Sustainability in Brief - Essity
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Essity breaks barriers for improved well-being At Essity we are and contributes to a healthy, sustainable and dedicated Global Trends and Drivers circular society. As a provider of hygiene and health solutions, we analyze our external environment and market Read more about Essity and how we contribute to the Sustainable to improving as a means of identifying external trends, drivers, opportunities and risks. Development Goals, what we do to break taboos in areas such as menstruation and incontinence and about our educational initiatives: well-being Growing and aging population and higher living standards The growing global population, an aging population, decreasing change, resource scarcity and considering the entire life cycle of www.essity.com through leading poverty and rising living standards increase the demand for hy- products, mean that every company must integrate these issues hygiene and giene and health products. The increased prevalence of chronic into their business models to remain successful in the long term. Essity is a leading global hygiene and health company. We improve well-being through our conditions and greater life expectancy of people with chronic products and services. Sales are conducted in approximately 150 countries under the leading health solutions. conditions are expected to increase demand for incontinence Digitalization global brands TENA and Tork, and other strong brands, such as JOBST, Leukoplast, Libero, products and medical solutions. Digitalization presents various opportunities to improve all parts Libresse, Lotus, Nosotras, Saba, Tempo, Vinda and Zewa. Essity has about 46,000 employees. Net sales in 2019 amounted to approximately SEK 129bn (EUR 12.2bn). of the hygiene and health product value chain, from product Greater awareness of hygiene and health development and production, to sales. Greater awareness of hygiene and health drives market demand for hygiene products. Demand for health care products is also The empowered consumer growing as access to health care increases with rising prosperity To create value for our stakeholders and society, our and urbanization. Digitalization today offers consumers limitless opportunities to assess information about different products and services, and sustainability work is driven by three platforms: for companies to engage with consumers – particularly through Continued focus on sustainability Well-being More from less Circularity The rising awareness of sustainability issues, including climate social media. Sustainable Development Our commitment Our impact Goals prioritized by Essity Meeting societal needs Essity enables more people to enjoy a fuller life. Well-being We develop sustainable products and services For us at Essity well- for hygiene and health, educating children, being means caring consumers, patients and care professionals. and daring to act boldly on social Breaking the silence issues that Essity works to break the silence around issues others fear such as menstruation and incontinence. to champion. Access to hygiene solutions Essity improves access to sustainable sanitation and hygiene solutions. More from less Solutions for sustainable consumption We build value This means focusing on resource efficiency in the using less by value chain and smarter product design and usage. enabling behaviours that support We work to promote sustainable sustainable forest operations consumption. We ensure the use of certified fiber in our products. Circularity We aim to design products and Circular solutions services that We want to increase use of renewable and recycled materials and explore reuse and recycling. fit into a circular society. 13
Creating Sustainable Value Together Our Partnerships As a global company providing products and services to hundreds of millions of people every Well-being day, we can make a real impact when it comes to people, society and the environment. Essity and UNICEF in Mexico We invite our customers and different actors in society to collaborate with us in breaking barriers to well-being. We collaborate Essity with its product brands Saba and Tork, together with UNICEF in Mexico, work to to raise awareness and develop standards in health and hygiene. Together we create real impact that improves the lives of jointly promote awareness of the importance of good hand hygiene, to break taboos millions worldwide. around menstruation and to strengthen standards and guidelines to support good hygiene and health. Over the next three years, the collaboration will provide education Through our sustainability platforms – Well-being, More from less and Circularity – we are able to create real value together to thousands of pupils, teachers and parents in Mexico City and Chihuahua about with our customers, consumers and partners. attitudes and practices in connection with menstruation and hand washing and discussions will be held with relevant stakeholders who can drive change in Mexico. United Nations (UN) Sustainable Development Goals (SDGs) More from less As a provider of leading hygiene and health solutions, Essity has an important role to play Science Based Targets Our targets to reduce carbon emissions have been approved by the Science Based in contributing to the SDGs. Targets initiative and are in line with the ambition in the Paris agreement to reduce The UN SDGs provide the global community with a roadmap global warming. This is a climate initiative driven by CDP, WRI, WWF and UN Global on how to combat global challenges related to economic, Compact. We see opportunities to work together with both suppliers and customers social and environmental sustainability. The goals reflect a to reduce our common climate impact. growing awareness of the relationship between good hygiene and health, and how this improves well-being, economic and societal progress in the world. Circularity Ellen MacArthur Foundation Our contribution to the SDGs Ellen MacArthur Foundation was launched to accelerate the transition to a circular We focus specifically on SDG 3, 5, 6, 12, 13 and 15, as our economy. Our membership in Ellen MacArthur Foundation provides a space to share, business can best contribute to these goals. At Essity, our work learn and put circularity ideas in practice. We take part in the New Plastic Economy to actively break barriers and increase knowledge of hygiene that is in line with Essity’s target to make all packaging 100% recyclable and increase and health are important contributions to the SDGs, including recycled plastics by 2025. activities during the year such as educating children and young Moving forward, we aim to broaden our collaboration with customers to further people in matters relating to hygiene. improve our understanding of how we can support their sustainability strategies In 2019, for the fourth consecutive year, Essity was the convening and targets. Ultimately all Essity packaging, products and services will be designed partner for the UN Foundation’s annual Global Dialogue to act to promote sustainable consumption and circular behavior. together with others and make progress regarding the SDGs. Awards, partnerships and memberships "As a world leader in health, hygiene, and sanitation Essity has long been a valuable ally to the UN and UN Foundation in tackling some of the biggest issues faced by humanity. Essity's exemplary commitment to the Sus- tainable Development Goals is what is needed from the private sector more than ever now for the global community to reach the 2030 agenda." Elizabeth Cousens President and CEO, United Nations Foundation 24 5 3
Objectives, Targets and Outcomes Contribute to a sustainable and circular society Essity strives to reduce resource consumption and toward efficient recycling and composting of our hygiene and health products. Target Outcome 2019 Target Outcome 2019 Generate increased shareholder value through profitable growth Science Based Targets 2030 FSC® or PEFC™ Essity focuses on profitable growth in order to generate long-term value for our shareholders. Scope 1 and 2 –25% –5% certified 100% 79% Scope 3 –18% –3%1) fresh fiber Target Outcome 2019 Policy Production Maintain a Share of packaging Annual organic Capital Structure waste subject to 2030 >3% 4.5% solid investment manufactured from renew- 2025 68% 100% 63% sales growth1) Policy grade rating able or recycled material 85% material or energy recovery Long-term Water Sourced from Adjusted return on stable and Our sites are to suppliers who capital employed2) >15% 13.8% Dividend Policy rising • Reduce levels of suspended solids 2020 –26% comply with 2020 85% dividends • Reduce water usage –10% –2% Essity’s Global 100% • Reduce organic waste (BOD) –29% Supplier Standard 1) Net sales excluding exchange rate effects, acquisitions and divestments. 2) Excluding items affecting comparability. 1) Outcome of Scope 3 is for 2018. Enable more people every day to enjoy a fuller life Enable our employees to realize their full potential, as part of one winning team Essity aims to enable more people every day to enjoy a fuller life by raising Our employees are our main asset and we strive continuously to develop our corporate culture, expertise and leadership to hygiene and health standards around the world. create the best possible conditions for a successful Essity. Target Outcome 2019 Target Outcome 2019 Decrease in accident frequency rate Share of innovations that yielded social and/or environmental improvements People and At least 69% Employee Health and Safety 2020 47% 69% –50% –47% nature innovations 33% 59% Decrease in accident frequency rate 38% 39% 42% Business ethics and Code of Conduct Share of employees who received 100% 96% regular training in the Code of Conduct 2017 2018 2019 2017 2018 2019 46 57
“I live with lymphedema and in my work at Essity in compres- sion therapy, with our Breaking Barriers to Well-being leading brand JOBST, my colleagues and Medical Solutions I help others in a We offer products and services in wound care, Every day, hundreds of millions of people use our products in order to enjoy a fuller life. similar situation.” compression therapy and orthopedics. JOBST We break barriers by raising awareness on hygiene and health topics and by stimulating has a complete assortment of compression global dialogue to break taboo and stigma. therapy solutions for venous and lymphatic conditions, from support compression Raising awareness for everyday life to medical wear. We focus on breaking taboos in areas such as menstruation and incontinence. We highlight the importance of good hand hygiene. Hand hygiene is important for your personal hygiene and crucial in avoiding the spread of infections and to combat antimicrobial resistance. Access to clean water and soap can even save lives. For years we have been educating about the importance of proper handwashing. Educational initiatives are conducted in areas such as hand- washing for children, menstruation and puberty, as well as incontinence care for nurses and caregivers. Global dialogue Essity promotes a global dialogue to increase awareness of the importance of hygiene and health and their relation to well-being. Together with partner organizations such as United Nations Foundation and the Water Supply & TENA campaign applauds Sanitation Collaborative Council (WSSCC) we strive to inspire decision-makers to drive change in policy or practice and to advocate for raising hygiene standards. aged women’s bodies #ageless, a newly launched campaign aims to change perceptions of what it means to be a woman living with incontinence. The campaign aims at destigmatizing incontinence and the aging of the female body. Virtual reality app for Hand Hygiene education The Tork Virtual Reality Clean Hands Training and Education is a solution specifically designed to make hand hygiene training more engaging and inspiring for healthcare professionals. This new and unique way of training is a result of our collaboration with university hospitals and world leading experts in hand hygiene. 68 79 ©UNICEF México
Responsible Sourcing and Resource New fibers from wheat straw Efficient Production Alternative fiber enhance the sustainability performance of our products and provide alternatives to the wood-based fresh fiber We work to create customer and consumer value while improving the and recycled fiber used in our products. environmental footprint of our products throughout the product life We are investing approximately SEK 400m cycle – from sourcing to waste management. in an integrated facility to produce pulp Customers and consumers who use our products should feel reassured that they are sourced, based on alternative fiber from plant-based manufactured and distributed in a responsible way. This is why we are committed to responsible agricultural by-products such as wheat straw. business practices throughout our value chain. The production at Essity’s tissue plant in Mannheim, Germany, is expected to commence in 2021. Responsibly sourced materials All suppliers are to sign our Global Supplier Standard. It includes requirements on quality, product safety, the environment and chemicals. It also contains a Code of Conduct for Suppliers that covers our expectations as regards human rights (for example, child labor and forced labor) and employee relations as well as health and safety. All our requirements apply to all suppliers of raw materials, finished products and services. Using a risk-based approach, we conduct on-site visits and audits to verify compliance. Essity has an established process to perform continuous risk assessments of the company’s suppliers and sourcing categories. Renewable fibers Most Essity products contain some sort of renewable fiber; be it fresh wood-based fibers in personal care products or Climate commitment fresh wood-based fiber, recycled fiber and alternative fiber By the end of this decade our target is to reduce greenhouse gas in tissue products. Essity is committed to source wood-based emissions from energy and electricity with 25% and key raw materials, fresh fiber from responsibly managed forests and we use a transports and waste with 18%. The targets are approved by the significant percentage of recycled fiber in our tissue products. Science Based Targets initiative, which helps companies determine Our target for sourcing of fresh fiber is for all wood-based which greenhouse gas emission reductions they need to achieve to fresh fiber in our products to be FSC®1 or PEFC™2 certified. decrease the global temperature rise in accordance with the Paris In 2019, 79% of Essity’s wood-based fresh fiber was FSC® or Agreement. This approach will further reduce the carbon footprint PEFC™ certified, and the remainder fulfilled FSC’s Controlled of our products and contribute to a better society. Wood standard. 1 Forest Stewardship Council 2Programme for the Endorsement of Forest Certification Ambitious waste target Essity’s target is that all production waste will be subject to material and energy recovery by 2030. In 2019, 63% of our waste was recovered and our production sites are working to reduce and find alternative solutions for their waste. Recycled waste can be used as raw materials for other industries, Sustainable value creation such as the cement, brickmaking and construction in Kostheim industries, or can also be used for energy Our production facility in Kostheim, Germany is a extraction or composted. great example of how Essity constantly looks for new ways to recycle production waste, energy and even used paper towels. Kostheim was one of the first mills with permit and certificate to recycle used hand towels in the production as part of our Tork PaperCircle® recycling service. In 2019, Kostheim reduced the use of plastics for packaging of finished goods by 60% and installed solar panels on the roof of a new converting hall, contributing not only to the energy supply of the facility but also to the surrounding community. 10 8 11 9
Sustainable Solutions We want to develop products and services for a sustainable and circular society. This is Data driven cleaning achieved by reducing consumption during use, developing products with smarter design Tork EasyCube® is a facility management software providing real-time data and superior materials and optimizing resource efficiency in the whole life cycle. on cleaning needs – to inform staff on exactly what is needed, when and where. The solution has enhanced efficiency, staff engagement and user Innovating to get more from less satisfaction for our customers around the world. We have initial indication With less material use we save resources and waste, while offering the best product performance. Thinner incontinence that the solution results in 24%* fewer cleaning rounds with improved care, baby care and feminine care products help reduce resource use while delivering the same or even better quality and that we save 20% time**. performance. Coreless toilet paper rolls lead to less transport and waste. * The weighted average of results achieved by two Tork EasyCube® customers, measured during 158 days, before and after the implementation of Tork EasyCube Digital and sustainable innovations **Based on the documented results achieved by three Tork EasyCube customers, measured before and after the implementation of Tork EasyCube We continuously develop our offerings to help our customers become more cost-efficient, digital and sustainable. This involves prioritizing the development of services that contribute to more sustainable solutions such as TENA SmartCare™ or Tork EasyCube®. Another example is our TENA solutions service that aims to optimize product use, minimize the risk of leakage and reduce waste. Safe products Feminine Care PureSensitive™ Essity follows strict requirements to ensure that all materials in our products are safe for consumers, employees and the Through innovation, we want to make an impact on people’s lives and environment. We have a global product safety policy in place and work closely with our suppliers to ensure that our high constantly come up with new solutions that address different needs. standards are met. Feminine Care’s launch of PureSensitive™ for our leading brands Libresse, Bodyform and Nana is one such example. We developed Life cycle assessment a whole range of feminine care products made from skin friendly By integrating life cycle assessments (LCA) into our innovation work, we monitor how we improve the environmental profile ingredients that respect ph balance and intimate sensitive skin. of our innovations as well as our product assortments. We follow ISO Standards, specific category rules and use third party In France, the Nana PureSensitive™ panty liner was named verifications to secure credible LCAs. One example is our assortment for TENA Pants and Underwear in Europe, which has Product of the Year 2020. a 33% lower carbon footprint than in 2008. TENA SmartCare™ Better solutions with This range of digital solutions is another example of innovative Essity products, to help revolutionizing elderly care. TENA SmartCare™ lower carbon footprint Change Indicator helps both caregiving relatives and professional An assortment LCA includes the majority of all products caregivers to know when to change incontinence protection without sold in a region. This means that we can measure the manually checking it. This improves comfort, dignity and well-being. environmental improvements from innovations, sustainability Fewer manual checks means less intrusion, enables truly individualized targets and step by step improvements from daily operations care and optimum use of resources. It also reduces risk for leakage and for the whole assortment over the years. unnecessary skin exposure to urine. Carbon footprint reduction, % Libero® diapers Incontinence Products 2008–2019, % Professional Hygiene 2011–2019, % The life cycle assessments performed by Essity All Libero® diapers are developed to deliver great well-being for TENA Flex –18 Tork napkins –9 have been verified by the Swedish Environmental Research Institute (IVL). The table is updated the baby as well as the parent. Libero® diapers offer a skin-friendly TENA Pads and Liners –33 2011–2017, % every second year and existing results relate to choice; they are dermatologically tested and are recommended by TENA Comfort –19 Tork papers hand towels -18 the range of products in Europe. the association Asthma Allergy Nordic. Furthermore, our diapers TENA Men –20 TENA Pants and Underwear –33 Consumer Tissue 2011–2018, % are certified by The Nordic Ecolabel and we only use FSC®-certified TENA Slip –20 Toilet paper –10 wood-based fibers in our products. With ambitious efforts, Libero® TENA Bed –11 Household towels –19 in Europe has managed to decrease climate impact from diapers Feminine Care Baby Care 2008–2017, % by up to 25% since 2008. Feminine Ultra towels –17 Libero and Lotus open diaper –25 Libero and Lotus pant diaper –16 12 10 13 11
Circularity After Use Essity’s ambition is to design products and services for a circular society. We want to be Coreless toilet paper part of a system where less goes to waste. This calls for creative thinking, new business Lotus Moltonel Sans Tube is Essity’s first coreless toilet models and partnerships. paper roll, which creates less waste as it has no tube to dispose of. It also means there is more paper on the roll A life cycle perspective and therefore it does not need to be changed as often. Access to hygiene and health products is essential for people around the world. We aim to take responsibility for the entire life cycle, even after the products are used. We already use recycled fibers for a high proportion of tissue products and we have continuously made personal care products thinner, with less materials and reduced waste. Essity is committed to reducing plastic pollution Essity makes hygiene and health products that respond to specific needs. In some of our products and packaging we use plastics to guarantee that they are clean, safe to use and fulfill the hygiene Renewable materials in purpose. Over time, we use less and less materials in our products and we are increasing renewable or recycled plastics in our packaging. Essity is committed to working toward 100% recyclable packaging packaging and to increase renewable and recycled plastic in our plastic packaging. We achieved We are committed to increase the use of renewable 68% renewable or recycled materials in our packaging during 2019. or recycled plastics in our packaging. Early 2020 we introduced packaging made of renewable materials on Creating new resources a significant part of our portfolio, for example feminine Tissue products are made of renewable wood-based fresh, recycled or alternative fibers. After use, tissue products liners, Ultra towels and Maxi towels. Our towels plastic can contribute to renewable energy through incineration. They can also be composted or recycled. Together with bags are now made from at least 50% renewable customers and consumers we work to increase recycling and the availability of secondary raw material, such as sources, using responsibly grown sugar cane and recycled fibers. The world’s first recycling service for used paper hand towels, Tork PaperCircle®, is a one example our liners paper packaging is made from 100% of a collaboration on circularity, helping our customers and consumers to become more sustainable. renewable fibers. Tork PaperCircle® Tork PaperCircle® is one-of-a-kind recycling service for used paper hand towels. We help our business and customers go circular by collecting and recycling used paper hand towels into new tissue products. Tork PaperCircle® is a complete solution that helps our customers to meet their sustainability targets by reducing waste with up to 20% and cut the carbon emission by up to 40%* compared to other after use waste management. *Results of a life cycle assessment (LCA) conducted by Essity Tork and verified by IVL, Swedish Environmental Research Institute in 2017, where the avoided processes have been taken into account 14 12 15 13
Responsible Business Human rights Essity’s Beliefs and Behaviors and Code of Conduct provides guidance on our way Essity’s approach for ensuring respect for human rights in conjunction with the company’s operations is built on of doing business. the UN Guiding Principles on Business and Human Rights (UNGP). In accordance with this framework, due diligence Essity’s Code of Conduct is the Group’s steering document for responsible business operations. The Code of audits are conducted regarding the management of the company’s impact on human rights. Essity also conducts Conduct is based on the UN Declaration of Human Rights, the ILO Core Conventions, the OECD Guidelines regular Group-wide and local risk assessments to evaluate the risks and effects on human rights. In 2020 a local for Multinational Enterprises, the UN Global Compact Principles and related legislation. risk assessment was carried out in India with the focus on human right risks in the supply chain. Employees and the Code In 2019, we launched an updated Code of Conduct, which 96% of our employees have completed a new training course on. The Code is an important part of fostering a culture where it is natural to do the right thing and to speak up about ethical concerns. Here supporting our leaders to champion the Code and reinforce Essity’s ways of working is essential, as well as arranging employee workshops on the Code. Whistleblower system Essity provides employees with a dedicated reporting Our work with anti-corruption channel for serious breaches or violations of laws in all Essity’s Code of Conduct, as well as its Anti-bribery and Corruption Policy, represent the countries in which the company has operations. The most important steering documents in the area of anti-corruption. The anti-corruption whistleblower system is operated by an external third program is regularly assessed and includes third-party reviews of suppliers and distributors. party and is open 24/7. Employees have the option of An anti-corruption e-learning course is part of Essity’s onboarding program, and sales and filing a report over the phone or online in 25 different purchasing employees undergo special training tailored for their activities. languages to facilitate the process. 16 14 17 15
Enabling Employees to Realize Their Full Potential Our Response to COVID-19 Our employees are key for our future success and we continuously strive to develop our corporate Caring for hygiene, health and well-being is key for Essity. culture, expertise and leadership to create the best possible conditions for a successful Essity. We Our approach follows three underlying principles: offer career opportunities in a leading global hygiene and health company that is breaking barriers to well-being in the world. • Contribute to society by producing A Collaborative and Caring Culture essential products and through Care Essity’s corporate culture is based on our Beliefs & Behaviors: We are committed, Beliefs & Behaviors collaboration with other organizations for Our We care, We collaborate, and We have courage. These express what is required of us all in order to develop Essity and are regularly followed up in employee surveys. • Care for our people by minimizing risk People Secure of infection or transmission Business Our “Beliefs & Behaviors” are supplemented by Essity’s Code of Conduct. Employees receive training in the Code on how we conduct our business in a responsible manner, which benefits the company, society and the environment. • Secure business success by continuing Success to serve our customers and consumers We are We care for Work With Impact and a Powerful Purpose committed to delivering our customers, consumers, the Contribute to Society superior results. environment and each other. Essity is dedicated to improving well-being through leading hygiene and health With these three principles in mind we will solutions – necessities that play an essential role in improving well-being for every- one, everywhere. We inspire employees across the company to join our purpose and Be a storyteller and win Essity experiences and prizes! Grab your camera or smartphone and help in the fight against COVID-19. capture what makes us great and unique as a be dedicated to improving people’s well-being. We drive a global dialogue around company, and participate in the competition! menstruation, incontinence, wound care and other stigma-laden topics. We challenge our employees to bring their perspective, think differently and to embrace challenges. We have the We collaborate courage to across teams, The better we perform as individuals and as a company, the more impact we create take the lead. functions and for our society. We act with courage, taking conscious risks and challenging status businesses. quo. Together, we are people who make a difference. We care for communities by donating products and resources on local Sustainable Working Life and global level Our long-term framework to promote healthy, flexible and sustainable workplaces and help our employees to realize their full To help fight the COVID-19 disease, Essity have made a lot of local donations and support. We have also donated potential is being supported by a new health assessment tool. The tool assesses physical, mental and social health efforts as $200,000 to the United Nations Foundation’s COVID-19 Solidarity Response Fund. The fund aims to support the well as marking these from a reactive, preventative and World Health Organization’s life-saving work to help all countries to prevent, detect and respond to the pandemic, as well proactive way of working. The tool will enable local as as finding a vaccine. In addition, local efforts have been done from all over the world. well as group-wide strategic data driven decision making over time. We act quickly and innovate to produce surgical Health and Safety Priority masks for health and elderly care as well as for The health and safety of our employees is a top priority and our aim is for zero workplace accidents. Managers, our employees employees and external partners receive training on a Employees at Essity’s production facility outside Gothenburg have, over the regular basis and all Essity facilities have plans in place course of just a few weeks, redirected production and developed a to improve safety. surgical mask for healthcare use. This has been carried out in close dialogue and collaboration with the Swedish government, authorities and the independent test institute RISE. In Sweden, the US and Mexico, we are investing in new machines for the production of Individual Learning & Career Growth surgical masks and face masks for the healthcare sector and our At Essity, we believe every career is unique. Our philosophy is that the most effective way to develop your capabilities is employees. through a combination of learning by experience, theory and through others. Your development is not one dimensional; it can be experienced in different ways. We want employees to feel empowered and impacting their career path and to continuously learn and develop. We encourage all employees to drive their own development, based on your performance and interest and we support you in making it happen. Together, we’ll find the right blend of our business needs and your personal aspirations. Our aim is to support you in realizing your full potential. 18 16 19
The name Essity stems from the words essentials and necessities. We are a leading global hygiene and health company that offers products and services that are necessities in everyday life. Hygiene and health are central to people’s well-being. Improved hygiene and health are preconditions for a better life and play an essential role in well-being. That is why we are called Essity. www.essity.com Follow Essity: 20
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