Civic life – community projects
Swedish Match has a long record of community involvement, not only with direct stakeholders such as employees, shareholders and consumers, but also with a broader set of stakeholders.
A number of social initiatives are directed towards the community in which the Company operates. Swedish Match’s fundamental approach is to conduct community projects as close to the business operations as possible, but we also invest in other independent projects. These activities include support to children, disabled persons or other people in need, as well as enrich public community life, such as arts, educational institutions and restoring public spaces. They also encompass measures to protect the environment.
Sweden
In Sweden, a number of different community projects are ongoing, the most well-known being the Solstickan Foundation. Founded in 1936, with a purpose, according to its charter, of working toward “the benefit of chronically ill children, the disabled and the needy, primarily the elderly.” More than 100 MSEK have been distributed over the years in the form of the
Solstickan Prize.
The Prize is awarded to a person who, in addition to his or her ordinary work, has made an especially valuable contribution in one of the areas covered by the foundation’s charter. it is awarded annually and the current prize money amounts to 100,000 SEK.
Furthermore, Swedish Match has become a signatory member of ECLT (Eliminating Child Labor in Tobacco).
With its extensive collections, the Tobacco and Match Museum at Skansen, Stockholm, is the custodian of an important part of Swedish industrial culture.
During 2007, Swedish Match also contributed to the Swedish team in the Special Olympics in Shanghai.
Brazil
The community involvement for Swedish Match in Brazil consists of, among other things, contributions to selected institutions which take care of homeless children, elderly and disabled people. One example is the Bom Menino-project (Young Boy), a skill building program for 14–18 years old youths, from low-income families, enabling them to develop educational, employment and recreational skills.
Dominican Republic
In the Dominican Republic, Swedish Match is conducting an important environmental program for earth preservation on land owned by the company. Trees have been harvested by farmers for the valuable timber and to create arable land. When the heavy tropical rains come, the dry topsoil is washed away, and land erosion can occur incredibly fast.
In the neighboring country of Haiti, there are few trees left and the land consists largely of a rocky desert. To prevent this from happening in the Dominican Republic, Swedish Match has planted 40,000 mahogany plants that will restore the natural flora. The roots will bind the soil together and the crowns will soften the impact of the heavy rains.
US
In the US, there is a long-standing record of making charitable donations, supporting arts and continued education. Community involvement is strongly encouraged, and nearly all employees participate in some type of community involvement – whether through donations, volunteerism or participation. Many of the employees serve on non-profit boards or committees or participate in school functions and youth activities.
Each facility within Swedish Match in the US distributes a generous charitable contribution allotment to various organizations within the community, providing for character-building programs and supporting families in need. A committee comprised of employees reviews each request received and responds appropriately, funding many worthwhile causes each year.
Environment
Swedish Match believes that the work on environmental issues contributes to the long-term and sustainable development of business operations. We continuously strive to make improvements in areas with environmental impact. Thus, we create sustainable conditions for our businesses, employees and other stakeholders. The Company has participated in a global environmental initiative, the Carbon Disclosure Project, where Swedish Match received acknowledgements for its environmental efforts.
Environmental Policy
The importance of environmental issues is increasing in pace with more stringent requirements and increased awareness on the part of consumers, customers, suppliers and authorities. Legislation and other standards in the environmental area are constantly being tightened.
The Swedish Match Group has adopted an environmental policy encircling all aspects of its operations, which is based on the principles of the environmental standard ISO 14001. The policy is available to external as well as internal stakeholders on the Group’s website and on the Group’s intranet. However, the diversity of Swedish Match activities requires that subordinated environmental policies are formulated for each division.
Review of the policy implementation takes place through an internal process, where the responsible people confirm reception and implementation of the policy.
In addition corporate representatives have the obligation to analyse and review the environmental work regularly through internal as well as external audits. The results of the audits are reported to the divisional management teams.
Environmental organization
The responsibility for implementing the Group Environmental Policy and running the improvement programs lie with the divisional management teams. The operational work is carried out by appointed environmental representatives. Each major business unit has an environmental manager.
A Group Council, with representatives from all divisions, headed by the Senior Vice President Group Human Resources, is responsible for environmental issues and for reporting environmental results. The Council is to safeguard the conformity of Swedish Match’s stated policy and the Environmental Management System throughout the organization. This is achieved by regular meetings and by a structured information exchange in between these meetings. The Council members from the divisions represent the link to Corporate Headquarters.
Environmental Management System
Swedish Match works systematically with environment and quality focus in areas with environmental impact. The large majority of our business units are certified according to the environmental standard ISO 14001 representing approximately 90 per cent of the Group’s sales. During the year, the General Cigar production entities in the Dominican Republic have been certified and the entities in Honduras are planned to be certified during 2008.
Since the ISO 14001 certifications are mainly applicable to the production units in Swedish Match an internal Environmental Management System, EMS, has been developed, to cover all other business units, such as head offices and sales offices.
During 2007, the Group Council has formulated a common working platform for environmental issues. Swedish Match now has one single reporting and evaluation structure with common definitions for the entire Group.
Swedish Match Environmental Policy
- We are committed to continual environmental improvement and prevention of pollution in all our activities, products and services.
- We will operate an environmental management system, applicable on corporate, divisional and factory levels, which will safeguard that said commitment is continuously maintained.
- We are likewise committed to comply with all relevant environmental legislation, regulation and other requirements in the countries where we are operating.
- We will continuously search environmental objectives identified through our environmental management system.
- We will undertake appropriate improvements and remedial actions based on financial and environmental criteria.
- We are committed to inform and document changes of major environmental impact as a result of our activities, products and services.
Consolidated Income Statement
