2022
ANNUAL AND SUSTAINABILIT Y REPORT

Maximizing value creation  
in and from the forest

Contents
Introduction
	 2	 This is SCA
	 4	 The year at a glance
	 6	 Why invest in SCA?
	 8	 CEO’s message
	 10	 The integrated value chain
	 12	 Forest and climate
	 14	 How a wind energy system works
	 16	 SCA’s climate benefit
Strategy and operations
	 18	 Operating environment
	 20	 Strategy
	 24	 Forest
	 30	 Wood
	 34	 Pulp
	 38	 Containerboard
	 42	 Renewable Energy
	 46	 Logistics
	 48	 Sustainability – Group targets
	 50	 Fossil-free world
	 52	 Valuable forests
	 54	 Efficient use of resources
	 56	 Sustainable development
	 58	 The share and the shareholders
Board of Directors’ Report
	 60	 Board of Directors’ Report
	 64	 Sustainability reporting in accordance  
with the Annual Accounts Act 
	 65	 Risks and risk management
	 74	 Corporate governance
	 80	 Presentation of the Board of Directors  
and Auditors
	 82	 Presentation of the Executive  
Management Team
Financial statements and notes
	 84	 Contents
	 86	 Consolidated statements and notes
	130	 Parent Company statements and notes
Sustainability facts
	140 	 Value creation
	141 	 Strategic priorities and Group targets
	144 	 Governance and materiality
	148 	 Value-based culture
154	 Social data
	155 	 Profitable growth including EU Taxonomy
	157 	 Fossil-free world
	160 	 Valuable forests
	163 	 Efficient use of resources
	167 	 Sustainable development
	168 	 Environmental data
	170 	 Taxonomy tables
	173 	 About the Sustainability Report
Other
	174	 Signatures
	175	 Auditor’s report
	179	 Limited Assurance Report on the  
Sustainability Report
180	 Remuneration report
	182	 GRI Index
	184	 Financial multi-year summary
	185	 Non-financial multi-year summary
	186	 Definitions and glossary
	187	 About the Annual General Meeting
The formal annual report comprises pages 60–73, 84–138 
and 174. The scope of the Sustainability Report in accor-
dance with the Swedish Annual Accounts Act is described 
on page 64. The Sustainability Report according to GRI is 
summarized in the GRI content index on pages 182–183. 
The Corporate Governance Report is on pages 74–83 and 
the remuneration report is on pages 180–181. 
 
1
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other
Strategy and operations

Europe’s largest  
private forest owner
SCA is Europe’s largest private forest owner with 2.7 million hectares of  
land in northern Sweden and the Baltic region. Based on this unique resource,  
SCA generates the maximum possible value in the forest and from the forest.
2.7
million 
hectares
Pulp mills
Sawmills
Kraftliner mills
SCA’s forest holdings
Estonia
Latvia
Lithuania
This is SCA
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SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

This is SCA
The forest is at the core of SCA’s operations. SCA has built an  
integrated and well-invested industry around this renewable resource,  
utilizing and maximizing the value of the entire tree. Using this raw  
material, SCA develops products for customers all around the world.
Forest
The forest is at the core of SCA’s opera-
tions. With the forest as a foundation, 
SCA has built an industrial ecosystem that 
maximizes value creation in and from the 
forest.
Wood
Two thirds of the revenue for forest 
owners come from sawmills. A competi-
tive sawmill industry is the economic 
engine of a forest business and creates 
the conditions for a competitive fiber-
based industry.
Pulp 
Any wood unsuitable for use in sol-
id-wood products is used to make pulp. 
A pulp mill also produces, for example, 
green chemicals, green electricity, heating 
and raw materials for biofuels.
Containerboard 
SCA produces containerboard – paper 
for transport packaging. An integrated 
paper mill produces, for example, green 
chemicals, green electricity, heating and 
raw materials for biofuels.
Renewable Energy
From the raw materials that are not used 
for solid-wood products, paper, or pulp, 
SCA produces energy, green electricity, 
biofuels and green chemicals. SCA’s for-
ests offer favorable sites for wind power 
production.
Logistics
Efficient logistics are crucial for a forestry 
company. Raw materials must be shipped 
cost-efficiently to industrial facilities and 
products must be delivered to customers 
worldwide.
WOOD
RENEWABLE
ENERGY
CONTAINER- 
BOARD
PULP
FOREST
LOGISTICS
This is SCA
3
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other
Strategy and operations

The year at a glance
SCA’s earnings in 2022 were the best ever.  
This was achieved through robust demand, high  
prices and good cost control with a high level of  
self-sufficiency in wood, energy and logistics. 
The ye ar at a gl ance
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SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

1)	SEK –394m is recognized in Other.
EBITDA, share of Group1)
SEK 2,696m
SEK 2,079m
SEK 2,961m
SEK 2,852m
Forest
Wood
Pulp
Containerboard
26%
20%
29%
28%
Key figures
SEKm
2022
2021
Net sales
20,794
18,822
EBITDA
10,194
9,109
EBITDA margin, %
49.0
48.4
Operating profit
8,642
7,634
Operating margin, %
41.6
40.6
Profit for the period
6,821
6,101
Earnings per share, SEK
9.61
8.46
Proposed dividend per share, SEK
2.50
3.25
Operating cash flow
5,685
5,216
Strategic capital expenditures
4,351
3,723
Capital employed
106,347
90,807
Industrial return on capital employed, %
40.1
33.0
Net debt/EBITDA
1.0x
0.9x
SEKm
2022
2021
Average number of employees
3,313
3,577
Accidents, LTA per million hours worked
3.1
5.8
Climate benefit, million tonnes of CO2
10.1
10.5
Net sales
20,794
SEKm
EBITDA
10,194
SEKm
EBITDA margin
49%
Earnings per share
9.61
SEK
 Dividend per share
2.50
SEK
	 SCA is Europe’s largest private forest owner. SCA’s forests are managed to both generate 
a high level of timber production and to preserve the forest’s conservation values.
The ye ar at a gl ance
5
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other
Strategy and operations

Europe’s largest private forest holding with an  
integrated value chain that creates profitable growth
With 2.7 million hectares of land, SCA is Europe’s largest private forest owner. 
Around this renewable resource, SCA has built a well-invested value chain that maximizes 
the value of each tree. Combined with a high degree of self-sufficiency and a robust 
project portfolio, this enables long-term and increasing returns for SCA’s shareholders.
Read more on page 29.
Total return, forest in Sweden (index 1956–2021)
Source: The Swedish National Forest Inventory, the Swedish Forest Agency, 
Ludvig & Co, the National Land Survey, Svefa, FutureVistas  
Note: Cash flow is reinvested in forest  
CAGR: Compound Annual Growth Rate
Index
0
10,000
20,000
30,000
40,000
50,000
60,000
2020
2010
2000
1990
1980
1970
1960
With 2.7 million hectares of land, SCA is Europe’s largest pri-
vate forest owner. Forest is a real asset that protects against 
inflation and generates stable profitability and value growth. 
Since 1956, the forest assets have provided an annual total 
return of about 10%. 
CAGR
10%
Stable and profitable  
value growth over time 
Wind power yields stable income for SCA. At the same time, a 
wind farm entails very limited restrictions for forest operations.
Why invest in SCA?
6
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

Mtonnes
80
100
120
140
160
180
200
220
2022
2019
2015
2011
2007
2003
Read more on pages 22–23.
Read more on pages 20–21.
Read more on pages 24–47.
Read more on pages 16–17.
EBITDA and EBITDA margin
0
2,000
4,000
6,000
8,000
10,000
12,000
2022
2021
2020
2019
2018
2017
0
10
20
30
40
50
60
SEKm
%
2)
1)
0
50
100
%
0
2
4
6
8
10
12
Mtonnes CO2
1)	Excluding the impact of the changed accounting method for the valuation 
of forest assets.
2)	Excluding the effect of one-off items related to the discontinuation of  
publication paper operations.
EBITDA
EBITDA margin
SCA is a forest company with modern, well-invested industries close 
to the forest holding. Important investments in the future are taking 
place in all product areas that increase production, quality and com-
petitiveness. The robust project portfolio comprising strategic capital 
expenditures in forest and industry guarantees long-term competitive 
returns. 
SCA uses the entire tree in an industrial ecosystem, ensuring efficient 
use of resources with a high degree of self-sufficiency in wood, energy 
and logistics that largely counteracts cost increases. In parallel, com-
petitive industries have a high payment capacity for wood raw material 
and guarantee the long-term value of the forest.
A robust project portfolio that ensures  
competitive returns
SCA’s products are meeting rising  
demand and contribute to a more  
sustainable society
SCA contributes climate benefits  
that exceed the emissions generated  
by all passenger cars in Sweden.
High degree of self-sufficiency provides 
stability in the cost base
There is growing, long-term demand for all products manufactured by 
SCA and these products also meet rigorous sustainability and quality 
standards. Renewable products, such as solid-wood products, bio-
fuels and packaging paper, made using trees from SCA’s forests can 
replace fossil fuels, plastics and concrete. SCA’s products and forest 
have an increasingly important role to play in the transition to a more 
sustainable society.
Growing forest binds CO2. Combined with higher production of 
­renewable products and investments in sustainable technology, 
SCA’s climate benefits are increasing. In 2022, total climate benefits 
from SCA’s forest and manufacturing industries amounted to 10.1 
­million tonnes of CO2. SCA is also one of Europe’s leading producers 
of bioenergy, a renewable energy source that helps to mitigate 
­climate change.
Wood sourcing, M m³
Electricity consumption, TWh
Solid biofuels, TWh
Logistics, SEK bn
Transportation fuel, ktonnes
~50%
~100%
~40%
~50%
~95%
Degree of self-sufficiency by area
Net uptake in SCA’s forest
Substitution
Emissions in the value chain
Climate benefit 2022
5.4
+5.4
SCA’s climate benefit 2022
Source: Numera
Global demand for Containerboard 
CAGR
3%
–0.7
=10.1
Why invest in SCA?
7
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other
Strategy and operations

A robust company  
well prepared for the future
In 2022, SCA reported its best-ever earnings and is thus well 
positioned for future opportunities and challenges. Over the next 
few years, a number of strategically important projects will be 
ramped up, contributing to increased growth and strengthening 
the company’s cash flow and earnings generation. Increased 
production of packaging paper, pulp, solid-wood products, bio-
fuels and wind power are also all good examples of how SCA 
is making a proactive contribution to the necessary transition 
to a fossil-free and sustainable society.
SCA’s operations are based on a secure, sought-after and 
scarce resource – the forest – and on a well-integrated value 
chain where each link strengthens the others and where the sum 
equals more than the parts. Our high degree of self-sufficiency 
in wood, energy and logistics contributes to stability and good 
profitability – especially in times of uncertainty. A consistently 
robust balance sheet, despite the implementation of ­several 
strategic investment projects in recent years, reflects genuine 
strength.
High degree of self-sufficiency
In times such as these, we see the great value of a high degree of 
self-sufficiency in key areas. This is not only about timber supply, 
where half of the raw materials are sourced from our own forests. 
It is also about our almost complete self-sufficiency in electricity, 
at a time of high and volatile electricity prices. Our transition from 
using fossil oil to fossil-free biofuel in our industrial processes 
not only reduces our climate impact but also means we can 
supply industrial facilities with our own energy. This is particu-
larly important at a time of rising energy prices.
We also have control over a substantial share of our logistics 
as European and global logistics systems are disrupted by the 
pandemic, EU regulations reduce the availability of trucks, and 
prices for road and marine fuels are high. When it comes to 
opportunities to counteract the negative impact of increased 
fuel prices, we have our own production and delivery of feed-
stock fuel in the form of tall oil, which accounts for almost half 
of our own fuel needs.
SCA has approximately 20% of Sweden’s installed wind power 
capacity on its land. If we are to continue to ensure a high degree 
of energy self-sufficiency, even as we gradually grow our indus-
trial operations, it is important that we utilize this potential. 
Projects on schedule and budget
We have an extensive and ongoing investment program encom-
passing billion-krona investments to enhance the efficiency and 
expand the production of packaging paper, pulp, solid-wood 
products and biofuels. We are purchasing forest land and 
investing in our own wind power. We are further strengthening 
our logistics chain with investment in a new container port. 
Our investments are well prepared and executed by an experi-
enced and competent project organization. “On time and on 
budget” is how our ongoing projects are generally described in 
our reports.
And last, but certainly not least – our investments are funded 
with our own strong cash flow.
Increased production of renewable energy
Efficient management of energy and making the most of the 
energy potential in our operations have always been a top pri-
ority. From the earlier focus on our own energy supply, we have 
increasingly developed a business operation that is aimed at an 
external market. We are investing in production and further pro-
cessing and see that the size, profitability and commercial per-
formance of the operations have reached a level that justifies our 
decision to report our activities in the Renewable Energy busi-
ness area as a separate segment from January 1, 2023. In 
December, we acquired our first wind farm and, in parallel, 
opened up for continued investment in our own wind power 
­production.
The potential of Renewable Energy is significant, and is empha-
sized by the climate transition and also the energy crisis resulting 
from Russia’s invasion of Ukraine, and with this the growing 
understanding of the need to strengthen the regional supply 
chains.
Forests and renewable products yield substantial  
climate benefits
Renewable energy is also a crucial resource when society and 
the world must adapt to combat climate change, which is 
becoming increasingly obvious and dramatic.
The forest contributes in several ways in these efforts. Growing 
trees capture CO2 from the air – the better they grow, the more 
CO2 they capture. As trees mature, they are harvested and made 
into products and fuels that replace alternatives based on finite 
and fossil raw materials. Where the harvested trees once stood, 
new seedlings are planted that grow into new trees. In 2022, SCA 
contributed a climate benefit of 10.1 million tonnes of CO2, repre-
senting an important contribution to global efforts to combat 
­climate change.
In addition to this, there is wind power. For historical reasons, 
SCA owns forest on high land between Norrland’s river valleys 
that provide excellent wind conditions. Renewable electricity is 
a crucial resource when society must transition in all areas to a 
more sustainable future.
All forest values
We nurture and manage the forest to ensure the gradual increase 
of its contribution to a sustainable future. Concurrently, we 
create thousands of jobs in northern Sweden, make a tangible 
contribution to a positive trade balance and nurture all of the for-
est’s other values, its biodiversity, nature experiences offered by 
the forest and the forest as a base for other businesses.
As a shareholder in SCA, you own a portion of SCA’s forests and 
are part of the positive future toward which they contribute.
Ulf Larsson
President and CEO
CEO’s message
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SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

We support the UN Global Compact and its principles.
“A well-integrated value chain  
where each link strengthens 
the others.”
CEO’s message
9
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other
Strategy and operations

E
n
e
r
g
y
E
n
e
r
g
y
Wind turbines
Bioenergy
Tall oil,
black liquor & bark
Pulp &
paper mills
Wood-chips
Sawmills
Sawlogs
Pulpwood
Logging residue
& wood fuel
Bark &
sawdust
Sunlight
Water
CO2
SCA generates value  
in and from the forest
The forest forms the foundation for SCA’s value creation. 
Using carbon dioxide, water and sunlight, trees build wood fiber. 
Correctly managed, the forest is a perpetual resource.
SCA’s forests are managed with a broad range of expertise to 
be as rich in biodiversity, experiences and timber in the future 
as they are today.
The forest is managed to become sawlogs, the most valuable part 
of the tree. All timber that can be turned into solid-wood products 
is also used for this purpose. By-products from the forest and saw-
mills are used in fiber products and for energy.
To create the highest possible value, SCA has built a value chain 
comprising well-invested and competitive industries that can pay 
well for timber produced by the company and other forest owners.
The forest forms the foundation  
for operations…
…and is processed  
in well-invested industries…
The integr ated value chain
10
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

Electricity
Heat
Pellets
Liquid biofuels
Pulp
Containerboard
Solid-wood products
SCA offers products that replace alternatives with a greater 
­environmental and climate impact, thereby contributing to 
­customers’ success and sustainability.
A competitive industry and growing, well-maintained forests 
­provide the company’s owners with favorable returns, while 
­preserving biodiversity and other environmental values. The 
business creates employment and income for forest owners, 
contractors, employees, customers and local communities 
while simultaneously benefiting the climate.
…that produce renewable  
products…
…and generate value  
in society
More valuable forests
Fossil-free world
Return to shareholders
Viable local communities
The integr ated value chain
11
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other
Strategy and operations

The forest – everlasting  
and dynamic
The forest forms the foundation for SCA’s value creation, a truly renewable resource.  
Using carbon dioxide, water and sunlight, trees build wood fiber.  
Correctly managed, the forest is a perpetual resource.
Regeneration – site preparation and planting nor-
mally take place after harvesting. There is also a great 
deal of natural regeneration, particularly of deciduous 
trees, which then become part of the new stock.
Pre-commercial thinning – after harvesting, there is usually a strong 
natural regeneration of deciduous trees. Given that softwood trees 
yield more sustainable timber production and produce more valuable 
timber, most deciduous trees are removed from the stand after 10–15 
years. Some deciduous trees are retained for variation and diversity.
Active nature conservation – there are 
species that require special habitats 
such as burnt wood or old deciduous 
trees – conditions that require active 
intervention. SCA works systematically 
to ensure a variety of habitats in the 
landscape.
Forest areas with high conservation 
values – SCA conducts inventories of 
its forests and prepares ecological 
landscape plans to set aside forest 
areas that have high conservation 
values or contain species that require 
undisturbed conditions.
Forest and climate
12
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

SCA’s forests have a rotation period of 
80–120 years. Only a small percentage 
of the forest is affected by final felling, 
planting, pre-commercial thinning or 
commercial thinning every year. The 
forest stands and grows for the better 
part of a century.
When trees grow, they produce wood 
from carbon dioxide, water and soil nutri-
ents using sunlight as energy. As trees 
age, their rate of growth slows, and they 
ultimately die and decompose, releasing 
the carbon dioxide back into the atmo-
sphere. One in five trees in SCA’s produc-
tive forests is left to live, die a natural 
death and become food and a habitat for 
insects, wood-decay fungi and wood-
peckers.
Harvesting with variable on-site retention 
– approximately 1% of SCA’s productive 
forest land is harvested every year.
Non-productive land – forest land with a low level of pro-
ductivity, such as mires, rock faces and swamp forests, 
can be found everywhere in the forest landscape and 
is not cultivated. More than 20% of SCA’s land is low-­
productive land. A large portion of this is covered in forest.
On-site retention – part of the old stand is retained in all har-
vesting operations – buffer zones, tree groups, individual dead 
and living trees. This helps forest species to transition from the 
old forest to the next generation of forest.
Thinning – the forest is thinned once or twice over 
a rotation period to allocate growth to the most 
­valuable trees. In the thinning operations some 
on-site retention is applied, and deciduous trees, 
for example, may be left untouched.
Forest and climate
13
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other
Strategy and operations

How a wind energy  
system works
Wind power is renewable. Onshore wind is the cheapest method of  
producing electricity on a large scale. The renewable electricity produced quickly  
compensates for the fossil emissions caused in connection with its construction. 
Up to 45% of the wind energy 
is converted into electricity
Produces electricity from wind 
speeds between 4 and 25 m/s
The wind energy is transferred from 
the rotor blades to the generator 
that produces electricity
A modern turbine produces
approximately 20,000 MWh per year
How a wind energy system works
14
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

A wind turbine
Up to 250 meters tall – the higher a wind turbine is, the greater 
the production of renewable electricity. Partly because there is 
more wind at higher altitudes, and also because larger blades 
with greater blade diameters can then be installed that catch 
more wind. A 250-meter wind turbine produces four times the 
electricity of a 150-meter wind turbine.
Production is generally higher during the winter months com-
pared with the summer, as wind conditions are more favorable 
during the winter months.
A 250-meter-high wind turbine has an output of 6.5 MW and nor-
mally produces about 20,000 MWh of renewable electricity per 
year, sufficient to heat approximately 1,000 homes.
A wind farm
Comprises a number of wind turbines placed in a landscape to 
make the best possible use of the prevailing winds.
Forest between the wind turbines can be used for forestry, 
­recreation such as hunting or nature conservation purposes.
One connection point
A wind farm must be joined to the national grid where electricity 
from the wind farm can be effectively distributed.
A wind energy system
Electricity production in a wind farm must be supplemented by 
other dispatchable sources of electricity.
Since electricity must be produced when it is used, other elec-
tricity production or some form of electricity storage must be 
used when there is no wind.
Electricity production can also be connected to some form of 
electricity-intensive use that can vary depending on wind energy 
production, such as hydrogen production. Hydrogen can then be 
considered a method to store wind power.
At the end of 2022, Sweden had wind power production capacity 
of 33 TWh, approximately 20% of Sweden’s total capacity for 
electric power generation. 
Even if Sweden’s electricity production is largely fossil-free, 
Sweden delivers electricity to neighboring countries where elec-
tricity is produced from gas, oil and coal. 1 TWh of renewable 
wind power electricity replaces fossil-based electricity equiva-
lent to 241,000 tonnes of CO2 (European average).  
SCA and wind power
Large areas of SCA’s forest land in northern Sweden are very 
suitable for wind turbines. SCA’s large land holdings mean the 
company is well positioned for the rapid expansion of wind 
power on the company’s land. At the end of 2022, 685 wind tur-
bines were operating on SCA’s land with total annual production 
of 7.2 TWh, approximately 20% of Sweden’s total wind power 
production.
Since 1997, SCA has leased land for wind power projects and is 
now developing the wind power business through its own proj-
ects, projects to upgrade existing wind farms (repowering) and 
acquisition of existing wind farms.
SCA is working with partners to develop wind power production, 
from preparations and the permit process to managing wind 
farms in operation. SCA intends to invest in its own wind power 
portfolio and acquired its first wind farm in 2022 in Markbygden, 
Piteå Municipality, consisting of a total of 36 turbines. 
Wind power technology has evolved substantially over the past 
ten years – with better turbines, larger generators and larger 
blade diameters – which means more installed power. Conse-
quently, there is considerable potential in existing farms to 
replace old turbines with fewer, modern turbines with a greatly 
enhanced capacity. SCA can see significant opportunities in 
repowering, which means replacing older wind turbines in 
existing wind farms with modern wind turbines with a signifi-
cantly higher production capacity. 
In northern Sweden, new facilities are being planned and com-
missioned to manufacture fossil-free steel, batteries and other 
energy-intensive operations. Through new wind power initiatives 
and repowering projects, SCA can help to secure the supply of 
renewable electricity in the region and also help to ensure com-
petitiveness and jobs.
Production capacity for wind power in Sweden:
On SCA’s land
7.2 TWh
Total of  
33 TWh
How a wind energy system works
15
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other
Strategy and operations

SCA’s climate benefit
SCA’s well-maintained and growing forests bind CO2. An increasing  
net volume of carbon is bound when growth is higher than harvesting.  
Harvested timber is used in products that replace alternatives that leave  
a much bigger carbon footprint. The renewable wind power on SCA’s  
land also makes a positive contribution to the climate transition.
CO2
SCA borrows biomass from  
nature’s green carbon cycle  
to make products.
Growing forest  
binds CO2
Active forest management  
encourages growth
– Improved seedlings
– Active forest management
– Contorta pine
– Fertilization
Growing trees capture and bind carbon dioxide (CO2). 
The more they grow, the more carbon they bind. With 
net growth in SCA’s forests, this carbon store is con-
stantly increasing in growing forests.
SCA utilizes part of this growth as renewable raw 
material to manufacture products that replace alter-
natives that leave a much bigger carbon footprint. 
Thereby, fossil carbon can stay in the ground and 
­forests can remain vigorous and growing.
Carbon store
99%
Harvesting
1%
SCA’s climate benefit
16
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

Higher growth enables more substitution – renewable alternatives replace  
fossil-based products and allow us to retain carbon in the ground.
...replace non-renewable products
SCA’s renewable products...
Solid-wood products
Bioenergy
Fossil fuels
Packaging paper
Concrete
Plastic
Emissions in the  
value chain 
million tonnes of CO2e
Substitution
million tonnes of CO2e
Net sequestration  
in the forest 
million tonnes of CO2e
For more information, refer to Sustainability facts on pages 157–159.
SCA’s growing and well-main-
tained forests bind carbon 
dioxide.
Total emissions of fossil carbon 
in the value chain, from forest 
operations to customers.
The climate benefit from SCA’s 
operations corresponds to more 
than the emissions from all of 
Sweden’s passenger cars.
SCA’s renewable products 
replace alternatives that leave 
a much bigger carbon footprint.
SCA’s climate benefit 
million tonnes of CO2e
Net uptake in own forest
SCA total
Solid-wood products
Pulp and paper
Bioenergy
Scope 1, direct emissions
Scope 2, purchased electricity  
and energy
Scope 3, purchased goods  
and services
5.4
2.8
1.8
0.8
–0.26 –0.05 –0.43
1
2
3
10.1
SCA’s climate benefit
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SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
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Strategy and operations

SCA continues to stand 
strong in a turbulent global 
environment
Oper ating environment
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SCA’s high degree of self-sufficiency means the company has control of  
supply chains when the macro environment is being shaken by an energy crisis  
in Europe, global inflation and Russia’s invasion of Ukraine. In parallel, demand for 
forest products and renewable energy continues to increase in the long term. 
High degree of self-sufficiency ensures a strong  
position for SCA
In several areas, demand is growing for SCA’s products and the 
company’s competitiveness is strengthening. One important 
explanation is that SCA’s self-sufficiency in wood raw materials 
and energy means the company has limited exposure to macro-­
environmental risks. 
Russia’s war of aggression on Ukraine has had a dramatic 
impact worldwide. Falling gas deliveries from Russia have led 
to a radically changing landscape for customers and competitors 
in Europe. Demand for alternative fuels, such as pellets, has 
increased dramatically. The competitive relationship has 
changed between fresh fiber-based kraftliner, with a high level 
of internal energy supply, and recovered fiber-based testliner, 
which as a rule uses gas as an energy source. Restrictions on 
Russian exports have resulted in the disappearance of Russian 
and Belarusian solid-wood products from European markets. 
Truck drivers and forest management personnel from Ukraine 
are involved in the war and not available for work in the West. 
These factors are impacting all companies, but during the year 
SCA demonstrated a good ability to handle the situation and is 
therefore in a good position for the future.
Historically high demand for the company’s biofuels
The energy crisis and the war are closely linked. The crisis has 
led to increased competition for energy, particularly gas, but also 
electricity, fossil fuels and biofuel. Demand for SCA’s biofuels is 
at a historically high level. 
Own logistics provide good resilience for SCA
Inflation is rising in the wake of the government subsidies due 
to the pandemic and price increases arising from the war. The 
world’s central banks are attempting to combat this through 
interest rate hikes. As a result, households are being forced to 
reduce consumption, public and private sector investments 
are declining and there is a risk of recession. 
For SCA, this may lead to a reduction in demand for construction 
materials and packaging paper, but also the postponement of 
investments by competitors to increase production. 
Higher fuel prices and a number of other factors are driving up 
costs for transportation and distribution. At the same time, a 
weaker economic situation alleviates some of the problems 
associated with resource shortages and imbalance in the area 
of logistics. With its own logistics organization, SCA can counter 
any imbalances in the transportation market. 
SCA combats climate change
Dramatic weather events such as drought, flooding and severe 
storms have emphasized the seriousness of climate change. 
Efforts to combat climate change are continuing and products 
and fuel from renewable raw materials, such as the forest, have 
a key role to play in this work.
Demand for SCA’s biofuels is at a historically high level.
	 The climate is the key long-term issue of our time. Well-maintained forests bind  
CO2 and renewable products reduce emissions of fossil CO2.
Oper ating environment
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SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
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Self-sufficiency offers 
greater security and control
SCA has a high degree of self-sufficiency through its integrated  
value chain. Alongside the ready availability of forest raw materials from its  
own forests, SCA is well placed to ensure cost control through its own  
energy production and logistics operations.
1.6 TWh
11 TWh
10 M m³
About 50% of SCA’s raw material needs 
are provided by wood from the own for-
ests and woodchips from its own saw-
mills.
SCA’s industries manufacture green elec-
tricity corresponding to approximately 1% 
of Sweden’s consumption. Green elec-
tricity is also produced by wind power 
on SCA’s land. 
As one of Europe’s largest manufacturers 
of biofuel, SCA is more than self-suffi-
cient. Biofuel not used by SCA is sold 
externally.
Electricity consumption
Solid biofuels
~95%
Degree of 
self-sufficiency
~50%
Degree of 
self-sufficiency
100%
Degree of 
self-sufficiency
Wood sourcing
  SCA can influence
  SCA can partially influence
SCA forests
Chips from own sawmills
Purchases from local forest owners
External suppliers
Own production, used internally
Sold externally
Wind power leases
External exposure
Own production, used internally
Sold externally
District and waste heat
100%
~95%
~50%
Str ategy
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SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
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The forest is at the core of SCA’s operations. SCA has built an 
ecosystem of industries around this, which utilizes and maxi-
mizes the forest’s value. A high level of self-sufficiency for wood 
raw material provides security of supply and cost control. It also 
provides a basis for long-term and strategic development.
Energy is another area where SCA has a high degree of self-suf-
ficiency or provides a surplus to the market. The production of 
green electricity in own facilities and lease income from own 
wind power largely cover the electricity consumption. With pro-
duction that is in balance with SCA’s own consumption, a level of 
cost security is achieved in periods of fluctuating electricity 
prices.
In respect of biofuel, SCA has a significant surplus to offer cus-
tomers outside the company. There is untapped potential in this 
area when demand increases for renewable energy as an alter-
native to gas and other fossil sources.
After several years with widespread disruption in global and 
European logistics chains, significant value can be gained by 
having an own logistics organization to maintain the supply of 
raw materials and input goods and to guarantee secure cus-
tomer deliveries.
SCA also has a substantial buffer in respect of transportation 
fuels, albeit not directly via an in-house supply. Through the 
delivery of tall oil for fuel production, SCA is partly compensated 
for high fuel costs. By increasing the involvement in liquid bio-
fuel, cost control will be enhanced further. 
100 ktonnes
SEK 2.8bn
SCA has its own logistics organization 
that operates its own vessels and terminals 
and helps SCA to counter market turbu-
lence and secure customer deliveries.
SCA is investing in a biorefinery in 
Gothenburg to produce liquid biofuel. 
Tall oil – a by-product from pulp pro­
duction – is a raw material.
Logistics
Transportation fuel
~40%
Degree of 
self-sufficiency
~50%
Degree of 
self-sufficiency
Own vessels and terminals
Long-term contracts
External suppliers
Tall oil & turpentine
Trucks & vessels
~50%
~40%
Str ategy
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Strategic project portfolio 
increases SCA’s value 
With the overall goal to maximize value creation, SCA uses a long-term and ­systematic 
approach to developing its value chain. Investments in the industrial structure must  
be profitable on their own merits and add value throughout the chain.
  Approved or completed projects
  Organic growth/Strategic options
Total value creation
Basic investments ensure good productivity and cost efficiency
CTMP 
expansion
300kt CTMP  
at Ortviken
Biofuels 
Partnership  
with St1
Kraftliner  
expansion
New 725kt paper  
machine at Obbola
Acquisitions of  
forest land
Goal of 100k hectares of 
forest land in the Baltic 
region, of which 70% 
­completed
Str ategy
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A number of major investment and development projects have 
been, or are about to be, completed. The transition to products 
with good and long-term development potential has been carried 
out. The Östrand pulp mill has doubled its pulp production over 
the past few years. The new kraftliner paper machine in Obbola 
has begun production. SCA’s forest resource is growing.
The project portfolio is constantly evolving on the basis of gener-
ating the highest possible long-term value creation. The substan-
tial forest resource forms the foundation for operations. The 
company wants this resource to grow, through proper manage-
ment of the existing forest and through acquisitions. Production 
will continue to grow with products that make the best use of the 
forest’s value potential and have a high payment capacity for the 
timber. The potential of secondary flows and waste streams will 
be utilized. 
Technology, demand and the market for renewable energy is 
evolving rapidly. Access to renewable energy raw materials is 
key for biofuels and liquid biofuels. SCA utilizes its resources 
in forest raw materials and industrial by-products in strategic 
­partnerships and profitable investments.
Onshore wind is now the cheapest method of producing new 
electricity, and the production method with the lowest carbon 
footprint and most limited environmental effects of all energy 
types. Previously, SCA leased out land with favorable wind con-
ditions but is now increasingly becoming involved as an owner 
in wind energy production. This could include the acquisition 
and development of existing wind farms, and development of 
and investment in entirely new projects. One particular area of 
interest is repowering, which involves upgrading old wind farms 
with new technology.
Time
Grow  
forest assets
Increase the forest holding  
in the Nordic and Baltic 
regions
Grow solid-wood 
products
Increased production  
in balance with  
wood raw material
Additional
potential pulp & con-
tainerboard 
Eliminate bottlenecks
Renewable  
fuels
Biorefinery 
Electrofuels
Own wind power
Acquisitions 
Organic growth 
Repowering
Str ategy
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FOREST
SCA’s forest  
continues to grow
 
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Growing demand for softwood 
Demand is growing for products based on wood, particularly 
solid-­wood products of high quality. In parallel, there is limited 
availability due to the area covered by forest land. The shortage 
is also due largely to various types of restrictions. For example, 
Russian forest products have been excluded from the major 
markets in Europe and North America following Russia’s 
­invasion of Ukraine.
Infrastructure and market conditions are even greater limitations. 
Large areas of forest, especially in Russia, but also in parts of 
North America, lack roads or other transport options. Large 
­set-asides for nature conservation also restrict access to forest, 
as does forest damage.
Value chains are poorly developed in many parts of the globe. 
Demand may exist for one timber product, but not for the other 
parts of the value chain and this hampers the development of 
forestry.
Lastly, different forest resources are used for different products. 
In South America and the southeastern US, where access to 
eucalyptus and fast-growing pine is increasing, this wood raw 
material is used largely for products other than those manufac-
tured from Scandinavian softwood.
SCA’s well-maintained and growing forests will be a resource 
that is in demand and in short supply in the future as well.
SCA is Europe’s largest private forest owner and the forest is SCA’s  
unique resource. This resource will grow and yield improved access to renewable  
raw materials through acquisitions and active and long-term management.
Strategy
•	 Increase growth and harvesting while maintaining 
high environmental ambitions
•	 Acquire forest that supports SCA’s industries
•	 Increase digitalization of planning, logging, forest 
management and timber purchasing
•	 Increase the precision and quality of biodiversity 
conservation measures
Share of Group 2022
Financial key figures
SEKm
2022
2021
Net sales
6,686
6,148
EBITDA
2,696
2,644
EBITDA margin, %
40.3
43.0
Operating cash flow
332
763
Strategic capital expenditures
809
119
Capital employed
80,077
69,046
Return on capital employed, %
3.4
3.8
Harvesting of own forest, thousand m3sub
4,434
4,278
Average number of employees
599
591
Net sales1)
EBITDA
Capital employed
Number of employees
SEK 6,686m
SEK 2,696m
SEK 80,077m
599 employees
24%
26%
75%
18%
1)	Before elimination of intra-Group sales.
	 The volume of forest on SCA’s land has increased by more than  
	
60% since 1950 and growth has more than doubled.
Forest
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Europe’s largest private forest holding secures  
raw material supply
SCA owns 2.7 million hectares of land in northern Sweden and 
the Baltic region, of which 2.1 million hectares are productive 
forest land. At year-end, SCA’s standing volume amounted to 267 
million forest cubic meters (m³fo), of which 7 in the Baltic region.
SCA wants to increase its forest holding and is acquiring forest 
where it can help to supply the company’s value chain. In 
Sweden, legal opportunities to increase the forest holding are 
limited. Therefore, the company is endeavoring to improve con-
ditions for forest management and timber supply in the country 
through land purchases and sales. SCA is continuing to expand 
as a forest owner in the Baltic region.
About 50% of SCA’s raw material needs are provided by wood 
from the Group’s own forests and woodchips from its own saw-
mills. Demand for raw materials will increase when production of 
solid-wood products, containerboard and pulp rises as a result 
of the ongoing investments. Even with the increasing raw mate-
rial needs resulting from the company’s growth, SCA has a much 
higher level of self-sufficiency than comparable forest products 
companies. The large forest holding provides forest products 
companies with a reliable supply of raw material, facilitates 
investments and allows greater flexibility. 
Every tree that is harvested is replaced with at least two new 
ones. SCA’s tree nursery supplied 98 million seedlings in 2022.
Timber purchases from private forest owners
Most of the timber that does not originate from SCA’s own forest 
is purchased from private forest owners with holdings in northern 
Sweden. With its harvesting and forest management organiza-
tion that covers northern Sweden, SCA is an attractive partner 
for forest owners seeking access to highly competent people 
and the latest harvesting machines to manage their forests. 
Through its competitive industrial operations, SCA also secures 
demand and forest value for other forest owners. SCA’s exper-
tise and the resources used in its own forests thereby also ben-
efit other forest owners. Timber purchased from private forest 
owners is supplemented by purchases from other forest compa-
nies and some imports from the Nordic and Baltic regions. 
Imports were at very low levels in 2022.
Responsible forest management
SCA’s forests are managed sustainably with the aim that they 
will remain at least as rich in biodiversity, nature experiences 
and raw material in the future as they are today. Preserving bio­
diversity, with the many species that make up the flora and 
fauna, is one of SCA’s most important sustainability targets. 
Forest areas of high conservation value are set aside from har-
vesting or managed specifically to enhance the conservation 
values. Forest is set aside to provide variety and habitats for 
­sensitive flora and fauna.
SCA has identified about 200 flora and fauna for which SCA 
takes particular responsibility by ensuring access to the habitats, 
substrates and processes needed by these species.
Good and secure working conditions for our own personnel 
and contractor employees are another important area of 
­responsibility.
SCA’s forest has been certified since 1999 in accordance with 
the requirements of the Forest Stewardship Council® and has 
also been certified since 2011 in accordance with the Pro-
gramme for the Endorsement of Forest Certification (PEFC). 
Independent auditors verify that SCA’s forest operations fulfill 
the certification requirements. Products based on timber from 
certified forestry can in turn be certified and offered to cus-
tomers who make ­stringent demands on sustainability. SCA 
also encourages its suppliers to certify their forest operations.
SCA is roughly 50% 
self-sufficient in timber. 
Most of the other timber 
requirement is covered 
through purchases from 
private forest owners in 
northern Sweden.
PEFC/05-23-131
Promoting
Sustainable Forest
Management
www.pefc.org
Forest
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Climate benefits and biodiversity conservation
Growing trees capture and bind carbon dioxide (CO2). SCA’s 
­forests have an annual net growth of almost four million m³fo 
of timber, which means that the forests bind a net total of more 
than five million tonnes of CO2. This is more than seven times 
the total CO2 emissions from fossil-based sources in all of SCA’s 
operations, including the forest operations, industrial production 
and transportation of raw materials and finished products, as 
well as input goods. 
It is tree growth that binds CO2. The greater the growth, the more 
CO2 is bound by the growing tree. As trees age, growth slows 
and they are harvested and replaced with new, growing trees. 
There are calls in Sweden and the European Union to increase 
the role of the forest as a carbon sink. The reasoning is that the 
forest can bind CO2 as it grows, which is then stored in the living 
biomass. Forest owners are to be encouraged to reduce har-
vesting and instead store carbon in standing forest. However, as 
the trees age, they will eventually die and rot and the CO2 will be 
released back into the atmosphere. Older forests are also sus-
ceptible to more dramatic events, such as insect damage or fire, 
where a forest dies on a larger scale and CO2 emissions rise.
Market
Almost 70% of Sweden is covered by forest, corre-
sponding to 28 million hectares. SCA is Sweden’s largest 
private forest owner. The remainder is owned by indi-
vidual forest owners, other forest products companies, 
the state and the church. 
In addition to its holdings in Sweden, SCA has forest 
holdings in the Baltic region. Forests in the Baltic region 
have an excellent production capacity, which for histor-
ical reasons is only utilized to a limited extent.
Laws that govern forest operations  
and forestry management in Sweden
The Forestry Act has existed in different versions since 
1905 and includes mandatory rules for forestry opera-
tions in Sweden. It states, for example, that reforestation 
must take place after final harvest; it stipulates limits for 
the youngest age at which forest can be felled; and 
includes an obligation to consider environmental values.
The Swedish Environmental Code includes rules that 
impact forestry, such as rules for the preservation of flora 
and fauna.
The Land Acquisition Act regulates the acquisition of 
forest land. The law states that a legal entity may not net 
acquire forest land from private individuals, but only from 
other legal entities. The background to the law is that the 
Swedish legislator wants a certain percentage of the 
forest to be held by private individuals.
Growth in SCA’s forest in 20221)
SEKm
Million 
m3fo
%
Opening volume Sweden, 2022
256
Gross forest growth
10.5
4.1
Natural losses and pre-commercial thinning
–1.4
–0.5
Available growth
9.1
3.6
Harvesting2)
–5.3
–2.1
Net forest growth
3.8
1.5
Closing balance Sweden, 2022
260
Holdings in Baltic region
7
Closing volume, 2022
267
1)	Standing timber volume and growth as per the forest survey performed in 2019. 
2)	Equal to about 4.4 m3sub.
When a forest is actively managed and renewable raw materials 
are made into products that can replace others with a larger 
carbon footprint, fossil carbon remains in the ground, and for-
ests remain vigorous and growing.
SCA sets aside important habitats for flora and fauna that are 
sensitive to forest operations and manages the forests to improve 
conditions for species with special requirements. At the same 
time, the company strives to make these habitats as effective as 
possible. Growth, meaning the sequestration of CO2, and renew-
able raw materials are also important environmental consider-
ations, and SCA is aiming for the best possible balance between 
these objectives.
Harvesting increasing by 25 percent
SCA endeavors to manage its forests in an active and long-term 
manner to increase growth and harvesting potential. The regular 
inventories and harvesting calculations conducted by the com-
pany indicate that harvesting can increase to 5.4 million solid 
cubic meters under bark (m³sub) in 2025 and the company is 
gradually approaching this level. In the longer term, harvesting 
can increase further. Contorta pine, which has a much higher 
Pine
39%
Spruce
37%
Deciduous
14%
Contorta
10%
Forest holding (volume)
Forest
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SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
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growth rate than Swedish pine, has made a significant contribu-
tion to this growth increase.
Since the first forest inventory in the late 1940s, SCA’s standing 
volume has increased by more than 60%, while growth and the 
sustainable harvesting level have more than doubled. At the 
same time, the company has – during these 70 years – harvested 
more than the entire timber volume currently growing in SCA’s 
forests. 
Using the harvesting plan that SCA has now adopted, standing 
volume will continue to increase, albeit at a slightly slower pace 
than in the past.
SCA manages its forests to ensure a high level of  
sawlog production, the most valuable timber product.
m m3sub
0
1
2
3
4
5
6
2050
2040
2030
2020
2010
2000
1990
1980
1970
1960
1950
Harvesting of own forest (million m3sub)
The first harvesting calculation in 1950 presented a sustainable harvesting level 
of approximately 2 million m³sub. Through good forest management, growth 
has risen and in the most recent harvesting calculation the sustainable harvest 
level was 5.4 million m³sub, a level that could be further raised in 10–20 years.
Sustainable harvest level according  
to the harvesting calculation
Current harvesting
+200%
m m3fo
0
50
100
150
200
250
300
2050
2040
2030
2020
2010
2000
1990
1980
1970
1960
1950
Standing timber volume (million m3fo)
The most recent forest survey was conducted in 2019 and standing volume 
was estimated at 267 million m³fo at the end of 2022. The forest manage-
ment plan used for the latest harvesting calculation indicates that standing 
volume will continue to increase over the coming decades, while the 
­harvesting level is simultaneously increasing.
+100%
Forest
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Total return of 10 percent per year
The forest creates value in three ways: cash flow from har-
vesting, biological growth and value growth of forest land.
Harvesting. Harvesting provides raw materials to the industries 
and generates cash flow. Good forest management has helped 
double the sustainable harvesting level since 1956.
Net growth. Over the past 70 years standing volume has 
increased significantly, and growth far exceeds harvesting. 
This will enable a higher level of harvesting and an increase 
in cash flow going forward.
Land value. The value of forest land in northern Sweden has 
increased by more than 200% in real terms and 4,000% in nom-
inal terms since 1956, according to an estimate by the National 
Land Survey.
Altogether, these three value streams have generated a total 
return from SCA’s forest assets of approximately 10% per year 
since 1956.
Total return, forest in Sweden (index 1956–2022)
Source: The Swedish National Forest Inventory, the Swedish Forest Agency, 
Ludvig & Co, the National Land Survey, Svefa, FutureVistas  
Note: Cash flow is reinvested in forest  
CAGR: Compound Annual Growth Rate
Index
0
10,000
20,000
30,000
40,000
50,000
60,000
2020
2010
2000
1990
1980
1970
1960
CAGR
10%
Forest value
SCA bases the valuation of the company’s forest assets on 
transactions in areas where SCA owns forest land in Sweden. 
The three-year average market price on December 31, 2022 used 
in valuation of SCA’s forest assets was SEK 366/m³fo. Applied to 
SCA’s standing timber volume of 267 million m³fo at the end of 
the year, the carrying amount of SCA’s forest assets was SEK 
97.9bn on December 31, 2022.
Ludvig & Co and Svefa are two of the main providers of market 
statistics. According to Ludvig & Co, the average price in 
northern Sweden was approximately SEK 385 per m³fo standing 
timber in 2022. According to Svefa, the average price in northern 
Sweden was approximately SEK 378 per m³fo standing timber in 
2022. SCA’s forest holding is largely in the southern parts of 
northern Sweden, where prices are above average for northern 
Sweden. The average price for the two providers, weighted, in 
the areas where SCA owns forest assets was SEK 418 per m³fo 
in 2022. 
The vast majority of the transactions included in the supporting 
data are acquisitions conducted by private individuals. The rela-
tively few transactions between legal entities indicates, however, 
that forest owned by legal entities has an added value compared 
with forest owned by private individuals.
Forest transactions in areas where SCA owns forest
2022
2021
2020
2019
Number of transactions
135
176
219
251
Average price, SEK/m³fo1)
418
368
312
292
Average size of estate (ha)
137
75
61
67
1)	Combined volume-weighted average from Svefa and Ludvig & Co distributed 
geographically across the areas where SCA owns forest assets.
Forest land prices (SEK/m3fo), Ludvig & Co
SEK/m3fo
0
200
400
600
800
1,000
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
Southern Sweden
Central Sweden
Northern Sweden
Source: Ludvig & Co, nominal values
SEK/m3fo
0
200
400
600
800
1,000
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
Source: Svefa, nominal values
Forest land prices (SEK/m³fo), Svefa
Southern Sweden
Central Sweden
Northern Sweden
Forest
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Strong position  
despite challenging 
economic environment
WOOD
 
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SCA operates five sawmills in close proximity to the forest raw 
material base. The sawmills are well-invested and are among 
the largest in Europe with an annual capacity of 2.2 million m³ 
of solid-wood products. They have a high degree of automation 
and use x-ray technology to maximize the yield from every log. 
The technology means the sawmills can sort, select and adjust 
the log to suit the requirements of the end product.
SCA also operates planing mills, painting facilities and impregna-
tion plants, and is engaged in the further processing of by-prod-
ucts as well as distribution to the building materials trade in the 
Nordic region and France.
Demand for solid-wood products was very strong in all global markets in the first  
half of 2022. Circumstances changed as interest rates and inflation increased, but even 
with weaker economic conditions SCA’s wood products maintained a strong position.  
Climate, sustainability and energy efficiency are compelling arguments to choose wood.
Strategy
•	 Strengthen SCA’s integrated value chain – the 
most valuable part of the tree is the sawlog
•	 Continued profitable growth kept in balance with 
access to raw materials and by developing the 
business offering for both the building materials 
trade and for industrial customers with high 
demands for customized timber
•	 Well-invested plants with world-class efficiency 
and competitiveness
Share of Group 2022
Financial key figures
SEKm
2022
2021
Net sales
6,753
7,080
EBITDA
2,079
2,968
EBITDA margin, %
30.8
41.9
Operating cash flow
1,861
1,978
Strategic capital expenditures
0
-
Capital employed
3,605
3,746
Return on capital employed, %
48.5
76.6
Deliveries, solid-wood products, thousand m3
2,022
2,069
Average number of employees
939
968
Net sales1)
EBITDA
Capital employed
Number of employees
SEK 6,753m
SEK 2,079m
SEK 3,605m
939 employees
25%
20%
3%
28%
1)	Before elimination of intra-Group sales.
 
Timber from SCA’s slow-growing forests in northern Sweden is strong and attractive. 
It is suitable for visible wood products such as flooring, wood panel and furniture.
Wood
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SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
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Other

Sawmills
Munksund, Piteå
Capacity: 400,000 m3/year 
Rundvik, Nordmaling 
Capacity: 320,000 m3/year 
Bollsta, Kramfors 
Capacity: 560,000 m3/year
Tunadal, Sundsvall 
Capacity: 600,000 m3/year 
Gällö, Bräcke 
Capacity: 360,000 m3/year 
Wood processing and 
distribution
Planed products capacity:  
600,000 m3/year 
Distribution to building materials 
trade:  
Scandinavia | France
Customized products
The slow-growing wood from northern Sweden has a high pro-
portion of heartwood and small knots, making it suitable for 
­visible wood applications, interior use and products subject to 
high quality standards, such as interior and exterior cladding. 
SCA has chosen to focus in particular on the wood industry and 
building materials trade, market segments where these charac-
teristics are in demand and that offer the best prospects for 
­profitable growth. 
As a supplier to the wood processing industry, SCA manufac-
tures customized products suitable for further processing by its 
customers. SCA’s customers are mainly manufacturers of furni-
ture, doors, windows, flooring and roofs.
For the building materials trade, SCA delivers processed prod-
ucts, ready to be offered to consumers, and advanced distribu-
tion solutions. SCA supplements its own products with products 
purchased from other suppliers in order to offer a complete range 
of products. Customers mainly include building materials sup-
pliers in Scandinavia, France and the US. The products are also 
sold directly to industrial producers of timber-frame housing.
The prioritized market segments are complemented through 
transactions where the market conditions are considered to be 
best. The entire log is to generate wood products with the best 
possible profitability. 
This focus has enabled SCA to achieve high and more stable 
margins over a business cycle and it has delivered a profitable 
growth rate of about 10% per year over the past 20 years.
Investing in competitiveness
The new dry sorting line at the Bollsta sawmill began operating in 
2022, an investment of approximately SEK 600m to improve 
quality, production and cost efficiency. When the dry sorting line 
has been calibrated to full production capacity, two older dry 
sorting lines will be discontinued. Bollsta sawmill is one of SCA’s 
largest and one of Europe’s most efficient sawmills.
Bollsta sawmill utilizes the latest technology to optimize the value 
of each log. Computerized tomography, image processing and 
artificial intelligence are used to analyze each log and ensure its 
full potential is utilized. The log can then be monitored through-
out the sawmill’s various processing stages to optimize the 
­product value for customers and profitability for the sawmill.
SCA began to produce solid-wood products from contorta pine 
at the Gällö sawmill. SCA introduced this fast-growing, North 
American tree species in the 1970s and the oldest trees have 
now reached log dimensions. Contorta pine is suitable for 
­interior cladding and joinery purposes.
Increasing demand
The highly robust market for solid-wood products in 2021 con-
tinued in 2022. During the year, war, the energy crisis and interest 
rate hikes led to an economic slowdown, affecting primarily 
demand from private individuals. Many construction projects 
launched with the support of the stimulus packages during the 
pandemic are now underway and demand in the professional 
sector is thus being upheld slightly longer. 
SCA delivers approximately two million m³ solid-wood products every year.
Wood
32
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
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Strategy and operations
Board of Directors’ Report
Financial statements and notes
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Other

Market
The global market for softwood solid-wood products is 
about 350 million m³, the majority of which is used in tra-
ditional construction and renovation. Long-term demand 
is expected to grow by approximately 2% per year.
The European market for softwood solid-wood products 
amounts to approximately 100 million m³ and SCA’s 
share is approximately 2%. The market is characterized 
by a large number of mid-sized and small suppliers 
­targeting different products and geographic markets. 
Restrictions on products from Russia and Belarus in Europe and 
North America are changing delivery flows. Increased fuel and 
thus logistics costs are also changing the competitive land-
scape. Higher energy costs have impacted production costs at 
sawmills, but also the value of by-products. The excellent energy 
efficiency of solid-wood products means these are holding their 
own against less cost-effective alternatives.
Sustainable construction materials
Another factor that supports sustained high demand for sol-
id-wood products is their positive climate effect. A number of 
studies have evaluated the sustainability and climate impact 
of construction materials and construction processes. Wood 
products derived from responsibly managed forests received 
high marks. Climate and sustainability are also assigned high 
importance in the selection of materials by customers. 
Wood has a positive impact on the climate for several reasons. 
Wood products have a significantly smaller carbon footprint than 
most other construction materials, such as concrete, aluminum, 
plastic and steel. Wood is also lighter than concrete and steel, 
which reduces the environmental impact from transportation and 
handling. Lastly, wood binds carbon. When the tree grows it 
binds CO2 and this carbon remains in the wood product for a 
shorter or longer period. Given that carefully maintained timber 
houses can stand for several centuries, this carbon sink in wood 
products is significant. 90% of SCA’s solid-wood products are 
made into long-living products.
Demand for impregnated wood products for wooden decks and terraces is growing.
Wood
33
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
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Strategy and operations
Board of Directors’ Report
Financial statements and notes
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Other

Strong performance  
and new pulp mill 
commence operations
PULP
 
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SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
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Other

Share of Group 2022
SCA manufactures bleached softwood kraft pulp and 
chemi-thermomechanical pulp (CTMP). The pulp mills also pro-
duce green electricity, tall oil and turpentine, as well as district 
heating to the Sundsvall and Timrå district heating grids. 
Leading kraft pulp manufacturer
The Östrand pulp mill is world leading in terms of quality, cost 
efficiency and environmental performance. The mill’s main focus 
is pulp for tissue, but it also delivers pulp for board and publica-
tion paper, together with specialty products, such as pulp for 
filter manufacturing.
Softwood kraft pulp made of fiber from northern Sweden is 
highly valued for its good strength properties. In tissue, it is often 
combined with pulp based on deciduous trees, such as birch or 
eucalyptus. Different types of pulp contribute to different proper-
ties in the final paper. Since softwood kraft pulp contributes to 
strength, it cannot easily be replaced by pulp produced from 
other wood sources and with other pulp characteristics.
Production and deliveries for the Östrand pulp mill remained at a stable,  
high level while the market was robust, which yielded the highest ever earnings.  
The new pulp mill in Ortviken began operating toward the end of the year. 
Strategy
•	 Develop the position as premium supplier – 
quality and service – for tissue manufacturers
•	 Develop a position as leading supplier of chemi-­
thermomechanical pulp (CTMP) from the 
­Ortviken site
•	 Develop a plan for continued expansion of soft-
wood kraft pulp capacity 
•	 Maximize the value of green products such as 
electricity, tall oil, district heating, bark and lignin
Financial key figures
SEKm
2022
2021
Net sales
7,209
5,743
EBITDA
2,961
2,096
EBITDA margin, %
41.1
36.5
Operating cash flow
2,059
1,861
Strategic capital expenditures
8
112
Capital employed
9,073
8,021
Return on capital employed, %
29.0
17.6
Deliveries, pulp, thousand tonnes
864
877
Average number of employees
400
397
Net sales1)
EBITDA
Capital employed
Number of employees
SEK 7,209m
SEK 2,961m
SEK 9,073m
400 employees
26%
29%
9%
12%
1)	Before elimination of intra-Group sales.
	 The Östrand pulp mill in Timrå is the largest production unit 
	
for bleached softwood kraft pulp in the world.
Pulp
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SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
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Investment in CTMP
The Östrand mill produces approximately 100,000 tonnes of 
chemi-thermomechanical pulp (CTMP). This is mainly used 
to manufacture tissue and board. CTMP is used, for example, 
in the middle ply in liquid packaging board to provide bulk to 
the packaging. 
SCA has invested SEK 1.45bn in a facility for the production of 
300,000 tonnes of CTMP at the Ortviken industrial site. Ortviken 
had existing equipment and infrastructure that create a highly 
competitive facility at a low investment cost. The mill began 
operating at the end of 2022, ahead of schedule and on budget. 
The production of CTMP at the Östrand site will be discontinued 
in balance with the market and volumes from Ortviken.
Stable production and continued calibration
During the year, production at the Östrand pulp mill was stable 
and the plant maintained world-class competitiveness. The opti-
mization of the Östrand mill is continuing as bottlenecks are 
identified and measures are taken using an approach that is 
characterized by continuous improvements. Investments were 
made during the year in a CNCG boiler that will reduce chemical 
costs and reduce the risk of emissions into the air of harmless, 
but odorous substances from production. 
The modern mill has significant potential to produce specialty 
products and products with specific properties. One such 
product with healthy demand and profitability is pulp for various 
types of filter products. New products are continually being 
developed.
The production of green products, such as tall oil and green 
electricity, is important for the mill’s profitability and for the 
­efficient use of the plant and raw materials. 
Good pulp market
Demand for pulp was high during the year. Demand weakened 
slightly toward the end of the year, as a result of the economic 
slowdown resulting from the war and energy crisis in Europe, 
but this trend was offset by strikes and production disruptions 
among competitors.
Europe remains SCA’s core market, but with increasing produc-
tion volume SCA has grown as a supplier to US customers and 
commands a stable presence on the US east coast.
Demand for tissue products is growing worldwide and tissue  
is a prioritized market segment for SCA.
Pulp
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SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
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Market
The global market for northern bleached softwood kraft 
pulp (NBSK) is approximately 14 million tonnes. Long-
term demand is expected to grow by approximately 
1–2% per year. SCA’s share of the global market for 
market pulp amounts to 6%, and Östrand is the largest 
mill. 
The global market for chemi-thermomechanical pulp 
(CTMP) is just over 4 million tonnes. Long-term demand 
is expected to grow by approximately 2–3% per year. 
Following the ramp-up of the new CTMP plant in Ort-
viken, SCA’s share of the global CTMP market for market 
pulp is expected to amount to approximately 7–8%. 
Östrand pulp mill, Timrå
Production capacity:
Bleached softwood kraft pulp (NBSK): 
900,000 tonnes/year. The pulp is used in, for example, 
tissue, packaging, publication paper and filters.
Chemi-thermomechanical pulp (CTMP):  
300,000 tonnes/year (2025). The pulp is used in,  
for example, packaging and hygiene products. 
Green electricity: 1.2 TWh/year at full pulp production 
capacity.
Complementary products: Tall oil, turpentine,  
district heating, biosludge, ash.
The production of chemi-thermomechanical pulp (CTMP) 
at the Ortviken site began in 2022, ahead of schedule.
Pulp
37
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
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New paper machine  
enhances production  
and quality
CONTAINERBOARD
 
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SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
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Share of Group 2022
Containerboard
Containerboard is the outer and inner layer of corrugated board, 
which is used in the manufacture of packaging. The vast majority 
of SCA’s production is fresh fiber-based containerboard, known 
as kraftliner, made at the Munksund paper mill in Piteå and the 
Obbola paper mill in Umeå.
SCA is a leading producer of kraftliner, the third largest in Europe 
and the largest independent supplier, with well-invested and 
competitive plants. The product portfolio includes a range of 
specialty products, such as kraftliner with a white printable sur-
face (white-top) and wet-strength kraftliner. Wet-strength kraft-
liner is used for packaging with particularly high demands, for 
example packaging for food or heavy goods. The slow-growing 
wood raw material from northern Sweden provides strength and 
is well suited for high-quality packaging that uses materials 
­efficiently. The core market is Europe.
SCA’s new paper machine in Obbola began operating ahead of schedule.  
The project was completed despite the pandemic and logistics disruptions.  
In addition to a substantial increase in production, the machine offers  
completely new opportunities for process control and product quality.
Strategy
•	 Capitalize on the full potential of the new paper 
machine, particularly new opportunities in 
­digitalization and artificial intelligence, for quality, 
competitiveness and profitability
•	 Continue the initiative to offer the market’s best 
service and product range as an independent 
supplier
•	 Continue investments in specialty products, 
such as white-top and wet-strength kraftliner
Financial key figures
SEKm
2022
2021
Net sales
6,823
5,456
EBITDA
2,852
1,761
EBITDA margin, %
41.8
32.3
Operating cash flow
2,226
1,494
Strategic capital expenditures
2,634
3,022
Capital employed
10,704
8,989
Return on capital employed, %
63.6
30.0
Deliveries, kraftliner, thousand tonnes
773
823
Average number of employees
702
704
Net sales1)
EBITDA
Capital employed
Number of employees
SEK 6,823m
SEK 2,852m
SEK 10,704m
702 employees
25%
28%
10%
21%
1)	Before elimination of intra-Group sales.
	 The new paper machine at the Obbola paper mill began operating in 2022.  
The investment was completed on budget and operations started ahead of schedule.
Containerboard
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SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
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New paper machine ahead of schedule
Toward the end of 2022, the new paper machine at the Obbola 
paper mill began operating. The investment was completed on 
budget and ahead of schedule, despite major challenges, such 
as the coronavirus pandemic and the global disruption to supply 
and logistics chains. Full production was maintained at the site 
throughout the investment period.
The investment means the production capacity at the Obbola 
paper mill increased from 450,000 to 725,000 tonnes per year. 
The new paper machine is the largest and most modern of its 
kind and provides a completely new technology platform for 
manufacturing specialty products and for product and process 
development.
In addition to a new paper machine, the investment also encom-
passes increased pulp production, improved recovered paper 
handling, as well as expanded biological wastewater treatment 
and other environmental actions. The chemical recycling pro-
cess will be entirely bio-based and the mill’s fossil fuel require-
ment will be almost zero.
Strong market during the year
During the year, demand remained high for containerboard and 
the market was strong. Changes to economic conditions in 
Europe, as a result of the war, led to increased energy prices 
and rising interest rates, which led to decreased consumption 
and thus a reduced need for packaging paper toward the end 
of the year. 
However, the decrease in demand is from a high level and the 
assessment for the long-term trend for packaging material 
demand remains positive. 
More stringent requirements for printing surface
In a weaker market, customer requests other than price are given 
greater weight. Demand for specialty products continues to 
grow. In particular, requirements are increasing for good printing 
quality. Transport packaging with good printing becomes part of 
a product’s marketing and thereby allows customers to develop 
their business offering.
The white-top kraftliner manufactured at Munksund paper mill 
meets high customer requirements and demand for it is healthy.
Reliable supply
As a producer of fresh fiber-based packaging paper in northern 
Sweden, the impact of the turbulence in the energy markets is 
limited. SCA largely uses its own and local wood raw material. 
The processes are self-sufficient in heat, and to a large extent, 
also electricity. In addition, SCA’s plants are located in a region 
with stable and high electricity production.
The production of electricity and energy in and to the plants is 
entirely fossil-free and has a minimal climate impact. SCA’s 
products are recycled and used to a high degree in the manufac-
ture of new products. They are non-toxic and have no long-term 
burden on ecosystems on land or at sea.
The new paper machine provides entirely new opportunities 
for product development and process control.
Containerboard
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Market
Kraftliner
The global market for containerboard is more than 
170 million tonnes, of which kraftliner accounts for about 
35 million tonnes. Kraftliner is manufactured from fresh 
fiber, in contrast to the larger range of testliner, which is 
manufactured from recovered paper. The predominant 
kraftliner is unbleached, meaning brown, though kraft-
liner is also manufactured with a white-top coating, 
which has a market share of just over 10%. Long-term 
demand for kraftliner is expected to increase by approxi-
mately 2% per year. 
The European market amounts to more than 6 million 
tonnes. SCA is the largest independent supplier of fresh 
fiber-based kraftliner in Europe.
Containerboard
Obbola, Umeå
Production capacity: 725,000 tonnes/year (2026)
Product range: Brown kraftliner, for consumer 
and transport packaging with a focus on lightweight 
and standard grades.
Munksund, Piteå 
Production capacity: 415,000 tonnes/year
Product range: Brown and white-top kraftliner, for 
­consumer and transport packaging. Specialized in 
heavy-duty, wet-strength and white-top grades.
Containerboard, packaging paper, predominantly used for transport packaging. 
The packaging can be designed for a range of different applications.
Containerboard
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SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
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Transition to renewable 
drives growth
RENEWABLE ENERGY
 
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SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
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SCA an important energy supplier
Russia’s invasion of Ukraine has affected all parts of Europe’s 
economy, but the greatest impact has been felt on energy. A 
series of short-term measures are being taken in the EU and in 
individual European countries to meet energy needs over the 
next 12 months and, in the longer term, to move away from 
dependency on Russian oil and Russian gas. 
Since a significant portion of Europe’s electricity production is 
based on gas and oil, there is also great concern about the avail-
ability and cost of electricity.
Electricity and all types of fuel have experienced sharp price 
increases and volatile markets in 2022.
However, SCA is in a good position to contribute to Europe’s 
electricity and energy supply by producing electricity in its own 
industrial processes and with wind power on its own land, as well 
as the production of fuel based on residual products from the 
forest and industry. From the beginning of the year, Renewable 
Energy will be reported as a separate segment. 
Own investments in wind power 
As Europe’s largest private forest owner, SCA has many areas 
of land with favorable wind conditions. A significant expansion 
of wind power is currently taking place. At the end of 2022, 
the annual production capacity of wind power production on 
SCA’s land was 7.2 TWh, equivalent to about 20% of the total 
wind power production in Sweden. By the end of 2023, capacity 
is expected to be 9 TWh per year. 
SCA also produces a significant amount of its own green elec-
tricity, which amounted to 1.4 TWh in 2022, corresponding to 
approximately 1% of Sweden’s electricity consumption. Östrand 
pulp mill alone sells about 0.5 TWh per year.
Since 1997, SCA has prepared and developed wind power 
­projects for investors who are interested in investing in green 
energy. As the land owner, SCA receives a ground lease pay-
ment, usually based on revenue from the sale of the green 
­electricity produced. 
SCA is now also making its own investments and becoming an 
owner of wind power. In 2022, the company acquired its first 
wind farm by purchasing 36 turbines in Markbygden, Piteå 
Municipality. Production technology for wind power is well-­
developed and demand for renewable electricity is stable and 
healthy, which means wind power investments can successfully 
compete with other investment alternatives. 
In particular, there are good opportunities for profitable invest-
ments in repowering, when all or parts of older wind turbines are 
replaced with new alternatives, which are more productive and 
profitable. New wind turbines offer a substantial increase in 
SCA can see growth and business opportunities in wind, bioenergy and liquid  
biofuels in the short and long term. Growing demand for renewable and climate-­
friendly energy combined with the need for alternatives to Russian oil and gas provide 
SCA with good potential to make a further contribution to the energy transition. 
Strategy
•	 Develop new position as a supplier of biofuels 
and green chemicals
•	 Prepare for increased production of biofuels  
and green chemicals adjacent to SCA’s own 
industrial plants
•	 Maximize wind power on SCA’s land and  
develop viable projects for investors
•	 Invest in wind power production on SCA’s land  
through acquisitions of older wind farms, own 
investments in new projects and repowering 
•	 Optimize production, product portfolio and 
­profitability in the biofuel business
	 Onshore wind is now completely commercial and is the cheapest 
method of producing electricity on a large scale.
RENE WABLE ENERGY
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SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
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Leading supplier of biofuels
­production compared with their older counterparts and much 
of the infrastructure can continue to be used – roads, cables, 
connection points, etc.
SCA has set as a long-term goal that wind power production on 
the company’s own land will amount to 11 TWh in 2025, equiva-
lent to the electricity needed to electrify all the passenger cars in 
Sweden. The availability of green electricity in northern Sweden 
is one important stimulus behind the current establishment of 
new businesses, such as green steel production, hydrogen 
­production and electrofuels.
Production of biofuels
Biofuels made from sustainable raw materials play a key role in 
the climate transition. Many countries require the admixture of 
biofuel to vehicle and aviation fuel, and demand will exceed 
supply for the foreseeable future.
SCA is conducting an ongoing initiative in the area of liquid bio-
fuel. SCA is investing SEK 600m in a biorefinery that St1 is con-
structing at its facility in Gothenburg. SCA’s ownership stake is 
one quarter. The biorefinery will produce advanced liquid bio-
fuels, such as renewable HVO diesel and biojet fuel. SCA is 
making its raw material resources available in the form of tall oil. 
The total production capacity of the biorefinery will be 200,000 
tonnes of biofuels, which is equivalent to the total fuel require-
ments of domestic flights in Sweden. It will be commissioned 
in the second half of 2023. 
A major biofuel investment is being prepared by SCA at the 
Östrand pulp mill. An environmental permit was received to pro-
duce biofuels on two production lines: one using black liquor, 
which is a product from Östrand’s kraft pulp production, and 
one using solid biomass, such as sawdust and bark. While the 
biorefinery in Gothenburg is based on well-tested and commer-
cial technology, the Östrand biorefinery will focus on technology 
that is still under development. 
Land reclamation began in the autumn adjacent to the mill to 
enable the construction of a biorefinery and other operations at 
the Östrand pulp mill. 
Leading supplier of biofuels 
SCA is one of the largest suppliers of forest-based biofuels in 
Sweden – unrefined residual products from the forest and 
industry as well as refined fuels in the form of pellets. 
Russia’s invasion of Ukraine has led to a shortage of fuel in 
Europe and prices and demand have increased.
In 2022, SCA produced 11.4 TWh of bioenergy. 9.0 TWh was 
used in SCA’s own plants and 2.0 TWh was delivered to external 
customers. Of the external deliveries, 1.0 TWh consisted of pro-
cessed biofuels, meaning wood pellets, and 1.0 TWh was unpro-
cessed biofuels, meaning bark, sawdust and by-products from 
harvesting. SCA’s production capacity at fully or partially owned 
plants is more than 300,000 tonnes of pellets per year. In 2022, a 
decision was taken for a new production facility for pellets in 
Rundvik.
All timber that can be sawn is used for solid-wood products. 
The wood raw material that cannot be used for solid-wood prod-
ucts is used to produce paper and pulp. The products from 
forest operations and industry that are not suitable for use as 
fresh fiber are used in energy production. A large proportion of 
the bioenergy is used at SCA’s own plants and contributes 
to SCA’s very small carbon footprint.
2.0 
TWh
0.4 
TWh
E
n
e
r
g
i
9.0 
TWh
Energy for SCA’s  
own operations
External deliveries 
Wood pellets and unrefined residual products
Externally sold electricity
11.4 
TWh
Bioenergy produced by 
SCA 2022
RENE WABLE ENERGY
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Market
Demand for renewable energy in Europe and in Sweden 
is expected to increase sharply over the coming years. 
The major industrial ventures in northern Sweden are 
expected to lead to a significant increase in demand for 
electricity in the region. Demand for other renewable 
energy sources, such as biofuel and liquid biofuel, is 
expected to increase sharply. 
The equilibrium of the European energy markets was 
­disturbed in 2022. Throughout the year, there were high 
prices for CO2 emission allowances, high oil prices, and 
when gas supplies from Russia were severely reduced, 
this led to very high electricity prices across Europe. The 
impact on SCA’s operations was insubstantial as own 
electricity consumption was in line with the in-house 
­production of green electricity. 
Pellets facilities
SCA Bionorr, Härnösand
Capacity: 180,000 tonnes
SCA Tunadal
Capacity: 12,000 tonnes
Integrated with Tunadal sawmill.
SCA Stugun
Capacity: 24,000 tonnes 
Integrated with Stugun planing mill.
SCA Rundvik
Capacity: 25,000 tonnes 
Under construction, production start 2023.
Integrated with Rundvik sawmill.
Partnership and responsibility for  
raw material supply and sales:
Bioenergi i Luleå AB 
Capacity: 100,000 tonnes
[ Caption ]
SCA’s production capacity for fuel pellets in fully and partially 
owned plants is more than 300,000 tonnes and demand is high.
RENE WABLE ENERGY
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Own logistics  
important in a time of 
uncertainty
LOGISTICS
 
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	 SCA’s RoRo vessels operate scheduled routes between terminals in northern Sweden, 
in the UK and on the continent. They offer cost-efficient shipping in both directions.
The forest industry is a logistics-intensive industry. Logistics 
account for about 20% of SCA’s cost base. To optimize freight 
flows, SCA has set up its own logistics systems in both raw 
material supply and the distribution of finished products. In 
forest operations, SCA is one of Sweden’s largest users of rail 
transport, with its own transportation system from inland forests 
to industrial sites on the coast. SCA’s railway system for the 
transportation of round timber is the largest in Europe.
Raw-material transportation
Timber is taken from forests throughout northern Sweden. 
All timber transportation starts on trucks. If the distance to the 
factory is short, the timber is driven directly by truck. If the dis-
tance is greater than about 100 kilometers, the timber is driven 
to a rail terminal and then transported to the factory by rail. 
The SCA unit that uses the most timber is the Östrand pulp mill, 
which is largely supplied by rail. Timber can also be transported 
from Southern and Central Sweden at a competitive cost by 
using efficient rail transportation. 
Timber imported to SCA’s plants, mainly from the Baltic region 
where SCA owns forest, is shipped by sea. SCA’s timber imports 
are very modest at present.
Efficient road transport by truck is economic and environmen-
tally friendly. Timber trucks with a 74-tonne capacity are now 
permitted on Swedish roads. These trucks can transport 15% 
more timber than previously allowed, while reducing environ-
mental impact. A limited, but growing, part of the road network 
in northern Sweden is available for 74-tonne trucks. SCA is 
working to make a greater number of roads available for these 
more efficient trucks. SCA swaps timber with other forest 
product companies to reduce transport distances to industry 
and thereby reduce costs and emissions as much as possible.
SCA is working together with its suppliers to drive the develop-
ment of electric trucks and forklifts.
Delivery of finished products
The turbulence experienced by global logistics chains in recent 
years continued into 2022. This year, the impact of Russia’s 
­invasion of Ukraine was also felt with increased fuel costs and 
new transport patterns. 
With these swift changes in market conditions, it has been 
important to have our own logistics organization and control over 
transportation. This helped to devise fast and flexible solutions 
for customers and SCA’s business areas in response to rapidly 
changing conditions.
Most of SCA’s finished products are transported by ship. Pulp 
and solid-wood products are transported from the industrial 
sites using bulk carriers and containers in our own vessels and 
vessels from other shipping companies. The ongoing expansion 
of the ports in Sundsvall and Umeå allows for larger vessels and 
more efficient container handling. Several of SCA’s sawmills also 
have their own ports for shipment at the production plants.
Again in 2022, there were major disruptions to global transport 
flows, particularly for containerized freight. There has also been 
a significant lack of capacity for trucks and other transportation, 
as well as disruptions to rail and barge freight. SCA’s logistics 
organization has successfully countered a large portion of these 
disruptions and cost increases.
SCA’s RoRo vessels are being optimized to transport kraftliner 
and return with input materials to SCA’s industries. These ves-
sels operate scheduled services and timetables between termi-
nals in Umeå, Sundsvall, Kiel, Rotterdam and London, but also 
stop off at other ports during their northbound journey to provide 
competitive logistics services for external freight. The use of this 
transportation system enables SCA to maintain a high level of 
customer service at a low transportation cost and with little 
environ­mental impact. 
Work is continuing to reduce environmental risks and environ-
mental impact from SCA’s own vessels, including the use of 
biobased and biodegradable grease and oil.
Within Sweden, SCA operates rail shuttles between Piteå, Umeå 
and Skövde for deliveries to customers in southern Scandinavia. 
The same block trains transport production materials northbound.
Logistics is a core operation for a forestry company. Raw materials have to  
be delivered to production facilities and products have to be shipped to customers  
worldwide. Due to its own logistics organization, SCA has been able to  
counter market turbulence and a strong increase in costs.
LOGISTICS
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SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
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SCA’s platform for 
sustainable development
Sustainabilit y – Group targe ts
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Sustainability is an integrated part of all SCA activities.  
In prioritized areas, the company has established long-term  
Group targets to be achieved by 2030. 
Fossil-free  
world
Valuable  
forests
Efficient use of 
resources
Sustainable  
development
SCA generates climate 
benefits by growing forests 
that bind CO2, renewable 
products that replace fossil-
based products and 
lowering emissions from 
its own value chain.
SCA’s forests should at 
least be as rich in 
biodiversity, nature 
experiences and 
raw material in the future 
as they are today.
All wood raw material that 
can be sawn is used for 
wood products. Timber that 
is not used for wood 
products becomes paper 
and pulp. Anything 
unsuitable for use in fiber 
products is used for energy.
With the force of the 
forest, we contribute to a 
sustainable future. 
Group target 2030
Increase SCA’s climate 
­benefit from 10 to 15 million 
tonnes of CO2 per year.
Group target 2030
100% of wood raw material 
to come from responsibly 
managed forests.
Group target 2030
Zero waste. 
Group target 2030
SCA contributes to 
sustainable development in 
the communities in which 
we operate.
Profitable growth
Long-term profitable growth is a prerequisite for sustainable development. 
Group target 2030: Leading total shareholder return.
Value-based culture
We live according to our core values – responsibility, respect and excellence 
Group target 2030: An accident-free and healthy SCA where all employees  
comply with SCA’s Code of Conduct. 
Sustainable development and a long-term approach
For forest owners in northern Sweden, a long-term approach is 
the natural perspective. A seedling takes up to a century or more 
to grow into a mature tree and then – in an efficient processing 
chain – becomes solid-wood products, fiber products and bio-
energy, products that can replace fossil materials and fuels.
In other respects, such as biodiversity, perspectives must be 
even longer and consider processes that extend over several 
centuries. One tree out of five in SCA’s forests is left to live and 
die a natural death, become food for insects and wood-decay 
fungi, decompose, and become part of the long-term circular 
ecosystem.
Sustainability is an important aspect in each of SCA’s activities. 
In crucial areas, SCA can contribute to sustainable development, 
but the company must also strive to reduce any environmental 
impact from its operations. It is important to have a holistic view 
in order to find an optimal balance between different sustain-
ability priorities.
The sustainability platform describes SCA’s entire business. 
To deliver progress in sustainability, the company has adopted 
Group targets in particularly important areas where SCA can 
make a key contribution toward sustainable development.
These long-term targets will guide long-term priorities and be 
achieved by 2030.
 
SCA forest land shall hold at least as much timber,  
biodiversity and experiences in the future as it does today.
Sustainabilit y – Group targe ts
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Increasing production  
of renewable energy
FOSSIL-FREE WORLD
 
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SCA’s climate benefit
More than fossil emissions from all of Sweden’s passenger cars
Climate benefit in million tonnes of CO2e
2022
2021
Net uptake in own forest
5.4
5.4
Products, substitution effect
5.4
5.8
Value chain (Scope 1, 2 and 3)
–0.7
–0.7
Total climate benefit
10.1
10.5
The table shows SCA’s climate benefit in accordance with the model 
described by Holmgren and Kolar, see sca.com
2021
2022
The change between years is discussed  
in Sustainability facts.
The climate is the key issue of our time. In order to mitigate the trend toward  
a warmer and more chaotic climate, fossil CO2 emissions must be reduced. The 
fastest and most effective way to reduce these emissions is to replace fossil energy 
with renewable – renewable electricity, bioenergy and biofuels. 
Forest – more than a carbon sink
The forest makes a substantial contribution to combating climate 
change. Through photosynthesis, the forest binds CO2 from the 
atmosphere and stores it in the tree. When the tree is harvested, 
at least two new trees are planted to replace it and the harvested 
tree is used to make products that help society reduce the use of 
products with a large carbon footprint.
An intensive discussion is taking place, particularly in the EU, 
about increasing the role of the forest as a carbon sink. The rea-
soning is that the forest can bind CO2 from the atmosphere as it 
grows, which is then stored in the living biomass. Forest owners 
are to be encouraged to reduce harvesting and instead store 
carbon in standing forest. Such a policy would lead to a gradual 
reduction in forest growth, given that growth slows as trees age. 
The forest would also become more susceptible to risks such as 
storms, fire or insect damage, since older trees are less resilient 
to these threats than younger trees. Sooner or later every tree 
dies and decomposes, and the bound carbon is released back 
into the atmosphere. Using forest as a carbon sink is therefore 
a short-term, uncertain, and increasingly risky climate policy.
Bio-based carbon reduction – key to climate efforts
In 2022, SCA contributed climate benefit of 10.1 million tonnes of 
CO2. 5.4 million tonnes of this amount arose when products with 
a carbon footprint were replaced by products made from, or 
based on, biomass from the forest. 
A reduction in harvesting would entail a decrease in the flow of 
renewable raw materials. The production of solid-wood prod-
ucts, pulp, paper and bioenergy would therefore decrease. At 
the same time, the needs met by these products would still exist. 
This would lead to an increase in the use of products that are a 
greater burden on climate and the environment – forest products 
from other countries with less sustainable forestry practices, and 
products such as concrete, aluminum, plastic, and fossil fuels. 
Using forest as a carbon sink does not even offer short-term 
benefits for the climate since the increased climate burden from 
alternative consumption exceeds the net sequestration of CO2 in 
the forest as a carbon sink.
Effective work to combat climate change must focus on reducing 
fossil CO2 emissions and leaving fossil carbon in the ground, not 
on compensating for continued fossil CO2 emissions through the 
short-term storage of CO2 in aging forests.
In addition to the climate benefit of the forest and forest prod-
ucts, there is also the climate benefit from increased wind power 
production on SCA’s land.
Read more on pages 157–159.
	 A tree binds carbon dioxide when it grows. The 
more it grows, the more carbon dioxide it binds.
SCA’s  
climate benefit
10.1
million tonnes  
of CO2
–1
0
1
2
3
4
5
6
7
Emissions
in the
value chain
Product
substitution
Net uptake
of forest
Mtonnes CO2eq
Fossil-free world
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Systematic effort  
to promote biodiversity
VALUABLE FORESTS
 
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Responsible forest management combines high levels of production of  
valuable renewable raw materials with extensive protection of the forest’s  
other values and ecosystem services – biodiversity, reindeer herding,  
archaeological sites, nature experiences and much more.
Long-term planning
Forests in northern Sweden grow slowly, which requires a per-
spective extending for more than a century when planning forest 
operations. The forests are managed to provide higher growth 
and, over time, greater harvesting volumes. Since SCA began to 
systematically measure its forest at the end of the 1940s, 
standing volume – the volume of living, growing trees – has 
increased by more than 60% and growth has more than doubled. 
During these 70 years, SCA has also harvested more timber than 
what is currently standing on the company’s land.
This development has taken place because SCA has spent many 
years managing its forest with a long-term and conscientious 
approach. Standing volume, growth and harvesting potential 
will continue to increase. Correctly managed, the forest is a per-
petual resource.
Ecological landscape planning
The objectives of SCA’s forest operations extend beyond timber 
production. The most important sustainability target in the com-
pany’s forest management is the protection of biodiversity. The 
conditions should be in place for all flora and fauna on SCA’s 
land to enable them to continue living there in the future. This 
requires a variety of habitats in SCA’s forests that can offer 
space for all of the forest’s flora and fauna.
SCA’s entire forest holding has been subject to ecological land-
scape planning for many years. The planning identifies forest 
areas with the highest conservation values, such as the abun-
dance of Red-listed species. These forests are set aside and left 
untouched or managed solely to promote conservation values. 
Such areas are known as voluntary set-asides. In forests with 
intermediate conservation values, land use is combined with 
measures to preserve or develop conservation values. These are 
called forests with combined targets. In forests with some, but 
more limited, conservation values, we apply adapted retention. 
This could mean that harvesting is adapted to the needs of a 
specific species by leaving a larger share of the forest as conser-
vation patches and eternity trees. 
The remaining parts of SCA’s forests are managed with basic envi-
ronmental consideration, so called basic retention, where conser-
vation patches, buffer zones and trees are left after all harvesting 
and other forestry measures. No harvesting takes place on non-­
productive forest land or land that is not classified as forest land. 
Preserve and create new habitats
This overarching work is combined with focused efforts to pre-
serve and create new habitats for species for which the company 
believes it has a particular responsibility, SCA’s protected spe-
cies. These 203 species have varying needs. Some require an 
undisturbed habitat, while others want major disturbances, such 
as fire. SCA is now setting targets for the size of the protected 
species’ habitats that it will safeguard in the years ahead.
One tree out of five on SCA’s productive forest land is left to live, 
to die a natural death, and ultimately to become a part of the 
­natural circular ecosystem.
Responsible forest management
Through responsible fiber sourcing in combination with the protection of biodiversity
Responsible fiber sourcing
Distribution of areas with nature conservation 
measures1)
Total
forest land 
2.6 million ha
of which 77% 
productive 
forest land
Certified forest management
60%
Chain of custody certified with 
SCA retention
9%
Chain of custody certified
31%
Basic retention (~15% retention)
67%
Voluntary set-asides (100% retention)
5%
Combined targets (>50% retention)
2%
Adapted retention (15–30% retention)
2%
Non-productive forest land  
(100% retention, protected)
10%
Non-forest land (not cultivated)
13%
Read more on pages 160–162.
100 percent of the wood raw material is chain of custody certified, 
the minimum requirement under the FSC Controlled Wood Stan-
dard. 69 percent is harvested in accordance with higher nature 
­conservation standards.
The level of on-site retention indicates the balance between production 
and nature conservation, or in certain cases social values. For example, 
>50% retention leaves >50% of the stand is untouched after harvest.
1)	Percentage of area set aside, managed with varying levels of retention or 
consisting of non-forest land, of the total landholding in Sweden.
	 SCA works to preserve biodiversity in the company’s forests.  
SCA protects and creates new habitats for sensitive flora and fauna.
Valuable forests
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EFFICIENT USE OF RESOURCES
Doing more with less
 
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SCA is striving to reduce waste and resource consumption throughout  
its entire value chain and to raise the value of products and waste streams.  
This improves profitability and reduces impact on the climate and the environment.
Waste streams are utilized
Half a century ago, sawdust was a disposal problem. Waste from 
the production of wood products was sent to landfills or inciner-
ated without utilizing the energy released. Later the sawdust 
started to be used as fuel in boilers that produced heat to dry 
timber at the sawmills, and since the 1990s sawdust has been 
used as a raw material in the production of fuel pellets.
Residual products are increasingly utilized. Soda recovery 
boilers at kraft pulp mills have become more efficient and now 
produce not only all the mill’s heating and electricity, but also 
supply energy and electricity to the surrounding community. 
By-products such as turpentine and especially tall oil have 
become valuable input goods and important in the transition 
to fossil-free fuels and chemicals. Studies are taking place into 
whether black liquor can be used as a raw material for advanced 
products instead of being used as fuel.
Bark, sawdust, clearcut residues, roadside brushwood, 
biosludge and a number of other residual products and unuti-
lized resources are now used as raw materials in processes that 
are increasingly advanced and in demand. This development has 
largely been driven by efforts to combat climate change and the 
need to find alternatives to oil and gas.
Reduced costs and increased value
Throughout its entire value chain, SCA is working systematically 
to reduce resource consumption and increase the value of the 
products it manufactures. These improvement initiatives do not 
only concern production but also planning, logistics and all other 
elements of the company’s business. The company’s central 
research unit, SCA R&D Centre, and SCA’s operations are also 
jointly conducting developments to increase the efficiency of 
processes and develop products in SCA’s various segments.
A significant portion of SCA’s innovation and development work 
now also concerns taking greater advantage of waste streams 
and finding ways to increase product values. For example, a 
study is investigating ways to use residual products from pulp 
production as food for insect larvae, which can in turn be used 
as a source of protein.
Timber
Sawmill
Pulp & paper mills
Pulp is refined into products
Sawdust is refined into pellets
Bark and fuel chips become energy
Green electricity, tall oil, and district heating
By-products     Innovations to develop new applications
 
Chips
Other by-products
Solid-wood products
E
n
e
r
g
y
Nothing goes to waste in the sawmill
– example of efﬁcient use of resources
Read more on pages 163–166.
	 What used to be seen as residual products are now valuable raw materials. Bark is used to produce  
heat and electricity, and may become a raw material for biofuels and green chemicals in the future.
Efficient use of resources
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A good corporate citizen
SUSTAINABLE DEVELOPMENT
 
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SCA contributes to sustainable development in the communities  
in which the company operates. Through collaboration with others –  
customers, suppliers, local communities, NGOs – sustainability  
initiatives can gain better focus and be more effective.
Responsibility for people and the community
The previous wording of this sustainability target also included 
the company’s internal health and safety initiatives. This has 
been highly prioritized and although the trend has been positive 
for several years, focused efforts are continuing to ensure that all 
employees can return home from work healthy and in one piece, 
every day. 
SCA is now transferring work with employee health and safety to 
SCA’s value-based culture. Reporting of this work will remain at 
the same level as previously.
This change will provide a clearer focus on SCA’s impact and 
engagement in the community in which the company operates.
More than half back
Business operations naturally have a major impact on the com-
pany’s surroundings. SCA purchases timber from private forest 
owners, services from local contractors, pays salaries to 
employees, dividends to shareholders and performs many other 
business transactions that affect the surrounding community. Of 
all SCA’s payments in 2022, more than half were to recipients in 
the four northernmost counties of Sweden, where SCA has most 
of its forests and its industrial operations.
Viable local communities
SCA makes an active contribution to vibrant local communities 
and to regional development. SCA’s operations generate direct 
and indirect values. In addition, SCA provides income and expe-
riences from hunting, fishing, recreation and local associations. 
SCA supports local sports and culture associations and clubs to 
help provide meaningful leisure activities and attractive local 
communities.
Collaboration
SCA collaborates with a number of stakeholders in several areas. 
Together with customers, the company investigates and opti-
mizes climate and environmental effects across supply chains 
that concern multiple operators. SCA seeks to collaborate with, 
and contribute to the development of, companies that can take 
full advantage of waste and secondary streams from the compa-
ny’s production activities or utilize other company assets. 
SCA collaborates with non-profit organizations to develop the 
company’s sustainability agenda. Particularly in education, 
research and business development, SCA is contributing to 
a rich and sustainable future.
 
SCA’s forests provide employment through forest operations and industrial production. But they also offer a 
basis for other operations. They are, not least, a source of recreation and experiences, such as hunting.
Economic value creation 2022
The area of the circle  
represents the total 
inflow into SCA.
Payments to suppliers, including  
private forest owners
51%
Investments in future value creation  
in forests and industry
26%
Dividend to shareholders
9%
Salaries, social security costs and 
­pension provisions to SCA’s employees
10%
Taxes paid to society
3%
Other
1%
SCA is an important source of prosperity and welfare. 
The company’s operations generate economic values for 
shareholders, employees, suppliers, investors and society. 
A large portion of payments to suppliers are made to SCA’s 
local area in northern Sweden. This is particularly the case 
for purchasing wood raw material and contractors’ services.
SUSTAINABLE DE VELOPMENT
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The share and the 
shareholders
The SCA share is quoted and traded on Nasdaq Stockholm. The company’s  
market capitalization was approximately SEK 93bn at the end of the year.
SCA’s share capital comprises two classes of shares, shares of 
Class A and of Class B. Each Class A share carries ten votes and 
each Class B share carries one vote. Class A and Class B shares 
hold the same right to dividends. Both share classes are listed on 
Nasdaq Stockholm and are part of the Large Cap segment.
Share performance
At the end of 2022, SCA’s Class B share was listed at a price of 
SEK 133.40 and SCA’s Class A share at SEK 131.95, corre-
sponding to a market capitalization of SEK 93bn. SCA’s Class B 
share noted a decline of –18% during the year. During the corre-
sponding period, the index of the 30 most traded shares, OMX 
Stockholm 30, declined by –16%. The highest closing price for 
SCA’s Class B share was SEK 202.80, which was noted on April 
14. The lowest closing price during the year was SEK 130.25, 
noted on November 2. Since the distribution of Essity in 2017, 
the total return for SCA’s Class B share has been 126%, which 
compares with a total return for OMX Stockholm 30 of 46%.
Share trading
During 2022, trading on all marketplaces amounted to approxi-
mately 1,358 million (1,018) SCA shares. On Nasdaq Stockholm, 
approximately 400 (402) million SCA shares changed hands. 
Average daily trading for SCA on Nasdaq Stockholm amounted 
to approximately 1.6 million shares. During the year, the SCA 
share was also traded on other market places: 718 million shares 
on Cboe Global Markets, approximately 189 million shares on 
LSE Group, and approximately 50 million shares on other market 
places.
Ownership structure
SCA had approximately 110,000 shareholders as of December 
31, 2022. At the end of the year, some 55% (57) of the share cap-
ital was owned by Swedish investors and 45% (43) by investors 
outside Sweden. Ownership was divided among Swedish institu-
tions with 43%, foreign institutions with 35%, Swedish private 
individuals with 10% and other owners with 12% of the share 
capital. The US and Norway accounted for the highest percent-
ages of shareholders registered outside Sweden. 
Dividend and dividend policy
SCA aims to provide long-term stable and increasing dividends 
to its shareholders. When the cash flow from current operations 
exceeds that which the company can invest in profitable growth 
over the long term, and under the condition that the capital struc-
ture target is met, the surplus shall be distributed to the share-
holders. 
For the 2021 fiscal year, a dividend of SEK 3.25 per share was 
disbursed, of which SEK 2.25 was the regular dividend and 
SEK 1.00 an extra dividend. The Board of Directors proposes 
a dividend of SEK 2.50 per share for the 2022 fiscal year.
Total shareholder return, index
0
50
100
150
200
250
300
2022
2021
2020
2019
2018
2017
Index
Number of shares (millions)
50
100
150
200
250
300
350
SCA B
OMX Stockholm 30
Number of shares traded on Nasdaq Stockholm per month (millions)
Source: Nasdaq
The share and the shareholders
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SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
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SCA’s ten largest shareholders, as of December 31, 2022
Shareholders
No. of  
Class A 
shares
No. of  
Class B 
shares
Capital 
(%)
Votes 
(%)
Industrivärden
33,785,290
38,300,000
10.3
29.3
Norges Bank
8,066,000
42,446,457
7.2
9.6
AMF Pension & Fonder
2,100,000
57,653,402
8.5
6.1
Handelsbanken Pension fund
3,827,747
5,846,050
1.4
3.4
Alecta Tjänstepension
32,491,495
4.6
2.5
Vanguard
485,386
21,395,243
3.1
2.0
BlackRock
111
24,935,008
3.6
1.9
T. Rowe Price
21,820,668
3.1
1.7
Swedbank Robur Funds
16,828,548
2.4
1.3
Pensionskassan SHB Försäkringsförening
1,303,000
3,576,950
0.7
1.3
Ten largest
49,567,534
265,293,821
44.8
59.3
Other
15,014,460
372,466,674
55.2
40.7
Total
64,581,994
637,760,495
100.0
100.0
Source: Monitor by Modular Finance. Compiled and processed data from various sources, including 
­Euroclear, Morningstar and the Swedish Financial Supervisory Authority. The verification date may vary 
for certain shareholders.
Shareholder structure, as of December 31, 2022
Holding
No. of 
­shareholders
No. of 
shares
Capital 
(%)
Votes 
(%)
1 – 500
83,389
10,504,177
1.5
1.8
501 – 1,000
11,873
9,113,093
1.3
1.5
1,001 – 5,000
12,163
26,370,838
3.8
4.3
5,001 – 10,000
1,529
10,993,719
1.6
1.8
10,001 – 20,000
613
8,764,562
1.2
1.2
20,001 – 50,000
303
9,404,030
1.3
1.4
50,001 – 100,000
130
9,413,124
1.3
1.3
100,001 – 
218
555,201,786
79.1
81.3
Anonymous owners
62,577,160
8.9
5.4
Total
110,218
702,342,489
100.0
100.0
Source: Modular Finance
Share price and trading volume 2022
Shareholders by country, capital
Sweden
55%
US
18%
Norway
8%
Other
19%
Source: Modular Finance
Types of ownership, capital
Swedish institutional owners
43%
Foreign institutional owners
35%
Swedish private individuals
10%
Other
12%
Source: Modular Finance
Proposed dividend  
per share (SEK)
2.50
Share price (SEK)
Number of shares (millions)
0
50
100
150
200
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
Jan
50
100
150
200
250
Source: Nasdaq
SCA B
OMX Stockholm 30
Number of shares traded on Nasdaq Stockholm per month (millions)
Earnings per share (SEK)
9.61
The share and the shareholders
59
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

Board of Directors’ Report
SCA is Europe’s largest private forest owner with 2.7 million hectares  
of land in northern Sweden and the Baltic region. The forest is a real asset,  
which grows each year and forms the core of SCA’s operations. Around this  
renewable resource SCA has built a well-invested and efficient value  
chain, which is maximizing the value of each tree.
Operations and organizational structure
The forest is at the core of SCA’s operations. Around this resource, 
SCA has built an integrated and well-invested industry, which is 
utilizing and maximizing the value of the entire tree. Using the 
raw materials, SCA develops products for customers all over the 
world with high demands on quality, delivery reliability, service 
and sustainability. The most valuable part of the tree is used 
for sawlogs and as much as possible of the timber is sawn to 
become solid-wood products for industrial customers and the 
building materials trade. Bark is used in energy production. 
Woodchips together with the upper part of trees are used to 
make pulp and paper for further processing by customers into 
tissue and packaging. Sawdust is used to make pellets for 
energy production at SCA and externally. Steam and by-products 
from pulp production are used to deliver heat to the local district 
heating system, generate green electricity and also produce 
liquid biofuels and green chemicals. As Europe’s largest private 
forest owner, SCA also has many areas of land with favorable 
wind conditions. 
Organization and reported segments
SCA is organized into five business areas and one sup-
porting unit.
Business areas 
•	The Forest business area has the overall responsibility to 
supply SCA’s industries with wood raw material. The busi-
ness area is responsible for managing and harvesting on 
SCA’s own forest land comprising 2.7 million hectares in 
northern Sweden and the Baltic region, for sourcing wood 
raw material from other forest owners and for transporting 
the wood raw material to SCA’s industries. 
•	The Wood business area is responsible for the solid-wood 
business, which comprises five sawmills in northern 
Sweden and wood processing and distribution to the 
building materials trade in Sweden and France.
•	The Pulp business area is responsible for the pulp busi-
ness, consisting of bleached softwood kraft pulp (NBSK) 
and chemi-thermomechanical pulp (CTMP), both currently 
produced at the Östrand pulp mill. 
•	The Containerboard business area is responsible for the 
containerboard business, with kraftliner manufacturing at 
the Obbola and Munksund paper mills. SCA discontinued 
its publication paper production during the first quarter 
of 2021.
•	The Renewable Energy business area operates and 
develops SCA’s business in the renewable energy segment, 
which includes the development of wind power projects, 
pellets manufacturing and sales, and the use of biomass 
from industry in energy production. 
The supporting unit Sourcing & Logistics includes SCA’s 
common sourcing functions. The unit is also responsible 
for SCA’s logistics system for deliveries to customers using 
specially adapted vessels and terminals both in Sweden 
and in key foreign markets. 
Group functions
SCA has five Group functions: Sustainability and Communi-
cations, Human Resources, Finance, Legal Affairs and Stra-
tegic Development.
Segments
Up to and including 2022, SCA’s financial reporting was con-
ducted in four segments, which are slightly different to the 
business areas described above. As of January 1, 2023, 
Renewable Energy is a separate reporting segment. 
The Forest segment includes the Forest business area and, 
in 2022, the activities in sustainable energy linked to the 
forest that are managed by the Renewable Energy business 
area, primarily wind power leases and the sale of by-prod-
ucts from the forest for energy purposes. The Wood segment 
includes the Wood business area and, in 2022, the activities 
linked to the sawmills that are managed by the Renewable 
Energy business area, primarily pellets production. 
The Wood, Pulp and Containerboard segments also include 
an allocation of the results of the support unit Sourcing & 
Logistics, equivalent to the resources of the support unit 
used by each business area. The Forest business area does 
not use the support unit’s logistics services.
Board of Directors’ Report
60
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

Events during the year
Investments
Investment in Obbola kraftliner mill
In 2019, SCA decided to invest in a new paper machine for the 
production of kraftliner at the Obbola paper mill in Umeå. Pro-
duction in Obbola will increase from 450,000 tonnes of kraftliner 
to 725,000 tonnes per year to meet an expected increase in 
demand for renewable packaging. The total investment will be 
approximately SEK 7.5bn and is recognized as a strategic invest-
ment. The investment will also replace necessary reinvestments 
in Obbola of about SEK 2.5bn.
The paper machine began operating at the end of 2022, which 
was thus earlier than scheduled. The new recovered fiber line, 
which is necessary to reach full capacity at Obbola, is being 
­constructed on schedule and is expected to be completed in the 
first half of 2023. The new machine’s ramp-up to full capacity is 
expected to take three years. The investment is progressing on 
budget.
Investment in expanded pulp capacity
In 2020, SCA decided to invest SEK 1.45bn in the production of 
chemi-thermomechanical pulp (CTMP) to achieve an annual pro-
duction volume of 300,000 tonnes of CTMP at the Ortviken site, 
where some existing infrastructure and mechanical equipment is 
being utilized. Production started at the new facility at the end of 
2022, which was earlier than scheduled. The investment is pro-
ceeding on budget and is recognized as strategic capital expen-
diture.
SCA invests in the production of biofuels
SCA and St1 decided in 2021 to form a joint venture to produce 
and sell liquid biofuels. A jointly financed biorefinery is under 
construction and will have access to SCA’s tall oil, a product 
from the production of kraft pulp. SCA’s part of the investment 
in the biorefinery is approximately SEK 0.6bn and its ownership 
share is one quarter. The facility is expected to begin operations 
at the end of 2023.
New dry sorting line in Bollsta
SCA resolved in 2019 to construct a new dry sorting line at the 
sawmill in Bollsta that will replace two old lines. The total invest-
ment will amount to about SEK 600m and is funded within the 
company’s existing framework for current capital expenditure. 
The reinvestments will concentrate operations to a single loca-
tion, which will reduce production costs, increase efficiency and 
create a clear foundation for continued expansion. 
Investment in forest land in the Baltic region
SCA has an ongoing investment program to acquire 100,000 
hectares of forest land in the Baltic region. At the end of 2022, 
SCA had a holding of approximately 69,000 hectares of land in 
the Baltic region, of which 57,000 was forest land and 12,000 
hectares other land which can be converted into forest land or 
sold. The acquisitions are recognized as strategic capital expen-
diture and will strengthen SCA’s long-term opportunities to 
source timber in the region. 
Investing in wind power
In the fourth quarter, SCA acquired a wind farm in Markbygden, 
Piteå Municipality, for approximately SEK 0.8bn recognized as a 
strategic investment. The farm comprises 36 turbines with a total 
installed capacity of approximately 85 MW. Annual electricity 
production from the facility is estimated at almost 200 GWh.
Forest assets
Increased standing volume
The annual gross growth in SCA’s Swedish forest holding 
amounts to approximately 10.5 million m3fo, according to 
the survey conducted in 2019. SCA’s total standing volume 
amounted to 267 million m³fo as of December 31, 2022, of 
which 7 million m³fo is in the Baltic region. 
Higher growth enables increased harvesting 
Higher growth gives greater long-term harvesting potential and 
means an increase in the contribution made by SCA’s forests to 
Organization
President and CEO
Business Areas
Group Functions
Support Units
Sustainability and  
Communications
Forest
Legal Affairs
Pulp
Sourcing and Logistics
Human Resources
Wood
Finance
Containerboard
Strategic Development
Renewable Energy
Board of Directors’ Report
61
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

reducing the adverse effects of climate change. According to 
the latest harvesting plan from 2020, the planned annual harvest-
ing can gradually increase from the previous 4.3 million m3sub 
in 2020 to about 5.4 million m3sub in 2025. The new harvesting 
plan also contributes to a gradual increase in long-term cash 
flow with full effect from 2025, when the increased harvesting 
level is expected to give a positive impact on cash flow of 
SEK 300–400m per year.
Higher transaction prices for forest assets in  
northern Sweden
SCA bases its valuation of forest assets in Sweden on forest 
transactions in the areas where SCA owns forest. The market 
value of forest increased in 2022. The average market price on 
December 31, 2022 used in valuation of SCA’s forest assets 
was SEK 366/m³fo. Applied to SCA’s standing timber volume of 
267 million m³fo on December 31, 2022, the carrying amount of 
SCA’s forest assets was SEK 97.9bn at the end of the year. On 
December 31, 2021, the market price amounted to SEK 324/m³fo 
and the carrying amount was SEK 84.5bn.
Financial performance
Net sales
In 2022, SCA’s sales were the highest ever. Demand and prices 
increased in all product areas and exceeded the preceding 
year. Net sales amounted to SEK 20,794m (18,822), a change of 
+10%, of which price/mix accounted for +12%, currency +4%, 
the ­discontinuation of publication paper operations –3%, and 
volume –3%.
In the Forest segment, net sales increased 9% to SEK 6,686 
(6,148), primarily related to higher selling prices for sawlogs 
and pulpwood.
In the Wood segment, net sales decreased 5% to SEK 6,753m 
(7,080). The decrease was related to lower selling prices and 
lower delivery volumes. Exchange rate effects had a positive 
impact on sales.
In the Pulp segment, net sales increased 26% to SEK 7,209m 
(5,743). The increase was attributable to higher selling prices 
and positive exchange rate effects.
In the Containerboard segment, net sales increased 25% to 
SEK 6,823m (5,456). The increase was primarily related to higher 
selling prices.
In addition to net sales, SCA’s other operating income amounted 
to SEK 3,163m (2,649) in 2022. Other operating income com-
prises products and services such as energy products, sales of 
freight services to external customers and wind power leases 
(see Note B1 and B2). 
SCA is an export-oriented company and approximately 80% 
of net sales relate to sales outside of Sweden. The largest indi-
vidual export markets are the US (12% of net sales), Germany 
(11%) and the UK (10%). 
Net sales by geography in 2022
Sweden
19%
US
12%
Germany
11%
United Kingdom
10%
Rest of Europe
35%
Asia
8%
Rest of world
5%
Cost structure
SCA’s total operating expenses in 2022 were SEK 13,740m 
(12,433), an increase of 11% compared to 2021. The item timber, 
woodchips and recovered fiber was reduced due to a positive 
change in the value of biological assets of SEK 1,825m (1,753). 
The largest share of the cost base comprises transportation and 
distribution costs (31%), other operating expenses (25%), per-
sonnel costs (19%), and other raw materials and consumables 
(11%). 
Research and development (R&D) costs during the year 
amounted to SEK 45m (31).
Cost structure 2022
Timber, chips, pulp and recovered fiber1)
8%
Change in inventories
1%
Other raw materials and consumables
11%
Goods purchased for resale
1%
Energy
4%
Personnel costs
19%
Transport and distribution
31%
Other operating expenses
25%
1)	Timber, woodchips and recovered fiber also includes the change in value of 
biological assets.
Performance
Earnings for 2022 were the highest ever for SCA. EBITDA 
increased to SEK 10,194m (9,109), corresponding to an EBITDA 
margin of 49.0% (48.4). The change was mainly attributable to 
higher selling prices in containerboard and pulp and positive 
exchange rate effects. Higher distribution and raw material 
costs as well as lower volumes had a negative impact on earn-
ings. The cost of planned maintenance stops amounted to 
SEK 300m (310). 
In the Forest segment, EBITDA was in line with last year at SEK 
2,696m (2,644), corresponding to an EBITDA margin of 40.3% 
(43.0). Higher selling prices for sawlogs and pulpwood were 
offset by higher costs for harvesting, transportation and forest 
management, primarily related to higher fuel prices.
In the Wood segment, EBITDA declined 30% to SEK 2,079m 
(2,968), which was attributable to higher raw material costs, 
lower selling prices and lower delivery volumes. Exchange rate 
effects had a positive impact on earnings.
In the Pulp segment, EBITDA increased 41% to SEK 2,961m 
(2,096). EBITDA margin was 41.1% (36.5). The increase mainly 
relates to higher selling prices and positive exchange rate effects, 
which were partly offset by higher raw material costs. The cost 
of planned maintenance stops amounted to SEK 171m (159).
Board of Directors’ Report
62
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

Cash flow
The operating cash surplus amounted to SEK 8,331m (7,226). 
The cash flow effect of changes in working capital was 
SEK –1,328m (–306). Restructuring expenditure related to the 
discontinuation of publication paper operations amounted to 
SEK –40m (–394). Current capital expenditures, net, totaled 
SEK –1,436m (–1,236). Operating cash flow was SEK 5,685m 
(5,216). Financial items amounted to SEK –39m (–107) and tax 
payments increased to SEK –859m (–538). Corporate acquisi-
tions amounted to SEK –832m (0). Strategic capital expenditures 
totaled SEK –4,351m (–3,723) and primarily related to the invest-
ment in increased kraftliner production in Obbola, increased 
pulp production at the Ortviken industrial site and the acquisition 
of the wind farm in Markbygden, Piteå Municipality. Cash flow 
before dividend for the period was SEK –320m (876).
Operating cash flow statement
SEKm
2022
2021
Operating cash surplus
8,331
7,226
Change in working capital
–1,328
–306
Structural expenses
–40
–394
Current capital expenditures, net
–1,436
–1,236
Other operating cash flow
158
–74
Operating cash flow
5,685
5,216
Financial items
–39
–107
Paid tax
–859
–538
Other
56
27
Cash flow from current operations
4,843
4,598
Corporate acquisitions
–832
0
Divestments
20
0
Strategic capital expenditures in non-current 
assets
–4,351
–3,723
Cash flow before dividend
–320
876
Financial position
SCA’s capital employed totaled SEK 106,347m (90,807) as of 
December 31, 2022, an increase during the year of SEK 15,540m. 
The increase was mainly related to the change in value of forest 
assets of SEK 13,385m. At December 31, 2022, net debt totaled 
SEK 9,989m, an increase during the year of SEK 2,237m. Net 
debt in relation to EBITDA amounted to 1.0x compared with 0.9x 
in the preceding year. Total equity increased by SEK 13,303m 
during the period, to SEK 96,358m at December 31, 2022. 
Balance sheet structure
SEKm
Dec 31, 2022 Dec 31, 2021
Forest assets
97,882
84,497
Deferred tax related to forest assets
–19,468
–16,905
Working capital
4,138
2,823
Other capital employed, net
23,795
20,392
Total capital employed
106,347
90,807
Net debt
9,989
7,752
Net debt/EBITDA
1.0x
0.9x
Equity
96,358
83,055
Net debt/Equity, %
10.4
9.3
In the Containerboard segment, EBITDA increased 62% to SEK 
2,852m (1,761). The increase was mainly attributable to higher 
selling prices, which were partly offset by lower delivery volumes 
and higher raw material costs. The cost of planned maintenance 
stops amounted to SEK 129m (151).
Depreciation and impairment amounted to SEK 1,552m (1,475). 
Operating profit amounted to SEK 8,642m (7,634).
Financial items amounted to SEK –39m for the year, compared 
with SEK –107m in the same period of the preceding year.
The Group’s tax expense amounted to SEK 1,782m (1,426), 
­corresponding to a tax rate of 20.7% (18.9).
Earnings per share amounted to SEK 9.61 (8.46). 
Condensed consolidated income statement
Comparison 
%
SEKm
2022
2021
Net sales
20,794
18,822
10
Other operating income
3,163
2,649
19
Operating expenses
–13,740
–12,433
11
Revenue from participations in 
associated companies
–23
71
EBITDA
10,194
9,109
12
Depreciation and impairment
–1,552
–1,475
5
Operating profit
8,642
7,634
13
Financial items
–39
–107
Profit before tax
8,603
7,527
14
Taxes
–1,782
–1,426
Profit for the period
6,821
6,101
12
Profit for the period attributable 
to owners of the Parent
6,748
5,941
Profit for the period attributable 
to non-controlling interests
73
160
Key figures
EBITDA margin, %
49.0
48.4
Earnings per share
9.61
8.46
Reasons for changes in EBITDA (%)  
in 2022 compared with 2021
2022
Price/mix, %
25
Volume, %
–4
Raw material costs, %
–11
Energy costs, %
0
Currency, %
6
One-off items for discontinuation of publication paper, %
–1
Other, %
–3
Total, %
12
Board of Directors’ Report
63
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

Other Group information
Parent Company
The purpose of the Group’s Parent Company, Svenska Cellulosa 
Aktiebolaget SCA (publ), is to own and manage shares in a num-
ber of subsidiaries and perform Group-wide management and 
administrative functions. The Parent Company also owns a large 
share of the company’s forest assets. The company is a Swedish 
limited liability company domiciled in Sundsvall with the corpo-
rate registration number 556012-6293.
In 2022, operating income amounted to SEK 292m (291) and 
profit before tax amounted to SEK 3,551m (3,218). For more 
information, refer to pages 130–138.
Holdings of treasury shares
SCA holds no treasury shares.
Distribution of shares
The total number of shares as per December 31, 2022, amount- 
ed to 702,342,489, of which 64,581,994 Class A shares and 
637,760,495 Class B shares. At the request of shareholders, 
5,000 Class A shares were converted to Class B shares in 2022.
Dividend
The Board of Directors proposes a dividend of SEK 2.50 per 
share. The record date for entitlement to receive dividends is 
proposed as April 3, 2023.
Environmental impact in Sweden 
In 2022, SCA operated 12 manufacturing sites for which a permit 
is required in Sweden. The value of deliveries from operations for 
which permits are required accounted for more than 90% of con-
solidated net sales in 2022. Four permits relate to the manufac-
ture of pulp and paper. These operations impact the environment 
through emissions to air and water, solid waste and noise. Seven 
permits relate to the production of solid-wood and processed 
wood products, and biofuels and one permit pertains to the 
manufacture of fuel pellets. These operations impact the envi-
ronment through emissions to air and water, and noise. 
Guidelines for remuneration of senior executives 
The 2022 AGM decided on the guidelines for determining sala-
ries and other remuneration for senior executives. The guidelines 
apply until the 2026 AGM, unless material changes are imple-
mented prior to that.
SCA’s current guidelines for the remuneration to senior execu-
tives are described in Note C3. Information about the application 
of the current guidelines and the costs for the remuneration to 
senior executives is also described in Note C3 and in SCA’s 
remuneration report, pages 180–181 and on www.sca.com. 
SCA’s sustainability reporting in accordance with the Annual Accounts Act
Sustainability work is integrated into SCA’s operations, making it 
natural to allow sustainability reporting, in accordance with the 
Swedish Annual Accounts Act Chapter 6, to be part of a com-
bined Annual Report and Sustainability Report 2022. This report 
relates to Svenska Cellulosa Aktiebolaget SCA (publ) and its 
subsidiaries, refer to Note F1 on page 126. The SCA Group, its 
operations and business model are described in the Board of 
Directors’ Report on page 60. The Sustainability Report was 
submitted to the auditor at the same time as the Annual Report.
Governance of the sustainability agenda is described in the Cor-
porate Governance Report and in the Sustainability facts sec-
tion. SCA’s Code of Conduct is the Group’s primary steering 
document and sets, together with the Group’s Sustainability 
Policy, the basis of SCA’s sustainability agenda. Follow-up and 
evaluation of these policies complies with SCA’s procedures 
for internal control and audits, as described in the Corporate 
Governance Report on pages 74–79. In addition, SCA’s sustain-
ability targets and priorities are also monitored through the 
Group’s Sustainability Council.
The management of material risks in the sustainability area con-
stitutes part of the Group’s overall work with identifying and han-
dling risks. This process, identified risks and managing these 
risks are described in the Board of Directors’ Report. 
The strategic priorities for sustainability work, where SCA’s 
value chain can be affected, how the areas are material for SCA’s 
stakeholders, how they are governed and the most important 
result indicators are described in the sustainability facts, refer 
to the table on pages 142–143. The table also shows how social 
conditions, personnel issues, the environment, human rights 
and anti-corruption form part of SCA’s sustainability agenda.
For the 2022 fiscal year, the requirements for reporting the Tax-
onomy-aligned share of activities covered by the EU Taxonomy 
for sustainable investments were extended. As a voluntary dis-
closure, SCA has chosen to disclose the portion of capital 
employed and the portion of revenue (turnover) when internal 
sales are included. The outcome for SCA is presented on pages 
156, 170–172. 
In addition to the information above, SCA’s sustainability work 
and the outcome of this work is described in the Sustainability 
facts section, pages 139–173 and divided by area in the Swedish 
Annual Accounts Act according to the table below:
Area
General
Social conditions  
and employees
Environment
Human rights
Anti-corruption
Business model
10–11, 16–17
Policies and results
142–144
148–154
148, 157–166, 168–169
148–150, 153
149
Risks and risk management
65–73
66–68
66–67, 71–73
66–68
66–68
Targets and outcomes
141, 184–185
142–143, 148, 154
142–143, 148, 168–169
142–143, 148–150, 153
142–143, 148, 153
Board of Directors’ Report
64
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

Risks and risk management
SCA is exposed to a number of risks. These risks pertain to fac-
tors or events that may impact SCA’s brand and credibility and 
ability to be a sustainable company with good profitability over 
time. Through effective risk management, SCA is proactive in 
minimizing the risk and in reducing the negative effects should 
events occur. Most risks could have a positive or negative impact 
on the company. Examples include “Demand and market price 
for SCA’s products” and “Raw material prices”. The current geo-
political situation and the energy situation in Europe affect sev-
eral different risks and contribute to greater uncertainty when 
assessing risks than normal. SCA has included these and the 
possible impact of Covid-19 when assessing relevant risks. 
Processes for risk management
SCA’s Board determines the Group’s strategic direction after 
recommendations from Executive Management. Responsibility 
for the long-term, overall management of risks corresponds with 
the company’s decision and delegation scheme. This implies 
that most of SCA’s operational risks are managed by SCA’s busi-
ness areas at the local level, but that the handling is coordinated 
when deemed necessary and effective. The tools for this work 
primarily comprise continuous reporting by the business areas 
and the annual review of the risk scenario, where identifying, 
evaluating and managing risks are a part of the process. Identi-
fied risks are classified according to the likelihood of the risk 
occurring and the assessed impact on SCA’s performance. 
Approved control measures are followed up and assessed 
within the framework of the company’s internal control. When 
a risk scenario changes during the year, the measurement and 
management of relevant risks are updated.
SCA’s financial risk management is centralized, as is the corpo-
rate internal bank for handling the Group companies’ financial 
transactions and management of the Group’s energy risks. The 
financial risks are managed in accordance with the Group’s 
Financial Policy, which is set by SCA’s Board. Together with the 
company’s Instructions for energy trading, this provides a frame-
work for management activities.
SCA’s corporate Internal Audit function ensures that SCA com-
plies with policies and other governing documents, and that the 
organization implements approved measures to manage identi-
fied risks. The Internal Audit function reports to the Board of 
Directors through its Audit Committee.
Operational risks
Description of risk
Management and comments for the year
Demand and market price for SCA’s products
Demand for SCA’s products is influenced by several 
factors, such as the general economic trend, and 
also more specifically through trends in construc-
tion and in the building materials trade, as well as an 
increase in e-commerce. Other products and ser-
vices can substitute SCA’s products at the same 
time as SCA’s products can replace other products 
and materials. SCA is benefiting from the substantial 
and growing need to replace fossil materials with 
renewable alternatives.
Impact: 
    Change: 
In most of the product areas where SCA operates, there are a number of competing producers 
and distinct market prices. Supply is determined by the available production capacity and price is 
based on supply and demand. Sales contracts can use market prices based on published price 
indexes, sometimes with a certain time lag to events in the market. Sales contracts can also state 
a price, which is valid for during the period of contract. Variations in market prices can cause sig-
nificant fluctuations in profit for SCA.
Several methods are used to address the risk of a fluctuating market price. Long-term contracts 
at fixed prices or price hedging only occur in exceptional cases. If the impact of price movements is 
expected to be negative and long-term, measures can be taken to adapt the cost scenario, for 
example, by renegotiating agreements, capacity or personnel changes, and reviewing the business 
structure. A transition to alternative production can also be considered where this is possible. 
The company’s innovation efforts aim to develop new products, services and process solutions 
that enhance competitiveness.
Raw material prices and other costs for input goods and services
The market price fluctuates over time for many of the 
input goods and services used in the manufacture of 
SCA’s products. This could have a positive or nega-
tive impact on earnings. About 80% of SCA’s cost 
base of SEK 13,740m is made up of raw materials, 
input goods and services. SCA’s cost structure is 
described in the Board of Directors’ Report.
Impact: 
    Change: 
Price movements on input goods and services can be managed in several ways. SCA has an inte-
grated value chain with a high degree of self-sufficiency in wood, energy and logistics, which con-
tributes to risk reduction. SCA is Europe’s largest private forest owner and in 2022, 51% of SCA’s 
wood raw material requirements were sourced from its own forests and chips from its own saw-
mills. Through its large forest holding and energy-efficient industrial processes, SCA is also a net 
producer of bioenergy. 
SCA is both a major user and producer of electricity. In 2022, SCA used 1.6 TWh of electricity 
while the company produced 1.4 TWh of electricity. In addition, the company has wind power 
leases that further reduced its net exposure. The price risk may also be reduced by using financial 
hedges and long-term contracts. According to internal rules, the electricity price risk can be 
hedged for up to 36 months. For 2023 approximately 65%, for 2024 about 56% and for 2025 0% 
of the forecasted net electricity consumption has been hedged. Under normal circumstances, 
no other price risks in input goods are hedged. 
Transport expenses account for a large share of SCA’s cost base. Use of SCA’s own logistics 
operations enables the system to be optimized and risks minimized. SCA also works actively to 
reduce cost risk by renegotiating contracts, identifying new suppliers or replacing input goods 
and services where prices have risen.
High
Medium
Low
An assessment of the potential impact on SCA based 
on a combination of likelihood and financial impact.
  Unchanged risk
Refers to change compared with the preceding year.
Increased risk (impact and/or likelihood)
Reduced risk
Risks and risk management
65
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

Description of risk
Management and comments for the year
Environmental impact
SCA’s operations have an impact on air, water, land, 
noise levels and biological processes. These effects 
could lead to costs to prevent or limit the impact on 
the environment or costs to restore environments 
affected by SCA’s operations. Demands for 
restoring the environment may also relate to the 
impact of SCA’s previous operations. 
SCA’s industrial operations in Sweden require a 
permit in accordance with the Swedish Environ-
mental Code, which stipulates limits for the scope of 
operations and the permitted impact on surround-
ings. Any expansion or changes to operations may 
require further action. Forest operations are also 
impacted by the Swedish Forestry Act and the Land 
Acquisition Act. 
Impact: 
    Change: 
SCA’s Sustainability Policy details guidelines for the Group’s work in environmental and social 
responsibility. Each production unit sets targets to reduce its environmental impact. The targets 
are based on evaluations of environmental aspects. Environmental risks are minimized through 
preventive work in the form of certified environmental management systems, control programs for 
compliance with environmental permits, and risk analyses in conjunction with acquisitions, as well 
a through remediation projects in connection with plant closures. Through its Resource Manage-
ment System (RMS), SCA monitors how the company utilizes energy, water, transport activities 
and raw materials. All employees are encouraged to report observations and incidents, which 
become part of preventive work and efforts to achieve continuous improvements. SCA has spent 
many years striving to steadily increase the share of renewable energy and minimize waste. SCA’s 
integrated value chain helps to increase circularity as by-products from one process become raw 
materials for another process.
Climate change
Climate change entails risk to SCA’s operations. 
Changes to weather conditions could lead to 
drought, which in turn could lead to increased insect 
damage and fires. More storms increase the risk of 
storm damage. Timber harvesting and transporta-
tion could be impacted by a milder climate with 
more rain creating difficult terrain, particularly in the 
spring. Political decisions taken to reduce climate 
impact may affect the company in various ways.
A changing climate could affect biodiversity in the 
company’s forests as living conditions for various 
species are altered. Access to fresh water may be 
adversely impacted by a warmer climate.
At the same time, climate change in the form of 
global warming is, to a certain extent, expected to 
have a positive impact by creating a more favorable 
climate for forest growth in northern Sweden.
To counteract climate change, demand is 
increasing for renewable and fossil-free alternatives, 
which favors SCA.
Impact: 
    Change: 
The main impact for the company is considered to be related to the forest and forest management. 
Since forest operations have a long perspective of 100 years, it is difficult to predict how different 
aspects of climate change will interact. A warmer climate will probably lead to higher growth in the 
forest but in parallel greater risk of pests and extreme weather conditions. Transition risks could 
entail both risks and opportunities. Increased demand for renewable energy and products based 
on renewable materials offer SCA an opportunity. Political decisions to limit climate change could 
positively or negatively impact the company, refer also to political risks.
The company’s industrial processes are almost fossil-free following structured efforts over 
many years involving energy optimization and the replacement of fossil fuels with biofuels. The 
company’s largest exposure to fossil fuels is related to transportation and various measures are 
being taken to reduce consumption. One example is the electric timber truck that began operating 
in 2022 and that is being evaluated for timber transports to the paper mill in Obbola.
A more detailed analysis of climate-related risks and opportunities is present on pages 70–73.
Business ethics
Unethical behavior or poor management of risk 
linked to business ethics can damage SCA’s brand 
and credibility. The company may also suffer fines 
and other legal sanctions. Through good business 
ethics, the company can contribute to a positive 
development across the value chain and minimize 
the risk of corruption and money laundering.
Impact: 
    Change: 
To ensure that SCA and its employees live up to the company’s core values and is not involved in 
or linked to unethical business practices, SCA has a Code of Conduct. This includes general rules 
for how SCA conducts its business and how the company’s employees are to act toward each 
other and in business relationships. The Code is a policy approved by the Board of Directors 
and is regularly reviewed. The Code includes principles on business ethics, relationships to 
employees, respect for human rights and environmental considerations. All employees are edu-
cated in the Code as part of the introduction for new employees and through refresher courses. 
To ensure that SCA works with business partners that share these values, potential partners are 
evaluated before cooperation is initiated. The evaluation comprises both business issues and 
issues concerning existing policies and processes regarding, for example, the work environment 
and business ethics. Suppliers are expected to comply with SCA’s Supplier Standard, which is 
regulated in supplier agreements. SCA uses a number of methods to monitor and safeguard the 
implementation of the Code of Conduct. These include checks in connection with acquisitions, 
risk evaluation of the company’s own units and suppliers, and on-site audits of SCA’s units and of 
suppliers deemed to have a higher risk level. SCA has a whistleblower system where both internal 
and external parties can report suspected violations of the Code, which are processed by the 
company’s Compliance Council.
Legal risks
SCA conducts operations covered by laws, rules 
and regulations, much of which are subject to per-
mits. SCA may be subject to commercial disputes 
and other legal procedures.
Impact: 
    Change: 
SCA monitors legal developments in relevant areas to ensure regulatory compliance. The com-
pany takes the measures required to comply with regulatory changes and provides employees 
with relevant training. SCA is also a member of trade associations to safeguard the company’s 
interests on legal issues. SCA’s facilities continuously monitor their environmental impact and 
compliance with permits issued.
Risks and risk management
66
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

Description of risk
Management and comments for the year
Reputational risk
Events may occur that damage SCA’s reputation. 
This could, for example, concern an employee, con-
tractor, supplier or business partner who fails to 
comply with laws and regulations or policy docu-
ments, such as SCA’s Code of Conduct. SCA could 
also be affected by accidents that damage the repu-
tation of SCA and its ability to conduct the business 
in a safe and efficient manner.
Impact: 
    Change: 
SCA performs training sessions to ensure that knowledge about regulations is transferred to 
SCA’s employees and works to ensure that co-owned operations and staff in these companies 
comply with similar requirements.
SCA has a Supplier Standard to ensure that SCA’s suppliers and contractors adhere to the 
requirements imposed by SCA. SCA has systems in place to handle sudden events, such as 
­accidents, that risk damaging confidence in SCA. The company has a procedure to ensure that 
new partners share SCA’s values before initiating a business collaboration. Whenever necessary, 
audits are conducted on-site to monitor that SCA’s performance levels are met. SCA holds 
­discussions with its stakeholders and regularly updates information on the company’s website 
to satisfy various needs.
Risks linked to forest operations and the forest holding
SCA is Europe’s largest private forest owner, with 
2.7 million hectares of forest land, of which 2.1 mil-
lion hectares is productive forest land. There is a 
risk that the value of the forest holding decreases 
through infestation by pests, grazing moose, storms 
or fire. The value can also change through variations 
in demand for wood raw material in SCA’s region, 
which in turn would impact price levels in the region. 
SCA’s forest management may conflict with the 
activities of reindeer herding Sami communities per-
taining to land use. This is also the case when 
establishing wind power production on forest land. 
Legislation may influence opportunities to conduct 
active and responsible forest management.
Impact: 
    Change: 
SCA works proactively and together with research institutes to continuously improve forestry 
methods and seedlings to enhance forest growth and to reduce impact on the forest landscape. 
SCA works in various ways and holds discussions with different stakeholders, to contribute fact-
based supporting data of the benefits created through a responsible use of the forest and how 
forest operations impact the forest landscape.
Active and responsible forest management combined with an industry that adds value to the 
forest raw material is essential to secure the value of the forest asset. Since 1950, the sustainable 
harvesting level has more than doubled at the same time as the standing volume has increased 
by about 60%. The risk of infestation by pests is managed through diligent site preparation and 
special protection against pine weevils and spruce bark beetles. The stock of grazing moose is 
managed through hunting on land where SCA issues hunting licenses. SCA’s forest land is spread 
across large areas of northern Sweden, which means forest fires and storms usually only impact 
a limited part of the forest holding. The forest is therefore not insured. On the basis of the fire situ-
ation in previous years, SCA has drawn up procedures to minimize the risk of forest fires, particu-
larly during longer periods of dry weather. SCA consults the relevant Sami communities in connec-
tion with forestry operations and wind power projects on SCA’s land. The consultation pertains to 
the adaptation of forest management activities, including the scheduling of harvest operations, 
the use of fertilizers and the selection of soil preparation method and choice of tree species when 
replanting forests. For wind power projects, consultation may be carried out concerning the size 
of the wind farm, its impact on reindeer herding and impact on Sami communities.
Biodiversity
SCA uses large quantities of forest raw material 
which is partly from its own forest and partly from 
other landowners. All forestry measures involve a 
risk of impacting biodiversity.
A warmer climate will also affect biodiversity.
Impact: 
    Change: 
SCA’s objective is to manage the company’s forests to make them at least as rich in biodiversity, 
nature experiences and raw material in the future as they are today. SCA is pursuing long-term and 
responsible forest management where nature conservation measures are applied in all forest 
operations. SCA strives to preserve and strengthen biodiversity in several ways. SCA makes vol-
untary set-asides where the company’s forests with the highest conservation values are set aside 
from forest management. Alternative forms of production are used and targeted actions are taken 
to promote biodiversity. SCA takes specific responsibility for forest species that are at risk of 
being negatively affected by forest management and works proactively to guarantee and increase 
access to the right habitats for SCA’s protected species. The company cooperates with organiza-
tions to jointly identify and undertake measures that promote biodiversity and recreation.
SCA’s forestry management and timber procurement is certified under FSC and PEFC in 
Sweden and the Baltic region. SCA actively refrains from purchasing timber from controversial 
sources. As a minimum requirement, purchased timber must comply with FSC’s Controlled Wood 
Standard.
COP 15 was held at the end of 2022 and this could potentially entail changed requirements for 
the company. It is, however, too early to express the impact and scope in concrete form.
Risks at production plants
SCA has 14 production facilities, all of which are 
located in Sweden. SCA also owns facilities for dis-
tribution, such as port facilities, timber terminals 
and forest roads in Sweden. Poor health and safety 
practices at the production facilities may cause ill 
health or a workplace accident with substantial con-
sequences for individual employees. Some of the 
facilities conduct continuous production. Fires, 
machinery breakdowns and other types of harmful 
incidents could lead to production disruptions and 
cause delivery problems. When major projects are 
undertaken, there is a risk of disruption in the 
existing operations.
Impact: 
    Change: 
SCA has a vision of zero workplace accidents and is actively and systematically running a health 
and safety program to minimize the risk of personal injury and ill health. SCA applies a preventive 
approach to ensure a high degree of availability in production facilities and to avoid unscheduled 
production stops. The aim is to effectively and cost efficiently protect the employees, local resi-
dents, the environment, the company’s assets and the business, and to minimize SCA’s risk man-
agement costs. Loss-prevention activities are conducted in accordance with established guide-
lines, which include management’s safety walks, maintenance of plants, staff training, good 
orderliness, and documentation. Continuous action is taken to reduce risks by using, for example, 
risk assessments and undertaking continuous improvements. 
All wholly owned plants are insured with market-leading insurance companies to replacement 
cost and for the loss of contribution margin. In order to minimize the impact of ongoing projects on 
operations, separate project organizations are created to conduct regular follow-ups that quickly 
identify any disruptions and shortcomings, and take corrective action.
Risks and risk management
67
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

Description of risk
Management and comments for the year
Impact of political decisions
SCA’s operations are affected by political decisions 
and administrative rules, primarily in Sweden where 
SCA has most of its operations, but also at EU level. 
This impact could be from general regulations, such 
as rules covering taxation and financial reporting, 
but also by more specific regulations and practices. 
These include political decisions pertaining to forest 
management, transportation and permit processes. 
Political decisions may restrict future harvesting 
levels.
Impact: 
    Change: 
SCA is working to monitor and evaluate changes in its surroundings, amended legislation and 
political decisions that lead to a change in circumstances for the company. SCA is a member of 
national and international trade associations. A few key areas for SCA include the ownership and 
right to the use of forest land, European and global legislation in the field of energy and the envi-
ronment and attitudes toward biofuel. SCA monitors developments in prioritized areas, such as 
forest management, biodiversity, fossil-fuel use, ecolabels, issues relating to waste and emissions 
to water and air. It is important for SCA to monitor EU emission rights trading, regulations con-
cerning waste and circular economy initiatives.
Customer dependency
In 2022, SCA’s ten largest customers accounted for 
about 31% of SCA’s sales. The risk of too great a 
dependency on an individual customer is that lost 
sales from these customers could have a negative 
impact on SCA’s earnings.
Impact: 
    Change: 
SCA works continuously in building relations with new customers to reduce the consequences of 
lost sales from established customers. Generally, customers in the pulp and paper segments are 
major companies, such as tissue manufacturers and corrugated board manufacturers. Within the 
Wood business area, SCA has developed new customer segments over the years. Traditionally, 
solid-wood products are distributed by wholesalers. SCA has built up business relationships with 
distributors in the building materials trade, which are focused on distribution to consumers, 
including the DIY segment. In addition, certain construction components are manufactured for 
sale directly to industry.
Suppliers
SCA is dependent on a large number of suppliers. 
The loss of key suppliers could result in costs for 
SCA and problems in the value chain. Suppliers that 
fail to comply with SCA’s Supplier Standard could 
also cause problems for SCA. Pandemics and other 
global or regional crises may have a negative impact 
on the supplier’s capacity to meet its commitments 
and on the mobility of products and services.
Impact: 
    Change: 
To reduce this risk, SCA has supply contracts with multiple suppliers. For wood raw material pur-
chased externally, SCA has created a purchasing organization with about 80 timber purchasers, 
distributed between local offices across the region. Through this organization, SCA has relation-
ships with approximately 18,000 private forest owners. SCA may also sell silvicultural services to 
these forest owners. About 180 contractors are responsible for most of the harvesting, about 100 
for transportation of wood raw material to SCA’s industries and around 90 for forest management. 
For the most important input goods and services, there are a number of suppliers available in 
the market. This is also often the case for suppliers of maintenance and building services for facili-
ties. As SCA has access to several suppliers, it has reduced the risk of non-delivery resulting from 
delivery problems at an individual supplier. Active efforts have helped to manage disruption linked 
to the current crisis in Ukraine without any major impact on the company’s operations. 
 An SCA Supplier Standard has been established that, for example, addresses working condi-
tions, health and safety and business ethics. SCA’s suppliers must agree to follow the standard 
and may be required to undergo an audit. The audits are planned and carried out from a risk per-
spective to ensure that deliveries are from suppliers that fulfill SCA’s requirements.
IT security and IT risks
SCA relies on IT systems in its operating activities. 
Disruptions or faults in critical systems have a direct 
impact on production and important business pro-
cesses. Errors in the handling of financial systems 
can affect the company’s reporting. Unauthorized 
intrusion into SCA’s systems may result in financial 
losses and other damage. These risks grow in an 
increasingly technically complex and interlinked 
world.
Impact: 
    Change: 
SCA has established a management model for IT that includes governance, standardized IT 
­processes and an organization for IT security. The IT security work includes a continuous risk 
assessment, the introduction of preventive measures, use of security technology and internal 
audits. Standardized processes are in place for the implementation of new systems, changes 
to existing systems and daily operations. The majority of SCA’s system landscape is based on 
well-established systems. The company’s approach has been adapted and changes in accor-
dance with the General Data Protection Regulation (GDPR). Employee awareness of the risks 
is raised through courses in IT security.
Employee-related risks
SCA needs access to skilled and dedicated 
employees. The company must have an ability 
to attract and retain talent and safeguard the 
­availability of competent managers to achieve 
established strategic and operational objectives.
Impact: 
    Change: 
SCA’s objective is that workplaces are to be accident-free and healthy and has a proactive 
approach toward the health and well-being of employees. The company carries out management 
training courses to develop and support managers in their leadership role.
SCA follows an established process for succession planning to ensure the supply of leaders 
and specialists. SCA works with strategic skills supply to secure access to the right expertise in 
the short and long term. Employees are developed through training, coaching and learning as a 
part of everyday work as well as annual performance reviews. The company uses targeted initia-
tives to attract critical expertise and to strengthen the employer brand. Salaries and other condi-
tions are to be adapted to the market and linked to SCA’s business priorities. SCA strives to main-
tain good relationships with union organizations.
Risks and risk management
68
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

Financial risks
Description of risk
Management and comments for the year
Currency risk
SCA’s focus on exports makes SCA’s operations 
highly dependent on currency. About 90% of sales 
are conducted in currencies other than SEK. Most 
purchasing is conducted in SEK. Only a minor share 
of purchasing is carried out in other currencies. 
Fluctuations in currency rates have a substantial 
impact on SCA’s revenue and thereby on earnings.
Impact: 
    Change: 
The table shows the net flows for the three 
largest currencies in 2022, and the total of other 
foreign currencies, measured as sales in each 
foreign currency less purchases in the same cur-
rency. In accordance with SCA’s Financial 
Policy, this exposure is hedged as follows: 
All balance sheet items in foreign currency are 
hedged, as is exposure in major approved and 
contracted investments in non-current assets. 
According to the policy, transaction exposure regarding expected future net flows may also be 
hedged for up to 18 months. The company has hedged about 80% of the expected EUR, USD net 
exposure from sales minus purchases until the end of the second quarter of 2023, as well as 
approximately 50% for the third quarter and 25% for the fourth quarter 2023. The company has 
hedged about 70% of the expected GBP net exposure from sales minus purchases until the end of 
the second quarter of 2023, as well as approximately 30% for the third quarter of 2023. These had 
the following average exchange rates, EUR/SEK 10.77, USD/SEK 10.32, and GBP/SEK 12.35.
Translation exposure, meaning the risk to which SCA is exposed when translating foreign sub-
sidiaries’ balance sheets and income statements to SEK, is less important as the total assets in 
these companies only amount to approximately 3% of SCA’s total assets. Translation exposure in 
the foreign subsidiaries is not currency-hedged. 
Credit risk
Credit risk refers to the risk of losses due to a failure 
to meet payment obligations by SCA’s counterpar-
ties in financial agreements or by customers.
Impact: 
    Change: 
Credit exposure in accounts receivable amounted to SEK 3,007m as per December 31, 2022. 
Credit risk in accounts receivable is managed through credit checks of customers using credit 
rating companies. Credit limits are set and regularly monitored. Accounts receivable are recog-
nized at the amount that is expected to be received based on an individual assessment of each 
customer. The financial credit exposure, in which the counterparty is a financial actor or a pension 
fund manager, amounted to SEK 3,598m as per December 31, 2022. This exposure includes credit 
risk of SEK 836m for cash and cash equivalents and credit exposure in derivative instruments 
amounting to SEK 730m. The objective is that financial counterparties must have a credit rating of 
at least A- from at least two credit rating institutes. 
Liquidity and refinancing risk
Liquidity and refinancing risk is the risk that SCA is 
unable to meet its payment obligations as a result of 
insufficient liquidity or difficulty in raising new loans.
Impact: 
    Change: 
As of December 31, 2022, SCA’s gross debt amounted to SEK 12,785m and the average duration, 
including unutilized credit facilities, to 3.9 years (taking into account lease liability in accordance 
with IFRS 16).
Unutilized credit facilities amounted to SEK 7,796m at the end of the year, and cash and cash 
equivalents to SEK 836m. To ensure good access to loan financing at attractive terms, SCA has a 
clear objective to maintain an investment grade rating. During the year, the credit rating agency 
Standard and Poor’s (S&P) repeated SCA’s credit rating as “BBB” with a stable outlook.
SCA is to maintain financial flexibility in the form of a liquidity reserve consisting of cash and 
cash equivalents and unutilized credit facilities totaling at least 10% of the Group’s annual sales. 
SCA limits its refinancing risk by having a good distribution in the maturity profile of its gross debt. 
The gross debt must have an average maturity in excess of three years, taking into account unuti-
lized credit facilities.
Surplus liquidity should primarily be used to amortize external liabilities. As of December 31, 
2022, SCA’s financing mainly comprised one credit facility from a group of four banks with high 
credit ratings, bilateral loans and credit facilities from several banks and issued commercial 
papers and bonds. 
Interest rate risk
Interest rate risk relates to the risk that movements 
in the interest rates could have a negative impact on 
SCA.
Impact: 
    Change: 
SCA’s policy is that the average interest rate duration period shall be within the interval 3–36 
months. SCA’s average interest rate duration for the gross debt, including derivatives and 
excluding lease liability in accordance with IFRS 16, was about 18 months as of December 31, 
2022. The risk is managed using fixed-interest loans or through interest rate derivatives. A sensi-
tivity analysis is presented in Note E7.
Net flows
2022
EUR
EUR 654m
USD
USD 514m
GBP
GBP 124m
Others (translated to SEK)
SEK 497m
Total
SEK 14,154m
Risks and risk management
69
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

The forests and products from the forest are important in mitigating climate change. 
A warmer climate will entail many risks but also lead to increased growth in the forest.
Risks and risk management
70
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

Climate-related risks and opportunities
1)	Source: RCP 2.6 and SSP1–2.6.
2)	Source: RPC6, SSP4–6.0 and when data is missing, then data from RCP 8.5 and RCP 4.5 was used to supplement the scenario.
Scenario 1 – Low temperature1)
In line with the Paris Agreement, global warming ~1.5°C
Global warming is slowed and greenhouse gas emissions are 
negative by 2100. The global increase in the average temperature 
is limited to 1.5°C. 
Society has undergone a high degree of transition while the 
physical impact arising from climate change was restricted. 
Technology development contributes to the transformation of 
society. Charges for emissions have accelerated the phasing 
out of fossil energy. Extreme weather conditions occur more 
­frequently than today. 
The global population decreases to about 7 billion, due primarily 
to an increase in education and lower birth rates. Changed con-
sumption patterns have increased resource efficiency and 
reduced material needs.
Scenario 2 – High temperature2)
Slower transition, global warming ~3–5°C
Society has not taken adequate measures to reduce climate 
change and still has a great dependency on fossil energy. The 
global average temperature has continued to increase by about 
3.5°C. 
Fossil emissions have continued to increase until 2060 but 
decreased thereafter. The concentration of CO2 in the atmo-
sphere has increased by approximately 70%. Climate change 
makes more locations on earth difficult or impossible to inhabit. 
Increased inequality between and within countries, leads to 
more conflicts in the world. Extreme weather conditions occur 
frequently and result in various types of problems. Costly proac-
tive measures are required to reduce the consequences.
The global population increases to about 9 billion, which leads to 
a greater need for resources and more land is used for food pro-
duction.
Climate change entails both risks and opportunities that SCA 
must understand and respond to. A scenario analysis with a 
­perspective of 100 years was carried out that analyzed two sce-
narios: one where the world achieves the Paris Agreement and 
one with a higher temperature increase where society reacted 
more slowly. The analysis was conducted with both a global 
­perspective and with a focus on northern Sweden. Risks for the 
company have been assessed in the short and long term on the 
basis of the analysis. SCA’s business model and base in its own 
forests represent major opportunities to be an important player 
in the transition to a sustainable development of society.
Scenario analysis – Impact on SCA 
Based on an estimate of changed conditions in northern Sweden and with a perspective of 100 years
The effects of a changed climate in northern Sweden, where 
SCA conducts most of its operating activities, are deemed 
­similar for both scenario 1 and 2, but with more pronounced 
changes for scenario 2 (high temperature). For scenario 2, the 
effects are expected to be more severe and to occur earlier than 
for scenario 1. According to models from, for example, SMHI, 
a global increase in average temperature will lead to an even 
greater temperature increase closer to the poles. This will entail 
an anticipated temperature increase of 1–3°C (scenario 1) and 
4–7°C (scenario 2), respectively, in northern Sweden. Access to 
water will be affected depending on geography and season. 
Spring will be wetter in the inland, summer drier at the coast, 
autumn and winter wetter throughout northern Sweden. 
The long-term impact of climate-related transition risks are diffi-
cult to foresee, which leads to great uncertainty. Both legislation 
in Sweden and the EU will have an impact, as will technology 
development, access to and price of raw materials, changed 
consumption patterns and investor valuations and risk appetite.
35
RCP 8.5
RCP 6
RCP 4.5
RCP 2.6
CO2
2000
2020
2040
2060
2080
2100
30
25
20
15
10
5
0
–5
Emissions billion tonnes of carbon dioxide
Source: van Vuuren, D.P., Edmonds, J., Kainuma, M. et al. The representative concentration pathways: 
an overview. Climatic Change 109, 5 (2011). https://doi.org/10.1007/s10584-011-0148-z
Risks and risk management
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SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

Climate-related risks and opportunities based on the performed scenario analysis
With starting point in changed conditions in northern Sweden and a perspective of 100 years
Risks for SCA in the short, medium and long term
Management of risks
Risks in the short term 1–2 years
•	Slow and difficult to predict permit processes.
•	Increased taxes and fees on fossil emissions.
•	Increased administration to report emissions.
•	Increased magnitude of infestation by pests and fungi.
•	Requirements to set aside land to promote biodiversity
•	Discussions and collaboration forums with stakeholders. Advo-
cacy activities through trade organizations, and other collabora-
tions as well as through own initiatives.
•	High level of expertise in relevant areas within the company, and 
through research collaboration, with customers and other parties.
•	Continued development of forest management through own 
experience and by following and participating in research work.
Risks in the medium term 2–5 years
•	More days with low soil moisture that reduce access to water for the trees  
and increase the risk of forest fires.
•	More frequent torrential rain and a shorter winter season that may create  
more challenging logging conditions in forest operations.
•	Potential limitations to the right to the use of forest land and requirements  
to set aside land to protect nature.
•	Legislation and classification of bioenergy.
•	Requirements to minimize emissions throughout the value chain, even outside  
the company’s own operations.
•	Costs to combat and minimize the effects of extreme weather conditions,  
such as flooding, droughts and storms.
•	Access to and pricing for renewable and dispatchable energy.
•	Good fire-fighting capabilities and developed procedures to mon-
itor the risk of forest fire. Adapted forestry procedures.
•	Procedures for site preparation and the development of seedling 
material when planting new forests.
Risks in the long term 5–100 years
•	Taxes and fees on emissions.
•	Costs to combat, minimize and manage the effects of extreme weather condi-
tions, where the magnitude depends on the development of climate change.
•	Technology development that affects material efficiency, material use and 
­production costs.
•	Changed requirements on material properties and recycling.
•	Access to and costs for raw materials and energy.
•	Changed consumer demands and consumption patterns.
•	Technology and product development through own initiatives and 
together with partners.
Acute
•	Different types of extreme weather conditions occur more frequently 
and may affect the value chain, including transportation to customers 
and raw materials to industry.
•	Increased periodical rainfall, torrential rain, occur more frequently.
•	Storms occur more often, but the average wind speed is not expected 
to increase.
•	Increased occurrence of insect and fungal damages in the forest 
holding.
Chronic
•	Higher average annual precipitation while periods of drought increase, 
mainly in terms of the number of days per year.
•	More days with low soil moisture. During these periods, access to water 
is reduced for the trees and fire risk is increased.
•	Higher average temperature, fewer frost days and shorter winter 
season. Also contributes to extended growing seasons that lead to 
increased growth in the forest.
•	Warmer and wetter winters with less ground frost increase the risk of 
windfalls and have a negative impact on logging conditions in the forest. 
•	Changes in access to habitats may impact flora and fauna.
Climate-related physical risks
Political decisions and legislation
•	Limitations on ownership rights and/or right to the use of forests.
•	Differing opinions about how the forest can best be used may impact 
access to and the price of raw materials.
•	Changes in fees and taxes, mainly on CO2 and transportation.
•	Terms, access and pricing for renewable energy and renewable fuel.
•	Slow and difficult to predict permit processes.
•	Lack of systemic perspective and risk of suboptimal outcomes.
Technological development
•	Development of new competing materials.
•	Development of fossil-free production processes that lead to lower 
substitution needs.
Market
•	Increased demand for sustainability at all stages of the life cycle.
•	Changed consumer habits.
Reputation
•	Perception of the definition of responsible forest management.
Climate-related transition risks
Risks and risk management
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Board of Directors’ Report
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Other

Opportunities for SCA
The transition of society to combat climate change also entails 
many opportunities for SCA, with its base in renewable raw mate-
rials from responsibly managed forests. The company has effec-
tive control of the value chain, a high degree of self-sufficiency in 
critical raw materials and a potential in renewable energy.
•	Greater demand for renewable materials and renewable energy 
increases demand for the company’s products.
•	The development of new products based on forest raw mate-
rials or waste streams can offer new revenue streams.
•	A warmer climate and extended growing seasons will increase 
growth in the forests. Increased growth will increase the uptake 
of CO2 in the company’s forests and access to raw materials, 
which both help to mitigate climate change.
Potential financial impact
•	The market price for the company’s products follows changes 
in demand in the market.
•	Revenue from new products and services.
•	Higher/lower growth in the forest and higher/lower volumes of 
harvested forest on own land.
•	Costs to adapt the company to any changes to laws and fees.
•	Costs to manage the effects of extreme weather conditions, 
including proactive measures.
•	Currently, the risk of stranded assets is considered low.
The financial impact is described in existing sensitivity analyses 
in the financial statement. For a sensitivity analysis of forest 
assets, refer to Note D3.
Task Force on Climate-related Financial Disclosures (TCFD)
Climate-related risks and opportunities are an integrated part of the company’s work. SCA presents information about how  
these may impact the company in accordance with TCFD recommendations. References are provided below to the relevant pages 
for more detailed information.
Governance
Climate-related risks and opportunities are included in 
the company’s work with risk management and business 
development. The Board of Directors approves all policies. 
Sustainability issues and risks are discussed at least at 
one Board meeting every year. The Executive Manage-
ment approves Group targets and reviews and updates 
the risk scenario every year. Risk management may be 
­followed-up by internal audit and internal control tools. 
Read more on pages: 74–79 and 144.
Risk management
Climate-related risks and opportunities are part of the 
company’s risk management process. Risks and opportu-
nities are also managed on a continuous basis in the line 
organization and in cross-functional, Group-wide net-
works. When a risk scenario changes during the year, a 
review is conducted of risk management in the relevant 
areas to modify the company’s actions if required. 
Read more on pages: 65–73.
Metrics and targets
SCA’s Group targets include a number of suporting targets 
related to climate impact.
An assessment of the fossil emissions from the whole value 
chain is conducted every year. The company calculates its 
con­tribution to the climate benefit on an annual basis using 
the model presented on sca.com and includes the contribu-
tion from the company’s products.
Read more on pages: 142–143, 157–159, 163–166 and 168–169.
Strategy
Climate-related risks and opportunities have been identi-
fied and integrated into SCA’s strategy for profitable growth. 
SCA has, through its large forest assets and renewable 
products, a strong potential to play a significant role in the 
transition to a decarbonized society both with existing and 
new products and services. In parallel, the company is 
striving to reduce the impact of climate change on its own 
operations, mainly within the area of forest management, 
and reduce its impact through decreased emissions in the 
value chain.
Read more on pages: 6–7, 10–11, 19–23 and 49.
Risks and risk management
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Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

Corporate governance
Corporate governance aims to ensure SCA’s commitments to all of its  
stakeholders. In addition, corporate governance supports the company’s  
long-term strategy, market presence and competitiveness. 
Corporate governance, including remuneration, pages 74–83 
This section describes the rules and regulations and the Group’s 
corporate governance, including a description of the operational 
organization. It also details the Board of Directors’ responsibilities 
and its work during the year as well as SCA’s internal control. 
Moreover, it provides an overview of remuneration and remune­
ration issues, see also SCA’s remuneration report on pages 
180–181 and at www.sca.com. SCA applies the Swedish Code of 
Corporate Governance without any deviations (www.corporate-
governanceboard.se). Corporate governance shall be reliable, 
clear, straightforward and business-oriented. This Corporate 
­Governance Report forms part of the Board of Directors’ Report 
for SCA’s 2022 Annual Report in accordance with Chapter 6, 
­Section 6 of the Swedish Annual Accounts Act (1995:1554). 
The report has been reviewed by the company’s auditor.
Risks and risk management, pages 65–73
The processes to identify and manage risks in SCA are part of 
the Group’s strategy work and are pursued at a local and Group-
wide level. The risk management section describes the most sig-
nificant risks as well as the governing documents and measures 
that the Group applies to manage these. 
Sustainability, pages 48–57, 139–173 and 185
SCA’s sustainability work is an integral part of the company’s 
business model and operations. Work to improve the company’s 
sustainability performance strengthens competitiveness, reduces 
risks and costs and attracts talent and investors. The Board and 
the President bear the overall responsibility for the control of 
SCA’s business in the field of sustainability. SCA’s sustainability 
agenda is headed by the Group’s Sustainability Council, which 
includes members of the Executive Management and the Group’s 
Sustainability Director. The Sustainability Council is led by the 
Group’s Senior Vice President Sustainability and Communi­
cations. In addition, a number of cross-functional networks 
manage and coordinate issues such as health, safety and 
­environment.
Governance at SCA
Shareholder meeting/Annual General Meeting
The shareholders’ meeting is SCA’s highest decision-making 
body, where all shareholders are entitled to attend to have a 
matter considered and to vote in respect of all shares held by the 
shareholder. According to its Articles of Association, SCA has 
two listed classes of shares: Class A and Class B shares. Every 
Class A share represents ten votes and every Class B share rep-
resents one vote. The Annual General Meeting (AGM) is the 
annual shareholders’ meeting at which the annual report is pre-
sented. The AGM appoints the company’s Board of Directors 
and auditor, which are proposed by a Nomination Committee 
specifically elected by the AGM. The AGM also resolves on divi-
dends, adoption of the annual accounts, fees to be paid to the 
company’s Board and auditor, where applicable on guidelines for 
remuneration of senior executives, and other important matters.
Nomination Committee
The Nomination Committee represents the company’s share-
holders and is charged with the task of preparing proposals for 
adoption at the AGM with respect to election and remuneration 
matters and, in certain cases, proposing procedural motions for 
the next Nomination Committee.
Board of Directors
The Board of Directors has the overall responsibility for the com-
pany’s organization and administration through regular moni-
toring of the business and by ensuring the appropriateness of 
the organization and management team, and also compliance 
with guidelines and internal control. The Board approves strate-
gies and targets, and decides on major investments, acquisitions 
and divestments of operations, among other matters. 
The 2022 AGM resolved that the Board of Directors shall com-
prise ten members elected by the AGM with no deputies. In addi-
tion, the Board shall include three employee representatives and 
three deputies.
SCA’s Articles of Association contain no provisions regarding 
appointment or dismissal of Board members or amendments 
to the Articles.
Chairman of the Board
The Chairman of the Board leads the work of the Board and 
is responsible for ensuring that it is effectively organized and 
that work is efficiently conducted. This includes continuously 
monitoring the company’s operations in close dialogue with the 
President and CEO and ensuring that other Board members 
receive information that will enable high-quality discussion and 
decisions by the Board. The Chairman leads the assessment 
of the Board’s and the President’s work. The Chairman also rep-
resents the company in ownership matters.
Audit Committee
The company’s Board has, within itself, established an Audit 
Committee. The tasks of the Audit Committee include monitoring 
financial reporting and the efficiency of the company’s internal 
control, internal audit and risk management, and submitting rec-
ommendations and proposals to ensure the reliability of report­
ing. The Committee keeps itself informed on the audit, reviews 
and monitors the impartiality and independence of the auditor 
and submits recommendations to the Nomination Committee as 
a basis for the appointment of auditor and the determination of 
remuneration, and information to the Board concerning the 
results of the audit in order to fulfill all requirements of the EU 
Corpor ate governance
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SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
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Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

Compliance with stock market 
­regulations
In 2022, SCA was not sanctioned 
by the Swedish Financial Super­
visory Authority, the stock 
exchange’s disciplinary board 
or any other authority or self-regu-
lating body for violations of the 
rules concerning the stock market.
Audit Regulation and Directive. The Audit Committee sets guide-
lines for the procurement of services other than auditing services 
from the company’s auditors. Lastly, the Audit Committee evalu-
ates the audit quality and informs the Nomination Committee of 
the results of the evaluation.
Remuneration Committee
The company’s Board has also, within itself, established a Remu-
neration Committee. The Remuneration Committee prepares the 
Board’s motions on issues relating to remuneration principles and 
remuneration and other terms and conditions of employment for 
the President and CEO, and is authorized to make decisions in 
these matters for the company’s other senior executives. The 
Committee monitors and assesses programs for variable remu-
neration, the application of the AGM’s resolution on guidelines for 
remuneration of senior executives and the applicable remunera-
tion structure and remuneration levels in the Group. The Remuner-
ation Committee also prepares the Board’s remuneration report.
Internal audit
At SCA, it is the employees’ responsibility to ensure sound gover-
nance and internal control in the operations or processes for which 
they are responsible. Internal audit is a separate function with the 
task of evaluating and improving the efficiency of SCA’s internal 
control, governance, and risk management. The function reports to 
the Audit Committee and the Board in relation to internal audit mat-
ters. The function examines, among other, SCA’s internal pro-
cesses for sales, purchases, financial reporting, assets, compen-
sation and benefits, HR matters, information security and IT 
systems, various projects and compliance with SCA’s policies and 
other governing documents including the Code of Conduct.
President and CEO and Executive Management
SCA’s President and CEO is responsible for and manages the 
day-to-day administration of the Group and follows the Board’s 
guidelines and instructions. The President and CEO is supported 
by the Executive Management Team, the work of which is led by 
the President. The Executive Management Team comprises the 
President and CEO, the CFO, the Presidents of the Business 
Areas Forest, Containerboard, Pulp, Wood and Renewable 
Energy and the President for the support unit Sourcing & Logis-
tics. Further, the Senior Vice Presidents of the Group functions 
Human Resources, Legal Affairs, Sustainability and Communi-
cations and Strategic Development are also members of the 
team. The working procedures for the Board of Directors and 
terms of reference issued by the Board of Directors to the Presi-
dent and CEO detail, for example, the division of work between 
the Board and President. In consultation with the Chairman of 
the Board, the President and CEO prepares documentation and 
background information for the Board’s work.
SCA adheres to the principle of distinct decentralization of 
responsibility and authority. The business areas are fully respon-
sible for developing their respective operations through estab-
lished objectives and strategies, a process that is also centrally 
coordinated. Each business area is responsible for its operating 
result, capital and cash flow. The position of the business and 
results are followed up by the entire Executive Management 
Team on a monthly basis. Each quarter, business review meet-
ings are conducted during which the management of each busi-
ness area personally meet with the President and CEO, the CFO 
and others. These meetings function as a complement to the 
daily monitoring of operations. 
External auditors
The company’s auditor, elected at the Annual General Meeting, 
examines SCA’s accounting, the Group’s annual report and sus-
tainability report, the Board’s and President and CEO’s adminis-
tration and the annual reports of subsidiaries, and submits an 
audit report.
The audit is performed in accordance with the Swedish Compa-
nies Act, the Swedish Annual Accounts Act, International Stan-
dards on Auditing (ISA) and generally accepted auditing principles 
in Sweden, which also includes a review of compliance with the 
Swedish Companies Act and the Swedish Annual Accounts Act. 
Read more about SCA’s Corporate Governance at  
www.sca.com. This includes: 
•	SCA’s Articles of Association
•	Link to the Swedish Corporate Governance Code
•	Information from previous Annual General Meetings 
since 2015 (notices, minutes, President and CEO’s 
speeches) and press releases since 2012
•	Information from the Nomination Committee since 2006 
(composition, proposals and work done)
•	Information ahead of the 2023 Annual General Meeting 
(notice, Nomination Committee proposals including the 
Audit Committee’s recommendation, Board proposal for 
guidelines for remuneration of senior executives, infor-
mation on routines for notifying attendance to the 
Meeting, etc.)
•	Earlier Corporate Governance Reports, since 2007
Internal rules and regulations include: 
•	Articles of Association
•	Working procedures of the Board 
of Directors
•	Terms of reference issued by the 
Board to the President and CEO
•	Code of Conduct 
•	Other policy documents estab-
lished by the Board and instruc-
tions established by the President 
and CEO
External rules and regulations 
include:
•	The Swedish Companies Act 
•	The Swedish Annual Accounts Act
•	International Financial Reporting 
Standards (IFRS)
•	Nordic Main Market Rulebook for 
Issuers of Shares 
•	Swedish Corporate Governance 
Code
•	Relevant EU regulations
Corpor ate governance
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SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
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Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

Activities during the year
Annual General Meeting
The AGM was held on Thursday, March 31, 2022 through postal 
voting. A total of 904 shareholders were represented at the 
Meeting and these accounted for approximately 68.3% of the 
votes in the company. Eva Hägg, Attorney-at-Law, was elected 
Chairman of the Meeting. 
The Meeting resolved that a dividend of SEK 3.25 per share be 
paid for the 2021 fiscal year, of which SEK 2.25 comprised a 
­egular dividend and SEK 1.00 an extra dividend. The AGM also 
decided on the re-election of Board members Pär Boman, 
­Lennart Evrell, Annemarie Gardshol, Carina Håkansson, Ulf 
Larsson, Martin Lindqvist, Anders Sundström and Barbara 
Milian Thoralfsson and the election of new Board members Åsa 
Bergman and Karl Åberg. Pär Boman was re-elected as the 
Chairman of the Board. Ernst & Young was re-elected as auditor 
for the period until the 2023 AGM. The Meeting resolved on the 
approval of the remuneration report for 2021.
The minutes of the Meeting in full and information on the 
2022 AGM are available at www.sca.com. 
Nomination Committee
The 2017 AGM decided that the following procedure for 
appointing the Nomination Committee is to apply until further 
notice. The Nomination Committee is to comprise representa-
tives from the four largest shareholders in terms of voting rights 
as per the shareholders’ register maintained by the company on 
the final banking day of August, as well as the Chairman of the 
Board. The Chairman of the Board is to convene the first meeting 
of the Nomination Committee. The member representing the 
largest shareholder in terms of votes is to be appointed as 
Chairman of the Nomination Committee. If necessary, due to 
subsequent ownership changes, the Nomination Committee is 
entitled to call on one or two additional members from among 
the next largest shareholders in terms of voting rights, so that 
the total number of members amounts to not more than seven. 
In the event that a member steps down from the Nomination 
Committee before the task is completed and the Nomination 
Committee decides it would be beneficial for a replacement to 
be appointed, such a replacement is to be appointed by the 
same shareholder or, if this shareholder is no longer among the 
largest shareholders in terms of voting rights, by the largest 
unrepresented shareholder in terms of voting rights. Changes 
to the composition of the Nomination Committee are to be dis-
closed immediately. The composition of the Nomination Com-
mittee is to be disclosed not later than six months prior to the 
AGM. No remuneration is to be paid to the members of the 
­Nomination Committee. Any expenses incurred during the work 
of the Nomination Committee are to be paid by the company. 
The mandate period of the Nomination Committee extends until 
the composition of the next Nomination Committee is disclosed. 
The Nomination Committee is to submit proposals relating to 
the Chairman of the General Meeting, the Board of Directors, the 
Chairman of the Board, Board fees for the Chairman of the Board 
and each of the other Board members, including remuneration 
for committee work, the company’s auditors and auditors’ fees.
In its work, the Nomination Committee has considered the rules 
that apply to the independence of Board members, as well as 
the requirement of diversity and breadth with the endeavor to 
achieve an even gender distribution and that the selection for 
those nominated shall be based on expertise and experience 
­relevant to SCA.
When preparing its proposal for the election of auditors and 
remuneration, the Nomination Committee has also considered 
the Audit Committee’s recommendation.
Composition of the Nomination Committee for the 2023 
AGM
The composition of the Nomination Committee for the 2023 
AGM is as follows:
•	Helena Stjernholm, AB Industrivärden, Chairman of the 
­Nomination Committee
•	Nikolai Schjold1), Norges Bank Investment Management
•	Anders Oscarsson, AMF Insurance and Funds 
•	Mikael Hallåker, Handelsbanken Pension Foundation, among 
others
•	Pär Boman, Chairman of the Board, SCA
1)	Replaced Petter Johnsen on October 19, 2022.
Shareholders have had the opportunity to submit proposals to 
the Nomination Committee. The Nomination Committee’s pro-
posal for the 2023 AGM is presented in the notice convening the 
AGM on SCA’s website www.sca.com. The 2023 AGM will be 
held on March 30.
Since its appointment, the Nomination Committee was convened 
three times in 2022. The Chairman of the Board has presented 
the Board evaluation and provided the Nomination Committee 
with information regarding Board and committee work during the 
year. 
Diversity policy
When preparing proposals for the Board for the 2022 AGM, 
the Nomination Committee has applied Item 4.1 of the Swedish 
Corporate Governance Code as its diversity policy. The policy 
aims to ensure that the Board has – with regards to the com­
pany’s operations, stage of development and circumstances in 
general – an appropriate composition characterized by diversity 
and breadth as regards the AGM-elected members’ expertise, 
experience and background, with the endeavor to achieve an 
even gender ratio. The 2022 AGM resolved in accordance with 
the Nomination Committee’s proposal, which meant ten mem-
bers were elected, of which four were women and six men. When 
preparing proposals for the Board for the 2023 AGM, the Nomi-
nation Committee has worked with and applied the diversity 
policy in a corresponding manner, which resulted in the proposal 
for the Board described in the notice convening the AGM. 
The Nomination Committee’s proposal entails the appointment 
of ten Board members, of which four are women and six men. 
Board of Directors
Ten Board members were appointed at the 2022 AGM. In addi-
tion to these members, there are three employee representatives 
and their three deputies.
The SCA Board of Directors comprises the AGM-elected mem-
bers Pär Boman (Chairman), Åsa Bergman, Lennart Evrell, 
Annemarie Gardshol, Carina Håkansson, Ulf Larsson (President 
Corpor ate governance
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Board of Directors’ Report
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Sustainability facts
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and CEO), Martin Lindqvist, Anders Sundström, Barbara Milian 
Thoralfsson and Karl Åberg. 
The independence of Board members is presented in the table 
on page 78. SCA complies with the requirements of the Swedish 
Code of Corporate Governance that stipulate that not more than 
one member elected by the AGM shall be a member of company 
management, that the majority of the members elected by the 
AGM shall be independent of the company and company man-
agement, and that not fewer than two of these shall also be inde-
pendent of the company’s major shareholders. All of the AGM-
elected Board members have experience of the requirements 
incumbent upon a listed company. 
The following three employee representatives were appointed 
to the Board for the period until the 2023 AGM: Niclas Andersson, 
Roger Boström and Maria Jonsson and their deputies Stefan 
Lundkvist, Malin Marklund and Peter Olsson. Further information 
concerning the Board members can be found on pages 80–81.
Board activities
In 2022, the Board was convened 13 times. The Board has 
estab­lished working procedures. The working procedures de- 
scribe in detail which ordinary agenda items are to be addressed 
at the various Board meetings of the year. Recurring agenda 
items are finances, the market situation, investments and adop-
tion of the financial statements. The Board also establishes and 
evaluates the company’s overall objectives and strategy and 
decides on significant internal rules. Another task is to con­
tinuously monitor the internal control and compliance of the 
company and its employees with internal and external rules, and 
that the company has well-functioning procedures for market 
disclosures. On a regular basis throughout the year, the Board 
also deals with reports from the Audit and Remuneration Com-
mittees and reports on internal control and financial operations. 
The company’s auditor regularly presents a report on the audit 
work and these issues are discussed by the Board. 
In 2022, the Board conducted standard duties, including 
strategy issues.
Evaluation of the Board’s work
The work of the Board, as that of the Chairman and the Presi-
dent, is evaluated annually using a systematic and structured 
process. The purpose is to obtain a sound basis for the Board’s 
own development work and to provide the Nomination Com-
mittee with relevant analysis for its nomination work. In 2022, the 
evaluation took the form of a questionnaire as well as group and 
individual discussions between the Chairman of the Board and 
the members. The evaluation covers such areas as the Board’s 
methods of work, effectiveness, expertise and the year’s work. 
The Board was provided with feedback after the results were 
compiled. The Nomination Committee was also informed of the 
results of the evaluation.
Audit Committee
The Audit Committee comprises Barbara Milian Thoralfsson 
(Chairman), Pär Boman and Martin Lindqvist. The Audit Com-
mittee held six meetings in 2022. In its monitoring of the financial 
reporting, the Committee dealt with relevant accounting issues, 
internal audit reviews, audit work, review of internal control pro-
cedures and the measurement of the Group’s forest assets. The 
Audit Committee also prepared a recommendation to be used by 
the Nomination Committee when deciding on its proposal to the 
AGM regarding the election of auditors and remuneration. 
Remuneration Committee
The Remuneration Committee comprises Pär Boman, Chairman, 
Lennart Evrell and Anders Sundström. The Remuneration Com-
mittee held eight meetings in 2022. Activities in 2022 mainly con-
cerned remuneration and other employment terms and condi-
tions for senior executives, and current remuneration structures 
and remuneration levels in the Group.
Internal audit
The basis for the internal audit work is a risk-based annual plan. 
The plan derives from a risk assessment process based on, 
among other, input from operations, management and the 
Board. The annual plan is approved by the Audit Committee. In 
2022, 15 internal audit assignments were performed. Observa-
tions from the assignments are reported to the Audit Committee. 
During 2022, work included follow-up of the organization’s work 
concerning the effectiveness of internal controls and compliance 
with policies and other governing documents, including the Code 
of Conduct.
External auditors
The 2022 Annual General Meeting appointed accounting firm 
Ernst & Young AB as the company’s auditor for a mandate period 
of one year. The accounting firm notified the company that 
Fredrik Norrman, Authorized Public Accountant, would be the 
auditor in charge. The auditor owns no shares in SCA.
In accordance with its working procedures, the Board met with 
the auditor at five scheduled Board meetings in 2022. The auditor 
also attended each meeting of the Audit Committee. At these 
meetings, the auditor presented and received opinions on the 
focus and scope of the planned audit and delivered verbal audit 
and review reports. Further, at the Board’s third scheduled 
autumn meeting, the auditor delivered a preliminary report on the 
audit for the year. The working procedures specify a number of 
mandatory issues that must be covered. These include matters 
of importance that have been a cause for remark or discussion 
during the audit, business routines and transactions where dif-
ferences of opinion may exist regarding the choice of accounting 
procedures. The auditor shall also provide an account of consul-
tancy work assigned to the audit firm by SCA and the audit firm’s 
independence in relation to the company and its management. 
On each occasion, Board members have had an opportunity 
to ask the auditor questions. Certain parts of the detailed dis­
cussion on the accounts take place without representatives of 
company management being present.
Corpor ate governance
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SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

Board of Directors and committees
Names
Elected
Depen-
dence
The Board of 
Directors
Atten-
dance
Audit 
­Committee
Atten-
dance
Remuneration 
Committee
Atten-
dance
Pär Boman
2010
Chairman
13
Board member
6
Chairman
8
Charlotte Bengtsson1)
2017
Board member
5
Åsa Bergman2)
2022
Board member
6
Lennart Evrell 
2017
Board member
13
Board member
8
Annemarie Gardshol 
2015
Board member
11
Carina Håkansson
2021
Board member
13
Ulf Larsson
2017
Board member
13
Martin Lindqvist 
2017
Board member
13
Board member
6
Bert Nordberg1)
2012
Board member
5
Board member
5
Anders Sundström3)
2018
 
Board member
13
Board member
3
Barbara Milian Thoralfsson
2006
Board member
13
Chairman
6
Karl Åberg2)
2022
 
Board member
8
1)	Charlotte Bengtsson and Bert Nordberg stepped down from the Board on March 31, 2022. 
2)	Åsa Bergman and Karl Åberg joined the Board on March 31, 2022.
3)	Anders Sundström joined the Remuneration Committee on March 31, 2022.
	 Dependent in relation to the company’s major shareholder – Industrivärden
	 Dependent in relation to the company and corporate management – President of Skogforsk
	 President and CEO of SCA – Dependent in relation to the company and corporate management
The largest shareholders
As of December 31, 2022, AB Industrivärden was the company’s 
largest shareholder, with a holding totaling 33,785,290 Class A 
shares and 38,300,000 Class B shares, corresponding to 10.3% 
of the total number of shares and 29.3% of the total number of 
votes in the company. No other shareholder in the company has 
a direct or indirect shareholding whose voting rights represent 
one-tenth or more of the total number of votes in the company. 
Number of meetings in 2022
The Board of Directors
13
Audit Committee
6
Remuneration Committee 
8
Remuneration, Executive Management Team and Board of Directors
Guidelines
The 2022 Annual General Meeting adopted guidelines for remu-
neration of senior executives. The total remuneration package 
comprises a fixed salary, variable salary, other benefits, and a 
pension. See Note C3.
Remuneration of the President and CEO and other senior 
executives
Remuneration of the President and CEO and other senior execu-
tives is presented in Note C3.
Variable remuneration and strategic targets
Programs for variable remuneration are designed to support the 
Group’s strategic targets. The short-term program is individually 
adapted and based mainly on profit, cash flow and capital effi-
ciency. The long-term program is based on the SCA share’s 
long-term total shareholder return compared with a peer group 
of other companies and in relation to the OMXS30 index as well 
as sustainability conditions related to increased climate benefit, 
million tonnes of CO2e, during the performance period.
Remuneration of the Board
The total remuneration of the AGM-elected Board members 
is presented in Note C4.
Remuneration report
The Board has presented a separate remuneration report, 
which is available on pages 180–181 and at www.sca.com.
Corpor ate governance
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Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

Internal control and financial reporting
The Board’s responsibility for internal governance and control is 
regulated in the Swedish Companies Act, the Annual Accounts 
Act and the Swedish Corporate Governance Code. The Annual 
Accounts Act requires that the company, each year, describes its 
system for internal control and risk management with respect to 
financial reporting. The Board bears the overall responsibility for 
financial reporting. Its working procedures regulate the internal 
division of work between the Board and its committees.
The Audit Committee has an important task of preparing the 
Board’s work to assure the quality of financial reporting. This 
preparation work includes issues relating to internal control and 
regulation compliance, control of recognized values, estima-
tions, assessments and other activities that may impact the 
quality of the financial statements. The Committee has charged 
the company’s auditor with the task of specifically examining the 
degree of compliance in the company with the rules for internal 
control, both general and detailed.
Financial reporting to the Board
The Board’s formal work plan stipulates which reports and infor-
mation of a financial nature shall be submitted to the Board at 
each scheduled meeting. The President and CEO ensures that 
the Board receives the reports required to enable the Board 
to continuously assess the company’s and Group’s financial 
position. Detailed instructions specifically outline the types of 
reports that the Board is to receive at each meeting.
External financial reporting
The quality of external financial reporting is guaranteed via a 
number of actions and procedures. The President and CEO is 
responsible for ensuring that all information issued, such as 
press releases with financial content, presentation material for 
meetings with the media, owners and financial institutions, is 
correct and of a high quality. The responsibilities of the compa-
ny’s auditors include reviewing accounting issues that are critical 
for the financial reporting and reporting their observations to the 
Audit Committee and the Board of Directors. In addition to the 
audit of the annual accounts, a review of the six-month report 
and of the company’s administration and internal control is 
­carried out.
Risk management
With regard to financial reporting, the risk that material errors 
may be made when reporting the company’s financial position 
and results is considered the primary risk. To minimize this risk, 
control documents have been established pertaining to 
accounting, procedures for annual accounts and follow-up of 
reported annual accounts. There is also a common system for 
reporting annual accounts. SCA’s Board of Directors and man-
agement assess the financial reporting from a risk perspective 
on an ongoing basis. To provide support for this assessment, 
the company’s income statement and balance sheet items are 
compared with earlier reports, budgets and other forecasts. 
Control activities and follow-up
Significant instructions and guidelines related to financial 
reporting are prepared and updated regularly by the Group 
Finance Function and are accessible on the Group’s intranet. 
The Group Finance Function is responsible for ensuring compli-
ance with instructions and guidelines. Process owners at various 
levels within SCA are responsible for carrying out the necessary 
control measures with respect to financial reporting. An important 
role is played by the business areas and support units’ finance 
and controller organizations, which are responsible for ensuring 
that financial reporting from each unit is correct, complete and 
delivered in a timely manner. The company’s control activities 
are supported by the budgets prepared by each unit and 
updated during the year through regular forecasts.
SCA has a standardized system of control measures involving 
processes that are significant to the company’s financial 
reporting, among other matters. The controls are adapted to the 
operational process and system structure of each unit. Accord-
ingly, each unit prepares a record of the actual controls to be 
carried out in the unit in question. Control of these processes is 
assessed and updated through self-assessments followed up by 
a review by the internal control function. In some cases, these 
control measures are validated by internal audit and external 
parties.
Financial results are reported and examined regularly within the 
management teams of the operating units and communicated to 
SCA’s management at monthly and quarterly meetings. Before 
reports are issued, results are analyzed to identify and eliminate 
any mistakes in the process until closing. 
The Board follows up on the effectiveness of the internal control 
system, functioning of the reporting to the Board through con-
tinues reporting from the President and CEO, the CFO, and also 
on the internal audit work in accordance with the annual audit 
plan. Internal audit reports its observations regularly to the Audit 
Committee. Internal audit’s tasks include following up compli-
ance with the company’s policies. The results of the follow-up 
work are also reported to the Board through the Audit Com-
mittee.
Internal control of other processes
The basis for the internal control is identifying and assessing 
risks. A review of identified risks is conducted every year with the 
addition of any new identified risks. At the same time, an evalua-
tion is carried out of the potential impact of the risks on profits 
and the brand, and the probability that the risk will occur. 
Risks that threaten business objectives are linked to the com­
pany’s processes. For each process and identified risks, the 
control activities are defined that must be established to manage 
risks, and a description of how self-assessments are used to 
monitor the effectiveness of the control activities. 
Control activities to mitigate the identified risks are documented, 
and the effectiveness of each control is tested on an annual 
basis through self-assessments. The Group’s internal control 
function summarizes the result of the self-assessments and 
reports to management and the Board.
Activities in 2022
In 2022 SCA’s units conducted internal control in accordance 
with the company’s framework. The annual review of the rele-
vance of the controls was carried out and resulted in changes 
to some of the controls. The results of the self-assessment have 
been reported to the Board.
Corpor ate governance
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SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

Board of Directors and Auditors
Pär Boman (1961) 
Engineering and Business/ 
Economics degree
Chairman of the Board since 2015. 
Chairman of the Board of Svenska 
Handelsbanken AB and Essity AB. 
Deputy Chairman of the Board of 
AB Industrivärden and member of 
the Board of Skanska AB. Former 
President of Handelsbanken 
during the period 2006 to 2015.
Elected: 2010
Class B shares: 10,000
Independent of the company and 
corporate management.
Åsa Bergman (1967)
MSc Eng.
President and CEO of Sweco AB. 
Board member of Swegon AB. 
Previously Board member of AB 
Persson Invest and senior posi-
tions in the Sweco Group.
Elected: 2022
Class B shares: 573
Independent of the company, 
­corporate management and SCA’s 
major shareholders.
Lennart Evrell (1954)
MSc Eng. and Econ.
Chairman of the Board of SSAB. 
Member of the Board of Epiroc. 
Previously Board member of ICA, 
the Confederation of Swedish 
Enterprise and Industriarbetsgiv-
arna, as well as former President 
and CEO of Boliden, Sapa and 
Munters.
Elected: 2017
Class B shares: 4,000
Independent of the company, 
­corporate management and SCA’s 
major shareholders.
Annemarie Gardshol (1967)
MSc Eng.
President and CEO of PostNord 
Group AB. Board member of 
Essity AB. Former President of 
PostNord Sverige AB and Post-
Nord Strålfors Group AB, in addi-
tion to various management posi-
tions at PostNord and Gambro AB 
as well as management consultant 
at McKinsey & Company. 
Elected: 2015
Class B shares: 6,200
Independent of the company, 
­corporate management and SCA’s 
major shareholders.
Carina Håkansson (1961)
BSc Forestry
Board member and member of 
Audit Committee of AFRY AB, 
Board member of Vasaloppet and 
Chairman of the Royal Swedish 
Academy of Engineering Sciences 
(IVA) Division VIII. Former Presi-
dent of the trade association 
Swedish Forest Industries 
between 2013–2020, President of 
DalaKraft between 2009–2013 and 
President of Stora Enso Skog 
between 2004–2009. 
Elected: 2021
Class B shares: 9,100
Independent of the company, 
­corporate management and SCA’s 
major shareholders.
Ulf Larsson (1962)
BSc Forestry 
President and CEO of SCA. 
Chairman of the Swedish Forest 
Industries and Board member of 
CEPI. Former President of SCA 
Forest Products AB, 2008–2017, 
as well as Executive Vice President 
of SCA 2016–2017.
Elected: 2017
Employed since: 1992
Class A shares: 26,000
Class B shares: 100,000
Independent of SCA’s major 
­shareholders.
Martin Lindqvist (1962)
Engineer and Master of Business 
Administration
President and CEO of SSAB. 
Chairman of the Board of Jern­
kontoret, and of Stål och Metall. 
Member of Industriarbetsgivarna. 
Previously held senior positions, 
including at SSAB and NCC.
Elected: 2017
Independent of the company, 
­corporate management and SCA’s 
major shareholders.
Anders Sundström (1952)
Academic studies in economy 
and politics
Chairman of the Board of SkiStar 
AB, Kaunis Holding, NMI Group, 
Hedlunda Industri AB, Ekhaga 
Utveckling AB and Nordion Energi 
AB. Previously Chairman of the 
Board at Swedbank and CF, 
among others. Many years of oper-
ating experience within both the 
industry and the financial sector, 
including as CEO for Folksam. Has 
held several ministerial posts and 
other political assignments.
Elected: 2018
Class B shares: 6,000
Independent of the company, 
­corporate management and SCA’s 
major shareholders.
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Niclas Andersson (1974)
Chairman GS trade union branch, 
SCA Wood Scandinavia AB, 
­Tunadal
Member of the Swedish Trade 
Union Confederation (LO).
Appointed: 2021
Class B shares: 20
Roger Boström (1971)
Chairman of the Swedish Paper 
Workers’ Union dept. 167 at SCA 
Massa AB, Östrand pulp mill.
Member of the Swedish Trade 
Union Confederation (LO). 
Appointed: 2013
Class B shares: 55
Maria Jonsson (1966)
Chairman Unionen, SCA staff 
functions
Member of the Council for 
­Negotiation and Cooperation 
(PTK). 
Appointed: 2022, formerly deputy 
since 2017
Employee representa-
tives, deputies
Stefan Lundkvist (1977)
Chairman of Swedish Paper 
Workers Union, dept 158, SCA 
Munksund AB
Member of the Swedish Trade 
Union Confederation (LO). 
Appointed 2017.
Malin Marklund (1986)
Chairman GS trade union 
Munksund sawmill
Member of the Swedish Trade 
Union Confederation (LO).
Appointed 2022.
Peter Olsson (1975)
Chairman Ledarna (Swedish 
Organization for Managers), 
SCA Obbola AB.
Member of the Council for Nego-
tiation and Cooperation (PTK). 
Appointed 2021. 
Class B shares: 1,130
Honorary Chairman 
Bo Rydin
MSc Econ., Hon PhD Econ., 
Hon PhD Engineering
Auditors
Ernst & Young AB
Senior Auditor: Fredrik Norrman, 
Authorized Public Accountant
Secretary to the Board 
as of October 1, 2022
Sofia Haga
Master of Laws
Senior Vice President, Legal 
Affairs Group Function, General 
Counsel.
Karl Åberg (1979)
Master of Business Administration
Head of the investment and 
­analysis organization at AB Indus-
trivärden. Member of the Board of 
Alleima. Former partner and cor-
porate director at Zeres Capital, 
partner at CapMan Public Markets 
and formerly active in Handels-
banken Capital Markets.
Elected: 2022
Independent of the company and 
corporate management.
Barbara Milian Thoralfsson 
(1959)
MBA, BA
Chairman of the Board of Exclusive 
Networks SA. Board member of 
Essity AB and Hilti AG. Member of 
Advisory Board at SpareBank 1 
Markets. Former President of 
NetCom ASA 2001–2005 and Pres-
ident of Midelfart & Co AS 1995–
2000. Former member of the 
Boards of AB Electrolux, Telenor 
ASA Cable & Wireless Plc, Orkla 
ASA, Tandberg ASA and G4S Plc 
as well as industry advisor to EQT.
Elected: 2006
Independent of the company, 
­corporate management and SCA’s 
major shareholders.
Employee representatives
Information regarding individuals’ own and related parties’ shareholdings pertains to the situation on December 31, 2022.
Corpor ate governance
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Executive Management Team
Ulf Larsson (1)
President and CEO
BSc Forestry 
Employed since: 1992
Class A shares: 26,000
Class B shares: 100,000
Stina Danielsson (2)
Senior Vice President,  
Human Resources 
BA 
Employed since: 2005
Class B shares: 7,806
Anders Edholm (3)
Senior Vice President Sustainability and 
Communications
Degree of Bachelor of Science in Military 
Studies
Employed since: 2021
Class B shares: 4,300
Kristina Enander (4)
President, Pulp 
MSc Eng. chemical engineering in 
physics
Employed since: 1993
Class B shares: 13,916
Andreas Ewertz (5)
CFO
MSc Eng. and Management. 
Employed since: 2017
Class B shares: 4,226
Sofia Haga (6)
Senior Vice President Legal Affairs and 
General Counsel
Master of Laws 
Employed since: 2022
9.  7.  12.  6.  10.  5.
Corpor ate governance
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Mikael Källgren (7)
President, Renewable Energy
BSc Energy 
Employed since: 2015
Class B shares: 5,482
Jerry Larsson (8)
President, Wood 
MSc Eng., MBA 
Employed since: 2003
Class B shares: 10,025
Jonas Mårtensson (9)
President, Forest
MSc Eng.
Employed since: 2005
Class B shares: 32,100
1.  11.  4.  8.  2.  3.
Mats Nordlander (10)
President, Containerboard
Dipl. Eng.
Employed since: 2015 
Class B shares: 17,379
Magnus Svensson (11)
President, Sourcing & Logistics
MSc Eng.
Employed since: 1993
Class A shares: 26,000
Class B shares: 47,380
Ole Terland (12)
Senior Vice President, Strategic  
Development
Doctor of Technology
Employed since: 2016
Class A shares: 2,250
Class B shares: 38,909
Corpor ate governance
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Board of Directors’ Report
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Financial statements 
and notes
Amounts that are reconcilable to the income statement, 
balance sheet, equity and cash flow statement are marked 
with the following symbols:
 IS  Consolidated income statement 
 OCI  Consolidated statement of comprehensive income 
 EQ  Consolidated statement of change in equity
 BS  Consolidated balance sheet
 CF  Consolidated cash flow statement
Group notes
A.
Accounting principles 
and application of 
alternative perfor-
mance measures 
(APM) 
B.
Sales and earnings
C.
Employees
D.
Operating assets and 
liabilities
E.
Capital structure and 
financing
pages 91–95
pages 96–100
pages 101–106
pages 107–115
pages 116–125
A1.
page 91
General accounting 
­principles and new 
accounting rules
B1.
page 96
Segment reporting and 
revenue from contracts 
with customers
C1.
page 101
Personnel costs
D1.
page 107
Intangible fixed assets
E1.
page 116
Financial instruments by 
category and measure-
ment level 
A2.
page 93
Application of financial 
measures not included in 
IFRS
B2.
page 98
Other operating income
C2.
page 101
Personnel data
D2.
page 108
Tangible fixed assets
E2.
page 118
Financial assets, cash 
and cash equivalents 
B3.
page 98
Raw materials and 
­consumables
C3.
page 101
Remuneration of senior 
executives
D3.
page 109
Forest assets
E3.
page 118
Trade receivables
B4.
page 98
Other operating 
expenses
C4.
page 104
Fees to Board members 
in the Parent Company
D4.
page 112
Right-of-use assets and 
lease liabilities
E4.
page 119
Financial liabilities 
B5.
page 99
Taxes
C5.
page 104
Remuneration after com-
pletion of employment
D5.
page 114
Inventories 
E5.
page 121
Liquidity risk 
D6.
page 114
Other current receivables 
E6.
page 121
Derivatives and hedge 
accounting
D7.
page 114
Other liabilities
E7.
page 122
Financial income  
and expenses 
D8.
page 115
Other provisions
E8.
page 123
Equity 
D9.
page 115
Trade payables
Contents
Group Financial statements
Consolidated income statement   IS  ..............................................  86
Consolidated statement of comprehensive income  OCI  ..............  87
Consolidated statement of change in equity  EQ  ...........................  88
Consolidated balance sheet  BS  ....................................................  89
Consolidated cash flow statement  CF  ..........................................  90
 
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Amounts that are reconcilable to the income statement, 
­balance sheet, equity and cash flow statement are marked 
with the following symbols:
 PIS  Parent Company income statement 
 POCI  Parent Company statement of comprehensive income 
 PEQ  Parent Company statement of change in equity
 PBS  Parent Company balance sheet
 PCF  Parent Company cash flow statement
F.
Group structure
G.
Other
pages 126–128
page 129
F1.
page 126
Subsidiaries
G1.
page 129
Non-current assets held 
for sale and discontinued 
operations
F2.
page 126
Associated companies 
and joint ventures
G2.
page 129
Contingent liabilities, 
pledged assets and 
commitments 
F3.
page 128
Corporate acquisitions 
and divestments
G3.
page 129
Transactions with related 
parties
G4.
page 129
Events after the end of 
the reporting period
Parent Company notes
PC.
Parent Company notes
pages 134–138
PC1.
page 134
Other operating expenses
PC2.
page 134
Personnel and Board costs
PC3.
page 134
Personnel data
PC4.
page 134
Provisions for pensions
PC5.
page 134
Appropriations
PC6.
page 135
Taxes
PC7.
page 135
Tangible fixed assets
PC8.
page 136
Participations in Group companies
PC9.
page 136
Receivables from and liabilities to subsidiaries
PC10.
page 136
Other current receivables
PC11.
page 137
Financial instruments
PC12.
page 137
Other current liabilities 
PC13.
page 138
Share capital
PC14.
page 138
Contingent liabilities, pledged assets and guarantees
PC15.
page 138
Proposed disposition of earnings
Parent Company Financial statements
Parent Company income statement  PIS  .....................................  130
Parent Company statement of comprehensive income  POCI  ....  130
Parent Company statement of change in equity  PEQ  .................  131
Parent Company balance sheet  PBS  ..........................................  132
Parent Company cash flow statement  PCF  ................................  133
 
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SEKm
Note
2022
2021
Net sales
B1
20,794
18,822
Other operating income
B1, B2
3,163
2,649
Change in inventories
–83
–531
Change in value in biological assets
D3
1,825
1,753
Raw materials and consumables
B3
–4,577
–4,453
Personnel costs
C1
–2,627
–2,603
Other operating expenses
B4
–8,278
–6,599
Result from participations in associated companies and joint ventures
F2
–23
71
EBITDA
10,194
9,109
Depreciation and impairment
–1,552
–1,475
Operating profit
8,642
7,634
Financial income
E7
65
43
Financial expenses
E7
–104
–150
Profit before tax
8,603
7,527
Income tax
B5
–1,782
–1,426
Profit for the year
6,821
6,101
Profit for the year attributable to:
Owners of the Parent
6,748
5,941
Non-controlling interests
73
160
Average number of shares, millions
702.3
702.3
Earnings per share
Earnings per share (SEK) – owners of the Parent1)
9.61
8.46
Dividend per share, SEK2)
2.50
3.25
1)	There are no dilution effects.
2)	Board’s proposal for 2022.
Consolidated income statement   IS 
Group
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SEKm
Note
2022
2021
 IS   Profit for the period 
6,821
6,101
Other comprehensive income for the period:
Items that cannot be transferred to profit for the period
Change in value land assets
D3
10,398
7,479
Revaluation of defined benefit pension plans
394
448
Income tax attributable to components in other comprehensive income
–2,235
–1,631
Total
8,557
6,296
Items that have been or may be reclassified subsequently to the income statement
Cash flow hedges:
Result from revaluation of derivatives recognized in equity
–176
–8
Transferred to the income statement for the period
523
–202
Hedge cost
–13
–21
Translation differences in foreign operations
177
32
Income tax attributable to components in other comprehensive income
–78
48
Total
433
–151
Other comprehensive income for the period, net of tax
8,990
6,145
Total comprehensive income for the period
15,811
12,246
Total comprehensive income attributable to:
 EQ   Owners of the Parent
15,738
12,086
 EQ   Non-controlling interests
73
160
Consolidated statement of comprehensive income   OCI 
Group
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Consolidated statement of change in equity   EQ 
SEKm
2022
2021
Attributable to owners of the Parent
Value January 1
83,055
72,163
 OCI   Total comprehensive income for the period
15,738
12,086
Cash flow hedge, transferred to cost of hedged investments
–6
66
Tax on cash flow hedge, transferred to cost
1
–14
Cash dividend
–2,282
–1,405
Acquisition of non-controlling interests
–148
160
Revaluation effect upon acquisition of non-controlling interests
-
–1
Value December 31
96,358
83,055
Non-controlling interests
Value January 1
-
-
 OCI   Total comprehensive income for the period
73
160
Acquisition of non-controlling interests
–73
–160 
Value December 31
- 
- 
Total equity, value December 31
96,358
83,055
For further information, see Note E8.
Group
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SEKm
Note
2022
2021
ASSETS
Non-current assets
Intangible assets
D1
731
526
Buildings, land, machinery and equipment 
D2
24,800
21,737
Forest assets
D3
97,882
84,497
of which land assets
D3
42,201
31,188
of which biological assets
D3
55,681
53,309
Right-of-use assets
D4
561
614
Holdings in associated companies and joint ventures
F2
1,106
428
Surplus in funded pension plans
C5 
1,689
1,564
Non-current financial assets 
E2
165
80
Deferred tax assets
B5
22
18
Other non-current assets
176
1
Total non-current assets
127,132
109,465
Current assets
Inventories
D5
4,856
4,189
Trade receivables
E3
3,007
2,516
Current tax assets
B5
3
1
Other current receivables
D6
1,415
892
Current financial assets
E2
106
114
Cash and cash equivalents
E2
836
1,056
Total current assets
10,223
8,768
Total assets
137,355
118,233
EQUITY AND LIABILITIES
Equity 
E6, E8
Owners of the Parent
Share capital 
2,350
2,350
Other capital provided 
6,830
6,830
Reserves 
31,833
23,161
Retained earnings including profit for the year
55,345
50,714
Total equity owners of the Parent
96,358
83,055
Non-current liabilities
Non-current financial liabilities 
E4
10,751
9,083
Provisions for pensions 
C5
245
427
Deferred tax liabilities
B5
22,117
18,885
Other non-current provisions 
D8
48
53
Other non-current liabilities 
D7
66
50
Total non-current liabilities 
33,227
28,498
Current liabilities
Current financial liabilities 
E4
1,789
1,056
Trade payables 
D9
3,622
3,478
Current tax liabilities 
B5
224
265
Current provisions 
D8
108
239
Other current liabilities 
D7
2,027
1,642
Total current liabilities
7,770
6,680
Total liabilities
40,997
35,178
Total equity and liabilities 
137,355
118,233
Consolidated balance sheet   BS 
Group
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SEKm
Note
2022
2021
Operating activities
 IS  Profit before tax 
8,603
7,527
Change in liabilities regarding restructuring costs
–40
–394
 T:1   Adjustment for non-cash items
–51
–315
Operating profit excluding non-cash items
8,512
6,818
Paid tax
B5 
–859
–538
Cash flow from operating activities before changes in working capital
7,653
6,280
Cash flow from changes in working capital
Change in inventories
–663
–163
Change in operating receivables
–957
–445
Change in operating liabilities
292
302
Cash flow from operating activities
6,325
5,974
Investing activities
Corporate acquisitions
–832
0
Divestments
20
0
 T:2   Investments in intangible and tangible fixed assets
–5,961
–5,111
 T:2   Sale of tangible fixed assets
259
193
Acquisition of financial assets
–17
–4
Loans granted to external parties
0
–22
Repayment of loans from external parties
8
11
Cash flow from investing activities
–6,523
–4,933
Financing activities
Loans raised
E4
4,223
1,481
Amortization of debt 
E4
–1,788
–1,158
Amortization of debt, leases
E4
–183
–185
 EQ  Dividend
–2,282
–1,405
Cash flow from financing activities
–30
–1,267
Cash flow for the period
–228
–226
Cash and cash equivalents, January 1
1,056
1,273
Exchange differences in cash and cash equivalents
8
9
Cash and cash equivalents, December 31
E2
836
1,056
 T:1   Adjustment for non-cash items
SEKm
2022
2021
 IS  Depreciation and impairment of non-current assets
1,552
1,475
 IS  Measurement of fair value of forest assets                                                                           D3
–1,825
–1,753
Gain/loss on asset sales and swaps
–51
–46
Dissolution of provisions
–11
–6
Unpaid pertaining to one-off items related to the discontinuation of publication paper operations
–
0
Other
284
15
Total
–51
–315
 T:2   Net investments in intangible and tangible fixed assets
SEKm
2022
2021
Current net investments in intangible and tangible fixed assets
–1,351
–1,195
Strategic net investments in intangible and tangible fixed assets
–4,351
–3,723
Total
–5,702
–4,918
For information concerning the Group’s liquidity reserve, refer to the risk section on page 69.
Consolidated cash flow statement   CF 
Group
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A. ACCOUNTING PRINCIPLES AND APPLICATION OF ALTERNATIVE  
PERFORMANCE MEASURES (APM)
A1. GENERAL ACCOUNTING PRINCIPLES AND NEW ACCOUNTING RULES
Reading instructions
General accounting principles   AP   and new accounting rules are 
­presented below. Other accounting principles considered material by 
SCA are presented in conjunction with the respective notes. The same 
principles are usually applied in both the Parent Company and the 
Group. In some cases, the Parent Company applies principles other 
than those used by the Group and, in such cases, these principles are 
specified under the respective note in the section about the Parent 
Company.
Key assessments and assumptions   KAA   are presented under the 
respective notes. The preparation of financial statements in confor-
mity with IFRS (International Financial Reporting Standards) and gen-
erally accepted Swedish accounting principles requires assessments 
and assumptions to be made that affect recognized asset and liability 
items and income and expense items, respectively, as well as other 
information disclosed. These assessments and assumptions are often 
based on historical experience, but also on other factors, including 
expectations of future events. With other assessments and assump-
tions, the result may be different and the actual result will seldom fully 
concur with the estimated result. 
The areas that SCA considers to be impacted the most by assess-
ments and assumptions are: 
•	Segment reporting and revenue from contracts with customers, 
Note B1
•	Remuneration after completion of employment, Note C5
•	Forest assets, Note D3
Amounts that are reconcilable to the income statement, balance 
sheet, comprehensive income, equity and cash flow statement and 
tables in notes are marked with the following symbols.
 IS  Consolidated income statement
 OCI  Consolidated statement of comprehensive income 
 EQ  Consolidated statement of change in equity
 BS  Consolidated balance sheet
 CF  Consolidated cash flow statement
 Tx:x   Reference to table in note
Basis for preparation
The SCA Group’s financial statements are prepared in accordance 
with the Annual Accounts Act, International Financial Reporting Stan-
dards (IFRS) and International Accounting Standards (IAS), as adopted 
within the EU, and the Swedish Financial Reporting Board, Recom-
mendation RFR 1 Supplementary Accounting Rules for Groups. The 
Parent Company’s financial statements are prepared in accordance 
with RFR 2, Reporting by Legal Entities, and the Annual Accounts Act. 
The accounts for both the Group and the Parent Company relate to the 
fiscal year that ended on December 31, 2022. SCA applies the histor-
ical cost method as basic principle for measurement of assets and lia-
bilities. Biological assets and financial assets and liabilities, including 
derivative instruments, are, however, measured at fair value in the 
income statement. Land assets attributable to forest assets are mea-
sured at fair value in other comprehensive income. Financial assets in 
the form of equity instruments not held for trading are measured at fair 
value in other comprehensive income. In the Parent Company, biolog-
ical assets are not measured at fair value. 
Changes to accounting principles
New or revised IFRS and interpretations from IFRIC have not had any 
material impact on the Group’s or the Parent Company’s financial 
statements.
Principles of consolidation
The Group’s financial statements are prepared in accordance with the 
Group’s accounting principles and include the accounts of the Parent 
Company and all Group companies. Group companies are consoli-
dated from the date the Group exercises control or controlling influ-
ence over the company according to the definitions provided below. 
Divested Group companies are included in the consolidated accounts 
until the date the Group ceases to control or exercise controlling influ-
ence over the companies. Intra-Group transactions have been elimi-
nated. 
Subsidiaries
All companies over which the Group has a controlling influence are 
consolidated as subsidiaries. Controlling influence means that SCA is 
exposed to, or has rights to, variable returns from its involvement with 
the subsidiary and has the ability to affect those returns using its 
power to direct activities. The consolidated financial statements are 
prepared in accordance with the acquisition method. 
Translation of foreign currency
Functional currency and translation of foreign  
Group companies to the presentation currency
SCA’s Parent Company has Swedish kronor (SEK) as its functional 
currency. The functional currency of each SCA Group company is 
determined on the basis of the primary economic environment in 
which the respective company is active. The financial statements of 
Group companies are translated to the Group’s presentation currency, 
which is SEK in the case of SCA. Assets and liabilities are translated at 
the closing rate, while income and expenses are translated at the 
average rate for the period. Translation differences on net assets are 
recognized as translation differences in other comprehensive income, 
which is a component of translation reserves in equity.
Exchange rate effects arising from financial instruments used to 
hedge foreign subsidiaries’ net assets are recognized in the same 
manner in other comprehensive income, which is a component of 
translation reserves in equity. On divestment, the translation differ-
ence on the foreign subsidiary and exchange rate effects on the finan-
cial instrument used to currency hedge the net assets in the company 
are recognized as part of the gain or loss on disposal. 
Goodwill and surplus value adjustments arising in connection with the 
acquisition of a foreign subsidiary are to be translated, in a manner 
corresponding to the net assets in the company, from their functional 
currency to the presentation currency.
Transactions and balance sheet items in foreign currency
Transactions in foreign currency are translated to a functional cur-
rency using the rate prevailing on the transaction date. At accounting 
year-end, monetary assets and liabilities are translated at the closing 
day rate and any exchange rate effects are recognized in the income 
statement. In cases where the exchange rate effect is related to the 
operations, the effect is recognized net in operating profit. Exchange 
rate effects pertaining to borrowing and financial investments are rec-
ognized as other financial items. Non-monetary assets and liabilities 
recognized at historical cost are translated at the exchange rate pre-
vailing on the transaction date.
If hedge accounting has been applied, for example, for cash flow 
hedges or hedging of net investments, the exchange rate effect is 
­recognized in equity under other comprehensive income.
Group
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For financial assets in the form of equity instruments that are not held 
for trading, the portion of the value change pertaining to currency is 
recognized in the income statement. Any other unrealized change 
is recognized in equity under other comprehensive income.
Revenue recognition
Sales revenue, which is synonymous with net sales, includes the con-
sideration for goods and services sold within the Group’s main busi-
ness. This consists entirely of revenue from contracts with customers 
and is recognized in accordance with IFRS 15. Other operating income 
includes logistics income from SCA’s transport activities, income for 
energy from the sale of district heating and electricity, income from 
sales of forest seedlings, gravel, tall oil and wood pellets, revenue 
from leases, land lease income from wind power and hunting and 
fishing rights, and capital gains from the sale of non-current assets. 
The translation differences on trade receivables are also recognized 
as other operating income. Most other operating income consists of 
revenue from contracts with customers and is recognized in accor-
dance with IFRS 15. Income from electricity certificates and emission 
allowances is recognized as reduced energy costs. Interest income is 
recognized in accordance with the effective interest method, meaning 
the estimated change in value (effective interest) is recognized as 
interest income or interest expense in the income statement. Divi-
dends received are recognized when the right to receive a dividend 
has been established.
Government grants
Government grants are recognized at fair value when there is reason-
able assurance the grants will be received and that the Group will 
comply with the conditions attached to them. Government grants 
related to acquisition of assets are recognized in the balance sheet 
by the grant reducing the carrying amount of the asset. Government 
grants received as compensation for costs are accrued and recog-
nized in the income statement as a cost reduction during the same 
period as the costs. If the government grant is neither related to the 
acquisition of assets nor to compensation for costs, the grant is rec-
ognized as other income. For more information about Government 
grants, refer to Notes B2, B4 and D2.
Group
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A2. APPLICATION OF FINANCIAL MEASURES NOT INCLUDED IN IFRS
The Annual Report refers to a number non-IFRS performance mea-
sures used to assist investors and company management to analyze 
the company’s operations.  
A description of the performance measures used as a complement 
to the financial information reported according to IFRS is presented 
below.
Calculation of financial measures not included in IFRS
PERFORMANCE 
MEASURES
Various types of performance measures and margin measures expressed as a percentage of net sales
Key figure
Description
Application of the measure
Revenue
Total of net sales and other operating income
The measure is a complement to the follow up of net sales and is 
monitored by management in the Renewable Energy business area.
EBITDA
Profit before depreciation, amortization and impairment, 
­financial items and taxes.
This measure is a complement to operating profit, as it shows the 
cash surplus from operations. 
EBITDA margin
Profit before depreciation, amortization and impairment, finan-
cial items and taxes as a percentage of net sales for the year. 
Renewable Energy is monitored according to the same  
structure as a percentage of revenue.
This measure is a complement to operating margin, as it shows 
the cash surplus in relation to net sales or revenue. Management 
uses the measure as one of the most important in controlling the 
company’s business areas.
Operating margin
Operating profit as a percentage of net sales for the year. 
Renewable Energy is monitored according to the same  
structure as a percentage of revenue.
Operating margin describes operating profit in relation to net sales 
or revenue.
Net margin
Profit for the period as a percentage of net sales for the period.
Net margin describes how much of net sales remains after costs 
and tax have been deducted.
Restructuring 
costs
Costs for impairment together with personnel costs in connec-
tion with structural changes to the company’s operations.
This measure shows the specific costs that have arisen in connec-
tion with structural changes of an operation, which contributes to 
an understanding of the underlying cost level in the continuing 
operating activities.
CAPITAL 
­MEASURES
Show how capital is utilized and the company’s financial strength
Key figure
Description
Application of the measure
Capital employed
Calculated as the balance sheet’s total assets excluding financial 
assets and pension assets, less non-interest-bearing liabilities.
The management follows this measure to reduce the capital tied up 
in operations that is financed by owners and creditors.
SEKm
2022
2021
CAPITAL EMPLOYED
Forest assets
97,882
84,497
Working capital
4,138
2,823
Deferred tax relating to forest assets
–19,468
–16,905
Other capital employed
23,795
20,392
Capital employed
106,347
90,807
CAPITAL EMPLOYED PER SEGMENT
Forest
80,077
69,046
Wood
3,605
3,746
Pulp 
9,073
8,021
Containerboard
10,704
8,989
Other
2,888
1,005
Capital employed
106,347
90,807
Key figure
Description
Application of the measure
Working capital
Working capital is calculated as current operating receivables 
(inventories, trade receivables and other non-interest-bearing 
current receivables) less current operating liabilities (trade pay-
ables and other non-interest-bearing current liabilities).
The management monitors this measure to reduce capital tied up in 
the balance sheet from the company’s operations.
SEKm
Note
2022
2021
WORKING CAPITAL
Inventories
D5
4,856
4,189
Trade receivables
E3
3,007
2,516
Other current receivables
D6
1,412
891
Trade payables
D9
–3,404
–3,141
Other current liabilities
D7
–1,684
–1,532
Other current provisions
D8
–49
–100
Working capital
4,138
2,823
Group
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Key figure
Description
Application of the measure
Net debt
Calculated as current and non-current financial liabilities and pro­
visions for pensions with deductions for financial assets (surplus 
in funded pension plans, financial assets and cash and cash 
­equivalents).
Net debt describes the company’s total debt financing and 
is monitored by the management.
SEKm
2022
2021
NET DEBT
Net debt January 1
7,752
7,671
Net cash flow
2,675
652
Revaluations to equity
–394
–448
Change in lease liability
–49
–114
Exchange rate effects and market value changes
5
–9
Net debt December 31
9,989
7,752
Surplus in funded pension plans
1,689
1,564
Non-current financial assets
165
80
Current financial assets
106
114
Cash and cash equivalents
836
1,056
Financial assets
2,796
2,814
Non-current financial liabilities
10,751
9,083
Provisions for pensions
245
427
Current financial liabilities
1,789
1,056
Financial liabilities
12,785
10,566
Net debt
9,989
7,752
Key figure
Description
Application of the measure
Debt/equity ratio
Net debt in relation to equity.
Shows financial risk and is used by management to monitor 
the level of the company’s indebtedness.
RETURN MEASURES
Return is a financial term that describes how much the value of an asset changes from an earlier point in time
Key figure
Description
Application of the measure
Return on capital 
employed, ROCE
Accumulated return on capital employed is calculated as 12-month 
rolling operating profit as a percentage of average capital employed 
for the five most recent quarters. The corresponding key figure for a 
single quarter is calculated as operating profit for the quarter multi-
plied by four as a percentage of average capital employed for the 
two most recent quarters. One-off items are excluded. Industrial 
segments only use industrial ROCE.
Used to measure return on capital tied up in operations.
Return on capital 
employed, industrial 
ROCE
Calculated as the Group’s return on capital employed, excluding 
operating profit and capital employed from the Forest operating seg-
ment, operations in the wind power area and a share of Other opera-
tions. Strategic capital expenditures in industry that have not begun 
operating and one-off items are excluded. This measure applies to 
the Wood, Pulp and Containerboard segments.
Shows the underlying industrial return on capital employed 
adjusted for the ongoing strategic capital expenditures.
SEKm
Forest
Wood 
Pulp
Container-
board
Other
Group
2022 fiscal year
Return on capital employed, ROCE 
Operating profit/loss, SEKm
2,470
1,842
2,375
2,420
–465
8,642
Industrial average capital employed, SEKm
3,794
8,177
3,802
135
15,909
Average ongoing strategic capital expenditures, SEKm
-
485
5,950
1,167
7,602
Total average capital employed, SEKm
72,852
3,794
8,662
9,752
1,585
96,645
Return on capital employed, ROCE, %
3.4
8.9
Return on capital employed, industrial ROCE, %
48.5
29.0
63.6
40.1
SEKm
Forest
Wood 
Pulp
Container-
board
Other
 Group
2021 fiscal year
Return on capital employed, ROCE 
Operating profit/loss, SEKm
2,406
2,739
1,525
1,331
–367
7,634
Industrial average capital employed, SEKm
3,575
8,664
4,491
–589
16,141
Average ongoing strategic capital expenditures, SEKm
-
-
3,471
498
3,969
Total average capital employed, SEKm
63,711
3,575
8,664
7,775
–192
83,533
Return on capital employed, ROCE, %
3.8
9.0
Return on capital employed, industrial ROCE, %
76.6
17.6
30.0
33.0
Group
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CASH FLOW 
­PERFORMANCE 
­MEASURES
Various performance measures and costs that have impacted the company’s cash flow
Key figure
Description
Application of the measure
Operating cash sur-
plus
EBITDA with deductions for capital gains and capital losses from 
tangible and intangible assets, the reversal of the result of participa-
tions in associated companies and joint ventures and the result of the 
revaluation of biological assets.
This measure shows cash flow generated by the income 
statement when calculating operating cash flow.
Current capital 
expenditures, net
Current capital expenditures, net are made to maintain competitive-
ness, and include maintenance, rationalization and replacement 
measures or investments of an environmental nature with deductions 
for compensation from divested non-current assets. Operating cash 
flow also includes the effects from additional, remeasured and pre-
maturely terminated right-of-use assets associated with leases.
Shows the size of the capital expenditures required to 
maintain existing capacity in operations. 
Operating cash flow
Operating cash flow comprises the sum of operating cash surplus 
and change in working capital, with deductions for current net invest-
ments in tangible fixed assets and restructuring costs.
The management controls the business areas using this 
measure that shows the combined cash flow from oper-
ating activities.
Operating cash flow
Forest
Wood
Pulp
Containerboard
SEKm
2022
2021
2022
2021
2022
2021
2022
2021
Operating cash surplus
851
878
2,096
2,885
2,966
2,084
2,854
1,761
Change in working capital
–166
253
97
–451
–736
–84
–347
–23
Current capital expenditures, net
–354
–359
–355
–431
–228
–138
–329
–242
Other
1
–9
23
–25
57
–1
48
–2
Operating cash flow
332
763
1,861
1,978
2,059
1,861
2,226
1,494
Consolidated operating cash flow statement
SEKm
2022
2021
 IS   EBITDA
10,194
9,109
Changes in value of biological assets and other non-cash items
–1,863
–1,883
Operating cash surplus
8,331
7,226
Change in working capital
–1,328
–306
Restructuring costs
–40
–394
Current net investments1)
–1,436
–1,236
Other operating cash flow
158
–74
Operating cash flow
5,685
5,216
1)	Includes SEK –85m (–40) from new, remeasured and terminated lease contracts.
Key figures
Description
Application of the measure
Cash flow from cur-
rent operations
Operating cash flow less net financial items and tax payments and 
taking into account other financial cash flow.
This measure illustrates the cash flow generated by opera-
tions and that can potentially be used for strategic initia-
tives, such as capital expenditures or acquisitions.
Strategic capital 
expenditures in 
non-current assets
Strategic capital expenditures increase the company’s future cash 
flow through acquisitions of companies, capital expenditures to 
expand facilities, or new technologies that increase competitiveness.
Shows the size of the capital expenditures that are made 
in expansion in production capacity and other growth 
­measures.
Group
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B1. SEGMENT REPORTING AND REVENUE FROM CONTRACTS WITH CUSTOMERS
 AP   ACCOUNTING PRINCIPLES
Segments
Segments are recognized in accordance with IFRS 8 Operating Seg-
ments in a manner that complies with the internal reporting submitted 
to the chief operating decision maker. The chief operating decision 
maker is the function that is responsible for allocating resources and 
assessing the result of the operating segments. At SCA, this function 
has been identified as the company’s President and CEO, who is 
responsible for and manages the day-to-day administration of the 
Group in accordance with the Board’s guidelines and terms of refer-
ence. The Executive Management supports the President and CEO in 
his work, see the section Corporate governance in the Board of Direc-
tors’ Report on pages 74–83.
A description of the four operating segments can be found on 
pages 24–41.
Revenue from contracts with customers
SCA applies IFRS 15 Revenue from contracts with customers. 
The standard is based on a five-step control model and requires 
that revenue is recognized at an amount that reflects the consideration 
to which the entity expects to be entitled in exchange for promised 
goods or services to customers. The standard regulates commercial 
agreements (contracts) with customers in which delivery of goods and 
services is divided into separately identifiable performance obligations 
that are recognized independently. The standard establishes rules for 
calculating the transaction price for delivery of goods and services and 
the manner in which this can be allocated among the various perfor-
mance obligations. Revenue is recognized when control has passed to 
the customer by the customer being able to use or benefit from the 
goods or services, at which point it is deemed to have been trans-
ferred. Control may be passed at a given point in time, which is usually 
the case for sale of goods. In other cases, a performance obligation 
may be satisfied over time, which is common for services.
 KAA   KEY ASSESSMENTS AND ASSUMPTIONS
SCA has determined that control passes to the customer under 
IFRS 15 when the risk is transferred according to the applicable 
delivery terms. 
SCA’s contracts with customers are mainly framework agreements 
without established minimum volumes, which means a binding agree-
ment in accordance with the criteria specified in IFRS 15 arises when 
the customer makes a call-off order. SCA’s performance obligation in 
the contracts consists of providing the goods specified in the con-
tracts.
The transaction price primarily consists of a fixed price per sold quan-
tity. Variable parts, such as cash discounts, volume discounts and 
delivery bonuses, reduce the transaction price. The transaction price 
is estimated at the value that is expected to accrue to SCA when 
entering into the agreement. The transaction price is continuously 
updated if the circumstances that form the basis of the estimate 
change. Performance obligations consist of sales of goods, which are 
satisfied at a point in time. The control is transferred to the customer 
at the same time as the risk for the goods is transferred, in accordance 
with the Incoterms applicable in the contract. SCA applies the Deliv-
ered At Place (DAP) terms for 53% (48) of sales revenues, meaning risk 
is transferred when the goods are made available to the customer at 
the agreed destination. For other freight terms applied, the risk is 
transferred when the goods are loaded on to the vessel or other freight 
vehicles. Payment terms follow industry practice without long credit 
periods.
SCA has determined that all revenue recognized as net sales and 
other operating income pertaining to goods and services constitute 
revenue from contracts with customers. Net sales comprise the sales 
of goods. Other operating income comprises the sales of goods and 
services.
B. SALES AND EARNINGS
 TB1:1   Group by country
Net sales – sold by1)
Average number of employees
Non-current 
assets2)
2022
2021
2022
Of whom, %
2021
Of whom, %
2022
SEKm
2021 
SEKm
SEKm
%
SEKm
%
men
women
men
women
Sweden
20,002
96
18,218
97
3,259
78
22
3,501
78
22
121,187
105,501
Germany
-
-
-
-
21
58
42
30
58
42
30
34
United Kingdom
164
1
167
1
8
52
48
12
54
46
76
82
Rest of Europe
Latvia
3
0
-
-
11
49
51
15
47
53
1,741
1,223
Estonia
7
0
4
0
8
62
38
8
62
38
646
533
Lithuania
-
-
-
-
-
-
-
-
-
-
294
-
France
-
-
-
-
-
-
-
2
100
-
-
-
Netherlands
-
-
-
-
1
100
-
1
100
-
-
-
Belgium
-
-
-
-
-
-
-
1
100
-
-
-
Total, Rest of Europe
10
-
4
-
20
57
43
27
58
42
2,681
1,756
Asia
Hong Kong
618
3
433
2
5
47
53
7
43
57
-
1
Total Asia
618
3
433
2
5
47
53
7
43
57
-
1
Total Group
20,794
100
18,822
100
3,313
78
22
3,577
78
22
123,974
107,374
1)	“Sold by” means revenue from external customers based on where SCA’s sales subsidiary has its registered office.
2)	Non-current assets comprise goodwill, other intangible assets, buildings, land, machinery and equipment, forest assets and right-of-use assets.
Group
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Board of Directors’ Report
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Other

Reporting by operating segment
SEKm
Forest
Wood 
Pulp
Container-
board
Other
Eliminations
Total Group
2022 fiscal year
 TB1:1    TB1:2   External sales
9
6,753
7,209
6,823
-
20,794
Internal sales
6,677
-
-
-
-
–6,677
-
 IS   Net sales
6,686
6,753
7,209
6,823
-
–6,677
20,794
Other operating income
693
1,065
2,020
1,461
202
–2,278
3,163
of which goods
513
735
559
237
78
–312
1,810
of which services
0
309
1,385
1,174
86
–1,992
962
of which leases
93
8
0
1
23
0
125
of which other operating income
87
13
76
49
15
26
266
Revenue
7,379
7,818
9,229
8,284
202
–8,955
23,957
Operating expenses
–4,683
–5,722
–6,262
–5432
–596
8,955
–13,740
Result from participations in associated companies 
-
–17
–6
-
-
–23
EBITDA
2,696
2,079
2,961
2,852
–394
10,194
Depreciation and impairment
–226
–237
–586
–432
–71
–1,552
Operating profit/loss
2,470
1,842
2,375
2,420
–465
8,642
Other disclosures
Capital employed 
80,077
3,605
9,073
10,704
2,888
106,347
Net investments1)
–1,163
–355
–236
–2,962
–1,071
–5,787 
1)	Includes SEK –85m from new, remeasured and terminated lease contracts in 2022.
SEKm
Forest
Wood 
Pulp
Container-
board1)
Other
Eliminations
Total Group
2021 fiscal year
 TB1:1    TB1:2   External sales
4
7,080
5,716
5,456
566
18,822
Internal sales
6,144
-
27
-
-
–6,171
-
 IS   Net sales
6,148
7,080
5,743
5,456
566
–6,171
18,822
Other operating income
648
1,011
1,413
1,136
507
–2,066
2,649
of which goods
455
626
412
159
64
–316
1,400
of which services
20
316
895
902
238
–1,640
731
of which leases
72
7
-
-
9
-
88
of which other operating income
101
62
106
75
196
–110
430
Revenue
6,796
8,091
7,156
6,592
1,073
–8,237
21,471
Operating expenses
–4,152
–5,194
–5,060
–4,831
–1,433
8,237
–12,433
Result from participations in associated companies 
-
71
-
-
-
71
EBITDA
2,644
2,968
2,096
1,761
–360
9,109
Depreciation and impairment
–238
–229
–571
–430
–7
–1,475
Operating profit/loss
2,406
2,739
1,525
1,331
–367
7,634
Other disclosures
Capital employed 
69,046
3,746
8,021
8,989
1,005
90,807
Net investments1)
–478
–431
–250
–3,264
–536
–4,959
1)	Includes SEK –40m from new, remeasured and terminated lease contracts in 2021.
Intra-Group deliveries 
Revenues, expenses and results for the various operating segments 
were affected by intra-Group deliveries. Internal prices are market-
based. Intra-Group deliveries are eliminated when preparing the 
consolidated financial statements. 
Operating segments
SCA recognizes four operating segments in accordance with IFRS 8.
The Forest segment supplies SCA’s industries with timber. The seg-
ment includes managing and harvesting on SCA’s own forest land, 
sourcing timber from other forest owners and transporting the timber 
to SCA’s industries. The segment also includes activities in Renewable 
Energy linked to the forest, primarily wind power leases and the sale of 
unrefined biofuel. SCA’s own forest land amounts to 2.7 million hect-
ares in northern Sweden and the Baltic region.
The Wood segment includes five sawmills in northern Sweden and 
wood processing and distribution to the building materials trade in 
Sweden and France. The segment also includes activities in Renew-
able Energy that are primarily linked to pellets production.
The Pulp segment encompasses the production and sale of bleached 
softwood kraft pulp (NBSK) and chemi-thermomechanical pulp (CTMP), 
which are produced at the Östrand pulp mill. The Östrand pulp mill is 
also a net producer of green energy and biochemicals such as tall oil 
and turpentine. The segment also includes activities in Renewable 
Energy that are primarily linked to future opportunities to produce 
green biofuels.
The Containerboard segment includes packaging paper with kraftliner 
manufacturing at the Obbola and Munksund paper mills. 
The wind farm acquired on December 20, 2022 belongs to Renewable 
Energy and is included in the Other segment. 
Group
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Board of Directors’ Report
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Customers
SCA’s ten largest customers account for 31% (32) of the company’s 
sales. Revenue from the largest customer amounts to SEK 3,241m 
(2,440), which represents 16% (13) of net sales, and is reported in 
the Containerboard segment. 
 TB1:2   Group by country
Net sales – sold to1)
2022
2021
SEKm
%
SEKm
%
Sweden
3,947
19
3,703
20
US
2,533
12
2,114
11
Germany
2,205
11
1,875
10
United Kingdom
2,017
10
2,033
11
Rest of Europe
Norway
1,192
6
1,270
7
France
967
5
906
5
Spain
830
4
634
3
Finland
705
3
491
3
Poland
578
3
444
2
Denmark
550
3
530
3
Italy
486
2
412
2
Netherlands
429
2
347
2
Turkey
233
1
246
1
Belgium
248
1
239
1
Austria
206
1
166
1
Other
918
4
779
4
Total, Rest of Europe
7,342
35
6,464
34
Asia
Japan
605
3
786
4
China
509
2
402
2
Other
520
3
523
3
Total Asia
1,634
8
1,711
9
Rest of world
Morocco
424
2
430
2
Other
692
3
492
3
Total, rest of world
1,116
5
922
5
Total Group
20,794
100
18,822
100
1)	Net sales recognized as “Sold to” compiles sales to countries where SCA has 
its customers.
B2. OTHER OPERATING INCOME 
Specification of other operating income
SEKm
2022
2021
Transportation
944
699
Energy
1,106
913
Leases
125
89
Other
988
948
 IS   Total
3,163
2,649
Other disclosures
Government grants received increased other operating income  
by SEK 2m (28). 
B3. RAW MATERIALS AND CONSUMABLES
Specification of raw materials and consumables
SEKm
2022
2021
Timber and chips
–2,454
–2,909
Other raw materials and consumables
–1,958
–1,507
Goods purchased for resale
–165
–37
 IS   Total
–4,577
–4,453
B4. OTHER OPERATING EXPENSES
Specification of other operating expenses
SEKm
2022
2021
Transportation
–4,385
–3,578
Energy
–538
–496
Repairs and maintenance
–745
–665
IT, telephony and rents
–375
–377
Other
–2,235
–1,483
 IS   Total
–8,278
–6,599
Other disclosures
Government grants received have reduced operating expenses by 
SEK 16m (8), excluding all of the effects from the European system for 
emission allowances described under Note D1. Costs for research and 
development amounted to SEK 13m (31) in 2022.
Specification of auditing expenses
SEKm
2022
2021
EY
Audit assignments
–11
–10
Auditing activities other than the audit assignment
–1
0
Total EY
–12
–10
Other auditors
Audit assignments
–1
–1
Total other auditors
–1
–1
Total
–13
–11
Net sales by geography in 2022
Sweden
19%
US
12%
Germany
11%
United Kingdom
10%
Rest of Europe
35%
Asia
8%
Rest of world
5%
Group
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B5. TAXES
 AP   ACCOUNTING PRINCIPLES
The Group’s tax expense comprises current tax and deferred tax. 
Current tax is calculated on the taxable profit for the period based on 
the tax rules prevailing in the countries where the Group operates. 
Since taxable profit excludes costs that are not tax deductible and 
income that is not taxable, this is differentiated from profit before 
tax in the income statement. Current tax also includes adjustments 
relating to recognized current tax from other periods. Interest 
­attributable to income tax is also recognized as income tax. 
Deferred tax is calculated based on temporary differences between 
the carrying amounts and the taxable values of assets and liabilities 
and for tax loss carryforwards in so far as it is probable that these can 
be utilized against future taxable profits. Deferred taxes are measured 
at their nominal amount and based on the tax rates enacted on the 
balance sheet date. Deferred tax is not calculated on the initial recog-
nition of goodwill or when an asset or liability is recognized for the first 
time, provided that the asset or liability is not attributable to a busi-
ness combination. SCA does not recognize tax that may arise on 
future dividends of the retained earnings of foreign subsidiaries. Any 
such future effects (withholding tax deducted at source and other 
deferred tax on profit-taking within the Group) are recognized when 
SCA can no longer control the reversal of such differences or when, 
for other reasons, it is probable that a reversal can take place in the 
foreseeable future.
The recognition of tax effects is determined by the manner in which 
the underlying transaction is recognized. For items in the income 
statement, the tax effect is recognized in the income statement. For 
transactions in equity and in other comprehensive income, the tax 
effect is recognized in equity and in other comprehensive income, 
respectively.
Tax liabilities and tax assets are recognized net when SCA has a legal 
right to offset.
 KAA   KEY ASSESSMENTS AND ASSUMPTIONS
The Group conducts operations in several countries, which increases 
the complexity when determining deferred tax assets and tax liabili-
ties. This requires that assessments and assumptions are made to 
determine the value of the deferred tax asset and deferred tax liability 
on the balance sheet date. Future changes to taxation legislation and 
trends in the business climate will impact the company’s future tax-
able profits and thus its possibility to utilize deferred tax assets on 
loss carryforwards and other temporary differences. 
As of December 31, 2022, SEK 22m (18) was recognized as deferred 
tax assets based on best assessment of future taxable profits in the 
Group. At year-end 2022, the Group also had tax loss carryforwards 
of SEK 35m (50), for which no deferred tax asset had been recognized. 
Accordingly, a changed assessment of the probability of future tax-
able profits could have a positive or negative effect. In SCA’s opinion, 
at the end of 2022 there were no material uncertain tax items in the 
financial statements which could result in a significant adjustment of 
the reported values during forthcoming fiscal years. 
Key assessments and assumptions are also made regarding recogni-
tion of provisions and contingent liabilities relating to tax risks. For fur-
ther information, refer to Note G2.
 TB5:1   Tax expense
Tax expense (+), tax income (–)
2022
2021
SEKm
SEKm
%1)
SEKm
%1)
Current tax
Income tax for the period
789
9.2
736
9.8
Adjustments for other periods
28
0.3
53
0.7
Current tax expense
817
9.5
789
10.5
Deferred tax
Changes in temporary differences
972
11.3
756
10.0
Adjustments for other periods
−7
−0.1
–119
–1.6
Revaluation
0
0.0
0
0.0
 TB5:3   Deferred tax expense
965
11.2
637
8.4
 IS   Tax expense
1,782
20.7
1,426
18.9
1)	Percentage of profit before tax.
Explanation of tax expense
The difference between the recognized and expected tax expense is 
explained below. The expected tax expense is calculated based on 
profit before tax in each country multiplied by the tax rate in effect in 
the country.
2022
2021
SEKm
SEKm
%
SEKm
%
 IS  Profit before tax
8,603
7,527
 IS  Tax expense
1,782
20.7
1,426
18.9
Expected tax expense
1,788
20.8
1,549
20.6
Difference
−6
–0.1
–123
–1.7
The difference is due to:
Permanent differences between 
accounting and taxable result
Other permanent effects1)
–27
0.3
–57
–0.8
Taxes related to other periods2)
22
0.3
–65
–0.9
Changes in the value of deferred tax 
assets 
-
-
0
0
Changes in tax rates
–1
0.0
–1
0.0
Total
–6
–0.1
–123
–1.7
1)	Other permanent effects in 2022 relate primarily to non-taxable earnings from 
associated companies, non-taxable dividends, adjustment of expected tax 
deductions attributable to investments in equipment and non-taxable income 
relating to tonnage tax. Other permanent effects in 2021 relate primarily to 
non-taxable earnings from associated companies and non-taxable income 
relating to tonnage tax. 
2)	Taxes attributable to other periods in 2022 primarily relate to adjustments to 
previous tax assessments. Taxes attributable to other periods in 2021 relate, for 
the most part, to future tax deductions attributable to investments in equipment 
and adjustments to previous tax assessments.
Group
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Current tax liability
Current tax liability (+), current tax asset (–)
SEKm
2022
2021
Value January 1
264
13
 TB5:1   Current tax expense
817
789
 CF    TB5:2   Paid tax
–859
–538
Translation differences
0
0
Other changes from acquisitions, divestments
–1
0
Value December 31
221
264
 BS   of which current tax liability
224
265
 BS   of which current tax asset
–3
–1
 TB5:2   Paid tax
Tax payments by SCA entities by country, paid tax (–)
SEKm
2022
2021
France
–22
-
Sweden
–827
–530
United Kingdom
–5
–3
Germany
–5
–5
Other
0
0
 CF   Total
–859
–538
 TB5:3   Deferred tax liability 2022
Deferred tax liability (+), deferred tax asset (–)
SEKm
Value 
January 1
Deferred 
tax 
expense
Other 
changes1)
Value  
December 31
Intangible fixed 
assets
3
–3
-
0
Tangible fixed assets 
1,909
470
-
2,379
Forest assets 
16,905
409
2,154
19,468
Financial fixed assets
288
11
24
323
Current assets
−59
25
5
−29
Provisions
−100
6
57
−37
Liabilities
−10
–2
60
48
Future tax credits 
and tax loss carryfor-
wards
−75
76
–50
−49
Other 
6
–27
13
−8
 BS   Total2)
18,867
965
2,263
22,095
1)	Other changes include deferred tax recognized directly in equity according to 
IAS 19 of SEK 82m and IFRS 9 hedge accounting derivatives of SEK 77m and 
deferred tax attributable to the change in fair value of land assets of SEK 2,154m. 
Furthermore, SEK –50m pertaining to deferred tax relating to acquired deficits 
is included.
2) The closing deferred tax liability comprises deferred tax assets of SEK 22m (18) 
and deferred tax liabilities of SEK 22,117m (18,885).
Loss carryforwards
Future tax credits and loss carryforwards for which deferred tax 
assets were recognized have been reported at the tax amount of SEK 
–49m on the line future tax credits and tax loss carryforwards in table 
 TB5:3 . Loss carryforwards for which no deferred tax assets were rec-
ognized amounted to SEK 35m (50), gross, at December 31, 2022, see 
table  TB5:4 . The tax value of uncapitalized tax loss carryforwards 
amounted to SEK 7m (12). In SCA’s opinion, it is not probable that loss 
carryforwards for which no deferred tax was recognized will be offset 
against future profits as these largely concern saved capital losses 
with a limited right of deduction against future capital gains. The 
expiry dates of these loss carryforwards are distributed as shown in 
table   TB5:4 .
 TB5:4  Loss carryforwards, gross, for which no deferred 
tax assets were recognized as per December 31, 2022
SEKm
2022
2021
Year of maturity
Indefinite life
35
50
Total
35
50
Group
100
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
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C. EMPLOYEES
C3. REMUNERATION OF SENIOR EXECUTIVES
Guidelines for remuneration of senior executives 
These guidelines were adopted by the 2022 Annual General Meeting 
(AGM) and shall thereafter apply to remuneration to Board members, 
the President and CEO, vice President as well as other members of the 
senior management. The guidelines do not apply to remuneration 
resolved by the general meeting.
Principles for remuneration 
A prerequisite for the successful implementation of the company’s 
business strategy and safeguarding of its long-term interests, including 
its sustainability, is that the company is able to recruit, motivate and 
retain qualified personnel through competitive remuneration in line 
with market levels. To this end, the total remuneration is to correspond 
to market practice and be competitive on the senior manager’s field 
of profession, as well as being linked to the manager’s responsibility, 
authority and performance. Remuneration may consist of fixed salary, 
variable salary, other benefits and pension, jointly referred to as total 
remuneration. The company’s business strategy is available on 
pages 20–23. 
Variable remuneration 
Variable remuneration shall aim at promoting the company’s business 
strategy and long-term interests, including its sustainability. Variable 
remuneration shall be based on the outcome in relation to short-term 
and long-term goals, respectively, comprising financial goals, goals 
that contribute to such (including sustainability goals), or to the value 
development of the company’s Class B share. It shall be linked to the 
fixed annual salary and be maximized. Variable remuneration is to be 
paid as cash remuneration and shall not qualify for pension benefits. 
Short-term performance goals may include, for example, organic 
growth, profit, cash flow, capital efficiency, return, health-safety-envi-
ronment, individual targets, or a combination thereof. Remuneration 
that may be paid under such short-term performance goals shall not 
exceed 100% of the fixed annual salary. 
C1. PERSONNEL COSTS
Personnel costs
SEKm
Note
2022
2021
Salaries and remuneration
–1,778
–1,862
 TC3:1   of which Executive Management 
–69
–68
of which Board
C4
–9
–8
Pension costs
–248
–251
of which defined benefit pension costs
C5
–76
–100
of which other pension costs
–172
–151
Other social security costs
–544
–482
Other personnel costs
–57
–8
 IS   Total personnel costs
–2,627
–2,603
C2. PERSONNEL DATA
Average number of employees
2022
2021
Average number of employees
3,313
3,577
of whom men
2,576
2,789
of whom women
737
788
Long-term performance goals shall be linked to the value develop-
ment of the company’s Class B share and the company’s increased 
climate benefits. Remuneration that may be paid under such long-
term performance goals, including Performance period, maximum 
amount and other main conditions, shall therefore be approved by 
the general meeting. 
Total variable remuneration related to short-term performance goals 
and long-term performance goals in accordance with the description 
above shall not exceed 100% of the fixed annual salary. 
Additionally, variable remuneration in the form of project bonuses may 
be awarded in individual cases. The performance goals shall, in such 
cases, be linked to the project (e.g. investment or production volume) 
in order to promote the completion of the project. The achievement of 
goals is measured, and bonus may be paid, after one or several years. 
Such project bonus shall not exceed 40% of the total fixed annual 
salary during the relevant period. The company shall be able to refrain 
from paying variable remuneration when required and possible under 
applicable law, if there is special cause and withholding the payment 
is necessary to serve the company’s long-term interests, including its 
sustainability. The company shall also have the possibility to, under 
applicable law, reclaim variable remuneration paid on incorrect 
grounds. 
Pension and other benefits 
Pension benefits shall solely contain defined contribution pension 
benefits, unless the manager is subject to defined benefit pension 
under applicable collective agreement provisions. The planned retire-
ment age is 65 years. The defined contribution pension shall amount 
to a maximum of 50% of the fixed annual salary. 
Other benefits may include, for example, health insurance, company 
car and wellness allowance. 
In the event of termination of employment, a notice period of no longer 
than two years shall apply if termination is initiated by the company, or 
no longer than one year, if termination is initiated by the senior execu-
tive. There will be no severance pay. 
Decision-making process and reporting 
Issues regarding remuneration to senior executives shall be dealt with 
by the Board of Directors’ Remuneration Committee and, in case of 
the President and CEO, be decided by the Board of Directors. The 
Remuneration Committee’s tasks shall also include preparing the 
Board of Directors’ decision to propose guidelines for remuneration to 
senior executives, as well as monitoring and evaluating the application 
of these. The senior executives shall not participate in the Board of 
Directors’ nor the Remuneration Committee’s discussions of and res-
olutions regarding remuneration-related matters in so far as they are 
affected by such matters. 
In the preparation of the remuneration guidelines, salary and employ-
ment conditions for the company’s other employees in Sweden shall 
be taken into account, including information on the employees’ total 
income, the components of the remuneration and increase and growth 
rate over time, as well as the company’s equality policy. The Board of 
Directors shall prepare a remuneration report. 
Application of and deviation from the guidelines 
The Board of Directors may temporarily decide to deviate from the 
guidelines, in whole or in part, if in a specific case there is special 
cause for the deviation and a deviation is necessary to serve the com-
pany’s long-term interests, including its sustainability. 
The guidelines do not take precedence over mandatory provisions 
under applicable employment regulation or collective agreements. 
In addition, they are not applicable to agreements already signed. 
Group
101
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Board of Directors’ Report
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Other

Application of guidelines for remuneration of senior 
executives 2022
In 2022, the company has complied with the applicable remuneration 
guidelines as adopted by the AGM. No deviations were made from the 
guidelines, nor were any deviations made from the decision-making 
process with regard to the determination of remuneration stated in the 
guidelines. The auditor statement on the company’s compliance with 
the guidelines is available on www.sca.com. There were no demands 
to repay remuneration.
Fixed salary
The fixed salary has been linked to the senior executive’s responsi-
bility and authority. Salaries have been decided on an individual basis 
to a level, using an overall assessment of the executive’s total remu-
neration, that was deemed competitive and corresponds to market 
practice in the executive’s field of profession.
Variable remuneration
The President and CEO and other senior executives were part of 
SCA’s program for variable remuneration where remuneration is paid 
according to SCA’s guidelines. The total variable remuneration could, 
for the President and CEO, amount to a maximum of 100% of fixed 
salary while the variable remuneration for other senior executives 
could amount to a maximum of 80% of fixed salary. Variable remuner-
ation was divided into a short-term and long-term portion. 
The short-term variable remuneration (Short Term Incentive, STI) 
could, for the President and CEO, amount to a maximum of 50% of the 
fixed salary and for other senior executives to 40% of the fixed salary. 
The established STI targets in 2022 for the President and CEO and 
CFO focused on the Group’s EBITDA, profit for the year, operating 
cash flow, industrial return on capital employed as well as develop-
ment relating to the number of workplace accidents that result in lost-
time accidents (LTA). For senior executives with Central Staff func-
tions, the Manager for the support unit Sourcing & Logistics and for 
the Business Area Manager of Forest, the STI targets focused on the 
Group’s EBITDA, operating cash flow, industrial return on capital 
employed as well as development relating to the number of workplace 
accidents that result in lost-time accidents (LTA). For the Wood, Pulp 
and Containerboard business area presidents, the STI targets in addi-
tion to Group-wide targets relate to EBITDA, operating cash flow as 
well as return on capital employed for each segment. The Manager of 
Renewable Energy follows the Group-wide targets.
The long-term portion (Long Term Incentive, LTI) could, for the Presi-
dent and CEO, amount to a maximum of 50% of fixed salary and for 
other senior executives to 40% of fixed salary, where all of the net out-
come (after tax deductions) is to be used to buy Class B shares in 
SCA. The acquired shares may then not be sold within three years of 
the purchase. 
The LTI program’s performance criteria comprise a financial target 
related to the total shareholder return (“TSR”) of the company’s Class 
B share during the 2022, 2023 and 2024 fiscal years (the “Performance 
period”), which shall be measured as 60% in comparison with a peer 
group of other comparable companies and as 40% in relation to the 
OMXS30 index (the “TSR condition”), as well as a sustainability target 
related to increased climate benefit (million tonnes of CO2 equiva-
lents,) during the Performance period (the “Sustainability condition”). 
The TSR condition will be weighted as 90% and the Sustainability 
condition as 10% when determining the disbursement of the cash 
payment. The maximum outcome requires the performance target 
(TSR) for the company to be 5% better than the outcome for the peer 
group and that the average annual climate benefit must increase by 
1.5 million tonnes of CO2 equivalents during the Performance period 
compared with the average annual climate benefit during the 2019, 
2020 and 2021 fiscal years.
The evaluation period of the program covers the 2022, 2023 and 2024 
fiscal years. Cash payment under the program can therefore not be 
made until 2025.
Supplementary variable program
For 2022, the Board of Directors resolved that the STI program should 
be supplemented with another short-term program. The supplemen-
tary program is intended to act as a transition to LTI 2022–2024, which 
matures in 2025. 
The targets in the supplementary short-term incentive program are 
solely financial and consist of EBITDA, operating cash flow and indus-
trial return on capital employed.
The supplementary short-term variable portion could, for the Presi-
dent and CEO, amount to a maximum of 50% of the fixed salary and 
for other senior executives to 40% of the fixed salary.
Outcome, variable remuneration
For the President and CEO, STI resulted in 100% of the annual max-
imum STI payment for 2022. For other senior executives, STI resulted 
in 93.4–100% of the annual maximum STI payment for 2022. Targets 
for the supplementary STI program were achieved and resulted in 
maximum outcome for the President and CEO and other senior execu-
tives, which provided supplementary STI compensation equivalent to 
50% and 40% respectively of the fixed salary. The President and CEO 
and other senior executives are entitled, as all Swedish white collar 
employees at SCA, to convert proceeds from variable pay programs 
into pension. This process is cost neutral for SCA.
Pensions
The senior executives are covered by a defined contribution pension, 
where the company annually pays a premium of 40% of the fixed salary 
to the President and CEO and an annual premium of 30% of the fixed 
salary to other senior executives. The agreed pension premium for the 
President and CEO and other senior executives is paid as long as they 
are employed, though not longer than the month before the month the 
senior executive reaches the age of 65.
Other benefits
Other benefits pertained to company cars and any other agreed 
­benefits.
Notice period and severance pay
The agreement with the President and CEO stipulates a period of 
notice of 24 months if such notice is given by the company and a 
period of notice of 6 months if notice is given by the President and CEO. 
If notice is given by the company, the President and CEO is obligated 
to be available to the company during the notice period if so requested 
by the company. If the President and CEO, after written approval from 
the company, assumes a new position during the period of notice, 
unless otherwise agreed, the new salary will be deducted from the 
salary received during the notice period. The agreement does not 
­contain any stipulations with regard to severance pay.
Other senior executives have a notice period, if such notice is given by 
the company, of 12 months, which after five years of service, from their 
latest employment, increases to 18 months. The executive’s notice 
period toward the company is 6 months. If requested by the company, 
this executive is obligated to be available to the company during the 
notice period. Any new salary from other positions will be deducted 
from the salary received during the notice period. The agreements 
have no stipulations with regard to severance pay.
Preparation and decision process for remuneration 
During the year, the Remuneration Committee submitted recommen-
dations to the Board of Directors regarding the principles for remuner-
ation of Senior executives. The Board discussed the Remuneration 
Committee’s proposal and decided on the basis of the Committee’s 
recommendations. The remuneration of corporate management for 
the fiscal year was based on the Remuneration Committee’s recom-
mendation. Matters of remuneration of the President and CEO were 
resolved by the Board of Directors. The executives concerned did not 
participate in remuneration matters pertaining to themselves. When it 
was deemed necessary, the work of the Remuneration Committee 
was carried out with the support of external expertise. For information 
about the composition of the Remuneration Committee, see page 77.
Current guidelines
The guidelines for determining salaries and other remuneration for 
senior executives as resolved by the 2022 AGM, apply until the 2026 
AGM, unless significant changes are made before then. 
Group
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TC3:1   Remuneration and other benefits in 2022
SEK
Fixed salary1)
Variable remu-
neration2)
Other  
benefits
Total salaries and 
remuneration
President and CEO3)
10,500,000
10,500,000
147,933
21,147,933
Other senior executives (11 persons)4)
26,096,200
20,794,856
1,139,300
48,030,356
Total
36,596,200
31,294,856
1,287,233
69,178,289
1)	Fixed salary consists of salary paid and vacation pay supplement for the period and, where applicable, the value of housing benefits.
2)	Variable remuneration covers the 2022 fiscal year but is paid in 2023.
3)	The supplementary STI program includes variable remuneration of SEK 5,250,000.
4)	The supplementary STI program includes variable remuneration of SEK 10,434,400.
Remuneration and other benefits in 2021
SEK
Fixed salary1)
Variable remu-
neration2)
Other  
benefits
Total salaries and 
remuneration
President and CEO3)
9,625,000
9,240,000
133,247
18,998,247
Other senior executives (11 persons)4)
27,219,969
20,257,360
1,124,346
48,601,675
Total
36,844,969
29,497,360
1,257,593
67,599,922
1)	Fixed salary consists of salary paid and vacation pay supplement for the period and, where applicable, the value of housing benefits.
2)	Variable remuneration covers the 2021 fiscal year but is paid in 2022.
3)	The LTI program includes variable remuneration of SEK 4,812,500.
4)	The LTI program includes variable remuneration of SEK 10,176,000.
The Senior executives category above includes 11 (11) persons, of which 8 (8) are men and 3 (3) are women.
Pension costs 20221)
SEK
President and CEO2)
4,371,666
Other senior executives (11 persons)2)
9,431,337
Total
13,803,003
1)	The pension costs pertain to the costs that affected profit for 2022, excluding 
pension tax expense.
2)	Outstanding pension obligations to all senior executives, including the Presi-
dent and CEO, amounted to SEK 27,395,516 (value as of December 31, 2022). 
These primarily consist of defined benefit pension plans, including ITP.
Pension costs 20211)
SEK
President and CEO2)
4,020,610
Other senior executives (11 persons)2)
9,115,953
Total
13,136,563
1)	The pension costs pertain to the costs that affected profit for 2021, excluding 
pension tax expense.
2)	Outstanding pension obligations to all senior executives, including the Presi-
dent and CEO, amounted to SEK 37,499,324 (value as of December 31, 2021). 
These primarily consist of defined benefit pension plans, including ITP.
Group
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C5. REMUNERATION AFTER COMPLETION OF EMPLOYMENT
 AP   ACCOUNTING PRINCIPLES
Defined benefit pension plans
Defined benefit pension plans are characterized by the fact that pay-
ment is based on the period of employment and the employee’s salary 
at, or just prior to, retirement. The actuarial and investment-related 
risks associated with defined benefit pension plans are carried by the 
company. The defined benefit obligations are calculated annually by 
independent actuaries using the Projected Unit Credit Method. Calcu-
lation is based on actuarial assumptions. Actuarial assumptions com-
prise the company’s best assessment of the variables that determine 
the final cost for providing the benefits. The obligation is measured at 
the present value of the anticipated future cash flows using a discount 
rate (refer to  KAA  Key assessments and assumptions). Actuarial 
gains and losses (remeasurements) are recognized directly in equity 
under other comprehensive income in the period in which they arise. 
The recognized cost for the defined benefit plans includes personnel 
costs, as well as net interest items. Net interest items comprise the 
discount rate calculated on the average net pension liability for the 
period, taking fee and remuneration payments into consideration. The 
difference between the calculated interest income (discount rate) on 
the plan assets and SCA’s actual return on the plan assets is included 
in the remeasurement of the defined benefit net liability (net asset) rec-
ognized in equity under other comprehensive income. Past service 
costs are recognized in the income statement in the period in which 
they arise. 
The liability recognized in the balance sheet for defined benefit pen-
sion plans is the present value of the obligation on the balance sheet 
date reduced by the fair value of the plan assets. Funded plans with 
net assets, meaning plans with assets exceeding obligations, are rec-
ognized as a financial non-current asset provided they are not limited 
by the asset ceiling in IAS 19 Employee Benefits. Other pension plans, 
which are not fully funded or unfunded, are recognized as Provisions 
for pensions.
In certain countries, pension payments are subject to taxes or fees. In 
such cases, these are included in the calculation of the obligation for 
the defined benefit pension plans. These taxes or fees are recognized 
as an expense in the income statement, except in cases where they 
are attributable to actuarial gains or losses, in which case they are rec-
ognized directly in equity under other comprehensive income, as are 
the actuarial gains or losses.
Defined contribution pension plans
Plans where the employer’s obligation is limited to the premiums the 
company has undertaken to pay, are classified as defined contribution 
plans. In these plans, it is the employee who bears the investment risk, 
meaning the risk that the invested assets could be insufficient to gen-
erate the anticipated compensation. The Group’s payments relating to 
defined contribution plans are recognized as an expense during the 
period the employees carry out the service to which the payment 
relates.
Severance pay
Severance pay is recognized as a payroll expense in cases when the 
Group has an obligation to compensate employees whose employ-
ment was terminated early.
 KAA   KEY ASSESSMENTS AND ASSUMPTIONS
The calculation of recognized expenses and provisions for defined 
benefit pension plans, where the size of the future compensation is 
unknown and payment will occur far in the future, is dependent on 
assumptions and assessments. The key assessments and assump-
tions include the discount rate, future salary increases, inflation and 
life expectancy. SCA determines the discount rate based primarily on 
AA-rated corporate bonds issued in the currency in which the pay-
ments will be made that match the duration of the obligations. If no 
such corporate bonds are available, government bonds or mortgage 
bonds are used. Inflation assumptions are based on a combination 
of central bank targets, implicit market expectations and long-term 
analyst forecasts. Assumptions regarding salary increases are based 
on market expectations and market research forecasts. Principal 
actuarial assumptions are presented in   TC5:5 . The sensitivity of the 
recognized provision with respect to key actuarial assumptions is 
described in   TC5:6 .
C4. FEES TO BOARD MEMBERS IN THE PARENT COMPANY
Remuneration to non-executive Board members refers to the established fees approved at the 2022 AGM, for the period until the next AGM in 
March 2023. No remuneration is paid to the President and CEO and other employees.
Board fee
Audit  
Committee fee
Remuneration 
­Committee fee
Total
SEK
2022
2021
2022
2021
2022
2021
2022
2021
Pär Boman
2,025,000
1,950,000
280,000
270,000
145,000
140,000
2,450,000
2,360,000
Charlotte Bengtsson
-
650,000
-
-
-
-
-
650,000
Åsa Bergman
675,000
-
-
-
-
-
675,000
-
Lennart Evrell
675,000
650,000
-
-
120,000
115,000
795,000
765,000
Annemarie Gardshol
675,000
650,000
-
-
-
-
675,000
650,000
Carina Håkansson
675,000
650,000
-
-
-
-
675,000
650,000
Martin Lindqvist
675,000
650,000
280,000
270,000
-
-
955,000
920,000
Bert Nordberg
-
650,000
-
-
-
115,000
-
765,000
Anders Sundström
675,000
650,000
-
-
120,000
-
795,000
650,000
Barbara Milian Thoralfsson
675,000
650,000
390,000
375,000
-
-
1,065,000
1,025,000
Karl Åberg
675,000
-
-
-
-
-
675,000
-
Total
7,425,000
7,150,000
950,000
915,000
385,000
370,000
8,760,000
8,435,000
At the end of the year, SCA’s Board consisted of 4 women and 6 men. 
Group
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Sweden
The ITP2 plan encompasses employees born before 1979 and is a 
defined benefit plan that provides retirement pension based on final 
salary. The ITP2 plan provides pension as a percentage of various 
salary intervals. 
The pension is reduced proportionately if the total period of service is 
less than 30 years. The ITP2 plan is managed by a fund, and the com-
pany may compensate itself using any surpluses in the plan assets.
Other
There are a number of minor pension obligations in Germany and 
Sweden. Some of these plans are funded. 
Costs for the period for defined benefit plans
SEKm
2022
2021
Service cost for the period, after deduction for 
premiums paid by the employees
–38
–96
Pension tax expense
–15
–18
Net interest
14
5
Pension costs 
–39
–109
 TC5:2   Defined benefit obligations
SEKm
2022
2021
Value January 1
1,888
2,087
Service cost for the period
38
96
Interest expense
31
19
Pension tax expense
15
18
Benefits paid
–58
–59
Pension taxes paid
–5
1
Remeasurement: financial assumptions
–672
–51
Remeasurement: demographic assumptions
–12
-
Remeasurement: experience-based assumptions
49
–137
Pension taxes pertaining to remeasurement
–77
–87
Translation differences
0
1
Value December 31
1,197
1,888
Remeasurements in the defined benefit obligations comprise changes 
in financial assumptions, such as changes to the discount rate, any 
changes in demographic assumptions and experience-based devia-
tions. Experience-based deviations include unexpectedly high or low 
employee turnover. 
Provisions for pensions and similar obligations
SEKm
2022
2021
 TC5:2   Defined benefit obligations
1,197
1,888
 TC5:3   Fair value of plan assets
–3,522
–3,997
 TC5:4   Effect of asset ceiling
881
972
 TC5:1   Provision for pensions, net
–1,444
–1,137
Surpluses in funded plans recognized as financial non-current assets 
amounted to   BS   SEK 1,689m (1,564) on the balance sheet date and 
provisions for pensions totaled   BS   SEK 245m (427). Defined benefit 
obligations include obligations in an amount of SEK 117m (145) per-
taining to unfunded plans.
SCA has both defined contribution and defined benefit pension plans 
in a number of subsidiaries. The most significant defined benefit pen-
sion plan is the pension plan in Sweden, as described in   TC5:1 .
 TC5:1   Provisions for pensions and similar obligations per plan 2022
Commitments
Plan assets,  
fair value
Effect of asset 
ceiling
Duration of 
obligation, 
years
SEKm 
Active
Paid-up 
pension 
policies
Pensioners
Total
Net
Country
Sweden
119
344
491
954
–2,560
-
–1,606
17
Other
158
37
48
243
–962
881
162
10
Total
277
381
539
1,197
–3,522
881
–1,444
Group
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TC5:3   Fair value of plan assets
SEKm
2022
2021
Fair value January 1
–3,997
–3,778
Interest income
–58
–33
Contributions by the employer
–2
2
Benefits paid, excluding settlements
113
54
Return in excess of recognized interest income
422
–242
Translation differences
0
0
Fair value December 31
–3,522
–3,997
99% (100) of the plan assets on the balance sheet date were traded on 
active markets in which market quotations are used for the valuation of 
assets. As in the preceding year, no financial instruments issued by 
SCA are included in the fair value of plan assets at December 31, 2022.
 TC5:4   Effect of asset ceiling
SEKm
2022
2021
Value January 1
972
892
Interest expense
15
8
Other changes to asset ceiling
–106
72
Value December 31
881
972
Effect of asset ceiling pertains to funds in one Swedish foundation that 
can be used for possible future undertakings for early retirement for 
certain categories of employees.
 TC5:5   Principal actuarial assumptions
Sweden
2022
Discount rate
4.08
Expected salary increase rate
3.09
Expected inflation
2.27
Life expectancy, men1)
22
Life expectancy, women1)
24
2021
Discount rate
1.54
Expected salary increase rate
3.09
Expected inflation
1.89
Life expectancy, men1)
22
Life expectancy, women1)
24
1)	Life expectancy, expressed in years, for an individual currently aged 65.
The discount rate for Germany was 3.77 (0.99). 
 TC5:6   Sensitivity analysis
SEKm
Discount rate +0.25%
48
Price inflation, incl. salary inflation +0.25%
–54
Longevity +1 year
–47
The sensitivity analysis is calculated by changing one assumption 
while the others remain constant. An increased obligation is reported 
with a minus sign.
Other disclosures
Multiemployer plans
SCA has obligations for disability and family pensions for salaried 
employees in Sweden, secured through insurance with the insurance 
company Alecta. These benefits are reported as defined contribution 
plans since there is no basis for allocating the obligations, plan assets 
and costs to the individual companies covered by the plan.
Budgeted contributions
The budgeted contributions for the company’s defined benefit pension 
plans for 2023 were calculated at SEK 61m. Contributions for multiem-
ployer plans for 2023 were calculated at SEK 3m.
The plan assets are distributed according to the following  
classes of assets 2021:
Shares and mutual funds, 92% (SEK 3,703m)
Interest-bearing securities, 6% (SEK 236m)
Real estate fund 1% (SEK 31m)
Other 1% (SEK 27m)
The plan assets are distributed according to the following  
classes of assets 2022:
Shares and mutual funds, 92% (SEK 3,253m)
Interest-bearing securities, 6% (SEK 205m)
Real estate fund 1% (SEK 32m)
Other 1% (SEK 32m)
Group
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D1. INTANGIBLE FIXED ASSETS
 AP   ACCOUNTING PRINCIPLES
Goodwill
Goodwill arises in connection with business combinations where the 
consideration transferred exceeds the fair value of the acquired net 
assets. Goodwill is recognized at cost less accumulated impairment 
and is an intangible asset with an indefinite useful life. This means that 
goodwill is not amortized, but rather is tested annually for impairment. 
All goodwill is allocated to the cash-generating units that benefit from 
the synergies from the business combination. In connection with the 
sale of Group companies, goodwill attributable to the divested unit is 
included in the capital gain or loss. Goodwill that arises in acquisitions 
of associated companies or joint ventures is included in the carrying 
amount of the respective associate or joint venture. The cash-gener-
ating units correspond to the operating segments in accordance with 
Note B1.
Other intangible fixed assets 
Intangible assets also include patents, licenses and other similar 
rights. Acquired assets of this type are recognized at cost and are 
amortized on a straight-line basis during their anticipated useful life, 
which varies between 3 and 20 years. 
Customer relations are measured at fair value at the time of the acquisi-
tion. The value of these customer relations is amortized over their esti-
mated useful life, which is considered to be between 3 and 15 years.
Research expenditure is recognized as an expense when incurred. 
Identifiable expenditure for development of new products and pro-
cesses is capitalized to the extent it is expected to provide future eco-
nomic benefits. In cases in which it is difficult to separate the research 
phase from the development phase in a project, the entire project is 
treated as research and expensed immediately. Capitalized expendi-
ture is amortized on a straight-line basis from the date when the asset 
is in a location and in the condition required to use it in the manner 
intended by management. 
Impairment testing 
Goodwill is tested annually for impairment. When testing for impair-
ment, the assets are grouped in cash-generating units in accordance 
with SCA’s operating segments in Note B1. The test compares the 
­carrying amounts of the cash-generating units with the recoverable 
amounts. The recoverable amount of each cash-generating unit is 
determined by discounting future cash flows in order to determine 
their value in use. The calculation of future cash flows is based on the 
strategic plans adopted by Executive Management for the next three 
years. The carrying amount for the cash-generating unit includes 
goodwill with indefinite useful lives and assets with definite useful 
lives, such as non-current assets and working capital. 
The value of depreciated assets is tested for impairment when there 
are indications that the carrying amount might not be recoverable. In 
cases in which the carrying amount of an asset exceeds its estimated 
recoverable amount, an impairment loss is recognized on the asset 
down to the recoverable amount. 
An impairment loss recognized earlier is reversed, if the reasons for 
the impairment no longer exist. However, a reversal is not higher than 
the carrying amount before impairment loss. Impairment losses on 
goodwill are never reversed.
Emission allowances and costs for carbon dioxide 
emissions
SCA participates in the European system for emission allowances and 
receives a permit to emit a specific volume of carbon dioxide (CO2) 
during a calendar year for each operation where an environmental 
permit is required. Emission allowances relating to CO2 emissions are 
recognized as an intangible asset and as deferred income (liability) 
when they are received. 
Emission allowances are received free of charge and measured and 
recognized at market value as of the date to which the allocation per-
tains. During the period, the initial liability for emission allowances 
received is dissolved over the income statement as income in pace 
with actual CO2 emissions and meets the cancellation of the intangible 
asset from allocated emission allowances to the extent the allocation 
covers actual emissions. If the emission allowances received do not 
cover actual emissions, a provision is made for the deficit valued at the 
market value on the balance sheet date. Sales of surplus emission 
allowances are recognized as income on the delivery date when the 
dissolution of the corresponding liability and disposal of the corre-
sponding intangible assets occurs.
If the market price of emission allowances on the balance sheet date is 
less than recognized cost, any surplus emission allowances that are 
not required to cover emissions made are impaired to the market 
price. In conjunction with this, the remaining part of the deferred 
income is recognized as income by a corresponding amount and 
therefore no net effect occurs in the income statement. The emission 
allowances are used as payment in the settlement with the Swedish 
state regarding liabilities for actual CO2 emissions. 
Intangible fixed assets
Intangible assets
SEKm
2022
2021
Accumulated cost
917
773
Accumulated depreciation
–306
–268
Accumulated impairment
–90
–113
Total
521
392
Value January 1
392
279
Investments
147
166
Depreciation
–18
–17
Impairment
-
–36
Value December 31
521
392
 TD1:1   Emission allowances, net value
210
134
 BS   Value December 31 including emission 
allowances
731
526
Impairment testing
Annual testing for potential impairment of goodwill is normally carried 
out in the fourth quarter. No impairment test was carried out in 2022 
as there is no goodwill. 
In addition to annual impairment testing of the cash-generating units, 
individual assets are tested to determine whether any impairment is 
needed. 
 TD1:1  Emission allowances
SEKm
2022
2021
Accumulated cost
210
134
Total
210
134
Value January 1
134
41
Emission allowances received
254
154
Sales
–110
–33
Settlement with the Swedish government
–68
–28
Value December 31
210
134
D. OPERATING ASSETS AND LIABILITIES
Group
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D2. TANGIBLE FIXED ASSETS
 AP   ACCOUNTING PRINCIPLES
Tangible fixed assets are recognized, with the exception of land assets 
relating to forest assets, at cost less accumulated depreciation and 
any impairment. In cases where an investment in foreign currency has 
been recognized using hedge accounting, the gain/loss from the 
hedge is recognized as part of the acquisition cost. The cost of prop-
erties and production facilities included in major projects includes 
costs for running-in and start-up. The sale of products of sufficient 
quality from the running-in period is recognized as net sales. Bor-
rowing costs are included in the cost of investments involving signifi-
cant amounts that take more than 12 months to complete. Expendi-
ture for repairs and maintenance is expensed directly in the income 
statement. Income from the sale of products manufactured during the 
completion of the facility are recognized over the income statement. 
Land assets attributable to forest assets are recognized on a separate 
line in the balance sheet and are included in Note D3 Forest assets.
Depreciation and impairment
Land is not subject to depreciation. Buildings, land improvements, 
machinery and equipment are depreciated on a straight-line basis 
over the useful lives of the assets. If there is an indication that prop-
erty, plant and equipment has declined in value, impairment testing 
is carried out.
Assessed useful lives
Number of 
years
Computers
3–5
Vehicles
4–5
Tools
3–10
Office equipment
5–10
Other machinery
7–18
Land improvements
10–20
Pulp-, paper- and saw mills
10–25
Energy plants
15–30
Harbors and railways
20–30
Buildings
15–50
Carrying amounts
Buildings
Land and land 
improvements1) 
Machinery and 
equipment
Construction  
in progress 2)
Total tangible  
fixed assets
SEKm
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
Accumulated cost
4,867
4,963
3,891
3,636
28,465
28,624
9,879
6,944
47,102
44,167
Accumulated depreciation
–2,115
–2,136
–2,227
–2,067
–16,587
–16,634
-
-
–20,929
–20,837
Accumulated impairment
–202
–242
–84
–84
–1,080
–1,260
–7
–7
–1,373
–1,593
Total
2,550
2,585
1,580
1,485
10,798
10,730
9,872
6,937
24,800
21,737
Value January 1
2,585
2,620
1,485
1,501
10,730
11,119
6,937
3,401
21,737
18,641
Investments3)4)
39
41
145
116
190
294
3,311
3,947
3,685
4,398
Sales and disposals
7
–1
-
–4
–22
–72
–4
-
–19
–77
Asset acquisitions5)
-
-
29
-
760
-
-
-
789
-
Company divestments
-
-
-
-
-
-
–36
-
–36
-
Reclassifications
62
50
60
8
227
423
–350
–481
–1
-
Depreciation 
–144
–126
–139
–136
–1,088
–1,091
-
-
–1,371
–1,353
Impairment 
-
-
-
-
0
57
-
-
0
57
Translation differences
1
1
-
-
1
-
14
70
16
71
 BS   Value December 31
2,550
2,585
1,580
1,485
10,798
10,730
9,872
6,937
24,800
21,737
1)	Land and land improvements include forest roads valued at SEK 908m (917). Investments for the year in forest roads amounted to SEK 112m (91) and depreciation 
for the year to SEK 83m (84). 
2)	Of the outgoing value of construction in progress and advance payments for property, plant and equipment, SEK 7,090m (5,348) pertains to the investment project 
in Obbola.
3)	During the period, interest was capitalized in an amount of SEK 162m (57). The average interest rate used was 2% (1).
4)	In 2022, investment grants were included in the amount of SEK 1m (4). 
5) Asset acquisitions in 2022 pertain entirely to the acquisition of wind farm operations.
Group
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Board of Directors’ Report
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D3. FOREST ASSETS
 AP   ACCOUNTING PRINCIPLES
Forest assets are divided into standing timber and land assets. 
Standing timber is recognized as a biological asset in accordance 
with IAS 41 Agriculture. Land assets are recognized as tangible fixed 
assets in accordance with IAS 16 Property, plant and equipment. 
The total value of the forest assets is based on transactions in the 
areas where SCA owns forest assets. To support this valuation, SCA 
retrieves statistics of transactions, which are available from two 
market sources. SCA uses inputs to measure its forest assets. 
According to IFRS 13, the inputs refer to different levels in the fair 
value hierarchy (see Note E1). The statistics obtained can be viewed as 
market-corroborated inputs in accordance with measurement level 2. 
However, the valuation of forest assets is entirely allocated to level 3, 
as the estimated forest volume contains assessments and the  
suppliers of the transaction data make certain adjustments using 
unobservable inputs (see KAA ). In addition to this, an assessment is 
carried out of the transaction periods to be included in the calculation 
of an average price. No transfers have taken place between the  
measurement levels during the year. If a transfer had taken place 
between the measurement levels, this would be undertaken at 
year-end. 
In combination with the valuation of total forest assets, and to deter-
mine the fair value of the Group’s biological assets, expected future 
cash flows from the assets were also discounted. The calculation to 
establish the value of biological assets is based on existing, sustain-
able harvesting plans and assessments regarding growth, timber 
prices, harvesting and silviculture costs and selling expenses. Envi-
ronmental restrictions and other limitations are taken into account 
which mean that the assets cannot be fully utilized. The effects of reg-
ulations as a result of known political decisions are taken into consid-
eration. Demand for renewable raw materials and renewable energy is 
expected to increase and may have a positive impact on wood prices 
in the future. Changed climate conditions may lead to higher growth 
and in parallel increase the risk of infestation and extreme weather 
conditions. The impact of climate-related changes is difficult to 
assess since the cycles are long and entail both opportunities and 
risks. SCA manages this by conducting a sensitivity analysis  TD3:1  in 
the form of changed wood price, felling costs and volumes. The calcu-
lation is performed for a production cycle for biological assets that 
SCA estimated to average 100 years. The change in value is recog-
nized in the income statement on the line item for change in value in 
biological assets. 
The value of land assets constitutes the residual amount between 
the total value of forest assets calculated based on market data and 
the value of the biological assets based on discounted cash flows. 
To confirm the land value, SCA has discounted cash flows linked to 
land assets. Land assets relating to forest assets are recognized at fair 
value in accordance with IAS 16.31, and are recognized on a separate 
line in the balance sheet under forest assets. The change in value per-
taining to land is recognized as other comprehensive income and 
does not impact profit for the year. 
 KAA   KEY ASSESSMENTS AND ASSUMPTIONS
SCA has based its valuation of forest assets in Sweden on forest 
transactions in the areas where SCA owns forest assets. Market sta-
tistics are obtained from the providers Ludvig & Co and Svefa, which 
are two independent parties in relation to SCA. The providers process 
the data by adjusting market transactions that include other significant 
components in addition to forest land. SCA never adjusts the data. 
The regions where SCA owns forest are allocated in the data based on 
four different areas and the prices in these areas are used as a basis 
for the volume weighted price.
The calculated market price used by SCA is based on forest transac-
tions over the last three years, therefore individual transactions will not 
have a major impact on the outcome. Since transactions often take 
longer than seven months there is no isolated market value given at 
December 31. To ensure that the volume of transactions offer an accu-
rate picture of market development, given the aforementioned factors, 
SCA has chosen to use a three-year average.
The three-year average price in 2022 was SEK 366/m³fo (324) and is 
used to determine the total average value per m³fo of SCA’s forest 
assets in Sweden. The market in the Baltic region is considered com-
parable with SCA’s holdings in Sweden in terms of price, and is there-
fore measured at the same value per m³fo. The distribution of value 
between biological assets and land in the Baltic region takes place 
using SCA’s own discounted cash flow model since the production 
cycles differ. As of December 31, 2022, timber volume is estimated 
to amount to approximately 260 million m³fo in Sweden and 7 million 
m³fo in the Baltic region.
 TD3:1   describes the sensitivity of the carrying amount with respect 
to key assumptions. 
Market data included in SCA’s forest valuation1)
2022
2021
2020
2019
No. of transactions
135
176
219
251
Average price, SEK/m³fo
418
368
312
292
Average size of estate (ha)
137
75
61
67
1)	Combined volume-weighted average from Svefa and Ludvig & Co distributed 
geographically across the areas where SCA has its forest holdings. SCA’s 
forest holding is largely in the southern parts of northern Sweden, where prices 
are slightly above the average for northern Sweden as a whole. 
Forest assets
SEKm
2022
2021
Forest assets in Sweden1)
95,206
82,746
Forest assets in the Baltic region2)
2,676
1,751
Total value of biological assets  
and land assets
97,882
84,497
Deferred tax related to forest assets
19,468
16,905
1)	The fair value of SCA’s forest assets in Sweden in 2022 was based on a timber 
volume of approximately 260 million m3fo multiplied by the market price of 
SEK 366/m3fo.
2)	The fair value of SCA’s forest assets in the Baltic region in 2022 was based on a 
timber volume of approximately 7 million m3fo multiplied by the market price of 
SEK 366/m3fo. 
Group
109
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
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The change in the fair value of biological assets and change due 
to felling are recognized as a net value in the income statement on 
the line change in value in biological assets. The change amounts 
to  IS   SEK 1,825m (1,753). SCA also capitalizes replanting costs. Total 
change in value of biological assets amounts to SEK 2,372m (2,033). 
The current year’s valuation of biological assets and land assets was 
based on market statistics and discounted cash flows. For the current 
year’s valuation of biological assets, the same valuation model was 
used as in the previous year using a yield requirement of 3.5% (3.5) 
after tax. SCA takes a long-term view of the yield requirement on 
investments in forest assets and is unaffected by short-term move-
ments in market interest rates. Since the total value of forest assets is 
based on market statistics in areas where SCA owns forest, the dis-
count rate only impacts the allocation between biological assets and 
land assets.
When cash flow was discounted, estimated income and expenses 
were adjusted by an annual inflation rate of 2%. Assumptions 
regarding future price and cost levels are based on the outcome for 
prior years adjusted for inflation. The valuation assumes an average 
wood price of SEK 479 (457) per solid cubic meter under bark (m3sub). 
Annual harvesting in 2022 was 4.4 (4.3) million m³sub and is expected 
to rise over the future production cycle. 
On average, 87% of harvesting is final harvesting and 13% thinning. 
Of this, 48% is expected on average over the years to comprise saw-
logs and 52% pulpwood. 
SCA’s forest holdings in Sweden are made up of approximately 2.6 
million hectares of forest assets primarily in northern Sweden, of 
which approximately 2.0 million is productive forest land. SCA also 
owns just over 57,000 hectares of forest land and 12,000 hectares of 
other land that can potentially be converted to forest land or be sold in 
Estonia, Latvia and Lithuania. Growth amounts to approximately 10.5 
million m³fo per year, gross, on productive forest area. Net growth, 
meaning growth after harvesting and natural losses, is estimated to 
average 3.6 million m³fo per year in Sweden and 0.3 million m³fo per 
year in the Baltic region.
Forest assets
20221)
20211)
Carrying amount SEK/hectare forest assets
47,585
42,249
Carrying amount SEK/m3fo
366
324
1)	The values are calculated based on productive forest area. 
 TD3:1   Sensitivity analysis
Change in value, 
before tax
SEKm
Change in assumption
2022
2021
Total forest assets
Market price based  
on market statistics1)
Price change 5% on a total 
volume of 267 (261) million m3fo
4,894
4,225
Forest holding’s  
standing timber 
volume1)
3 million m3fo (approx. 1%)
1,099
972
Biological assets  
as a share of forest 
assets2) 
Discount rate
Reduction by 0.1%
2,188
2,132
Wood price
Increase of 10%
11,584
10,154
Felling cost
Increase of 10%
–3,179
–3,053
Volume
Increase of 10%
5,749
5,196
1)	The sensitivity figures are based on the market price, which for 2022 has been 
set to SEK 366 (324) /m3fo. Sensitivity figures are based on the total value of 
forest assets.
2)	Since valuation in the discounted cashflows model treats the distribution of the 
market value of the total asset, this sensitivity would not impact the total value 
of the forest assets but rather transfer the value between biological assets and 
land assets.
The following charts and tables illustrate some of the components 
used to determine the Group’s fair value for biological assets.
Growth in SCA’s forest
2022
Volume,  
million m3fo
 %
Value January 1, Sweden
256
Available growth
9.1
3.6
of which gross forest growth
10.5
4.1
of which natural losses and pre-commercial 
thinning
–1.4
–0.5
Harvesting1)
–5.3
–2.1
Net forest growth
3.8
1.5
Value December 31, Sweden
260
Holdings in Baltic region
7
Value December 31
267
1)	Equal to about –4.4 million m3sub.
2021
Volume,  
million m3fo
 %
Value January 1, Sweden
252
Available growth
9.1
3.6
of which gross forest growth
10.5
4.2
of which natural losses and pre-commercial 
thinning
–1.4
–0.6
Harvesting1)
–5.2
–2.0
Net forest growth
3.9
1.5
Value December 31, Sweden
256
Holdings in Baltic region
5
Value December 31
261
1)	Equal to about –4.3 million m3sub.
Forest assets
Biological assets
Land assets
Total forest assets
SEKm
2022
2021
2022
2021
2022
2021
Value January 1
53,309
51,276
31,188
23,624
84,497
74,900
Acquisitions
559
340
636
110
1,195
450
Divestments
–12
–60
–21
–25
–33
–85
Other changes in fair value1)
2,892
2,518
10,398
7,479
13,290
9,997
Change due to felling
–1,067
–765
0
0
–1,067
–765
 BS  Value December 31
55,681
53,309
42,201
31,188
97,882
84,497
1)	Other changes are primarily recognized as the increase in value due to market prices and growth of the forest.
Group
110
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
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Other

Market statistics of forest land prices are obtained from two parties that are independent in relation to SCA: Ludvig & Co and Svefa.  
The chart below shows forest land prices in Sweden, nominal value 2011–2022.
Forest land prices in 
northern Sweden
2018
2019
2020
2021
2022
Price, SEK/m3fo
269
274
296
333
385
Source: Ludvig & Co, nominal values
Forest land prices in 
northern Sweden
2018
2019
2020
2021
2022
Price, SEK/m3fo
269
281
284
319
378
Source: Svefa, nominal values
SCA bases its valuation of forest assets in Sweden on forest transac-
tions in the areas where SCA owns forest assets, over the last three 
years. Data volume is then weighted based on SCA’s forest holding 
before application to the total forest valuation. The three-year average 
price in 2022 was SEK 366/m³fo (324) and is used to determine the 
total average value per m³fo of SCA’s forest assets in Sweden. The 
chart below shows historical market price 2017–2022 (based on three-
year average).
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2110–2122
2100–2109
2090–2099
2080–2089
2070–2079
2060–2069
2050–2059
2040–2049
2030–2039
2023–2029
2022
2015–2021
1,000 m3sub/year
Harvesting 2015–2022
Planned harvesting 2023–2122
0
100
200
300
400
500
600
2026
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
SEK/m3sub
Price/individual year
Nominal price (inflation 2%)
Harvesting
Harvesting 2015–2022 and planned harvesting 2023–2122
Nominal timber price
SEK/m3fo
0
50
100
150
200
250
300
350
400
2022
2021
2020
2019
2018
2017
366
Market price
Historical market price 2017–2022 (based on three-year average)
Forest land prices, Sweden, nominal value 2011–2022
Ludvig & Co
SEK/m3fo
0
200
400
600
800
1,000
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
Southern Sweden
Central Sweden
Northern Sweden
Svefa
SEK/m3fo
0
200
400
600
800
1,000
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
Southern Sweden
Central Sweden
Northern Sweden
The table below illustrates SCA’s purchases and divestments of forest 
land in Sweden over the past five years.
SCA’s purchases and divestments of forest land in 
Sweden
Purchase
2018
2019
2020
2021
2022
Volume, thousand m3fo
197
429
288
467
448
Price, SEK/m3fo
286
334
294
379
453
Divestment
2018
2019
2020
2021
2022
Volume, thousand m3fo
192
959
319
255
602
Price, SEK/m3fo
268
264
259
198
386
Group
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SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
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Board of Directors’ Report
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D4. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES
 AP   ACCOUNTING PRINCIPLES
Lessee
A contract is or contains a lease agreement if the contract conveys 
the right to determine the use of an identifiable asset for a specified 
period of time in return for compensation. When an agreement is 
entered into, a company must consider whether the contract is or con-
tains a lease agreement. SCA’s lease agreements primarily consist of 
trains, office premises, terminals, warehouses, other buildings, land 
leases, various transport vehicles, and company cars. Leases are 
­recognized in accordance with IFRS 16 Leases, which means a lessee 
must recognize a right-of-use asset and a lease liability in the balance 
sheet when a lease comes into effect. The standard includes exemp-
tions for short-term leases (leases with a lease term of 12 months or 
less) and leases where the underlying asset has a low value. SCA uses 
the available exemption, which means short-term leases and leases 
for which the underlying asset has a low value are not recognized in 
the balance sheet. Leases covered by the exemption largely consist 
of photocopiers and coffee machines. 
On the date of initial application for the lease, the lease liability is 
­measured at the present value of outstanding lease payments. This 
encompasses fixed fees after deductions for any benefits, variable 
lease payments linked to index or price and amounts expected to be 
paid by the lessee in accordance with residual value guarantees. 
Lease payments include the exercise price for a purchase option if the 
lessee is reasonably certain of exercising the option. They also include 
financial penalties to be paid on termination of the lease if the lease 
term reflects that the lessee will utilize this option. Variable lease 
­payments not linked to price or interest are expensed.
Lease payments are to be discounted by the interest rate implicit in the 
lease contract, if it can be readily determined. In cases where the rate 
cannot be readily determined, lease payments are discounted using 
SCA’s incremental borrowing rate. A substantial part of SCA’s lease lia-
bility has been discounted using the incremental borrowing rate. The 
incremental borrowing rate is to reflect the interest rate a lessee would 
have to pay for financing through loans for the equivalent period with 
similar collateral, for the right-of-use of an asset in a similar economic 
environment. SCA has prepared a method for determining the incre-
mental borrowing rate, which includes the credit rating of the individual 
subsidiaries, the economic environment, contract duration of the lease, 
and class of asset. Updating the incremental borrowing rate is per-
formed on a regular basis of new and modified contracts. After the date 
of initial application, the lease liability increases by the interest on the 
lease liability but decreases as lease payments are made. The lease 
liability is remeasured using a modified discount rate in cases where 
the lease term changes or if the assessment of an option to purchase 
the underlying asset changes. The lease liability is remeasured using 
an unchanged discount rate if the amount expected to be paid in 
accordance with the residual value guarantees is changed, or the 
future lease payments are changed due to changes in price or index. 
Lease liabilities are classified as financial liabilities, see Note E4.
On the date of initial application for the lease, the date on which the 
underlying asset becomes available for use, a right-of-use asset is 
recognized. Right-of-use assets are measured at cost, which includes 
the sum of the original lease liability, any initial direct fees and an esti-
mate of any recovery expenses. Furthermore, cost includes all lease 
payments made on or before the date of initial application, after 
deductions for any benefits received in conjunction with signing the 
lease. After the date of initial application, the right-of-use asset is 
measured at cost less accumulated depreciation and any accumu-
lated impairment, taking into account adjustments for any revaluation 
of the lease liability. Right-of-use assets are depreciated over their 
useful life, if there is reasonable certainty that a purchase option will 
be exercised. Otherwise, the lessee must depreciate the right-of-use 
from the date of initial application until which ever occurs first of the 
end of the useful life or the end of the lease term. An assessment of 
useful lives is presented in table   TD4:1 .
Impairment is addressed in Note D2.
Lessor 
When SCA is a lessor, each contract is classified as either an oper-
ating or finance lease. A lease is classified as finance if the contract 
means the economic benefits and risks normally associated with own-
ership of the underlying asset are essentially transferred. A lease is 
classified as operating if the economic benefits and risks associated 
with ownership of an underlying asset are essentially not transferred. 
Lease payments are recognized as income on a straight-line basis 
over the contract term. 
Agreements where SCA is a lessor are primarily consisting of develop-
ment rights for land connected to wind power projects, leasing non-­
productive forest land and leasing parts of industrial facilities and 
other subletting of property. All contracts when SCA is lessor are clas-
sified as operating leases. The classification is primarily based on the 
master agreement entered into by SCA and not on the basis of the 
underlying asset.
 KAA   KEY ASSESSMENTS AND ASSUMPTIONS
IFRS 16 stipulates that when entering into any agreement an assess-
ment must be made of whether the contract is or includes a lease. 
SCA assesses all contracts entering into force on an individual basis 
with the exception of contracts for company cars, which are assessed 
as a portfolio. In cases where a lease contract includes an identifiable 
asset, but where SCA is not entitled to receive essentially all benefits 
from use of the asset or is not entitled to control use of the identified 
asset, SCA’s opinion in all instances is that the contract is not, nor 
does it contain, a lease agreement. A contract can include compo-
nents that are not to be classified as lease components, such as 
included services, personnel, and administration. SCA has chosen to 
exclude non-lease components for all leases.
The lease term is defined as the non-cancellable lease period together 
with periods that may be covered by an option to extend a lease if the 
lessee is reasonably certain of utilizing this alternative and periods 
covered by an option to terminate the lease if the lessee is reasonably 
certain of not utilizing this alternative. SCA has a number of contracts 
where the contractual terms clearly encompass extension periods. 
The right to an extension has been included in the lease term when 
SCA with reasonable assurance can determine that the contract will 
be extended. SCA has not included the right to an extension in the 
lease term where the lease period exceeds ten years as the assess-
ment is that “reasonable assurance” cannot be applied to such a long 
interval. The following extension periods have been utilized for con-
tracts that include a right to an extension for an unspecified period 
and where SCA with reasonable assurance will utilize this right: fork-
lifts and other work vehicles 3 years, property 3–5 years. 
A number of contracts include an option to withdraw from the agree-
ment early, but where an early termination would trigger a termination 
fee, the size of which is dependent on when the agreement is termi-
nated. In no instance over the lease term has SCA considered the 
option to withdraw from an agreement early as there are often signifi-
cant termination fee. In cases where SCA and its counterparty are 
each independently entitled to terminate a lease without the consent 
of the counterparty and without a substantial financial penalty, SCA 
has considered the agreement as unenforceable. In cases where only 
the counterparty was entitled to terminate an agreement, the con-
tract’s period of notice has constituted the lease term. When SCA has 
been solely entitled to terminate an agreement, the lease term in the 
majority of cases was assessed as 3–5 years, as described above.
In applicable cases, residual value guarantees were taken into 
account when determining the lease payments. 
Group
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TD4:1   Assessed useful lives
Number 
of years
Company cars
3–4
Other
2–8
Trains
10
Work vehicles
3–12
Properties, real estate
3–40
Amounts reported in income statement
SEKm
2022
2021
Depreciation right-of-use assets
–162
–163
Interest expenses, lease liability
–24
–25
Lease payments related to low value leases
–3
–3
Lease payments related to short-term leases
–4
–30
Variable payments 
–15
–18
Terminated contracts
–1
2
Total
–209
–237
Cash flow
SCA recognizes a cash flow effect arising from payments related to 
present value calculated leasing contracts of SEK 183m (185). The 
cash flow effect attributable to low value leases, short-term leases 
and variable payments amounts to SEK 22m (51).
 TD4:2  Operating leases where SCA is lessor
Rental income for the year amounts to SEK 113m (75). 
Future minimum lease payments for operating leases mature 
according to the table below:
SEKm
2022
2021
Within 1 year
115
96
Between 1 and 5 years
387
291
More than 5 years
161
168
Total
663
555
Leases where SCA is lessee in accordance with IFRS 16
Carrying amounts right-of-use assets and lease liabilities
Right-of-use assets
SEKm
Properties, 
real estate
Trains
Work 
­vehicles
Company 
cars
Other
Total
Lease 
­liabilities2)
Value January 1, 2022
261
214
80
39
20
614
636
Lease payments
-
-
-
-
-
-
–183
Depreciation
–56
–35
–34
–29
–8
–162
-
Interest expenses
-
-
-
-
-
-
24
Additional and remeasured contracts1)
55
4
27
18
2
106
106
Terminated contracts
0
-
–1
–1
0
–2
–2
Translation differences
5
-
0
0
0
5
7
 BS   Value December 31
265
183
72
27
14
561
588
1)	Additional contracts amount to SEK 58m and remeasurement of existing contracts to SEK 48m. The remeasurement of leases mainly concerns the extension of 
the lease period for a number of rental contracts and indexed rental payments. Of the additional contracts, SEK 19m concerns land leases related to the wind farm 
acquired by SCA in the fourth quarter of 2022
2)	Of the total lease liability at year-end, SEK 439m is classified as non-current financial liabilities and SEK 149m as current financial liabilities. An analysis by maturities 
is provided in Note E4.
Right-of-use assets
SEKm
Properties, 
real estate
Trains
Work 
­vehicles
Company 
cars
Other
Total
Lease 
­liabilities3)
Value January 1, 2021
289
249
117
49
25
729
751
Lease payments1)
-
-
-
-
-
-
–185
Depreciation
–50
–35
–36
–32
–10
–163
-
Interest expenses
-
-
-
-
-
-
25
Additional and remeasured contracts2)
24
-
15
25
5
69
68
Terminated contracts
–10
-
–16
–3
0
–29
–31
Translation differences
8
-
0
0
-
8
8
 BS   Value December 31
261
214
80
39
20
614
636
1)	During the year, SCA was not allocated any discounts related to Covid-19.
2)	Additional contracts amount to SEK 42m and remeasurement of existing contracts to SEK 27m. The remeasurement of leases mainly concerns the extension of the 
lease period for a number of rental contracts and indexed rental payments.
3)	Of the total lease liability at year-end, SEK 500m is classified as non-current financial liabilities and SEK 136m as current financial liabilities. An analysis by maturities 
is provided in Note E4.
Group
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SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
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D5. INVENTORIES
 AP   ACCOUNTING PRINCIPLES
Inventories are measured at the lower of cost and net realizable value. 
Cost is calculated by applying the first-in, first-out (FIFO) or the 
weighted average cost principle. The cost of inventories and work 
in progress includes raw material costs, direct labor, other direct 
expenses and production-related overheads, based on a normal 
capacity utilization.
The net sales price is the calculated sales price received for normal 
business transactions less calculated marketing and sales costs.
Felling rights for standing timber are measured at contract prices, 
which on average have not exceeded the lower of net realizable value 
and cost.
Inventories
SEKm
2022
2021
Raw materials and consumables
1,424
1,784
Spare parts and supplies
693
449
Products in progress
83
52
Finished products
1,630
914
Felling rights
1,026
990
 BS   Total
4,856
4,189
Impairment of inventory amounted to SEK 44m (13) during the period.
D6. OTHER CURRENT RECEIVABLES
 AP   ACCOUNTING PRINCIPLES
Derivatives
Derivatives are classified as a financial instrument, refer to Note E1. 
However, SCA has chosen to define derivatives used to hedge oper-
ating items as operating derivatives, which is why they are recognized 
on operating lines in the balance sheet. 
Other current receivables
SEKm
2022
2021
Other current receivables included  
in working capital
VAT receivables
196
180
Accrued income
129
50
Prepaid expenses
277
182
Receivables from authorities
131
58
Derivatives
475
197
Receivables from associated companies
0
48
Other receivables
204
176
Total other current receivables included  
in working capital
1,412
891
Other current receivables
Receivables from electricity certificates
3
1
Total other current receivables not included  
in working capital
3
1
 BS   Total
1,415
892
D7. OTHER LIABILITIES
 AP   ACCOUNTING PRINCIPLES
Derivatives
Derivatives are classified as a financial instrument, refer to Note E1. 
However, SCA has chosen to define derivatives used to hedge oper-
ating items as operating derivatives, which is why they are recognized 
on operating lines in the balance sheet.
Other liabilities
SEKm
2022
2021
Other non-current liabilities
Derivatives
66
11
Other non-current liabilities
0
39
 BS   Total
66
50
Of which items that fall due for payment  
later than within five years
0
-
Other current liabilities
Other current liabilities included in working capital
Derivatives
483
349
 TD7:1   Accrued expenses and  
prepaid income
964
1,036
Other operating liabilities
237
147
Total other current liabilities included in 
working capital
1,684
1,532
Other current liabilities not included in working 
capital
 TD7:1   Accrued expenses and  
prepaid income
184
110
Other operating liabilities
159
0
Total other current liabilities not included in 
working capital
343
110
 BS   Total
2,027
1,642
 TD7:1   Accrued expenses and prepaid income
SEKm
2022
2021
Accrued expenses and prepaid income included  
in working capital
Accrued social security costs
112
109
Accrued vacation pay liability
102
92
Other liabilities to personnel
188
188
Bonus and discounts to customers1)
61
81
Other items
501
566
Total accrued expenses and prepaid income 
included in working capital
964
1,036
Accrued expenses and prepaid income  
not included in working capital
Emission allowances
184
110
Total accrued expenses and prepaid income 
not included in working capital
184
110
Total
1,148
1,146
1)	The principles for recognition of revenue from contracts with customers are 
described in Note B1.
Group
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D8. OTHER PROVISIONS
 AP   ACCOUNTING PRINCIPLES
Provisions are recognized in the consolidated balance sheet when 
there is a legal or informal obligation arising from events that have 
occurred and it is probable that payments will be required to settle the 
obligation. It must also be possible to reliably estimate the amount to 
be paid. The provision is valued at the present value of the anticipated 
future expenditure to settle the obligation.
A provision for restructuring measures is recognized when the Group 
has established a detailed plan and either implementation has begun 
or the main features of the measures have been communicated to the 
parties involved. Restructuring costs include, for example, costs for 
plant closures, impairment of production machinery and costs for 
­personnel reductions.
Other provisions
SEKm
Environ-
ment
Discontinuation 
of publication 
paper
Other
Total
Value  
January 1
49
239
4
292
Provisions
41
-
7
48
Utilization
–24
–81
–7
–112
Reclassifications
-
-
-
0
Dissolutions
-
–72
-
–72
Translation differences
0
0
0
0
Value  
December 31
66
86
4
156
Provisions comprise:
 BS   Long-term component
48
Short-term component 
included in working capital
49
Short-term component not 
included in working capital
59
 BS   Short-term component
108
Of the provisions for the period for environment, SEK 26m pertains 
to a liability for CO2 emissions, which will be paid out in 2023. The 
remaining SEK 15m of provisions for the period concerning environ-
ment pertain to land remediation and restoration expenses. Remaining 
provisions concerning the environment from previous years largely 
relate to a liability for CO2 emissions and provisions for future  
remediation commitments. 
Provisions arising from the discontinuation of publication paper oper-
ations decreased by SEK 153m during the year, of which SEK –81m 
was mainly utilized in connection with personnel costs and decom-
missioning costs and SEK –72m pertains to the dissolutions relating to 
completed contracts and changed plans for decommissioning 
expenses in relation to non-current assets divested. The remaining 
funds of SEK 86m mainly concern personnel costs and the remaining 
decommissioning work. 
Other provisions for the year largely pertain to the restoration of gravel 
quarries. Other provisions utilized in 2022 relate, for the most part, to 
the dissolution of the provisions for the closure of the wood processing 
plant in France. At the end of 2022, other provisions consists exclu-
sively of the restoration of gravel quarries.
D9. TRADE PAYABLES
SEKm
2022
2021
Trade payables included in working capital
Trade payables
3,404
3,141
Total trade payables included  
in working capital
3,404
3,141
Trade payables excluded from working capital
Trade payables strategic capital expenditures
218
337
Total trade payables excluded  
from working capital
218
337
 BS   Total
3,622
3,478
SEK 1,753m (1,745) of the total trade payable was related to standing 
forest, referred to as standing forest timber for sale. The seller of 
standing forest timber for sale has the right to almost immediate pay-
ment once the timber is harvested, though a payment plan can be 
used to spread payments over a longer period.
Group
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E1. FINANCIAL INSTRUMENTS BY CATEGORY AND MEASUREMENT LEVEL
 AP   ACCOUNTING PRINCIPLES
Financial instruments recognized in the balance sheet include cash 
and cash equivalents, securities, other financial receivables, trade 
receivables, trade payables, loans, derivatives and equity instruments.
Current investments and derivatives are recognized on the trade date. 
Equity instruments and loans are recognized on the settlement date. 
Trade receivables and trade payables are recognized in the balance 
sheet once the invoice has been sent or received, respectively.
Financial assets are initially recognized at cost including transaction 
costs relating to the acquisition. Financial assets measured at fair 
value do not include transaction costs. Financial assets are recog-
nized in the balance sheet until the rights in the agreement have been 
realized or the company no longer has the rights to the asset. Reviews 
are continually conducted using the expected loss model of financial 
assets measured at amortized cost to assess the need of credit loss 
provisions. 
Financial liabilities are recognized at amortized cost, except for deriv-
atives that are measured at fair value using hedge accounting, refer to 
Note E4. Financial liabilities are derecognized from the balance sheet 
when SCA has met its commitments. For disclosures relating to	  
interest-bearing loans and investments, current market interest rates 
are taken into account in fair value calculations, refer to Note E4. 
Financial liabilities are derecognized from the balance sheet when 
SCA has met its commitments.
SCA recognizes financial instruments with a remaining maturity of less 
than 12 months as current assets and liabilities. Financial instruments 
that exceed 12 months, and where the company has the unconditional 
right to postpone settlement of the asset and liability for at least 
12 months, are recognized as non-current assets and liabilities.
Classification and subsequent recognition 
On the acquisition date, SCA classifies financial instruments into the 
following categories:
Financial assets measured at fair value  
in the income statement 
Assets are classified in this category when the intention is to sell in the 
short term and, if this is the case, they are recognized continuously at 
fair value in the income statement. This category also includes deriva-
tives with positive market values provided that they are not recognized 
using hedge accounting. Only financial derivatives were classified in 
this category during the year.
Financial liabilities measured at fair value  
in the income statement
This category includes derivatives with negative fair values that are 
not used for hedge accounting and financial liabilities held for trading. 
Liabilities in this category are continuously measured at fair value and 
changes in value are recognized in the income statement.
Financial assets measured at fair value  
through other comprehensive income
This category includes assets that are available for sale or that have 
not been classified in any of the other categories. These assets are 
measured at fair value through other comprehensive income less any 
impairment. This category includes equity instruments. 
Financial assets measured at amortized cost
This category comprises loan receivables that have determinable pay-
ments and are not quoted in an active market, as well as trade receiv-
ables. Receivables arise when cash and cash equivalents, goods or 
services are made available directly to another party without any 
intention of conducting trading in the receivables. Assets in this cate-
gory are measured at amortized cost less a potential provision for 
impairment.
Financial liabilities measured at amortized cost
This category includes financial liabilities that are not held for trading. 
These are recognized initially at fair value, net after transaction costs, 
and subsequently at amortized cost according to the effective interest 
method. The effective interest method means that the estimated 
change in value (effective interest) is recognized as interest income or 
interest expense in the income statement.
Derivatives used for hedge accounting
All derivatives are initially and continuously recognized at fair value in 
the balance sheet. Gains and losses on remeasurement of derivatives 
used for hedging purposes are recognized in accordance with the 
accounting principles stated in Note E6. 
E. CAPITAL STRUCTURE AND FINANCING
Measurement levels
Level 1: Quoted prices on an active market for identical assets or lia-
bilities, such as shares or bonds quoted on the stock exchange.
Level 2: Other observable inputs for the asset or liability than quoted 
prices included in Level 1, either directly (price quotations) or indirectly 
(obtained from price quotations), such as currency forward contracts 
or interest rate swaps. Fair value for currency options is determined 
using the Black-Scholes option pricing model.
Level 3: Inputs for the asset or liability not fully based on observable 
market data.
Group
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Financial instruments by category and measurement level
SEKm
Note
Measurement 
level
2022
2021
Financial assets measured at fair value in the income statement
Non-current financial assets
E2
2
72
60
Derivatives – Current financial assets
E2
2
5
0
Derivatives – Other current receivables
D6
2
102
171
Total
179
231
Financial liabilities measured at fair value in the income statement
Derivatives – Current financial liabilities
E4
2
5
1
Derivatives – Other current liabilities
D7
2
143
220
Derivatives – Other non-current liabilities
D7
2
-
-
Total
148
221
Financial assets measured at fair value through other comprehensive income
Equity instruments
E2
3
14
14
Total
14
14
Financial assets measured at amortized cost
Prepaid financial expenses
E2
-
101
114
Trade receivables
E3
-
3,007
2,516
Cash and cash equivalents
E2
-
836
1,056
Total
3,944
3,686
Financial liabilities measured at amortized cost
Non-current financial liabilities excluding leases
E4
-
10,312
8,584
Non-current financial liabilities leases
D4, E4
-
439
500
Current financial liabilities excluding leases
E4
-
1,635
918
Current financial liabilities leases
D4, E4
-
149
136
Trade payables
D9
-
3,622
3,478
Total
16,157
13,616
Derivatives used for hedge accounting
Non-current financial assets
E2
2
80
6
Other non-current assets
-
2
175
0
Other current receivables
D6
2
373
26
Total
628
32
Other non-current liabilities
D7
2
66
11
Other current liabilities 
D7
2
341
129
Total
407
140
Financial instruments are measured at fair value, with the exception of loan and trade receivables and financial liabilities measured at amortized 
cost. The measurement basis for lease liabilities is presented in Note D4. According to SCA’s assessment, the fair value essentially corresponds 
to the carrying amount, with the exception of non-current liabilities, of which the fair value is presented in Note E4.
Financial instruments in other notes to the balance sheet
2022
2021
SEKm
Note
Financial 
instruments
Of which 
derivatives
Financial 
instruments
Of which 
derivatives
Assets
Financial assets, cash and cash equivalents
E2
1,108
85
1,250
6
Other non-current assets
175
-
0
-
Trade receivables
E3
3,007
-
2,516
-
Other current receivables
D6
475
475
197
197
Total
4,765
560
3,963
203
Liabilities
Financial liabilities excluding leases
E4
11,952
5
9,503
1
Other non-current liabilities
D7
66
66
11
11
Lease liabilities
D4, E4
588
-
636
-
Trade payables
D9
3,622
-
3,478
-
Other current liabilities
D7
484
484
349
349
Total
16,712
555
13,977
361
Group
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E2. FINANCIAL ASSETS, CASH AND CASH EQUIVALENTS
 AP   ACCOUNTING PRINCIPLES
Cash and cash equivalents are defined as cash and bank balances as 
well as short-term investments with a maturity of less than three months 
from the acquisition date. Loan receivables are recognized at amor-
tized cost. Equity instruments comprise shares measured at fair value. 
These shares are not held for trading, which is why changes in value in 
accordance with IFRS 9 Financial Instruments are recognized in equity 
through other comprehensive income. The changes in value related to 
exchange gains/losses are recognized in the income statement.
Financial assets, cash and cash equivalents
Carrying amount
SEKm
2022
2021
Non-current financial assets
 TE2:1   Equity instruments
14
14
Derivatives
80
6
Capital investments, other
72
60
 BS   Total
166
80
Current financial assets
Prepaid financial expenses
101
114
Derivatives
5
0
 BS   Total
106
114
Cash and cash equivalents
Cash and bank balances
836
1,056
 BS   Total
836
1,056
Total financial assets, cash and cash equivalents
1,108
1,250
 TE2:1   Equity instruments
SEKm
2022
2021
Value January 1
14
14
Revaluation taken to equity, net
-
-
Value December 31
14
14
Distribution of equity instruments
SEKm
2022
2021
Shares – Shore Link AB
3
3
Shares – Sundsvalls Hamn AB
4
4
Shares – Bioenergi i Luleå AB
3
3
Other
4
4
Total
14
14
E3. TRADE RECEIVABLES
 AP   ACCOUNTING PRINCIPLES
Trade receivables belong to the category of financial assets measured 
at amortized cost, since the purpose of the holding is to obtain con-
tractual cash flows. Impairment of financial assets must be based on 
expected credit losses for the remaining term of the financial asset. In 
compliance with IFRS 9 Financial Instruments, SCA applies a simpli-
fied impairment model for trade receivables, whereby the expected 
credit loss is recognized for the estimated remaining lifetime of the 
receivable. In the past, SCA has not incurred significant customer 
losses and these losses have not exhibited significantly different loss 
patterns for various customers segments or economic cycles, which is 
why a matrix is used to measure expected customer losses. The provi-
sion for expected customer losses is based on an individual assess-
ment of overdue trade receivables for each customer. The basis for the 
assessment of credit risk in the part of the customer portfolio that is 
not assessed individually is historical customer losses, based on 
average loss frequency. The average loss frequency is adjusted as 
necessary to take into account changes in credit risk. The total provi-
sion for expected customer losses, in addition to the trade receivable 
assessed individually, amounted to SEK –10m (–7) at the end of 2022. 
SCA has signed credit insurance in order to reduce its credit risk. The 
trade receivables covered by the credit insurance amount to 43% (34) 
of total trade receivables on December 31, 2022. Any impairment of 
trade receivables affects SCA’s other operating expenses. Translation 
differences on trade receivables are recognized on the line other oper-
ating income and amount to SEK 68m (29). Translation differences 
include hedges in currency derivatives.
SCA’s trade receivables are current and are not discounted.
Trade receivables
SEKm
2022
2021
Trade receivables, gross
3,046
2,558
Provision to reserves for expected customer losses
–39
–42
 BS    TE3:1   Total
3,007
2,516
 TE3:1   Analysis of credit risk exposure in trade 
receivables
SEKm
2022
2021
Trade receivables neither overdue  
nor impaired
2,681
2,158
Trade receivables overdue  
but not impaired
< 30 days
299
274
30–90 days
16
68
> 90 days
11
16
Total trade receivables overdue but not 
impaired
326
358
Total
3,007
2,516
SCA’s customer structure is dispersed, with customers in many 
­different areas of business. In 2022, SCA’s ten largest customers 
accounted for 31% (32) of the Group’s sales. More information is 
­available in the section on credit risks on page 69. 
Group
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Provision for expected customer losses
SEKm
2022
2021
Value January 1
–42
–58
Individual provision for expected credit losses
−6
–3
Confirmed credit losses
11
17
Decrease due to reversal of provisions for 
expected credit losses
0
1
Translation differences
–1
1
Value December 31
–38 
–42
The expense for the period for expected credit losses amounted to 
SEK 2m (2). 
E4. FINANCIAL LIABILITIES
 AP   ACCOUNTING PRINCIPLES
The main principle for recognition of SCA’s financial liabilities is that 
they are initially measured at fair value, net after transaction costs, 
and subsequently at amortized cost according to the effective interest 
method. Transaction costs are accrued over the term of the loan. 
Liabilities that fall due after one year or later are classified as non-­
current liabilities and others are classified as current liabilities.
Financial liabilities
SEKm
2022
2021
Non-current financial liabilities
Bond loans
4,000
4,000
Other non-current loans with maturities between  
1 and 5 years
1,480
1,480
Lease liabilities with maturities between 1 and 5 
years
229
291
Other non-current loans with maturities of more 
than 5 years
4,832
3,103
Lease liabilities with maturities of more than 5 years
210
209
 BS   Total
10,751
9,083
Current financial liabilities
Amortization within one year
298
263
Derivatives
5
1
Loans with maturities of less than 1 year
1,311
646
Lease liabilities with maturities of less than 1 year
149
136
Accrued financial expenses 
26
10
 BS   Total 
1,789
1,056
Total financial liabilities
12,540
10,139
Fair value of financial liabilities1)
11,625
9,496
1)	The fair value of financial liabilities are recognized excluding lease liabilities.
Borrowing
Bond loans and bilateral loans 
SCA has a Medium Term Note (MTN) program with an amount of 
SEK 8,000m (8,000) for issuing bonds in the capital market. As of 
December 31, 2022, a nominal SEK 4,000m (4,000) was outstanding, 
of which green bonds accounted for SEK 1,500m (1,500). In addition 
to the bond loans, SCA has several long bilateral loans with strong and 
well-established banks at a nominal amount of SEK 7,921m (5,492). 
The average maturity of the loans was 3.8 (4.4) years. 
Green bonds
SCA’s green bonds were issued under the SCA Green Bond Frame-
work, which complies with the Green Bond Principles. The framework 
was reviewed by the independent party Cicero Shades of Green and 
received the highest possible ranking (Dark Green). The framework 
regulates that borrowing under the framework is earmarked for green 
investments. The criteria for when an investment can be classified as 
green are specified by the framework. SCA will report back to bond 
holders about the green investments every year. 
Issued
SEKm
Maturity, 
year
Carrying 
amount
Fair 
value
Bond – floating rate
2025
1,000
993
Bond – fixed rate
2025
300
272
Bond – fixed rate
2027
1,200
1,030
Bond – floating rate (Green)
2028
1,100
1,062
Bond – fixed rate (Green)
2028
400
335
Total
4,000
3,692
Bilateral loans
SEKm
Carrying 
amount
Fair 
value
Bilateral loans with maturities of less than 
1 year
1,311
1,099
Bilateral loans with maturities between 1 
and 5 years
1,480
1,698
Bilateral loans with maturities of more 
than 5 years
5,130
5,136
Total
7,921
7,933
Commercial paper program
SCA has a Swedish commercial paper program to the amount of  
SEK 5,000m (5,000), which can be utilized for short-term financing. 
At year-end, SEK 600m (-) was issued.
Program size
SEKm
 Issued
Commercial paper SEK 5,000m
600
Total
600
Group
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Changes in liabilities from financial activities
SEKm
OB 2022
 CF   Cash flow
Reclassification 
from current  
to non-current  
liabilities
Revaluation
Other
CB 2022
Current financial liabilities (excluding lease liabilities)
918
–81
798
-
-
1,635
Non-current financial liabilities (excluding lease liabilities)
8,584
2,516
–798
-
10
10,312
Lease liabilities
636
–183
-
48
87
588
Derivatives
1
-
-
4
-
5
Total liabilities from financing activities
10,139
2,252
-
52
97
12,540
SEKm
OB 2021
Cash flow
Reclassification 
from current  
to non-current  
liabilities
Revaluation
Other
CB 2021
Current financial liabilities (excluding lease liabilities)
1,185
–1,158
763
-
128
918
Non-current financial liabilities (excluding lease liabilities)
7,866
1,481
–763
-
-
8,584
Lease liabilities
751
–185
-
26
44
636
Derivatives
22
-
-
–21
-
1
Total liabilities from financing activities
9,824
138
0
5
172
10,139
SCA has a syndicated bank facility of SEK 5,000m (5,000) to limit the 
refinancing risk and maintain a liquidity reserve. Additionally, SCA has 
a bilateral export credit facility based on the purchasing agreement for 
the paper machine in Obbola, of which SEK 569m (1,957) is unutilized, 
and a bilateral credit facility from the European Investment Bank, of 
which SEK 2,227m (3,070) is unutilized. 
The syndicated facility was unutilized on December 31, 2022. SCA’s 
existing credit facility with the bank group is linked to two of the 
Group’s key sustainability targets related to climate benefit and nature 
conservation, read more about these targets on pages 141–143.
Credit facilities
Program size
Nominal SEKm
Maturity
Total SEKm
Utilized SEKm
Unutilized SEKm
Sustainability linked
Bilateral credit facility (EUR)
2,507
2023
2,507
1,938
569
Bilateral credit facility (EUR) 
3,340
2024
3,340
1,113
2,227
Syndicated credit facility
5,000
2026
5,000
5,000
Yes
Total
10,847
10,847
3,051
7,796
–3,500
–3,000
–2,500
–2,000
–1,500
–1,000
–500
0
2028+
2027
2026
2025
2024
2023
SEKm
Commercial paper
Bond loans
Other loans
Maturity profile of gross debt
After additions for net pension provisions and deductions for cash and 
cash equivalents, interest-bearing receivables and capital investment 
shares, net debt amounted to SEK 9,989m (7,752) at December 31, 
2022, refer to Note A2. For a description of the methods used by SCA 
to manage its refinancing risk, refer to page 69.
Group
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E6. DERIVATIVES AND HEDGE ACCOUNTING
 AP   ACCOUNTING PRINCIPLES
Accounting for derivatives used for hedging purposes 
All derivatives are initially and continuously recognized at fair value in 
the balance sheet. Gains and losses on remeasurement of derivatives 
used for hedging purposes are recognized as described below. When 
using hedge accounting, the relationship between the hedge instru-
ment and the hedged item is documented. Assessment of the effec-
tiveness of the hedge is also documented, both when the transaction 
is initially executed and on an ongoing basis. Hedge effectiveness is 
the extent to which the hedging instrument offsets changes in value 
in a hedged item’s fair value or cash flow. The ineffective portion is 
recognized directly in the income statement.
Cash flow hedges
Gains and losses on remeasurement of derivatives intended for cash 
flow hedging are recognized in equity under other comprehensive 
income and reversed to the income statement at the rate at which the 
hedged cash flow affects the income statement. If a hedge relation-
ship is interrupted and cash flow is still expected, the result is recog-
nized in equity under other comprehensive income until the cash flow 
affects the result. If the hedge pertains to a balance sheet item, the 
result is transferred from equity to the asset or liability to which the 
hedge relates when the value of the asset or liability is determined for 
the first time. For hedges of non-financial assets and liabilities, the 
result of the hedge is recognized at historical cost without a reclassifi-
cation adjustment and therefore does not affect other comprehensive 
income. In cases in which the forecast cash flow that forms the basis 
of the hedging transaction is no longer assessed as probable, the 
cumulative gain or loss that is recognized in equity under other com-
prehensive income is transferred directly to the income statement. 
Cash flow hedges relating to energy affect the energy costs, that is, 
cost of goods sold. Transaction exposure’s cash flow hedges affect 
consolidated net sales and expenses. Cash flow hedges relating to 
interest expenses affect net financial items.
When option contracts are used to hedge currency flows, the Group 
designates only the intrinsic value of the options as the hedging instru-
E5. LIQUIDITY RISK
The table below shows the Group’s liquidity risk regarding financial 
­liabilities (including interest payments), and negative cash flows from 
gross settled derivatives. For a description of how SCA manages its 
liquidity risk, refer to page 69.
Liquidity risk
SEKm
Less than  
1 year
Between  
1 and 5 
years
More  
than 5 
years
2022
Loans including interest
2,053
4,766
6,660
Lease liability including interest
174
309
338
Energy derivatives
212
65
-
Trade payables
1,808
1,814
-
Total
4,247
6,954
6,998
Gross settled derivatives1)
10,509
239
-
2021
Loans including interest
1,012
2,776
6,125
Lease liability including interest
160
376
289
Net settled derivatives
1
2
-
Energy derivatives
171
1
-
Trade payables
1,800
1,678
-
Total
3,144
4,833
6,414
Gross settled derivatives1)
7,988
348
-
1)	The gross settled derivatives have, largely, corresponding positive cash flows 
and therefore in SCA’s opinion do not constitute any real liquidity risk.
ment. Gains or losses relating to the effective portion of the options 
are recognized within other comprehensive income in the hedge 
reserve within equity. The changes in the time value of the options that 
relate to the hedged item are recognized within other comprehensive 
income in the costs of hedging reserve within equity. 
Financial hedges
When SCA conducts financial hedges and the transactions do not 
meet requirements for hedge accounting according to IFRS 9 Finan-
cial Instruments. Changes in fair value of the hedging instrument are 
recognized directly in the income statement.
Outstanding derivatives
SEKm
Currency
Interest
Energy
Total
2022
Nominal
10,959
1,807
210
12,976
Assets
113
80
542
735
Liability
277
-
277
554
2021
Nominal
8,469
1,900
70
10,439
Assets
11
6
187
204
Liability
188
-
172
360
Offsetting of outstanding derivatives
SEKm
Assets
Liabilities
December 31, 20221)
Gross amount
740
559
Offsettable amount
–5
–5
Net amount recognized in the balance sheet
735
554
ISDA agreements whose transactions are not 
offset in the balance sheet2)
–489
–489
Net after offsetting in accordance with ISDA 
agreements
246
65
December 31, 20211)
Gross amount
206
362
Offsettable amount
–2
–2
Net amount recognized in the balance sheet
204
360
ISDA agreements whose transactions are not 
offset in the balance sheet2)
–186
–186
Net after offsetting in accordance with ISDA 
agreements
18
174
1)	Outstanding derivatives gross without consideration of the right of set-off in 
accordance with ISDA agreements.
2)	ISDA entails framework agreements for financial transactions.
Balance sheet
SCA uses financial derivatives to manage risks in currency, interest 
rate and energy price. For a description of how SCA manages these 
risks, refer to the Board of Directors’ Report. The table above shows 
the derivatives that impacted the Group’s balance sheet on December 
31, 2022. For more information relating to derivatives in the balance 
sheet, refer to Note E1. 
Income statement
Hedges pertaining to transaction exposure had an impact of SEK 
–661m (177) on operating profit for the period. The net market value 
for these amounted to SEK –94m (–97) on the balance sheet date. Cur-
rency hedges decreased the cost of non-current assets by SEK –6m 
(66). The net market value for these amounted to SEK 5m (–40) on the 
balance sheet date. Interest rate derivatives impacted net interest 
items in an amount of SEK –80m (–8). The net market value for interest 
rate risk hedges amounted to SEK 2m (–6). 
Energy derivatives had an impact of SEK 137m (33) on operating profit 
for the period. Energy derivatives had an outstanding market value of 
Group
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Outstanding derivatives with hedge accounting1)
SEKm
Asset
Liability
Net
Tax
Hedge reserve 
after tax
2022
Derivatives with hedge accounting in hedge reserve
Cash flow hedges:
Energy risk
458
228
230
–47
183
Currency risk
89
178
–89
18
–71
Interest rate risk
80
-
80
–16
64
Total
627
406
221
–45
176
2021
Derivatives with hedge accounting in hedge reserve
Cash flow hedges:
Energy risk
25
–1
24
–5
19
Currency risk
1
–139
–138
28
–110
Interest rate risk
6
-
6
–1
5
Total
32
–140
–108
22
–86
1)	Outstanding derivatives with hedge accounting are included in the table Outstanding derivatives on page 121.
The results from fair value hedges are recognized directly in the 
income statement.
Hedge reserve in equity
Currency derivatives relating to hedging of transaction exposure 
mature mainly in 2023 and during the first quarter of 2024. With 
unchanged exchange rates, profit after tax will be affected in an 
amount of SEK –74m (–77). Currency derivatives relating to hedging 
of the cost of non-current assets have a maturity spread until 2024. 
With unchanged exchange rates, the cost of non-current assets 
will decrease by SEK –4m (32) after tax. 
The derivatives intended to hedge energy costs in the Group mature 
during 2023 and 2024. With unchanged prices, the Group’s profit after 
tax will be affected in an amount of SEK −182m (−19) after tax.
E7. FINANCIAL INCOME AND EXPENSES
Financial income and expenses1)
SEKm
2022
2021
Results from shares and participations in other 
companies
Dividend
0
-
Interest income and similar profit items
Interest income, investments
22
9
Other financial income
43
34
 IS   Total financial income
65
43
Interest expenses and similar loss items
Interest expenses, borrowing2)
–2
–46
Interest expenses, derivatives
–42
–34
Interest expenses, leases
–24
–25
Other financial expenses
–36
–45
 IS   Total financial expenses
–104
–150
Total
–39
–107
1)	Other financial income and expenses include an exchange difference of SEK 1m (1).
2)	Capitalized interest has reduced interest expenses by SEK 162m (57). 
Sensitivity analysis
If interest rate levels had been 1 percentage point higher, with un- 
changed fixed-interest terms and net debt, interest expenses for the 
period would have been SEK 71m (44) higher. A sensitivity analysis has 
been performed on the risk to which SCA was exposed at December 31, 
2022 using assumptions on market movements that are regarded as 
reasonable in one year’s time. For a description of how SCA manages 
its interest rate risk, refer to page 69.
SEK 265m (15) on the balance sheet date. For further information 
relating to net financial items, refer to Note E7. 
Sensitivity analysis
SCA has performed sensitivity analysis calculations on the financial 
instruments’ risk at December 31, 2022 using assumptions on market 
movements that are regarded as reasonably possible in one year’s 
time. If the Swedish krona is unilaterally weakened/strengthened by 
5% against all currencies, outstanding financial hedges, trade pay-
ables and trade receivables would decrease/increase profit before 
tax by SEK 391m (318). Financial hedges with maturities of more than 
one year would increase/decrease equity by SEK 11m (12).
For forward cover relating to the cost of non-current assets, a 5% 
increase in the strength of the Swedish krona would entail a decrease 
in equity of SEK 9m (13). Conversely, a weakening of the Swedish krona 
of 5% would entail an increase in equity of SEK 9m (13). For hedge 
options relating to the cost of non-current assets, a 5% increase in 
the strength of the Swedish krona would entail a decrease in equity 
of SEK 6m (17) and, conversely, a weakening of the Swedish krona of 
5% would increase equity by SEK 7m (19).
If energy prices increase/decrease by 20%, outstanding financial 
hedges relating to electricity, everything else being equal, would 
decrease/increase energy costs for the period by SEK 46m (10). In 
addition to the earnings impact, equity would increase/decrease by 
SEK 40m (3). However, the total energy cost for the Group would have 
been affected differently if the price risk related to supply contracts 
was taken into account.
Group
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E8. EQUITY
 AP   ACCOUNTING PRINCIPLES
Transaction costs directly relating to the issue of new shares or 
options are recognized, net after tax, in equity as a reduction in the 
issue proceeds. Expenditure for the purchase of SCA’s own shares 
reduces retained earnings in equity in the Parent Company and the 
portion of consolidated equity that pertains to owners of the Parent. 
When own shares are sold, the sales proceeds are included in 
retained earnings in the equity pertaining to owners of the Parent.
Equity totaled SEK 96,358m (83,055) at December 31, 2022. The following tables show the distribution and profit for the period.
Equity attributable to owners of the Parent
SEKm
Share 
capital
Other 
­capital 
­provided
Reserves1)
Retained 
earnings
Total
Non-­
controlling 
interests
Total 
equity
Value January 1, 2022
2,350
6,830
23,161
50,714
83,055
-
83,055
 IS   Profit for the period recognized in the income 
statement
-
-
-
6,748
6,748
73
6,821
Other comprehensive income for the period
Items that cannot be transferred to profit for the period
Change of value land assets
-
-
10,398
-
10,398
-
10,398
Revaluation of defined benefit pension plans2)
-
-
-
394
394
-
394
Income tax attributable to components in other  
comprehensive income
-
-
–2,154
–81
–2,235
-
–2,235
Total
-
-
8,244
313
8,557
-
8,557
Items that have been or may be reclassified  
subsequently to the income statement
Cash flow hedges:
Result from revaluation of derivatives recognized  
in equity
-
-
–176
-
–176
-
–176
Transferred to the income statement for the period
-
-
523
-
523
-
523
Hedge cost
-
-
–13
-
–13
-
–13
Translation differences in foreign operations
-
-
177
-
177
-
177
Tax on items recognized directly in/transferred  
from equity3)
-
-
–78
-
–78
-
–78
Other comprehensive income for the period, 
net after tax
-
-
8,677
313
8,990
-
8,990
 OCI   Comprehensive income for the period
-
-
8,677
7,061
15,738
73
15,811
Cash flow hedge, transferred to  
cost of hedged investments
-
-
–6
-
–6
-
–6
Tax on cash flow hedge, transferred to cost
-
-
1
-
1
-
1
Acquisition of non-controlling interests
-
-
-
–148
–148
–73
–221
Revaluation effect upon acquisition  
of non-controlling interests
-
-
-
0
0
-
0
Dividend4)
-
-
-
–2,282
–2,282
-
–2,282
 BS   Value December 31, 2022
2,350
6,830
31,833
55,345
96,358
-
96,358
1)	Revaluation reserve, hedge reserve, hedging cost and translation reserve are included in the reserves line in the balance sheet, see specification on page 125.
2)	Including special payroll tax.
3)	For a specification of income tax attributable to components in other comprehensive income, see page 125.
4)	Dividend of SEK 3.25 per share (regular dividend of SEK 2.25, extra dividend of SEK 1.00) pertains to owners of the Parent. For the 2022 fiscal year, the Board has 
decided to propose a dividend of SEK 2.50 per share to the Annual General Meeting. 
For further information regarding equity, see Parent Company Note PC13.
Group
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Equity attributable to owners of the Parent
SEKm
Share 
capital
Other 
­capital 
­provided
Reserves1)
Retained 
earnings
Total
Non-­
controlling 
interests
Total 
equity
Value January 1, 2021
2,350
6,830
17,320
45,663
72,163
-
72,163
 IS   Profit for the period recognized in the income 
statement
-
-
-
5,941
5,941
160
6,101
Other comprehensive income for the period
Items that cannot be transferred to profit for the period
Change of value land assets
-
-
7,479
-
7,479
-
7,479
Revaluation of defined benefit pension plans2)
-
-
-
448
448
-
448
Income tax attributable to components in other  
comprehensive income
-
-
–1,539
–92
–1,631
-
–1,631
Total
-
-
5,940
356
6,296
-
6,296
Items that have been or may be reclassified  
subsequently to the income statement
Cash flow hedges:
Result from revaluation of derivatives recognized  
in equity
-
-
–8
-
–8
-
–8
Transferred to the income statement for the period
-
-
–202
-
–202
-
–202
Hedge cost
-
-
–21
-
–21
-
–21
Translation differences in foreign operations
-
-
32
-
32
-
32
Tax on items recognized directly in/transferred  
from equity3)
-
-
48
-
48
-
48
Other comprehensive income for the period,  
net after tax
-
-
5,789
356
6,145
-
6,145
 OCI   Comprehensive income for the period
-
-
5,789
6,297
12,086
160
12,246
Cash flow hedge, transferred to  
cost of hedged investments
-
-
66
-
66
-
66
Tax on cash flow hedge, transferred to cost
-
-
–14
-
–14
-
–14
Acquisition of non-controlling interests
-
-
-
160
160
–160
-
Revaluation effect upon acquisition  
of non-controlling interests
-
-
-
–1
–1
-
–1
Dividend4)
-
-
-
–1,405
–1,405
-
–1,405
 BS   Value December 31, 2021
2,350
6,830
23,161
50,714
83,055
-
83,055
1)	Revaluation reserve, hedge reserve, hedging cost and translation reserve are included in the reserves line in the balance sheet, see specification on page 125.
2)	Including special payroll tax.
3)	For a specification of income tax attributable to components in other comprehensive income, see page 125.
4)	Dividend SEK 2.00 per share pertains to owners of the Parent for the 2020 fiscal year. For the 2021 fiscal year, the Board has decided to propose a dividend of SEK 
3.25 per share to the Annual General Meeting. 
For further information regarding equity, see Parent Company Note PC13.
Group
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Equity, specification of reserves
Revaluation reserve
Hedge reserve1)
Translation reserve
SEKm
2022
2021
2022
2021
2022
2021
Value January 1
23,576
17,636
–85
46
–330
–362
Revaluation of land assets
10,398
7,479
-
-
-
-
Cash flow hedges:
Result from revaluation of derivatives recognized in equity
-
-
–176
–8
-
-
Transferred to the income statement for the period
-
-
523
–202
-
-
Hedge cost
-
-
–13
–21
-
-
Translation differences in foreign operations
-
-
-
-
177
32
Tax on items recognized directly in/transferred from equity
–2,154
–1,539
–78
48
-
Other comprehensive income for the period, net after tax
8,244
5,940
256
–183
177
32
Cash flow hedge, transferred to cost of hedged investments
-
-
–6
66
-
-
Tax on cash flow hedge, transferred to cost
-
-
1
–14
-
-
Value December 31
31,820
23,576
166
–85
–153
–330
1)	See also Note E6 for details of when profit or loss is expected to be recognized.
Specification of income tax attributable to other comprehensive income for the period
2022
2021
SEKm
Before tax
Tax effect
After tax
Before tax
Tax effect
After tax
Revaluation of defined benefit pension plans
394
–81
313
448
–92
356
Cash flow hedges
347
–78
269
–210
48
–162
Hedge cost
–13
-
–13
–21
-
–21
Translation differences in foreign operations
177
-
177
32
-
32
Revaluation of land assets
10,398
–2,154
8,244
7,479
–1,539
5,940
Other comprehensive income for the period
11,303
–2,313
8,990
7,728
–1,583
6,145
At December 31, 2022, the debt/equity ratio amounted to 10% (9). Change in liabilities and equity is described on page 63 under Financial posi-
tion. SCA aims to establish an effective capital structure, while at the same time ensuring long-term access to loan financing. Cash flow in relation 
to net debt shall take into account the target to maintain a credit rating corresponding to investment grade rating. SCA has a credit rating for long-
term debt of BBB from Standard & Poor’s. SCA’s financial risk management is described in the Risk and risk management section on page 69.
Group
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F1. SUBSIDIARIES
 AP   ACCOUNTING PRINCIPLES
Subsidiaries
The companies over which the SCA Group has a controlling influence 
are consolidated as subsidiaries. Controlling influence means that 
SCA has sufficient influence to control the activities of the subsidiary, 
has the right to its returns, has control over its exposure, and is able to 
impact the return of the company through its influence. Most of the 
Group’s subsidiaries are wholly owned. 
Gällö Timber AB is 50% owned by SCA and 50% owned by AB 
Persson Invest. SCA is considered to have a controlling influence over 
Gällö Timber AB, despite the fact that SCA does not have a majority of 
the votes in the company. SCA is deemed to have a controlling influ-
ence since it has control over activities with an impact on the Gällö 
Timber AB’s return, and the SCA Group thus consolidates 100% per-
cent of the company. Gällö Timber AB manages forest and sells  
solid-wood products. Sales amounted to SEK 1,382m (1,431). The 
company has paid a dividend totaling SEK 200m (60), of which 100 
(30) to SCA. SCA is entitled under option contracts to purchase the 
remaining shares in the company, whereby SCA has recognized an 
option liability in the balance sheet and does not recognize any 
non-controlling interest in equity. In 2022, a review was performed of 
the valuation of the option liability and the effects were recognized in 
equity. 
Non-controlling interests
Non-controlling interests are recognized as a separate item in the 
Group’s equity. Profit or loss and every component of other com­
prehensive income are attributable to the owners of the Parent and 
to non-controlling interests. Losses attributable to non-controlling 
interests are recognized even if this results in a negative balance for 
the interest. In connection with acquisitions of less than 100%, non-­­
controlling interests are determined either as a proportional share of 
the fair value of identifiable net assets excluding goodwill or at fair 
value. Subsequent acquisitions up to 100% and divestments of 
­participations in a subsidiary that do not lead to a loss of controlling 
influence are recognized as an equity transaction. 
F. GROUP STRUCTURE
List of major subsidiaries
The Group’s participations in major subsidiaries at December 31, 2022. The table below shows wholly owned subsidiaries and subsidiaries with 
significant interests and controlling influence, with external sales in excess of SEK 100m in 2022. 
Company name 
Corp. Reg. No.
Domicile
Share of equity at 
December 31, 2022
Share of equity at 
December 31, 2021
SCA Massa AB	
556093-6733
Sundsvall, Sweden
100
100
SCA Munksund AB
556237-4859
Piteå, Sweden
100
100
SCA Obbola AB
556147-1003
Umeå, Sweden
100
100
SCA Wood AB
556047-8512
Sundsvall, Sweden
100
100
SCA Wood Hong Kong Ltd
1134245
Hong Kong, China
100
100
SCA Wood Scandinavia AB
556302-0667
Sundsvall, Sweden
100
100
SCA Products (UK) Ltd
1549728
Essex, United Kingdom
100
100
Gällö Timber AB
556801-1786
Bräcke, Sweden
50
50
SCA Logistics GmbH, Germany, is included in SCA’s consolidated financial accounts and uses the simplifications in Section 264 (3) HGB  
(Handelsgesetzbuch).
F2. ASSOCIATED COMPANIES AND JOINT VENTURES
 AP   ACCOUNTING PRINCIPLES
Accounting for associated companies and joint ventures is carried out 
according to the equity method and they are initially measured at cost. 
Valuation of acquired assets and liabilities is performed in the same 
manner as for subsidiaries and is recognized including any goodwill 
and other Group adjustments.
The Group’s share of profit after tax arising in associated companies 
and joint ventures after the acquisition is recognized on the line 
“Result from participations in associated companies and joint ven-
tures” in the consolidated income statement. Share in profits is calcu-
lated on the basis of SCA’s share of equity in the respective company.
Associated companies
Associated companies are companies in which the Group exercises a 
significant influence without the partly owned company being a sub-
sidiary. Normally, this means that the Group owns between 20 and 
50% of the votes. 
Joint ventures
Joint ventures are companies in which SCA, together with other par-
ties through an agreement, has shared control over operations. A joint 
venture entitles the joint owners to the net assets of the investment. 
Group
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Shares in associated companies and joint ventures
Associated companies
Joint ventures
SEKm
2022
2021
2022
2021
Value January 1
428
378
-
-
Investments
2
-
730
-
Divestments
-
–1
-
-
Reclassification
-
-
18
-
 IS   Net change
–18
71
–5
-
Dividends received
–56
–8
-
-
Translation differences
7
–12
-
-
 BS   Value December 31
363
428
743
-
Share of equity, %
Carrying amount, 
SEKm
Company name 
Corp. Reg. No.
Domicile
2022
2021
2022
2021
Associated companies
Florencia S.A.S.
809,910,177
Rennes, France
38.5
38.5
336
408
Other
27
20
 BS   Total
363
428
Joint ventures
Biorefinery Östrand AB1)
559111-7956
Sundsvall, Sweden
50
-
84
-
Scastone AB
559337-8788
Sundbyberg, Sweden
50
-
659
-
 BS   Total
743
-
1)	The company was a subsidiary in 2021.
Group
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F3. CORPORATE ACQUISITIONS AND DIVESTMENTS
 AP   ACCOUNTING PRINCIPLES
Acquisition of subsidiaries
SCA applies IFRS 3 Business Combinations in connection with acqui-
sitions. A corporate acquisition can be classified as a business combi-
nation or an asset acquisition. If the acquired assets are not part of 
a business, the transaction is recognized as an asset acquisition. 
A corporate acquisition with the primary purpose of acquiring the 
company’s properties and where any of the company’s management 
organization and administration are of secondary importance for the 
acquisition, is classified as an asset acquisition. For an asset acquisi-
tion, no deferred tax is recognized attributable to the acquisition. 
In business combinations, acquired assets and assumed liabilities are 
identified and classified at fair value on the date of acquisition (also 
known as an acquisition analysis). The date of acquisition is set at 
when controlling influence is obtained over the acquired company. 
The acquisition analysis also includes the identification of whether 
there are any assets that are intangible in nature, such as trademarks, 
patents, customer contracts or similar assets that were not recog-
nized in the acquired unit. If the cost is higher than the net value of the 
acquired assets, assumed liabilities and identified intangible assets, 
the difference is recognized as goodwill. Any surplus value on tangible 
fixed assets is depreciated over the estimated useful life of the asset. 
Goodwill and strong trademarks with indefinite useful lives are not 
amortized; instead, they are subjected to annual impairment testing. 
Some trademarks and customer contracts are amortized over their 
estimated useful lives. 
If the transferred consideration is contingent on future events, it is 
measured at fair value. Any change in value is recognized in profit or 
loss for the period.
Transaction costs in conjunction with business combinations are not 
included in cost, but rather expensed directly. 
Companies acquired during the period are included in the consoli-
dated financial statements as of the acquisition date. Divested compa-
nies are included in the consolidated financial statements until the 
divestment date. 
Non-controlling interests
Acquisitions of non-controlling interests are measured on an acquisi-
tion-by-acquisition basis, either as a proportional share of the fair 
value of identifiable net assets excluding goodwill (partial goodwill) 
or at fair value. This means that goodwill is also recognized on non-­
controlling interests (full goodwill).
In step acquisitions in which a controlling influence is achieved, any 
net assets acquired earlier in the acquired units are revaluated at fair 
value and the result of the revaluation is recognized in the income 
statement. If the controlling influence is lost upon the divestment of 
an operation, the result is recognized in the income statement. 
The portion of the divested operation that remains in the Group is 
measured at fair value on the divestment date, with the revaluation 
effect recognized in the income statement. 
Acquisitions in which a controlling influence is achieved are recog-
nized as an equity transaction, meaning a transfer between equity 
attributable to owners of the Parent and non-controlling interests. 
The same applies for divestments that take place without the loss 
of a controlling influence.
Acquisitions
In 2022, approximately 8,000 hectares of forest land was acquired in 
the Baltic region through four transactions for a purchase consider-
ation of about SEK 550m on a debt-free basis. The corresponding 
figure for 2021 was SEK 14m, relating to approximately 520 hectares 
of forest land in Latvia. 
In 2022, Skogberget Vind AB, was acquired for approximately SEK 
800m. Skogberget Vind AB primarily has assets associated with wind 
farm operations in Markbygden, Piteå Municipality.
All of the acquisitions were recognized as asset acquisitions. 
Divestments
In 2022, 50% of the shares in Biorefinery Östrand AB were divested. 
No companies were divested in 2021. 
Group
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G1. NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS
 AP   ACCOUNTING PRINCIPLES
Non-current assets held for sale 
Assets are classified as held for sale if their value, within one year, will 
be recovered through a sale and not through continued use in the 
operations. On the reclassification date, the assets and liabilities are 
measured at the lower of fair value minus selling costs and the car-
rying amount. The assets are no longer depreciated after reclassifica-
tion. The gain is limited to the amount equivalent to previously made 
impairment charges. Gains and losses recognized on remeasurement 
and divestment are recognized in the income statement. 
Similar to 2021, there were no non-current assets held for sale in 2022.
G. OTHER
G2. CONTINGENT LIABILITIES, PLEDGED ASSETS AND COMMITMENTS
 AP   ACCOUNTING PRINCIPLES
A contingent liability is recognized when there is a potential or actual 
obligation arising from events that have occurred that is not recog-
nized as a liability or provision, either because it is improbable that 
an outflow of resources will be required to settle the obligation or 
because the amount cannot be calculated in a reliable manner.
Contingent liabilities
SEKm
2022
2021
Guarantees for:
associated companies
5
5
customers and others
28
28
Other contingent liabilities
19
15
Total
52
48
In 2007, SCA entered into a sale and leaseback transaction with a 
European bank relating to the soda recovery boiler at the kraftliner 
plant in Obbola, Sweden. The term of the contract is 25 years and SCA 
has a right to terminate the transaction in 2023 without any financial 
consequences. SCA has all risks and rewards associated with owner-
ship both before and after completion and therefore recognizes the 
soda recovery boiler as a non-current asset on the balance sheet 
date. Upon completion, the outstanding contingent liabilities will be 
offset against rental payment commitments. 
Pledged assets
Liabilities for which assets were pledged as collateral amounted to 
SEK 11m (-). SCA holds no chattel mortgages. 
Commitments
SCA has a decided investment in Obbola totaling SEK 7,500m over a 
five-year period. As of December 31, 2022, SEK 717m remained, of 
which SEK 411m was a contracted commitment. The commitment in 
its entirety refers to non-current assets. 
Pledged guarantees
As of December 31, 2022, SCA’s pledged guarantees pertaining to  
forestry machines to subcontractors amounted to SEK 329m (328). In 
SCA’s opinion, the pledged guarantees pose an insignificant risk and 
the value has therefore not been recognized as a contingent liability.
G3. TRANSACTIONS WITH RELATED PARTIES
To the extent that transactions with related parties took place, these 
were based on generally accepted commercial terms and conditions 
and pricing in the industry, and were entered into on standard  
commercial conditions. 
For information regarding salaries and other remuneration, costs and 
obligations for pensions and similar benefits for the Board of Direc-
tors, President and CEO and other senior executives, refer to Notes 
C3–C5.
Otherwise, no transactions took place between SCA and related  
parties.
G4. EVENTS AFTER THE END OF THE REPORTING PERIOD
As of January 1, 2023, Renewable Energy is a new reporting segment. 
The decision is in line with SCA’s expressed ambition to expand and 
realize business opportunities in the field of energy. The Renewable 
Energy segment will encompass production and sales of processed 
and unprocessed biofuels as well as liquid biofuels. The segment also 
includes development and revenue linked to the wind power opera-
tions and sales of green products from industrial operations for energy 
production.
Group
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SEKm
Note
2022
2021
Operating income
Other operating income
292
291
Total income
292
291
Operating expenses
Other operating expenses
PC1
–186
–188
Personnel costs
PC2
–119
–122
Depreciation
–94
–91
Total operating expenses
–399
–401
Operating loss
–107
–110
Financial items
PC11
Interest income and similar profit items
306
207
Interest expenses and similar loss items
–130
–117
Total financial items
176
90
Profit/loss after financial items
69
–20
Appropriations
PC5
3,482
3,238
Profit before tax
3,551
3,218
Income tax
PC6
–734
–664
Profit for the year
2,817
2,554
SEKm
2022
2021
Profit for the year
2,817
2,554
Other comprehensive income
-
-
Total comprehensive income
2,817
2,554
Parent Company income statement   PIS 
Parent Company statement of comprehensive income   POCI 
Parent Company
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SEKm
Share capital1) Revaluation reserve
Statutory reserve
Retained earnings 
and profit  
for the period
Total equity
Value January 1, 2022
2,350
1,740
7,283
10,131
21,504
Dividend, SEK 3.25 per share
-
-
-
–2,282
–2,282
Profit for the year
-
-
-
2,817
2,817
Value December 31, 2022
2,350
1,740
7,283
10,666
22,039
Value January 1, 2021
2,350
1,740
7,283
8,981
20,354
Dividend, SEK 2.00 per share
-
-
-
–1,404
–1,404
Profit for the year
-
-
-
2,554
2,554
Value December 31, 2021
2,350
1,740
7,283
10,131
21,504
1)	Refer also to Note PC13.
Parent Company statement of change in equity   PEQ 
Parent Company
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SEKm
Note
2022
2021
ASSETS
Non-current assets
Land and buildings
PC7
9,072
8,857
Tangible fixed assets
9,072
8,857
Participations in Group companies
PC8
9,604
9,604
Receivables from subsidiaries
2,057
11
Other long-term receivables
301
36
Financial fixed assets
11,962
9,651
Total non-current assets
21,034
18,508
Current assets
Receivables from subsidiaries
PC9
16,285
14,679
Current tax assets
PC6
0
0
Other current receivables
PC10
614
339
Cash and bank balances
PC11
322
602
Total current assets
17,221
15,620
Total assets
38,255
34,128
EQUITY, PROVISIONS AND LIABILITIES
Equity
Share capital
PC13
2,350
2,350
Revaluation reserve
1,740
1,740
Statutory reserve
7,283
7,283
Total restricted equity
11,373
11,373
Retained earnings
7,849
7,577
Profit for the year
2,817
2,554
Total non-restricted equity
10,666
10,131
Total equity
22,039
21,504
Provisions
Provisions for pensions
PC4
76
59
Provisions for taxes
PC6
1,634
1,586
Total provisions
1,710
1,645
Non-current liabilities
Non-current interest-bearing liabilities
PC11
10,312
8,582
Other non-current liabilities
241
12
Total non-current liabilities
10,553
8,594
Current liabilities
Current interest-bearing liabilities
PC11
1,395
764
Liabilities to subsidiaries
PC9
1,857
1,033
Trade payables
1
1
Current tax liabilities
PC6
124
171
Other current liabilities
PC12
576
416
Total current liabilities
3,953
2,385
Total equity, provisions and liabilities
38,255
34,128
Parent Company balance sheet   PBS 
Parent Company
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SEKm
Note
2022
2021
Operating activities
Profit after financial items 
69
–20
 TPC:1   Adjustment for non-cash items
–22
50
47
30
Paid tax
PC6
–733
–462
Cash flow from operating activities before changes in working capital
–686
–432
Change in operating receivables
–1,880
–1,816
Change in operating liabilities
1,212
–210
Cash flow from operating activities
–1,354
–2,458
Investing activities
Acquisition of fixed assets
PC7
–324
–234
Acquisition of financial assets
–2,312
-
Divestment of financial assets
0
39
Divestment of tangible fixed assets
148
58
Cash flow from investing activities
–2,488
–137
Financing activities
Loans raised
3,125
1,500
Amortization of debt
–763
–1,200
Dividend
–2,282
–1,404
Group contributions
PC5
3,482
3,238
Cash flow from financing activities
3,562
2,134
Cash flow for the period
–280
–461
Cash and cash equivalents, January 1
602
1,063
Cash and cash equivalents, December 31
322
602
 TPC:1   Adjustment for non-cash items
SEKm
2022
2021
Depreciation of fixed assets
95
91
Capital gain on divestment of fixed assets
–133
–49
Unrealized exchange rate effects/changes in value of receivables and financial assets
0
–22
Change in provisions 
17
34
Other items
–1
–4
Total
–22
50
Supplementary disclosures to cash flow
SEKm
2022
2021
Interest paid and received
Interest paid
–177
–97
Interest received
306
207
Total
129
110
Parent Company cash flow statement   PCF 
Parent Company
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PC. PARENT COMPANY NOTES
PC1. OTHER OPERATING EXPENSES
Auditing expenses
SEKm
2022
2021
EY
Audit assignments
–4
–4
Auditing activities other than the audit assignment
–1
-
Total
–5
–4
PC2. PERSONNEL AND BOARD COSTS
Personnel and Board costs
SEKm
2022
2021
Salaries and remuneration
–78
–76
of which Executive Management
–69
–68
of which Board
–9
–8
Pension costs1)
–13
–15
Other social security costs
–27
–29
Other personnel costs
–1
–2
Total
–119
–122
1)	The Parent Company’s pension costs pertain entirely to the President and CEO 
and other senior executives. Pension costs for 2022 are SEK 1m lower than 
stated in Note C3 due to an decrease in the value of the current pension liability 
to the President and CEO and other senior executives. The corresponding 
amount for 2021 is SEK 2m higher than stated in Note C3 due to an increase in 
the value of the current pension liability.
PC3. PERSONNEL DATA
Average number of employees
2022
2021
Average number of employees
12
12
of whom men
9
9
of whom women
3
3
PC4. PROVISIONS FOR PENSIONS
 AP   ACCOUNTING PRINCIPLES
The Parent Company’s provisions for pensions are secured by the 
Pension Obligations Vesting Act (Tryggandelagen) and through capital 
insurance policies. The main difference between the rules of the Pen-
sion Obligations Vesting Act and IAS 19 Employee Benefits in respect 
of pensions is that Swedish practice disregards future increases in 
salaries and pensions when calculating the present value of the pen-
sion obligation. Both defined contribution and defined benefit plans 
exist in the Parent Company.
 
Capital value of pension obligations relating to self-
administered pension plans
SEKm
2022
2021
Provisions in accordance with the Pension Obliga-
tions Vesting Act
32
33
Provisions outside the Pension Obligations 
Vesting Act’s regulations1)
44
26
 PBS   Total
76
59
1)	As of 2021, a provision for pension tax linked to the direct pension liability is 
also recognized as a provision for pensions.
Of the total pension liability on the balance sheet date of SEK 76m, 
SEK 44m (26) is a direct pension liability, including payroll tax, secured 
through capital insurance policies. The direct pension liability is not 
secured in accordance with the Pension Obligations Vesting Act. The 
capital insurance policies are reported as other long-term receivables 
in the balance sheet. For the remainder of the pension liability, external 
actuaries have carried out capital value calculations pursuant to the 
provisions of the Pension Obligations Vesting Act. The discount rate 
is 4.08% (1.54). 
The company’s outstanding pension obligations as per the balance 
sheet on December 31, 2022 relate to the President and CEO and 
other senior executives.
For further information on the Parent Company’s pension plans, 
see Note C3.
PC5. APPROPRIATIONS
 AP   ACCOUNTING PRINCIPLES
For Group contributions, the Parent Company applies the alternative 
rule of RFR 2 Reporting by Legal Entities and recognizes Group contri-
butions paid and received, net, as appropriations. 
Appropriations
SEKm
2022
2021
Group contributions received from subsidiaries
4,596
3,796
Group contributions paid to subsidiaries
–1,114
–558
 PIS   Total
3,482
3,238
Parent Company
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PC6. TAXES
 AP   ACCOUNTING PRINCIPLES
Tax pooling in the Group is carried out via Group contributions paid 
and received. For Group contributions, the Parent Company applies 
the alternative rule of RFR 2 and recognizes Group contributions paid 
and received, net, as appropriations. 
The Parent Company recognizes the majority of the Group’s Swedish 
taxes. The   TPC6:1   table calculates the expected tax expense based 
on profit before tax multiplied by the current tax rate.
PC7. TANGIBLE FIXED ASSETS
 AP   ACCOUNTING PRINCIPLES
The Parent Company’s tangible fixed assets are recognized in accor-
dance with the Group’s accounting principles. However, the Parent 
Company recognizes standing timber as a tangible fixed asset at his-
torical cost. No systematic depreciation or changes in value in con-
junction with felling is carried out in the Parent Company. Collective 
revaluation of forest assets has occurred. The revaluation amount was 
placed in the revaluation reserve in equity.
In the consolidated accounts, forest assets are recognized at fair 
value and are divided into standing timber and land assets. Standing 
timber is recognized as a biological asset according to IAS 41 Agricul-
ture, and land assets attributable to forest assets are recognized as 
tangible fixed assets at fair value according to paragraph 31 in IAS 16 
Property, plant and equipment. For further information, refer to 
Note D2.
Tax expense (+), tax income (–)
SEKm
2022
2021
 TPC6:2   Deferred tax
48
26
Current tax
686
638
 PIS   Total
734
664
 TPC6:1   Explanation of tax expense
2022
2021
Reconciliation
SEKm
%
SEKm
%
 PIS   Profit before tax
3,551
3,218
 PIS   Tax expense/income
686
19.3
638
19.8
Expected tax
732
20.6
663
20.6
Difference
–46
–1.3
–25
–0.8
The difference is due to:
Taxes related to prior periods
-
-
-
-
Other items
–46
–1.3
–25
–0.8
Total
–46
–1.3
–25
–0.8
Current tax liability (+), tax asset (–)
SEKm
2022
2021
Value January 1
171
–5
Current tax expense
686
638
Paid tax
–733
–462
 PBS   Value December 31
124
171
 TPC6:2   Deferred tax expense (+), tax income (–)
SEKm
2022
2021
Changes in temporary differences
48
26
Total
48
26
Provisions for taxes
SEKm
Value  
January 1
Deferred tax 
expense
Value 
December 31
Land and buildings
1,597
35
1,632
Provisions for pensions1)
–12
–4
–16
Other
1
17
18
 PBS   Total
1,586
48
1,634
1)	As of 2021, a provision for pension tax linked to the direct pension liability is 
recognized as a provision for pensions. 
Tangible fixed assets
Buildings
Land and land 
improvements1)
Machinery and 
­equipment
Total
SEKm
2022
2021
2022
2021
2022
2021
2022
2021
Accumulated cost
178
178
5,066
4,741
1
3
5,245
4,922
Accumulated depreciation
–134
–129
–1,450
–1,360
–1
–3
–1,585
–1,492
Accumulated write-ups
-
5,412
5,427
-
-
5,412
5,427
Residual value according to plan
44
49
9,028
8,808
-
-
9,072
8,857
Value January 1
49
50
8,808
8,673
-
-
8,857
8,723
Investments
-
5
324
229
-
-
324
234
Disposals
0
-
–15
–9
-
-
–15
–9
Depreciation for the period
–5
–6
–89
–85
-
-
–94
–91
 PBS   Value December 31
44
49
9,028
8,808
-
-
9,072
8,857
1)	Land and land improvements include the carrying amount of SEK 8,016m (7,827) for forest assets.
Parent Company
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PC8. PARTICIPATIONS IN GROUP COMPANIES
 AP   ACCOUNTING PRINCIPLES
The Parent Company recognizes all holdings in Group companies 
at cost after deduction for any accumulated impairment losses. 
An assessment is carried out on an annual basis to determine if any 
impairment is needed in the item Participations in Group companies. 
The need for impairment is determined individually and impairment is 
effected if the value decrease is considered permanent. Impairment is 
recognized in the item result from participations in Group companies.
Impairment testing 
Testing means the carrying amount of shares in subsidiaries is com-
pared with consolidated equity. The annual impairment testing of the 
carrying amount of shares in subsidiaries has not resulted in any 
impairment.
Participations in Group companies
SEKm
2022
2021
Accumulated cost
9,604
9,604
Carrying amount
9,604
9,604
Value January 1
9,604
9,604
Investments
-
-
 PBS    TPC8:1   Value December 31
9,604
9,604
 TPC8:1   Parent Company’s holdings of shares in subsidiaries, December 31, 2022
Company name
Corp. Reg. No.
Domicile
No. of  
shares
Share of 
equity, %
Carrying 
amount, SEKm
Swedish subsidiaries
SCA Graphic Holding AB
556479-2058
Sundsvall, Sweden
1,000
100
9,604
SCA Skogsfastigheter AB
556207-6256
Sundsvall, Sweden
1,000
100
0
SCA Kraftfastigheter AB
556449-7237
Sundsvall, Sweden
1,000
100
0
Total carrying amount of subsidiaries
9,604
PC9. RECEIVABLES FROM AND LIABILITIES TO 
­SUBSIDIARIES
Receivables from and liabilities to subsidiaries
SEKm
2022
2021
Current assets
Interest-bearing receivables
11,183
10,504
Other receivables
5,102
4,175
 PBS   Total
16,285
14,679
Current liabilities
Interest-bearing liabilities
249
244
Other liabilities
1,608
789
 PBS   Total
1,857
1,033
PC10. OTHER CURRENT RECEIVABLES
Other current receivables
SEKm
2022
2021
 TPC10:1   Prepaid expenses and accrued income
105
118
Other receivables
509
221
 PBS   Total
614
339
 TPC10:1   Prepaid expenses and accrued income
SEKm
2022
2021
Prepaid financial expenses
103
116
Other items
2
2
Total
105
118
Parent Company
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PC11. FINANCIAL INSTRUMENTS
 AP   ACCOUNTING PRINCIPLES
Financial assets and liabilities are recognized at amortized cost, 
with the exception of derivatives, which are measured at fair value.
The accounting principles for financial instruments in the Parent Com-
pany are in accordance with the Group’s accounting principles except 
that hedge accounting is not applied, see Note E1. Financial instru-
ments are classified in accordance with IFRS 9 Financial Instruments. 
For definitions, see Note E1. 
Financial items
SEKm
2022
2021
Interest income and similar profit items
Interest income, subsidiaries
301
207
Interest income, external
5
-
Interest expenses and similar loss items
Interest expenses, external
–84
–72
Interest expenses, subsidiaries
–19
-
Other financial expenses1)
–27
–45
 PIS   Total
176
90
1)	The item includes exchange rate differences amounting net to SEK 2m (0).
Interest-bearing liabilities
Non-current interest-bearing liabilities
Carrying amount
Fair value
SEKm
2022
2021
2022
2021
Loans with maturities  
>1 year <5 years
3,682
3,708
3,481
3,720
Loans with maturities  
>5 years
6,630
4,874
6,533
4,866
 PBS   Total
10,312
8,582
10,014
8,586
Current interest-bearing liabilities
Carrying amount
Fair value
SEKm
2022
2021
2022
2021
Loans with maturities <1 
year
1,395
764
1,397
765
 PBS   Total
1,395
764
1,397
765
For further information about borrowing activities during the year, 
refer to Note E4. 
Financial instruments by category
Financial assets measured at amortized cost
SEKm
2022
2021
Assets
Financial fixed assets
Receivables from subsidiaries
1,990
-
Interest-bearing receivables
47
30
Current assets
Receivables from subsidiaries
11,183
10,504
Other current receivables
0
 PBS   Cash and cash equivalents 
322
602
Total
13,542
11,136
Financial liabilities measured at amortized cost
SEKm
2022
2021
Liabilities
Non-current liabilities
Interest-bearing liabilities
10,312
8,582
Current liabilities
Interest-bearing liabilities
1,395
764
Liabilities to subsidiaries
249
244
Trade payables
1
1
Other current liabilities
26
10
Total
11,983
9,601
Financial assets measured at fair value  
in the income statement
SEKm
2022
2021
Derivatives – Non-current financial assets
80
-
Derivatives – Current financial assets
5
-
Derivatives – Other long-term receivables
241
18
Derivatives – Other current receivables
963
546
Total
1,289
564
Financial liabilities measured at fair value  
in the income statement
SEKm
2022
2021
Derivatives – Other non-current liabilities
241
12
Derivatives – Other current liabilities
964
547
Total
1,205
559
PC12. OTHER CURRENT LIABILITIES
Other current liabilities
SEKm
2022
2021
 TPC12:1   Accrued expenses and prepaid income
83
62
Other operating liabilities
493
354
 PBS   Total
576
416
 TPC12:1   Accrued expenses and prepaid income
SEKm
2022
2021
Accrued interest expenses
25
10
Accrued social security costs
14
12
Accrued vacation pay liability
3
2
Other liabilities to personnel
32
30
Other items
9
8
Total
83
62
Parent Company
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PC13. SHARE CAPITAL
The change in equity is shown in the Parent Company statement of change in equity. The share capital and number of shares have changed 
since 1993 on account of new issues, new subscription, conversions, splits, and the cancellation of own shares as set out below:
Year
Event
No. of shares
Increase in  
share capital
Cash payment,  
SEKm
1993
Number of shares January 1, 1993
172,303,839
1993
Conversion of debentures and new subscription through Series 1 warrants
4,030,286
40.3
119.1
New issue 1:10, issue price SEK 80
17,633,412
176.3
1,410.7
1994
Conversion of debentures 
16,285
0.2
-
1995
Conversion of debentures 
3,416,113
34.2
-
1999
New issue 1:6, issue price SEK 140
32,899,989
329.0
4,579.0
2000
Conversion of debentures 
101,631
1.0
15.0
2001
New issue, private placement
1,800,000
18.0
18.0
2002
New subscription through IIB warrants
513
-
0.1
2003
Conversion of debentures 
1,127,792
11.3
288.4
New subscription through IIB warrants
1,697,683
17.0
434.5
2004
Conversion of debentures 
9,155
0.1
1.1
2007
Split 3:1
470,073,396
-
-
2017
Cancellation of own shares
–2,767,605
-
-
2022
Number of shares, December 31, 2022
702,342,489
SCA’s share capital, December 31, 2022
No. of votes  
per share
No. of shares
Share capital,  
SEKm
Class A shares
10
64,581,994
216
Class B shares
1
637,760,495
2,134
Total
702,342,489
2,350
The quotient value of the Parent Company’s shares amounts to SEK 3.35. At the request of shareholders, 5,000 Class A shares were converted 
to Class B shares in 2022.
PC14. CONTINGENT LIABILITIES, PLEDGED ASSETS AND 
GUARANTEES
Contingent liabilities
SEKm
2022
2021
Guarantees for subsidiaries
711
754
Other contingent liabilities
1
1
Total
712
755
Pledged assets
SEKm
2022
2021
Pledged assets for subsidiaries
11
-
Total
11
-
Pledged guarantees
As of December 31, 2022, SCA’s pledged guarantees pertaining to 
­forestry machines to subcontractors amounted to SEK 329m (328). In 
SCA’s opinion, the pledged guarantees pose an insignificant risk and 
the value has therefore not been recognized as a contingent liability.
PC15. PROPOSED DISPOSITION OF EARNINGS
Annual accounts 2022
Disposition of earnings, Parent Company (SEK)
Non-restricted equity in the Parent Company:
Retained earnings
7,848,333,774
Repayment of previous dividend
363,443
Profit for the period
2,817,323,074
Total
10,666,020,291
The Board of Directors and the President and CEO 
propose:
– to be distributed to shareholders, a dividend of 
SEK 2.50 per share
1,755,856,223
– to be carried forward
8,910,164,068
Total
10,666,020,291
The annual accounts are subject to adoption by SCA’s Annual General 
Meeting and will be presented for approval at the Annual General 
Meeting on March 30, 2023.
Parent Company
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Strategy and operations
Board of Directors’ Report
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Contents
140 	 Value creation
141 	 Strategic priorities and Group targets 
144 	 Governance and materiality
148	 Value-based culture
154	 Social data
155 	 Profitable growth including EU Taxonomy
157 	 Fossil-free world
160 	 Valuable forests
163 	 Efficient use of resources
167 	 Sustainable development
168 	 Environmental data
170	 Taxonomy tables
173	 About the Sustainability Report
Sustainability facts
 
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SCA’s sustainability work is integrated into the Group’s operations  
and business decisions. SCA’s 2022 Sustainability Report is an  
integrated part of the combined Annual Report. 
Value creation
SCA has a long-term perspective in its operations and sustain-
ability is an integrated part of the company and its business 
model. SCA’s efforts to ensure sustainable development encom-
passes social, economic and environmental goals, which are 
integrated into the company’s work and business development. 
The Group’s work is summarized in SCA’s sustainability plat-
form, which covers the company’s operations as a whole. 
Read more on page 49. 
Value-based culture is the starting point for SCA and indicates 
how the company interacts with its stakeholders, does business 
and conducts its overall operations. Profitable growth is the 
foundation of SCA’s strategy and part of sustainable develop-
ment. Long-term economic returns are an integrated part of 
SCA’s sustainability platform together with the other compo-
nents: Fossil-free world, Valuable forests, Efficient use of 
resources and Sustainable development. Through these six 
components, SCA makes a direct or indirect contribution to 
all 17 of the United Nations Sustainable Development Goals. 
Value creation in and from the forest 
Examples include:
•	Climate benefit from growing forests that capture and 
store CO2 and products that replace fossil alternatives
•	Renewable products and renewable energy that  
enable a circular society
•	Shareholder value for SCA’s shareholders 
•	Value of forest land through a stable wood supply  
to SCA’s industries
•	Job opportunities in the company’s operations and 
business opportunities for suppliers of goods and 
­services
•	Recreation and outdoor activities in the company’s 
­forests
•	Viable local communities and regional development 
through the company’s presence and operations
Economic value creation 2022
SCA is an important source of prosperity and welfare. The company’s operations generate economic value for shareholders, 
employees, suppliers, investors and society. A large portion of payments to suppliers are made to SCA’s local area  
in northern Sweden. This is particularly the case for purchasing wood raw material and contractors’ services.
The area of the circle  
represents the total 
inflow into SCA.
Payments to suppliers, including 
private forest owners
51%
Investments in future value creation 
in forests and industry
26%
Dividend to shareholders
9%
Salaries, social security costs and 
pension provisions to SCA’s 
employees
10%
Taxes paid to society
3%
Other
1%
SCA has generated value of SEK 24,013m (21,495) through transactions 
with customers and further processing of forest raw materials. Of this 
amount, SEK 19,370m (15,971) was returned to society through the pur-
chase of other raw materials, which includes payments to external forest 
owners, and payments to suppliers and contractors to maintain opera-
tions in forest and industrial activities as well as investments in future 
value creation. SEK 2,627m (2,603) was paid as remuneration to the com-
pany’s employees, of which 98% (96) pertains to employees in Sweden, 
and a significant share of this figure was received by municipalities and the 
state, through the payment of social security costs, payment by employees 
of municipal and state income taxes, and through the consumption of 
products and services. The company paid SEK 859m (538) in tax, of which 
96% (99) in Sweden. SEK 2,282m (1,405) was distributed to shareholders, 
where 55% (57) of the capital is owned by Swedish shareholders. 
Value cre ation
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SCA’s Group targets 2030 – Sustainability targets
In 2022, SCA conducted a review of the sustainability platform 
launched in 2019 and the Group targets set out in 2020. Sustain-
ability is integrated into SCA’s operations and the review was a 
natural part of the ongoing development of the sustainability plat-
form’s relevance and effectiveness in the company’s pursuit of 
sustainable development. The review was based on an analysis 
of market trends, the UN’s 17 Sustainable Development Goals, 
stakeholder expectations and the company’s strategic priorities. 
The revised sustainability platform further strengthens efforts 
with the company’s value-based culture, clarifies SCA’s role in 
sustainable development and sets new supporting targets for 
biodiversity, water and waste.
In addition to this review, activities continued in 2022 to fulfill the 
strategic objectives.
Value-based culture
Profitable growth
Target: An accident-free and healthy SCA where all 
employees comply with SCA’s Code of Conduct. 
Target: Leading total shareholder return including dividends. 
How: No workplace accidents resulting in absence. 
All employees receive training in the Code of Conduct. 
­Purchasing from suppliers who share SCA’s values, where 
99% of contract suppliers have approved SCA’s Supplier 
Standard. Leaders who can address future needs and 
employees who grow and develop.
How: Leading performance, stable and increasing dividend 
to shareholders, good financial positions with investment 
grade credit rating.
Fossil-free world
Valuable forests
Target: Increase SCA’s climate benefit from 10 to 15 million 
tonnes of CO2. 
Target: 100% of wood raw material shall come from 
responsibly managed forests. 
How: Net uptake of CO2 in SCA’s own forests. A fossil-free 
value chain with a first target to reduce fossil emissions by 
50% by 2030. Increase the availability of renewable prod-
ucts through volume growth and innovations that offer 
greater climate benefits. Increase wind power production 
on SCA’s land to 11 TWh. 
How: 100% Chain of Custody (CoC) certified wood raw 
material, with a minimum requirement of FSC Controlled 
Wood. 75% of wood raw material is from certified forests or 
sourced raw materials that are harvested by SCA using SCA 
retention methods. SCA’s own forest management shall be 
certified by FSC and PEFC. Actively managing for habitats 
of special importance for SCA’s species commitment.
Efficient use of resources
Sustainable development
Target: Zero waste, meaning nothing goes to waste. 
Target: SCA contributes to sustainable development in the 
communities in which we operate 
How: High raw material yield in every process to ensure the 
entire tree is used. Improve energy efficiency through effi-
ciency enhancements of at least 35 GWh per year (ESAVE 
program 2020–2025). Reduced negative impact on water 
and air. Increased recycling and reuse of waste.
How: Contribute toward viable local communities. Support 
civil society in sport, culture and other areas. Enabling and 
promoting value creation in and from the forest. Work 
together with external stakeholders in areas defined in our 
sustainability platform.
Read more about SCA’s sustainability platform in the Strategy and operations section on page 49.
Str ategic priorities and Group targe ts
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Strategic 
­priorities
Value-based  
culture
Profitable growth
Fossil-free world
Why material
SCA’s core values are responsibility, respect 
and excellence. These core values are 
described in SCA’s Code of Conduct, which all 
employees are to comply with. They permeate 
the company’s business relationships and 
interaction with stakeholders. Employees are 
the company’s most important resource. SCA 
secures the future need of expertise by devel-
oping employees and being an inclusive and 
attractive employer that puts health and safety 
first. SCA aims to establish a sustainable 
supply chain with suppliers and contractors 
that share the company’s values.
Long-term profitability requires sustainable 
and profitable growth in a responsible 
manner. The forest forms the core of SCA’s 
operations and profitable growth is created 
as the renewable forest resource grows and 
by increasing the value generated by each 
tree.
SCA produces and sells renewable prod-
ucts that can replace fossil-based alterna-
tives and thereby contribute to reducing 
global warming. SCA also contributes to 
­climate benefit through the net growth of 
the company’s forests, which absorb CO2 
from the atmosphere, and by continuously 
striving to reduce greenhouse gas emissions 
from its own value chain.
Material  
risks 1)
•	Business ethics
•	Reputational risk
•	Suppliers
•	Employee-related risks
•	Risks at production plants
•	Financial risks
•	Demand and market price for SCA’s 
­products
•	Impact of political decisions
•	Climate change
•	Political decisions
•	Financial risks
Impact on  
value chain
Employees (existing and potential), suppliers, 
customers, society
Shareholders, customers, society, 
employees, suppliers
Growth in the forest, SCA’s facilities, 
­suppliers, transports, customers
UN Sustainable 
Development 
Goals2)
Goal 3, 5, 8 and 10
Goal 12
Goal 7, 9, 12 and 13 
Governance
•	Code of Conduct
•	SCA’s Supplier Standard
•	SCA’s Compliance Council
•	Health and Safety Policy
•	HR Policy
•	Steering committee ZERO
•	SCA’s Occupational Health and Safety 
­Network
•	Financial control
•	Financial Policy
•	Business development plans
•	Budget follow-up
•	Sustainability Policy
•	SCA’s Environmental Network
•	Business development plans
Group target 2030
Overarching 
­sustainability 
­targets3)
An accident-free and healthy SCA where all 
employees comply with SCA’s Code of 
­Conduct
Leading total shareholder return (TSR)
Increased climate benefit from 10 to 15 
million tonnes CO2
Supporting 
­sustainability 
targets  
Outcome 20224)
•	Target: All employees receive training in the 
Code of Conduct 
Outcome: 97%
•	Target: Purchasing from suppliers who share 
SCA’s values, >98% of contract suppliers 
have approved SCA’s Supplier Standard 
Outcome: 99%
•	Target: No workplace accidents resulting in 
absence.  
Outcome: LTA frequency rate 3.1 accidents 
resulting in absence, per million hours worked
•	Target: Develop leaders who can address 
future needs 
Outcome: Green rating on leadership index5)
•	Target: Employees who grow and develop 
Outcome: Green rating on engagement 
index5)
•	Target: Total shareholder return, TSR 
Outcome: –16%
•	Target: Stable and increasing dividend 
Outcome: The dividend for 2021 of SEK 
3.25, of which SEK 2.25 is the regular 
­dividend and SEK 1.00 an extra dividend. 
Proposed dividend for 2022 of SEK 2.50.
•	Target: Financial stability – Investment 
Grade credit rating 
Outcome: Investment Grade 
•	Target: Increase total climate benefit to 
15 million tonnes CO2 
Outcome: 10.1 million tonnes CO2
•	Target: Net uptake of CO2 in the forest 
Outcome: 5.4 million tonnes CO2
•	Target: Increase substitution benefits 
from SCA’s products 
Outcome: 5.4 million tonnes CO2
•	Target: 50% reduction of fossil emissions 
in the value chain, Scope 1, 2 and 3, com-
pared with 2019  
Outcome: 0.7 million tonnes CO2e. 
Reduction by 18% compared with the 
base year of 2019
•	Target: Implement 11 TWh of approved 
wind power capacity on SCA land by 2025 
Outcome: 7.2 TWh
Strategic priorities and sustainability targets
The areas of strategic priority each correspond to a component in SCA’s sustainability platform, see the Strategy and operations 
­section on page 49. SCA’s materiality analysis is presented on page 146.
1)	See section Risks and risk management.
2)	The UN’s 17 Sustainable Development Goals play an important part in the work 
with SCA’s sustainability platform. SCA views the goals holistically and makes 
direct or indirect contribution to all of the objectives. This is described in more 
detail on sca.com. The examples above show how the company contributes to 
the goals through each component in SCA’s sustainability platform. 
3)	Group targets have 2019 as base year.
4)	The non-financial multi-year summary presents a selection of key figures.
5)	Results from the latest All Employee Survey. A new All Employee Survey will be 
held in 2023.
6)	The following important habitats were prioritized in 2022: Deciduous forests 
with dead wood; light pine forests with dead wood continuity; open sand pine 
forests with tree continuity and fire-razed areas.
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Valuable forests
Efficient  
use of resources
Sustainable development
The core of SCA’s business is the forest, Europe’s 
largest private forest holding. Through responsible 
forest management, the company’s forests will 
remain at least as rich in biodiversity, nature experi-
ences and raw material in the future as they are 
today. SCA plays an active role in developing forest 
management practices in order to reduce negative 
environmental impact and maintain or enhance 
conservation values, and also encourages and 
helps other forest owners to adopt a responsible 
approach to forest management.
SCA continuously strives to improve its resource 
efficiency, which contributes to better profitability 
while also being economical with the planet’s 
resources and reducing the impact on the environ-
ment. Water is an essential resource and we safe-
guard access to clean water by minimizing our 
emissions and optimizing its use. We work continu-
ously to minimize waste and look for new uses for 
the company’s waste streams. Through innovation 
and product development, products are created 
that contribute to greater material efficiency for the 
company’s customers.
With the force of the forest, we contribute to a sus-
tainable future and achieve this through responsible 
forest management, resource efficiency and renew-
able products. SCA develops together with the 
­communities in it operates. Jobs and growth are 
­generated through our business activities, both 
directly and indirectly. Entrepreneurial innovation 
and strategic collaboration is crucial in this respect. 
We support institutions that provide meaningful 
­leisure activities and enhance cohesion in the local 
communities in which we operate. We focus par­
ticularly on sports clubs and cultural associations 
for children and young people.
•	Risks linked to the forest holding
•	Biodiversity
•	Climate change
•	Environmental impact
•	Legal risks
•	Risks at production plants
•	Reputational risk
•	Political decisions
SCA’s forests, private forest owners, local 
­communities, customers
SCA’s operations, optimizing the value chain, 
­customers
Value creation in and from the forest, viable local 
communities
Goal 3, 6, 12, 13 and 15 
Goal 6, 7, 9, 12 and 14
Goal 8, 9, 11 and 17
•	Forest management manual
•	Quality manuals for forest operations, road 
­construction and transport activities
•	Certification systems (FSC, PEFC) 
•	Sustainability Policy
•	SCA’s Environmental Network
•	ESAVE program
•	SCA’s Innovation Network
•	Sustainability Policy
•	Sustainability platform
•	Sponsorship procedures
•	Procedures for consultation 
•	Conservation parks
•	Forest Business Accelerator
100% of wood raw material from responsibly 
managed forests
Zero waste – Nothing goes to waste
SCA contributes to sustainable development in 
the communities in which we operate
•	Target: 100% CoC certified wood raw material – 
minimum requirement FSC Controlled Wood 
Standard 
Outcome: 100%
•	Target: 75% of wood raw material from certified 
forests or harvested with SCA retention methods 
Outcome: 69%
•	Target: SCA’s own forestry management certified 
under FSC and PEFC 
Outcome: 100% of SCA-owned forest (forest 
operations)
•	Target: We are to work proactively to protect bio-
diversity by increasing the number of habitats of 
special importance6) for SCA’s protected species 
Outcome: New target defined in 2022.  
Follow-up refer to page 162
•	Target: High raw material yield in every process 
Outcome: Measured locally per production unit
•	Target: Improve energy efficiency through effi-
ciency enhancements of at least 35 GWh per year 
based on the company’s energy consumption in 
2020. (ESAVE program 2020–2025) 
Outcome: In 2022, energy efficiency programs 
were carried out corresponding to 57 GWh.
•	Target: To reduce specific process water use by 
5% and emissions of particles by 10% by 2030 
Outcome: In 2022, process water use was 22% 
above the target level and emissions of particles 
was 21% over the target level.
•	Target: 100% recycling/reuse of all non-­
hazardous waste 
Outcome: 96%
•	Target: Contribute toward viable local communities 
Outcome: 61% of SCA’s economic value creation 
were paid to suppliers and employees mainly in 
SCA’s local area in northern Sweden.
•	Target: Supporting civil society in sport, culture 
and other areas. 
Outcome: Central agreements with 149 local clubs 
and associations in sports, culture and health.
•	Target: Promoting the establishment and develop-
ment of activities that create value in and from the 
forest 
Outcome: New target defined in 2022. Follow-up 
from 2023.
•	Target: Work together with external stakeholders in 
areas defined in our sustainability platform 
Outcome: New target defined in 2022. Follow-up 
from 2023
UN’s 17 Sustainable Development Goals
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Control and follow-up of sustainability work
Control and follow-up of sustainability work follows the same model as other 
operations in SCA.
Governance and materiality 
Sustainability governance
SCA’s sustainability work is an integral part of the company’s 
business model and operations. The sustainability work helps 
the company strengthen competitiveness, reduce risks and 
costs, and attract talent and investors. SCA’s strategic priorities 
in the field of sustainability are clarified in a sustainability plat-
form that covers all of the company’s commercial activities. 
To deliver progress in sustainability, the company has adopted 
Group targets in particularly important areas where SCA can 
make a key contribution toward sustainable development – 
socially, environmentally and economically.
The Board and the President bear the overall responsibility for 
the running of SCA’s business in the field of sustainability. SCA’s 
sustainability agenda is headed by the Group’s Sustainability 
Council, which includes members of the Executive Management 
and the Group’s Head of Sustainability. The Sustainability 
Council is led by the Group’s Senior Vice President for Sustain-
ability and Communications. In addition, a number of cross-­
functional networks exist to manage and coordinate specific 
issues, such as the environment and work environment.
Control and follow-up of sustainability work follows the same 
structure as other operations in SCA Group. A description can be 
found in the Corporate Governance Report and in the illustration 
below. The sustainability agenda is based on SCA’s set of core 
values and regulated through the Group’s policies, where the 
Code of Conduct and Sustainability Policy form the basis of 
­sustainability activities. 
The Group sustainability targets are formulated based on 
the materiality analysis and on strategic priorities. These are 
­supplemented at local level with unit-specific targets. Risks 
linked to the field of sustainability form part of the Group’s total 
risk management, which is outlined in the Board of Directors’ 
Report.
Follow-up of sustainability work 
Follow-up and evaluation of sustainability work complies with 
SCA’s procedures for self-assessment, internal control and 
audits, as described in the Corporate Governance Report. 
Follow-­up is conducted at unit level together with other moni­
toring of targets, and aggregated at Group level. The outcome 
of the Group-wide targets is monitored by the Group’s 
cross-functional network and by SCA’s Sustainability Council. 
Any discrepancies are reported using the discrepancy pro­
cedures in each business area and corrective measures are 
identified and implemented.
External initiatives and membership in organizations 
and certifications
SCA contributes in various ways toward initiatives aimed at 
achieving a more sustainable world. SCA is a member of the 
UN Global Compact, an initiative aimed at convincing companies 
to take responsibility for the UN’s ten principles in the areas of 
human rights, working conditions, the environment and anti-­
corruption. SCA is also active in a number of international, 
national and regional trade organizations.
SCA supports the 2030 Agenda and the UN’s 17 Sustainable 
Development Goals. The company works with goals as a whole 
and makes a direct or indirect contribution to all of these goals. 
The goals form an important basis for the company’s materiality 
analysis.
SCA is committed to active and responsible forest management, 
and supports the two international certification systems for for-
ests and forest raw materials, the Forest Stewardship Council 
(FSC) and the Programme for the Endorsement of Forest Certifi-
cation (PEFC). SCA is active at both the international and national 
level. Furthermore, SCA works to raise awareness of how active 
forest management and increasing the use of forest products 
can help to combat climate change. SCA is actively working to 
Annual General Meeting
Board of Directors
President and CEO
Executive Management Team
Sustainability Council
Cross-functional networks
External auditors
Audit Committee
Internal audit
Internal control
Governance and materialit y
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protect the forest’s biodiversity. This is achieved through its own 
initiatives and through cooperation in various research programs 
and initiatives, such as business@biodiversity Sweden. SCA pro-
duction facilities and forestry operations are certified in accor-
dance with relevant standards such as ISO 9001, ISO 14001, 
ISO 45001 and ISO 50001, as detailed on sca.com.
SCA actively contributes to the tranistion and transformation to 
a fossil-free society and is a member of the Fossil Free Sweden 
initiative. The company uses established platforms to evaluate 
its own and its suppliers’ performance on sustainability issues, 
such as EcoVadis and CDP. 
Stakeholder dialogues 
SCA engages in continuous dialogue with various stakeholders 
in order to better understand their concerns and priorities, and 
to continuously improve the company’s value creation.
SCA identifies its primary stakeholders based on their interests 
and in relation to the Group’s business. This takes various forms 
depending on the stakeholder group and the part of the business 
affected.
The business areas maintain a close dialogue with their cus-
tomers and follow up customer satisfaction through surveys, 
face-to-face meetings and third-party assessments. SCA regu-
larly meets investors and analysts. The Group performs All 
Employee Surveys and annual goal and performance reviews 
with its employees. Moreover, SCA communicates with other 
groups and individuals in matters that have a major impact on 
society in general and local communities in particular, and holds 
regular meetings with individuals living near SCA’s operations. 
SCA also maintains a close dialogue with NGOs, such as con-
servation organizations as well as Sami communities in reindeer 
herding areas. 
Stakeholder dialogues provide insights into the expectations of 
various interest groups, help to cultivate long-standing relation-
ships and continuously improve the Group’s operations. In addi-
tion, these dialogues provide valuable information when the 
Key stakeholder issues in 2022 
1. EU: Legislative package “Fit for 55”, the EU Taxonomy 
and the forest strategy
2. The forest’s role in work to combat climate change
3. Preservation of biodiversity in the forest
4. Labor migration from Ukraine
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Group assesses its sustainability program and prioritizes 
sustain­ability initiatives. The Stakeholder Dialogues table below 
offers an overview of the main stakeholder groups and a sum-
mary of the year’s dialogues and the key conclusions drawn 
by SCA from the dialogues.
Materiality analysis
SCA’s materiality analysis is based on several different elements: 
Stakeholder dialogues, targeted surveys, summaries of 
market trends and the company’s and management’s strategic 
priorities. The materiality analysis forms the basis for SCA’s stra-
tegic direction and priorities within the framework of the Group’s 
sustainability work. SCA conducts a materiality analysis every 
year. Every second year the analysis is more detailed and an 
update is conducted in the intervening year. In 2021, a compre-
hensive analysis was performed with the assistance of external 
parties. In 2022, the analysis was updated and adapted to the 
latest requirements from the Global Reporting Initiative (GRI 
Standards 2021). The conclusions of the updated materiality 
analysis are reported in the 2022 Materiality analysis illustration. 
The materiality analysis shows the areas where SCA’s operations 
and sustainability initiatives have the greatest impact on the 
economy, environment and people, including human rights. The 
analysis provides an overview of the priorities of the stakeholder 
groups, market developments and was included as part of the 
review of the company’s sustainability platform. The starting 
point for the work was an analysis of market conditions and a 
stakeholder analysis. The stakeholder analysis included external 
stakeholders such as investors, capital market participants, 
rating institutes, customers, suppliers, NGOs, politicians as well 
as the company’s internal strategic priorities. The company’s 
contributions and challenges linked to the UN’s 17 Sustainable 
Development Goals were included as part of the analysis. The 
purpose of the materiality analysis is to ensure that our priorities 
in sustainability work are in line with stakeholder expectations 
and to determine which sustainability issues should be included 
in the sustainability report and GRI reporting. Sustainability work 
focuses on high priority topics and these are presented in the 
GRI report. 
The materiality analysis performed in 2022 concluded that SCA 
is considered to have the greatest impact in the following areas: 
occupational health and safety, climate benefit, and biodiversity. 
The Group’s sustainability agenda also includes topics with a 
lower priority, and these are described to some extent in the sus-
tainability report and reporting in Sustainability facts, but do not 
constitute material topics in the GRI index. Accordingly, in com-
parison with the GRI index in 2021, the areas anti-corruption, 
diversity and equal opportunity have been excluded. The com-
pany’s economic profitability is, as before, included in financial 
reporting but not presented in the GRI index.
Materiality analysis 2022
Area of influence  
(positive/negative)
Economy, environment, people
1.	 Water consumption
2.	 Corruption
3.	 Human rights
4.	 Waste
5.	 Local community development
6.	 Development and innovation
7.	 Emissions to air and water (excl. CO2)
8.	 Diversity (of people)
9.	 Rights of indigenous people
10.	Ethics and values-based culture
11.	 Resource use
12.	 Occupational health and safety1)
13.	Climate benefit1, 2)
14.	 Biodiversity1)
15.	Renewable products
External perspective
Internal perspective
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Greater
Lesser
Greater
Lesser
1)	Material topics are number 12 occupational health and safety, 13 climate benefit, and 14 biodiversity as described above.
2)	Climate benefit encompasses energy consumption and CO2 emissions. 
Governance and materialit y
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Stakeholder dialogues
Again in 2022, the company’s direct interaction with stakeholders was affected by the coronavirus pandemic. Fewer physical meetings 
took place compared with a normal year. This situation normalized during the autumn and more in-person customer visits were held. 
Meanwhile, digital working arrangements have developed further and now replace physical meetings to a greater extent than before. 
Stakeholder 
groups
How we conduct 
­dialogues
Main topics
How we address the issues
Customers 
and  
consumers
Customer visits, 
meetings, interviews, 
participation in cus-
tomer events and 
seminars, trade fairs, 
mailings, website, 
social media, regular 
contacts by e-mail 
and telephone
Climate benefit, environmental 
impact, ecolabelling, fiber 
sourcing, chain of custody, 
­forestry, biodiversity, human 
rights, reindeer herding, occu-
pational health and safety, 
expertise, market, customer 
benefits, business develop-
ment, resource efficiency, 
energy market, innovation, 
quality, product safety, logistics 
and security of supply
•	Customer surveys, questionnaires and customer visits
•	Close dialogue with customers to develop the company’s value chain
•	Dialogue about product safety, climate, responsible forest management, chain of 
custody
•	Training in Code of Conduct and the Supplier Standard
•	Development of new products and service concepts together with customers
•	Life cycle management of products
•	Visit to customers by SCA experts in various fields
•	Customers who perform audits of SCA’s operations
•	Customer magazines, for example SCA Wood Magazine and New Ways
•	Newsletter
•	Ecolabels, such as WWF ECPI
•	Preparation of Environmental Product Declaration (EPD)
Employees
Performance reviews, 
workplace meetings, 
work councils, online 
surveys, intranet, 
internal courses, man-
agement meetings
Value-based culture, occupa-
tional health and safety, 
attracting and recruitment, skills 
development, succession plan-
ning, compensation and bene-
fits, business ethics, working 
conditions, resource efficiency, 
environmental impact, product 
development, strategic devel-
opment
•	The Group’s ZERO initiative for developing a health and safety culture
•	Risk analyses and management of pandemic 
•	Internal digital channels (intranet, electronic displays, Instagram and webinars). 
•	The discussion tool “How do we act?” and training in SCA’s Code of Conduct, 
anti-corruption and business ethics
•	Participation in student fairs and partnerships with the educational sector 
•	SCA’s podcast “Ingenjörspodden”
•	Introductory course for new employees, skills-enhancement activities, leadership 
training, Early career program and internships
Investors  
and owners
Investor meetings in 
conjunction with, for 
example, interim 
reports, capital 
market days, risk 
reports, the AGM, 
interviews, website
Financial performance, market 
outlook, sustainability, areas of 
growth, renewable energy, 
degree of self-sufficiency, forest 
valuation, risk management, 
corporate governance
•	AGM, March 31, 2022
•	Capital Market Day November 25, 2022
•	Regular investor and analyst meetings during the year
•	Roadshows in conjunction with quarterly accounts
•	Risk management as part of the Board of Directors’ Report in the Annual report
Suppliers
Follow-up meetings, 
request for tenders 
and procurements, 
interviews, website
Health and safety, supplier 
audits, business ethics, human 
rights, energy consumption, 
resource efficiency, climate 
impact
•	SCA’s Supplier Standard as part of contracts
•	Supplier assessments and follow-up meetings
•	Risk-based supplier audits performed on-site
•	Training of procurement employees
•	Assessing countries and suppliers from a sustainability perspective
•	EcoVadis platform
•	Follow-up meetings with individual suppliers
Private  
forest 
owners
Forest owner meet-
ings, physical and 
­virtual meetings, 
­customer magazine, 
website, social media
Long-term and sustainable 
­forestry, management methods, 
forest management plans, 
owner­ship rights, forest man-
agement certification, nature 
conservation, profitability
•	Business contacts on an ongoing basis during the year
•	Customer satisfaction interviews with private forest owners
•	Forest owner meetings and participation in trade fairs
•	Collaboration with Skogscertifiering Prosilva AB (group certificate for private 
forest owners)
•	“Din Skog” customer magazine for forest owners
NGOs
Meetings concerning 
specific issues, inter-
views, reporting to 
ecolabels and sus-
tainability indexes, 
websites
Forest management, biodiver-
sity, climate and environmental 
issues, resource efficiency, 
green energy, human rights, 
hunting, reindeer herding
•	Dialogue with local, regional and national stakeholders
•	Onsite visits to the company’s forests
•	Memberships and involvement in organizations such as the Swedish Forest Indus-
tries Federation, the Confederation of European Paper Industries (CEPI), FSC and 
PEFC, Bioenergy Europe and the Swedish Wind Energy Association
•	Continued revision of relevant standards and ecolabels 
•	Collaboration with FSC International on biodiversity that launched at COP15 in 
­Montreal
•	Collaboration with BirdLife to restore wetlands and improve conditions for birds, such 
as Ural owls
•	Dialogue with reference groups in conservation parks
Political 
engagement 
and the 
­community
Dialogue meetings, 
local events, public 
consultation, inter-
views, websites
Occupational health and safety, 
environmental issues, local 
issues, renewable energy, rein-
deer herding, labor market, 
education, community engage-
ment, diversity issues, human 
rights
•	Dialogues with regulators, government authorities, municipalities and lobbyists
•	Consultation and dialogue about investments, permits, employment and other 
local issues
•	Consultation meetings with local Sami communities and residents living near to 
SCA’s industries and forests 
•	Board representation or participation in organizations for regional development, such 
as chambers of commerce and Junior Achievement Sweden in the northern counties
•	Participation in “Skogen i skolan” 
•	Supervisory and annual reporting to government authorities, for example environ-
mental reports
Governance and materialit y
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Core values
SCA has a corporate culture based on SCA’s core values – 
responsibility, respect and excellence. This is reflected in the 
way SCA treats people, does business and conducts its opera-
tions. Human rights are to be respected by SCA and its business 
partners. SCA’s Code of Conduct serves as the basis for its 
­corporate culture.
Code of Conduct
SCA’s Code of Conduct is a framework for putting the Group’s 
core values – responsibility, respect and excellence – into prac-
tice. The Code of Conduct is to ensure that SCA’s employees 
comply with the Group’s core values and do not engage in 
unethical transactions and practices. SCA has zero tolerance 
for misbehavior in the workplace, such as discrimination and 
sexual harassment.
The Code of Conduct is the Group’s foremost steering document 
in terms of sustainability and constitutes, together with SCA’s 
­Sustainability Policy, the basis of the Group’s sustainability agenda. 
The Code of Conduct, which is adopted by the Board of Directors, 
details the guidelines for business ethics (including anti-corrup-
tion), health and safety, employee relations, and respect for human 
rights, the environment and society that every employee is to 
follow. The Code of Conduct is based on the UN Declaration of 
Human Rights, the International Labour Organisation’s (ILO) Core 
Conventions, the Organisation for Economic Cooperation and 
Development’s (OECD) Guidelines for Multinational Enterprises, 
and the Ten Principles of the UN Global Compact. More about 
SCA’s Code of Conduct can be found on sca.com.
SCA’s Code of Conduct applies to all employees within the 
Group. It applies to all markets in which SCA conducts opera-
Value-based culture
Compliance with SCA’s Code of Conduct, laws and regulations
Reported cases and remarks in 2022 (outcome in 2021 in brackets)
SCA uses a number of methods to safeguard compliance 
with prevailing law and the company’s Code of Conduct. 
These include risk evaluation, audits by external and internal 
auditors, the company’s internal control, incident reporting 
and controls in connection with acquisitions.
All employees are encouraged and have the opportunity to 
report incidents and risk observations with respect to health, 
safety and environment. The reports are incorporated in 
ongoing work to ensure continuous improvements.
Code of Conduct
In 2022, 8 (7) cases of potential breaches of the Code of 
Conduct were reported and investigated. They included 
cases of corruption and conflicts of interest as well as 
­inappropriate behavior. Of these, 5 (5) were confirmed as 
breaches of the Code. No cases were ongoing at the end 
of the year.
Anti-corruption and competition laws
There are no ongoing (0) cases against SCA related to 
breaches of anti-corruption or competition law. Nor has 
SCA been subject to any legal process during the current 
or preceding year.
Health and safety
Serious workplace accidents and health and safety incidents 
are reported to the relevant authority. The authority may 
submit a case to the public prosecutor for review. In 2022, 
a case was initiated by the Swedish Police Authority con-
cerning an accident that took place at the Östrand pulp mill 
in 2020, when contractors suffered burns. From previous 
years, 0 (0) incidents resulted in the issue of a punishment 
order or corporate fine and no corporate fines or penalties 
were therefore paid in 2022.
External environment
It is important to engage in active dialogue with communities 
that can be affected by SCA’s operations. This stakeholder 
dialogue encompasses the entire Group’s operations, see 
the Stakeholder dialogues section. Dialogues may, for 
example, be conducted as public meetings or be based on 
opinions received. All environmental remarks are investi-
gated in accordance with SCA’s procedures and measures 
are taken when deemed appropriate. It is also possible to 
submit comments or complaints about our forest manage-
ment via our website. In 2022, 108 (119) remarks were regis-
tered. These remarks were related to noise, odors, emissions 
to surrounding areas, or to forest management operations. 
SCA’s operations have been granted permits by the authori-
ties. These permits are associated with a number of environ-
mental conditions that must be complied with. The authori-
ties are informed in the event of transgressions. Corrective 
action is taken both urgently and in the longer term to reduce 
environmental impact. During 2022, 21 (34) environmental 
matters were dealt with in dialogue with the authorities. 5 (4) 
of these matters resulted in penalties during the year. These 
concerned prohibited excavation work, incorrect choice of 
oil analysis, refrigerant reporting and, in relation to our forest 
operations, deficiencies in harvesting notifications. In total, 
the company paid SEK 522,232 in fines and other fees.
Value-based culture
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tions. All new employees are trained in the Code of Conduct as 
part of their initial orientation. Every third year, all employees take 
part in a refresher course. The percentage of employees that 
have completed Code of Conduct training amounted to some 
97% at the end of 2022. According to SCA’s Code of Conduct, 
employees must always act in SCA’s best interest and avoid con-
flicts of interest. SCA’s Conflict of Interest Instruction sets out the 
meaning of conflicts of interest and specifies how potential con-
flicts of interest shall be reported. The Code of Conduct also 
forms the basis for SCA’s Supplier Standard. 
Business ethics
SCA bases its business activities on honesty, integrity and 
responsible business practices. The company must comply with 
applicable laws, regulations and SCA policies and instructions. 
Bribery and all other forms of corrupt business practice are 
strictly prohibited. Neither SCA nor anyone acting on SCA’s 
behalf may authorize, offer or make available any payments, gifts 
or other benefits that could affect or appear to affect objectivity 
in business decisions or the actions of a government official. All 
financial information must be accurately reported in a non-mis-
leading manner in accordance with SCA’s accounting practices.
Anti-corruption
Corruption is to use your position to achieve an unfair advantage 
for your own gain or the gain of another person. This includes 
bribery that entails providing, offering, receiving or requesting 
an unfair benefit. The Group must conduct all activities in accor-
dance with applicable laws and regulations and does not tolerate 
any form of corruption or bribery. Work against corruption is 
included in SCA’s Code of Conduct. SCA’s instructions for anti-­
corruption establish rules to prevent anti-corruption in the 
Group’s operations regardless of country.
All of SCA’s employees are trained in the Group’s Code of Con-
duct, which includes a section dealing with business ethics. 
Employees in a senior position and/or with external contacts are 
given additional training in anti-corruption. The target group 
comprises about 1,400 employees. Management teams and 
other relevant individuals also receive training on these issues 
in the form of mini-seminars.
Anti-trust 
SCA complies with competition laws and strives to combat anti-
trust, price fixing, the carving up of customers or geographic 
markets, bid rigging or abuse of a dominant position. SCA has 
established programs to increase knowledge among employees 
of competition law. The target group is employees with market-­
related contact with competitors and includes about 500 indi­
viduals. SCA has guidelines for compliance with competition 
law. Every year these are distributed to the target group, who 
must confirm that they have read the material. In addition to 
training for employees and new employees in the relevant target 
group, regular seminars are held that discuss issues and news 
in the area.
Human rights and the equal value of everyone
Human rights are one important aspect of SCA’s Code of Con-
duct, which forms the basis of the Group’s company culture and 
business relationships. SCA does not tolerate child labor or any 
other form of forced labor in its own facilities or the operations 
of any business partner. SCA complies with applicable national 
laws and international standards on minimum age wherever the 
company operates. SCA promotes fair working conditions, health 
and safety, the trade union rights of employees and the right to 
collective bargaining. SCA has been a member of the UN Global 
Compact since 2008. Risks linked to human rights have primarily 
been identified in business relationships, health and safety and 
the use of land. See the section on risks in the Board of Directors’ 
Report. All forms of suspected violations of human rights are 
taken very seriously and dealt with in the same manner as other 
potential violations of SCA’s Code of Conduct.
Value-based culture
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Reporting breaches
SCA encourages all employees to report suspected violations 
of the Code of Conduct or laws. The violation can be reported 
through SCA’s normal channels to a line manager, human 
resources manager, legal counsel or union representative. There 
is also a whistleblower function available at sca.com which is 
also open to individuals who do not work at SCA. The com-
plaints, which may be submitted anonymously, are investigated 
confidentially, promptly and professionally by specially 
appointed investigators taking into account personal data legis-
lation. Complaints covered by the whistleblower system and 
other cases of suspected violation of the Code of Conduct are 
managed in accordance with SCA’s procedures. Even if an alle-
gation cannot be substantiated, preventive actions may be 
implemented. The scope, outcome and actions taken concerning 
reported cases are followed up by SCA’s Compliance Council. 
SCA’s Compliance Council regularly informs the Audit Com-
mittee of reported cases.
A healthy and safe work environment 
SCA’s most important objective is to ensure that all employees, 
and everyone who enters the company’s sites, should return 
home healthy and unharmed. The Group’s primary aim is that no 
workplace accidents resulting in absence occur. SCA’s Health 
and Safety Policy describes the Group’s health and safety cul-
ture. Health and safety work at SCA’s mills is certified in accor-
dance with ISO 45001. A Health and Safety Week is held every 
year.
SCA has gathered activities under the “ZERO” name, with the 
aim that no workplace accidents resulting in absence are to 
occur. This program has been initiated by, and reports directly 
to, the President. In turn, the number of accidents resulting in 
absence, changed work duties or medical treatment and pro­
active key figures, are reported on a regular basis by the Presi-
dent to the Board of Directors. The ZERO program is developing 
a shared health and safety culture, training leaders, engaging in 
dialogue on safe and unsafe behavior and encouraging all 
employees to become involved and active. ZERO also includes 
shared procedures and a uniform structure for systematic 
­follow-­up, evaluation and reporting. The target of no workplace 
accidents has been supplemented with achieving a mature 
(interdependent) health and safety culture corresponding to the 
definition used in the Bradley Curve™ developed by DuPont.
SCA is proactive in identifying and addressing shortcomings 
and risks, reporting and analyzing events that have occurred to 
identify the underlying causes and implementing measures to 
prevent similar incidents in the future. Lessons learned from 
events that have occurred will be shared with the other units 
within the Group. Every employee has the right to stop work if 
the situation is perceived as unsafe. Each unit has a clear safety 
organization, local targets and action plans.
SCA conducts health and safety training initiatives. In 2022, 
31 managers, safety officers and others who are active in 
improving the work environment received training to create a 
better work environment (BAM) and several hundred employees 
were trained in behavior-based safety (BBS), a methodical and 
simple approach to alert each other to work safely. There are 
also local initiatives that promote healthy living and a safe work 
environment.
All SCA employees have access to occupational health services 
that provide work-related health services and proactive work in 
health and well-being. The occupational health service provider 
works on a strictly confidential basis and also conducts random 
drug tests. 
In 2022, SCA continued to work systematically with health and 
safety for our employees and contractors. Among SCA’s 
employees, 16 (33) workplace accidents took place during the 
year resulting in absence, which is a 50% reduction compared 
with last year’s accident frequency rate. Just under half of the 
accidents were caused by slips, trips and falls. 
In 2022, the number of days of absence due to workplace acci-
dents remained at the same level as 2021 at 14 days (14) per 
accident. The total number of days of absence decreased to 
230 (472) days. A small number of accidents accounts for a large 
Slips, Trips and 
Falls
44%
Hit by moving,  
flying or falling 
object
19%
Crushing injury/
Cuts
13%
Chemicals
13%
Sprains/strains
6%
Struck by/against 
object
6%
0
2
4
6
8
10
2022
2021
2020
2019
2018
FR
0
5,000
10,000
15,000
20,000
25,000
2022
2021
2020
2019
2018
Number
Workplace accident frequency rate
Risk and BBS observations
Cause of accidents
Risk observations
BBS observations
The accident frequency rate (FR), measured as 
the number of workplace accidents resulting in 
absence per million hours worked was signifi-
cantly lower than 2021. The long-term trend is 
positive and a clear sign that the ZERO initiative 
is having the desired effect. 
The number of risk observations was at a similar 
level to 2021 and was in line with the target for 
2022. BBS observations increased by more than 
50% during the same period and this is in line 
with our ambition to develop a safety culture.
Just under half of the accidents were caused by 
slips, trips and falls.
Value-based culture
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Active work for inclusion and attractiveness as an employer.
Examples include:
•	A living Code of Conduct through training and discussion 
cards for dialogue about values.
•	Through Instagram #wearesca where different employees 
show their daily lives at SCA.
•	New season of SCA’s podcast Ingenjörspodd. Available 
through podcast platforms or on www.sca.com/podcast.
•	Training in equal opportunity recruitment and the aim that 
at least one of the final candidates are from the underrepre-
sented gender.
•	Greater gender balance among summer workers. Forest, 
Central Functions and the Bollsta sawmill all reached a 
level of more than 40% women.
•	Participation in Tekniksprånget (IVA), where 59% of partici-
pants are women.
•	SCA Forest is one of 25 parties in “Jämställdhet i skogs-
branschen”, a gender equality project in the forest industry, 
that was started by the Västernorrland County Administra-
tive Board. 
•	An Early Career program for future specialists and leaders 
where half of participants are women.
•	New Group-wide and digital introductory training com-
bined with study visits to selected operations as well as 
meetings with representatives of Executive Management.
•	Preparation of three-year equal opportunity plans for the 
business areas and larger units.
•	Scholarship to continue technology university studies for 
recently graduated high school students.
•	Internships for engineering students in their third and fourth 
years.
•	Participation in the Skogen i skolan organization, which 
strives to increase knowledge about the forest and its many 
values among compulsory school pupils.
•	Preparation of the Bästa Skogen training material in coop-
eration with other industrial players.
•	Participation in labor market fairs at universities.
share of absence. As part of preventive efforts, 23,242 (17,477) 
risk and BBS observations were reported. 
Tragic accident at Ortviken site
In 2022, a tragic accident occurred at the Ortviken site when a 
subcontractor was killed during work on the CTMP project. 
Coronavirus, Covid-19
Health and safety have always been a top priority at SCA. 
The company is complying with the restrictions imposed by the 
authorities and has taken steps to avoid the spread of the virus 
at workplaces, to protect risk groups and safeguard operations. 
In 2022, the company adjusted critical functions, divided working 
groups and implemented remote working. In the operating orga-
nization, the company adapted workplaces and procedures to 
minimize the risk of infection. Production and customer deliv-
eries were maintained in a satisfactory manner. Through good 
planning and cooperation, SCA also performed major mainte-
nance stoppages, and investment projects are progressing on 
time despite a shortage of components in several areas.
Diversity and inclusion
SCA firmly believes in equal value of every individual and mutual 
respect for one another. It fosters cooperation and contributes 
to development, for people and the company. The principles for 
the company’s work in the field are detailed in SCA’s Code of 
Conduct, HR Policy and procedures for victimization. The equal 
opportunity plans, which include practical activities at opera-
tional level, are prepared and followed up on an annual basis. 
The company also developed a discussion tool to facilitate and 
encourage dialogue on topics and situations that can occur 
in day-to-day activities. By spotlighting and talking about 
dilemmas, SCA’s employees can work to create an even better 
workplace. 
To increase attractiveness and diversity, the company is working 
to clarify the employer proposition and to broaden its recruitment 
base by changing the style of its recruitment ads, a Group-wide 
recruitment function, and through interaction with high schools, 
higher education and universities. 
Focus during recruitment is on a broader pool of applicants to 
ensure that at least one of the final candidates is from the under-
represented gender for that position. For summer workers, the 
aim is to achieve gender equality in recruitment. In 2022, 421 
(380) young people had summer jobs at SCA of which 37% (37) 
were women. 
Skills supply
SCA works with various educational institutions to secure its 
short and long-term supply of skilled personnel. SCA partici-
pates in the Skogen i Skolan program, which aims to increase 
knowledge and awareness of the forest and forest industry 
among students and teachers, “Tekniksprånget,” a nationwide 
placement program for senior high school students who studied 
natural sciences and technology programs to increase interest in 
pursuing the engineering profession, and “Jobbsprånget” to help 
newly arrived academics to enter the labor market. An Early 
Career program for future specialists and leaders was prepared 
in 2022 and will be launched in 2023. 
SCA takes part in the development of training courses in profes-
sions with a shortage of labor, such as forest machine operators. 
Furthermore, the company offers practical workplace experience 
and summer jobs in offices, industrial plants, nurseries and 
forest operations. This provides a good and important base for 
SCA’s supply of skilled employees, while offering young people 
an important work experience. 
Employee relations 
Employees have representatives on the Board and in various 
networking groups to work together with the company to 
improve and develop operations. In the event of major changes, 
an impact assessment is performed. 
The All Employee Survey is held regularly. Focus during the year 
was on action plans to retain strengths and develop selected 
areas for improvement. A new survey will be held in 2023. 
Working conditions comply with national laws and applicable 
collective agreements wherever we operate. These regulate 
Value-based culture
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­minimum wages and working hours. When no collective agree-
ment exists, we will follow relevant industry standards. All 
employees in Sweden, with the exception of the Executive Man-
agement Team, are covered by collective agreements. The per-
centage for the Group as a whole is 98% (98). 
Committed and competent employees
Expertise and the need for training are identified based on the 
needs of the operations and the individual to meet current and 
future challenges in the best way possible. Each year, succes-
sion and skills supply plans are prepared to ensure the supply 
of managers and employees. 
The world’s largest paper machine for the production of kraftliner 
is under construction in Obbola. The future Obbola plant will not 
only include physical machinery and buildings but also be trans-
formative and involve changes to the organization, working prac-
tices, processes, expertise and governance. Strategic partner-
ships have been created to enable long-term skills development. 
SCA strives to offer every employee an opportunity to develop to 
their full potential and to work in an atmosphere of respect and 
trust. All employees are to take part in annual appraisal reviews 
to follow up performance and job satisfaction, define areas for 
improvement and personal targets. The percentage of 
employees with documented goals and performance reviews 
in 2022 was 90% (87). 
SCA applies the 70-20-10 model for learning and development, 
meaning most learning is achieved by performing work duties and 
reflecting in the work situation (70), followed by learning through 
interaction (20) and formal training (10). Formal training is under-
taken in, for example, functional areas such as health and safety, 
production and operations, maintenance, logistics, and mar-
keting, as well as in economy, legal matters and IT. Training in 
­simulators combined with coaching in everyday operations is 
used to develop areas such as tree harvesting, and pulp and 
paper production.
All new employees undertake SCA-wide introductory training 
and have a personalized introductory plan. All new managers 
take part in an introduction to SCA’s leadership platform that 
also encompasses SCA’s strategy and the company’s expecta-
tions for its leaders. Moreover, management programs are 
­conducted and shorter courses in rehabilitation and work adapt-
ability, recruitment, target and performance reviews and labor 
law are run. In 2022, a total of 125 (180) managers took part in 
these activities. 
Work continued during the year to develop SCA’s Group-wide 
system for employee and organization data. The system enables 
the digitalization of most of our employee processes and will 
help us in our ambition to standardize, enhance and optimize 
processes for our employees and managers. 
Women
23%
Men
77%
Number of employees1)
Total
Sweden
United 
Kingdom
Germany
Baltic region
Rest  
of Europe
Hong Kong
Total number of 
employees 
3,243 (3,373)
3,184 (3,310)
8 (7)
20 (25)
24 (23)
1 (1)
6 (7)
of whom women (%)
23 (22)
22 (22)
38 (43)
45 (40)
50 (48)
0 (0)
50 (57)
Permanent employees
2,886 (2,944)
2,831 (2,888)
8 (7)
17 (19)
23 (22)
1 (1)
6 (7)
of whom women (%)
22 (21)
21 (20)
38 (43)
41 (42)
52 (50)
0 (0)
50 (57)
Temporary employees
357 (429)
353 (422)
0 (0)
3 (6)
1 (1)
0 (0)
0 (0)
of whom women (%)
32 (31)
32 (32)
0 (0)
67 (33)
0 (0)
0 (0)
0 (0)
Full-time employees
3,181 (3,317)
3,128 (3,254)
8 (7)
18 (25)
20 (23)
1 (1)
6 (7)
of whom women (%)
23 (22)
22 (22)
38 (43)
39 (40)
45 (48)
0 (0)
50 (57)
Part-time employees
62 (56)
56 (56)
0 (0)
2 (0)
4 (0)
0 (0)
0 (0)
of whom women (%)
31 (23)
25 (23)
0 (0)
100 (0)
75 (0)
0 (0)
0 (0)
1)	The table refers to data from December 31, expressed as number of employees. Data for 2021 is presented in brackets. The Baltic region refers to Estonia and Latvia.  
Rest of Europe refers to the Netherlands. On-call workers will be reported from 2023. Data collection, see page 173. 
0
5
10
15
20
25
30
35
>60
years
51–60
41–50
31–40
<30
%
Blue collar
White collar
Total
Employee age distribution for the Group
Distribution women and men  
in total for the Group
Compared with 2021, the proportion 
of employees under the age of 40 
has increased. Refers to permanent 
employees at the end of the year.
At the end of the year, the share of women 
in total in the Group amounts to 23%, 
which is an increase of 5 percentage 
points since 2017. 
Value-based culture
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SCA’s process for a sustainable supply chain
It is important that the company’s suppliers share our values. Regular reviews of risk and improvement potential enable us 
to develop together.
Approved
supplier
Updated
risk assessment
Audit of selected
Suppliers
Correction of
deviations found
Agreements  
where SCA’s
Supplier 
Standard is  
accepted by 
supplier
Evaluation of  
conducted  
audits and 
corrections
Collaboration with 
supplier terminated 
if deviations are 
serious
Approved supplier
SCA uses a process to qualify and approve 
suppliers that includes a review of finances, 
work environment, environment, quality and, 
where needed, specific checks.
SCA’s Supplier Standard
The Standard is based on SCA’s Code of 
Conduct and international standards. It has 
been formulated to ensure that suppliers 
share the company’s values and to minimize 
risks in the supply chain. The Standard cov-
ers areas such as business ethics, human 
rights, working conditions, environmental 
impact and product safety.
 
SCA’s Supplier Standard
The Standard is based on SCA’s Code of Conduct and interna-
tional standards. It has been formulated to ensure that suppliers 
share the company’s values and to minimize risks in the supply 
chain. The Standard covers areas such as business ethics, 
human rights, working conditions, environmental impact and 
product safety.
Sustainable supply chain 
SCA wants to ensure safe and high-quality goods and services 
for its customers and consumers, produced and delivered with 
respect for people and nature. Potential business partners are 
evaluated before cooperation is initiated. The evaluation com-
prises both commercial matters and issues concerning existing 
policies and processes regarding, for instance, the work environ-
ment and business ethics. 
To ensure that SCA’s suppliers share the company’s set of 
values, SCA has formulated a Supplier Standard with which 
­suppliers must comply. In 2022, 99% (98) of contract suppliers 
accepted the Supplier Standard. 
Sustainability risks for about 3,900 of SCA’s suppliers were 
assessed in the EcoVadis IQ tool. The sustainability activities of 
333 of these were also studied in more detail in EcoVadis. In 
2022, five on-site audits were performed. Regarding harvesting 
and silvicultural services contractors, procedures for supplier 
assessments, control and on-site visits are established that 
­correspond to SCA’s Supplier Standard. Approximately 4,600 
follow-ups were carried out on site in 2022. 
SCA has agreements with a large number of suppliers. For wood 
supply from private forest owners, SCA has business relation-
ships with approximately 18,000 private forest owners, via 80 
timber purchasers employed by SCA. Wood sourcing from forest 
companies and forest owner associations, as well as any 
imports, is managed by a central purchasing function. About 
180 contractors are responsible for most of the harvesting work, 
about 100 for timber transportation to SCA’s industries and 
about 90 for forest management measures. 
For the most important input goods and services, there are a 
number of suppliers available in the market. This is also often 
the case for suppliers of maintenance and building services for 
industrial facilities.
Value-based culture
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Social data for the SCA Group
The table shows aggregated data at Group level for operations that were part of the Group during that year. Data for the building 
material operations in the UK in the business area Wood are included for the part of 2020 when SCA owned the operations.  
The discontinuation of publication paper operations has affected the statistics in the years 2020–2022. 
2022
2021
2020
Employees
Average number of employees
3,313
3,577
4,196
Average age of employees1)
43
-
-
Share of women2)
23%
22%
21%
Share of women, blue collar2)
13%
13%
12%
Share of women, white collar2)
35%
35%
34%
Share of women, in management positions2, 3)
24%
23%
23%
Share of women in Executive Management2)
25%
25%
17%
Share of women on the Board of Directors (including appointed by employees)
38%
38%
36%
Share of women on the Board of Directors (excluding appointed by employees)
40%
40%
33%
Employee turnover4)
12%
21%
14%
of which restructuring5)
4%
12%
8%
of which retirement
2%
2%
2%
of which other
6%
7%
4%
Health and Safety
Absence due to illness total
3.7%
3.0%
3.9%
Number of workplace accidents resulting in absence, LTA (of which non-Swedish units)
16 (0)
33 (0)
36 (5)
Number of workplace accidents among contractors, CLTA6) (of which fatal accidents)7)
29 (1)
36 (0)
24 (0)
Number of working days lost due to workplace accidents, DLA8)
230
472
310
Workplace Accident Severity Rate, ASR, measured as days of absence/LTA
14.4
14.3
8.6
Workplace accident Frequency Rate, FR, (LTA/1,000,000 WH)
3.1
5.8
5.6
Fatal accidents
0
0
0
Total Recordable Incidents, TRI9)
103
112
124
Total Recordable Incidents Rate, TRIR
20.1
19.7
19.1
Number of hours worked, million hours
5.13
5.69
6.48
1)	Follow-up of average age, began 1 Jan 2022. Data excluding Gällö.
2)	Refers to employees on December 31.
3)	Refers to members of management teams.
4)	Refers to permanent employees.
5)	In 2020, the building materials operations in the UK were divested, publication paper operations were discontinued in 2021.
6)	Refers to contractors who perform work at SCA’s facilities, in forestry operations or conduct transport activities. 
7)	Subcontractor in conjunction with CTMP project at Ortviken site.
8)	Scheduled days of absence from day 1 after the accident.
9)	Includes all lost time accidents (LTA), restricted work cases (RWC) and medically treated accidents (MT). Medically treated accidents include visits to healthcare or 
occupational health services.
Social data
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Profitable growth in a responsible manner is an important aspect 
of sustainable development and represents one component in 
SCA’s sustainability platform. SCA’s strategy is described in the 
Strategy section on pages 20–23. Profitable growth generates 
value for SCA’s various stakeholders and utilizes SCA’s industrial 
ecosystems to create value in, by and from the company’s large 
forest holding. The company’s operations also create profitable 
growth for customers, suppliers and communities where the 
company operates. Profitable growth is also a prerequisite to 
allow SCA to continue to make significant yearly investments in, 
for example, modern and sustainable mills or forest management 
that yields increased growth in SCA’s forests which serves to 
mitigate global warming. 
Attractive investment
Through the realization of the company’s strategy for profitable 
growth, SCA is to deliver a leading total shareholder return, 
meaning share price appreciation including dividends, and a 
stable and increasing dividend to shareholders. 
In 2022, the total shareholder return for SCA’s Class B share was 
–16%, which compares with total shareholder return for OMX 
Stockholm 30 of –13%. Since the distribution of Essity in 2017, 
the total return for SCA’s Class B share has been 126%, which 
compares with total return for OMX Stockholm 30 of 46% 
(see page 58). The Board of Directors proposes a dividend of 
SEK 2.50 per share for the 2022 fiscal year. The dividend in 2021 
amounted to SEK 3.25, of which SEK 1.00 was an extra dividend. 
A stable financial position is a prerequisite and foundation for 
investing in growth. This is measured by the company holding 
an Investment Grade credit rating. The credit rating agency 
­Standard and Poor’s (S&P) issued a credit rating for SCA of 
“BBB” with a stable outlook.
Profitable and sustainable growth over time
SCA is a forest products company with modern and well-in-
vested industries close to the large forest holding of 2.7 million 
hectares of forest land. As a resource, the forest yields stable 
profitability and value growth. Since 1956, the forest assets have 
provided an annual total return of about 10%. 
The strong project portfolio comprising forest and industrial 
investments guarantees profitable growth over time. SCA manu-
factures products for which there is long-term growing demand 
and that meet rigorous sustainability and quality demands. 
During the year, SCA started producing kraftliner using the new 
paper machine in Obbola. The investment included environ-
mental investments of approximately SEK 1bn, which, for 
example, include a reduction in oil consumption by 8,000 cubic 
meters per year and an improved water treatment capacity. This 
will enable fossil-free production. In 2022, SCA also started the 
new pulp line at Ortviken. The new facility used some of the 
existing infrastructure and mechanical equipment from the dis-
continued publication paper operations, and this repurposing 
resulted in significant economic savings. Forest has an increas-
ingly important role to play in the transition to a more sustainable 
society. SCA’s renewable products, such as biofuels, packaging 
paper and solid-wood products, can replace fossil fuels, plastics 
and concrete. The growing forest and higher production of 
renewable products increases SCA’s climate benefit and 
reduces the adverse effects of climate change. In 2022, total 
­climate benefits from SCA’s forest and manufacturing industries 
amounted to 10.1 million tonnes of CO2.
Profitable growth 
EBITDA and EBITDA margin
Operating cash flow 
0
2,000
4,000
6,000
8,000
10,000
12,000
2022
2021
2020
2019
2018
2017
0
10
20
30
40
50
60
SEKm
%
2)
1)
0
1 000
2 000
3 000
4 000
5 000
6 000
2022
2021
2020
2019
2018
2017
SEKm
1)	Excluding the impact of the changed accounting method for the valuation of forest assets.
2)	Excluding the effect of one-off items related to the discontinuation of publication paper operations.
EBITDA
EBITDA margin
Profitable grow th including EU Ta xonomy
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EU Taxonomy
Economic activities eligible under the EU Taxonomy
The EU Taxonomy for sustainable investments should offer guid-
ance for the financial market to identify economic activities that 
make a substantial contribution to help the EU achieve its envi-
ronmental objectives and its green growth strategy. Currently, 
reporting encompasses two of the six environmental objectives, 
mitigation and adaptation to climate change resulting from global 
warming.
All of SCA’s products contribute to the sustainable transition of 
society by replacing fossil materials with products based on 
renewable materials from responsibly managed forests. Despite 
this, most of the company’s products are not included by the 
existing version of the EU Taxonomy, meaning no technical 
screening criteria have been defined for these activities.
Examples of SCA’s activities that contribute to sustainable devel-
opment but do not fall within the scope of the Taxonomy’s two 
first objectives are: 
1. Production and sales of solid-wood products for construction, 
renovation and manufacturing of furniture 
2. Production and sales of fiber-based packaging material 
3. Production and sales of pellets to generate renewable energy
SCA’s activities that do fall within the scope of the Taxonomy’s 
two first objectives are: 
1. Forest management with sales of timber, silvicultural services 
and seedlings. Mainly internal sales.
2. Production and sales of energy, in the form of tall oil, electricity 
and district heating
3. Logistics services such as transport by ships, trucks and trains
The forest is at the core of SCA’s operations and SCA’s forest 
management is deemed to meet the technical screening criteria 
of the Taxonomy, but since the wood raw material is used inter-
nally the revenue is excluded from the mandatory reporting. This 
means only a very small portion of SCA’s total sales may be 
included in the key indicators when calculating the proportion 
that is Taxonomy-eligible and the proportion that is Taxono-
my-aligned. 
SCA’s business model is built on the integrated value chain that 
begins in its own forests. A fairer view of the company can be 
obtained if forest management is included in the assessment. As 
a voluntary disclosure, SCA has therefore chosen to also report 
the eligible and aligned share when internal sales are included. 
In addition to forest management, internal sales also include 
logistics services, which SCA Logistics is responsible for and 
sells to SCA’s business areas. 
The forests also represents the major part of the company’s cap-
ital and SCA has therefore chosen to also report the proportion 
of capital employed that meets the technical screening criteria 
of the Taxonomy.
Outcome 2022
A more detailed description of the activities included in the 
­calculation of key indicators for the mandatory disclosure is 
reported on pages 170–172. At present, almost all of SCA’s net 
sales consist of economic activities that are non-eligible under 
the Taxonomy. The proportion that is eligible is therefore small, 
8%. 56% of this portion meets the technical screening criteria 
and mainly includes forestry services and sales of energy. The 
portion that is non-aligned consists of transport services. When 
internal sales are also included, 21% of the revenue is eligible 
and 67% of this is considered to be aligned with the Taxonomy. 
Most of the company’s capital employed is from SCA’s own for-
ests and the proportion of capital that is eligible is therefore high, 
76%. Since forest management is deemed to meet the criteria of 
the Taxonomy, almost all of the capital employed, 99%, is there-
fore aligned.
Outcome 2022
Based on external sales  
Mandatory disclosure
Based on external and internal sales 
Voluntary disclosure
Total, SEKm
Share eligible, %
Share aligned, %
Share eligible, %
Share aligned, %
Revenue (turnover)1)
23,957
8%
56%
21%
67%
Investments (CapEx)
6,048
29%
91%
OpEx
1,274
37%
92%
Capital employed2)
106,347
76%
99%
1)	Revenue includes net sales and other operating income.
2)	Voluntary disclosure. The calculation is based on revenue from activities that are aligned with the Taxonomy when both external and internal sales are included and 
this share is then applied to the company’s total capital employed.
Economic activities included in the EU Taxonomy 2022
Share of eligible and aligned, respectively, based on external and internal sales, voluntary disclosure
Revenue, eligible
Revenue, aligned
Capital employed, eligible
Capital employed, aligned
21%
67%
76%
99%
Profitable grow th including EU Ta xonomy
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Climate impact and climate benefits 
SCA is involved in limiting global warming and is actively working 
to increase the company’s climate benefit by using the forest as 
a base to reduce society’s dependence on fossil material and 
related energy types. This includes increasing its own forest’s 
uptake of CO2 from the atmosphere, by developing and 
increasing production of renewable products that replace fossil 
alternatives and by reducing fossil emissions in the value chain 
from forest to customer. SCA also enables the transition to fos-
sil-free activities for others by providing renewable energy in var-
ious forms. SCA has developed a model to describe the total cli-
mate benefit contributed by the company’s activities, see below, 
and has a Group target that calls for its climate benefit is to 
increase from 10 to 15 million tonnes of CO2 between 2019 and 
2030. 
The company’s total climate benefit is calculated using the 
model published by SCA in 2019, see sca.com, and comprises 
three components:
•	Uptake in SCA’s own forest, where 1 m³fo in net growth corre-
sponds to an uptake of 1.375 tonnes/m³fo CO2 from the atmo-
sphere. This is the same factor as used in Sweden’s national 
reports. Net forest growth is calculated by taking the forest’s 
annual growth and removing natural losses, pre-commercial 
thinning and the year’s harvest.
•	Fossil-fuel emissions throughout the value chain, meaning from 
the forest operations to the customers’ gate. Emissions are 
­calculated using the GHG protocol and encompass Scope 1, 2 
and 3.
•	The climate benefit that arises when SCA’s products replace 
fossil materials and the equivalent amount of fossil carbon 
remains in the ground, and is referred to as the substitution 
effect. The substitution factors used are presented on sca.com.
The model does not take into consideration the climate benefit 
of the storage of biogenic carbon in the products during their 
service life nor that fiber is recycled and used several times.
Climate-positive operations
SCA is already a climate-positive company as its own forest 
absorbs several times more than the emissions from all of its 
own value chain in the form of greenhouse gases. In addition, 
there is also the substitution benefit from the company’s prod-
ucts. In 2022, SCA’s total climate benefit amounted to 10.1 (10.5) 
million tonnes CO2. This represents a slight reduction compared 
with 2021 due to lower external deliveries of energy and contain-
erboard and that publication paper volumes have still not been 
replaced by increased volumes of containerboard and pulp 
(CTMP), since these investments are still ramping-up. Fossil 
emissions in the value chain, Scope 1–3, increased slightly, 3% 
compared with 2021, but decreased by 18% compared with the 
base year of 2019. The increase was primarily due to increased 
measures on forest roads and a slightly higher use of fossil fuels 
in industrial processes. Emissions from transportation continue 
to decline. The specific emissions calculated as tonnes of green-
house gases per tonne-kms transport performed decreased by 
3% compared with 2021.
Fossil-free world
SCA’s climate benefit
More than fossil emissions from all of Sweden’s passenger cars
Climate benefit in million tonnes of CO2e
2022
2021
Net uptake in own forest
5.4
5.4
Products, substitution effect
5.4
5.8
Value chain (Scope 1, 2 and 3)
–0.7
–0.7
Total climate benefit
10.1
10.5
The table shows SCA’s climate benefit in accordance with the model 
described by Holmgren and Kolar, 2019, see sca.com
–1
0
1
2
3
4
5
6
7
Emissions
in the
value chain
Product
substitution
Net uptake
of forest
Mtonnes CO2eq
2021
2022
The change between the years is explained in the 
above text.
SCA’s  
climate benefit
10.1
million tonnes  
of CO2
Fossil-free world
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Net growth in SCA’s forests bound 5.4 (5.4) million tonnes of 
CO2 in 2022. In 2022 there is also a contribution from Baltic 
holding. This contribution was negligible in previous years 
­compared with the net uptake in the Swedish forest holding. 
Growth can be enhanced through responsible and active forest 
management, the development of seedling material and planting 
methods, the use of fast-growing contorta pine on suitable land 
and through fertilization. The rate of harvesting is lower than the 
growth, which leads to net growth and thereby a net uptake of 
CO2 from the atmosphere.
The company’s products provide climate benefit as they replace 
fossil alternatives or materials with a greater climate impact, 
such as steel, concrete and plastic. In 2022, the substitution 
effect amounted to about 5.4 (5.8) million tonnes of CO2. In addi-
tion, there is the effect of the removal of CO2 from the atmo-
sphere for many years when wood material is used in buildings 
or furniture, for example, or when fiber-based packaging and 
paper is collected and reused as recovered fiber. More than 90% 
of the company’s solid-wood products are made into long-lived 
products. Continued work with innovation and development will 
provide new opportunities to replace fossil materials and thereby 
further increase climate benefit from forest-based products.
SCA’s objective is to make the entire value chain fossil-free. 
One interim target is to halve fossil emissions between 2019 and 
2030, which is in line with the Paris agreement’s 1.5°C target. 
Through systematic work with efficiency enhancements and a 
transition to biofuels, emissions from SCA’s industries have 
decreased and industrial processes are today almost entirely 
fossil-free. The emission of greenhouse gases across the value 
chain amounted to 0.74 (0.72) million tonnes of CO2e, which is a 
decrease of 18% (21) compared with 2019. See also the com-
ment above. The investment to increase kraftliner capacity at 
Obbola, which began operating during the year, will remove 
another source of fossil oil of approximately 8,000 m³, corre-
sponding to approximately 22,000 tonnes of CO2e in Scope 1, 
when it reaches full capacity. The transition to biofuel for heating 
greenhouses at the nursery reduced Scope 1 emissions by 
about 1,000 tonnes of CO2e. These examples also contribute 
toward a reduction of approximately 1,900 tonnes of CO2e in 
Scope 3.
Carbon emissions from industry, 
fossil CO2
0
25
50
75
100
125
150
175
2022
2021
2020
2019
2018
ktonnes
0
100
200
300
400
500
2022
2021
2020
2019
2018
ktonnes
SCA is working actively to reduce fossil-fuel 
emissions and emissions have been almost 
halved since 2010. In 2022, emissions grew due 
to a temporary increase in oil use.
Carbon emissions from 
transportation, fossil CO2 
In 2022, emissions from transportation 
decreased by almost 10%, due primarily to  
a lower share of transportation to other conti-
nents and lower volumes as a result of the dis-
continuation of publication paper operations.
Greenhouse gas emissions  
in the value chain
In 2022, fossil emissions from the entire value 
chain – from forest operations to the customers’ 
gate – amounted to about 0.74 million tonnes of 
CO2e, a decrease of 18% compared with the 
base year of 2019. The target is to reduce emis-
sions by 50% by 2030.
The total positive climate benefit from SCA’s 
operations was 10.1 million tonnes of CO2, see 
above. Scope 1 includes emissions from SCA’s 
own vessels.
Scope 1
35%
Scope 2
6%
Scope 3
59%
Greenhouse gas emissions in thousand tonnes of CO2e
Scope
2022
2021
20192)
Scope 1: Direct emissions from industrial1) processes
261
240
278
of which, freight transportation
46
48
51
of which machinery
56
44
50
Scope 2: Indirect emissions from purchased electricity and district heating
46
40
58
Scope 3: Emissions in the value chain
433
440
571
of which category 1: Purchased goods and services
158
140
141
of which category 3: Fuel and energy-related activities
47
48
59
of which category 4: Upstream transportation and distribution
223
249
363
of which category 5: Waste generated in operations
4
3
3
of which category 6: Business travel
<1
<1
4
Total for scopes 1–3
740
720
907
1)	Industrial processes refer to production facilities, forestry operations and own logistics operations. 
2)	Refers to base year.
Finished products
Raw materials
Fossil-free world
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Toward a fossil-free value chain
Some 41% (39) of fossil emissions in the value chain are from 
own operations and from purchased energy while about 59% 
(61) are from sources outside the company’s facilities. The single 
largest source is transportation which accounts for 37% (42) of 
total emissions. The company is striving in various ways to 
reduce climate impact, for example through energy-efficiency 
measures, choice of fuel and the optimization of the logistics 
chain, as well as choice of transport mode, load utilization, opti-
mization of transport route and ecodriving. Electrification has 
begun of terminal work and road transport by truck. During the 
year, the world’s first electric timber truck began operating to 
transport wood from the terminal to Obbola. Work is ongoing to 
further develop the action plans for the company’s operations. 
Major opportunities to contribute to reducing climate 
impact and increasing circularity
SCA’s products are renewable and enable greater circularity and 
reduced climate impact, and are thus important in the transition 
to a sustainable society and sustainable consumption. In addi-
tion to the climate benefit from the company’s products, SCA 
enables access to renewable energy by delivering surplus heat 
from the company’s plants as district heating to local municipali-
ties, selling pellets and unprocessed biofuels mainly for heat 
production, renewable electricity, tall oil that is refined into bio-
fuels and by leasing out land for wind power production. SCA 
also invests in its own wind power production and the first wind 
farm was acquired at the end of the year. 
In 2022, 2.0 (2.5) TWh of biofuel was sold and district heat deliv-
eries amounted to 0.4 TWh (0.5), corresponding together to the 
heating requirements of approximately 160,000 homes. At the 
end of 2022, installed wind power capacity amounted to 7.2 TWh 
(6.5) per year. Through its energy efficiency, the expanded pulp 
mill in Östrand contributes to a surplus of green electricity of 0.4 
TWh (0.4) that is sold to the grid, which corresponds to a midsize 
power station.
Through collaboration and innovation, the company is constantly 
striving to identify new uses for its waste streams as a means to 
further increase circularity and climate benefit. One example is 
tall oil that is refined into liquid biofuel.
SCA and Scania have developed the world’s first electric timber truck with a capacity of 80 tonnes.  
The electric timber truck began operating in 2022 – an important step toward making heavy transports fossil-free.
Fossil-free world
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Responsible forest management 
The forest is at the core of SCA’s operations. SCA’s goal is that 
the forests remain at least as rich in biodiversity, nature experi-
ences and raw material in the future as they are today. SCA con-
ducts responsible, long-term and profitable forest operations 
that have resulted in SCA having well-managed forests that con-
tribute to biodiversity as well as conservation and recreational 
values, while in parallel the standing volume is growing in the 
forest and an increasing volume of renewable raw material can 
be harvested. 
Nature conservation is a natural part of the way SCA manages 
the forests – also in forests that do not currently have any partic-
ular conservation values. This means that nature conservation is 
always part of the forest operations, such as road construction, 
site preparation, pre-commercial thinning, thinning, fertilization 
and regeneration felling. SCA refers to this as basic retention.
Forest processes are long. It takes almost a century for a tree to 
become mature enough for harvesting and many processes in 
nature take even longer. SCA’s forest management planning 
therefore extends across 100 years. Each harvested tree is 
replaced by at least two new trees. During 2022, SCA’s nurseries 
delivered 98 (112) million seedlings, of which some 40 (49) million 
were planted in SCA’s own forests. SCA offers a range of forestry 
services to private forest owners, one of which is “New forest 
with regeneration guarantee” where SCA takes full responsibility 
for site preparation and planting and conducts a regeneration 
control, at the latest, two years after the planting. 
Read more about how SCA conducts responsible forestry 
on sca.com. 
Certified forest management
SCA’s forests have long been certified in accordance with interna-
tional forest management standards, Forest Stewardship Council 
(FSC) and the Programme for the Endorsement of Forest Certifica-
tion (PEFC), which aim to ensure responsible forest management. 
SCA contributes together with other social, environmental and 
economic stakeholders, in developing FSC’s and PEFC’s stan-
dards and operations. SCA’s forest operations received the FSC 
certificate in 1999 and the PEFC certificate in 2011.
Responsible raw material sourcing
All wood raw material used in SCA’s products must originate 
from responsibly managed forests. This applies in SCA’s own 
forest and to the wood purchased from other forest owners. 
When sourcing wood, SCA works systematically to ensure good 
working conditions and appropriate nature conservation mea-
sures, also outside the company’s own forests.
All wood raw material bought by SCA is therefore covered by 
Chain of Custody (CoC) rules and must at least fulfill the require-
ments of the FSC Controlled Wood Standard (FSC CW). This 
means the wood must not come from controversial sources, 
which includes wood from illegal logging, from forests with high 
conservation values where these values are threatened by forest 
operations and forests where the rights of indigenous people or 
human rights are being violated. SCA’s timber procurement is 
third-party certified according to PEFC and FSC Chain of Cus-
tody. SCA works to continuously increase the percentage of 
wood raw material from certified forests and encourages private 
forest owners with whom SCA does business to certify their for-
ests. SCA also encourages non-certified landowners to apply 
what is referred to as SCA retention when harvesting their forests. 
This on-site retention is equivalent to what is applied in SCA’s 
Valuable forests
Responsible fiber sourcing
SCA’s timber unit and marketing function are responsible for sourcing wood 
raw material for the production of wood, pulp and paper products. The raw 
material sourcing is third-party certified according to PEFC and FSC Chain of 
Custody. The largest amount of raw material is derived from certified forest 
operations. All raw material from the company’s own forests is included in this 
share. The remaining volumes are CoC-certified in accordance with FSC CW, 
of which half is from felling where the proportion of forest set aside for nature 
conservation corresponds to FSC requirements (SCA retention). SCA encour-
ages its external suppliers to certify their forest management to increase 
access to certified raw materials. 
Country of origin, percentage of consumed
2022
2021
Sweden
95.5%
95.1%
Baltic region
3.4%
4.5%
Finland, Norway, Denmark
1.1%
0.4%
SCA’s production facilities used 10.4 million (10.7) cubic meters of wood raw 
material in 2022. Almost all wood raw material is sourced from northern 
Sweden.
Certified forest management
60%
Chain of custody certified with 
SCA retention 
9%
Chain of custody certified
31%
Valuable forests
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own forests, and corresponds to the FSC standard. In 2022, 60% 
(60) of wood raw material consumed was from FSC or PEFC certi-
fied forest operations and 9% (12) was harvested by SCA on the 
land of private forest owners, with SCA retention. The remaining 
volume is sourced in compliance with the requirements in FSC 
CW. The decrease in certified volume is mainly a result of a 
smaller share from SCA’s own forest. In addition, a reduction was 
also noted of harvesting by private forest owners, with SCA reten-
tion.
Rights of indigenous people – joint planning with reindeer 
husbandry
Some 30 Sami communities have legal and customary rights to 
herd reindeer on SCA’s land. The new FSC standard applied from 
October 2020 includes rules to provide a special collaborative 
process. This offers reindeer herders better opportunities to 
present long-term needs and plans, and for forestry and reindeer 
herding to be jointly planned over longer periods of time and over 
larger areas. Joint planning is based on the principle of Free Prior 
and Informed Consent (FPIC) of indigenous peoples, and is to 
enable coexistence between forest operations and reindeer 
herding in the forest landscape. SCA puts great care and a large 
amount of resources into joint planning with the reindeer herders. 
Issues covered include the time for harvesting, site preparation 
method, fertilization and choice of tree species when planting new 
forest. Pre-commercial thinning, thinning, brash management (the 
use of branches and crowns for bioenergy) and alternative forms 
of harvesting are also highlighted as positive and requested mea-
sures in particularly important areas for reindeer herding.
One important question for Sami communities is regeneration 
with contorta pine. The contorta pine has a high growth rate and 
forms dense forest that can cause problems for reindeer herding. 
The choice of tree species in regeneration is included in the joint 
planning with affected Sami communities, as well as measures 
required in the existing contorta stand to facilitate reindeer 
herding. About 15% of the company’s forest is made up of con-
torta pine.
In 2022, 37 (80) meetings for joint planning took place with 20 (28) 
Sami communities, with discussions concerning approximately 
4,600 (4,800) forest holdings. The coronavirus pandemic severely 
restricted opportunities for joint planning. The cancellation of joint 
planning meant decisions on forestry measures were postponed.
Biodiversity 
The development and preservation of biodiversity in the compa-
ny’s forests is the most important environmental target in the 
management of the forest. Areas that provide vital habitats for 
sensitive flora and fauna are either excluded from harvesting 
through voluntary set-asides, enhanced though active conserva-
tion measures, or maintained using various levels of on-site reten-
tion. Forest set aside from harvesting or harvested using contin-
uous cover forms of forest management are included in our 
ecological landscape plans, which SCA has developed for its 
entire holding. The ecological landscape plans are continuously 
revised to achieve the highest conservation value, entailing that 
forests with the highest conservation values are set aside or har-
vested using continuous cover forms of forest management. This 
work is dependent on high level of expertise among employees, 
extensive inventories of conservation values in the company’s 
forests and stakeholder dialogues. For many years, ecological 
landscape planning has included dialogue with the county admin-
istrative boards and the Swedish Environmental Protection 
Agency about forest that is best suited for formal protection.
SCA also has five conservation parks. The parks are larger forest 
areas that SCA manages to benefit sensitive flora and fauna and 
highlight cultural heritage and recreational values. Stakeholder 
dialogues are held every year on how the forest should be man-
aged with regard to the different values in the park. A diverse 
range of measures and management methods are tested in the 
Distribution of areas with varying levels of nature conservation measures1)
Share of 
total 
area, %
Share of productive forest land area, %
Type of consideration
Ambition
2022 (2021)
Consideration 
share  
2022 (2021)
Basic retention (~15% retention)
67
87
88.5 (88.7)
16.9 (16.2)4)
– of which saved stand of seed trees  
(30–80 tree/hectare)
1.2 (1.1)
20.0 (17.5)
Voluntary set-asides (100% retention)2)
5.4
7
8.3 (8.3)
100 (100)
Combined targets (>50% retention)3)
2.3
3
1.7 (1.6)
5)
Adapted retention (15–30% retention)3)
2.3
3
1.4 (1.3)
5)
Non-productive forest land  
(100% retention, protected)
10
- 
-
100 (100)
Non-forest land (not cultivated)
13
-
-
-
Total area
2.6 million 
hectares
2.0 million 
hectares
The level of on-site retention indi-
cates the balance between pro-
duction and nature conservation, 
or in certain cases social values. 
For example, >50% retention 
leaves >50% of the stand 
untouched after harvest.
1)	
Percentage of area set aside, managed with varying levels of retention or 
consisting of non-forest land, of the total landholding in Sweden.
2, 3)	The outcome shows the percentage of SCA’s productive forest land that 
was included in ecological landscape plans at the end of 2022 for the 
purpose of 2) promoting biodiversity, 3) protecting biodiversity at stand 
level with mainly various continuous cover methods or adapted reten-
tion. The voluntary set-asides, combined targets and adapted retention 
are presented on sca.com.
4)	
Shows the proportion of on-site retention (areas of productive forest land 
> 0.1 hectares) left by regeneration harvesting operations. This also 
includes a minor portion of on-site retention left in harvesting with 
adapted retention. Distributed trees and smaller tree groups are not 
reported. 
5)	
Share of on-site retention in harvesting stands with combined targets 
and adapted retention cannot yet be reported separately in our reporting 
system. This option will be developed in 2023. 
Total
forest land 
2.6 million ha
of which 77% 
productive 
forest land
Valuable forests
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parks to strengthen the existing conservation values and create 
new ones. 
There are an estimated 7,400 forest species in northern Sweden, 
where SCA has its forest holding. In 2020, SCA collaborated with 
the Swedish Species Information Centre and created a list of 
species that were in any way at risk of being adversely impacted 
by forest operations. This list includes 1,002 species, of which 
917 are red-listed in one of the NT, VU, EN or CR categories1). 
A review of all red-listed species on the list was conducted with 
the assistance of external expertise in order to develop and 
increase the precision of work to preserve and expand biodiver-
sity conservation measures. This review, which was based on 
the species that were found in SCA’s own landholding at that 
time, ­concluded that 203 species can be considered particularly 
affected by SCA’s forest operations and therefore species that 
SCA has a particular responsibility for. We refer to these species 
“SCA’s species commitment”.
Almost all species groups are represented but the protected 
species are predominately fungi, mosses and lichen as well as 
insects and certain birds.
Based on their ecology, a number of habitats were identified 
on which the selected species are dependent. By focusing our 
nature conservation activities on these habitats, we can work 
in a resource-efficient manner together with other landowners 
and authorities to create conditions for the survival of these 
­species in the managed forest landscape.
As part of the species commitment, SCA also identified species 
that require active conservation measures in order to survive 
over the long term. Some 30 protected species are included in 
the ÅGP action program2). These active biodiversity measures 
include prescribed burning, creating dead wood or the resto-
ration of water bodies as well as expanding habitats on which the 
species is dependent, such as by creating deciduous forests. 
Far more than the 30 highlighted protected species will benefit 
from the implemented measures.
In 2022, a number of the landscape sections were identified by 
finding out where the selected species currently thrive. The aim is 
to target initiatives in forests where the effect will be most signifi-
cant. In the selected forest landscapes, activities are performed 
in areas that are voluntarily set aside or harvested using contin-
uous cover forms of forest management as well as in forests used 
for timber production. In 2022, nature conservation measures 
have been planned for approximately 600 hectares of forest 
intended for timber production (pre-commercial thinning, thin-
ning, regeneration harvesting). The precision of our nature con-
servation activities can be improved through greater insight into 
our protected species and their habitats.
Measures to promote biodiversity 2022
Measures taken
Number of  
hectares
% of regeneration  
harvesting area  
2022 (2021)
Conservation measures in voluntary set-asides
185
0.8  (1.8)
Measures taken as combined targets
619
2.7  (1.7)
Measures taken as adapted retention
1,821
8.1  (6.8)
Seed tree stands retained for the future
1,077
4.8  (4.5)
Prescribed burning for biodiversity conservation
28
0.1  (1.1)
Wetland restoration projects1)
194 
1)	The restoration of open wetlands by refilling 22 kilometers of ditches.  
100 hectares were restored in 2021.
1)	NT = Near threatened, VU = Vulnerable, EN = Endangered, CR = Critically endangered.
2)	The ÅGP action program for threatened species and habitat types has been drawn up by the Swedish Environmental Protection Agency  
or the Swedish Agency for Marine and Water Management. 
3)	The following important habitats were prioritized in 2022: Deciduous forests with dead wood; light pine forests with dead wood continuity;  
open sand pine forests with tree continuity and fire-razed areas.
In 2022, our nature conservation strategy was reworked  
and in conjunction with this, we established a new supporting  
sustainability target for biodiversity:
“We are to work proactively to protect  
biodiversity by increasing the number  
of habitats of special importance3) for 
SCA’s protected species.”
The table shows forest management measures con-
ducted in 2022 that have benefited biodiversity in relation 
to the harvested area within SCA’s forest holding the 
same year. Various measures are implemented to rec-
reate habitats and valuable substrates, with prescribed 
burning and wetland restoration as two examples. 
Burning takes place at both clearcut areas and as a 
regeneration method and in forests set aside for nature 
conservation purposes. Wetland restoration was per-
formed in open wetlands to restore hydrology after past 
drainage. 
A conservation value assessment on site is carried out 
before all regeneration harvesting and a complementary 
inventory is performed by personnel with specialist 
expertise in forests that may contain high conservation 
values.
Valuable forests
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We use the entire tree 
SCA shall conduct its operations in a manner that has the least 
impact on people and the environment, and to eliminate 
wastage, Zero waste.
SCA strives to make use of the entire tree and all of our waste 
streams. The most valuable part of the tree is processed in the 
sawmills into wood products. Some of these become window 
components, painted cladding or shelves. More than half of the 
log is used for solid-wood products. The remainder becomes 
chips for pulp production or sawdust that is processed into 
­pellets. The bark is used in energy production. 
In addition to finished goods, SCA’s mills generates by-products, 
such as bark and tall oil, and waste streams that contain, for 
example, lignin or metals from wood raw materials. Most waste 
streams, such as ash, green liquor sludge and lime mud is today 
used for soil stabilization or is handled as waste, while by-­
products are largely used in energy production. SCA’s target is 
to increase the added value and circularity for these streams by 
finding new uses. SCA is continuously striving to optimize its 
resource efficiency and energy performance by developing its 
processes, products and practices. 
All units are to work to improve resource utilization through effi-
cient processes, more recycling and by investigating new uses 
for their waste streams. SCA’s units actively monitor their energy 
usage, set targets for improving their energy efficiency and take 
steps to realize the targets. 
Product development and innovation
SCA conducts structured innovation work in compliance with 
the strategic priorities. Innovation work is integrated into sustain-
ability work and is about creating as much value as possible 
from the entire tree partly through greater utilization of raw mate-
rials and production efficiency and partly by moving the product 
portfolio to increase added value. Innovation work leads to 
greater customer value through the development of new prod-
ucts and application areas that improve climate benefit and 
resource efficiency through forest-based products.
During the year, SCA Wood launched contorta as a third type of 
wood for wood products where homogeneity and a high propor-
tion of healthy knots are important properties. Through the 
development of a more precise identification of the properties of 
different forest holdings, contorta has become a type of wood 
used for long-lived products in the production of wood products. 
Another example is a new digital tool that facilitates the planning 
of landings in the forest. The tool helps to create safe and effi-
cient timber landings that take into account several factors that 
affect the suitability of a landing, such as its proximity to water-
courses or areas with conservation or cultural values.
Life cycle perspective
One important tool in SCA’s corporate responsibility work is the 
Resource Management System (RMS). This system monitors 
resource consumption and environmental impact for production 
facilities, transportation of raw materials and finished products. 
Using life cycle assessments, the climate and environmental 
impact of the SCA’s products can be calculated and evaluated. 
Calculations show that today’s products already have a small 
carbon footprint. The greatest climate effect is achieved by using 
the products to replace other products with a larger carbon 
­footprint.
Product safety
SCA wants to ensure safe and high-quality products and ser-
vices for its customers and consumers, produced and delivered 
with respect for people and nature. Products must be safe for 
the user and for the environment and meet the customers’ and 
authorities’ product safety requirements. In product and process 
development, the precautionary principle is used.
Raw materials and chemicals used in the products or in the com-
pany’s operations are continuously assessed and SCA’s Supplier 
Standard sets high demands on the product safety of input 
goods. Based on available knowledge, we work actively to iden-
tify and replace any products that are subject to substitution 
requirements. The work is coordinated through the Group’s 
Chemicals Management Network.
Raw materials 
The foundation for SCA’s products is fresh wood fiber. In addi-
tion, smaller quantities of recovered fiber and inorganic material 
in the form of calcium carbonate are used in the manufacture of 
various paper products. 51% (52) of wood raw material used is 
sourced from SCA’s own forest and own sawmills.
Recovered fiber
Kraftliner is a fresh fiber-based product mainly used in the outer, 
smooth layers of corrugated board boxes. In addition to fresh 
fiber, small amounts of carefully selected recovered fiber are 
used. Kraftliner is used in packaging for very demanding appli-
cations, for example packaging for long transport distances, 
heavy goods, humid conditions or with special requirements for 
purity. Since fibers cannot be recovered an infinite number of 
times, a continuous inflow of fresh fiber is needed. Fresh fiber 
from sustainable forestry is renewable and recyclable and 
together with recovered fiber these contribute to a circular 
­ecosystem.
Efficient use of resources
Efficient use of resources
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Water 
Water issues are increasingly important from a resource effi-
ciency perspective even if Sweden is a country with low risk for 
general water shortages.
SCA’s industrial plants are located in northern Sweden in areas 
with a plentiful supply of water in the form of large rivers and 
almost 100% of the supply of water to the plants is surface water 
from these watercourses. The remaining water is from municipal 
water systems. SCA is working purposefully and effectively to 
reduce water usage and is aiming to reduce process water use 
by 5% by 2030. 
Almost 100% of all water used is returned to the recipient, which 
for SCA is the Gulf of Bothnia. The greatest share of the water, 
70%, is used as cooling water and has no contact with the pro-
cess but can be discharged directly at a slightly elevated 
­temperature. Some 30% of the water is process water reused in 
­several stages before it is eventually treated both mechanically 
and biologically before being discharged. Mechanical treatment 
removes suspended solids, sand and particles. Biological treat-
ment reduces dissolved solids and pollutants that affect chem-
ical oxygen demand (COD). 
By 2030, SCA is aiming to reduce particle emissions to water by 
10%. Emissions to water relates to suspended solids, COD, 
chloro­organic compounds (AOX), nitrogen and phosphorous. 
SCA monitors water consumption and the quality of effluent 
water with inspection and control programs. 
Air 
The company’s total emissions are influenced by the level of pro-
duction, product portfolio and uniformity in production. SCA’s 
production facilities possess environmental permits, which 
Responsible water management
SCA’s plants are located in northern Sweden in areas with plentiful supply of water 
and almost 100% of the supply of water is from surface water from the rivers 
Piteälv, Umeälv and Indalsälven. SCA’s total withdrawal of water from the three 
rivers constitutes as little as 0.4% of their total annual average flow.
Almost 100% is returned to the recipient Gulf of Bothnia.
Cooling water
70%
Process water 30%
Distribution of used water
70% of SCA’s water intake is used as cooling 
water and has no contact with the manufacturing 
process but can be discharged directly into the 
sea at a slightly elevated temperature.
30% is process water that is treated both 
mechanically and biologically before being 
­discharged into the sea.
SCA’s industries are located  
in areas with low water stress  
– now and in future scenarios.
Cooling water  
to the sea
Mechanical  
treatment
Mechanical  
treatment
Biological  
treatment
Treated process  
water to the sea
Gulf of Bothnia
Process water
to water treatment
Municipal  
water distribution  
system
Surface water  
for cooling and 
processes
Process water  
is reused 
several times
Efficient use of resources
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­regulate emissions, among other things. Air emissions comprise 
all combustion units at SCA’s production facilities, regardless of 
fuel, as well as emissions from purchased electricity and thermal 
energy. When energy is supplied to an external facility, air emis-
sions are reduced in the report in relation to the energy amount 
delivered. Emissions to air are reported as dust, NOX, SO2 and 
fossil CO2. 
A large portion of air emissions are generated by transportation. 
SCA works to reduce emissions by increasing the fill ratio, 
training in ecodriving, applying various techniques to reduce fuel 
consumption, and prioritizing transport means with less environ-
mental impact.
Transportation
Raw materials are transported to SCA’s production plants and 
finished products are delivered to SCA’s customers. SCA uses 
ships, rail and road transportation depending on distance and 
the transport systems accessibility, in order to achieve the 
lowest climate impact. The choice of fuel is reviewed as renew-
able fuels become more available.
The largest share of transportation is conducted by ship with 
SCA-owned RoRo vessels, or other cargo ships. SCA uses 
external suppliers for most of its road transports. Great 
emphasis is placed on maximizing load utilization in trucks and 
ships, to minimize energy use and transport emissions. Heavy 
vehicles, known as 74-tonne vehicles, contribute to more effi-
cient transportation with lower emissions. The 74-tonne vehicles 
are used for timber transportation if possible considering the 
bearing capacity of road bridges.
In 2022, electric trucks were tested for heavy transports of wood 
raw materials to Obbola and tests are also in progress with 
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2022
2021
2020
2019
2018
tonnes
Emissions from transport 
activities, NOX and SO2
NOX
SO2
SO2 emissions have decreased due to the new 
global regulations from 2020 that mean sulfur 
levels in marine fuels must not exceed 0.5%. Prior 
to this, a limit was only in force in the Baltic Sea 
and North Sea of 0.1%.
0
50
100
150
200
250
300
350
2022
2021
2020
2019
2018
tonnes
0
10
20
30
40
50
60
2022
2021
2020
2019
2018
Mm3
Emissions to water from industry,  
phosphorous and nitrogen
Process water use
Phosphorous
Nitrogen
COD
Suspended solids
0
5
10
15
20
25
2022
2021
2020
2019
2018
ktonnes
Emissions to water from industry,  
COD and suspended solids
Emissions of COD increased in 2022 compared 
with the preceding year, which was due to a 
breakdown at Obbola’s wastewater treatment 
facility. Suspended solids decreased during the 
year.
Emissions of phosphorous and nitrogen 
decreased in 2022 due to the efficiently func-
tioning wastewater treatment facilities, particu-
larly at the Östrand pulp mill and the Munksund 
paper mill. The new wastewater treatment facility 
in Munksund was optimized with a good result.
Process water is the portion of water intake that 
has contact with the process and is treated in a 
wastewater treatment facility before the water is 
discharged into the sea.
0
500
1,000
1,500
2,000
2,500
2022
2021
2020
2019
2018
tonnes
Emissions to air from industry,  
NOX and SO2
NOX
SO2
Emissions of nitrogen oxides and sulfur dioxide 
from SCA’s industries decreased in 2022 due to 
the restructuring of the Ortviken site. The 
Munksund paper mill also reduced its emissions.
Distribution of transport work
Sales to other continents have fallen slightly, 
which has led to a minor decrease in the propor-
tion of ship transports. For land transportation, 
approximately one third is conducted by rail.
Ship
77%
Road
15%
Trains
8%
Efficient use of resources
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­electric forklifts at Bollsta sawmill. Another example is a compre-
hensive electrification study at SCA Logistics’ Sundsvall terminal 
that included all forklift handling operations at the terminal. This 
initiative highlights the technical, environmental and economic 
implications of electrification.
Transportation by rail is a carbon-efficient mode of transporta-
tion, which is prioritized wherever possible. The proportion 
of timber transportation by rail has increased in recent years. 
However, access to a reliable railway network limits options. For 
finished goods, block trains are used to transport kraftliner 
between Piteå and Umeå and onward to a central warehouse in 
Skövde. The northbound block trains transport recovered fiber, 
which is used as raw material in production. This approach 
means the block trains are fully loaded in both directions.
Energy
Calculations for energy use at a production facility include pur-
chased energy (heating, electricity and fuel), energy generated 
from wood, liquor, bark, sludge and waste paper, and internal 
generation of electricity. A large portion of the energy used by 
SCA comes from the incineration of wood residuals and from 
electricity produced through co-generation. Fuel consumption 
at SCA’s production facilities is 95% (96) fossil-free. 
Any internally generated electricity that is not used internally is 
supplied to the national grid. SCA also delivers energy to the dis-
trict heating system by utilizing secondary heat from the process 
and in this way replaces fossil fuels at municipal heating plants. 
Since 2003, SCA’s energy-efficiency program, ESAVE, has con-
tributed to energy savings and improved efficiency. The target for 
the current 2020–2025 program period is to implement ener-
gy-saving measures of at least 35 GWh per year. An ESAVE net-
work is established and comprises energy surveys, investments 
in energy-efficient technical solutions, a focus on continuous 
improvements and promoting greater awareness among 
employees. Target breakdowns are carried out centrally and each 
business area is responsible for their own action plans to achieve 
the targets, and for ensuring that energy-saving activities are initi-
ated and undertaken. An evaluation and follow-up of work and 
outcomes are conducted every quarter, where best practices are 
shared and experiences exchanged. Each year, the network has 
different focus areas to broaden knowledge within the company 
and ensure proactive work to enhance energy efficiency. All new 
equipment should be energy efficient by design. In 2022, SCA had 
seven units subject to the EU Emissions Trading System (EU ETS). 
In 2022, SCA delivered 1,428 TJ (1,714) of thermal energy exter-
nally and purchased 479 TJ (473). 178 TJ (201) of energy sold was 
steam. No cooling was purchased or sold.
Waste and waste streams
SCA takes a life cycle approach and works proactively with 
resource efficiency. By-products and waste streams are utilized 
as far as possible and solid waste is mainly recycled through use 
as raw material in other processes, as building materials or for 
energy recovery and is primarily bio ash, sludge, organic waste 
and plastic. The company’s target is that by 2030 all non-haz-
ardous waste is to be recycled as efficiently as possible. About 
96% of the total waste volume is normally recycled. This has 
enabled new uses and in some instances completely new prod-
ucts, either in our own operations or with an external party. The 
company is continuing its work to optimize cost reductions, 
value creation and processing levels for the recycled waste. 
A minor share of the total waste is hazardous waste, for example 
waste oil, strip lights and batteries. Hazardous waste is sent to 
authorized subcontractors using approved transport companies. 
This waste is not included in the proposed targets. 
Distribution of fuel supply
In 2022, SCA’s fuel consumption for steam production, was 95% (96) 
fossil-free. A decrease compared with last year. Refers to Swedish 
­production facilities.
Distribution of electricity supply
SCA’s production facilities generate electricity using co-generation. 
The remainder is purchased from the national grid. The Östrand pulp 
mill generated a surplus of electricity that is sold externally. There was 
a decrease in electricity purchased in 2022 due to the discontinuation 
of publication paper production at Ortviken.
Biofuel
95.3%
Fossil fuel
4.5%
Electric boiler
0.2%
Co-generation
62%
Grid supply
38%
Non-hazardous waste
Total energy consumption1)
MWh
2022
2021
2020
Fuels
9,377,609
10,693,523
9,956,193
Electricity
664,533
863,853
2,161,147
Heating
134,310
132,189
125,929
10,176,451
11,689,565
12,243,268
of which renewable sources
9,492,813
11,054,313
11,218,586
Includes production facilities, forestry operations and own logistics ­operations.
1)	For data collection, see page 173.
0
50
100
150
200
2022
2021
2020
2019
2018
ktonnes
Recovery
Landfill
Solid waste is mainly 
recycled through use as 
raw material in other pro-
cesses, as construction 
materials or for energy 
recovery and is primarily 
bio ash, sludge, organic 
waste and plastic. A 
minor share is sent to 
landfill.
Efficient use of resources
166
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

The forest is at the core of SCA’s operations and the company’s 
business model is to sustainably create the highest possible 
value from, out of and around this unique resource. With the 
force of the forest, we contribute to a sustainable future and 
achieve this through responsible forest management, resource 
efficiency and renewable products. 
SCA plays an active role in a variety of different ways in local, 
regional and global development. SCA’s large forest holding and 
extensive industrial operations make the company a visible and 
important local and regional player. Significant investments in 
industrial capacity and responsible forest management create 
value for the company and for other forest owners in the region. 
One important factor in attracting companies to the region is 
sustainable transportation. SCA is constructing a new container 
port in Sundsvall, directly adjacent to the logistics park initiative 
by Sundsvall Municipality, and will be part of one of Sweden’s 
most important transport hubs.
Viable local communities
SCA must evolve with the world around it in order to create value 
in the communities of which the company is a part. SCA’s com-
munity involvement therefore has a clear link to the company’s 
values, strategic priorities, expertise, operations and geographic 
presence. SCA engages in continuous dialogue with various 
stakeholders about how the Group can contribute to the positive 
development of society as a whole. This includes meetings and 
dialogue with municipal representatives, local residents, reindeer 
herding Sami and people who live close to SCA’s facilities. 
SCA contributes to the local economy in the municipalities in 
northern Sweden where the company conducts operations. Of 
SCA’s more than 3,200 employees in 2022, 98% were employees 
in Sweden and the remaining 2% mainly in Europe. In addition to 
direct payments, in the form of various taxes, SCA generates the 
preconditions so that trade, services and public services can 
continue to exist in smaller rural communities. SCA’s industries, 
where one very important element of the supply of raw material 
is the purchase of timber from private forest owners, create jobs 
in rural areas, both directly and indirectly. SCA’s forests and the 
forest roads SCA builds contribute toward ecotourism, hunting 
and fishing. Refer to Economic value creation on page 140.
Value creation – in and from the forest
SCA has an important role to play in the transformation to a 
­circular and biobased economy. The concept of sustainability 
is build around the notion that we use the entire tree to maximize 
value ­creation in and from the forest. Thanks to a well-developed 
method­ology and close contact with customers and suppliers, 
SCA is driving structured innovation work based on the com­
pany’s strategy and sustainability platform.
SCA’s various business areas are independently responsible for 
their own innovation work, supported by central resources. Proj-
ects for the company’s business areas, in the fields of solid wood 
products, paper, pulp, biofuel and green chemicals, are con-
ducted at SCA R&D Centre, which is the company’s central unit 
for these activities. In addition to the development of existing 
product areas, innovation is also carried out to generate higher 
product values from the production units’ side streams, such as 
ash, sludge and bark. 
SCA endeavors to generate value in the forest value chain. Entre-
preneurial innovation and strategic collaboration is crucial in this 
respect. By supporting entrepreneurship, SCA helps to create 
conditions for the growth of new companies and jobs. SCA orga-
nizes the Forest Business Accelerator program, together with 
IBM, RISE Processum and BizMaker. The purpose is to create 
new business opportunities and a greener world by uniting for-
estry, digitalization and entrepreneurship. Since starting in 2017, 
32 startups linked to the forest industry and sustainable develop-
ment have taken part in the program. SCA is involved in various 
research and development programs together with universities, 
research institutes and commercial entities at national and inter-
national level. The proximity between SCA R&D Centre and Mid 
Sweden University in Sundsvall has contributed to several inter-
esting research and innovation projects in the region and to 
attracting skilled research talent. 
Sustainable development
Activities for sustainable development
•	Supporting associations and local community engagement in 
sport, culture and other areas.
•	Meetings with reference groups at SCA’s conservation parks to 
develop management plans for the parks.
•	Principal partner for Sveriges Innovationsriksdag with Sundsvall 
as host city
•	University partnerships to use AI technology for safer main­
tenance aimed at reducing the risk of accidents.
•	Test and evaluation of the world’s first electric timber truck 
in collaboration with Scania and Skogforsk1). 
•	Demonstration of the world’s first remotely controlled timber 
loader in a project supported by Vinnova and with participants 
from Volvo, Telia, Biometria, MiUN and Skogforsk. 
•	Continued development of SCA Digital Forest Testsite, a 50,000 
hectare forest site, which has been laser scanned in various 
­resolutions and provides a basis for development projects in 
such fields as remote analysis.
•	Machine for low-impact replanting of seedlings, a project sup-
ported by Vinnova with the participation of Bracke Forest, KTH, 
LTU and Skogforsk
•	Support to newly launched companies, such as Tebrito – a 
­manufacturer of sustainable protein and fertilizer based on 
insect farming in waste streams.
1)	The project is part of REEL, a national initiative where leading Swedish 
players have joined forces to accelerate the transition to electric, 
zero-emission heavy transports on our roads. The initiative is led by 
CLOSER and is part-financed by the Strategic vehicle research and inno-
vation programme (FFI) through Vinnova and the Swedish Energy Agency.
Sustainable de velopment
167
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

Total  
SCA
Total  
Pulp and  
paper mills 
Total 
Wood and 
Energy
Changes  
at the Ortviken 
site1)
Östrand  
pulp mill
Munksund  
paper mill
2022
2021
2020
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
PRODUCTION
Paper, pulp and pellets
ktonnes
1,849
1,931
2,434
1,651
1,734
198
1972)
0
63
858
861
378
378
Timber and solid-wood prod-
ucts
1,000 m3
2,112
2,263 
2,285
2,112 2,2632)
ENERGY CONSUMPTION
Electricity
Co-generation
GWh
1,012
1,037
852
1,012
1,037
0
0
17
33
6783)
6713)
155
183
Grid supply
GWh
618
705
1,9112)
445
521
173
183
48
177
0
10
182
155
TOTAL
GWh
1,631
1,742
2,763
1,457
1,559
173
183
65
209
678
681
336
338
Fuels
Biofuel4)
TJ
32,227
32,752
32,679
29,811
30,229
2,417
2,523
497
940
18,593
18,860
5,797
6,074
Fossil fuel4)
TJ
1,532
1,351
1,5532)
1,365
1,166
167
185
23
102
890
504
131
163
Electric boiler
TJ
76
123
219
76
123
0
0
25
51
0
0
51
71
TOTAL
TJ
33,835
34,226
34,450
31,252
31,518
2,583
2,709
545
1,094
19,483
19,363
5,979
6,308
of which co-generation
TJ
8,273
7,866
7,413 
8,273
7,866
0
0
84
156
6,905
6,373
597
703
EMISSIONS
To air
NOX as NO2
tonnes
2,039
2,180
2,106
1,936
2,078
103
103
32
67
1,189
1,320
415
436
SO2
tonnes
275
322
360 
263
310
11
12
3
7
149
202
80
82
Dust
tonnes
236
267
260
187
215
49
53
1
4
133
141
31
44
CO2 fossil
ktonnes
120
105
1192)
107
91
13
14
2
8
69
39
10
12
CO2 fossil, grid electricity
ktonnes
7
9
262)
5
7
2
2
1
2
0
0
2
2
CO2 biogenic
ktonnes
3,304
3,330
3,464
3,066
3,120
238
2562)
48
92
1,912
1,931
605
6332)
To water
COD
tonnes
16,549
15,925
20,063
16,537
15,891
13
34
206
642
8,795
9,258
1,907
4,616
BOD
tonnes
3,529
3,026
3,948
3,463
2,963
66
64
0
19
497
718
369
2,010
Suspended solids
tonnes
2,104
2,353
2,628
2,103
2,352
2
1
59
115
1,044
1,114
281
614
AOX
tonnes
35
28
24
35
28
0
0
0
0
31
24
2
2
Phosphorous (P)
tonnes
25
40
37
24
39
1
1
0
1
10
15
8
10
Nitrogen (N)
tonnes
266
337
325
263
334
3
3
7
28
163
173
56
68
Effluent water (process water) Mm3
37
38
50
37
382)
0
0
3
5
19
19
9
82)
Solid waste5)
Landfill
tonnes
5,438
4,183
5,3912)
5,361
4,148
77
35
0
29
26
33
3,797
2,642
Recovery
tonnes
141,856
162,538 128,8532) 
136,302
149,882
5,554
12,656
3,771
14,705
94,093
83,391
13,923
16,688
Hazardous waste
tonnes
2,537
2,253
2,310
1,096
828
1,441
1,424
201
373
335
297
231
97
RAW MATERIALS AND SOLD BY-PRODUCTS (GROUP TOTAL)
Raw materials
2022
2021
2020
External sold by-products
2022
2021
2020
Wood and sawmill chips
ktonnes
3,300
4,300
4,600
Electricity
TWh
0.40
0.40
0.42
Recovered paper
ktonnes
270
283
272
District and waste heat
TWh
0.38
0.47
0.33
Inorganic material
ktonnes
16
44
165
Solid biofuels6)
TWh
2.0
2.5
1.7
Organic fossil material
ktonnes
0
1
8
Tall oil, turpentine
ktonnes
48
47
50
Water
Mm3
121
123
142
1)	Due to the restructuring and rebuilding of SCA’s production process at the Ortviken site, no production took place in 2022.  
The energy and wastewater treatment facilities were however in operation. Energy consumption and emissions to water and air related to SCA’s  
operations are reported in the table.
2)	Correction of minor input error from 2021. No impact on operations.
3)	Figure refers to consumption of co-generated electricity. Surplus electricity is sold externally and reported in the table External sold by-products.
4)	Biofuel includes pellets, bark, black liquor, fiber, sludge and fossil fuel includes oil, plastic reject and liquid petroleum gas.
5)	In 2022, additional amounts of 1,676 tonnes of construction waste originating from the expansion project in Obbola and 4,883 tonnes related to  
the conversion in Ortviken were generated. Of this, 95% and 100%, respectively, were recoverable.
6)	Including volumes from operations where SCA has total responsibility for sales.
Environmental data
The table shows environmental data for SCA’s production facilities, where SCA’s holding is at least 50%. The reporting is more exten-
sive than covered in text and charts. The summation for production in 2020 includes divested operations, Ortviken paper mill and the 
construction material operations in the UK. 
Environmental data
168
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Introduction
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Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

AOX	 Absorbable organic halogens
CO2	
Carbon dioxide
COD	 Chemical oxygen demand
BOD	 Biochemical oxygen demand
NO2	
Nitrogen dioxide
NOX	
Nitrogen oxides
SO2	
Sulfur dioxide
Obbola  
paper mill
BioNorr 
Härnösand
Building 
­materials  
Stugun
 Building 
­materials 
­Tunadal
Bollsta  
sawmill
Gällö  
sawmill
Munksund  
sawmill
Rundvik  
sawmill
Tunadal  
sawmill
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
415
433
168
168
21
21
9
92)
70
94
82
93
521
532
337
360
296
369
252
284
553
531
163
151
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
215
180
32
31
6
6
4
4
43
43
18
19
22
25
18
20
32
36
378
330
32
31
6
6
4
4
43
43
18
19
22
25
18
20
32
36
4,924
4,355
421
416
5
7
2
2
704
706
289
305
371
443
233
268
391
376
321
398
2
1
0
0
0
0
59
66
0
0
8
19
12
4
86
94
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
5,245
4,753
423
417
5
7
2
2
763
772
289
305
379
463
245
272
477
470
686
634
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
300
255
0
0
1
1
0
0
58
51
22
23
5
7
11
13
7
7
31
20
0
0
0
0
0
0
1
2
0
0
0
1
0
0
9
9
22
26
33
36
1
1
0
0
4
4
0
1
0
0
11
11
0
0
26
32
0
0
0
0
0
0
4
5
0
0
1
2
1
0
7
7
2
2
0
0
0
0
0
0
0
1
0
0
0
0
0
0
0
0
501
452
40
40
0
1
0
0
68
69
30
32
39
462)
22
33
37
37
5,629
1,375
0
0
0
0
0
0
0
0
0
0
0
0
0
0
13
34
2,597
216
0
0
0
0
0
0
63
64
0
0
0
0
0
0
4
0
718
510
2
1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2
2
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
6
12
0
0
0
0
0
0
1
1
0
0
0
0
0
0
0
0
38
66
0
0
0
0
0
0
3
3
0
0
0
0
0
0
0
0
6
6
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,538
1,444
41
22
0
0
0
0
7
0
0
0
9
12
0
0
19
2
24,515
35,098
52
2,033
179
170
50
399
3,143
3,804
949
1,410
62
77
772
4,671
347
93
330
62
1,033
1,238
6
0
0
2
51
37
14
122)
14
17
254
53
70
66
Environmental data
169
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

EU Taxonomy
Turnover
Substantial contribution criteria
DNSH criteria  
(Does Not Significantly Harm)
Minimum safeguards
Taxonomy- 
aligned  
proportion 
of turnover,  
year N 
Taxonomy- 
aligned  
proportion 
of turnover, 
year N-1 
Category (enabling activity)
Category (transitional activity)
Economic activities
Code(s)
Absolute 
turnover 
Proportion of turnover
Climate change mitigation
Climate change adaptation
Water and marine resources
Circular economy
Pollution
Biodiversity and ecosystems
Climate change mitigation
Climate change adaptation
Water and marine resources
Circular economy
Pollution
Biodiversity and ecosystems
 
SEKm
%
%
%
%
%
%
%
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities 
(Taxonomy-aligned)
 
Forest management
 1.3
212
1%
100%
N/A
N/A
N/A
N/A
Y
Y
Y
Y
Y
Y
Y
1%
N/A
Electricity generation from wind power
 4.3
0
0%
100%
N/A
N/A
N/A
N/A
Y
Y
Y
Y
Y
Y
Y
0%
N/A
Manufacture of biogas and biofuels for use in 
transport and of bioliquids
 4.13
428
2%
100%
N/A
N/A
N/A
N/A
Y
Y
Y
Y
Y
Y
Y
2%
N/A
District heating/cooling distribution
4.15
103
<1%
100%
N/A
N/A
N/A
N/A
Y
Y
Y
Y
Y
Y
Y
<1%
N/A
Cogeneration of heat/cool and power from 
bioenergy
4.20
262
1%
100%
N/A
N/A
N/A
N/A
Y
Y
Y
Y
Y
Y
Y
1%
N/A
Freight rail transport
6.2
8
<1%
100%
N/A
N/A
N/A
N/A
Y
Y
Y
Y
Y
Y
Y
<1%
N/A
Turnover of environmentally sustainable 
activities (Taxonomy-aligned) (A.1)
 
1,013
4%
4%
N/A
A.2. Taxonomy-eligible but not environmentally 
sustainable activities (not Taxonomy-aligned 
activities)
 
Freight transport services by road
 6.6
170
1%
Sea and coastal freight water transport, vessels for 
port operations and auxiliary activities
6.10 
632
3%
Turnover of Taxonomy-eligible but not 
environmentally sustainable activities (not 
Taxonomy-aligned activities) (A.2)
 
802
3%
Total (A.1 + A.2)
 
1,815
8%
4%
N/A
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities (B)
 
22,142
92%
Total (A + B) 
 
23,957
100%
Turnover consist of the Group’s revenue, see Note B1. Revenue 
includes net sales and other operating income from external sales of 
goods and services, that is, after elimination of internal transactions. 
Since this is the first year reporting the proportion of Taxono-
my-aligned activities, no outcome is given for the comparative year, 
which is in accordance with disclosure requirements. SCA is deemed 
to meet the minimum social safeguards, refer to pages 148–153.
The assessment of the company’s operations was based on the activi-
ties and criteria described in the delegated acts for the EU Taxonomy 
and that currently encompasses the two first environmental objectives. 
The economic activities identified as Taxonomy-eligible are forestry 
management, energy activities such as sale of district heating, elec-
tricity and tall oil to process into biofuel as well as various transport 
services by rail, road and sea. All activities are first and foremost con-
sidered to contribute toward the first environmental objective, Climate 
change mitigation. In 2022, no activities were identified that also con-
tribute toward the second environmental objective, Climate change 
adaptation.
Almost all of SCA’s external net sales consist of activities that are 
not currently Taxonomy-eligible. The Taxonomy-eligible activities 
comprise almost exclusively other operating income and constitute 
a minor share, 8%, of SCA’s total external revenue. Of this revenue, 
56% is from activities aligned with the technical screening criteria of 
the EU Taxonomy.
SCA’s forest management is eligible and is considered to be aligned 
with the technical screening criteria of the EU Taxonomy, but excluded 
from revenue as almost all wood raw material is used internally. The 
activity 1.3 Forest management covers revenue from silvicultural 
­services sold externally, sales of seedlings and sales of small volumes 
of wood. 
Revenue from activity 4.3 Electricity generation from wind power is 
­eligible but was without sales in 2022 since the acquisition was com-
pleted in December 2022.
The aligned activities comprise forestry management, energy and rail 
transportation.
The activities that are Taxonomy-eligible but do not meet the technical 
screening criteria include transport services at sea and by road.
Ta xonomy tables
170
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

CapEx
Substantial contribution criteria
DNSH criteria  
(Does Not Significantly Harm)
Minimum safeguards
Taxonomy- 
aligned  
proportion 
of CapEx,  
year N 
Taxonomy- 
aligned  
proportion 
of CapEx,  
year N-1 
Category (enabling activity)
Category (transitional activity)
Economic activities
Code(s)
Absolute 
CapEx
Proportion of CapEx
Climate change mitigation
Climate change adaptation
Water and marine resources
Circular economy
Pollution
Biodiversity and ecosystems
Climate change mitigation
Climate change adaptation
Water and marine resources
Circular economy
Pollution
Biodiversity and ecosystems
 
SEKm
%
%
%
%
%
%
%
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities 
(Taxonomy-aligned)
 
Forest management
1.3
1,120
19%
100%
N/A
N/A
N/A
N/A
Y
Y
Y
Y
Y
Y
Y
19%
N/A
Electricity generation from wind power
4.3
809
13%
100%
N/A
N/A
N/A
N/A
Y
Y
Y
Y
Y
Y
Y
13%
Manufacture of biogas and biofuels for use in 
transport and of bioliquids
4.13
42
1%
100%
N/A
N/A
N/A
N/A
Y
Y
Y
Y
Y
Y
Y
1%
N/A
District heating/cooling distribution
4.15
6
<1%
100%
N/A
N/A
N/A
N/A
Y
Y
Y
Y
Y
Y
Y
<1%
N/A
Cogeneration of heat/cool and power from 
bioenergy
4.20 
13
<1%
100%
N/A
N/A
N/A
N/A
Y
Y
Y
Y
Y
Y
Y
<1%
N/A
Renovation of existing buildings
7.2 
60
1%
100%
N/A
N/A
N/A
N/A
Y
Y
Y
Y
Y
Y
Y
1%
N/A
Installation, maintenance and repair of energy 
efficiency equipment
7.3
2
<1%
100%
N/A
N/A
N/A
N/A
Y
Y
Y
Y
Y
Y
Y
<1%
N/A
Installation, maintenance and repair of charging 
stations for electric vehicles in buildings (and 
parking spaces attached to buildings)
7.4
6
<1%
100%
N/A
N/A
N/A
N/A
Y
Y
Y
Y
Y
Y
Y
<1%
N/A
CapEx of environmentally sustainable activities 
(Taxonomy-aligned) (A.1)
 
2,058
34%
34%
N/A
A.2. Taxonomy-eligible but not environmentally 
sustainable activities (not Taxonomy-aligned 
activities)
 
Sea and coastal freight water transport, vessels for 
port operations and auxiliary activities
6.10 
171
3%
CapEx of Taxonomy-eligible but not 
environmentally sustainable activities (not 
Taxonomy-aligned activities) (A.2)
 
171
3%
Total (A.1 + A.2)
 
2,229
37%
34%
N/A
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities (B)
 
3,819
63%
Total (A + B) 
 
6,048
100%
SCA is a non-financial corporation that applies IFRS standards and 
investments (CapEx) have been identified in the IAS 16, IAS 38, IAS 41 
and IFRS 16 categories. No activities linked to joint ventures were 
included in the supporting data.
Since this is the first year reporting the proportion of Taxonomy-­
aligned activities, no outcome is given for the comparative year, which 
is in accordance with disclosure requirements. The assessment was 
based on the activities and criteria described in the delegated acts for 
the EU Taxonomy and that currently encompasses the two first envi-
ronmental objectives. In 2022, no investments were identified that also 
contribute toward the second environmental objective, Climate 
change adaptation.
For the purpose of assessing the Taxonomy-eligible investments that 
meet the criteria, calculations were conducted of the investments that 
meet any of the criteria a–c:
(a)	 pertains to assets or processes linked to the company’s economic 
activities that are currently Taxonomy-eligible 
(b)	is part of a plan to increase the company’s economic activities that 
are Taxonomy-eligible or make it possible for economic activities 
that are Taxonomy-eligible to contribute to environmental objec-
tives within a predefined timeframe
(c)	 pertains to purchasing of external goods and services that are the 
result of economic activities that are aligned with the Taxonomy 
and individual measures that makes it possible to become low-
carbon or lead to reduced greenhouse gas emissions, and indi-
vidual measures for building renovation in accordance with what 
is stated in the delegated acts. 
The precautionary approach was used in work to calculate expendi-
ture for relevant investments, which meant that in instances when 
doubts existed about whether expenditure met the requirements for 
contributions to the environmental objectives, these were not included 
in the calculation. Currently, no activities are covered by a CapEx plan.
In 2022, investment expenditure mainly consisted of the acquisition of 
forest land and the acquisition of wind farms. Investments in forestry 
management mainly consist of acquisitions of forest land in the Baltic 
region and Sweden. Costs also include investments in forest roads, 
capitalized forest management and lease contracts linked to forestry 
machines. Since SCA’s forestry management is deemed to meet 
the technical screening criteria, these investments are considered 
aligned. SEK 100m of the CapEx for wind farm acquisitions was 
financed through green bonds.
Other investment expenditure encompasses increased tall oil produc-
tion and the construction of a new container port. Some major building 
renovation that meets the requirements of minimum energy perfor-
mance, and therefore is considered to meet the technical screening 
criteria and is aligned, was undertaken during the year. Some invest-
ments were also made to improve the production and delivery of 
­electricity and district heating.
Ta xonomy tables
171
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

OpEx
Substantial contribution criteria
DNSH criteria (Does Not Signifi-
cantly Harm)
Minimum safeguards
Taxonomy- 
aligned  
proportion 
of OpEx,  
year N 
Taxonomy- 
aligned  
proportion 
of OpEx,  
year N-1 
Category (enabling activity)
Category (transitional activity)
Economic activities
Code(s)
Absolute 
OpEx
Proportion of OpEx
Climate change mitigation
Climate change adaptation
Water and marine resources
Circular economy
Pollution
Biodiversity and ecosystems
Climate change mitigation
Climate change adaptation
Water and marine resources
Circular economy
Pollution
Biodiversity and ecosystems
 
SEKm
%
%
%
%
%
%
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities 
(Taxonomy-aligned)
 
Forest management
1.3
305
24%
100%
N/A
N/A
N/A
N/A
Y
Y
Y
Y
Y
Y
Y
24%
N/A
Manufacture of biogas and biofuels for use in 
transport and of bioliquids
4.13
3
<1%
100%
N/A
N/A
N/A
N/A
Y
Y
Y
Y
Y
Y
Y
<1%
N/A
District heating/cooling distribution
 4.15
11
1%
100%
N/A
N/A
N/A
N/A
Y
Y
Y
Y
Y
Y
Y
1%
N/A
Cogeneration of heat/cool and power from 
bioenergy
4.20
12
1%
100%
N/A
N/A
N/A
N/A
Y
Y
Y
Y
Y
Y
Y
1%
N/A
Freight rail transport
6.2 
2
<1%
100%
N/A
N/A
N/A
N/A
Y
Y
Y
Y
Y
Y
Y
<1%
N/A
OpEx of environmentally sustainable activities 
(Taxonomy-aligned) (A.1)
 
333
26%
26%
N/A
A.2. Taxonomy-eligible but not environmentally 
sustainable activities (not Taxonomy-aligned 
activities)
 
Sea and coastal freight water transport, vessels for 
port operations and auxiliary activities
6.10 
33
3%
Installation, maintenance and repair of energy 
efficiency equipment
7.3 
1
<1%
OpEx of Taxonomy-eligible but not 
environmentally sustainable activities (not 
Taxonomy-aligned activities) (A.2)
34
3%
Total (A.1 + A.2)
367
29%
26%
N/A
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities (B)
907
71%
Total (A + B) 
1,274
100%
Operating expenditure includes, in accordance with the Taxonomy’s 
definition, direct costs that are not recognized as assets and that 
­concern research and development, renovation of buildings, current 
leases, maintenance and repairs and other direct operating expendi-
tures that concern daily maintenance required to ensure the continued 
operation and appropriate function of tangible fixed assets. 
Since this is the first year reporting the proportion of Taxono-
my-aligned activities, no outcome is given for the comparative year, 
which is in accordance with disclosure requirements. The assessment 
was based on the activities and criteria described in the delegated 
acts for the EU Taxonomy and that currently encompasses the two 
first environmental objectives. In 2022, no operating expenditure was 
identified that contributes toward the second environmental objective, 
Climate change adaptation.
For the purpose of assessing the Taxonomy-eligible operating expen-
diture that meets the criteria, calculations were conducted of the 
­operating expenditure that meets any of the criteria a–c:
(a)	 pertains to assets or processes linked to the company’s economic 
activities that are currently Taxonomy-eligible 
(b)	is part of a plan to increase the company’s economic activities that 
are Taxonomy-eligible or make it possible for economic activities 
that are Taxonomy-eligible to contribute to environmental objec-
tives within a predefined timeframe
(c)	 pertains to purchasing of external goods and services that are the 
result of economic activities that are aligned with the Taxonomy 
and individual measures that makes it possible to become low-
carbon or lead to reduced greenhouse gas emissions, and indi-
vidual measures for building renovation in accordance with what 
is stated in the delegated acts. 
Only accounts that contain operating expenditure of at least SEK 1m 
were taken into consideration when calculating category c) above. In 
evaluating these accounts, only invoices of at least SEK 100,000 were 
taken into consideration. The precautionary approach was used in the 
work to calculate operating expenditure, which meant that in instances 
when doubts existed about whether operating expenditure met the 
requirements for contributions to the environmental objectives, these 
were not included in the calculation.
In 2022, most of Taxonomy-eligible operating expenditure comprised 
other direct operating expenditure. 
The main operating expenditure classified as aligned comprises forest 
management measures in own forest such as costs for thinning, 
planting and site preparation. In addition, there is also equipment 
maintenance to perform similar services on behalf of other forest 
owners. For energy production, maintenance costs were calculated as 
a share of the facility’s total maintenance costs based on the need for 
maintenance for the facility’s different departments. Both forest man-
agement and energy production are deemed to be aligned since this 
operating expenditure is linked to activities that are considered as 
aligned with the technical screening criteria.
Operating expenditure linked to own vessels was included as eligible 
but not aligned, since the vessels have CO2 emissions that do not 
meet the technical screening criteria. Certain expenditure for minor 
property maintenance was considered as only eligible since these 
were relatively insignificant.
Ta xonomy tables
172
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

SCA publishes a sustainability report each year. The Annual 
Report for 2022 will be published on March 7, 2023. 
Sustainability work is integrated into the Group’s operations 
and the Sustainability Report in accordance with the Annual 
Accounts Act constitutes part of SCA’s Annual Report for 2022. 
Areas covered by the legislative requirements are clarified in the 
Board of Directors’ Report. The Sustainability Report was sub-
mitted to the external auditor together with the Annual Report, 
refer to the auditor’s report.
SCA’s 2022 Sustainability Report is prepared in accordance with 
the Global Reporting Initiative (GRI) Standards, GRI 1, Founda-
tion 2021. The sustainability information in the Annual Report 
was reviewed by external auditors, see the Auditor’s Report. The 
sustainability review does not include the review of SCA’s remu-
neration report, with the exception of the portion pertaining to 
GRI 2-21 Annual total compensation ratio.
SCA reports information in accordance with the Task Force on 
Climate-related Financial Disclosures, TCFD’s recommenda-
tions, see the Board of Directors’ Report on page 73.
The sustainability report also contains information about how 
SCA works with the UN Global Compact’s Ten Principles in the 
areas of human rights, working conditions, the environment and 
anti-corruption. 
Boundary of the report
The Sustainability Report covers the SCA Group, including 
wholly owned subsidiaries and subsidiaries in which SCA owns 
at least 50% of the company, see Note F1 and for countries 
included, see table TB1:1 under Financial notes. If SCA owns 
50% or more of a company, the entire company is included in 
the report. Divested and acquired operations are included for 
the part of the year the operations were owned by the company. 
Environmental data and resource use is stipulated for the manu-
facturing units, meaning for pulp and paper mills and for saw-
mills, building materials and pellets manufacturing. Social data 
is stipulated for the entire Group and pertains to own employees 
unless otherwise stated.
As the report is prepared in accordance with the GRI Standards, 
the materiality principle has had great significance. This means 
that the report’s content is determined by the issues that are 
most relevant to SCA and its stakeholders, and that the content 
provides a complete view of the operations. The choice of GRI 
disclosure numbers is based on the materiality analysis con-
ducted, see the Materiality analysis section.
Data collection
Data provided in the report is compiled through various systems, 
primarily the Group’s accounting system, Resource Manage-
ment System (RMS), forest planning systems, SCA’s HR system 
and Afa’s Occupational health and safety information systems 
(the IA systems). Since assumptions and conversion factors may 
be required for certain calculations, this entails a source of 
uncertainty. SCA strives to obtain data that is as reliable as 
­possible.
The RMS system describes how the company uses energy, 
water, transport and raw materials and generates waste and 
emissions. RMS data is used for internal control, monitoring and 
analysis, life cycle assessments and external benchmarking. 
RMS data is reported at unit level using direct measurements 
and inventories.
Energy consumption is calculated in various ways, for example 
through direct measurements of consumption or by calculating 
based on fuel consumption. The conversion factors used are 
obtained from suppliers or from literature.
In 2019, SCA developed a model that describes the total climate 
benefit for a forestry company and that has also been used by 
other companies in the industry. For more information, visit sca.
com in the Our climate benefit section. SCA uses this model to 
calculate its climate benefit.
When measuring, analyzing and reporting emissions of CO2 and 
other greenhouse gases, SCA uses the global Greenhouse Gas 
Protocol standard for most of its calculations. For other environ-
ment data, SCA applies recognized measurement and calcula-
tion standards, including the Swedish Standards Institute, the 
Swedish Environmental Protection Agency and the International 
Energy Agency’s factors. The climate effect is stated in the 
Annual Report as CO2 and refers to CO2e unless otherwise 
­specified. 
Emissions from transportation are calculated based on total 
transport performed per mode of transport for delivered prod-
ucts, raw materials and input goods. Emissions are calculated 
by multiplying transportation per transport mode (expressed as 
tonne kilometers) by typical emission factors for the different 
modes of transportation. The emission factors used are based 
on data from the Network for Transportation Measures (NTM) 
(www.transportmeasures.org). For transportation with SCA’s 
own vessels and leased vessels, the actual fuel consumption 
and load utilization is used.
Personnel-related data is mainly provided by SCA’s HR system. 
Supporting qualitative data is gathered in SCA’s database for 
sustainability data. The IA systems are used for reporting and 
following-up work-related injuries and incidents at every unit 
within the Group. Reporting also encompasses contractors who 
conduct work on SCA’s sites. The systems are also used for pre-
ventive reporting of risk observations. A new system has been 
developed by SCA to report observations of safe and unsafe 
behavior, BBS, as an aid to develop a health and safety culture 
in the company. The statistics are aggregated to Group level.
When adjustments have been made compared with earlier years, 
a note is made directly beside the chart or table.
About the Sustainability Report
About the Sustainabilit y Report
173
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

Signatures
The Board’s assessment is that the dividend to shareholders in the 
proposed amount, in accordance with Note PC15, see page 138, is 
justifiable taking into account the requirements, on both the company 
and the Group, the nature of the business, its scope and risks place 
on the size of equity and also considering consolidation requirements, 
liquidity and other status. The financial position remains good after 
the proposed dividend and is considered sufficient to ensure that 
the company can fulfill its short or long-term obligations, and has 
the opportunity to make any necessary investments. 
The Annual and Sustainability Report and the consolidated financial 
statements have been approved for publication by the Board of Direc-
tors on March 1, 2023. The Group’s income statement and balance 
sheet and the Parent Company’s income statement and balance sheet 
will be presented for approval at the Annual General Meeting on 
March 30, 2023.
The Board of Directors and President and CEO declare that the consol-
idated financial statements have been prepared in accordance with the 
International Financial Reporting Standards adopted by the EU and 
that disclosures herein give a true and fair view of the Group’s financial 
position and results of operations. The Parent Company’s financial 
statements have been prepared in accordance with generally accepted 
accounting principles in Sweden and give a true and fair view of the 
Parent Company’s financial position and results of operations. The 
statutory Board of Directors’ Report provides a fair review of the Parent 
Company’s and Group’s operations, financial position and results of 
operations and describes material risks and uncertainties facing the 
Parent Company and the companies included in the Group. 
The Annual Report also contains the Group’s and Parent Company’s 
sustainability reporting in accordance with the Swedish Annual 
Accounts Act, Chapter 6, see page 64, and the Sustainability Report 
in accordance with the Global Reporting Initiative, GRI, see the GRI 
index on pages 182–183. 
Sundsvall, March 1, 2023
Pär Boman
Chairman of the Board
Niclas Andersson
Board member, 
appointed by the employees
Åsa Bergman
Board member
Roger Boström
Board member, 
appointed by the employees
Lennart Evrell
Board member
Annemarie Gardshol
Board member
Carina Håkansson
Board member
Maria Jonsson
Board member, 
appointed by the employees
Martin Lindqvist
Board member
Anders Sundström
Board member
Barbara Milian Thoralfsson
Board member
Karl Åberg
Board member
Ulf Larsson
President and CEO,  
and Board member
Our audit report was submitted on March 3, 2023
Ernst & Young AB
Fredrik Norrman
Authorized Public Accountant  
Auditor in charge
Signatures
174
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

Auditor’s report
To the general meeting of the shareholders of Svenska Cellulosa Aktiebolaget SCA (publ), corporate identity number 556012-6293.
Report on the annual accounts and consolidated accounts
Opinions
We have audited the annual accounts and consolidated accounts of 
Svenska Cellulosa Aktiebolaget SCA (publ) for the year 2022 except 
for the corporate governance statement on pages 74–83 and the sus-
tainability report defined on page 64. The annual accounts and con-
solidated accounts of the company are included on pages 84–138 and 
page 174 in this document.
In our opinion, the annual accounts have been prepared in accordance 
with the Annual Accounts Act and present fairly, in all material 
respects, the financial position of the parent company as of December 
31, 2022 and its financial performance and cash flow for the year then 
ended in accordance with the Annual Accounts Act. The consolidated 
accounts have been prepared in accordance with the Annual Accounts 
Act and present fairly, in all material respects, the financial position of 
the group as of December 31, 2022 and their financial performance and 
cash flow for the year then ended in accordance with International 
Financial Reporting Standards (IFRS), as adopted by the EU, and the 
Annual Accounts Act. Our opinions do not cover the corporate gover-
nance statement on pages 74–83 and the sustainability report on page 
64. The statutory administration report is consistent with the other 
parts of the annual accounts and consolidated accounts.
We therefore recommend that the general meeting of shareholders 
adopts the income statement and balance sheet for the parent com-
pany and the group.
Our opinions in this report on the annual accounts and consolidated 
accounts are consistent with the content of the additional report that 
has been submitted to the parent company’s audit committee in 
accordance with the Audit Regulation (537/2014) Article 11.
Basis for Opinions
We conducted our audit in accordance with International Standards on 
Auditing (ISA) and generally accepted auditing standards in Sweden. 
Our responsibilities under those standards are further described in the 
Auditor’s Responsibilities section. We are independent of the parent 
company and the group in accordance with professional ethics for 
accountants in Sweden and have otherwise fulfilled our ethical respon-
sibilities in accordance with these requirements. This includes that, 
based on the best of our knowledge and belief, no prohibited services 
referred to in the Audit Regulation (537/2014) Article 5.1 have been pro-
vided to the audited company or, where applicable, its parent company 
or its controlled companies within the EU.
We believe that the audit evidence we have obtained is sufficient and 
appropriate to provide a basis for our opinions.
Key Audit Matters
Key audit matters of the audit are those matters that, in our profes-
sional judgment, were of most significance in our audit of the annual 
accounts and consolidated accounts of the current period. These 
matters were addressed in the context of our audit of, and in forming 
our opinion thereon, the annual accounts and consolidated accounts 
as a whole, but we do not provide a separate opinion on these mat-
ters. For each matter below, our description of how our audit 
addressed the matter is provided in that context. 
We have fulfilled the responsibilities described in the Auditor’s respon-
sibilities for the audit of the financial statements section of our report, 
including in relation to these matters. Accordingly, our audit included 
the performance of procedures designed to respond to our assess-
ment of the risks of material misstatement of the financial statements. 
The results of our audit procedures, including the procedures per-
formed to address the matters below, provide the basis for our audit 
opinion on the accompanying financial statement.
Forest valuation
Description
How our audit addressed this key audit matter
The Group values its forest assets at fair value in accordance with IAS 16 and 
IAS 41. The group’s forest assets are divided into biological assets where the 
change in value is recognized as operating profit in accordance with IAS 41 
Agriculture, and into land assets accounted for with the revaluation model 
and where the change in value is reported as other comprehensive income in 
accordance with IAS 16 Property, Plant and Equipment.
The fair value of the group’s total forest assets are determined based on 
transactions in the areas where SCA owns forest land and the calculated 
standing timber volumes, to then be split based on cash flows relating to the 
two assets. The valuation is classified as level 3 in accordance with IFRS 13. 
A description of the valuation of forest assets and important assumptions are 
presented in note D3.
As of December 31, 2022, the forest (biological assets) has been disclosed 
at a value of SEK 55 581 million and land assets at a value of SEK 31 188 mil-
lion, totaling SEK 97 882 million which is 71,2% of the group’s total assets. 
The valuation process is complex as it requires judgement and assump-
tions in terms of market statistics, timber volumes and the future discounted 
cash flows determining the split between land- and biological assets. 
Significant judgmental areas include the areas and period of the market 
statistics, calculated timber volumes, discount rates and cash flows. Based 
on the above, we consider that the valuation of the group’s forest assets to be 
a Key Audit Matter.
Our audit procedures have included, among others, the following audit 
­procedures:
•	Reviewed and audited the group’s process and method for valuating forest 
assets and the splitting of total fair value between land- and biological 
assets. 
•	Reviewed the third party suppliers of market statistics and assessed the 
reliability of this data. 
•	Reviewed and audited the calculation of timber volumes
•	For the split between land- and biological assets we have, together with our 
valuation experts, further:
•	Reviewed the discount rate 
•	Assessed the judgement applied in the cash flow models such as what 
costs and income are included and the assumed inflation rate. 
•	Reviewed the indata in the cash flow models against accounting records 
and supporting evidence. For the input in the model based on forecasts, 
we have assessed the reasonability in applied judgement and in order to 
assess the reliability of previous forecasts by comparing to historical 
­outcome. 
•	Assessed the group’s sensitivity analysis (parameters and arithmetically) 
and computed our own sensitivity analysis. 
Finally we have assessed whether related disclosures are appropriate.
Auditor’s report
175
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

Other Information than the annual accounts and 
consolidated accounts
This document also contains other information than the annual 
accounts and consolidated accounts and is found on pages 1–59, 
139–173 and 182–190. The remuneration report for the financial year 
2022 also constitutes other information. It is the Board of Directors 
and the CEO who are responsible for this other information. 
Our opinion on the annual accounts and consolidated accounts does 
not cover this other information and we do not express any form of 
assurance conclusion regarding this other information.
In connection with our audit of the annual accounts and consolidated 
accounts, our responsibility is to read the information identified above 
and consider whether the information is materially inconsistent with 
the annual accounts and consolidated accounts. In this procedure we 
also take into account our knowledge otherwise obtained in the audit 
and assess whether the information otherwise appears to be materi-
ally misstated.
If we, based on the work performed concerning this information, con-
clude that there is a material misstatement of this other information, 
we are required to report that fact. We have nothing to report in this 
regard.
Responsibilities of the Board of Directors and the CEO
The Board of Directors and the CEO are responsible for the prepara-
tion of the annual accounts and consolidated accounts and that they 
give a fair presentation in accordance with the Annual Accounts Act 
and, concerning the consolidated accounts, in accordance with IFRS 
as adopted by the EU. The Board of Directors and the CEO are also 
responsible for such internal control as they determine is necessary to 
enable the preparation of annual accounts and consolidated accounts 
that are free from material misstatement, whether due to fraud or error.
In preparing the annual accounts and consolidated accounts, The 
Board of Directors and the CEO are responsible for the assessment of 
the company’s and the group’s ability to continue as a going concern. 
They disclose, as applicable, matters related to going concern and 
using the going concern basis of accounting. The going concern basis 
of accounting is however not applied if the Board of Directors and the 
CEO intends to liquidate the company, to cease operations, or has no 
realistic alternative but to do so.
The Audit Committee shall, without prejudice to the Board of Direc-
tor’s responsibilities and tasks in general, among other things oversee 
the company’s financial reporting process.
Auditor’s responsibility
Our objectives are to obtain reasonable assurance about whether the 
annual accounts and consolidated accounts as a whole are free from 
material misstatement, whether due to fraud or error, and to issue an 
auditor’s report that includes our opinions. Reasonable assurance is a 
high level of assurance, but is not a guarantee that an audit conducted 
in accordance with ISAs and generally accepted auditing standards in 
Sweden will always detect a material misstatement when it exists. 
Misstatements can arise from fraud or error and are considered mate-
rial if, individually or in the aggregate, they could reasonably be 
expected to influence the economic decisions of users taken on the 
basis of these annual accounts and consolidated accounts.
As part of an audit in accordance with ISAs, we exercise professional 
judgment and maintain professional skepticism throughout the audit. 
We also:
•	Identify and assess the risks of material misstatement of the annual 
accounts and consolidated accounts, whether due to fraud or error, 
design and perform audit procedures responsive to those risks, and 
obtain audit evidence that is sufficient and appropriate to provide a 
basis for our opinions. The risk of not detecting a material misstate-
ment resulting from fraud is higher than for one resulting from error, 
as fraud may involve collusion, forgery, intentional omissions, mis-
representations, or the override of internal control.
•	Obtain an understanding of the company’s internal control relevant 
to our audit in order to design audit procedures that are appropriate 
in the circumstances, but not for the purpose of expressing an 
opinion on the effectiveness of the company’s internal control. 
•	Evaluate the appropriateness of accounting policies used and the 
reasonableness of accounting estimates and related disclosures 
made by the Board of Directors and the CEO. 
•	Conclude on the appropriateness of the Board of Directors’ and the 
CEO’s use of the going concern basis of accounting in preparing the 
annual accounts and consolidated accounts. We also draw a con-
clusion, based on the audit evidence obtained, as to whether any 
material uncertainty exists related to events or conditions that may 
cast significant doubt on the company’s and the group’s ability to 
continue as a going concern. If we conclude that a material uncer-
tainty exists, we are required to draw attention in our auditor’s report 
to the related disclosures in the annual accounts and consolidated 
accounts or, if such disclosures are inadequate, to modify our 
opinion about the annual accounts and consolidated accounts. Our 
conclusions are based on the audit evidence obtained up to the date 
of our auditor’s report. However, future events or conditions may 
cause a company and a group to cease to continue as a going 
­concern.
•	Evaluate the overall presentation, structure and content of the annual 
accounts and consolidated accounts, including the disclosures, and 
whether the annual accounts and consolidated accounts represent 
the underlying transactions and events in a manner that achieves fair 
presentation.
•	Obtain sufficient and appropriate audit evidence regarding the finan-
cial information of the entities or business activities within the group 
to express an opinion on the consolidated accounts. We are respon-
sible for the direction, supervision and performance of the group 
audit. We remain solely responsible for our opinions. 
We must inform the Board of Directors of, among other matters, the 
planned scope and timing of the audit. We must also inform of signifi-
cant audit findings during our audit, including any significant deficien-
cies in internal control that we identified.
We must also provide the Board of Directors with a statement that we 
have complied with relevant ethical requirements regarding indepen-
dence, and to communicate with them all relationships and other mat-
ters that may reasonably be thought to bear on our independence, 
and, where applicable, measures taken to eliminate the threats or 
countermeasures that have been taken.
From the matters communicated with the Board of Directors, we 
determine those matters that were of most significance in the audit of 
the annual accounts and consolidated accounts, including the most 
important assessed risks for material misstatement, and are therefore 
the key audit matters. We describe these matters in the auditor’s 
report unless law or regulation precludes disclosure about the matter. 
Auditor’s report
176
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

Report on other legal and regulatory requirements
Report on the audit of the administration and the 
proposed appropriations of the company’s profit 
or loss
Opinions
In addition to our audit of the annual accounts and consolidated 
accounts, we have also audited the administration of the Board of 
Directors and the CEO of Svenska Cellulosa Aktiebolaget SCA (publ) 
for the year 2022 and the proposed appropriations of the company’s 
profit or loss.
We recommend to the general meeting of shareholders that the profit 
be appropriated in accordance with the proposal in the statutory 
administration report and that the members of the Board of Directors 
and the CEO be discharged from liability for the financial year.
Basis for opinions
We conducted the audit in accordance with generally accepted 
auditing standards in Sweden. Our responsibilities under those stan-
dards are further described in the Auditor’s Responsibilities section. 
We are independent of the parent company and the group in accor-
dance with professional ethics for accountants in Sweden and have 
otherwise fulfilled our ethical responsibilities in accordance with these 
requirements.
We believe that the audit evidence we have obtained is sufficient and 
appropriate to provide a basis for our opinions.
Responsibilities of the Board of Directors and the CEO
The Board of Directors is responsible for the proposal for appropria-
tions of the company’s profit or loss. At the proposal of a dividend, this 
includes an assessment of whether the dividend is justifiable consid-
ering the requirements which the company’s and the group’s type of 
operations, size and risks place on the size of the parent company’s 
and the group’s equity, consolidation requirements, liquidity and posi-
tion in general.
The Board of Directors is responsible for the company’s organization 
and the administration of the company’s affairs. This includes among 
other things continuous assessment of the company’s and the group’s 
financial situation and ensuring that the company’s organization is 
designed so that the accounting, management of assets and the com-
pany’s financial affairs otherwise are controlled in a reassuring 
manner. The CEO shall manage the ongoing administration according 
to the Board of Directors’ guidelines and instructions and among other 
matters take measures that are necessary to fulfill the company’s 
accounting in accordance with law and handle the management of 
assets in a reassuring manner.
Auditor’s responsibility
Our objective concerning the audit of the administration, and thereby 
our opinion about discharge from liability, is to obtain audit evidence 
to assess with a reasonable degree of assurance whether any member 
of the Board of Directors or the CEO in any material respect:
•	has undertaken any action or been guilty of any omission which can 
give rise to liability to the company, or
•	in any other way has acted in contravention of the Companies Act, 
the Annual Accounts Act or the Articles of Association.
Our objective concerning the audit of the proposed appropriations of 
the company’s profit or loss, and thereby our opinion about this, is to 
assess with reasonable degree of assurance whether the proposal is 
in accordance with the Companies Act.
Reasonable assurance is a high level of assurance, but is not a guar-
antee that an audit conducted in accordance with generally accepted 
auditing standards in Sweden will always detect actions or omissions 
that can give rise to liability to the company, or that the proposed 
appropriations of the company’s profit or loss are not in accordance 
with the Companies Act.
As part of an audit in accordance with generally accepted auditing 
standards in Sweden, we exercise professional judgment and main-
tain professional skepticism throughout the audit. The examination of 
the administration and the proposed appropriations of the company’s 
profit or loss is based primarily on the audit of the accounts. Additional 
audit procedures performed are based on our professional judgment 
with starting point in risk and materiality. This means that we focus the 
examination on such actions, areas and relationships that are material 
for the operations and where deviations and violations would have 
particular importance for the company’s situation. We examine and 
test decisions undertaken, support for decisions, actions taken and 
other circumstances that are relevant to our opinion concerning dis-
charge from liability. As a basis for our opinion on the Board of Direc-
tors’ proposed appropriations of the company’s profit or loss we 
examined the Board of Directors’ reasoned statement and a selection 
of supporting evidence in order to be able to assess whether the pro-
posal is in accordance with the Companies Act.
The auditor’s examination of the ESEF report
Opinion
In addition to our audit of the annual accounts and consolidated 
accounts, we have also examined that the Board of Directors and the 
CEO have prepared the annual accounts and consolidated accounts 
in a format that enables uniform electronic reporting (the Esef report) 
pursuant to Chapter 16, Section 4(a) of the Swedish Securities Market 
Act (2007:528) for Svenska Cellulosa Aktiebolaget SCA AB for the 
financial year 2022. 
Our examination and our opinion relate only to the statutory require-
ments.
In our opinion, the ESEF report has been prepared in a format that, in 
all material respects, enables uniform electronic reporting.
Basis for opinion
We have performed the examination in accordance with FAR’s recom-
mendation RevR 18 Examination of the ESEF report. Our responsibility 
under this recommendation is described in more detail in the Auditors’ 
responsibility section. We are independent of Svenska Cellulosa 
Aktiebolaget SCA AB in accordance with professional ethics for 
accountants in Sweden and have otherwise fulfilled our ethical 
responsibilities in accordance with these requirements. 
We believe that the evidence we have obtained is sufficient and appro-
priate to provide a basis for our opinion.
Auditor’s report
177
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

Responsibilities of the Board of Directors and the CEO
The Board of Directors and the CEO are responsible for the prepara-
tion of the Esef report in accordance with Chapter 16, Section 4(a) of 
the Swedish Securities Market Act (2007:528), and for such internal 
control that the Board of Directors and the CEO determine is neces-
sary to prepare the Esef report without material misstatements, 
whether due to fraud or error.
Auditor’s responsibility
Our responsibility is to obtain reasonable assurance whether the Esef 
report is in all material respects prepared in a format that meets the 
requirements of Chapter 16, Section 4(a) of the Swedish Securities 
Market Act (2007:528), based on the procedures performed.
RevR 18 requires us to plan and execute procedures to achieve rea-
sonable assurance that the Esef report is prepared in a format that 
meets these requirements. 
Reasonable assurance is a high level of assurance, but it is not a guar-
antee that an engagement carried out according to RevR 18 and gen-
erally accepted auditing standards in Sweden will always detect a 
material misstatement when it exists. Misstatements can arise from 
fraud or error and are considered material if, individually or in aggre-
gate, they could reasonably be expected to influence the economic 
decisions of users taken on the basis of the Esef report. 
The audit firm applies ISQC 1 Quality Control for Firms that Perform 
Audits and Reviews of Financial Statements, and other Assurance and 
Related Services Engagements and accordingly maintains a compre-
hensive system of quality control, including documented policies and 
procedures regarding compliance with professional ethical require-
ments, professional standards and legal and regulatory requirements.
The examination involves obtaining evidence, through various proce-
dures, that the Esef report has been prepared in a format that enables 
uniform electronic reporting of the annual and consolidated accounts. 
The procedures selected depend on the auditor’s judgment, including 
the assessment of the risks of material misstatement in the report, 
whether due to fraud or error. In carrying out this risk assessment, and 
in order to design audit procedures that are appropriate in the circum-
stances, the auditor considers those elements of internal control that 
are relevant to the preparation of the Esef report by the Board of 
Directors and the CEO, but not for the purpose of expressing an 
opinion on the effectiveness of those internal controls. The examina-
tion also includes an evaluation of the appropriateness and reason-
ableness of assumptions made by the Board of Directors and the 
CEO. 
The procedures mainly include a technical validation of the Esef 
report, i.e. if the file containing the Esef report meets the technical 
specification set out in the Commission’s Delegated Regulation (EU) 
2019/815 and a reconciliation of the Esef report with the audited 
annual accounts and consolidated accounts.
Furthermore, the procedures also include an assessment of whether 
the Group’s consolidated Income statement, balance sheet, state-
ment of change in equity, cash flow statement and notes has been 
marked with iXBRL in accordance with the ESEF regulation.
The auditor’s examination of the corporate 
governance statement
The Board of Directors is responsible for that the corporate gover-
nance statement on pages 74–83 has been prepared in accordance 
with the Annual Accounts Act.
Our examination of the corporate governance statement is conducted 
in accordance with FAR´s auditing standard RevR 16 The auditor´s 
examination of the corporate governance statement. This means that 
our examination of the corporate governance statement is different 
and substantially less in scope than an audit conducted in accordance 
with International Standards on Auditing and generally accepted 
auditing standards in Sweden. We believe that the examination has 
provided us with sufficient basis for our opinions.
A corporate governance statement has been prepared. Disclosures in 
accordance with chapter 6 section 6 the second paragraph points 2–6 
of the Annual Accounts Act and chapter 7 section 31 the second para-
graph the same law are consistent with the other parts of the annual 
accounts and consolidated accounts and are in accordance with the 
Annual Accounts Act.
The auditor’s opinion regarding the statutory 
sustainability report
The Board of Directors is responsible for the statutory sustainability 
report on page 64 with references, and that it is prepared in accor-
dance with the Annual Accounts Act. 
Our examination has been conducted in accordance with FAR’s 
auditing standard RevR 12 The auditor´s opinion regarding the statu-
tory sustainability report. This means that our examination of the stat-
utory sustainability report is different and substantially less in scope 
than an audit conducted in accordance with International Standards 
on Auditing and generally accepted auditing standards in Sweden. We 
believe that the examination has provided us with sufficient basis for 
our opinion.
A statutory sustainability report has been prepared.
Ernst & Young AB, with Fredrik Norrman as auditor-in-charge, was 
appointed auditor of Svenska Cellulosa Aktiebolaget AB by the gen-
eral meeting of the shareholders on March 31st, 2022 and has been 
the company’s auditor since 2016.
Stockholm March 3, 2023
Ernst & Young AB
Fredrik Norrman
Authorized Public Accountant
Auditor’s report
178
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

Limited Assurance Report 
on the Sustainability Report
This is the translation of the auditor’s report in Swedish.
Auditor’s Limited Assurance Report on  
Svenska Cellulosa Aktiebolaget SCA’s Sustainability Report
To Svenska Cellulosa Aktiebolaget SCA, corporate, identity number 556012-6293
Introduction
We have been engaged by the Board of Directors of Svenska Cellu-
losa Aktiebolaget SCA to undertake a limited assurance engagement 
of Svenska Cellulosa Aktiebolaget SCA’s Sustainability Report for the 
year 2022. The company has defined the scope of the Sustainability 
Report to the areas referred to in the GRI Index on pages 182–183.
Responsibilities of the Board of Directors and the 
Executive Management for the Sustainability Report
The Board of Directors and the Executive Management are respon-
sible for the preparation of the Sustainability Report in accordance 
with the applicable criteria, as explained on page 173, and are the 
parts of the Sustainability Reporting Guidelines published by GRI 
(Global Reporting Initiative) that are applicable to the Sustainability 
Report, as well as the accounting and calculation principles that the 
Company has developed (GRI 2021). This responsibility also includes 
the internal control relevant to the preparation of a Sustainability 
Report that is free from material misstatements, whether due to fraud 
or error. 
Responsibilities of the Auditor 
Our responsibility is to express a conclusion on the Sustainability 
Report based on the limited assurance procedures we have per-
formed. Our review is limited to the information in this document and 
to the historical information and does therefore not include future ori-
ented information.
We conducted our limited assurance engagement in accordance with 
ISAE 3000 (revised) Assurance engagements other than audits or 
reviews of historical financial information. A limited assurance engage-
ment consists of making inquiries, primarily of persons responsible for 
the preparation of the Sustainability Report and applying analytical 
and other limited assurance procedures. The procedures performed 
in a limited assurance engagement vary in nature from, and are less in 
scope than for, a reasonable assurance engagement conducted in 
accordance with IAASB’s Standards on Auditing and other generally 
accepted auditing standards. 
The firm applies ISQC 1 (International Standard on Quality Control) 
and accordingly maintains a comprehensive system of quality control 
including documented policies and procedures regarding compliance 
with ethical requirements, professional standards and applicable legal 
and regulatory requirements. We are independent of Svenska Cellu-
losa Aktiebolaget SCA in accordance with professional ethics for 
accountants in Sweden and have otherwise fulfilled our ethical 
responsibilities in accordance with these requirements. 
The procedures performed, consequently, do not enable us to obtain 
assurance that we would become aware of all significant matters that 
might be identified in a reasonable assurance engagement. Accord-
ingly, we do not express a reasonable assurance conclusion.
Our procedures are based on the criteria defined by the Board of 
Directors and the Executive Management as described above. We 
consider these criteria suitable for the preparation of the Sustainability 
Report. We believe that the evidence we have obtained is sufficient 
and appropriate to provide a basis for our conclusion below. 
Conclusion
Based on the limited assurance procedures we have performed, 
nothing has come to our attention that causes us to believe that the 
Sustainability Report is not prepared, in all material respects, in accor-
dance with the criteria defined by the Board of Directors and Execu-
tive Management. 
Stockholm March 3, 2023
Ernst & Young AB
	
Fredrik Norrman	
Charlotte Söderlund
	
Authorized Public Accountant 	
Authorized Public Accountant
Limited Assur ance Report on the Sustainabilit y Report
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SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

Remuneration Report 2022
to be presented at the 2023 AGM
Introduction
This report describes how the guidelines for remuneration of senior 
executives of Svenska Cellulosa Aktiebolaget SCA (publ) (“SCA”), as 
resolved by the 2022 Annual General Meeting, were applied in 2022. 
The report also contains information about the remuneration of the 
President and CEO. The report was prepared in accordance with the 
Swedish Companies Act and the Swedish Corporate Governance 
Board’s Rules on Remuneration of the Board and Executive Manage-
ment and on Incentive Programmes, now administered by the Stock 
Market Self-Regulation Committee (ASK).
Further information concerning remuneration of senior executives is 
available in Notes C1–C5 on pages 101–106 of the 2022 Annual 
Report. Information concerning the work of the Remuneration Com-
mittee in 2022 can be found in the Corporate Governance Report on 
pages 74–83 of the 2022 Annual Report. Remuneration of the Board is 
not covered by this report. Such remuneration is decided each year by 
the Annual General Meeting and is presented in Note C4 on page 104 
of the 2022 Annual Report.
Company’s performance in 2022
The President and CEO summarizes the company’s earnings in his 
statement on pages 8–9 of the 2022 Annual Report.
The company’s remuneration guidelines: area of application, 
purpose and deviations
A prerequisite for the successful implementation of the company’s 
business strategy and safeguarding of its long-term interests, 
including its sustainability, is that the company is able to recruit, moti-
vate and retain qualified personnel through competitive remuneration 
in line with market levels. The company’s remuneration guidelines 
make it possible to offer senior executives competitive total remunera-
tion in line with market levels. According to the remuneration guide-
lines, total remuneration to senior executives is to be competitive in 
the senior manager’s field of profession and also reflect the manager’s 
responsibility, authority and performance. Remuneration may consist 
of the following components: fixed salary, variable salary, other bene-
fits and pension. Variable remuneration shall be based on the outcome 
of short-term and long-term goals, comprising financial goals, goals 
that contribute to such, or to the value development of the company’s 
share. Variable remuneration shall aim at promoting the company’s 
business strategy and long- term interests, including its sustainability.
The guidelines and information regarding their application is available 
on pages 101–102 of the 2022 Annual Report. In 2022, the company 
has complied with the applicable remuneration guidelines as adopted 
by the Annual General Meeting. No deviations were made from the 
guidelines, nor were any deviations made from the decision-making 
process with regard to the determination of remuneration stated in the 
guidelines. The auditor’s statement on the company’s compliance with 
the guidelines is available on www.sca.com. No claims for the repay-
ment of remuneration were made.
Table 1. Remuneration of President and CEO
The table shows total remuneration (SEK) of the President and CEO in 2022
Fixed 
salary1)
Other 
­benefits2)
STI 
(one-year 
­variable 
­remuneration)3)
Supplementary 
STI (one-year 
variable 
­remuneration)4)
LTI 
(three-year 
variable 
remuneration)
Extra­ordinary 
remuneration
Pension 
costs5)
Total 
­remuneration
Distribution 
between fixed 
and variable 
remuneration 
­relative to total 
remuneration6)
Ulf Larsson 
(President 
and CEO)
2022
10,500,000
147,933
5,250,000
5,250,000
-
-
4,371,666
25,519,599
59%/41%
Application of performance criteria
Performance criteria for the President and CEO’s variable remunera-
tion were selected to realize the company’s strategy and to encourage 
behavior that promotes the company’s long-term interests. The choice 
of performance criteria took into account strategic targets and short 
and long-term business priorities for 2022.
Short Term Incentive Program
The performance criteria7) in the short-term incentive program (STI) 
for the President and CEO comprise profit for the period, EBITDA, 
operating cash flow, return on capital employed (ROCE) for SCA’s 
industrial operations, and the number of accidents with absence, 
Lost Time Accident (LTA) in the SCA Group.
1)	Fixed salary consists of base salary and vacation pay, paid in 2022.
2)	Vehicle benefits and health insurance. The table shows benefits expensed in 2022.
3)	The table reports STI pertaining to the 2022 fiscal year. Disbursements in 2023.
4)	The table reports Supplementary STI pertaining to the 2022 fiscal year. Supplementary STI replaces LTI during 2022. Disbursements in 2023.
5)	The pension costs pertain to the costs for defined contribution pension plans that affected profit for 2022. Supplementary health insurance is included in the costs.
6)	Calculated as (Fixed salary + Any other benefits + Pension costs)/Total remuneration. Calculated as (STI + Supplementary STI) /Total remuneration. The year’s 
­pension costs, which are exclusively calculated on Fixed salary, were reported in full as fixed remuneration.
7)	A definition of the performance criteria is presented on page 186 of the Annual Report.
Remuner ation report 2022
180
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

Table 2. Overview of the President and CEO’s short-term performance goals and goal achievement in 2022 (short-term variable remuneration) 
1
2
3
Ulf Larsson (President and CEO
Description of criteria attributable 
to the remuneration component
Relative weights of  
performance criteria
a)	 Measured performance
b)	 Actual remuneration outcome
Profit for the period
25%
a)	 6,821 MSEK
b)	 1,312.5 KSEK
EBITDA
20%
a)	 10,194 MSEK
b)	 1,050 KSEK
Operating cash flow
25%
a)	 5,685 MSEK
b)	 1,312.5 KSEK
Industrial return on capital 
employed
20%
a)	 40.1%
b)	 1,050 KSEK
LTA (accidents with absence)
10%
a)	 16 number
b)	 525 KSEK
Table 3. Overview of the President and CEO’s supplementary short-term variable program, financial targets and goal ­achievement in 2022 
1
2
3
Ulf Larsson (President and CEO)
Description of criteria attributable 
to the remuneration component
Relative weights of  
performance criteria
c)	 Measured performance
d)	 Actual remuneration outcome
EBITDA
44%
c)	 10,194 MSEK
d)	 2,310 KSEK
Operating cash flow
28%
c)	 5,685 MSEK
d)	 SEK 1,470,000
Industrial return on capital 
employed
28%
c)	 40.1%
d)	 1,470 KSEK
Comparative information on the development of the President and CEO’s remuneration, company performance and remuneration of 
other employees
Table 4. Comparison of President and CEO’s remuneration relative to the company’s financial performance and remuneration of other employees
Total remuneration 
2022
Change from previous 
year 2022/2021 
Change from previous 
year 2021/2020
Remuneration to President and CEO, Ulf Larsson (SEK)
25,519,599
2,500,742  11%
4,053,591    21%
SCA’s economic performance
– EBITDA (SEKm)
10,194
1,085  12%
5,716  268%
– Profit for the period (SEKm)
6,821 
720    12%
 5,334    795%
Average remuneration based on the number of full-time equivalent employees at 
SCA Group3) (SEK). Variable salary during the year comprises expensed amounts.
630,236 
15,306    2%
34,026      6%
Median based on the number of full-time equivalent employees at SCA Group4) 
(SEK). Variable salary during the year comprises expensed amounts.
586,779
12,691    2%
45,060      9%
As from 2022, comparative company is the entire SCA Group. In previous remuneration reports, SCA Forest Products AB has been used as comparative company. 
The parent company Svenska Cellulosa Aktiebolaget SCA (publ) only employs the President and CEO and other Group Management and has no other employees. 
Current and previous members of the Group Management have been excluded from the comparison between the remuneration of the President and CEO and 
other employees’ average remuneration.
Long Term Incentive Program
The President and CEO participates in the company’s long term cash-based 
incentive program (LTI), which was adopted by the Annual ­General Meeting 
2022. 
The LTI program’s performance conditions shall be based on a financial target 
consisting of the total return (“TSR”) on the company’s class B share for the 
financial years 2022, 2023 and 2024 (the “Performance Period”), which shall be 
measured to 60 percent in relation to a benchmark group of other companies1) 
and to 40 percent in relation to the OMXS30 index (the “TSR-condition), as well 
as a sustainability target related to increased climate benefit2) (million tonnes of 
CO2 equivalents), during the Performance Period (the “Sustainability 
­Condition”). The TSR-condition will be weighted 90 percent and the Sustain-
ability Condition 10 percent when payment of the cash remuneration is 
decided. For maximum payment, it is required that the TSR of the company’s 
class B share exceeds the weighted TSR outcome for the benchmark group 
and the OMXS30 index by at least 5 percentage points during the Performance 
Period. For maximum payment, it is required that the average annual climate 
benefit increases with 1.5 million tonnes CO2 equivalents during the Perfor-
mance Period compared to the average annual climate benefit during the years 
2019, 2020 and 2021 (the “Maximum Level”).
The payment of cash remuneration within the LTI program is linked to a require-
ment of investment in the SCA share, whereby all of the net outcome (after tax 
deductions) is to be used to buy shares in SCA, and a requirement that the 
acquired shares are retained for a period of at least three years after the acqui-
sition. Additional information concerning the company’s LTI program can be 
found in Note C3 on pages 101–103 of the 2022 Annual Report.
The evaluation period for the program covers the financial years 2022, 2023 
and 2024. Payment of cash remuneration under the program can therefore not 
be made until 2025.
Supplementary short-term incentive program 
For 2022, the Board of Directors resolved that the STI program should be sup-
plemented with an additional short-term program. The supplementary program 
is intended to function as a transition to LTI 2022–2024 which does not vest 
until 2025. The President and CEO participates in the company’s supplemen-
tary short-term incentive program. 
The targets in the supplementary short-term incentive program are solely 
financial and consists of EBITDA, operating cash flow and industrial return on 
capital employed.
1)	In 2022, the benchmark group of other companies comprised Holmen AB, Stora Enso OY, OPM-Kymmene OY and BillerudKorsnäs AB.
2)	A definition of climate benefit is presented on page 186 of the Annual Report.
3)	Refers to the SCA Group. Current and previous members of the Group Management have been excluded from the comparison between the remuneration of the 
­President and CEO and other employees.
4)	Refers to the SCA Group, including other senior executives, according to GRI-standard.
Remuner ation report 2022
181
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

GRI Index
SCA prepared its report in accordance with GRI Standards 2021 for the January 1, 2022–December 31, 2022 period.
Omission
GRI standard / other sources and disclosure
Page
Requirement(s) 
omitted
Reason
Explanation
GRI 2: General disclosures
Organization and its reporting practices
2-1
Organizational details
58–59, 96, 188
2-2
Entities included in the organization’s sustainability 
reporting
126 Note F1, 173
2-3
Reporting period, frequency and contact point
173, 188
2-4
Restatements of information
173
2-5
External assurance
77, 174, 179
Activities and workers
2-6
Activities, value chain and other business 
relationships
10–11, 60–62
2-7
Employees 
152, 154, 173
2-8
Workers who are not employees
2-8
Information 
unavailable
Lack of data (number, 
contract form and type of 
work duties) relates to the 
Group. There has been no 
procedures for collection. 
Collection procedures for 
the data are being prepared, 
and reporting is planned for 
Q2 and Q4 2023
Governance
2-9
Governance structure and composition
74–81, 144
2-10
Nomination and selection of the highest 
governance body
74, 76
2-11
Chair of the highest governance body
78
2-12
Role of the highest governance body in overseeing 
the management of impacts
74–75, 144
2-13
Delegation of responsibility for managing impacts 
74–75, 144,
2-14
Role of the highest governance body in 
sustainability reporting
74–75, 144, 146
2-15
Conflicts of interest
77–78, 144, 149
2-16
Communication of critical concerns 
148–150
2-17
Collective knowledge of the highest  
governance body 
76–77, 80–81
2-18
Evaluation of the performance of the highest 
governance body
77, 144–147
2-19
Remuneration policies
101–102
2-20
Process to determine remuneration
74–75
2-21
Annual total compensation ratio
180–181
Strategy, policies and practices
2-22
Statement on sustainable development strategy
8–9
2-23
Policy commitments
144, 148–150, 167
2-24
Embedding policy commitments
144, 148–150, 167
2-25
Processes to remediate negative impacts
144, 148–153
2-26
Mechanisms for seeking advice and raising 
concerns
145–147
2-27
Compliance with laws and regulations
148
2-27bii
Information 
unavailable
Information concerning 
company fines is not 
available for the Group in 
2021
2-28
Membership associations
144–145
Stakeholder engagement
2-29
Approach to stakeholder engagement
145, 147
2-30
Collective bargaining agreements
151–152
GRI Inde x
182
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

Omission
GRI standard / other sources and disclosure
Page
Requirement(s) 
omitted
Reason
Explanation
GRI 3: Material topics
GRI 3: Material Topics 2021
3-1
Process to determine material topics
146
3-2
List of material topics
146
Climate benefit: GRI 302: Energy 2016 and GRI 305: Emissions 2016
3-3
Management of material topics, energy
141–144, 166, 173
302-1 
Energy consumption within the organization
166, 168–169, 173
3-3
Management of material topics, emissions
141–144, 163–166, 173
305-5 
Reduction of GHG emissions
158, 168–169, 173
Own definition: 
SCA’s total cli-
mate benefit
Contribution to reduction in global warming 
expressed as SCA’s climate benefit
157–159
GRI 304: Biodiversity 2016
3-3
Management of material topics
141–144, 161–162, 173
304-3
Habitats protected or restored
161–162, 173
Own definition: 
Responsible 
fiber sourcing
Percentage of wood raw material from certified 
forests or harvested with SCA retention
160–161
GRI 403: Occupational health and safety 2018
3-3
Management of material topics
141–144, 173
403-1
Occupational health and safety management 
system
150
403-2
Hazard identification, risk assessment,  
and incident investigation
148, 150, 173
403-3
Occupational health services
150
403-4
Worker participation, consultation, and 
communication on occupational health  
and safety
147, 150–151
403-5
Worker training on occupational health  
and safety
150
403-6
Promotion of worker health
150
403-7
Prevention and mitigation of occupational health 
and safety impacts directly linked by business 
relationships
153, 163
403-9
Work-related injuries
148, 150–151, 154, 173 403-9b
Information 
unavailable
For contractors who 
performed work at SCA’s 
facilities, in forestry 
operations or conducted 
transport activities, reporting 
is only used for CLTA and 
fatal accidents. Reporting 
will be reviewed in 2023.
GRI Inde x
183
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

Financial  
multi-year summary
SEKm
2022
2021
2020
2019
2018
2017
INCOME STATEMENT
Net sales
20,794
18,822
18,410
19,591
18,755
16,664
EBITDA
10,194
9,109
4,4401)
5,3192)
5,252
3,648
Forest
2,696
2,644
2,213
1,740
1,394
1,363
Wood
2,079
2,968
657
789
904
670
Pulp
2,961
2,096
614
983
709
482
Containerboard3)
2,852
1,761
1,190
2,064
2,468
1,479
Other
–394
–360
–2341)
–2572)
–223
–346
Depreciation
–1,552
–1,475
–1,6011)
–1,6162)
–1,250
–1,137
Operating profit
8,642
7,634
2,8391)
3,7032)
4,002
2,511
Financial items
–39
–107
–117
–126
–29
–93
Profit before tax
8,603
7,527
2,7221)
3,5772)
3,973
2,418
Taxes
–1,782
–1,426
–4831)
–7302)
–314
–544
Profit for the period
6,821
6,101
2,2391)
2,8472)
3,659
1,874
BALANCE SHEET
Forest assets
97,882
84,497
74,900
69,682
33,065
32,384
Deferred tax liabilities related to forest assets
–19,468
–16,905
–14,977
–13,977
–6,658
–6,905
Working capital
4,138
2,823
2,759
3,748
3,735
2,861
Other capital employed
23,795
20,392
17,152
17,654
15,940
14,379
Capital employed
106,347
90,807
79,834
77,107
46,082
42,719
Equity
96,358
83,055
72,163
68,510
39,062
36,753
Net debt
9,989
7,752
7,671
8,597
7,020
5,966
Capital employed
106,347
90,807
79,834
77,107
46,082
42,719
CASH FLOW STATEMENT
Operating cash flow 
5,685
5,216
2,688
2,922
2,751
2,273
Cash flow before dividend
–320
876
723
145
528
–754
Current capital expenditures, net
–1,4364)
–1,236
–1,224
–1,132
–1,002
–638
Strategic capital expenditures in non-current assets
–4,351
–3,723
–1,414
–1,256
–1,967
–2,863
KEY FIGURES
EBITDA margin
49.0%
48.4%
24.1%1)
27.2%2)
28.0%
21.9%
Operating margin
41.6%
40.6%
15.4%1)
18.9%2)
21.3%
15.1%
Industrial return on capital employed
40.1%
33.0%
5.4%1)
11.9%
20.1%
12.5%
Return on capital employed
8.9%
9.0%
3.6%1)
6.9%2)
9.0%
6.1%
Net debt/EBITDA
1.0x
0.9x
1.7x1)
1.6x2)
1.3x
1.6x
Net debt/Equity
10%
9%
11%
13%
18%
16%
Data per share
Earnings per share, SEK
9.61
8.46
3.191)
4.052)
5.21
2.67
Dividend per share, SEK
2.505)
3.25
2.00
0.00
1.75
1.50
Operating cash flow per share, SEK
8.09
7.43
3.83
4.16
3.92
3.24
1)	Excluding the effect of one-off items related to the discontinuation of publication paper operations.
2)	Excluding the impact of the changed accounting method for the valuation of forest assets.
3)	The Paper segment changed name to Containerboard on January 1, 2021. Until this date, the segment included both containerboard and publication paper. 
4)	SEK –85m from new, remeasured and terminated leases.
5)	Board of Directors’ proposal.
Multi-ye ar summary
184
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

Non-financial  
multi-year summary
2022
2021
2020
2019
2018
2017
Value-based culture
Number trained in SCA’s Code of Conduct
97%
97%
96%
96%
90%
90%
Percentage of contract suppliers that have approved SCA’s 
­Supplier Standard
99%
98%
94%
93%
94%
75%
Number of confirmed breaches of SCA’s Code of Conduct
5
5
7
8
2
-
Average number of employees1)
3,313
3,577
4,196
4,253
4,216
4,127
Share of women in the Group2)
23%
22%
21%
19%
19%
18%
Absence due to illness total
3.7%
3.0%
3.9%
3.1%
3.5%
3.8%
Workplace accident Frequency Rate, LTA per million hours worked
3.1
5.8
5.6
7.4
9.1
10.4
Preventive activities – number of risk and behavior-based safety 
observations
23,242
17,477
18,079
13,964
11,290
8,500
Profitable 
growth
Total shareholder return (TSR)
–16%
14%
51%
41%
–17%
-
Credit rating
Investment 
Grade
Investment 
Grade
Investment 
Grade
Investment 
Grade
Investment 
Grade
Investment 
Grade
Fossil-free world
Climate benefit3), million tonnes of CO2e
10.1
10.5
9.6
10.5
8.0
-
Uptake of CO2 through net growth of SCA’s forests,  
million tonnes CO2
5.4
5.4
4.4
5.4
4.0
4.0
Fossil emissions in the value chain (Scope 1-2-3),  
million tonnes of CO2e
0.74
0.72
0.86
0.91
0.88
-
Fossil-free production (emissions from used fuel)
95%
96%
95%
95%
93%
95%
Specific fossil emissions from transportation in the value chain,  
g of CO2e per tonne-kms transport performed4) 
18.0
18.6
19.0
17.9
20.7
21.4
Installed capacity of wind power on SCA’s land, TWh per year
7.2
6.5
5.4
4.4
2.6
2.3
Valuable forests
Standing volume in SCA’s forests5), million m3fo
267
261
257
252
245
232
Wood raw material from responsibly managed forests,  
percentage of chain of custody certified wood raw material6)
100%
100%
100%
100%
100%
100%
Wood raw material from responsibly managed forests,  
percentage of wood raw material from certified forestry or 
­harvested with SCA retention7)
69%
72%
81%
67%
71%
71%
Replanting, millions of seedlings planted in SCA’s forests
40
67
46
35
36
32
Nature conservation area8), % of productive forest land
25.2%
24.5%
22.5%
21.0%
20.0%
24.0%
Number of consultation meetings with reindeer-herding Sami 
communities
37
80
120
79
69
65
Efficient use  
of resources
Wood raw material used, million m3 sub
10.4
10.7
11.3
11.2
9.6
9.6
Electricity used, TWh
1.63
1.74
2.77
3.08
2.96
3.04
Emissions to air of nitrogen compounds, tonnes of NO2
2,039
2,180
2,106
1,995
1,831
1,696
Emissions to water of suspended solids, tonnes
2,104
2,353
2,628
1,873
1,892
2,786
Waste sent to landfill or classified as hazardous waste, tonnes
7,975
6,436
7,704
6,825
7,303
8,827
Share of recycling of non-hazardous waste
96.3%
97.5%
96.0%
96.7%
95.3%
93.9%
Sustainable  
development
Contribute toward viable local communities9)
61%
61%
58%
51%
-
-
Support civil society in sport, culture and other areas,  
number of central agreements
149
-
-
-
-
-
1)	In 2020, the construction materials operations in the UK were divested, publication paper operations in SCA were discontinued in 2021.
2)	Refers to employees on December 31.
3)	Climate benefit calculated using the model launched by SCA in 2019, see sca.com
4)	The reported outcome for 2017–2021 was erroneously specified in previous annual reports as CO2 and has been adjusted to CO2e.
5)	New forest survey in 2019. Holding in the Baltic region included since 2019.
6)	Wood raw material that at least complies with FSC’s Controlled Wood Standard.
7)	SCA retention pertains to harvesting where the on-site retention corresponds to FSC’s requirements for certified forestry.
8)	Nature conservation area refers to voluntary set-asides and on-site retention in harvesting operations.
9)	Calculation model changed as of 2022.
Multi-ye ar summary
185
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

Definitions and glossary
Financial terms
Performance measures
EBITDA
Profit before depreciation, amortization 
and impairment, financial items and taxes.
EBITDA margin
Profit before depreciation, amortization 
and impairment, financial items and taxes 
as a percentage of net sales for the year.
Capital measures
Capital employed 
The balance sheet’s total assets excluding 
financial assets and pension assets, less 
any trade payables and other current 
non-interest-bearing liabilities.
Working capital 
Short-term operating receivables (inven-
tories, accounts receivable and other 
non-interest-bearing current receivables) 
less current operating liabilities (trade 
payables and other non-interest-bearing 
current liabilities).
Net debt 
Financial liabilities and provisions for pen-
sions with deductions for financial assets 
(surplus in funded pension plans, financial 
assets and cash and cash equivalents).
Profitability ratios
Return on capital employed
Accumulated return on capital employed 
is calculated as 12-month rolling oper-
ating profit as a percentage of average 
capital employed for the five most recent 
quarters. The corresponding key figure for 
a single quarter is calculated as operating 
profit for the quarter multiplied by four as 
a percentage of capital employed on 
average for the two most recent quarters. 
One-off items are excluded. Industrial 
segments only use industrial ROCE.
Industrial return on capital employed
The Group’s return on capital employed, 
excluding operating profit and capital 
employed from the Forest operating 
­segment and a share of other activities. 
Strategic capital expenditures in industry 
that have not begun operating and one-off 
items are excluded. This measure applies 
to all industrial segments.
Cash flow performance 
measures
Operating cash flow 
The sum of operating cash surplus and 
change in working capital, with deduc-
tions for current capital expenditure and 
restructuring costs.
Cash flow from current operations 
Operating cash flow less net financial 
items and tax payments and taking into 
account other financial cash flow.
Strategic capital expenditures  
in non-current assets 
Investments aimed at increasing the com-
pany’s future cash flow through acquisi-
tions of companies, capital expenditures 
to expand facilities, or new technologies 
that boost competitiveness.
Current capital expenditures, net
Investments made to maintain competi-
tiveness, and include maintenance, ratio-
nalization and replacement measures or 
investments of an environmental nature, 
with deductions for compensation from 
divested non-current assets, aimed at 
preserving the value of assets.
Glossary
CTMP Chemi-thermomechanical pulp is a 
high-yield pulp produced through heating 
and mechanical defibration in a refiner of 
preheated, chemically pre-treated soft-
wood. 
FSC (Forest Stewardship Council) is an 
international organization promoting 
responsible forest management. The FSC 
has developed principles for responsible 
forestry that can be applied for certifying 
forest management and that facilitate 
FSC labeling of wood products from 
FSC-certified forests. 
Climate benefit describes the company’s 
total climate effect in millions of tonnes of 
carbon dioxide equivalents and is calcu-
lated using a model described on pages 
157–159 and on sca.com. The model com-
prises three components: forest net 
uptake of CO2, fossil emissions from the 
value chain and the products’ contribution 
when these replace fossil materials.
Kraftliner is the surface layer of corru-
gated board based on fresh wood fiber.
m3sub (solid cubic meter under bark) 
specifies the volume of timber excluding 
bark and tops. Used in harvesting and 
the timber trade. 1 m3sub equals about 
1.22 m3fo.
m3fo (forest cubic meter) specifies the 
volume of timber including tops and bark, 
but excluding branches. Used to describe 
the forest holding of standing timber. 
Growth is also specified in forest cubic 
meters. 1 m3fo equals about 0.82 m3sub.
PEFC (Programme for the Endorsement 
of Forest Certification) is an international 
forest certification system.
Productive forest land is land with a pro-
duction capacity that exceeds an average 
of one cubic meter of forest per hectare 
annually.
NBSK is bleached softwood kraft pulp 
manufactured by boiling wood fiber with 
chemicals.
Solid-wood products refers to timber 
sawn into various sizes for use in, for 
example, furniture manufacturing, joinery 
or construction.
Wood raw material relates to fresh wood 
fiber used in solid-wood products, pulp 
and paper products.
Definitions and glossary
186
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

About the Annual  
General Meeting
The Annual General Meeting (AGM) of Svenska Cellulosa Aktie-
bolaget SCA will be held on Thursday, March 30, 2023, at 1:00 
p.m. at Clarion Hotel Sundsvall, Skepparegatan 9 in Sundsvall, 
Sweden. Registration for the AGM will start at 11:30 a.m. 
The shareholders also have the opportunity to exercise their 
voting rights by postal voting prior to the Meeting.
Right to participate and notice of participation at the 
meeting venue
Shareholders who wish to participate in the AGM at the meeting 
venue in person or by proxy must be listed as a shareholder in 
the presentation of the share register prepared by Euroclear 
Sweden AB concerning the circumstances on Wednesday, 
March 22, 2023, and give notice by Friday, March 24, 2023.
Notification may be given in any of the following manners:
•	on the company’s website www.sca.com 
•	by telephone at +46 60 19 33 00, weekdays between 
09.00–16.00
•	by mail to Svenska Cellulosa Aktiebolaget SCA, “Annual 
­General Meeting”, c/o Euroclear Sweden AB, Box 191, 
SE-101 23 Stockholm.
•	by e-mail to GeneralMeetingService@euroclear.com
Notification must include name, personal or corporate identifica-
tion number, address, telephone number and number of any 
assistants (not more than two). 
Shareholders represented by proxy shall issue a written, signed 
and dated power of attorney for the proxy. Proxy forms in 
Swedish and English are available on the company’s website 
www.sca.com and also upon request. A power of attorney is 
valid for one (1) year from its issue date or such longer time 
period as set out in the in the power of attorney, however not 
more than five (5) years. The representative of a legal person 
must provide a copy of a registration certificate or corresponding 
authorization document, not older than one year, listing the 
authorized signatories. In order to facilitate the registration at the 
Meeting, the power of attorney in original, the registration certifi-
cate and other authorization documents should be sent to the 
company at the address stated above, well in advance of the 
Meeting and not later than Friday, March 24, 2023.
Right to participate and notice by postal voting
Shareholders who wish to participate in the AGM by postal 
voting must be listed as a shareholder in the presentation of the 
share register prepared by Euroclear Sweden AB as of 
Wednesday, March 22, 2023, and give notice of their participa-
tion by submitting their postal votes in accordance with the 
instructions below so that the postal vote is received by Euro-
clear Sweden AB by Friday, March 24, 2023. 
A person who wishes to attend the meeting venue in person 
or by proxy must give notice of this in accordance with the 
instructions under the heading “Right to participate and notice 
of participation at the meeting venue” above. Hence, notice of 
­participation only through postal voting is not sufficient for a 
person who wishes to attend the meeting venue.
A special form must be used for postal vote. The form is available 
on the company’s website www.sca.com and is considered as 
notice to participate in the AGM.
In order to be considered, the completed and signed form must 
be received by Euroclear Sweden AB no later than Friday, March 
24, 2023 and sent by post to Svenska Cellulosa Aktiebolaget 
SCA, “Annual General Meeting”, c/o Euroclear Sweden AB, 
Box 191, SE-101 23 Stockholm, Sweden, or by e-mail to General-
MeetingService@euroclear.com. Shareholders may also cast 
their votes electronically through verification with BankID via 
Euroclear Sweden AB’s website https://anmalan.vpc.se/Euro-
clearProxy/. To be considered, such electronic votes must be 
submitted no later than Friday, March 24, 2023. 
If the shareholder submits its postal vote by proxy, a written, 
signed and dated power of attorney must be attached to the 
postal voting form. Proxy forms in Swedish and in English are 
available on the company’s website www.sca.com and also 
upon request. A power of attorney is valid for one (1) year from its 
issue or such longer time period as set out in the power of 
attorney, however not more than five (5) years. If the shareholder 
is a legal person, a registration certificate or corresponding 
authorization document, not older than one (1) year, must be 
attached to the form, listing the authorized signatories.
The shareholder may not provide specfic instructions or condi-
tions to the postal vote. If so, the postal vote in its entirety is 
invalid. Further instructions and conditions can be found in the 
postal voting form.
Nominee registered shares
In order to be entitled to participate in the AGM, in person, by 
proxy or through postal voting, a shareholder whose shares are 
registered in the name of a nominee must, in addition to giving 
notice of participation in the AGM, register its shares in its own 
names so that the shareholder is listed in the presentation of the 
share register as of Wednesday, March 22, 2023. Such re-regis-
tration may be temporary and made to the nominee in accor-
dance with the nominee’s routines as such a time in advance as 
decided by the nominee. Voting rights registration that has been 
made by the nominee no later than Friday, March 24, 2023, will 
be taken into account in the presentation of the share register.
The notice convening the AGM can be found on the company 
website www.sca.com.
Om årsstämman
187
SCA ANNUAL AND SUSTAINABILIT Y REPORT 2022
Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

Addresses
Headquarters
Svenska Cellulosa Aktiebolaget SCA (publ)
Corp. Reg. No.: 	
556012-6293
Postal address: 	
SE-851 88 Sundsvall, Sweden
Street address: 	
Skepparplatsen 1
For details about contact persons, refer to sca.com
Telephone: 	
+46 60 19 30 00
E-mail: 	
info@sca.com
Website:	
www.sca.com
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Printed matter
3041 0298
Production: SCA in collaboration with Hallvarsson & Halvarsson. Translation: The Bugli Company.
Photos: Bergslagsbild, Dan Boman, Daniel Bernstål, Dennis Ersöz, Flatmate Creative Agency, 
Getty Images, Henke Olofsson, Håkan Sjödin, Isak Berglund Mattsson, Kristofer Lönnå, Magnus 
Eklund, Mattias Andersson, Michael Engman, Olle Hedvall, Olle Melkerhed, Per-Anders Sjöquist, 
Torbjörn Bergkvist, Voith Group.
Illustrations: Martin Holm, Nadja Nörbom, Stefan Hörberg/Rithuset, Robin Franzén and Bold.
Paper: Insert – Munken Polar 100 g/m2. Cover – Munken Polar Laminated 300 g/m2. 
Printing: Larsson Offsettryck AB, 2023.
 
188
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Introduction
Strategy and operations
Board of Directors’ Report
Financial statements and notes
Sustainability facts
Other

sca.com