shape

A Magazine from sca on trends, markets and business Nº 1 2008

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Odor-free paper ★ Is the web green? ★ Profit hike for SCA
epahs Contents Nº 1 2008

Forests play an important

role in the climate debate.

6
They can trap and store
carbon and thereby lower
carbon dioxide levels in
the atmosphere.

trees are extremely

effective
for trapping and storing

carbon
 16 04 Shape up
Russian 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 issue’s Shape Up.

06 Shape cover
More trees and new-growth forests lower the levels
of carbon dioxide in the atmosphere. Read about
forests and climate in Shape Cover.

16 TrendS
Big shopping centers attract Chinese consu-
mers. E-commerce increases in Europe, and
aging Baby Boomers in the U.S. are behind
growth in the incontinence care market.

20 Profile
Solgun Drevik sees limitless possibilities when it
comes to developing feminine hygiene products.

24 Technology
Paper used for packaging should be odorless.
It takes chemical analysis and a panel of human
noses to root out unwanted smells.

20 26 SCA Inside
The world’s biggest corrugated box was made in
Denmark and Tork’s strong environmental profile

26 30
attracts big customers in the U.S.

30 Camera
The Ice Hotel in northern Sweden offers a magical
landscape of ice and snow.

34 Report
SCA’s year-end report.

SCA Shape is a magazine from SCA, primarily geared toward share­ Publisher Bodil Eriksson Managing editor Anna Selberg
holders and analysts, but also for journalists, opinion leaders and oth- Editorial Anna Selberg, SCA, and Göran Lind, Kristin Päeva,
ers interested in SCA’s business and development. Shape is published Appelberg Design Tone Knibestöl, Appelberg Printer
four times per year. The next issue is due in May 2008. Sörmlands Grafiska Quebecor AB, Katrineholm
Address SCA, Corporate Communications, Box 7827, 103 97 Cover photo Frans Hällqvist
Stockholm Telephone +46 8 788 5100 Fax +46 8 678 8130
SCA Shape is published in Swedish and English. The contents are printed on GraphoCote 80 gram from SCA Forest Products. Reproduction only by
permission of SCA Corporate Communications. The opinions expressed herein are those of the authors or persons interviewed and do not necessarily
reflect the views of the editors or SCA. You can subscribe to SCA Shape or read it as a pdf at www.sca.com.

[ 1 *2008] SHAPE SCA *3

SHAPE UP

A paper plane
to withstand space travel

A tiny paper airplane will be thrown from the International

Space Station in the hope that it will float down and land on
earth. Japanese researchers at the University of Tokyo have
planned this unusual experiment.
Together with members of the Japan Origami Airplane

&
Association, they have developed an airplane made of paper
that will survive a trip in space.
The aim is to have astronauts throw the folded plane from the
space station. The plane will then follow a downward course and
land on earth, Japan’s Asahi newspaper reports. The tiny paper
airplane, measuring 8 centimeters (3 inches) long, will be subject
to extreme speeds and enormous heat upon entry into the
atmosphere.
A prototype made of heat-resistant paper has been tested in a
wind tunnel with a wind velocity of Mach 7, equal to about 8,600
kilometers an hour.

HOW GREEN IS ONLINE NEWS? Russians

All newspapers produce green-
house gases, whether they are in print
or online. The average European
newspaper reader produces emis-
sions equal to 27 kilograms of CO2
equivalent each year. In Sweden,
the figure is slightly lower, just
under 20, because we have a
higher share of hydropower.
That was the finding of a
study at Sweden’s Royal
Institute of Technology.
For paper, the majority
of carbon dioxide
emissions comes from
its production, printing
and distribution. The
question is whether
emissions would be
reduced if everyone
started to read papers
online. And the answer
is no — in fact, they
could even
increase.
The Internet with all its servers
consumes a great deal of electricity. A
halfhour of reading online yields the
same amount of emissions as
producing a printed
newspaper.
Chinese
among retail giants
It’s not just private consump-
tion that is growing sharply in Rus-
sia and China. Domestic retailers are
also getting bigger. Two Russian and
four Chinese companies are included
among the world’s 250 largest retail-
ers, according to Global Powers of Re-
tailing 2008. China’s largest retailer
is the Bailian Group conglomerate,
which owns department stores as well
as smaller grocery stores and home im-
provement stores. The other Chinese
companies on the list are Suning Appli-
ance, Gome Electrical Appliances and
Dalian Dashang Group. The Russian
company Euroset Group is the fastest-
growing retailer among all 250 compa-
nies on the list. The second-largest Rus-
sian company is X5 Retail Group.

4*SCA SHAPE [ 1 *2008]


Tracing the
life cycle of
packaging
What impact do plastic bags have on
the environment? Do beverage bottles
pollute the water, land and air? How
many natural resources are needed
to produce the cardboard for a box of
crackers? Analyzing how a package
impacts the environment is a demand-
ing task even for experts in the field.
The Swedish Standards Institute is
now leading a European project aimed
at making it easier to understand the
environmental impact of packaging
with the help of life cycle analysis.
“Greater awareness of the prob-
lems associated with climate change
has prompted the realization that it’s
important to see things as a whole,”
says Anders Linde, the head of the
project. “The environmental im-
pact of packaging doesn’t disap-
pear just because consumers stop
buying plastic bags, for instance.”
Life cycle analysis can be used to
measure the environmental impact
of packaging. The entire flow is ana-
lyzed, from the extraction of raw ma-
terials to processing, manufactur-
ing, transportation and distribution,
through product use, reuse and re-
cycling to the final waste disposal.
In a quest for common guide-
lines, experts from European coun-
tries , government agencies and or-
ganizations are working together in
the project to develop uniform Eu-
ropean methods of measurement.
packaging
Green
at Wal-Mart
Wal-Mart’s new scorecard system
for grading packaging took effect on Feb-
ruary 1. The system is intended as a tool
in purchasing decisions and to determine
whether manufacturers have developed
environmentally friendly packaging. In
preparation for the project, the world’s
largest retailer has been filling in score-
cards since February 2007, and today
more than 97,000 products from 6,371
suppliers have been registered.
80,000,000
Last year, SCA produced 80 million trees, and nearly half of them were
planted in SCA’s own forests. The rest were sold to other forest owners.
SCA raises value of forests
Matt Kistler, vice president of pack-
aging and product innovations at Wal-
Mart, thinks the scorecard system will
help the company make decisions that
are “good for business, customers and
the environment.” The system calcu-
lates a packaging score based on nine
main criteria, including greenhouse gas
emissions and the proportions between
product and packaging.
SCA carried out a review of its
forest valuations in the fourth quarter
of 2007 and determined that timber
prices, following increases over the past
year, will remain at a higher level over
the long term than was previously pro-
jected.
That led to an increase of sek 5.173
billion in the value of sca's forest assets
before taxes. sca is the largest private
forest owner in Europe, with 2.6 million
hectares of forestland.
[ 1 *2008] SHAPE SCA *5
shape cover

f
Facts:
s of carbon
A tree uses 1.38 ton
e in the gro wt h process to
dioxid
me ter of wood.
create one cubic
ere are 76 0 bil lio n tons
Th
the
of carbon dioxide in
he re, an inc rea se of
atmosp
ce the be gin -
30 percent sin
of the 20 th ce ntu ry.
ning
store
The world ’s forests
al of 1,15 0 bil lio n tons
a tot
bu ild up this
of carbon. To
of ca rbo n, the wo rld ’s
store
sor be d 4,2 17
forests have ab
n ton s of ca rbo n dioxide,
billio
re to
and if these trees we
wn do wn or bu rn up,
be blo
nt of ca rbon
the same amou
e wo uld be rel ea sed.
dioxid

6*SCA SHAPE [ 1 *2008]

 ater
t
t w
u
ho
o
Climate in
with
forests
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
benefit 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 Åbjörnsson
The link between the number of
trees on earth and global warming is
both simple and complicated. Simple
because it’s based on a phenomenon that
most people are familiar with from biol-
ogy class: photosynthesis. Trees and oth-
er green plants that draw energy from
the sun absorb carbon dioxide when
they grow.
What makes it complicated is that the
links in the ecosystem are incredibly in-
tricate and complex, making them dif-
ficult to measure and predict. In the bio-
logical ecosystem, carbon – in the form
of a gas known as carbon dioxide – is
one of the basic ingredients in the recipe
that makes forests, fields and meadows
grow. By adding water, nutrients and
light energy, carbon is converted into
sugar, the building block of growing
trees from root to shoot.
During the process, the tree releases
oxygen, the reason why the great rainfor-
ests are called “the earth’s lungs.” When
the tree dies and decays, the stored car-
bon is broken down by microorganisms
to return to the atmosphere, and then to
be absorbed over time by new trees and
plants. In earth’s infancy, some energy-
rich plant parts fell out of the ecosystem,
winding up underground. They were
stored there for millions of years under
the pressure of movements in the earth’s
crust, finally becoming oil, coal and gas
– which are known today as fossil fuels
and play the role of villain in the drama
of global warming.
During most of the earth’s history,
these buried fossil fuels lay dormant,
untouched and outside the ecosystem.
When dinosaurs ruled the day, when
cavemen learned to make fire using
sticks, and when Alexander conquered
the world, a balance prevailed in the
amount of carbon circulating in an un-
broken cycle, with growth, decay and
new developing life all linked.
It was only in the last few centuries – a
short breath in the earth’s chronology –
when people created modern industrial
society that the balance in the ecosystem
was upset. The development and rapid
transformation that built our modern
societies, that made people richer and
life more comfortable and mobile, were
driven and are still driven largely by
those fossil fuels.
As long as people were content
to burn branches and other energy-
rich materials found above ground, the
ecosystem cycled round and round at a
steady pace. But when they started dig-
ging up oil and coal from the ground,
the internal balance was disturbed. The
un Intergovernmental Panel on Climate
Change estimates that 270 billion tons
of carbon dioxide were released into the
atmosphere between 1850 and 1998
through the burning of fossil fuels. Us-
ing the energy-rich residue of plants that
rotted hundreds of millions of years
ago, humans have released more carbon
into the ecosystem and gradually raised
the temperature on earth.
If the ancient trees and plants
that made up today’s coal and oil are
cast in the role of villain in the current
climate drama, more recent forests also
play an important role with their capaci-
ty to bind enormous amounts of carbon.
In all, the world’s forests are estimated to
bind some 1.15 trillion tons of carbon.
More trees are good for the climate
because they bind carbon that might
otherwise wind up in the atmosphere.
If the amount of forest decrease then
carbon is released and ends up in the
atmosphere as warming carbon diox-
ide. Deforestation, as this is known, as-
sumes the No. 2 spot among the causes
of today’s global warming.
When the forebears of modern man
first arrived in Europe 800,000 years
ago, between 80 and 90 per­cent of
the land was covered by forests.
Today roughly half of this remains.
Unlike the combustion of oil, de-
forestation has taken place on a
[ 1 *2008] SHAPE SCA *7
shape cover

small scale over a long period of time. For

thousands of years, people burned forests
to obtain cultivable land and chopped
down trees to make way for crops.
But this development has also ac-
celerated over the last few centuries.
The world’s population has increased
600 percent since the beginning of the
19th century, which means a dramatic
increase in the number of people who
have to be fed. At the same time, new
technology has made it easier to quickly
clear large tracts of forest. The devasta-
tion of the vast tropical rainforests has
greatly exacerbated the imbalance in the
ecosystem and accounts for one-fifth of
carbon emissions into the atmosphere.
Among the countries worst afflicted
are Brazil, Malaysia, the Democratic
Republic of Congo and, probably the
world’s worst ravager of forests, Indo-
nesia. Every hour, an area of Indonesian
rainforest corresponding to 300 football
fields disappears. According to Green-
peace, the country has already chopped
down 72 percent of its primeval forests.
The sizable contribution to carbon emis-
Forests play a crucial role in the balance of carbon dioxide. Trees absorb an enormous amount
sions from the destruction of forests has of carbon dioxide from the air and, with the help of solar energy and photosynthesis, change
placed Indonesia and Brazil at the top, af- the carbon dioxide to oxygen and carbohydrates. Carbohydrates, which contain carbon, are the
ter China and the us, in the World Bank’s foundation for the tree’s growth, and this is how carbons are stored in the growing forest.

league of carbon emitters.

Ironically, the destruction of forests
today is driven in part by the growing
demand for non-fossil and more en-
vironmentally friendly fuels. Palm oil
from the rainforest, which has become
so attractive, can also become biodiesel.
Both Brazil and Indonesia have signed
on to a number of international agree-
ments to stop the devastation. But when
an estimated 80 to 90 percent of all log-
ging is illegal and carried out in remote
areas, it is difficult to stop this, despite
ambitious commitments, although
at
The good news is th
trees are extremely
g
effective for trappin
and storing carbon.
there are now an increasing number of
hopeful signs (see adjoining article).
For a long time, the debate about the
world’s forests in general and the rain-
forests in particular was about the enor-
mous diversity of species threatened by
logging. But with the arrival of climate
change as an issue, one that has com-
pletely dominated the environmental
scene, the focus has shifted, creating a
new role for the world’s forests.
Already when the 2006 Stern report
set the tone for the fatal climate change
that would affect us all, it was deter-
mined that the dilemma could in large
part be resolved if the destruction of the
forests were stopped.
At the un’s noted conference on cli-
mate change in Bali, deforestation was
one of the main points on the agenda for
the first time in international negotia-
tions. By virtue of their size and capac-
ity to bind enormous amounts of carbon,
the rainforests have taken on the starring
role now that experts and politicians
have had their eyes opened to the impor-
tance of forests in climate change.
But even if they are to succeed in their
goal, it’s a question of halting rather than
reversing a trend. Untouched, tropical
forests emit as much carbon as they ab-
sorb. But outside the tropical zone, there
are forests that not only can maintain a
zero-sum balance, but also create pluses
on the climate balance sheet.

8*SCA SHAPE [ 1 *2008]

Lumber becomes forest and paper products that continue to hold stored carbon. Wooden houses, for example, bind carbon dioxide over
their lifetimes. And even after the house or paper decays, the total amount of carbon in the atmosphere is not raised: The carbon was earlier
removed from the atmosphere by growing trees. If the wood and paper remains are used as fuel and replace oil. The positive effect for the
climate is even greater.

A research report led by the Finnish the greatest benefits to the climate, ac- Climate
professor Pekka Kauppi, a member on cording to the Finnish researchers’ balance sheet
the un’s Intergovernmental Panel of calculations. Belgium and Denmark, carbon
(In billions of tons of
Climate Change, suggests that forests in which have limited forests, are at the dioxide)
the eu have been of greater benefit to the bottom of the list.
Emissions:
carbon balance in the atmosphere than The climate issue has also given
Combustion of fossil
all the combined investments in alterna- those involved in the forestry industry fuels
6.3
tive energy sources such as solar, wind a new role in the debate. According to Deforestation in the
1.6
and bioenergy. a number of experts in the field, active, tropics
7.9
“The good news is that trees are ex- efficient forestry has the most beneficial Total:
tremely effective for trapping and stor- impact on change. That means that the Absorption:
2.3
ing carbon,” Kauppi says. “The even total amount of trees, or biomass, with Oceans and lakes
2.3
better news is that Europe’s forests are the capacity to bind carbon is increas- Increased biomass
3.3
thriving and growing and as a result ing. The result is a carbon sink – a de- In the atmosphere
7.9
Total:
will play an increasingly important role crease in the total amount of carbon in
vernmental Panel on
in helping the un reach its own climate the atmosphere. (Source UN : Inte rgo
Swe dish Forest
targets.” The more wood-based products are Climate Change , the
)
Industries Association
In all, the net growth of forests since used, the more carbon is bound over vari-
1990 has bound 126 million tons of car- ous periods of time. Houses built of wood
bon dioxide a year. Latvia, Sweden, Lit- can last for a hundred years or more. But
huania, Slovenia, Finland and Bulgar­ia recycled paper also holds carbon during
are the countries whose forests provide the time it is in circulation.

[ 1 *2008] SHAPE SCA *9

shape cover

forests expanding again

The world’s forests are losing an average of 20,000 hect-
ares a day, but the rate has slowed in the last few years. Facts about the
After centuries of deforestation, many parts in the world world’s forests
Countries with the most forests:
have reversed the trend and their forests are expanding. Country Millions of hectares:
text: Mattias Andersson 1 Russia 809
2 Brazil 478
3 Canada 310
A look at a map of the world’s forests says David Harcharik, deputy director- 4 US 303
shows that 10 countries account for more general of the un’s Food and Agriculture 5 China 197
than 80 percent of the world’s primary Organization (fao). 6 Australia 164
natural forests. The fao recently reported that the rate 7 Congo (Democr. Rep.) 1 3 4
“The countries that face the greatest of deforestation has decreased since 100 8 Indonesia 88
challenges in maintaining sustainable for- countries established national plans for 9 Peru 69
1 0 India 64
est management are also those with the forest management. Sweden 28
greatest poverty and domestic conflicts,”

The world’s forests (in millions of hectares)

Europe incl.
the Russian Federation
Forest area 1001
Net change* +0.6

North and
Central America
Forest area 705 Asia
Net change* -0.3 Forest area 571
Net change* +1.0

South America Oceania

Forest area 831 Forest area 206
Africa
Net change* -4.3 Net change* -0.35 (Source: FAO)
Forest area 635
Net change* -4
*Annual net average change between 2000 and 2005

  In global terms, forests cover almost
4 billion hectares, roughly 30 percent
of the world’s land surface. According
to FAO statistics, total forest land in the
world decreased 3 percent between
1990 and 2005, an average fall of
0.2 percent a year.
  The 10 countries that accounted for
the greatest decrease in forest land
between 2000 and 2005 were Brazil,
Indonesia, Sudan, Myanmar (Burma),
Zambia, Tanzania, Nigeria, the Demo-
cratic Republic of Congo, Zimbabwe
and Venezuela, which together lost an
average 8.2 million hectares a year.
  The 10 countries with the greatest
net growth in the same period were
China, Spain, Vietnam, the US, Italy,
Chile, Cuba, Bulgaria, France and
Portugal, with average growth of
5.1 million hectares a year.
  The total net forest land lost in the
world from 1990 to 2000 was an
average 8.9 million hectares a year.
Between 2000 and 2005, the de-
crease was 7.3 million hectares a year.
  Finland and Sweden are the Europe-
an countries that have the most forest
land. Ireland and Israel have the least.

10*SCA SHAPE [ 1 *2008]

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 shape cover
GOOD FOR THE CLIMATE
Old wooden houses aren’t just beautiful – they’re also cli-
mate smart. Millions of tons of carbon are stored in wooden
houses around the world. When they’re finally torn down,
the stored energy can replace oil and other fossil fuels.
Text: Mattias Andersson PHOTO: Istockphoto
Net growth in SCA’s forests
SCA is Europe’s largest private owner
of forests and owns 2.6 million hectares
of forest land in northern Sweden. The
annual growth in these forests is almost
7.5 million cubic meters. Roughly 5.5
million cubic meters of this is logged.
The volume of living, growing trees in
SCA’s forests thus increases almost 2
million cubic meters each year, which
means that these forests bind 2.6
million tons net of carbon dioxide a
year. By comparison, all transportation
in Sweden emits a total of about 20
12*SCA SHAPE [ 1 *2008]
Future eco-friendly
living? Simply replacing
the steel frame of a
building with wood
reduces emissions in
the building process
by 17 percent.
million tons of carbon dioxide.
The main products in the Forest
Products business area are publication
paper, pulp and timber and solid-wood
products, but biofuels are also a
significant and growing operation.
“Because of the considerable use of
biofuels and the fact that the majority of
the electric energy we use comes from
hydro or nuclear power, carbon dioxide
emissions are relatively limited for
operations in Sweden,” says Björn
Lyngfelt, communication director for
“Wood is a fantastic material that
replaces more energy-intensive alterna-
tives, stores carbon during its lifetime
and, when it’s reached its end, can be
used as a source of energy instead of
fossil fuels,” says Bruce Lippke, a pro-
fessor at the University of Washington
in the us.
He has devoted years to studying the
role of wood in the construction sector
and compared different materials and
their effects on the environment, includ-
ing through carbon dioxide emissions
into the atmosphere. Simply replacing
the steel frame of a building with wood
reduces emissions in the building pro-
cess by 17 percent.
“An even greater effect is achieved if
you replace insulation made of fiberglass
with materials made of wood-based
alternatives,” Lippke says.
The rise in wood as a building mate-
rial has been welcomed by companies in
the wood industry, but concrete manu-
facturers respond by defending the in-
sulation capacity, life, price and sustain-
ability of their own product.
“Up till now, there’s been far too little
investment in research and development
in the field, which is something the cur-
rent debate can hopefully change,” Lip-
pke says. “The construction industry is
pretty conservative, but there seems to
be growing interest.”
He has many politicians and future-
SCA Forest Products. “Then if we also
consider the absorption of carbon
dioxide in our growing forests, in net
terms we’re binding almost as much as
the emissions from all of SCA’s 400
plants across the world.
“That’s an estimate rather than an ex-
act figure,” he hastens to add. “Modern
industrial operations are a complex
process where, for instance, transpor-
tation and the degree of recycling for
the various products come into play.”
Take rail transportation, for example.
minded investors on his side. “The
cement industry alone accounts for
5 percent of the emissions created by
humans,” according to a report on the
Campfire 2.0
construction industry and the climate
from the Institutional Investors Group
on Climate Change.
“Wood plays a critical role in the fight
against climate change,” the eu Com-
mission has determined. The Com-
mission, together with several member
states, is now trying to encourage the
smarter use of forests in the eu.
Depending on the size and construc-
tion, a European single-family dwelling
made of wood is estimated to save be-
tween 5 and 15 tons of carbon dioxide if
wood replaces other materials wherever
possible. If in other contexts the United
States is usually the scapegoat in the de-
bate on climate change, the country is The quest today for sustainable energy sources has
a leader in the field of climate-friendly created a desire for fuels that blend the old and the new.
construction. Of the single-family The warming fires of cavemen are once again blazing in
dwellings built in America, 90 percent the homes of millions.
use wooden frames, compared with
10 percent in Europe. Text: Mattias Andersson PHOTO: SCA
“There’s a tradition of building with
wood here, and somewhat different
technologies than in Europe,” Lippke Biofuels and wood pellets made largely from sawdust and other byprod-
says. “But some things are hard to their debut as early as the 1970s as a re- ucts from the wood industry, got a sec-
change. We’ve tried to get people to sult of the oil crisis, but they remained ond chance.
stop building basements in their hous- undeveloped for decades. Their low price, both in financial and
es because that requires lots of con- However, when oil prices once again environment terms, and their renewabil-
crete, since wood isn’t suitable given shot through the roof, these small bullet- ity as a resource made for an attractive
the moisture. ” shaped packages of energy, made combination. The second argument was

Carbon dioxide emissions from railroads of the energy company Statkraft.

Björn Lyngfelt, communication director for
SCA Forest Products.
are determined by how the electricity
that powers the engine is produced. In
Sweden, it is mainly carbon-dioxide-
free electricity from hydro and nuclear
power sources. In Germany, the elec-
tricity is largely supplied by coal.
SCA is also working with renewable
energy production in other places be-
sides its own plants. The company has
become involved in the production of
wind energy in Sweden. In all, some
400 wind power plants with a total
capacity of 2.8 TWh of electrici-
ty a year are planned, an invest-
ment of SEK 16 billion on the part
SCA is looking at the other end of
the equation as well, where forest
growth functions as a carbon sink.
One example is the introduction of
the rapidly growing tree species con-
torta pine, which grows roughly 40
percent faster than Swedish varieties
have done in the same soil. Because
of the rapid growth of contorta pine,
some 2 million tons of carbon diox-
ide are bound each year. That’s twice
as much as the total emissions from
plants and transportation in all of SCA’s
forestry production operations.

[ 1 *2008] SHAPE SCA *13

shape cover
especially important in the us, which is
periodically subject to national anxiety
over the country’s considerable depen-
dence on Arab oil. In the us, the price of
oil increased 151 percent between 1999
and 2005, while the price of pellets rose
a more modest 36 percent.
The general breakthrough came in
2005, prompted by Hurricane Katrina
and record oil prices. Demand far ex-
ceeded supply.
“We have to say no to 90 percent of
the orders,” says Steven J. Walker, a pel-
let manufacturer who increased produc-
tion 50 percent at the time. His compa-
ny, New England Wood Pellet, has now
grown even more and taken on exter-
nal investors to manage the expansion.
Today some 80 North American pellet
plants produce more than 1.1 million
tons of pellets each year.
Similarly, in the heavily forested coun-
tries of Scandinavia, the use of pellets
Climate hot for smart investors
The number of funds taking climate
considerations into account in their in-
vestment decisions has increased sharply,
and companies have to answer a growing
number of questions about their work to
reduce carbon dioxide emissions.
sca was recently ranked second
on Ethical Investment Re-
search Services’ ranking of
the greenest companies and
winning a top rating on the
World Wide Fund for Na-
ture’s international sustain-
ability list.
Patrik Isaksson, SCA’s
director of environmental
affairs, how is the growing
interest in the climate
Patrik Isaksson, SCA’s
reflected among investors? director of environmental 10 percentof the shares today
“The development has been affairs.
really rapid. Many of the ma-
jor funds with broad invest-
ments have included the issue of climate
change as a criterion for their selection,
and existing environmental funds have
focused more on the climate.”
Why are investors interested?
14*SCA SHAPE [ 1 *2008]
Pellets are a renewable source of energy in
balance with the amount of carbon in the
atmosphere.
has increased rapidly. The industry in
Sweden considers 2006 to be its break-
through year, with a 72 percent increase
in sales in the first six months.
Besides being a renewable source of
energy in balance with the amount of
“For some investors, it is of vital im-
portance to understand how the value of
their investments is affected by factors
tied to changes in the climate. People
want to clarify how companies are af-
fected by political actions like legisla-
tion or taxes, technological innova-
tions, changes in customer
behavior and changes in the
weather. For sca, the price
of electricity and access to
wood raw materials are two
important factors that are
affected by the climate.”
How popular are SCA
shares with investors with
a focus on sustainability?
“Very popular. Roughly
are owned by funds that take
sustainability into account
in their investment policies.
About half are investors that use the com-
pany’s work with sustainability as an
extra risk parameter. The rest are funds
with a pure interest in simply investing in
the companies that are best in their indus-
20 percent growth
SCA BioNorr in Härnösand, Sweden,
produces 175,000 tons of wood
pellets a year in two production
facilities. In the residential seg-
ment that constitutes BioNorr’s
main focus, sales rose 60 percent
by volume between 2005 and
2007. “We estimate continued
growth in volume of about 20
percent over the coming years
in private households, multiple-
family dwellings and small-scale
industry,” says Stefan Rönnqvist,
president of SCA BioNorr.
carbon in the atmosphere, pellets are al-
so the cleanest solid fuel in terms of other
emissions, which is a result of low mois-
ture and optimal combustion – often
controlled via a computer in the furnace,
including regular home furnaces.
try in their work with the environment.”
Is the net absorption taken into
account?
“Sometimes, but it should be given
more attention given that the net growth
in our forests in Europe is binding 2.6
million tons of carbon a year, almost as
much as the emissions from all of our
400 plants across the world. Today,
there’s no opportunity for sca to include
the annual net absorption taking place
in our forests in the eu’s system for trad-
ing in emission rights. But carbon sinks
are included in the Kyoto Protocol as
an important factor in fighting climate
change and may well grow in economic
importance in the future.”
Do you think this interest will
continue to grow?
“Yes, definitely. An interesting example
of this is the Carbon Disclosure Project
initiative, which represents the largest
international survey of how major com-
panies are managing the issue of climate
change. Investors involved in the project
manage a total of more than $41 trillion
of assets.”
 NEW PATTERNS.
12 fresh looks from Libra.
SCL3702

SHOPPING IN SHANGHAI
Driven by the wealth explosion among
China’s growing middle class, developers
all over China have built some of the
world’s largest shopping malls.
TEXT: Jan Hökerberg PHoto: GETTY IMAGES
16*SCA SHAPE [ 1 *2008]
It is growing late on a cold Wednes-
day night in mid-January, but custom-
ers are still flocking to the Super Brand
Mall in Shanghai, a 10-story mall that
houses a long row of leading interna-
tional brands of
clothing, electron-
ics, jewelry, toys,
sports equipment
and leisure goods.
Other attractions
include restau-
rants, a multiplex
cinema, a health
center, a well-stocked supermarket in the
basement and an ice skating rink on the
eighth floor.
The Super Brand Mall is a 240,000-
square-meter urban shopping complex
and a Shanghai landmark, located near
the Oriental Pearl TV Tower in the newly
developed Pudong area, clearly visible
from the Bund on the other side of the
Huangpu River. It was touted as Asia’s
largest shopping mall when it was inaugu-
rated in 2002, but today it is just one of
several such establishments in China.
In many ways it’s
an entertainment
than a shopping m

The world’s largest shopping malls
Asia is home to eight of the world’s 10 largest malls, six of which were built in the last four years.
Shopping mall
South China Mall (Dongguan, China)
Golden Resources Shopping Mall (Beijing, China)
SM Mall of Asia (Pasay City, Philippines)
West Edmonton Mall (Edmonton, Canada)
SM Megamall (Mandaluyong, Philippines)
Berjaya Times Square (Kuala Lumpur, Malaysia)
Beijing Mall (Beijing, China)
Zhengjia Plaza/ Grandview Mall (Guangzhou, China)
SM City North Edsa (Quezon City, Philippines)
King of Prussia Mall (Philadelphia, USA)
Source: Forbes/ Eastern Connecticut State University
Shanghai is China’s largest retail mar-
ket, and most people visiting the Super
Brand Mall belong to the swelling ranks
of middle-income earners in China.
“In many ways it’s more of an en-
tertainment complex than a shopping
mall,” says Paul Terry, sales and mar-
keting director of sca Packaging Asia,
who lives nearby.
There are 1.3 billion people in China,
but some 900 million of them are still
very poor, earning less than 1,000 yuan
(usd 137) a month. However, among the
remaining 300 to 400 million consum-
ers there are more than 18,000 with
more than 100 million yuan (usd 13.7
million) in wealth, 440,000 with 10 mil-
lion, and the nation’s number of yuan
millionaires – those with assets of at least
usd 137,000 – now totals 43 million, or
3.3 percent of the population.
Many of them have made their for-
tunes in the real estate and the stock
markets. China now has more than 100
million stock investors, surpassing the
70 million mem-
bers of the rul-
ing Communist
more of
Party.
Built by the
t complex Thai developer
the Chia Tai
mall
Group, the Su-
per Brand Mall
Year opened
2005
2004
2006
1981
1991
2005
2005
2005
1985
1962
project in Shanghai was delayed for sev-
eral years by the Asian financial crisis at
the end of the 1990s. It also had a slow
start after it was officially opened and
made many mistakes.
But this has not stopped other develop-
ers all over China from establishing new
and much larger shopping malls, driven
by the wealth explosion among China’s
growing middle class. Today the Super
Brand Mall has been surpassed in size by
several other Chinese megamalls.
The most spectacular one is the South
China Mall in Dongguan, Guangdong
Province, the world’s largest shopping
mall. It includes windmills and theme
parks as well as a replica of the Arc de
Triomphe in Paris.
However, supply is probably greater
than demand today. The average person
in China is still used to the traditional
way of frequenting small shops on the
back streets.
“The large malls located in the central
core business districts of cities will sur-
vive, but the ones operating in the fringe
areas are in a dangerous situation, be-
cause there is an insufficient threshold
population to support such malls,” says
Steven Beesley, co-founder and direc-
tor of the Hong Kong-based Institute of
Shopping Centre Management, in an
interview on Eastern Connecticut State
University’s Web site.
trend
Gross leasable area, sq m
660,000
560,000
390,000
350,000
335,000
320,000
320,000
280,000
280,000
260,000
Less complex
display packaging
SCA Packaging Asia works
closely in China with leading
supermarket chains such as Tesco
from Britain, Wal-Mart from the
US, Carrefour from France and
Metro from Germany.
“We can provide a link from US
or European standards which we
translate to local solutions,” says
Paul Terry, sales and marketing
director at SCA Packaging Asia
in Shanghai.
When goods are produced in
China, the manufacturers also want
them to be packed locally. In West-
ern stores, the goods are normal-
ly delivered in pre-merchandised
display units on shippable pallets.
While in the supermarket there
should be a minimum of human in-
teraction in order to minimize labor
costs. The designs should ensure
maximum product loading, opti-
mal space utilization and quick and
easy assembly at the point of sale.
“However, in China, where
labor costs are lower, the promo-
tional displays do not have to be
complex,” Terry says. “Instead, the
retailers focus mainly on ensuring
that the goods look good on the
shelf with use of in-store merchan-
dising teams.”
SCA Packaging Asia’s turnover
was USD 230 million in 2007.
[ 1 *2008] SHAPE SCA *17
trend
Rock’n’roll-generation
pumping up demand
The U.S. Baby Boomers start to turn 62 this year.
This vast generation, raised on rock ‘n’ roll and the
Cold 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 the
term generally refers to those born be-
tween 1946 and 1964 – tend to be more
financially stable than others and have
more disposable income. As their need
for incontinence protection products
increases, price becomes less important.
They want good-quality products and
don’t mind paying for them.
“More consumers are expected to
make the transition to higher-quality
products as they look for a brand that
offers the best levels of comfort and
performance,” says Virginia Lee, an
analyst with the market intelligence
firm Euromonitor International. “Baby
Boomers especially will be looking for
quality over price.
18*SCA SHAPE [ 1 *2008]
“Stronger growth is also expected for
light incontinence products as technol-
ogy continues to improve,” she says.
Between 18 and 30 percent of people
aged 65 or older suffer from inconti-
nence, which is prevalent but not inevi-
table among the elderly.
More women suffer from some type
of urinary incontinence, especially
stress incontinence. About one woman
in four between the ages of 30 and 59
has experienced the condition, accord-
ing to the u.s. government’s Agency for
Healthcare Research and Quality.
Strong growth is expected to continue
for sca’s global brand tena. The com-
pany continually takes steps to upgrade
its entire incontinence product line.
Targeting the buyer
The target audience for inconti-
nence protection products is often
not only those who suffer from the
condition but also their caregivers,
who at the very least are influential
in the brands and products
purchased, according to Daniel
Lafferty, SCA Marketing Home
Care Director.
These caregivers include both
paid professional helpers and
family caregivers, who range from
live-in relatives to a family
member who helps a few times a
week with daily activities such as
bathing, shopping and cooking.
“Baby Boomers are more
financially stable and less likely to
go into nursing homes, which are
not appealing to them,” Lafferty
says. “Also, consumers and the
government are looking toward
more extended stays in the home
to minimize costs.”
As the market grows and
changes, SCA Personal Care will
continue to change, not only in
the products it offers but also in
how and where those products are
offered.
 trend

Online shopping
clicks in Europe
When the auction site eBay celebrated its third five books is sold online. Most Swedish
e-commerce companies see higher sales
anniversary in Belgium, it counted 2.5 million over the next six months.
“E-commerce will most likely contin-
unique visitors. E-commerce is celebrating ue to develop faster than traditional retail
triumphs all across Europe. trade,” says Jonas Arnberg, an analyst at
the Swedish Retail Institute, hui. “It’s a
Text johan Rapp PHoto: Istockphoto new industry with more and more people
developing new niche concepts, attract-
ing new customers.”
The success of the American com- Arnberg identifies food products as
pany eBay is clear evidence of how popu- a potential growth market for online
lar online shopping has become. Britain, commerce. The problem is finding good
Germany and France are the European packaging solutions that keep the food
countries with the highest e-commerce fresh over long journeys. Moreover, con-
revenues, and many eastern European sumers are not ready to pay that much
countries are gaining ground. Tanguy more for food purchased online.
Peers, eBay Belgium’s former managing “I think that we’ll soon see a new group
director, says this success is largely due of customers, people born in the ’80s and
to customers feeling increasingly safe ’90s who grew up with computers,” Arn-
when they shop online, in part because berg says. “For them, it is completely nat-
of secure payment systems like PayPal. ural to shop online, but so far they don’t
“E-commerce is expected to grow at have much purchasing power.”
a fast pace in Europe,” says Aad Ween-
ing, general secretary of emota, the Press “Enter” and the product is on its way.
E-commerce needs
Online is winning new customers in Europe.
European trade association represent- packaging
ing e-commerce and mail order. the Internet, preferably via broadband
Clothes, books, home electronics, with ample bandwidth. In Sweden, e- Books, CDs, DVDs and clothes
are what sell most online. For
cds and dvds are the goods that sell commerce is growing steadily, thanks in
these products, it’s enough to
best online. One prerequisite for e- part to a well-developed broadband net- have simple boxes made of card-
commerce to grow rapidly in a coun- work. Books are the most popular prod- board to withstand transporta-
try is that most people have access to uct sold on the Internet here – one out of tion, and cardboard packaging
was SCA Packaging’s first solu-
Percentage of the total population in Europe that has ordered goods or tion for long-distance trade. But
Source: Eurostat 2007, Industry, trade and services

services over the Internet for private use in the last three years. new goods keep popping up and
70 require other types of packag-
2004 2005 2006 ing solutions. An example is
60 food bought over the Internet.
“We work with cool packaging
50 made from cellular plastic. It’s
really important to be able to keep
40 meat and fish cold,” says Torben K.
Nielsen, marketing manager at SCA
30 Packaging in Denmark.
So far, food products constitute
20 just a small share of e-commerce
in Denmark, and even less in Swe-
10
den.Nielsen nonetheless thinks
that we’ll soon see an increase in
0
food shopping online as consumers
Slovakia
UK

France

Spain

Slovenia

Czech Republic

Poland

Italy

Hungary

Greece

Romania
Norway

Sweden

Denmark

Germany

The Netherlands

Finland

Austria

Ireland

Belgium
EU average

discover the advantages of having

food delivered right to their door.

[ 1 *2008] SHAPE SCA *19

profil

nin
Iw o v
thou

20*SCA SHAPE [ 1 *2008]

vat or
rders
ut bo
What Solgun Drevik doesn’t know about the female anatomy, sanitary
pads and panty liners is probably not worth knowing. More than 50
patents show how well Solgun and her team at sca in Gothenburg,
Sweden, have succeeded in converting knowledge and creativity into

h
innovations that have become concrete products.
Text: Jonas Rehnberg PHoto: Svante Örnberg

ow far can you really develop a feminine care
product? Your imagination is the only limit,
says Solgun Drevik, who has worked as a
product developer for feminine care products
at sca for almost 22 years.
“Product development means never get-
ting completely satisfied,” she says. “Today, it’s really a
question of development and improvement in small steps.
We’ve already come so far when it comes to the perfor-
mance of sanitary pads that we could reduce absorption
capacity by a third and still satisfy the needs of the average
woman. On the other hand, that means we’ve been able to
focus more on comfort.”
As a product developer, how do you know what di-
rection to push development in? By listening to users, of
course. And Solgun spends a lot of time in focus groups
and other consumer forums to get a sense of the needs and
opportunities of today and tomorrow.
“It’s a question of always being as close to the consumer
as possible” she says. “And today’s demanding customer
wants everything, preferably all at the same time. It has
to be environmentally friendly, light, thin, soft, secure,
discreet, comfortable, inexpensive . . . in bold packaging
that stands out but is still discreet. It’s impossible to have
everything at once, of course, especially when these de-
mands totally contradict one another!”
As in most other areas, an important trend in feminine
care products is the environment. Because pads and tampons
are not made from recyclable fiber for quality and hygiene re-
asons, the focus must be on other aspects. “We have to take
into consideration everything that can have an impact on
the environment. And the environment has an effect on
the entire industry. We look at the entire life cycle of the
product and do our share by optimizing material use and
making sure customers have less garbage to throw away.”
“When it comes to communicating environmental
benefits, it’s an advantage that the main component con-
sists of forest-based raw materials in the form of highly
absorbent cellulose,” Solgun says. Still, she thinks it’s im-
portant to keep up to date on developments in the materi-
als field.
“What do we do if one of our materials runs out? You
have to follow what’s going on in the world and be aware
of substitutes for your own product as well as the product
category itself.”
Another important trend for feminine care is what Sol-
gun calls “the frills.”
“It isn’t mainly about the product itself, but about the
packaging and other attributes,” she says. “It should be
possible for you to see that you’re buying a particular
brand, but of course it shouldn’t be possible for people to
see that you actually use that product.”
Following consumer trends also means studying chang-
es in fashion. On a visit to the fashion fair in Lyon, Solgun
recently noted with satisfaction that at least half the mod-
els on the catwalk were using thong underwear.
Perhaps that came with a hint of nostalgia, because it
was thong underwear that paved the way for one of Sol-
gun’s most successful innovations – the Libresse String
sanitary pad, which was launched in 1999 and is still
selling well.

[ 1 *2008] SHAPE SCA *21

profile
Solgun’s team combines creativity with knowledge and continu-
ously develops new generations of feminine care products.
For Solgun’s team in Feminine Hygiene, the prod-
uct still takes center stage. By combining creativity with
knowledge, they’ve succeeded in continuously developing
new generations of feminine care products by using smart
new concepts. So smart that today Solgun can call herself
Sweden’s most successful female inventor, with some 50
patents in her desk drawer.
One of her team’s breakthroughs in recent years is a
new sanitary pad with a patented combination of mate-
rial and form that makes the product three-dimensional
when used. For women, an optimal fit adds to their sense
of security.
That’s one product advantage that provides the basis
for the slogan “Secure Fit,” which sca uses with a num-
ber of feminine care products that have become major best
sellers and increased sca’s market share across the world.
The new pad is marketed under different names, such as
Libresse Invisible.
The innovation also attracted attention at the Seoul
International Invention Fair, where Solgun, facing heavy
competition from 288 inventors in 20 countries, took
home a bronze medal.
Solgun emphasizes that the comfort and security of a
sanitary pad are based on a combination of absorptive
capacity and fit.
“It doesn’t matter if you have absorptive capacity that
couldn’t get any better, if the pad is sitting wrong.”
Right now, Solgun is working on developing tampons
for the Australian market, where sca still develops and
manufactures these products. As for Solgun, it’s been 20
years since she last worked with tampons.
22*SCA SHAPE [ 1 *2008]
So he answered
makes bandag
only old ladies
“The competition and consumer preferences look really
different today,” she says. “At the same time, sca is still
alone in covering the entire tampon with non-woven mate-
rial, which produces a napless product. No other manu-
facturer has been able to follow in our footsteps.”
Although Solgun has worked with developing feminine
care products for several decades, she’s not afraid of run-
ning out of ideas.
“Oh no, I’m full of ideas, but then it’s another thing
whether consumers want to pay for them or not.”
Judging by results from a focus group that Solgun has
been listening to, there are users who have their own ideas
and are ready for more advanced feminine care products.
A new generation of women, one with a new outlook on
technology and communication, is here.
“One young woman suggested that we develop a pad
that sends a text message when it’s time to change it,” she
says. “Even though that would probably be too expensive
to carry out in practice, it’s a trigger for us. We ask our-
selves whether there’s any technology we can use to meet
this type of desire.”
Solgun herself has always been interested in technol-
ogy and how things work. As a child when she rode on the
Ghost Train at Liseberg, the local amusement park, she
didn’t even have time to be frightened.
“I was too busy trying to figure out how the things
worked.”
Several members of her family worked at the ball-bear-
ing manufacturer skf in Gothenburg, where Solgun spent
countless hours in the lab during her high school years.
Her interest in technology was sparked when she had to do
her internship in the ninth grade and wound up with her
brother, who was working then with the second helicopter
division at Säve, Gothenburg’s airport. Her own sons, who
are now 14 and 16, show the same aptitude for inventing
and experimenting, she says, but when they were younger
they knew too little about the physiology of women to re-
ally understand what their mother did at work.
“When my youngest son was four and was in kindergar-
ten, the children were supposed to tell what their parents
did for a living. So he answered, ‘Mom makes bandages
that only old ladies can use.’”
Fortunately, Mom makes such good bandages that she’s
even won medals for them. And fortunately for all the “old
ladies” in the world, who can sleep soundly at night.
 d, ‘Mom
ges that
s can use.’

This is Solgun
ik
Name: Solgun Drev
tist at R&D
Title: Associate scien
nal Care
Feminine, SCA Perso
rcus and two
Family: Husband Ma
us 14 an d Lin us 16
sons, Hamp
Age: 41
: Blocket.se
Favorite Web site
Favorite desti nation: Italy
Motto: Do it!
the house and
Hobby: Renovating
old things
9-5
Drives: A black Saab
BioPower
chocolate
Secret vice: Dark
nt fil m : Tattooed
Most rece
Torso
time – an d
Bad at: Gauging my
saying no
technology

The search for

The sample is prepared about a day ahead of time. The paper is

cut and placed in an Erlenmeyer flask covered with aluminum foil
and a stopper. The air in the flask becomes saturated with any
volatile substances. A human panel judges how the paper smells.
After a whiff from an Erlenmeyer flask containing the sample,
the character and intensity of the smell are determined.

Chemical analysis: The volatile substances

adhere to an absorbent, are separated in a gas
chromatograph and are identified in a mass
spectrometer.

Food packaging that smells sour or rancid won’t be characteristic pungent or rancid smells
popular with customers. Researchers at SCA R&D Centre of these compounds can penetrate the
paper that is produced.
in Sundsvall, Sweden, are now sniffing out those Other smells stem from the raw ma-
undesirable odors. Their tool consists of a human terial itself, be it new or recycled fibers.
smell panel combined with a chemical analysis. Substances normally found in wood
can form a particular kind of aldehyde
Text Susanna Lidström illustration LEIF ÅBJÖRNSSON
when they oxidize, producing a rather
intense smell. This is also true of bond-
ing agents used in the printing ink of re-
Tighter environmental re- are always fine-tuning their production cycled paper.
quirements mean that many paper mills processes to manage the balance be- To help the mills in their quality ana-
are establishing closed systems in order tween all the requirements for safety, lysis, sca r&d Centre has put together
to recycle as much water as possible. quality and environmental protection.” a smell panel that specializes in judging
At the same time, standards for prod- In the recycling of water, she stress- odors from paper and packaging. Fol­
uct safety are high. Paper used in food es, consideration must be given to the lowing customer complaints and in an-
packaging has to be as clean as possible possibility that recycling may change nual controls, samples are taken from
and not give off any smell or flavor. the bacterial flora in the water. Closed sca Containerboard’s mills that manu-
“They kind of contradict one another,” systems increase the risk of oxygen de- facture liner. This is the original materi-
says Ulrika Andreasson, a research en- ficiency, which can give rise to fatty ac- al for making cardboard, which is used
gineer at sca r&d Centre. “The mills ids like acetic acid and butyric acid. The for such purposes as packaging foods.

24*SCA SHAPE [ 1 *2008]

odorless paper
The results are checked
against one another to try
to determine which sub-
stances produce the smell.
Why an electronic nose isn’t used
To judge smells, electronic sensors
hooked up to a gauge are some-
times also used. The equipment is
gauged to react to certain sub-
stances thought to produce the
smell. Electronic noses like this can
work well for things like plastics,”
Ulrika Andreasson says. “They’re
synthetically produced and you
know exactly which substances are
“The sample is prepared about a day
ahead of time,” Andreasson says. “We
cut up the paper, put it in an Erlenmeyer
flask covered with aluminum foil, put a
stopper on it and let it sit, so that the air
in the flask becomes saturated with any
volatile substances.”
After that, the 10-person panel is
included. But paper is, in fact,
non-homogeneous. Its composition
depends on what raw materials are
used — recycled fibers or new
fibers. And new fibers can vary in
quality as well. So it’s difficult to say
what a normal value is, which is
what is needed to calibrate an
electronic nose.”
called in. Each member takes a quick
whiff from the Erlenmeyer flask and
tries to determine both the intensity and
the character of the smell. For everyone
to work using the same frame of refe-
rence, the panel has agreed on what is
known as a smell wheel. There are six
main groups based on the character of
All the instruments
have to be tested
and calibrated, even
the human ones.
the smell: wood, fruity, chemical, acid-
ic and other. Within each of these are
additional subgroups to further specify
the smell. Intensity is judged on a scale
of one to four.
The results of the smell test are checked
against a chemical analysis to try to de-
termine which volatile substances pro-
duce the smell. The paper is once again
placed in a sealed flask and left to sit for
about a day. Then an absorbent is used
to soak up the volatile substances that
the paper secretes. The analysis is done
using a gas chromatograph, which sepa-
rates the components from one another,
and a mass spectrometer, which detects
what the substances are and in what
quantity they occur.
“We’ve been able to identify a couple of
substances that produce a high intensity of
smell of a specific nature, but many times
it’s hard to make an exact connection be-
tween a smell and a chemical compound,”
Andreasson says. “Our sense of smell is so
sensitive that a substance that has a very
low concentration can smell really strong,
while a substance with a high concentra-
tion won’t have any smell at all.”
There are also a large number of chem-
ical compounds to be assessed. As a rule,
every analysis of paper involves some 30
volatile substances. The aim is then to
determine which of them affect smell and
taste. “It’s a great challenge,” Andreas-
son says. “And all the instruments have
to be tested and calibrated, even the hu-
man ones. So the more jobs we get, the
more we learn, and the more certain our
judgments about smells will be.”
[ 1 *2008] SHAPE SCA *25
 sca inside

Protective packging
pays dividends
The right product in the right
package: that’s the formula that
SCA wins ASDA
Bodyform, SCA’s towel and panty
liner brand in Britain, employed to
quality award
double sales. Starting last October, For the third time in three
the campaign offered an attrac- years sca has been recognized by
tive free tin with the purchase of the uk supermarket chain asda at
Bodyform Ultra towels. During the
its annual awards celebration. sca
campaign sales reached their high-
est level in more than four years won the award for “Excellence in
and the number of women buying Quality” and was nominated for two
the brand increased by 115 percent. other awards.

The world’s biggest

CORRUGATED BOX
SCA Packaging in Denmark
helped four students in Aarhus build
the world’s biggest corrugated box.
Four economics students from Aar-
hus Commercial School were as-
signed to carry out a project and get
maximum media coverage. They
contacted sca, and the resulting box
was admitted into Guinness World
Records. The box, measuring 11.53
meters long, 4.61 meters wide and
2.31 meters high, appeared to be 35
percent bigger than the previous re-
cord holder.

26*SCA SHAPE [ 1 *2008]

Welcome to
Tork City
At www.sca-tork.com the visitor
can take a tour of the virtual Tork
City and its washrooms.
“Tork City is an exciting in-
teractive tool that is highly use-
ful for clarifying the washroom
requirements of any building or
facilities manager,” says Tork
category marketing director
Bengt Eriksson at SCA Tissue Eu-
rope in Gothenburg, Sweden.
On Tork City island the virtu-
al visitor finds 25 buildings in-
cluding a hotel, airport, hospi-
tal, retirement home, department
store, arena and three restaurants,
plus a cruise ship in the harbor.
Click on a building and a num-
ber of “hot spots” appear, rep-
resenting typical wash-
rooms for that facility.
The Tork City arena, for
example, has a small ex-
clusive washroom, a small
average-use washroom,
a busy public area wash-
room and a wash station
for a kitchen or canteen.
Web site visitors can
then explore these wash-
rooms, where each Tork
dispenser can be viewed in
3D by using a slider to turn
and rotate the image.
Tork City can be accessed
via the Products and Services
tab on www.sca-tork.com.

A dozen new looks for Libra

Aware that packaging is a key
purchase driver for Libra consum-
ers, sca’s Australasia feminine care
brand now has 12 fresh new pack-
aging looks on the shelf.
The innovative Libra tampon
packaging comes with new pre-
mium overwraps, featuring bright
and funky patterns.
An eye-catching campaign was
also held across Australia and New
Zealand to promote the new pack-
aging designs, including advertise-
ments in fashion magazines, posters
in shopping malls and point-of-sale
promotions on shelves.
The Libra advertisements fea-
tured a range of baby African ani-
mals, making a quirky link between
the “new generation patterns” and
the new Libra packaging design
patterns (see page 15).

[ 1 *2008] SHAPE SCA *27

 SKOGSBILD
SCA in top 100
companies on
environment
British consultant Innovest
Strategic Value Advisors has
ranked SCA as one of the
world’s 100 leading compa-
nies with regard to environ-
mental and social issues and
strategic planning. Five
Swedish companies were
included in the ranking, and
SCA was the only company
within the Paper & Forest
Products category.
Reinforcing conservation practices
At the end of 2007, SCA was
criticized for deficient nature
conservation in conjunction with
certain forest fellings. The audit of
SCA’s compliance with the Forest
Stewardship Council’s forestry
standards also revealed shortcom-
ings. Since then a detailed action
program has been developed and
launched to ensure that the mis-
takes made will not be repeated.
“We are currently training all of
our nearly 100 felling teams,” says
Björn Lyngfelt, information manager
28*SCA SHAPE [ 1 *2008]
SCA ranked top
in sustainability
Since 2004, the World Wide Fund
for Nature has conducted assess-
ments of companies within the paper
industry and their work with sustain-
ability issues. sca was ranked top in
this year’s assessment of the sustain-
ability reports of European paper
companies.
“This really is a priority area for
sca and one we have been work-
ing on for many years,” says Patrik
Isaksson, director of environmental
affairs at sca. “The report reflects
how we work with environmental
issues and social responsibility and
is also an important indicator of our
at SCA Forest Products in Sundsvall.
“They have received training previ-
ously, but there may be a number
of new operators since then, and
above all we are firmly emphasiz-
ing how important it is that na-
ture conservation instructions are
complied with in every detail.”
In addition to the short-term ac-
tions, SCA Skog, which is respon-
sible for SCA’s forest management
and wood procurement, is work-
ing to assure the quality of the na-
ture conservation work in a more
willingness to provide clarity and
transparency in this area.”
One area where sca stood out most
clearly is reporting of environmental
data by individual production unit.
More than 100 of sca’s production
units in some 40 countries submit
their environmental data.
There’s always room for improve-
ment, Isaksson says, and the sustain-
ability report is an important tool for
keeping these areas in constant fo-
cus. He emphasizes the importance
of independent organizations such as
wwf making regular assessments.
long-term perspective. This effort
includes everything from planning
routines, follow-up and feedback to
training and competence matters.
A new audit made in early
February showed that the actions
have solved or are on the way to
solving the earlier shortcomings.
These will be followed up again in
conjunction with the regular FSC
audit this summer. “We’re now
working further to ensure a uniform
and high quality even for longterm
conservation,” says Lyngfelt.

Tork lands two major
North American contracts
Toronto sports fans will find SCA
products on hand when they come
out to cheer their local teams. SCA
Tissue North America has become
the exclusive sanitary paper sup-
plier to the Air Canada Centre in
the heart of Toronto. The complex
is home to the Toronto Maple
Leafs hockey team, the Toronto
Raptors basketball team, the Na-
tional Hockey League and the cor-
porate offices of Air Canada. Tork
products and systems will supply
all its sanitary paper needs.
This fall, the Philadelphia Eagles
football team cited environmental
values as the reason for selecting
sca inside
Big investment
in Munksund
SCA is investing sek 93 m in a
plant to make window components
at its sawmill in Munksund, outside
Piteå, Sweden. The new plant will pro-
duce more than 30,000 cubic meters,
or 5 million running meters, of win-
dow components. The new plant will
go into operation in October 2008.
The new line will produce finger-
jointed glulam window components
in a facility with the latest technol-
ogy for scanning of raw materials,
cutting, finger jointing of compo-
nents and glulam processing.
The Munksund sawmill, one
of Sweden’s largest, will produce
360,000 cubic meters of solid-wood
pine products in 2008. Currently,
the sawmill provides jobs for 120
employees and contractors.
SCA as its corporate
partner and exclu-
sive sanitary paper supplier.
It switched all towel, tissue,
napkin and soap dispensing
systems at Lincoln Financial
Field to Tork products and
systems. The Eagles have also
installed Tork systems through-
out their corporate offices.
SCA Tissue North America, head-
quartered in Philadelphia, was tices. Tork brand paper prod-
the first paper company in Amer- ucts in North America are made
ica to earn EcoLogoM certifica- from 100 percent recycled fi-
tion for its products and processes ber, and Tork dispensing sys-
and has won numerous accolades tems have a strong reputation
for its sustainable business prac- for reducing usage and waste.
[ 1 *2008] SHAPE SCA *29
camera
Cold com
attracts visitors
text Anita Norrblom photo KENNETH PAULSSON + press photos
In Jukkasjärvi, Sweden, outside the
city of Kiruna just north of the Arctic Cir-
cle, a very cool attraction draws people
from afar year after year: the Icehotel.
“People come here to see with their
own eyes if the Icehotel really exists,”
says Camilla Bondareva, press officer at
the facility.
Each year a team of snow builders, ar-
chitects, designers and artists from around
the world creates this village of snow and
ice. The first hotel was completed in the
winter of 1992/93. This year, there are
21 ice suites and a total of 90 rooms at the
Icehotel, 60 of them ice rooms.
The founder, Yngve Bergqvist, is called
“the director of the ice kingdom.” This
30*SCA SHAPE [ 1 *2008]
is appropriate because over the years his
domain has accommodated an ice movie
house and ice theater. Something new
is added each year, but the structures
always include a hotel, a pillared hall
that serves as an exhibition hall, and a
church. On Christmas Day the church is
donated to the Church of Sweden, which
then holds christenings, weddings and
general services there.
The history of the hotel in brief: Yngve
Bergqvist, the founding father, was work-
ing with a French artist who arranged an
exhibit of ice sculptures in an igloo on
the Torne River in northern Sweden. The
show attracted so many people that the
hotel was fully booked, and one couple
HÅKAN HJORT
A magnificent hallway made of ice. The
light from the transparent ice makes the
atmosphere magical, almost unreal. The
pillared hall with crystal chandelier is
from 2005.
was offered a place in the igloo. The over-
night stay was a success, but it took a long
time for people to see the hotel’s poten-
tial. Bergqvist had to wait for a building
permit. As time passed he kept building,
creating all kinds of commotion. In 1994
a partnership was formed with Absolut
vodka, and each year a bar is built that
serves everything from the classic Wolf’s
Paw, a blend of lingonberry juice and
vodka, to warm drinks in designer glass-
es made of ice.
During a single season, some 30,000
people visit the winter landscape, and
26,000 stay overnight. Hotel revenues
for 2007 were sek 195 million (usd 30
million).
 BildtextHui publisquam. Oterehe nterte A 20-centimeter-thick
BildtextHui publisquam.mattress
Otereheon ice
nterte
cem ta duciendam is auc facrevir in sili- withta
cem warm reindeerisskins
duciendam awaits you.
auc facrevir in sili-
ciam. An actum imius cons simordi, que The temperature
ciam. An actum imius in the room
cons never que
simordi, dips
veris publicupero hemunt, ternium veris
below publicupero
-8 oC (18 o F).hemunt, ternium
This 2008 suite is
called Operation Blade. Artists: Ben
Rousseau and Jai Drew.

mfort The 2008 Tango Sui

Marcos and Lelé Tra
te. Artists Laura
bb create a couple
dancing on ice and an
reminiscent of a tan
imposing bed
go accordion.

Håkan Hjort

One Wolf’s Paw, please. The Absolut Icebar in

Jukkasjärvi, 2008. The glasses made of ice are
produced in Jukkasjärvi and shipped to
customers the world over. Artists: Anders [ 1 *2008] SHAPE SCA *31
Rönnlund and Anders Eriksson.
 camera
The Icehotel façade, enveloped in the typi-
cal shimmering blue light of winter (called
“kaamos” in Sami). The shape of the roof
leading into the pillared hall is specially
designed to minimize the risk of collapse
when the hotel melts in the spring.

ström
The artist is Lena Kri
h sculptures, 2008.
The pillared hall wit Ga p’ and is an atm ospheric
called ‘Mind the
Kulin. The exhibit is l. The figurative faces
itors through the hal
journey that pulls vis od.
form and mo
each have their own

BIG BEN PRODUCTIONS

The Ice Church, 2007. Couples who get

married in the church are encouraged to
abandon traditional concepts of apparel
and be more practical in their choice of
clothing. After all, the temperature is
below freezing. Artists: Cindy Berg,
32*SCA SHAPE [ 1 *2008]
Marjolein Vonk, Jan Willem van der
Schoot and Marinus Vroom.
 SCA at the Icehotel: The cold facts:
Each Icehotel visitor comes into Building material made of
contact with SCA’s Tork products “snice” is used in construction.
when using the hotel’s restrooms. Snice, a compound of snow and
Tork products have been in use ice, is a compact, durable mix that
at the Icehotel for four years. gives the walls and roof stability.
The pillared hall, corridors and
rooms are made so that the roof
won’t collapse but will instead
melt and drip down the sides.
As a gauge to the volume of
water involved, it is said that it
takes five seconds for one Iceho-
tel to flow past in the Torne River.
A bed of northern ligh The Icehotel is 5,000 square me-
ts, Snow Aurora
Borealis. The suites ters in size and consists of 30,000
are unique from
one year to the next.
This suite is a 2007 tons of snow and 4,000 tons of ice.
design and was create
d by Kestutis and Building material made of
Vytautas Musteikis.
“snice” is used in construction.
Snice, a compound of snow and
ice, is a compact, durable mix that
gives the walls and roof stabili-
ty. The pillared hall, corridors and
rooms are made so that the roof
won’t collapse but will instead
melt and drip down the sides.
The construction process
begins in the middle of No-
vember, and the first phase
is done on December 7. After
that, a new section is opened
each week up to January 5.
In 2002, Yngve Bergqvist
was named International Swede
of the Year.
The company Icehotel i
Jukkasjärvi was involved in the
founding of the Ice Hotel
Québec-Canada.
The flight from Stockholm to
Kiruna takes 1 ,5 hours. The same
trip takes 17 hours by train. Start-
ing this year, there are direct
flights from London to Kiruna.

The Ice Throne. Artist: Arne Bergh.

The toilet was specially made for the
taping of an Australian TV program,
“The Kenny Show,” that visited the [ 1 *2008] SHAPE SCA *33
Icehotel in 2008.
RePORT

Record profit for sca

Earnings for the fourth quar-
ter of 2007 were sek 2,342 million be-
fore tax, up 16 percent from the previous
quarter. For the full year 2007, profit
before tax increased sek 1,404 million
to sek 8,237 million.
The underlying reasons for sca’s
growth in earnings are higher prices on
the one hand, and an improved prod-
uct mix with a higher value content on
the other. Packaging had the greatest
gains, with operating profit for the full
year rising a robust 28 percent. The cor-
responding figures for earnings growth
were 16 percent for Forest Products and
Tissue and 6 percent for Personal Care.
“It’s been a good year and a fourth
quarter with the highest operating prof-
it in sca’s history,” President and ceo
Jan Johansson said in conjunction with
the presentation of results on January
30, 2008.
The increase in profits will benefit
shareholders in the form of a proposed
increase in the dividend to sek 4.40 per
share from sek 4.
Johansson expects the market will
remain favorable for most of sca’s seg-
ments, although the market for solid-
wood products is expected to soften
after a record year in 2007. He is also
optimistic about the future and notes
two strong trends that will have a posi-
tive impact on sca – demographics and
the rising number of older people in the
Western world, and greater disposable
income, especially in South America
and Asia.

PERSONAL CARE – OVER SEK 8 BILLION ANALYsts believe in

BIGGEST SHARE profit in 2007 SCA share
Share of operating profit 2007 Profit before tax, SEKm Analysts’ recommendations for
SCA shares (as of February 6)
10,000

8,000
8,237

Personal 0: Sell
8,078

Forest Care
6,967

6,833

Products 29%
6,585

6,000
28%

4,000
2: Keep
Packaging Tissue
17% 2,000
26%
433

0
15: Buy
2
03

5
06

07
0

0
0

20
20

20

20

20
20

2007 DIVIDEND RISES 10% 2008 calendar

April 8
2007 Change from 2006 Annual General Meeting
Net sales 105,913 SEKm +4% April 29
Interim report January 1 - March 31
Operating profit 10,147 SEKm +19%
July 24
Profit before tax 8,237 SEKm +21% Interim report January 1 - June 30
Earnings per share (SEK) 10.16 SEK +31% October 29
Interim report January 1 –
Proposed dividend, 4.40 SEK +10%
September 30
per share (SEK)

34*SCA SHAPE [ 1 *2008]

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.

www.torkusa.com

at SCA
green is more
than just a
color
it’s the
cornerstone
of everything
that we do
• 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

 Packaging design. Are you working with the right people?

Whether you’re moving, protecting or promoting a product,
it will be in safe hands with SCA. As Europe’s leading
provider of tailor-made packaging solutions, our talented
design team uses the very latest software and testing
facilities. We also have over 40 manufacturing sites across
the UK and Ireland so you can be sure that we will deliver
the ideal solution on time, every time. So, whatever your
packaging requirements, SCA has the answer. To find out
how our packaging solutions can help your business, call
SCA, your partners in packaging, on +44 1622 793376.