[EXTERNAL EMAIL] Published: 2021-03-18 10:00:00 CET Svenska Cellulosa AB SCA Annual Financial Report SCA publishes Annual Report for 2020 with long-term sustainability targets SCA has today published the company’s Annual Report for the year 2020. The report presents for the first time long-term targets for the company’s sustainability performance. SCA also presents its program for preserving the biodiversity in the company’s forests. SCA has established sustainability targets to be achieved by 2030. One of the targets is to increase the company’s climate benefit by 50 per cent to 15 Million tonnes of carbon dioxide per year. SCA also presents its program for preserving the biodiversity in the company’s forests. SCA seeks the best way to combine active forest management with a rich flora and fauna in the forest. SCA has identified 203 species that are adversely impacted by forestry activities when applying general nature conservation measures and for which the company takes particular responsibility. This includes identifying, preserving or restoring habitats for these and other vulnerable species. The program “Delivering Biodiversity Conservation – An SCA initiative” is presented on SCA’s web site. The Annual Report is available at www.sca.com. Distribution of the printed Annual Report to shareholders and other stakeholders will commence on April 6, 2021. For further information, please contact Anders Edholm, SVP Communications, +46 73 073 86 89 Josefine Bonnevier, Investor Relations Director, +46 73 525 99 06 NB: This information is information that SCA is obliged to make public pursuant to the Securities Markets Act. The information was submitted for publication on March 18, 2021, at 10.00 am CET. The core of SCA’s business is the growing forest, Europe’s largest private forest holding. Around this unique resource, we have built a well-developed value chain based on renewable raw material from our own and others’ forests. We offer packaging paper, pulp, wood products, renewable energy, services for forest owners and efficient transport solutions. 2020 the forest products company SCA had approximately 4,000 employees and sales amounted to approximately SEK 18,4 bn. SCA was founded in 1929 and has its headquarters in Sundsvall, Sweden. For more information, visit www.sca.com Svenska Cellulosa Aktiebolaget SCA Skepparplatsen 1 SE-851 88 Sundsvall Tel: +46 60 19 30 00 www.sca.com Attachments: SCA publishes Annual Report for 2020.pdf 03171956.pdf Cancel this subscription This news release was distributed by Company News System, www.nasdaqomxnordic.com/news Press release Sundsvall, March 18, 2021 SCA publishes Annual Report for 2020 with long-term sustainability targets SCA has today published the company’s Annual Report for the year 2020. The report presents for the first time long-term targets for the company’s sustainability performance. SCA also presents its program for preserving the biodiversity in the company’s forests. SCA has established sustainability targets to be achieved by 2030. One of the targets is to increase the company’s climate benefit by 50 per cent to 15 Million tonnes of carbon dioxide per year. SCA also presents its program for preserving the biodiversity in the company’s forests. SCA seeks the best way to combine active forest management with a rich flora and fauna in the forest. SCA has identified 203 species that are adversely impacted by forestry activities when applying general nature conservation measures and for which the company takes particular responsibility. This includes identifying, preserving or restoring habitats for these and other vulnerable species. The program “Delivering Biodiversity Conservation – An SCA initiative” is presented on SCA’s web site. The core of SCA’s business is the growing forest, Europe’s largest private forest holding. Around this unique resource, Svenska Cellulosa Aktiebolaget SCA we have built a well-developed value chain based on renewable raw material from our own and others’ forests. We offer Skepparplatsen 1 SE-851 88 Sundsvall packaging paper, pulp, wood products, renewable energy, services for forest owners and efficient transport solutions. Tel: +46 60 19 30 00 2020 the forest products company SCA had approximately 4,000 employees and sales amounted to approximately SEK 18,4 bn. SCA was founded in 1929 and has its headquarters in Sundsvall, Sweden. For more information, visit www.sca.com www.sca.com The Annual Report is available at www.sca.com. Distribution of the printed Annual Report to shareholders and other stakeholders will commence on April 6, 2021. For further information, please contact Anders Edholm, SVP Communications, +46 73 073 86 89 Josefine Bonnevier, Investor Relations Director, +46 73 525 99 06 NB: This information is information that SCA is obliged to make public pursuant to the Securities Markets Act. The information was submitted for publication on March 18, 2021, at 10.00 am CET. The core of SCA’s business is the growing forest, Europe’s largest private forest holding. Around this unique resource, Svenska Cellulosa Aktiebolaget SCA we have built a well-developed value chain based on renewable raw material from our own and others’ forests. We offer Skepparplatsen 1 SE-851 88 Sundsvall packaging paper, pulp, wood products, renewable energy, services for forest owners and efficient transport solutions. Tel: +46 60 19 30 00 2020 the forest products company SCA had approximately 4,000 employees and sales amounted to approximately SEK 18,4 bn. SCA was founded in 1929 and has its headquarters in Sundsvall, Sweden. For more information, visit www.sca.com www.sca.com ANNUAL AND SUSTAINABILITY REPORT 2020 A leading industrial ecosystem driven by the force of the forest Introduction Strategy and operations Board of Directors’ Report Financial statements and notes Sustainability facts Other Contents Introduction Sustainability facts 2 This is SCA 136 Value creation 4 The year at a glance 137 Strategic priorities and Group targets 6 CEO's message 141 Governance and materiality 8 Value chain 144 Values 10 A global and local company 147 Profitable growth 12 Forest and climate 148 Fossil-free world 14 Biodiversity 151 Valuable forests 16 Trends 153 Efficient use of resources SCA ANNUAL AND SUSTAINABILITY REPORT 2020 156 Responsibility for people and the community Strategy and operations 159 Social data 18 Strategy 160 Environmental data 24 Forest 162 About the Sustainability Report 30 Wood 36 Pulp Other 40 Containerboard 163 Signatures 44 Renewable energy 164 Auditor’s report 46 Logistics 167 Limited Assurance Report on the 48 Sustainable development Sustainability Report 50 Fossil-free world 168 GRI Index 52 Valuable forests 170 Financial multi-year summary 54 Efficient use of resources 171 Non-financial multi-year summary 56 Responsibility for people and the 172 Definitions and glossary community 173 About the Annual General Meeting 58 The share and shareholders 174 SCA’s performance Board of Directors’ Report The scope of the Sustainability Report in accordance 60 Board of Directors’ Report with the Swedish Annual Accounts Act is described 65 Sustainability reporting in accordance on page 65. The Sustainability Report according to with the Annual Accounts Act GRI is summarized in the GRI content index on pages 66 Risks and risk management 168–169. The Sustainability facts section starts on 71 Corporate governance page 135, and describes SCA’s sustainability work in 78 Presentation of the Board of Directors more detail. and Auditors 80 Presentation of the Executive Management Team Financial statements and notes 82 Contents 84 Consolidated statements and notes 126 Parent Company statements and notes 1 Introduction Strategy and operations Board of Directors’ Report Financial statements and notes Sustainability facts Other THis is SCA Europe’s largest private forest owner SCA is Europe’s largest private forest owner with 2.6 million hectares of forest in Northern Sweden and more than 40,000 hectares in Estonia and Latvia. Based on this unique resource, SCA has developed an industry that generates the maximum possible value in the forest and from the forest. 2.6 million hectares of forest land Pulp mill Sawmills Kraftliner mills SCA’s forest holdings SCA ANNUAL AND SUSTAINABILITY REPORT 2020 Estonia Latvia 2 Introduction Strategy and operations Board of Directors’ Report Financial statements and notes Sustainability facts Other THis is SCA 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. Utilizing this raw material, SCA develops products for customers all around the world. WOOD PULP SCA ANNUAL AND SUSTAINABILITY REPORT 2020 FOREST RENEWABLE CONTAINER- ENERGY BOARD LOGISTICS Forest Wood Pulp The forest is at the core of SCA’s opera- 65% of the revenue for forest owners Any wood unsuitable for use in solid-wood tions. On this base, SCA has built an comes from sawmills. A competitive saw- products is used to make pulp. A pulp mill industrial ecosystem that maximizes mill industry is the economic engine of a also produces secondary flows in the form value creation in and from the forest. forest business. of green chemicals, green electricity, heating and raw materials for biofuels. Containerboard Renewable energy Logistics SCA produces containerboard – paper From the raw materials and by-products Logistics is a core operation for a forestry for transport packaging. In our inte- that are not used for solid-wood products, company. Raw materials must be efficiently grated paper mills we also produce valu- paper or pulp, SCA produces energy, shipped to industrial facilities and products able by-products and green energy. green electricity, biofuels and green delivered to customers worldwide. chemicals. SCA’s forests offer favorable sites for wind power production. Forest, Wood, Pulp and Containerboard are segments with full reporting. Renewable energy and Logistics are reported as a part of relevant segments.