At Essity, responsible procurement is integral to how we select, assess, and manage suppliers. Our due diligence process is designed to identify, prevent, mitigate, and address environmental, social, ethical, and human rights risks throughout the supply chain.
Essity applies a risk-based approach to both new and existing suppliers. Suppliers are assessed based on factors such as sustainability risks, regulatory requirements, product quality and safety, operational impact, and sourcing complexity. The level of due diligence is determined by the potential impact and likelihood of identified risks.
All suppliers are expected to comply with Essity's Global Supplier Standard and Essity’s Supplier Code of Conduct, which includes requirements related to business ethics, human rights, labor conditions, health and safety, environmental performance, and product quality. Suppliers are also expected to promote similar standards within their own supply chains.
Suppliers are assessed based on the type of goods or services provided, their geographical location, and other relevant risk factors. Assessments may include supplier questionnaires, sustainability self-assessments, sanctions and integrity screenings, and reviews of relevant risk indicators.
Where elevated risks are identified, Essity may require independent ethical audits. These audits assess areas such as labor rights, working conditions, health and safety, and business integrity. When issues are identified, Essity implements and monitors corrective action plans to support continuous improvement.
Some of the most significant sustainability risks occur further upstream in supply chains, particularly for raw materials such as wood fibers, cotton, and recycled materials. To address these risks, Essity uses a combination of certifications, traceability systems, supplier engagement, audits, industry collaboration, and partnerships with external stakeholders and organizations.
Essity regularly reviews supplier risk assessments to ensure risks remain understood and effectively managed. Where necessary, Essity implements mitigation measures, builds supplier capabilities, and works collaboratively to drive improvements. As a principle, Essity seeks to improve conditions through engagement and corrective action, with termination of a supplier relationship considered a last resort.