Preventing and mitigating risks
Essity applies a proactive approach to preventing and mitigating sustainability risks in the supply chain. Our efforts focus on setting clear expectations, selecting suppliers responsibly, assessing risks, and promoting continuous improvement.
Clear Supplier Requirements
All suppliers are expected to comply with Essity's Global Supplier Standard and Supplier Code of Conduct, which outline our requirements regarding business ethics, human rights, labor conditions, health and safety, environmental performance, and product quality. Suppliers are also encouraged to apply similar standards throughout their own supply chains.
While Essity reserves the right to terminate business relationships in cases of serious or repeated non-compliance, our preferred approach is to work with suppliers to address issues and drive improvement.
Responsible Supplier Selection
Preventing risks starts with careful supplier selection. Before entering into a business relationship, suppliers are assessed against a range of criteria, including sustainability performance, product quality, regulatory compliance, and financial stability.
Risk-Based Sourcing Decisions
The sustainability risks associated with materials and suppliers can vary depending on origin, production methods, and local conditions. Essity considers these factors when evaluating suppliers and may require additional due diligence, audits, or other controls for higher-risk materials, regions, or suppliers.
Certified and More Sustainable Materials
For raw materials where risks are often found further upstream in the supply chain, Essity uses certification schemes and recognized standards to support responsible sourcing. Examples include certified wood fibers, more sustainable cotton programs, and certified sustainable palm oil. These approaches help improve transparency and reduce environmental and social risks.
Continuous Review and Improvement
Essity regularly reviews sourcing practices, supplier requirements, and risk management processes to ensure they remain effective and aligned with evolving regulations, stakeholder expectations, and emerging sustainability challenges. Insights from risk assessments, audits, and supplier engagement strengthen our approach and drive continuous improvement.