Materiality analysis

Part of the basis for Essity’s strategy work consists of a materiality analysis where Essity and the company’s stakeholders rank the issues and other areas that are perceived as being important for the company.

Essity conducts a double materiality analysis, in which entails the use of a centrally coordinated strategy process to analyze how the company influences its external environment and the potential impact of the external environment on the business.

The first step consists of the risk analysis, which ranks the impact of business risks on the Group’s ability to achieve set targets. In this step, the probability and consequence of the impact of the risks are evaluated. Read more about the risk management process and risks in the chapters Risks and risk management and Climate-related risks and opportunities. In the second stage, the company distributes a web-based survey every second year to Essity’s stakeholder groups; customers, consumers, suppliers, employees, investors, analysts, non-profit organizations and decision-makers.

The survey asks the stakeholders to rank the most important topics. The latest survey was conducted in 2021, and resulted in approximately 600 answers. In addition to the materiality analysis, Essity maintains a continuous dialogue at Board of Directors meetings, meetings with shareholders and in daily contacts with customers and consumers, employees, suppliers and decision-makers, among others. The materiality analysis and these dialogues form part of supporting documentation in Essity’s strategy work.

The results of the materiality analysis from 2021 are presented in the graph below. This summarizes and ranks all topics that are considered strategically important for the company. Interest increased for topics such as digitalization, health and well-being, as well as responsible sourcing and product safety. These topics received the highest ranking, together with innovation, climate action and business ethics, which stakeholders also considered most important in previous years.

A more comprehensive account of all topics in the survey and how it was implemented can be found at www.essity.com/sustainability. There is also a presentation of the process and changes the company continuously undertakes in the selection, grouping and description of the topics assessed by stakeholders.

Essity’s materiality analysis