H10. Energy and emissions to air: 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 2021 was 19%.

Energy utilization

Energy efficiency, new technology and the increased 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. The majority of Essity’s energy, both fuel and electricity, is used in tissue production. The production of Personal Care products primarily uses electricity and European facilities purchase certified renewable electricity with a certificate for guarantees of origin since 2020.

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. As a consequence of the COVID-19 pandemic, varying production volumes have had a negative impact on 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 include 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, H11).

The reported data is based on fuel use with associated emission factors. In Scope 2, data for emissions from electricity is calculated using a country’s emission factors, while data for emissions from purchased steam are calculated on the basis of the fuel used by suppliers to generate the steam.

The EU Emissions Trading Scheme (EU ETS) and the UK Emissions Trading Scheme (UK ETS)

Essity had 16 production facilities included in EU ETS 2021 and 4 in UK ETS 2021. Essity’s operations have a deficit of emission allowances in both the fourth phase of EU ETS (2021–2025) and the first phase of UK ETS (2021–2025). The deficit averages approximately 0.2 million tons per year in EU ETS and approximately 0.03 million tons per year in UK ETS for the period. The average market price for emission allowances in 2021 was about EUR 53.4 (24.8; 24.8) per ton in EU ETS and GBP 55.5 per ton in UK ETS. Essity purchased 210,000 (225,000; 240,000) EU emission allowances and 30,500 UK emission allowances to cover the annual deficit.

CO₂ intensity