Essity is a hygiene and health business, operating within three business segments: Personal Care, Consumer Tissue and Professional Hygiene. Product offerings include baby diapers, incontinence products, toilet paper, facial tissues and hand sanitizers, among others. Headquartered in Stockholm, Sweden, the company sells its products in over 150 countries.
To minimize the impact of its raw materials, Essity’s target for fiber sourcing is for all of its fresh wood fiber to be certified by the Forest Stewardship Council (FSC) or Programme for the Endorsement of Forest Certification (PEFC), or fulfill the FSC’s standard for controlled wood, allowing for full traceability along this supply chain. The company states its preference for FSC certification and encourages all suppliers to work toward FSC certification. In addition, Essity utilizes life cycle assessments to minimize waste, from product design through manufacturing and end of life. In fact, the concept of continuously improving resource efficiency is embedded in the company’s innovation strategy. In a recent year, 40% of Essity’s innovations improved in terms of social and/or environmental impact. Essity strives for a higher proportion of women among its senior management and in a recent year 25% and 27% of senior and middle management, respectively, were women.
Essity subsidiary companies have been found guilty of price-fixing in Spain and Chile in recent years.
Industry: Consumer Staples
To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 06/30/2017 and may not reflect current opinions or subsequent events.