Essity Earns Top CDP Ratings, Signaling Growing Investor Focus on Fiber Sourcing

Event summary

  • Essity achieved a spot on CDP’s ‘A List’ for forest stewardship and an ‘A-’ rating for climate performance in 2025.
  • The CDP assessment involved over 22,000 companies, representing roughly two-thirds of global market capitalization.
  • Essity aims to reduce emissions by 35% across its value chain by 2030, targeting net-zero emissions by 2050.
  • As a major buyer of wood-based fiber, Essity commits to sourcing certified materials via FSC and PEFC chain-of-custody systems.

The big picture

Essity’s recognition by CDP underscores the growing importance of environmental, social, and governance (ESG) factors in investment decisions. The hygiene and health sector faces increasing pressure to demonstrate sustainable sourcing and reduce its environmental footprint, particularly concerning raw materials like wood fiber. This CDP ranking provides a benchmark against which Essity’s progress toward its 2050 net-zero target will be measured, and highlights the rising influence of third-party assessments on corporate reputation and investor confidence.

What we're watching

Supply Chain Risk
Increased scrutiny of wood fiber sourcing practices will likely intensify, potentially impacting Essity’s procurement costs and supplier relationships as demand for certified materials rises.
Net Zero Transition
The feasibility of Essity’s 2030 emissions reduction target, particularly across its extensive value chain, will be a key indicator of its commitment to net-zero goals and its ability to manage scope 3 emissions.
Investor Sentiment
Continued strong CDP ratings will likely bolster Essity’s ESG profile and attract investors prioritizing sustainability, but any future downgrades could trigger negative sentiment and impact valuation.