Essity B 231.5 (-1.3 SEK) on 25-Sep-2023 09:09



Innovation is deeply embedded in our company’s strategy and business model

Risks and Risk Management


Essity is exposed to a number of strategic, operational and financial business risks, which could have a negative impact on the Group’s operations. Accordingly, it is of major importance that the company has a systematic and effective process to identify, manage and mitigate the effects of these risks.

Processes for risk management

The responsibility for the management of business risks follows the company’s delegation scheme, from the Board of Directors to the President, and from the President to each Business Unit President. The delegation scheme involves business risks being managed primarily by Essity’s business units with clear central coordination and follow-up. Responsibility for certain specific risks, such as financial risks, insurable operational risks, information security, and ethics and human rights, is managed centrally. 

Essity’s financial risk management is centralized. The Group’s internal bank handles financial risks and energy risks. The financial risks are managed in accordance with the Group’s Finance Policy, which is adopted by Essity’s Board of Directors. Together with Essity’s Energy Risk Policy, the Finance Policy constitutes a framework for financial risk management. The financial risks are compiled and continuously monitored. Responsibility for insurable operational risks is managed by the Group’s insurance department. 

Identification of business risks and risk management are a key part of the annual strategy process. Identified risks are assessed according to the likelihood of these becoming a reality and the potential impact each risk could have on the Group. This process also includes specifying who is responsible for managing the respective risk, and measures for how these shall be mitigated and followed up. Development of the identified risks is monitored and assessed on an ongoing basis. Essity has an internal audit function, which ensures that the organization complies with the adopted policies.

Climate-related risks and opportunities

Climate change affects Essity and the company continuously maps the risks and opportunities this entails using, for example, scenario analyses.

The purpose is to identify, manage and minimize the risks and to take strategic action. Strengths and opportunities identified and agreed upon actions provide a basis for the company’s strategic priorities in the area of sustainability.