EIB Backs €400m Essity R&D Drive to Green Europe’s Health Sector

EIB Vice-President Karl Nehammer said sustained investment in innovation is essential to Europe’s competitiveness and quality of life.

The European Investment Bank (EIB) is lending €400 million to support a major research, development and innovation push by Swedish health and hygiene company Essity, accelerating the shift toward low-carbon, circular and bio-based solutions across Europe.

The financing will support Essity’s research centres primarily in Sweden, as well as in Germany and France, strengthening Europe’s industrial base in personal care, professional hygiene and medical wound care. The programme focuses on replacing fossil-based plastics with bio-based materials, cutting greenhouse gas emissions, reducing waste and expanding digital solutions across product design and manufacturing.

EIB Vice-President Karl Nehammer said sustained investment in innovation is essential to Europe’s competitiveness and quality of life. He said backing Essity’s RDI programme helps reinforce Europe’s technological leadership in health and hygiene while advancing the EU’s green transition and circular economy ambitions.

Essity’s research programme underpins globally recognised brands including Tempo, Libresse, Libero, TENA, Tork and Leukoplast. The company employs around 36,000 people worldwide, and the EIB loan supports long-term innovation that aligns with EU priorities to strengthen strategic industries, decarbonise production and minimise material waste.

The financing sits within the EIB’s “innovation, digital and human capital” policy area and contributes directly to its climate action and environmental sustainability objectives. It is also aligned with the EU Green Deal, the bioeconomy strategy, circular-economy initiatives and the TechEU programme, which aims to reinforce Europe’s industrial and technological leadership.

Essity President and CEO Ulrika Kolsrud said the agreement strengthens the company’s innovation capabilities across the group, supporting both incremental upgrades and breakthrough product development. She said Essity remains committed to combining sustainability and performance to deliver solutions that raise standards in hygiene and health while reducing environmental impact.

The project also delivers a strong gender-equality dimension, with around 30% of total RDI spending dedicated to feminine care. This includes research into menstrual protection and incontinence products, grounded in user research, clinical evidence and product testing, to improve women’s everyday health outcomes while lowering environmental footprints.

As a repeat EIB client, Essity has previously completed EIB-financed multi-year RDI programmes in 2016 and 2024. Officials say the latest investment offers an opportunity for early adopters across the European health, hygiene and materials sectors to collaborate, pilot new bio-based technologies and help scale sustainable solutions that can be deployed across global markets.