Responsible sourcing is key for SCA and includes ensuring the Group’s fiber comes from responsible sources.
New fiber sourcing target
SCA has introduced a new target for controlling the use of fresh fiber in its products. The new target states that “all fresh wood fiber-based raw material in our products will be FSC® or PEFC™ certified, or fulfill the FSC’s standard for controlled wood.” The target includes all deliveries of fresh wood fiber (timber, pulp, packaging, mother reels and articles supplied by third parties) to SCA’s production sites.
In 2016, 6.5 million tons of fresh fiber were delivered to SCA as wood, pulp, packaging, mother reels and third party supplied articles. 57% of the fiber was FSC/PEFC certified, 42% fulfilled the FSC standard for controlled wood, and 1% originated from controlled suppliers.
Wood (67%) and pulp (32%) were the two dominating fresh fiber sources, while packaging, externally supplied mother reels and third party supplied articles accounted for 1%.
Wood: 10.8 Mm3 was delivered to SCA, of which 50.7% was FSC or PEFC certified and the remaining share fulfilled the FSC Controlled Wood standard.
Pulp: 70% of the global pulp deliveries was FSC or PEFC certified and the remaining 30% fulfilled the FSC Controlled Wood standard.
Packaging: Approximately 0.25 Mtons of packaging material was delivered to SCA, of which 75% consisted of recycled fibers. A minor share of the virgin fiber (<15%) was purchased as FSC certified (Mix) while the majority came from FSC Controlled Wood sources or other controlled sources.
Mother reels: SCA purchased approximately 12,000 tons of which 2,000 tons were FSC certified and 7,000 tons fulfilled the FSC Controlled Wood standard or came from controlled suppliers. The remaining volumes were of known origin, through a non-chain of custody certified supply chain.
Third-party supplied articles: More than one-third of SCA-branded wet wipes were FSC-certified. The fresh fiber in the remaining two-thirds came from FSC Controlled Wood sources or other controlled sources. 100% of the fiber in other outsourced products is controlled and 90% of the total value is supplied directly from FSC or PEFC chain of custody certified suppliers.
SCA prioritizes the FSC certification system and encourages all suppliers to work toward certification. We recognize several systems for forestry management, including the PEFC, SFI (Sustainable Forestry Initiative) and CSA (Canadian Standards Association). Other certification systems may be considered on a case-by-case basis. SCA continued to roll out FSC® and PEFC™ chain of custody in manufacturing sites, adding a further eight sites to the list of chain of custody sites. In total, 46 of the 56 sites within the scope of the roll-out have been chain of custody certified. SCA’s intention is to roll out the chain of custody to all remaining wholly owned manufacturing sites during 2017.
A global fiber database
SCA has a Global Fiber Sourcing Policy in place and a shared business system – the Global Fiber Database – for the assessment and purchase of fiber in compliance with SCA’s forest management policies. The database includes all of the Group’s pulp, recovered fiber and alternative fiber suppliers. It provides the purchasing function, environmental department, R&D department and production facilities with fast and easy access to important information about suppliers, region of supply, wood species, pulp specifications, bleaching methods and life cycle assessment data.
The information also includes the suppliers’ product certification status: FSC® (Forest Stewardship Council), PEFC™ (Programme for the Endorsement of Forest Certification), Controlled Wood, ecolabels, ISO 9000, etc. As a result, SCA can ensure traceability, the R&D department can check the availability of a certain raw material and the mills can show customers exactly what has been purchased. The database is continually updated to support SCA’s global operations.
SCA requires pulp suppliers to guarantee that they have robust systems and documented procedures in place to ensure traceability and compliance throughout the supply chain. In 2016, SCA had 31 (38, 33) pulp suppliers, of which the ten largest accounted for 83 % (83, 72) of purchases.
All pulp suppliers are Chain of Custody (CoC) certified according to the FSC and/or PEFC. SCA’s Fiber Sourcing Policy includes a step-by-step process to support suppliers in their transition to third-party certification.
Supplier audit results 2016
SCA audits its suppliers to verify their compliance with the Fiber Sourcing Policy and supplier requirements. All suppliers were assessed to ensure continued compliance with the chain of custody certification. In addition, all suppliers received questionnaires in order to update fiber and ecolabel information. Visits were also made to nine sites in 2016. All suppliers demonstrated continued compliance with SCA’s sourcing policies and were retained for continued supply. In addition to the pulp supplier audits, support has been provided to some raw material suppliers where fiber may be part of the raw material (i.e. non-wovens) to help them achieve FSC chain of custody certification.
SCA uses 42% fresh fiber and 58% recovered fiber in its operations. For a further breakdown at the product level, see “Distribution of raw materials” in chapter Resource Management System. The proportion varies between regions due to differences in consumer preferences and fiber supply and demand. The North American operations use almost 100% recovered fiber, while the proportion of recovered fiber is 79% in Latin America and 44% in Europe.
The declining use of publication papers in North America and Europe has led to limited supplies of recovered fiber. SCA partners with trade organizations and recycled paper operators to expand and improve the collection of recycled paper and board, thereby increasing the availability of recovered fiber. SCA is part owner in several paper-recycling companies, such as Bunzl & Biach in Austria, Paperinkerays in Finland and AFS in the US.