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Global About Södra Group targets and strategy

Group targets and strategy

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Macro-environmental factors are changing, and creating both opportunities and challenges for Södra. Changes are also taking place in our micro environment — the local environment and our own organisation — that affect us. Over the past year, we have been updating the Group-wide strategy in order to meet these changes, and to create a clear direction for the road ahead. The strategy addresses how we connect forest owners with customers and consumers — from one family to another.

Our unique business model

Södra serves as the bridge between forest estates and consumers, where we are always striving to maximise the value of forests and the customer benefi ts we create. 

That is how members and employees refi ne and renew family forestry together, over and over again. Via our fi nancial model, the Södra Model, every estate shares the added value we create in Södra, and our cooperative form of ownership ensures a unique commitment and long-term approach. Our business model is unique and the starting point for our strategy.

Revised strategy with five key areas

We call our Group-wide strategy ʻFrom one family to another.ʼ The name comes from Södraʼs role as the bridge between family forestry and families in the community. The raw material is delivered from membersʼ forests, which have oft en been in the family for generations, and converted into essential and sustainable products via our mills. The products fill important functions in everyday family life – from the coff ee fi lter in the morning, to climate-smart buildings with timber frames.

The strategy has a framework of five key areas that will remain relevant over time. In each of the fi ve key areas, there are strategic areas that provide a more in-depth view and that may also change. The framework creates simplicity, clarity and a sense of pride in the shift s we need to make. It also places a clear focus on members and customers.

Our key areas

  • People and culture at the centre
    The focus of both the framework and our business is people and culture. Our values are central and guide how we act, which is also why people and culture are the key elements of our strategic framework. We put safety first, apply value-driven leadership, act democratically and benefi t from the added value of digitalisation.

  • Strengthened family forestry and profi tability for forest estates
    Members and owners are our natural starting point. In this area, we will strive together to strengthen forest ownership and the profitability of forest estates by improving our off erings, services and meetings, and increasing opportunities for knowledge and learning.

  • Leading offer to our customers and consumers
    We will deliver a strong and leading offer to our customers and consumers. We therefore need to continuously evaluate and renew our product portfolio and develop new products, fi nd new applications for existing products and solve our customersʼ problems.

  • Optimised value chain from forest owner to customer and consumer
    Our value chain forms the bridge between members and customers and this is where raw material, knowledge, services and data flow. We will improve our processes and quality control tools, use data-driven decision making to  streamline all flows, and increase our value chain competitiveness.

  • Sustainable use of the forest and earth’s resources
    The final key area deals with how we are taking care of our planet. We will contribute to the transition to a climate-neutral economy and ensure that membersʼ forests can also be used by generations to come. We will always take responsibility for the climate transition, biodiversity, the adaptation of forest management to climate change and being a force to be reckoned with in business policy.

Common goals

Our strategic framework includes six common goals. These have been developed to balance the concern for our people through reduced occupational injury frequency, the protection of our members through the profitability of the type farm, the assurance of a financially sustainable value chain through ROCE and equity, the desire to deliver a leading offer to our customers through customer satisfaction and the concern for our the planet through increased positive climate effect.

We have set clear target values ​​for our goals until 2032.​​​​​

Our 6 overall goals

  • Occupational injury frequency
    We want to reduce the occupational injury frequency to 3 per year, until 2032. This is to follow up on our movement where safety comes first and our people are at the center.

  • The profitability of the model farm
    We want to increase the profitability of the model farm. This is to ensure that membership in Södra is the most attractive option for forest owners in southern Sweden.

  • Return on capital employed and equity ratio
    We aim to have a ROCE (return on capital employed) of 10% and equity of 55%, by 2032. This is to ensure that we deliver value through our industries in a financially sustainable manner.

  • Customer satisfaction
    We aim to have a customer satisfaction score of 80 for Södra Wood and 85 for other business areas by 2032. This is to ensure that we continue to deliver products that are requested by our customers in a way that makes them satisfied.

  • Positive climate effect
    We aim to increase our positive climate effect. This is to ensure that we take responsibility and are the driving force in society's transition towards climate neutrality.

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