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.

2019 performance
ROCE of 19.8% reflects an industry leading performance.

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.

2019 performance
Mondi realised a five-year TSR of 88% and recommended a total ordinary dividend of 83.0 euro cents per share.

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.

2019 performance
Underlying EBITDA of €1,658 million represents a 6% year-on-year decrease, with a five-year CAGR of 6%. In 2019, we delivered an industry-leading underlying EBITDA margin of 22.8%.

Why this is a KPI
The safety and health of all our employees and contractors is of paramount importance. We are embedding a 24-hour safety mindset to help us reach our goal of sending everybody home safely in support of our strategy to grow in a sustainable way.

2019 performance
Our overall TRCR has improved by 22% against the 2015 baseline (and 13% against 2018) but we were deeply saddened by the two fatalities and two life-altering injuries during the year.

Why this is a KPI
We continually focus on making our business less carbon intensive to address climate change-related impacts and secure the long-term success of our business. We have committed to reducing our specific CO2e emissions by 2050 against our 2014 baseline through our science-based target.

2019 performance
To date, we have reduced our specific CO2e emissions by 15.5% against our 2014 baseline. In 2019, our science-based greenhouse gas reduction targets were approved by the Science Based Targets initiative in which we committed to reduce our specific emissions 34% by 2025 and 72% by 2050, against our 2014 baseline.

Why this is a KPI
Securing sustainable fibre for our products is critical for our long-term success. We only source our wood from responsible sources, and are committed to maintaining our 100% FSC-certified forests and procuring at least 70% of our wood from FSC- or PEFC-certified sources by 2020.

2019 performance
100% of our managed forests remained FSC-certified, and 72% of the wood we procured was FSC- or PEFC-certified (with the remainder meeting minimum Controlled Wood standards), exceeding our 2020 commitment.

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.

2019 performance
Our investment grade credit ratings were reaffirmed during the year – Standard & Poor’s BBB+ (stable outlook) and Moody’s Investors Service Baa1 (stable outlook).