We create value
for our stakeholders
SCA’s business model and strategy aim to deliver maximum value for our stakeholders. By developing, producing and selling sustainable personal care products, tissue and forest products, SCA creates value for shareholders, customers and consumers, suppliers, employees and society.
Economic value creation by stakeholder in 2015
SCA’s overall long-term objective is to generate increased value for our shareholders. This is achieved through a positive share price trend and dividends. SCA aims to provide long-term stable and rising dividends to its shareholders. When cash flow from current operations exceeds what the company can invest in profitable expansion over the long term – and under the condition that the capital structure target is met – the surplus shall be distributed to the shareholders.
Outcome 2015: SCA’s share price rose 46% in 2015. The Board of Directors proposes an increase in the dividend by 9.5% to SEK 5.75 (5.25) per share. Accordingly, dividend growth in the most recent five-year period amounted to 7.5%.
Customers and consumers
SCA simplifies everyday life for millions of people worldwide. To create additional customer and consumer value, SCA focuses on developing new, attractive products and services, evolving and improving its existing offerings, and expanding its range. With its comprehensive customer and consumer insight, SCA aims to not only meet consumers’ needs, but also exceed their expectations. SCA also works to provide information about hygiene and its hygiene products and solutions. In emerging markets, SCA sells hygiene products and solutions that are specially adapted to consumers with limited resources.
Outcome 2015: SCA held the number one or two position in at least one hygiene product segment in some 90 countries. We offered a broad portfolio of products ranging from the premium segment to the economy segment and introduced approximately 30 innovations and product launches during the year. SCA continued to educate young women about menstruation and puberty, as well as educating children about the importance of hand hygiene and providing training for nurses in the field of incontinence care.
SCA strives to have transparent, long-term relationships with its suppliers to guarantee both high quality and financial stability for both parties. Purchasing accounts for SCA’s single largest expense. To achieve economies of scale, input goods, such as pulp, electricity and chemicals, are purchased centrally. SCA’s goals in the area of responsible sourcing encompass all suppliers of raw materials and input goods. The SCA Global Supplier Standard serves as a basis for ensuring that the company’s suppliers meet the highest standards in terms of social and environmental responsibility and product safety.
Outcome 2015: SCA paid approximately SEK 74.8bn to its suppliers during 2015. A total of 84% of SCA’s hygiene supplier base and 86% of the forest products supplier base had signed the SCA Global Supplier Standard.
Our employees are SCA’s most important asset. The Group depends on motivated and competent employees who are willing to think outside the box and contribute to the company’s success. Employee commitment and performance are critical to SCA’s ability to successfully pursue its strategy, meet its goals and continue to develop. All professional development at SCA has its starting point in the Group’s business goals, and harmonizes the individual’s ambitions with the Group’s expectations. We create value for our employees by offering professional development opportunities and a stimulating, safe and healthy work environment. SCA offers employment terms and benefits that are in line with prevailing market terms.
Outcome 2015: During 2015, SCA paid approximately SEK 14.9bn in salaries to our employees. In 2015, SCA conducted its third global All Employee Survey, which received the highest response rate to date at 88.3%. The All Employee Survey is a tool for measuring various aspects of SCA’s corporate culture, such as leadership, teamwork and employee commitment. The results help SCA to continuously develop and improve.
SCA contributes to the local economy as a major employer in many regions and through its community involvement. Aside from income tax, SCA also pays customs duties, property taxes, payroll taxes, pension taxes, and energy taxes.
Social challenges can serve as a source of innovation and development for companies’ business models and product offerings. SCA’s operations related to health and hygiene provide excellent solutions to some of the challenges faced by society in both mature and emerging markets.
SCA also participates in the community through projects with a clear link to the company’s values, expertise, operations and geographic presence. The focus of these projects is on hygiene and health, often related to women and children.
Outcome 2015: SCA paid SEK 2.2bn in income tax in 2015. Payroll taxes for the year amounted to SEK 3.2bn. SCA invested approximately SEK 37m in 400 local community involvement projects during the year.