Targets and outcomes

In 2021, sales growth, including organic sales growth and acquisitions, amounted to 4.5%. Organic sales growth, which excludes exchange rate effects, acquisitions and divestments, amounted to 3.3%, of which volume accounted for 1.8% and price/mix for 1.5%.

In 2021, return was negatively impacted by significant cost inflation, mainly for raw materials, energy and distribution. Higher sales prices, higher volumes, a better mix and cost savings had a positive impact on earnings.

Net debt amounted to SEK 55,433m. Net debt in relation to adjusted EBITDA²⁾ amounted to 2.77.

The Board of Directors proposes an increase in the dividend of 4% compared with 2020 to SEK 7.00 per share for the 2021 fiscal year.

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. Scope 3 reports indirect emissions in Essity’s value chain.

Essity is striving for 100% recyclability and 85% renewable or recycled material in the company’s packaging. This target applies to both paper and plastic packaging for Essity’s brands.

Resource efficiency and the reduction of waste are important in Essity’s production facilities. The target is that all production waste will be subject to material and energy recovery by 2030, which reduces greenhouse gas emissions.

Through certifications such as the Forest Stewardship Council (FSC) and the Programme for the Endorsement of Forest Certification (PEFC), Essity ensures sustainable fiber sourcing, thereby preventing deforestation and promoting biodiversity.

Sustainable innovations are measured as the share of revenue from innovations launched in the most recent three years. Examples of sustainable innovations in 2021 included Tork cleaning cloths, TENA Silhouette washable absorbent underwear, and the Libresse menstrual cup.

In 2021, Essity began to measure the Total Recordable Injury Frequency Rate to highlight accidents that require medical treatment. All of Essity’s production facilities are conducting purposeful and systematic work with safety issues.

Essity’s target is that gender distribution at all management levels (Executive Management Team, senior management, middle management) is to be within the interval 40/60% no later than 2025. The target is reported at an aggregate outcome level for the three management levels.

Essity has a Global Supplier Standard to ensure responsible business operations and respect for human rights in the company’s supply chain.

The Code of Conduct describes how employees are to act, how the company operates, stakeholder expectations of Essity and Essity’s commitment to human rights. All wholly owned subsidiaries are bound by the Code of Conduct.