Understanding our material sustainable development issues

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 some of our key 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.

Our material issues


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


100%
of managed land FSCTM-certified


CoC-certified wood 2013 (%) [graph]

Our key commitments

  • We will maintain our FSCTM certification of all owned, leased and managed forests.
  • 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 FSCTM Controlled Wood Standard.
  • We will maintain our Chain-of-Custody (CoC) certifications for our mills and certify Stambolijski (Bulgaria) by 2013.

Progress

  • In 2013, we maintained 100% FSCTM certification of our owned and leased forests.
  • 66% of our total procured wood in 2013 was CoC-certified to FSCTM or PEFCTM standards (a 6% improvement compared to our 2010 baseline of 60%) and the balance met the FSCTM Controlled Wood Standard. 81% of our externally procured pulp was sourced from CoC-certified sources, with the balance meeting the FSCTM Controlled Wood Standard.
  • All our mills (100%) have CoC in place. Our Stambolijski mill received its FSCTM CoC certification in 2013.

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


20% reduction of specific
energy consumption


Energy use material operations 2013 (GJ) [graph]

Our key commitments

  • By 2014, we will reduce our CO2e emissions per unit of saleable production from our mills by 15%, against a 2004 base year.
  • 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.
  • We will progress towards becoming a carbon-neutral Group in the longer term, by increasing the proportion of renewable resources for primary energy needs against the 2010 base year.

Progress

  • 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.
  • 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 reduced our specific energy consumption by 20%.
  • 61% of the total fuel consumption by our pulp and paper mills in 2013 came from renewable energy sources, mainly biomass.

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


Advanced Level
UNGC reporter

Our key commitments

  • 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 Socioeconomic Assessment Toolbox (SEAT) process updated on a three- to five-year cycle.
  • We will continue to engage with the United Nations Global Compact (UNGC) and promote and support the implementation of its ten principles.
  • We will continue to engage with the World Business Council for Sustainable Development (WBCSD) as a platform to address the most contentious global sustainability matters affecting our business.

Progress

  • All mills and forestry operations have a CEP in place. In 2012 we completed SEAT reviews at our Richards Bay mill in South Africa and Syktyvkar mill in Russia, and in 2013 we conducted the first SEAT at our Stambolijski mill in Bulgaria.
  • We continue to engage with the UNGC and reported our annual Communication on Progress (CoP) in August 2013. We continue to report at an Advanced Level.
  • We support WBCSD’s Action2020. We are an active member of the Forest Solutions Group and chair the Carbon Action Team.

Operating in a world of constrained resources and recognising concerns regarding biodiversity, water and ecosystem services, and ensuring appropriate responses to these


Our key commitments

  • We will carry out a water impact assessment (WIA) of our forestry operations and mills.
  • We will report on land set aside for conservation purposes.

Progress

  • We have completed WIAs at our mills and forestry operations.
  • In 2013, 26% of our managed (owned and leased) forestry land was set aside for conservation purposes.

Safeguarding the wellbeing of our employees and contractors, and securing key talent and skills

TRCR of 0.78
in 2013

Our key commitments

  • We will avoid work-related employee and contractor fatalities.
  • We will achieve a total recordable case rate (TRCR) of 0.75 or below by 2015, including employees and contractors, against a 2010 base year.

Progress

  • There were two incidents resulting in four fatal injuries in 2013. Decision taken to further increase focus on low-probability, high-impact events.
  • We achieved a TRCR of 0.78 in 2013. We will review the current 2015 milestone taking the new acquisitions into account after monitoring the combined performance in 2014.

Increasing the eco-efficiency of our products


TRS emissions (tonnes) [graphs] Total waste to landfill (000 tonnes) [graphs]

Our key commitments

  • We will reduce total reduced sulphur (TRS) emissions from our mill operations by 20% in 2015, against a 2010 base year.
  • We will reduce our effluent load into the environment, either directly or indirectly discharged, by 10% in 2015 against a 2010 base year.
  • We will progress towards becoming a zero waste Group by reducing the total waste to landfill by 20% by 2015, against a 2010 base year.

Progress

  • A 39% reduction was achieved by the end of 2013*.
  • A 9% reduction of Chemical Oxygen Demand (COD) emissions was achieved by the end of 2013*.
  • A 7% reduction was achieved by the end of 2013*.

* against a 2010 base year