Foreword: Lotta Lyrå

I also had the opportunity to share my thoughts with an audience of customers, peers and suppliers at the BWPA/Hawkins Wright Annual London Symposium. It was good timing because there has never been a more exciting time to work in forestry. The following is an “executive summary” of the messages I sought to share.

The challenges of biodiversity loss and climate change demand bold, swift decisions amidst geopolitical tension and economic uncertainty. Our actions today will shape the future for generations to come and determine the vitality of our forests, which is our licence to operate.

Södra has chosen to be part of the solution. Small-scale family forestry can have a significant impact, and our model of reinvesting profits into product innovation and development is testament to that. Our owners have worked tirelessly and invested to achieve sustainable forestry practices, with their trees now growing 15-20 percent faster than before. We are pioneers in entrepreneurship, with the world's first fossil-free biomethanol plant and soon to be the largest producer of kraft lignin.

We offer a unique premium for forest owners who exceed forest certification requirements. As one of the initiators of developing a standard for global bio credits, we are committed to leading by example. Family foresters, who often pass their forests down through generations, have a strong sense of responsibility to leave their land in better shape than they received it. This emotional connection, planted by their ancestors, drives their dedication.

Södra's forests are a patchwork of diverse interests and goals. Our diversity and biodiversity are among our greatest strengths, generating jobs and products for homes worldwide. Every tree harvested is replanted, contributing to a vital carbon sink. Our 80-year lifecycle ensures that our fiber is long and strong, reflecting our business focus.

Leadership is crucial in times of global challenges. We must make bold and sometimes uncomfortable decisions, fostering dialogue and collaboration. This applies to both hardwood and softwood pulp – the world needs both. Our forests are beautiful because we manage them properly, not because we leave them alone. Simply storing biomass in forests is not enough to generate the best climate benefit. We need to use the forest to replace fossil carbons, focusing our battle on fossil materials rather than between softwood and hardwood.

We are working hard to reduce our footprint throughout the value chain, aiming to halve emissions by 2030 as part of the Science Based Targets initiative (SBTi). This requires significant investments and innovation, but every step counts, including collaborating with customers on projects like Conscious Delivery.

The value of wood is increasing, as is interest in wood products. The winners will be those who maximize the use of the whole tree. Södra has put extra effort into this, ensuring high-quality and stable deliveries. We will be here when pulp prices fall because family foresters have a long-term perspective that enables investments.

Our role in making everyday life products that substitute fossil alternatives is crucial. However, we need to expand our voice. Even though we are a B2B company, we need to get closer to the consumer. This is not about more content on a corporate website but about a clear and consistent message that the consumer can see on the supermarket shelf.

Only 23 percent of European consumers know about carbon capture, and 65 percent believe EU forests are shrinking – they are not. We need to be vocal about these facts. We are investing time and money because it matters. If consumers don't know what we stand for, how can we expect them to choose us?

We recently handed out thousands of pocket tissues and engaged with consumers at Waterloo Station in London to show that it is possible to make good choices. If you want to join us on this mission, please let us know. We have more than 50,000 members ready to share their story.

Lotta Lyrå
President and CEO