Essity works continuously to improve efficiency by increasing productivity, reducing material, energy and logistics costs and minimizing waste. In parallel, we enable rapid adjustments for innovations, product adaptations and the best service to customers and consumers. This strengthens our competitiveness, enhances our financial performance and reduces our environmental impact. We are working to leverage digitalization, innovation, global economies of scale and knowledge sharing to increase efficiency in the production and supply chain as well as logistics and distribution.
Zero workplace accidents
Health and safety is a top priority at Essity and we are striving for a safe workplace without accidents. In 2014, Essity set the target to reduce the accident frequency rate by 50% by 2020. Solid work has been done that has improved work procedures and machinery safety. In 2020, the accident frequency rate had fallen by 56%.
Production assured during the COVID-19 pandemic
Care for our people is a priority during the COVID-19 pandemic. Our hygiene and health solutions are critical to society and we were successful in assuring both production and logistics in 2020. We quickly established a global emergency response team comprising internal and external experts to guarantee a safe work environment for our employees. Measures were implemented in all parts of the business, including new ways of working, production adaptations and securing transportation.
Cost savings and increased efficiency
During 2020, Essity achieved SEK 1,056m in continuous cost savings. These include savings in sourcing, production and material rationalization. The Manufacturing Roadmap program was launched during the year to achieve world-class cost efficiency, quality and service levels at Essity’s approximately 60 wholly owned facilities. The program also includes logistics and distribution and contributes to Essity’s sustainability target relating to the reduction of carbon emissions in line with the Science Based Targets initiative. Digitalization enables more efficient processes in administration as well as sourcing, production and logistics. Digital solutions are implemented in operations, including self-regulating processes, smart sensors, data analyses, robotization and automation.
Sustainable value chain
Essity has three focus areas to achieve a world-class sustainable value chain: reduce the use of fossil fuels and electricity, improve product design and optimize resource utilization. By investing in state-of-the-art technology, process efficiency is improved and carbon emissions are reduced. Essity researches and invests in several ground-breaking ideas in sustainable technology in its manufacturing processes with the aim of reducing the company’s environmental footprint and setting new standards for the entire industry. For example, in 2021 Essity will start up an innovative, unique and ground-breaking pulp production from alternative fiber at its facility in Mannheim, Germany. The plant will produce high-quality pulp from wheat straw that will reduce carbon emissions, use less water and energy as well as fewer chemicals.