Annual sales growth1)
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%.
Adjusted return on capital employed2)
Target: >17% by 2025
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.
Capital Structure Policy
Target: Maintain a solid investment grade rating
“Solid investment grade rating”
Net debt amounted to SEK 55,433m. Net debt in relation to adjusted EBITDA2) amounted to 2.77.
Target: Long-term stable and rising dividends
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.
Read more in the Sustainability section and in the sustainability notes.
Science Based Targets
Target 2030 (compared with 2016):
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.
Share of packaging manufactured from renewable and/or recycled material
Target 2025: 85%
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.
Subject to material or energy recovery
Target 2030: 100%
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.
Share of FSC™ or PEFC™-certified fresh fiber
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.
Share that yielded social and/or environmental improvements
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.
Health and safety
Decrease in total recordable incident rate compared with 2019
Target 2025: –75%
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.
Gender distribution at management levels
Target 2025: 40/60%6)
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.
Share of total purchase cost from suppliers that comply with Essity’s Global Supplier Standard
Target 2025: 95%
Essity has a Global Supplier Standard to ensure responsible business operations and respect for human rights in the company’s supply chain.
Business ethics and Code of Conduct
Share of new employees who received training in the Code of Conduct
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.