Sweden's Essity commits to net-zero greenhouse gas emissions by 2050

In its annual and sustainability report for 2021, Essity has highlighted that it has raised its prices in all business areas as a result of higher raw material, energy and distribution costs. Further efficiency improvements were achieved through the Manufacturing Roadmap programme. Continuous cost savings during the year amounted to SEK 698 million.

Essity conducted 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. 

In 2021, the company’s e-commerce sales increased organically by 15.9 per cent to about 14 per cent of net sales. Market shares increased for approximately 70 per cent of branded sales in the retail trade. Market shares also grew in the healthcare sector and the professional hygiene business.

“Sales growth was strong during the year and net sales amounted to approximately SEK 122 billion. The constant drive of our employees to change and do things better every day has helped to positively impact hygiene and health standards around the world and has strengthened Essity for the future. We continued to capture market shares and reported strong e-commerce growth. Six acquisitions were completed, of which four in medical solutions, one of our most profitable categories. In parallel, 2021 entailed significant challenges in our operating environment, which we addressed through strong actions. We implemented price increases and further price increases will be implemented in 2022 to offset the strong cost inflation,” Magnus Groth, president and CEO.

Six acquisitions were carried out during the year, which included the Australian hygiene company Asaleo Care and an increase of 45.8 per cent in the shareholding to 95.8 per cent in the Latin American hygiene company Familia. In Medical Solutions, Essity strengthened its presence in advanced wound care and orthopedics in the US through the acquisitions of Hydrofera as well as AquaCast Liner and the sports tape brands Coach, Elastikon and Zonas. In addition, we finalized the acquisition of the remaining shares in ABIGO Medical AB in advanced wound care.

Sustainability has long been part of Essity’s business strategy, with the aim to develop solutions for a sustainable and circular society. Essity values and works to increase diversity, equity and inclusion. It is crucial that the company is a leader in sustainability to ensure future growth and competitiveness, and to mitigate its risks.

“Our sustainability work contributes to a better environment while increasing Essity’s competitiveness. What’s best for customers, consumers and the planet is also best for Essity and our shareholders. Between 2016 and 2021, we reduced our carbon emissions under Science Based Targets, Scope 1 and 2, by 15 per cent. We will continue to lead in sustainability and during the year, Essity was awarded a place on the global non-profit environmental organization CDP’s A List for our work in combating deforestation, and was also recognized for our leadership in relation to climate change,” added Groth.

Fibre2Fashion News Desk (RR)