Sustainability in brief

This is EssityEssity is a leading global hygiene and health company dedicated to improving well-being through our products and services, essentials for everyday life. The name Essity stems from the words essentials and necessities. Our sustainable business model creates value for people and nature. Sales are conducted in approximately 150 countries under the leading global brands TENA and Tork, and other strong brands, such as JOBST, Leukoplast, Libero, Libresse, Lotus, Nosotras, Saba, Tempo, Vinda and Zewa. Essity has about 47,000 employees and net sales in 2018 amounted to approximately SEK 118.5bn (EUR 11.6bn). The headquarters is located in Stockholm, Sweden, and the company is listed on Nasdaq Stockholm.

Essity Sustainability in brief, April 2019.All quantitative data refers to 2018, unless otherwise stated. More information at www.essity.com.

Sustainability has always been a business driver for Essity, in addition to contributing to a better world. By 2030, our ambition is to improve the well-being of two billion people every day and reduce the environmental footprint of our solutions by 33%.

Poor hygiene and sanitation constitute a barrier for the health, livelihood and well-being of millions of people. Knowledge is key to improved hygiene and health. Through our business model, we contribute toward the UN Sustainable Development Goals (SDGs) and we are the convening partner for the United Nations Foundation Global Dialogue concerning these goals. In 2018, hundreds of millions of people across the world used our products every day and we educated approximately 2.5 million people in hygiene and health. We develop products and services that help custo-mers and consumers reduce their environmental impact. We endeavor to reduce resource consumption and enable efficient recycling of our products. To achieve this, we need innovation and collaboration.

Our Tork PaperCircle™ innovation, the world’s first re-cycling service for paper hand towels, is one example. We are proud of the recognition that our work has received. In 2018, our new targets to reduce green-house gas emissions were approved by the Science Based Targets initiative. This means that our climate commitment supports the Paris Agreement. We were included in the Dow Jones Sustainability Index and named industry leader in the Household Products sector. We also joined the Ellen MacArthur Founda-tion’s plastic initiative “A line in the sand.” These are all external recognitions, partnerships and verifica-tions that encourage us to continue to pursue our vision: Dedicated to improving well-being through leading hygiene and health solutions.

Magnus Groth President and CEO, Essity

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Ambition by 2030:Better solutions with 33% lower environmental

footprint

More from lessWell-being

Circularity

Building value using less by enabling

behaviors that support sustainable

consumption

Caring and daring to act boldly on social issues that others fear to champion

Ambition by 2030:Improve the well- being of two billion people every day

Creating Sustainable Value

Aiming to design products and services that fit into a circular society

We realize our objectives through our brand offering to our customers, using three sustaina-bility activation platforms. Well-being is about how we care for people. For us at Essity, well-being means a healthy state of both mind and body. We enable more people every day to live a fuller life together with families, friends and colleagues and in society. More from less refers to our commitment to sustainable consumption.

For us, this means being innovative in how we meet consumer and customer needs. We conti-nuously reduce resources across the entire life-cycle of our products and services. Circularity is about our ambition to design products and ser- vices that fit into a circular society. It means that we commit to increasing the use of renewable or recycled materials as well as the re-use, recycling of all products and composting of tissue products.

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About 2,500,000people received hygiene and health education in 2018

Hundreds of millionsof people use our products every day

5%reduction in CO2 emissions from energy and electricity (reference year 2016)

59%of our innovations yield social and/or environmental improvements and create additional value for users

76%of fresh wood fiber-based raw material in our products and packaging is FSC® or PEFC™ certified

60%of all waste is recovered from Essity’s production sites and converted into materials or energy

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Essity’s overall objective is to generate long-term value for its shareholders and that the Essity share will deliver a higher total shareholder return than competitors. In order to increase value creation and the total shareholder return, we focus on profitable growth. We are investing in future growth and working to increase profitability and grow where profitability is high.

Contribute to a sustainable and circular societyThe circular economy is a business model that in- volves minimizing resource consumption and waste, and creating a closed loop for reusing, recycling or composting. Essity strives to minimize its environmen- tal impact and to develop products and services that can be used in a circular society. Work contributing toward a sustainable and circular society requires new business solutions and innovations at the same time as new business opportunities are created.

What makes Essity successful is the understanding, knowledge and insight about the needs of customers and consumers and the ability to transform this into innovative offerings that increase quality of life and make everyday life easier for people. Essity strives to offer the best value for customers and consumers through value-added hygiene and health solutions for everyone. We adapt our offering to local and regional market conditions to increase hygiene and health standards worldwide. Essity wants to reach more people by promoting a global dialogue con- cerning hygiene, health and well-being.

Enable our employees to realize their full potential, as part of one winning teamEssity’s success depends upon having motivated, competent and result-oriented employees. As a global employer, we aim to offer opportunities for current and potential employees to develop and realize their full potential. Essity wants to provide a strong company culture with an engaging and inclusive leadership based on our “Beliefs & Behaviors”.

Generate increased shareholder value through profitable growth

Enable more people every day to enjoy a fuller life

Essity’s vision: Dedicated to improving well-being through leading hygiene and health solutions

What we want to achieve

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UN Sustainable Development GoalsThe work to fulfill the UN Sustainable Development Goals will make the world a better place. It also offers favorable business opportunities for companies around the world, not least in the areas of health, hygiene and sanitation, where Essity has substantial expertise. We are working to overcome global challenges together with like-minded partners, to leverage our knowledge further. Essity has chosen to prioritize goals 3, 5, 6, 12, 13 and 15, which are most relevant to our business and where we have substantial expertise and can make a contribution.

SDG 3 - Good health and well-being Essity enables more people to enjoy a fuller life. Our contribution toward Goal 3 includes developing sus-tainable products and services for hygiene and health, educating children, consumers, patients and care professionals, and preventing the spread of diseases and other health risks. Business value is also created by meeting societal needs. This offers more people an opportunity to work, better conditions to provide for their families and increased well-being and quality of life. SDG 5 - Gender equalityEssity works to break the silence around issues such as menstruation and incontinence. We want a society where everyone can fully participate. Essity’s contribu-tion toward Goal 5 includes pursuing a global dialogue, making our knowledge about hygiene and health avail-able to boys and girls and to customers and consumers, and ensuring access to affordable, sustainable hygiene and health solutions to contribute to a dignified life on equal terms.

SDG 6 - Clean water and sanitation Essity improves access to sustainable sanitation and hygiene solutions. Essity’s contribution toward Goal 6 includes our work to achieve efficient water usage through-out the entire lifecycle of our products and improve access to sustainable sanitation and hygiene solutions, with special focus on girls and women. Essity works independently as well as with partners to contri-bute to sustainable water use and sanitation.

SDG 12 - Responsible consumption and productionWe contribute to a sustainable and circular society, mainly by offering solutions that meet consumer and customer needs and that enable sustainable consumption. Designing sustainable products and services is about resource efficiency across the entire lifecycle and improving circularity with a focus on re-use, recycling or composting as well as renewable materials. Essity’s contribution toward Goal 12 consists of establishing collabo- ration with customers and consumers within consumption and circularity.

SDG 13 - Climate actionWe aim to reduce the carbon footprint of our pro-ducts. This means focusing on forest management, energy efficiency at our production facilities and among our suppliers, as well as smarter product designs. Essity’s contribution toward Goal 13 involves improving resource efficiency in manu- facturing, achieving Science-Based Targets to reduce greenhouse gas emissions and supporting relevant external initiatives and agreements.

SDG 15 - Life on land Essity enables more people every day to enjoy a fuller life by offering access to sustainable hygiene and health solutions and providing hygiene and health education. We work to promote responsible forest operations throughout our supply chain and require our suppliers to fulfill strict criteria stipu-lated in our Global Supplier Standard and our fiber policy. Essity’s contribution toward Goal 15 consists of the certification of suppliers and our own pro-duction, ensuring the use of certified fiber in Essity’s products and packaging, and the responsible use of other input goods.

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Responsible sourcing Customers and consumers who use our products should feel secure that these are sourced, manufactured and distributed in a sustainable and responsible way. That is why we are committed to responsible business practices – both within Essity and throughout our supply chain.

This includes choosing and rewarding reliable business partners who share our values. In terms of rules and procedures that turn our commitment into a reality, we use three distinct processes. All suppliers are required to sign the Global Supplier Standard. This includes requirements governing quality, product safety and environmental impact in addition to our Code of Conduct. Suppliers are then required to share risk data via our ethical supplier database. Finally, we audit selected suppliers to verify compliance with our supplier standard. These procedures apply to all suppliers of raw materials, ready-made goods and services to Essity. Caring about forests Essity provides millions of people all over the world with essential hygiene and health products, and renewable wood-fiber materials comprise a substantial component in these. For us it is vital to assume responsibility for the origin of these materials, and therefore responsible fiber sourcing means using only certified wood fibers. All the wood fiber we source and use must come from suppliers that are certified under FSC® or PEFC™ standards. Our

minimum requirement is that the fiber must meet the FSC Controlled Wood standard, which means that the origin of the fiber has been verified by an independent third party. The FSC is an organization that sets robust and fully transparent standards for responsible forest management that safeguards biodiversity, appropriate forest conservation and consideration for the people living in and near the forests. Essity regularly participates in stakeholder dialogues concerning forest management, which include other key stakeholders, such as the environmental organizations WWF and Greenpeace, as well as local stakeholders. Essity is also a signatory to the New York Declaration on Forests, which aims to protect forests and end natural forest loss by 2030, and the Vancouver Declaration, a public promise made by companies to work toward sustainable sourcing of forest products. The Vancouver Declaration is also an endorsement of FSC as our pri-mary choice of certification system for forest products. In addition to FSC and PEFC forest management and traceability certifications, we always conduct our own risk assessments of fiber suppliers based on our fiber policy. We ask suppliers to respond to detailed question-naires and to show an approved fiber traceability certifi-cation. This provides us with the necessary information to conduct a risk assessment, after which we follow up selected suppliers by perfor-ming on-site audits to verify how they work. If there are any deviations, we work together with suppliers to rectify these.

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Updated fresh-wood-based fiber sourcing policy In 2018, Essity updated its sourcing policy for fresh fiber and strengthened its targets. Our target is for our fiber supply to be fully FSC® or PEFC™ certified. We are moving closer to fulfilling our target every year, but because of the high demand for and limited availability of certified fiber, we still need to source fiber that is not certified but nonetheless fulfills the FSC standard for Controlled Wood. This is always the minimum standard for the remaining share of fiber and means that the supplier can show full traceability regarding the origin of the fiber.

© Better Cotton Initiative

Sustainable cotton sourcing A few of Essity’s products contain cotton fibers. The volumes are limited, but as cotton production in certain countries could be associated with sustainability risks, Essity’s ambition is that all sourced cotton or material containing cotton fibers should be sustainable. This means that the cotton is certified, organic, recycled or from a low-risk area. Essity is a member of the Better Cotton Initiative (BCI), the largest sustainability program for cotton. BCI is Essity’s preferred program for more sustainable cotton, though other programs are also acknowledged.

Recycled fiber Around 40 % of all fibers used in our tissue products globally come from recycled paper. Essity invests in technology to allow the use of a broader range of paper grades for recycling. In doing so, we extend the types of recycled materials that can be used while meeting the stringent quality requirements of our customers and consumers.

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Resource-efficient production

Essity’s production facilities have a common objective – to deliver high-quality products. Our efforts range from global initiatives to small step-by-step improvements. We constantly reduce the use of energy and materials, optimize transport and limit waste.

Science-Based Targets Essity has been working actively to reduce our climate impact and our greenhouse gas emission, since 2005. We are broadening the scope of our efforts and our new ambitious targets have been approved by the Science Based Targets initiative. Our commitment includes targets for energy, electricity, transports, purchased raw materials and waste. With Science-Based Targets, we ensure that Essity’s targets are aligned with the objec-tives of the Paris Agreement to reduce global warming.

Saving resources Every Essity facility works to save resources by reducing the use of energy and materials as well as the generation

of waste. The two programs, ESAVE and MSAVE, con-stitute our main means of reducing the use of energy and materials. As the objective is to optimize costs and minimize environmental impact, ESAVE and MSAVE focus on purchasing and production. Coordinating purchasing at a Group level means we can leverage our combined strength as a global player. When it comes to making production more efficient, our facilities around the globe share knowledge and best practices. This way, every facility becomes a resource-saving champion.

Targeting zero waste Our ultimate goal is total resource efficiency, which naturally extends to aiming for zero waste. Essity has set a concrete target: all production facilities will convert all waste generated into useful materials or energy by 2030. In fact, some of our facilities have already reached this goal, but more action is needed to eliminate produ- ction waste throughout our operations.

Being smart about how we use resources is truly a win-win situation. Achieving greater efficiency in our supply chain reduces the resources needed and the environmental impact. We do this by investing in new technology, and through our energy and material-saving programs ESAVE and MSAVE.

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Reducing plastic packaging When we transport and deliver products to our customers on pallets, some of these need to be covered with stretch film. By applying the right amount of tension and modifying the force used, we can optimize the use of stretch film. This has led to a 13% reduction in the use of plastics at European tissue sites since 2016. This is equal to 640 tons of stretch film and a CO2 emissions reduction of 1,580 tons.

Preserving fiber Efficient use of fiber is a priority at all our sites. We have sophisticated systematic processes to evaluate the type, quality and volume of waste throughout the recycling process. While most of the fiber efficiency improvements derive from multiple actions, we are always looking for state-of-the-art technology that can provide further benefits. One example is a globally unique pilot project in South Glens Falls in the US, where we successfully installed a fiber recovery unit in our process for recy-cled paper, enabling us to recirculate the majority of fiber of sufficient quality back to the process. This will improve efficiency and the ecocycle, while yielding a 20% improvement in the use of recycled fibers. Overall, Essity reduced waste generation from produced tissue by 3% in 2018, meaning we were able to increase our raw-material yield in an amount corresponding to more than 4,000 tons of fiber based products.

Increasing energy-efficiency A key success factor in our energy-efficiency efforts has been the focus on behavioral changes, capability development and smart investments, supported by online tools and real-time information sharing. Essity has developed an optimization method according to which each tissue manufacturing site has analyzed energy consumption of drying systems. We apply internally standardized measurements to achieve the correct energy balance to ensure that only the necessary amount of energy is used to dry the sheet of paper. This has led to an 8% decrease in energy use, equivalent to an energy saving of 1 TWh in tissue production.

Celebration at Lucca factory when winning the “Energy Efficiency award” in Tissue World.

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Sustainable solutions: Well-being Every day, hundreds of millions of people use our products in order to enjoy a fuller life. Behind Essity’s success is our understanding of customer and consumer needs, and our ability to transform this into innovative solutions that increase the quality of life for many people. Simpler everyday life Essity’s products and services support people in all phases of life and benefit both individuals and society. We share our knowledge in hygiene and health by educating young girls and boys and promoting an open dialogue about menstruation, contributing with our Feminine Care expertise. Within Incontinence Care, we work to increase awareness and together with our partners, contribute to improving care provisions and drive high-level dialogues in partnership with experts in the field, such as the Global Forum on Incontinence (GFI). Within Professional Hygiene, we provide education about hand hygiene and participate in Private Organi-zations for Patient Safety (POPS), a WHO initiative. In total, we provided education in hygiene and health to around 2.5 million people during 2018.

By combining our expertise with Essity’s main development platforms – well-being, more from less, and circularity – we maximize value. While each Essity product brand has its own purpose and function, all of them work with these platforms to create sustainable value for customers and consumers.

Safe productsEssity follows strict requirements and procedures to ensure that all materials in our products are safe for consumers, employees and the environment. We have a global product safety policy in place to ensure that the products we produce are safe for their intended purpose. We also work closely with our suppliers to ensure that our high standards are met.

Global dialogue Through Essity’s “Essentials Initiative” communication platform, we are pursuing a global dialogue to increase awareness of the importance of hygiene and health and the link to well-being. The Essentials Initiative is based on a global survey of attitudes to hygiene and health and on a report. The title of the 2018/2019 report was “Personal well-being – key to public progress.”

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Cutimed® Siltec® Sorbact®Cutimed Siltec Sorbact should be the first choice for chronic wounds, where a combination of infection management and management of wound fluid is needed. Cutimed Siltec Sorbact is free from any known side-eff ects and therefore a safe alternative to silver-releasing wound dressings. The eff ect is clinically proven, and the product can also be used to prevent infection.

Libero Touch – better for child and natureWhen designing Libero Touch baby diapers, we thought of pretty much everything. Comfortable fit, no leakage and an indicator to let you know when it is time for a new diaper. What is more: Libero Touch baby diapers carry the Swan label, are recommended by Asthma Allergy Nordic and are made from FSC-certified fiber. Libero in Europe has reduced the carbon footprint of its baby diapers by up to 25% since 2008.

TENA Nocturno For many caregivers and people suff ering from incontinence, the night means waking up several times to check if the pro-tection needs to be changed and worrying that it will not be suff icient until the next morning. In Mexico, TENA launched TENA Slip and TENA Pants Nocturno, transforming these anxious situations into more pleasant nights. With a special design adapted for lying down, reinforced leakage barriers, optimum fit around the waist and increased absorption power, TENA Nocturno off ers longer protection and more rest.

Bodyform and Nana PureSensitive™ The new Bodyform and Nana PureSensitive range is Essity’s first Feminine Care range tailo-red for sensitive skin with specially selected skin-friendly ingredients. The product has been designed with sensitive skin in mind and has been gynecologically and dermatologically tested to help minimize the risk of skin irritation.

product can also be used to prevent infection.

TENA Nocturno For many caregivers and people suff ering from incontinence, the night means waking up several times to check if the pro-

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Sustainable solutions: More from less We work to create customer and consumer value while improving the environmental footprint of our products and services. Our innovations are based on understanding consumer and customer needs while delive-ring better, safer and more environmentally sound solutions. This way Essity contribute to a more sustainable and circular society.

By integrating lifecycle assessments into our innovation work, we monitor how we improve the environmental profile of our innovations. This includes resource effi-ciency among suppliers and in our own production, superior materials and smarter product design. One example is our open baby diaper, where we have reduced the carbon footprint by 25% since 2008. We strive to use less resources to achieve efficien-

cies while ensuring greater performance and maximizing customer value. This allows us to better meet the needs of both mature and emerging markets. Many of our products and services help customers and consumers achieve more from less. Thinner incontinence care, baby care and feminine care products help reduce resource usage while delivering the same or even bet-ter performance. Our TENA solutions service aims to optimize product use, minimize the risk of leakage and thereby reduce waste. Moving forward, we aim to broaden our collaboration with customers to further improve our understanding of how we can support their environmental strategies and targets. Ultimately, all Essity products and services will be designed to promote sustainable consumption and behaviors, where everything is utilized, and we will strive to find new solutions for handling products after they have been used.

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Tork® Reflex™ Single-Sheet Centrefeed Dispenser The Tork Reflex Centrefeed Dispenser is the ideal hand and surface wiping solution for professional environments, designed to fit workplace flow. The easy-to-use, hygienic and durable system increases flexibility and helps users work more eff iciently. Single-sheet dispensing cuts down on waste by reducing paper consumption by up to 37%.

Product 2008–2017, %

TENA Flex –16TENA Lady –31TENA Men –21TENA Pants –33TENA Slip –20

Product 2011–2017, %Tork hand towels –18

Life Cycle Assessment (LCA) for Essity products in Europe – Carbon footprint reduction (This table is updated every second year)

Product 2008–2017, %

TENA Comfort –18TENA Bed –9Libero open diaper –25 Libero pant diaper –16 Feminine Care Ultra towels –14

TENA Complete + Care™ More than 700 caregivers and nursing home patients participated in the development of TENA Complete + Care, resulting in over 6,500 product changes and 2,000 product measurements. Launched in the US in 2018, TENA Complete + Care is an aff ordable protection powered by the best of TENA technology with 41% more absorption where it matters the most. TENA Complete + Care not only improves patient comfort and well-being, it also contributes to the sustainability of the planet by reducing the carbon footprint by 6% compared with the reference product.

Lotus Quick&Chic, Plenty Handy Towels, Zewa Quick PackSuperior quality household towels that come in a soft-pack format. The innovative pack can be placed anywhere in the home and easily dispenses one sheet at a time, whenever and wherever you quickly need to wipe something clean. The packs are available in six diff erent designs to complement interiors and fit in all around the home, and the new product off ers an 8% reduction in the carbon footprint.

The Life Cycle Assessments (LCA) conducted by Essity are verified by IVL, Swedish Environmental Research Institute Ltd, 2017.

Reducing the

carbon footprint by

8%

Reducing paper

consumption by up to

37%

Reducing the carbon footprint by

6%

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Sustainable solutions: Circularity and after-useEssity’s ambition is to develop products and services for a circular society. This calls for creative thinking, new business models and partnerships.

Constant improvement Access to hygiene and health products is essential for people across the world. We aim to take responsibility for the entire lifecycle, even after the products are used. There are already a number of good examples of this, such as our use of recycled fibers in a large share of tissue products. Making products thinner, thus using less materials, is one way of reducing waste; optimizing products and care solutions is another. An example of the latter is the TENA Solutions service, where waste levels have been reduced by up to 30%.

Essity is committed to reducing plastic pollutionEssity has signed “A line in the sand”, a global commit-ment to eliminate plastic pollution at source led by the Ellen MacArthur Foundation in collaboration with UN Environment. Essity is committed to working toward 100% recyclability of packaging and to increasing renewable and recycled plastic in our plastic packaging by 2025.

An ambitious waste targetIn terms of our manufacturing, our goal is clear: all waste from all production units will be subject to material and energy recovery by 2030. The target inspires and drives a series of measures and local adaption to find suitable ways to recover Essity’s various types of waste. We achieved a recovery rate of 60% by the end of 2018.

Creating new resourcesTissue products are made of renewable fresh or recycled fibers, and this is an advantage that creates value. After use, tissue products can be incinerated, creating renew-able energy, or composted, returning to nature. We are currently working to improve composting, and several pilots to recycle paper hand towels are under way together with selected customers. In cooperation with external partners, we are working to solve the challenges we face by establishing business models for collecting and recycling used personal care products. Today, in- cineration with energy recovery is the best option, and our aim is to find new recycling solutions.

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A one-of-a-kind recycling service – Tork PaperCircle™ Tork PaperCircle is Essity´s award-winning recycling service for paper hand towels that is contributing toward the development of recycling standards. The service has established close relationships with customers, facility service companies and recycling companies. Used paper hand towels are collected and sent to nearby Essity facilities to be converted into new tissue paper products. This process can reduce carbon emissions by at least 40% compared with current waste handling options.* Tork PaperCircle is currently available in Germany, the Netherlands, Belgium and Sweden, and more countries will be added in the coming years. With Europe’s largest network of production mills, we can help our customers close the loop for their used paper hand towels locally.

Essity Recycling Partnership Essity and the waste-to-product company Renewi have entered a partnership aiming to develop recycling technologies for baby and incontinence care products in the Netherlands. The plan is to establish a scalable recycling pilot for used baby and incontinence care products that can deliver new materials, such as regenerated pulp, for other industries.

*Results of a lifecycle assessment conducted by Essity and Tork and verified by the Swedish Environmental Research Institute Ltd (IVL) in 2017, where processes that have been avoided were taken into account.

Lotus Moltonel Sans Tube/Zewa Smart This is Essity’s first coreless toilet paper. It has no tube to dispose of, which means less waste is generated. In addition, there is more paper on the roll and therefore it does not need to be changed as often.

Reducing carbon emissions

by at least

40%

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Responsible businessEssity’s “Beliefs and Behaviors” and Code of Conduct provide guidance in our way of doing business. Living in accordance with our Code of Conduct and acting with integrity toward all our stakeholders requires constant effort and involves much more than signing a contract of compliance. Employee training and compliance must be supported by a sound culture and responsible leaders. It is also crucial to recognize the challenges we may face and to address the ethical grey areas before they evolve into serious issues.

Multidimensional approach All our employees undertake training in the Code. We expect our leaders to champion the Code and reinforce Essity’s ways of working. To support them, we inform our managers of the psychosocial and behavioral risks that may enable unethical conduct, and how these can be

avoided. Through workshops and training sessions, we work to foster a culture in which it comes naturally to do the right thing and to speak up about ethical concerns. In the event an employee has concerns, there are mul-tiple channels in place to report suspected breaches of Essity’s Code of Conduct in confidence.

Extending the Code to suppliers We firmly believe that our responsibility extends beyond our direct operations and therefore use Essity’s Global Supplier Standard to promote sustainable business throughout our supply chain. This begins with identi-fying and selecting business partners that share our values. Our review process includes compliance with the standard as well as requiring suppliers to register and provide ethical data in the online database Sedex. Using a risk-based approach, we also conduct on-site visits and audits.

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Speak up!

Do the right thing and speak up!

If you believe that someone or

something is putting our people

or Essity at risk, we want to know.

You may:

• Speak to your manager, legal

team or human resources, or

• Use Essity’s reporting hotline

operated by InTouch, an inde-

pendent service provider.

The hotline is open 24/7 and

you can raise your concern in

confidence.

You can also download the

SpeakingUp™ App, for your

mobile devices (only in English).

Visit www.intouchfeedback.

com/essity or leave a secure voice

message to InTouch. You must use

Essity’s access code 377489.

Find your local toll-free phone

number and more information

about the hotline and how to use

it on Essentials / About / Essity

Compliance and ethics.

Updated Code of Conduct The Code of Conduct is an expression of how we do business at Essity. It forms a framework for the manner in which we translate our commitment to value creation for our stakeholders into practical actions and provides guidance on how we are expected to act while representing Essity. We provide employees with a copy of the Code in a format to improve knowledge sharing. The Code includes practical recommendations and links to other Essity policy documents. By providing the Code to employees, translated into 14 languages, we aim to make the Code a practical tool to use in daily work.

Introduction to guidelines for the health care providers industry In 2019, Essity introduced new guidelines for employees in the US, Canada and countries in Latin America who interact with health care providers. Given the high degree of regulation in the healthcare and medical device industry, Essity believes it is important and necessary to provide sales and marketing personnel with detailed guidance on how to interact with representatives from the industry in a manner that is compliant with applicable laws. To ensure the integrity of the relationship between Essity employees and healthcare and medical device representatives, these guidelines are based on industry codes as well as the legal, regulatory and professional requirements in the US, Canada and Latin America where we conduct business. The standards and requirements contained in the guidelines are also consistent with the Essity Code of Conduct and our Anti-Bribery and Corruption Policy.

Whistleblower systemEssity provides employees with a dedicated reporting channel for serious breaches or violations of laws in all countries in which the company has operations. The whistleblower system is operated by an external third party and is open 24/7. Employees have the option of filing a report over the phone or online in 25 diff erent languages to facilitate the process.

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Targets and outcomesEnable more people every day to enjoy a fuller life

Target Outcome 2018

At least 33% of Essity’s inno-vationswill yield social and/or environmental improvements.

33% 59%Hygiene solutions We will make our knowledge about hygiene and health available to customers and con- sumers and ensure access to affordable, sustainable solutions to help them lead a healthy and dignified life. In markets which we operate, we will:• Provide information and implement education

programs on hygiene and health.• Strive to raise hygiene and health standards.

Worldwide, around 2.5 million people

were reached by hygiene and health training arranged by Essity.

Hundreds of millions of people used Essity´s products every day.

Essity held the number one or two position in at least one product

category in approximately 90 countries.

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Enable our employees to realize their full potential, as part of one winning team Target

Outcome 2018

Employee Health and Safety Our aim is zero workplace accidents, and we will decrease our accident frequency rate by 50% between 2014 and 2020.

–50%

–39%

Business ethics and human rights We will maintain compliance with our Essity Code of Conduct. All employees will receive regular training in the Code.

90%

of new employees received training in the Code.

People and nature innovationsWe will deliver better, safe and envi-ronmentally sound solutions to our customers. We strive to continuously improve resource efficiency and reduce our environmental impact by considering the whole life cycle for new innovations.

At least 33% of Essity’s innovations will yield social and/or environmental improvements.

–50%

100%

–39%

Contribute to a sustainable and circular society

Target Outcome 2018

Science-Based TargetsEssity has undertaken by 2030, with 2016 as reference year, to reduce the climate impact of:

– Scope 1 and Scope 2 –25% –5%– Scope 3 –18%

Suppliers: We will evaluate all of our supply streams from a total risk perspective. By 2020, we will source all of our procurement spend from suppliers committed to the criteria specified in Essity’s Global Supplier Standard.

71%

Fiber sourcing: All fresh wood based fiber raw material in our products and packaging will be FSC® or PEFC™ certified. 100% 76%1)

Waste: All waste from all production units will be subject tomaterial and energy recovery by 2030. 100% 60%Water: By 2020, with 2014 as reference year, our plants will:

• Reduce levels of suspended solids –10% –19%• Reduce water usage –10% –3%• Reduce organic content (BOD) –10% –25%

1) As of 2018 material that fulfill FSC´s criteria for Controlled Wood is not included in the fiber target, which explains the decrease compared with 2017. All fiber must fulfill these criteria as a basic requirement.

Outcome will be reported

as of 2019

100%

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Partnerships and Community RelationsEssity is involved in partnerships and engages in community relations in the fields of hygiene, health and well-being, where we have substantial expertise. We focus on breaking taboos in areas such as menstruation and incontinence. For example, we conduct various initiatives supporting girls and women. Educational initiatives are conducted in such areas as handwashing for children, menstru- ation and puberty for both boys and girls, as well as in incontinence care for nurses and caregivers.

Banakekele project In September 2018, TENA launched “Banakekele,” which is Zulu for “take care of them”. This is a project aimed at providing basic healthcare services in mobile pop-up clinics, installed outside shopping centers, with professional nurses providing education and advice on incontinence, samples and basic health checks. This initiative has enabled TENA to visit more than 100 community centers and reach more than 16,000 people in Johannesburg, South Africa.

According to UNICEF, 9 out of 10 girls in Mexico experience abuse by a boyfriend or husband and many others face violence and harassment in school, at home, at work and in public places. Given this, Essity’s Mexican feminine care brand, Saba, partnered with UNICEF to provide accurate information and foster an open dialogue among adolescents, their families and friends to detect and prevent high risk situations before they spiral into violence. The initiative, called “#Hablemos Todo” (“Let´s talk about everything”), has reached 7.5 million adolescents through social media actions, communications platforms, as well as messages printed on actual feminine care pads.

Commitment to Red Cross in France Essity is one of the most significant partners of the French Red Cross thanks to the 100,000 hygiene kits distributed to homeless people every year. Since 2011, more than 720,000 hygiene kits have been distributed by volunteers to the homeless in France courtesy of Essity. These kits – which are different for women and men – include essential products to enable good hygiene for one person for several days, containing such items as a toothbrush, toothpaste, soap, shampoo, comb, mirror, Lotus handkerchiefs, Nana feminine hygiene pads, etc.

Essity and UNICEF support adolescent girls in Mexico

Photo: Yann Le Borgne

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Essentials InitiativeThrough Essity’s “Essentials Initiative,” we are pursuing a global dialogue to increase awareness of the importance of hygiene and health and their link to well-being.

See all photos on fotografiska.essity.com

Essity is collaborating with Fotografiska, the Museum of Photography in Sweden, to develop joint exhibitions on the theme of hygiene and health. In 2018, the “Hand to Hand” exhibition was arranged with images taken by the internationally acclaimed photojournalist Paul Hansen. The exhibition also contained images by the documentary photographer Åsa Sjöström, who followed students at a school in the UK to portray an Essity initiative where children learn at an early age the importance of personal hygiene and handwashing.

Hand to Hand

Recognitions and memberships

Two integral aspects of the initiative are a global survey of attitudes to hygiene and health and a report on societal challenges and opportunities. The focus of the 2018/2019 report is on how personal well-being throughout the course of life, is key to public progress and was produced in collaboration with the UN’s Water Supply and Sanita-tion Collaborative Council (WSSCC). The WSSCC is the main UN body that works solely with sanitation and hygiene issues. It showcases new research, inspiring examples and possible solutions as well as the societal impacts that can be achieved if hygiene and health are prioritized in the decision-making processes among politicians and caregivers as well as private individuals.

Photo: Åsa Sjöström

Essity was – for the third consecutive year – the convening partner to the United Nations Foundation’s Global Dialogue, held at the UN headquarters in New York. The event facilitates discussions between businesses, NGOs and government authorities. Essity’s President and CEO Magnus Groth gave the opening and closing speeches, addressing matters such as the importance of collabora-tion between companies and organizations in order to contribute to the UN Sustainable Development Goals.

as well as private individuals. Personal Well-being – Key to Public ProgressThe Hygiene and Health Report 2018-2019

PRESENTED IN PARTNERSHIP WITH

DISCLOSURE INSIGHT ACTION

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The name Essity stems from the words essentials and necessities. We are a leading global hygiene and health

company that off ers products and services that are necessities in everyday life. Hygiene and health are central to people’s well-being.

Improved hygiene and health are preconditions for a better life and play an essential role in well-being.

That is why we are called Essity.

Essity Aktiebolag (publ)Box 200SE-101 23 Stockholm, Swedenwww.essity.com

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