Glossary

Glossary

  • SCA Terminology
  • Financial
  • Environmental

A

  • AFH
  • Away From Home. Tissue sold to bulk consumers such as hotels, restaurants, industry, offices and healthcare facilities.
  • AOx
  • Adsorbable organic halogens: expresses the amount of chlorine-bound organic substances. Some of these substances accumulate in fish and fish-eating birds.
  • ASSURRE
  • Association for the Sustainable Use & Recovery of Resources: international network working on the alternative waste treatment and recycling technologies for hygiene post-consumer waste. SCA is indirectly a member of the network.

B

  • BAT
  • Best Availible Technology; officially used terminology to describe the state-of-the-art technology that industry should use in the field of activity concerned (see IPPC directive and BREF).
  • Biodiversity
  • A term describing the multitude of lifeforms and species (flora and fauna) in an ecosystem. An ecosystem is a biological community living in a particular physcal environment.
  • BOD
  • Biochemical oxygen demand. Water emission factor which describes the amount of oxygen consumed during biodegradation of dissolved organic matter in effluent water, without describing the specific substances present. High BOD values indicate depletion of the normal oxygen content of the water environment. It is measured over seven days in SCA's Swedish mills and five days in the rest of Europe, in accordance with national legislative systems.
  • BREF
  • Best Availible Technology Reference Document. This document identifies BAT (Best Available Technology) for the 32 sectors selected by the EU, including the pulp and paper industry. All pulp and paper mills with a capacity exceeding 20 tons/day should follow the IPPC directive (see IPPC).

C

  • Capital employed
  • The Group's and business areas' capital employed is calculated as an average of the fixed assets according to the balance sheet and net working capital reduced by provisions for other purposes than pensions. Goodwill is not included in capital employed in the business areas, but is reported as a consolidated asset.
  • Capital turnover
  • Net sales divided by average capital employed.
  • Carbon sink
  • Forests, by their growth, transform gaseous carbon into solid form, thereby absorbing CO2 while simultaneously producing oxygen. Forests, agricultural land use and the world's oceans are considered to be carbon sinks by current-day science.
  • Carbon trading
  • The trading of carbon emissions credits by companies or, at a diffrent level, by countries, within a global limitation scheme (designed to achieve global emissions reductions using market mechanisms).
  • Cash earnings
  • Cash earnings are calculated as earnings before tax, with a reversal of depreciation of tangible and intangible assets, share in earnings of associated companies, nonrecurring items, reduced by tax payments.
  • Cash flow from current operations
  • Cash flow from current operations comprises operating cash flow less net financial items and tax payments and taking into account other financial cash flow.
  • Chain-of-Custody
  • The traceablility of the origins of a product through all its transformations from raw material to finished product. In the SCA context, Chain-of-Custody certification traces forest products back to their origin in SCA's FSC-certified forests.
  • Chemical pulp
  • Pulp from wood fibers which is processed chemically, normally by cooking.
  • Chemicals
  • All chemical compounds involved in the wood fiber industry's manufacturing output need to be identified and followed through the product life cycle. This process is being addressed by SCA and its manufacturing counterparts across the European Union.
  • CHP
  • See Co-generation or Combined Heat and Power.
  • Climate change
  • Also defined as global warming. Human activity contributes to the present warming of the global environment and its resulting effects which range from higher temperatures to eccentric weather patterns and melting of the ice caps.
  • CO2
  • Carbon dioxide: a gaseous compound emitted naturally through geological activity, during the decomposition process and through human activity. Industry, transport and heating/cooling are currently the largest emitters of CO2.
  • Coating
  • A surface treatment applied to paper or corrugated board packaging. Provides a smooth surface with good printing properties.
  • COD
  • Chemical oxygen demand. Water emission factor wich describes the amount of oxygen consumed when dissolved matter in effluent water oxidizes. High COD values can indicate a risk of depletion of the normal oxygen content in the water environment.
  • Co-generation or Combined Heat and Power (CHP)
  • Generation of electricity and heat from fuel. Co-generation has higher total efficiency than separated production of thermal energy and electricity respectively.
  • Containerboard
  • The collective name for liner and fluting.
  • Converting plant
  • Produces finished packaging from corrugated board sheets supplied by a corrugated board plant or an integrated packaging plant.
  • Corrugated board
  • Two outer layers of paper with intermediate layer of fluting/folded paper (see liner and fluting).
  • Corrugated board plant
  • Also called sheet feeder. Produces corrugated board in sheet form that is then converted into finished packaging at another plant.
  • Council of Europe
  • Not to be confused with the European Commission and its Council of Ministers, grouping the heads of state of the European Union. The council of Europe, based in Strasbourg, comprises 46 Western and Eastern European countries. It was set up to defend human rights, parliamentary democracy and the rule of law, develop continent-wide agreements to standardize social and legal practices and promote a European identity with shared values.
  • Crêpe
  • The heavier grades of tissue towels (40 to 60 g/m2).
  • CTMP - Chemi-thermomechanical pulp
  • A high-yield pulp (about 90-95 percent yield from the wood) produced through the mechanical defibration in a refiner of preheated, chemically pretreated softwood.
  • Current capital expenditures
  • Current capital expenditures are investments to maintain competitiveness, such as maintenance, rationalization and replacement measures or investments of an environmental nature. They may also include product upgrades in the existing machine park.

D

  • Debt payment capacity
  • Debt payment capacity is expressed as cash earnings in relation to average net debt.
  • Debt/equity ratio
  • The debt/equity is expressed as net debt in relation to shareholders' equity, including minority interests.
  • Deinking
  • Removal of ink from recovered paper. Facilitates increased use of recycled fiber in finished products.
  • DJSGI
  • Dow Jones Sustainablility Group Index. The DJSGI world index assesses companies' ability to combine financial growth with successful environmental programs and social issues in order to create sustainable growth.

E

  • E-auction
  • Retail chains request contracts in, for example, consumer tissue. Those suppliers meeting the specified quality requirements may bid against each other on price in an auction on the Internet.
  • EDANA
  • European Disposables and Nonwowens Association; SCA is an active member of this hygiene products association. Formed in 1971, it represents the common interest of these industries and promotes the acceptance of their products (www.edana.org)
  • EMAS
  • Eco-Management and Audit Scheme: created by European Council Regulation. EU's system for environmental management and auditing of forestry.
  • Environmental management system
  • That part of the overall management system which includes the structure, practices, procedures and resources for the systematic implementation of the organization's own environmental policy.
  • EPD
  • Environmental Product Declaration: type of product labeling. To avoid misleading labeling of the "dolphin-friendly" type, SCA favours specific product declarations, which are accurate, informative and clearly state their objective (Type 3 EPD). As a principle, SCA is opposed to eco-labeling for packaging, as it could result in confusion with the product being packed.
  • Equity/assets ratio
  • The equity/assets ratio corresponds to shareholders' equity plus minority interest expressed as a percentage of total assets.
  • ESAVE
  • Structured energy saving program introduced by SCA in its energy-intensive manufacturing units in 2002. Its aim is to substantially reduce the consumption of energy in production units.
  • ETP
  • Environmental Technical Platform; network formed by SCA to monitor the progress of the European Commission Emissions Trading Scheme and give guidance to the 35 SCA units participating.
  • ETS
  • Emissions Trading Scheme (or System); greenhouse gas emissions allowance trading scheme for the cost-effective reduction of such emissions in the European union, established in the context of the Kyoto Protocol. Installations operating in the paper and board industry, in the energy sector, iron and steel production and the mineral industry apply ETS as of 1 January 2005 in two initial phases: from 2005 to 2007 and from 2008 to 2012. CO2 emissions are subject to permits and fines (if emissions are above the cap set for the operation). The “allowance” means the entitlement to emit 1 ton of carbon dioxide.

F

  • Fluff
  • Pulp based on wood fiber, used to absorb fluid. Used in incontinence and feminine hygiene products, diapers, etc.
  • Fluting
  • The rippled middle layer in corrugated board, produced from semi-chemical pulp or recycled fiber.
  • Fresh wood fibre
  • Also referred to as virgin fibre. First-generation-use sustainable raw material derived from wood.
  • FSC
  • Forest Stewardship Council: an international organization promoting responsible forest management. FSC has developed principles for forest management which may be used for certifying the management of forest holdings, and a system of tracing, verifying and labeling timber and wood products which originate from FSC-certified forests.
  • FTSE4GOOD
  • Specific sustainability index, managed jointly by the London Stock Exchange and the Financial Times, rating companies on their social and environmental performance.

G

  • Green energy
  • In the case of SCA, energy produced by burning recovered waste products, like bark, production sludge or other materials.
  • Gross margin
  • Operating surplus as a percentage of net sales.
  • GWh
  • Gigawatt hours, unit of energy measurement (electricity and heat). 1GWh = 1 million kWh

H

  • Heavy duty
  • Very durable packaging with several layers of paperboard, often used for heavy goods such as auto parts.

I

  • Integrated packaging plant
  • Produces corrugated board and converts it into finished packaging (boxes and trays) with color-printed text and graphics.
  • Interest coverage ratio
  • Interest coverage is calculated in conformity with the net method according to which operating profit is divided by financial items.
  • IPP
  • Integrated Product Policy. In a communication published in June 2003, the EC states that “its primary aim is to reduce the environmental impacts of products throughout their life cycle, harnessing where possible a market-driven approach within which competitive concerns are integrated.” The IPP encourages “green” products, “green” public procurement and eco-labeling.
  • IPPC
  • The European Union’s Integrated Pollution and Prevention Control directive (96/61/EC).
  • ISO 14001
  • The standard published by the International Standards Organization, specifying the requirements for an environmental management system.

J

K

  • Kraftliner
  • Packaging paper made of fresh wood fiber, as opposed to testliner and medium (recycled fiber).
  • Kyoto Protocol
  • United Nations framework convention on climate change. Voluntary agreement between industrialized nations, ratified by Europe and the object of European directive 2003/87/EC, to reduce by 2012 the levels of man-made CO2 below the level reached in 1990.

L

  • Life Cycle Assessment (LCA)
  • A method of assessing the environmental impact of a product, taking account of its entire lifespan from raw material extraction to waste disposal. The process is described in the ISO14040 series. SPINE is the common database enabling comparison between product elements.
  • Liner
  • The surface layer of corrugated board. Available in various grades, such as kraftliner (based on fresh wood fiber) and testliner (based on recycled fiber).
  • Liquor
  • Substance(s) used in or resulting from chemical pulp production. White liquor is the cooking liquor (sodium hydroxide and sodium sulphite). Black liquor is the waste liquor from the completed production cycle. Most of it is re-used as fuel and burned in the recovery boiler. Green liquor is an aqueous solution, the residue of burning the black liquor.
  • LWC paper
  • Light Weight Coated paper is a coated supercalendered (SC) paper with a high mechanical pulp content. Used for periodicals and advertising materials with demanding color-printing requirements.

M

  • Market pulp
  • Pulp that is dried and sold on the open market.
  • Mechanical pulp
  • Debarked wood that is ground or chipped for mechanical refining to separate the fibers which form pulp.
  • Microflute
  • Very thin corrugated board used for high-quality packaging with print.

N

  • N (Nitrogen)
  • A chemical element, also present in wood, that is necessary for plant and animal life. Excess N in water can cause major increases in the amount of algae, which can lead to oxygen deficiency when the algae decompose.
  • Net debt
  • Net debt is the sum of consolidated interest-bearing liabilities, including pension liabilities and accrued interest, less liquid funds and interest-bearing short-term and long-term receivables and capital investment shares.
  • Net margin
  • Net earnings as a percentage of net sales.
  • Newsprint
  • Paper for newspapers produced from mechanical pulp based on fresh wood fiber or recycled fiber.
  • NGO
  • Non-governmental organizations which represent environmental and other societal interest, such as Greenpeace and WWF.

O

  • Old Corrugated Container (OCC)
  • Used corrugated board collected for recycling.
  • Old Corrugated Container, OCC
  • Used corrugated board collected for recycling.
  • Operating cash flow
  • Operating cash flow includes the total of operating cash surplus, change in working capital, with deduction for current capital expenditures in property and plant and restructuring costs.
  • Operating margin
  • Operating profit as a percentage of net sales.
  • Operating surplus
  • Operating surplus is expressed as operating profit before depreciation/amortization of tangible and intangible fixed assets and share in earnings of associated companies.

P

  • P (Phosephorus)
  • A chemical element, also present in wood, that is necessary for plant and animal life. Excess P in water can cause nutrient enrichment.
  • PaperFoam®
  • Product produced by SCA Packaging, under license from PaperFoam® in the Netherlands, to be used as fittings for luxury goods such as mobile telephones or electronics. It consists of fiber, potato starch, ink and other chemical elements, molded under high pressure. Fully recyclable and recycled.
  • Personal Care
  • Here defined as incontinence products, baby diapers and feminine hygiene products. (See fluff.)
  • Productive forest land
  • Land with a productive capacity that exceeds one cubic meter of forest per hectare annually.
  • PSR
  • Product-Specific Requirement (also see EPD, Environmental Product Declaration): list of requirements enabling SCA to label its products in an accurate and informative way, avoiding unverifiable labeling.

Q

R

  • RAP
  • Regulatory Affairs Platform; the network keeps and updates the list of SCA representatives in organizations at EU and national levels. It is in charge of communicating and defending SCA positions to lawmakers directly and through industry organizations.
  • REACH
  • Complex European legislation in preparation on the use of chemicals by industry. Some 30 000 chemicals will have to be registered with a Central European chemical agency after testing. Companies will have to obtain authorization to use hazardous chemicals.
  • Recovered fiber
  • Paper-making fiber derived from a secondary source, such as used paper and board, used for recycling.
  • Renewables
  • All materials which can be re-grown or produced without depletion of natural resources.
  • Return on capital employed
  • Return on capital employed is calculated for the Group as operating profit as a percentage of average capital employed. Goodwill is excluded for the business areas.
  • Return on shareholders' equity
  • Return on shareholders' equity is calculated for the Group as net earnings after tax as a percentage of average shareholders' equity.
  • RMS
  • SCA's Resource Management System: a means of collecting and collating all environmental data and resource utilization within the SCA Group.

S

  • SC paper
  • Supercalendered publication paper with a high gloss surface and with a high content of mechanical and/or recycled pulp. Mainly used for periodicals and advertising materials.
  • Shareholders' equity
  • The shareholders' equity reported in the consolidated balance sheet consists of taxed shareholders' equity increased by the equity portion of the Group's untaxed reserves. (Deferred tax liability in untaxed reserves has been calculated at a 28% rate for Swedish companies and at the applicable tax rate for foreign companies in each country outside Sweden.)
  • Sludge
  • Residue from the production of paper; consists of inert materials, mainly small fiber debris, filler and other inert materials. It used to be sent to landfill. Nowadays used as “new” raw material and incinerated with energy recovery.
  • Solid-wood products
  • Sawn and further processed wood in various dimensions and sizes for furniture, joinery and construction use.
  • SPSN
  • SCA Product Safety Network: one of SCA’s transversal networks. Its tasks include issues relating to product safety such as avoidance of contamination, microbiological issues and related legislation.
  • Strategic investments
  • Strategic investments increase the company's future cash flow through acquisitions of companies, capital expenditures to expand facilities, or new technologies that boost SCA's competitiveness.
  • Sustainable development
  • Bringing into decision-making processes the three interlinked factor - economic growth and social and environmental care - which enable society to meet the needs of the present without compromising the needs of future generations. Also referred to as the "triple bottom line".

T

  • TAD (Through-Air-Dried)
  • Hot air is blown into the tissue to improve its properties.
  • TCF pulp (Totally Chlorine Free)
  • Pulp that is bleached without using chlorine in any form.
  • Testliner
  • Packaging paper made from recycled fiber. Medium or fluting is the rippled middle layer in corrugated board packaging.
  • Tissue
  • Creped soft paper which is the basis for hygiene products such as napkins, toilet paper and towels, and household towels and wiping products for institutions, hotels, etc.
  • TJ
  • Terajoule: a unit used to measure energy (fuel).
  • TMP
  • Thermo Mechanical Pulp. A high yield pulp (about 90-95 percent yield from the wood) which is obtained by heating spruce chips and then grinding them in refiners.

U

V

  • Value added per employee
  • Operating profit plus salaries, wages and payroll expenses divided by the average number of employees.
  • Waste
  • To SCA, waste comprises only materials leaving our production units which cannot be used for any further useful purpose. Recovered paper and fiber are excluded, since they form part of SCA's main raw materials.
  • Wood fiber
  • Wood fiber from felled trees (fresh wood fiber) or from used paper or corrugated board products (recycled fiber).

X

Y

Z