Company Profile

Svenska Cellulosa (SCA)


Svenska Cellulosa AB (SCA) is a paper and packaging company with a sawn timber business.

This organization operates on the belief that "sustainability makes good business sense." Executives at SCA have long believed that environmental efforts should not be regarded as an expense but as a contribution to increasing profitability. SCA acknowledges that climate change is the most pressing environmental issue of our time and is involved in a joint venture with the Norwegian energy company Statkraft to build six wind farms in Sweden. SCA is a leading user of recycled fiber in Europe, with approximately one-half of the company's raw materials comprised of recovered fiber. SCA utilizes biofuels and operates several efficient co-generation facilities at its production plants. All of the company-owned forestlands are certified by the Forest Stewardship Council (FSC) and products are made primarily from sustainably sourced and renewable materials. As a result of the company's long-term forest management, every year SCA's owned forests absorb approximately 2.5 million tons of carbon dioxide, which roughly corresponds to the total volume of emissions from the company's production plants.

As SCA expands into Asia, Portfolio 21 encourages the company to develop a strategy for continued commitment to FSC forests and materials, increase recovered paper collection, and continue exemplary compliance with environmental standards. Additionally, Portfolio 21 asks SCA to be more transparent regarding its procurement of non-FSC wood fiber, and what proportion of wood fiber this represents of SCA's total procurement.

To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 12/31/13 and may not reflect current opinions or subsequent events.


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