H9. Air emissions: Scope 1 and 2

Energy efficiency and emissions reductions have been a major focus for Essity for many years. Essity’s production facilities for tissue products had already in 2005 a program to reduce CO₂ emissions per ton of tissue products produced. The reduction in CO₂ emissions per ton produced between 2005 and 2020 was 19%.

Since 2010, Essity’s production facilities have a target to reduce energy consumption by 14% per ton of tissue products produced by 2020. This was within the framework of the ESAVE program. The accumulated energy savings in the 2010–2020 period amounted to 8%.

Essity’s targets to reduce absolute 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 emissions by 25% by 2030 compared with 2016. The target applies to wholly owned companies. The outcome for 2020 was –11% (–5, –5) for Scope 1 and 2. The reduction in 2020 was the result of lower production volumes in Professional Hygiene and Personal Care due to COVID-19 and continued improvements in energy efficiency.

Greenhouse gas emissions

Essity’s greenhouse gas 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 (see separate Note, H10). 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.

Energy utilization

Energy efficiency, new technology and the greater use of renewable energy are required to achieve Essity’s stated targets. Energy use calculations include purchased energy, use of fuel and biomass and electricity generated on site. The energy generated is used in production. The surplus heat created is mainly used by Essity. A minor share is sold externally. Most of Essity’s energy, both fuel and electricity, is used in tissue production. The focus for tissue production is therefore on improving energy efficiency. Energy savings as specified above amounted to 8% between 2010 and 2020. These savings were achieved through a number of major investment projects in technical upgrades of the company’s paper machines. Best practice is also continuously identified and implemented in terms of energy efficiency and energy savings at the company’s production facilities. Essity’s energy efficiency program will remain a cornerstone of Essity’s work to reduce energy use and emissions and is strongly linked to its commitment to Science Based Targets. The production of Personal Care products primarily uses electricity. In 2020, Essity increased its share of renewable electricity at facilities in Europe.

The EU Emissions Trading Scheme (EU ETS)

Essity had 23 production facilities included under the EU ETS in 2020. During the third phase of EU ETS (2013–2020), Essity’s operations have had a deficit of emission allowances. 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 2020 was about EUR 24.8 (24.8; 15.9) per ton and Essity purchased 225,000 (240,000; 240,000) emission rights to cover the year’s deficit.

Read more about how Essity works with air emissions in the chapter More from less and Circularity.

CO₂ intensity

₁₎ Relates to tissue sites.

Energy efficiency

Air emissions, Scope 1 and 2