H9. Energy and emissions to air/Science-Based Targets

Energy utilization

Energy use calculations include purchased energy, use of fuel and 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. The energy generated is used in production. The surplus heat created is mainly used by Essity. A minor share is sold externally.

ESAVE

In 2010, Essity adopted a target for ESAVE: to reduce energy consumption per ton of product produced by 14% by 2020. During 2019, energy consumption rose 0.6% (+1.4; –0.4). The accumulated energy savings in the 2010–2019 period amounts to 7.4%.

The EU Emissions Trading Scheme (EU ETS)

Essity had 24 production facilities included under the EU ETS in 2019. 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 2019 was about EUR 24.8 (15.9; 15.8) per ton and Essity purchased 240,000 (240,000; 240,000) emission rights.

Electricity consumption 2019

Distribution of fuel consumption 2019

All biofuels are renewable, the others are fossil-based (non-renewable).

Emissions

Essity’s climate-affecting emissions are divided into three different Scopes depending on origin. Scope 1 and 2 are directly linked to 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, production waste and waste from used products.

Science Based Targets

Essity’s new targets to reduce greenhouse gas emissions were approved by the Science Based Targets initiative in 2018. 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 target applies to wholly owned companies. The outcome for 2019 was –5% (–5) 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 2018 was –3% for Scope 3. Emissions are calculated using data from the company’s value chain and Essity therefore presents data from 2018.

Scope 3 emissions in 2018 by category

Other air emissions

Other air emissions from use of fuel in production facilities include nitrogen oxides and sulphur oxides (NO_x and SO_x).