H7. Energy and emissions to air/Science-Based Targets

Essity’s Group target is to reduce CO₂ emissions, in relation to the production level, from fossil fuels and from purchased electricity and heating by 20% by 2020, with 2005 as reference year. CO₂ emissions declined at year-end 2018 by 18.8% compared with the reference year of 2005.

Energy utilization

Energy use calculations include purchased energy (heating, electricity and fuel) and use of biomass and electricity generated on site. Energy efficiency, new technology and the greater use of renewable energy are required to achieve Essity’s stated targets.

ESAVE

In 2010, Essity adopted a target for ESAVE: to reduce energy consumption per ton of product produced by 14% by 2020. During 2018, energy consumption rose 1.4% (–0.4), the first increase in ten years. The accumulated energy savings in the 2010–2018 period amounted to 8.0%.

The EU Emissions Trading Scheme (EU ETS)

Essity had 24 mills and plants included under the EU ETS in 2018. Essity’s operations have a deficit of emission allowances during the third phase of EU 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 2018 was about EUR 15.9 per ton and Essity purchased 240,000 emission rights.

Emissions

Essity’s climate-affecting emissions are divided into three different scopes depending on origin. Scope 1 and 2 are directly linked till Essity’s production facilities and are dependent on production volumes. This also includes direct emissions from fuel consumption and indirect emissions from the use of purchased energy. Scope 3 reports indirect emissions in Essity’s value chain.

Scope 1 consists of emissions from burning of fuels at Essity’s production facilities. The reported data is based on energy use with associated emission factors.

Scope 2 consists of emissions from purchased energy and is primarily linked to the use of electricity and also purchased thermal energy in the form of steam. The calculation of emission data uses country and region-specific emission factors.

Scope 3 emissions derive from, for example, energy use that is not owned or controlled by Essity. The emission categories included are from the production of purchased raw materials, incoming and outgoing transportation, and the handling of production waste and waste from used products. In 2019, Essity will further develop the working methods for monitoring and reporting Scope 3 based on established methods.

Other air emissions from use of fuel in production facilities include nitrogen oxides and sulphur oxides (NOx and SOx). These are reported in Essity’s environmental reporting system.

Science-Based Targets

In addition to the aforementioned Group target, Essity’s new targets to reduce greenhouse gases emissions have been approved by the Science Based Targets initiative. In terms of energy consumption within the company and purchased electricity (Scope 1 and 2), Essity has undertaken to reduce greenhouse gas emission by 25% by 2030 compared with 2016. The outcome for 2018 was 5.0% for Scope 1 and 2.

Essity has, moreover, undertaken to reduce greenhouse gas emissions from the most important purchased raw materials, transport, waste arising from operations and handling at the end of the life cycle for sold products (Scope 3) by 18% by 2030 compared with 2016. The outcome for Scope 3 will be reported as of 2019.