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.
2020 performance The Group achieved a ROCE of 15.2%.
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.
2020 performance Mondi realised a five-year TSR of 42% and recommended a total dividend of 60.00 euro cents per share for the year, a 5% increase on 2019.
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.
2020 performance Underlying EBITDA of €1,353 million represents an 18% year-on-year decrease. The Group’s underlying EBITDA margin was 20.3%.
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.
2020 performance Our TRCR improved 23% against our 2015 baseline (and improved 7% compared to 2019), exceeding our 2020 commitment.
Why this is a KPI We continually focus on making our business less carbon intensive to address climate-related impacts and secure the long-term success of our business.
2020 performance We have reduced our specific CO2e emissions by 24% against our 2014 baseline and continue to make progress against our science-based greenhouse gas reduction targets. We have committed to reduce our specific emissions by 34% to 2025 and 72% to 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.
2020 performance 100% of our managed forests remained FSC-certified, and 76% 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.
2020 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).
Why this is a KPI Our customer-centric EcoSolutions approach is driving innovation to deliver more sustainable products that meet our customer’s sustainability pledges focusing on circular economy principles.
2020 performance As a new KPI, we estimate that 76% of our revenue in 2020 was generated from products that were recyclable, reusable or compostable.