Introduction

At Essity, we are constantly working to be the best in class by improving our organization, our processes and the skills of our employees. We are committed to a customer-focused approach and achieving continuous improvement. We expect and encourage our suppliers to adopt these same principles and practices. In support of Essity’s strategy we seek to work together with our suppliers to improve overall performance. This Global Supplier Standard (hereafter referred to as “GSS”) applies to suppliers of goods and services to the Essity group. This GSS comprises the requirements for responsible business operations, quality and sustainable development with which suppliers to Essity must comply. These requirements and expectations are presented in the different chapters of the GSS; “Supplier Code of Conduct”, “Quality”, “Product Safety”, “Environment”, “Chemicals” and the additional Annexes. It refers to international standards and defines specific Essity requirements. This GSS may be supplemented from time-to-time by other documents containing additional requirements. In this document, the following terms have the following meanings:

“Goods” means all sorts of materials utilized in Essity’s production (e.g. non-wovens, fibers, plastic films), packaging materials, chemical substances and preparations (e.g. industrial chemicals¹ , functional additives² and auxiliaries³), machinery, non-production material as well as merchandise⁴ (as defined below).

“Services” means all types of services provided by suppliers, including services in connection with the supply of goods. If a supplier’s production is conducted at separate sites or if part of the production process is subcontracted, the requirements in this GSS continue to apply in full and are relevant for all subcontractors involved in the production process of the goods.

Goods selection and supplier selection have distinct processes at Essity. Both goods and suppliers will be evaluated before supply to Essity will be authorized. Such an evaluation can take the form of a questionnaire, visit or an audit at supplier’s premises. The evaluation can also take place again during the supply relationship at periodic intervals.

Upon at least thirty (30) days prior written notice, Essity personnel or an external auditing company selected by Essity shall have the right to assess supplier compliance with this GSS. Supplier shall provide access to its premises and all pertinent information. During the assessment the auditor may interview workers and their elected representatives. For any noncompliance identified, corrective actions will be agreed upon by Essity and supplier and executed to ensure that compliance is attained.

By exception to the foregoing, in case Essity has reasons to believe that the Supplier deviates persistently from or breaches in a material way the GSS, Essity or an external auditing company selected by Essity, has the right to perform an audit immediately and gain access to all relevant documents, premises and information without delay.

Supplier shall pay the reasonable fees and expenses of the external auditing company related to audits including but not limited to the above mentioned, the estimated amount of which shall be communicated by Essity or the auditing company before the start of the audit.

Upon Essity’s request, suppliers shall become a member at their own cost and share their social and ethical status via the online Sedex (Supplier Ethical Data Exchange) platform or such other platform as Essity may designate. The Sedex system includes a self-assessment questionnaire (SAQ) and a risk assessment tool, that will be used as input in Essity’s review of the supplier’s social, ethical and environmental status.

The supplier shall implement appropriate measures to ensure that its own suppliers comply with:

• All legal and contractual requirements in relation to the production and delivery of raw materials/components and/ or services, including but not limited to conformance with required specifications, and ƒ 
• similar requirements as those set forth in this GSS to the extent that said requirements apply to the sub-supplier, its raw materials/components and/or services, including but not limited to the provisions related to the Supplier Code of Conduct (Chapter 2).

The supplier shall also ensure that raw material/component specifications or service specifications agreed upon with its own suppliers are consistent with the required specifications of the goods and/or services supplied to Essity, as well as with the requirements set forth in this GSS.

¹Industrial chemicals refer to all chemicals, e.g. process chemicals and process aids, except functional additives and auxiliaries.

²Functional additives refer to e.g. super-absorbers, perfumes, lotions, adhesives, dyes/printing inks.

³Auxiliaries are chemicals that are not directly part of the production process, e.g. cleaning agents, maintenance chemicals or paints.

⁴Merchandise means products, whether fully or partially assembled, including, without limitation, hygiene products, cosmetic products, detergents, healthcare products, biocidal products, dispensers, electronic parts as well as promotional articles.