Södra receives the Växjö Municipality’s Wood Construction Award 2025 as an ecologically-sound innovator in wooden construction

 Tuesday, November 25, 2025

The city of Växjö, known globally as “The Greenest City in Europe,” has once again recognised excellence in sustainable development by naming Södra the winner of the Växjö Municipality’s Wood Construction Award 2025. The prestigious accolade honors Södra’s long-term commitment and innovative work in advancing the use of wood as the primary material for the construction industry, effectively inspiring continued innovation across the sector.

Södra, Sweden’s largest forest-owner association, is being celebrated for its holistic approach, which manages responsibility for the entire value chain—from the family-owned forest estates of its members to the final, finished building. This integrated strategy ensures that the raw material is produced and processed with a consistent focus on sustainability, combining structural strength, aesthetic design, and a minimal climate footprint.

The award is a direct nod to the crucial role wood construction plays in reducing global climate impact. Wood is a uniquely renewable material that inherently stores carbon dioxide throughout its entire lifespan, effectively replacing fossil-intensive alternatives such as concrete and steel.

Maria Persdotter Isaksson, Sustainability Manager at Södra Wood, views the award as a powerful endorsement of their foundational mission. “The award from Växjö Municipality is a recognition of the work that the members of Södra and our employees have put in to develop wood products that make a difference,” she stated. “We see it as confirmation that a long-term approach and collaboration are the key to driving change in the construction industry.”

By choosing wood, a building’s climate footprint can be halved, aligning with Sweden’s ambitious goals for a carbon-neutral society. For Södra, this commitment manifests in combining innovation with responsibility: developing industrial and circular construction processes, fostering hybrid solutions, and creating efficient building systems.

A prime example of Södra’s innovative solutions is the production of Cross-Laminated Timber (CLT). CLT is an engineered wood product made by gluing layers of lumber together at right angles. This layering creates large, structural panels with exceptional strength and dimensional stability, allowing wood to be used in projects—including tall buildings—where its full potential can be realized.

The benefits of CLT over traditional materials like concrete and steel are multifaceted:

• Carbon Sequestration: Unlike concrete manufacturing, which is a major global emitter of CO₂, wood continues to store the carbon absorbed by the tree during its growth. Using CLT locks this biogenic carbon into the built environment for decades.
• Reduced Manufacturing Energy: The energy required to produce CLT is significantly less than that needed for the high-heat production of cement or steel.
• Speed and Efficiency: CLT panels are often prefabricated in a factory, complete with window and door openings, and then quickly assembled on-site with fewer workers. This industrial process leads to faster construction times, reduced on-site waste, and less noise disruption in urban areas.
• Lighter Weight: CLT is substantially lighter than concrete, which often allows for smaller, less intensive foundations, further reducing the overall environmental and economic cost of a project.

Södra has invested strategically in increasing its capacity for value-added products like CLT, with facilities like the CLT factory in Väröbacka serving as a hub for the production of these key structural elements.

Södra’s ambition is clear: to make wood the obvious choice for the construction of the future and to strengthen Sweden’s position as a global leader in sustainable wood construction. This strategy is firmly rooted in the principles of a circular bioeconomy, where forest raw materials are maximally utilised and continually renewed.

The company’s approach to the forest goes beyond simple harvesting, incorporating advanced technology and long-term planning:

• AI-Driven Technology: Södra is implementing advanced, AI-driven scanning technology in its sawmills, such as the one in Värö, to enable more precise strength grading of timber. This ensures that every tree is utilised optimally and enhances the quality of its wood products.
• Carbon Capture Initiatives: Beyond the construction materials, Södra is even pioneering efforts in carbon capture and storage (CCS). For instance, testing of carbon capture technology at its Värö industrial site aims to capture biogenic CO₂ from its pulp operations, demonstrating an integrated commitment to a low-carbon future that maximises the value of every part of the tree.
• Long-Term Competitiveness: Södra’s investments are driven by a mission to “refine and renew the values of the forest estate,” ensuring long-term competitiveness for its 50,000+ family forest owner members and providing a reliable supply of sustainable materials to the global market.

The recognition from Växjö Municipality—a city that actively champions sustainable building practices, notably seen in its use of certified CLT and glulam in structures like the iconic Town Hall and Train Station—validates Södra’s integrated model. It proves that by combining responsible forest management with industrial innovation in products like CLT, the forestry sector can be the decisive agent in decarbonising the global construction industry.

Södra’s victory in the 2025 Wood Construction Award is not just a company achievement, but a significant milestone for the entire green transition, underscoring the critical role of wood as a high-strength, low-carbon alternative to traditional building materials.

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Tags: bioeconomy, cross-laminated timber (CLT), Forest-to-Building Value Chain, sustainable building, Växjö Wood Award, wood construction