H1. General accounting principles

Reporting principles

The social and environmental data reported pertains to the 2019 calendar year. The figures included comply with relevant reporting and consolidation principles in the financial statements. The figures cover Essity’s wholly owned Group companies and Group companies in which Essity owns at least 50%. If ownership in the Group company is at least 50% or more, the entire company is included in the reporting.

For Group companies with significant non-controlling interests (see Note F2), such as the Chinese company Vinda and the Colombian company Familia, social data, such as employee figures, employee turnover and health and safety data is reported in notes H13 and H14. Some other social data is not included, for example Note H2 Code of Conduct data, as these companies have their own Codes of Conduct. Vinda publishes an Environmental, Social and Governance (ESG) report, which is available at www.vinda.com. Familia reports in accordance with the GRI Reporting Standards. For more information, visit www.grupofamilia.com.co.

Newly acquired businesses are included in the reporting as soon as possible, though not later than when they have been part of the Group for one calendar year. The data from divested companies is excluded in its entirety as of the divestment date. Historic data for discontinued units is retained.

Data collection

Data provided in the report is compiled through various systems, primarily Essity’s reporting system for non-financial data and the Group’s financial consolidation system.

The data in this report includes, as a general rule, all companies. The targets in the report apply, as a general rule, to wholly owned companies.

Environmental reporting encompasses 75 production sites, covering virtually the entire company’s environmental impact and resource utilization from production. Data from stand-alone tissue converting sites is included in data for the tissue plant.

Each unit reports the following data to the system:

  • raw material consumption
  • incoming and outgoing shipments
  • production volumes
  • energy consumption broken down by electricity, steam and fuel
  • fuel consumption broken down by biofuels and fossil fuels
  • air emissions, including data on fossil and biogenic carbon dioxide
  • water emissions
  • solid waste

The calculation of greenhouse gas emissions for Scope 1, 2 and 3 of Science Based Targets encompasses carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O). Conversion factors used:

  • emissions of greenhouse gases from incineration are calculated using emission factors for the fuel’s thermal value. Source: IPCC Guidelines 2006. (Scope 1 emissions)
  • emissions of greenhouse gases from purchased electricity are calculated using the country’s emission factor published by the International Energy Agency (IEA), 2016. (Scope 2 emissions, location-based)

Comparability

This is Essity’s third integrated Annual and Sustainability Report. The previous year’s report is from March 13, 2019. Figures from previous years are reported in parenthesis.

Environmental impact

Essity conducts operations requiring a permit through its production facilities. Such operations impact the environment through emissions to air and water, solid waste and noise.

GRI reporting

Essity reports sustainability information in accordance with the Global Reporting Initiative (GRI) guidelines for GRI Reporting Standards: Core. The Report has been structured in accordance with GRI principles, meaning that the content is determined by the issues that are most material to Essity and its stakeholders, and that the content provides a complete overview of the operations. Essity’s 21 subject areas in the materiality analysis are matched against GRI indicators, and they form the selection of the indicators that Essity presents in this report. Essity reports in accordance with all GRI indicators and on a level identified as material. In addition, Essity reports a number of general standard disclosures according to the GRI Standards: Comprehensive option as this clarifies the information in the report. Any omissions or incomplete data are commented on directly in the GRI index. The Sustainability Report has been reviewed by EY. Additional information about Essity’s work on social and environmental issues is available at www.essity.com/sustainability.

The UN Guiding principles

Essity uses the reporting framework for the United Nations Guiding Principles on Business and Human Rights (UNGPs) and has reported on the overarching aspects contained in the framework.