SCA's Green Commitment: Navigating Sustainability in the Forest Industry

June 25, 2025, 6:27 pm
SCA
SCA
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In the heart of Sweden, Svenska Cellulosa Aktiebolaget (SCA) stands as a titan of the forest industry. With a legacy rooted in sustainable practices, SCA is not just a company; it’s a steward of the environment. Recently, SCA has made significant strides in its sustainability journey, updating its Medium Term Note (MTN) program and joining forces with Gasum to comply with EU maritime emissions regulations. These moves are more than just business decisions; they are bold steps toward a greener future.

SCA’s MTN program, established in 2018, is a financial tool designed to raise capital while ensuring transparency and accountability. As of June 2025, SCA has issued SEK 6.7 billion under this program, with SEK 4.5 billion still outstanding. The updated base prospectus, approved by the Swedish Financial Supervisory Authority, reflects SCA’s commitment to maintaining rigorous standards in financial reporting. This is not just about numbers; it’s about building trust with investors and stakeholders.

But SCA’s ambitions extend beyond financial markets. The company has also updated its Green Bond Framework, a critical component of its sustainability strategy. This framework, first introduced in 2015, has evolved to align with the latest market practices. It has received the highest "Dark Green" rating from S&P Global Ratings, signaling its robust commitment to environmental stewardship. The framework encompasses various categories, including valuable forests and efficient resource use, showcasing SCA’s holistic approach to sustainability.

SCA’s forests are not just a resource; they are a vital part of the climate solution. The company’s operations contribute to a climate benefit equivalent to approximately 12.5 million tonnes of CO2 per year. This is a staggering figure, representing over 25% of Sweden’s total greenhouse gas emissions. By managing its forests sustainably, SCA plays a crucial role in carbon sequestration and the fight against climate change.

In a world increasingly focused on sustainability, SCA is also taking steps to reduce its fossil emissions. The company has set an ambitious goal to cut emissions by 50% by 2030, relative to 2019 levels. To achieve this, SCA has partnered with Gasum, a leader in renewable energy solutions. By joining Gasum’s FuelEU Maritime pool, SCA aims to comply with EU maritime emissions regulations while significantly reducing its carbon footprint.

SCA operates a fleet of three Ro-Ro vessels, transporting wood products, packaging paper, and pulp across Europe. These vessels are not just carriers; they are part of SCA’s commitment to sustainability. By utilizing Gasum’s liquefied biogas pooling service, SCA can lower the carbon intensity of its maritime operations. This partnership exemplifies how collaboration can drive meaningful change in the industry.

Gasum’s bio-LNG is a game-changer. It is a renewable fuel with life-cycle greenhouse gas emissions that are, on average, 90% lower than fossil fuels. This is not just a small step; it’s a leap toward a fossil-free future. By integrating bio-LNG into its operations, SCA is not only complying with regulations but also setting a standard for others in the industry.

The FuelEU Maritime regulation is a pivotal initiative aimed at reducing the carbon intensity of fuels used in European maritime transport. It allows for the pooling of emission reductions, enabling companies like SCA to collectively tackle the challenge of carbon emissions. This regulatory framework is a beacon of hope in the fight against climate change, encouraging collaboration and innovation.

SCA’s commitment to sustainability is not just a corporate strategy; it’s a fundamental part of its identity. The company’s operations are deeply intertwined with the health of the planet. By focusing on renewable resources and sustainable practices, SCA is not only securing its future but also contributing to a more sustainable world.

The updated Green Bond Framework and the partnership with Gasum are just two examples of how SCA is leading the charge in the forest industry. These initiatives reflect a broader trend toward sustainability in business. Companies are increasingly recognizing that environmental responsibility is not just good for the planet; it’s good for business.

As SCA moves forward, it will continue to engage with investors and stakeholders, fostering a transparent dialogue about its sustainability commitments. This approach not only builds trust but also encourages collaboration across the industry. In a world where climate change poses an existential threat, SCA’s proactive stance is a model for others to follow.

In conclusion, SCA is more than a forest company; it is a pioneer in sustainability. Through its updated MTN program, Green Bond Framework, and partnership with Gasum, SCA is navigating the complex waters of environmental responsibility. The company’s efforts are a testament to the power of innovation and collaboration in the quest for a greener future. As SCA continues to lead by example, it inspires others to join the journey toward sustainability, proving that business and environmental stewardship can go hand in hand.