Our 2015 sustainable development commitments

We are operating in a world of constrained resources, facing environmental and social challenges which are global in scale and local in nature. These challenges affect our business, our stakeholders and the communities in which we operate, and our response to them contributes to our future sustainability. It is therefore crucial for us to identify and understand our material sustainability issues within this global context. Stakeholder engagement and risk management processes also inform our material issues and the commitments we have set to monitor and improve our performance.

The table below provides an overview of our commitments in relation to our six material issues, and our progress against these in 2013. With the exception of our commitments on carbon and energy, which cover the period 2004 to 2014, all other commitments are set against a base year of 2010, to be met by 2015.

Securing access to sustainable fibre in the short, medium and long term to
meet the needs of the business and our customers

Commitments Progress Key performance statistics
We will maintain our FSC™ certification of all owned, leased and managed forests. In 2013, we maintained 100% FSC™ certification of our owned and leased forests. 100% of managed land FSC™-certified
We will procure over 60% of wood, virgin fibre and biomass products from credible certified sources. The balance will be sourced with products as defined in the FSC™ Controlled Wood Standard. 66% of our total procured wood in 2013 was CoC-certified to FSC™ or PEFC™ standards (a 6% improvement compared with our 2010 baseline of 60%) and the balance met the FSC™ Controlled Wood Standard. 66% of wood CoC-certified
We will continue to work with our South African forestry partners to provide support to land reform beneficiaries in an effort to sustain productivity after the land has been transferred. To date, some 36,000 hectares of Mondi land under forestry have already been transferred to community beneficiaries, bringing the percentage of land transferred to claimant communities to 26% of the total area of 139,000 hectares under claim, and the percentage of settled claims to 23% of the total number of recorded claims. 23% land claims settled in South Africa, 26% of land transferred in South Africa to claimant communities
We will maintain our Chain-of-Custody certifications for our mills and certify Stambolijski by 2013. All our mills (100%) have Chain-of-Custody (CoC) in place. Our Stambolijski mill received its FSC CoC certification in 2013. 100% of mills CoC-certified
We will promote the Mondi brand by increasing the proportion of fibre-based products which is certified against a credible forestry standard. 66% of our products based on wood procured directly by our mills, and 81% of our products based on pulp procured externally by our mills, were manufactured from CoC-certified sources. The balance in both cases was sourced from credible sources meeting the FSC™ Controlled Wood Standard. 66% of wood-based products and 81% of external pulp-based products from CoC certified materials

Maintaining our licence to trade by making a real and lasting contribution
to the communities in which we operate

Commitments Progress Key performance statistics
We will continue to disclose our carbon and forestry footprint performance. In 2013 we have once again disclosed our carbon and forestry footprint performance in CDP. We were not included in the leadership index this year due to the higher threshold set for inclusion but aim to improve our performance in 2014. Continued disclosure of performance in CDP
We will continue to engage with the United Nations Global Compact (UNGC) and promote and support and implement its ten principles. We continue to engage with UNGC and reported our Communication on Progress (CoP) in August 2013. We continue to report at an Advanced Level. Advanced Level reporter at the UNGC
We will continue to engage with the WBCSD and address the most contentious global sustainability matters affecting our business. We support WBCSD’s Action2020. Mondi’s CEO is a core member of the ecosystem FACT. We are an active member of the Forest Solutions Group and chair the Carbon Action Team. Active member of the WBCSD Forest Solutions Group
All mill operations to be certified to ISO 14001 and OHSAS 18001. All our mills (100%) are certified to both ISO 14001 and OSHAS 18000 standards. 100% of mills certified to ISO 14001 and OHSAS 18001
All converting operations to be certified to OHSAS 18001. 66% (55 of 83 operations) have achieved certification by the end of 2013. 66% of converting operations certified to OHSAS 18001
All forestry operations to be certified to ISO 14001 by 2013. The South African forest operations are currently in the process of certification and the Russian forest operations are planning certification by June 2014. 100% of forest operations will be certified in 2014
We will reduce our level II environmental incidents by 50% by 2015 from the 2010 base year and maintain a 0 level III environmental incident performance. We had 5 level II environmental incidents in 2013, an improvement of 75% against a 2010 base year. 75% reduction of level II environmental incidents
We will revise our community complaints system by 2012 and will focus on the reduction of odour-related complaints. In 2013 we have revised our methodology on reporting complaints in order to categorise and report complaints and incidents separately. Revised approach to community complaints implemented
All operations that are involved in producing food contact packaging to be certified to a recognised food hygiene standard. Out of the 71 operations producing food contact packaging in 2013, 47 (66%) were certified to a recognised food hygiene standard, with the balance meeting Good Manufacturing Practice standards. 66% certified to food hygiene standards
All mills and forestry operations to have a rolling community engagement plan (CEP) and Russian and South African forestry and mill operations to have a SEAT process updated on a three-to-five year cycle. All mills and forestry operations have a CEP in place. In 2012 we did SEAT reviews at our Richards Bay mill in South Arica and Syktyvkar mill in Russia, and in 2013 we conducted the first SEAT at our Stambolijski mill in Bulgaria. First SEAT in Bulgaria, on-going CEPs at all socially material mills

Understanding and minimising our contribution to climate change and
taking advantage of the potential opportunities presented by forestry in
the mitigation of climate change

Commitments Progress Key performance statistics
By 2014, we will reduce our CO2e emissions per unit of saleable production from our mills by 15%, against a 2004 base year. We have exceeded our commitment, and as at the end of 2013 we have achieved a 30% reduction of our specific CO2e emissions against a 2004 base year. 30% reduction of specific CO2e emissions
By 2014, we will reduce our carbon based energy consumption per unit of saleable production from our mills by 15%, against a 2004 base year. Our integrated mills have achieved a reduction of 22% by 2013, and non-integrated mills a reduction of 8%, against a 2004 base year. Overall we have exceeded our commitment and reduced our specific energy consumption by 20%. 20% reduction of specific energy consumption
We will progress towards being a carbon neutral company in the longer term, by increasing the proportion of renewable resources for primary energy needs against the 2010 base. 61% of the total fuel consumption by our pulp and paper mills in 2013 came from renewable energy sources, mainly biomass. 61% of fuel consumption of mills from renewables
We will progress towards becoming self-sufficient in electrical energy in the longer term. A 90% electrical self-sufficiency was achieved by 2013, mainly as a result of energy-related investments such as the recovery boilers in Syktyvkar and Frantschach mills. 90% electrical self-sufficiency

Operating in a world of constrained resources and recognising concerns
regarding biodiversity, water and ecosystem services

Commitments Progress Key performance statistics
We will implement Ecosystem management plans (EMPs) at all our forestry operations by 2013. All our forestry operations have EMPs in place. 100% of forest operations with EMPs in place
We will report on seedlings planted, our tree improvements, the invasive species fight back and our work on pest and disease resistance. In 2013, we planted 36 million seedlings. 70,784 hectares of land in our South African forests were maintained in terms of alien species. More information on our tree improvements, invasive species eradication and pest and disease resistance can be found in Our forests: ecosystem stewardship 36 million seedlings planted, 70,784 hectares of land in South Africa alien species-maintained
We will report on land set aside for conservation purposes. In 2013, 26% of our managed (owned and leased) forestry land was set aside for conservation purposes. 26% of managed land set aside for conservation.
Mondi participates in WWF New Generation Plantations (NGP) project and is committed to the concept. In 2013, Mondi co-hosted the NGP Africa regional meeting and field visit together with WWF (SA). A number of Mondi’s forests were used to illustrate the NGP principles. Co-hosted NGP Africa meeting with WWF
We will carry out a water impact assessment (WIA) of our forestry operations and mills. We have completed WIAs at our mills and forestry operations. 100% of mills and forestry operations undergone water impact assessments.
We will continue to work with our partners WWF and WESSA to support the Mondi Wetlands Programme (MWP) in South Africa and will involve local communities in educational, restoration and conservation activities where reasonable. Mondi remains the principle sponsor of the MWP. See Our forests for an update on our activities with the MWP. Continued support of MWP
We will continue to work with our stakeholders to identify areas of high conservation value in Komi (Russia) and in South Africa. During 2013, one of the five intact HCV forest areas associated with Mondi’s operations was registered for the establishment of the Koigorodsky National Park. To date, we have identified 572,907 hectares of HCV areas, 4,781 hectares in South Africa and 568,126 hectares in Komi, Russia. 572,907 hectares of HCV areas identified

Safeguarding wellbeing of employees and contractors and securing key
talent and skills

Commitments Progress Key performance statistics
Avoid work related employee and contractor fatalities. There were two incidents resulting in four contractor fatalities in 2013. Decision taken to further increase focus on low-probability, high-impact events. Four fatal injuries
Prevent work-related life-altering employee and contractor injury. Two life-altering injuries were experienced at the Steti mill with two contractors losing fingers. Two life-altering injuries
We will achieve a TRCR of 0.75 or below by 2015, including employees and contractors, against a 2010 base year. We achieved a TRCR of 0.78 in 2013. We will review the current 2015 milestone after monitoring the combined performance in 2014, taking into account the new acquisitions. TRCR of 0.78
Through a partnership approach with government and NGOs, Mondi will facilitate access to a comprehensive primary health care service, including the provision of ARTs for its employees and contractors. 45 employees and 97 contractors in our South African operations are currently on ART. 45 employees and 97 contractors on ART
We will continue to report the diversity of our workforce. 20% of our employees and 7% of our senior managers in 2013 were female. 20% of employees and 7% of senior managers female

Increasing the eco efficiency of our products

Commitments Progress Key performance statistics
We will increase the number of products in our Green Range, including non-fibre based products. We will revise our approach in 2014 to reflect our extended product portfolio following our major acquisitions at the end of 2012. Revised approach to Green Range in 2014
We will progress towards being a zero waste company by reducing the total waste to landfill by 20% by 2015 against a 2010 base year. A 7% reduction was achieved by the end of 2013. We continue to investigate new and innovative approaches to eliminating or reducing our landfilled waste in order to meet our commitment by 2015. 7% reduction of landfilled waste
We will reduce TRS emissions from our mill operations by 20% in 2015, against a 2010 base year. A 39% reduction was achieved by the end of 2013, mainly by closing loops and introduction and incineration of odour-containing off-gases in our boilers. We are currently focusing on the reduction of diffuse emissions. 39% reduction of TRS emissions
We will promote conservation, reuse and recycling practices to reduce specific contact water consumption by 10% by 2015, against a 2010 base year. Mondi has withdrawn 308 million m³ of water and used 208 million m³ as contact water in our processes. This represents the maintenance of our specific contact water compared with 2010. Planned investments at our pulp and paper mills will further improvements to reduce water withdrawal for production and cooling purposes, as well as to increase reuse and recycling capacity. Maintained specific contact water consumption
We will reduce our effluent load to the environment, either directly or indirectly discharged, by 10% against a 2010 base year. A 9% reduction of COD emissions was achieved by the end of 2013, mainly by modernisation projects at our mills involving the modernisation of our waste water treatment plants. 9% reduction of COD emissions
We will continue to report our consumption of recovered fibres 1.4 million tonnes (roughly a third of our consumed pulp) was from recovered fibre in 2013. 1.4 million tonnes of recovered fibre