sca magazine shape 1 / 2008

8/7/2019 SCA magazine SHAPE 1 / 2008

1/36

Odor-free paper Is the web green? Prot hike for SCA

Forests

A MAgAzine froM sca on trends, MArkets And business n 1 2008

shape

investorsgo For

the green

mega-Shoppingin Shangha

rethinkingthe e-Food

package

meet ScaSSuper innovator

globalwarming

Cam

er

a:Col

desthotelC

ame

ra:Co

ldesthotel


2/36

Forests pa an important

roe in the cimate debate.

The can trap and store

carbon and thereb ower

carbon dioxide eves in

the atmosphere.

carbon

trees are extremely

eFFectiveFor trapping and storing

Contents N 1 2008

6


3/36

[1*2008]shape sCA*3

04 shape upRussian and Chinese retailers continue to grow,while Web publications can be a source of green-house gases. This and much more on the world

of SCA in this issues Shape Up.

06 shape coverMore trees and new-growth forests lower the levelsof carbon dioxide in the atmosphere. Read aboutforests and climate in Shape Cover.

16 trendsBig shopping centers attract Chinese consu-mers. E-commerce increases in Europe, andaging Baby Boomers in the U.S. are behind

growth in the incontinence care market.

20 proFileSolgun Drevik sees limitless possibilities when itcomes to developing feminine hygiene products.

24 technologyPaper used for packaging should be odorless.It takes chemical analysis and a panel of humannoses to root out unwanted smells.

26 sca insideThe worlds biggest corrugated box was made inDenmark and Torks strong environmental profileattracts big customers in the U.S.

30 cameraThe Ice Hotel in northern Sweden offers a magicallandscape of ice and snow.

34reportSCAs year-end report.

SCA Sape s bls Ss els. t s gc 80 f Sca Fs ps. r ly byss f Sca c cs. t s xss s f s ss ssly

fl s f s Sca. Y sbsb Sca S s f .s..

SCA Sapes z f Sca, ly s-ls lyss, b ls f jlss, ls -

s s Scas bsss l. Sape s blsf s y. t x ss s my 2008.

Addess Sca, c cs, Bx 7827, 103 97Skl Teepe+46 8 788 5100 Fax +46 8 678 8130

2030

16

26

Pise Bl ekss Maai edit a SlbEditia a Slb, Sca, g L, Ks p,alb Desi t Kbsl, alb PiteSls gfsk Qb aB, Kl

Ce pt Fs hllqs


4/36

4*sCA shape[1*2008]

shape up

A newspapers produce green-

house gases, whether the are in print

or onine. The average European

newspaper reader produces emis-

sions equa to 27 kiograms of CO2equivaent each ear. In Sweden,

the gure is sight ower, just

under 20, because we have a

higher share of hdropower.

That was the nding of a

stud at Swedens Roa

Institute of Technoog.

For paper, the majorit

of carbon dioxide

emissions comes from

its production, printing

and distribution. The

question is whether

emissions woud be

reduced if everone

started to read papers

onine. And the answer

is no in fact, the

coud even

increase.

The Internet with a its servers

consumes a great dea of eectricit. A

hafhour of reading onine ieds the

same amount of emissions as

producing a printed

newspaper.

A a plneto withStand Space traveLA tin paper airpane wi be thrown from the Internationa

Space Station in the hope that it wi oat down and and on

earth. Japanese researchers at the Universit of Toko have

panned this unusua experiment.

Together with members of the Japan Origami Airpane

Association, the have deveoped an airpane made of paper

that wi survive a trip in space.The aim is to have astronauts throw the foded pane from the

space station. The pane wi then foow a downward course and

and on earth, Japans Asahi newspaper reports. The tin paper

airpane, measuring 8 centimeters (3 inches) ong, wi be subject

to extreme speeds and enormous heat upon entr into the

atmosphere.

A prototpe made of heat-resistant paper has been tested in a

wind tunne with a wind veocit of Mach 7, equa to about 8,600

kiometers an hour.

how green is online news?&russianschineseam a aITS noT juST PrIvATE consump-tion that is growing sharply in Rus-sia and China. Domestic retailers arealso getting bigger. Two Russian andour Chinese companies are includedamong the worlds 250 largest retail-ers, according to Global Powers o Re-tailing 2008. Chinas largest retaileris the Bailian Group conglomerate,which owns department stores as wellas smaller grocery stores and home im-provement stores. The other Chinesecompanies on the list are Suning Appli-ance, Gome Electrical Appliances andDalian Dashang Group. The Russiancompany Euroset Group is the astest-growing retailer among all 250 compa-nies on the list. The second-largest Rus-

sian company is X5 Retail Group.


5/36

[1*2008]shape sCA*5

at wal-mart

WAl-MArTS nEW scorecard system

or grading packaging took eect on Feb-ruary 1. The system is intended as a toolin purchasing decisions and to determinewhether manuacturers have developedenvironmentally riendly packaging. Inpreparation or the project, the worldslargest retailer has been lling in score-cards since February 2007, and todaymore than 97,000 products rom 6,371suppliers have been registered.

Matt Kistler, vice president o pack-

aging and product innovations at Wal-Mart, thinks the scorecard system willhelp the company make decisions thatare good or business, customers andthe environment. The system calcu-lates a packaging score based on ninemain criteria, including greenhouse gasemissions and the proportions betweenproduct and packaging.

trACing thelIFE CyClE OFpackaging

What impact do pastic bags have on

the environment? Do beverage bottes

poute the water, and and air? How

man natura resources are needed

to produce the cardboard for a box of

crackers? Anazing how a package

impacts the environment is a demand-

ing task even for experts in the ed.

The SwedishStandards Institute isnow eading a European project aimed

at making it easier to understand the

environmenta impact of packaging

with the hep of ife cce anasis.

Greater awareness of the prob-

ems associated with cimate change

has prompted the reaization that its

important to see things as a whoe,

sas Anders linde, the head of the

project. The environmenta im-

pact of packaging doesnt disap-

pear just because consumers stop

buing pastic bags, for instance.

life cce anasis can be used to

measure the environmenta impactof packaging. The entire ow is ana-

zed, from the extraction of raw ma-

terias to processing, manufactur-

ing, transportation and distribution,

through product use, reuse and re-

ccing to the na waste disposa.

In a quest for common guide-

ines, experts from European coun-

tries , government agencies and or-

ganizations are working together in

the project to deveop uniform Eu-

ropean methods of measurement.

sca raises value oF ForestsSCA CArrIED ouT a review o itsorest valuations in the ourth quartero 2007 and determined that timberprices, ollowing increases over the pastyear, will remain at a higher level overthe long term than was previously pro-jected.

That led to an increase osek 5.173billion in the value osca's orest assetsbeore taxes. sca is the largest privateorest owner in Europe, with 2.6 millionhectares o orestland.

green

king

last yea, SCA pdced 80 mii tees, ad eay af f tem weepated i SCAs w fests. Te est wee sd t te fest wes.

80,000,000


6/36

6*sCA shape[1*2008]

shape cover

Facts:

Atreeuses1.38tonsofcarbon

dioxideinthegrowthprocessto

createonecubicmeterofwood.

Thereare760biiontons

ofcarbondioxideinthe

atmosphere,anincreaseof

30percentsincethebegin-

ningofthe20thcentury.

Thewordsforestsstore

atotaof1,150biiontons

ofcarbon.Tobuidupthis

storeofcarbon,thewords

forestshaveabsorbed4,217

biiontonsofcarbondioxide,

andifthesetreeswereto

bebowndownorburnup,

thesameamountofcarbon

dioxidewoudbereeased.


7/36

[1*2008]shape sCA*7

ThE lInk bETWEEn the number otrees on earth and global warming isboth simple and complicated. Simplebecause its based on a phenomenon thatmost people are amiliar with rom biol-

ogy class: photosynthesis. Trees and oth-er green plants that draw energy romthe sun absorb carbon dioxide whenthey grow.

What makes it complicated is that thelinks in the ecosystem are incredibly in-tricate and complex, making them di-cult to measure and predict. In the bio-logical ecosystem, carbon in the ormo a gas known as carbon dioxide isone o the basic ingredients in the recipethat makes orests, elds and meadowsgrow. By adding water, nutrients andlight energy, carbon is converted intosugar, the building block o growingtrees rom root to shoot.

During the process, the tree releasesoxygen, the reason why the great rainor-ests are called the earths lungs. Whenthe tree dies and decays, the stored car-bon is broken down by microorganismsto return to the atmosphere, and then tobe absorbed over time by new trees andplants. In earths inancy, some energy-

rich plant parts ell out o the ecosystem,winding up underground. They werestored there or millions o years underthe pressure o movements in the earthscrust, nally becoming oil, coal and gas

which are known today as ossil uelsand play the role o villain in the dramao global warming.

During most o the earths history,these buried ossil uels lay dormant,untouched and outside the ecosystem.When dinosaurs ruled the day, whencavemen learned to make re usingsticks, and when Alexander conqueredthe world, a balance prevailed in theamount o carbon circulating in an un-broken cycle, with growth, decay andnew developing lie all linked.

It was only in the last ew centuries ashort breath in the earths chronology when people created modern industrialsociety that the balance in the ecosystemwas upset. The development and rapidtransormation that built our modernsocieties, that made people richer andlie more comortable and mobile, weredriven and are still driven largely bythose ossil uels.

As long as people were content

to burn branches and other energy-rich materials ound above ground, theecosystem cycled round and round at asteady pace. But when they started dig-ging up oil and coal rom the ground,

the internal balance was disturbed. Theun Intergovernmental Panel on ClimateChange estimates that 270 billion tonso carbon dioxide were released into theatmosphere between 1850 and 1998through the burning o ossil uels. Us-ing the energy-rich residue o plants thatrotted hundreds o millions o yearsago, humans have released more carboninto the ecosystem and gradually raisedthe temperature on earth.

IF ThE AnCIEnT TrEES and plantsthat made up todays coal and oil arecast in the role o villain in the currentclimate drama, more recent orests alsoplay an important role with their capaci-ty to bind enormous amounts o carbon.In all, the worlds orests are estimated tobind some 1.15 trillion tons o carbon.

More trees are good or the climatebecause they bind carbon that mightotherwise wind up in the atmosphere.I the amount o orest decrease thencarbon is released and ends up in theatmosphere as warming carbon diox-ide. Deorestation, as this is known, as-sumes the No. 2 spot among the causeso todays global warming.

When the orebears o modern manrst arrived in Europe 800,000 years

ago, between 80 and 90 percent othe land was covered by orests.Today roughly hal o this remains.

Unlike the combustion o oil, de-orestation has taken place on a

New and growing forests are one of the most effective

means to reduce carbon dioxide levels in the atmosphere.

Well-managed forests in the EU have been of greater

benet to the carbon balance in the atmosphere than all

the investments in alternative energy sources combined,according to a research report.

text: mattias andersson Photo: getty images

illustrAtion: leiF bjrnsson

orests


8/36

8*sCA shape[1*2008]

shape cover

small scale over a long period o time. Forthousands o years, people burned oreststo obtain cultivable land and choppeddown trees to make way or crops.

But this development has also ac-

celerated over the last ew centuries.The worlds population has increased600 percent since the beginning o the19th century, which means a dramaticincrease in the number o people whohave to be ed. At the same time, newtechnology has made it easier to quicklyclear large tracts o orest. The devasta-tion o the vast tropical rainorests hasgreatly exacerbated the imbalance in theecosystem and accounts or one-th ocarbon emissions into the atmosphere.

Among the countries worst afictedare Brazil, Malaysia, the DemocraticRepublic o Congo and, probably theworlds worst ravager o orests, Indo-nesia. Every hour, an area o Indonesianrainorest corresponding to 300 ootballelds disappears. According to Green-peace, the country has already choppeddown 72 percent o its primeval orests.The sizable contribution to carbon emis-sions rom the destruction o orests hasplaced Indonesia and Brazil at the top, a-

ter China and theus, in the World Banksleague o carbon emitters.Ironically, the destruction o orests

today is driven in part by the growingdemand or non-ossil and more en-vironmentally riendly uels. Palm oilrom the rainorest, which has becomeso attractive, can also become biodiesel.Both Brazil and Indonesia have signedon to a number o international agree-ments to stop the devastation. But whenan estimated 80 to 90 percent o all log-ging is illegal and carried out in remoteareas, it is dicult to stop this, despiteambitious commitments, although

there are now an increasing number ohopeul signs (see adjoining article).

For a long time, the debate about theworlds orests in general and the rain-orests in particular was about the enor-mous diversity o species threatened bylogging. But with the arrival o climatechange as an issue, one that has com-pletely dominated the environmentalscene, the ocus has shited, creating anew role or the worlds orests.

Already when the 2006 Stern reportset the tone or the atal climate change

that would aect us all, it was deter-mined that the dilemma could in largepart be resolved i the destruction o theorests were stopped.

At the uns noted conerence on cli-mate change in Bali, deorestation wasone o the main points on the agenda orthe rst time in international negotia-tions. By virtue o their size and capac-ity to bind enormous amounts o carbon,the rainorests have taken on the starringrole now that experts and politicianshave had their eyes opened to the impor-tance o orests in climate change.

But even i they are to succeed in theirgoal, its a question o halting rather thanreversing a trend. Untouched, tropicalorests emit as much carbon as they ab-sorb. But outside the tropical zone, thereare orests that not only can maintain azero-sum balance, but also create pluses

on the climate balance sheet.

Forests pa a crucia roe in the baance of carbon dioxide. Trees absorb an enormous amount

of carbon dioxide from the air and, with the hep of soar energ and photosnthesis, change

the carbon dioxide to oxgen and carbohdrates. Carbohdrates, which contain carbon, are the

foundation for the trees growth, and this is how carbons are stored in the growing forest.

t

xy

fffpp

.

shape cover


9/36

[1*2008]shape sCA*9

A research report led by the Finnishproessor Pekka Kauppi, a member onthe uns Intergovernmental Panel oClimate Change, suggests that orests inthe eu have been o greater benet to thecarbon balance in the atmosphere thanall the combined investments in alterna-tive energy sources such as solar, windand bioenergy.

The good news is that trees are ex-tremely eective or trapping and stor-ing carbon, Kauppi says. The evenbetter news is that Europes orests arethriving and growing and as a resultwill play an increasingly important rolein helping the un reach its own climatetargets.

In all, the net growth o orests since1990 has bound 126 million tons o car-bon dioxide a year. Latvia, Sweden, Lit-huania, Slovenia, Finland and Bulgariaare the countries whose orests provide

the greatest benets to the climate, ac-cording to the Finnish researcherscalculations. Belgium and Denmark,which have limited orests, are at thebottom o the list.

The climate issue has also giventhose involved in the orestry industrya new role in the debate. According toa number o experts in the eld, active,ecient orestry has the most benecialimpact on change. That means that thetotal amount o trees, or biomass, withthe capacity to bind carbon is increas-ing. The result is a carbon sink a de-crease in the total amount o carbon inthe atmosphere.

The more wood-based products areused, the more carbon is bound over vari-ous periods o time. Houses built o woodcan last or a hundred years or more. Butrecycled paper also holds carbon duringthe time it is in circulation.

lumber becomes forest and paper products that continue to hod stored carbon. Wooden houses, for exampe, bind carbon dioxide over

their ifetimes. And even after the house or paper decas, the tota amount of carbon in the atmosphere is not raised: The carbon was earier

removed from the atmosphere b growing trees. If the wood and paper remains are used as fue and repace oi. The positive effect for the

cimate is even greater.

climate

balancesheet

(Inbiionsoftonsofcarbon

dioxide)

Emissis:

cmbstffssl

fels6.3

defresttthe

trs1.6

Tta:7.9

Aspti:

oeslkes 2.3

iresebmss 2.3

ithetmshere 3.3

Tta:7.9

(Sreun:itergvermetlp

el

clmtechge,theSweshFres

t

istresasst)


10/36

10*sCA shape[1*2008]

In goba terms, forests cover amost

4 biion hectares, rough 30 percent

of the words and surface. According

to FAO statistics, tota forest and in the

word decreased 3 percent between

1990 and 2005, an average fa of

0.2 percent a ear.

The 10 countries that accounted for

the greatest decrease in forest and

between 2000 and 2005 were Brazi,

Indonesia, Sudan, Manmar (Burma),

Zambia, Tanzania, Nigeria, the Demo-

cratic Repubic of Congo, Zimbabwe

and Venezuea, which together ost an

average 8.2 miion hectares a ear.

The 10 countries with the greatest

net growth in the same period were

China, Spain, Vietnam, the US, Ita,

Chie, Cuba, Bugaria, France and

Portuga, with average growth of

5.1 miion hectares a ear.

The tota net forest and ost in the

word from 1990 to 2000 was an

average 8.9 miion hectares a ear.

Between 2000 and 2005, the de-

crease was 7.3 miion hectares a ear.

Finand and Sweden are the Europe-

an countries that have the most forest

and. Ireand and Israe have the east.

Forests expanding againThe worlds forests are losing an average of 20,000 hect-

ares a day, but the rate has slowed in the last few years.

After centuries of deforestation, many parts in the world

have reversed the trend and their forests are expanding.

text: mattias andersson

shape cover

AficaFs 635n * -4

AsiaFs 571

n * +1.0

Epe ic.te rssia Fedeati

Fs 1001n * +0.6

oceaiaFs 206

n * -0.35

St AmeicaFs 831

n * -4.3

nt adCeta Ameica

Fs 705n * -0.3

*Aa et aeae cae etwee 2000 ad 2005

A look AT AMAPo the worlds orestsshows that 10 countries account or morethan 80 percent o the worlds primarynatural orests.

The countries that ace the greatestchallenges in maintaining sustainable or-est management are also those with the

greatest poverty and domestic conficts,

says David Harcharik, deputy director-general o the uns Food and AgricultureOrganization (fao).

Thefao recently reported that the rateo deorestation has decreased since 100countries established national plans ororest management.

Facts about the

worlds ForestsCties wit te mst fests:Countr Miions of hectares:

1 rss 8092 Bzl 4783 c 3104 uS 3035 c 1976 asl 1647 c (d. r.) 1348 is 889 p 6910 i 64

S 28

the worlds Forests (i miis f ectaes)


11/36

Lassen Sie sich von Blasenschwchenicht ausbremsen

5Gr

enJetztin

Deutschland

01802 12 1220(0,06 /Gesprch)

sterreich

0810 300 111(0,02 /Min.)

Schweiz

0840 220 222(0,04 CHF/Min.)

Jede vierte Frau ber 35 hat Erfahrung mit Blasenschwche. Mit denverbesserten TENA Active Mini Einlagen bleiben Sie aktiv und mssensich in keiner Situation des Alltags einschrnken. Denn die neue wa-benfrmige, textile Oberflche bleibt noch lnger trocken und schtztzuverlssig vor Nsse und Geruch. Im Unterschied zu herkmmlichenSlipeinlagen sind TENA Active Minis speziell fr sehr leichte bis leichteBlasenschwche entwickelt. Erhltlich in fnf Gren.

Fordern Sie gleich Ihr kostenloses Musterpaket an.

Mo.-Fr. von 08-17 Uhr unter:

AnadforTENAActiveMiniinGermany,sayingDonotallowbladderweaknesstostopyou!


12/36


Old wooden houses arent just beautiful theyre also cli-

mate smart. Millions of tons of carbon are stored in woodenhouses around the world. When theyre nally torn down,

the stored energy can replace oil and other fossil fuels.

text: mattias andersson Photo: istockphoto

SCA is Europes argest private ownerof forests and owns 2.6 miion hectares

of forest and in northern Sweden. The

annua growth in these forests is amost

7.5 miion cubic meters. Rough 5.5

miion cubic meters of this is ogged.

The voume of iving, growing trees in

SCAs forests thus increases amost 2

miion cubic meters each ear, which

means that these forests bind 2.6

miion tons net of carbon dioxide a

ear. B comparison, a transportation

in Sweden emits a tota of about 20

miion tons of carbon dioxide.The main products in the Forest

Products business area are pubication

paper, pup and timber and soid-wood

products, but biofues are aso a

signicant and growing operation.

Because of the considerabe use of

biofues and the fact that the majorit of

the eectric energ we use comes from

hdro or nucear power, carbon dioxide

emissions are reative imited for

operations in Sweden, sas Bjrn

lngfet, communication director for

SCA Forest Products. Then if we asoconsider the absorption of carbon

dioxide in our growing forests, in net

terms were binding amost as much as

the emissions from a of SCAs 400

pants across the word.

Thats an estimate rather than an ex-

act gure, he hastens to add. Modern

industria operations are a compex

process where, for instance, transpor-

tation and the degree of reccing for

the various products come into pa.

Take rai transportation, for exampe.

Net growth in SCAs orests

shape cover

WooD IS A antastic material thatreplaces more energy-intensive alterna-tives, stores carbon during its lietime

and, when its reached its end, can beused as a source o energy instead oossil uels, says Bruce Lippke, a pro-essor at the University o Washingtonin the us.

He has devoted years to studying therole o wood in the construction sectorand compared dierent materials andtheir eects on the environment, includ-ing through carbon dioxide emissionsinto the atmosphere. Simply replacingthe steel rame o a building with wood

reduces emissions in the building pro-cess by 17 percent.

An even greater eect is achieved iyou replace insulation made o berglasswith materials made o wood-basedalternatives, Lippke says.

The rise in wood as a building mate-rial has been welcomed by companies inthe wood industry, but concrete manu-acturers respond by deending the in-sulation capacity, lie, price and sustain-ability o their own product.

Up till now, theres been ar too littleinvestment in research and developmentin the eld, which is something the cur-rent debate can hopeully change, Lip-pke says. The construction industry ispretty conservative, but there seems tobe growing interest.

He has many politicians and uture-

good For the climate

Future eco-friend

iving? Simp repacing

the stee frame of a

buiding with wood

reduces emissions in

the buiding process

b 17 percent.


13/36

[1*2008]shape sCA*13

Bjrn lngfet, communication director for

SCA Forest Products.

bIoFuElS AnD WooD pellets madetheir debut as early as the 1970s as a re-sult o the oil crisis, but they remainedundeveloped or decades.

However, when oil prices once againshot through the roo, these small bullet-shaped packages o energy, made

The quest today for sustainable energy sources has

created a desire for fuels that blend the old and the new.

The warming res of cavemen are once again blazing in

the homes of millions.

text: mattias andersson Photo: sca

minded investors on his side. Thecement industry alone accounts or5 percent o the emissions created by

humans, according to a report on theconstruction industry and the climaterom the Institutional Investors Groupon Climate Change.

Wood plays a critical role in the ghtagainst climate change, the eu Com-mission has determined. The Com-mission, together with several memberstates, is now trying to encourage thesmarter use o orests in the eu.

Depending on the size and construc-tion, a European single-amily dwelling

made o wood is estimated to save be-tween 5 and 15 tons o carbon dioxide iwood replaces other materials whereverpossible. I in other contexts the UnitedStates is usually the scapegoat in the de-bate on climate change, the country isa leader in the eld o climate-riendlyconstruction. O the single-amilydwellings built in America, 90 percentuse wooden rames, compared with10 percent in Europe.

Theres a tradition o building with

wood here, and somewhat dierenttechnologies than in Europe, Lippkesays. But some things are hard tochange. Weve tried to get people tostop building basements in their hous-es because that requires lots o con-crete, since wood isnt suitable giventhe moisture.

largely rom sawdust and other byprod-ucts rom the wood industry, got a sec-ond chance.

Their low price, both in nancial andenvironment terms, and their renewabil-ity as a resource made or an attractivecombination. The second argument was

Carbon dioxide emissions from rairoads

are determined b how the eectricit

that powers the engine is produced. In

Sweden, it is main carbon-dioxide-

free eectricit from hdro and nucear

power sources. In German, the eec-

tricit is arge suppied b coa.

SCA is aso working with renewabe

energ production in other paces be-

sides its own pants. The compan has

become invoved in the production of

wind energ in Sweden. In a, some

400 wind power pants with a tota

capacit of 2.8 TWh of eectrici-

t a ear are panned, an invest-

ment of SEK 16 biion on the part

of the energ compan Statkraft.

SCA is ooking at the other end of

the equation as we, where forest

growth functions as a carbon sink.

One exampe is the introduction of

the rapid growing tree species con-

torta pine, which grows rough 40

percent faster than Swedish varieties

have done in the same soi. Because

of the rapid growth of contorta pine,

some 2 miion tons of carbon diox-

ide are bound each ear. Thats twice

as much as the tota emissions from

pants and transportation in a of SCAs

forestr production operations.

Cm 2.0


14/36


shape cover

ThE nuMbEr oF unds taking climateconsiderations into account in their in-vestment decisions has increased sharply,

and companies have to answer a growingnumber o questions about their work toreduce carbon dioxide emissions.

sca was recently ranked secondon Ethical Investment Re-search Services ranking othe greenest companies andwinning a top rating on theWorld Wide Fund or Na-tures international sustain-ability list.

Pati Isass, SCAs

diect f eimeta

affais, w is te wi

iteest i te cimate

eected am iests?

The development has beenreally rapid. Many o the ma-jor unds with broad invest-ments have included the issue o climatechange as a criterion or their selection,and existing environmental unds haveocused more on the climate.

Wy ae iests iteested?

For some investors, it is o vital im-portance to understand how the value otheir investments is aected by actors

tied to changes in the climate. Peoplewant to clariy how companies are a-ected by political actions like legisla-tion or taxes, technological innova-

tions, changes in customerbehavior and changes in theweather. For sca, the priceo electricity and access towood raw materials are twoimportant actors that areaected by the climate.

hw ppa ae SCA

saes wit iests wit

a fcs sstaiaiity?

Very popular. Roughly10 percento the shares todayare owned by unds that takesustainability into accountin their investment policies.

About hal are investors that use the com-panys work with sustainability as anextra risk parameter. The rest are undswith a pure interest in simply investing inthe companies that are best in their indus-

try in their work with the environment.Is te et aspti tae it

acct?

Sometimes, but it should be givenmore attention given that the net growthin our orests in Europe is binding 2.6million tons o carbon a year, almost asmuch as the emissions rom all o our400 plants across the world. Today,theres no opportunity or sca to includethe annual net absorption taking placein our orests in the eus system or trad-ing in emission rights. But carbon sinksare included in the Kyoto Protocol asan important actor in ghting climatechange and may well grow in economicimportance in the uture.

D y ti tis iteest wi

ctie t w?

Yes, denitely. An interesting exampleo this is the Carbon Disclosure Projectinitiative, which represents the largestinternational survey o how major com-panies are managing the issue o climatechange. Investors involved in the projectmanage a total o more than $41 trilliono assets.

Peets are a renewabe source of energ inbaance with the amount ofcarbon in theatmosphere.

especially important in the us, which isperiodically subject to national anxietyover the countrys considerable depen-dence on Arab oil. In the us, the price ooil increased 151 percent between 1999and 2005, while the price o pellets rosea more modest 36 percent.

The general breakthrough came in2005, prompted by Hurricane Katrinaand record oil prices. Demand ar ex-ceeded supply.

We have to say no to 90 percent othe orders, says Steven J. Walker, a pel-let manuacturer who increased produc-tion 50 percent at the time. His compa-ny, New England Wood Pellet, has nowgrown even more and taken on exter-nal investors to manage the expansion.Today some 80 North American pellet

plants produce more than 1.1 milliontons o pellets each year.

Similarly, in the heavily orested coun-tries o Scandinavia, the use o pellets

has increased rapidly. The industry inSweden considers 2006 to be its break-

through year, with a 72 percent increasein sales in the rst six months.

Besides being a renewable source oenergy in balance with the amount o

carbon in the atmosphere, pellets are al-so the cleanest solid uel in terms o other

emissions, which is a result o low mois-ture and optimal combustion otencontrolled via a computer in the urnaceincluding regular home urnaces.

Patrik Isaksson, SCAs

director of environmenta

affairs.

20 percent growth

SCA BioNorr in Hrnsand, Sweden,

produces 175,000 tons of wood

peets a ear in two production

faciities. In the residentia seg-

ment that constitutes BioNorrsmain focus, saes rose 60 percent

b voume between 2005 and

2007. We estimate continued

growth in voume of about 20

percent over the coming ears

in private househods, mutipe-

fami dweings and sma-scae

industr, sas Stefan Rnnqvist,

president of SCA BioNorr.

Climate hot or smart investors


15/36

NEW PATTERNS.12 fresh looks from Libra.

SCL3702


16/36


Driven by the wealth explosion amongChinas growing middle class, developersall over China have built some o theworlds largest shopping malls.text: jan hkerberg Photo: getty images

IT IS groWIng late on a cold Wednes-day night in mid-January, but custom-ers are still focking to the Super BrandMall in Shanghai, a 10-story mall thathouses a long row o leading interna-

tional brands o

clothing, electron-ics, jewelry, toys,sports equipmentand leisure goods.Other attractionsinclude restau-rants, a multiplex

cinema, a healthcenter, a well-stocked supermarket in thebasement and an ice skating rink on theeighth foor.

The Super Brand Mall is a 240,000-

square-meter urban shopping complexand a Shanghai landmark, located nearthe Oriental Pearl TV Tower in the newlydeveloped Pudong area, clearly visiblerom the Bund on the other side o theHuangpu River. It was touted as Asiaslargest shopping mall when it was inaugu-rated in 2002, but today it is just one oseveral such establishments in China.

shoPPing in shAnghAi

iyy

pp


17/36


trend

Shanghai is Chinas largest retail mar-ket, and most people visiting the SuperBrand Mall belong to the swelling rankso middle-income earners in China.

In many ways its more o an en-tertainment complex than a shoppingmall, says Paul Terry, sales and mar-keting director osca Packaging Asia,who lives nearby.

There are 1.3 billion people in China,

but some 900 million o them are stillvery poor, earning less than 1,000 yuan(usd137) a month. However, among theremaining 300 to 400 million consum-ers there are more than 18,000 withmore than 100 million yuan (usd 13.7million) in wealth, 440,000 with 10 mil-lion, and the nations number o yuanmillionaires those with assets o at leastusd 137,000 now totals 43 million, or3.3 percent o the population.

Many o them have made their or-tunes in the real estate and the stockmarkets. China now has more than 100million stock investors, surpassing the

70 million mem-bers o the rul-ing CommunistParty.

Built by theThai developerthe Chia TaiGroup, the Su-per Brand Mall

project in Shanghai was delayed or sev-eral years by the Asian nancial crisis atthe end o the 1990s. It also had a slowstart ater it was ocially opened andmade many mistakes.

But this has not stopped other develop-ers all over China rom establishing newand much larger shopping malls, drivenby the wealth explosion among Chinasgrowing middle class. Today the Super

Brand Mall has been surpassed in size byseveral other Chinese megamalls.The most spectacular one is the South

China Mall in Dongguan, GuangdongProvince, the worlds largest shoppingmall. It includes windmills and themeparks as well as a replica o the Arc deTriomphe in Paris.

However, supply is probably greaterthan demand today. The average personin China is still used to the traditionalway o requenting small shops on theback streets.

The large malls located in the centralcore business districts o cities will sur-vive, but the ones operating in the ringeareas are in a dangerous situation, be-cause there is an insucient thresholdpopulation to support such malls, saysSteven Beesley, co-ounder and direc-tor o the Hong Kong-based Institute oShopping Centre Management, in aninterview on Eastern Connecticut StateUniversitys Web site.

Sppi ma Yea peed gss easae aea, sq m

S c mll (d, c) 2005 660,000

gl rss S mll (Bj, c) 2004 560,000

Sm mll f as (psy cy, pls) 2006 390,000

ws e mll (e, c) 1981 350,000

Sm mll (mly, pls) 1991 335,000

Bjy ts Sq (Kl L, mlys) 2005 320,000

Bj mll (Bj, c) 2005 320,000

Zj plz/ g mll (gz, c) 2005 280,000

Sm cy n es (Qz cy, pls) 1985 280,000

K f pss mll (pll, uSa) 1962 260,000

Source: Forbes/ Eastern Connecticut State Universit

less complexdisplay packaging

SCA Packaging Asia works

cose in China with eading

supermarket chains such as Tesco

from Britain, Wa-Mart from the

US, Carrefour from France and

Metro from German.

We can provide a ink from US

or European standards which we

transate to oca soutions, sasPau Terr, saes and marketing

director at SCA Packaging Asia

in Shanghai.

When goods are produced in

China, the manufacturers aso want

them to be packed oca. In West-

ern stores, the goods are norma-

deivered in pre-merchandised

dispa units on shippabe paets.

Whie in the supermarket there

shoud be a minimum of human in-

teraction in order to minimize abor

costs. The designs shoud ensure

maximum product oading, opti-

ma space utiization and quick and

eas assemb at the point of sae.

However, in China, where

abor costs are ower, the promo-

tiona dispas do not have to be

compex, Terr sas. Instead, the

retaiers focus main on ensuring

that the goods ook good on the

shef with use of in-store merchan-

dising teams.

SCA Packaging Asias turnover

was USD 230 miion in 2007.

f

px

the worlds largest shopping mallsAsia is me t eit f te wds 10 aest mas, six f wic wee it i te ast f yeas.


18/36


trend

The U.S. Baby Boomers start to turn 62 this year.This vast generation, raised on rock n roll and theCold War, will have an ever greater impact on the

incontinence market in the years to come.text marilyn posner Photo getty images

bAbY booMErS In AMErICA theterm generally reers to those born be-tween 1946 and 1964 tend to be morenancially stable than others and havemore disposable income. As their needor incontinence protection productsincreases, price becomes less important.They want good-quality products anddont mind paying or them.

More consumers are expected tomake the transition to higher-qualityproducts as they look or a brand thatoers the best levels o comort andperormance, says Virginia Lee, ananalyst with the market intelligencerm Euromonitor International. BabyBoomers especially will be looking orquality over price.

Stronger growth is also expected orlight incontinence products as technol-ogy continues to improve, she says.

Between 18 and 30 percent o peopleaged 65 or older suer rom inconti-nence, which is prevalent but not inevi-table among the elderly.

More women suer rom some typeo urinary incontinence, especiallystress incontinence. About one womanin our between the ages o 30 and 59has experienced the condition, accord-ing to the u.s. governments Agency orHealthcare Research and Quality.

Strong growth is expected to continueor scas global brand tena. The com-pany continually takes steps to upgradeits entire incontinence product line.

pumping up demand

Rocknroll-generation

targeting the buyer

Te taet adiece f icti-ece ptecti pdcts is ftet y tse w sffe fm tecditi t as tei caeies,w at te ey east ae ietia

i te ads ad pdctspcased, accdi t Daielaffety, SCA Maeti hmeCae Diect.

Tese caeies icde tpaid pfessia epes adfamiy caeies, w ae fmie-i eaties t a famiymeme w eps a few times awee wit daiy actiities sc asati, sppi ad ci.

bay bmes ae meaciay stae ad ess iey t it si mes, wic ae

t appeai t tem, laffetysays. As, csmes ad teemet ae i twadme exteded stays i te met miimize csts.

As te maet ws adcaes, SCA Pesa Cae wictie t cae, t y ite pdcts it ffes t as iw ad wee tse pdcts aeffeed.


19/36


trend

2004 2005 2006

ThE SuCCESS o the American com-pany eBay is clear evidence o how popu-lar online shopping has become. Britain,

Germany and France are the Europeancountries with the highest e-commercerevenues, and many eastern Europeancountries are gaining ground. TanguyPeers, eBay Belgiums ormer managingdirector, says this success is largely dueto customers eeling increasingly saewhen they shop online, in part becauseo secure payment systems like PayPal.

E-commerce is expected to grow ata ast pace in Europe, says Aad Ween-ing, general secretary o emota, the

European trade association represent-ing e-commerce and mail order.Clothes, books, home electronics,

cds and dvds are the goods that sellbest online. One prerequisite or e-commerce to grow rapidly in a coun-try is that most people have access to

When the auction site eBay celebrated its thirdanniversary in Belgium, it counted 2.5 millionunique visitors. E-commerce is celebratingtriumphs all across Europe.text johan rapp Photo: istockphoto

e-commerce needs

packagingBooks, CDs, DVDs and cothes

are what se most onine. For

these products, its enough to

have simpe boxes made of card-

board to withstand transporta-

tion, and cardboard packaging

was SCA Packagings rst sou-

tion for ong-distance trade. But

new goods keep popping up and

require other tpes of packag-

ing soutions. An exampe is

food bought over the Internet.

We work with coo packaging

made from ceuar pastic. Its

rea important to be abe to keep

meat and sh cod, sas Torben K.

Niesen, marketing manager at SCA

Packaging in Denmark.

So far, food products constitute

just a sma share of e-commerce

in Denmark, and even ess in Swe-

den.Niesen nonetheess thinks

that we soon see an increase in

food shopping onine as consumers

discover the advantages of having

food deivered right to their door.

ol scics i Epe

sc:ea2007,iy,aavc

Percentage of the tota popuation in Europe that has ordered goods or

services over the Internet for private use in the ast three ears.

70

Norway

Sweden

Denmark

Germany

TheN

etherlands

UK

Finland

Austria

Ireland

EUaverage

France

Belgium

Spain

Slovenia

Cze

chRepublic

Poland

Slovakia

Italy

Hungary

Greece

Romania

60

50

40

30

20

10

0

ve books is sold online. Most Swedish

e-commerce companies see higher salesover the next six months.

E-commerce will most likely contin-ue to develop aster than traditional retailtrade, says Jonas Arnberg, an analyst atthe Swedish Retail Institute, hui. Its anew industry with more and more peopledeveloping new niche concepts, attract-ing new customers.

Arnberg identies ood products asa potential growth market or onlinecommerce. The problem is nding good

packaging solutions that keep the oodresh over long journeys. Moreover, con-sumers are not ready to pay that muchmore or ood purchased online.

I think that well soon see a new groupo customers, people born in the 80s and90s who grew up with computers, Arn-berg says. For them, it is completely nat-ural to shop online, but so ar they donthave much purchasing power.

Press Enter and the product is on its wa.

Onine is winning new customers in Europe.

the Internet, preerably via broadbandwith ample bandwidth. In Sweden, e-commerce is growing steadily, thanks inpart to a well-developed broadband net-work. Books are the most popular prod-uct sold on the Internet here one out o


20/36


innowitho

proFil


21/36


ow ar can you really develop a eminine careproduct? Your imagination is the only limit,says Solgun Drevik, who has worked as aproduct developer or eminine care productsatsca or almost 22 years.

Product development means never get-ting completely satised, she says. Today, its really a

question o development and improvement in small steps.Weve already come so ar when it comes to the peror-mance o sanitary pads that we could reduce absorptioncapacity by a third and still satisy the needs o the averagewoman. On the other hand, that means weve been able toocus more on comort.

As a product developer, how do you know what di-rection to push development in? By listening to users, ocourse. And Solgun spends a lot o time in ocus groupsand other consumer orums to get a sense o the needs andopportunities o today and tomorrow.

Its a question o always being as close to the consumeras possible she says. And todays demanding customerwants everything, preerably all at the same time. It hasto be environmentally riendly, light, thin, sot, secure,discreet, comortable, inexpensive . . . in bold packagingthat stands out but is still discreet. Its impossible to haveeverything at once, o course, especially when these de-mands totally contradict one another!

As in most other areas, an important trend in emininecare products is the environment. Because pads and tamponsare not made rom recyclable ber or quality and hygiene re-asons, the ocus must be on other aspects. We have to takeinto consideration everything that can have an impact on

the environment. And the environment has an eect onthe entire industry. We look at the entire lie cycle o theproduct and do our share by optimizing material use andmaking sure customers have less garbage to throw away.

WhEn IT CoMES to communicating environmentalbenets, its an advantage that the main component con-

sists o orest-based raw materials in the orm o highlyabsorbent cellulose, Solgun says. Still, she thinks its im-portant to keep up to date on developments in the materi-als eld.

What do we do i one o our materials runs out? Youhave to ollow whats going on in the world and be awareo substitutes or your own product as well as the productcategory itsel.

Another important trend or eminine care is what Sol-gun calls the rills.

It isnt mainly about the product itsel, but about thepackaging and other attributes, she says. It should bepossible or you to see that youre buying a particularbrand, but o course it shouldnt be possible or people tosee that you actually use that product.

Following consumer trends also means studying chang-es in ashion. On a visit to the ashion air in Lyon, Solgunrecently noted with satisaction that at least hal the mod-els on the catwalk were using thong underwear.

Perhaps that came with a hint o nostalgia, because itwas thong underwear that paved the way or one o Sol-guns most successul innovations the Libresse Stringsanitary pad, which was launched in 1999 and is stillselling well.

What Solgun Drevik doesnt know about the emale anatomy, sanitarypads and panty liners is probably not worth knowing. More than 50patents show how well Solgun and her team at sca in Gothenburg,

Sweden, have succeeded in converting knowledge and creativity into

innovations that have become concrete products.text: jonas rehnberg Photo: svante rnberg

h

ator

tborders


22/36


For SolgunS TEAM in Feminine Hygiene, the prod-uct still takes center stage. By combining creativity withknowledge, theyve succeeded in continuously developingnew generations o eminine care products by using smartnew concepts. So smart that today Solgun can call herselSwedens most successul emale inventor, with some 50patents in her desk drawer.

One o her teams breakthroughs in recent years is anew sanitary pad with a patented combination o mate-rial and orm that makes the product three-dimensionalwhen used. For women, an optimal t adds to their senseo security.

Thats one product advantage that provides the basisor the slogan Secure Fit, which sca uses with a num-ber o eminine care products that have become major bestsellers and increased scas market share across the world.The new pad is marketed under dierent names, such asLibresse Invisible.

The innovation also attracted attention at the SeoulInternational Invention Fair, where Solgun, acing heavycompetition rom 288 inventors in 20 countries, tookhome a bronze medal.

Solgun emphasizes that the comort and security o asanitary pad are based on a combination o absorptivecapacity and t.

It doesnt matter i you have absorptive capacity thatcouldnt get any better, i the pad is sitting wrong.

Right now, Solgun is working on developing tamponsor the Australian market, where sca still develops andmanuactures these products. As or Solgun, its been 20years since she last worked with tampons.

Soguns team combines creativit with knowedge and continu-

ous deveops new generations of feminine care products.

proFile

The competition and consumer preerences look reallydierent today, she says. At the same time, sca is stillalone in covering the entire tampon with non-woven mate-rial, which produces a napless product. No other manu-acturer has been able to ollow in our ootsteps.

Although Solgun has worked with developing emininecare products or several decades, shes not araid o run-ning out o ideas.

Oh no, Im ull o ideas, but then its another thing

whether consumers want to pay or them or not.Judging by results rom a ocus group that Solgun has

been listening to, there are users who have their own ideasand are ready or more advanced eminine care products.A new generation o women, one with a new outlook ontechnology and communication, is here.

One young woman suggested that we develop a padthat sends a text message when its time to change it, shesays. Even though that would probably be too expensiveto carry out in practice, its a trigger or us. We ask our-selves whether theres any technology we can use to meetthis type o desire.

Solgun hersel has always been interested in technol-ogy and how things work. As a child when she rode on theGhost Train at Liseberg, the local amusement park, shedidnt even have time to be rightened.

I was too busy trying to gure out how the thingsworked.

Several members o her amily worked at the ball-bear-ing manuacturer skf in Gothenburg, where Solgun spentcountless hours in the lab during her high school years.Her interest in technology was sparked when she had to doher internship in the ninth grade and wound up with herbrother, who was working then with the second helicopterdivision at Sve, Gothenburgs airport. Her own sons, whoare now 14 and 16, show the same aptitude or inventingand experimenting, she says, but when they were youngerthey knew too little about the physiology o women to re-ally understand what their mother did at work.

When my youngest son was our and was in kindergar-ten, the children were supposed to tell what their parentsdid or a living. So he answered, Mom makes bandagesthat only old ladies can use.

Fortunately, Mom makes such good bandages that sheseven won medals or them. And ortunately or all the oldladies in the world, who can sleep soundly at night.

s

k

y


23/36

thisissolgun

nAME: SogunDrevik

TITlE:AssociatescientistatR&D

Feminine,SCAPersonaCare

FAMIlY:HusbandMarcusandtwo

sons,Hampus14andlinus16

AgE:41

FAvorITEWEbSIT

E:Bocket.se

FAvorITEDESTInATIon:Itay

MoTTo:Doit!

hobbY:Renovatingthehouseand

odthings

DrIvES:AbackSaab9-5

BioPower

SECrETvICE:Darkchocoate

MoSTrECEnTFIlM:Tattooed

Torso

bADAT:Gaugingmytimeand

sayingno

m

.


24/36


technology

TIghTEr EnvIronMEnTAl re-quirements mean that many paper millsare establishing closed systems in orderto recycle as much water as possible.At the same time, standards or prod-uct saety are high. Paper used in oodpackaging has to be as clean as possibleand not give o any smell or favor.They kind o contradict one another,says Ulrika Andreasson, a research en-gineer at sca r&d Centre. The mills

the search For

Food packaging that smells sou o ancid wont be

popula with customes. reseaches at SCA r&D Cente

in Sundsvall, Sweden, ae now snifng out those

undesiable odos. Thei tool consists of a human

smell panel combined with a chemical analysis.

text susanna lidstrm illustrAtion leiF bjrnsson

are always ne-tuning their productionprocesses to manage the balance be-tween all the requirements or saety,quality and environmental protection.

In the recycling o water, she stress-es, consideration must be given to thepossibility that recycling may changethe bacterial fora in the water. Closedsystems increase the risk o oxygen de-ciency, which can give rise to atty ac-ids like acetic acid and butyric acid. The

characteristic pungent or rancid smellso these compounds can penetrate thepaper that is produced.

Other smells stem rom the raw ma-terial itsel, be it new or recycled bers.Substances normally ound in woodcan orm a particular kind o aldehydewhen they oxidize, producing a ratherintense smell. This is also true o bond-ing agents used in the printing ink o re-cycled paper.

To help the mills in their quality ana-lysis, sca r&d Centre has put togethera smell panel that specializes in judgingodors rom paper and packaging. Fol-lowing customer complaints and in an-nual controls, samples are taken romsca Containerboards mills that manu-acture liner. This is the original materi-al or making cardboard, which is usedor such purposes as packaging oods.

Chemica anasis: The voatie substances

adhere to an absorbent, are separated in a gas

chromatograph and are identied in a mass

spectrometer.

The sampe is prepared about a da ahead of time. The paper is

cut and paced in an Erenmeer ask covered with auminum foi

and a stopper. The air in the ask becomes saturated with an

voatie substances. A human pane judges how the paper smes.

After a whiff from an Erenmeer ask containing the sampe,the character and intensit of the sme are determined.


25/36


odorless paper

why an electronic nose isnt used

The sample is prepared about a dayahead o time, Andreasson says. Wecut up the paper, put it in an Erlenmeyerfask covered with aluminum oil, put astopper on it and let it sit, so that the airin the fask becomes saturated with anyvolatile substances.

Ater that, the 10-person panel is

the smell: wood, ruity, chemical, acid-ic and other. Within each o these areadditional subgroups to urther speciy

the smell. Intensity is judged on a scaleo one to our.

The results o the smell test are checkedagainst a chemical analysis to try to de-termine which volatile substances pro-duce the smell. The paper is once againplaced in a sealed fask and let to sit orabout a day. Then an absorbent is usedto soak up the volatile substances thatthe paper secretes. The analysis is doneusing a gas chromatograph, which sepa-rates the components rom one another,

and a mass spectrometer, which detectswhat the substances are and in whatquantity they occur.

Weve been able to identiy a couple osubstances that produce a high intensity osmell o a specic nature, but many timesits hard to make an exact connection be-tween a smell and a chemical compound,Andreasson says. Our sense o smell is sosensitive that a substance that has a verylow concentration can smell really strong,while a substance with a high concentra-tion wont have any smell at all.

There are also a large number o chem-ical compounds to be assessed. As a rule,every analysis o paper involves some 30volatile substances. The aim is then todetermine which o them aect smell andtaste. Its a great challenge, Andreas-son says. And all the instruments haveto be tested and calibrated, even the hu-man ones. So the more jobs we get, themore we learn, and the more certain ourjudgments about smells will be.

called in. Each member takes a quickwhi rom the Erlenmeyer fask andtries to determine both the intensity andthe character o the smell. For everyoneto work using the same rame o ree-rence, the panel has agreed on what isknown as a smell wheel. There are sixmain groups based on the character o

To judge smes, eectronic sensors

hooked up to a gauge are some-

times aso used. The equipment is

gauged to react to certain sub-

stances thought to produce the

sme. Eectronic noses ike this can

work we for things ike pastics,

Urika Andreasson sas. There

snthetica produced and ouknow exact which substances are

incuded. But paper is, in fact,

non-homogeneous. Its composition

depends on what raw materias are

used recced bers or new

bers. And new bers can var in

quait as we. So its difcut to sa

what a norma vaue is, which is

what is needed to caibrate an

eectronic nose.

The resuts are checked

against one another to tr

o determine which sub-

tances produce the sme.

a

,

.


26/36

sca inside


SCA PACkAgIng in Denmarkhelped our students in Aarhus buildthe worlds biggest corrugated box.Four economics students rom Aar-hus Commercial School were as-

signed to carry out a project and getmaximum media coverage. They

contacted sca, and the resulting boxwas admitted into Guinness WorldRecords. The box, measuring 11.53meters long, 4.61 meters wide and2.31 meters high, appeared to be 35

percent bigger than the previous re-cord holder.

corrugated boxthe worlds biggest

Protective packgingpays dividendsTe it pdct i te itpacae: tats te fma tatbdyfm, SCAs twe ad patyie ad i bitai, empyed tde saes. Stati ast octe,te campai ffeed a attac-tie fee ti wit te pcase fbdyfm uta twes. Di tecampai saes eaced tei i-est ee i me ta f yeasad te me f wme yite ad iceased y 115 pecet.

sCA AsdAq For ThE ThIrD TIME in threeyears sca has been recognized bythe uk supermarket chain asda atits annual awards celebration. scawon the award or Excellence inQuality and was nominated or twoother awards.


27/36


At www.sca-t.cm te isitca tae a t f te ita TCity ad its wasms.

T City is a exciti i-teactie t tat is iy se-f f caifyi te wasmeqiemets f ay idi faciities maae, says Tcatey maeti diect

bet Eiss at SCA Tisse E-pe i gte, Swede.

o T City isad te it-a isit ds 25 idis i-cdi a te, aipt, spi-ta, etiemet me, depatmetste, aea ad tee estaats,ps a cise sip i te a.

Cic a idi ad a m-e f t spts appea, ep-

eseti typica was-ms f tat faciity.

Te T City aea, fexampe, as a sma ex-csie wasm, a smaaeae-se wasm,a sy pic aea was-m ad a was statif a itce catee.

We site isits cate expe tese was-ms, wee eac Tdispese ca e iewed i3D y si a side t tad tate te imae.

T City ca e accessedia te Pdcts ad Seicesta www.sca-t.cm.

wcm

AWArE ThAT packaging is a keypurchase driver or Libra consum-ers, scas Australasia eminine care

brand now has 12 resh new pack-aging looks on the shel.

The innovative Libra tampon

packaging comes with new pre-mium overwraps, eaturing brightand unky patterns.

An eye-catching campaign wasalso held across Australia and NewZealand to promote the new pack-aging designs, including advertise-ments in ashion magazines, postersin shopping malls and point-o-salepromotions on shelves.

The Libra advertisements ea-tured a range o baby Arican ani-mals, making a quirky link betweenthe new generation patterns andthe new Libra packaging designpatterns (see page 15).

tork city

a dozen new looks For libra


28/36


At te ed f 2007, SCA wasciticized f deciet ate

cseati i ccti witcetai fest feis. Te adit fSCAs cmpiace wit te FestStewadsip Ccis festystadads as eeaed stcm-is. Sice te a detaied actipam as ee deeped adaced t ese tat te mis-taes made wi t e epeated.

We ae cety taii a f eay 100 fei teams, saysb lyfet, ifmati maae

at SCA Fest Pdcts i Sdsa.Tey ae eceied taii pei-

sy, t tee may e a mef ew peats sice te, adae a we ae my empasiz-i w imptat it is tat a-te cseati istctis aecmpied wit i eey detai.

I additi t te st-tem ac-tis, SCA S, wic is esp-sie f SCAs fest maaemetad wd pcemet, is w-i t asse te qaity f te a-te cseati w i a me

-tem pespectie. Tis effticdes eeyti fm pai

ties, fw-p ad feedac ttaii ad cmpetece mattes.A ew adit made i eay

Feay swed tat te actisae sed ae te way tsi te eaie stcmis.Tese wi e fwed p aai iccti wit te ea FSCadit tis smme. Wee wwi fte t ese a ifmad i qaity ee f temcseati, says lyfet.

skogsbild

reinForcing conservation practices

SInCE 2004, the World Wide Fundor Nature has conducted assess-ments o companies within the paperindustry and their work with sustain-ability issues. sca was ranked top inthis years assessment o the sustain-ability reports o European papercompanies.

This really is a priority area orsca and one we have been work-ing on or many years, says PatrikIsaksson, director o environmentalaairs at sca. The report refectshow we work with environmentalissues and social responsibility andis also an important indicator o our

willingness to provide clarity andtransparency in this area.

One area where sca stood out mostclearly is reporting o environmentaldata by individual production unit.More than 100 o scas productionunits in some 40 countries submittheir environmental data.

Theres always room or improve-ment, Isaksson says, and the sustain-ability report is an important tool orkeeping these areas in constant o-cus. He emphasizes the importanceo independent organizations such aswwf making regular assessments.

sca ranked topin sustAinAbility

bitis cstat IestStateic vae Adiss asaed SCA as e f tewds 100 eadi cmpa-

ies wit ead t ei-meta ad scia isses adstateic pai. FieSwedis cmpaies weeicded i te ai, adSCA was te y cmpaywiti te Pape & FestPdcts catey.

sCA p 100cmpa vm


29/36


sca inside

Tt spts fas wi d SCApdcts ad we tey cmet t cee tei ca teams. SCATisse nt Ameica as ecmete excsie saitay pape sp-pie t te Ai Caada Cete i

te eat f Tt. Te cmpexis me t te Tt Mapeleafs cey team, te Ttrapts aseta team, te na-tia hcey leae ad te c-pate fces f Ai Caada. Tpdcts ad systems wi sppya its saitay pape eeds.

Tis fa, te Piadepia Eaesfta team cited eimetaaes as te eas f seecti

SCA as its cpatepate ad exc-sie saitay pape sppie.It switced a twe, tisse,api ad sap dispesisystems at lic Fiacia

Fied t T pdcts adsystems. Te Eaes ae asistaed T systems t-t tei cpate fces.

SCA Tisse nt Ameica, ead-qateed i Piadepia, waste st pape cmpay i Ame-ica t ea EclM cetica-ti f its pdcts ad pcessesad as w mes accadesf its sstaiae siess pac-

tices. T ad pape pd-cts i nt Ameica ae madefm 100 pecet ecyced -e, ad T dispesi sys-tems ae a st eptatif edci sae ad waste.

t a majn Amca cac

Big investment

in MunksundSCA IS InvESTIng sek 93 m in aplant to make window componentsat its sawmill in Munksund, outsidePite, Sweden. The new plant will pro-duce more than 30,000 cubic meters,or 5 million running meters, o win-dow components. The new plant willgo into operation in October 2008.

The new line will produce nger-jointed glulam window components

in a acility with the latest technol-ogy or scanning o raw materials,cutting, nger jointing o compo-nents and glulam processing.

The Munksund sawmill, oneo Swedens largest, will produce360,000 cubic meters o solid-woodpine products in 2008. Currently,the sawmill provides jobs or 120employees and contractors.


30/36


In jukkASjrvI, Sweden, outside thecity o Kiruna just north o the Arctic Cir-cle, a very cool attraction draws peoplerom aar year ater year: the Icehotel.

People come here to see with theirown eyes i the Icehotel really exists,says Camilla Bondareva, press ocer atthe acility.

Each year a team o snow builders, ar-chitects, designers and artists rom aroundthe world creates this village o snow andice. The rst hotel was completed in thewinter o 1992/93. This year, there are21 ice suites and a total o 90 rooms at theIcehotel, 60 o them ice rooms.

The ounder, Yngve Bergqvist, is calledthe director o the ice kingdom. This

is appropriate because over the years hisdomain has accommodated an ice moviehouse and ice theater. Something newis added each year, but the structuresalways include a hotel, a pillared hallthat serves as an exhibition hall, and achurch. On Christmas Day the church isdonated to the Church o Sweden, whichthen holds christenings, weddings andgeneral services there.

The history o the hotel in brie: YngveBergqvist, the ounding ather, was work-ing with a French artist who arranged anexhibit o ice sculptures in an igloo onthe Torne River in northern Sweden. Theshow attracted so many people that thehotel was ully booked, and one couple

was oered a place in the igloo. The over-night stay was a success, but it took a longtime or people to see the hotels poten-tial. Bergqvist had to wait or a buildingpermit. As time passed he kept building,creating all kinds o commotion. In 1994a partnership was ormed with Absolutvodka, and each year a bar is built thatserves everything rom the classic WolsPaw, a blend o lingonberry juice andvodka, to warm drinks in designer glass-es made o ice.

During a single season, some 30,000people visit the winter landscape, and26,000 stay overnight. Hotel revenuesor 2007 were sek 195 million (usd 30million).

camera

A magnicent hawa made of ice. The

ight from the transparent ice makes the

atmosphere magica, amost unrea. The

piared ha with crsta chandeier is

from 2005.

attracts visitorstext anita norrblom Photo kenneth paulsson + press photos

Cd c30*sCA shape[1*2008]


31/36


hkAn

hJort

BidtextHui pubisquam. Oterehe nterte

cem ta duciendam is auc facrevir in sii-

ciam. An actum imius cons simordi, que

veris pubicupero hemunt, ternium

One Wofs Paw, pease. The Absout Icebar in

Jukkasjrvi, 2008. The gasses made of ice are

produced in Jukkasjrvi and shipped to

customers the word over. Artists: AndersRnnund and Anders Eriksson.

BidtextHui pubisquam. Oterehe nterte

cem ta duciendam is auc facrevir in sii-

ciam. An actum imius cons simordi, que

veris pubicupero hemunt, ternium

A 20-centimeter-thick mattress on ice

with warm reindeer skins awaits ou.

The temperature in the room never dips

beow -8oC (18oF). This 2008 suite is

caed Operation Bade. Artists: Ben

Rousseau and Jai Drew.

ort The2008TangoSuite.ArtistslMarcosandleTrabbcreateacodancingoniceandanimposingreminiscentofatangoaccord


32/36


camera

The Icehote faade, enveoped in the tpi-

ca shimmering bue ight of winter (caed

kaamos in Sami). The shape of the roof

eading into the piared ha is specia

designed to minimize the risk of coapse

when the hote mets in the spring.

The Ice Church, 2007. Coupes who get

married in the church are encouraged to

abandon traditiona concepts of appare

and be more practica in their choice of

cothing. After a, the temperature is

beow freezing. Artists: Cind Berg,Marjoein Vonk, Jan Wiem van der

Schoot and Marinus Vroom.

epiaredhawithscuptures,2008.

TheartistislenaKristrm

in.TheexhibitiscaedMindthe Gap

andisanatmospheric

rneythatpusvisitorsthroughtheha

.Thegurativefaces

chhavetheirownformandmood.


33/36

Abedofnorthernights,SnowAuroraBoreais.Thesuitesareuniquefromoneyeartothenext.Thissuiteisa2007designandwascreatedbyKestutisandVytautasMusteikis.

the cold Facts:Buiding materia made of

snice is used in construction.

Snice, a compound of snow and

ice, is a compact, durabe mix that

gives the was and roof stabiit.

The piared ha, corridors and

rooms are made so that the roofwont coapse but wi instead

met and drip down the sides.

As a gauge to the voume of

water invoved, it is said that it

takes ve seconds for one Iceho-

te to ow past in the Torne River.

The Icehote is 5,000 square me-

ters in size and consists of 30,000

tons of snow and 4,000 tons of ice.

Buiding materia made of

snice is used in construction.

Snice, a compound of snow and

ice, is a compact, durabe mix that

gives the was and roof stabii-

t. The piared ha, corridors and

rooms are made so that the roof

wont coapse but wi instead

met and drip down the sides.

The construction process

begins in the midde of No-

vember, and the rst phase

is done on December 7. After

that, a new section is opened

each week up to Januar 5.

In 2002, yngve Bergqvist

was named Internationa Swede

of the year.

The compan Icehote i

Jukkasjrvi was invoved in thefounding of the Ice Hote

Qubec-Canada.

The ight from Stockhom to

Kiruna takes 1 ,5 hours. The same

trip takes 17 hours b train. Start-

ing this ear, there are direct

ights from london to Kiruna.

The Ice Throne. Artist: Arne Bergh.

The toiet was specia made for the

taping of an Austraian TV program,

The Kenn Show, that visited the

Icehote in 2008.

sca at the icehotel:

Each Icehote visitor comes into

contact with SCAs Tork products

when using the hotes restrooms.

Tork products have been in use

at the Icehote for four ears.



34/36


6,833

2006

8,2

37

2007

433

2005

6,585

2004

6,967

2003

8,07

8

2002

Record prot or scaEArnIngS For ThE FourTh quar-ter o 2007 were sek 2,342 million be-ore tax, up 16 percent rom the previousquarter. For the ull year 2007, protbeore tax increased sek 1,404 millionto sek 8,237 million.

The underlying reasons or scasgrowth in earnings are higher prices onthe one hand, and an improved prod-uct mix with a higher value content on

the other. Packaging had the greatestgains, with operating prot or the ullyear rising a robust 28 percent. The cor-

responding gures or earnings growthwere 16 percent or Forest Products andTissue and 6 percent or Personal Care.

Its been a good year and a ourthquarter with the highest operating pro-it in scas history, President and ceoJan Johansson said in conjunction withthe presentation o results on January30, 2008.

The increase in prots will benet

shareholders in the orm o a proposedincrease in the dividend to sek 4.40 pershare rom sek 4.

Johansson expects the market willremain avorable or most oscas seg-ments, although the market or solid-wood products is expected to sotenater a record year in 2007. He is alsooptimistic about the uture and notestwo strong trends that will have a posi-tive impact on sca demographics andthe rising number o older people in theWestern world, and greater disposable

income, especially in South Americaand Asia.

2007 Cae fm 2006

net saes 105,913 SEKm +4%

opeati pt 10,147 SEKm +19%

Pt efe tax 8,237 SEKm +21%

Eais pe sae (SEk) 10.16 SEK +31%

Ppsed diided,pe sae (SEk)

4.40 SEK +10%

2008 calendarApi 8al gl m

Apri 29

i Jy 1 - m 31

Ju 24

i Jy 1 - J 30

October 29

i Jy 1

Sb 30

report

10,000

8,000

6,000

4,000

2,000

0

analysts believe insca sharealyss s f

Sca ss (s f Fby 6)

over sek 8 billionproFit in 2007

personal care biggest shareS f 2007

2007 dividend rises 10%

p bf x, SeK

Tissue

17%

Forest

Products

28%

Persona

Care

29%

Packaging

26%

0: Sll

2: K

15: By


35/36

greenis morethan just a

color

at SCA

its thecornerstone

of everything

that we do

www.torkusa.com

We make products that are 100% recycled which

means we save water, energy and landfill space

Our innovative dispensing systems reduce usage

so there is less product waste

We have regional manufacturing facilities so

products travel less to their final destination

We use chlorine-free manufacturing processes

so there are no harmful dioxins released into

the air and water

To learn how we can help your business

be greener, contact us at www.torkusa.com.

napkins towel tissue wipers soap

S P E C I A L A D V E R T I S I N G S E C T I O N

P: Go Green. Make a Difference.


36/36

Packaging design. Are you working with the right people?

Whether youre moving, protecting or promoting a product, the UK and Ireland so you can be sure that we will deliver

sca magazine shape 1 / 2008

Documents