About the report

This report describes SCA’s sustainability initiatives from an environmental, social and financial perspective. SCA publishes a sustainability report each year.

The Sustainability Report and the Annual Report should be viewed as a single unit in which information may be provided in either report or, where appropriate, in both. Corporate governance is an example of a subject that is referred to briefly in the Sustainability Report and a more detailed description is provided in the Annual Report’s corporate governance section.

Reporting principles

The environmental and social data reported pertains to the 2016 calendar year. The figures included comply with relevant reporting and consolidation principles in accordance with the principles in the financial statements. SCA uses the global Greenhouse Gas Protocol standard for how to measure, manage and report carbon data. The figures cover the SCA Group’s wholly owned subsidiaries and subsidiaries in which SCA owns at least 50% of the company. If SCA’s ownership of a company is 50% or more, the entire company is included. An exception is made in the case of the Chinese company Vinda, in which SCA owns 51.4% of the votes and which was consolidated as a subsidiary in 2014. The data from Vinda includes the number of employees and their age and gender distribution. Vinda publishes an environmental, social and governance (ESG) report, which is available at www.vinda.com.

Some social data from joint ventures is not included. data is one example, due to the fact that SCA and its joint ventures do not share a common code. The Colombian Familia Group, which is SCA’s largest joint-venture company (refer to Note F1 in the SCA Annual Report), reports in accordance with the GRI G4 guidelines. For more information, visit www.grupofamilia.com.co.

Newly acquired businesses are integrated when they have been part of the Group for one calendar year. Wausau Paper was incorporated as of the closure of the acquisition on January 21, 2016. The historic environmental and social data of newly acquired units is included to the greatest possible extent in order to increase comparability (also refer to the section on comparability below). The data from divested units is excluded in its entirety as of the divestment date. Historic data for discontinued units is used.

When adjustments have been made compared with earlier reports, a note is appended directly beside the text or table. A is a production facility that is wholly owned by SCA and that has 100 or more employees.

Data collection

Data provided in the report is compiled through various systems, primarily the Group’s ABS accounting system, Resource Management System () and SCA’s system for collection of social data.

Environmental data

The RMS encompasses more than 80 production sites, covering virtually the entire company’s environmental impact and resource utilization from production. It includes data from manufacturing operations but not from corporate staffs, offices or joint ventures. Data from stand-alone converting sites is included in the main mother reel supplying site. Each unit reports the following data to the system:

  • raw material consumption
  • incoming and outgoing shipments
  • production volumes
  • energy consumption broken down by hydroelectric power, co-generation and power from the grid
  • fuel consumption broken down by , and
  • air emissions, including data on fossil and biogenic
  • emissions
  • solid waste

The data is reported both internally and externally at the mill level, business unit level and for the Group as a whole.

Social, Occupational Health & Safety (OHS) and Human Resource (HR) data

Data is provided from different internal systems and tools depending on the nature of the data. HR data resides in SCA’ s HR system and other qualitative data is collected in SCA’s database for social data.

Comparability

Certain data is adjusted retroactively to facilitate comparisons. Figures for the preceding year are available in previous publications of SCA’s Sustainability Reports. This applies for example to data encompassed by SCA’s sustainability targets, such as CO2 and health and safety.

The results of the Group’s CO2 target and water target are adjusted each year in relation to production levels. Other environmental data is reported in absolute figures.

UNGP

As of 2015, this report applies the reporting framework for the United Nations Guiding Principles on Business and (UNGPs) and SCA has reported on the overarching aspects contained in the framework.

GRI reporting

For the ninth consecutive year, SCA has prepared its report in accordance with Global Reporting Initiative (GRI) guidelines. The 2016 report adheres to GRI G4 guidelines at Core level. Accordingly, the Report has been structured in accordance with GRI principles, meaning that the content is determined by the issues that are most material to SCA and its , and that the content provides a complete overview of the operations. With a few exceptions, SCA reports in accordance with all GRI indicators and on a level identified as material. The identification of specific standard disclosure GRI aspects to report has been matched with SCA’s materiality analysis. Any omissions or incomplete data are either commented on directly in the GRI index or on this page.

The entire Sustainability Report has been reviewed by EY. The report is aimed at specialist audiences with an interest in SCA’s sustainability performance, including analysts, investors and . More detailed information about SCA’s work on environmental and social issues is available at www.sca.com.

Code of Conduct
Is a formal statement of the values and business practices of a company. A code is a statement of minimum standards, together with a pledge by the company to observe them and to also require its contractors, subcontractors and suppliers, to observe them.
Main site
A production facility that is wholly owned by SCA and that has 100 or more employees.
RMS
SCA’s Resource Management System: a means of collecting and collating all environmental data and resource utilization within the SCA Group.
Tissue
Creped soft paper which is the basis for hygiene products such as napkins, toilet paper and towels, and toweling products for institutions, hotels, etc.
Biofuel
Renewable fuel from wood and process residues.
Fossil fuel
Coal, fuel oil and natural gas.
Electric boiler
Electricity supplied for thermal heat (production), for boilers and heat pumps, measured at the site and converted into GJ.
CO2, Carbon dioxide
A gaseous compound emitted naturally through geological activity during the decomposition process and through human activity. Industry and transport and heating/cooling are currently the largest emitters of CO2.
Water
Represents the sum of surface water, ground water and tap water for processes and cooling purposes.
Human Rights
Are based on the recognition of the inherent dignity and the equal and inalienable rights of all members of the human family, and are the foundation of freedom, justice, and peace in the world. They are defined in the Universal Declaration of Human Rights (1948).
Stakeholders
Groups of people with whom an organization has active relationships, and with whom effective dialog is necessary to the functioning of the business. Shareholders, authorities, customers, employees and professional associations are all stakeholders in SCA’s business activities.
Non-Governmental Organizations (NGOs)
Are national, international, and community-based groups that raise awareness about social, environmental, community and human rights issues.