stadium seating. Each year, cars in the US are

burning nearly a billion more gallons of gasoline

than if passengers weighed what they did in 1960

(1 gallon=4,5 liters).

THERE IS A COST for companies too. For employers,

obesity means a workforce vulnerable to

chronic conditions such as heart disease and

diabetes.

And because obesity raises the risk of a host of

medical conditions, the obese are absent from

work more often than people of healthy weight.

Even when poor health doesn’t keep obese

workers home, it can cut into productivity, as the

overweight grapple with pain, shortness of breath

or other obstacles to working at full capacity.

“Obesity should be a concern for every

employer,” says dietitian Paul McArdle of UK

health provider Bupa. People who work long hours

are most in danger, especially if they don’t take

proper meal breaks and fi nd it hard to make time

for exercise.

For managers responsible for employee welfare,

though, there is cause for optimism in terms of

tackling this issue. As the WHO observes, “Obesity

is preventable.”

SCA Health & Lifestyle initiative

WITH CARE

FOR WELLNESS

The key to SCA’s approach to wellness is making it

easy for employees to take care of themselves.

THE COMPANY’S Health & Lifestyle

initiative is addressing issues

such as food for well-being.

Canteens at SCA plants have embraced

healthy eating and offer a

wider choice of fresh foods. SCA

managers are also encouraged to

take part in training aimed at detecting

employee health problems

before they reach the crisis point.

These initiatives provide

benefi ts for both individuals and

company productivity.

“Our Health & Lifestyle Program

is not specifi cally aimed at

obesity, but rather at increasing

awareness among employees

about a healthier lifestyle,” says

Christopher Zorn, director of human

resources at SCA Consumer

Goods Europe.

THE PROGRAM was initiated in

2010 to address health-related

absenteeism and the challenges

of an aging workforce. To tackle

this, SCA is looking at improving

Biggest loser. SCA Americas

runs weight loss and

walking programs for its

employees.

FEATURE

the ergonomics of machines and

improving general staff fi tness

levels. “We managed to reduce

absenteeism during the year to

November 2011, and we hope this

trend will continue,” says Zorn.

SCA AMERICAS runs weight loss

and walking programs, and

it keeps employees informed

through biweekly emails, quarterly

newsletters and an “Ask

the Doctor” program where staff

can submit questions to an SCA

physician.

“We conduct annual health

assessments at all of our sites in

the US, which are voluntary for all

employees,” says John O’Rourke,

vice president of human resources,

SCA Americas. “In addition to

identifying employees with longterm

health-risk factors, we have

even identifi ed some employees

with immediate risks that needed

quick attention that, in some

cases, proved to be life-saving.”


OUTLOOK

Born

fighters

text SARA BERGQVIST photo OSCAR MATTSON

Sometimes life doesn’t go the way you think it will.

When your baby is born before its due date

– long before its due date – your early days

with a newborn are anything but tranquil.

But with the right help, they can still

be deeply rewarding.


OUTLOOK

PRETERM

BIRTHS

About one out of 20

babies in Sweden

is born prematurely,

before the 38th

week of pregnancy,

and weighs less than

5.5 pounds. (2,500

grams).

Today, babies

born in week 22-23

have a chance of

surviving. Roughly

70 to 80 percent of

the babies born in

Sweden earlier than

the 29th week of

pregnancy survive.

Babies born earlier

than the 35th week

of pregnancy often

need help breathing.

Babies born extremely

prematurely

may need to be on

a respirator. Later,

it may be enough

for them to have

additional oxygen.

36 SCA SHAPE 32012

IN THE NEONATAL ward of Halmstad Hospital

in Sweden, the corridors are not fi lled with

the cries of babies as in a typical maternity

ward. Except for the beeping of the equipment

monitoring the babies, it’s so quiet you

can hear a pin drop. There are currently seven tiny

babies being cared for here along with their parents.

One of them is three-weeks-old Elton. He’s as cute

as a button, with black hair and a little upturned

nose, a mouth like his mother Emma’s and the eyes

and nose of his father, Viktor. He actually should

not have been born for another couple of months,

so he only weighs 2 pounds and 10 ounces (1.2 kilograms).

But that’s still 4 ounces (120 grams) more

than when he was born, so he is gaining weight as

he’s supposed to and has already moved up a size in

diapers. Viktor and Emma have no idea why Elton

suddenly decided to come into the world so far

ahead of his due date.

“One day, my stomachache got worse and

worse,” Emma recalls. “I couldn’t believe it was

labor pains because it was so early. But when we

fi nally went to the hospital I was already dilated

four centimeters.”

To stop the contractions, she was given medicine

that was supposed to counter the preterm

labor pains. That helped for two and a half hours,

but then the contractions started up again.

“First, I was really scared,” she says. “It hit

me that he would be far too tiny. When he came

out, I didn’t hear him cry and didn’t know at fi rst

whether he was alive or not. But pretty soon, a doctor

came in and said, ‘That went well.’”

The day after the baby was born, his parents

got to hold him for the fi rst time. “It seemed

totally unreal, and both of us cried,” she says. “In

the beginning, it seemed like he was more tubes

than baby, and since he was so tiny he had almost

no subcutaneous fat. At fi rst, we didn’t dare do

anything without asking, but the staff have been

absolutely wonderful and did a great job showing

us what we should do.”

Emma glances tenderly at the incubator next

to her, where Elton is sleeping. At the moment the

incubator is partially covered with a blanket, and

inside it is dark, warm and comfortable – just like

in a womb. To keep the baby’s arms and legs from

spreading, as they do with babies born prematurely,

Elton has been carefully wrapped so he can lie in a

fetal position. Electrodes are attached to his chest

and foot to monitor his pulse and breathing. During

the entire conversation Emma and Viktor keep a

careful eye on the two screens displaying these vital

signs as well as the oxygen level in his blood.

NOW, THREE WEEKS after Elton’s

birth, Emma and Viktor seem full of

confi dence. The doctors have said

Elton is healthy, so they are taking

complete care of him. Emma

and Viktor change his tiny diaper by putting their

hands through holes on each side of the incubator.

And the tube feeding through his nose, which both

thought was a bit scary, is also going smoothly.

“He’s too tiny to suck, swallow and breathe all

at the same time, so I can’t breast-feed him yet,”

Emma says. Viktor adds, “But he usually gets a

little milk on a cotton swab when we tube-feed


Elton on his father’s chest – part of the

kangaroo method, aimed to replicate the

environment in the mother’s womb. Lying

skin against skin on the parents for a

number of hours each day makes the baby

feel secure. The baby’s temperature is more

stable, breathing is more even and quieter,

and sleep is better. When babies lie on their

mother, they also try to find her breast.

FEATURE

SCA SHAPE 32012 37


OUTLOOK

him so that he gets used to the taste.” Every baby

that comes to the neonatal ward at Halmstad

Hospital is born in the 27th week or later. The tiniest

babies, those born in the 22nd to 26th week, are

taken to the regional hospital in Gothenburg or

Lund. For babies like these who are born extremely

prematurely, there is a risk of complications such

as visual and audio impairment, cerebral palsy

damage and epilepsy. But many of the babies born

extremely prematurely also come through nowadays

with no after-effects.

“Almost every baby born at our hospital survives

and has a good life,” says Ulrika Sennow, maternity

nurse at the hospital. “The main challenge

is bringing the families together, getting them

to feel that this is their child and helping them to

take care of their child on their own. Many parents

undergo a crisis and are frightened, worried and

unsure and don’t know where they should be in

this hospital world.”

So a lot of the work involves supporting these

new parents, getting them to bond with their

babies and including the parents in their child’s

care as much as possible.

“There’s already a difference when the infant is

38 SCA SHAPE 32012

delivered, when the mother can’t have her baby on

her stomach right after giving birth,” says Jenny

Örnstedt, another nurse. “But just because things

were difficult in the beginning doesn’t mean that it

will be difficult later on.”

PARENTS WHO REMAIN at the hospital

have their own room where they can

live. At first, the babies stay in a shared

sleeping room. But as the baby grows,

the family can spend more time alone

with the infant in their own room. Around the 35th

week, some families go home, with many getting

a few days a week of home care initially. Emma

and Viktor are really looking forward to that. But so

far, Elton has to make do with the sleeping room he

shares for the time being with the other babies. Now

it’s feeding time with milk every three hours – and

Viktor carefully lifts Elton from the incubator and

places him on his chest, skin on skin. Elton’s tiny

hand is closed in a fist, right on his father’s chest,

and he looks as if he is enjoying this closeness.

“He can be out of the incubator now for several

hours. This is by far the best time of the day,” says

Viktor, who looks at least as happy as his son.

Elton was born

after a pregnancy of

27 weeks and 5 days. He

weighed 1,090 grams and

was about 38 centimeters

long.

“ Almost

every baby

born at our

hospital

survives

and has a

good life.”

Ulrika Sennow, maternity

nurse at Halmstad Hospital.


DIAPERS MADE

BY HAND

With its Libero brand, SCA produces

tiny diapers for the smallest

of babies. Since premature

babies have extremely sensitive

skin, softness is critical.

“THE DIAPERS SHOULD also not make

any noise when they’re being handled so

the baby doesn’t wake up unnecessarily,”

says Carolina Gäbel, a midwife and

information consultant for SCA who was

involved in developing SCA’s latest diaper

for premature babies. “They should

have a discreet design, not fi t too tightly

around the baby’s thin bones and not leak

or contain any unnecessary substances.

All our preemie diapers carry the Nordic

Ecolabel, the Swan.”

The diapers are available in two sizes,

Minipremature for babies up to 2.6

pounds (1.2 kilograms) and Premature

for babies up to 4.4 pounds (2 kilograms).

The larger size is sold in drugstores,

while the smaller size is only distributed

directly to hospitals. Just 90,000 of the

smaller-size diapers are made each year

at SCA’s plant in the Slovakian town of

Gemerská Hôrka. Production of the

tiny diaper takes place in two stages, the

fi rst in a machine that normally makes

panty liners.

“Since production is so small, it’s

enough to run the machine a few hours

a year,” says Björn Hultander, a product

developer at SCA. “The next step is done

totally by hand so that the transitions

are as soft as possible. The kangaroo

method is often recommended for

babies born prematurely, with the

parents spending many hours each day

with the baby skin against skin. So the

diaper has to be as soft on the outside

and have soft edges.”

The Premature diaper is sold in far

greater numbers and is more like a regular

diaper. “It’s more advanced, has more

barriers and is intended for larger quantities

of liquid,” Hultander says. “But it’s

just as soft on the inside.”

“The diapers should

also not make any

noise when they’re

being handled.”

Carolina Gäbel

“ Since production

is

so small,

it’s enough

to run the

machine a

few hours

a year.”

This is the actual

size of a hand-made

diaper for premature

babies.


with Markus Henningsson

12 HOURS

When SCA drew up plans to acquire PLF, Markus moved

to France to work with the business plan. He embraces the

French way of life in his new home on the Atlantic seaside.

With a goal of running three

times a week he’s up early

for a run along the glorious

Atlantic coast.

40 SCA SHAPE 32012

text ANNA McQUEEN photo ALASTAIR MILLER

Back home for a shower and

breakfast with the family. Leaves home in La Rochelle.

A ship came in yesterday with

a cargo of decking, and he’s

very happy with the quality.

6 am 6:30 am 7:30 am 8:00 am

Briefi ng with MD of SCA Timber

France, Jacques Morand,

to provide an update of where

the business is at.

9:30 am


Meeting in Rochefort with

builder’s merchant Rullier,

a key client for decking.

They are happy, although

the poor, rainy summer has

slowed sales.

At the builders

merchant – VM – with

their purchaser.

Markus inspecting a

shipment of decking.

After a quick sandwich on

the motorway, he heads

for Poitiers and a meeting

with PLF Director Patrick

Boisseau. Together they visit

another major customer to

discuss SCA’s new redwood

cladding product.

Markus

Henningsson

Age: 37

Title: Business development

manager, SCA

Born: Karlstad, Sweden

Lives: La Rochelle,

France

Family: Married with

two daughters, ages

1 and 3

Interests: Hunting,

running, cooking

Favorite food: For the

past year and a half,

French cuisine, especially

fruits de mer.

Last book:

“Merde, actually”

by Stephen Clarke

Meeting at PLF HQ with

the production engineer to

discuss the environmental

FSC certifi cation process

currently under way and the

further development of the

new redwood cladding with

an adapted raw material from

SCA’s sawmills in Sweden.

SCA’S ACQUISITION of French solid-

FRANCE

wood products company PLF this March

saw Business Development Manager Markus

Henningsson dispatched from his Swedish homeland

to Bonneuil-Matours, near Poitiers, to oversee

the integration. The move was a challenge for

Henningsson and his young family, but they are

now settling in and getting used to la vie française

from their new home in the beautiful seaside town

of La Rochelle. “The cultural diff erences were

bigger than we thought, but we’re slowly picking

up the language and the habits of the locals,”

Henningsson says.

Since the acquisition of PLF, Henningsson’s

life has been a whirlwind. “I’d been working on

developing a business plan prior to the takeover,

and now we’re slowly starting to fi nd ways to

integrate PLF’s wood processing and distribution

business into the Swedish mother company,” he

explains. “With my background from the mill

side in Sweden and understanding of market

conditions in France I can facilitate the process.”

Understanding diff erent perspectives and fi nding

synergies from them are the common factor to his

days. Aside from that and his morning run, no two

days are alike.

Quarterly PLF sales meeting,

with focus on the new product

range.

Calls the children to say

goodnight before dinner with

the sales team and a night in

a hotel to be ready for tomorrow’s

meeting in Poitiers.

10:30 am 2 pm

3 pm

4 pm

6 pm

SCA SHAPE 32012 41


SCA INSIDE News

TENA trains caregivers

RECOGNIZING ELDERLY care as

an important social issue, SCA’s

brand TENA has initiated and organized

free education and training

forums for caregivers in Singapore

and Malaysia. By the end of 2012,

around 1,500 participants will have

been trained.

The fast-growing populations

require an increase in the capacity

and quality of home-based healthcare

for the elderly.

“Public awareness and education

is very important for improving

the quality of care for individuals

affected with incontinence, and

42 SCA SHAPE 32012

Pellets

for horses

SCA BIONORR has developed

a bedding material for horses

and horse owners – stall bedding

pellets. The pellets are

manufactured from pure sawdust.

When moisture is added

to the pellets, they expand to

about twice their size, quickly

disintegrate into sawdust and

provide a stable and dust-free

bedding surface in the horsebox.

The bedding product

has also demonstrated highly

positive results for horses

previously suffering from

pressure sores.

proper knowledge and support

also help to ease the everyday lives

of caregivers themselves,” says

Leonard Lim, TENA senior marketing

manager in Malaysia.

TENA also launched the 3rd Care

Giving Day public welfare event

“New Care, Hearty Warmth” in Beijing

in July. In cooperation with the

Beijing Nursing Association (BNA),

TENA introduced the fi rst “Incontinence

Home Care Community

Model” in China during this event.

This concept will bring more professional

solutions to incontinence care

through trainings and seminars.

from SCA

A GREEK

HAPPENING

Donating

hair for wigs

SCA WAS THE lead sponsor for

a local cancer fundraising event

in Arizona, USA. SCA donated

$5,000 for Hairstock

2012, a community festival

that raises money to support

Northern Arizona

cancer patients and their

families. The festival features

a day of “art, music

and hair” and the event raised

nearly $14,000. Festival-goers

also donated more than 100

locks of their hair to make wigs

for patients who suffer hair loss

as a result of chemotherapy.

THE GREEK LIBERO team counted an impressive

15,000 guests at the third Libero

Day in Athens’s Goudi Park in June. The

kids tried various activities such as a

climbing wall, bouncy castle, painting and

puppet theater. Meanwhile, parents had

the chance to relax under the Libero tent.

SCA donated the proceeds of the product

sales to the Hatzikyriakio Foundation and

the Greek Society for Disabled Children

(ELEPAP).


SHOPPERS IN Kuala Lumpur were

recently surprised – when a fl ashmob

of 25 pregnant mommies

– unexpectedly launched into a

groovy dance performance at two

prominent shopping centers in the

Baby artists

IN SEPTEMBER Libero launced a limited

Libero Art Collection. The diapers have

been decorated by the children themselves.

They laughed, experimented

and painted freely and then SCA’s designer

Karoline Lenhult helped to pick

out the details that were best suited for

the new collection. The diapers are sold

in all Nordic markets and the Baltics.

The campaign will focus on digital activities

such as the Libero Baby Club, Youtube,

Facebook and Twitter. Check out the

humorous TV commercial with kids in the

creative mood on www.libero.se or search

for Libero Art Collection on youtube.com.

PHOTOS SCA, ISTOCKPHOTO

Pregnancy

fl ashmob in Malaysia

city. Activities like this are part of an

overall program to connect with Malaysian

parents in an engaging way,

so as to clearly differentiate Drypers

from other brands in the baby care

category.

SCA INSIDE

Strollers in disguise

SCA JOINED THE holiday celebrations in the

Russian town of Tula on June 1, when the annual

Mothers & Children Parade takes place.

The parade counted around 3,000 participants

and included a stroller parade where you

could see strollers converted into a Russian

samovar or a piano for a day. SCA acted as

offi cial partner for the event .

“We support regional events like the Mothers

& Children Parade as they give us the chance

to present SCA and to underline that SCA is

a global company with a regional presence.”,

says Veniov HR Manager Inna Anisimova.

Tula is the next bigger town to Veniov, where

one of SCA’s personal care plants is located.

SCA also runs a tissue plant in the region.

Three awards for

Tempo’s inner strength

SCA’S TEMPO TEAM won three different

awards in Hong Kong recently with their

brand campaign “Power of Strength.”

The message in the campaign is that nothing

is stronger than your inner strength, which

allows you to tackle every situation and rise

above every challenge.

To watch the TV commercial on YouTube

search for “Tempo, the power of strength”.

SCA SHAPE 32012 32012 43


SCA Products AB Forsman & Bodenfors

LIBERO ART EDITION. NOW IN STORES.

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