Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Renewable and recyclable materials account for more than 95% of the Group’s products.
• Equal quantities of recycled and fresh wood fibers are used in production.
• Included in the Dow Jones Sustainability Group Index for the second consecutive year.
• Received the highest rating in a survey of the environmental work of 800 global companies.

Social Achievements

• Invested SEK 180 M (SEK 5,000 per employee) in further training and other measures to improve skills and expertise.
• Annual International Business Programs for middle management personnel.
• Systematic efforts to offer job rotation plans at different levels.

Governance Achievements

• All acquisitions are evaluated using SCA’s cash-flow-based control model.
• Strong cash flows from the Forest Products business area are enabling more rapid growth in Hygiene Products and Packaging.
• The Board has proposed an increase in the dividend for 2000 of 14 percent to SEK 7.75.

Climate Goals & Targets

Environmental Challenges

• Sharply rising raw materials and energy prices.
• Increased competition in the Hygiene Products and Packaging business areas.
• Profitability problems in the sawmill industry in northern Sweden.

Mitigation Strategies

• Increased volumes, price increases on end-products and rationalization of production offset higher costs.
• Ongoing rationalization measures to increase profitability.
• Formation of Scaninge Timber AB with Graninge AB to improve industry structure.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• FSC-certified pulp and paper products and solid wood products

Environmental Metrics

ESG Focus Areas

• Environmental responsibility
• Social responsibility
• Sustainable development

Environmental Achievements

• Reduced oil consumption by slightly more than 50,000 cubic meters a year through investments in three new biofuel-fired boilers.
• Most of SCA’s paper mills are certified in accordance with ISO 14001 or registered in accordance with the European Union’s eco-management and environmental audit system (EMAS).
• Group forestry operations are also certified in accordance with ISO 14001, and its management of wholly-owned forest holdings is certified in accordance with Forest Stewardship Council (FSC) criteria.

Social Achievements

• Initiated a project focused on increased diversity at all levels in the Group.
• Number of accidents and incidents per 100 employees in the SCA Group declined by approximately 20% between 1999 and 2002.
• Offers a variety of training programs for employees in all parts of the world.

Governance Achievements

• Established a task force to further concentrate the Group’s activities on sustained development.
• SCA’s incentive program is designed in accordance with the company’s objective to create value for shareholders.

Climate Goals & Targets

Environmental Challenges

• Sharply weakened business climate
• Weakening markets and fluctuating raw material prices
• Declining prices and weakened demand for publication paper
• Strong fluctuations in the prices of pulp and recovered paper
• Severe competition in consumer tissue products

Mitigation Strategies

• Continuing effort to improve the profitability of existing units
• Projects designed to improve efficiency and profitability are underway in all business areas
• Implementation of efficiency enhancement programs in European and North American hygiene operations and packaging operations
• Development of close cooperation with large distributors of AFH tissue in both the US and Europe
• Supply chain management to improve efficiency along the entire logistics chain

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• FSC-certified pulp and paper products and solid-wood products

Awards & Recognition

• Excellent Swedish Form prize for design of Edit Torky dispensing systems
• Swedish Silver Egg for Libero’s market communications

Environmental Metrics

ESG Focus Areas

• Climate Change
• Forest Management
• Water Usage
• Code of Conduct Compliance

Environmental Achievements

• Implemented a new quantified CO2 target: Reduce fossil fuel emissions by 20% between 2005 and 2020.
• Applied for permission to build 455 wind turbines with an annual capacity to produce 2.4 TWh electricity.
• Continued FSC certification for forest management.
• Reduced carbon dioxide emissions in relation to production level by 2.6% by year-end 2008.

Social Achievements

• Signed the UN Global Compact.
• Named one of the world’s most ethical companies by the Ethisphere Institute.
• Developed a new method for assessing Code of Conduct compliance.
• Conducted several employee surveys to understand employee opinions on changes and improve communication.

Governance Achievements

• For the first time, SCA reports in accordance with the Global Reporting Initiative guidelines, level A.
• Social responsibility data reviewed by PricewaterhouseCoopers and environmental data by Deloitte.

Climate Goals & Targets

Environmental Challenges

• Climate change and its impact on water resources and energy costs.
• Illegal logging and ensuring responsible sourcing of fresh fiber.
• Ensuring compliance with the Code of Conduct across all global operations and suppliers.
• Managing risks related to corruption and ethical violations.

Mitigation Strategies

• Investing in wind power and energy efficiency projects (ESAVE).
• Conducting field audits of pulp suppliers and implementing stricter controls on fresh fiber sourcing.
• Developing a new Code of Conduct assessment method and implementing a compliance self-monitoring system.
• Implementing anti-corruption training and procedures, and taking action against incidents of corruption.

Supply Chain Management

Supplier Audits: Field audits of pulp suppliers conducted in 2008, approximately 60% of major suppliers screened for human rights.

Responsible Procurement

• Code of Conduct requirements integrated into supplier evaluation processes.
• Self-assessment questionnaires and on-site audits used to assess supplier compliance.

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity

Transition Risks

• Increased electricity prices
• Competition for wood raw materials

Opportunities

• Development of biofuel and renewable energy sources.

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI) Guidelines, Level A

Certifications: FSC (Forest Stewardship Council)

Third-party Assurance: PricewaterhouseCoopers AB (limited review of selected aspects), Deloitte AB (limited review of RMS data)

Sustainable Products & Innovation

• Printing paper with high proportion of recycled paper
• New tissue dispensers to reduce paper consumption
• Thinner, dryer, more comfortable diapers, pads, and incontinence products.

Awards & Recognition

• Named one of the world’s most ethical companies by the Ethisphere Institute.
• Ranked as one of the world’s most sustainable companies by Canadian Corporate Knights.

Environmental Metrics

ESG Focus Areas

• Climate change
• Responsible sourcing of raw materials
• Water usage
• Code of Conduct compliance

Environmental Achievements

• Installation of lime kiln at Östrand pulp mill, Sweden, will cut carbon dioxide emissions at the plant by 80%
• Construction of new power plant in Aschaffenburg, Germany, will reduce carbon dioxide emissions
• Formation of a new business unit, SCA Energy, aimed at development and growth of renewable energy
• Reduced carbon dioxide emissions by 4.2% relative to the production level in 2010 compared to 2005.
• Reduced specific water usage by 12.0% and organic content of wastewater (BOD) by 35.4% compared with the reference year 2005.

Social Achievements

• New global hygiene supplier standard
• Code of Conduct supplemented with new guidelines
• SCA raises its sustainability ambitions with the establishment of new staff function, Corporate Sustainability
• Updated process for evaluating compliance with the Code of Conduct, including human rights; first assessment performed in Mexico.
• Developed a new, global supplier standard for the hygiene operations containing expanded requirements for suppliers in terms of social responsibility.

Governance Achievements

• Establishment of a new corporate staff unit in charge of sustainability, led by the Senior Vice President Sustainability, who reports to the CEO and is a member of the Corporate Senior Management Team.

Climate Goals & Targets

Environmental Challenges

• Climate change
• Illegal logging and timber from controversial sources
• Water scarcity in some areas
• Ensuring responsible working conditions globally
• Corruption risks in some regions

Mitigation Strategies

• Investing SEK 500m in a new lime kiln at the Östrand pulp mill in Sweden to reduce CO2 emissions.
• Extensive investments in wind power.
• New target for the company’s energy-efficiency program, ESAVE.
• Construction of a new co-generation plant in Aschaffenburg, Germany.
• New global supplier standard for hygiene operations.
• Updated Code of Conduct assessment process.
• Business Practice Reviews in Italy and Mexico.
• Group-wide tool to collect and analyze community relations projects.

Supply Chain Management

Supplier Audits: Regular audits of suppliers, including questionnaires, spot checks, and independent audits.

Responsible Procurement

• Global supplier standard for hygiene operations, including requirements for social responsibility and Code of Conduct compliance.
• FSC certification or compliance with FSC criteria for controlled wood for all wood-consuming units.

Climate-Related Risks & Opportunities

Transition Risks

• Increased electricity prices due to EU efforts to reduce emissions from fossil fuels.
• Increased competition for biofuel raw materials.

Opportunities

• Development of energy-efficient products
• Growth of renewable energy business (SCA Energy)

Reporting Standards

Frameworks Used: GRI (A+ level)

Certifications: ISO 14001 (European mills)

Third-party Assurance: PwC

Sustainable Products & Innovation

• Thinner, drier, more comfortable hygiene products (Libero, Libresse, TENA)
• Innovative napkin dispensers (Tork Xpressnap Café)

Awards & Recognition

• One of the world’s most ethical companies (Ethisphere Institute)
• One of the world’s top 100 most sustainable companies (Corporate Knights)
• Best Swedish company for carbon dioxide reporting (CDP)

Environmental Metrics

ESG Focus Areas

• Sustainability
• Climate Change
• Energy
• Water Usage
• Fiber Purchases
• Biodiversity
• Health and Safety
• Hygiene Solutions
• Sustainable Innovation
• Compliance with SCA’s Code of Conduct

Environmental Achievements

• Reduced CO2 emissions by 10.4% in relation to output
• Reduced water consumption in water-stressed regions by 3.4%
• Triple production of biofuels from forests (target not fully achieved)
• Delivered 0.4 TWh of wind energy to the grid
• All deliveries of pulp to SCA’s facilities meet the requirements of the Group target. All of SCA’s wood-consuming units were reviewed by independent auditors and meet the requirements of the Group target.
• Nearly 7% of SCA’s productive forested area was excluded from harvesting. In addition, 12% of forest area planned for harvesting was set aside for preservation.

Social Achievements

• Hygiene training programs in all product categories on all continents
• 87% of employees received training in the Code of Conduct
• 73% of hygiene operations and 65% of forest industry operations committed to comply with the SCA supplier standard
• Invested approximately SEK 45m in community involvement

Governance Achievements

• Launched a new hygiene organization
• Launched cost-savings and efficiency-enhancement programs

Climate Goals & Targets

Environmental Challenges

• Turbulent global economy negatively affecting forest products operations
• Economic downturn and stronger Swedish krona
• Intense competition in the market
• Fluctuations in market prices of products and input goods
• Dependence on major customers and distributors
• Expansion into new markets with different conditions
• Environmental impact and climate change
• Impact of political decisions and administrative regulations
• Impact of substitutes
• Risks at plants
• Dependence on suppliers
• Employee-related risks
• Legal risks
• IT risks
• Energy price risk
• Currency risk
• Credit risk

Mitigation Strategies

• Focusing on hygiene business (less cyclical)
• Cost-cutting and efficiency-enhancement programs
• Restructuring, efficiency enhancement, savings measures, and optimization of capital employed
• Leveraging synergies between operations and improving productivity and the supply chain
• Discontinuing non-competitive units
• Sustainability policy, certified environmental management systems, environmental risk inspections, and remediation projects
• Public Affairs function to monitor and evaluate changes in legislation
• Membership in national and international trade associations
• Proactive steps to adapt to substitutes and expand business
• Innovation, in-house research and development
• Dispersed customer structure
• Feasibility studies, risk analysis, and compliance with Group policies
• Loss prevention measures, insurance coverage
• Supply contracts with multiple suppliers, assessment of key suppliers
• Financial hedges, long-term contracts, and own energy operations
• Hedging transaction and translation exposure
• Credit checks, credit limits, and collateral

Supply Chain Management

Supplier Audits: 73% of hygiene operations and 65% of forest industry operations committed to comply with the SCA supplier standard

Responsible Procurement

• SCA supplier standard

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Global energy and environmental legislation

Opportunities

• Development of renewable energy sources

Reporting Standards

Frameworks Used: GRI (level A+)

Certifications: FSC, PEFC, OHSAS 18001 (28% of main sites)

Third-party Assurance: PwC

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• TENA Solutions
• Tork Easy Handling
• GraphoInvent
• Tork Xpressnap
• Tork Elevation H1 Sensor dispenser
• 2-in-1 Tork soap
• Plenty Super Strong kitchen towel
• Velvet Almond Milk toilet paper

Awards & Recognition

• Ranked among the world’s most ethical companies by the US Ethisphere Institute (5 consecutive years)
• Included in Dow Jones Sustainability Indexes and Carbon Disclosure Leadership Index
• 2011 Sustainability Report named the best in Sweden by FAR

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions from fossil fuels and purchased electricity and heating by 11.8% compared to 2005.
• Reduced water usage in water-stressed regions by 10.4% compared to 2010.
• Reduced accident frequency rate by 9% compared to 2011.
• Installed mechanical and biological effluent treatment systems at 42 of 44 pulp and paper mills.

Social Achievements

• Launched hygiene training programs in all product segments on all continents.
• Reduced accident frequency rate by 9% compared to 2011.
• 91% of employees received Code of Conduct training.
• Launched anti-corruption training program.

Governance Achievements

• Updated the Group’s Code of Conduct.
• Conducted Code of Conduct audits in Chile, France, Mexico, Slovakia, and Taiwan.
• Conducted business practice reviews in the Czech Republic, Spain, and South Korea.
• Adopted a new anti-corruption policy and provided e-learning training to 7,300 employees.

Climate Goals & Targets

Environmental Challenges

• Climate change and resource scarcity (energy, water, forest resources).
• Changing customer/consumer behavior (demand for sustainable products).
• Maintaining compliance with the Code of Conduct and managing risks related to human rights and corruption.
• Managing the environmental impact of transport activities.

Mitigation Strategies

• Investing in new technology, efficiency enhancements, biofuel, and wind power initiatives.
• Developing sustainable innovations and improving resource efficiency.
• Implementing risk management processes, training, audits, and business practice reviews.
• Implementing measures to reduce fuel consumption in shipping and road haulage, and improving coordination of freight.

Supply Chain Management

Supplier Audits: 60 audits in 2013

Responsible Procurement

• SCA Supplier Standard, Sedex database, sustainability audits.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and renewable energy sources.

Reporting Standards

Frameworks Used: GRI G3, Level A+

Certifications: OHSAS 18001 (45% of main sites), ISO 14001, FSC

Third-party Assurance: PricewaterhouseCoopers AB

Sustainable Products & Innovation

• TENA Identifi, TENA U-test, Tork Intuition Sensor, Libero open diapers

Awards & Recognition

• Named one of the world’s most ethical companies by the Ethisphere Institute.
• Included in the Dow Jones Sustainability Index, Climate Disclosure Leadership Index, FTSE4Good index.

Environmental Metrics

ESG Focus Areas

• Hygiene
• Forestry
• Climate Change
• Health and Safety
• Human Rights
• Supply Chain Responsibility
• Resource Efficiency
• Community Relations

Environmental Achievements

• Reduced CO2 emissions by 17.4% compared to 2005.
• Produced 610 GWh of biofuel from forests.
• Generated 1.9 TWh of wind energy from forest land.
• Reduced water usage in water-stressed regions by 18.7% compared to 2010.
• Installed mechanical and biological effluent treatment systems at all 43 pulp and paper mills.

Social Achievements

• Reached 2,000,000 people with hygiene education programs.
• 91% of employees received Code of Conduct training.
• Reduced accident frequency rate by 6% (31% compared to 2011).
• 84% of global hygiene suppliers and 86% of forest product suppliers signed the SCA Global Supplier Standard.

Governance Achievements

• Updated SCA’s Code of Conduct.
• Implemented a new anti-corruption policy.
• Launched an anti-trust e-learning training course for employees.

Climate Goals & Targets

Environmental Challenges

• Suspicions of cartel participation in Chile and Colombia.
• Need to improve resource efficiency and waste solutions, particularly for post-consumer waste.
• Addressing risks related to recovered fiber sourcing from high-risk areas.

Mitigation Strategies

• Cooperating with authorities and providing information regarding cartel suspicions.
• Implementing programs like ESAVE for energy savings and life cycle assessments for resource efficiency.
• Developing a Mexico Supplier Recognition Program to mitigate risks in recovered fiber sourcing.

Supply Chain Management

Supplier Audits: 30 CSR supplier audits

Responsible Procurement

• SCA Global Supplier Standard
• Sedex reporting

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G4 Guidelines, Core option, UN Global Compact

Certifications: OHSAS 18001 (partially), ISO 9001 (partially), ISO 14001 (partially), FSC®, PEFC™

Third-party Assurance: PwC

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• TENA Flex, TENA Pants, TENA Slip, TENA Comfort with Con/f_i oAir, TENA Identi/f_i , Tork Easy-Cube, Libero Touch, Arcwise

Awards & Recognition

• Most Innovative Supplier of the Year (Bunzl)
• Most Eco-Friendly Supplier (Checkout Magazine)
• Supplier of the Year (McKeeson)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water
• Waste
• Fiber Sourcing and Biodiversity
• Health and Safety
• Code of Conduct
• Community Relations
• Human Rights
• Supply Chain Management
• Innovation

Environmental Achievements

• Reduced CO2 emissions by 18.4% relative to 2005 production levels.
• Reduced suspended solids by 12.5%
• Increased biofuel production from forests to 740 GWh.
• Wind energy production from SCA forest land totaled 2.3 TWh.
• 57% of fiber was FSC/PEFC certified, 42% fulfilled FSC criteria for controlled timber.

Social Achievements

• 91% of employees received Code of Conduct training.
• Accident frequency rate decreased by 27%.
• Invested SEK 32m in approximately 400 community projects.
• 2,000,000 people reached through hygiene educational programs.

Governance Achievements

• Implemented “Ethical Dilemmas” training to increase understanding and create a culture of integrity.
• Strengthened internal training program on antitrust compliance.

Climate Goals & Targets

Environmental Challenges

• Post-consumer waste management, particularly for baby diapers and incontinence products.
• Cartel activities resulting in fines in Colombia and Spain.
• Maintaining compliance with competition rules across various countries.
• High accident frequency rate despite safety initiatives (though improved in 2016).

Mitigation Strategies

• Joined the Circular Economy 100 program to develop circular solutions.
• Intensified efforts to help employees do the right thing through training and ethical discussions.
• Created an extensive internal training program on antitrust compliance.
• Launched ZERO program to halve workplace accidents by 2018.

Supply Chain Management

Supplier Audits: 17 ethical supplier audits in 2016; Code of Conduct audits at four sites.

Responsible Procurement

• Global Supplier Standard
• Sedex reporting
• Ethical audits
• Risk assessments

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and services; renewable energy production.

Reporting Standards

Frameworks Used: GRI G4 Guidelines, Core option, UN Global Compact

Certifications: OHSAS 18001 (87% of main sites certified)

Third-party Assurance: EY

UN Sustainable Development Goals

• Goal 3: Good health and well-being
• Goal 5: Gender equality
• Goal 6: Clean water and sanitation
• Goal 12: Responsible consumption and production
• Goal 13: Climate action
• Goal 15: Life on land

SCA's products and initiatives contribute to these goals through improved hygiene, responsible forest management, reduced emissions, and resource efficiency.

Sustainable Products & Innovation

• TENA Lady Pants, Tork SmartOne, Okay Compressé

Awards & Recognition

• WWF Environmental Paper Awards 2016 (Transparency and Best Environmental Performance Paper Brands)
• CDP 2016 Climate A List, Forest A List, and Global Water Report A– rating

Environmental Metrics

ESG Focus Areas

• Climate change
• Biodiversity
• Responsible forest management
• Efficient use of resources
• Health and safety
• Community development
• Business ethics

Environmental Achievements

• Achieved a climate benefit of 10.5 million tonnes of CO2 in 2021 (more than emissions from all passenger cars in Sweden).
• Increased wind power capacity on SCA’s land to 6.5 TWh per year.
• Reduced oil consumption by 8,000 cubic meters per year at Obbola mill.
• Improved water treatment capacity at Obbola mill.

Social Achievements

• Maintained production and deliveries during the COVID-19 pandemic.
• Offered support to employees affected by the discontinuation of publication paper operations (training, coaching, extended notice periods, retirement solutions).
• Supported local sports clubs and cultural associations.

Governance Achievements

• Adopted guidelines for remuneration of senior executives.
• Complied with the Swedish Code of Corporate Governance without deviations.
• Maintained an investment grade credit rating.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and investment projects.
• Global supply chain disruptions.
• Fluctuating market prices for products and raw materials.
• Climate change impacting forest operations and biodiversity.
• Political decisions affecting forest operations and the forest industry.
• Risks linked to forest operations (pests, storms, fires).
• Risks at production plants (accidents, disruptions).

Mitigation Strategies

• Careful planning and targeted action to avoid the spread of infection during the COVID-19 pandemic.
• Use of own logistics organization to manage transport disruptions.
• Long-term contracts, price hedging (in exceptional cases), cost adaptation measures, innovation efforts.
• Active forest management to increase resilience to climate change, development of adapted seedling material.
• Monitoring and evaluation of changes in legislation and political decisions, membership in trade associations.
• Proactive measures to improve forestry methods, pest control, and fire prevention.
• Health and safety program, loss-prevention work, insurance, separate project organizations for major projects.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• SCA Supplier Standard addressing working conditions, health and safety, and business ethics.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions
• Storms, floods, droughts, and fires
• Insect and fungal damage

Transition Risks

• Political decisions and legislation limiting forest ownership or use
• Changes to fees and taxes on CO2 and transportation
• Development of new competing materials and technologies
• Increased recycling
• Market demand for sustainability

Opportunities

• Increased demand for renewable alternatives
• Development potential for wind power and biofuels
• Extended growing seasons offering increased growth

Reporting Standards

Frameworks Used: GRI

Certifications: FSC™ C004466, PEFC

Third-party Assurance: Ernst & Young AB (Limited Assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Renewable products replacing fossil-based alternatives (biofuels, packaging paper, solid-wood products)
• Kraftliner with a white printable surface (white-top) and wet-strength kraftliner

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Responsible Forest Management
• Efficient Resource Use
• Sustainable Development
• Employee Well-being
• Business Ethics

Environmental Achievements

• Achieved a climate benefit of 10.1 million tonnes of CO2 in 2022.
• Increased net forest growth.
• Zero waste target for 2030.
• Almost complete self-sufficiency in electricity through own production and wind power leases.
• Transition from fossil oil to fossil-free biofuel in industrial processes.

Social Achievements

• Active contribution to vibrant local communities and regional development.
• Over 50% of payments in 2022 were to recipients in the four northernmost counties of Sweden.
• Collaboration with non-profit organizations to develop sustainability agenda.
• Focus on an accident-free and healthy workplace.

Governance Achievements

• Compliance with the Swedish Code of Corporate Governance.
• Annual evaluation of Board and President’s work.
• Established guidelines for remuneration of senior executives.
• Implementation of a Code of Conduct and training for all employees.

Climate Goals & Targets

Environmental Challenges

• Fluctuating market prices for products and raw materials.
• Global inflation and rising interest rates.
• Energy crisis in Europe.
• Russia's invasion of Ukraine impacting supply chains and logistics.
• Climate change impacting forest operations (drought, storms, insect damage).
• Political decisions affecting forest management, transportation, and permits.
• Customer dependency.
• Supplier dependency and potential disruptions.
• IT security risks.

Mitigation Strategies

• High degree of self-sufficiency in wood, energy, and logistics.
• Long-term contracts and financial hedging (where appropriate).
• Active cost reduction measures (renegotiating contracts, new suppliers, etc.).
• Own logistics organization to counter market turbulence.
• Preventive work in environmental and social responsibility (certified management systems, control programs, risk analyses).
• Continuous improvement initiatives.
• Development of new products and services to enhance competitiveness.
• Collaboration with stakeholders.
• Supplier Standard and audits.
• IT security management model, including risk assessment and preventive measures.

Supply Chain Management

Responsible Procurement

• Supplier Standard addressing working conditions, health & safety, and business ethics.

Climate-Related Risks & Opportunities

Physical Risks

• Drought
• Storms
• Insect and fungal damage
• Torrential rain
• Flooding
• Forest fires
• Windfalls
• Changes in water access

Transition Risks

• Limitations on forest use rights
• Changes in taxes and fees
• Development of competing materials
• Changes in renewable energy access and pricing
• Permitting processes

Opportunities

• Increased demand for renewable materials and energy
• Development of new products based on forest raw materials or waste streams

Reporting Standards

Frameworks Used: GRI

Certifications: FSC, PEFC

Third-party Assurance: Ernst & Young AB (Limited Assurance)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)
• Goal 8 (Decent work and economic growth)
• Goal 15 (Life on land)

SCA's initiatives contribute to these goals through renewable energy production, climate benefit from forests and products, job creation, and biodiversity conservation.

Sustainable Products & Innovation

• Renewable products (solid-wood products, biofuels, packaging paper)
• Green electricity
• Biochemicals (tall oil, turpentine)
• Liquid biofuels
• Green chemicals

Environmental Metrics

ESG Focus Areas

• Climate change
• Forest management and biodiversity
• Resource efficiency
• Sustainable development
• Value-based culture and business ethics

Environmental Achievements

• Climate benefit of almost 13 million tonnes of CO2e in 2023 (more than one quarter of Sweden's emissions)
• Increased production capacity for kraftliner and CTMP pulp, reducing carbon intensity
• New dry sorting line at Bollsta sawmill, improving efficiency and product quality
• Started up biorefinery in Gothenburg, manufacturing liquid biofuel from tall oil
• Significant expansion of wind power production capacity on SCA's land

Social Achievements

• Continued efforts to create a safe and healthy work environment (ZERO initiative)
• Launched training programs for forest machine operators and purchasers
• Continued collaboration with private forest owners in northern Sweden
• Contributions to sustainable development in local communities

Governance Achievements

• Compliance with the Swedish Corporate Governance Code
• Establishment of a whistleblower system
• Regular review of the Code of Conduct and Sustainability Policy
• Annual evaluation of the Board's and President's work
• Sustainability issues and risks addressed at least at one Board meeting every year

Climate Goals & Targets

Environmental Challenges

• Lower demand and prices due to a weaker economic climate
• Increased raw material prices
• Energy crisis in Europe
• Global inflation and rapidly changing interest rates
• Russia's war of aggression in Ukraine
• Climate change (extreme weather, insect damage, fires)
• Competition for energy sources
• Market downturn in wood products

Mitigation Strategies

• High degree of self-sufficiency in wood, energy, and logistics
• Strategic investments in capacity increases and efficiency improvements
• Long-term contracts and financial hedges (where applicable)
• Active forest management to increase growth and reduce risks
• Development of renewable energy sources (wind power, biofuels)
• Continuous improvement initiatives to reduce environmental impact
• Collaboration with stakeholders to address challenges

Supply Chain Management

Responsible Procurement

• SCA Supplier Standard based on SCA’s Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions
• Increased rainfall
• Storms
• Insect and fungal damage
• Droughts
• Windfalls
• Changes in access to water

Transition Risks

• Regulatory changes
• Technological risks
• Market shifts
• Changes in fees and taxes
• Permit processes

Opportunities

• Increased demand for renewable materials and energy
• Development of new products based on forest raw materials
• Higher forest growth due to warmer climate

Reporting Standards

Frameworks Used: GRI Standards, GRI 1, Foundation 2021, TCFD

Certifications: FSC® C004466, PEFC (PEFC/05-23-131)

Third-party Assurance: Ernst & Young AB (Limited Assurance)

UN Sustainable Development Goals

• All 17 UN SDGs

SCA’s sustainability platform is built on six components that contribute together to all of the UN’s 17 Sustainable Development Goals.

Sustainable Products & Innovation

• Kraftliner with a white printable surface
• Wet-strength kraftliner
• Liquid biofuel
• Wood pellets