Governing sustainability targets at Södra
By 2030, Södra will be completely free of fossil fuels, members’ forests will continue to grow at the same rate as in recent decades and there will be zero tolerance for workplace injuries. These sustainability targets will now acquire the same status as the Group’s financial targets, Södra’s Board announced.
In addition to the three Group-wide targets, there are also 12 specific sustainability targets for various parts of the operations.
Lars Idermark about the importance of sustainability
“As a Group operating in the green sector, it is important for us to be a sustainability leader. Our operations can offer so many social benefits in the transition to a bioeconomy,” said Södra’s President Lars Idermark. “We are now increasing the tempo by giving these targets the same status as our financial targets.”
“Climate change is a global issue and affects us all. Södra’s targets for fossil-fuel independence and a higher rate of forest growth will help us work strategically with climate change. In this context, however, it is vital to point out that any efforts to increase forest growth shall never take place at the expense of biodiversity conservation, nor compromise the natural features and production capacity of forest land,” added Idermark.
The sustainability targets are the result of a long and thorough process, with a great deal of participation from both Södra’s operations and external influence.
“We invited external stakeholders to participate in some parts of the process, since we believe that this work should be part of a larger context,” said Kristina Altner, Sustainability Coordinator at Södra. “It’s also important that both our customers and other stakeholders are able to voice their opinions.”
Södra’s Board has called these financial targets “long-term”. The percentages for return, equity ratio and profit distribution have not changed. Södra’s financial targets are now as follows:
- The long-term consolidated return on capital employed should be at least 10 percent.
- The long-term equity ratio should be at least 55 percent.
- Overall long-term profit distribution should correspond to at least 50 percent of profit before tax.