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Targets and Outcomes

Essity creates value for customers, consumers, communities, employees, and shareholders through profitable and sustainable growth. The concept of profitable and sustainable growth has been broken down into a number of Group targets and policies.

Financial targets and outcomes

Annual organic sales growth*
Target:

>3%

Outcome 2024:

0.2%

In 2024, organic sales growth amounted to 0.2%, of which volume accounted for 0.5% and price/mix –0.3%. Excluding restructuring and exited contracts, organic sales growth amounted to 1.8%.
EBITA margin excluding IAC*
Target:

>15%

Outcome 2024:

14%

In 2024, profit was positively impacted by increased volumes, a positive mix and good price discipline combined with lower cost of goods sold.
Capital Structure Policy
Target:
Maintain a solid investment grade rating
Outcome 2024:
Solid investment grade rating
Net debt amounted to SEK 30,769m. Net debt in relation to EBITDA excl. IAC was 1.16.
Dividend Policy
Target:
Long-term stable and rising dividends
Outcome 2024:

8.25 SEK

The dividend for 2024 increased by 6.5% compared with 2023 to SEK 8.25 per share.

Sustainability targets and outcomes

Science-based climate targets
Target 2030:

-35%

Scope 1 and 2
Outcome 2024:

-27%

Scope 1 and 2
Reduction of absolute greenhouse gas emissions Scope 1 and 2, and Scope 3

Essity’s climate-affecting emissions are divided into three different classes (Scope) depending on origin. Scope 1 and 2 are directly linked to Essity’s production. Scope 3 reports indirect emissions in the value chain.

–35%

Scope 3

–21%**

Scope 3
Sustainable innovations
Target (annual):

>50%

Outcome 2024:

87%

Share that yielded social and/or environmental improvements

Our target for sustainable innovations is that at least 50% of Essity’s innovations will annually yield social and/or environmental improvements. Essity tracks the sales from launched innovations against both social and environmental improvement criteria. Innovations are classified as sustainable if meeting either one or both criteria.
Health and safety
Target 2025:

–75%

Outcome 2024:

–66%

Decrease in total recordable incident rate

The Total recordable injury (TRI) figure includes Lost time accidents (LTA), Restricted work cases (RWC) and Medical treatment cases (MTC). All of Essity’s production facilities are conducting purposeful and systematic work with safety issues.
Gender distribution at management leve
Target (annual):

40/60%

Outcome 2024:

34/66%

Gender distribution on all management levels is to be between 40 and 60% for each respective gender

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%, where the majority group based on gender is to constitute no more than 60%. The target is reported at an aggregate outcome level for the three management levels. For the outcome in 2024, 34% were women and 66% were men.
Water
Target 2032:

–25%

Outcome 2024:

–5%

Reduction of freshwater intake at tissue sites in water-stressed regions

In 2024, Essity’s target was set to reduce freshwater intake by 25% at eight tissue paper facilities in water-stressed regions by 2032, using 2022 as the baseline. This addresses the water consumption at sites with the highest risk of water stress and focuses on reduction of water intake.
Fresh fiber
Target (annual):

100%

Outcome 2024:

99%

Share of FSCTM or PEFC-certified fresh fiber

Through certifications such as the Forest Stewardship Council™ (FSC™ C003255) and the Programme for the Endorsement of Forest Certification (PEFC/16-33-1406), Essity ensures sustainable fiber sourcing, thereby preventing deforestation and promoting biodiversity.
Production waste
Target 2030:

100%

Outcome 2024:

71%

Subject to material or energy recovery

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.
Packaging
Target 2025:

85%

Outcome 2024:

80%

Share of packaging manufactured from renewable and/or recycled material
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.
Responsible sourcing
Target 2025:

95%

Outcome 2024:

94%

Share of Essity's total purchase cost from suppliers that comply with Essity’s Global Supplier Standard
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
Target (annual):

100%

Outcome 2024:

90%

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.
*Financial targets from June 17, 2024
**Outcome in 2023
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