We use KPIs to measure the success of our strategy to deliver value accretive growth, sustainably. Our executive directors and senior management are remunerated in line with our KPIs. We set individual targets for each of our business units in support of these Group KPIs.
Why this is a KPI ROCE provides a measure of the efficient and effective use of capital in our operations. We compare ROCE to our current estimated Group pre-tax weighted average cost of capital to measure the value we create.
2021 performance The Group achieved a ROCE of 16.9%.
Why this is a KPI TSR provides a market-related measure of the Group’s progress against our objective of delivering long-term value for our shareholders. TSR measures the total return to Mondi’s shareholders, including both share price appreciation and dividends paid.
2021 performance Mondi realised a five year TSR of 37% and recommended a total dividend of 65.00 euro cents per share for the year, an 8% increase on 2020.
Why this is a KPI Underlying EBITDA provides a measure of the cash generating ability of the Group that is comparable from year to year. Tracking our cash generation is one of the components we measure when we assess our value creation through the cycle.
2021 performance Underlying EBITDA of €1,503 million represents an 11% year-on-year increase. The Group’s underlying EBITDA margin was 19.5%.
Why this is a KPI Keeping people safe and healthy is a moral and a business imperative that applies to all who work for and on behalf of Mondi. Our 24-hour safety mindset supports our goal of sending everybody home safely, every day.
2021 performance We achieved our TRCR milestone for 2021 set at 0.62 to allow for the prolonged shut at Richards Bay. There were no fatalities or serious injuries during annual shuts but unfortunately one of our contractors experienced a life-altering injury in January 2021.
Why this is a KPI Our focus is to reduce our GHG emissions to address climate-related impacts and secure the long-term success of our business.
2021 performance We have reduced our specific CO2e emissions by 25% against our 2014 baseline and continue to make progress against our science-based greenhouse gas reduction targets. During the year we accelerated our climate plans by committing to transition to Net-Zero by 2050.
Why this is a KPI Our goal is to keep materials in circulation. We are focused on avoiding, reusing or recycling unavoidable waste generated in our production processes instead of disposing of it to landfill. Going forward, waste to landfill will be one of the measures included in management remuneration and has therefore been added as a KPI.
2021 performance In 2021, we reduced our specific waste to landfill by 22% against our 2020 baseline. We continue to make progress against our target of zero waste.
Why this is a KPI We aim to maintain investment grade credit ratings to ensure we have access to funding for value accretive investment opportunities through the business cycle.
2021 performance Our investment grade credit ratings were reaffirmed during the year –BBB+ (Standard & Poor’s) and Baa1 (Moody’s Investors Service).
Why this is a KPI The demand for sustainable packaging continues to rise, with brands and consumers looking for solutions to help meet their sustainability pledges and support the transition to a circular economy. We began reporting our progress against this KPI in 2020.
2021 performance We estimate that 78% of our revenue in 2021 was generated from products that were reusable, recyclable or compostable. We are working towards our ambitious target of reaching 100% by 2025.