Not just a headline, a fact June 23rd 2008 We own a lot of trees,” says SCA Tissue Europe’s UK & Ireland marketing manager, Brian Parkinson. He’s not kidding. With 2.6million hectares of forest, SCA is the largest private forest owner in Europe.
The trees are used to generate sales of 11.5bn euros and yet SCA says its forests are growing by 1.9million square metres per annum, underlining the level of sustainability invested in raw material management. According to Parkinson, almost as much CO2 is consumed by SCA’s forests as it consumes in production. “Although we are by no means carbon neutral,” he hastens to add.
Green horizon
According to the latest McKinsey research, 51 per cent of decision makers say environment is a consideration for future purchasing decisions (up from 31 per cent in 2005). Never shy of promoting its environmental credentials – which were a major factor in winning contracts at the likes of Wembley stadium – Parkinson says the time is right to step up a gear. “Sustainability is an integral part of the company’s strategy for growth and value creation and we feel the time is right to declare the good things that we do.”
Many firms are now making the same kind of statements, but few have SCA’s level of credibility. It’s Tork branded tissue products, for example, are made from 70 per cent recycled fibres. The firm is investing in its own green power plants. By 2010 it aims to reduce water consumption by 15 per cent and reduce specific organic content (BOD) in waste water by 30 per cent. In terms of energy, the firm reduced its 2005 consumption, in relation to the previous year, by seven per cent. In 2006 it reduced energy consumption by a further four per cent. Last year was a bit of a blip – Parkinson says acquisitions virtually counterbalanced energy efficiency measures. But the firm still shaved 0.4 per cent off the previous year. The result of these measures, claims Parkinson, is energy and fuel consumption reduced to the tune of 900GWh “which is comparable to Zurich’s annual energy consumption”.
While operations in 90 countries require a sizable logistics operation, and equivalent carbon footprint, Parkinson says SCA is working hard to reduce it. He claims SCA has the “most environmentally friendly cargo ships with catalytic converters that remove 92 per cent of CO2 from exhaust emissions”.
The firm’s CSR credentials are equally sound – it supports Amnesty International and is lobbying against the bulk of recycled fibre going to China. But, while the McKinsey research suggests buyers are becoming more bothered about sustainable purchasing, Parkinson says purchasers aren’t working that hard to understand the issues. “Chemical choices are seen as more urgent than paper products, and the perception remains that greener products will be lower quality and more expensive. Therefore it’s hard to motivate purchasers as to why they should buy.” Parkinson says UK labelling is of “hardly any significance” and that there is widespread ignorance as to what labels actually mean, and, therefore that manufacturers can mislead consumers, creating mistrust and suspicion, slowing sustainable market growth. SCA’s belief is that, until ecolabelling criteria is unified, consumers shouldn’t base purchasing decisions on one of many ‘eco’ labels, but examine the company’s credentials as a whole.
This, says Parkinson, is precisely why SCA is increasing its level of marketing. “It’s a bold message and we we’re hoping the timing is right. We hope that what appears to be happening in consumer markets spreads to industrial buyers. But our trees are in the ground for 60-100 years, so we’re used to looking long term. The bottom line is that sustainability is becoming increasingly important, and will continue to do so.” More articles from SCA Tissue Europe: |