Here’s how we progressed against our sustainability commitments in 2018.

Figures reported in ‘specific’ terms are normalised to saleable production. Specific CO2e emissions are reported in tonnes per tonne of saleable production; specific contact water in m3 per tonne of saleable production; and specific waste to landfill, specific COD and specific NOx all in kg per tonne of saleable production.

Progress percentages are calculated excluding the performance of our Powerflute paper mill (Finland), which was acquired in 2018, and is excluded from baseline data. Progress percentages still include performance data until 05/2018 from Pine Bluff (USA), which was then sold.

performance worse than or the same as the base year; measures in place to be back on track

achievement of the commitment behind target

achievement of the commitment on track

 

Employee and contractor safety and health

  • Avoid work-related employee and contractor fatalities

    What we did in 2018

    We were deeply saddened to have had a fatality at our Syktyvkar operation (Russia) during maintenance work in the woodyard. Regretfully, we also experienced a contractor fatality at our Ružomberok mill (Slovakia) in January 2019, during drilling activities on site. Investigations were conducted to identify the causes and contributing factors in order to prevent similar incidents from happening again.

    Performance in brief

    One fatality 

    Progress

    2016 2017 2018
  • Prevent life-altering employee and contractor injuries

    What we did in 2018

    We also regret that we had five life-altering injuries during the year at our Štětí mill (Czech Republic), Gronau operation (Germany), logging operations (Russia), Forests (South Africa), and Świecie mill (Poland). We continued to focus on the top risks at all our operations in 2018 to prevent serious injuries from happening again. As behaviour is a common contributing factor in our serious injuries, we continue to place focus on improving the behaviour and safe habits of all.

    Performance in brief

    Five life-altering injuries

    Progress

    2016 2017 2018
  • Reduce TRCR by 5% compared to 2015 baseline, including new acquisitions

    What we did in 2018

    Our total recordable case rate (TRCR) was 0.68 in 2018, an 11% improvement against the 2015 baseline of 0.76 (which included acquisitions). Looking ahead, we will continue to address the top risks in all our operations in order to engineer them out of the business. We will also continue to strengthen our risk assessment procedures and our cultural focus on the behavioural aspects of safety to make sure that not only our TRCR improves, but that fatalities and serious injuries are prevented.

    Performance in brief

    0.68 TRCR

    Progress

    2016 2017 2018

A skilled and committed workforce

  • Engage with our people to create a better workplace

    What we did in 2018

    Our most recent group-wide employee survey was carried out in February 2018. All Mondi employees were invited to take part, with the survey available in 24 languages. We are encouraged by the group-wide response rate of 89% (2015: 90%), reflecting the engagement of our employees in achieving a better, more inspiring workplace together. Positive findings included employee empowerment in stopping unsafe behaviour, employees’ perception of a positive attitude among leadership, and the common characteristic of ‘thinking ahead and acting quickly’ in teams. Areas considered as opportunities for improvement included teams receiving high-quality support from other teams with which they work, the belief that quality is everyone’s responsibility, management doing what they say, action being taken on the previous survey, and employees feeling cared for by the Group. Key actions in response to the findings include increasing focus on care and recognition for our employees, and strengthening a culture of people development.

    Performance in brief

    Carried out 2018 employee survey, and undertook actions in response to findings

    Progress

    2016 2017 2018

Fairness and diversity in the workplace

  • Promote fair working conditions and diversity in the workplace

    What we did in 2018

    In 2018, we developed a Diversity and Inclusion (D&I) roadmap to create a work environment that fosters and respects a culture of diversity and inclusion. We have established a new D&I committee, which includes four executive committee members, supported by a taskforce comprising a diverse mix of colleagues. Overall, more than 100 actions were identified. These have been distilled into 10 priority work streams for 2019, based on the Mondi D&I framework pillars.

    We are working to develop specific metrics that can more clearly monitor, measure and track our commitment to promote fair working conditions in the workplace.

    Performance in brief

    D&I roadmap developed and 10 priority work streams identified to support and enhance diversity and inclusion in the workplace

    Progress

    2016 2017 2018

Sustainable fibre

  • Maintain FSC™ certification for 100% of our owned and leased forest lands and promote sustainable forest management

    What we did in 2018

    In 2018, our forest management system in South Africa successfully passed the Forest Stewardship Council (FSC) surveillance audit against the FSC standards. The work of our certification body in South Africa was also assessed by Assurance Services International (ASI) and compliance to FSC procedures was confirmed. Our forest management system in Russia also maintained certification in compliance with FSC and Programme for the Endorsement of Forest Certification™ (PEFC™) standards, including new forest areas that were leased in 2017 (38,900ha). Both our Russian and South African forestry operations maintained ISO 14001 certification in 2018.

    In 2018, Mondi together with Silver Taiga Foundation, participated in an ASI project to pilot-test Geographic Information System (GIS) tools to support the auditing process and increase the effectiveness and quality of audits. We shared our experience in using GIS to support the development of a risk-based approach, which is very important for effective forest management certification.

    Performance in brief

    100% of owned and leased forests certified

    Progress

    2016 2017 2018
  • Procure at least 70% of our wood from FSC™- or PEFC™-certified sources with the balance meeting our company minimum wood standard that complies with FSC™’s requirements for Controlled Wood (CW)

    What we did in 2018

    We continued efforts to increase the share of certified fibre from external suppliers. Since 2014, the percentage of FSC- and PEFC-certified wood in our supply has increased by 5% from 66% to 71%.

    We continued work with WWF to support the development of forest certification in the State Forests of Bulgaria, where availability of certified fibre is limited.

    We participated in work to develop FSC’s CW Strategy, together with WWF. We also actively supported a pilot project on Joint Control Measures for practical implementation of the Centralized National Risk Assessment (CNRA) in Slovakia.

    All our mills maintained their CoC certification. Our operations embedded the new requirements of the CW standards into their due diligence systems.

    We further developed our Due Diligence Management System (DDMS) to include social and environmental performance indicators in addition to the EUTR and U.S. Lacey Act requirements. We improved our country-level risk approach, updating applicable assurance levels for different risks, based on existing certification schemes, and defining additional tools for implementation beyond certification in the cases of special risk.

    Performance in brief

    71% of wood certified

    All CoC certifications with CW requirements were maintained

    Progress

    2016 2017 2018

Climate change

  • Reduce specific CO₂e emissions from our pulp and paper mills by 15% by 2030 against a 2014 baseline

    What we did in 2018

    In 2018, we are close to achieving our 2030 target against the 2014 baseline2. This improvement was mainly achieved through our investments in a biomass boiler and recovery boiler at our Świecie mill (Poland), and a new biomass boiler at our Syktyvkar mill (Russia).

    Performance in brief

    14.5%1 reduction of specific CO2e emissions against the 2014 baseline

    Progress

    2016 2017 2018

    1) Progress including Raubling (Germany) in the commitment’s base year: 13.3% reduction; 2014 figure: 0.83 

  • Reduce productionrelated specific Scope 1 and 2 GHG emissions from our pulp and paper mills to 0.25 tonnes CO₂ per tonne of saleable production by 2050 against a 2014 baseline

    What we did in 2018

    In 2018, we committed to reduce our production-related specific Scope 1 and 2 CO2 emissions to 0.25 tonnes of CO2 per tonne of saleable production by 2050 against a 2014 baseline of 0.59. The first milestone to be achieved is 0.44 tonnes of CO2 per tonne of saleable production in 2025. This reduction target has been calculated with WWF, using the science-based target setting methodology.

    Performance in brief

    7.7% reduction of specific production-related CO2 emissions against the 2014 baseline

    Progress

    2016 2017 2018

Constrained resources and environmental impacts

  • Reduce specific contact water consumption of our pulp and paper mills by 5% compared to a 2015 baseline

    What we did in 2018

    We achieved a slight reduction of 2.0% against the 2015 baseline, with our specific contact water reduced to 33.2 m3 per tonne of saleable production, compared to the 2015 baseline (33.9 m3/t).

    We have seen an increase in specific contact water consumption in 2018 compared to 2017. Our Richards Bay (South Africa) mill significantly increased its specific contact water consumption because of upset conditions following an extended shut in February. Our water consumption was also impacted by the higher ambient temperatures experienced in an unusually hot summer in Europe..

    Performance in brief

    2.0%1 reduction of specific contact water consumption against the 2015 baseline

    Progress

    2016 2017 2018

    1) Progress including Raubling in the commitment’s base year: 0.3% increase; 2015 figure: 33.15

  • Reduce specific waste to landfill by 7.5% compared to a 2015 baseline

    What we did in 2018

    We have increased our specific waste to landfill to 38.2 kg per tonne of saleable production, compared to the 2015 baseline.

    This increase in specific waste to landfill is mainly caused by our Syktyvkar mill, which has successfully finished recultivation of its sludge pond. In June 2019, recultivation of a second sludge pond will start, in the meantime waste has to be landfilled. Waste to landfill also increased significantly at our Richards Bay mill as a consequence of the emptying of the emergency basins after the extended shut in February.

    Performance in brief

    1.3%1 increase of specific waste to landfill against the 2015 baseline

    Progress

    2016 2017 2018

    1) Progress including Raubling in the commitment’s base year: 4.7% increase; 2015 figure: 36.52

  • Reduce specific NOx emissions from our pulp and paper mills by 7.5% compared to a 2015 baseline

    What we did in 2018

    Our specific NOx emissions amounted to 1.7 kg per tonne of saleable production, a 16.3% decrease against the 2015 levels (2.0 kg/t). The reduction was mainly achieved due to our investments in energy efficiency measures and increasing biomassbased energy in our mills, including biomass boilers in Syktyvkar and Świecie and new recovery boilers at Frantschach, Ružomberok, and Świecie.

    Performance in brief

    16.3%1 reduction of specific NOx emissions against the 2015 baseline

    Progress

    2016 2017 2018

    1) Progress including Raubling in the commitment’s base year: 13.5% reduction; 2015 figure: 1.98 

  • Reduce specific effluent load to the environment (measure COD) by 5% compared to a 2015 baseline

    What we did in 2018

    We released a total of 229 million m3 of treated waste water back to the aquatic environment. Specific COD after wastewater treatment was 8.0 kg per tonne of saleable production, a 6.1% increase against 2015 (7.5 kg/t).

    The increase was caused mainly by the release of process water and increased washing after the extended shut at our Richards Bay mill in February. Our Kematen (Austria) mill also increased its COD levels due to short-term marketbased downtime.

    Performance in brief

    6.1%1 increase of specific effluent load against the 2015 baseline

    Progress

    2016 2017 2018

    1) Progress including Raubling in the commitment’s base year: 8.9% increase; 2015 figure: 7.31

Biodiversity and ecosystems

  • Promote ecosystem stewardship in the landscapes where we operate through continued multi-stakeholder collaboration

    What we did in 2018

    We continued to develop and promote our Sustainable Working Forest model, using a multi-stakeholder engagement and landscape-level approach to look at managing biodiversity and ecosystem services, key types of natural capital (trees, water, soils), long-term productivity, and the resilience of production landscapes. We reviewed our long-term local partnerships – Silver Taiga Foundation in Russia and the Mondi Ecological Networks Programme (MENP) in South Africa – to identify key achievements and insights, align objectives with current trends and challenges, and define future activities.

    In Russia, we continued efforts to develop landscape stewardship for the protection of Intact Forest Landscapes (IFLs) and other High Conservation Value (HCV) areas. In South Africa, we continued efforts to develop watercatchment level engagement to enhance collaboration with other sectors in water stewardship. We continued to support collaboration platforms – New Generation Plantations Platform (NGP), Boreal Forest Platform (BFP), and The Forest Dialogue (TFD). In 2018, the members of the platforms revisited sites to assess progress made since the first initiatives were implemented.

    The World Business Council on Sustainable Development’s (WBCSD’s) Forest Sector Guide to Natural Capital Protocol was launched. Mondi provided technical expertise and a case study to demonstrate how natural capital can be assessed and measured. We also provided input and a case study for WBCSD’s publication, Climate Smart Agriculture, to communicate the business case for investing in soil health.

    We continued collaboration with international stakeholders to develop and promote new sustainability concepts and approaches across different land uses and industrial sectors. WBCSD’s Forest Solutions Group (FSG) extended its strategy from natural capital to circular bio-economy and also commenced work on the Forest Sector Sustainable Development Goals Roadmap. The Cambridge Institute for Sustainability Leadership’s (CISL’s) Natural Capital Impact Group (NCIG) launched Healthy Ecosystems Metrics to review different approaches to measuring biodiversity, water and soils. The HCV Resource Network (HCVRN) has embedded a High Carbon Stock approach into its assessments to help achieve nodeforestation in commodity production.

    We engaged with scientific organisations to enhance the inclusion of scientific research into strategic planning and decisionmaking processes in the forest sector. We supported the IIASA Cool Forest conference, which addressed the interactions between Forest and Climate and we participated in the joint NGP-IUFRO seminar within the International Congress on Planted Forests.

    Performance in brief

    Extended the work of the WWF-Mondi Partnership in South Africa and Russia and carried out a 10-year review of our local partnerships, Silver Taiga and MENP

    Continued to actively support collaborations, including NGP, BFP, TFD, CISL NCIG, HCVRN, WBCSD FSG and International Union of Forest Research Organziations

    Progress

    2016 2017 2018

Supplier conduct and responsible procurement

  • Encourage supply chain transparency and promote fair working conditions together with our key suppliers

    What we did in 2018

    In 2018, we developed a comprehensive methodology to assess sustainability risks in our supplier base and conducted training for procurement specialists. Developments include better integration of the responsible procurement process by linking the supplier risk assessment process with supplier classification. This will help increase transparency in our supplier base and deliver efficient strategies for supplier development.

    We also developed the responsible procurement process to assist us in identifying key sustainability risks associated with our supply chain – namely labour rights, climate change, and water and biodiversity-related risks. In future, additional risks may be added if they have the potential to impact on our business and our ability to maintain continuity of supply.

    In 2018, we carried out a pilot screening of 100 suppliers from across all procurement categories using the new methodology. Twenty-five suppliers received a scoring of medium or high risk in one or more of the areas of labour rights, environmental or water risk. These suppliers were requested to complete a questionnaire and, based on their answers, their risk rating was reviewed. Those remaining at high risk will now enter the follow-up process. We are using our learnings from the pilot to improve the supplier questionnaire and supplier engagement.

    In 2018, we updated the Code of Conduct for Suppliers (Code) again to include additional risk areas related to labour rights, environmental impact and water stress. The updated Code will be rolled out to new suppliers from 2019, and to existing suppliers in the course of the contract renewal process.

    Performance in brief

    Continued development of the responsible procurement process to identify sustainability risks in our supply chain and carried out a pilot screening of 100 suppliers to test the methodology

    Progress

    2016 2017 2018

Relationships with communities

  • Enhance social value to our communities through effective stakeholder engagement and meaningful social investments

    What we did in 2018

    We continued working towards a common methodology, based on the Impact Pathway toolkit, to provide sufficient consistency across the Group while allowing for local flexibility to review the impact of community projects and develop action plans to address findings. Our aim is to review key community projects by 2020 and develop action plans for each operation to address findings. We are developing internal guidance related to impact measurement, which will provide a consistent group-wide methodology for our operations to conduct the review and assessment as stated by the commitment.

    Performance in brief

    Progress made on a toolkit to measure the social and business value of community investments

    Progress

    2016 2017 2018

Solutions that create value for our customers

  • Encourage sustainable, responsibly produced products

    What we did in 2018

    In 2018, we identified the need to refocus certain elements of our Responsible Products criteria to promote our circular economy approach and make the criteria more relevant to all fibre packaging and plastic products. The criteria have been reviewed, updated and renamed our Sustainable Products criteria.

    We signed up to the Global Commitment made by leading brand owners, retailers and packaging companies – announced by the Ellen MacArthur Foundation at the World Economic Forum in Davos. Becoming a signatory means that we commit to:

    • - Take action to eliminate problematic or unnecessary plastic packaging by 2025
    • - Take action to move from single-use towards reuse models where relevant by 2025
    • - 100% of plastic packaging to be reusable, recyclable, or compostable by 2025
    • - Set an ambitious 2025 recycled content target across all plastic packaging used.

    Performance in brief

    Updated and renamed our Sustainable Products criteria and signed up to the Global Commitment launched by the Ellen MacArthur Foundation

    Progress

    2016 2017 2018