Sows are strongly driven to build a nest prior to farrowing, and the performance of this behaviour is linked to the environment in which the animal is housed. The aim of this study was to investigate the impact of two nest-building materials, hessian and straw, on peri-parturient sow behaviour, plasma cortisol concentration and piglet survival and performance in farrowing crates. In the first experiment, sows (parity 1.7 ± 0.1) were allocated to four treatments: (n = 15), straw provided in the lead up to farrowing in an open farrowing pen, with the pen closed after farrowing (STRAW OPEN); (n = 14), straw provided in the lead up to farrowing in a closed farrowing pen (STRAW CLOSED); (n = 15), a closed farrowing pen with hessian sacks provided in the lead up to farrowing (HESSIAN) and; (n = 13), a closed farrowing pen with no nesting materials provided (CONTROL). A second experiment was performed on a separate farm to assess the effect of the same four treatments were applied to sows (parity 2.9 ± 0.1): SRAW OPEN (n = 68), STRAW CLOSED (n = 64), HESSIAN (n = 66) and CONTROL (n = 66), at a commercial level. The first experiment revealed that providing conventionally housed sows with straw or hessian in the lead up to parturition stimulated sows to perform nest-building behaviours similar to sows housed in an open pen with access to straw (nosing events; 16 ± 11 (CONTROL); 169 ± 36 (HESSIAN); 118 ± 29 (STRAW CLOSED); 199 ± 53 (STRAW OPEN); P < 0.05). Additionally, crated sows provided with straw had reduced cortisol levels immediately after farrowing compared to all other treatments (21.9 ± 6.1 ng/ml vs CONTROL; 49.3 ± 8.6 ng/ml; P < 0.01). Piglets born to STRAW CLOSED sows displayed the highest colostrum intake levels (404.8 ± 22.7 g vs CONTROL 361.9 ± 21.9 g; P < 0.01). The second experiment demonstrated a reduced incidence of piglet mortality both prior to fostering (0.7 ± 0.2; P = 0.001) and after fostering (0.7 ± 0.2; P = 0.001) in litters born to sows which were housed in conventional farrowing crates and provided with straw compared to CONTROL (prior to fostering 1.3 ± 0.2, and postfostering 1.1 ± 0.2). In conclusion, straw and hessian sacks are a suitable substrate for stimulating sows to exhibit nest-building behaviour under crated conditions. However, only the provision of straw in the crate environment improved piglet survival and positively affected sow welfare.