SCA’s strategy

SCA’s vision has been broken down into four measurable objectives and strategies with clear connections to stakeholder groups such as shareholders, customers and consumers, society and employees:

Vision

Dedicated to improving well-being through leading hygiene and health solutions

SCA’s vision is “Dedicated to improving well-being through leading hygiene and health solutions”. There is a growing awareness worldwide about how health, hygiene and well-being are linked, while at the same time limited or no access to hygiene and sanitation is one of the largest global challenges to be resolved. SCA wants to be a thought leader in hygiene matters. SCA has the knowledge, experience, products and solutions as well as the commitment to contribute to improving hygiene standards worldwide. SCA wants to initiate a global dialog about the link between hygiene and health through education, information and promoting awareness of the importance of good hygiene and breaking the taboos surrounding incontinence and menstruation. Approximately 500 million people use SCA’s hygiene products every day. SCA makes a positive difference in people’s everyday lives by maintaining close proximity to customers and consumers, understanding their needs and transforming this knowledge into leading solutions.

Mission

To sustainably develop, produce, market and sell value-added hygiene and forest products and services

SCA products (photo)

The Group’s mission is to sustainably develop, produce, market and sell value-added hygiene and forest products and services.

Objectives

SCA’s overall objective is to generate long-term value for its shareholders and that the SCA share will deliver a higher total shareholder return than competitors. In order to increase value creation and the total shareholder return, SCA is focusing on profitable growth. SCA is investing in future growth and working to increase profitability and grow where profitability is high. In each of the geographic markets and product categories where SCA is represented, the ambition is to generate a return that exceeds the cost of capital and improves cash flow.

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What makes SCA successful is the understanding, knowledge and insight about the needs of customers and consumers and the ability to transform this into innovative offerings that increase qualityof life and make everyday life easier for people. SCA strives to offer the best value for customers and consumers with affordable hygiene solutions to everyone and by adapting its offering to local and regional market conditions to increase hygiene standards worldwide. SCA wants to reach more people by promoting a global dialog concerning hygiene, health and well-being.

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The circular economy is a business model that involves minimizing resource consumption and waste, and creating a closed loop for reusing, recycling or composting. Work contributing to a sustainable and circular society requires new business solutions and innovations at the same time as new business opportunities are created. For SCA, this entails continuing its work with a business model and innovation process that takes into consideration the entire life cycle. SCA has a high level of ambition with regard to resource use and its goal is to recycle and reuse 100% of its production waste by 2030.

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SCA’s success depends upon having motivated, dedicated and performance-driven employees. As a global employer, SCA strives to offer new opportunities for employees to develop and realize their full potential. The company values the experiences employees can obtain from work in different geographies, roles, functions or business areas. SCA is developing dedicated, responsible and inclusive leaders. The company believes differences contribute to success and strives to achieve diversity in terms of nationality and gender, and expertise and personality.

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Strategies

SCA strives to hold a number one or two position in the geographies and categories where the company chooses to operate. The company compares itself with the best competitors in each product category in each geographic market and aims to perform better or in line with the best competitor. SCA has a clear priority for which geographic markets it wants to operate in, and which product categories it will offer in these markets.

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SCA is there for its customers and consumers. Important competitive advantages for SCA are the company’s understanding, knowledge and insight into the needs and purchasing behavior of customers and consumers, global expertise, strong customer relations and knowledge about local and regional market conditions. To understand their needs and expectations, the company is engaged in a continuous dialog with customers and consumers. SCA uses various types of market and customer surveys to create customer understanding and consumer insight, which determine the innovations it develops and how the company formulates and implements its business strategy.

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Successful innovations and strong brands go hand in hand. Innovative products and solutions simplify everyday life for people and strengthen SCA’s brands and market positions. Strong brands mean the company can increase the impact of its innovations. SCA’s innovation strategy is to increase the pace of innovation, capitalize on global economies of scale and ensure that all product segments have a competitive and balanced portfolio of innovations.

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SCA is dedicated to improving productivity in the entire value chain. Central in this work is establishing the right structures and streamlining all parts of the business. A lasting positive impact on earnings can be achieved when all areas of SCA cooperate using an integrated and efficient approach. By improving efficiency and maximizing production, minimizing waste and continuously finding ways to reduce material and logistics costs, the company will strengthen its competitiveness, cut costs and improve profit while reducing its environmental impact. SCA is working to benefit from global economies of scale and expertise to streamline all parts of the business and establish a world-class supply chain.

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