Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Water
• Health and Safety
• Human Rights
• Business Ethics
• Supplier Responsibility
• Community Relations

Environmental Achievements

• Reduced fossil CO2 emissions in production by 15.3%
• Reduced water usage in water-stressed regions by 13.7%
• Installed mechanical and biological effluent treatment systems at all 43 pulp and paper mills (in progress)

Social Achievements

• Achieved health and safety target – reduced accident frequency rate by 26% (vs. 25% target)
• Reached 2,300 doctors, 5,000 hospitals and clinics, 1.2 million mothers and children, and 8 million people with hygiene information in India
• Launched Libresse Roll.Press.Go, simplifying used sanitary pad disposal

Governance Achievements

• 93% of employees received Code of Conduct training
• Improved complaint procedure for Code of Conduct violations
• Updated policy for business air travel

Climate Goals & Targets

Environmental Challenges

• Difficulty meeting biofuel target due to market conditions
• Local protests against some wind farms
• Criticism for use of business air travel and hospitality hunts

Mitigation Strategies

• Appointed independent auditors to investigate criticism regarding air travel and hunts
• Working on coordinating procurement of road haulage to reduce costs and environmental impact
• Investing in new technologies like biofuel plants and pyrolysis technology

Supply Chain Management

Supplier Audits: 80 Code of Conduct audits over the past two years

Responsible Procurement

• SCA Global Supplier Standard
• Sedex database
• Supplier audits

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G4 Core, UN Global Compact

Certifications: OHSAS 18001, ISO 14001, ISO 9001, FSC, PEFC

Third-party Assurance: PwC

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Libresse Roll.Press.Go
• Tork EasyCube
• Tork Xpressnap Image Line Dispenser
• TENA Pants Normal
• TENA Comfort with ConfioAir
• TENA Slip

Awards & Recognition

• Ethisphere Institute’s list of the world’s most ethical companies
• FTSE4Good index
• CDP Climate Disclosure Leadership Index
• Vigeo sustainability funds
• Red Dot Award for Tork Xpressnap Image Line

Environmental Metrics

ESG Focus Areas

• Climate change
• Waste reduction
• Biodiversity
• Social inclusion
• Gender equality
• Hygiene and health
• Circular economy
• Human rights
• Business ethics

Environmental Achievements

• Reduced greenhouse gas emissions from energy and electricity by 25% (target by 2030)
• Reduced greenhouse gas emissions from key raw materials, transportation, and waste by 18% (target by 2030)
• 65% of waste recovered in 2020 (target 100% by 2030)
• 92% of fresh fiber sourced from FSC® or PEFC™ certified forests in 2020 (target 100% by 2030)
• 85% of packaging manufactured from renewable or recycled material in 2020 (target 100% by 2025)
• First tissue company in Europe to produce pulp from wheat straw
• Launched Tork PaperCircle recycling service, reducing waste by up to 20% and cutting carbon emissions by up to 40% compared with other after-use waste management systems

Social Achievements

• Reached more than seven million young people in Mexico with information on hand hygiene and menstrual hygiene through collaboration with UNICEF
• Launched TENA SmartCare™ digital solutions to revolutionize elderly care
• Launched washable underwear for women with light bladder weakness and period underwear under various brands
• Implemented a new health assessment tool to promote healthy, flexible, and sustainable workplaces
• Initiated #makeabettermarkchallenge internal app to drive climate awareness and engage colleagues

Governance Achievements

• Implemented a third-party due diligence program to mitigate risks associated with suppliers and distributors
• Provided anti-corruption training to all Essity employees
• Established a whistleblower system

Climate Goals & Targets

Environmental Challenges

• Climate change
• Increased waste
• Biodiversity loss
• Social exclusion
• Plastic pollution

Mitigation Strategies

• Investments in innovation and alternative sources to reduce resource consumption and environmental impact
• Developing products and services for a more sustainable and circular society
• Reducing plastic pollution by working toward 100% recyclable packaging and increasing renewable and recycled plastic in packaging
• Collaborating with customers, consumers, suppliers, and other partners to address future demands
• Implementing sustainable manufacturing processes and products using innovative materials and smarter designs

Supply Chain Management

Responsible Procurement

• Essity’s Global Supplier Standard
• Code of Conduct for Suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Science Based Targets initiative, UN Sustainable Development Goals

Certifications: ISO standards, FSC®, PEFC™, Nordic Swan Eco label, Green Seal

UN Sustainable Development Goals

• 3
• 5
• 6
• 12
• 13
• 15

Essity contributes to these SDGs through its operations, offerings, expertise, and partnerships.

Sustainable Products & Innovation

• TENA SmartCare™
• Washable underwear
• Wheat straw pulp
• Tork EasyCube

Awards & Recognition

• CDP 'A' for Forests and 'A-' for Climate
• Corporate Knights' 100 most sustainable companies
• Dow Jones Sustainability Europe Index
• Ecovadis Platinum Medal
• FTSE4Good global Sustainability Index
• MSCI AAA rating

Environmental Metrics

ESG Focus Areas

• Sustainability

Environmental Achievements

• Reduced CO2 emissions by -15% (Scope 1 and 2) and -9% (Scope 3) in 2021 compared to the 2020 baseline. Targets are -35% (Scope 1 and 2) and -18% (Scope 3) by 2030.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Cost fluctuations and pressures, including prices of commodity and raw materials, and costs of labor, transportation, energy, pension and healthcare.
• Managing disruptions in credit markets or changes to our credit rating.
• Maintaining key manufacturing and supply arrangements and managing disruption of business due to factors outside of our control, such as natural disasters and acts of war or terrorism.

Mitigation Strategies

• Substantial and continuous price increases to compensate cost inflation.
• Cost savings of SEK 2.8bn (2019-2021) and a Manufacturing Roadmap targeting annual cost savings of SEK 0.5bn– 1bn (2021-2025).
• Price increases are always part of the everyday mind-set, work and process for every category in every market.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Science-Based Targets initiative

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion (DEI)
• Business Ethics and Human Rights
• Circular Economy
• Responsible Sourcing
• Product Safety
• Occupational Health and Safety
• Hygiene and Health

Environmental Achievements

• Reduced carbon footprint of TENA pads and liners by 43% between 2008 and 2022
• Increased recycled content in product packaging up to 85%
• First company to integrate wheat straw into tissue making process
• First tissue production site (Lilla Edet, Sweden) completely fossil fuel-free
• First tissue producer to run a paper machine fully on green hydrogen (Kostheim, Germany)
• First tissue company in Europe to produce pulp from wheat straw (Mannheim, Germany)

Social Achievements

• Launched "I Care" initiative for a safe and healthy work environment
• 90% of new employees received Code of Conduct training
• 90% of employees completed mandatory online anti-corruption training
• TENA’s #LastLonelyMenopause campaign won Gold Award at the British Arrows 2023
• Collaborated with UNICEF Mexico to educate on hygiene and break menstruation taboos, reaching over seven million young people

Governance Achievements

• 90% of total purchasing spend was to suppliers complying with Essity's Global Supplier Standard
• Established a whistleblowing system for reporting breaches

Climate Goals & Targets

Environmental Challenges

• Being an energy-intensive company with high CO2 emissions from tissue manufacturing
• Reducing upstream and downstream emissions in the value chain

Mitigation Strategies

• Investing in state-of-the-art technology and operational best practices to improve energy efficiency
• Decarbonizing operations through renewable energy sources (biomass, biogas, geothermal energy, green hydrogen)
• Encouraging suppliers to set their own climate targets
• Working with logistics partners to shift to low-carbon transport options
• Developing a new tissue production process using up to 90% less water and 40% less energy

Supply Chain Management

Supplier Audits: 90% of total purchasing spend was to suppliers that comply with Essity’s Global Supplier Standard in 2022

Responsible Procurement

• Global Supplier Standard including a Code of Conduct for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Climate change impacts on operations and supply chain

Transition Risks

• Regulatory changes, market shifts towards sustainable solutions

Opportunities

• Development of energy-efficient products and processes
• New business models in the circular economy

Reporting Standards

Frameworks Used: Science Based Targets initiative (SBTi), UN Global Compact, Paris Agreement

Certifications: FSC™, PEFC™, Ecovadis Platinum (2023)

UN Sustainable Development Goals

• 3
• 5
• 6
• 12
• 13
• 15

Essity focuses on SDGs 3 (Good health and well-being), 5 (Gender equality), 6 (Clean water and sanitation), 12 (Responsible consumption and production), 13 (Climate action), and 15 (Life on land).

Sustainable Products & Innovation

• Tork Biobased Wiper
• Libero Hybrid Diaper
• Zewa Ultra Soft With Wheat Straw
• TENA SmartCare
• Leakproof Apparel
• Tork PaperCircle®

Awards & Recognition

• Gold Award at the British Arrows 2023 (TENA’s #LastLonelyMenopause campaign)
• Named 'Diversity Leader' by Financial Times in 2021 and 2022
• Awarded A in CDP Forest 2022
• Highest rating, AAA in the MSCI ESG Ratings
• Awarded Platinum in the 2023 Ecovadis CSR Rating

Environmental Metrics

ESG Focus Areas

• Climate change
• Circular economy
• Biodiversity
• Human rights
• Diversity, Equity, and Inclusion (DEI)
• Occupational health and safety
• Product safety
• Business ethics

Environmental Achievements

• Reduced Scope 1 and 2 emissions by 26% from 2016 to 2023
• First company in the industry to produce tissue in a CO2-free process using renewable hydrogen (Mainz-Kostheim, Germany)
• First large-scale tissue production facility with fossil CO2 emission-free production (Lilla Edet, Sweden)
• 85% of Essity’s innovations yielded social and/or environmental improvements.

Social Achievements

• Launched "For everybody and every body" campaign in Sweden
• Continued to implement global DEI strategy and roadmap
• Reduced Total Recordable Injury Rate (TRI-R) by 58% compared to 2019
• Invested approximately SEK 81m in more than 500 hygiene and health-related projects

Governance Achievements

• Completed divestment of operations in Russia
• Implemented a comprehensive climate transition strategy aligned with TCFD recommendations
• Maintained a solid investment grade rating

Climate Goals & Targets

Environmental Challenges

• Economic conditions impacting consumer purchasing power
• Stringent environmental regulations
• Global health risks and supply chain disruptions
• Geopolitical risks
• Changing demographics and consumer preferences
• Competition
• Dependence on major customers and sales channels
• Risks related to production facilities
• Unethical business practices
• Legal risks
• Supplier risks
• Energy price risk
• Information and IT risks
• Employee recruitment and retention
• Cost of input goods
• Currency risk
• Interest rate risk
• Credit risk
• Liquidity and refinancing risk
• Climate change (physical and transition risks)

Mitigation Strategies

• Cost reduction, efficiency improvements, and product innovation to manage economic fluctuations
• Science-based targets and sustainability initiatives to address environmental impact and climate change
• Measures to safeguard employee health and adapt sourcing, logistics, and digital interaction during health crises
• Continuous monitoring and assessment of geopolitical developments
• Customer and consumer insights to guide innovation and adapt offerings
• Monitoring and anticipating changes in political decisions and regulations
• Maintaining a dispersed customer structure and building strong customer relationships
• Balancing loss-prevention activities and insurance coverage
• Regulatory compliance program, Code of Conduct, and training to minimize unethical practices
• Continuous monitoring and anticipation of legal changes
• Diversifying suppliers and ensuring compliance with agreements
• Centralized energy risk management, hedging, and monitoring of energy policy
• IT governance framework, information security management system, and security training
• Staffing, competency, and succession planning, and building a strong employer brand
• Purchasing agreements, efficiency improvements, and price increases to offset input cost fluctuations
• Hedging strategies to manage transaction and translation exposure
• Managing interest rate risk through debt maturity distribution and financial derivatives
• Credit checks, credit limits, and assessment of expected credit losses
• Maintaining a solid investment grade rating and liquidity reserve
• Contingency plans and investments to safeguard production and sourcing in high-risk areas

Supply Chain Management

Supplier Audits: 55 ethical audits conducted in 2023

Responsible Procurement

• Global Supplier Standard
• Supplier Code of Conduct
• Sedex self-assessments and SMETA audits
• Risk-based approach to supplier selection

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water scarcity
• Raw material shortages

Transition Risks

• Increased restrictions on carbon emissions
• Limitations on water use
• Changes in consumer behavior

Opportunities

• Development of new business models
• Competitive advantages through sustainable innovations
• Increased demand for sustainable solutions

Reporting Standards

Frameworks Used: GRI Standards, SASB Household & Personal Products Standard, TCFD recommendations

Certifications: ISO 9001, ISO 13485, ISO 14001, ISO 45001, EMAS, FSC, PEFC

Third-party Assurance: Ernst & Young AB

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 5: Gender equality
• Goal 6: Clean water and sanitation
• Goal 12: Responsible consumption and production
• Goal 13: Climate action
• Goal 15: Life on land

Essity’s initiatives contribute to these goals through its products, services, and sustainability efforts

Sustainable Products & Innovation

• Washable period pants
• Washable pads
• Flexisheets Tubeless household towels
• Natural color paper towels and toilet paper made from 100% recycled fiber
• TENA SmartCare Change Indicator
• Caressa digital platform

Awards & Recognition

• AAA score in MSCI’s ESG rating
• CDP’s “A list” for combating deforestation
• Financial Times European diversity leader
• One of the world’s 100 most sustainable companies by Corporate Knights
• Inclusion in S&P Global’s Sustainability Yearbook 2024
• EU Product Safety Award (Silver Medal)