The Green Recovery

Contents

_01 Executive summary

_02 Key findings

_03 Impacts

_04 Commentary

_05 Essity’s sustainability strategy (4 Rs)

_06 What the experts say

_07 Methodology

01 Executive summary

We find ourselves at a watershed moment for the sustainability of our environment and our communities.The global coronavirus pandemic put the brakes on life as we know it. It has changed our perception and our behaviour towards many things we previously took for granted. At the other end of the scale, things that we thought were important have become less so.

Now as restrictions begin to lift, there is an opportunity to shape our recovery in a way that will forever benefit our environment and the communities where we live and work.

The UK government has spoken about a green recovery1 and has challenged businesses2 to support this strategy. In order to do that, businesses and brands must understand what sustainability means to consumers in this new world.

As a leading global hygiene and health company, Essity has invested in understanding how attitudes to sustainability have changed in the UK since the Covid-19 pandemic, to better understand the barriers that stand in our way of making progress in the ‘new normal’.

The findings of our research highlight that whilst there is increased appetite to live sustainably, there are some fundamental barriers that need to be overcome in order to achieve long-term, positive change.

The work towards a more sustainable future is a collective effort. Our aim in highlighting these barriers is to share with other organisations those areas of improvement required to help consumers make better and more sustainable choices. We believe that the findings within this report are an illuminating starting point for us all to capitalise on a renewed interest in sustainability.

We hope you find this report informative and agree that the time to build on momentum, and make positive change together, is now.

Daniel MinneyEssity Regional Vice President - UK & ROI

1 "Green recovery of the economy and society after COVID-19: UK statement”, www.gov.uk, 3 June 20202 "Business Secretary leads economic recovery roundtables”, www.gov.uk, 15 June 2020

02Key findings

Produced by Essity, a leading global hygiene

and health company, this report identifies

how perspectives on sustainability have

changed in response to Covid-19 and

explores how barriers to sustainability

more generally need to be overcome

to enable greater progress.

Half of all respondents in this research have become more sustainable since lockdown, buying less plastic, recycling more and reducing single-use items, and 8 in 10 say they intend to stick to these behaviours after restrictions end. 60% said they have developed a greater appreciation for nature and the environment since the lockdown came into effect.

However, the findings reveal three clear barriers:

• Despite being more in-tune with sustainability, a significant proportion of respondents admit that they still find the subject confusing.

• 58% 'sometimes' take the environmental impact of their purchases into consideration when buying items, while 24% don't tend to consider this at all.

• There appears to be a lack of trust around businesses doing the ‘right thing’ – with the majority believing that large corporations have been slow to offer a greater range of sustainable products.

The combination of these findings suggest that businesses and brands have more to do, but that now is the time to do it. Essity believes that in order to build on the positive momentum shown in the research, organisations need to face into the barriers of sustainability for consumers and take action to address the issues of complexity, confusion and inconsistency – or risk missing this opportunity, and the chance to build trust, altogether.

03Impacts

1/3 say this is because they have become more aware of how we are impacting the planet

31% have paid more attention to how eco-friendly products are before purchasing

6 in 10 have developed a greater appreciation for nature and the environment since the lockdown came into effect

81% say sustainability and the environment is now more important to them as a result of the pandemic

72% say their local community is now more important to them as a result of Covid-19 – wanting to make a difference is a key reason

Sustainablebehaviours 8 in 10 intend to stick to their sustainable behaviours post-lockdown

+12% on average, people are willing to pay 12% more for sustainable goods and services if it helps the planet

58% ‘sometimes’ take the environmental impact

of their purchases into consideration when buying items

40% say they rely on the news as a key source of information about sustainability

38% look for information about sustainability on packaging

50% of respondents believe they have become more sustainable since lockdown came into effect

51% have managed to reduce food waste

46% are recycling more

31% are buying less plastic

28% have cut down on single-use items

#1 reason for this is having more time

Covid-19

Item Current price Sustainable price

Eggs (12, large) £2.27 £2.54

Bread (Medium loaf, white, sliced) £1.05 £1.18

Milk (4pt, whole milk) £1.11 £1.24

Chicken breast (per kg) £6.60 £7.39

Tea bags (pack of 80) £2.04 £2.28

Standard box of cereal £2.16 £2.42

Orange squash (750ml – 1l) £1.58 £1.77

Potatoes (per kg) £1.34 £1.50

Bananas (per kg) 86p 96p

Toilet roll £2.25 £2.52

Total cost £21.26 £23.80

On average, respondents said they are willing to pay 12% more for sustainable goods and services if it helps the planet. This could include the ways they are sourced, manufactured, packaged etc.

This table demonstrates what this would look like for some shopping essentials.

In 2019, average weekly household spending in the UK was £585.601. For those willing to spend an extra 12% for sustainable products, this equates to an increase of approximately £3,654 per year.

Prices taken from Official National Statistics data (May 2020) and Essity (June 2020).

Average basket

1 "Family spending in the UK: April 2018 to March 2019”, www.ons.gov.uk, 19 March 2020

Barriers to sustainability51% of respondents admit they are still confused about how to be sustainable

45% believe there is conflicting advice when it comes to what you should and shouldn't do to be eco-friendly

44% aren’t clear how products are sustainable

42% find the topic overwhelming

32% don’t know what the different terms mean when it comes to sustainability

say a lack of transparency about which products are sustainable is a hindrance to being more eco-friendly

of respondents agree that they seek out products accredited by sustainability groups

believe some manufacturers do not take the issue seriously enough

believe some corporations attempt to bury the issue 26%

35%

37%

42%

64%

45%

think some large corporations have been too slow to offer a greater range of green products

say more options for recycling and reusing products would help them to be more sustainable

34 %say more transparency from brands and businesses would help them to be greener

04CommentaryThe findings of this research should

make companies sit up and take notice.

There is a fundamental lack of trust from

consumers about what businesses and

brands are saying when it comes to

sustainability. Consumers either don’t

believe these claims or are confused by

them. As a result, they don’t feel they can

trust business as a source of information.

Yet despite this, most respondents in this study said they have become more sustainable in the last few months, that they want to continue their greener lifestyle and that they are willing to spend more on sustainable products. They just want to understand more about how to be sustainable. For a company that can genuinely earn the trust of consumers, this is an incredible opportunity.

But companies working alone cannot overcome these barriers. Collaboration will be a critical success factor across industries and categories. We must try to find mutual ground when it comes to the use of terminology, and we must work together to find tangible solutions that prove to consumers there is a genuine desire to help them live a more sustainable life. As part of this, it is crucial that we focus on simplicity to help consumers understand how they can make a difference and reassure them

that brands and businesses are trying to do the right thing to make this easier for them, too.

Transparency will be vital in building trust. Often, companies only talk openly about a success story that can often be years in the making. But what if we took consumers, critics and other stakeholders with us on the journeys of the hundreds of different ideas and innovations that don’t necessarily end up on a supermarket shelf? At heart, by sharing what we’ve learned as much as what we’ve achieved, we can show consumers the different ways in which we all are trying to make progress – as well as challenge and inspire each other, too.

Finally, infrastructure will be key. Respondents in this study are telling us that there is inconsistency about how they can recycle or reuse products and materials. That is leading to further confusion and misunderstanding. Again, collaboration across different industries and transparency of the options available can help to simplify life for consumers and support more sustainable living.

At Essity, we acknowledge what we’ve learned from the respondents in this study and it will now be a critical reference point as we make decisions about sustainability in future.

Daniel Minney, Essity Regional Vice President - UK & ROI

05Essity’s sustainability strategy

Essity is breaking barriers to well-being.

This includes the well-being of the world that

we live in and the communities where we

operate - our focus for sustainability.

This report demonstrates that sustainability is a complicated topic, with more than half of respondents stating that they find the subject confusing. It also highlights other barriers, including complexity and inconsistency. Our goal is to break these down to drive continuous improvement. This starts with how we communicate our progress.

Our global sustainability strategy is defined by three pillars – Well-being, More from Less and Circularity. In the UK and ROI, we deliver this strategy through the 4 Rs – reduce, reuse, recycle and responsible.

The 4 Rs keep us focused on taking action and making progress. In the UK and ROI, every sustainability project now ladders back up to at least one of the Rs. We also collaborate with industry experts to be part of the solution, recognising that we can make a real impact together for people, society and the environment.

Well-being

More from Less

Circularity

Our Global Strategy

What This Means In Practice - The 4 Rs

Reduce RecycleReuse Responsible

Recycle03

We are working towards 100% recyclable packaging made with 85% recycled or renewable materials by 2025. Where we can use recycled materials in our products, we will.

For example, trials are underway to produce paper towels using fibre from used takeaway coffee cups at our Stubbins paper mill.

Responsible04

Sustainability isn’t just about the environment. We have a responsibility to help build sustainable communities too. If we can help, we will.

For example, Bodyform donates 100,000 pads every month to support over 5,000 charities throughout the UK and ROI.

Reduce01

Where we can reduce unnecessary materials or waste, we will.

For example, in 2020 we are reducing packaging on Cushelle by 50 tonnes a year by using thinner film and removing handles.

Reuse02

Whenever we can find a way to reuse a resource, we will.

For example, in our manufacturing sites, we have set targets to increase the number of times water can be reused within the paper making process.

06What the experts say

“It is obviously encouraging that your research indicates an increase in sustainable behaviours since lockdown and that this may continue when 'normality' resumes. However, the survey results also highlight the fact that consumers need greater clarity on which products are sustainable. From our own research, we know that most consumers look for this information on-pack and they trust third party certifications, such as FSC®,

more than company claims. We therefore encourage companies such as Essity to further promote the FSC status of their products and, in this way, help consumers to make informed decisions.”

Rosie Teasdale, Executive Director FSC UK

“This interesting research shows encouraging evidence that people have increased their environmental awareness during the lockdown and many intend to change their lifestyle and habits in future.

The work Valpak has been doing with leading retail brands and Essity to provide consumers with a practical solution to the issue of recycling paper cups is a great example of industry working together but we also need consumers to do their bit. This research shows very positive signs

that there is a change in attitudes which is likely to continue into the future.”Adrian Hawkes, Director of Policy – Valpak

“The anecdotal evidence is that the Covid-19 pandemic has impacted on citizens’ views and behaviours on sustainability and the environment. The leadership from Essity to go out and listen to the UK public’s

views is an incredibly helpful contribution to move beyond anecdote into real understanding of what citizens say they do and value. In turn, this properly informs business strategies to deliver truly sustainable systems.”

Paul Vanston, CEO INCPEN

“This research provides an invaluable insight and reiterates just how important the environment and sustainability are to people and how willing they are to make a positive difference. It is encouraging that despite our current situation, half of adults have become more sustainable since lockdown began and that 8 in 10 intend to carry on that behaviour

post-lockdown. The research also highlights key areas where change needs to be made by businesses to make being sustainable easier for consumers. With overcomplicated recycling

information, conflicting news stories and mystifying greenwashing claims made by companies, it is unsurprising, that despite being more in-tune with the subject, 51% of consumers find it

confusing. Steps taken by individuals are so important, but we need collective action at all levels to overcome these issues. I hope to see manufacturers, supermarkets and brands reacting and reflecting upon these findings and responding by taking responsibility and committing

to make real changes. We need them to show leadership, become transparent and bring sustainability to the forefront by finding solutions to tackle the issues at source.”

Ella Daish, Environmental Activist

“We are heartened to see that despite the toll the pandemic has taken on individuals and communities, there is a clear desire to live more sustainably as a result of this crisis.

In Kind Direct works closely with charities and community groups across the UK, to provide access to life’s essentials and ensure no usable product goes to waste. During UK lockdown,

we have seen a huge surge in demand, supporting over 2,000 local organisations with goods worth over £4.5m. The need for local care and support has never been greater and the role of community-based services will remain vital during this crisis and far beyond. We must all now work together to ensure the increased importance of local community translates into greater

support for the charities working within them and for those that rely on their services.”Rosanne Gray, CEO In Kind Direct

“The research from Essity reveals really valuable insights. Consumers are clearly indicating that sustainability is high on the agenda, and they haven’t forgotten about this during lockdown, but there is real confusion about how to keep the momentum going.

Aligning with our own data, consumers do struggle with conflicting points of view on issues like carbon emissions versus plastic packaging. Consequently, they expect corporations

to manage this on their behalf, which is why it’s important that we continue this dialogue and focus on ways to help.”

Chris Brown, Senior Director Sustainable Supply Chains, ASDA

“Wen is delighted to hear that having more time has allowed UK adults to become more sustainable, buying less plastic and single use items, and really focusing on their consumption

habits. We are very saddened and concerned that it has come at such a cost, the overwhelming loss of life and suffering inflicted by this pandemic and its current and future impact on all our

lives. Wen is heartened about the increasing numbers of people finding solace in nature and according to this report, with that solace comes an increase in environmental awareness.

We believe this is a good opportunity for business also to take stock and respond to the concerns raised in this report, including listening to consumers and earning their trust by increased transparency about what is in their products, and ensuring a sustainable

and circular economy in their supply chains.”Natasha Piette-Basheer - Environmenstrual Campaign Manager

“It’s really encouraging to see how this awful pandemic is kickstarting many people’s journey to sustainable living. We hope that these lifestyle changes are long lasting and evolving, to help protect both our planet and our species. City to Sea will continue to do our part raising awareness of solutions to single-use plastic and working towards system change

from our government, businesses and communities. Ultimately – if we can live more in harmony with nature we can reduce the risk of future pandemics, creating a safer,

cleaner, greener world for us all.”Jas Tribe, Campaign Manager – City to Sea

07Methodology

This independent study was carried out online

via OnePoll, between 10th - 12th June 2020.

The total sample size was 2,000 UK adults.

Essity is a leading global hygiene and health company dedicated to improving well-being through products and services. 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 is listed on Nasdaq Stockholm.

In the UK and Republic of Ireland, Essity has around 1,600 employees across 11 sites, including six tissue production mills. Its regional brands include Bodyform, Cushelle, Velvet and Plenty.

For more information visit www.essity.co.uk.

Appendix: Regional breakdownRegion %

London 59%

Scotland 55%

East Anglia 52%

Yorks & Humber 52%

East Midlands 50%

Northern Ireland 48%

South East 47%

South West 47%

Wales 47%

West Midlands 47%

North East 44%

North West 43%

Region %

London 58%

North East 56%

Yorks & Humber 54%

Northern Ireland 53%

North West 52%

East Anglia 51%

East Midlands 49%

South East 49%

Scotland 48%

West Midlands 47%

Wales 45%

South West 44%

% of adults that have become more sustainable since lockdown

% of adults that find the topic of sustainability confusing

The Green Recovery