Cheuvreux Climate
Change 6 Conference
Kersti Strandqvist, SVP Sustainability, SCA
SCA – a global hygiene products and
    paper company
     Net sales EUR 11.3bn (SEK 107bn)
     45,000 employees and sales in more than 100 countries
     TEN and Tork leading global brands for incontinence
     care and Away From Home tissue
     World’s third largest hygiene products company
     Europe’s largest private forest owner
     Europe’s second largest packaging company




2                                                          6 May 2011
SCA Group
    Sales and EBIT split 2010
EBIT split                                                                           EBIT split
             Forest Products            Sales split                  Personal Care




    25%                                                                              29%
                                         16%     24%

                                      24%
                                                36%
    16%                                                                              30%


                Packaging                                               Tissue


                   More than 90% of SCA’s products consists of renewable material
                   SCA uses about 50% recovered fibre
3                                                                                      6 May 2011
SCA’s sustainability targets

       Carbon dioxide emissions                                              Responsible use of wood raw
       SCA will reduce its emissions                                         material
       from fossil fuels and from                                            No fresh fibre-based material
       purchased electricity and heating                                     comes from controversial
       by 20% by the year 2020, with                                         sources**. Target also includes
       2005 as a reference year.                                             pulp and containerboard.



       Improved water usage                                                   Code of Conduct compliance
       Reduce consumption by 15% and                                          SCA’s Code of Conduct applies to
       reduce organic content in                                              all employees at all locations
       wastewater by 30% between                                              worldwide.
       2005 and 2010.*




       *2010 was the final year of SCA’s target for improved water usage.   **Illegally logged timber, Timber from forests with high conservation
       Work is under way to prepare future water initiatives and targets.   value and/or timber from areas where human rights or traditional rights
                                                                            of indigenous people are being violated.



4                                                                                                                                     6 May 2011
Carbon dioxide emissions
    At year-end 2010 CO2 emissions had
    declined 4.2% relative to production level
    Systematic reduction of fossil fuels
    Substantial investments in green electricity




5                                                  6 May 2011
Our forests
    A valuable asset

     Europe’s largest private forest owner –
     FSC certified
     Annual net growth of 1%
     Raw material integration and potential
     for electricity generation
     Our forests absorb as much carbon
     dioxide as is discharged from our entire
     production
     If the worlds forests were managed the
     same way as SCA’s that would solve a
     big part of the climate change problem




6                                               6 May 2011
Future opportunities
    Forest industry in transformation

     Maximise the value from each tree
        Fibres, lignin, hemicellulose, bark, liquid wood and
        more
        Examples of replacing oil-based materials with
        forest-based products: in protective packaging,
        wood-based diapers, Virgin Car – a partnership
        with Volvo and others to produce cars based on
        biomaterial




7                                                              6 May 2011
Biofuels
    Biofuels account for 43% of SCA’s fuel consumption
    Deliveries of 3.5 TWh in 2010
    Logging residuals and by-products from forest
    industry becomes biofuel
    Only 1/3 of potential of logging residuals is utilized

    Challenging demand/capacity situation
       Policy driving demand for renewable
       energy/biomass
       EU road map 2050: peak on demand expected
       for 2020-2030 (expected gap in 2020,
       200-300 m3 under bark)


8                                                            6 May 2011
Innovative solutions
    Great potential in renewable energy

     Windpower
        SCA/Statkraft initiative, 2.4 TWh
        Many potential wind areas on SCA land
        Leasing of locations
     New business unit for renewable
     energy solutions, SCA Energy




9                                               6 May 2011
6 May 2011

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SCA presentation Cheuvreux Climate Change 6 conference

  • 1. Cheuvreux Climate Change 6 Conference Kersti Strandqvist, SVP Sustainability, SCA
  • 2. SCA – a global hygiene products and paper company Net sales EUR 11.3bn (SEK 107bn) 45,000 employees and sales in more than 100 countries TEN and Tork leading global brands for incontinence care and Away From Home tissue World’s third largest hygiene products company Europe’s largest private forest owner Europe’s second largest packaging company 2 6 May 2011
  • 3. SCA Group Sales and EBIT split 2010 EBIT split EBIT split Forest Products Sales split Personal Care 25% 29% 16% 24% 24% 36% 16% 30% Packaging Tissue More than 90% of SCA’s products consists of renewable material SCA uses about 50% recovered fibre 3 6 May 2011
  • 4. SCA’s sustainability targets Carbon dioxide emissions Responsible use of wood raw SCA will reduce its emissions material from fossil fuels and from No fresh fibre-based material purchased electricity and heating comes from controversial by 20% by the year 2020, with sources**. Target also includes 2005 as a reference year. pulp and containerboard. Improved water usage Code of Conduct compliance Reduce consumption by 15% and SCA’s Code of Conduct applies to reduce organic content in all employees at all locations wastewater by 30% between worldwide. 2005 and 2010.* *2010 was the final year of SCA’s target for improved water usage. **Illegally logged timber, Timber from forests with high conservation Work is under way to prepare future water initiatives and targets. value and/or timber from areas where human rights or traditional rights of indigenous people are being violated. 4 6 May 2011
  • 5. Carbon dioxide emissions At year-end 2010 CO2 emissions had declined 4.2% relative to production level Systematic reduction of fossil fuels Substantial investments in green electricity 5 6 May 2011
  • 6. Our forests A valuable asset Europe’s largest private forest owner – FSC certified Annual net growth of 1% Raw material integration and potential for electricity generation Our forests absorb as much carbon dioxide as is discharged from our entire production If the worlds forests were managed the same way as SCA’s that would solve a big part of the climate change problem 6 6 May 2011
  • 7. Future opportunities Forest industry in transformation Maximise the value from each tree Fibres, lignin, hemicellulose, bark, liquid wood and more Examples of replacing oil-based materials with forest-based products: in protective packaging, wood-based diapers, Virgin Car – a partnership with Volvo and others to produce cars based on biomaterial 7 6 May 2011
  • 8. Biofuels Biofuels account for 43% of SCA’s fuel consumption Deliveries of 3.5 TWh in 2010 Logging residuals and by-products from forest industry becomes biofuel Only 1/3 of potential of logging residuals is utilized Challenging demand/capacity situation Policy driving demand for renewable energy/biomass EU road map 2050: peak on demand expected for 2020-2030 (expected gap in 2020, 200-300 m3 under bark) 8 6 May 2011
  • 9. Innovative solutions Great potential in renewable energy Windpower SCA/Statkraft initiative, 2.4 TWh Many potential wind areas on SCA land Leasing of locations New business unit for renewable energy solutions, SCA Energy 9 6 May 2011