People and nature innovations

Innovations that improve social and environmental performance also make financial sense. For SCA, such innovations are linked to an in-depth understanding of customers and consumers.

SCA’s innovation process

SCA’s innovation process originates in an understanding of a customer or consumer need and is divided into four phases:

• Feasibility: innovation concepts based on customer or consumer insight are elaborated and validated. The market situation and the global business potential are assessed, and high-level technological and commercial feasibility are evaluated.
• Development: A cross-functional project team is engaged in the development of a proposed solution, including a specific product, service or business model. Requirements of the product, packaging, service and technology are developed and verified with customers and consumers, and communication materials are prepared. Product safety assessments for materials, life cycle assessments (LCAs) and social assessments are performed by experts to ensure product safety and environmental and social performance.
• Capacity: The project works toward market launch and building the capability to deliver. Launch campaign materials are created, the production solution is verified against requirements, and all product and packaging specifications are finalized. The fulfilment of the regulatory requirements governing products in all markets is secured.
• Launch: The innovation is introduced to customers/consumers in the market. The intended benefits are weighed against market feedback; the supply chain is adjusted accordingly. Supply and demand balance is optimized in production to ensure efficiency and the feedback drives the roll-out plan.

In 2015, SCA invested SEK 1,093m (1,050) in research and development. This corresponds to 0.9% of total sales.

Open innovation

SCA has a portal for open innovation. Inventors, entrepreneurs and small companies are invited to submit solutions in response to various challenges from SCA. The solutions should be patented so that there are no outstanding issues regarding intellectual property rights should the proposal result in a licensing agreement or other type of business arrangement. A number of proposals have been submitted this way and some of them have led to further collaboration or product launches. One example is Tork EasyCube, an IT-based service for public restrooms, which is described in more detail in chapter Customer and consumer satisfaction. The service was developed in close cooperation with customers in the facility service business. Another is the TENA U-test, an in-pad detection for urinary tract infections, developed by a small start-up company.

SCA launched an internal innovation platform in 2013 called ICON (Idea Collaboration Online). ICON is not limited to product innovations. Proposals may include manufacturing, logistics or marketing solutions. ICON complements other platforms and initiatives to spur innovation and is frequently used in early phases of the innovation process to gather solutions and ideas from employees.

Life cycle management

Life cycle management is about effectively combining value, social and environmental aspects in every part of the life cycle. This enables SCA to deliver products and services that meet customers’ needs and exceed their expectations.

• Active sourcing involves seeking high-quality, safe and environmentally sound raw materials. SCA’s suppliers adhere to strict standards, including criteria for quality, product safety, environment, chemicals and code of conduct compliance.
• Clean production focuses on an efficient use of resources and on reducing energy and waste. The production units apply management systems such as ISO 9001, ISO 14001 and OHSAS 18001.
• Sustainable solutions are defined as innovative, safe and environmentally sound hygiene products and services. SCA’s innovations are based on consumer and customer insight with a focus on meeting needs in daily life.

Life cycle assessments

SCA has used life cycle assessments (LCAs) since the early 1990s. An LCA illustrates the complete environmental impact of a product based on the ISO 14040 and 14044 standards. It is a standardized measurement of environmental impact in every phase of the product, from raw materials, product development, production and use to disposal of waste.

For each activity in the life cycle, an LCA calculates the input of resources, energy and transportation and the output of, for example, emissions to air and water.

The result of an LCA is expressed in environmental impact categories. The LCAs conducted by SCA cover the main impact categories that describe the potential impact on global warming/climate change, meaning the product’s carbon footprint, acidification of rivers and lakes and eutrophication of land or water systems.

Definition of People and nature innovations

SCA’s People and nature innovations are defined as inventions that lead to social or environmental improvements. The social assessment criteria include health, hygiene, working conditions, ergonomic improvements, as well as dignity and confidence in social situations. With respect to the environmental assessment, performance and resource efficiency are measured using life cycle assessments and/or third-party labels are taken into account.

People and nature innovations 2015

In 2015, SCA launched about 30 innovations. People and nature innovations accounted for 43% of total innovation sales. Read about some of these in chapter People and nature innovations.