Management approach

We aim to create more from less and, in so doing, reduce our impact on the environment through process efficiency and the achievement of Group-level environmental commitments, and to align our financial performance with our sustainability goals.

While the paper industry is a significant consumer of energy, it is notable that the industry ranks as one of the largest producers and users of renewable energy sources, more than half of which comprise biomass (wood-based fuel, owing to the industry's access to wood residuals as a side product of paper-making) that can be burned to produce thermal and electrical energy. This gives us the unique ability to generate heat and electricity on-site, helping us be largely energy self-sufficient. It also enables us to sell excess energy to third parties and local communities, to reduce our net emissions impact through avoided emissions, and to deliver benefits to our shareholders from cost reductions. If these avoided emissions are taken into account, we are well on the road to making our products climate-neutral.

We also aim to increase our use of renewable energy resources. Currently, 55% of our energy comes from renewable sources (mainly biomass).

Another important aspect of our business is the unique nature of our assets, which give us control over large areas of natural forests that form an important part of the world's natural and biological ecosystem. These forests are vital not only due to their wider environmental, economic and social aspects, but because of their mitigating impact on climate change, as a result of their capacity to collect and store carbon from the atmosphere. As part of the carbon cycle known as photosynthesis, trees absorb CO₂, sunlight, and water to produce carbohydrate energy for themselves and oxygen as a by-product. By sustainably managing our forests and enhancing our forestry footprint, we make considerable use of this carbon storage effect. See the Critical issues: Ecosystems and biodiversity conservation section.

Our strategy and actions are guided by our Group Environmental policy and policy on Climate change.

Our Operating Standard on Environmental Impact specifies that all operations under Mondi’s control shall ensure that environmental impacts are identified, managed and, where necessary, mitigated. Specifically, it requires that all operations shall have in place:

certified environmental management systems when environmental impacts may be significant.
waste management plans that include the identification and characterisation of all waste streams and appropriate re-use, recycling and disposal routes, as well as minimisation opportunities.
systems of work to ensure that emissions to water, land and air emanating from Mondi activities are identified, characterised, treated and monitored and, if significant, are mitigated.
characterisation, safe storage and handling of hazardous materials.
Environmental Impact Assessments (EIAs) for all new operations and for significant changes to current operations that are in line with local regulations and international good practice. For all significant projects, Environmental and Social Impact Assessments in line with the Equator Principles are required.
impact assessments to identify, characterise and address community health and community nuisance issues.
internal and external reporting of impacts to the environment.
systems to prevent pollution of land and groundwater arising from operations activities including landfills.

Accountability for our sustainable development policies, processes and practices is assured at every significant level of our business through the DLC sustainable development committee, DLC executive committee, Mondi’s sustainable development leadership panel and five global specialist network groups, including an environmental network. See the Governance of sustainability section for further details.

This environmental network comprises environmental managers from our environmentally material operations (including all mills), together with our Group head of sustainable development, Group environment manager and the safety, health and environment co-ordinators from each business unit. Six-monthly meetings are held by this network, which reports, monitors and assesses the environmental performance of operations against the Group environmental commitments, addresses gaps and shortcomings, identifies future projects, and develops and shares good practice across the Group.

Line management holds primary responsibility and accountability for sustainability performance, with support from the sustainable development function provided directly and through the environment network.

Training on environmental matters is undertaken at both Group and operational levels.

At a Group level, we support the DLC executive and DLC sustainable development committees regarding environmental strategy; internal environmental standards, procedures and supporting tools (for example, the carbon footprint calculation tool) are provided to all operations; we host environmental managers' meetings; we support local and business unit teams on specific environmental issues; and we engage with NGOs and universities regarding environmental issues.

Environmental issues have been integrated into Group and operational strategies and plans, and accountability for environmental issues is a measure of management performance. Operations are responsible for the development of environmental programmes and procedures that implement the Mondi Operating Standards and Performance Requirements and the Mondi Management Standards. The Group provides the resources, training, education, consultation and auditing to ensure that we comply with environmental legislation and other requirements to which we subscribe.

We are committed to the development, implementation and maintenance of certified site environmental management systems at all our operations which have a significant environmental impact. In line with our Group commitment, all mills have environmental management systems certified to ISO 14001 in place, except for Stambolijski in Bulgaria, which is awaiting certification after being mothballed in 2009 and restarted in 2010; and the Tire paper mill in Turkey, which is a recent acquisition and has not yet been certified.

Key aspects that we focused on in 2010 include:

generating product carbon footprint (PCF) methodology and the provision of a PCF calculation tool embedded in our MORIS database, our sustainable development reporting and information system;
calculating the water footprint of the Group and of its supply chain and material operations; and
starting a zero waste approach – zero waste promotes not only re-use, recycling and diversion from landfills, but importantly, reduces costs and environmental impacts.

Environmental expenditure cannot be isolated from operational expenditure and environmental management is an integral part of our operating costs.

Last change: 15/03/2011