Reduce greenhouse gases

Our goal is to reflect the commitments outlined in the Paris Agreement and thereby reduce emissions of greenhouse gases in our value chain.

The scope of this focus area is the entire value chain.

Our commitment

Our operations are highly dependent on resilient eco systems; we cannot do business without significant input of raw material from nature. At Swedish Match, we set out to do our part in addressing climate change and commit to map and actively reduce emissions in our business value chain.

Accounting for greenhouse gases in our value chain

We have assessed and reported greenhouse gas (GHG) emissions for Scope 1 (direct emissions), Scope 2 (indirect emissions) and part of Scope 3 (other indirect emissions not covered in Scope 2), according to the Greenhouse Gas Protocol¹⁾, since 2008. On an aggregate corporate level, the target has been to stay at or below the baseline established in 2008, which has been met.

During 2016, we have extended our scope for GHG emissions and mapped the full value chain according to the Corporate Value Chain Standard (Scope 3) of the Greenhouse Gas Protocol. This has been done with the help of external expertise. The climate footprint for Swedish Match amounts to 254,572 ton CO₂-equivalents (CO₂e) for the year 2016. Scope 1 and 2 emissions (from our own operating units and including production of energy) account for 13 percent of the total GHG emissions. The remaining 87 percent include emissions both up-and downstream (Scope 3) in our value chain. The larger part of the Scope 3 emissions stem from the extraction and production of raw materials, e.g. tobacco, purchased timber and nylon, as well as packaging material.

This first GHG accounting, including the full Scope 3, covers data for all operations controlled by Swedish Match. Generic emission factors have been used to a large extent to calculate emissions²⁾. All six GHGs covered by the Kyoto Protocol³⁾ are included in the calculations and assumptions and emission factors have followed a conservative approach. With this scope we have formed a new baseline for our efforts on reducing GHG emissions, highlighting the importance of also focusing efforts up- and downstream in our value chain.

Setting science-based targets

In 2017, we will refine the initial mapping with more specific data from our suppliers and pursue a more proactive dialogue on potential reductions of GHG emissions. We will explore the possibility to adopt an emission reduction strategy with science-based targets. Science-based targets are in line with the level of decarbonization required to keep the rise in global temperature below 2°C compared to pre-industrial levels⁴⁾. The work done within this focus area provides input to the update of our environmental management systems according to 14001:2015.

1) International standard for calculating and reporting climate impact from business activities.
2) Main sources of reference for emission factors include DEFRA, Ecoinvent and IEA.
3) IPCC Fourth Assessment Report.
4) As described by the Intergovernmental Panel on Climate Change (IPCC).

Creating a new baseline for performance indicators

Table Greenhouse gas emissions presents indicators for the full value chain. The year 2015 forms the new baseline for our efforts. With a clear roadmap for emission reductions developed in 2017, our intentions are to also report on reduced emissions.

Table Energy use in our own operations presents energy indicators for our own operations as a supplement to indicators on GHG emissions.

Greenhouse gas emissions (metric tons CO₂e)	2016	2015	2014
Scope 1¹⁾	11.985	11.998	13.128
Scope 2	20.213	19.917	19.974
Scope 3	222.375	208.018	14.845²⁾
Total emissions	254.572	239.934	N/A
Total emissions (per MSEK sales)	16.4	16.6	N/A