H9. Energy and emissions to air
Essity’s Group target is to reduce CO2 emissions from fossil fuels and from purchased electricity and heating by 20% by 2020, with 2005 as reference year.
CO2 emissions declined at year-end 2017, in relation to the production level, by 17.9% compared with the reference year of 2005.
Energy use includes purchased energy (heating, electricity and fuel) supplied to production units, energy generated from wood, liquor, bark, sludge and waste paper, and electricity generated on site. The energy data figures stated therefore include both a fuel component and an electricity component.
In 2010, Essity adopted a target for ESAVE: to reduce energy consumption per ton of product produced by 14% by 2020. In 2017, a number of ESAVE projects were implemented, resulting in a 0.4% (0.9) year-on-year reduction in energy used per ton of product produced. The accumulated energy savings in the 2010–2017 period amounted to 9.4%, corresponding to a 1.2 TWh reduction in energy consumption.
The EU Emissions Trading Scheme (ETS)
Essity had 24 mills and plants included under the ETS in 2017. Essity’s operations have a deficit of emission allowances during the third phase of ETS (2013–2020). The deficit involves an average of approximately 0.2 million tons of carbon dioxide equivalents per year during the period. The average market price for emission rights in 2017 was about EUR 5.8 per ton and Essity purchased 240,000 emission rights.
The company’s total emissions are determined by fuel consumption, which in turn is determined by the level of production. Changes in production volumes over the past few years are measured in tons and cubic meters.
Air emissions comprise emissions from all combustion units at Essity’s production sites, including fossil fuel and biofuel emissions and emissions from purchased thermal energy. When energy (primarily thermal energy and/or electricity) is supplied to an external facility, air emissions are reduced in relation to the energy amount delivered and the reduction is distributed among Essity’s main products.
Three chemical compounds are measured and reported in relation to air emissions: NOX, SO2 and fossil CO2. Essity uses Group-wide established procedures and principles for calculating RMS data so as to create comparability.
CO2 emissions from Essity’s use of fossil fuels corresponded to 1,554 ktons and purchased electricity to 1,351 ktons during the year.
Essity’s specific (related to production) emissions (Scope 1 and 2) corresponded to 0.75 ktons (0.78; 0.74) CO2 /ktons production in 2017.