New supply-chain target

To strengthen Essity’s commitment to responsible and sustainable sourcing, a new supply-chain target was launched in 2016. While the former target was limited to global and strategic suppliers, the new target aims to cover all suppliers of raw materials, services and non-production material on a global, regional and local level. It also includes a stricter risk assessment procedure.

The new target is defined as: “We will evaluate all of our supply streams from a total risk perspective. By 2020, we aim to source 100% of our procurement spend from suppliers committed to the criteria specified in our Global Supplier Standard.”

Based on risk assessment, the focus areas for 2016 and 2017 have been identified as suppliers located in Eastern Europe and Latin America, and in particular suppliers of recycled fibers, cotton and logistic services.

In 2016, 16 of 19 global hygiene sourcing teams received social ethical training.

Supply chain management tools

When it comes to supplier requirements and follow-up, Essity works with and assigns priority to three distinct steps:

  1. Global Supplier Standard: All global suppliers to the hygiene and forest products operations undertake to comply with the company’s policies by signing the Group’s Global Supplier Standard (GSS).

  2. Sedex database: Essity’s strategically important suppliers, from which substantial purchases are made and/or which are located in high-risk countries, are registered in Sedex.

  3. Audits: Suppliers located in high-risk countries are audited and all major suppliers undergo quality audits, which also include verifying workplace health and safety.