Mondi Group Sustainability report 2007
Forestry
21 Credibilitythroughcertification
23 Managingbiodiversity
24 Watermanagementinourplantations
25 Woodtracingtodefeatillegallogging
26 Meetingsocialneedsinourforests
Contents
Overview
2 Groupstructure
4 Chiefexecutive’sstatement
6 Boardsustainabledevelopmentcommitteechairman’sstatement
7 Oursustainabilityjourney
8 Progressagainstsustainabledevelopmentcommitments
Governance
12 Accountabilitystructure
13 Externalcorporatestakeholderengagement
15 Scopeandassurance
Economic contribution
17 Businessandmarkets
17 Financialreview
18 Reviewofoperations
19 EconomicstrengthoftheGroup
Environmental performance
29 Reducingenergyintensityandcarbonemissions
30 Water–usingless,reusingmore
31 Workingtogethertocleartheair
32 Focusingonthelandfillchallenge
Product stewardship
34 Productlifecycle
34 Risingtothepackagingchallenge
Social responsibility employees 39 Implementingglobal
employmentstandards
39 ThenineSafetyRulestoliveby
Social responsibility communities 43 Communityengagement
andCSI
44 Ethicalbusinessconduct
South African-specific issues
47 BBBEEratings
49 OurCSIapproachinSouthAfrica
50 Landclaimsandindigenouspeople
51 CombatingtheHIV/AIDSepidemic
Appendix
52 ERMassurancestatement
54 Datatables
56 Glossaryofterms
57 GRIG3ReportingGuidelinesIndex
Cover photograph: The advanced imaging system, recently installed at our Zeltweg converting plant in Austria, allows us to quickly identify and correct defects in coating materials we produce.
Mondi Group
Unlessweprotectresourcesandtheearth’snaturalcapital,weshallnotbeabletosustaineconomicgrowth.
AtMondi,weareintegratingsustainabledevelopmentintoourbusinessmodel.Thisreportdemonstratesourprogresstowardsmeetingoursustainabilitycommitments.
Former United Nations Secretary General Kofi Annan
www.mondigroup.com Sustainabilityreport2007 Mondi Group 3
Annualglobaldemandforbusinesspaperisrunningataround155milliontonnes,ofwhichuncoatedfinepaper–Mondi’sprincipalproductinthissector–accountsforsome54milliontonnesandnewsprintforaround39milliontonnes.TheGroup’sbusinesspaperoperationsarebasedmainlyinwesternandemergingEurope,RussiaandSouthAfrica.
Key productsUncoatedfinepaper(UFP),including‘universal’BandCgradeofficeandoffsetpapers,andspecialityAgradeofficepaper,colourlaserandtintedpapers
Newsprintandtelephonedirectorypaper
Merchantingofgraphic,packagingandofficecommunicationpapersandotherofficesupplies
Market positionsNo 1producerofofficepaperinEurope
No 1inUFPandnewsprintinSouthAfrica
No 2producerofUFPinEurope
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Packaging
TheglobalpackagingindustryiswortharoundUS$450billionannually.Roughlyathirdispaper-basedpackaging,whichisMondi’sprincipalactivity.TheGroup’spackagingoperationsarebasedmainlyinwesternandemergingEurope,Russia,TurkeyandSouthAfrica.
Key productsVirginandrecycledcontainerboard,andconvertedproductsincludingcorrugatedboxes,corrugatedboardandpoint-of-saledisplays
Kraftpapersandindustrialbagsforbuildingmaterials,chemicals,foodandanimalfeed
Flexibleplastic-basedproducts,includingreleaseliner,extrusioncoatingandspecialityconsumerflexiblespackaging
Market positionsNo 1producerofkraftpaperinEurope
No 1inbagconvertinginEurope1
No 1incorrugatedpackaginginSouthAfrica1
No 1incartonboardinSouthAfrica1
No 1inrigidplasticpackaginginSouthAfrica1
No 2producerofkraftlinerinEurope
No 3incorrugatedpackaginginEurope1
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Business paper
Percentages of sales from product groups 2007
FlexiblesCorrugatedBags31% 19%50%
Businesspaper76%
Newsprintandmerchanting
24%
1basedonsales
includingnewsprintandmerchanting
Percentages of sales from product groups 2007
ForestryWoodistheessentialrawmaterialforallofMondi’svirginpaper-basedproducts.TheGroupownsorleasesmorethan1.9millionhectaresofhardwood(e.g.eucalyptus)andsoftwood(e.g.pineandspruce)forestsinthelowcostregionsofRussiaandSouthAfrica,providinganannualallowablecutof8millionm3.ThismakesMondipotentiallyself-sufficientinwoodformorethanhalfitspulp-productionneeds.
PulpIn2007Mondiproducedaround3.8milliontonnesofpulp,thebasicingredientofallpaperandpaper-basedpackaging,fromnineintegratedpulpandpapermillsinAustria,Bulgaria,CzechRepublic,Poland,Russia,Slovakia,SouthAfricaandSweden.Pulpisproducedfromwoodfibre.ExcludingHungary,in2007,theGroupwas96%self-sufficientinpulpforpaperproduction.
Packaging paperIn2007Mondiproducedaround3.4milliontonnesofpackagingpaper:kraftpaper,containerboard,kraftliner,recycledcontainerboard(allfromsoftwoodandrecoveredpaper)andpackagingboardforliquids(fromhardwood).TheGroupproducesmorepackagingpaperthanitconsumesinitsconvertingoperations,sellingthebalancetoexternalcustomers.
Converted packagingMondiaddsvaluetoitspackagingpaperoutputbyconvertingitintoarangeofproducts:
high-strengthkraftpaper,madefromvirginfibre,isconvertedintoindustrialbagsforthebuildingandchemicalindustries;and
kraftlinerandrecycledcontainerboardareusedtomakecorrugatedboxes.
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Packaging customersMondisellsitspackagingproductstofourmainmarkets:
fast-movingconsumergoods(FMCG)companies;
packagingconverters(whouseMondi’svirginandrecycledcontainerboardtoproducecorrugatedboxesforfoodanddurablegoods);
buildingandconstructioncompanies;and
variousotherindustries(e.g.chemicals,pharmaceuticalsandelectronics).
Business paperUncoatedfinepaperismanufacturedmainlyfromhardwoodpulp.
Softwoodpulpandde-inkedrecoveredpaperareusedtomanufacturenewsprint.
Converted paperUncoatedfinepaperistypicallyusedforphotocopierpaperandprintingapplications.Itissoldascut-sizeofficepaper,infolioformorinlargereels.
Business paper customersMondisuppliesbusinesspaperthroughthreemainchannels:
merchants;
originalequipmentmanufacturers(OEMs);and
officesuppliersandretailers.
Recovered paperMondiusessubstantialquantitiesofrecoveredpaperasarawmaterialinitspapermills.25-30%oftheGroup’spaperproductsaremanufacturedfromrecycledmaterials.
ReplantingEachyear,Mondireplenishesitsforestryassetswithextensivereplantingprogrammes.In2007,theGroupplantedmorethan18,000hectaresofnewtreesinRussiaandSouthAfrica.
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includingMondiPackagingSouthAfrica
Sales
€3.9bnSales
€2.3bn
4 Mondi Group Sustainabilityreport2007
I am pleased to introduce our first full sustainability report as an independent Group. 2007 was a significant year of change in which we continued our efforts to integrate sustainable development (SD) into our business. While we recognise that independence brings with it many changes, new responsibilities and challenges, it also presents us with opportunities.
An improved performanceOurcontinuingstrongfinancialperformanceenablesustoprovidesignificantsocio-economicbenefitstomanystakeholdersandtoimplementinitiativesandinvestmentsaimedatfurtherimprovingoursustainabilityperformance.
Weproducedastrongfirstsetofresultswithasubstantialrecoveryinoperatingprofit.Thesereflectthegenerallypositivetrendsinourkeybusinesssegments,despitecontinuedpressurefromtradeflowsonthebackoftheweaknessoftheUSdollarandhighinputcosts.Ourunderlyingoperatingprofitrose33%to€502million.TheGroupdeliveredongoingefficienciesandcostsavingsof€167million,despiteupwardpressureoncosts.Productionvolumesalsoincreasedforallourmainproducts.
Wehavenowdevelopedoursustainabledevelopmentmanage-mentsystem(SDMS),thetoolwhichwillprovideuswiththemechanismtodeliversuccessfullyonourSDcommitments.ImplementationofthesystemhasalreadystartedthroughouttheGroup.
CoupledwiththedevelopmentoftheSDMS,in2007wealsodevelopedandareintheprocessofimplementinganewSDreportingandinformationsystem,MORIS.ThisreplacestheAngloAmericanplcdatabaseandwillsupportusinthemanagementofoursustainabilityreportingandhelpustomanageoursustainabilityperformanceeffectively.
WehavealsobeenawardedmembershipoftheDowJonesSustainabilityWorldIndex(DJSIWorld)andthePan-EuropeanDowJonesSTOXXSustainabilityIndex
(DJSISTOXX).WealsoqualifiedforinclusionontheJohannesburgStockExchange’s(JSE)2007SociallyResponsibleInvestment(SRI)Index,demonstratingourcommitmenttosustainabilityandtheprogressandimprovementswearemaking.
Inaddition,wehavebecomesignatoriestoanumberofinternationalinitiativeswhich,webelieve,makeamajorcontributiontobuildingmoresustainablefutures.TheseincludetheWorldBusinessCouncilforSustainableDevelopment(WBCSD)andatechnicalco-operationagreementwithWWF.
Throughoutthebusiness,wehavecontinuedtoaddressawiderangeofkeysustainabledevelopmentissues.Abriefoverviewofthesefollows.
Global employment standards
Wearecommittedtoglobalstandardsofemploymentthroughoutouroperations,providingpeoplewiththeopportunitytoprogressandprosperaspartofourorganisation.Westrivetoensurehighemploymentstandardsthroughoutourbusinessandprovidewide-rangingtrainingandeducationprogrammes.Inparticular,ourprimaryfocusisalwaysthesafetyofouremployeesandcontractors.Despitemeetingourlost-timeinjuryfrequencyrate(LTIFR)targetof0.23fortheyear,this26%improvementinourinjuryperformancefromthepreviousyearwasmarredbythedeathsofthreecontractorsinseparateincidents.
InvestigationsintothecausesofeachfatalitywereusedtoreviseourSafetyRules,asetofstandardsthataddressthekeyfatalityrisksinourbusiness.TheMondiSafetyRulesalsoformpartoftheSDMS,andasummaryofthesecanbefoundonpage39.
Chief executive’s statementDavidHathorn
Weremaincommittedtoemployeeandcontractorwell-beingandourzero-harmgoal.Wearecontinuouslystrivingtoimproveoursafetyrecord.
In2007,westartedtobenchmarkemployeeattitudesagainstourglobalpeergroup,tohelpusaddressareaswherewefallshortofbestpractice.Wearecommittedtoenablingouremployeestodeveloptheircareerswithus,andrunawiderangeoftechnicalandsoftskillstraininginitiativesthroughoutouroperations.TheseincludetheMondiAcademy,whichin2007passedamajormilestonewhenitprovidedtrainingtoits2,000thMondilearner.
Forestry
Weremaincommittedtoresponsibleforestryandfocussignificanteffortonensuringthatourforestsaremanagedsustainably.
Forus,sustainableforestrymeansnotonlyconsideringthebiologicalintegrityandcommunityneedsofourforestsandecosystems,butalsothesustainabilityofourwoodsupply–whethersourcedfromourownforestsorthroughthirdparties.Wehavedevelopedourownsystemandproceduresfortheresponsibleprocurementofwood,virginfibreandbiomasstoensurethatallwoodandfibreweuseisalwayssourcedfromsustainablymanagedforests.Fullimplementationofthissystemisexpectedinmostareasduring2008.
OurplantationforestsinSouthAfricaweresuccessfullyawardedForestStewardshipCouncil(FSC)recertificationin2007.Furthermore,anadditional0.4millionhectaresofforestsonwhichweholdloggingrightsinRussiaweresuccessfullycertifiedforthefirsttimeduring2007andafurther0.7millionhectareswillbecertifiedtothisstandard.
www.mondigroup.com Sustainabilityreport2007 Mondi Group 5
Chief executive’s statementDavidHathorn
Inaddition,wearerunningfocusedcapitalinvestmentprogrammesintoexistingoperations,forexampletheprojectwhichisduetocompletethemodernisationofourpulpandpapermillatSyktyvkarinRussiaby2010.Theprojectwillhaveapositiveimpactonouremissionstoair(particularlysulphurdioxide(SO2)andnitrogenoxide(NOx)andparticulates),whileenablingustomeettheRussianmarket’sgrowingdemandforuncoatedfinepaperatthelowestpracticablecost.
Itisencouragingtoreportthatoureffortsinstrivingforoperationalexcellencehavemadefurtherimprovementsinreducingemissions.Inparticular,wehaveseenthattotalchemicaloxygendemand(COD)emissionsfortheGroupfellby21%in2007fromthe2005baselinelevel.Wehavealsoexceededourabsorbablechlorinatedorganics(AOX)emissionsreductiontargetbyreplacingallelementalchlorinebleachingprocessesinouroperations.ThishasseenourAOXlevelsfallby65%in2007fromthe2005baselineyear.
Products and brands
Paperandpackagingrepresentsomeofthemostwidelyusedtypesofproductintheworldandweremaincommittedtoimprovingconsumers’livesbyprovidinghighqualityandsustainableMondiproducts.Everystageoftheproductlifecyclehasanenvironmentalorsocialimpact,fromharvestingrawmaterialsthroughmanufacturingtoultimatedisposalandrecycling,andweareconstantlyinvestingincleanproductiontechniquesandreduceduseofmaterialstoincreasesustainability.
Investmentinproductsafety,particularlyinhumanfoodpackaging,isanimportantemphasisforourbusiness.
Communities
TheSocio-EconomicAssessmentToolbox(SEAT),developedbyAngloAmericanplc,isoneofthemanytoolsweusetoengagewiththecommunitieswithinwhichweoperate,toensurethatouractivitiesareinlinewiththeirneedsandourobjectives.Thesearein-depthassessmentsofcommunityneeds,undertakeninpartnershipwithawiderangeofstakeholders,thathelpdriveourcommunityprogrammes.AnimportantexampleofthekindofresultssuchanapproachcanhaveisourcontinuinghealthprogrammeinandaroundourSyktyvkarmillinRussia,wheretheincidenceofillnesshasalmosthalvedinunderfouryears.In2007,75,338peoplevisitedthepolyclinicwesupportinEzhva,thelocalcapital.
Corporate stakeholder engagement
WeareactivemembersoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD).Thisisacoalitionofsome200internationalcompaniesunitedbyasharedcommitmenttosustainabledevelopment.Itoffersaplatformfromwhichglobalbusinesscanworktogetherwithgovernmentsandcivilsocietyleaderstocreateanenvironmentofmutualadvantage,wherebusinesssuccessgoeshandinhandwithsuccessfulsocietiestheworldover.
WehavecontinuedourmutuallybeneficialtechnicalcooperationwithWWF.ThisandthecontinuingsuccessoftheMondiWetlandsProjectinSouthAfricaandtheHCVforestsprojectwithSilverTaigaintheKomiRepublicinRussiaaretestamenttoeffectiveandopendialoguewithWWFandothernon-governmentalorganisations(NGOs).
Mondiwasprivilegedtohavebeenoneoffiveglobalcompaniesto‘roadtest’theEcosystemsServicesReview,aproactiveecosystemmethodologyandprojectoftheWBCSD,WorldResourcesInstitute(WRI)andtheMeridianInstitute.Moredetailsonthisprojectcanbefoundonpage14.
South Africa
SouthAfricaisanationundergoingrapidtransformation.Asamajoremployerandlandownerthere,wearecommittedtohelpingthegovernmentachieveitsBroad-BasedBlackEconomicEmpowerment(BBBEE)andlandreformobjectivesandcombatskillsshortages.Wearealsoworkingtoimplementawiderangeofcommunityinitiatives,includingseveraldesignedtoimpactonthecountry’sHIV/AIDSepidemic.
Investing in youth
UndertheMondiAustriaPrivateFoundation,wehaveawardedover30specialscholarshipstointernationalstudentswishingtostudyinAustria–justoneofourschemesdesignedtoprovideeducationalopportunitiesforyoungpeople.
Thisreportprovidesareflectionoftheprogresswehavemadeinaddressingthesustainabledevelopmentagendaoverthepastyear,andsetsoutourcommitmentsgoingforward.ThereporthasbeenpublishedwithreferencetotheGlobalReportingInitiative’sG3guidelines,inlinewithourcommitmenttobeingtransparentandresponsivetoourstakeholders.
David Hathorn 31March2008
WearecontinuingtoconcentrateontheprotectionofthegloballysignificantHighConservationValue(HCV)forestsinRussia’sKomiRepublic.
Energy and climate change
Climatechangeisamajorglobalissuethataffectsallofus.Itiswidelyagreedthatgreenhousegasemissionshavetobesignificantlyreduced.Theforestproductsindustryisinapositiontomakeapositivecontributiontowardsglobaleffortstomitigateclimatechange,throughimprovingoperationalefficienciesandbysubstitutingfossilfuelswithcarbon-neutralbiofuels.Ourproductsalsostorecarbonthroughouttheiractiveservicelife,arerecyclableandprovidealesscarbon-intensivealternativetomanycompetingproducts.Todate,wehaveachieveda11%reductioninspecificCO2emissionsfromfossilfuels.Thisequatestoa6%reductionintotalCO2emissionsfromfossilfuels,fromatotalof5.19milliontonnesin2004toatotalof4.86milliontonnesin2007.
Wehavealsoreporteda3%improvementinourenergyusagepertonneofproductproducedsince2004,with41%ofourtotalenergybeingsuppliedbybiomass.WeareusingthetoolsprovidedintheKyotoProtocolof1997toassistusinmeetingourcommitments.
Environment
Strivingforoperationalexcellenceisoneofourkeystrategies,coveringallaspectsofourbusinessincludingourenvironmentalperformance.Anumberofinitiativeshavebeendeveloped,basedoninternalandexternalbenchmarking,tohelpususeourexistingassetsbetter,tomakeprocessessimplerandmoreefficientandprocurementinitiativestohelpusgainthefullbenefitofourbuyingpower.
Underlying operating profit
+33%Profit after tax
€280m
6 Mondi Group Sustainabilityreport2007
Board sustainable development committee chairman’s statementColinMatthews
Wearealsocommittedtosensitivityandopennessinourdealingswiththecommunitiesaffectedbyouractivities.Maintainingconstructivedialoguebetweenourcommunitiesandoperationsbothreducesriskandpresentsuswithopportunitiesformutuallybeneficialagreementswhichwehopewillcontributetothesuccessofourbusinessintothefuture.
Sustainabilityissuescannotbeeffectivelymanagedwithoutastronggovernancestructureinplacetomonitorandaddresscurrentchallengesandminimisebusinessriskseffectively.Oursustainabledevelopmentmanagementsystem(SDMS),developedduring2007,isstructuredaroundourkeysustainabilityrisksandoffersacoherentapproachtomanagingoursustainabilitychallenges.
TheroleoftheBoardsustainabledevelopmentcommitteeistosupporttheeffortsofMondi’sexecutivemanagementtoachievethehighsustainabilitystandardstowhichtheGroupiscommitted.
During2007,aspartofitsdevelopment,anindependentreviewoftheSDMSwasconductedtoassesswhetherMondi’ssustainabledevelopmentpolicies,standardsandperformancerequirementsprovideanappropriatebasisformeetingtherequirementsofanumberofselectedexternalstandardsandcommitments.ThedevelopmentandreviewoftheSDMSwasanimportantprocessasMondibecameanindependentGroup.Onpage13wediscussthestructureandelementsoftheSDMS.
In recent years, expectations of businesses to address the sustainability topics that result from global environmental issues have been progressively increasing. Awareness of climate change, resource depletion, pollution, levels of poverty across the globe and other issues is continuing to rise. As a result, there are strong demands and expectations for businesses to seek the most effective ways to manage their activities with the least possible impact on the global environment and a positive impact on society.
It is now acknowledged that good management of sustainability issues is an essential component of good corporate management, and businesses are expected to fulfil their roles as responsible corporate citizens.
Setting the sceneMondihasoperationsindevelopingandtransitionaleconomies,whichfacemanychallenges.Theseincludehighlevelsofunemploymentandlessthanacceptablewastemanagementandresourceefficiencypractices.
Theforestryindustryisoftenunderscrutinyoverconcernsaboutbiodiversitylosses,unethicalwoodsourcing,illegalloggingandtheinfringementofsurroundingcommunities’rights,particularlythoseofindigenouspeople.Inaddition,thepaperandpackagingindustryisassociatedwithgrowingconcernsovertheresponsibleuseofrawmaterialssuchaswaterandenergy,emissionstotheairandwater,andthedisposalofsolidwaste.
Mondi’sgoalistobethebestperformingpaperandpackaginggroupintheworld.Itisvitalthatsustainabledevelopmentremainsakeypartofourstrategyanditisessentialthatourstakeholdersunderstandourcommitment.Goodsustainabilityperformancecanleadtobetterprofitability,andreducestakeholderrisk,enablingustoeffectivelyaddressthesustainabilitychallengesofthefuture.
Thiscommitmentinvolvesmanyfactors,includingtheactivestewardshipoftheforests,land,freshwatersystemsandbiodiversityofourowned,managedorleasedoperationsaswellasallocatingsufficienthumanandfinancialresourcestoensureweuseournaturalresourcesinawiseandsustainablemanner.
Throughoutthereport,youwillfinddescriptionsofourmainactivitiesandachievementsinthespheresofsafety,forestry,climatechangeandenergy,theenvironment,corporatesocialinvestment(CSI)andmore,includingafocusonouractivitiesinSouthAfrica.Wehaveachievedsomeverypositiveresultstowardsmeetingourpubliccommitments,particularlyinrelationtocleanerproduction.
Weremaincommittedtoopen-nessandtransparencyinourcommunicationswithstakeholdersandthisreportisanimportanttoolinhelpingusmeetthisobjective.
ToensureMondi’sfuturesuccessandtoensurethatwemakeavaluablecontributiontosociety,wewillcontinuetocommunicatewithallourstakeholdergroupstoidentifyanychangesthatpresentnewrisksorcreatenewopportunitiesandsolutionsfortheworld’ssustainabilitychallengesintothefuture.Thisiscriticalifwearetoachieveourvisionofbeingthebestinourindustry.
Colin Matthews 31March2008
Our sustainability journey
Mondiiscommittedtooperatingitsbusinesssustainably.FollowingourdemergerfromAngloAmericanplcin2007,wetooktheopportunitytoreviewoursustainabilitypoliciesandpracticesacrosstheMondiGroup,toensurethattheyfullyaddressoursustainabilitychallenges.Thewayinwhichwerunourbusinesscandirectlyaffectourshareholders,ouremployees,thecommunitiesinwhichwe
operateand,moregenerally,broadersocietyandtheenvironment.Ensuringthatourbusinessissustainableisapriority,asreflectedinourSDcommitments.Aspartofourreviewin2007,werevisedourSDcommitments,spanningallkeysectorsandreachingoutto2014.Thesecanbefoundinfullinthisreportandatourwebsite:www.mondigroup.com
Reducing environmental impact
Sustainable forestry
Safety and health stewardship
Long-term social, community and stakeholder relationships
Toensurethatourforestrypracticesenableustoprovidethefutureresourcesourbusinessneedsinasustainablemanner.
Tosuccessfullymaintainthecertificationofoursustainableforestrypracticesandtracewoodandvirginfibrethroughoutthesupplychain,soenhancingourreputationasresponsibleforestrystewardsandresourcedevelopers.
WewillmeetallrequirementsofourForestryPolicyandOperatingStandards–tomanagerisksandissues,includingthoserelatingtoforeststewardship,responsiblepurchasing,woodtracing,ecosystemsandbiodiversityactionplanning,landaccessandindigenouspeople.
Asamemberofglobalsociety,tohelpmeettheworld’spaperandpackagingneedsandsimultaneouslyreducetheenvironmentalfootprintofourproducts,especiallymitigatingtheimpactofgreenhousegasemissionsontheclimate.
Tofurtherreduceourenvironmentalfootprint,supportedbyourkeyenvironmentalperformanceindicatorswhichsetspecifictargetsinareasofsignificantimpact.Goingforward,ourcurrentperformanceresultshaveformedthebasisforidentifyingareaswhichrequireenhancedfocusandthesearereflectedinourprioritiesfor2008,including:advancesintheinventoryofgreenhousegases,reductioninwastetolandfillinSouthAfricaandplansforfurtherreductionoforganicwastewaterloads.
WewillmeetallrequirementsofourClimateChangeandEnvironmentalPoliciesandOperatingStandards.Ourtargetisa15%reductionincarbon-basedenergyuseperunitofproductionbyyear-end2014,againstthe2004baseline.Wealsohaveatargetofa15%reductioningreenhousegasemissionsperunitofproductionoverthesameperiod.
Challenge Our commitmentsPriorities in 2008
Toachieveourvisionofzero-harmworkplaces,ensuringthatallpeopleworkingforMondiunderstand,rigorouslyapply,andfullycomplywithoursafetystandards.Ouroccupationalandcommunityhealthchallengeistoensurethatourhealthprogrammesrecogniseandinfluencethehealthfactorswhichimpactouremployees,contractors,theirfamiliesandourneighbouringcommunities.
Toeliminatefatalitiesfromourbusiness.Ourplanistoaddressourmostmaterialsafetyrisksin2008withafocusontransportation,inparticularmobileplantandequipment.Inaddition,wearetargetingasignificantreductionininjuriestohandsacrosstheGroupin2008.Wearealsotakingfurtherstepstoaddresstheriskofnoise-inducedhearingloss.WearecontinuingtoworkatalocalleveltofightHIV/AIDSinSouthAfrica,bybotheducatingourcommunitiesandmanagingdiseaseinfectionrates.
Wevaluelifeaboveallelseandregardoneinjuryasonetoomany.Ourcommitmenttoachievealevelofperformancebelow0.5TRCR(TotalRecordableCaseRate)andbelow0.1LTIFR(LostTimeInjuryFrequencyRate)byyear-end2010isconsideredtobeworld-class.This,togetherwithachievingourothertargetofzerofatalities,willtakeusclosertoourstatedobjectivesofzero-harmworkplacesandsafetyexcellence.
Tounderstandsocialandcommunityissuesandexpandourroleascorporatecitizens,sothatthecommunitiesinwhichweoperatevalueourcitizenship.
Tocontinuewithcommunityparticipationandengagement.WhileMondioperatesthemajorityofitscommunityengagementprogrammesatalocallevel,itfacilitatesaconsistentapproachtocommunitydevelopmentviatheSocio-EconomicAssessmentToolbox(SEAT).
Wewillbearolemodelintermsofsocialimpactandtransparencyinourindustry.Toachievethis,wewillcontinuewithcommunityengagementplansforallsignificantoperations.Wewillcontinuetomakeanti-retroviraltreatmentavailabletoemployeestocombatHIV/AIDSinSouthAfrica.Wewillalsomaintainamerit-basedandempoweringculturewhichmeetstherequirementsofourCorporateCitizenshipandGlobalEmploymentPoliciesandOperatingStandards.
Progress against Sustainable Development (SD) commitments*
GovernanceGoodcorporategovernanceandtransparencyinrelationtosustainabledevelopment.
2005 commitments Status 2008 and future targets Date Status
Developasustainabledevelopmentmanagementsystem(SDMS).
Achieved AchievecompliancewiththeintegratedSDManagementStandards.
2010 Inprogress.Complianceauditscorestobereportedforthefirsttimein2008.
Rolloutthesustainabledevelopmentmanagementsystem.
Achieved Establishanauditprogramme,settargetsandreportagainstthese.Ensurethat25%ofallsecond-partyauditsarecarriedoutaspeerreviews.
2007 Partlyachieved.Auditprogrammeforsafetyhasbeenestablishedandbaselinesafetyauditshavebeenconducted.Peerreviewswerecarriedoutasplanned.
Developanewinformationtechnology(IT)platformforsustainabledevelopmentreportingtoimproveaccuracyofdata.
Achieved DevelopanSDreportingtoolin2007,followedbyaninformationmanagementtoolin2008.
2007/2008
Inprogress.Mondireportingandinformationsystem(MORIS),whichfulfilsallaspectsofnon-financialSDreporting,hasbeendevelopedandisintheprocessofbeingimplemented.
Improvesecondpartyassuranceofsustainabledevelopmentdataandconductthirdpartyassuranceofsignificantsustainabledevelopmentinformationreported.
Achieved ConductaverificationoftheMondiSDMSin2007andfollow-upcomplianceauditsfrom2008.
2007/2008
Inprogress.Verificationcompleted.Complianceauditscorestobereportedforthefirsttimein2008.
ReportprogressagainstourSDcommitmentsinternallyandexternally.
2007 Achieved
Sustainable forestrySustainableforestrymeansconsistentlyconsideringtheproductivecapability,biologicalintegrityandcommunityneedsoftheforeststhatweown,manageandsourcematerialfrom.
2005 commitments Status 2008 and future targets Date Status
AchieveForestStewardshipCouncil(FSC)certificationof1.16millionhectaresofforestintheKomiRepublicinRussia.
Achieved CertifyallexistingMondiforestrytoFSC.Newforestrywillbesubjecttoatime-boundplanforcertification.
2007 Achieved0.4millionhectaresinRussiacertifiedduring2007andafurther0.7millionhectaresdueforcertificationin2008.Plansforfurthercertificationspanoutto2010.
Developwoodtracingsystemsandtargets.
Systemdevelopedbuttargetsnotset.
Implementtheminimumstandardforwoodandvirginfibre.
2008 Inprogress.Arolloutplanfortheprocedureforresponsibleprocurementofwood,virginfibreandbiomasshasbeendevelopedforfullimplementationin2008.
Achievetraceabilityforprocurementofwoodandvirginfibreproducts.
2008 Inprogress.TheMondiWoodInformationPlatform(WIP)hasbeendevelopedandisintheprocessofbeingimplemented.
Monitor,settargetsandreportontheprocurementofcrediblycertifiedwood,virginfibreandbiomassproducts.
2008 Inprogress.DatafromWIPwillbereportedforthefirsttimein2008.
Workwithcertificationbodiesandsmallgrowerstofindapracticalsolutiontotheircertification.
2007/2008
Inprogress.MondiisaparticipantinTheForestsDialogue,whichistacklingthisissue,amongstothers.
*Fordefinitionsoftechnicalterms,refertotheGlossary(page56).
Cleaner production and energyWeactivelystriveforrecognisedbestenvironmentalperformanceinouroperations.
2005 commitments Status 2008 and future targets Date Status
ISO14001atallmaterialoperations. Achieved Maintainindependentverificationoftheeffectivenessoftheenvironmentalmanagementsystemsandobjectivesatsignificantoperations.
2007 AchievedAllenvironmentallymaterialmills,exceptnewacquisitionStambolijski,areISO14001certified.
DevelopaGroupenergystrategy. Achieved AllEuropeanmillslocatedintheEuropeanUniontoachieveBAT-compliantperformance.
2007 Achieved
Reducespecificenergyusageandfossilcarbondioxide(CO2)emissionsby15%by2014againsta2004baseline.
Ongoing 2014 Inprogress.A3%reductioninspecificenergyusageandan11%decreaseinspecificCO2emissionsfromfossilfuelshavebeenachievedtodate.
Reductionofchemicaloxygendemand(COD)emissionsby75%attheRichardsBaymillinSouthAfrica.
TargethasbeenincorporatedintothetotalGroupCODreductiontarget.
Reducethetotaleffluentload(measuredasCOD)intoreceivingwatersby30%againsta2005baseline.
2010 Inprogress.A21%reductionintotalCODemissionshasbeenachievedtodate.
Reduceadsorbablechlorinatedorganics(AOX)emissionsfromtheSyktyvkarmillinRussiaby70%.
TargethasbeenincorporatedintothetotalGroupAOXreductiontarget.
ReducethetotalAOXemissionlevelsby30%againsta2005baseline.
2010 AchievedA65%reductionintotalAOXemissionlevelshasbeenachievedtodate.
Reductionofsulphurdioxide(SO2)emissionsby66%fromtheMerebankmillinSouthAfrica.
Achieved
ReducetheTotalReducedSulphides(TRS)emissionstotheatmosphereby65%againsta2005baseline.
2010 Inprogress.A60%reductionintotalTRSemissionlevelshasbeenachievedtodate.
Reducethetotalwastetolandfillby20%againsta2005baseline.
2010 AchievedA20%reductionintotalwastetolandfillhasbeenachievedtodate.
Reportannuallythenumberofoperationsthatcompletedlandfillassessmentstoreviewtheimpactoftheirpastandpresentactivities.
2007 Achieved AlllandfilloperationsweresubjecttoanindependentauditwhichformedpartoftheAngloAmericanplcdemerger.Sincethen,adetailedlandfillassessmentprogrammehasbeeninitiated.ThefirstlandfillassessmentauditwascarriedoutattheRichardsBaymill.
Ceasethedisposalofhazardouswasteintolandfills.
2009 Inprogress.AlternativesolutionsforhazardouswasteatMerebankandRichardsBayarebeinginvestigated.
Monitorandreportfreshwaterusageofmaterialoperationsinwater-stressedregions(IsraelandSouthAfrica).
Ongoing AchievedWaterusagedataisprovidedinthisreportonpage30.
Furtherdevelopacultureofzeroprocessincidentsandcontinuetoreportlossesofcontainmentthatcauseorhavethepotentialtocauseharm.
Ongoing AchievedThenumberoflevelIincidentsisreportedinternally.ThenumberoflevelIIandlevelIIIincidentsisreportedonpage28.
Monitorandreportthepercentageofrecycledfibreusedinthefinalproduct(asrawmaterialandastonnessold).
Ongoing Partlyachieved.Theuseofrecycledfibredataisreportedonpage35.RecycledfibreasarawmaterialhasbeenincorporatedintotheMORISreportingrequirements.
DevelopaprogrammeofSDprojectswithcustomers.
2007 AchievedAnumberofspecifictargetedprogrammeswereidentifiedandimplementationstartedin2007,particularlyintheareaofenvironmentalfootprintofourbusinesspaperproducts.
Cleaner production and energyWeactivelystriveforrecognisedbestenvironmentalperformanceinouroperations.
2005 commitments Status 2008 and future targets Date Status
ISO14001atallmaterialoperations. Achieved Maintainindependentverificationoftheeffectivenessoftheenvironmentalmanagementsystemsandobjectivesatsignificantoperations.
2007 AchievedAllenvironmentallymaterialmills,exceptnewacquisitionStambolijski,areISO14001certified.
DevelopaGroupenergystrategy. Achieved AllEuropeanmillslocatedintheEuropeanUniontoachieveBAT-compliantperformance.
2007 Achieved
Reducespecificenergyusageandfossilcarbondioxide(CO2)emissionsby15%by2014againsta2004baseline.
Ongoing 2014 Inprogress.A3%reductioninspecificenergyusageandan11%decreaseinspecificCO2emissionsfromfossilfuelshavebeenachievedtodate.
Reductionofchemicaloxygendemand(COD)emissionsby75%attheRichardsBaymillinSouthAfrica.
TargethasbeenincorporatedintothetotalGroupCODreductiontarget.
Reducethetotaleffluentload(measuredasCOD)intoreceivingwatersby30%againsta2005baseline.
2010 Inprogress.A21%reductionintotalCODemissionshasbeenachievedtodate.
Reduceadsorbablechlorinatedorganics(AOX)emissionsfromtheSyktyvkarmillinRussiaby70%.
TargethasbeenincorporatedintothetotalGroupAOXreductiontarget.
ReducethetotalAOXemissionlevelsby30%againsta2005baseline.
2010 AchievedA65%reductionintotalAOXemissionlevelshasbeenachievedtodate.
Reductionofsulphurdioxide(SO2)emissionsby66%fromtheMerebankmillinSouthAfrica.
Achieved
ReducetheTotalReducedSulphides(TRS)emissionstotheatmosphereby65%againsta2005baseline.
2010 Inprogress.A60%reductionintotalTRSemissionlevelshasbeenachievedtodate.
Reducethetotalwastetolandfillby20%againsta2005baseline.
2010 AchievedA20%reductionintotalwastetolandfillhasbeenachievedtodate.
Reportannuallythenumberofoperationsthatcompletedlandfillassessmentstoreviewtheimpactoftheirpastandpresentactivities.
2007 Achieved AlllandfilloperationsweresubjecttoanindependentauditwhichformedpartoftheAngloAmericanplcdemerger.Sincethen,adetailedlandfillassessmentprogrammehasbeeninitiated.ThefirstlandfillassessmentauditwascarriedoutattheRichardsBaymill.
Ceasethedisposalofhazardouswasteintolandfills.
2009 Inprogress.AlternativesolutionsforhazardouswasteatMerebankandRichardsBayarebeinginvestigated.
Monitorandreportfreshwaterusageofmaterialoperationsinwater-stressedregions(IsraelandSouthAfrica).
Ongoing AchievedWaterusagedataisprovidedinthisreportonpage30.
Furtherdevelopacultureofzeroprocessincidentsandcontinuetoreportlossesofcontainmentthatcauseorhavethepotentialtocauseharm.
Ongoing AchievedThenumberoflevelIincidentsisreportedinternally.ThenumberoflevelIIandlevelIIIincidentsisreportedonpage28.
Monitorandreportthepercentageofrecycledfibreusedinthefinalproduct(asrawmaterialandastonnessold).
Ongoing Partlyachieved.Theuseofrecycledfibredataisreportedonpage35.RecycledfibreasarawmaterialhasbeenincorporatedintotheMORISreportingrequirements.
DevelopaprogrammeofSDprojectswithcustomers.
2007 AchievedAnumberofspecifictargetedprogrammeswereidentifiedandimplementationstartedin2007,particularlyintheareaofenvironmentalfootprintofourbusinesspaperproducts.
Social – Enhancing employee well-being
Employee culture Implementingfairlabourpracticesatourworkplaces,treatingemployeesatalllevelswithrespectandconsideration,andensuringcompliancewithapplicablelawsandindustrystandards.
2005 commitments Status 2008 and future targets Date Status
Developaglobaldiversitystrategy. Ongoing.AdiversitystrategydevelopedfortheSouthAfricanoperations.
Monitorandreportgenderandnationaldiversityatmanagementlevel.Establishaworkforcemonitoringsystem.
2007 Partlyachieved.GenderandnationaldiversityhavebeenincorporatedintotheMORISreportingrequirements.
ConductaGroup-wideclimateandculturesurvey.
Completed Encourageemployeestotakepartinbusinessunitorregionalemployeesurveys.
Ongoing AchievedDuring2007,employeesurveyswereexpandedintopeerreviewsurveystoenablebenchmarkingwithothercompanies.
Safety and fatalities Protectingthehealth,safetyandsecurityofouremployeesandthosewhoworkonourbehalfisacorevalueforMondi.Webelieveinzero-harmworkplaces,whereallincidentsarepreventable.
Zerofatalities. Notachieved. Preventallwork-relatedfatalinjuries.
Ongoing Notachieved.Wehadthreecontractorfatalitiesduring2007.
AchieveaLostTimeInjuryFrequencyRate(LTIFR)oflessthan0.4.
Achieved ReducetheLTIFRforemployeesandcontractorsby70%to0.1in2010againstthe2006baseline.Thetargetfor2008isanLTIFRof0.19(a17%reductionfrom2006).
2007/2008
Inprogress.Our2007LTIFRtargetof0.23wasachieved.
MeetAngloAmerican’stargetof75%thirdpartyhealthandsafetysystemscertificationbytheendof2005.
Achieved Reportsicknessabsenceratesinrelationtotherelevantnationalaverageatalloperations.
2007 Partlyachieved.SicknessandabsencedatahasbeenincorporatedintotheMORISreportingrequirements.
ImplementOHSAS18001at39%ofMondioperationsin2005.
Achieved
Social – Caring for local communities
Beingagoodcorporatecitizenmeansmakingarealandlastingcontributiontothecommunitiesinwhichweoperate.
2005 commitments Status 2008 and future targets Date Status
Conductsocio-economicassessments(SEAT)attheŠtĕtíandRužomberokmills.
Achieved Allmaterialoperationstocontinuetohaveacommunityengagementplaninplace,supportedbyaSEATprocessonathree-yearlycycle.
Ongoing AchievedArollingplanforSEATassessmentshasbeencommissioned.
Developlocaleconomicdevelopmentguidelines.
IntegratedintotheSEATprocess.
Monitorandreportcomplaintsfromthepublic.
Ongoing AchievedThenumberoflevelIcomplaintsisreportedinternally.ThenumberoflevelIIandlevelIIIcomplaintsisreportedonpage28.
WerecognisethehumantragedycausedbytheHIV/AIDSepidemic.WehaveaclearprogrammeforaddressingAIDSintheworkplace.
Extendvoluntarycounsellingandtesting(VCT)toallsitesinSouthAfrica.
AchievedAllsitesinSouthAfricacovered.
Continuetomakeanti-retroviraltreatmentavailabletoallemployeesinSouthAfrica.ProvideresourcesfortrainingandawarenesscampaignsandcontinuetobuildpartnershipswithlocalclinicsandNGOs.
Ongoing AchievedHIV/AIDSinformationcanbefoundonpages51and55ofthisreport.
ThewoodyardatRužomberokinSlovakiafeedsoneofcentralEurope’slargestpulpandpapermillswithvirginfibrefromsustainablymanagedforests.
Wood yard in Ružomberok, Slovakia.
GovernanceManagingthebusinessforasustainablefuture
We have management processes at Mondi to ensure that we continuously improve both our management of sustainability issues and our sustainability performance. During 2007, we approved a new SD policy and completed the development of our sustainable development management system (SDMS), an SD management frame-work that provides the sector policies, governance structures, commitments and reporting systems we need to meet our SD commitments.
Accountability structureFollowingourdemergerfromAngloAmericanplcinJuly2007,weundertookareviewofourgovernancestructure.WenowhaveseverallevelsofaccountabilityforsustainabilityviaourBoardSDcommittee,theexecutivecommittee,theMondiSDpanelandthreeglobalspecialistnetworkgroups.
TheSDcommitteeischairedbyanindependentnon-executivedirector,ColinMatthews,anditsmembersincludeSirJohnParker,jointchairmanoftheMondiGroup,andourchiefexecutive,DavidHathorn.
TheSDcommitteeprovidesassurancetotheboardsofMondiLimitedandMondiplcthattheappropriatesystemsandpracticesareinplacetodealeffectivelywiththesustainabilityrisksandopportunitiesthatweface.Insodoing,ithasresponsibilityforensuringthattheGroup’ssustainabledevelopmentstrategy,policiesandcommitmentsremainrelevantandinlinewithglobalbestpractice.
TheSDcommitteemeetssixtimesayear.Keyagendaitemsduring2007includedaspecialfocusoncontractormanagement,theapprovalofthenewSDpolicyandsupportingmanagementsystem,approvaloftheGroup’scommitmentsandanemphasisoncurrentandemergingforestryissues.
Theexecutivecommittee,chairedbyDavidHathorn,hascollectiveexecutiveresponsibilityforsustainabilityperformance.Withintheexecutivecommittee,theGroupHRandlegaldirectorhasspecificresponsibilityforSDpolicy,adviceandsupport.
TheMondiSDpanel,comprisedofSDexpertsfromthroughouttheGroupandchairedbytheGroupHRandlegaldirector,meetsfourtimesayearandisresponsibleforadvisingandsupportingtheexecutivecommitteeandoperationsmanagers.Thepanelpromotessustainabilityissues,monitorsthechangingnatureoftheconcernsandrequirementsofstakeholders,measuresoursustainabilityperformanceandidentifiespriorityissues.
Wealsohavethreeglobalspecialistnetworkgroups–thesafety,healthandoccupationalhygienenetwork,theenvironmentalnetworkandtheenergynetwork.ThesecomprisespecialistsfromthroughouttheGroupwhoprovideexpertiseandknowledgefromalargerpoolandcanacceleratethepaceofchangeontopicsofGroup-widesignificance.
Sustainable Development Management System
During2007,Mondidevelopeditssustainabledevelopmentmanagementsystem(SDMS),acomprehensivemechanismwhichhelpsusensurestronggovernance.
TheSDMSisownedataGrouplevelandisapplicabletoallsites,operationsandactivitiesthroughouttheworld.Theseinclude:
facilitiesandactivitiesweownandoperate(includingthosewhereweownamajorityshare);
newdevelopments,mergers,acquisitionsandbusinessesweplantodivest;
activitiesundertakenbycontractorsonMondisitesorunderourmanagement.
TheapplicabilityoftheSDMSvariesacrosstheMondiGroupanddependsonthenatureandlevelofmaterialriskofeachindividualoperation.
TheSDMScomprisesthefollowingelements:
theSDPolicy,whichoutlinesouroverallstrategyandkeyareasoffocus,andissupportedbysevensectorpolicies(thesecanbefoundatwww.mondigroup.com);
tenmanagementstandards,whichprovideboththegovernancerequirementstowhichwearecommittedandthelinktoourcorporategovernancestructures;
tenoperatingstandards,developedforeachofourpolicyareas,whichdefinetheminimumrequirementsforgoodmanagementandcontrolatoperationallevel.TheyalsoprovideguidanceonthecorporateexpectationsandimplementationofeachelementoftheSDMSatallthreelevelsofthebusiness–theGroup,thedivisionsandtheoperations;
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asetofdetailedandcom-prehensiveperformancerequirements,whichgiveouroperationspersonneladetailedandmandatorysetofpracticesforimplementingthestandards;
asetofspecific,quantifiableshort,mediumandlong-termSDcommitments.
Weareprogressingwiththeaudittoolthatisbasedonouroperatingstandardsandreflectsthedetailsdescribedinourperformancerequirements.TheaudittoolwillassistusinachievingourcommitmentoffullcompliancewiththeSDMSthroughouttheGroupby2010.
During2007,wealsodevelopedandstartedtoimplementoursustainabledevelopmentreportingandinformationsystem,MORIS.WewillalignMORISdefinitionstotheGroup’scommitmentsandanewsetofminimumreportingguidelineswillbeissuedduring2008.ThesewillreplacetheAngloAmericanplcreportingguidelines,andwilldefinethescopeandfrequencyofreportingandtheperformancedataweshouldreport.Theseinternalreportingproceduresandpracticeswillgiveusthebasisforourfutureannualsustainabilityreports.
EnvironmentalResourcesManagementCertificationandVerificationServices(ERMCVS)conductedanindependentreviewin2007ofourSDMSandconcludedthatoursustainabledevelopmentpolicies,standardsandperformancerequirementsprovidedanappropriatebasisformeetingtherequirementsofthefollowingselectedexternalstandardsandcommitments:
ISO14001:SpecificationforEnvironmentalManagementSystem;
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12 Mondi Group Sustainabilityreport2007
OHSAS18001:OccupationalHealthandSafetyManagementSystem;
UNEPInternationalDeclarationonCleanerProduction;
BS8900:2006GuidanceforManagingSustainableDevelopment;
SA8000:2001SocialAccountability;
UnitedNationsUniversalDeclarationofHumanRights;
OECDGuidelinesforMultinationalEnterprises;
UnitedNationsGlobalCompact;
PrinciplesandCriteriaforForestStewardship;
WorldBusinessCouncilforSustainableDevelopmentSustainableForestProductsIndustryWorkingGroup;
TheForestsDialogue(TFD);
WBCSD/WRIGreenhouseGasProtocol.
Public commitments
WehavealsodevelopedasetofpubliccommitmentsaspartoftheSDMS.TheseweredevelopedbyourSDpanelandapprovedbytheSDcommittee,andtakeintoaccountpubliccommitmentsandsignificantrisks,aswellaslegalandotherrequirementsrelatingtosustainabilityissues.Theyspanallsectorsofoursustainabledevelopmentagendaanddemonstrateourcommitmenttoreducingourfootprintfurther.WemonitorprogressatourquarterlySDpanelmeetingstoensurethatthecommitmentsaremetbythetargeteddate.Youcanfindourprogressagainstthesecommitmentsonpages8to10.
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External corporate stakeholder engagement Informing, reporting, engaging
Ouractiveprogrammeoflisteningtoandengagingwithourexternalstakeholdersisvitaltoensurethatweremainresponsivetotheirconcerns.Anumberofourkeystakeholderscommentthatweare‘willingtoengage’.Weappreciatethedialoguewiththemandwillcontinuetobuildrelationshipswithexternalstakeholderssuchasshareholders,customers,governments,non-governmentalorganisations(NGOs)andthemedia.
Membership associations
Wetakepartinawiderangeofforumsatlocal,regionalandinternationallevels.Thisparticipationbyourseniormanagementinlocalandinternationalbusiness,engineering,industry-relatedandotherorganisationsgivesusanimportantplatformforlocal,regionalandinternationalnetworking,ensuringthatweareinformedofcurrentorproposeddevelopmentsintheregulatoryandbusinessenvironment.
Atagloballevel,Mondiisanactivememberand/orparticipantofthefollowingorganisations:
TheWorldBusinessCouncilforSustainableDevelopment(WBCSD):acoalitionofsome200internationalcompaniesunitedbyasharedcommitmenttosustainabledevelopment;
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“Ourgovernancestructureisdesignedtomaintainstrongcorporategovernanceprinciples,policiesandpracticesinlinewithourobjectivetobeleadersinourindustry.TheGroup’soverallapproachtosustainability,therefore,continuestoformanintegralpartofourstrategicandoperationalmanagement.” Sir John Parker, joint chairman of the Mondi Group and member of the Board SD committee
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14 Mondi Group Sustainabilityreport2007
Case study Mondi road tests new toolWorldResourcesInstitute(WRI),withthesupportoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)andTheMeridianInstitute(MI),developedtheEcosystemsServicesReview(ESR),atooltoproactivelyidentifyrisksandopportunitiesinacompany’sdependenceonecosystems.MondiwasoneoffiveglobalcompaniestoroadtesttheESRonasectionofitsplantationforestsinSouthAfricaduring2007.Thefindings,whichwillbepublishedduring2008,willbeusedtofurtherdeveloptheconceptofbusinessandecosystems.
TheWBCSD’sSustainableForestProductsIndustryWorkingGroup(SFPIWG):aworkinggroupinvolvingsome26leadingglobalforestproductscompanies,whichaimstotacklesustainabilityissuesintheglobalforestindustry;
HighConservationValue(HCV)Network:aglobalnetworkoforganisationsandindividualssupportingtheHCVapproachthatpromotesapracticalconservationandconsistentapproachtoHCVareas.ThenetworkhasthesupportofawiderangeofNGOs,companies,andresearchinstitutions.HCVisakeyaspectofourforestryprogrammeinRussiaandSouthAfrica.MondiparticipatesasamemberoftheHCVnetworksteeringgroup;and
TheForestsDialogue(TFD):aglobalmulti-stakeholderforumconsistingofstakeholdersfromdifferentregions,committedtotheconservationandsustainableuseofforests.TFDprovidesaplatformfortheforestryindustrytoengagesocietyonsignificantissuesrelatedtotheindustry.ParticipantsincludeglobalforestrycompaniesandglobalNGOssuchasWWF,WorldResourcesInstitute(WRI),ConservationInternational(CI),Greenpeace,TheNatureConservancy(TNC),theWorldConservationUnion(IUCN)andtheForestPeoplesProgramme.
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OnaEuropeanlevel,wearealsoamemberoftheConfederationofEuropeanPaperIndustries(CEPI),whichrepresentstheinterestsofthecontinent-widepulpandpaperindustrytoEuropeaninstitutions.
Wearealsomembersoftherelevantindustryassociationsinthecountrieswhereweoperate,enablingustoestablishandmaintainconstructiverelationshipswithgovernments,especiallyinSouthAfricaandRussia.
Inclusion in sustainability indices
SincewebecameanindependentbusinessinJuly2007,MondihasbeenawardedmembershipofboththeDowJonesSustainabilityWorldIndex(DJSIWorld)andthePan-EuropeanDowJonesSTOXXSustainabilityIndex(DJSISTOXX).Wearetheonlycompanyfromtheforestryandpapersectorthatisrepresentedinboththeseindices.
TheDowJonesSustainabilityIndicesfollowabest-in-classapproach,includingthesustainabilityleadersfromeachindustryonaglobalandregionallevel.Theyreviewthebusinessestheylistannually,basedonanintegratedassessmentofpubliclyavailableinformationoncorporateeconomic,environmentalandsocialperformancewithastrongfocusonlong-termshareholdervalue.Wewillcontinuetofocusoureffortsonaddressingareasforimprovementidentifiedduringtheassessment.
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International NGOs
Since2004,WWFhasbeenusingpubliclyavailableinformationtoassessthestandardsofcorporateresponsibilityreportingbypulpandpapercompaniesoperatinginEurope.Initsreport‘CorporateResponsibilityReportinginthePulpandPaperIndustry2007’,Mondisharedthirdplacewithfourofourindustrypeers,havingreportedonover75%ofWWF’scorporatereportingrequirementsandcriteria.
Inaddition,MondihasmaintaineditstechnicalcooperationagreementwithWWFsince2005andduring2007thefocuswasontheMondiWetlandsProjectinSouthAfrica,aprojectwhichpromotessustainablebestpracticeforplantationforestrydesign.InRussia,MondicontinuedtocooperatewithlocalNGOSilverTaigaandWWFonthedefinitionandidentificationofHCVforestryareasintheKomiRepublic.
OurparticipationintheWBCSDEcosystemsServicesReviewprojectinvolvedourcloseco-operationwiththeWorldResourcesInstituteandtheMeridianInstituteduring2007.Theimportanceofecosystemsforbiodiversity,services,businessandlivelihoodsissettoattractsignificantglobalattentionoverthenextfewyearsandwewillcontinuetomakeourservicesavailableforthenextstageoftheprocess.
Inaddition,wequalifiedforinclusiononthe2007SociallyResponsibleInvestment(SRI)IndexoftheJohannesburgStockExchange(JSE).Thisassessestheenvironmental,socialandeconomicsustainabilitypracticesoflistedcompanies,tomeettheneedsofthosestakeholderswhoareinterestedinsociallyresponsiblebehaviourandinvestment.
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Case study Protecting pristine forest AsweworktoensuretheprotectionofHighConservationValue(HCV)forestinRussia’sKomiRepublic,oneofthegreatestchallengesisidentifyingthosepristineareas,withahighecologicalvalue,inwhichloggingshouldnottakeplace.
Thisisparticularlychallenging,becausesuchprotectionisnotenshrinedinlegislation.Inaddition,itisnecessarytobalanceappropriatelytheinterestsofarangeofstakeholders.
Oursolutionistoworkco-operativelywithdifferentinterestgroups,includingsuchstakeholdersasthelocalpopulationandadministration,othercompanies,NGOsandthegovernmentandStateForestServiceoftheKomiRepublic.
Todate,some23%oftheRepublic’s21millionhectaresofproductiveforesthasbeenidentifiedaspotentially‘pristine’.
MondiandlocalNGOSilverTaigahavealsocreatedtogetheraninventoryofover3.4millionhectaresofpristineforest,aswellasgainingsignificantexperienceinmanagingHCVforestsduringtheFSCcertificationprocess.Thisishelpingusensurethattheforestryactivitiesweundertakeareenvironmentallyandsociallyresponsible.Lookingahead,ourplanfor2008includesreachingagreementonnewareasandopeningdialogueonothers.
National and local NGOs
Wehaveformedproductivepartnershipswith,amongstothers,nationalNGOssuchasSilverTaigainRussia(HCVforestsprojectinRussia)andtheWildlifeandEnvironmentSocietyofSouthAfrica(MondiWetlandsProject).Thesepartnershipshaveresultedinpositivesocio-environmentalbenefits.Inaddition,wecontinuetocooperatewithsmaller,localNGOsonarangeofprojects,includingourworkinSouthAfricaontheprotectionandconservationofrareandendangeredspeciessuchastheWattledCraneandOribi.
Scope and assuranceOur approach to sustainability reporting
Thisreportreviewsoureconomic,socialandenvironmentalperformancefortheperiodbetween1Januaryand31December2007andfollowsonfromtheSustainabilityprogressreport2005–2006.ThereporthasbeenpublishedusingtheGlobalReportingInitiative(GRI)G3guidelinesasareferenceinsofarastheyareapplicabletoourbusinessandourlevelofreportingmaturity.AlimitedreviewofourstatusagainsttheGRIG3reportingcriteriaisprovidedonpages57and58,whilstacompletereviewofourstatusagainsttheseguidelinescanbefoundatwww.mondigroup.com.
Wehavecompiledthereport’scontentbothonthebasisofourinternalriskassessmentprocessesandbyattemptingtoaddressthemainsustainabilityconcernsthatexternalstakeholdershaveraised.Wereceiveandmonitorfeedbackandviewsfromawidevarietyofopinionformers,employees,regionalandnationalgovernments,communitymembers,NGOs,customers,investorsandsociallyresponsibleinvestmentanalysts.
Intermsofsubjectscope,thereportincludesacross-sectionofthesocial,economicandenvironmentalissuesthataremostmaterialtoouractivities.
Wehavestriventoremainobjective,toidentifyanddiscusspotentialissuesandchallengesinabalancedwayandtoreportopenlyandhonestly.
Scope and boundaries of our report
Thereportcoversalltheactivitiesoftheglobalproductionoperationsinwhichweholdaminimum50%shareholdingoroverwhichwehaveoperationalcontrol.
Theexceptionsare:
Europapier(ourpaperdistributioncompany)inwhichwehavea90%shareholding,oursalesofficesandothersmalleradministrativefunctionsarenotincludedinthescopeofthisreport;and
MondiShandukaNewsprint,theSouthAfricannewsprintcompany,inwhichwehavea50%shareholdingbutwhichisindependentlymanaged.MondiShandukaNewsprintisincludedinthescopeofthisreportsinceithasadoptedMondi’sreportingprocessesandprocedures.WedonotreportonourUK-basedindependentlymanagedjoint-venturecompany,AylesfordNewsprintLimited.
Incaseswhereourshareholdingislessthan100%,wereportthedataona100%basis.
Allfinancialdataisreportedineuros(€)unlessthedataspecificallyrelatestoSouthAfrica,inwhichcase,financialdataisreportedinSouthAfricanrand(R).
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ThereportincludesdataonourStambolijskimillforthefirsttime,butdoesnotincludedataforourmostrecentacquisitions.
Thefollowingexceptionstotheaboveapplytothedatawereport:
Safetydataincludesdataforbothouremployeesandcontractors;
HIV/AIDSdataisreportedforallourmanagedSouthAfricanoperationsandMondiShandukaNewsprint,includingadministrativefunctions.ThisisinlinewiththeHIVandAIDSriskinSouthAfrica;
Weonlyreportenvironmentaldataforourenvironmentallysignificantproductionoperations(youcanfindalistoftheseinthedatatablesonpage54).In2007,wereportedforthefirsttimeonStambolijskiandonMondiShandukaNewsprint.Furthermore,thesetwooperationshavebeenincludedinourbaselinedatasothatweareabletomakevalidcomparisonsinouryear-to-yeardata;
Fromtimetotimewehavereportedonoperation-orregional-specificdata.Intheseinstances,adescriptionofoperationsorregionscoveredhasbeenprovided.
Data collection and internal reporting
In2007,allinformationanddatawerecollectedbytheindividualoperations,andreportedonamonthlyorquarterlybasistotheMondiGroupusingtheAngloAmericanplcdatabase,reportingguidelinesanddefinitions.Thesereportsidentifydeviancesorexceptionsinperformance,progressagainsttheGroup’ssustainabilitycommitments,informationonanymajorincidentsandinstancesofnon-compliance.
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Individualoperationscollectandprocessthedatausingthebestavailablenationalorinternationalmethodologiesandtechniquesformeasurement,calculationandanalysis.Eachoperationisresponsiblefortheaccuracyandconsistencyofitsdata.Althoughwehavetakeneveryefforttoensuretheaccuracyofthedata,werecognisethatsomemaybesubjecttouncertaintyarisingfromdifferentinterpretationsoftheinternalreportingguidelinesandpossiblehumanerrorinrecordingandsubmittingthedata.Thisreflectsthevaryingdegreesofreportingsophisticationacrossthescopeofoperationsandsustainabilitytopics.
Insomeinstances,theabilitytocomparedatahasbeenaffectedbyrefinementsindatadefinitionsandimprovementsindatacollectionsystems.Whereissueshavebeendetectedinourhistoricaldata,wehaverestatedthisdata.Wehavealsoindicatedinstanceswheredatadeviatesfromourdefinitionsorwheredatahaschangedintheappropriatesectionsofthisreport.
During2007wedevelopedournewsustainabledevelopmentreportingandinformationsystem,MORIS.Tofacilitatecomparabilitywithpreviousyears’datainthefuture,wewillalignthenewdefinitionsfromMORIStotheGroup’sstandingcommitments.Theywillalsoprovidethebasisforourannual,externalsustainabilityreportsgoingforward.
Independent performance monitoring
Inadditiontotheexternalassuranceassociatedwithoursustainabilityreport,externalauditsarealsoundertakenatourenvironmentallysignificantproductionoperationsonaregularbasisaspartofISO14001,ForestryStewardshipCouncil(FSC),FSCChainofCustody,ProgrammefortheEndorsementofForestryCertificationschemes(PEFC)andPEFCChainofCustodycertifications.Currently,alltheseoperations(excepttherecentlyacquiredStambolijskimillinBulgaria)areeitherISO14001certifiedand/orhaveFSCorPEFCChainofCustodycertificationinplace.Furthermore,asignificantnumberofouroperationsareOHSAS18001andISO9001certified.
Maintainingcertificationtotheabove-mentionedstandardsrequiresregularauditsonoursafety,occupationalhealth,environmentalandqualitymanagementsystemsbyexternalassuranceproviders.
External assurance
Asoutlinedintheassurancestatementonpages52and53,aselectedsampleoftheperformancedatainthisreporthasbeenindependentlyassuredbyEnvironmentalResourcesManagementLimited(ERM).ERM’sscopeofassuranceincludesanassessmentastowhetherwehaveappropriatelyreportedtheselectedperformancedata,includingareviewoftheunderlyingdatacollectionandaggregationandvalidationofthesystemsandprocessesinplace.
Inaddition,theyalsoconductedareviewtoassessthestatusofalignmentofourprocedurefortheresponsibleprocurementofwood,virginfibreandbiomasstotheFSCStandardforCompanyEvaluationofFSCControlledWood(FSC-STD-40-005(Version2-1)EN)(October2006),referredtointhisreportastheFSCControlledWoodStandard.Theimplementationstatusofourprocedurefortheresponsibleprocurementofwood,virginfibreandbiomassandourMondiWoodInformationPlatform(WIP)wasalsoreviewed.
Recommendations for improvement
IntheirassuranceofourSustainabilityprogressreport2005–2006(publishedinlate2007)andthisreport,ERMmadeanumberofhigh-levelfindings–allofwhichwehaveacceptedandareactingupon.
Theseweretheneedto:
ensurethatfutureMondisustainabilityreportsaddresstheSDimpactsandopportunitiesconsistentlyacrossallourmanagedoperations;
reviewthecurrentapproachtoselectingandupdatingtheconversionfactorsforcalculatingCO2emissionsandenergyuseandalignittothenewMondiSDmanagementobjectives;
developenhancedMondiGroup-widetraining,guidanceandsupportforouroperationsduring2008toensureeffectiveimplementationofourreportingandinformationsystems;
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furtherrefineournewreportingandinformationsystemtoensurethatitfullymeetsourfuturemanagementinformationrequirementsandexternalreportingcommitments,particularlyintheareasofreportinghumanresourcesinformationandhumanrights;and
updateourprocedureforresponsibleprocurementofwood,virginfibreandbiomassin2008,inlinewiththeFSCControlledWoodStandardversion2-1.
Wearealreadyactiveinimplementingalltheserecommendations,andwillreportontheprogresswehavemadeinournextsustainabilityreport.
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www.mondigroup.com Sustainabilityreport2007 Mondi Group 17
Economic contributionBringingwealthandemploymenttolocaleconomies
Business and marketsTheGroupisprincipallyinvolvedinthemanufactureofpackagingpaper,convertedpackagingproductsanduncoatedfinepaper(UFP).
Mondiisfullyintegratedacrossthepaperandpackagingproductionprocess,fromthegrowingofwoodandthemanufactureofpulpandpaper,totheconversionofpackagingpapersintocorrugatedboxesandindustrialbags.Italsohasagrowingspecialitypackagingbusinessfocusedontheproductionofreleaseliner,extrusioncoatingandconsumerflexiblesproducts.
TheGrouphasaparticularlystrongpresenceinwesternandemergingEurope,RussiaandSouthAfrica,whereitoccupiesthenumberoneortwomarketpositionsinalmostallitschosenpackagingandUFPproductsegments.
Acquisitions and disposals
TheGroupcontinuedtoexpandthroughorganicgrowthandnotableacquisitionsin2007includeda53.6%majoritystakeinTireKutsan,Turkey’sleadingcorrugatedpackagingcompany,a100%stakeintheAustrian-basedUnterlandflexiblepackagingbusinessand100%stakeintheLencoacquisitioninSouthAfrica,amainlyrigidplasticsbusiness.Disposalsduring2007includeda5.3%stakeinMondiPackagingPaperŚwiecieS.A.andthedisposalofvariouscorrugatedconvertingoperationsaspartofarestructuringdrive.
Financial review€million 2007 2006
Groupturnover 6,269 5,751
EBITDA 870 726
Underlyingoperatingprofit 502 377
Cashgeneratedfromoperations 957 657
Capitalexpenditure 406 460
Investmentinforestryassets 41 50
Netoperatingassets 5,452 5,171
TheGroupdeliveredasubstantiallyimprovedperformancein2007,withunderlyingoperatingprofitup33%to€502million(2006:€377million),producinganunderlyingoperatingmarginof8%(2006:6.6%).Profitbeforetaxandspecialitemswasup33%to€405million(2006:€305million),underlyingearningspersharerose74%to46.9eurocents(2006:27.0eurocents)andcashflowfromoperationswasup46%to€957million(2006:€657million).
Alldivisionssawimprovedprofitabilityasaresultofan
improvedtradingenvironment,whichledtobetterpricing,andthebenefitsofoperationalefficiencies,inparticular€167millionofcostsavings.Thesepositivedevelopmentswerepartiallyoffsetbysignificantincreasesinrawmaterials,particularlythecostsofwood,pulpandrecycledfibre.
Mondiendedtheyearwithastrongfinancialposition:theGroup’snetdebtfinancechargewascovered9.6timesbyEBITDAandyear-endgearingwas45.2%oftotalequity.
€459m
€386m
€377m
€502m
2004
2005
2006
2007
Underlying operating profit up 33%
Group revenue up 9% at €6,269million
€5,385m
€5,364m
€5,751m
€6,269m
2004
2005
2006
2007
EBITDA up 20% at €870million
€779m
€718m
€726m
€870m
2004
2005
2006
2007
€4,929m
€5,169m
€5,171m
€5,452m
2004
2005
2006
2007
Net operating assets
Underlying Grouprevenue operatingprofit
€million 2007 2006 2007 2006
MondiPackaging 3,590 3,167 312 226
CorrugatedBusiness 1,644 1,497 158 120
BagBusiness 1,265 1,162 127 97
FlexibleBusiness 786 607 27 9
Inter-segmenteliminations (105) (99) – –
MondiBusinessPaper 1,898 1,889 152 104
MondiPackagingSouthAfrica 419 360 35 35
MerchantandNewsprint 591 539 40 29
CorporateandOther 28 31 (37) (17)
Inter-segmenteliminations (257) (235) – –
TotalGroup 6,269 5,751 502 377
18 Mondi Group Sustainabilityreport2007
Review of operationsMondiPackaging’sunderlyingoperatingprofitincreasedby€86million,or38%,reflectingpriceincreasesachievedacrossallmajorpapergrades,someimprovementintheconvertingoperationsandbetterperformancesinbothbagsandflexibles.Inaddition,costsavingsof€81millionwereachieved.Thisimprovedresultwasdelivereddespite€17millioninrestructuringcosts(2006:€17million)incurredaspartoftheongoingrationalisationofourdownstreamconvertingassets.
MondiBusinessPaper’sunderlyingoperatingprofitincreasedby€48million,or46%,principallyduetoasignificantturnaroundintheSouthAfricanoperationsaswellasastrongresultfromRussia.Theresultalsobenefitedfrommodestincreasesinpaperpricing.TheimprovedSouthAfricanperformancewasachievedthrougharestructuringofthebusinessandabetteroperatingperformancefromthePM31papermachinein
Merebank,togetherwithcostreductionsthroughoutthebusinessof€82million.Theseimprovementswerepartiallyoffsetby€10millioninrestructuringcostsmainlyincurredtoreducedivisionaloverheads.
MondiPackagingSouthAfrica’sunderlyingoperatingprofitof€35millionwasup8%inlocalcurrency,butthereportedfigurewasflaton2006duetotranslationintoeurosatasignificantlyweakerrandexchangerate.TheincreaseismainlyduetogooddemandandvolumegrowthfollowingastrongagriculturalseasoninSouthAfrica.
Ourmerchantandnewsprintbusinesses(profitsup€11million,or38%)benefitedfromimprovedpricinganddemandand,intheUK,fromlowerenergycosts.
Netcorporatecostswere€20millionhigher,reflectingthecreationofMondi’sowncorporatestructurefollowingthedemergerfromAngloAmericanplc.
Summary of production information
Yearended Yearended 31December 31December 2007 2006
MondiPackaging
Containerboard tonnes 2,101,363 2,044,391
Kraftpaper tonnes 891,385 850,271
Corrugatedboardandboxes millionm² 2,088 2,103
Industrialbags millionunits 3,642 3,606
Coatingandreleaseliners millionm² 2,971 2,360
Pulp–external tonnes 179,059 180,166
MondiBusinessPaper
Uncoatedfinepaper tonnes 1,987,574 2,012,295
Newsprint tonnes 192,329 187,100
Pulp–external tonnes 125,679 114,099
Woodchips bone-drytonnes 690,447 886,612
MondiPackagingSouthAfrica
Packagingpapers tonnes 368,574 369,300
Corrugatedboardandboxes millionm² 367 328
NewsprintJointVentures
Newsprint(attributableshare) tonnes 314,847 320,876
Aylesford(attributableshare) tonnes 185,990 196,864
Shanduka(attributableshare) tonnes 128,857 124,012
Economic contributioncontinued
www.mondigroup.com Sustainabilityreport2007 Mondi Group 19
Economic strength of the GroupSuppliers
Paymentstosuppliersin2007totalled€4,531million(2006:€4,204million).This8%increaseisattributabletothehighervolumestradedin2007andreflectstheimpactoftheacquisitionsduringtheperiod.Themajorityofthesepaymentsrelatetoinputfibrecosts,energy,chemicals,packagingandmerchantproductexpenses.
Employees
Thevaluedistributedtoemployees,includingbasewagesandotherrelatedcosts,totalled€906million(2006:€874million).
Capital expenditure
Totalcapitalexpenditurein2007amountedto€406million(2006:€460million),andisbroadlyinlinewithdepreciationof€363millionifthe€40millionexpenditureonthetwomajorcapitalprojectsinPolandandRussiaisexcluded.ThisreflectsMondi’scontinuinginvestmentinmajorcapitalprojectsandacquisitionsinlow-costemergingmarkets.
Taxes and other payments to governments
In2007Mondipaidatotalof€189millionintaxesandrelatedpaymentsinthecountriesinwhichtheGroupoperated.Theseincludedcompanytaxes,employeetaxes,royalties,importandexportduties,transferduties,salesandothertaxes.
Attributable to shareholders
ThenetprofitattributabletoshareholdersoftheGroupaftertaxationwas€233million.
AdetailedreviewoftheGroup’sfinancialandoperationalperformance,includingstatementsbythejointchairmenandchiefexecutiveofficerandafullsetofaccounts,canbefoundinMondi’s2007annualreport.
TheannualreportisalsoavailabletodownloadfromtheGroup’swebsiteatwww.mondigroup.com
Total capital expenditure (€m)
€450m
€413m
€281m
€241m
2004
2005
2006
2007 €165m
€168m
€138m
€179m
Emerging markets Mature markets
Value distribution (%)
To employees for wages 14%
Paid to suppliers 73%
Paid to providers of funds 2%
To government for company taxation 1%
Depreciation 6%
WesternEurope
41%EmergingEurope
33%
Russia9%
Africa11%
Other6%
Payments to suppliers (%)
WesternEurope
57%
EmergingEurope
13%Russia10%
Africa16%
Other4%
Distribution to employees (%)
Capital expenditure by geography (%)
WesternEurope
41%EmergingEurope
24%
Russia13%
Africa18%
Other4%
Taxes paid €189million
€76m2007 €113m
Employeetaxes Othergovernmenttaxesandpayment
Retained for shareholders 4%
20 Mondi Group Sustainabilityreport2007
ForestrySummary
Forestsarethelivingheartofouroperations–andtheirsustainabilityisfundamentaltoourfuture.
Scientificadvances,awillingnesstoengageandacommitmenttoourcommunitiesareallkeytoMondi’sforestrymodelfortodayandtomorrow.
Thissectiondescribesourmainactivitiesandareasofprogressin2007.
Moreinformationisavailableat:www.mondigroup.com
Page 21 Credibility through certification
Page 24 Water management on our plantations
Page 23 Managing biodiversity
Page 25 Wood tracing to defeat illegal logging
Page 26 Meeting social needs in our forests
Policy Mondi attaches great importance to the sustain-ability of the supply of wood, fibre and biomass it sources, and to the environment.
Pristine forests in Russia. Image courtesy of Silver Taiga.
Sustainabilityreport2007 Mondi Group 21
Agrowingbusiness–aspiringtobestpracticeinMondi’sforests
Positive change
AtMondi,webelievethatthesescientificadvanceshavethepotentialtomovetheindustrytoapositionwhereitisrecognisedasaforceforpositivechangeandaleadingindustryinthemitigationofclimatechange.
Wearenotyetthere.Theimpactofpastoperationsandsomepersistentpoorpracticecarriedoutbysomemembersofourindustryontheglobalenvironmentandlocalcommunities,particularlytheunsustainableexploitationoftheboreal(northern)forestsandtropicalrainforests,hasbeentoodeeptobeeasilyforgotten.
Insouthernhemisphereplantations,whichnowaccountforlessthan5%oftheworld’sforestsbutmorethan30%ofitswoodproduction,earlyplantationpracticehashadanimpactonwatersupplies,biodiversityandsenseofplace.
ThishasbeenthecaseinSouthAfrica,wheretodayMondiownsandmanages350,000hectaresofplantationforests.FollowingagovernmentdecisionafterWorldWarIthatthecountryshouldbeself-sufficientinforestry,wall-to-wallplantingandtheinappropriateuseofgrasslandandwetlandareascreatedenvironmentalandsocialproblemsthatwearefocusedoneradicatingtoday.
Responsible forestry
InrecentyearsatMondiwehavebeendevelopinganapproachthatwecall‘responsibleforestry’,ascience-basedmethodinvolvingkeystakeholders.Thenewgenerationplantationsthatareresultingfromthisapproachreflectthegreatestimprovement,becauseoftheirshortseventonineyearrotations(thetimefromplantingtologging).
MondiisworkinggloballywithNGOsandthescientificcommunitytodevelopandimplementbestpracticeforsustainableforestmanagement.
Exciting advances
Wearepleasedbysomeoftheadvancesthattheseeffortsarealreadyproducing.Forexample,bydelineatingwetland(riparian)zonesandcreatingaplantation-free‘bufferzone’aroundriparianareas(closetoariver,streamorlake)andwetlands,wearemanagingtoconservewaterresourcesandassociatedbiodiversityinourSouthAfricanplantations.Bylinkingseparateecosystemsviaundeveloped‘ecocorridors’,wearemaintaininganimportantelementofbiodiversityinthreatenedareas.InRussia,wearepartofamulti-stakeholderprocesssuccessfullysettingasideareasofpristinevirginforestwhileenablingruralpeopletocontinuemakingtheirlivingfromtheforest.
Credibility through certificationCertificationisaveryimportanttoolforanyforestrybusinessseekingtoestablishitscredibilityasaresponsibleorganisation.Inourview,itsetstheminimumsustainabledevelopmentstandardthatweshouldseekinthoseareaswhereweown,leaseormanagelandanditprovidestheassurancethatwoodandfibrepurchasedfromexternalsourcesisfromsustainablymanagedforests.MondiusesForestStewardshipCouncil(FSC)andProgrammefortheEndorsementofForestCertification(PEFC)systems.
TheFSCwasestablishedintheearly1990stocreateasystemforidentifyingwell-managedforestsasanacceptablesourceofforestryproducts.Withamissiontoensure
environmentallyappropriate,sociallybeneficialandeconomicallyviablemanagement,itrunsacertificationschemethat’swidelyrecognisedbyNGOsasthepremierglobalstandardforresponsibleforestry.
Underlying sustainability
Forus,theunderlyingsustainabilitythatcertificationpromotesisavitalaspectofouroperations–fullytransparentandsubjecttoregularassessmentbyindependentaccreditationorganisations.FSCcertificationprovideswidelyrecognisedevidenceofourcommitmenttosustainablepractices.
MondiwasoneofthefirstcommercialbusinessestoadopttheFSC’sstandardsinSouthAfrica,wherealllandweownisnowenteringthefourthcycleofcertification.InRussia’sKomiRepublic,Mondihascertified1.6millionhectaresoflandandafurther0.7millionhectaresaredueforcertification.ThisfurthercertificationwillagaininvolveclosecooperationwiththeStateForestryDepartmentandlocalNGO,SilverTaiga.
PEFCisaglobalumbrellaorganisationthatassessesandrecognisesnationalschemes,alreadyrepresenting23programmesandwithafurther12workingtowardsrecognition.PEFCforestcertificationsupportsalargenumberofoursuppliersinEurope.
ThePEFCandFSCChainofCustodycertificationshavebeenimplementedatallofourmillsexceptthenewlyacquiredBulgarianmillatStambolijski,forwhichaplanwillbedeveloped.
The face of the global forestry industry is changing fundamentally. Historically, the industry has often been a focus of criticism from some quarters for poor environmental and social behaviour in its management of plantations, of natural forests and of local communities.
The Earth Summit in Rio de Janeiro in 1992 on Sustainable Development marked a turning point for the forestry industry and, in the succeeding years, scientific advances in forestry have coincided with an understanding and acceptance of corporate responsibilities to enable a new, sustainable approach to forestry. Mondi is fully participating in this quiet revolution, working with NGOs and the scientific community in Europe, Russia and South Africa to develop and implement best practice for sustainable forest management.
22 Mondi Group Sustainabilityreport2007
Supporting small growers
Gainingcertificationiscomplexandexpensiveforsmallgrowers.Manyofthesebusinessesaresmallandworkingtotightmargins,soweareactivelyseekingtoeasetheprocessforthemwithoutcompromisingsustainableforestrypractices.
Therearesome16millionsmallcommercialgrowersinEuropealone,andnumbersinSouthAfricaaregrowingfast.Helpingthoseinoursupplychaingaincertificationisoneofthebiggestchallengeswefaceaswemovetowardsrequiringthemalltobecrediblycertified.
Aswellasdevelopingclearguidelinesonwhatweexpectfromoursuppliers,weareworkingthroughTheForestsDialogue(TFD)tofindanacceptableandpracticalsolution.Thisisanongoingeffort,onwhichwewillreportagaininfuture.
High Conservation Value forests
InRussia’sKomiforestthereareareasknownasHighConservationValue(HCV)forests,wherecommercialforestrymaybeprohibitedorrestrictedduetotheirparticularecologicalorsocialsignificance.TheissuessurroundingHCVstatuscanbecomplex,however,becauseitisoftendifficulttoidentifythemprecisely.
Asresourcestewards,weareactiveinworkingwithawiderangeofstakeholders,includingtheRussianStateForestDepartment,WWF(whichhasawardedusitsprestigiousPandaAwardforoureffortsinthisarea)andGreenpeacethroughSilverTaiga,todefinethese
HCVareasaccuratelyandimplementaworkableprocessthatindicatestheirstatus.
SilverTaiga,inparticular,hasmadeasubstantialcontributiontothisprocess,withpracticalimplementationofonesolutioninvolvingasimple‘trafficlight’system.Inthis,reddemarcates‘nogo’areas,amberindicateswherespecificconditionsapplyandgreenallowsnormalcommercialoperations.
AcriticalfactorinHCVareas,however,isthesituationoflocalpeople.Itisimportantthattheirsourcesofincomearenotthreatened,sothereisregulardialoguewithcommunitiesduringtheprocess.
Managing the impact of plantations
InSouthAfrica,wearecommittedtominimisingtheimpactofourplantationsontheenvironment.Inadditiontocreatingemploymentthroughplantations,werecognisethatanymonoculturehasanimpactontheenvironment.Wehavearesponsibilitytohelpprotectvulnerableecosystemslikeindigenousforest,wetlandsandgrasslands.
Forestrycontinued
Accurate eco boundaries are protecting wetland and other High Conservation Value (HCV) areas to enable plantations to operate side-by-side with globally significant habitats.
www.mondigroup.com Sustainabilityreport2007 Mondi Group 23
Rehabilitating ecosystems
Withthisinmind,weareworkingcloselywithWWFandsomeofourpeersintheindustryonrefiningthescienceandpracticebehindwhatWWFcalls‘NewGenerationPlantations’,aprojectdueforcompletionin2009.Earlyindicationsarealreadyshowingthatthepracticeswearedevelopinghavesomeverypositiveimplicationsfortherehabilitationoffunctioningecosystems,wetlandsandripariansystemsinparticular.
Thisisvitalwork.SouthAfricangrasslands,whichcovertheeconomicallymostproductivethirdofthecountry,havebeensignificantlyimpactedbydevelopmentofmanykindsincludingagriculture,miningandurbanexpansionaswellasforestry.Remnantsofsomeoftherareandendangeredgrasslandsareunderseriousthreat,placinganumberofbirdandanimalspecies,includingtheWattledCrane,OribiandBlueSwallow,onthevergeofextinctioninsomeareasofthecountry.
Naturally,Mondicanonlyinfluenceactivitieswhereweowntheland.Butwebelievethattheworkwearedoing,integratedwiththegovernment’s20-yeargrasslandconservationplanandtheEzemveloKZNWildlifeLandStewardshipProgramme,isindicatingafuturedirectionforotherlandownersandinterestedparties.Wearecommittedtoensuringthat25%ofourlandinSouthAfricaisleftunforestedandwemakeoptimaluseofthisareatosupportassociatedHCVareas.
Developing eco-corridors
Justassignificantisthedevelopmentofecologicalnetworks,usingundeveloped‘corridors’oflandtocreatebiologicalpathwayslinkingdifferentHCVhabitatsorecosystems.ProfessorMichaelSamwayswhoheadstheDepartmentofConservationEcologyandEntomologyatStellenboschUniversityinSouthAfrica,isleadingdevelopmentsinthisfieldandmakinguseofMondi’sforestresources.
Alongwithourworkonwatersystems(seepages24and25),applyingscientificresearchinthiswayisstronglyinfluencingourcommercialapproach.InSouthAfrica,weareinvolvedinseveralprojectswhereintensiveforestryisnowoperatinghand-in-handwithworld-classconservationactivities.
World Heritage partners
SiyaQhubekaForestryinSouthAfricaisapartnershipbetweenMondianditsblackempowermentpartners,andgovernment,andwasthefirstcommercialorganisationtodelineateanaccurate‘eco-boundary’linebetweenaWorldHeritageSite(nowiSimangalisoWetlandPark,formerlyGreaterSt.LuciaWetlandPark)andaforestryplantation.ThisapproachhasprotectedsensitivewetlandandotherHCVareasonthesite,enablingourplantationsandassociatedecosystemstobecomepartofagloballyrecognisedgameparkandextendingthehabitatofspeciesincludingelephant,rhinocerosandbuffaloalongwithamyriadofplants,invertebratesandbirdlife.
Managing biodiversityTheEarthSummitinRiodeJaneiroin1992wasanimportantcatalystfortheworld’sleadingforestrycompanies,awakeningthemtotheimportanceofbiodiversityandsustainablepracticesintheiroperations.
DuringtheyearssincetheRiosummit,Mondihasplacedincreasingemphasisonourresponsibilitytoconservenaturalresourcesand,wherepossible,tohelprestorethosethathavebeendamaged.
ThisapproachisconsistentwiththeMillenniumEcosystemAssessment,whichin2001compiledintoasinglereportthefindingsofover1,360environmentalexpertsfromallovertheworld.
Thisshowedthat,whilethelast50yearshaveseenmorechanges(includingdegradation)toecosystemsasaresultofhumanactivitythananyotherperiodinhistory,changesinpracticecouldreversemanyofthemoverthenext50years.
Othersiteswheresimilarpartner-shipswithsharedresourcesareunderwayincludetheeMakhosiniOphatheHeritageParkandGilboaForestEstatewhereourwillingnesstodropformalboundaries,shareecosystemresourcesandknowledgeandcommunicatewithlocal,nationalandglobalNGOsisresultinginmutualbenefitsbasedonaclearunderstandingofeachother’sinterests.
Mondi’srelationshipswithworldandlocalconservationbodieswilltakeonanewdimensionin2008whenwebecomemoreinvolvedwiththeeMakhosiniOphatheHeritagePark,nearUlundiintheKwaZuluNatalprovinceofSouthAfrica.ThisnewparkincludesthevalleywhichisthebirthplaceoftheZulunationandwheremostoftheZulukingsareburied.
WearenowconcentratingonhowwecanapplythelessonswearelearningthroughtheseandotherprojectstoournorthernforestryoperationsinRussia’sKomiRepublic.
Understanding the issues
Theglobalforestindustryhasacriticalroletoplayinthepreservationofendangeredecosystemsandbiodiversityandanimportantcontributiontomaketowardsthemitigationofclimatechange.Mondiisproudtobeapartofthisglobalcontributionandintendstopublishsignificantachievementsinthisregardinourfuturereports.
Seedlings planted per year
36millionin South African plantations
24 Mondi Group Sustainabilityreport2007
Water management in our plantationsOurSouthAfricanplantationsareinanareaoftheworldwherefreshwaterisascarceandvaluablenaturalresource–65%ofthecountryreceiveslessthan500mmannualrainfall,makingthepotentialfordroughtanever-presentdanger.
Overmanyyears,ithasbeenrecognisedthatplantationforestryhasasignificantnegativeimpactonwaterresources.Inmostareas,reductioninstream-flowisthemostcommonnegativeoutcome,whilethemaintenanceofgoodqualitywaterisgenerallyapositiveimpact.
Developing new practices
Itwascommonplantationpracticeintheearlydaysoftheforestryindustrytouseeveryavailablepieceoflandforplanting.Nowweknowthatplantinginsensitiveriparian(closetoariver,streamorlake)orwetlandareasresultsinthetreestakingupmorewaterthantheyneed,duetoitsreadyavailability.
Mondiwasamongthefirstforestrycompaniestorecognisewaterasthemostimportantenvironmentalissueinmanyareas.Asaresult,wehaveforsomeyearsbeenworkingcloselywithNGOsandscientificinstitutions,suchasuniversitiesandresearchcentres,togainafullerunderstandingofplantationwaterissues.TheWaterResearchCommission,UniversityofKwaZuluNatal,UniversityoftheOrangeFreeStateandtheCouncilforScientificandIndustrialResearch(CSIR)havemadesubstantialcontributionstothisworkonMondiland.
Ourlandishometoanumberofimportantwaterresearchtrials.Thesehaveledtosomesignificantchangestoourforestrypracticedesignedpurelytominimisetheimpactofouroperationsonwaterresources.
WearetheprincipalsponsoroftheMondiWetlandsProject(MWP),establishedin1991byWWFandtheWildlifeandEnvironmentSocietyofSouthAfrica.Duetothewideimplementationofitsfindings,thisisoneofWWF’smostsuccessfulprojectsanywhereintheworldandwehaveagreedanewfive-yearsponsorshipagreementthatbeginsinApril2008.TheMWPismakingasubstantialcontributiontotheprotectionandrehabilitationofwetlandsinSouthAfrica,andthenewagreementincludesaparticularfocusonwetlandsinpoorruralcommunitiesandincapacitatedmunicipalities.
A cooperative effort
AlongsideMWP,theSouthAfricangovernmentandseveralleadingscientists,wechairedaprocessoveranumberofyearsresultinginanationalprocedureforwetlanddelineation.
Themostimportantresulthasbeenourdecisiontoremoveallourtreesonorclosetoriparianorwetlandareas,creating‘bufferzones’aroundthemtoencouragetherecoveryofnaturalfreshwatersources.Thisongoingprocessinvolvesremovingsome5%ofourlandfromforestryproduction.
Forestrycontinued
Case studyRehabilitating the WetlandsTheMondiWetlandsProjectaimstobringabouttherehabilitation,wiseuseandsustainablemanagementofvaluablewetlands,includingspringsandseeps,marshes,floodplains,swampforests,mangroveswampsandestuaries.ItiswidelyrecognisedasSouthAfrica’smostsuccessfulnon-governmentalwetlandsproject,successfullypromotingconservationamonggovernmentagenciesandprivateandcommunalwetlandusers.
...today
before... during...
The Zohar Wetland.
Mondi is removing
5%of our land forestry production to create ‘buffer zones’
www.mondigroup.com Sustainabilityreport2007 Mondi Group 25
WeareencouragedbytheresultsofourworkwithMWPandtheresearchprojectsheldonMondi’sland.Therehabilitationofwetlandandriparianareashasbeenremarkablysuccessful,clearlydemonstratingthatitisbothpossibleandpracticaltoreversemostofthedamagethesesensitivesiteshavesufferedthroughpoorplantationpractices.Infact,wehavedemonstratedonawiderangeofsitesthatrecoveryofthesesitesispossiblewithinasinglegrowingrotationofseventonineyears(seecasestudyonpage24).
Thisisjustoneresultofourclose,activeinvolvementwithMWP,whichhasachievedoutstandingresultsovermanyyearsintheconservationandrehabilitationofSouthAfricanwetlands.Lookingtothefuture,wehavenowagreedtochallengingtargetsforthedelineationandmanagementofwetlandsinourplantations,andwillcontinuetobenefitfromMWP’stechnicalsupport.
Benefiting communities
Mostimportantly,wearenowworkingtogethertoapplyourfindingstowetlandsoncommunityareasborderingourland,spreadingthebenefitsofourworktohelpthewiderenvironmentandsociety.
Similarly,thewaterresearchsitesonourlandincludeanumberofsophisticatedwater-catchmentexperimentsundertakenbyanumberofscientificinstitutions.ThesearesuccessfullyprovidingimportantinformationthatwillleadtothebettermanagementofSouthAfrica’sfreshwaterresourcesasawhole.
Inthisandotherways,theforestryindustryandMondiinparticulararecontributingtothefuturesustainabilityofthecountry.
Wood tracing to defeat illegal loggingOneofthegreatestchallengesfacingtheforestryindustryisthecontinuedprevalenceofillegallogging,amajorcauseofdamagetotheworld’svaluableborealandtropicalforests.
Whereverpossible,weandotherleadingbusinessesinourindustryusetheFSCandPEFCchainofcustodycertificationschemestotrackourrawmaterialsupplies.Thesecompriseatransparentandaccountableprocessthrougheverystepfromtheforesttotheconsumer.
Inthisway,wecanbothminimisetheriskofillegaltimberorfibreenteringoursupplychain,andprovideevidencethattheforestsfromwhichweprocureourwoodaresustainablymanaged.
WefaceawiderangeofcontrolissuesoverourforestryoperationsincentralandeasternEurope,particularlyinRussia’sKomiRepublic,duetotheremotenessofmanyoftheareasfromwhichourwoodissourced.Inaddition,thesheerquantityofindependentcommercialgrowersintheregionmakeseffectivemonitoringofalltheiractivitiesamajorchallenge.
Thesearesomeofthereasonswhywearenowintheprocessofstrengtheningourownprocessesandsystems,basedonourSustainableForestryPolicy,toreducetheriskofillegalwoodenteringoursupplychaininRussia.
In2007,wedevelopedourprocedurefortheresponsibleprocurementofwood,virginfibreandbiomassutilizingversion1oftheFSCControlledWoodStandard.Sincetheprocedurewasdeveloped,FSChasrevisedtheControlledWoodStandard.WehaveidentifiedtheneedtoupdateourprocedureandtoalignitwiththelatestControlledWoodStandard.ThiswasalsoconfirmedbyERMintheirassuranceassessment.
Assuring legality
Next,weworkedonthedevelopmentofarisk-basedwoodandfibretracingsystemthatwillenableustoassurethelegalityofthewoodwereceive,fromtheso-called‘smallestmanagementunit’.Thissystemisdesignedtoensurethatalloursuppliersarelegallycompliantandmeetallourwoodprocurementrequirements.
WearealsosupportingthetracingsystemwithourWoodInformationPlatform(WIP)whichmonitorsallthewoodandfibreenteringallourprocessingplantsbyspeciesandbycertificationtype.Together,thisminimumwoodstandard,therisk-basedwoodandfibretracingsystemandourWIPformthebasisofourprocedurefortheresponsibleprocurementofwood,virginfibreandbiomass.
Todate,theabove-mentionedsystemhasbeendevelopedandreportingofdataintheWIPhasstarted.Toensurethatwemeetourtargetoffullimplementationofthesystembytheendof2008,wehaveputintoplaceadedicatedpersontoimplementourdetailedrolloutplan,whichincludeson-sitetraining,educationandconsultationwithprocurementspecialistsacrosstheGroup.
Intheseandotherways,weareworkingtomeetourcommitmentonlytousewood,fibreandbiomassfromsustainablesources.
26 Mondi Group Sustainabilityreport2007
Meeting social needs in our forestsManyofthepeoplewholiveandworkintheforestswhereweoperatefacesevereeconomichardship.WeregarditasanimportantresponsibilityatMonditoensurethatourstakeholdersdirectlyassociatedwithourbusiness,ruralcommunitiesinparticular,benefitfromouractivities.Inadditiontothedirectsupportweprovide,weactasacatalysttoleverageresourcesfromgovernmentandotheragenciesfortheadvancementofimpoverishedcommunities.
Wereportonanumberofinitiativesrelatingtothisissueelsewhereinthisdocument.Inparticular,seepage43foradescriptionofthetransparent,methodicalSEAT(Socio-EconomicAssessmentToolbox)processthatweusetomeasuretherealneedsofourcommunities.Andseepage48foradescriptionofourworkwithsmallforestry-basedbusinessesviaMondiZimele,ourSouthAfricanenterprisedevelopmentarm.
Case study KwaZulu-Natal arts and craftsOneofthemaindrawsfortouriststoKwaZulu-Natalisthehighqualityofthearea’sartsandcrafts.Inastrongefforttohelpcraftspeoplemarkettheirworkmorewidely,wehavelaunchedaninitiativetounifythelocalindustry.
Ourcommunityengagementfacilitatorshavevisitedthecommunities,encouragingpeopletoworktogether,accordingtotheirparticulartalents.Today,128membersarekeentocooperateonmajorprojectsthattheycannotfulfilalone.
AswellasfundingstandsandcreatingcataloguesformajorexhibitionsliketheRoyalShow,ZululandExpoandCrafttoLondon,wealsohelparrangevisitsfromtraders,whowanttoselllocalproductsininternationalmarkets.
Tangible support
OurSEATreportsprovidethebasisforouractivitieswithcommunities.Amongmanyotherthingsweendowschools,hospitalsandcommunitycentresinRussia,weprovideclinicstohelpaddresstheHIV/AIDSepidemicinSouthAfrica,andwesupportemergingsmallgrowerstogivethemtheexpertiseandbusinessrigourtheyneedtobeasustainablepartofoursupplychain.
TypicalexamplesofouractivitiesincludeaprojectinSiyaQhubekaForestryinSouthAfricathatisbothhelpingtoprotecttreesandtoprovidebusinessopportunitiesforlocalpeople.
Inthis,wehavehelpedfivewoodcarverssetuptheManukelanaArtandNurseryproject,inwhichtheyreplaceeverytreetheyuseforcarvingtheirart.Thishasnowledtoanactivebusiness,inwhichtheyselltreestoneighbouringschoolsandcommunities.Significantly,theyhavereceivedacontractfromthemunicipalitytoprovidetreesthathavenowbeenplantedinanewlocaltownship.
Managing modernisation
Thesetypifyinitiativesacrossourforestryoperations,butinbothRussiaandSouthAfricawefaceafundamentalmodernisationchallengethatrequirestheutmostsensitivitytoaddress.Asourbusinessmovesforward,eventhepoorestpeopleareincreasinglyunwillingtoundertakeheavylabour,particularlyintheextremecoldofonecountryandtheextremeheatoftheother.Forestryisincreasinglycompetingforlabouraspeopleareleavingtheforestsandruralareasforcities.Mondiworksalmostexclusivelywithcontractorsintheseareasandistakingstepstoattractandmaintaintheirservices.
Weare,therefore,investinginnew,advancedforestrymachinerythat,whileprovidingamorecomfortableworkingenvironment,willalsohaveanimmediateimpactonthenumberofpeoplewecandirectlyemployintheforests.During2007,basedonSEATfindings,wecontinuedtoprogresswithmechanisedforestrysystemsinameasured,methodicalmannerthatminimisesthesocialimpactofmodernisationwhileseekingtomaximiseitseconomicbenefitsfortheaffectedcommunities.
WesupportandactivelyparticipateintheeffortsofTheForestsDialogue(TFD)toaddresstheglobaltopicofpovertyreductionandcommercialforestry.TheinitialscopingmeetingwashostedbyMondiinSouthAfricaandduring2007successfuldialogueswereheldinIndonesiaandBoliviaandarereportedontheTFDwebsite.
Forestrycontinued
www.mondigroup.com Sustainabilityreport2007 Mondi Group 27
Environmental performance
Summary
Asamanufacturingbusiness,weuseintensiveprocessesthatconsumeenergyandwater,aswellasgeneratesolidwasteandemissionstobothairandwater.
We’recommittedtocontinuousimprovement.Hereweexplainhowwe’redecreasingourenergyintensityandgreenhousegasemissionsfromfossilfuels,usingcleanermanufacturingtechniquesandtechnologies,andmanagingourwastedisposalactivitiesbetter.
Moreinformationisavailableat:www.mondigroup.com
Page 29 Reducing energy intensity and carbon emissions
Page 31 Working together to clear the air
Page 30 Water, using less – reusing more
Page 32 Focusing on the landfill challenge
Policy We actively strive for recognised best environmental performance in our operations. We aim to achieve this by integrating environmental principles into our business strategy.
In South Africa, and worldwide, Mondi makes every effort to live in harmony with the environment.
28 Mondi Group Sustainabilityreport2007
Every time we use an industrial process to change the state of a material we both consume resources and generate by-products that need to be controlled.
All well-run commercial organisations are constantly seeking new operating efficiencies that will reduce the cost of doing business. At Mondi, we recognise that commercial and environmental imperatives are often very closely related – doing more for less simultaneously both reduces our environmental impact and improves our profitability.
These twin considerations are behind our rolling programme of change, comprising a powerful link between our financial and our environmental performance. This is fundamental to our environmental policy, which commits us to integrating environmental principles, such as conserving raw materials, using clean production processes and reducing by-products from our operations.
Improved performance
Wearealreadyseeingtheresultsofinvestmentsandimprovedpracticesdeliverbenefitsintheformoflowergreenhousegasgeneration,reducedemissionstowaterandtoair,betterwastemanagementpracticesandanimprovedhealthandsafetyperformance.
Andlookingahead,weexpectconsiderableresultsfromfutureinvestments,particularlythe€525millionprojectthatisduetocompletethemodernisationofourpulpandpapermillatSyktyvkarinRussiaby2010.ThisisthelargestinvestmenteverannouncedbyMondiandwillhaveamajorimpactonouremissionstoair(particularlysulphuroxides,nitrousoxidesandparticulates)whileenablingustomeettheRussianmarket’sgrowingdemandforuncoatedfinepaperatthelowestpracticablecost.
This,though,isonlyoneprojectamongmany,basedontheindividual‘roadmap’plansofourmaterialproductionsites,whichtogetheramounttoaGroup-widestrategyofcontinuoussustainableimprovement.Closelyinterlinkedwiththeseisaseriesofspecifictargetsfor2010,relatingtoparticularenvironmentalmeasuressuchaseffluentloadtotheenvironmentandwastetolandfill.
Reducing emissions
Collectively,theseplans,activitiesandtargetshelpedustotakesomeveryimportantenvironmentalstepsforwardin2007,includingthetotalremovalofelementalchlorinebleachingfromallourproductionprocesses.Inturn,thishasalreadyseenouradsorbablechlorinatedorganics(AOX)emissionlevelsineffluentacrossourpulpproductionoperationsfalltobelowour2010target,decreasingby65%from439tonnesin2005to153tonnesin2007.AchievementssuchasthishavehelpedusreducetheimpactofourenvironmentalfootprintacrossMondi.
Applying the lessons learned
WeuseBestAvailableTechniques(BAT),theEU-defined‘ideal’forpollutionpreventionandcontrolforabusinessofoursizeandindustry,tomeasureourperformance.Thisisausefulguide,showingbothwhereweareunderperformingandwhereweareleadingbestpractice.AnencouragingexampleofexcellencewithinMondicomesfromourRužomberokmillinSlovakia,whereourAOXemissionlevelsare10timeslowerthantheBATminimumrecommendations.
Overthenextfewpages,you’llfinddetailsonanumberofprojectsandachievementsthathavecontributedtoourimprovingperformancein
Environmental performanceLimitingourimpactontheworld’sresources
achievingourpolicygoalofcleanerproduction,morespecificallyworkaimedatreducingourimpactonwater,airandland–someofwhichhasbeenhighlysuccessful,withotherareasstillrequiringcloseattentiontoachievetheresultsweareaimingfor.
Fines, incidents and complaints
Mondimonitorsandreportsitsfines,incidentsoflegalnon-complianceandallenvironmentalincidentsandcomplaints.
LevelIincidentsandcomplaints,i.e.thosewithaminorimpactand/orshort-termeffect,arereportedandmonitoredinternally.
ZerolevelIIcomplaintsand22levelIIincidents(refertoglossaryonpage56)werereportedduring2007,16ofwhichwerereportedbytheSyktyvkarmillinRussia.Ofthe22levelIIincidentsreported,mostwerelevelIincidentsrelatedtowaterquality,airemissionsandnoiselevelswhichcontinuallyexceededpermissiblelimitsoveranextendedperiodoftimeduringtheapplicablereportingperiodsandwhichwerethenelevatedtolevelIIincidentsinlinewithourreportingdefinitions.
NolevelIIIincidentsorcomplaints(refertoglossaryonpage56)werereportedduring2007.
Incidents and complaints1,2
2005 2006 2007
LevelIIIncidents 22 10 22
LevelIIComplaints 1 0 0
1Pleasenotethisgraphincludesdataforourenvironmentallymaterialoperationsonly.2Baselinedatahasnotbeenadjustedfor2005and2006toincludedatafromStambolijski
andMondiShandukaNewsprint.
www.mondigroup.com Sustainabilityreport2007 Mondi Group 29
Reducing energy intensity and carbon emissions
Stabilising the cost of energy and reducing carbon emissions
ByactivelyusingtheprovisionssetoutinArticle17oftheKyotoProtocolof1997,weareabletosmoothoutfluctuationsinthecostofenergyandreducecarbonemissionsfromenergygeneration,soenablingustoplanourfutureinvestmentsstrategically.
TheKyotoProtocolsetnationalemissionstargetswhichwerethenappliedtomajorindustrialsitessuchasourpulpandpapermills.Thesetargetsonaveragerequirethatbetween2008and2012emissionsarereducedto5.2%below1990levels.
WhenweoutperformourtargetsinourinstallationsintheEU,weareallowedtosellourexcessallowancestootherorganisationsascarbon‘credits’(comprisingtonnesofCO2).
Anothercost-effectivemeansofreducingCO2emissionsandmanagingthecostofenergythattheKyotoProtocolenablesistheabilitytoinvestinCleanDevelopmentMechanism(CDM)projectsindevelopingcountries.Formorethantwoyears,wesuccessfullyfocusedondevelopingthemethodologyforCDMprojects–theresultsofthisworkcametofruitioninSouthAfricaduring2007,withthecompletionofabarkboilerandtheinstallationofagasturbineatourRichardsBaymill.
WearenowstudyingindetailthechangestotheProtocolproposedinBaliinDecember2007,andwillreportinfutureonanyresultingamendmentstoourapproach.
Improving energy efficiency
OneofMondi’smostsignificantenvironmentalcommitmentsistoreduceitsspecificfossilfuelCO2emissionsby15%fromthe2004figureby2014.In2007,weachievedan11%specificreductiononthe2004figure.Thisisa6%reductionintotalfossilfuelCO2emissionsfrom5.19milliontonnesin2004to4.86milliontonnesin2007.
Throughoutthebusiness,manypeopleinmanydifferentrolesarecontinuouslyseekingnewmeansofcontributingtothistarget.Theseincludededicatedenergymanagers,basedatourmaterialoperations,whosemainrolesaretoidentify,implementandshareprovenbestpracticeinreducingenergyconsumption.
TheyareimportantparticipantsinDianaEnergy,aMondi-widenetworkofenergyexperts,withaparticularfocusonefficiencyincreases.TheresultsoftheirworkaredocumentedonourMORISdatabase,andusedacrosstheGroupforbenchmarkingandmanagementinformation.
Someoftheideasandsolutionstheenergyexpertspromotearesimple,fromusingimproved,moreefficientcompressedairsystemsorwaterpumps,toreducingwaterconsumptionthroughtheuseofclosed-loopsystemsandincreasingthemotorefficienciesofequipmentthroughoutthebusiness.
Thegainstobemadefromeachindividualimprovementarelikelytobesmall–butreplicatingthemintensofsitesacrossMondimakesapowerfulcontributiontowardshelpingusachieveourcarbonemissiongoals.
Case study A clean methodology TheinstallationofabarkboileratourRichardsBaymillwasMondi’sfirstCleanDevelopmentMechanism(CDM)project.DevelopingandapplyinganefficientandeffectivemethodologythatmeetstheneedsofthesiteandtherequirementsoftheDepartmentofMineralsandEnergytooknearlythreeyears.Withthebarkboileralreadycuttingthemill’stotalCO2emissionsfromfossilfuelsby51%since2004levels,wehavenowcommissionedagasturbineatthemill.
Policy Mondi shares the concerns of the international community about climate change, and believes that industry should play an important role in worldwide efforts to reduce greenhouse gas emissions.
AtMondi,ourGroup-wideenergystrategycommitsustoensuringthatourfinancialandenvironmentalenergycostsareaslowaspossible.
In2007,wedescribedtheenergyvisionwehadformulatedtosupportthisstrategy.Thishascommittedustoarangeofpracticesandactionsthatnowneedtobeentrenchedasfundamentalfeaturesofhowweoperate.Andwhileeachappearstobestraightforward,therealityisthatachievingthemrequiressignificantongoinginvestmentandmanagementwill.
Thebasisofourvisionisfourfold–thatweshould:
manageenergypricevolatilityeffectively;
consistentlyimprovetheenergy-efficiencyofourproductionprocesses;
increasetheproportionofpowerthatweproduceourselves;and
increasetheoverallshareofenergyfromrenewablesourcesasaproportionoftheenergyweuse.
During2007,wehavedoneagreatdealtoaddressandmeettherequirementsofeachcommitment,bringingthestrategytolifeasacentralandevolvingfeatureofMondi’soperations.
Ourworkrangesfromintensiveinvestmentprogrammes,tochangesinourworkingprocessesandsmallimprovementsthatwecanreplicatemanytimesacrossthebusiness.
–
–
–
–
CO2 from fossil fuels*†
Energy sources 2007
Chemical oxygen demand emission
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0ton
ne
s/a
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um
25
20
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5
02005 2006
TSR graph of Mondi plcand FTSE All-Share Index
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Mondi plc FTSE All-share Index
TSR gand J
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Energy usage*†
140,000
142,000
144,000
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156,000
Number of occupational health disease cases
0
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5,000
5,100
5,200
5,300
Waste water flow*†
215,000
220,000
225,000
230,000
235,000
240,000
245,000
Chemical oxygen demand*†
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Water for primary activities in water-stressed countries such as South Africa and Israel*†
AOX*†
0
50
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450
500
Particulate emissions*† Waste to landfill*†
0
500
1000
1500
2000
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4000
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Total reduced sulphides*†°
0
50
100
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tonnes/
annum
kg/t
onne p
roduct
tonnes/
annum
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um
Number of fatalities*
0
1
2
3
4
5
6
7
8
Lost-time injury frequency rate*
0.00
0.125
0.250
0.375
0.500
LTIF
R
SO2 emissions at the Merebank mill
tonnes
’00
0 t
on
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an
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0m
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on
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0
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23
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20
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2005 2006 2007
2005 2006 2007 2005 2006 2007 2005 2006 2007 20052004 2006 2007
2005 2006 20072005 2006 20072005 2006 2007 2004 2005 2006 2007
2004 2005 2006 20072004 2005 2006 20072004 2005 2006 20072004 2005 2006 2007
* Pleasenotethisgraphincludesdataforourenvironmentallymaterialoperationsonly.
† BaselinedatahasbeenadjustedtoincludedatafromStambolijskiandMondiShandukaNewsprint.
• Dataincludesenergysuppliedtothirdpartiesandthusspecificfiguresareslightlyoverstated.
GroupspecificGrouptotal
30 Mondi Group Sustainabilityreport2007
More self-generated energy
AcrossMondi,asadirectresultofinvestinginourownenergyproduction,wereducedourconsumptionofelectricalenergyfromthegridby4,788GWhin2007from2006.
Wherepossible,wehavereplacedtheinefficientproductiontypicalofaconventionalpowerplantwithcloseto100%implementationofgreatlymoreefficientcombinedheatandpower(CHP)technology.
Inaddition,weareactivelyusingtheenergyproducedasaby-productofourindustrialprocesses.Forexample,atourproductionplantinŚwiecieweareusingthesteamproducedinourrecoveryboilertogenerateelectricity.Wearealsosellingsustainably-producedenergyviarenewableenergysupportschemesintheCzechRepublicandPoland.
Forus,thisisavisionofthefuturewherecommunitiescanactivelybenefitfromourprocesses.Forexample,todaywearesupplyingtownswithexcessheatfromourSyktyvkarandRužomberokmills.InAustria,ahospitalissuccessfullyusingourexcesslow-temperatureheatfollowinganinvestmentbythelocalauthority.
Whilewehavemadeagreatdealofprogressonthisfrontinrecentyears,thereisstillalongwaytogobeforewebecomeanetsupplierofrenewableenergyinsomesites,andthisremainsanobjectiveforthebusinessaswelearnmoreaboutthefullpotentialofsuchdevelopments.
Our use of renewable energy
Ourindustryhasthepotentialforreducingitscarbonimpactbysubstitutinghighcarbonfossilfuelssuchascoal,ligniteorheavyfueloilwithlowcarbonfossilfuelssuchasgasorwithrenewablebiologicalenergysources.
Weareaimingtosteadilyincreasetheuseofourown-producedbiomass,blackliquor,sludge,talloilandotherrenewablefuels,bydrivingourinvestmentsinthetechnologyneededtouseit.Consumptionoftraditionalfuelsforourself-producedenergyaccountsforapproximately52%oftheenergyusedinourpulpandpapermills.Currently41%ofourtotalenergyisfrombiomass,anumberwhichhasremainedstableoverthepastthreeyearsandwhichweaimtoincreaseinyearstocome.
Critically,withoutthemeansofusingbiomassasafuel,itwouldbeawasteproductconsignedtolandfill.Itisahighlyinefficientfuel,butourinvestmentsinCHPsolutionsatoperationsareprovingthattheuseofbiomassnotonlyreduceswaste,butalsoimpactsgreenhousegasemissionsandcutstheoverallcostofsteamandpowertotheGroup.
Byconvertingourcommitmentsintoaction,projectsliketheseareactive,workingdemonstrationsofimplementingourenergystrategy.
Environmental performancecontinued
Water – using less, reusing moreAtMondi,wecontinuouslyfacetwomainissuesintheuse,conservationandprotectionoffreshwater.
Thefirstofthese,protectingsuppliesinourforestryoperationswithinwater-scarceareasoftheworldsuchasSouthAfrica,isaddressedonpage24ofthisreport.Thesecondmajorissueishowweusewaterinourintensiveindustrialprocessesthroughouttheworld.Ourongoingchallengeistoachieveconsistentreductions,bothinthequantitiesofwaterweuseandintheamountofwater-bornepollutantsthatresultfromourprocesses.
CO2 from fossil fuels*†
Energy sources 2007
Chemical oxygen demand emission
140,000
120,000
100,000
80,000
60,000
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20,000
0ton
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s/a
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25
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02005 2006
TSR graph of Mondi plcand FTSE All-Share Index
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Mondi plc FTSE All-share Index
TSR gand J
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Energy usage*†
140,000
142,000
144,000
146,000
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154,000
156,000
Number of occupational health disease cases
0
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3,000
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5,200
5,300
Waste water flow*†
215,000
220,000
225,000
230,000
235,000
240,000
245,000
Chemical oxygen demand*†
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Water for primary activities in water-stressed countries such as South Africa and Israel*†
AOX*†
0
50
100
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200
250
300
350
400
450
500
Particulate emissions*† Waste to landfill*†
0
500
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5000
Total reduced sulphides*†°
0
50
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tonnes/
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1
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8
Lost-time injury frequency rate*
0.00
0.125
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0.375
0.500
LTIF
R
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2005 2006 2007 2005 2006 2007 2005 2006 2007 20052004 2006 2007
2005 2006 20072005 2006 20072005 2006 2007 2004 2005 2006 2007
2004 2005 2006 20072004 2005 2006 20072004 2005 2006 20072004 2005 2006 2007
CO2 from fossil fuels*†
Energy sources 2007
Chemical oxygen demand emission
140,000
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0ton
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Energy usage*†
140,000
142,000
144,000
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154,000
156,000
Number of occupational health disease cases
0
5
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0
500
1,000
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2,500
3,000
4,400
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4,800
4,900
5,000
5,100
5,200
5,300
Waste water flow*†
215,000
220,000
225,000
230,000
235,000
240,000
245,000
Chemical oxygen demand*†
0
20,000
40,000
60,000
80,000
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120,000
140,000
160,000
Water for primary activities in water-stressed countries such as South Africa and Israel*†
AOX*†
0
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250
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350
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450
500
Particulate emissions*† Waste to landfill*†
0
500
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5000
Total reduced sulphides*†°
0
50
100
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tonnes/
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Number of fatalities*
0
1
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4
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8
Lost-time injury frequency rate*
0.00
0.125
0.250
0.375
0.500
LTIF
R
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0.60
0.70
0
10
20
30
40
50
60
70
80
0.68
0.70
0.72
0.74
0.76
0.78
0.80
0.82
0.84
0.86
0.88
20
21
22
23
24
25
26
27
2005 2006 2007
2005 2006 2007 2005 2006 2007 2005 2006 2007 20052004 2006 2007
2005 2006 20072005 2006 20072005 2006 2007 2004 2005 2006 2007
2004 2005 2006 20072004 2005 2006 20072004 2005 2006 20072004 2005 2006 2007
Groupspecific
MondiShandukaNewsprint
Felixton
PietRetief
Springs
Merebank
RichardsBay
Hadera
Energy sources 2007
Biomass 41.4%
Natural gas 38.3%
Coal 11.7%
Electricity purchased 6.3%
Oil 1.9%
Other fossil 0.2%
Note:datatotalsto99%duetorounding.
www.mondigroup.com Sustainabilityreport2007 Mondi Group 31
Working together to clear the air Noindustrialprocesscantakeplacewithoutreleasesintotheair.
Mondiiscommittedtoreducingitsemissionsintotheatmospheretoaslowasreasonablypracticableinallitsoperationsthroughouttheworld,throughasetofambitiousimprovementtargetssupportedandenabledbyarollinginvestmentprogramme.
Themainissuesaffectingusareemissionsoftotalreducedsulphur(TRS),sulphurdioxide(SO2)and,toalesserdegree,nitrogenoxide(NOx).
Focusing on nuisance odour
Atanumberofoursites,localcommunitieshavecomplainedofa‘nuisanceodour’.InmostcasesthisisduetoTRSemissionsandreducingtheTRSlevelscausedbythepulp-makingprocessisthereforeanimportantgoalforMondi.Wearecommittedtoa65%reductiontargetfrom2005levelsby2010.
Todate,wehavereducedourtotalTRSemissionsby60%to153tonnesin2007.Thisisapleasingresultthatputsuswellontracktomeetour2010targetforthebusiness.
Working with communities
ThemostimportantprogresshasbeenmadeatSyktyvkar,wheretheimplementationofanewventedsteamtreatmentsystemhashelpedusreduceTRSemissionstowithintheBATrange.However,thenuisanceodourremainsanimportantissueinthearea,andacommunityplanisinprogresstohelpusfurtherimprovethesituation.FurtherairemissionimprovementsareexpectedfromtheSyktyvkarmodernisationproject,withreductionsalsoexpectedinSO2,NOxandotherparticulates.
NuisanceodourisalsoamajorissueatourRichardsBaymillinSouthAfrica.AtRichardsBay,wereceivedmorethandoublethenumberofcomplaintsin2007thanthepreviousyear,makingitimportantthatwerisetothechallengesuccessfullyovertheyeartocome–particularlybecausewehavemadeacommitmenttobea‘smell-free’millby2009.Withthisinmind,wehavecommittedtoplannedengineeringandequipmentinvestmentsaswellasadditionalmonitoringduring2008.ThemillintendstoworkcloselywiththeRichardsBayCleanAirAssociationonthisproject.
Tackling COD emissions
ForCOD,wearecommittedtoaGroupreductionof30%from2005productionlevelsby2010.WehavealreadysuccessfullyreducedCODlevelsby21%from138,189tonnesin2005to108,819tonnesin2007.Significantly,35%and56%reductionsintheselevelshavebeenreportedattheSyktyvkarmillinRussiaandtheRichardsBaymillinSouthAfricarespectivelysince2005.
Reducing AOX levels
OurreductioninAOXlevelshasbeensuccessfuloverall,withtremendousprogressbeingmade–particularlythroughourdecisiontoreplaceelementalchlorineasableachingagentforpaperwithadvanced,cleanerelementalchlorine-free(ECF)technology.
TheGrouptargetistoreduceAOXby30%fromthe2005levelby2010.TheGrouphasalreadysurpassedits2010target,successfullydrivinglevelsdownby65%to152tonnesin2007.Thisisencouragingprogress,andweexpectfurtherimprovementsintheyearstocome,mainlyastheresultofthemodernisationprojectatSyktyvkar.
CO2 from fossil fuels*†
Energy sources 2007
Chemical oxygen demand emission
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0ton
ne
s/a
nn
um
25
20
15
10
5
02005 2006
TSR graph of Mondi plcand FTSE All-Share Index
120
110
100
90
80
70
60
TS
R
Date03.07.2007 03.07.2007
Mondi plc FTSE All-share Index
TSR gand J
120
110
100
90
80
70
60
TS
R
03.07
Energy usage*†
140,000
142,000
144,000
146,000
148,000
150,000
152,000
154,000
156,000
Number of occupational health disease cases
0
5
10
15
20
25
30
35
40
45
50
0
500
1,000
1,500
2,000
2,500
3,000
4,400
4,500
4,600
4,700
4,800
4,900
5,000
5,100
5,200
5,300
Waste water flow*†
215,000
220,000
225,000
230,000
235,000
240,000
245,000
Chemical oxygen demand*†
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Water for primary activities in water-stressed countries such as South Africa and Israel*†
AOX*†
0
50
100
150
200
250
300
350
400
450
500
Particulate emissions*† Waste to landfill*†
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Total reduced sulphides*†°
0
50
100
150
200
250
300
350
400
450
tonnes/
ann
um
kg/t
onne p
rodu
ct
tonnes/
ann
um
kg/t
onne p
rodu
ct
tonnes/
ann
um
kg/t
onne p
rodu
ct
ton
nes/
an
nu
m
GJ/t
on
ne p
rod
uct
’00
0 G
J/a
nn
um
Number of fatalities*
0
1
2
3
4
5
6
7
8
Lost-time injury frequency rate*
0.00
0.125
0.250
0.375
0.500
LTIF
R
SO2 emissions at the Merebank mill
tonnes
’00
0 t
on
nes/
an
nu
m
’00
0m
3/a
nn
um
m3/t
on
ne p
rod
uct
ton
nes/
ton
ne p
rod
uct
ton
nes/
an
nu
m
kg/t
on
ne p
rod
uct
kg/t
on
ne p
rod
uct
’00
0m
3/a
nn
um
m3/t
on
ne p
rod
uct
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
23
24
25
32.0
33.0
34.0
35.0
36.0
37.0
38.0
39.0
40.0
41.0
0.0
5.0
10.0
15.0
20.0
25.0
0.00
0.01
0.02
0.03
0.05
0.04
0.07
0.06
0.00
0.02
0.01
0.03
0.04
0.05
0.07
0.06
0.08
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0
10
20
30
40
50
60
70
80
0.68
0.70
0.72
0.74
0.76
0.78
0.80
0.82
0.84
0.86
0.88
20
21
22
23
24
25
26
27
2005 2006 2007
2005 2006 2007 2005 2006 2007 2005 2006 2007 20052004 2006 2007
2005 2006 20072005 2006 20072005 2006 2007 2004 2005 2006 2007
2004 2005 2006 20072004 2005 2006 20072004 2005 2006 20072004 2005 2006 2007
CO2 from fossil fuels*†
Energy sources 2007
Chemical oxygen demand emission
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0ton
ne
s/a
nn
um
25
20
15
10
5
02005 2006
TSR graph of Mondi plcand FTSE All-Share Index
120
110
100
90
80
70
60
TS
R
Date03.07.2007 03.07.2007
Mondi plc FTSE All-share Index
TSR gand J
120
110
100
90
80
70
60
TS
R
03.07
Energy usage*†
140,000
142,000
144,000
146,000
148,000
150,000
152,000
154,000
156,000
Number of occupational health disease cases
0
5
10
15
20
25
30
35
40
45
50
0
500
1,000
1,500
2,000
2,500
3,000
4,400
4,500
4,600
4,700
4,800
4,900
5,000
5,100
5,200
5,300
Waste water flow*†
215,000
220,000
225,000
230,000
235,000
240,000
245,000
Chemical oxygen demand*†
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Water for primary activities in water-stressed countries such as South Africa and Israel*†
AOX*†
0
50
100
150
200
250
300
350
400
450
500
Particulate emissions*† Waste to landfill*†
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Total reduced sulphides*†°
0
50
100
150
200
250
300
350
400
450
ton
nes/
an
nu
m
kg/t
on
ne p
rod
uct
ton
nes/
an
nu
m
kg/t
on
ne p
rod
uct
ton
nes/
an
nu
m
kg/t
on
ne p
rod
uct
ton
nes/
an
nu
m
GJ/t
on
ne p
rod
uct
’00
0 G
J/a
nn
um
Number of fatalities*
0
1
2
3
4
5
6
7
8
Lost-time injury frequency rate*
0.00
0.125
0.250
0.375
0.500
LTIF
R
SO2 emissions at the Merebank mill
ton
nes
’00
0 t
on
nes/
an
nu
m
’00
0m
3/a
nn
um
m3/t
on
ne p
rod
uct
ton
nes/
ton
ne p
rod
uct
ton
nes/
an
nu
m
kg/t
on
ne p
rod
uct
kg/t
on
ne p
rod
uct
’00
0m
3/a
nn
um
m3/t
on
ne p
rod
uct
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
23
24
25
32.0
33.0
34.0
35.0
36.0
37.0
38.0
39.0
40.0
41.0
0.0
5.0
10.0
15.0
20.0
25.0
0.00
0.01
0.02
0.03
0.05
0.04
0.07
0.06
0.00
0.02
0.01
0.03
0.04
0.05
0.07
0.06
0.08
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0
10
20
30
40
50
60
70
80
0.68
0.70
0.72
0.74
0.76
0.78
0.80
0.82
0.84
0.86
0.88
20
21
22
23
24
25
26
27
2005 2006 2007
2005 2006 2007 2005 2006 2007 2005 2006 2007 20052004 2006 2007
2005 2006 20072005 2006 20072005 2006 2007 2004 2005 2006 2007
2004 2005 2006 20072004 2005 2006 20072004 2005 2006 20072004 2005 2006 2007
CO2 from fossil fuels*†
Energy sources 2007
Chemical oxygen demand emission
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0ton
ne
s/a
nn
um
25
20
15
10
5
02005 2006
TSR graph of Mondi plcand FTSE All-Share Index
120
110
100
90
80
70
60
TS
R
Date03.07.2007 03.07.2007
Mondi plc FTSE All-share Index
TSR gand J
120
110
100
90
80
70
60
TS
R
03.07
Energy usage*†
140,000
142,000
144,000
146,000
148,000
150,000
152,000
154,000
156,000
Number of occupational health disease cases
0
5
10
15
20
25
30
35
40
45
50
0
500
1,000
1,500
2,000
2,500
3,000
4,400
4,500
4,600
4,700
4,800
4,900
5,000
5,100
5,200
5,300
Waste water flow*†
215,000
220,000
225,000
230,000
235,000
240,000
245,000
Chemical oxygen demand*†
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Water for primary activities in water-stressed countries such as South Africa and Israel*†
AOX*†
0
50
100
150
200
250
300
350
400
450
500
Particulate emissions*† Waste to landfill*†
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Total reduced sulphides*†°
0
50
100
150
200
250
300
350
400
450
tonnes/
ann
um
kg/t
onne p
rodu
ct
tonnes/
ann
um
kg/t
onne p
rodu
ct
tonnes/
ann
um
kg/t
onne p
rodu
ct
ton
nes/
an
nu
m
GJ/t
on
ne p
rod
uct
’00
0 G
J/a
nn
um
Number of fatalities*
0
1
2
3
4
5
6
7
8
Lost-time injury frequency rate*
0.00
0.125
0.250
0.375
0.500
LTIF
R
SO2 emissions at the Merebank mill
tonnes
’00
0 t
on
nes/
an
nu
m
’00
0m
3/a
nn
um
m3/t
on
ne p
rod
uct
ton
nes/
ton
ne p
rod
uct
ton
nes/
an
nu
m
kg/t
on
ne p
rod
uct
kg/t
on
ne p
rod
uct
’00
0m
3/a
nn
um
m3/t
on
ne p
rod
uct
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
23
24
25
32.0
33.0
34.0
35.0
36.0
37.0
38.0
39.0
40.0
41.0
0.0
5.0
10.0
15.0
20.0
25.0
0.00
0.01
0.02
0.03
0.05
0.04
0.07
0.06
0.00
0.02
0.01
0.03
0.04
0.05
0.07
0.06
0.08
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0
10
20
30
40
50
60
70
80
0.68
0.70
0.72
0.74
0.76
0.78
0.80
0.82
0.84
0.86
0.88
20
21
22
23
24
25
26
27
2005 2006 2007
2005 2006 2007 2005 2006 2007 2005 2006 2007 20052004 2006 2007
2005 2006 20072005 2006 20072005 2006 2007 2004 2005 2006 2007
2004 2005 2006 20072004 2005 2006 20072004 2005 2006 20072004 2005 2006 2007
CO2 from fossil fuels*†
Energy sources 2007
Chemical oxygen demand emission
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0ton
ne
s/a
nn
um
25
20
15
10
5
02005 2006
TSR graph of Mondi plcand FTSE All-Share Index
120
110
100
90
80
70
60
TS
R
Date03.07.2007 03.07.2007
Mondi plc FTSE All-share Index
TSR gand J
120
110
100
90
80
70
60
TS
R
03.07
Energy usage*†
140,000
142,000
144,000
146,000
148,000
150,000
152,000
154,000
156,000
Number of occupational health disease cases
0
5
10
15
20
25
30
35
40
45
50
0
500
1,000
1,500
2,000
2,500
3,000
4,400
4,500
4,600
4,700
4,800
4,900
5,000
5,100
5,200
5,300
Waste water flow*†
215,000
220,000
225,000
230,000
235,000
240,000
245,000
Chemical oxygen demand*†
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Water for primary activities in water-stressed countries such as South Africa and Israel*†
AOX*†
0
50
100
150
200
250
300
350
400
450
500
Particulate emissions*† Waste to landfill*†
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Total reduced sulphides*†°
0
50
100
150
200
250
300
350
400
450
tonnes/
ann
um
kg/t
onne p
rodu
ct
tonnes/
ann
um
kg/t
onne p
rodu
ct
tonnes/
ann
um
kg/t
onne p
rodu
ct
ton
nes/
an
nu
m
GJ/t
on
ne p
rod
uct
’00
0 G
J/a
nn
um
Number of fatalities*
0
1
2
3
4
5
6
7
8
Lost-time injury frequency rate*
0.00
0.125
0.250
0.375
0.500
LTIF
R
SO2 emissions at the Merebank mill
tonnes
’00
0 t
on
nes/
an
nu
m
’00
0m
3/a
nn
um
m3/t
on
ne p
rod
uct
ton
nes/
ton
ne p
rod
uct
ton
nes/
an
nu
m
kg/t
on
ne p
rod
uct
kg/t
on
ne p
rod
uct
’00
0m
3/a
nn
um
m3/t
on
ne p
rod
uct
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
23
24
25
32.0
33.0
34.0
35.0
36.0
37.0
38.0
39.0
40.0
41.0
0.0
5.0
10.0
15.0
20.0
25.0
0.00
0.01
0.02
0.03
0.05
0.04
0.07
0.06
0.00
0.02
0.01
0.03
0.04
0.05
0.07
0.06
0.08
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0
10
20
30
40
50
60
70
80
0.68
0.70
0.72
0.74
0.76
0.78
0.80
0.82
0.84
0.86
0.88
20
21
22
23
24
25
26
27
2005 2006 2007
2005 2006 2007 2005 2006 2007 2005 2006 2007 20052004 2006 2007
2005 2006 20072005 2006 20072005 2006 2007 2004 2005 2006 2007
2004 2005 2006 20072004 2005 2006 20072004 2005 2006 20072004 2005 2006 2007
* Pleasenotethisgraphincludesdataforourenvironmentallymaterialoperationsonly.
† BaselinedatahasbeenadjustedtoincludedatafromStambolijskiandMondiShandukaNewsprint.
• Dataincludesenergysuppliedtothirdpartiesandthusspecificfiguresareslightlyoverstated.
° TheSyktyvkarmillhasonlyreporteditsH2Sandmethylmercaptans,whichaccountfor80%ofthemill’stotalTRSemissions.TheŚwieciemillhascalculateditsTRSemissionsbasedonaveragesofsamplestakenatvariousintervals.Thiscouldleadtosomeinaccuraciesinthenumbersreported.
Year-on-year progress
Theongoinginvestmentprogrammesatouroperationsaresuccessfullycontributingtoyear-on-yearprogressonbothfronts.
TogetherwithAOX,chemicaloxygendemand(COD)isoneofthetwomostsignificantwastewaterloadsemittedduringourprocesses.Theseare,therefore,twopriorityinvestmentareasforMondi,andtargetsareinplaceacrosstheGrouptohelpusachievesignificantreductionsinwastewatereffluentlevels.
GroupspecificGrouptotal
These notes refer to the graphs on pages 30 and 31.
32 Mondi Group Sustainabilityreport2007
Case studyClosing and sealing sludge ponds at SyktyvkarWhenwepurchasedtheSyktyvkarpulpandpapermillin2002,sludgepondshadbeeninconstantusesincetheearly1970s.Oneearlydecisionwetookwastoceaseusingthemill’s24-hectarenetworkofwastewatersludgeponds.In2007,wecompletedasuccessfulrehabilitationproject,coveringthepondswithinertmaterialsmadeupofexcessbark,whichsealsthedeposits.
Focusing on the landfill challengeWastedisposaliscomplexforMondi,mademoresobyouroperationsinmanydifferentcountriesandjurisdictions,whichcanhavedifferentwasteclassificationregimes.
Acrossthebusiness,therearetwoquiteseparatewastemanagementpriorities–disposaloftheby-productsofourproduction,anddisposalofourproductsoncetheyhavebeenusedbyconsumers.Seepage35foradescriptionofhowweorganisethecollectionofpaperinSouthAfricaforre-useinourmills.
Reducing landfill volumes
Thedisposalofgreenliquorsludge,createdinthepulpproductionprocessisachallenge.FindingasolutionisamajorfocusareaforMondi.Wearealsoundertakingconstantreviewsofalllandfilloperationstoensuretheirsafety,withaparticularemphasisonthequalityofnearbygroundwater.
InSouthAfrica,ashfromthecoalburningprocessaccountsformostofthewastethatislandfilled.TheMerebankandRichardsBaymillsaccountfor35%oftheGroup’stotalsolidwastethatissenttolandfill.Severalprojectsandinvestigationsareongoingatthesemillstofindalternativeusesforthewasteandtominimiselandfill.
Carefulmanagementcontinuestoachieveprogressivereductionsinwastetolandfill.In2007,wesuccessfullyachievedour20%reductiontargetbyreducingthisnumberto366,893tonnes.Inparticular,significantreductionshavebeenachievedatourSyktyvkarandŚwieciemills.AtSyktyvkar,solidwastelevelshavebeenreducedby86%from2005levelsasaresultofthecontinuingeffortstorehabilitateitssludgeponds.TheŚwieciemillinPolandhasreduceditssolidwastelevelsby79%inthesameperiod.Themill’ssuccesscanbeattributedtoseekingalternativewastemanagementoptions.Infact,themillsuccessfullydiscontinuedallwastetolandfillduringthesecondhalfof2007.
CO2 from fossil fuels*†
Energy sources 2007
Chemical oxygen demand emission
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0ton
ne
s/a
nn
um
25
20
15
10
5
02005 2006
TSR graph of Mondi plcand FTSE All-Share Index
120
110
100
90
80
70
60
TS
R
Date03.07.2007 03.07.2007
Mondi plc FTSE All-share Index
TSR gand J
120
110
100
90
80
70
60
TS
R
03.07
Energy usage*†
140,000
142,000
144,000
146,000
148,000
150,000
152,000
154,000
156,000
Number of occupational health disease cases
0
5
10
15
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50
0
500
1,000
1,500
2,000
2,500
3,000
4,400
4,500
4,600
4,700
4,800
4,900
5,000
5,100
5,200
5,300
Waste water flow*†
215,000
220,000
225,000
230,000
235,000
240,000
245,000
Chemical oxygen demand*†
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Water for primary activities in water-stressed countries such as South Africa and Israel*†
AOX*†
0
50
100
150
200
250
300
350
400
450
500
Particulate emissions*† Waste to landfill*†
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Total reduced sulphides*†°
0
50
100
150
200
250
300
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450
ton
nes/
an
nu
m
kg/t
on
ne p
rod
uct
ton
nes/
an
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m
kg/t
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ne p
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uct
ton
nes/
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nu
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ne p
rod
uct
ton
nes/
an
nu
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ne p
rod
uct
’00
0 G
J/a
nn
um
Number of fatalities*
0
1
2
3
4
5
6
7
8
Lost-time injury frequency rate*
0.00
0.125
0.250
0.375
0.500
LTIF
R
SO2 emissions at the Merebank mill
ton
nes
’00
0 t
on
nes/
an
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on
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ne p
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uct
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
0
5,000
10,000
15,000
20,000
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30,000
35,000
40,000
45,000
50,000
23
24
25
32.0
33.0
34.0
35.0
36.0
37.0
38.0
39.0
40.0
41.0
0.0
5.0
10.0
15.0
20.0
25.0
0.00
0.01
0.02
0.03
0.05
0.04
0.07
0.06
0.00
0.02
0.01
0.03
0.04
0.05
0.07
0.06
0.08
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0
10
20
30
40
50
60
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80
0.68
0.70
0.72
0.74
0.76
0.78
0.80
0.82
0.84
0.86
0.88
20
21
22
23
24
25
26
27
2005 2006 2007
2005 2006 2007 2005 2006 2007 2005 2006 2007 20052004 2006 2007
2005 2006 20072005 2006 20072005 2006 2007 2004 2005 2006 2007
2004 2005 2006 20072004 2005 2006 20072004 2005 2006 20072004 2005 2006 2007
* Pleasenotethisgraphincludesdataforourenvironmentallymaterialoperationsonly.
† BaselinedatahasbeenadjustedtoincludedatafromStambolijskiandMondiShandukaNewsprint.
Reducing SO2 emissions
SignificantimprovementsinSO2emissions,emittedduringfuelcombustionandenergyconversion,during2007sawusreduceourannualtonnagefrom6,831tonnesto5,615tonnesfromthepreviousyear.
First,bychangingthefuelusedtopowerapapermachineinourIsraelioperationsfromheavyfueloiltonaturalgas(whichhasaverylowsulphurcontent)wehavereducedthemill’sSO2emissionsby25%fromthe2006levels.Anda21%reductionhasalsobeenachievedoverthesameperiodattheRichardsBaymillbyreducingourconsumptionofblackcoalandincreasingtheuseofnaturalgas.
Buildingontheseachievements,wehavebeentargetingsignificantSO2reductionsatourMerebankmill,wherewearealsoduetoinstallalow-NOxburner.Furtherimprovementsby28%inSO2emissionshavebeenreportedatthemillin2007,fromthe2006levels.Thisisduetotheongoingeffectsofthefluegasdesulphurisationequipmentwhichwasinstalledinthemill’scoalboilersinApril2005.
CO2 from fossil fuels*†
Energy sources 2007
Chemical oxygen demand emission
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0ton
ne
s/a
nn
um
25
20
15
10
5
02005 2006
TSR graph of Mondi plcand FTSE All-Share Index
120
110
100
90
80
70
60
TS
R
Date03.07.2007 03.07.2007
Mondi plc FTSE All-share Index
TSR gand J
120
110
100
90
80
70
60
TS
R
03.07
Energy usage*†
140,000
142,000
144,000
146,000
148,000
150,000
152,000
154,000
156,000
Number of occupational health disease cases
0
5
10
15
20
25
30
35
40
45
50
0
500
1,000
1,500
2,000
2,500
3,000
4,400
4,500
4,600
4,700
4,800
4,900
5,000
5,100
5,200
5,300
Waste water flow*†
215,000
220,000
225,000
230,000
235,000
240,000
245,000
Chemical oxygen demand*†
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Water for primary activities in water-stressed countries such as South Africa and Israel*†
AOX*†
0
50
100
150
200
250
300
350
400
450
500
Particulate emissions*† Waste to landfill*†
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Total reduced sulphides*†°
0
50
100
150
200
250
300
350
400
450
ton
nes/
an
nu
m
kg/t
on
ne p
rod
uct
ton
nes/
an
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uct
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ton
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an
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ne p
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uct
’00
0 G
J/a
nn
um
Number of fatalities*
0
1
2
3
4
5
6
7
8
Lost-time injury frequency rate*
0.00
0.125
0.250
0.375
0.500
LTIF
R
SO2 emissions at the Merebank mill
ton
nes
’00
0 t
on
nes/
an
nu
m
’00
0m
3/a
nn
um
m3/t
on
ne p
rod
uct
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nes/
ton
ne p
rod
uct
ton
nes/
an
nu
m
kg/t
on
ne p
rod
uct
kg/t
on
ne p
rod
uct
’00
0m
3/a
nn
um
m3/t
on
ne p
rod
uct
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
23
24
25
32.0
33.0
34.0
35.0
36.0
37.0
38.0
39.0
40.0
41.0
0.0
5.0
10.0
15.0
20.0
25.0
0.00
0.01
0.02
0.03
0.05
0.04
0.07
0.06
0.00
0.02
0.01
0.03
0.04
0.05
0.07
0.06
0.08
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0
10
20
30
40
50
60
70
80
0.68
0.70
0.72
0.74
0.76
0.78
0.80
0.82
0.84
0.86
0.88
20
21
22
23
24
25
26
27
2005 2006 2007
2005 2006 2007 2005 2006 2007 2005 2006 2007 20052004 2006 2007
2005 2006 20072005 2006 20072005 2006 2007 2004 2005 2006 2007
2004 2005 2006 20072004 2005 2006 20072004 2005 2006 20072004 2005 2006 2007
GroupspecificGrouptotal
These notes refer to the graphs on page 32.
Environmental performancecontinued
www.mondigroup.com Sustainabilityreport2007 Mondi Group 33
Product stewardship
Summary
Theproductswemanufacturehelpsocietyinmanyways.Buttheprocessesinvolved–fromharvestingrawmaterialstoultimatedisposal–haveanenvironmentalimpactthatwearedeterminedtominimise.
Hereweexplainsomeoftheissuesinvolved,andhowaresponsibleapproachtotheproductlifecyclecanenableconsumerstomakesustainablepurchasingdecisions.
Moreinformationisavailableat:www.mondigroup.com
Page 34 Product lifecycle Page 34 Rising to the packaging challenge
Policy At Mondi, product steward- ship means the integrated management of environmental, safety and health factors throughout all stages of our product lifecycle.
Stocks of mother reel in Mondi’s fully-automated warehouse at Hausmening in Austria.
34 Mondi Group Sustainabilityreport2007
Product lifecycleTheproductswemanufactureanddistributeareeconomicallyandsociallysignificant.
Paperispossiblytheworld’smostwidelydistributedproduct,whilepackagingisakeycomponentofmodernlifestylewithmanyuses.Byprotectingourcustomers’productsfromdamage,fromtheirplaceofmanufacture,throughdistributionnetworksandsalesoutletsintopeople’shomesorworkplaces,packagingcontributestoproductandconsumersafety.
Fromgrowing,harvestingandpurchasingourrawmaterials,throughourindustrialproductionprocessestobrandinganddistribution,wearecommittedtoprovidingourcustomerswiththeproductstheyneedatthelowestpossiblefinancial,environmentalandsocialcosts.
Wehaveinplacearangeofsystemsthatseektoreducetheenvironmentalimpactofourproducts.Theseincludesustainableforestrypractices,acommitmenttoconstantlyimprovingtheenvironmentalperformanceofourplants,recyclinginitiatives,globalemploymentstandardsandintegratedsupportprogrammesforthecommunitiesinwhichweoperate.
Paper – a growing market
Despitewidespreadpredictionsofthelikelyimpactofinformationtechnologyonofficepaperusage,thedemandforpaperproductscontinuestogrowthroughoutourmainmarkets.InwesternEurope,forexample,annualgrowthin2007was3.5%,whileincentralandeasternEuropeitstoodat8%.
Thesearenotableratesbyanystandards,drivenbyashiftintheuseofpaperawayfrombeingamaterialwhichpeoplefiletostoreinformation.Nowpaperisalive
mediumusedtocaptureworkinprogress.Aseconomiesgrow,theuseofpaperintheworkplacegrowsalongsideit,meaningthattheongoingdevelopmentoftheemergingmarketsweservegivesusastrongplatformforprogress.
The role of sustainability
Assessingthesustainabilitypracticesofasupplierhasbecomeastandardelementofprocurementpracticeamonglargebusinesses,forgovernmentcontractsinparticular.Theabilitytodemonstratethatwearetakingstepsacrossabroadrangeofsustainabilityissuesisthereforeimportantbothinwinningsuchbusinessandindemonstratingourcredentialstocurrentandpotentialinvestors.
Ourmainattentioniscurrentlyonfocusareascoveredelsewhereinthisreport,includingrecycling(seetheSouthAfricacasestudyonthenextpage),forestry,productionand–springingfromallthese–certification.
Promoting sustainability
Ourfocusneedstobeoncommunicationtomakeconsumersawareofthetruemeaningofcertification.Thiswillgivethemtheabilitytochoosebrandsdeliberatelyfromresponsiblemanufacturers–thosethatpayattentiontoreducingtheimpactoftheirproductsacrossthefulllifecycle.Thesuccessofour‘GreenRange’businesspaperproductsmakesitclearthat,inwesternEuropeatleast,someconsumersarepreparedtopayapremiumforsustainablymanufacturedproducts.
ThechallengeforusnowistooverlaysustainablepracticesonasmanyaspectsoftheMondibusinessaspossible,whichwehopewillinturnhelppromotesustainablepracticesinthepaperindustryasawhole.Webelievethiswillcontributetothemainstreamingofsustainable
practicesandproductsintonormalcommercialactivityandofferconsumersmorechoice.
Rising to the packaging challengeInourpackagingbusinesses,themainchallengewefaceishowtocontinueimprovingproductandconsumerprotectionwhileconsistentlydrivingdownthecostsofouroperations.
ThisinvolvesasensitivebalancingactforMondi.Financialconsider-ationsandeffortstoreduceoverpackagingarecausingmanyofourcustomerstodemandconstantreductionsintheweightandcostoftheirpackaging,whichinturncandeliverenvironmentalgains.
Growthingreenprocurementpracticesisafundamentalissueforus,andweareconcentratingonensuringthatwecanconsistentlymeetthisfast-developingneed.Wemustalwaysensurethatthesolutionsweproduceremainsufficientlyrobusttoprotectproperlytheproductstheycontain–whichalmostinvariablyrepresentahigherfinancialandenvironmentalcostthantheirpackaging.
Thisiswheretheroleofproductinnovationfitsin.OneofourResearchandDevelopmentcentres,basedinKorneuburginAustria,isdedicatedtoinnovationacrossourcoatingandreleaseandflexiblepackagingbusiness,butcanalsoprovideservicestootherpartsoftheGroup.
ManyMondibreakthroughshaveemergedfromtheInnovationCentresinrecentyears,includingtherevolutionarysingle-plyOneBag(onwhichwehavereportedinthepast).
MorerecentdevelopmentsincludetheAirstreamBag,withitsuniquede-aerationsystemforhigh-speedfillingandimprovedproductshelf-life,andtheAqualinermoistureprotectionbarrier,replacingtheuseofnon-renewablepetroleumproductswithacost-effective,sustainablelinerboard.
Othernewprocessesandproducts–suchasgreateruseofrecycledmaterialsinourcorrugatedbusiness,thinnersealantfilmsforfoodproductsandtheuseofauniquenewtemperature-sensitiveinkthatcanshowifachilledorfrozenproducthasbecometoowarm–areallalsocontributingtoreducedenvironmentalimpactandimprovedconsumersafety.
Case study Innovating for better product safetyOurfocusoninnovationextendsbeyondourproductstotheprocessesweuseintheirproduction,seekingconstantlytofindthesafestandmosteffectivesolutions.Asanexample,wehaverecentlymadeamajorinvestmentinourZeltwegconvertingplantinAustria,intheformofanadvancedimagingsystemthatpicksupdefectsinthecoatingmaterialsweproduce.Whenitspotsadefect,thesystemautomaticallystopsthemachineandremovesthesub-standardsectiontoprovideevenhigherqualitystandards.
Product stewardshipHelpingconsumersbuyresponsibly
www.mondigroup.com Sustainabilityreport2007 Mondi Group 35
Case study Businesses built on used paperBylaunchingsome130usedpaper‘buy-back’centresthroughoutSouthAfrica,Mondiiscontributingtoatidiercountry,ismaximisingtheuseofreclaimedfibreinitsoperations,andhashelpedcreatesome3,000directandindirectjobs.
Abuy-backcentreacceptsandsortscollectedanddonatedpaperandcardboardthathasbeenbought,usedanddiscardedbytheconsumer,beforesupplyingitbacktoMondiforreuse.
In1999,Mondifirstdevelopedtheconceptofapproachingcouncilstogiveusunusedlandtouseasarecyclingcentre.Wewouldthenidentifyasuitableblackentrepreneurtorunitashisownbusiness,whowouldthenberesponsibleforemployingon-sitestaffandateamofindependenttraderstocollectwastepaper.
Inaddition,werecruitedateamofdriverstomakekerbsidecollections–subsequently,thesepeoplehavebecomeself-employed,andmanyhaveboughtsecondandeventhirdvehiclesastheirbusinessesexpand.
Whiletheconceptpreciselymatchescurrentlegislativerequirements,itpredatestheBroad-BasedBlackEconomicEmpowerment(BBBEE)Actbysomeyears.IthasalsomadeussignificantlythelargestrecyclerinourindustryinSouthAfrica,responsibleforthecollectionof380,000tonnesofwastepaperperyearoutofanationaltotalof935,000tonnes.
Andit’sgoodbusinessforus–thecostoffibresourcedinthiswayislowerthanthatfromourplantations.
Part of the product lifecycle
Developmentsshowthatitisincreasinglydifficult(andundesirable)tolookatpackagingissuesinisolationfromtheproductstheyprotect.Inourview,andinlinewitheco-designguidelines,theyshouldbeseenassharingthesameoveralllifecycle,becausethepackagingonlyexiststoenhancethequality,durability,safetyandsaleabilityoftheproduct.
AtMondi,wearekeentohelpdrivethisperceptionmorewidely,amongthemanufacturersandothercustomersweworkforaswellastheend-consumer.ThisisbeingenabledbythegrowingsophisticationofmeanstomeasureandcomparetheoverallenvironmentalperformanceofdifferentproductgroupsthroughtoolsliketheGaBilifecycleassessmentsoftwaresystem.Widelyusedinourcorrugatedbusiness,thissupportsrecycling-orientateddesignbyhelpingusintegratethefulllifecycleoftheproductanditspackaging.
A focus on food
Inareaslikefoodforhumanconsumption,packaginghasgainedincreasingsignificanceinrecentyearsthroughthepopularityofconveniencefood.Essentially,itisthepackagingwhichgivestheproductmuchofitsprimaryvaluetotheconsumer,particularlyintermsofhygieneandshelf-life.
Forthisreason,wehavecommittedtogobeyondthelegislativerequirementsofEuropeanUnion(EU)foodhygienerules,whichcompelustooperatetheGoodManagementPracticequalityassurancesystemthatpromotesfoodsafetyandhygiene.
ForMondi,sourcingrecoveredmaterialforre-useinwesternEuropeisnotdifficultattherightprice.Forexample,ChiemgauRecyclingatourRaublingmillinBavaria,Germany,haslong-termcommunitywastecollectioncontractsthatgiveustheassuranceofsupplyweneed.
Forthisreason,wehavebeenabletomakeappropriateinvestmentsthatensureourproductionsitesarefullyequippedtoprocessrecoveredfibre.ThisisnotyetthecaseinmanyemergingEuropeancountries,wherethereliabilityofsupplyisnotyetsufficientlydevelopedtobethebasisforefficientproduction.
Wehavestartedtoinvestinthisarea,however,inpreparationforamorerobustsupply.TheseincludemajorinvestmentsinacollectioninfrastructureatourPolishmillinŚwiecie,wherewearealsobuyingtheequipmentweneedtoprocesstherecoveredfibre.
In2007,nearly1,000Mondiemployeesworldwideweredirectlyinvolvedinouroperationstorecoverfibre,andweexpectthisfiguretoriseinyearstocomeasrecoveredfibrefurtherincreasesinimportanceasanessentialelementofourbusiness.
By2010,therefore,allofourplantsproducingpackagingforhumanfoodwillhaveachievedoneoftwoformsofaccreditation.TheseareHazardAnalysisCriticalControlPointscertification,aninternationallyrecognisedsystemforfoodsafetymanagement,andtheBritishRetailConsortiumandInstituteofPackaging’s(BRC/IOP)technicalstandardandprotocolthatsetsfoodpackagingqualityforretailer-brandedproducts.
Together,thesetwoschemescertifythatwehaveaddressedallrelevantregulationscoveringfoodhygiene.Todate,some25ofthe40Mondiplantsthatneedithavealreadyachievedfullcertification,andworkcontinuesontheremaining15.
Using more recovered fibre
ForMondi,recoveredfibreisnotwaste–it’savitalrawmaterial,particularlyinourcorrugatedbusiness.Everypieceoffibrecanbereuseduptoseventimesbeforeitbecomestoodegraded,andevende-inkednewsprintcanbeuseduptofourtimes.Weestimatethatusingrecoveredfibrehasjust20%oftheenvironmentalimpactofusingvirginfibre.
Wearethereforeconcentratingsignificanteffortonensuringthatwerecoverandre-useasmuchaswecan.In2007,weusedsome1.7milliontonnesofrecoveredfibrethroughoutourbusinesses,1.3milliontonnesinourEuropeanoperationsalone.
InwesternEurope,recyclinghasbecomeanestablishedelementofbusinessandhouseholdculture.ThesituationisdifferentinemergingEurope,whereratesvaryfromaround40%incountrieslikePolandandSlovakiatoalmostnon-existentinBulgariaandRomania.
36 Mondi Group Sustainabilityreport2007
Summary
Asafeworkingenvironmentandopportunitiestolearnandprogresswithinourbusinessarebothfundamentalaspectsoftreatingouremployeesresponsiblyandfairly.
Thissectiondescribeshowwearecontinuouslyseekingtogiveourpeoplethebestworkingconditionswecan,particularlythosewhoworkinhigherriskactivities.
Moreinformationisavailableat:www.mondigroup.com
Page 39 The nine safety rules to live by
Social responsibility employees
Policy Protecting the health, safety and security of our employees and those who work on our behalf is a core value for Mondi. We believe in zero-harm work-places, where all incidents are preventable.
Page 39 Implementing global employment standards
At this nursery in South Africa, nurturing seedlings is the beginning of the whole process.
www.mondigroup.com Sustainabilityreport2007 Mondi Group 37
At any Board or DLC executive committee meeting, our safety performance is always the first item on the agenda.
This is a critical aspect of our Group-wide zero-harm value that commits us to ensuring that processes are in place in every part of the business to prevent any injury to our employees, contractors or service providers.
2007 was sadly marred by the deaths of three contractors in separate incidents while working on Mondi business, two in our South African forestry operations and one in our Moroccan converting plant. We hold the firm belief that fatalities are totally unacceptable. We always seek to learn lessons from such events, and ensure that all our people are made fully aware of and follow our safety rules at all times. In all three incidents, following detailed investigations into the events, very specific actions were taken to prevent recurrences.
Learning from incidents
Indeed,afteranylost-timeinjury(LTI)incidentanimmediateincidentnotificationissenttomanagementannouncingwhathashappened.Thisisdistributedtoallrelevantemployeesandcontractors,followedbyamoredetailedreportthathighlightstheissuesinvolvedaswellascausesandlearningpoints.
Afterafatality,ourinvestigationsareevenmoredetailed,oftenresultinginchangestopoliciesorpractices.Wetakeadditionalactions;forexample,followingthedeathofacontractorinvolvedinafire-fightingactivityinoneofourSouthAfricanplantations,weimmediatelyengagedthecountry’sleadingexpertonforestfireprotectiontoconductareviewandmakesafetyrecommendations,whichwereimplemented.
Nine Safety Rules
AnimportantdevelopmentduringtheyearwasthereplacementofoursixGoldenRuleswithasetofnineSafetyRules,includinganewoneespeciallycreatedforcontractorsworkinginforestryoperations.TheseSafetyRulesaddressthekeyfatalityrisksinouroperations,coveringthetopicslistedonpage39.
Asasignificantpartofoursafetyrequirements,wealsostartedaGroup-widefocusonthefourmainareasthatwehaveidentifiedascriticaltoimprovingoursafetyrecord–people,process,emergencypreparation&responseandcrisismanagement.
Allourglobaloperationstookpartinthisexerciseduring2007,carryingoutaself-assessmentauditofthe‘people’element.During2008wewillimplementanactionplantoaddressallareasofconcern,andconductatallsitesanauditofthe‘process’elements.
Building on better communication
WeusethecommonlyappliedLostTimeInjury(LTI)FrequencyRate(LTIFR),comprisingthenumberofLTIsmultipliedbyafactorof200,000dividedbythetotalman-hoursworkedacrosstheentireGroupduringtheyear.
ThenewSafetyRulesandaudits,aswellasotherhealthandsafetyauditsandtrainingforallourofficeandproductionstaff,meantthatin2007wewereinextensivecommunicationwithallouroperationsthroughouttheworld.Webelievethatthisregularcontact,whichcontinuouslyhighlightssafetyissues,isanimportantreasonwhyourLTIrecordsawamarkedimprovementoverpreviousyears.
Whileprogresshasbeenencouraging,ourzero-harmcommitmentmakesanyinjuryunacceptable.Weare,therefore,activeinmanyareasthroughoutthebusiness,addressinganyemergingsafetyissuesthroughtheprovisionofeducation,trainingand,whereappropriate,modifiedornewequipment.
Forexample,inourproductionplantsweuseananalysisofpastLTIstoidentifythemainareasforattention.In2008wewillconcentrateonmobileplantandequipment,andhandinjuriesrelatingtomovingmachinery,astwoprimaryfocusareas,whichbetweenthemwereinvolvedin41outofthetotalof125LTIsin2007.
Measuring near misses
TohelpidentifyfurtherthemaincausesofLTIswehavealsobeenundertakingdetailedanalysesof‘nearmisses’–thoseincidentsthatwereavoidedmorebyluckthanjudgement–inandaroundouroperations.
However,itbecameobvioustousin2007thatthecomplexityofnearmissreportingwasreducingthenumberofreportsreceivedbymanagement,sowearenowsimplifyingtheprocess.Thenumberofreportsreceivedinplantsusingthenewsystemhasrisenbymorethan40%overthe2006figure,givingusbetterdataonwhichtobaseouractions.
Workingtowardssafety,fairnessandprogress
CO2 from fossil fuels*†
Energy sources 2007
Chemical oxygen demand emission
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0ton
ne
s/a
nn
um
25
20
15
10
5
02005 2006
TSR graph of Mondi plcand FTSE All-Share Index
120
110
100
90
80
70
60
TS
R
Date03.07.2007 03.07.2007
Mondi plc FTSE All-share Index
TSR gand J
120
110
100
90
80
70
60
TS
R
03.07
Energy usage*†
140,000
142,000
144,000
146,000
148,000
150,000
152,000
154,000
156,000
Number of occupational health disease cases
0
5
10
15
20
25
30
35
40
45
50
0
500
1,000
1,500
2,000
2,500
3,000
4,400
4,500
4,600
4,700
4,800
4,900
5,000
5,100
5,200
5,300
Waste water flow*†
215,000
220,000
225,000
230,000
235,000
240,000
245,000
Chemical oxygen demand*†
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Water for primary activities in water-stressed countries such as South Africa and Israel*†
AOX*†
0
50
100
150
200
250
300
350
400
450
500
Particulate emissions*† Waste to landfill*†
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Total reduced sulphides*†°
0
50
100
150
200
250
300
350
400
450
tonnes/
annum
kg/t
onne p
roduct
tonnes/
annum
kg/t
onne p
roduct
tonnes/
annum
kg/t
onne p
roduct
tonnes/
annum
GJ/t
on
ne p
rod
uct
’00
0 G
J/a
nn
um
Number of fatalities*
0
1
2
3
4
5
6
7
8
Lost-time injury frequency rate*
0.00
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2005 2006 2007 2005 2006 2007 2005 2006 2007 20052004 2006 2007
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2004 2005 2006 20072004 2005 2006 20072004 2005 2006 20072004 2005 2006 2007
*Theabovegraphsincludedataforemployeesandcontractors.
GroupspecificGrouptotal
These notes refer to the graph above.
38 Mondi Group Sustainabilityreport2007
Addressing forestry danger
WealsopayparticularattentiontoencouragingbettersafetypracticesinourforestryoperationsinSouthAfricaandRussia,wheremanyofourseriousinjuriesaffectingouremployeesandcontractorshavetakenplace.
OnehighlysuccessfulSouthAfricanprogrammeiscalled‘Phepha’(theZuluwordfor‘safety’),whichstates:“Safetyisourresponsibility.Allaccidentsarepreventable.Zeroisourtarget.”Phephaisbasedaroundfourspecially-producedvideos,whichhavenowbeenseenbyallMondi’sforestryemployeesandcontractorsinthecountry.Thevideoscoverthecoreactivitiesofforestrysuchasharvesting,transportandfire-fighting,riskrecognitionandemployeerights.
AmobileindustrialtheatreasthenextadvancementofthePhephaprogrammeisplannedfor2008,withtheactorsvisitingalloftheSouthAfricanforestryoperationstoruntheshow.
Promoting good health
Theapproachtooccupationalhealthisoneofriskassessmentlinkedwithfocusedmedicalsurveillance.Exposuretonoiseinexcessofthe85decibellimitremainsthemostsignificantoccupationalhealthriskintheMondiGroup.2007wasthefirstyearinwhichwehavenotreportedanyincidentsofoccupationalhealthdiseases,incontrastwith11casesin2006.Onecaseofnoise-inducedhearinglossandonecaseofoccupationalasthma,bothreportedinpreviousyearsintheSouthAfricanoperations,wereawardedacombinedtotalof€10,955bytheSouthAfricanWorkersCompensationCommissionerin2007.
AnexampleofhowweworktowardsreducingoccupationalhealthhazardsinouroperationscanbeseenattheRichardsBaymillwherewehaveinstalledanewsodaashdustextractionsystem,followingahealthriskassessmentthatshowedhighexposurelevels.Followingtheinstallation,dustlevelsarenowatunderhalftherecommendedsafetylimit.
Aswellasworkingtopreventoccupationalhealthdiseases,wealsoneedtoworkconsistentlytohelpprotectourpeopleagainstpoorhealthconditions,particularlythosethatmaybeendemicintheircommunities.
OneexampleofourworkonoccupationalhealthwasanHIV/AIDSawarenessinitiativebytheclinicatourRichardsBaymill.Thisfacilitywontwoprizesinthe2007SouthAfricanOccupationalHealthNursingPractitionersAwards.ItwasselectedastheoutstandingpracticeandChristineViljoen,whorunstheclinic,waschosenastheOccupationalHealthNursingPractitioneroftheYear.MoreinformationonMondi’scommunity-focusedhealthprogrammescanbefoundinfurthersectionsofthisreport.
Weconstantlyinvestigateandreviewanypotentialproblems,andwearenowresearchingthepotentiallong-termhealthimplicationsofprolongedexposuretothenoiseandtemperaturelevelscommonlyexperiencedinourproductionplants.Wewillreportonourfindingsinthefuture.
Case study Making the forests saferForestryisanoccupationassociatedwithrisk,andoverthelast10yearshasbeensignificantlythegreatestsourceofLTIsandfatalitiesacrossMondi’soperations.
Wehavenowintroducedarangeofsafetyinitiativestargetingforestry,includingthePhephacampaign,whichenteredphasefourin2007,toemphasisethekeymessages,“Safetyisourresponsibility.Allaccidentsarepreventable.Zeroisourtarget”.
Alongsideotherinitiatives,suchasVumisa(theZuluwordfor‘tostandardise’),complianceaudits,regularemergencyresponsedrillsandlightningdetection,thishashelpedimproveourLostTimeInjuryFrequencyRate.
Social responsibility employeescontinued
CO2 from fossil fuels*†
Energy sources 2007
Chemical oxygen demand emission
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Case study Mondi CEO Safety Award CompetitionAlreadyinitsfifthyear,theannualMondiCEOSafetyAwardrecognisesoperationsthroughouttheGroupthathaveachievedandmaintainedexcellentsafetyrecords.Theawardschemeisprimarilybasedoninjuryratesbutalsoreviewsthenominee’ssafetyandhealthmanagementsystem.Theawardschemeconsidersoutputsaswellasinputs,thesafetycultureandtheincidentswithdaysawayfromwork.
Resultsofthe2006winnerswereannouncedearlyin2007:
Best in Class, Large Unit: Winner:MondiPackagingPaperŚwiecie.Runner-Up:MondiBusinessPaperSzolnokmill
Best in Class, Small Unit: Winner:MondiPackagingRužomberok.Runner-Up:MondiPackagingHammelburg
Most Improved, Large Unit: Winner:MondiBusinessPaperForestsSAOperations.Runner-Up:MondiBusinessPaperKoygorodskiLoggingOperations
Most Improved, Small Unit:Winner:MondiPackagingHolcombe.Runner-Up:MondiPackagingTolentino
Thejuryalsoacknowledgedthecontractorentrant,UkulaKZN(SouthAfricanforestrycontractor),bynominatingthebusinessfortheContractorSafetyAward.
www.mondigroup.com Sustainabilityreport2007 Mondi Group 39
Implementing global employment standardsWhereverweoperateintheworld,wearecommittedtobeinganemployerofchoice–attracting,developingandretainingtheverybestpeopleavailabletous.
Tohelpusbeanemployerofchoice,weneedtobeabletocompetewithlocalandregionalpeersacrossawiderangeoffactors,includinghealthandsafety,trainingandcareerdevelopment,andtermsandconditions.
Wethereforeneedacompleteandconstantunderstandingofhowourworkingpracticescomparewiththoseofothercompanies.
Establishing the quality benchmark
Thisiswhyin2007wedecidedtoexpandourregularannualemployeesurveysintoastraightforwardpeerreviewtoenabledirectcomparisonwiththeworld’sbestperformingbusinesses.Longestablishedinourbusinesspaperoperations,ouremployeesurveycontinuestotrackourprogressacrossanumberofkeybusinessdynamics,includingtheoverallworkplace‘climate’,thequalityofrelationsbetweenstaffandmanagement,workingconditionsandhowstaffrelatetooneanother.
Critically,ithelpsusmeasureemployeealignmentwithourbusinessstrategy,givingusastrongindicationoftheengagementlevelsofemployees.Weusethefindingsofthesurveystochange
workingpracticeswherenecessary,andtoimplementnewsuggestionsthatwebelievewilladdvaluetoouroperations.
In2007,byusingthesurveysinconjunctionwithrecognisedcomparisondatabasessuchasthe‘GreatPlacetoWork’and‘BestEmployerstoWorkFor’surveys,wearenowgainingnewinsightsintoourstandingasanemployer–withinournationalmarketsandinternationally.Wewilldescribeourfindingsandresultingactionsinfuturereports.
Transforming the business
Thegeographicalspreadofourbusinessmeansthatwefacesomehighlysignificantspecificchallengesthatweareworkingtoaddress.ThisisparticularlythecaseinSouthAfricawhich,overthelast10to15years,hasbeenvigorouslyinvolvedinaprocessoftransformation.
AsamajorSouthAfricanemployer,weareawareoftheimportanceofourresponsibilitiestosupportthecountryinbuildingandmaintaininggoodeconomicperformancebasedonemploymentparityandopportunitiesforall–regardlessofrace,genderordisability.
Wearealsocloselyinvolvedinhelpingblack-ownedbusinesseslaunchandbecomeestablishedundertheSouthAfricangovernment’sBroad-BasedBlackEconomicEmpowerment(BBBEE)legislation.
A merit-based approach
OurtransformationeffortshavesuccessfullystartedtochangethefaceofMondiinSouthAfrica.Forexample,in1998therewerenoblackmanagersatourSpringsmill.In2007,34%ofmanagementwasblack,andtheproportioncontinuestoincrease.Critically,thisisbeingachievedonmerit–itisonlywhentwocandidatesforaroleareofequalabilitythatweapplypositivediscriminationinfavouroftheblackcandidate.
Abriefstudyofethnicitystatisticsshowsthatmuchremainsstilltobeachievedbyouremploymentequityinitiatives.Some77%ofourtotalworkforceinourSouthAfricanbusinesspaperbusinessisblack,asis79%ofthepopulationasawhole(withafurther8.9%classifiedascolouredand2.5%asIndian).
OureffortstoincreasetherepresentationoffemalemanagersinSouthAfricahavebeenlesssuccessful,with5%ofmanagementrolesbeingfilledbywomen.WhilethisisnotaltogethersurprisinginaprimarilyindustrialcompanysuchasMondi,thisisanareaonwhichmoreemphasisisrequiredintheyearstocome.Wewillbereportingonourprogressinfuture.
Wealsoneedtoaddressouremploymentacrossthebusinessofpeoplewithdisabilities,whichisatalowlevel.Thisisunsurprising,becausemuchoftheworkatouroperationsisprimarilyphysicalinnature,butwerecognisetheneedtoimproverepresentationamongoffice-basedpositionsandmanagement.
The topics covered by the nine Safety Rules
–Applyingpermits-to-workandcontrollingmodifications
–Operatingmobileplantandequipment–Enteringconfinedspaces–Workingatheights–Makingenergyandmachineryisolation
–Workingsafelyonrotatingandmovingmachinery
–Conductingliftingandmaterialshandling
–Handlingofchemicalsandhazardoussubstances
–Workingsafelyintheforests
40 Mondi Group Sustainabilityreport2007
Social responsibility employeescontinued
Case study “People, not machines…”AhighlyeffectiveskillstrainingexerciseatourHaderaoperationinIsraelhasresultedbothinimprovedvolumesofsaleablepaperandanenhancedrelationshipbetweenshiftmanagers,thepeopletheymanageandmoresenioremployees.
The16-monthtrainingprogrammefocusedonthepeopleandtask-managementskillsofshiftmanagers,whowereidentifiedasthekeyindividualsindrivingmoreefficientandeffectiveproduction.
Deliveredintwophases,theprogrammefirstconcentratedonhelpingshiftmanagersdefineandunderstandtheirnewrole,establishnewroutinesandimprovetheefficiencyofgroupworking.Implementationthenfocusedondiscussionsandbrainstorminggroupstohelpnewprocesseswork.Theprogrammehassignificantlyimprovedrelationshipsthroughouttheorganisation.
Theresultshavebeenimpressive.Inparticular,ananalysisofthegainsalreadybeingdelivereddemonstratesapositiveeconomicgainthroughbetterefficiencyandproductionquality;adirectresultofinvestingintheskillsofpeople.
Filling the skills gap
StayingwithSouthAfrica,thereisagovernmentconcernthatmajorskillsshortagesthroughouttheworkingpopulationaredamagingtothecountry’seconomicambitions.Alongsideothermajoremployers,wehavearesponsibilitytohelpaddressthesituationbyprovidingouremployeeswitharangeofformaldevelopmentprogrammes.
OurSpingsmillnearJohannesburgillustratesourapproach,withastrongcommitmenttodevelopingfromwithinandrecruitingfromoutside.Thisisaviewthatissharedacrossmanyofourmillsworldwide–thespecialistnatureofourproductionprocessesmakesinternaltechnicaldevelopmentofourpeopleabusinesspriority.
WehavealsobeenrunningasuccessfulapprenticeshipprogrammeatSpringssince2001,whichhasseen66traineesjoinusforafullgroundinginthetechnicalprocessesatthemill,includingaNationalDiplomainpaper-making.Todate,wehaveretained88%ofthisentiregroupandoneofthemisnowaseniormanager.
AttheSpringsmill,wearealsorunninganumberofschemestoimprovethegeneraleducationallevelsoftheworkforce,underthe‘GoodtoGreat’banner,includinghighlysuccessfulliteracyandnumeracycourses.Thisisanessentialelementofoursuccessionplanningapproachthatishelpingusimprovetheethnicmake-upofourmanagementteams.
WearealsopioneeringanewapproachtoskillsdevelopmentatourMondiShandukaNewsprintoperationinDurban,whereaprogrammebasedonperformancemanagementandmission-directedwork-teamsishavinganimportantpositiveeffect.Forexample,thishasseentheefficiencyofoneofourpapermachinesriseuptheglobalperformancerankingsfromnumber105to65intheworld,anditcontinuestorise.
Sharing in Mondi’s success
Ashareschemeforemployeesinourco-ownedbusinessesinSouthAfricaisdeliveringtangiblebenefitsforparticipants.4%ofthesharesinMondiShandukaNewsprintand5%ofMondiPackagingSouthAfricahavebeensetasideinaspecialfundforemployeesundertheEmployeeShareOwnershipPlan(ESOP).ThevalueofeachsharehasrisenfromR0.01atinceptiontoR22.42on31December2007.
Theeconomicbenefitofafurther4%ofthesharesinMondiShandukaNewsprinthasbeensetasideforlocalcommunities.
Case study A company-wide initiativeOnecentraleducationalscheme,underwaysince1998,istheMondiAcademy–asourceoflearningthatisdesignedtoimproveourcorecompetenciesacrosstheGroup,toraisethequalityofoursoftskillsandtoprovideon-demandinformationtechnology(IT)training.Morethan2,000peoplefromover30countrieshaveattendeditsseminars.
In2007,theAcademy’sprimaryfocuswasonimprovingsafetyskills.Thissawusholdaseriesof50seminarsatoursitesthroughouttheworld,eachattendedbygroupsofsome10people.Wearebuildingonthisinitiativein2008byprovidingimprovedinternalresourcestohelpoursitesmakeanynecessarychangestotheirsystemsandprocesses.
OneofthemostimportantbenefitsoftheAcademyapproachistheopportunityitprovidesfornetworkingacrosstheGroup,enablingourpeopletoshareideas,understandingandinsight.ItisafundamentalelementofourGroup-widebidtoconstantlyimproveouroperationsandgiveourpeopleeveryencouragementinbuildingalong,sustainableandprogressivecareerwithus.
www.mondigroup.com Sustainabilityreport2007 Mondi Group 41
Internal communication
MondibelievesthattheinternalcommunicationofourSDcommitmentsisvitaltocreateunderstandingandensurethesuccessfulimplementationofourprogrammesandstandards.Mondirecognisesthatinternalcommunicationneedstobecredibleandmotivating.SincewedemergedfromAngloAmericanplcandlistedasanindependentGrouplastyear,wehavetheopportunitytodelivercommunicationsthataredirectlyrelevanttotheneedsofallourpeople.
Mondi’sinternalcommunicationprocessreliesonpersonaltwo-waycommunicationbetweenmanagersandtheirteams,aswellaspromptmanagementbriefingstorelevantemployeesonkeytopics.Duetotheinternationalnatureofouroperations,wehavefoundthatadecentralisedapproachisthemosteffective.WesettheframeworkataGrouplevelandeachbusinessunitthenmakesuseofacombinationofdifferentcommunicationtoolsincluding:formaldialoguesessions;intranets;awardschemesandprintedpublicationssuchasthe‘Unlimited’employeemagazineintheEurope&Internationaldivisionandthe‘Munye’magazineintheSouthAfricandivision.
Case study Investing in youthTheMondiAustriaPrivateFoundationhasawardedspecialscholarshipsworthupto€12,000-a-yeartomorethan30youngstudentsfromacrosstheworldwishingtostudytechnology,naturalscienceandeconomicsciencesubjectsinAustria.Anannual€1,000travelgrantisalsoavailable.
Foundedin2005,theFoundationwassetuptoprovideAustrianStudentScholarshipstostudentsnotolderthan23fromAfrica,Asia,centralandeasternEuropeandAustriaitselfwhoarekeentoattendanAustrianuniversity,technicalcollegeorsimilarinstitution.
ItwasthebrainchildofDrVeitSorger,formerchiefexecutiveofMondi’sFrantschachbusiness,whosaidatitslaunch:“Thefuturebelongstoyoungtalents.Itisourdutytoinvestinyouth,tothebenefitoftheindividual,theeconomyandsociety.”
Thescholarshipsareprovinghighlyattractive,with630applicationsfrom60countriesreceivedduringthefirsttwoyearsoftheFoundation’slife.Eachawardlastsforuptofouryears(orfortheminimumdurationofthecourse)dependentonthepersonalsuccessofeachstudent.Itmaybeusedtohelpfundabachelor’sormaster’sdegreeforthosewhohavealreadyachievedafirstdegreeintheirhomecountry.
StudentswhoreceiveawardsarenotrequiredtoworkforMondioncompletionoftheirstudies–thecompanyseessuchsupportasanimportantmeansofhelpingindividualsachievepersonalgoalsthatenablesharedbenefits.InthewordsofMondichiefexecutiveDavidHathorn:“Promotingthepotentialofyoungpeopleisaparticularresponsibility.”
Employee Share Ownership Plan (ESOP)
4%of shares in Mondi Shanduka Newsprint
5%of shares in Mondi Packaging South Africa
42 Mondi Group Sustainabilityreport2007
Social responsibility communities
Summary
Wemakeanimportanteconomiccontributiontothecommunitiesinwhichweoperate.
Butwerecognisethatourresponsibilitiesextendfarmorewidelythanthisalone,includingthereductionofanynegativeimpactwemayhaveandprovidingresourcesthatmakecommunitiesbetterplacestoliveandwork.
Herewedescribesomeofthewaysinwhichwetrytomeetourcommunityresponsibilities.
Moreinformationisavailableat:www.mondigroup.com
Page 43 Community engagement and CSI
Page 44 Ethical business conduct
Policy At Mondi, being a good corporate citizen means making a real and lasting contribution to the communities in which we operate.
This vegetable garden in South Africa is just one of Mondi’s community projects to combat HIV/AIDS.
www.mondigroup.com Sustainabilityreport2007 Mondi Group 43
Community engagement and corporate social investment (CSI)EverysignificantMondioperationhasinplacearollingthreetofive-yearcorporatesocialinvestment(CSI)programmeorcommunityengagementplan,designedtohelpuscreatesustainable,mutuallybeneficialrelationshipswithnationalandlocalcommunitiesthatreflecttheirprioritiesand,wherepossible,matchourbusinessinterests.
Wehaveagreedabroad,genericsetofCSIobjectivesacrossthebusiness,whichhelpusselecttheprojectsweshouldsupport.Theseensurethatweonlygetinvolvedwithprojectsthatenhancethecapabilitiesofourcommunitiesandcontributetotheirsocialandeconomicdevelopment.Inaddition,theprojectsneedtogiveustheopportunitytoformpartnershipswithotherinterestedparties,includingNGOsandgovernment.
A structured approach to CSI
Theactualprojectswechoosetoworkwitharebasedonspecific,tailoredsolutionsthatspringfromtheSocio-EconomicAssessmentToolbox(SEAT)reportsweundertakeonthecommunitiessurroundingourmaterialoperations.
ASEATgivesusastructuredwayofhelpingusimprovethewell-beingofourcommunities.Itinvolvesanumberofdifferentstages:
First,weprofileouroperationsandthecommunitieswithinagivenarea.Next,weengagewiththefullrangeofinterestgroups,andidentifythepositiveandnegativeimpactsofouroperations.Thenweproduceamanagementplandesignedtomeetthecommunity’sdevelopmentneedsandreduceanynegativeimpact.Finally,togetherwithlocalstakeholders,wepublishalocalreportthatprovidesthebasisofourongoingrelationshipwiththem.
ExamplesofrecentSEATreportsincludepublicationsonourŚwieciemillinPoland,ourRužomberokmillinSlovakia,ourŠtĕtímillintheCzechRepublicandourSyktyvkarmillinRussia,allofwhicharedrivingourcommunityprogrammesineachareaandhelpingusimprovethequality,relevance,scopeandeffectivenessofoursocialinvestments.
AtSyktyvkar,forexample,weparticipatefullyinthecommunity’shealthcaresystem,helpingbothtopreventandtreatillnessesandconditionssufferedbyourworkersandtheirfamilies.
Activitiesfallintotwokeyareas,bothofwhichwereidentifiedassignificantintheSEATexercise–providingthemedicalservicesthatareneeded,aswellastheopportunitytoexerciseandparticipateinsportandotherformsofleisureactivity.
Wethereforeprovidepolyclinics,healthcentres,asanatoriumandadispensaryinEzhva,theregionalcapital.Duringthetimethatwehavemanagedthehealthprogramme,wehaveseentheprevalenceofillnessamongouremployeesattheSyktyvkarmillfallfrom4.57%to2.5%.
In2007,wewereparticularlypleasedthatoursanatorium-dispensaryinEzhvawonthesixthawardbytheall-RussiaTradeandHealthcongresstomarkthenation’stopachieverinprotectingworkers’health.Theservicesofoursanatoria-dispensarieswerealsomarkedbytheawardofaspecialqualitydiplomabythegovernmentoftheKomiRepublic.
Throughtheexperiencewehavegainedinthisarea,wearenowextendingourhealthprogrammeintoourforestryoperations,andhavecarriedoutadetailedstudyofouremployeeswhoworkthere.Thishashighlightedtheimportanceofaddressingconditionsaffectingthemusculoskeletalsystem,whichwillreceivesignificantattentionin2008.
OuractivitieshelppromoteanactivephysicalcultureinandaroundSyktyvkar,andwesupportthreemainresourcesintheregion–theBamuzhniksportscentre,theVezhdinoskilodgeandtheParmaholidaycentre.Theseareextremelypopular–in2007,Bamuzhnikreceived253,724visitorsand9,660peoplewenttoParma.
Wealsoencourageouremployeestoparticipateinourownsportingevents,andin20073,209ofourstafftookpartinthe37eventsthatcompriseour‘all-the-year-round’games.Onecompetition,called‘TheSkiTrackofHealth’,isparticularlypopular,with1,202participantsin2007.
Case study Listening to community concernsThroughoutouroperations,aswellassupportinghealth,educationalandothersociallypositiveinitiatives,weuseSEATstohelpusidentifyandaddressanynegativeimpactswehaveonthecommunitieswhereweoperate.
Ourworktoaddressfactorslikethe‘nuisancesmell’atourSyktyvkarmillinRussia’sKomiRepublicandourRichardsBaymillinSouthAfricaisdescribedonpage31ofthisreport.Hereweareengagingwithlocalcommunitiestoestablishtheirconcernsandundertaketheinvestmentandtechnicalworknecessarytoreduceandultimatelyeradicatetheissues.
Forexample,wehavecommittedtomakingRichardsBaya‘smell-free’operationby2009.InJuly2007weheldanopenday,whenwediscussedtheissuefullyandtransparentlyalongsideanumberofotherfactorsofconcerntothecommunity,enablingthemtoensurethatwewerefullyawareoftheirworriesandwereactingtoaddressthem.
Workingtoimprovethecommunitiesinwhichweoperate
Corporate social investment1
€ 2007
Health 302,703.82
EducationandYouth 1,346,113.17
Environment 306,294.77
CommunityDevelopment 325,775.49
Arts,CultureandHeritage 494,042.42
Other* 3,693,721.24
TOTAL 6,468,650.911Corporatesocialinvestmentincludesdonations
forcharitablepurposes,communityinvestmentandcommercialinitiativesinthecommunity.
*Sports/recreation,associations,firebrigades,stateauthorities,etc.
44 Mondi Group Sustainabilityreport2007
Ethical conduct
Therearefourcentral‘pillars’inourapproachtogovernanceofethicalconduct,designedtohelpthebusinesscomplywithbestpractice.Theseare:
awidelypromotedandaccessibleinformationresourceonourcorporatecultureandethics;
arigorousrisk-managementprocess;
asystemofinternalcontrol;and
a‘whistleblowing’processthatenablesemployeesanonymouslytohighlightinstanceswherehighstandardsofethicalbehaviourmayhavebeentransgressed.
Inaddition,wehaveaninternalauditdepartmenttohelpmanagementmeasureandassesstheeffectivenessofourrisk-managementprocess,internalcontrolsystemandcompliancewithourcorporatestandards.
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Social responsibility communitiescontinued
Case study Supporting vulnerable peopleOurŠtétímillintheCzechRepublichasformanyyearsactivelysupportedsomeofthemostvulnerablemembersofthelocalcommunity.
OurlocalmanagementregardimprovingthequalityoflifefortheseandotherdisadvantagedpeopleasaclearresponsibilityforamajoremployersuchasMondi.
During2007,themainfocuswasontheDiagnosticMentalandSocialCareinstitutioninthenearbytownofCizkovice,whichwehavesupportedsince2004.
Responsiblefor60mentallyandphysicallychallengedpeople,thefacility’sprofessionalstaffhaveimpressedMondiovertheyearswiththeopennessandobviousdedicationwithwhichtheytreatthoseundertheircare.
Mondihasprovidedsome€4,000eachyeartohelpthecentremoderniseitsfacilitiesandraiseitsstandardsofcaretoworldclass.Recentexamplesoftheinvestmentswehaveenabledincludetheinstallationofastair-lift,abathforthemostseriouslyhandicappedpeople,andarecreationalcycletrack.
Ethical business conduct
In2007MondiadoptedaCodeofBusinessEthics,whichsetsoutthekeyprinciplesguidingconductacrosstheGroup.
The five Mondi principlesLegal complianceMondiwillcomplywithallapplicablelawsandregulations.Honesty and integrityMondiwillobservethehigheststandardsofhonestyandintegrity.Human rightsMondiwillrespecttheUniversalDeclarationofHumanRights.StakeholdersMondiwillhavedueregardtotheinterestsofallitsstakeholders–shareholders,employees,customers,businesspartnersandcommunities.SustainabilityMondiwillconductitsbusinesssustainably,ensuringsafety,healthandtheprotectionoftheenvironment.
Mondiwillencourageallthosewithwhomitdoesbusinesstoobservethesameprinciples.
Case study Enabling excellent community healthcareTheCentralMilitaryHospitalinRužomberok,SlovakiaandMondihavealongtraditionofcooperation.Today,wecontinuetodonatespecialistmedicalequipmentinexchangeforprovidingouremployeeswithoneofthecountry’smostcompleteandhigh-qualitymedicalsupportservices,includingcheck-upsandthein-depthexaminationsthatSlovakianlawdemandsforworkersinourindustry.
Withanationalreputationformedicalexcellence,thehospitalenablesMonditoprovidebetterhealthcarebothforouremployeesandthepeoplewholiveinthewiderregion.
Managing risk
Effortstopreventunethicalorillegalbehaviourareafundamentalelementofourrisk-managementprocess.Ourrisk-managementprocesshastwodistinctbutintegratedelements.First,informationrisesupthroughtheorganisationtoboardlevel.Policyanddirectionpassesdownfromtheboardforimplementationbymanagement.
Anexampleofhowthisworksinpracticeis‘SpeakUp’,ourwhistle-blowingprogramme,inplaceinSouthAfricasince2003andsubsequentlyimplementedinalmostallourglobaloperations.
www.mondigroup.com Sustainabilityreport2007 Mondi Group 45
Whistle blowing
TheSpeak-Upprogrammeensuresthatemployeeswhospotinstancesofdishonesty,discriminationordangerousbehaviourcanconfidentiallycommunicatetheirfindingsorsuspicionstotheGroupforaction.Thisisparticularlysignificantiftheemployeehasreasontosuspectamoresenioremployee,suchastheirlinemanager.Itisanextremelyvaluabletoolinensuringthatourlegalcomplianceandourethicalprinciplesarerespectedatalltimes.
Inordertoensureconfidentiality,weuseanoutsourced,message-basedsystem.Anemployeemayuseadedicatedphonenumbertoleaveamessagewithourthirdpartysupplier–Mondihasnoaccesstotheinformationgiven.Theoutsourcedcompanytheninformsus,highlightingtheissue.Wethenhavetheopportunitytorespond,takingadecisionatanappropriatemanagementlevelonanycorrectiveactionthatshouldbetaken.
Weare,ofcourse,awarethatthesystemmaybeabusedbyemployeeswithagrievanceagainstthebusinessoranindividual.Thereare,therefore,strictproceduresinplacetopreventabuse.Wedoourutmosttoensurethatallactionstakenarejustandfair,inthebestinterestsofMondianditspeople.
Competition compliance
Animportantpartofourcommitmenttolegalcomplianceisourcompetitionlawcomplianceprogramme.Monditakesextensivestepstoensurethatitsemployeesarefullyawareoftherelevantcompetitionlawrequirementsthroughcommunicationandtraining.Thesestepsarereinforcedthroughaninternalsystemofself-certification,assuranceandaudits.
Case study Harmonising business and educationAsagroup,Mondiconstantlyneedsaninflowofnewemployeeswithasoundgraspofengineeringandothertechnicalmatters.ThisrequirementisbehindourongoingsupportfortheSecondaryTechnicalSchoolinRužomberok,Slovakia,wherewearehelpingstaffdevelopcoursesonnewareasoftechnicalspecialisationanddelivermodulesdirectlyrelatedtoourindustry.
Whiletheschoolisanindependenteducationalinstitutiontoday,itusedtobelongtoMondiuntilachangeinlegislationmeantthiswasnolongerpossible.Now,however,thisclosecooperationbetweenMondiandtheschoolisharmonisingourongoingcommercialneedswiththoseofthecommunityforanexcellent,locallyavailablevocationaleducation.
Case study Dealing with traumaMondi is committed to responding to the concerns of its employees and communities. This was behind the R1.3 million sponsorship of a new trauma centre, opened in November 2007 at the Far East Rand Hospital near Johannesburg for the victims of sexual assault. Combining legal and medical facilities, the new centre was the brainchild of employees from our Springs mill in Johannesburg. Working with the Department of Health, Mondi funded and drove the entire centre from scratch, adding a valuable new resource to help support some of the community’s most vulnerable members. The company is maintaining a close involvement for at least the next three years.
MondiisthebiggestemployerinthenorthernPolishcityofŚwiecie,wherewedirectlyandindirectlyemploynearly4,000peopleatourmill–oneofthelargestpapermillsinthecountry.Withthetaxesandroyaltieswepay,thismakesusaveryimportantcontributortothelocaleconomy.
Weseethisasamajorresponsibilityand,toencouragefurtherprivatesectordevelopment,wehaveimplementedapolicyofdealingwhereverpossiblewithlocalsmallbusinesses–thosewithin60kilometresofthemill.Asakeyelementofthispolicy,wewillalwaysgivepreferencetoalocalsmallandmediumenterprise(SME)overaninternationalprovider,providedtheproductsorservicestheyofferareatleastequivalentinqualityandvalue.
Despitethiscommitment,theformerdominanceoflargestateownedbusinessesintheregion
haslefttheSMEsectorcomparativelyweak.SofollowingaSEATanalysisin2005to2006,wedecidedtocatalyseitfurtherbyfirstattractingnewSMEsthroughadvertisingandthenprovidingthemwiththetrainingandtechnicalassistancetheyneedtomeetourstandards.Inaddition,wearecommittedtosettlinginvoicesontimetogivethemassuranceofcashflowandpayrollcertainty.
Theresultshavebeenexcellent,withasignificantnumberofnewSMEsnowinoursupplychain.Aswellashelpingthemimprovetheirenvironmental,healthandsafetyperformance,enhancetheirqualitystandardsandachievegreaterfinancialstability,theinitiativeiscreatingwealthwithinthecommunity.Mondibenefitstoo,throughgreatercompetitionamongbiddersforourbusinessandanenhancedreputationinthecommunity.
Case study Preferred procurement in Poland
Investment in trauma centre
R1.3m
46 Mondi Group Sustainabilityreport2007
South African-specific issues
Summary
SouthAfricaisundergoingsweepingtransformationasitsgovernmentoverturnsahistoryofdiscrimination.
AsamajoremployerandlandownerinSouthAfrica,wefullysupportitsworkwithawiderangeofCorporateSocialInvestment(CSI)initiativesalongsideanactivefocusonemploymentequity,landreformandBroad-BasedBlackEconomicEmpowerment(BBBEE).
Herewedescribesomeofthewaysinwhichwearestrivingtohelp.
Moreinformationisavailableat:www.mondigroup.com
Page 47 BBBEE ratings
Page 51 Combating the HIV/AIDS epidemic
Page 50 Land claims and indigenous people
Page 49 Our CSI approach in South Africa
Tree planting in South Africa.
Sustainabilityreport2007 Mondi Group 47
Across South Africa, it continues to be a government priority to change the demographics of business.
One of the most important objectives is to ensure that at every level, from major corporations to small privately owned enterprises, previously disadvantaged individuals can seize career and business opportunities that have been denied them.
A key tool in helping them and South African organisations as a whole achieve this goal is a highly sophisticated legislative Act called Broad-Based Black Economic Empowerment (BBBEE). Using the power of mutual self-interest to ensure that transformation gathers pace throughout all strata of business and society, BBBEE promotes a progressive approach among businesses in addressing and rectifying historic imbalances and injustices.
BBBEE ratingsByscoringorganisationsacrosssevenkeyratingsthatmeasurethelevelsofblackinvolvement,influenceandbenefit,BBBEEdrivesandenablespositivesocialprogressbeyondbusinessaloneintoareassuchaseducation,healthandinfrastructure.Throughtheawardofascoreundereachoftheseratings,businessesachieveanoverallrating(between1and8,with1beingthehighestrating)thatmaybeusedbymajorpotentialcustomers,includingthegovernmentitself,tohelpdeterminetheprocurementofgoodsorservicesandtheawardofcontracts.
Thesystemhelpstoensurethatthemorehighlyabusinessisratedthemorelikelyitistowinsignificantcontracts,soitisseenandusedasanimportantincentivetoactivelysupporttheBBBEElegislation.
Thekeyratings,aspertheDepartmentofTradeandIndustry’sCodesofGoodPractice,are:
businessownership;
managementcontrol;
employmentequity;
skillsdevelopment;
preferentialprocurement;
enterprisedevelopment;and
corporatesocialinvestment.
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AtMondi,wefullysupporttheapproachandaimsoftheBBBEEinitiative.Quiteapartfromthesocialbenefitsthatit’salreadyhelpingustodeliver,webelievethatitisalsoapotentialdriverforbetterbusinessperformancethroughthediversity,lowercosts,improvedstaffmotivationandenhancedcorporatecitizenshipitencourages.
Transformation policies
Monditakesitsobligationsveryseriously,andtothisendwehaveinplacearangeofcorporatevaluesthroughwhichweareaddressingthetransformationdemands.Theseare:
removingbarrierstobusinessownersandencouragingtheparticipationofblackpeople;
promotingtheworkingconditionsanddiverseorganisationalculturethatwillmakeusanemployerofchoice;
deliveringemploymentequity,sothattheracialandgenderprofileofMondimatchthoseoftheSouthAfricanpopulationasawhole;
increasingourinvestmentsintheskillsdevelopmentandtrainingofexistingandnewblackprofessionals,particularlyblackwomen;
promotingentrepreneurialdevelopmentandincreasingthenumberandexpertiseofblack-ownedandmanagedfirmsinoursupplychain;
increasingprocurementofgoodsandservicesfromhighlyratedBBBEEsuppliers;and
ensuringgoodcorporatecitizenshipinthecommunitiesinwhichweoperate,includingactivestakeholderengagementandresponsiblesocialinvestments.
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DrivingtransformationinSouthAfrica
Promoting black ownership
R3billionin empowerment transactions
Procurement practices
31%of discretionary goods andservices procured from black-owned business
48 Mondi Group Sustainabilityreport2007
Manyoftheseareasareaddressedelsewhereinthisreport.Inthissection,weaimtofocusontheownership,entrepreneurialdevelopmentandprocurementelements.
Promoting black ownership
In2004wetooksignificantstepstoensuregreaterblackownershipofMondi’sbusinesses.ThisinvolvedthecreationofastrategicrelationshipwithShandukaResources,throughwhichwecreatedtwonewentities:MondiPackagingSouthAfrica(Pty)LtdandMondiShandukaNewsprint(Pty)Ltd,owned40%and42%respectivelybyShandukaResources.
Togetherwiththesaletoblackshareholdersof10.8%ofourshareholdinginSiyaQhubekaForestry(Pty)Ltd,theseactivitiesrepresentoverR3billioninempowermenttransactions.
Procurement practices
ItisincreasinglyimportantforbusinessesthatwhereverpossibletheydealwithsupplierswiththebestpossibleBBBEEratings.ToenablethistotakeplacewithinMondi,wehavebeenmakingsomemajorchangestothewayweprocureproductsandservices.
OfaSouthAfricansupplierbasetotallingsome5,000businesses,abouthalfareverysmall.However,between200and300ofthesebusinessesreceivesome80%ofourspend.Someoftheseareverylargecompanies,suchaschemicalsuppliers,whoareunlikelyatthisstagetohavesignificantblackownershiporseniorrepresentationlevels.
ForMondi,thetrueimportanceofBBBEEliesinthecontributionwecanmaketothesustainabilityandsuccessofblack-owned(andparticularlyblackwomen-owned)businesses.InourSouthAfricanoperations,therefore,ourprocurementprogrammeisdrivenbytheneedtoawardmeaningfulopportunitiestobusinessesofthistype.AsofAugust2007,31%ofthediscretionarygoodsandservicesweprocuredwerefromsuchsources,againstachallengingtargetofachieving50%by2012.
Wecanalsoimproveourperformancebyworkingwithsuppliersthat,whilenotblack-ownedthemselves,alsohaveahighBBBEEscoregainedatleastpartiallythroughprocuringfromblack-ownedbusinesses.Westrivetoencourageallsupplierstopaycloseattentiontotheethnicmake-upoftheirownsupplychains.Wearealsointheprocessofdevelopinganelectronicdatabase,whichwillserveasaconsistentpointofreferencefortheBBBEEcredentialsofalloursuppliers.
Investing in quality
Asabusinessthatmakeshighqualitydemandsonitssuppliers,wearealsohelpingsmallandyoungblack-ownedbusinessesraisetheirstandardstothelevelsweexpect.
Thisistrueofexistingoperations,andwehavemadecapitalinvestmentstohelpselectedbusinessesimprovetheirstandardstoappropriatelevels,includingintheareasofproductquality,servicelevelsandethicalbusinesspractices,aswellashelpingtoestablishnewenterprises.
Ourwholly-ownedenterprisedevelopmentagency,MondiZimele,focusessingle-mindedlyonsupportingandhelpinglaunchnewbusinessesthatwillfitintooursupplychain.Itscommitmenttosupportingenterprisedevelopmentextendstotheprovisionoffavourablecreditandpaymentterms,aswellasassuringeffectiveskillstransferandsustainabilitythroughmentorshipandadvice–seethepanel(left)forcasestudiesthatillustrateitsactivities.
Gaining certification
Intime,aprocessofcertificationwillbeinplacethroughoutSouthAfricatoprovidebusinesseswithaprecise,formallyauditedBBBEEscore,whichisthenretainedfor10years.Mondi’sscoresarecurrentlybasedonself-assessmentscarriedoutbyexternalconsultants.
Theself-assessedratingof5issatisfactoryforthemoment,andwehaveaplaninplacethatwillhelpusachievelevel4standardsofachievementwithinfiveyears.WealsobelievethatbothMondiPackagingSouthAfricaandMondiShandukaNewsprintshouldachievelevel4,duetotheirownershipstructure.
Thesefiguresaredueforverificationintheearlypartof2008,whenwewilldecidewhetherornottoadoptaconsolidatedscorecardacrossallourSouthAfricanoperations.
Case studyIndependence through enterprise‘Zimele’means‘tobeabletostandonyourown’intheZululanguage.ThisisthekeyprinciplebehindMondiZimele,ourSouthAfricanenterprisedevelopmentarmthathelpsentrepreneursandsmallbusinesseswiththefundingandskillstheyneedtobecomeanestablishedpartofoursupplychain.
DrivenbytherequirementsofBBBEEandlandreformlegislation,MondiZimeleencourages‘IndependencethroughEnterprise’,providingbusinessexpertiseandinvestmentfundingbasedontheR100millionthatMondihasprovidedoverthreeyears.
OnerecentsuccessstoryisImpumeleloForestryServices,anine-strongcontractingbusinessthatisinvolvedinthefullspectrumofforestryactivitiesfromsilviculturetoharvestingandshort-hauldistribution.WearealsosupportingKhulanathiTimbers,awood-buyingbusinesswithfouremployeesthatprovidesarangeofservices,includingseedlingprovisiontoover3,000growers.
South African-specific issuescontinued
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Our CSI approach in South AfricaInSouthAfrica,wehaverecentlystrengthenedourCSIandcommunityengagementposition.
Developing a CSI strategy
InourSouthAfricanbusinesses,thisfollowedanumberofSEATsthatwecarriedoutin2005.Involvingover2,000separateinterviews,theseprovidethecorearoundwhichwehaveconstructedanintegratedCSIstrategy.Thisfavoursstrategicsocialinvestmentsthathaveadirectrelationshipwithouroperationsandtheirimpacts,supportingthetransformationprocessandmaximisingthepositivesocialeffectsofouractivities.
Thismarksamajorshiftinemphasisawayfromaphilanthropicethosmarkedbyhand-outsorsponsorships,toafocusonmeetingrealneedsbyengineeringsustainablebusinessopportunities.
Youcanseesomeoftheresultsofthisnewfocusinoursectionsonmeetingsocialneedsinourforests(page26)andBroad-BasedBlackEconomicEmpowerment(page47).
Ourstrategyisbasedonthreelevelsofproject–first,so-callednational‘flagship’initiatives,whichtake50%oftheavailableCSIbudget;next,40%isspentonlocalcommunityprojectsaroundourplantsandforestoperations;andthe10%balancetakestheformsofdonationsofpapertoschools,hospitals,orphanagesandotherorganisations.
Thestrategyalsodictatesthattheprimaryfocusforanyprojectshouldbealongoneormoreofthefollowingthemes:education(withanemphasisonmathsandscience);environmentalimprovement;communityandneighbourhooddevelopmentandeducation;andthepreventionandtreatmentofHIV/AIDSinfection(seepage51formoreinformationonthistopic).
Flagship and community projects
FlagshipprojectsincludetheUnizulScienceCentrethatfocusesonscienceandmathsdevelopmentinschoolstohelpboostkeyskillsintheSouthAfricaneconomy.Everyyear,some30,000learnersvisitthecentre,wherewehouseapermanentexhibitionintheHallofIndustries,hostMondi’sPaperWeekanddeliverateacher’sworkshoponthepapermakingprocessandenvironmentalissues.
TheMkhondoEducationCentre,meanwhile,wascreatedtoserveasaone-stopshopeducationalfacilitythatcouldsatisfytheneedsofabroadsectionofthelocalcommunitybyprovidingsupportforlearners,adults,educatorsandthoseseekingemployment.Completewithaspecialistmathsandsciencecentre,itreceivedsome15,000learnersbetweenMarchandNovember2007.
Suchprojectsareofparticularimportanceforthefutureofthecountry.Subjectslikemathsandsciencearecriticaltothefuturedevelopmentofmanufacturingbusinesses,especiallythosebasedontechnicalandengineeringexpertise.Thesesubjectsarenotpopularchoicesforfurtherandhighereducationamongyoungpeople,andthefocusoftheprogrammeistoshowthattheycanbefunaswellasultimatelyrewarding.
CommunityprojectsincludesupportforAmangweVillage,aspecialcentreforchildrenwhohavebeenorphanedbySouthAfrica’sHIV/AIDSepidemic.ThiswasoriginallyaMondi-onlyproject(andisstillsitedonourland)butwedonatedittotheZululandChamberofBusiness.In2007,weprovidedthevillagewithsignificantfundsforawiderangeofuses.
Better communication
DespitetheseandmanyotherCSIprojects,our2007CommunitySatisfactionSurveyrevealedthatthereisstillmorethatwecando.From2008wewillbeconcentratingmoreeffortonensuringthatourcommunitiesunderstandouractivitiesbetter.
MondiPackagingSouthAfricapursueslargelythesamestrategybutwithaslightlydifferentemphasis.Itsfocusisonearlychildhooddevelopment,healthandentrepreneurialdevelopmentbasedoncommunityneeds.
Helping people help themselves
MondiPackagingSouthAfricaalsoshareswithourcommunityinvestmentorganisationMondiZimeleacommitmenttohelpingpeopleandorganisationshelpthemselves(seepage48formoredetail).Forthisreason,whenhelpingwiththelaunchormanagementofanenterprise,wemaintainourdirectinvolvementforthreeyearsbeforewithdrawinggraduallytohandoverfullresponsibilitytomanagement.
Forexample,webecameinvolvedintheKwaThemacrècheatourSpringsmill,aprojectthatappearedtobelosingmoneydespitealloutwardappearancesofsuccess.Ourresearchsoonrevealedsomefundamentalproblemswiththebusiness,andresultingactionquicklyledtoafullfinancialrecovery.Thecrècheteamhavegrownintheirknowledgeofbusinesspracticesandmanagementtechniques,whichshouldensureasuccessfulfuture.
A double gain
AttheFarEastRandHospital,nearJohannesburg,wearealsoinvolvedwiththeKangarooMotherCareCentre,basedonanAustralianmodelthatshowsimportanthealthanddevelopmentbenefitsinprematurebabieswhomaintainskin-to-skincontactwiththeirmothers.
Duringthetwotothreeweeksthatwomentypicallystayatthecentre,theyarealsotaughtnewsewingskillsthattheycanusetoearnmoneyontheirreturnhome.Inthisway,wearealsobringingneweconomicopportunitiesdirectlytotheheartofcommunitiesthroughouttheregion.
50 Mondi Group Sustainabilityreport2007
Major returns
Whilesomeoftheprojectsmentionedrequiresignificantfundingandresources,wearealsoinvolvedinmanywhereevenalittlehelpcanmakeahugedifferencetothequalityoflifeofindividualsandcommunities,aswellasbenefitingourbusiness.
AnexampleofthisisinSiyaQhubekaForestry,wheresomeofourplantationsweresufferingdamagefrom3,500cattlebelongingtoalocalcommunity.Whenwediscussedthesituationwiththem,wefoundthattheyneededhelpinseveralareas,includingprotectionfromcattlethieves.Followingamodestinvestment,wehelpedthemsetupacattlemanagementdatabaseandruntraining,brandinganddippingprogrammes.
Thisisnotonlyprotectingouryoungtreesagainstbeingeaten,itisalsohelpingthecommunityimprovethequalityoftheirherdsthroughthemoreselectivebreedingandbetterhusbandrythatattractsahigherpriceatmarket.Inaddition,ithashelpedenhanceMondi’sreputationinthearea,andisalsodeliveringenvironmentalbenefitsthroughmanagedgrazing.
Inmanyways,thisprojectsumsupthevalueofourCSIactivities,simultaneouslybenefitinglocalcommunities,theenvironmentandourbusiness.
Land claims and indigenous peopleLandreforminSouthAfricaisanissueonwhichweareconcentratingagreatdealofeffort,withtwomajorareasoffocus:toprotectoursourcesofsustainablefibre;andtoensureweoperateintheethicalmannertowhichwearecommitted.
Thehistoryoflandtenureinthecountryisintricateanddetailedinnature.Ithasledtoasituationwherebythegovernmentandbusinesstogetherarecommittedtorectifyingthepastwrongsthathavedeprivedmanyindigenouspeopleoftheirrightfulheritage.
Historical background
Acriticalpointcamein1913whenthegovernmentofthedaydecidedtomakeSouthAfricafullyself-sufficientintimber.Whilemanyareashadalreadybeenforested,thispolicyledtomanypeoplebeingmovedofftriballand,andsignificantstretchesofagriculturallandbeingturnedovertoforestry.
Subsequently,theapartheidsystemfurtherexacerbatedtheproblem,movingpeopleawayfromtheownershipoflandandthusdenyingthemtheircontinuedtraditionalwaysoflife.
In1994,theRestitutionofLandActwaspassed,withastraightforwardobjective:“Toprovidefortherestitutionofrightsinlandtopersonsorcommunitiesdispossessedofsuchrightsafter19June1913asaresultofpastraciallydiscriminatorylawsandpractices.”
Thelawalsoencompassesandaimstoaddressthedescendantsofsuchpeople,aswellascommunitiesthathavelostlandrights.Restitutionitselfcantakeoneofthreeforms–restorationoftheland,paymentofcompensationoracombinationofthetwo.
Mondi’s role
Wearecommittedtoplayingapositiveroleinmeetingthelandreformtargetsthathavebeensetforthecountryandtheforestryindustry.
Currentlythereareclaimsagainstthewholeorpartofsome48%ofMondi’slandinSouthAfrica.Weareworkingcloselywithcommunitiesinanattempttogainanunderstandingoftheirneedsandaspirationsforusingthelandinfuture.
Forus,thechallengeisnotsimplyastowhetherwereachasettlement;itishowwebestdosowithfairnessandequity.Whilewefavourparticularapproachessuchasleasebackandjointventures,thereisno‘one-size-fits-all’modelofrestitution.Thismeansthatweneedtospendtimewiththenewlandownersassistingthemtoidentifyandachievetheiraspirationssothatweseeamovebeyondmerelandrestitutiontogenuinelandreform.
A commercial necessity
Itiscommerciallyvitaltousthatoursourcesoffibrearebothassuredandsustainablymanagedintothefuture,notleastretainingtheirall-importantFSCcertification.
Wearecloselyinvolvedinanumberofcommunity-enablementprojectsandinitiatives,suchasatKranskop,wherewearehelpingtwoland-claimgroupsdeveloptheskillstheyneedtobecomeourbusinesspartnerswithanassuredsourceofbusinessformanyyearstocome.
Thisisanimportantelementofouractiveroleinhelpingnewlandownersbuildthecapacity,infrastructureandunderstandingtheyneedtosucceedinatransformedsocialandbusinessenvironment.
South African-specific issuescontinued
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Combating the HIV/AIDS epidemicAccordingtotheSouthAfricanNationalHIVsurveyin2005,10.8%ofallSouthAfricansovertheageoftwowerelivingwithHIV.InKwaZulu-Natal,wheremanyofMondi’soperationsaresited,prevalencehadrisento16.5%.
Whiletherehavebeensomerecentsignsthatinfectionratesarestartingtofall,forSouthAfricatheHIV/AIDSepidemicrepresentsoneofthegreatestofthemanychallengesthecountryfaces.
A duty to protect
AtMondi,werecognisethatemployershaveanimportantresponsibilitytohelpprotectandeducatetheirpeople,aswellaslimitanyfutureimpactsontheavailabilityoflabour.Wealsorecogniseourcorporatedutytohelphaltthegrowthoftheepidemicandsupportthoseaffected.
Wehave,therefore,integratedaviableHIV/AIDSpolicyintooursafetyandoccupationalhealthpolicy,whichisinplaceacrossthebusiness.Thiscoversarangeoffactors,includingananti-discriminationpolicy,managementoftheillnessandanyresultingdisability,educationandawareness,theprovisionofanti-retroviraltreatmentandhelpingmanagetheimpactofthediseaseonMondi’sbusinessandwidersociety.
The key barrier
ForMondiandothermajoremployers,themostimportantbarriertoovercomeisoneofattitude–widespreadmisunderstandingoftheissuessurroundingHIV/AIDSremains,includinghowitistransmitted.Inturn,thisspreadsprejudiceagainstthosewhoareknowntobeHIVpositive,oftenleadingtoalackofwillingnessforindividualstomakeknown,orevenfindout,theirHIVstatus.
Anti-discriminationisenshrinedinouremploymentpractices–employmentapplicationsdonotincludeabloodtest,HIVpositiveemployeesaretreatedinthesamewayasforanyotherchronicdisease,continuinginemploymentunlessmedicallyunfitforwork.Trainingandpromotionisawardedregardlessofstatus.
Mondi programmes
Wehavealsoputinplaceanumberofprogrammes,includingtheSWAT(Status,Wellness,Awareness,Treatment)programmeinourRichardsBayandMerebankmillsandforestryoperations.First,thisurgespeopletoknowtheirstatusandhighlightsthefreetestingthatisavailablethroughhealthchecksprovidedbythecompany.
Next,itpromotestheMondiwellnessprogramme,ageneralwellnessprogrammeforemployeeswithchronicillnessesandourfirststepintheactivetreatmentofHIVandAIDSaspartofanintegratedsystem.Thisincludescounsellingondiet,safesexandotherissues,theprovisionofimmuneboostersandpsychologicalsupportincludingsevenface-to-facemeetingswithamentalhealthprofessionaland24/7accesstohelpviaatoll-freenumber.
Ourmajorsitesalsoprovidepeereducationnetworks,inwhichtrainedemployeeshelptheircolleagueswithadviceandsupport.Thisensuresthatanymistrustofmanagementandevenofoccupationalhealthstaffdoesnotpreventpeoplefromfindingouttheirstatusand,wherenecessary,enteringthewellnessprogramme.
Peer education
OurSpringsmill,forexample,has12peereducatorswhoseconfidentialworktakesaholisticapproachtohealth,includingguidanceondiabetes,tuberculosisandotherconditions–itevenhelpspeoplegiveupsmoking.Itsmainfocus,however,isonencouragingpeopletotakeanHIVtest,whichistotallyvoluntary.
AttheSpringsmill,aswellasinequivalentinitiativeselsewhere,werunthe‘Aid4AIDS’programmeinwhichMondipaysforclinicaltreatmentforafflictedstaffmembers,includingtheprovisionofanti-retroviraldrugs.Thishashadsomeexcellentresultswherepeoplehavesuccessfullyreturnedtoworkfollowingtreatment.
In2007,wearepleasedtoreportthatweincreasedourtotalnumberofpeopleparticipatinginvoluntarycounsellingfrom3,313in2006to3,902people.Ofthese,2,797(72%)optedforHIVtesting.Intotal,178peopleareparticipatingintheMondiwellnessprogrammeand90areonanti-retroviraldrugs.TheHIVprevalenceinourSouthAfricanoperations,basedonknownavailablenumbers,hasbeencalculatedat2.54%.
Supporting communities
AmajorchallengeforMondiremainsinhelpingthefamiliesandcommunitiesofourworkers.Oursupportisalsoalreadyavailabletoourcontractorsinmanyofouroperations.WearealsoincreasinglyworkingwithgovernmentandNGOstosetupspecialisthealthcentresandgatewayclinicsthatprovideaccesstospecialisttreatment,aswellasinvestinginexistingresourcessuchastheKaMagwazaHospital.
Wherethesearesuccessful,weplantousethemasmodelsforwiderintroductionthroughoutourcommunities.Wewillreportonprogressinthisareainyearstocome.
HIV/AIDS programme in South Africa
2005 2006 2007
NumberofVCTuptake 3,494 3,313 3,902
NumberonWellnessProgramme 142 172 178
NumberonAnti-RetroviralTreatment 76 94 90
HIVprevalence Nodataa 4.3%b 2.5%
aHIVprevalencewasnotbeingreportedin2005.
bPrevalencewascalculatedfromresultsofsurveyscarriedoutatthesitesduringtheyear.In2007,thisnumberwascalculatedbasedonactualnumberofemployeesknowntobeHIVpositive.Note:theabovetableincludesdataforMondi’sSouthAfricanemployeesonly.
These notes refer to the table above.
Voluntary HIV/AIDS counselling
+18%increase from 2006 to 2007 in thepercentage of employees who underwent voluntary counselling for HIV/AIDS
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AppendixIndependentAssuranceReporttoMondiplcandMondiLimited
Mondi plc and Mondi Limited (Mondi Group) appointed Environmental Resources Management Limited (ERM) to provide independent assurance on selected sustainable development (SD) information presented in its Sustainability Report 2007 (the Report).
Safety (employee and contractor)
Numberofwork-relatedfatalinjuries
Losttimeinjuryfrequencyrate(per200,000hoursworked)
Health
Numberofnewcasesofoccupationaldisease
HIVprevalence(%)
Numberofemployeesthatreceivedvoluntarycounsellingandtheproportionwhichwentonfortestingduring2007
Numberofemployeesonwellnessprogrammes
Totalnumberofemployeesonanti-retroviraltreatment
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Environment
Totalenergyused(GJ)
TotalCO2emissionsfromelectricitypurchased,fossilfuelsandprocesses(tonnes)
TotalnumberoflevelIIandIIIenvironmentalincidentsreported
TotalnumberoflevelIIandIIIenvironmentalcomplaintsreceived
Totalwastetolandfill(tonnes)
TotalChemicalOxygenDemand(COD)emissions(tonnes)
TotalReducedSulphide(TRS)emissions(tonnes)
Human resources
Totalnumberofemployeesasatend2007
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Scope of our workWedesignedourengagementtoallowustoconcludeastowhetherMondiGrouphasappropriatelyreportedthefollowingintheReport:
Theselected2007SDperformancedata(data)setoutbelowandtheunderlyingdatacollection,aggregationandvalidationsystemsandprocessesinplace:
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Objectives, basis of our work and limitations
Weplannedandperformedourworktoobtainalltheinformationandexplanationsthatwebelievewerenecessarytogathersufficientevidencetoprovideabasisforourassuranceconclusionsastowhetherthereportedinformationanddatasetoutinthe‘Scopeofourwork’wasappropriatelyreported.
Weundertookassuranceworkatgroupandbusinessunitlevelsandaselectionoffoursites(Syktyvkar,RichardsBay,ŚwiecieandRaubling)forscopeA,atcorporatelevelonlyforscopeBandatcorporatelevelandasampleoftheRussianloggingoperationsforscopeC.Weselectedthesesitesonthebasisofrisk,materialitytotheselectedSDtopics,geographyandrepresentationofthedifferentbusinesses.
Ifwehadbeenaskedtoconcludeonwhetherthereportedinformationontheselectedassurancetopicsismateriallyaccurate,wewouldhaveneededtoconductmoreworkatsitelevelandgatherfurtherevidencetosupportourassuranceopinion.
Thereliabilityofthereportedinformationanddataissubjecttoinherentuncertaintiesgiventheavailablemethodsfordetermining,calculatingorestimatingtheunderlyinginformation.Itisimportanttounderstandourassuranceconclusionsinthiscontext.
Reporting criteria and assurance standards
MondiGrouphasdevelopeditsownSDreportingandinformationsystemandguidanceduring2007.However,asthissystemisstillbeingimplementedacrossMondiGroup,thedataintheReporthasbeenreportedusingtheAngloAmericanSDdatabase,reportingguidelinesanddefinitions.Thebasis,scope,methodologyandinherentlimitationsofthedataaresetoutinthe‘ScopeandAssurance’sectiononpages15and16.The‘Glossary’onpage56providesmorespecificdefinitionsforthedata.
MondiGrouphasdevelopeditsownsystemsandprocedurefortheresponsibleprocurementofwood,virginfibreandbiomassasdescribedonpage25.
WeperformedourworkinaccordancewithERM’sassurancemethodologywhichisbasedontheinternationalassuranceandauditstandards:ISAE3000,ISO19011and,whereappropriatetoourscopeofwork,AA1000AS.
Respective responsibilities and ERM’s independence
MondiGroupmanagementisresponsibleforpreparingtheReportandforthecollectionandpresentationofinformationinit.ERM’sresponsibilityistoexpressourassuranceconclusionsontheselectedscopeofworkagreedwithMondiGroup.
During2007,ERMhasworkedwithMondiGrouponotherconsultingengagements.ERMoperatesstrictconflictchecksandwehaveconfirmedourindependencetoMondiGroupfordeliveringthisassuranceengagement.
Our team and assurance activities
Amulti-disciplinaryteamofenvironmental,health&safety,forestry,socialandsustainabledevelopmentandassurancespecialistsperformedtheengagement.
Thealignmentofitsprocedurefortheresponsibleprocurementofwood,virginfibreandbiomasstotheForestStewardshipCouncil’s(FSC)StandardforCompanyEvaluationofFSCControlledWood(FSC-STD-40-005(Version2-1)EN)(October2006)(theFSCControlledWoodStandardVersion2-1);and
ThestatusofimplementationoftheMondiProcedurefortheProcurementofWood,VirginFibreandBiomass(September2006,version1).
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www.mondigroup.com Sustainabilityreport2007 Mondi Group 53
We conducted the following assurance activities:
ObtaininganunderstandingofandsampletestingoftheSDmanagementsystemsinplacetogenerate,aggregateandreporttheinformationanddatainlinewithMondiGroup’sSDreportingguidanceatgroup,businessunitandfoursites;
Interviewingaselectionofmanagementatgroup,businessunitandsiteleveltounderstandandsampletest,throughreviewofsupportingdocumentation,themanagementcontrolsinplacetoensurecompletedatathatisconsistentwithMondiGroup’sSDReportingguidanceandtounderstandSDperformancetrends;
Conductingananalyticalreviewoftheyearenddatareportedforconsistencywithourassurancefindings;
AssessingMondiGroup’sprocedurefortheresponsibleprocurementofwood,virginfibreandbiomassagainsttherequirementsoftheFSCControlledWoodStandard;
ConductinggrouplevelinterviewsanddocumentationreviewtounderstandtheproductionprocessoftheReportincludingassociatedmanagementdisclosuresregardingtheselectedSDinformationanddata;
Reportedourassurancefindingstomanagementastheyarosetoprovidethemwiththeopportunitytoaddressthempriortofinalisationofourwork;and
ReviewedthepresentationoftheselecteddataintheReporttoensureconsistencywithourfindings.
Our conclusionsBasedonourworkundertakenasdescribedabove,weconcludethat,inallmaterialrespectsMondiGrouphasappropriatelyreported:
Theselected2007SDperformancedatasetonpages54and55,andtheassociatedunderlyingdatacollection,aggregationandvalidationsystemsandrelateddisclosuresondataqualitysetoutonpages15and16;
ThestatusofalignmentofitsProcedurefortheResponsibleProcurementofWood,VirginFibreandBiomasstotheFSCControlledWoodStandardVersion2-1onpage25;and
ThestatusofimplementationoftheMondiProcedurefortheResponsibleProcurementofWood,VirginFibreandBiomassassetoutonpage25.
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Our key observations and recommendationsBasedontheassuranceactivitiessetoutabove,andwithoutaffectingourassuranceconclusions,weprovidethefollowingkeycommentsandrecommendationsforimprovement.
HighlightsinthemanagementandreportingofSDissuessince2006:
During2007,MondiGrouphasdevelopeditsownSDmanagementandinformationsystems,thataretailoredtotheneedsofitsbusinessandthataddresstherequirementsofthekeyexternalstandardsandcommitmentsrelevanttoitsbusinessaspresentedonpages8to10;and
InrelationtoSDperformancereporting,oncefullyimplemented,thenewSDreportingandinformationsystem(MORIS)shouldbeamorerelevanttoolfortheoperationsasitcanbeusedforinternalmanagementandbenchmarkingofperformanceaswellasforMondiGrouplevelexternalreporting.
Areastoconsiderforfutureimprovements:
TodevelopenhancedMondiGroup-widetraining,guidanceandsupporttoitsoperationsduring2008toensureeffectiveimplementationofitsnewSDinformationsystems;
TofurtherrefineitsnewSDreportingandinformationsystemtoensurethatitfullymeetsMondiGroup’sfuturemanagementinformationrequirementsandexternalreportingcommitments,particularlyintheareasofreportinghumanresourcesinformationandhumanrights;and
TofurtheralignitswoodprocurementandtracingprocedurestotherequirementsoftheFSCControlledWoodStandardVersion2-1thatunderpinsitscommitmenttousewood,fibreandbiomassfromsustainablesources.
EnvironmentalResourcesManagementLimitedLondon,UK
31March2008
ERMisanindependentglobalproviderofenvironmental,socialandcorporateresponsibilityconsultingandassuranceservices.Overthepast4yearswehaveworkedwithoverhalfoftheworld’s500largestcompanies,inadditiontonumerousgovernments,internationalorganisationsandNGOs.
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54 Mondi Group Sustainabilityreport2007
AppendixDatatables
Data for Environmentally Material Operations for the year ended 31 December 2007 CO2from CO2from Total Raw Waterused Total Particulate Solid Waste COD AOX ProductionProduction processes& electricity energy material forprimary Reduced emissions wasteto water inwaste inwaste for2006† for2007† fossilfuelsa purchasedb usedc used activities Sulphidesd landfill flow water water
1,000 1,000 1,000 1,000 1,000 tonnes tonnes tonnes 1,000 tonnes tonnes 1,000 1,000 tonnes tonnes GJ tonnes m3 m3 tonnes tonnes
Austria 142 81 3,939 468 6,102 0 0 63 5,431 3,383 0 374 332(HausmeningandKematen)
Szolnok,Hungary 57 24 1,313 89 1,367 0 0 92 1,066 733 0 180 116
Hadera,Israel 75 73 1,428 108 1,005 0 0 581 788 862 0 133 142
Ružomberok,Slovakia 213 59 13,439 1,521 23,697 7 83 29,798 26,465 2,482 12 511 514
Syktyvkar,Russia 2,076 0 53,370 1,383 81,336 95 2,193 5,331 67,105 7,576 58 806 823
Merebank, 481 323 6,941 392 6,004 0 29 79,565 5,319 3,404 0 414 470SouthAfrica
RichardsBay, 304 203 20,708 2,271 25,377 14 497 47,618 21,717 16,862 69 686 716SouthAfrica
Frantschach,Austria 36 6 6,515 468 8,843 0 50 5,441 5,845 388 0 300 307
Štĕtí,CzechRepublic 493 16 13,478 1,603 21,426 11 89 21,597 27,831 3,205 14 471 478
Stambolijski,Bulgaria 103 51 2,277 349 14,001 0 0 21,162 18,098 1,850 0 92 92
Väja,Sweden 18 8 4,708 464 10,886 0 0 11,893 10,886 3,073 0 231 232
Cartonstrong,Italy 24 20 619 106 1,033 0 0 7,682 907 1,859 0 92 97
FrohnleitenAustria 48 8 1,113 173 1,223 0 0 0 895 2,434 0 164 161
Niedergösgen, 4 0 285 185 1,090 0 0 3,200 1,600 1,420 0 164 175Switzerland
Raubling,Germany 106 115 3,007 238 1,500 0 0 422 1,363 353 0 213 210
Świecie,Poland 352 113 14,161 1,997 22,589 26 338 9,393 20,435 3,126 0 824 842
Holcombe,UK 29 21 729 105 640 0 0 4,832 749 2,623 0 101 97
Springs,SouthAfrica 114 102 1,665 139 1,508 0 116 23,937 1,114 2,164 0 133 128
PietRetief, 133 71 1,331 137 1,052 0 346 14,500 608 4,186 0 126 125SouthAfrica
Felixton,SouthAfrica 104 66 1,401 0 2,143 0 0 6,202 2,055 43,007 0 118 111
MondiShanduka 0 486 1,826 398 5,090 0 0 73,584 3,861 4,245 0 215 222Newsprint,SouthAfrica
Totalsfor2007 4,912 1,846 154,253 12,594 237,912 153 3,741 366,893 224,138 109,235 153 – 6,390
Totalsfor2006* 4,731 2,069 151,386 12,061e 253,431 158 3,404 367,779 238,013 106,846 406 6,326 –
a CO2emissionsfromprocessesandfossilfuelsconsumedarecalculatedusingtheWBCSDGreenhouseGasProtocolcalculationtoolsanddonotincludeemissionsfrompurchasedelectricity.b CO2emissionsfrompurchasedelectricityarecalculatedusingcountry-specificfactorsfornationalgridelectricity.c Totalenergyusediscalculatedfromelectricitypurchased,energygeneratedfrombiomassandfossilfuelsconsumed,forownproductionandforthirdparties.d TheSyktyvkarmillhasonlyreporteditsH2Sandmethylmercaptans,whichaccountfor80%ofthemill’stotalTRSemissions.TheŚwieciemillhascalculateditsTRSemissionsbasedonaveragesofsamplestakenat
variousintervals.Thiscouldleadtosomeinaccuraciesinthenumbersreported.e TotalexcludesdataforStambolijskiandMondiShandukaNewsprint.* Totalsfor2006havebeenadjustedtoincludedataforStambolijskiorMondiShandukaNewsprint.Furthermore,someofthe2006datahasbeenrestatedduetofurtherimprovementsandrefinements
inthedatacollectionprocesses.† 2006and2007datahasbeenadjustedsothatforallMondisitesintheabovedatatable,dataisreportedconsistentlyaccordingtodefinitionsfortotalsaleableproduction.
Note:theabovetableincludesdataforMondi’senvironmentallymaterialoperationsasdefinedintheGlossaryoftermsonpage56.
www.mondigroup.com Sustainabilityreport2007 Mondi Group 55
“Althoughourrecordisgood,weregardeveryinjuryasavoidableandeveryfatalityastotallyunacceptable.Eachincidentisthoroughlyinvestigatedandpromptactiontakentoensurethatsuchaccidentsareneverrepeated.”
David Hathorn, chiefexecutive
Environmental incidents and complaints 2005 2006 2007
LevelIIIncidents 22 10 22
LevelIIIIncidents 0 0 0
LevelIIComplaints 1 0 0
LevelIIIComplaints 0 0 0
Note:theabovetableincludesdataforMondi’senvironmentallymaterialoperationsasdefinedintheGlossaryonpage56.
Safety data 2005 2006 2007
Numberofwork-relatedfatalities 5 1 3
Numberoflost-timeinjuries 193 178 125
Lost-timeinjuryfrequencyrate(LTIFR)* 0.30 0.31 0.23
Note:theabovetableincludesdataforemployeesandcontractors.*LTIFRiscalculatedasthenumberoflost-timeinjuriesdividedbythenumberofhoursworkedper
200,000manhours.Itexcludesrestrictedworkcases.
HIV/AIDS data for 2007 2005 2006 2007
Numberofemployeeswhounderwentvoluntarycounselling 3,494 3,313 3,902
NumberofemployeeswhounderwentHIVtesting Nodata* Nodata* 2,797
Numberofemployeesonwellnessprogramme 142 172 178
EmployeesonART 76 94 90
NumberofemployeesknowntobeHIVpositive Nodataa Nodataa 119
HIVprevalence Nodatab 4.3%c 2.5%
*NumberofemployeeswhounderwentHIVtestingwasnotbeingreportedduring2005and2006.aNumberofemployeesknowntobeHIVpositivewasnotbeingreportedduring2005and2006.bHIVprevalencewasnotbeingreportedin2005.cPrevalencewascalculatedfromresultsofsurveyscarriedoutatthesitesduringtheyear.In2007,
thisnumberwascalculatedbasedonactualnumberofemployeesknowntobeHIVpositive.Note:theabovetableincludesdataforMondi’sSouthAfricanemployeesonly.
Occupational health dataNumberofnewcases 2005 2006 2007
Noiseinducedhearingloss 4 8 0
Occupationalasthma/chronicbronchitis 3 1 0
Handarmvibration 0 2 0
Musculoskeletaldisease 2 0 0
Total 9 11 0
Note:theabovetableincludesdataforemployeesfromMondi’smanagedoperationsandtheindependentlymanagedoperation,MondiShandukaNewsprint.
Occupational health diseases reported in 2007
0
Voluntary HIV/AIDS counselling
+18%increase from 2006 to 2007 in thepercentage of employees who underwent voluntary counselling for HIV/AIDS
Decrease in LTIFR from 2006 to 2007
26%
56 Mondi Group Sustainabilityreport2007
Glossary of terms
Absorbable organic halogens (AOX) Expressestheamountofchlorine-boundorganicsubstancesinwastewater.
AIDS AcquiredImmuneDeficiencySyndrome.
ART Anti-retroviraldrugsforHIV/AIDS.
Assurance Asystemofcorporategovernancethatprovidesfeedbackonthelevelofintegrityofreportedinformation.
Best Available Technique (BAT) Technicallyandeconomicallyfeasibleenvironmentaltechnologythatisefficientandadvanced,generallytoreduceemissionsandtheimpactontheenvironmentasawhole.
Biomass Organicmaterialgeneratedbythegrowthofmicro-organisms,plantsandanimals.
Black person IntheSouthAfricancontextagenerictermwhichmeansAfricans,ColouredsandIndians.
Broad-Based Black Economic Empowerment Act TheSouthAfricanActthatdefinestheeconomicempowermentofallblackpeoplethroughdiversebutintegratedsocial-economicstrategies.
Chemical Oxygen Demand (COD) Theamountofoxygenrequiredtodegradetheorganiccompoundsofwastewater.Itiscommonlyusedtomeasuretheamountoforganiccompoundsinwater.
Cleaner production Thecontinuousapplicationofapreventative,life-cycleenvironmentalstrategytoincreaseefficiencyandreduceenvironmentalpollutionandrisk.
Climate and culture surveys Surveysconductedtogaugethelevelofemployeesatisfactionintheworkenvironment.
CO2 emissions from fossil fuels Carbondioxideemissionsfromfossilfuelsusedinprocessesandutilitiescalculatedbyapplyingconversionfactorstofuelusagevolumes.
CO2 emissions from electricity Calculatedquantityofcarbondioxideemittedinthegenerationofelectricity,whichissubsequentlypurchasedbytheoperation.Country-specificconversionfactorsareusedinthecalculation,unlessregionorsite-specificconversionfactorsareavailable.
CO2 emissions from processes Carbondioxideemissionsfrompointorfugitivesources.Itexcludescarbondioxidefrombiomasssources.
Community Engagement Plan Formalthree-yearsiteplansthatidentifystakeholders,thechannelstobeusedforengagement,thekeyissuesandtheimpactstobemanaged,aswellasmanagementaccountabilityandresources.
Community surveys Surveysconductedtogaugethelevelofsatisfactionofcommunitiesaffectedbyouroperations.
Corporate Social Investment (CSI) Investmentbycompaniesinareasoutsidetheircorebusinessactivities,usuallyinsocio-economicprojectsthatpromotecommunitydevelopmentandeducation.
DLC Dual-listedcompany.
Ecosystems Services Review (ESR) Atooltoproactivelyidentifyrisksandopportunitiesinacompany’sdependenceonecosystems.
Elemental Chlorine-Free (ECF) Pulp Bleachedpulpwithouttheuseofanyelementalchlorine,althoughchlorinecompoundssuchaschlorinedioxideorsodiumhypochloritemaybeusedinthebleachingprocess.
Environmentally material (or significant) operation Listofoperationsthatexceedthe1%thresholdondischarges,wasteandenergyconsumption.Significantoperationsincludeallprimaryproductionssitesandselectedconversionsites.
Fatal injury Thedeathofanemployeeorcontractorresultingfromawork-relatedinjury.
Forest Stewardship Council (FSC) Councildevotedtomanagingforestsinasustainablemanner,endorsedbyinternationalenvironmentalorganisationsandofferinganinternationallyacceptedsustainableforestrycertificationscheme.
FSC Standard for Company Evaluation of FSC Controlled Wood (FSC-STD-40-005 (version 2-1) EN) Astandardthatspecifiesbasicrequirementsforforestrymanagementcompaniestodemonstratetoacompanyorthirdpartycertificationbodythatallwoodsourcedorsuppliediscontrolled.
High Conservation Value (HCV) forests Forestsofoutstandingandcriticalimportanceduetotheirenvironmental,socio-economic,biodiversityorlandscapevalues.
Historically disadvantaged individual IntheSouthAfricancontext,apersonwhoduetotheapartheidpolicythatwasinplace,hadnovotingrightsinthenationalelectionspriortotheintroductionoftheConstitutionoftheRepublicofSouthAfrica.Italsoreferstowomenandpeoplewithdisabilities.
HIV HumanImmunodeficiencyVirus.
HIV prevalence TheproportionofourownemployeesthatareknowntobeinfectedwithHIV.
ISO 14001 InternationalstandardcreatedbytheInternationalStandardsOrganization(ISO)forformalandcertifiedenvironmentalmanagementsystems.
ISO 9001 InternationalstandardcreatedbytheInternationalStandardsOrganization(ISO)forformalandcertifiedqualitymanagementsystems.
Level II and level III environmental incidents and complaints Environmentalincidentsandcomplaintsareclassifiedaseither:LevelII:moderateimpact,medium-termeffect;LevelIII:significantimpact,extensiveorlong-termeffect.
Lost-time injury (LTI) Anyoccupationalinjurywhichrendersthepersonunabletoperformhis/herregulardutiesforonefullshiftormorefollowingthedayonwhichtheinjurywasincurred,whetherascheduledworkdayornot.
Lost-time injury frequency rate (LTIFR) Thenumberoflost-timeinjuriesper200,000manhoursworked.
Managed operations ThoseoperationsoverwhichMondihasmanagementcontrol.ThisincludesalloperationsinwhichMondiownsmorethan50%.
Meridian Institute Anorganisationthatbringstogethergroupswithdiverseperspectivestosolveproblemsofmutualinterest,particularlythosemostcontentiouspublicpolicyissues.
MORIS Mondireportingandinformationsystemforsustainabilitydata.
Non-governmental Organisation (NGO) Organisationthatundertakesactivitiesonalocal,nationalorinternationalleveloutsideofinstitutionalizedpoliticalstructures.
Number of employees Thetotalnumberofpermanentemployeesasattheendofthereportingperiod.
Occupational health disease Adiseasethatresultsfromexposuretoawork-relatedhazardandisclassifiedanddiagnosedassuchinaccordancewiththeappropriatelegislation.
OHSAS 18001 Aninternationaloccupationalhealthandsafetymanagementsystemspecification.
Self-produced energy Theenergythatweproducefromfossilfuelsorbiomassatourownproductionfacilities.
Small and medium sized enterprise (SME) Companieswhoseheadcount,turnover,andbalancesheetareunderdefinedlimits.
Socio-economic Assessment Toolbox (SEAT) MethodologydevelopedbyAngloAmericanplctoestablishthesocialandeconomicimpactsonoursurroundingcommunities.
Silver Taiga KomiRegionalNon-ProfitFoundationfoundedonthebasisoftheWorldwideFundforNature(WWF)KomiProjectOfficetoimplementKomiModelForestProject(“BorealForestConservationandManagement:ModelForest“Priluzje”,KomiRepublic,Russia”).
Stakeholders Allthosewhohaveadirectstakeinorareimpactedonbyourbusiness.Thisincludesouremployees,contractors,shareholders,customers,governmentsandthecommunitiesinwhichweoperate.
Sustainable Development Management System (SDMS) Managementprocessesanddocumentationthatcollectivelyprovideasystematicframeworkforensuringthattasksareperformedcorrectly,consistentlyandeffectivelyacrosstheGrouptoachieveaspecifiedoutcomeandtodrivecontinualimprovementinsustainabledevelopmentperformance.
Sustainable forestry Thepracticeofforestmanagementtoyielddesirableforestproducts,optimisethebenefitstothecommunityfromallusesofforestsandmaintaintheecologicalhealthandbiodiversityoftheforestforthefuture.
Tall oil Oilproducedasaby-productofthepulpingprocess.
Tonnes Ametrictonnewhichisameasurementofmassequalto1,000kilograms.
Total energy used Calculatedfromelectricitypurchased,biomassandfossilfuelsused.
Total Reduced Sulphides (TRS) Reducedsulphurcompounds.TRSisagaseousmixtureofcompoundsconsistingmainlyofhydrogensulphideH2Sinthepaperandpackagingindustry.TRScompoundscanproduceoffensiveodours.
Voluntary Counselling and Testing (VCT) AprogrammeinwhichemployeesundergovoluntarycounsellingandtestingforHIV/AIDS.
Waste to landfill Hazardousandnon-hazardouswastethatisproducedbytheoperationandsenttoalegallandfill.
Water use for primary activities Totalnewormake-upwaterenteringtheoperationandusedfortheoperation’sprimaryactivities.Primaryactivitiesarethoseinwhichtheoperationengagestoproduceitsproductsandexcludesnon-contactcoolingwater.
WBCSD WorldBusinessCouncilforSustainableDevelopment.
Wellness programme Generalwellnessprogrammeofferedtoemployeeswithchronicillnessessuchasdiabetes,stress-relateddiseasesandHIV/AIDS.
Wood Information Platform (WIP) Mondi’sinformationsystemforreportingandmonitoringallwood,fibreandbiomasspurchases.
WWF Thelargestindependentconservationorganisationwiththefundamentalaimofsupportingtheworld’sbiologicaldiversity.
World Resources Institute (WRI) Anon-profitorganisationsupportingresearch,conferences,education,training,andpolicyinitiativesforenvironmentalstewardshipandsustainabledevelopment.
Sustainabilityreport2007 Mondi Group 57
GRI G3 Reporting Guidelines Index
GRIRef Description Levelofreporting Page
1.1 Statementfromthemostseniordecision-makeroftheorganisation • 4,5
1.2 Descriptionofkeyimpacts,risksandopportunities • Reported throughout thereport
2.1 Nameoftheorganisation • Frontcover,2
2.2 Primarybrands,productsand/orservices • 3
2.3 Operationalstructureoftheorganisation • 3
2.4 Locationoforganisation’sheadquarters • 3
2.5 Numberofcountrieswheretheorganisationoperates,andnamesofcountrieswitheithermajoroperationsorthatare specificallyrelevanttothesustainabilityissuescoveredinthereport • 2
2.6 Natureofownershipandlegalform • 3
2.7 Marketsserved • 3,17
2.8 Scaleofreportingorganisation • 2,17,18
2.9 Significantchangesduringthereportingperiodregardingsize,structureorownership • 17
2.10 Awardsreceivedinthereportingperiod • 38
3.1 Reportingperiod • 15
3.2 Dateofmostrecentpreviousreport(ifany) • 15
3.3 Reportingcycle(annual,biennial,etc.) • 15
3.4 Contactpointforquestionsregardingthereportoritscontents • Insidebackcover
3.5 Processfordefiningreportcontent • 15
3.6 Boundaryofthereport • 15
3.7 Stateanyspecificlimitationsonthescopeorboundaryofthereport • 15,16
3.8 Basisforreportingonjointventures,subsidiaries,leasedfacilities,outsourcedoperations,andotherentitiesthatcan significantlyaffectcomparabilityfromperiodtoperiodand/orbetweenorganisations • 15
3.9 Datameasurementtechniquesandthebasesofcalculations • 15,16
3.10 Explanationoftheeffectofanyre-statementsofinformationprovidedinearlierreports • 15,16
3.11 Significantchangesfrompreviousreportingperiodsinthescope,boundary,ormeasurementmethodsappliedinthereport • 15,16
3.13 Policyandcurrentpracticewithregardtoseekingexternalassuranceforthereport • 16
4.1 Governancestructureoftheorganisation • 12
4.12 Externallydevelopedeconomic,environmental,andsocialcharters,principles,orotherinitiativestowhichtheorganisation subscribesorendorses • 13,14,15,44
4.13 Membershipsinassociations • 13,14
4.14 Listofstakeholdergroupsengagedbytheorganisation • 13,14,15,43
4.15 Basisforidentificationandselectionofstakeholderswithwhomtoengage • 13,15
4.16 Approachestostakeholderengagement • 13,14,15,43
4.17 Keytopicsandconcernsthathavebeenraisedthroughstakeholderengagement • Reported throughout thereport
4.2 IndicatewhethertheChairofthehighestgovernancebodyisalsoanexecutiveofficer • 12
4.3 Fororganisationsthathaveaunitaryboardstructure,statethenumberofmembersofthehighestgovernancebody thatareindependentand/ornon-executivemembers.Statehowtheorganisationdefines‘independent’and‘non-executive’ • 12
4.4 Mechanismsforshareholdersandemployeestoproviderecommendationsordirectiontothehighestgovernancebody • 59
4.8 Internallydevelopedstatementsofmissionorvalues,codesofconduct,andprinciplesrelevanttoeconomic, • Policystatements environmental,andsocialperformanceandthestatusoftheirimplementation reported throughout thereport
4.9 Proceduresofthehighestgovernancebodyforoverseeingtheorganisation’sidentificationandmanagementofeconomic, environmental,andsocialperformance • 12,13
EC1 Economicvaluegeneratedanddistributed,includingrevenues,operatingcosts,employeecompensation,donations andothercommunityinvestments,retainedearnings,andpaymentstocapitalprovidersandgovernments(core) • 17,18,19
EC6 Policy,practices,andproportionofspendingonlocally-basedsuppliersatsignificantlocationsofoperation(core) • 45,48
•Fullyreported•PartiallyreportedN/ANotapplicable
ThetablebelowillustratesthoseGlobalReportingInitiative(GRI)GR3guidelineparametersagainstwhichMondihasreported.Thefullsetcanbefoundatwww.mondigroup.com
58 Mondi Group Sustainabilityreport2007
GRIRef Description Levelofreporting Page
GRI G3 Reporting Guidelines Index continued
EC7 Developmentandimpactofinfrastructureinvestmentsandservicesprovidedprimarilyforpublicbenefit throughcommercial,in-kindorprobonoengagement(core) • 43,44,45,49,51
EC8 Developmentandimpactofinfrastructureinvestmentsandservicesprovidedprimarilyforpublicbenefit throughcommercial,in-kind,orprobonoengagement(core) • 42,43,44,48,50
EC9 Understandinganddescribingsignificantindirecteconomicimpacts,includingtheextentofimpacts(additional) • 19,43,44,45,49,51
EN1 Materialsusedbyweightorvolume(core) • 54
EN2 Percentageofmaterialsusedthatarerecycledasinputmaterials(core) • 35
EN3 Directenergyconsumptionbyprimaryenergysource(core) • 29,30,54
EN4 Indirectenergyconsumptionbyprimarysource(core) • 29,30,54
EN5 Energysavedduetoconservationandefficiencyimprovements(additional) • 29
EN6 Initiativetoprovideenergy-efficientorrenewableenergybasedproductsandservices,andreductionsinenergy requirementsasaresultoftheseinitiatives(additional) • 29,30
EN7 Initiativestoreduceindirectenergyconsumptionandreductionsachieved(additional) • 29,30
EN8 Totalwaterwithdrawalbysource(core) • 30,54
EN9 Watersourcessignificantlyaffectedbywithdrawalofwater(additional) • 24
EN11 Locationandsizeoflandowned,leased,managedin,oradjacenttoprotectedareasandareasofhighbiodiversity valueoutsideprotectedareas(core) • 21,23
EN12 Descriptionofsignificantimpactsofactivities,products,andservicesonbiodiversityinprotectedareas andareasofhighbiodiversityvalueoutsideprotectedareas(core) • 23
EN13 Habitatsprotectedorrestored(additional) • 22,23,24
EN14 Strategies,currentactions,andfutureplansformanagingimpactsonbiodiversity(additional) • 23,24,25
EN16 Totaldirectandindirectgreenhousegasemissionsbyweight(core) • 29,54
EN17 Otherrelevantindirectgreenhousegasemissionsbyweight(core) N/A
EN18 Initiativestoreducegreenhousegasemissionsandreductionsachieved(additional) • 29,30
EN19 Emissionsofozone-depletingsubstancesbyweight(core) N/A
EN20 NOx,SOxandothersignificantairemissionsbytypeandweight(core) • 31,54
EN21 Totalwaterdischargebyqualityanddestination(core) • 31,54
EN22 Totalweightofwastebytypeanddisposalmethod(core) • 32,54
EN23 Totalnumberandvolumeofsignificantspills(core) • 28
EN25 Identity,size,protectedstatus,andbiodiversityvalueofwaterbodiesandrelatedhabitatssignificantlyaffected bythereportingorganisation’sdischargesofwaterandrunoff(additional) • 24
EN26 Initiativestomitigateenvironmentalimpactsofproductsandservices,andextentofimpactmitigation(core) • 34,35
EN27 Percentageofproductssoldandtheirpackagingmaterialsthatarereclaimedbycategory(core) • 35
EN28 Monetaryvalueofsignificantfinesandtotalnumberofnon-monetarysanctionsfornon-compliancewith environmentallawsandregulations(core) • 28
EN30 Totalenvironmentalprotectionexpendituresandinvestmentsbytype(additional) • 24,28,30
LA1 Totalworkforcebyemploymenttype,employmentcontract,andregion(core) • 2
LA7 Ratesofinjury,occupationaldiseases,lostdays,andabsenteeism,andnumberofwork-relatedfatalitiesbyregion(core) • 37,38
LA8 Education,training,counselling,prevention,andrisk-controlprogrammesinplacetoassistworkforcemembers, theirfamilies,orcommunitymembersregardingseriousdiseases(core) • 38,43,44,51
LA11 Programmesforskillsmanagementandlifelonglearningthatsupportthecontinuedemployabilityofemployeesandassistingtheminmanagingcareerendings(additional) • 40
HR2 Percentageofsignificantsuppliersandcontractorsthathaveundergonescreeningonhumanrightsandactionstaken(core) • 44
HR9 Totalnumberofincidentsofviolationsinvolvingrightsofindigenouspeopleandactionstaken • 50
SO1 Nature,scopeandeffectivenessofanyprogrammesandpracticesthatassessandmanagetheimpactsofoperationsoncommunities,includingentering,operatingandexiting(core) • 43
SO2 Percentageandtotalnumberofbusinessunitsanalysedforrisksrelatedtocorruption(core) • 44,45
SO4 Actionstakeninresponsetoincidentsofcorruption(core) • 44,45
SO7 Totalnumberoflegalactionsforanti-competitivebehaviour,anti-trustandmonopolypracticesandtheiroutcomes(additional) • 45
PR1 Life-cyclestagesinwhichhealthandsafetyimpactsofproductsandservicesareassessedforimprovement, andpercentageofsignificantproductsandservicescategoriessubjecttosuchprocedures(core) • 34,35
PR3 Typeofproductandserviceinformationrequiredbyprocedures,andpercentageofsignificantproductsandservices subjecttosuchinformationrequirements(core) • 34,35
PR6 Programmesforadherencetolaws,standards,andvoluntarycodesrelatedtomarketingcommunications, includingadvertising,promotion,andsponsorship(core) • 34,35
•Fullyreported•PartiallyreportedN/ANotapplicable
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