Corporate governance

The task of corporate governance is to ensure the company’s commitments to all of its stakeholders: shareholders, customers, suppliers, creditors, society and employees. It must be structured in a way that supports the company’s long-term strategy, market presence and competitiveness. Corporate governance shall be reliable, clear, simple and business-oriented. This Corporate Governance Report forms part of the Board of Directors’ Report for Essity’s 2018 Annual Report. The report has been reviewed by the company’s auditors.

Corporate governance, including remuneration

This section describes applicable regulatory rules and regulations for the Group’s corporate governance and the company’s management structure and organization. It also details the Board of Directors’ responsibilities and its work during the year. Information regarding remuneration and remuneration issues and Essity’s internal control are also included here. Essity applies the Swedish Code of Corporate Governance without any deviations (www.corporategovernanceboard.se).

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Risk management

Essity’s processes to identify and manage risks are part of the Group’s strategy work and are pursued at a local and Group-wide level. The section dealing with risk management describes the most significant risks and procedures used to eliminate or limit these risks.

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Sustainability

Essity’s sustainability work is an integral part of the company’s business model. The company’s sustainability report forms part of the Board of Directors’ Report. The sustainability work helps reduce risks and costs, strengthen competitiveness, attract new employees and investors, and contributes toward a more sustainable world.