Olli Härkönen - Tissue World

SUSTAINABILITY AND ENERGY SAVINGS
SCA - Global Hygiene and Forest Products Company - As A Leader
in Terms of Sustainability
Olli Härkönen
Director Energy Savings and Technology,
SCA Hygiene Products, Finland
Olli Härkönen holds the position of Director, Energy Savings & Technology within SCA Hygiene Products. In his role, Olli is
responsible for the energy and materials utilization efficiency in the Supply Chain, covering 80+ locations globally.
During his career in SCA since 2008, Olli has step-wise progressed from the European Tissue Supply organization to taking
global responsibilities on Sustainability, and is now leading an expert team supporting the manufacturing sites to lower
their manufacturing cost and environmental footprint.
SCA as a Sustainability Leader
Barcelona Tissue World, 17th to 19th March 2015
Olli Härkönen, Director Energy Savings and Technology
SCA Global Hygiene Supply / Manufacturing Excellence
Content
1. SCA in Short
2. Our Business
3. Sustainability – integral part of SCA structure
4. Sustainability in the Tissue Supply
Questions?
This is SCA
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SCA in Short
This is SCA
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SCA is a Leading Global Hygiene
and Forest Products Company
This is SCA
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This is SCA
Personal care,
tissue and forest
products
SCA was founded in 1929
Sales in 100
countries
44,000 employees
Many strong brands
Sales in 2013
SEK 93bn (EUR
10.7bn)*.
Europe’s largest
private forest
owner
* Due to new and amended reporting standards net sales in 2013 has been recalculated from SEK 89bn to SEK 93bn.
This is SCA
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SCA Group
Personal care, Tissue and Forest products
Net sales 2013 of about SEK 93bn
44,000 employees
Sales in about 100 countries
#1 or #2 positions in close to 90 countries
Strong brands;
TENA and Tork leading global billion-euro brands for Incontinence products and
Away-from-Home tissue
80 local and regional brands
Europe’s largest private forest owner
Several of the world’s most prestigious sustainability awards
This is SCA
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Our Business
This is SCA
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Main Markets
Sales by region
Largest markets, sales SEKm
Europe, 73%
North America, 11%
Latin America, 9%
Asia, 6%
Germany
France
Other countries, 1%
UK
US
Sweden
Spain
Mexico
Netherlands
Italy
Russia
0
This is SCA
4.000
8.000
12.000
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Leading Market Positions
Globally and Regionally
North America
Incontinence products:
AfH tissue:
Nordic region
3
3
Mexico
Incontinence products:
1
Europe
Baby diapers:
1
Tissue:
1
AfH tissue:
1
Incontinence products:
1
Consumer tissue:
2
Baby diapers:
2
Feminine care:
2
Feminine care:
3
Incontinence products:
1
Feminine care:
1
Private forest owners:
1
Tissue:
2
Solid-wood products:
2
Baby diapers:
3
Colombia
China
Globally
Incontinence products:
1
Feminine care:
1
Tissue:
1
Baby diapers:
2
Incontinence products:
2
Tissue:
3
Baby diapers:
5
Incontinence products:
1
Asia
AfH tissue:
1
Incontinence products:
Consumer tissue:
2
This is SCA
(ex Japan)
1
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Business Areas
Sales 2013
Operating profit
Operating profit
17%
30%
Forest Products
17%
30%
Personal Care
53%
Operating profit
53%
Tissue
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Forest Products
SCA is Europe’s largest private forest
owner, encompassing some 2.6 million
hectares of forest land and produces forest
products with a strong environmental profile.
Publication papers
Kraftliner (packaging papers)
Pulp
Solid-wood products
Renewable energy
Sales 2013: SEK 15.5bn
LWC paper
Kraftliner
23%
17%
5%
Timber
3%
9%
SC paper
Newsprint
14%
Pulp
29%
Solid-wood products
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Personal Care
Incontinence products
SCA is a global leader in personal care.
Products are sold under SCA’s global,
regional and local brands as well as
under retailer’s brands.
Baby diapers
Feminine care products
Sales 2013: SEK 27bn
Feminine care
15%
29%
Baby diapers
This is SCA
56%
Incontinence
products
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Tissue
SCA is a global leading consumer tissue
and Away-from-Home tissue company
Toilet paper
Kitchen rolls
Facial tissue
Handkerchiefs
Napkins
Complete hygiene solutions for
institutions and companies
Sales 2013: SEK 47bn
Away-fromHome tissue
39%
61%
Consumer tissue
This is SCA
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SCA Hygiene – locations
80+ Factories for Hygiene Products Worldwide, incl. JV
~ 20,000
people
This is SCA
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Vision
What we are Aiming For
“We will make a difference by
providing essentials
for everyday life”
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Mission
What We are Here to Do
To sustainably develop, produce, market and
sell increasingly value-added products and
services within hygiene and forest products
markets for customers and consumers.
Satisfying needs through understanding of
customers and consumers, knowledge of local
and regional market conditions and superior
go-to-market approaches, combined with
global experience, strong brands, efficient
production and innovation.
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Business Enablers
Key Enablers to Achieve our Objectives
Attracting, recruiting, developing and retaining
right skills to deliver and execute on our
strategy and growth plan
Leadership
Performance driven
culture with clear targets
and accountability
Performance
culture
Sustainability is an integral
part of our business model
Brands
Strong brands – the SCA
brand and our customer
and consumer brands
Sustainability
This is SCA
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Sustainability
This is SCA
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Creating Value for Business, People
and Nature
Sustainability is an integral part of business
operations
This is SCA
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Sustainability
An Integral Part of our Strategy and Business Model
EFFICIENCY
INNOVATION
GROWTH
SUSTAINABILITY
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SCA Group Targets
What is Measured Gets Done
People Targets
Nature targets
Sustainable
Innovations
Climate & Energy
Hygiene solutions
Fiber sourcing and
Biodiversity
Code of Conduct
Water
Employee Health &
Safety
Financial Targets
Return on capital
employed
Growth
Capital structure
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People Targets

We will deliver better, safe and environmentally sound solutions to our
customers. We strive to continuously improve resource efficiency and
environmental performance considering the whole lifecycle for new
innovations.

We will make our knowledge about hygiene available to customers
and consumers and ensure access to affordable, sustainable
hygiene solutions to help them lead a healthy and dignified life.

Our SCA supplier standard will be used to drive shared values and
priorities through our supply chain. We will use it in all our supply chain
contracts by 2015.

We will maintain compliance with our SCA Code of Conduct. All
employees will receive regular training in the code.

Our aim is zero workplace accidents, and we will decrease
our accident frequency rate by 25% between 2011–2016.

OHSAS 18001 will be implemented at all main sites by 2016.
This is SCA
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Nature Targets

We will reduce CO2 emissions from fossil fuels and from purchased
electricity and heating by 20% by 2020, with 2005 as reference year.

We will triple our production of biofuels from our forests by 2020, with 2010
as reference year.

The production of wind power on SCA forest land will increase to 5 TWh by
2020.

We will achieve and maintain our target of zero fresh fiber-based material
from controversial sources*, including pulp.

We will preserve the biodiversity of our forests. A minimum of 5% of our
productive forest land will be set aside from forestry in our ecological
landscape plans and a further 5% will be set aside as part of our
consideration for nature in our managed forests.

We aim to achieve water sustainability and we will reduce our water
usage in water-stressed regions by 10% by 2015, with 2010 as reference
year.

All SCA pulp and paper mills will employ mechanical and biological water
treatment plants by 2015.
*Controversial sources are defined as:
– Illegally logged timber.
– Timber from forests with a high conservation value.
– Timber from areas where human rights or traditional rights of indigenous people are being violated .
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Climate and Energy
Nature Value Creation
Investment in a bio-fueled lime kiln at the Munksund liner
mill
Reduced fossil carbon dioxide emissions by 75% and cost by SEK
50m annually
ESAVE
Continuous improvement and 113 projects in 2014 resulted in a 3,2
% reduction in energy used (MWh/t)
Since 2010 over 700 projects have resulted in a 7,7% accumulated
reduction in energy used
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Forests as Carbon Absorbers
SCA is Europe’s largest private forest owner –
FSC and PEFC certified
Our forests have a net growth of about 1% annually
Our forests net absorb 2.6 Mtons of carbon dioxide
annually – more than is discharged from our entire
production
Well-managed forests contribute to solve the climate
change problem
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Sustainability as a Business Driver
Improved competitive edge
Reduced cost
Reduced risk level
Attract investors
Employer branding
Strengthen the brand
This is SCA
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Sustainability for Profitable Business
Economic Value Creation
Increased sustainability customer
requirements
We help customers achieve their
sustainability targets, examples
EU Green Public procurement
Systéme U
Empire State building
TENA Solutions
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The SCA Sustainability Effect
Our track record is impressive; past recognitions
Named one of the World’s Most Ethical companies by Ethisphere Institute, US
Included in the Dow Jones Sustainability Index
SCA was recognized by the WWF for leadership in transparency for disclosing its
ecological footprint in the WWF Environmental Paper Index 2013
Listed on the FTSE4Good global sustainability index since 2001
Included in the Climate Disclosure Leadership Index
Awarded for Best Sustainability Report by the sustainability publication Miljörapporten
and CSR experts
Signatory of the UN Global Compact
Member of World Business Council for Sustainable Development
SCA is a constituent of ECPI indices
SCA is included in the OMX GES Sustainability Nordic and OMX GES Sustainability
Sweden indexes
This is SCA
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Supply
This is SCA
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Climate & energy targets – where are we?

We will reduce CO2 emissions from fossil fuels and from purchased
electricity and heating by 20% by 2020, with 2005 as reference year.

We will triple our production of biofuels from our forests by 2020, with 2010
as reference year.

The production of wind power on SCA forest land will increase to 5 TWh by
2020.
Outcome 2013

At year-end 2013, CO2 emissions in relation to the production level had
declined by 11.8%, compared with the reference year of 2005.

In 2013, energy production from SCA’s forest-based biofuels was 909 GWh
(870 GWh in 2010).

Wind energy from SCA forest land totaled 0.75 TWh (0.4).
This is SCA
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How do we make it happen?
Global Hygiene Supply organization
Global Hygiene
Supply
Support
Functions
Technology and
Planning Tissue
Technology and
Planning
Personal Care
Business units
Sourcing
Manufacturing
Excellence
Logistics
What makes the difference?
• CAPEX and OPEX in the same organization
• Global sourcing supporting technology upgrade activities
• Manufacturing Excellence supporting all the operations globally
• Business units having a dotted line to GHS
• Sustainability an integral part of all the functions
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How do we make it happen?
Practical examples
2014: New PM started in Russia
• Energy-efficient design together
with Technology function
• Best Practices in place as of day 1
Standardization:
• Technology Best Practices are driven
globally to leverage the economics of
scale both in operational Knowledge
and Sourcing buying power
Process optimization:
• Promote technical mastery of our site experts
• Ensure we optimize what we can influence
(process parameters: °C, Δp, m3/min, %, g/kg…)
Global CO2-strategy to reach our goal
• ESAVE program in place at all sites
• Biomass boilers Edet, Mannheim
Nokia (2016)
• High-efficiency investment strategy
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Keeping the momentum in Supply
Program
Since 2003, SCA’s ESAVE energy-efficiency program has contributed to energy savings and improved
efficiency in all operative business units. In 2010, SCA adopted a new target for ESAVE: to reduce energy
consumption per ton of product produced by 14% by 2020.
In 2014, 113 ESAVE projects were implemented, resulting in a 3.2% (1.8) reduction in energy used per ton of
product produced. This corresponded to a decrease of 810 000 MWh in energy consumption compared with
2013. The accumulated energy savings in the 2010–2014 period amounts to 7.7%.
ESAVE encompasses investments in energy-efficient technical solutions, the involvement of employees in
daily improvement activities and a general change in attitude toward the use of energy at SCA. Knowledge
sharing is leveraged across the company through trainings and network events and ESAVE is part of several
new, young engineers’ on-boarding program. A typical ESAVE project could involve reducing electricity
consumption by improving or replacing pumps, compressors, fans or lighting. Experiences are documented
and provide effective support for future improvement efforts.
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March 2, 2015
Thank you!
Any questions?
HMEx Training: esave
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