Essity's Annual and Sustainability Report 2019: Strategically Driving Efficiency
Essity works continually to improve efficiency by increasing productivity, reducing material, energy and logistics costs and minimizing waste. This strengthens our competitiveness and enhances our financial performance while reducing environmental impact. We are working to leverage digitalization, innovation, global economies of scale and knowledge sharing to increase efficiency in the supply chain and create a world-class value chain.
Zero workplace accidents
Health and safety is a top priority at Essity and we aim for zero workplace accidents. To ensure the best possible conditions, we regularly review work procedures and machinery safety, and assess the need for investments. Our employees receive continuous training to enable everyone to identify risks in time and to eliminate accidents. We strive to nurture a culture where unsafe working conditions and behaviors are immediately reported and rectified. In 2019, Essity held its fifth global safety week with activities in hazard elimination and safety awareness.
Digitalization of the value chain
Digitalization enables more efficient processes in administration as well as sourcing, production and logistics. During the year, we continued to implement digital solutions throughout operations, including self-regulating processes, smart sensors, data analyses, robotization and automation to achieve the lowest cost position combined with the best quality.
Reduced resource consumption and environmental impact
A reduction in resource consumption, for example, through innovation, material rationalization and lower energy use, is one important measure to achieve our targets in terms of adjusted return on capital employed and carbon emissions. We strive to reduce material and energy consumption, for example through our MSAVE and ESAVE programs.
Significant cost savings
In 2019, Essity achieved cost savings of SEK 1,093m, of which SEK 456m in continuous cost savings and SEK 637m as part of the Group-wide cost savings program. The program has been concluded and at the end of 2019, savings amounted to slightly above SEK 900m on an annualized basis. Continuous cost savings include savings in sourcing, production, material rationalization and restructuring measures within the Tissue Roadmap. The Tissue Roadmap is a plan to enhance efficiency in the supply chain in Consumer Tissue and Professional Hygiene.