Mondi's commitment to sustainable development in South Africa
Sustainable Development
Mondi aspires to be the best-performing paper and packaging group in the world. To ensure its continuing success, the company is committed to embedding sustainable development principles in all its commercial activities.
Mondi is an integrated packaging and paper producer, employing 33,400 people across 35 countries worldwide, with key operations and interests in western Europe, emerging Europe, Russia and South Africa. In 2008, the group had revenues of €6.3 billion. Sustainable development is an integral part of Mondi’s business model. The company is listed on the FTSE4Good index and the Johannesburg Stock Exchange’s Social Responsibility Index (SRI).
In South Africa, the company has identified a number of key sustainability imperatives. These include practising sustainable forestry and mitigating the potential impact on biodiversity; reducing the environmental impact of its activities and exercising uncompromising safety and health stewardship; and building and maintaining respectful relationships with neighbours and local communities.
More detailed information, including their SD Summary Report 2008, is available on Mondi’s website – www.mondigroup.com
Promoting sustainable forestry
Thanks to scientific advances and a strategic approach, sustainable forestry has become an achievable goal for Mondi, who are working with the World Business Council for Sustainable Development (WBSCD), NGOs and scientific communities to develop and implement sustainable forestry practices.
For example, Mondi is a leader in researching the development of Ecological Networks – interconnected land corridors within the plantation landscape that help to maintain and promote biodiversity, while also optimising production. Initial findings of the University of Stellenbosch research team in South Africa are very encouraging. Additionally, early indications are that forthcoming results of current work on the science and management of New Generation Plantations (NGPs) could transform the industry’s impact on ecosystems.
Mondi has already proven the benefits of NGPs at its SiyaQhubeka Forests (SQF) operation. SQF is a partnership between Mondi and its Black Empowerment partners, Government and communities. It borders on the World Heritage Site of iSimangaliso Wetland Park in South Africa and illustrates many attributes of a successful NGP. SQF also played a leading role in increasing the size of the iSimangaliso Wetland Park by facilitating the inclusion of 9 000 hectares into the park. In addition the consortium has supported moving the boundary fence of the park to include a sizeable portion of its plantations, allowing for better management and freer movement of animals. This has increased the park by some 15 000 hectares forming a buffer zone between the World Heritage Site and the adjoining commercial farming areas. SQF consists of 20, 840 plantable hectares and 5 918 unplanted hectares. The unplanted area makes up approximately 20 percent of SQF’s land holdings and is managed primarily for conservation. With “symbiotic forestry” as SQF’s fundamental philosophy, the company proudly upholds its slogan, “Forestry for Life” and strives for the establishment of sustainable and mutually beneficial relationships between the forestry sector, the community and the environment.
Another example of the work Mondi is doing to promote sutainable forestry and protect biodiversity is its support of the Mondi Wetlands Programme (MWP). An estimated 55% of South Africa’s wetlands to date have been significantly damaged due to poorly managed agriculture and commercial forestry, mining, urban development, pollution, dam-building, erosion and fire. Moreover, 6 million South Africans do not have access to drinking water and therefore rely on streams, rivers, marshes and other types of wetlands to supply them with enough clean water to satisfy their needs. Because Mondi’s commercial activities use significant volumes of water, they rely on healthy wetlands and riparian zones. Mondi has therefore taken a leading role in promoting the awareness, better management and protection of the remaining wetlands and more importantly, the rehabilitation of damaged wetlands, in order to secure its license to operate and for the benefit of South Africa and its communities.
In 2008, Mondi confirmed its commitment to the wise-use and rehabilitation of South Africa’s wetlands through a contribution of over €1.6 million and continued partnership with WWF and MWP until 2013. The MWP is widely recognised as the most successful non-governmental wetland conservation programme in the country and together with Government and several leading scientists, the MWP has contributed to the development of a national procedure for wetland delineation. Mondi is also part of a grassland conservation initiative in KwaZulu-Natal. The company’s Ecosystem Management Plan for South Africa will be published in the second half of 2009, highlighting biodiversity hotspots and well as rare and endangered species.
Mondi is also a strong supporter of the Forest Stewardship Council (FSC), an independent, non-profit organisation which offers reputable third-party certification. All of Mondi’s South African forests are certified to FSC standards and in the Komi Republic in Russia, 2.1 million hectares of land currently leased by Mondi are FSC certified, with a further 616 000 hectares due to be certified in 2009. In addition, Mondi has also developed a tracking system for wood and virgin fibre products sourced from outside the group and now reports wood tracing data in its sustainability reviews.
Cleaner production and green products
Mondi has significantly improved the energy efficiency of its production processes, reducing both energy costs and greenhouse gas emissions. Focused capital investment in energy efficiency is set to sustain improvements through 2009 and beyond. From a 2004 baseline, total energy use for the group has fallen by 4% and CO2 emissions by 15%. The proportion of energy that Mondi produces itself has increased from 71% to 85% in the same period and the proportion of energy generated from renewable sources has increased from 47% to 53%. All greenhouse gas emissions are reported in line with World Resources Institute and WBCSD guidelines.
Mondi has also acted decisively to reduce waste and emissions, and a philosophy of continuous improvement should maintain this trend. For example at its Richards Bay operation in South Africa, the Odour Abatement Project is well underway and will address the most significant sources of odour from the mill. Malodorous TRS (total reduced sulphides) emissions have been reduced by 71% across the group since 2005. The new wastewater treatment plant at the same operation has contributed to the group’s reduction of total COD (chemical oxygen demand) emissions by 25%, from a 2005 baseline. Over the same period, Mondi has reduced total AOX (chlorinated organics) emissions by 62% by moving over to advanced bleaching technologies.
Mondi’s Green Range of office and printing paper, including IQ appeal, adheres to particularly stringent environmental standards. IQ appeal is FSC certified and is produced at Mondi’s Merebank mill in Durban, South Africa on its state of the art PM31 machine. PM31 was rebuilt in 2005, greatly reducing energy and water consumption at the mill. Other environmental improvements in the South Africa Division include reducing waste to landfill by more than 20% in the last year and specific sulphur dioxide emissions by 48% since 2005..
A clear focus on people and communities
Mondi considers the safety and health of its employees and contractors an absolute priority, and has incorporated revised safety rules and a number of other safety indicators into its Safety and Health Auditing tool to ensure that safety is accurately assessed and benchmarked. Mondi measures safety performance using the industry-standard Lost Time Injury Frequency Rate (LTIFR), and recorded an LTIFR of 0.18 for 2008, a 22% improvement compared with 2007.
In 2008 Mondi piloted its Food 4 Forests programme, ensuring that forestry workers are adequately hydrated and that they receive and consume a nutritionally balanced meal during their work day. Mondi is the first forestry operator in South Africa to introduce a scheme of this kind, with full implementation reaching approximately 10 000 workers, scheduled for mid 2009. The benefits also include reducing safety risks and creating new job opportunities for local people, in the areas of catering, vegetable gardening and waste recycling.
Mondi has committed to invest R100 million over three years through Mondi Zimele, its enterprise development arm, into projects that enable small and medium enterprises to join the Mondi value chain. Along with direct investment, skills development, manufacturing and waste recovery have been supported. In May 2009, Mondi was independently verified as being a Level 4 BBBEE contributor. This is significantly above industry and manufacturing sector averages in South Africa.
During 2008, Mondi worked in partnership with the South African Land Claims Commission to develop sustainable models for the settlement of land claims – ensuring the rights of the communities to return to their land and guaranteeing the company access to fibre. This partnership resulted in the historic industry-first settlement of two claims in the Kranskop area of Kwa Zulu Natal. Mondi has already settled a further seven claims this year and is confident that significant progress will continue to be made. Mondi’s new Forestry Partners Programme will help the many new forestry owners acquire the skills they will need to manage and develop their assets.
Many of Mondi’s operations are based in transitional or developing economies in which poverty, unemployment and infectious diseases are pressing issues. Mondi’s well-developed and systematic corporate social investment programme in South Africa disburses about €700 000 annually on initiatives that not only address immediate problems like these but also help communities build their capabilities. In 2008, social spending prioritised education and healthcare, including a number of HIV/Aids initiatives.
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