Wednesday, July 2, 2025
SCA may encourage constructive development in northern Sweden through forest planting, management, harvesting, and refinement. According to SCA President and CEO Ulf Larsson, improved forestry conditions would also boost the sector’s advantages for society at large. “We can and we want to do more. By creating better conditions for the forest industry, we also create better opportunities for a green and globally competitive transition that is economically beneficial for society,” comments Ulf Larsson.
Between 9 and 12 percent of Sweden’s industrial sector’s total employment, exports, revenue, and value-added is attributed to the forest industry, according to industry association Skogsindustrierna. At the higher end of that range are a number of forestry counties with minimal populations. In Västernorrland, for instance, where SCA has its headquarters and a number of industrial facilities, the forest sector is thought to account for 12% of the county’s valuation. It’s estimated that forestry-related occupations employ around 7% of the region’s workforce, while the industry’s tax income funds more than 2,500 welfare positions.
“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.
The fact that some 3,300 residents of Sweden’s four northernmost counties work for SCA and pay municipal, regional, and federal taxes is one obvious benefit of the company’s forestry operations. The company’s yearly investments of about SEK 4 billion, particularly in industrial growth in the same four counties, show a wider impact. “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.
What else can be done to enhance these advantages?
“The foundation is to understand that it is a 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 inferences ought to be made from that?
“To begin with, in parts of the EU, forests have been harvested without replanting – and that is a flawed model. I believe this is why some countries don’t understand that more forestry is 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.
What impact does this have on EU policy?
“The clearest example is the LULUCF regulation, which is 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.
More about SCA
SCA’s headquarters are in Sundsvall, Sweden, and the organisation was founded in 1929. SCA is a major employer and has strong relations with the northern communities where its businesses and industries are located. As such, it has a big impact on Swedish society. They create jobs using renewable natural resources, construct infrastructure, and make money from exports. Building a sustainable company that benefits its clients, staff, and shareholders is the Group’s top priority. They supply wood products, pulp, packaging paper, forest owner services, renewable energy, and efficient modes of transportation.
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