A growing wave of corporate disengagement is putting pressure on Swedish forestry giant SCA, as L’Oréal joins Nestlé and Zalando in phasing out the company as a supplier. The cosmetics behemoth, the world’s largest in its sector, confirmed to Swedish news outlet Dagens Nyheter that It’s severing ties with SCA due to concerns over unsustainable forestry practices.
L’Oréal’s decision follows reporting by Dagens Nyheter revealing similar moves by Nestlé in November and Zalando in February. The company stated it expects to fully implement the change within the next 60 days, citing a commitment to “responsible and sustainable sourcing.” While L’Oréal described its connection to SCA as “highly limited,” the move nonetheless signals a growing market rejection of SCA’s forestry operations.
The shift by major brands reflects mounting scrutiny of SCA’s forestry practices. Dagens Nyheter has previously reported on the company’s logging in sensitive areas despite environmental certifications. Environmental organizations Skydda Skogen and Greenpeace, alongside Sámi reindeer herders, have long campaigned to raise awareness among SCA’s customers about its operations.
“This clearly shows that the market is saying no to this type of deforestation that is happening in Sweden,” said Daniel Rutschman, campaign leader at Skydda Skogen, in a statement to Dagens Nyheter. “It should be a clear signal to both the forestry sector and the government. The current line of simply intensifying forestry is not good for the reputation of Swedish forestry.”
SCA’s sustainability chief, Anders Edholm, expressed surprise at the decisions by Nestlé, Zalando, and now L’Oréal, characterizing the volumes involved as “small.” He stated that SCA maintains a dialogue with customers and is also engaging with Greenpeace and Skydda Skogen, hoping for a “constructive and solution-oriented” discussion. Edholm maintains that SCA’s forestry adheres to some of the world’s strictest environmental legislation and exceeds sourcing policy requirements.
However, Edholm also noted that neither Zalando nor L’Oréal had shown interest in direct dialogue, making it difficult to understand their specific concerns. This lack of communication underscores a growing tension between corporate sustainability demands and the practices of major resource suppliers.
What does this signify for SCA?
While Edholm downplays the volume of business lost, the symbolic impact of these departures is significant. The decisions by Nestlé, Zalando, and L’Oréal suggest a broader trend of companies prioritizing sustainability throughout their supply chains, even if it means severing ties with established suppliers. It remains to be seen whether SCA will alter its practices to address these concerns or continue to rely on its assertion that it already meets high environmental standards.

How significant is L’Oréal’s decision?
As the world’s largest cosmetics and skincare company, producing around six billion products annually, L’Oréal’s sourcing decisions carry considerable weight. While the company did not disclose the proportion of its wood fiber sourced from SCA, the move sends a strong signal to the forestry industry and other suppliers about the importance of sustainable practices.
What is SCA’s response to these concerns?
SCA maintains that its forestry operations adhere to stringent environmental regulations and exceed most industry standards. The company is attempting to engage in dialogue with environmental groups and customers, but acknowledges a lack of communication with L’Oréal and Zalando regarding their specific concerns.
Could this lead to further corporate departures from SCA?
other companies may follow suit, particularly if pressure from environmental groups and consumers continues to mount. The current trend suggests that businesses are increasingly willing to prioritize sustainability over established supply chain relationships, potentially forcing SCA to reconsider its forestry practices.
As more companies scrutinize their supply chains for environmental and social responsibility, the question remains: will SCA adapt to meet these evolving demands, or risk further isolation in the marketplace?






