WORKING TOGETHER SUSTAINABLY · fibre comes from sawmilling and logging residues. These mills source much of their wood from Forest Stewardship Council ® (FSC )-certified forests

WORKINGTOGETHERSUSTAINABLY

EnvironmentalSustainability Report for the 2014 calendar year

Contact

For more informationor feedback:

[email protected]

Carter Holt HarveyPulp & Paper LimitedPrivate Bag 92004Victoria Street WestAuckland 1142New Zealandwww.chhpulpandpaper.comwww.chhpackaging.com

Disclaimer

This report has been compiled by Carter Holt Harvey Pulp & Paper Limited (‘CHH PP’) from internal records and publicly available information for general information purposes and not as specifi c advice to any particular recipient or person.

Due care has been exercised in compiling the report and CHH PP believes the information contained herein to be correct but has not subjected it to independent review or audit.

To the maximum extent permitted by law, CHH PP, its related companies and affi liates and/or any of their respective directors, offi cers, employees, agents, offi cials, advisors or representatives, as the case may be:

› make no representation or warranty, nor provide any undertaking, expressed or implied, as to the timeliness, accuracy, adequacy, reliability, reasonableness or completeness of the information or any opinion or statement contained in this report

› shall have no liability (including for negligence) for any statements, opinions, information or matters (express or implied) arising out of, contained in or derived from (directly or indirectly), nor for any errors or omissions from, or failure to correct, any information in this report

› are under no duty of disclosure or fi duciary duty or any obligation to update any information contained in this report or any other written or oral communication transmitted or made available to a recipient, or to notify any person should any such information cease to be correct after it is provided and each recipient, by accepting delivery of this report, waives all rights in such regard.

Placeholder, not for PrintingLogo use must be

approved by Blue Star Group NZ LtdMin Size 17mm Height

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1CHIEF EXECUTIVE’SMESSAGE

22014HIGHLIGHTS

3PURPOSEOUR BUSINESS & APPROACH

P1 P2 P3

4PRODUCTSUNLOCKING THE VALUEOF FIBRE

5PLANETRESPONSIBLE SOURCINGOF FIBRE

6PROCESSSTRIVING FOR OPERATIONALEXCELLENCE

P8 P13 P19

7PARTNERSHIPCOLLABORATION WITHOUR STAKEHOLDERS

8PERFORMANCEDATA & TRENDSFROM 2014

P26 P33

About this Report

This Environmental Sustainability Report is the latest in a series of documents presenting Carter Holt Harvey Pulp & Paper Group’s environmental performance since 2007.

Scope

This report covers the calendar year 2014 and includes environmental performance data for the manufacturing operations of Carter Holt Harvey Pulp & Paper Group. Manufacturing operations are defi ned as Kinleith Mill, Tasman Mill, Penrose Mill, Packaging Australia and Packaging New Zealand. Environmental performance data are not presented for the service-focused sectors, i.e. Corporate Offi ces, Fullcircle Recycling and Lodestar.

Due to shared wastewater treatment infrastructure, certain effl uent data presented for the Tasman Mill include those from the neighbouring newsprint operation owned and operated by Norske Skog Tasman. These are identifi ed in the notes to the data tables.

Reporting Standards

The contents of this report have been prepared with due reference to international reporting standards, including the Global Reporting Initiative Sustainability Reporting Guidelines Version 3.1 (G3.1) (‘the GRI’) and the Greenhouse Gas Protocol Corporate Reporting Standard (‘the GHG Protocol’), for guidance.

Data are collected and presented in accordance with the following GRI Core Environmental Performance Indicators:

EN1 Materials used by weight or volume

EN3 Direct energy consumption by primary energy source

EN4 Indirect energy consumption by primary source

EN8 Total water withdrawal by source

EN16 Total direct and indirect greenhouse gas emissions by weight (Scope 1 and Scope 2)

EN21 Total water discharge by quality and destination

EN22 Total weight of waste by type and disposal method

Data Trends

No adjustments to the bases were required in 2014.

Packaging Australia

Packaging New Zealand

% C

hang

e%

Cha

nge

–30

–20

–10

0

10

20

30

40

2014201320122011201020092008

Recovered fibre in feedstock

Waste to landfill (estimated)

Water take

Scope 1 and 2 emissions (CO2-e)

Total energy consumption

–80

–70

–60

–50

–40

–30

–20

–10

0

10

20

30

2014201320122011201020092008



Water take



2007 BASE

2007 BASE

Selected key indicators (indexed to output) for 2014 relative to 2007 (base year).

8 | PERFORMANCE

Data & trends from 2014 | Packaging manufacturing operations 37Contents

1

Welcome to Carter Holt Harvey Pulp & Paper Group’s Environmental Sustainability Report for the 2014 calendar year.

The 2014 purchase of Carter Holt Harvey Pulp & Paper Group by joint venture partners Oji Holdings Corporation (Oji) and Innovation Network Corporation of Japan (INCJ) is a milestone for our business. The new owners are long-term investors with proud histories. Oji is a large and respected company with extensive experience in pulp, paper and packaging, including with existing New Zealand assets. INCJ is a corporation sponsored by the Japanese government and Japanese private enterprise, aimed at promoting innovation and enhancing Japanese businesses.

Both owners bring expanded horizons to our business. Oji, in particular, will bring considerable expertise to boost our ability to develop even better products and services for our customers. Oji and INCJ both hold innovation as a core value. We look forward to ‘growing together’ on new and improved ways of doing business.

Oji and INCJ also bring a strong commitment to sustainability. We are proud to be part of a group aspiring to ‘zero environmental burden’. We also continue to take seriously our responsibility to maintain and build relationships with our local communities, reflecting Carter Holt Harvey Pulp & Paper Group’s strong presence within regional New Zealand.

So, welcome to Carter Holt Harvey Pulp & Paper Group’s 2014 environmental sustainability report. This is a demonstration of our ongoing commitment to being a responsible business and the importance of sharing information with all our stakeholders.

Dr Jon Ryderchief executive carter holt harvey pulp & paper limited

1 | CHIEF EXECUTIVE’S MESSAGE

2

2 | HIGHLIGHTS

2014 Highlights

213,754 TONNESRECOVERED FIBRE UTILISED BY KINLEITH AND PENROSE MILLS IN 2014

6.4%ENERGY FROM GEOTHERMAL STEAM

73.8%ENERGY FROM BIOMASS

FOREST STEWARDSHIP COUNCIL (FSC®) CHAIN OF CUSTODY (CoC) CERTIFICATION FOR PULP AT BOTH THE KINLEITH AND THE TASMAN MILLS AND FOR PAPER AT KINLEITH MILL

Kinleith and Tasman Mills generate close to half of their electricity requirements internally.

Manufacturing Operations: Energy Sources, 2014

42.1% OF WASTE DIVERTED FROM LANDFILL

298,000 TONNESRECOVERED FIBRE COLLECTED BY FULLCIRCLE RECYCLING IN 2014

47.1%

KINLEITHMILL

48.4%

TASMANMILL

2014 Internal electricity generation

2014 Purchased electricity from grid

80.2% RENEWABLE ENERGY (BIOMASS, GEOTHERMAL STEAM)Contribution from purchased electricity is not included.


4

3 | PURPOSE

Our business & approach | Who we are

Leading Carter Holt Harvey Pulp & Paper Group brands include the HI WHITE™ and K25™ market pulps, while containerboards are sold under the FUSION™ banner. The company’s packaging products are used across a range of industries, from produce to manufactured goods.

Carter Holt Harvey Pulp & Paper Group is one of Australasia’s leading producers of market pulp, paper and fibre-based packaging.

The majority of our operations are based in New Zealand, where we are the sole manufacturer of kraft pulps, packaging papers and corrugating paperboards for local and global markets.

Market kraft pulps are produced at our Kinleith and Tasman Mills and used in the manufacture of various papers, containerboards and specialty products. We produce paper products at Kinleith and Penrose Mills and a range of packaging products at our sites throughout New Zealand and Australia.

Two service businesses support our manufacturing operations: Lodestar and Fullcircle Recycling.

5Our business & approach | Where we are

3 | PURPOSE

BRISBANEFoodservice – Food packaging, paper cups

SYDNEYLansvale – Corrugated packaging

CHRISTCHURCHCase South Island – Corrugated packaging

LEVINCase Central –

Corrugated packaging

TOKOROAKinleith Mill – Kraft pulps,

packaging papers

HAMILTONSpecialty Boards –

Pasted board, bulk bins

AUCKLANDPenrose Mill – Recycled fibre corrugating medium

Case Northern – Corrugated packaging

Paper Bag – Multiwall bags

Lodestar Head Office – Shipping, logistics

Fullcircle Recycling Head Office – Waste paper collection, recycling MELBOURNE

Noble Park – Corrugated packaging

FULLCIRCLE RECYCLING BALING SITEWaste paper collection, recycling

KAWERAUTasman Mill – Kraft pulps

6Our business & approach | Environmental sustainability

3 | PURPOSE

Recycling and the use of recovered fibre are important to our business. Through Fullcircle Recycling’s purpose-built collection facilities and the use of recovered fibre in our paper mills, waste paper from other businesses and communities throughout New Zealand is a resource that is recovered and reused. A benefit of having vertically integrated manufacturing operations is that residues from one area of the business are used in another – for example, paper trim and cuttings from the packaging operations are used by our paper- recycling plants at Kinleith and Penrose Mills.

We continue to focus on the environmental performance of our operations by powering them from renewable energy sources, responsible management of water resources and diverting waste from landfill.

Environmental sustainability principles apply not only to operational performance but also to product design. Our packaging operations work under a continual-improvement philosophy. We seek opportunities to work with customers to minimise waste and facilitate recycling through innovative design and the utilisation of high-performance papers.

Environmental Warrant Process

Carter Holt Harvey Pulp & Paper Group is committed to ensuring responsible environmental governance and management through a framework that enhances the company’s effectiveness and ensures a high degree of accountability in its people.

We hold each one of our people accountable for their actions, whatever their role or level of responsibility.

The business culture is based on honesty and integrity, and cross-company business ethics training is conducted to help embed these principles.

In particular:

1. Each Business and/or Site Manager is required to list all known environmental risks for relevant operation(s) and to endorse a Warrant confirming that the list is comprehensive.

2. An action plan and timetable including individual responsibilities is prepared to address each listed risk or liability.

3. A structured risk assessment must be completed prior to Warrant renewal.

4. Independent Warrant audits are carried out, from time to time, under the direction of an appropriately accredited environmental auditor.

Our pulp and paper mills source wood from plantation-grown forests which are managed to strict environmental standards. The majority of this virgin fibre comes from sawmilling and logging residues. These mills source much of their wood from Forest Stewardship Council® (FSC®)-certified forests with the balance meeting the eligibility input requirements for ‘controlled wood’ under FSC® criteria.

• ISO 14001:2004-certified Environmental Management System at Tasman Mill

• ISO 9001:2008-certified Quality Management Systems at all Carter Holt Harvey Pulp & Paper Group manufacturing sites

• Forest Stewardship Council® (FSC®) Chain of Custody (CoC) certification for pulp at both the Kinleith and the Tasman Mills and for paper at Kinleith Mill

• ISO 22000:2005-certified Food Safety Management System at Case Northern, Case Central and Case South Island

• Hazard Analysis and Critical Control Point (HACCP) certification at Paper Bag and Foodservice.

Our Certifications and Standards

Environmental sustainability is core to our activities. Our products are made from renewable natural resources: plantation forest-based wood and recovered fibre.

7Our business & approach | An integrated business

3 | PURPOSE

SUSTAINABLY MANAGED

FORESTS

PULP, PAPER AND PACKAGING CONSUMERS

SAWMILLS

WOOD RESIDUES (WOODCHIPS, LOGS)

MILL

PULP

PAPER

LOGISTICS

PACKAGING

RECOVERED PAPER

4PRODUCTSUNLOCKING THE VALUE OF FIBRE

9Unlocking the value of fibre | Pulp

4 | PRODUCTS

HI WHITE LCP™ brand of bleached radiata pine kraft pulp is produced from specially selected woodchips. It is produced at the Tasman Mill and is designed for tissue products where both softness and strength are important qualities for end consumers.

HI WHITE™ is a bleached radiata pine kraft pulp valued by customers for its consistency, strength properties, bulk and brightness. Produced at both the Kinleith and the Tasman Mills, HI WHITE™ has a strong reputation with Asia-Pacific paper-makers for suitability in applications such as coated and uncoated printing and writing papers, bleached paperboard, filter papers and tissue products.

K25™ is a wood pulp used in the production of high-quality cement-based building boards. Developed and manufactured over many years, K25™ is produced at Tasman Mill from specially selected fibre, within a dedicated pulp line and to tightly controlled quality targets. Customers value the special fibre properties and the consistent quality and service levels.

We produce a range of market kraft pulps, each of which has particular attributes for our customers’ specialist end-uses.

10Unlocking the value of fibre | Paper

4 | PRODUCTS

We produce a range of kraft and recycled fibre-based containerboards for conversion into packaging such as corrugated cases.

HI GOLD™ is a premium light shade, high-strength liner for performance packaging with superior visual appeal.

ECOKRAFT™ is a kraft and recycled liner for performance in standard packaging conditions.

GRAPHIX™ is a high-strength white liner that delivers quality graphics.

Kinleith Mill containerboard products meet the requirements of US 21CFR176.170c for contact with dry, moist and fatty foodstuffs in applications requiring filling or pasteurising at temperatures below 212˚F (100˚C). Testing for heavy metals and a range of other substances such as those covered by EU Directive 2011/65/EU on the restriction of the use of certain hazardous substances in electrical and electronic equipment (RoHS) and the European Parliament and Council Directive 94/62/EC on packaging and packaging waste also reconfirms the safety of our products.

CLIMATE™ is a high-performance medium for use in high-humidity, cool-store environments

ECOFLEX™ is a fully recycled medium for use in standard packaging environments.

11Unlocking the value of fibre | Packaging

4 | PRODUCTS

Our packaging operations in Australia and New Zealand pride themselves on their innovative products and on their ability to provide smart packaging solutions.

Multiwall Bags

We specialise in complex multiwall bags where product integrity and efficient distribution are critical, supported by high-quality graphics. Our product range includes bags for the dairy, cement, flour and sugar industries from 5kg sizes through to 50kg industrial bags.

Corrugated Packaging

We supply an extensive range of cardboard products to the Australasian market. Our facilities produce a comprehensive selection of cardboard products for numerous industries including: horticulture, dairy, meat, beverage, seafood, reseller and industrial manufacturing.

Specialty Boards

Our specialty boards are used in the manufacture of heavy-duty packaging, packaging for frozen and chilled products, point-of-sale displays, ring binders and game boards as well as in countless industrial applications. We also manufacture a range of other specialty products including solid fibre slipsheets and bulk bins.

Paper Cups

We manufacture paper cups for a wide variety of uses including cold drinks, hot beverages, hot chips, ice cream, popcorn and many other products which benefit from being presented in well-designed packaging. The major market segments we service include: quick-service restaurants, food-court franchisees, coffee roasters, ice-cream chains, cinemas and theme parks, convenience stores and service stations throughout New Zealand and Australia.

12Unlocking the value of fibre | Our service functions

4 | PRODUCTS

Two service businesses support our manufacturing operations: Lodestar and Fullcircle Recycling.

Fullcircle Recycling provides a range of collection and recovery services for businesses, households and councils throughout New Zealand. Fullcircle Recycling collects nearly 300,000 tonnes of recovered paper each year, of which, in 2014, 213,754 tonnes were used in Carter Holt Harvey Pulp & Paper Group’s own paper mills for conversion into FUSION™ products. The balance either is sold domestically for reuse by other businesses or is exported.

Fullcircle Recycling has paper collection and baling operations throughout New Zealand. It has long-term strategic relationships with many regional recyclers across the country.

Lodestar is a logistics business operating and managing shipping services for Carter Holt Harvey Pulp & Paper Group and other New Zealand companies to and from a number of markets, particularly Australia and Asia. Lodestar specialises in shipping project cargoes, forest products and bulk/break-bulk cargoes on a flexible and cost-effective basis.

Lodestar services include:

• Domestic distribution via road, rail and coastal shipping

• Inter-modal port services including product handling, storage and packing

• International shipping utilising containers and break-bulk services

• Comprehensive export documentation and international trade finance advisory services

• International onshore logistics services at selected destinations.

13

5PLANETRESPONSIBLE SOURCING OF FIBRE

14

Sustainable Forestry in New Zealand

Plantation forestry in New Zealand is controlled by national legislation, which protects a range of societal and environmental values. Of particular significance are New Zealand’s Resource Management Act (1991), the Conservation Act (1987) and the Forests Act (1949). Collectively, these laws protect indigenous forests and require plantation foresters to manage biosecurity, health and safety, historical and cultural values, and environmental risk.

Responsible sourcing of fibre | How we source our virgin fibre

5 | PLANET

Carter Holt Harvey Pulp & Paper Group expects all suppliers to be in compliance with environmental regulations and the company’s wood-sourcing policy. We provide further surety of the environmental integrity of our products by maximising independently certified fibre within our wood supply

The New Zealand Forest Accord

All New Zealand-sourced virgin pulp and paper-making fibre comes from introduced species, notably radiata pine and eucalyptus, almost all of which is plantation grown specifically for harvest. In 1991, the New Zealand forest industry and local environmental groups, such as the Royal Forest and Bird Protection Society of New Zealand Inc., entered into an Accord. The New Zealand Forest Accord is an agreement prohibiting the clearance of natural indigenous vegetation to establish production-based forests. We continue to adhere to the principles of the Accord today.

How we Source our Virgin Fibre

Wood supply comes from externally owned plantation forests, primarily located within the Central North Island region of New Zealand and supplemented from elsewhere in the North Island. Much of this wood consists of residues from other sectors in the forest industry including top logs (unsuitable for timber production) and sawmill ‘slab wood’ chips which come from offcuts and squaring up logs in the production of timber.

SAWLOG 2Used for timber

products, building furniture

TOPLOG 2Used for pulp

TOPLOG 1Used for pulp,

timber products

SLABWOODUsed for pulp

SAWLOG 1Used for timber

products, building furniture

SLABWOODUsed for pulp

Our pulp and paper mills source wood from plantation-grown forests in New Zealand.

15Responsible sourcing of fibre | How we source our virgin fibre

5 | PLANET

Kinleith and Tasman Mills source as much of their wood as is practicable from FSC®-certified forests with the balance meeting the eligibility input requirements for ‘controlled wood’ under FSC® criteria.

Kinleith and Tasman Mills both have FSC® Chain of Custody certifications. This ensures wood can be tracked from the point of harvest through to the finished product delivered to our customers.

The FSC® systems employed at the Kinleith and Tasman Mills mean the mills are able to supply significant tonnages of kraft pulp and paper with an ‘FSC® Mix’ sources claim.

With FSC® Chain of Custody (CoC) certification, an organisation may certify a product as ‘FSC® 100%’, provided all fibre is sourced exclusively from FSC®-certified forest. Products can be certified as ‘FSC® Mix’ where ‘controlled wood’ sources are blended with FSC®-certified wood input.

Controlled wood is sourced from forests which are not FSC®-certified but meet specific criteria.

International Illegal Logging Laws

A number of countries now prohibit the importation of illegal wood products and impose a responsibility on importers to demonstrate the legality of wood products including paper and paper packaging products.

New Zealand is recognised by independent authorities as a low-risk country in relation to illegal logging. The vast majority of New Zealand’s forest products are derived from sustainably managed exotic plantations consisting of low-risk species. A much larger estate of indigenous forests (30% of the country’s land area) is managed separately for conservation by the New Zealand government.

New Zealand has a comprehensive regulatory framework for forestry, a professional enforcement regime and very low levels of non-compliance.

For more information on the New Zealand government position on the risks of illegal logging practices occurring in New Zealand, go to: http://archive.mpi.govt.nz/Portals/0/ Documents/forestry/forestry-nz/illegal-log/ the-legality-of-new-zealands-forestry- products.pdf

It is the policy of Carter Holt Harvey Pulp & Paper Group that all virgin wood fibre procured for the manufacture of pulp and paper has been verified in accordance with the company’s best efforts, to not come from any of the following category sources:

• Illegally harvested wood

• Wood harvested in violation of traditional and civil rights

• Wood harvested in forests in which high conservation values are threatened by management activities

• Wood harvested in forests being converted from natural and semi-natural forest plantations or non-forest use

• Wood from forests in which genetically modified trees are planted.

Wood Sourcing Policy

Our certifications: FSC® Chain of Custody certification.

http://archive.mpi.govt.nz/Portals/0/Documents/forestry/forestry-nz/illegal-log/the-legality-of-new-zealands-forestry-products.pdf




16Responsible sourcing of fibre | Common questions

5 | PLANET

What is Chain of Custody?

Chain of Custody is a formal stewardship programme that ensures the traceability of wood fibre from certified forest through all stages of processing, manufacturing and distribution to the point of sale of the certifiable finished product. Third-party assessment and certification at each successive change in ownership give consumers and other stakeholders assurance that wood, paper and building products have originated from forests that are responsibly and sustainably managed as claimed.

Chain of Custody certification is a mandatory component of every stage of the supply chain for FSC® and some other certification schemes.

What other certifications are there?

Chain of Custody audit and certification systems are offered by a number of organisations globally; two of the most widely recognised are the FSC® and the Europe-based Programme for the Endorsement of Forest Certification (PEFC™).

Others include the Sustainable Forestry Initiative® in the USA and the Australian Forest Certification Scheme (AFCS), which certifies forests according to the Australian Forestry Standard endorsed by PEFC™.

The differences between alternative certification schemes are, mostly, matters of detail and customer/consumer preference. Certification systems build upon, rather than replace, the ‘sustainable management of the environment’ obligations implicit in Australian and New Zealand legislation.

Can paper and board be made entirely from recycled fibre?

Yes; some papers and boards are manufactured using only recycled fibre. One example is the corrugating medium made at the Penrose Mill. Many papers contain both virgin and recycled fibres in varying proportions, managed according to end-use requirements. There are good reasons to use at least a proportion of virgin fibre in some papers. For example, selective use of stronger virgin fibres is managed to achieve desired strength-to-weight ratios of paperboard packaging.

Even if fibres were never to ‘wear out’, there will always be a need for virgin fibre for some end-uses and to allow for supply-chain losses such as with consumable paper products.

What is FSC® certification?

The Forest Stewardship Council® (FSC®) is a global not-for-profit organisation established to promote responsible management of the world’s forests. The FSC® has developed a set of principles and criteria which describe the rules of forest management in regards to being ‘environmentally appropriate’, ‘socially beneficial’ and ‘economically viable’. Forests that meet the criteria are certified following independent audit. The products from these forests are, therefore, eligible to carry the FSC® label, subject to Chain of Custody requirements, giving consumers confidence that they originate from responsibly managed forests.

Does the use of virgin fibre deplete native forests?

No; not in New Zealand, where Carter Holt Harvey Pulp & Paper Group sources wood from plantation-grown forests. Plantations displace the felling of natural forests both in New Zealand and overseas.

Do tree plantations mean an end to biodiversity?

No; Carter Holt Harvey Pulp & Paper Group’s forestry suppliers have voluntary industrial agreements in addition to statutory obligations to protect wildlife populations within their forest estates.

Is 100% recycled paperboard packaging suitable for direct food contact?

100% recycled paperboard can be suitable for direct food contact, subject to appropriate controls and testing, and is currently used in a number of direct-contact applications by consumer product companies.

17Responsible sourcing of fibre | Sourcing high-quality recovered fibre

5 | PLANET

The collection and recovery of reusable paper are valuable phases of our operations.

298,000 TONNESRECOVERED FIBRE COLLECTED BY FULLCIRCLE RECYCLING IN 2014

Complementary Fibres: Virgin and Recovered Fibre

Most fibre-based packaging contains both virgin and recycled fibres in different proportions. Producing an effective and durable product is not about choosing one or the other. Instead, it is about deciding how much of each to use to ensure the product will do the job required of it.

Virgin fibres play a unique role in certain applications, particularly where high humidity is present, where high strength is needed or where appearance and print quality are important. Recovered fibres can be a better economic choice: for example, in conditions with lower performance requirements. Our ECOKRAFT™ range of kraft-top liners made at Kinleith Mill is an example of a hybrid combination of virgin fibre on the surface for colour and consistency and recovered fibre as the balance of material. The environmental benefits of virgin versus recovered fibre

depend on the full life cycle of the products. There are good reasons to use at least a proportion of virgin fibre in many papers, especially where the end product needs to perform in demanding conditions. If packaging fails, then any environmental gains achieved through increasing the recycled fibre content can be quickly lost through damage or spoilage of the packaged product. There will always be a need for virgin fibre from responsible sources because recycled fibre degrades after use and not all fibre can be recovered, regardless of the efficiency of the recovery process.

Fullcircle Recycling offers a range of recycling services for businesses and households throughout New Zealand; the Kinleith and Penrose Mills used approximately 213,754 tonnes of cardboard and paper collected by Fullcircle Recycling in 2014.

Recycled fibre is used in our ECOFLEX™ and ECOKRAFT™ product ranges and in a range of our packaging products.

We operate New Zealand’s largest paper recycling business – Fullcircle Recycling.

Did you know?

Paper and cardboard can be recycled many times (typically estimated at between five and eight cycles), after which the fibres making up paper ‘wear out’.

Did you know?

New (virgin) fibres need to be introduced into the paper-making process to make up for permanent removals and maintain the supply and performance of the finished products.

ii

18Responsible sourcing of fibre | Common question

5 | PLANET

The carbon cycle is a complex natural process through which carbon is exchanged between the atmosphere, the ground, plants, animals and the oceans.

Most of the important exchanges involve carbon dioxide (CO2) forming a cycle as depicted in the diagram.

Human activities over the last few centuries have led to increased CO2 emissions, for example through the burning of fossil fuels. Forestry and wood processing have important roles to play in reversing the trend. Trees absorb CO2 as they grow.

Once trees are harvested, they release emissions as wood products degrade or where they are burned as a fuel. Sustainably managed forests protect the overall cycle as they are replanted, continually ensuring overall CO2 absorption is maintained. The net effect is to reduce greenhouse concentrations and mitigate climate change.

What is the relationship between forest products and the carbon cycle?

The Relationship between Forest Products and the Carbon Cycle

Stored carbon is released through decay in proportion to growth.

Forests absorb CO2 in their growth processes and release O2 (photosynthesis).

Long-term carbon storage

BUILDING PRODUCTS

Transportation, manufacturing and thermal electricity generation emit CO2 from fossil fuels.

HUMAN ACTIVITY

LOGGING RESIDUES

WOOD RESIDUES, FEEDSTOCK & BIOFUEL

HARVEST

LOGGING

SAWLOGS

NATURAL FORESTS

OCEANSSUSTAINABLY MANAGED FORESTS

Significant biofuel usage

SAWMILLS

Carbon stored and recycled in paper and paperboard products

PAPER PRODUCTS & PACKAGING

Significant biofuel usage

PULP & PAPER MILLS

ATMOSPHERE

FLOW OF CO2

19

6PROCESSSTRIVING FOR OPERATIONAL EXCELLENCE

6PROCESSSTRIVING FOR OPERATIONAL EXCELLENCE

20Striving for operational excellence | Our pulp and paper manufacturing operations

6 | PROCESS

Tasman Mill

The Tasman Mill has a capacity of approximately 300,000 tonnes per annum of bleached and unbleached kraft market pulps, used by manufacturers of high-quality paper, tissue and building products.

Tasman’s fibre is sourced predominantly from radiata pine. Tasman’s fibre cement pulp is acknowledged in the fibre-cement building products industry as a premium cellulose-reinforcing fibre.

Kinleith Mill

Kinleith Mill is the company’s largest site, with a production capacity of more than 600,000 tonnes per annum of packaging papers and bleached softwood kraft market pulp. It uses plantation softwood radiata pine, plantation-grown eucalyptus and recovered fibre as its fibre sources. Most of the market pulp is exported globally for use in the manufacture of printing and writing papers, boards and tissue. Kinleith Mill is well known for its range of high-strength, visually appealing kraft linerboards and medium, used in the manufacture of corrugated cases.

Penrose Mill

The Penrose Mill manufactures approximately 85,000 tonnes per annum of corrugating medium from recovered fibre, sourced through Fullcircle Recycling. The recovered fibre consists of post-consumer waste paper from around New Zealand.

As with our Kinleith Mill containerboard, Penrose Mill products are used in the manufacture of corrugated cases.

Our fibre processing operations at the Kinleith and Tasman Mills are located in New Zealand’s largest forest region. The Penrose Mill, which utilises only recovered fibre, is located close to Fullcircle Recycling’s Auckland operation. Auckland is the largest municipal source of recycled paper.

The Kinleith and Tasman Mills operate chemical plants to support their pulp-bleaching operations. Some of the plant capacity is utilised to produce chemicals for the market: specifically, liquid chlorine for municipal water treatment, sodium hypochlorite (concentrated household bleach) and hydrochloric acid.

Two wood-based byproducts from the kraft pulping operations are sold for other industrial uses: crude tall oil (a precursor for a range of industrial chemicals and resins) and crude sulphate turpentine, to be refined and used in the production of a wide range of chemicals from perfume bases to disinfectants.

Pulp bleaching at both mills is accomplished using oxygen delignification followed by an elemental chlorine-free (ECF) process that avoids the risk of forming traces of dioxin.

All of our pulp and paper manufacturing operations at Kinleith, Tasman and Penrose Mills are located strategically in New Zealand.

21Striving for operational excellence | Our packaging manufacturing operations

6 | PROCESS

Our Australian and New Zealand Packaging operations are committed to using sound, sustainable principles in their business operations: from using papers made from well-managed plantation and recycled fibre through to the production processes employed, the efficient use of resources and the minimisation and recycling of waste.

Multiwall Bags

We have been manufacturing multiwall bags at our Paper Bag facility in Auckland since 1948. We currently manufacture in excess of 100 million bags annually, of which more than 30 million go to customers in export markets.

Corrugated Packaging

We have more than 50 years’ experience in the cardboard packaging industry. Our cardboard packaging manufacturing plants are located in Auckland (Case Northern), Levin (Case Central), Christchurch (Case South Island), Melbourne (Noble Park) and Sydney (Lansvale).

Specialty Boards

Our quality pasted board products have been manufactured for more than 50 years at our Specialty Boards plant in Hamilton, New Zealand. Our solid fibreboard products are manufactured by laminating layers of paper together to form a solid fibreboard sheet.

Paper Cups

We have been manufacturing paper cups at our plant in Brisbane for 30 years. We produce more than 120 million cups per year.

22Striving for operational excellence | Energy

6 | PROCESS

47.1%

KINLEITHMILL

48.4%

TASMANMILL

2014 Internal electricity generation

2014 Purchased electricity from grid

Kinleith and Tasman Mills generate close to half of their electricity requirements internally.

Powering our operations from sustainable energy sources.

In 2014, Carter Holt Harvey Pulp & Paper Group’s manufacturing operations sourced 73.8% of the direct energy required by its manufacturing operations from biomass (wood residues and kraft black liquor), whilst 80.2% in total came from renewable sources (biomass and geothermal steam). Renewable sources reduce both dependence on fossil fuels and greenhouse gas emissions.

Energy sources across Carter Holt Harvey Pulp & Paper Group’s manufacturing businesses in Australia and New Zealand in 2014 are illustrated on page 23.

Electricity greenhouse gas emissions in New Zealand are small compared with world averages because generation is largely from renewable sources – hydro, geothermal and wind. The proportion varies with weather patterns but, as shown on page 23, New Zealand’s grid electricity was 79.9% renewable in 2014. In Australia in 2012/2013, approximately 13.0% was renewable.

373,355,833 kWh

TOTAL INTERNAL ELECTRICITY GENERATION

73.8% CARTER HOLT HARVEY PULP & PAPER GROUP’S ENERGY FROM BIOMASS

23

Sources:1 New Zealand Energy Quarterly;

December Quarter 2014 (MBIE: www.med.govt.nz)

2 2014 Australian Energy Update, July 2014 (Bureau of Resources and Energy Economics: www.bree.gov.au)

3 Key World Energy Statistics 2014 (International Energy Agency: www.iea.org)

Other Non-renewable

0.1% OTHER NON-RENEWABLE

16.2% GEOTHERMAL STEAM

4.4% COAL

5.2% WIND/SOLAR

1.4% BIOMASS

57.1% HYDRO

15.6% NATURAL GAS

0.8% OTHER NON-RENEWABLE1.8% OIL

63.9% COAL

20.5% NATURAL GAS

22.5% NATURAL GAS

10.9% NUCLEAR

5.0% OIL

40.4% COAL

7.3% HYDRO

16.2% HYDRO

4.4% WIND/SOLAR1.3% BIOMASS GEOTHERMAL/WIND/5.0%

SOLAR/BIOMASS/WASTE

Striving for operational excellence | Energy

6 | PROCESS

Electricity Generation by Energy Source and Country

NEW ZEALAND (2014)1

AUSTRALIA (2012/2013)2

WORLD (2012)3

Total renewable sources: 79.9%



Manufacturing Operations: Energy Sources, 2014

80.2% RENEWABLE ENERGY (BIOMASS, GEOTHERMAL STEAM)Contribution from purchased electricity is not included.

6.4% Purchased geothermal steam

5.9% Purchased electricity

73.8% Biomass

0.3% Coal

1.6% Oil-based fuels

1.3% Purchased steam

10.7% Natural gas

24Striving for operational excellence | Water

6 | PROCESS

Carter Holt Harvey Pulp & Paper Group has always strived to use and manage water in a responsible manner. In New Zealand, our mills have a responsibility to use, treat and monitor water in accordance with their environmental consents under the Resource Management Act (RMA).

Water is used and reused in all major process stages: e.g. for woodchip washing, for pulp washing and screening, and in the paper machines. Water is used also for process cooling, equipment cleaning and general facilities operations, and to generate steam for use in processes and on-site power generation.

Our pulp and paper mills withdraw water from surface water sources (i.e. streams and rivers), ground-water sources (i.e. aquifers) and

municipal supplies. Although our pulp and paper mills (and indeed, the pulp and paper industry as a whole) are large users of fresh water, they consume only a small amount of the water that they use; the majority is treated and discharged.

Manufacturing Operations: Sources of Water, 2014

78%Surface water

21%Ground water

1%Municipal supply

Water-quality Management

Kinleith and Tasman Mills discharge treated process water into local rivers. The discharges are subject to resource consent requirements. They are monitored regularly and reported for a range of parameters including total suspended solids, biochemical oxygen demand and colour. Penrose Mill manages its waste water to meet the standards required for discharge into the council-provided trade waste system.

Tasman Mill – Effluent Colour-reduction Programme

The company recognises that effluent colour discharges are an amenity concern for the local community. Colour reduction continues to be a priority at Tasman Mill.

In 2014, the 30-day average colour load was 15.1 tonnes per day (Pt-Co Equivalent), more than 38% lower than it was in 2007, and well below the regulatory limits of 31 tonnes per day. Carter Holt Harvey Pulp & Paper Group is committed to further reductions with ambitious targets over the long term for the Tasman Mill.

We are currently ahead of the 2018 targets and aim to reduce colour by more than two-thirds of 2010 levels by 2035.

Responsible management of water resources.

25Striving for operational excellence | Waste

6 | PROCESS

Carter Holt Harvey Pulp & Paper Group is a major user and recycler of both its own waste and waste from customers and others.

In 2014, 42.1% of solid wastes produced from our manufacturing operations were diverted from landfill. Most of the diverted material (32.8%) was recovered fibre and was recycled within our processing plants. A further 9.2% of our wastes was composted or vermicomposted to form soil-conditioning products.

A contractor has been using worms to vermicompost all primary solids from the Kinleith Mill effluent treatment system since 2010 and similar composting operations have been developed to receive residual wastes from landfill at the Tasman and Penrose Mills in recent years.

In 2014, vermicompost and compost operations enabled us to divert 4,795 (dry) tonnes of mixed solids from the Kinleith Mill, 1,043 (dry) tonnes of solids from the Tasman Mill and 1,465 (dry) tonnes of solids from the Penrose Mill.

Manufacturing Operations: Waste Destinations, 2014

57.8%To landfill

32.8%To recycle

0.1%Hazardous waste

9.2%To compost/ vermicompost

Diverting waste from landfill.

42.1% OF WASTE DIVERTED FROM LANDFILL

26

7PARTNERSHIPCOLLABORATION WITH OUR STAKEHOLDERS

27Collaboration with our stakeholders | Innovation for success

7 | PARTNERSHIP

Innovation proves itself to be a winner.

Innovation is key to everything we do at Carter Holt Harvey Pulp & Paper Group. We are working continually in innovative ways to raise the standard of our service and products.

Our packaging teams are always looking for ways to improve the consumer appeal of our packaging to ensure the success of our customers’ brands.

We have a New Product, Service and Development (NPSD) team, which operates as an independent functional group, supporting all packaging operations in New Zealand. Its aim is to generate innovative ideas from within our business and provide smart solutions to meet our customers’ requirements. A key focus of NPSD is substituting traditional forms of packaging with fibre-based solutions.

The cup has a coupon ‘tear-off disc’ on the outer wrap. This enables customers to run special promotions or competitions with the relevant information contained on the inside of the disc. The final customer tears off the disc to access the info/entry information. The disc is part of the outer wrap and this eliminates the previously used ‘Peel & Reveal’ labels which are both costly and difficult to process.

This unique promotional tool was used recently in two promotions and more are planned. We were pleased to see it used for a competition at the recent Racing Spring Carnival across Australia – the major prize was a trip to Italy for the winner.

The Paper Cups team worked closely with two external print houses to develop a new promotional cup for its customers in 2014.

28Collaboration with our stakeholders | Partnering for success

7 | PARTNERSHIP

Packaging New Zealand wins gold.

Packaging New Zealand wins prestigious customer satisfaction award.

At the Fonterra Packaging Awards held in Hamilton in September 2014, Packaging New Zealand was awarded the New Zealand Milk Products (NZMP) Packaging Site Buyer Satisfaction Award in recognition for services provided to Fonterra sites around New Zealand.

Each Fonterra site goes through a rigorous process where it is asked to rank its top three suppliers, based on a comprehensive survey questionnaire. All packaging suppliers were rated on six key criteria:

• Ease and speed of contact

• Consistent delivery above and beyond expectations

• Quality

• Accuracy and timeliness of information

• Flexibility and responsiveness

• Professionalism around complaint and resolution management

This award was particularly significant as it recognised the contribution made by the packaging teams in New Zealand who work hard to ensure that service and product delivery to Fonterra is never compromised. Fonterra is an extremely important customer and we are proud to be recognised in this way.

Packaging New Zealand was recognised with a Gold Medal in the 2014 New Zealand Pride In Print Awards.

The awards showcase and recognise the very best in print across all mediums and are the pinnacle of achievement in the printing industry.Judging was based on technical excellence in all facets of the production process including equipment capability, design, materials and innovation.A gold medal was awarded to the Mahana Red open-top apple pack that was made for New Zealand fruit marketer Freshmax and used to promote and sell Mahana Red apples in New Zealand supermarkets.

Packaging New Zealand worked closely with Freshmax to convert an art concept into a pack that stands out in the supermarket. The packs were printed at Case Northern on GRAPHIX™ white top kraft linerboard, sourced from Kinleith Mill.

This award was made possible as a result of significant investment made in print and drying capability at Case Northern, and was supported strongly by our pre-press partner Gravitas Media through their digital files management and new plate technology.

29Collaboration with our stakeholders | Working together with local communities

7 | PARTNERSHIP

Between Fullcircle Recycling and Altus Enterprises, we are diverting waste from landfill for reuse. Recovered materials are reused at Carter Holt Harvey Pulp & Paper Group manufacturing processes or sold.

This partnership supports the ongoing employment of 30 people who live with disabilities.

The repetitive nature of the work requires a great deal of perseverance and, according to Paul Stoneman, General Manager of Altus Enterprises, is an ideal task for the majority of his employees.

As part of the arrangement, Fullcircle Recycling supplied and installed a conveyor system and baler at Altus Enterprises’ premises. The stripped bags are placed on the conveyor after the plastic liners have been removed and this transfers the bags from the manual workstations into storage bins which are later collected.

Over the course of a year, it is anticipated the throughput of the new facility will be around 1,400 tonnes of fibre for recycling in the Kinleith and Penrose Mills.

Fullcircle Recycling has partnered with Altus Enterprises to provide multiwall bag recycling services. Altus Enterprises employs people with disabilities who will recover the plastic linings from multiwall bags allowing both the fibre portions and the plastic portions of the bags to be recycled readily.

Altus Enterprises employees Heather Parker (left) and Narelle Pemberton (right) with Paul Stoneman, GM Altus Enterprises (centre)

The new conveyor system installed by Fullcircle Recycling at Altus Enterprises’ Henderson facility is being utilised by Altus Enterprises staff.

Altus Enterprises staff remove the plastic liners of multiwall bags at their new facility in Henderson, Auckland. The bags will be baled up and transported to Kinleith Mill for recycling.

Collaboration offers work opportunities and environmental benefits.

30Collaboration with our stakeholders | Working together with local communities

7 | PARTNERSHIP

Participation in community-led initiatives.

Way to Run! The Kinleith Fun Run and Walk

The Kinleith Fun Run and Walk, held in November 2014, was a fantastic event for all employees, friends and families of Carter Holt Harvey Pulp & Paper Group. The event had 5km and 10km races, and 1km and 2km races for children, with 280 participants enjoying the day.

The Kinleith Wellness Committee was established in 2011 to encourage our employees to start taking a proactive approach to their health and well-being. The committee is employee led; it consists of employees and site-based contractors. The Kinleith Wellness Committee has run seminars and other initiatives to educate employees on nutrition, sleep issues, building resilience, and cancer awareness and prevention.

Working together with local communities.

Healthy Rivers: Plan for Change Wai Ora: He Rautaki Whakapaipai

A Waikato and Waipa River iwi and Waikato Regional Council project that is working with stakeholders to develop changes to the Waikato Regional Plan to help restore and protect the health of the Waikato and Waipa Rivers.

Bay of Connections Forestry and Wood Action Group

This is a group focused on developing economic growth for the forestry and wood processing sector in the wider Bay of Plenty region.

Industrial Symbiosis Kawerau

A group of businesses and local authority leaders located in Kawerau is working to adopt practices leading to smarter, cleaner businesses.

31Collaboration with our stakeholders | Passionate people

7 | PARTNERSHIP

In 2014, we were actively involved in our local communities, profiling the careers we offer.

Carter Holt Harvey Pulp & Paper – Engineering Design Show

The Carter Holt Harvey Pulp & Paper – Engineering Design Show is a two-day event during which second, third and fourth-year engineering students from the University of Waikato showcase their research and design projects in the forms of posters, displays and seminars. Topics included Chemical and Biological Engineering, Electronic Engineering, Materials and Process Engineering, Mechanical Engineering and Software Engineering.

The event provided a great opportunity for both high school students and industry representatives to meet talented engineering students.

Kawerau Careers Expo

Employees from the Tasman Mill attended the Kawerau Careers Expo. Sharing a stand with the Australasian Pulp and Paper Industry Technical Association (Appita), the team highlighted the Tasman Mill’s product range and the diversity of careers available. Process Engineer Nyssa Brewer gave an interesting presentation on her role to a group of senior science students.

Appita New Speakers Contest

The Australasian Pulp and Paper Industry Technical Association (Appita) New Speakers Competition was held at the Appita Fibre Value Chain Conference & Expo in Rotorua in October 2014.

Christy Tan from Kinleith Mill spoke on the ‘No.1 Pulp mill heat exchanger scaling reduction project’, and Kelly Holden, Tasman Mill spoke on ‘Optimising power generation at Tasman Mill’. The standard of both presentations was very high and they were excellent representatives for their mills. Christy Tan won the competition and received a prize of A$4,000 for professional development.

Winner Christy Tan, Process Engineer, Kinleith Mill

Steven Woollacott, Technical Manager, Tasman Mill, and Desirae Kirby, Research Programme Manager, Tasman Mill, at the shared Appita – Carter Holt Harvey Pulp & Paper Group stand

Nyssa Brewer, Process Engineer, Tasman Mill

It is important to attract young students and graduates into our business, particularly those with passions for jobs in technology, engineering and science.

32Collaboration with our stakeholders | Collaboration with the wider industry

7 | PARTNERSHIP

New Zealand Paper Forum

The New Zealand Paper Forum was established with a mandate to represent the interests of all parts of the paper supply chain from manufacturers and importers to printers, publishers and recyclers.

Australian Packaging Covenant

The Australian Packaging Covenant (APC) has been in effect since 1 July 2010. The covenant focuses on improved packaging design, ‘away from home’ recycling, litter reduction and increased engagement across the supply chain through product stewardship.

Other memberships include:

• New Zealand Forest Owners Association

• Packaging Council of New Zealand

• Major Electricity Users’ Group

• New Zealand Manufactures and Exporters Association (NZMEA).

Carter Holt Harvey Pulp & Paper Group actively participates in public discourse, including engagement with industry bodies.

We also make submissions to the Australian and New Zealand governments at both central and state or regional levels, where it is relevant to the business and in the interests of our customers.

Wood Processors & Manufacturers Association (WPMA) of New Zealand

The Wood Processors & Manufacturers Association brings together all parts of New Zealand’s wood supply chain in one industry organisation to give strength and unity to the challenges facing the industry.

Appita – Australasian Pulp and Paper Industry Technical Association

Appita facilitates the network of stakeholders to advance the technical capability and expertise of the Australian and New Zealand pulp and paper industry.

33

8PERFORMANCEDATA & TRENDS FROM 2014

8PERFORMANCEDATA & TRENDS FROM 2014

34

KINLEITH MILL TASMAN MILL PENROSE MILL

Principal Products Bl, UB SW kraft pulps, packaging papers; pulping byproduct and chlor-alkali chemicals

Bl, UB SW and HW kraft pulps; pulping byproduct and chlor-alkali chemicals

Recycled fibre corrugating medium

` UNIT ANNUAL TOTALS

Outputs1

Pulp and paper products tonne 579,744 273,247 85,010

Chemicals and byproducts tonne 18,973 16,907 N/A

Total output tonne 598,717 290,154 85,010

Group output net of inter-mill transfers tonne 967,697

Raw Materials Fibrous inputs

Wood, new pulp/paper/cores tonne 2,228,257 1,320,552 223

Recovered fibre tonne 108,518 N/A 105,236

Total fibre tonne 2,336,775 1,320,552 105,459

Other inputs (approximate) tonne 63,600 38,200 716

Other significant inputs include: Alum, Bale wire, Burnt lime, Caustic soda, Calcium carbonate, Clay,

Hydrogen peroxide, Oxygen, Paper size, Salt, Starch, Sulphuric acid

Bale wire, Burnt lime, Caustic soda, Hydrogen peroxide, Lime rock,

Magnesium sulphate, Oxygen, Salt, Saltcake, Sulphuric acid

Starch

Energy Consumption

Direct sources

Biomass: kraft black liquor, wood residues GJ 14,395,807 7,100,437 N/A

Fossil fuels2: natural gas, waste oil fuel, fuel oil, coal, diesel, petrol, LPG GJ 2,753,037 722,126 17,107

Indirect sources (purchased)

Electricity GJ 1,077,485 409,252 158,494

Steam GJ N/A N/A 388,034

Geothermal steam GJ N/A 1,871,399 N/A

Total energy consumption GJ 18,226,329 10,103,214 563,635

Total energy consumption per tonne of total output GJ/t 30.44 34.82 6.63

Energy from renewable sources3 % 79.0% 88.8% 0%

Electricity generation GJ 960,035 384,045 N/A

Electricity generation vs total electricity consumption % 47.1% 48.4% N/A

Water Take

Municipal supply Ml 0 42 291

Surface water Ml 19,836 22,672 0

Ground water Ml 10,852 0 382

Total water take Ml 30,688 22,714 673

Emissions to Air

Scope 1 (direct) emissions (CO2-e)4 tonne 164,419 48,085 1,114

Scope 2 (indirect) emissions (CO2-e) tonne 38,825 34,666 25,572

Total Scope 1 and 2 emissions (CO2-e)4 tonne 203,244 82,751 26,686

Scope 1 and 2 emissions (CO2-e) per tonne of total output4 t/t 0.339 0.285 0.314

Biomass CO2 emissions5 tonne 1,331,065 667,804 0

Particulates tonne 474 342 N/A

Total Reduced Sulphur (TRS) (as H2S) tonne 89 42 N/A

Waste6

To landfill dry tonne 25,158 11,037 8,738

To recycle dry tonne 1,068 99 0

To compost/vermicompost dry tonne 4,795 1,043 1,465

Hazardous waste (removal by licensed contractors) tonne 3 63.22 0

Discharge to Water 8,9

Volume Ml 31,395 23,247 570

Treatment 1° and 2° 1° and 2° N/A

Receiving water Waikato River Tarawera River Municipal sewer

Total Suspended Solids (TSS) tonne 911 1,334 65610

Biochemical Oxygen Demand (BOD) tonne 533 1,325 1,37210

A zero (0) in the table signifies that such inputs, discharges, emissions or wastes do not occur (or may occur only below detection limits). ‘N/A’ signifies that the parameter is considered not relevant for that site.1 Outputs are listed by mill; group output is net of transfers

between the mills.2 Direct sources from on-site stationary and mobile (vehicular)

combustion of fossil fuels.3 Energy from biomass and geothermal steam. Renewable energy

contribution from purchased electricity is not included.

4 CH4 and N2O emissions from combustion of biomass are included.5 Biomass-derived CO2 is reported separately for information in

accordance with the GHG Protocol.6 Waste to landfill is reported on a ‘dry solids’ basis; and deposited

in facilities owned by Carter Holt Harvey Pulp & Paper Limited or licensed third parties.

7 Demolition waste.8 Discharges listed for Tasman Mill (except for volume) include

those from the neighbouring newsprint mill owned and operated by Norske Skog Tasman due to shared waste-water treatment infrastructure.

9 Volume estimated for Tasman Mill and excludes contributions from Norske Skog Tasman newsprint mill and stormwater.

10 Measurements taken prior to municipal water treatment process at Penrose Mill only.

Market pulp tonnages are expressed on an ‘air dry’ or 90/10 basis, under which pulp weights are derived by normalisation to 90% dry pulp solids, 10% moisture content, which is standard for the industry.Global Warming Potentials for this report are sourced from the Intergovernmental Panel on Climate Change (IPCC) Fourth Assessment Report (2007), in line with New Zealand GHG Reporting Standards in force from January 2013.

8 | PERFORMANCE

Data & trends from 2014 | Pulp and paper manufacturing operations

7

35

Kinleith Mill

Tasman Mill

Penrose Mill

% C

hang

e%

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% C

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e

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–50

–40

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2014201320122011201020092008

Electricity generation

Renewable energy

Waste to landfill*

Water take



–40

–30

–20

–10

0

10

20

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2014201320122011201020092008

Waste to landfill

Water take



2007 BASE

2007 BASE

2007 BASE

8 | PERFORMANCE

Data & trends from 2014 | Pulp and paper manufacturing operations


–60

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–40

–30

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Renewable energy

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* 2007–2012 waste to landfill data based on estimates for Tasman Mill


22014HIGHLIGHTS


P1 P2 P3




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About this Report


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Data Trends


Packaging Australia


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8 | PERFORMANCE

Data & trends from 2014 | Packaging manufacturing operations 37Contents 36

PACKAGING AUSTRALIA PACKAGING NEW ZEALAND

Principal Products Corrugated shipping cases, paper cups

Shipping cases, pasted board, corner board, bulk bins, multiwall bags

UNIT ANNUAL TOTALS

Group Outputs1 tonne 58,401 107,519

Raw Materials Fibre – paper, paperboard tonne 64,579 124,325

Recovered fibre (% of input fibre) % 59% 47%

Other inputs (approximate) tonne 4,134 9,220

Other significant inputs include: Starch, Adhesives, Coatings, Inks Starch, Adhesives, Plastic film, Inks

Energy Consumption

Direct sources

Fossil fuels2: natural gas, fuel oil, coal, diesel, petrol, LPG GJ 75,356 103,872

Indirect sources (purchased)

Electricity GJ 26,177 45,384

Total energy consumption GJ 101,533 149,256

Total energy consumption per tonne output GJ/t 1.74 1.39

Water Take

Municipal supply m3 20,194 59,240

Surface water m3 0 0

Ground water m3 0 0

Total water take m3 20,194 59,240

Emissions to Air

Scope 1 (direct) emissions (CO2-e) tonne 3,916 6,766

Scope 2 (indirect) emissions (CO2-e) tonne 7,057 1,635

Total Scope 1 and 2 emissions (CO2-e) tonne 10,973 8,401

Scope 1 and 2 emissions (CO2-e) per tonne of output t/t 0.19 0.08

Waste

To landfill (approximate) tonne 218 581

To recycle tonne 7,389 17,405

To compost/vermicompost tonne N/A N/A

Hazardous waste and Prescribed Waste (EPA, Victoria) (removal by licensed contractors)

tonne 10 0

A zero (0) in the table signifies that such inputs, discharges, emissions or wastes do not occur (or may occur only below detection limits). ‘N/A’ signifies that the parameter is considered not relevant for that site.1 Outputs are listed net of internal transfers within the

respective group.2 Direct sources from on-site stationary and mobile (vehicular)

combustion of fossil fuels.

8 | PERFORMANCE

Data & trends from 2014 | Packaging manufacturing operations


22014HIGHLIGHTS


P1 P2 P3




P8 P13 P19



P26 P33

About this Report


Scope



Reporting Standards










Data Trends


Packaging Australia


% C

hang

e%

Cha

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–30

–20

–10

0

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Water take



–80

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2007 BASE

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8 | PERFORMANCE

Data & trends from 2014 | Packaging manufacturing operations 37Contents 37

WORKINGTOGETHERSUSTAINABLY

EnvironmentalSustainability Report for the 2014 calendar year

Contact

For more informationor feedback:

[email protected]

Carter Holt HarveyPulp & Paper LimitedPrivate Bag 92004Victoria Street WestAuckland 1142New Zealandwww.chhpulpandpaper.comwww.chhpackaging.com

Disclaimer

This report has been compiled by Carter Holt Harvey Pulp & Paper Limited (‘CHH PP’) from internal records and publicly available information for general information purposes and not as specifi c advice to any particular recipient or person.

Due care has been exercised in compiling the report and CHH PP believes the information contained herein to be correct but has not subjected it to independent review or audit.

To the maximum extent permitted by law, CHH PP, its related companies and affi liates and/or any of their respective directors, offi cers, employees, agents, offi cials, advisors or representatives, as the case may be:

› make no representation or warranty, nor provide any undertaking, expressed or implied, as to the timeliness, accuracy, adequacy, reliability, reasonableness or completeness of the information or any opinion or statement contained in this report

› shall have no liability (including for negligence) for any statements, opinions, information or matters (express or implied) arising out of, contained in or derived from (directly or indirectly), nor for any errors or omissions from, or failure to correct, any information in this report

› are under no duty of disclosure or fi duciary duty or any obligation to update any information contained in this report or any other written or oral communication transmitted or made available to a recipient, or to notify any person should any such information cease to be correct after it is provided and each recipient, by accepting delivery of this report, waives all rights in such regard.