Sustainability in Brief - Essity

 
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Sustainability in Brief - Essity
Sustainability
in Brief
Sustainability in Brief - Essity
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.

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Sustainability in Brief - Essity
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

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Sustainability in Brief - Essity
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

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Sustainability in Brief - Essity
“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.

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                                                                                                                           ©UNICEF México
Sustainability in Brief - Essity
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.

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Sustainability in Brief - Essity
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

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Sustainability in Brief - Essity
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

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Sustainability in Brief - Essity
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.

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Sustainability in Brief - Essity
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.

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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:
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