Taking stock: performance against commitments

Our sustainable development commitments provide tangible objectives to guide our strategy and benchmark our performance. We are currently developing our next set of five-year targets and will report on these in our 2011 report.

In 2005, Mondi put in place a number of key environmental, social and governance commitments against which our performance could be measured, providing a sound base for the management of sustainability across the Group. This was a significant step for the Group as it embedded five-year sustainability commitments and targets into the business, and provided a platform for measurement and reporting.

The scorecard that follows summarises our performance against our sustainable development commitments for our five-year commitment period (from 1 January 2006 to 31 December 2010). All data is presented against a 2005 base year. Data for energy and greenhouse gas emissions (GHGs) is the exception, as this is compared with a 2004 base year.

During the past five years, a number of our sustainable development commitments have evolved in terms of wording and timing to reflect the completion and/or expiration of those commitments already met, and to ensure alignment with our measurement tools and reporting tools, as well as our external assurance processes. None of these developments are material. Our sustainable development risks and material issues have remained unchanged and valid throughout the period. Please see the Governance section to read more about our sustainable development risks, and visit our past reports.

We engaged ERM to provide independent assurance on the performance rating assigned for each of our commitments and this is clearly indicated below.

Progress		Definition
Not achieved		The commitment has not been achieved
Little progress made		The commitment has not been achieved but a limited number of actions have been carried out which have started to progress Mondi towards delivering on the commitment
Good progress made		The commitment has not been achieved but actions have been carried out to deliver demonstrable performance improvements or to reach key milestones in relation to the commitment
Almost achieved		The commitment has not been fully delivered, but actions have been carried out which have resulted in the commitment being over 90% delivered
Commitment achieved		The performance has reached the level required by the commitment; all the required actions are completed
Commitment exceeded		The performance has exceeded the level required by the commitment; more actions than required to deliver against the commitment have been completed

Governance
Commitment	Performance
Demonstrate status of implementation of the Mondi sustainable development management system (SDMS)	Our SDMS – comprising the sustainable development policy, the seven sector policies, 20 management and operating standards, and 60 specific and practice-oriented performance requirements – provides the framework of our operational practices and ensures sustainability in conducting business at every level. The responsibility for implementing the SDMS is with the operations' management and the Group provides support, guidance and training where necessary. In order to verify the implementation of the SDMS, checks are done by the Group sustainable development team and Internal Audit, along with self-assessments and external certification/verification. We are confident that the implementation fairly covers our performance requirements on safety and health, forestry and environment. However, we believe further work is needed to expand the SDMS implementation checks to ensure that they cover all performance requirements
Report progress against our sustainable development commitments internally and externally	Internally, the progress against the sustainable development commitments has been a regular item on the agenda of the DLC sustainable development committee and the sustainable development leadership panel meetings throughout the year. Externally, we have reported progress against our commitments in every annual sustainable development report
All mill operations to obtain and maintain ISO 14001 certification or equivalent	16 out of 18 mills have ISO 14001 certification. The exceptions are the Tire paper mill, our acquisition in 2007, and Stambolijski which was mothballed in 2009 but restarted in 2010
75% of mill operations to obtain and maintain OHSAS 18000 certification	12 out of 18 mills have OHSAS 18000 certification
Report sickness and absence rates	The sickness and absence rates have been reported on our website since 2008 based on our MORIS reporting system, and we have reported on these internally and externally

Forestry
Commitment	Performance
Certify all owned, leased and managed forestry to FSCTM	All our owned, leased and managed forests in Russia and in South Africa are FSCTM-certified
No wood procured from controversial sources	With the exception of Piet Retief and Stambolijski, all of our mills have Chain-of-Custody certificates in place, ensuring that the wood procured in 2010 is from non-controversial sources. At Piet Retief all wood is sourced directly from Mondi-owned FSCTM-certified forests, and at Stambolijski (which was reopened in mid-2010) controls have been implemented to ensure that wood is procured from non-controversial sources
Procure over 60% of wood, virgin fibre and biomass products from credible sources	60% of wood, virgin fibre and biomass procured in 2010 was from credible sources (as defined in the glossary)
Work with FSCTM to find a practical solution for certifying small growers	Mondi is working with WBCSD and The Forest Dialogue to co-ordinate efforts between certification bodies, forestry companies, NGOs and small growers, to find a practical solution to small growers’ certification. Mondi has actively participated in this process, and one possible solution has been identified, namely group certification schemes. Also, in South Africa where we are finalising land restitution settlements on FSCTM land, we are providing funding for training, coaching and mentoring to ensure that small growers continue to successfully manage their forests according to FSCTM standards

People
Commitment	Performance
Zero work-related employee and contractor fatalities	Regrettably Mondi has experienced a number of fatalities since 2005, please see our Safety and health section
Achieve an LTIFR of 0.1 in 2010, including employees and contractors	The LTIFR achieved in 2010 was 0.14 (0.12 when excluding the performance of the recent acquisitions). We will continue our efforts with all our operations to meet our safety milestones
Report the number of incidents of occupational illnesses	Occupational illnesses have been reported on our website since 2005
Report Category II and III environmental incidents	Level II and III incidents have been reported on our website and the print report since 2005

Products
Commitment	Performance
Monitor and report the amount of recycled fibre used for the manufacture of Mondi products	The volumes of recovered paper produced or purchased have been internally and externally reported since 2008

Society
Commitment	Performance
All mills and forestry operations to have a rolling community engagement plan (CEP) and a socio-economic assessment toolbox (SEAT) process	A decision was made in 2005 to focus our SEAT assessments on those mills and forestry operations considered ‘socially material’, and these assessments have been completed. An exception is Stambolijski, which has recently been re-opened, for which a SEAT will be carried out in 2011. CEPs are in place at most mills, although some of these have not been recently reviewed. However, for all the 'socially material' mills, active community engagement processes and structures are in place. The CEP programme will be rejuvenated in 2011
Make antiretroviral treatment for HIV/AIDS available to all employees in South Africa, and provide training and awareness campaigns in partnership with local clinics and NGOs	Antiretroviral treatment for HIV/AIDS is available to all employees in South Africa, and is provided in partnership with local clinics and NGOs. We have active HIV training and awareness programmes, which include voluntary counselling and testing, in place at all our sites. Details of our HIV efforts can be found in our section on Community health

Environment
Commitment	Performance
Aggregate target of a 15% reduction in energy consumption for pulp and paper making per unit of saleable production from our mills, against a 2004 base year, to be met in 2014	11% reduction achieved between 2004 and 2010
Aggregate target of a 15% reduction in CO2e equivalent emissions per unit of saleable production from our mills, against a 2004 base year, to be met in 2014	23% reduction achieved between 2004 and 2010
Aggregate target of a 30% reduction in effluent load (measured as chemical oxygen demand (COD)) into receiving waters from our mills, against a 2005 base year	34% reduction achieved between 2005 and 2010
Aggregate target of a 30% reduction in adsorbable organic halogens (AOX) emissions into receiving waters from our mills, against a 2005 base year.	63% reduction achieved between 2005 and 2010
Reduce the total reduced sulphur (TRS) emissions from our mills to the atmosphere by 65% against a 2005 base year	70% reduction achieved between 2005 and 2010
Reduce the total waste to landfill by 20% from our mills against a 2005 base year	36% reduction achieved between 2005 and 2010

Last change: 18/03/2011