Materiality assessment
The materiality assessment shows the areas where SCA’s operations and sustainability initiatives have the greatest impact on the economy, environment and people, including human rights. Based on previous materiality analysis, a selection of four ESRS standards (European Sustainability Reporting Standards) has been made, which have the greatest impact in the areas of health and safety, climate benefit, and biodiversity.
SCA’s materiality assessment provides an overview of the priorities of the stakeholder groups, market developments and the company’s priorities. The following four standards were chosen:
- Climate change
- Biodiversity and ecosystems
- Own workforce
- Business conduct
An initial general double materiality assessment was carried out for these
four areas and this forms the basis for the scope of this year’s reporting.
The company's double materiality analysis:
- Updated annually with new knowledge and insights.
- Uses multiple sources such as scientific publications, stakeholder dialogues, and internal surveys.
- Begins with a list of actual and potential impacts on people and the environment according to ESRS.
- Each impact is assessed based on severity, extent, and duration, as well as the likelihood of potential impacts.
- Financial impact on the company is also analyzed, including dependence on resources such as natural resources and human capital.
- The results are used to develop policies, goals, action plans, and sustainability reporting.
The stakeholder analysis includes external stakeholders such as investors, capital market participants, rating institutes, customers, suppliers, NGOs, authorities and politicians as well as the company’s internal strategic priorities. SCA’s contributions and challenges linked to the UN’s 17 Sustainable Development Goals were included in the analysis.
Aligned with stakeholder expectations
The materiality assessment ensures that SCA’s sustainability priorities are aligned with stakeholder expectations and determines which sustainability topics should be included in the sustainability report and reporting in accordance with the Global Reporting Initiative (GRI Standards 2021).
ESRS Index – Overview of scope of reporting
Climate change adaptation
At present, SCA has not identified costly actions, but this assessment may change. An assessment of potential impacts in the value chain could not be fully estimated due to a lack of available information. (Not included in report).
Climate change mitigation
SCA is deemed to have both positive and negative material impact. SCA is also dependent on access to wood raw material that could be affected by climate change or by political decisions to mitigate climate change.
Energy
SCA is a major energy consumer and a major producer of renewable energy.
Direct impact drivers of biodiversity loss
SCA’s material impact is considered to be mainly due to active forest management, which can have a negative impact on biodiversity in the areas concerned, both in the SCA’s own forest and in areas from which the company sources raw materials.
Impacts on the state of species
SCA has limited impact on the size of the populations. Active forest management
is considered to have a material impact on forest-dwelling species.The company contributes positively by actively working to secure access to habitats for species that may be negatively impacted by forest management.
Impacts on the extent and condition of ecosystems
According to the current definitions, the company is not considered to have a material impact on land degradation, desertification or soil sealing through its activities. Land degradation refers to the land’s ability to provide ecosystem services. (Not included in report).
Working conditions
SCA is dependent on access to the right skills and to be attractive as a company and industry. SCA is considered to have material impact onoccupational health and safety.
Equal treatment and opportunities for all
The company is dependent on access to the right skills and to be attractive as a company and industry. The company adapts the work environment as far as possible to the needs of all employees and is not considered to have a material impact on employment opportunities for persons with disabilities.
Other work-related rights
The company is dependent on access to the right skills and to be attractive as a company and industry.
Corporate culture
Protection of whistle-blowers
The company relies on a sound and values-driven corporate culture to create a safe and healthy work environment, good productivity, innovation and ethical business conduct.
Animal welfare
Not considered as material impact. (Not included in report).
Political engagement
The company is dependent on political decisions taken that directly or indirectly affect its operations.
Management of relationships with suppliers including payment practices
SCA relies on ethical and sustainable business relationships with its suppliers of goods and services to conduct business.
Corruption and bribery
SCA relies on good business conduct to be a credible and attractive company for its investors, business partners, employees and other stakeholders.
Related content
Stakeholder dialogues
SCA engages in continuous dialogue with various stakeholder groups in order to raise awareness of the areas they believe should be prioritized. The key issues in 2023 were linked to the forest, climate change and the new requirements for sustainability reporting according to the EU’s Corporate Sustainability Reporting Directive (CSRD).
Sustainability Policy
Our sustainability policy establishes the framework for integrating sustainability throughout our entire operations. The policy defines our ambitions and ensures that sustainability permeates everything we do—from product development and business models to investments and supply chains.
Sustainable governance
SCA’s sustainability work is an integral part of our business model and operations. Governance and follow-up of sustainability work follows the same model as other operations in SCA.