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    Reference: 20210374
    Release date: 13 December 2021

    Promoter – Financial Intermediary

    ESSITY AB (PUBL)

    Location

    Description

    The project comprises a selection of the Promoter's planned expenditures in research, development and innovation (RDI) focusing on personal care and consumer tissue products. The project will be carried out primarily at the Promoter's research and development (R&D) centres in Sweden, Germany and France in the period 2021-2024.

    Additionality and Impact

    The project supports research, development and innovation (RDI) activities in the EU that target consumers' well-being and generate significant positive knowledge and environmental externalities through the creation of innovative processes, products or services, and skills development and upgrading of the hygiene and health sector. The financing of this project addresses the market failure that triggers suboptimal investment in the RDI of the health and hygiene industry. It also addresses information asymmetries linked to the inherent uncertainty of RDI activities. The project is expected to have important positive knowledge spillovers through R&D cooperation with academia and industry partners. Positive environmental spillovers are through the development and manufacturing of products using less natural resources, substituting the use of plastics, and reducing GHG emissions. The project furthers the advancement of the EU industry's technological leadership. In addition, the project contributes to the EU Green Deal and is aligned with the Bank's climate action and environmental sustainability objectives, the EU Bioeconomy Strategy and the EU Circular Economy Package. EIB's contribution to the project stems from the combination of a financial advantage, flexible terms of the loan, and helping to crowd-in other financiers, thereby facilitating its full financing and implementation.

    Objectives

    The project supports investments focused in three main areas: i) supporting the development and innovation of new products and services, notably in the hygiene and tissue product segments, targeting consumer well-being; ii) developing environmentally friendlier and more energy-efficient solutions and processes; and iii) improving efficiency and reducing cost of various manufacturing processes.

    Sector(s)

    Proposed EIB finance (Approximate amount)

    EUR 300 million

    Total cost (Approximate amount)

    EUR 811 million

    Environmental aspects

    The RDI activities are expected to be carried out in existing, already permitted, facilities that are already used for the same purposes and that are not expected to change their scope due to the project. It is unlikely that the project or any subcomponent of it will require an environmental impact assessment (EIA) as per EIA Directive 2014/52/EU amending Directive 2011/92/EU. The Bank's services will review the environmental aspects of the project during the due diligence process.

    Procurement

    Although the Promoter is a private company not operating in the utilities sector, and is thus not covered by EU directives on procurement, the Bank will require the Promoter to ensure that any procurement procedures are done in accordance with the relevant applicable EU procurement rules.

    Status

    Signed - 9/12/2021

    Related tags

    France Germany Sweden Industry