How SCA contributes to a stronger northern Sweden

The industry organization Skogsindustrierna estimates that the forest industry accounts for 9–12 percent of the Swedish industrial sector’s total employment, exports, revenue, and value-added. Many sparsely populated forestry counties are at the upper end of that range. 

For example, in Västernorrland – where SCA has its headquarters and several industrial facilities – 12 percent of the county’s value-added is estimated to be linked to the forest sector. Around 7 percent of the region’s population are estimated to have jobs that depend on forestry, and tax revenues from the industry are estimated to finance over 2,500 welfare jobs. 

“We manage the forest in a way that always ensures more new forest growth than we harvest, which means we have never had as much standing forest as we do today. This allows the industry to generate significant economic value while providing renewable products that support the green transition. I believe that if more parts of the world operated this way, the transition would be smoother and more positively perceived,” says Ulf Larsson. 

One clear positive effect of SCA’s forestry operations is that around 3,300 people living in Sweden’s four northernmost counties work for the company and pay municipal, regional, and national taxes. A broader benefit is seen in the company’s annual investments of approximately SEK 4 billion, especially in industrial development in the same four counties. 

“Our investments naturally create business opportunities for everything from machine manufacturers to various service companies. But ultimately, efficient and well-functioning industries are what generate revenue for forest owners. We are Europe’s largest private forest owner, but we buy about half of our raw materials from others – who benefit greatly from our industries,” says Ulf Larsson. 

How can these benefits be increased even more? 
“The foundation is to understand that it is mature, harvested forest that drives economic activity, renewable products, green transition, and climate benefits. With that in mind, the key is to create systems that allow for more harvesting – while ensuring even greater forest growth. That way, you can harvest more and still have more forest left,” says Ulf Larsson. 

“That’s how we’ve operated in Sweden for a long time, and that’s why we’ve had a growing forest industry while the amount of standing forest has never been greater. This should serve as a model for the rest of the EU,” he adds. 

What conclusions should be drawn from that? 
“To begin with: In parts of the EU, forests have been harvested without replanting – and that is clearly a flawed model. I believe this is why some countries don’t understand that more forestry is absolutely crucial for achieving the green transition. But it also requires replanting and ensuring that forest growth exceeds harvesting – as we’ve done in Sweden,” says Ulf Larsson. 

How does this show in EU policy? 
“The clearest example is the LULUCF regulation, which is plainly incorrect, gives a misleading picture of the forest’s climate benefits, and should be revised. It fails to account for the benefit of renewable products replacing fossil-heavy ones. This leads to short-sighted policies where the benefits of replacing plastic with paper or fossil jet fuel with biofuel aren’t captured,” says Ulf Larsson. 

“If the climate value of products isn’t acknowledged, it ultimately entrenches fossil dependence. A more meaningful approach would be to keep the oil in the ground, maximize climate benefits from growing forests and renewable products, and use that as a growth engine for the parts of Europe well-suited to forestry,” says Ulf Larsson.