Scope of report

This Sustainable Development Report is for the 2010 financial year which runs from 1 January 2010 to 31 December 2010 and covers the activities of those production operations over which we have control, joint control or significant influence (Mondi Ltd, Mondi plc and their respective subsidiaries). Our previous report was for the 2009 financial year. We endeavour to report fully, transparently and on an annual basis on all the material environmental, social and governance issues at these operations.

Throughout the online and printed summary, the terms ‘Mondi’, ‘the company’, and ‘the Group’ refer to the combined Group, unless noted otherwise. Not included in this report are the UK-based, independently managed joint venture company, Aylesford Newsprint Limited; the paper distribution company, Europapier, which was sold in 2010; some of our smaller sales offices and other smaller administrative functions. The data provided on environmental performance cover our environmentally material operations as defined in the glossary and listed below.

Our approach to reporting on the performance data of the recent acquisitions and sold/closed operations

During the course of 2010, we closed or sold a number of operations including our UK corrugated plants, Frohnleiten in Austria and Europapier. We also acquired various operations, including industrial bag plants in Spain, France and Italy, and we restarted the Stambolijski operation in Bulgaria. The environment and safety data of our most recent acquisitions since 2007, which were excluded from the scope of the previous report, have been consolidated into the Group statistics for the reporting year 2010. These acquisitions comprise: Unterland (Austria), Lohja (Finland), the Tire paper mill (including the corrugated packaging operations of the Tire paper mill, Adana, Corlu, Izmit, Karaman and Manisa in Turkey), Coating Thailand (Thailand) and our nine Mondipak Plastics operations in South Africa.

We have set fixed timelines for incorporating the performance of the new acquisitions into the Group statistics. These timelines differ for each sustainable development reporting area (for instance, we allow a two-year timeline for safety performance and a one-year timeline for environment - both to be finally decided by management on a case-by-case basis). By distinguishing between newly acquired and older Mondi operations in performance data, we aim to present a full picture of Mondi's performance, so that the standardised performance of existing operations is not tained by the weaker performance of new operations. We have taken this into consideration in reporting progress against our commitments.

In the case of operations sold or closed between 2004 (the base year for our earliest set of commitments) and 2010 (the milestone for our commitments period) we have incorporated their impact on the Group performance accordingly. In the case of operations acquired during this period - Lohja (Finland) and the Tire paper mill (Turkey), as well as Stambolijski (Bulgaria) (acquired in 2007 and re-commissioned in 2010) - we have included their environmental performance in measuring the commitments. As such, we have included their historic data (before being acquired by Mondi) into our performance as well. The rationale for this is that as part of our due diligence for new acquisitions, we have processes in place to assess the environmental performance close to - if not completely aligned with - our standards. We therefore believe that including their historic performances into the Group statistics would be reflective of our standards and would give a truer picture of the progress towards our commitments.

We take, however, a different approach in terms of the safety and occupational health performance of our new acquisitions. We believe reporting on their historic performances before being acquired would materially affect our base year data, as well as the data throughout our commitments period, and as such, backdating their performance would not serve our purpose of presenting a true and reflective picture of how the Group has performed over the commitments period.

Financial information is predominantly reported in euros (€) with the exception of instances where the information is related to South Africa and Russia where we refer to South African Rand (ZAR) or Russian Roubles (Rub).

In terms of reporting on wood consumption, we have reported a slightly different figure in this report compared with our Annual Report, as this report covers all the activities of our global production operations in which we hold a minimum 50% shareholding or over which we have operational control. Based on this approach, the wood consumption volume reflected in this report is slightly higher than that reported in our annual financial report, where joint ventures are proportionally consolidated.

For more details regarding the scope and boundaries of our report, please see the Our approach to sustainability section.

The following conditions also apply to the data we report:

• safety data for both our employees and contractors;
• HIV/AIDS data for all our South African operations, including administrative functions, in line with the HIV and AIDS risk in South Africa;
• environmental data, including production and energy data, for our environmentally material production operations as listed below;
• wood tracing data for all our operations that procure virgin fibre; and
• gender diversity data for all operations in which we hold a minimum 50% shareholding or over which we have operational control. Where our shareholding is less than 100%, we have reported gender diversity numbers to reflect the appropriate percentage holding.

From time to time we have reported on operational- or regional-specific data. In these instances, a description of operations or regions covered has been provided.

Our environmentally material operations comprise:

• Szolnok (Hungary) (closed in 2008)
• Dunaujvaros (Hungary) (sold in 2005)
• Stambolijski (Bulgaria) (mothballed in 2009 and restarted in 2010)
• Cartonstrong (Monza) (Italy) (sold in 2009)
• Holcombe (UK) (closed in 2008)
• Niedergösgen (Switzerland) (sold in 2008)
• Frohnleiten (Austria) (sold in 2010)
• Hadera (Israel) (reduced ownership interest to 25% in 2010)
• Frantschach (Austria)
• Hausmening and Kematen (Austria)
• Ružomberok SCP (Slovakia)
• Ružomberok KP (Slovakia)
• Syktyvkar (Russia)
• Štĕtí (Czech)
• Vaeja (Dynäs) (Sweden)
• Raubling (Germany)
• Świecie Mill (Poland)
• Lohja (Finland) (acquired in 2008)
• Tire paper mill (Turkey) (acquired in 2007)
• Merebank (South Africa)
• Richards Bay (South Africa)
• Springs (South Africa)
• Piet Retief (South Africa)
• Felixton (South Africa)
• Mondi Shanduka Newsprint (South Africa)

Data collection and internal reporting

For comparative information purposes, both historical and forward-looking data are provided with the latest previous Sustainable Development Report for 2009 and other prior reports available at the Reports and publications section of our website.

Information and data for this report were collected by the individual operations and reported to the Mondi Group on a monthly basis using the Mondi Reporting Information System (MORIS), introduced Group-wide in 2007. The reports monitor, among other issues, safety, health and environmental performance, progress against the Group’s sustainable development commitments, information on any major incidents and instances of non-compliance. Data collected through MORIS helps Mondi to produce tailored reports, which help us address performance gaps in the related sustainable development areas.

Individual operations collect and process the data using the best available national or international methodologies and techniques for measurement, calculation and analysis. Each operation is responsible for the accuracy of the data. Although we have taken every effort to ensure the accuracy of data, we recognise that some may be subject to uncertainty arising from different interpretations of the internal reporting guidelines. We have included an additional level of data verification at business unit/divisional level to ensure improved accuracy of the data reported at operational level.

Significant changes and restatements

Due to refinements in data definitions, improvements in data collection systems and measurement techniques, some previously published data for 2004-2009 has been corrected. The changes, however, have had no material effect on the Group statistics, and the reported data remains comparable.

Sustainability contacts

Our sustainability team is on hand if you need more information or have any questions.

Please contact:

Email: sd@mondigroup.com
Austria - Arnavaz Schatten: +43 (0) 1 790 130
South Africa - Kerry Crandon Cooper: +27 (0) 11 994 5400
UK - Tanya Patterson: +44 (0) 1932 826 300

Last change: 23.03.2011