H1. General accounting principles
The social and environmental data reported pertains to the 2020 calendar year unless otherwise specified. The figures included comply with relevant reporting and consolidation principles in accordance with the principles in the financial statements. The figures cover the Essity Group’s wholly owned subsidiaries and subsidiaries 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 H12 and H13. Some other social data is not included, for example Note H2 Code of Conduct data, as these companies have their own Codes of Conduct. Environmental data includes, as a general rule, Familia and Vinda’s Personal Care operations. Vinda publishes an Environmental, Social and Governance (ESG) report, which is available at vinda.com. Familia reports in accordance with the GRI Reporting Standards. For more information, visit 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.
The section on Sustainability governance describes how Essity ensures that the company delivers on its sustainability targets. The H-notes present the results in recent years.
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 74 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 use 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
- production 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:
- Greenhouse gas emissions from incineration are calculated using emission factors for the fuel’s thermal value. Source: IPCC Guidelines 2006. (Scope 1 emissions)
- Greenhouse gas emissions from purchased electricity are calculated using the country’s emission factor published by the International Energy Agency (IEA), 2017. (Scope 2 emissions, location-based)
This is Essity’s fourth integrated Annual and Sustainability Report. The previous year’s report is from February 20, 2020. Figures from previous years are reported in parenthesis. Certain adjustments have taken place of environmental data for previous years, notes H9–H11, to adjust for acquisitions, divestments and updated location-based emission factors in line with the GHG protocol. Minor updates also took place following the integration of earlier acquisitions into Essity’s global reporting system for non-financial data.
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.
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 on all GRI indicators that are identified as material and on a relevant level. 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 essity.com/sustainability. The index can be found here.
The UN Guiding principles
Essity uses the reporting framework for the United Nations Guiding Principles on Business and Human Rights and has reported on the overarching aspects contained in the framework.
The Task Force on Climate-related Financial Disclosures (TCFD) draws up voluntary, consistent climate-related financial risk disclosures for companies that make information available to investors, creditors, insurers and other stakeholders. Essity is publishing its first TCFD index in this report to allow investors and other stakeholders easy access to TCFD-related information for comparisons or decision-making. The index is presented here.
The Sustainability Accounting Standards Board (SASB) Foundation establishes and maintains sector-specific standards that help companies to publish financially relevant sustainability information that may be useful in investor decisions. Since 2020, Essity has applied the standards applicable for the Household and Personal Products sectors. A detailed index with references to sections where Essity reports in relation to specific disclosures is available here.