- EIB signs €300 million loan with Swedish hygiene and health company Essity AB in support of the latter’s product research, development and innovation (RDI).
- This financing supports RDI activities focusing on product innovation for well-being as well as the sustainability of the company’s production processes.
- Essity will carry out the activities related to the EIB financing at several of its European sites, including in Sweden, France and Germany.
Swedish global hygiene and health company Essity AB will finance its research, development and innovation (RDI) programme with European backing. The company signed a €300 million loan agreement with the European Investment Bank (EIB) today. Essity will use the financing for its RDI investments related to personal care, consumer tissue and professional hygiene products.
Apart from targeting improvements in consumer well-being, the RDI will also focus on product innovation and sustainability in manufacturing processes. One area of focus is feminine care, where Essity researches products that better fit women’s requirements while also researching and surveying their experiences and body perceptions.
“We are pleased with the EIB’s support for our comprehensive innovation process focusing on increasing well-being for people everywhere as we continue our journey to reach net-zero greenhouse gas emissions by 2050,” said Magnus Groth, President and CEO of Essity.
EIB Vice-President Thomas Östros stated: “Gender equality and ensuring empowerment of women and girls involves tackling a number of societal issues. This includes not only access to healthcare and hygiene products for women and girls around the world, but also making sure that they can take part in society without barriers. Essity puts a lot of care into researching and designing its products. In the case of the RDI that we are supporting here, we expect that one of the long-term benefits will be economically accessible and environmentally sustainable products, giving women and girls equal opportunities in areas such as access to education and other areas of everyday life.”
As part of the financed activities, Essity will continue to invest in sustainability innovation aiming to lower greenhouse gas emissions and contribute to a circular economy. Essity has committed to net-zero greenhouse gas emissions by 2050.
The company also implements ongoing digital solutions in certain areas, leading to lower consumption of raw materials. In 2021, Essity became the first company in the tissue industry to use agricultural leftovers for sustainable tissue production at an industrial scale. Essity is already investing strongly in the development of a recycling service for paper hand towels in commercial/public areas, showing its commitment to a circular economy.
In 2020, the EIB made more than €2 billion available for Swedish projects. The EIB borrows money on the capital markets and lends it to projects that support EU objectives, with about 90% of all loans being granted within the European Union.
Essity is a leading global hygiene and health company dedicated to improving well-being through its products and services. Sales are conducted in around 150 countries under the leading global brands TENA and Tork, and other strong brands such as JOBST, Leukoplast, Libero, Libresse, Lotus, Nosotras, Saba, Tempo, Vinda and Zewa. Essity has about 46 000 employees. Net sales in 2020 amounted to approximately SEK 122 billion (€11.6 billion). The company’s headquarters are located in Stockholm, Sweden, and Essity is listed on Nasdaq Stockholm. Essity breaks barriers to well-being and contributes to a healthy, sustainable and circular society.