Our approach to sustainability reporting

At Mondi, our core purpose is to create long-term value for our stakeholders by transforming renewable natural resources into innovative product solutions that meet customer needs in a responsible, cost-effective and sustainable way.

Our products are inherently sustainable – almost all our products are based on natural fibres from renewable sources, and are highly recyclable.

Our sustainable development commitments give life to our vision, and we endeavour to achieve these through the robust policies, systems and practices that we have in place at a Group and operational level.

Mondi’s Sustainable Development Report 2010 mirrors the Group’s approach to sustainable development and illustrates how sustainability is an integral part of our business. The theme of our 2010 report is Taking Stock, reflecting that we have reached a milestone in the conclusion of our five-year commitment period in many of our core objectives and material sustainability issues. In addition to reviewing our 2010 performance, we report our progress against our five-year key environmental, social and governance commitments, which form the base for the management of sustainability across the Group. These commitments and targets emanate from our engagement with external stakeholders and the concerns raised by them, along with our own identification process of significant risks relating to sustainability issues.

Addressing sustainability risks

Managing sustainability is an integral part of our overall approach to risk management, and we have identified our material sustainability risks. The way in which this is governed is addressed in the Annual Report 2010, particularly in the section on Governance.

Identifying material issues

We focus and report on those issues that are most material to the business and to our stakeholders. In brief, the issues that are most material to our business are reflected in our sustainable development commitments and include:

• ensuring that appropriate governance is in place at all levels of the Group;
• producing sought-after products in a responsible manner;
• securing continued access to raw materials in a resource-constrained world;
• attracting, retaining and caring for employees;
• achieving and maintaining our licence to operate through responsible management of our operations and their impacts; and
• respecting our host communities.

Although our five-year commitments have come to an end following a thorough review, we believe that the issues we identified remain valid. In developing the next generation of commitments we will continue to review these, and amend and add as appropriate

We also understand that deforestation and climate change is an issue of broader global concern, and that this matter cuts across all of our commitments. We have recognised the importance of this as a holistic matter and have addressed this through a separate, dedicated section in our report – Responsible forestry and climate change.

In identifying the most material sustainability issues for the business we have:

• reviewed and updated our sustainability risk profile and have ensured that we report on all the material risks we have identified. See the section on Sustainability risks;
• engaged extensively with stakeholders at an individual and Group level, both formally and informally. Feedback from stakeholders continues to inform the issues we address and our reporting. See the section on Stakeholder engagement;
• reviewed reporting of our peers, to understand the issues that are most important to them and to our joint and similar stakeholders, and to ensure a level of comparability in reporting for stakeholders;
• reviewed the coverage of media and other interested parties, of the issues facing the company;
• engaged in dialogue with operational management in respect of the issues to be reported on;
• reviewed and responded to the indicators specified by the Global Reporting Initiative (GRI) and, in particular, adopted GRI’s G3 guidelines as the basis of our reporting. See the section on Reporting in line with GRI;
• reviewed feedback received by various bodies and NGOs on our sustainability performance and other third-party benchmarking. We also take into consideration the charters, principles and commitments made by bodies to which we subscribe. See the section on Stakeholder engagement;
• received and considered feedback from internal and external surveys, such as employee, customerand analyst surveys; and
• discussed and taken into account the guidance of the DLC sustainable development committee.

Last change: 07.03.2011