Australian Paper 2010 Sustainability Report

52
Sustainability Report 2010

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Transcript of Australian Paper 2010 Sustainability Report

Sustainability Report 2010

contents

This report and the information contained in this report is for the sole purpose of informing the public about Australian Paper’s efforts and achievements in operating sustainably. It is to be read as a whole. Except where it has specifically consented in writing, Australian Paper does not consent to, or warrant the use of, or reliance on this report or the information in it, for any other purpose.

preface 1

a message from 2 Jim Henneberry, Chief Executive Officer

about this report 5

governance 8

market place 10

manufacturing 13

Environment

caring for our environment 18

wildlife and wetlands management 23

conserving and managing our water 24

energy and greenhouse gas emissions 26

waste and recycling 28

air emissions 30

People

our people – the fibre of our business 32

workforce 32

safety 32

employee benefits 34

employee training 35

improving performance through TPM 37

looking forward 39

working with the community 41

Economic

our economic impact 44

GRI content index 47

GRI application level check 48

SectionName 1

Paper is essential for everyday life.Paper has played a significant role in the development

of civilisation. It’s hard to imagine how the arts, science,

culture and social freedoms could have evolved without

a medium as universal as paper.

Australian Paper has been at the forefront of the

Australian pulp and paper manufacturing industry for

over 70 years. Throughout this time we have invested

heavily in our people, manufacturing operations,

environmental initiatives and products to ensure the

sustainability of our business.

prefaceAs Australia’s principal manufacturer of quality

communication, packaging, printing and writing

paper we have an obligation to our diverse group of

stakeholders to provide products of high quality that are

responsibly produced.

Our customers, the community and industry need

assurance that the decisions we make in operating our

business take into consideration and act on the needs

of our generation, without compromising the needs of

future generations.

We continue to work diligently to minimise our impact

on the environment, and deliver positive economic

and social contributions to the communities in which

we operate.

2 a message from the CEO

Sustain ability, it’s in our fibre.

Jim HenneberryChief Executive OfficerAustralian Paper

a message from the CEO 3

A message from Jim Henneberry, Chief Executive OfficerThe Australian paper manufacturing industry has faced

many challenges throughout 2010. Challenges such as

pricing pressures due to the unprecedented rise in the

Australian dollar; motions by government to introduce

a carbon tax; the dumping of imported paper products

on our shores, and the impact of devastating bushfires,

have all had an impact on our business.

We have little control over these challenges. What we

can control is the way we do business.

Australian Paper’s approach to paper manufacturing is

uniquely sustainable. You could say that sustainability is

in our fibre. Our goal is that every aspect of our business

minimises our impact on the environment and aims

to create a positive benefit in the communities and

economy in which we operate.

Since our last report in 2007 we have worked towards

best practice in mill operations. Australian Paper

completed commissioning of a major modernisation

program in 2008 at our Maryvale mill, as part of an

ongoing strategy to reduce risk and embrace best

practice in manufacturing. The mill upgrade significantly

reduces environment impacts, improves safety, and

supports the ongoing sustainability of the pulp and

paper business.

As a result of the upgrade, we have achieved significant

reductions in energy use and are Victoria’s largest

generator of non-hydro baseload energy through the

use of our own mill waste by-product. This waste by-

product produces almost half the energy required to

power our Maryvale site. Our energy reduction efforts

have gone beyond Federal government targets and we

are on track to meet parent company Nippon Paper’s

goal of reducing our energy use by 1% per annum.

We have also achieved significant reductions in water

use through innovative technology. In coming years,

our use of recycled water will eventually double through

our partnership with the Gippsland Water Factory. Our

world’s best practice ECF-Lite low environment footprint

bleach and ozone plants have provided a safer, more

efficient and robust alternative to traditional bleaching.

All employees are involved in programs that are aimed at

performance improvement, cost reduction and quality

improvement to ensure our continued competitiveness.

Australian Paper’s Shoalhaven Mill has initiated lean

manufacturing techniques to production, including

team based continuous improvement activities which

has created greater employee satisfaction and increased

productivity at the mill.

As Australia’s largest integrated pulp and paper

manufacturer, Australian Paper has a responsibility to

ensure that our fibre is sourced from well managed

regrowth forestry operations and plantation and

recycled sources. In 2010, our focus to maintain and

strengthen our sustainable supply chain continued

to ensure that all fibre sourced met stringent

environmental standards.

AUSTRALIAN PAPER SUSTAINAbILITy REPoRT 2010

4 a message from the CEO

I view business sustainability as a cyclical journey.

We will not ‘achieve’ sustainability through one

off activities, but by assessing risk throughout our

operations, and careful and continuous integration

and improvement of all our environmental, social

and economic impacts, wherever we operate and

throughout our supply chain. With your support,

we can continue to contribute greatly to Australia’s

manufacturing sector.

I hope you find our 2010 Sustainability Report, our first

to be aligned with the Global Reporting Initiative (GRI)

Framework, informative.

Jim Henneberry

Chief Executive Officer

We are working together with a complex group of

stakeholders that include local communities, unions,

government, organisations within the supply chain,

environmental non-government organisations, and our

valued customers to ensure the best environmental,

social and economic long term solutions are achieved

for fibre sourcing. In 2011, we will launch our Future

Fibre Strategy review, which will include a formal broad

reaching stakeholder engagement program, and will

conduct detailed studies into our fibre supply options.

We had mixed safety results in 2010. I am saddened to

report that a long standing contractor was fatally struck

by a moving forklift at our site in Shoalhaven. Outside

this devastating incident, Australian Paper’s safety

performance continues to show improvement.

In 2011, Australian Paper will continue to focus on

maintaining best practice environmental processes

and improving the safety of our employees. We will

also launch our ‘Creating a Tonne of Value’ program to

provide a summary of our key environmental, social and

economic metrics.

about this report 5

about this reportReporting of indices since 2007 has changed from

tonnes of paper manufactured, to include tonnes of pulp

and paper manufactured, which reflects the upgraded

capabilities of our operations. This measure also aligns

with industry sector reporting standards. Reporting

of indices since our 2007 Environs Report has also

changed from a financial to calendar year reporting

schedule as a result of our ownership change.

In 2008, we completed a $600 million upgrade at our

Maryvale mill in Gippsland, Victoria which resulted

in significant improvements in energy and water

efficiencies, and reduced emissions and onsite hazard

risks at the mill.

We invite you to provide feedback and let us know your

thoughts about our 2010 Sustainability Report. Please

contact us at [email protected]. We

would also like to thank everyone who participated in

the compilation of this report, without whose assistance

and input this report could not have been completed.

Our 2010 Sustainability Report is our first report aligned

with the Global Reporting Initiative’s (GRI) sustainability

reporting framework, and as such, is a work in progress.

We have prepared this report in accordance with GRI

Level C reporting requirements. Looking ahead, we will

continue to produce an annual GRI aligned report.

This report aims to provide a transparent overview

of Australian Paper’s environmental, social and

economic performance as defined by the Global

Reporting Initiative.

We see the compilation of this report not only as a

reporting tool, but as a way to be accountable for our

activities, and to improve our performance over time.

This report provides an overview of Australian Paper’s

performance for the 2010 calendar year, in accordance

with our financial reporting cycle.

Our previous ‘Environs: Our Commitment to

Sustainability’ report was published in 2007, and focused

primarily on the environmental impact of our business.

By aligning this report with the GRI framework, many

additional social and economic aspects of the business

have been captured and reported on, expanding on our

previous reporting scope.

We have had significant changes at Australian Paper’s

operations since the publication of the Environs report,

including the sale of Australian Paper operations by

PaperlinX to Nippon Paper Group Inc. (Nippon Paper,

the largest subsidiary of Nippon Paper Group Inc.)

in June 2009. Nippon Paper Industries Co. Ltd. is a

public company listed on the Tokyo Stock Exchange

(TSE) and is one of the largest and most technically

advanced paper makers in the world. As a result of the

divestment of Australian Paper by PaperlinX to Nippon

Paper Industries Co. Ltd., the mills in Burnie and Wesley

Vale, Tasmania, remained with PaperlinX and have since

ceased production.

AUSTRALIAN PAPER SUSTAINAbILITy REPoRT 2010

6 about this report

In addition, the social and economic dimensions of

our business encourage us to include timber industry

related organisations as well as unions.

Our stakeholder engagement during 2010 involved a

range of engagement activities:

• Internal stakeholders – through regular meetings

• External consultants – to verify environmental data

• Customers – through customer

feedback mechanisms

• Government (state and local) – through representation

on committees and other regular contact regarding

environmental and safety compliance

• Environmental non-government organisations

– through meetings and involvement in

conservation activities

• Suppliers – through regular meetings

• Unions – through meetings and representation

on committees

• Communities – through representation on committees,

open days at mills and involvement with charities and

schools, and

• Industry associations.

The insights gained from these activities indicated a need

to increase the level and quality of our engagement with

stakeholders.

In 2011, a more coordinated and formal stakeholder

engagement process will be employed, to more

adequately identify and prioritise the opinions and

needs of our key stakeholders.

Report boundaryUnless otherwise stated, environmental data

contained within this report covers Australian

Paper’s manufacturing facilities in Maryvale, Victoria,

and Shoalhaven, New South Wales only as these

entities are considered the most material in terms of

environmental impact.

The environmental data in this report does not cover

our Australian Paper head office in Melbourne, the

Australian Office sales, marketing and manufacturing

division, our Australian Paper Print and Pack sales and

marketing division, our Paper Products Marketing Group

subsidiaries in the USA, Hong Kong, Singapore, Malaysia,

Taiwan and Germany, or Australian Paper Web sales and

marketing divisions.

Social and economic information within this

report covers all Australian based divisions, unless

otherwise stated.

No limitations in scope or boundary of the report exist

as all are clearly summarised in this section or in the

scope and materiality component of the report. No

restatements are necessary as this is Australian Paper’s

first GRI aligned report.

Stakeholder consultationStakeholder engagement has been a long term

undertaking at Australian Paper. We engage with

stakeholder groups that we have dealt with for many

years to ensure we are able to maintain our social

license to operate.

The materiality of our everyday business impacts

influences our selection of stakeholders with which we

engage. Material environmental activities in particular

mean that local and national environmental non-

government organisations are regularly consulted.

about this report 7

As a result, material topics covered in this report are:

• Employee safety

• Fibre sources and third party certification

• Working with the community

• Energy and greenhouse gas emissions

• Waste and recycling

• Conserving, recycling and managing our water

• Managing the supply chain

• Air emissions.

Scope and materialityWe prioritised material issues according to:

• Internal stakeholder feedback across Australian

Paper divisions

• External consultant recommendations about key

issues in sustainability for the manufacturing sector

• A review of our business and environment risk

management plans

• A review of customer feedback

• Review of feedback from committees which included

representatives from community, unions, business,

and government

• Best practice sustainability research and reports from

industry experts.

AUSTRALIAN PAPER SUSTAINAbILITy REPoRT 2010

8 governance

governanceCompany structurePaper Australia Pty Ltd, trading as Australian Paper,

is wholly owned by Nippon Paper Industries Co. Ltd.,

incorporated in Japan. Paper Australia Pty Ltd. wholly

owns and operates the Australian Office division in

Australia. Foreign entities listed in the table are all

subsidiaries of Paper Australia Pty Ltd, and operate as

the Paper Products Marketing business.

Significant subsidiaries and their divisions

Country of incorporation

Ownership Interest

Paper Australia Pty Ltd • Australian Office

Australia

100%

Paper Products Marketing Pty Ltd

Australia 100%

Paper Products Marketing Taiwan Ltd

Taiwan 80%

Paper Products Marketing Hong Kong Ltd

Hong Kong 100%

Paper Products Marketing Pty Ltd

Malaysia 100%

Paper Products Marketing Singapore Pte Ltd

Singapore 100%

Paper Products Marketing USA Inc.

USA 100%

PPM Frohlen-Reddeman GmbH

Germany 100%

As a private company, Paper Australia Pty Ltd, trading

as Australian Paper is not required to produce a

financial report. However, our financial performance

is communicated in parent company Nippon Paper

Industries Co. Ltd.’s financial report. Australian Paper

has an appointed auditor to audit our accounts annually,

and financial statements are lodged with the Australian

Securities and Investment Commission (ASIC) as

required by the Corporations Act (2001).

We recognise however, that as market and social

expectations change both in Australia and throughout

our industry sector, publicly reporting our activities

ensures that we remain transparent and open to public

scrutiny. Consistent with this, Australian Paper abides by

it’s own company Code of Conduct.

governance 9

Company ownershipAustralian Paper is an Australian Proprietary Company,

limited by shares. We are registered with the Australian

Securities and Investments Commission (ASIC). Nippon

Paper Industries Co. Ltd. is the sole shareholder.

Organisational structureAustralian Paper’s Australian operations comprise a

number of business units, each with its own capability,

spanning manufacturing, production and printing.

Australian Paper’s head office is located in Melbourne,

Victoria.

Australian Paper

Australian Paper Print

Offset Web

Specialities Transactional Mail

Security

Kraft liner board Sack and

bag papers

Office Papers Stationery Envelopes

Integrated Pulp and Paper operation

Speciality and Security Papers

Australian Paper Packaging

Australian Office

Maryvale Mill

Shoalhaven Mill

Our boardOur Australian board of directors are elected by Nippon

Paper Industries Co. Ltd. (NPI) and in 2010 included

Australian Paper’s Chief Executive Officer, Chief Financial

Officer, NPI Representative Director and NPI Tokyo

based directors.

There are no independent directors as non-executive

directors are employed by Nippon Paper Industries Co.

Ltd., or Paper Australia Pty Ltd. A chairman is elected at

each board meeting, which is held three to four times

per year.

Committees formally established under Australian

Paper’s Board Charter include the Risk and Compliance

Committee and the Occupational Health Safety and

Environment Committee. These committees receive

reports and information from the management team,

and in turn, report to the Executive Committee, a

subcommittee of directors.

Where matters concerning the Australian Paper

management of risk of any entities arise, the matters

are recorded on the Risk Register and examined in

accordance with the Risk and Compliance Committee’s

terms of reference and procedures.

AUSTRALIAN PAPER SUSTAINAbILITy REPoRT 2010

10 market place

market placeOur marketsOur primary market is the business to business sector,

with the majority of our products sold in Australia.

We supply around 380,000 tonnes of Australian Paper

manufactured and owned product around Australia and

34,000 tonnes into New Zealand.

Australian Paper also exports 220,000 tonnes of

product to over 60 countries in Asia, North America,

Latin America, Europe, the Middle East, the Indian

subcontinent, Africa and Papua New Guinea

through our wholly owned trading company Paper

Products Marketing.

Australian Office, leadingbrands.com.au is our office

products division with strengths in office paper,

envelopes, playing cards and a broad range of locally

manufactured stationery products. This range is further

complemented with imported stationery products

that are outside of our manufacturing capability.

leadingbrands.com.au features well-known brands

including Reflex, Tudor and Olympic. Australian Office

is one of the few remaining local manufacturers in the

diverse, import dominated stationery products market.

Paper Products Marketing also handles sales of an

additional 230,000 tonnes of paper and other products

from over 100 paper mills and other suppliers from

Australia, New Zealand, China, USA, Europe, Japan and

Brazil, to over 75 countries.

Australian Paper is Australia’s largest communications,

packaging and paper manufacturer, producing and

distributing over half a million tonnes of high quality

communication, writing, printing and packaging paper

per year.

Our experienced and dedicated staff comprise

around 1300 employees throughout our Australian

Paper operations.

market place 11

Pulp

Australian Paper processes short fibre chemical eucalypt

pulp, unbleached long fibre pine and unbleached

short fibre NSSC, used internally in the manufacture of

communication and bleached packaging papers, as well

as by other businesses.

Product categories

Printing and communication papers

Australian Paper communication papers are used for

office paper, envelopes, statements, direct mail pieces,

books, catalogues and magazines, stationery, and

general printing. Security papers are produced for uses

such as cheques, passports and visas.

Packaging papers

Packaging papers are used for paper bags (for example,

sugar bags), sacks (for example cement or flour sacks),

wrappers, lamination (for example lining for soup

packets or building insulation) and corrugated boxes (for

example fruit boxes or white goods packaging). These

papers are made from virgin Kraft pine fibre, Eucalyptus

NSSC and recycled fibre.

AUSTRALIAN PAPER SUSTAINAbILITy REPoRT 2010

12 manufacturing

our brands

our customers

Australian Paper manufactured and owned iconic brands are Reflex, Optix, Tudor, Australian, Olympic,

Brilliant, Saxton, Postspeed, Copyright and Queen’s Slipper. We also manufacture private label brands which

are sold by many large wholesale and retail businesses in Australia.

Our pulp and paper customers include merchants, printers, mail-houses, packaging manufacturers,

contract stationers, independent resellers, converters and large and small retailers in both the domestic and

export market.

manufacturing 13

Both mills hold licenses with the respective Environment

Protection Authority (EPA) in each state of operation.

The Maryvale mill also has a Major Hazardous Facility

(MHF) Victoria license.

The majority of Australian Paper products are certified

to the Australian Forestry Standard, endorsed by PEFC,

and selected Australian Paper products hold Good

Environment Choice New Zealand (GECNZ) certification.

Australian Paper operates two mills in Victoria and

New South Wales. Both mills hold Australian Forestry

Standard and Forest Stewardship Council® (FSC®) Chain

of Custody certifications in addition to certification to

the environmental management standard ISO14001 and

quality management standard ISO9001. Our Victorian

mill is certified to health and safety standard AS4801 and

has a NATA Certified laboratory onsite for environmental

monitoring and water quality testing.

manufacturing

AUSTRALIAN PAPER SUSTAINAbILITy REPoRT 2010

14 manufacturing

Operating since 1957, our smaller Shoalhaven mill in

New South Wales is Australia’s leading manufacturer

of over 1400 different grades of high quality speciality

paper. Shoalhaven produces printing paper for

letterheads and annual reports; boards for greeting

cards and business cards; high wet strength paper for

maps and tea bags; paper for certificates, coloured

paper and boards; security paper, and watermarked and

embossed papers.

Shoalhaven produced 15,000 net tonnes of speciality

paper in 2010. The mill has one paper-making machine,

with the capability of making highly specialised security

papers with fibre detail watermarks. It also manufactures

a range of deep colours and speciality grade paper. The

mill has a finishing facility, waste water treatment, sheet

conversion and guillotining facilities. Papers produced

at the mill range from 100% recycled fibre to 100%

new fibre.

Our millsAustralian Paper’s Maryvale mill, located in Gippsland,

Victoria and built in 1937, is Australia’s largest integrated

fine paper-making and packaging facility, producing

more than 500,000 tonnes of paper every year.

The Maryvale facility has three pulp mills, five paper-

making machines, an ECF Lite bleach plant, a pulp

lapping machine, a finishing facility, a waste paper

processing plant, waste water treatment ponds and

chemical recycling facilities. The primary paper output

at Maryvale is office and packaging paper sold in

Australia and New Zealand.

manufacturing 15

3. BleachingSome fibre is also processed into bleached pulp through

the action of chemicals, producing a white pulp suitable

for printing and writing papers.

• Oxygen is used to dissolve and remove lignin that is

still present in brown pulp. Removing as much lignin

as possible greatly improves the efficiency of the

bleaching process

• Chlorine dioxide, ozone and more oxygen are

used to break down and remove the colour from

nearly all of the remaining lignin. Once washed,

pure strong cellulose wood fibres remain which are

ideal for producing strong and smooth printing and

communication papers with high brightness.

4. Paper formingIn this stage, pulp and additives are mixed to form paper.

A three stage process encompassing forming, pressing

and drying is used.

• At the forming stage, pulp flows onto a continuously

moving plastic mesh screen where water is removed

by vacuum

• At the pressing stage, water is physically squeezed

out of the fibre and water mixture

• The continuous paper sheet then moves onto a series

of drying rollers which are heated using steam injection

• For fine paper, a film of starch is then applied to

increase the surface strength of the paper for

printing applications.

The paper is then tested for a large range of properties

including weight, moisture content, thickness, colour,

brightness, roughness, strength, fibre orientation and

other performance characteristics.

5. FinishingThe final stage of the paper making process may

include rewinding to smaller sizes, coating, trimming

sheeting or repackaging, depending on the type of

product manufactured.

There are up to five key stages

in the paper making process:

fibre sourcing, pulping,

bleaching, paper forming

and finishing.

1. Fibre sourcingFibre is sourced from:

• Forest sources including eucalyptus and pine wood.

Pine wood fibre has long fibres, which is optimal

for manufacturing packaging paper. Eucalyptus

wood fibre has short fibres, optimal for high quality

printing paper

• Waste paper purchased from industrial recyclers and

kerbside collections

• Saw mill residue from the housing and

furniture industries.

2. PulpingFibre is processed into pulp through a chemical

pulping process:

• Chemical pulping is a cooking process where

lignin is removed from chips of wood by dissolving

it in white liquor – a mixture of caustic soda and

sodium sulphate. The addition of steam for heating,

coupled with a set time for ‘cooking’, separates the

fibres and gives the paper special attributes such as

strength and smoothness ideal for high performance

packaging papers and communications papers.

When waste paper is used as the raw material, water is

added to form a pulp or slurry, and impurities such as

staples, plastics, coatings and inks are removed. White

recycled papers use non chlorine bleaching processes

to achieve the desired brightness of the paper.

The manufacturing process

AUSTRALIAN PAPER SUSTAINAbILITy REPoRT 2010

16 manufacturing

educational video clip featuring the Injury Free (IF) Day

mascot ‘SeeMore Safety’ and the Maryvale Mill Injury

Free elephant.

Australian Paper’s Australian Office division was a finalist

in both the 2009 and 2010 Corporate Express Awards in

the following categories:

• Supplier Performance Awards – Gold Category

• Collaborative Partner Award

Australian Office also won the Collaborative Partner

Award in 2007 and 2008. The awards recognise

Australian Paper’s commitment to building and

maintaining trusting relationships with our customers.

Australian Paper’s ENVI range of Carbon Neutral paper

won three 2009 Australian Business Awards categories:

Best Eco-Friendly Product, Product Innovation

and Marketing Excellence. The awards recognise

organisations that demonstrate the core values of

business excellence, sustainability and commercial

success in their respective industries.

AwardsSince the publication of our Environs report in

2007, each year we have been recognised for our

commitment to the environment, our employees, the

community, and our customers.

Our Maryvale mill was the proud winner of the Victorian

Association of Forest Industries’ 2010 Environmental

Sustainability Award in recognition of Australian Paper’s

use of innovative solutions to reduce greenhouse

emissions and recycle waste.

The mill was also the winner of the 2010 Victorian

Association of Forest Industries’ Occupational Health

and Safety Award for our efforts toward improving

working conditions, and providing innovative ways to

train staff in safety issues. Also recognising Maryvale

mill’s commitment to the safety of our employees,

Australian Paper won the KIDS Foundation’s inaugural

IF (Injury Free) Day Award, with our winning

Environ ment

caring for our environment

materials used to make

and distribute our paper

responsible fibre sources

wildlife and wetlands

management

ECF-Lite bleaching plant

energy and greenhouse

gas emissions

carbon neutral program

recycling program

air emissions

18 Environment

• Responsible waste management practices adopted at

all of our sites

• Construction of composting facilities at both mills,

reducing our waste to landfill

• Being a signatory to the Australian Packaging

Covenant. We have developed a 2010-2015 action

plan to support the responsible use of natural

resources in packaging throughout the business.

These activities underpin the sustainable nature of the

pulp and paper business both now and into the future.

Year on year we strive to improve the way we manage

our activities through delivering on key actions that

reduce our impact on the environment.

Materials used to make and distribute our paperThe primary material used to make our paper is fibre in

the form of pulp logs, sawmill residue, specialist pulps,

de-inked pulp manufactured from recycled waste paper,

and raw waste paper.

Mineral pigments and starches are also used in the

manufacture of our paper. Once Australian Paper

products are ready to be distributed, packaging materials

are used to ensure product quality is maintained all the

way to the end customer. These packaging materials

include wrappers, cartons, strapping, pallets, labels,

shrink wrap and plastic wrap.

Our approachAustralian Paper’s objective is to ensure that our

environmental management approach works

towards our ‘Zero Harm’ policy. We employ a robust

environmental governance framework that focuses

on risk management, continuous improvement

measures and regular monitoring and review of our

practices. We utilise world’s best practice technology

and methodologies where possible to mitigate the

environmental impact of our activities.

Our environmental vigilance is demonstrated by:

• Chain of Custody certification for fibre supply at both

our Maryvale and Shoalhaven mills

• Certification to environmental management standard

ISO14001 and quality standard ISO9001 throughout

our pulp and paper manufacturing facilities

• Our participation in the WWF’s Global Forest and

Trade Network (GFTN) in Australia since 2008

• The $600 million upgrade of our Maryvale mill

in 2008, which has allowed us to improve our

environmental performance in the areas of:

– air emissions

– chemical use – implementation of ‘ECF-Lite’

bleach and ozone plant technology leaves a

lower environmental footprint than previous

technology used

– energy efficiency – the upgrade allows more

efficient use of black liquor bio-fuel

– water use – the upgrade will allow us to

progressively increase water efficiencies in the

coming years

• Our partnership with the Gippsland Water Factory,

providing us with innovative solutions to replace a

significant portion of water used with recycled water

• Sourcing approximately 60,000 tonnes of waste

paper each year

• Increasing production of Carbon Neutral paper

products from around 3300 tonnes in 2009 to around

8300 tonnes in 2010

caring for our environment

“Australian Paper employs a robust environmental governance framework

that focuses on risk management, continuous improvement measures

and regular monitoring and review of our practices.”

Environment 19

Fibre sourcesFibre from wood is a major component in the

papermaking process. Wood fibre is a renewable

resource, and Australian Paper understands the

importance of purchasing from sustainably managed

suppliers. That’s why we procure fibre from third party

certified sources in Australia and overseas.

63% of Australian Paper’s total fibre requirements are

met from plantation wood, imported plantation pulp,

deinked, recycled pulp made from old magazines and

catalogues, and waste paper from households, industry

and business, collected through municipal and private

recycling services. The remainder is sourced from

managed regrowth state forests in Victoria’s Central

Highlands.

The wood we source from managed regrowth state

forests in Victoria is unsuitable for use in high value

timber products such as furniture, structural building

timbers and flooring. If this wood was not supplied to

Australian Paper, it would either be left onsite as waste

wood or exported as woodchips.

1,600,000

1,400,000

1,200,000

1,000,000

800,000

600,000

400,000

200,000

0

wood purchased

2007 2008 2009 2010

1,413,411 1,476,586 1,454,784 1,591,907

cub

ic m

etre

sto

nn

es

600,000

500,000

400,000

300,000

200,000

100,000

0

pulp sources

2007 2008 2009 2010

45,88511,740

63,581

512,051 521,561 496,585 543,850

38,93015,447

50,746

40,08314,97132,399

44,36219,06130,084

390,845 416,438 409,132 450,343

waste paper de-inkedwood imported pulp

fibre inputs – 2010

46%

37%

6%

3%

8%

imported plantation pulp

managed regrowth

de-inked pulp

waste paper

local plantation

AUSTRALIAN PAPER SUSTAINAbILITy REPoRT 2010

20 Environment

Australian Paper achieved certification to the Australian

Forestry Standard in 2008 as it is the only forestry

standard in Australia that is recognised by Standards

Australia. Australian Paper has also been FSC® certified

since 2006 and will complete a full 5 year

re-certification audit in 2011.

Chain of Custody certification under the Australian

Forestry Standard and FSC® means that Australian

Paper’s manufactured products can be tracked clearly

from the origin of the wood source, through the

processing phase, and finally, to the end product,

ensuring confidence in the responsible management of

the entire paper manufacturing and distribution process.

Responsible fibre sourcesOur Maryvale and Shoalhaven mills operate under

stringent quality and environmental management

standards (ISO9001 and ISO14001) and hold Chain of

Custody certification by the Australian Forestry Standard

and the Forest Stewardship Council® (FSC®).

Australian Paper has been a long term supporter of both

FSC® and AFS in Australia. In addition, AFS is endorsed

by the Programme for the Endorsement of Forest

Certification (PEFC). This, along with the FSC®, means we

utilise the two foremost global third party certifications

for responsible forest management.

For more information, please visit:

www.fsc.org - Forest Stewardship Council.®

www.pefc.org - Programme for the Endorsement

of Forest Certification.

www.forestrystandard.org.au - Australian Forestry

Standard.

wood. All imported fibre fits within Chain of Custody

sourcing requirements.

We ceased purchasing wood fibre from Indonesia in

2004 due to concerns about the negative environmental

and social impacts of supplier activities.

Whether we source local or imported wood fibre,

evidence is sought from suppliers that fibre sources are

managed for long-term sustainability.

Our competitors, largely from Indonesia, China and

other countries from Asia, supply forest products, the

majority of which are uncertified. These imported

products contributed $1.9 billion to Australia’s trade

deficit in 2007-2008. 51% of these products were paper

and paperboard products (primarily printing and writing

paper) and 11% sawn wood (see: www.abs.gov.au).

Key facts• 85% of fibre sourced by Australian Paper is Australian

Forestry Standard certified. This includes both local

and imported materials and also de-inked pulp stock.

• 13% comes from saw mill waste.

• The remaining 2% is sourced from private

landholders, and meets the criteria of the Australian

Forestry Standard certification. This fibre source

is provided by local farmers who have grown

pine or eucalypt species for their own interest or

investment purposes.

• 43% is FSC® certified.

Australian Paper does not accept any fibre from old

growth wood or sawmill residues from old growth

Environment 21

VicForests is accountable to the Victorian government

for their harvesting practices. The Department of

Sustainability and Environment (DSE) manages

Victoria’s state forests for a variety of uses, including

the allocation of timber resources to VicForests for

sustainable harvesting. Operations meet strict safety

and environmental standards, codes and legislation

including the Sustainable Forests (Timber) Act 2004.

VicForests operations are audited through DSE’s Forest

Audit Program and are also certified to the Australian

Forestry Standard.

VicForests contributes more than $6 million per annum

to regenerate all harvested areas with local species.

All regenerated areas are then handed back to DSE for

ongoing management (see: www.vicforests.com.au).

Imported fibre

An increase in the availability of Australian sourced

wood fibre has decreased our demand for imported

fibre from 25% in 2007 to around 6% of wood fibre

throughout 2009 and 2010. Plantation wood fibre in the

form of pulp is sourced from Chile, Brazil, Canada and

New Zealand. The majority is bleached pine pulp for

which our mills do not have production capability.

Plantation

Plantation fibre consists of hardwood and softwood

fibre, with Radiata Pine (Pinus radiata) comprising

almost all of the softwood fibre. Hardwood plantation

fibre is predominantly Mountain Ash (Eucalyptus

regnans), which is the original plantation species

planted specifically for timber production purposes.

More recently, we have also purchased plantation grown

Blue Gum (Eucalyptus globulus), and Shining Gum

(Eucalyptus nitens).

Plantation fibre sources are located in Victoria’s

Gippsland region. Plantation fibre takes 10-40 years

to grow to be ready for harvest. Harvested coupes are

usually replanted within six to 18 months after harvest.

Australian Paper’s plantation fibre suppliers, HVP

Plantations, operate within a code of practice that is

legislated, audited, and certified by both the Australian

Forestry Standard and the FSC®.

Managed regrowth forest operations

Wood fibre is sourced from managed regrowth forestry

operations that are located in the Central Highlands

region of Victoria. These operations are managed

by VicForests, a Victorian state government owned

enterprise. VicForests supplies timber from state forests

that are sustainably managed for a range of social,

economic and environmental outcomes including

timber production.

Victoria has 7.8 million hectares of native forest. Almost

90% of these forests are either unavailable or unsuitable

for timber harvesting. 4.8 million hectares or 60% of

Victoria’s native forests are protected in National Parks

and Conservation Reserves.

Approximately 5500 hectares or 0.07% of Victoria’s

total native forest is sustainably harvested and regrown

each year.

AUSTRALIAN PAPER SUSTAINAbILITy REPoRT 2010

22 Environment

Our future fibre strategy

Australian Paper is committed to the sustainable

sourcing of wood fibre and pulp. However, we do face

a number of challenges in sourcing wood into the

future. Amongst these challenges is the need to address

a potential future wood volume shortfall, arising as

a consequence of fires, drought and the decline

in plantation investment scheme funding over the

last decade.

In 2011, Australian Paper will undertake a review of

its long-term strategy for fibre sourcing. The review

will examine all fibre supply options, with a focus on

sourcing additional plantation fibre. Australian Paper

will conduct studies into each fibre supply option. The

review will include analysis as to whether commercially

viable fibre could be sourced from other plantations to

supply our Maryvale mill.

To ensure that we properly assess and address the

environmental, economic and social sustainability

impacts of our business, a formal stakeholder

engagement program will be undertaken as part of the

Future Fibre Strategy. A broad range of stakeholders will

be consulted and invited to participate in the process to

ensure that we can achieve the best balanced outcomes.

Certification of imported fibre

Imported fibre is only purchased from reputable certified

fibre suppliers and is either PEFC or FSC® certified.

All fibre imported by Australian Paper undergoes a

rigorous risk assessment process, as part of ensuring

Chain of Custody certification requirements.

Recycled fibre

Australian Paper sources approximately 60,000 tonnes

of waste paper each year from municipal and private

contractors, comprising of commercial, industrial

and household waste. Recycled white paper, such as

office paper and household waste paper, is deinked

and pulped for use. Brown paper, such as cardboard

is also sourced.

Investing in more plantations

As part of the Maryvale pulp mill project, it was identified

that Australian Paper would require additional wood

resource as a replacement for imported pulp. The

solution was to partner with Macquarie Investments to

create a Managed Investment Scheme (MIS) local to the

Maryvale Mill as a source for the additional plantation

fibre required. However, in 2009, a number of other MIS

companies collapsed due to a downturn in investment

and the Macquarie MIS has not achieved targets due

to low confidence by investors in other Managed

Investment Schemes. Fire and drought have also had

an impact on plantation sources. This is regrettable and

has paved the way for our Future Fibre Strategy Review

scheduled for 2011.

Environment 23

wildlife and wetlands managementAustralian Paper recognises that we have a responsibility

to minimise the environmental impact of our mill

operations and our supply chain. Both the Australian

Forestry Standard and FSC® certification require

biodiversity values to be responsibly managed by our

wood suppliers. Our mills at Maryvale and Shoalhaven

also have a physical footprint and our impact on

biodiversity at these sites needs to be minimised.

In addition to the extensive reserve system, VicForests

undertake a range of management practices to further

safeguard the Leadbeater’s Possum habitat.

These include:

• Inspection of all areas prior to harvesting to detect

potential Leadbeater’s Possum habitat

• Where an area meets the criteria for Leadbeater’s

Possum habitat, an exclusion zone is put in place

and no timber harvesting operations are permitted

in that area

• When planning coupes, VicForests staff undertake an

initial desktop assessment using modelled data which

indicates the location of known Leadbeater’s Possum

habitat. This assessment is followed by a detailed

field survey in each area proposed for harvesting to

identify the presence of hollow bearing trees. The

assessment does not require the confirmed sighting

of Leadbeater’s Possum in the area. The fact that an

area meets the criteria as habitat is enough for full

protection from harvesting operations.

Pre-1900 Ash trees are also protected from harvesting

in the Central Highlands (see: www.vicforests.com.au).

Case Study: Leadbeater’s PossumThe Leadbeater’s Possum (Gymnobelideus leadbeateri)

is listed as an endangered species on the IUCN

(International Union for Conservation of Nature) Red list.

The species is also the subject of a Recovery Plan under

the Australian government’s Environment Protection

and Biodiversity Conservation Act.

The Leadbeater’s Possum lives within the Central

Highlands region, an area from which Australian Paper

sources managed regrowth wood through VicForests.

Under the Flora and Fauna Guarantee Act, Victoria’s

Department of Sustainability and Environment (DSE)

has an Action Statement for the Leadbeater’s Possum

which has been reviewed by an independent scientific

advisory committee.

As an additional initiative to protect the Leadbeater’s

population, 30,000 hectares of prime habitat were

included in an expansion to the existing reserve system

by the Victorian Government in June, 2008. This was

specifically designed to augment existing measures to

protect a viable population.

AUSTRALIAN PAPER SUSTAINAbILITy REPoRT 2010

24 Environment

The group has been making annual and/or biennial

visits to Australian Paper’s No. 2 pond/wetlands area

since 1977.

Monitoring work is being undertaken around a

billabong at the Maryvale mill wetlands area, as some

mercury contamination was found by Australian Paper

in 2010. Findings were reported to the Environment

Protection Authority (EPA). Routine testing is undertaken

with results reported back to the Community

Consultative Committee.

Water useFor use at our Maryvale mill, untreated water is

sourced from Moondarra Dam. Untreated water for our

Shoalhaven mill is sourced from the Shoalhaven River

for machinery use, and mains water is used for general

office use.

Recycling water at Maryvale millAustralian Paper’s Maryvale mill is the only customer

of the Gippsland Water Factory, a newly completed and

innovative waste water treatment and recycling facility.

It is believed the facility is the first treatment plant in

the world to combine anaerobic pre-treatment with

Wetlands managementAustralian Paper’s wetlands and No. 2 pond provide

an invaluable habitat for water birds, which flock to

the Latrobe Valley area. The pond is the final polishing

pond prior to water discharge into the Latrobe River.

In February 2010, local environment group the Latrobe

Valley Field Naturalists visited the area, spotting

57 species of water birds, including the elusive Australian

Spotted Crake. The Latrobe Valley Field Naturalists

will conduct site surveys every two years on an

ongoing basis.

Water is a major input to the paper making process

and we rely on local water supplies for both of our

manufacturing sites. Australian Paper is committed

to reducing reliance on valuable mains water and has

made huge inroads by adopting innovative ways to

save water.

2007

tota

l Ml w

ate

r

kl /

to

nn

e p

ulp

an

d p

ape

r27,000

26,000

25,000

24,000

23,000

22,000

water use

2008 2009 2010

22,889 23,110 24,338 24,416

maryvale pulp mill upgrade27.0

26.0

25.0

24.0

23.0

22.0

total water kl/t

conserving and managing our water

Environment 25

equipment. Pulp washing plays a key role in reducing

water consumption of the bleach plant, and significantly

reduces chemical consumption.

Water treatmentLower concentration waste streams are treated

onsite through a four stage treatment process prior

to discharge into the Latrobe River. The water quality

exceeds EPA licence requirements. High concentration

waste streams are discharged to local authority

Gippsland Water under a trade waste agreement.

Gippsland Water then treats this water at the Gippsland

Water Factory, where the water travels to another water

treatment facility at Dutson Downs. This treated water

stream is then discharged via ocean outfall.

Water used at Shoalhaven mill is treated and recycled

onsite through a treatment plant and is reused. Waste

water is additionally treated to a tertiary level before

being returned to the Shoalhaven River.

For 2010, our Biological Oxygen Demand (BOD) for our

mills was 0.098 kg per tonne of pulp and paper, while

our Total Suspended Solids (TSS) were 0.46 kg per tonne

of pulp and paper. Historical data from 2007-2009

has not been included as a different methodology of

measurement was used, so would provide an inaccurate

comparison of data.

Ongoing commitment to water efficiency programsAustralian Paper’s Maryvale mill continues to be involved

in EPA Victoria’s Environment and Resource Efficiency

Plan (EREP) program, and Gippsland Water’s Water

Management Action Plan (waterMAP) program.

membrane bioreactor processing to effectively treat

Kraft pulp mill wastewater, resulting in a significant

reduction in the load of existing conventional, municipal

treatment processes.

The Gippsland Water Factory, when fully operational,

will supply the Maryvale mill with eight megalitres

of recycled water per day for use in our industrial

processes. This will significantly reduce the volume

of mains water used.

As a result, an extra three billion litres (1,200 Olympic-

size swimming pools) of fresh water each year will be

available in Gippsland to contribute to environmental

flows, for drinking by residents, or to support further

growth in the area.

From May, 2011, the Gippsland Water Factory will

treat trade waste from the mill to reduce associated

odour. This will result in significantly less odour from

the current old fashioned system of pipes and open

channels which is used to carry municipal sewerage

from the Gippsland area to a water treatment facility

at Dutson Downs.

Reusing and reducing water use at Maryvale millAdditional work has been completed at the Maryvale

mill to efficiently transport water from pulp to paper

machine. A water transport loop has been created so

that water consumption is reduced by being reused in

the paper making process.

An additional water recycling system has been added

to the pulp machines to further reduce onsite water

consumption with the additional benefits of decreased

chemical and energy consumption.

Low levels of water consumption are also achieved

by using best practice technology pulp washing

AUSTRALIAN PAPER SUSTAINAbILITy REPoRT 2010

26 Environment

oxygen are manufactured onsite from air, and are used in

the bleaching process. Any residual ozone is destroyed

prior to being discharged from the process. The use of

air, oxygen and ozone, enable the plant to dramatically

reduce its environment footprint.

Our ECF-Lite bleach plant is ahead of world’s best

practice technology recommended by the Integrated

Pollution Prevention and Control Directive (IPPC).

In 2011, our goal is to achieve a 1% reduction in our

water use.

ECF-Lite bleaching plantAustralian Paper has taken a lead role in working towards

lessening our environment footprint. Since 2009, our

new ECF-Lite bleach plant and associated ozone plant

has provided a safer, more efficient and robust alternative

to traditional ECF (Elemental Chlorine Free) bleaching.

The new bleach plant has modern and efficient washers,

which also contributes to onsite water saving. Ozone and

Grid electricity from fossil fuels contributes only 7% of

total energy used at our Maryvale mill.

Our Maryvale mill is Victoria’s largest industrial generator

of base load renewable energy with our black liquor

production level now exceeding 500,000 tonnes per year.

Carbon emissions intensity has reduced by 21% since

2007 as a result of the Maryvale mill upgrade in 2008, as

our reliance on natural gas and electricity has reduced

through improved efficiency and the use of biofuels.

energy and greenhouse gas emissionsAustralian Paper is a major consumer of energy. Despite

this, our commitment to reducing our impact on the

environment is demonstrated by our move away from

fossil fuels toward renewable energy.

0.9

0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0

CO2-e emissions from energy sources

ton

ne

s C

O2

-e

pe

r to

nn

e o

f p

ulp

& p

ape

r

2007 2008 2009 2010

0.322

0.800 0.790 0.697 0.636

0.319 0.258 0.236

0.458 0.471 0.439 0.400

sources < 0.01 tonnes CO2-e per tonne of pulp & paper have not been

included in the graph and are provided below

2007 2008 2009 2010

black liquor 0.004 0.004 0.005 0.005

coal 0.033 0.002 0.000 0.000

other 0.004 0.004 0.002 0.002

note:

gas electricity

Maryvale pulp mill upgrade

Environment 27

to the National Carbon Offset Standard (NCOS) Carbon

Neutral program. Under NCOS, Australian Paper

products are certified as 100% carbon neutral, meaning

that the net emissions associated with our carbon

neutral products are equal to zero. This is achieved

through our emissions reduction programs and

offsetting remaining emissions through NCOS approved

carbon abatement providers.

Both Maryvale and Shoalhaven operations have an

audited program to measure emissions. Life Cycle

Inventory (LCI) studies have been completed at each

site on all Australian Paper products utilising a ‘cradle

to grave’ approach. The LCI was audited by Ernst and

Young and verified by the Federal government.

The studies take into account emissions generated from:

• Wood harvesting

• Pulp production and raw materials

• Paper production and raw materials

• Storage facilities

• Paper transport to customers

• Energy and fuel

• Solid waste, waste water treatment and water supply

• End of life disposal.

Carbon offsets are procured to account for carbon

emission associated with the life cycle of carbon neutral

products. For the NCOS reporting period January 2010

– June 2010, our Maryvale mill offset 100% of the 5607

tonnes of carbon emissions produced.

We estimate that the number of carbon neutral grade

offsets purchased for 2010 will more than double in

the future as the volume and grades of carbon neutral

products produced are expected to increase over time.

Australian Paper owned products are clearly labelled

with its certification to ensure compliance with the

Australian Competition and Consumer Commission’s

‘green marketing’ guidelines within the Competition and

Consumer Act (2010).

Overall energy consumption increased as a result of

the Maryvale pulp mill upgrade. This is largely due to

an increase in our consumption of renewable energy

derived from black liquor.

Energy consumption and carbon emissions at our

Shoalhaven mill have also decreased as a result of switching

our coal boiler to a gas boiler and upgrading associated

equipment in 2008. Our effluent treatment works were also

downsized, and are consequently more efficient.

Shoalhaven energy use highlights for 2009 to

2010 include:

• 34.9% decrease in total energy consumption against

baseline energy use

• 42.1% decrease in total CO2 emissions

We are well on track to support parent company Nippon

Paper Industries Co. Ltd.’s objective to reduce energy by

1% per year, companywide. Australian Paper has also set

a target for 2011 to reduce carbon emissions by 1%.

Carbon neutral programAustralian Paper is currently in transition from the

Federal government’s Greenhouse Friendly program

ton

ne

s

600,000

500,000

400,000

300,000

200,000

100,000

0

black liquor solids – biofuel production

2007 2008 2009 2010

489,339 457,395 534,661 552,252

Maryvale pulp mill upgrade

AUSTRALIAN PAPER SUSTAINAbILITy REPoRT 2010

28 Environment

waste and recyclingComposting our wasteSince 2007, solid waste produced from our Maryvale mill

has reduced from more than 100,000m³ per year to less

than 37,000m³ per year. 60,000m³ of wood fibre waste

alone has been diverted from landfill to composting.

In conjunction with the Maryvale pulp mill upgrade,

a major composting project was completed to

significantly reduce solid waste volumes to landfill.

The composting project involved delivery of solid

waste suitable for composting to a facility located at

the Maryvale site. The facility is operated by PineGro,

a separate commercial entity.

Compost used at PineGro is derived from tree bark and

from onsite clarifiers used for the treatment of waste

water and trade waste.

Our Shoalhaven mill piloted a project in the second half

of 2010, where recovered paper solids were converted

to compost. The project was so successful in reducing

waste to landfill that from March 2011, it will be adopted

as part of the mill’s continuous improvement plan

into waste reduction.

Australian Paper is committed to managing waste

responsibly. We recognise that by finding innovative

ways to reuse or recycle our waste, the added benefit

is that we will also reduce operating costs and

improve our environmental efficiencies. Good waste

management is imperative to an effective environmental

management system.

We have significantly reduced waste going to landfill

through initiatives to compost wood fibre waste from

our Maryvale mill through the PineGro initiative and

have introduced recycling programs throughout our

operations – from the mills to our office based sales

and marketing divisions.

Key waste streamsKey waste streams generated by Australian Paper are:

Maryvale Mill & Shoalhaven Mills

Waste paper from recycled paper production

Plastic

Pine wood fines and bark Paper

Eucalyptus wood fines and bark

Steel

Effluent Solids Recovery (ESR) sludge – fibre waste removed from wastewater

Recovered Paper solids (RPS)

Sewer and secondary sludge Mixed (landfill)

2007

cub

ic m

etr

es

(m³)

/ to

nn

e o

f p

ulp

an

d p

ape

r120,000

100,000

80,000

60,000

40,000

20,000

0

waste to landfill

2008 2009 2010

22,889 23,110 24,338 24,416

Maryvale pulp mill upgrade120

100

80

60

40

20

0

total m³/t

Environment 29

Salt cake, a by-product of sodium sulphate used in the

pulping process is recrystallised and used by the soap

and glass industry.

Our Shoalhaven mill has a mobile phone recycling

program, and large batteries (12 volt and larger) are

taken to the local council recycling centre. Since 2007,

waste paper recycling has increased from 290 tonnes

per year to over 507 tonnes per year. Shoalhaven Mill

also sends damaged external and internal pallets to a

local landscaping company for chipping and use on

gardens. Metal scraps collected from the shop floor are

collected for recycling, and a container take back system

by chemical suppliers is in place. The mill also donates

paper and cardboard to the community.

Both Maryvale and Shoalhaven mills also recycle

stretch film.

Our Australian Office operations collect ‘e-waste’ such

as computers and printers that have reached the end

of their useful life. The equipment is collected by an

external vendor for reuse and recycling. E-waste is

also collected at Australian Paper Maryvale mill and is

recycled by the site waste contractor, diverting valuable

materials from landfill.

As part of Australian Office’s Environmental

Improvement Plan, papers, cardboard, plastic, inks and

adhesives are collected from factory and administrative

areas, and collected for recycling.

Over the next 12 months, Australian Paper will

investigate battery recycling programs for the Maryvale

mill, and continuously look for innovative, alternative

uses for waste across our operations.

Recycling program2010 saw the introduction of an onsite recycling

program rolled out to the administrative areas of

Maryvale mill. Four brightly coloured bins collect glass,

plastic and aluminium, paper, steel and general waste

for landfill.

2011 will see the introduction of bins to the Maryvale

machine floor, so that metal waste traditionally destined

for landfill will be diverted and recycled. The recycling

initiative includes recycling of plastic, aluminium, paper,

stainless steel and co-mingled metals. Bins will also be

introduced to the canteen area and in kitchens across

the site. Senior management staff see this as a significant

behaviour change program, with employees taking

on the responsibility of emptying the bins, rather than

cleaning staff.

AUSTRALIAN PAPER SUSTAINAbILITy REPoRT 2010

30 Environment

air emissionsThe paper manufacturing process commonly results

in the release of emissions into the air, some of which

may have associated non-hazardous odours that impact

the local communities in which we operate. Australian

Paper has strict controls in place to minimise emissions

into the air, to ensure compliance with Environmental

Protection Agency (EPA) regulations in Victoria and the

Office of Environment and Heritage in New South Wales.

In 2010, our Maryvale mill achieved a compliance index

result of 98.5% and our Shoalhaven Mill achieved 100%

compliance.

All information is reported to the National Pollutant

Inventory, which is managed by the Federal

government’s Department of Sustainability,

Environment, Water, Population and Communities.

Odour complaintsAustralian Paper investigates all odour complaints

and all are reported annually. Since 2007, we have

had a significant reduction in odour complaints from

communities living near our Maryvale mill operations

due to the mill upgrade. A rise in complaints in 2008 was

the result of ageing equipment which was at the end of

life, negatively impacting on mill odour performance.

The pulp mill upgrade at the end of 2008, replaced this

equipment, resulting in significantly less complaints in

2009 and 2010.

The ECF-Lite technology used also minimises air

emissions. Australian Paper has implemented a

monitoring and reporting plan that covers all licensed

site emissions and testing.

Odour complaints from our Shoalhaven mill are

negligible, with only one complaint received from

2009 to 2010.

100

80

60

40

20

0

external odour complaints

2007 2008 2009 2010

32 73 20 29

com

pla

ints

per

yea

r Maryvale pulp mill upgrade

Peopleour people –

the fibre of our business

looking forward

working with the community

32 People

Our workforce is comprised primarily of full time

employees who make up 95.5% of the workforce.

Casual employees make up around 4%, and part-time

employees, less than 1%.

Service staff account for the majority of our workforce

comprising 66%. Most service staff are male, reflecting a

common trend in the manufacturing sector. Professional

staff, sales staff, administrative staff, managers and senior

executives make up the remainder of staff position

proportions.

SafetyThe safety of our employees is our top priority across

Australian Paper operations. Many of our employees

across our manufacturing, packaging and distribution

sites work with complex machinery in busy environments,

so stringent adherence to our occupational health and

safety strategy is essential. Our ‘Zero Harm to our People’

policy has been adopted across Australian Paper.

“Australian Paper employees

are key to our success. We are

committed to engaging and

developing our employees at

all levels in the organisation

and introducing global best

practices to everything we do.

This has been made possible

with the support of the Nippon

Paper Group.”

WorkforceWe recognise that by looking after our employees, our

business operates more successfully across the board.

Our workforce in Australia includes those from our head

office in Melbourne, our mill operations in Maryvale

and Shoalhaven, the Australian Office division, Nippon

Paper Inc., and our Print and Pack and Paper Products

Marketing (PPM) subsidiaries. In 2010, our employees

numbered around 1300 across these operations. Males

make up 78% of the total workforce and females 22%.

our people – the fibre of our business

400

350

300

250

200

150

100

50

0

900

800

700

600

500

400

300

200

100

0

position type by gender

no

. of

em

plo

yee

s

senior executives

managers professional administration sales staff

service staff

10 24 308 29 91 928

62

44

161

10

2

22 246 29 47 767

male female

• Managers include senior, middle and line managers.

• Professional staff includes engineers, IT, para, logistics, accounting and finance

• Administration staff includes personal assistance, receptionists, clerical and office staff

• Sales staff includes sales and marketing, customer service representatives and sales representatives

• Service staff includes distribution, shop floor, warehouse, skilled workers and specialists. Note: different graph scale used for service staff.

note:

no

. of

em

plo

yee

s

(se

rvic

e st

aff o

nly

)

People 33

Our safety initiatives

Australian Paper has established a national action

plan to establish occupational health and safety (OHS)

learning onsite, and reports are submitted at six monthly

intervals to the CEO on how the operations are tracking

against the plan. The action plan is shared with unions

and industry to share our best practice knowledge with

interested parties.

Site policy and procedures across all of our operations

cover the following areas to ensure employee safety:

• Provision of personal protective equipment

• Joint management/employee health and

safety committees

• Participation of worker representatives in health and

safety inspections, audits and accident investigations

• Training and education

• Complaints mechanisms

• Right to refuse unsafe work

• Periodic site inspections

While significant resources are being invested to improve

our systems of work and to upgrade equipment, we do

recognise that variability in safety performance can often

be attributed to behavioural factors. Thus, sustainable

behavioural change is key to our long term OHS strategy

and is the focus of many of our training programs.

In 2010, the Shoalhaven mill management team has:

• Initiated a site wide forklift driving refresher course

• Mandated high visibility clothing be worn at all times

onsite, regardless of the time of day

• Constructed walkways and barriers to separate

machinery from people

• Reviewed emergency response plans and

simplified procedures

• Reorganised the site to bring raw materials closer to

transportation vehicle

• Reviewed training documentation and core

training competencies.

Our safety performance

The two key indicators of our safety performance are

Lost Time Injury Frequency Rate (LTIFR) and Medically

Treated Injury Frequency Rates (MTIFR). These key

performance indicators are measured and reported

monthly on a 12 month rolling basis.

Since 2007 there has been a steady improvement in

Australian Paper’s group safety results. However, despite

improvements in our overall safety performance in

2010 from 2009, we were devastated by a fatality at our

Shoalhaven mill in 2010. A longstanding and respected

plumbing contractor was struck by a moving forklift as

he was walking down a road between two buildings.

The incident has been fully investigated internally

and WorkCover NSW has conducted an investigation

into the incident as is standard practice.

30

25

20

15

10

5

0

lTIfr & MTIfr

2007 2008 2009 2010

30.8 26.5 25.1 19.3

inju

ry f

req

ue

ncy

mtifr ltifr

24.6

6.2

20.9

5.6

18.6

6.5

13.4

5.9

AUSTRALIAN PAPER SUSTAINAbILITy REPoRT 2010

34 People

Employee benefitsAustralian Paper employees benefit from supportive

work conditions, comprehensive health and wellbeing

initiatives, and training programs that cover all aspects

of the business.

We have an internal succession planning process that

is used to identify, develop and look for promotional

opportunities for our best talent. In 2010, many

Maryvale employees were promoted in preparation for

the retirement of key people. During the same period,

many vacancies were filled by internal promotion at our

Australian Office division.

Australian Paper has a keen focus on flexibility in

relation to employees balancing work and family

responsibilities. Flexibility around start and finish times,

part time work, return to work after parental leave,

and working from home opportunities are all part of

the way we ensure that work life balance is integral to

working life at Australian Paper. In addition to Federal

government maternity leave, employees are entitled

to an additional 12 weeks paid maternity leave, or one

week paternity leave.

For Australian Paper Enterprise Agreement covered

employees, remuneration is determined by negotiation,

which is influenced by benchmarking against like

sectors. Our staff employee remuneration is graded

against the CED job evaluation process, and is also

influenced by remuneration specialist surveys and

reviews. An annual salary review process is in place

in which salary survey and economic data is taken

into consideration.

In the event of workforce redundancies, our objective is

to find the employee suitable alternative employment.

Alternatively, retraining, career transition service and

job placement services are available. Australian Paper

also provides counselling to help those in workplace

transition. Severance pay is provided and is based on

years of service.

Joint management and worker health and safety committees

A number of committees and groups exist to ensure the

safety of Australian Paper employees and contractors

at work:

• The Safety, Health and Wellness (SHAW) committee

at our Maryvale mill, comprising of management and

employee representatives, meets monthly to ensure

employee safety plans are on track, and our health

and safety representative presents at an annual

breakfast on the latest issues

• Level 2 Area Safety Cells at our Maryvale mill, comprised

of production, mechanical, electrical, and health and

safety representatives, along with production and

maintenance management, meet monthly

• Level 1 Safety Cells at our Maryvale mill – designated

work group (DWG) based, comprise all members of

DWG and the management representative. Every

Australian Paper employee has the opportunity to meet

formally with management via the Level 1 Safety Cells

• The OHS committee at Shoalhaven mill meets

approximately every four weeks to review the site

safety systems.

Agreements with unions

Australian Paper has formal agreements with various

trade unions around ensuring the best health and

safety conditions for our employees. Agreements with

unions cover health and safety, dispute resolution and

grievance procedures.

We have agreements with the following unions:

• Construction, Forestry, Mining and Energy Union

(CFMEU) — 2010–2012 agreement

• Australian Manufacturing Workers Union (AMWU)

— 2009–2013 agreement

• Communications, Electrical and Plumbing Union

(CEPU) — 2009–2013 agreement, and

• National Union of Workers (NUW)

— 2009–2013 agreement.

People 35

Licensed employees such as electrical and

instrumentation technicians, and power plant operators

are supported with external training to ensure license

compliance. In 2009 and 2010, a number of training

programs in relation to pulping and paper technical

training has extended across operations to include

process engineers and asset managers.

Our Maryvale mill has implemented two programs that

focus on behavioural safety: ‘Workers Adopting Safe

Practices (WASP)’ and ‘Take 5 Steps’, with the objective

of reducing workplace injuries.

Australian Paper’s Australian Office division conducts a

wide range of training from management development

to factory floor skills enhancement, and a number of

professional employees have been supported to obtain

post graduate qualifications such as master programs.

Other specialist employees are given the opportunity

to attend seminars and conferences.

Employee trainingAustralian Paper has a comprehensive training program

providing both on and offsite programs across our

operations including Maryvale and Shoalhaven mills

and at our marketing, packing and distribution centre

in Melbourne. In 2009 and 2010 respectively, $972 per

employee was invested in training.

On the job training for Australian Paper production,

manufacturing, and warehousing operators include:

• Site induction

• Hazard identification, control and risk assessment

• Job Safety Analysis (for non-regular jobs)

• Nippon Paper Inc (NPI) best practice sharing

• Permit to work

• Emergency management training

• First Aid Training and CPR

• Take Five Steps

• Toolbox safety training

• Manual Handling

• Standard Operating Procedures (SOP)

• Equal Employment Opportunity (EEO)

• Job specific training

undertaken. Employees are targeted with completing

50 observations. Three of our Finishing and Converting

operators have achieved this target and received a

‘WASP Observer: 50 Observations’ high visibility t-shirt

as a prize. As a result of the program, we’ve achieved

significant reductions in overall injury rate. ‘Observers’

have completed a total of 946 observations. 1,328 tasks

have been observed with 686 (almost 52%) of tasks

identified as ‘at risk’ behaviour.

Workers adopting safe

practices (WASP)

Australian Paper’s WASP program has been running

since 2009 in the Finishing and Converting area

of the Maryvale site. The aim of the program is to

pair up employees as ‘buddies’ so that workers

can observe any ‘at risk’ behaviour as tasks are

AUSTRALIAN PAPER SUSTAINAbILITy REPoRT 2010

36 People

Case study: toolbox safety training

“At our Maryvale site, we needed to work out how

could we train, inform, and reinforce knowledge with

our 1000 strong staff, given that staff not only work

during regular office hours, but also 24 hour shift work.

We introduced our new online Toolbox training and

information sessions which cover a variety of safety

training modules. For example, if one of our employees

sustained a twinge in their back while carrying out a

task, they would report to our First Aid centre. The injury

is recorded and the employee is deemed fit to continue

on with duties. Before our employee returns to the task,

they can choose to complete an online Toolbox training

and information session.

In this example, employees could log into an online

training session that shows the basic handling

techniques to avoid musculoskeletal injury, reinforcing

previous face to face training. The Toolbox session is

recorded along with the employee name, time and

date of completion and is automatically recorded in the

employee training database. The employee can also

choose to print out the material to assist with their task

onsite.

The Toolbox has really helped us, especially with

reinforcement of safety issues, and recording of

employee training.”

Jenine Smith, Safety, Health and Environment Manager.

Take five steps

It’s easy to keep on doing everyday tasks in an unsafe

manner just to get the job done. We think “I should do

this task differently”, but then we don’t. With the Take

Five Steps program at Maryvale mill, we introduced

simple behavioural steps to help employees avoid

carrying out unsafe practices or entering unsafe areas.

We replaced “I should” with “I will”. The outcome of the

program is that employees feel empowered by being in

charge of their own safety while following procedures.

Case study

The Take Five Steps team was informed by area

personnel that while waiting for gearbox valves to be

fixed, operators struggle to open some valves because of

a lack of large strong arms equipment, resulting in strain

injuries. Ideas were brainstormed to solve the problem.

The solution was to brightly paint and place twelve

strong arms around the area for easy access.

1. Stop, Step Back, Observe

2. Think Through the Task

3. Identify Hazards

4. Communicate

5. Safely Complete Task

People 37

Improving performance through TPMOur Shoalhaven mill piloted a Total Productive

Maintenance (TPM) equipment improvement strategy as

part of a continuous improvement process in 2008 (also

known as lean manufacturing). The aim of the strategy

is to improve on work area management, operator

equipment management, and process performance.

The program was introduced in recognition that

employee frustrations and dissatisfaction can run high if

equipment and processes aren’t working optimally. The

program has continued throughout 2010.

A key outcome from using this approach is that

collective skills are improved to reduce frustration and

improve workplace safety by being able to systemically

identify and rectify problems at the source.

Other methodologies include NPI best practice

sharing, R&D support, root cause investigation and

debottlenecking through capital investment.

Industry recognition

Our Maryvale mill received the 2010 Victorian

Association of Forest Industries’ Occupational Health

and Safety Award for our efforts to improve working

conditions, and for our innovative ways to train staff in

safety issues.

Also recognising Maryvale mills’ commitment to the

safety of our employees, Australian Paper won the KIDS

Foundation’s inaugural IF (Injury Free) Day Award, with

our winning educational video clip featuring the Injury

Free (IF) Day mascot ‘SeeMore Safety’ and the Maryvale

Mill Injury Free elephant.

AUSTRALIAN PAPER SUSTAINAbILITy REPoRT 2010

38 People

People 39

looking forwardMaryvaleThe Zero Harm OHS Strategic Plan 2011-2015 for our

Maryvale operations has been developed in consultation

with stakeholders in our safety, health and environment

department, the Maryvale Lead Team, and Australian

Paper’s CEO. The plan focuses on management control

and improvement of behavioural safety to ensure that

systems, equipment and behaviours deliver continuous

improvement in safety outcomes.

The plan outlines comprehensive initiatives to

significantly reduce work place related injuries

at Maryvale, with the ultimate aim of eliminating

workplace injuries. This strategy will allow us to track

our OHS progress and will hold us accountable for

achieving long term positive outcomes.

ShoalhavenIn 2011, Shoalhaven operations will:

• Achieve separation of people and mobile equipment

where practicable

• Implement a permit to work system

• Review working at heights and complete upgrades to

the paper machine

• Complete safe lifting upgrades

• Complete a joint investigation action plan

• Implement a cardinal rules, fair treatment model and

safety charter

• Implement a drug and alcohol policy.

Australian OfficeIn 2011, Australian Office will:

• Achieve Work Cover Self Insurance

• Implement further risk controls

• Reduce noise on machines

• Focus on employee development

• Continue the 5S lean manufacturing program

• Prepare for and implement new national OHS

legislation including compliance codes

• Implement individual site training plans.

“In 2011, Australian Paper

will continue to focus on

maintaining best practice

environmental processes

and improving the safety

of our employees”

Jim Henneberry, Chief Executive Officer

AUSTRALIAN PAPER SUSTAINAbILITy REPoRT 2010

40 People

Health and wellbeingDemonstrating Australian Paper’s commitment to

the health and wellbeing of our employees, our

comprehensive health and wellness program benefits

many of our employees. We offer our employees

complementary workplace health checks, annual flu

vaccinations, physiotherapy sessions and exercise

programs, including boot camp and gym sessions

at our Maryvale and Australian Office operations.

Australian Office has access to subsidised gym

sessions at the local gym.

As part of our health and wellness program, we

encourage employees to be involved in National Walk

to Work Day.

General Work Health checks in 2010 showed that the

highest health risks for Australian Paper employees

were diabetes, and heart disease.

Our Australian Office division will hold seminars in

conjunction with WorkSafe in 2011, around programs

on diabetes and reducing the incidence of smoking

onsite through the QUIT stop smoking campaign.

Australian Office will also hold melanoma skin checks

for employees.

Australian Paper is also part of the Global Corporate

Challenge, where employees are encouraged

to participate in a 10,000 steps a day walking

health initiative.

General health and wellbeing information is

communicated to employees through our intranet.

Information focuses on health tips for office workers,

exercise tips, nutrition, safety at home, and work life

balance, providing invaluable information to employees

and their families. Topics included in our ‘Tips for a

Healthy Lifestyle’ cover issues such as blood pressure,

back care, body weight, cholesterol, diabetes, heart

health and shift work fatigue.

People 41

working with the community

Transition to climate change programIn partnership with Monash University, Australian

Paper has managed the ‘Transition to Climate

Change’ program for third year civil engineering and

environmental engineering students from the university.

The program provides a link between Monash University

and Australian Paper and provides students with the

opportunity to develop Australian Paper’s supporting

systems and data to prepare the Maryvale mill for the

eventual impact of Climate Change Legislation. The

program has been operating since 2009. Students are

remunerated for their work.

KIDS foundationThrough Maryvale mill’s ‘Positive Safety’ indicator

program, we donate funds to the KIDS Foundation if we

achieve our onsite targets. The KIDS Foundation is a not-

for-profit health promotion charity that supports children

and their families who have endured trauma, horrific

burns and other injuries that have changed their lives.

Our average donation to the foundation is around $5000

per quarter, although we have donated up to $10,000

in previous years. The KIDS Foundation uses some of

Australian Paper’s donations to fund and deliver safety

skills to children from preschool in Traralgon through

their SeeMore Safety program.

The SeeMore Safety program is an initiative designed to

develop safety intelligence in children and to teach them

to take responsibility for their own and their friends’ safety.

Australian Paper takes an active role in the communities

in which we operate through proactive engagement.

We are a principle employer in the Gippsland and

Shoalhaven regions, supporting each respective local

economy and contributing to the social fabric within.

Australian Paper understands that in order to operate

within these communities, we must minimise any

potential negative impacts of our operations. We do this

by mitigating our environmental impacts where possible

and monitoring our environmental performance.

We operate and communicate transparently within

these communities.

Community consultationOur Maryvale mill participates voluntarily in a

Community Consultative Committee (CCC). The CCC

was originally part of EPA requirements, but was so

successful that we decided to continue to include this

in our community engagement process.

Local residents, businesses, larger organisations and

authorities such as the EPA, Gippsland Water, and

Latrobe Council, are members of the group, which

meets three times per year.

The committee reviews Australian Paper’s strategic

environmental plan and provides feedback. Longer

term activities include discussion about Australian

Paper’s impact on the health of the Latrobe River and

water conservation.

Community engagement workshops are also

held to ensure complaints handling responses are

managed efficiently.

AUSTRALIAN PAPER SUSTAINAbILITy REPoRT 2010

42 People

Maryvale CFA Fire BrigadeThe Maryvale CFA Fire Brigade is located at our

Maryvale Mill and actively combats fires in the local

area. Australian Paper provides financial support to the

Maryvale CFA. The Brigade regularly attends call outs

in the local area and in 2009 helped fight the Black

Saturday Bushfires.

Youth employmentOpportunities for youth employment provided by

Australian Paper helps young people stay close to their

family, friends and communities. In 2010, Australian

Paper helped 22 apprentices from regional areas learn

new skills and gain professional qualifications in a wide

range of trades.

Doxa Youth FoundationDoxa Youth Foundation creates opportunities for

disadvantaged young people. Australian Paper helps

the Doxa Cadetship Program assist young people

to effectively navigate their courses and complete

their tertiary studies. Operating for 18 years, the Doxa

Cadetship Program links students from disadvantaged

backgrounds with Australian Paper. Our sponsorship

provides eight weeks work experience, financial support

and a mentor who oversees the cadet’s development

within the company.

Breast Cancer Network AustraliaAustralian Paper supports Breast Cancer Network

Australia with the supply of paper for their quarterly

magazine publications.

Economic

Our economic impact

44 Economic

An important finding of the modelling used is that the

regional economies in which we operate would appear

to never recover from the withdrawal of Australian

Paper, with employment, real wages, consumption,

investment and GDP all permanently lower, even after

a long transition period.

Key findings of the research showed that should the

Maryvale mill close:

• GDP in the region would decrease by 2.2%,

or $324 million

• Household spending would decrease by 2.5%

or $178 million

• Investment would decrease by 1.5% or $69 million

• Real wages would decrease by 1.3%

• 1028 long term jobs would be lost.

Modelling also indicates losses in the Latrobe Valley

in the wholesale and retail trades, in the printing,

publishing and media area, in transport, and in forestry.

Should the Shoalhaven mill close:

• GDP in the region would decrease by 0.7%

or $37 million

• Household spending would decrease by 0.7%

or $25 million

• Investment would decrease by 0.8% or $13 million

• Real wages would decrease by 0.4%

• 158 long term jobs would be lost.

**NB – the figures above relate to Australian Paper 2008

employment levels, however, were verified to be true as

part of the 2009 limited assurance.

Modelling also indicates losses in the Shoalhaven region

in the wholesale and retail trades, in construction,

in the printing, publishing and media area, transport,

and hotels and cafes.

Australian Paper contributed

over half a billion dollars to

the Australian economy this

year. By choosing Australian

Paper products over imported,

often uncertified paper, we can

make our Australian economy

even stronger.

Australian Paper has a considerable impact on the

Australian economy and in the regional communities

in which we operate. In 2010, our direct contribution

to the Australian economy was around $517 million –

or $518 per tonne of pulp and paper produced.

Around $391 million of this total figure directly

contributed to the regional communities in which we

operate – or, $392 per tonne of pulp and paper produced.

In 2008, Australian Paper conducted a study into the

direct and indirect impacts of our business at our

regional sites. At the time of writing, Australian Paper

was owned by PaperlinX, and mills also included the

now decommissioned Burnie and Wesley Vale PaperlinX

mills, in addition to the Australian Paper Maryvale and

Shoalhaven operations. The TERM model, owned by

Monash University’s Centre of Public Policy was used

to extrapolate this data.

our economic impact

Economic 45

Our economic performanceDescription fY10 $’000

$’000

Direct economic value generated

a) Revenues Net sales (gross sales from papers less returns, discounts & rebates)

876,260

Economic value distributed

b) Operating costs Payments to external suppliers for materials, facilities and services, royalties, contractors, employee training costs and OHS costs

(720,276)

c) Employee wages and benefits Outflows related to employee wages, welfare, benefits, FBT excluding contractors

(131,678)

d) Payments to providers of funds Payments of interest to loan providers (6,623)

e) Payments to government Income taxes exclude deferred taxes (719)

f) Community investments Voluntary donations and contributions to educational programs

(233)

Total Economic value distributed (859,529)

Economic Value Retained Direct economic value generated less Economic value distributed

16,731

Local employmentAustralian Paper’s Maryvale mill is the largest single

employer in the Gippsland region, with 887 employees.

We contribute to a major part of the region’s economic

base. Where possible, we look to fill as many jobs as

possible from the local talent pool to support the local

community. Around four out of 10 senior management

roles in the Maryvale Leadership Team are filled by long

term local employees.

Local procurement95% of procurement is spent on Australian suppliers –

usually sourced from the regions in which we operate.

92% of our fibre is sourced from Victoria, Australia.

AUSTRALIAN PAPER SUSTAINAbILITy REPoRT 2010

GRI content index 47

full or partial

reportingPage

Number

Economic Indicators

EC1 Direct economic value generated and distributed

Full 44

EC6 Policy, practices, and proportion of spending on locally-based suppliers

Full 45

EC7 Procedures for local hiring including senior management

Full 45

EC9 Significant indirect economic impacts

Full 44-45

Environmental Indicators

EN1 Materials used by weight or volume Full 18-19

EN2 Percentage of recycled input materials

Full 19

EN5 Energy saved due to conservation and efficiency improvements.

Full 26-27

EN8 Total water withdrawal by source Full 24

EN11 Land with activities in areas of high biodiversity value

Full 21

EN13 Habitats protected or restored Full 21

EN14 Strategies for managing impacts on biodiversity

Full 23

EN15 IUCN Red List species in areas affected by operations

Full 23

EN16 Total direct and indirect greenhouse gas emissions by weight

Full 26

EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved

Full 26-27

EN21 Total water discharge by quality and destination

Full 24-25

EN22 Total weight of waste by type and disposal method

Full 28-29

EN23 Total number and volume of significant spills

Full 24

Labour Indicators

LA1 Total workforce by employment type and contract, region and gender

Partial 32

LA6 Total workforce represented in formal joint management-worker health and safety

Full 34

LA7 Rates of injury (LTIFR & MTIFR) and work-related fatalities

Partial 33

LA8 Education, training, counselling, prevention, and risk-control

Full 35

LA11 Programs for skills management and lifelong learning of employees

Full 34

Society Indicators

SO1 Impact of operations on local communities

Full 41

Product Responsibility Indicators

PR3 Type of product and service information required

Full 20-23

full or partial

reportingPage

Number

Strategy and Analysis

1.1 Statement from the CEO Full 2-4

Organisational Profile

2.1 Name of the organisation Full 1

2.2 Primary brands, products, and/or services

Full 10

2.3 Operational structure Full 9

2.4 Location of headquarters Full 9

2.5 Countries located Full 8

2.6 Nature of ownership and legal form Full 9

2.7 Markets served Full 9

2.8 Scale of the organisation. Full 9,32,45

2.9 Significant changes during the reporting period

Full 5

2.10 Awards received in the reporting period

Full 16

Report Parameters

3.1 Reporting period Full 5

3.2 Date of most recent previous report Full 3,5

3.3 Reporting cycle Full 5

3.4 Contact details Full 49

3.5 Process for defining report content Full 6

3.6 Boundary of the report Full 6

3.7 Limitations on the scope or boundary of the report

Full 6

3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities

Full 6

3.10 Re-statements of information provided in earlier reports

Full 6

3.11 Significant changes from previous reporting periods

Full 6

3.12 Standard Disclosures table Full 47

Governance, Commitments and Engagement

4.1 Governance structure Full 9

4.2 Chair of the highest governance body

Full 9

4.3 Members of the highest governance body

Full 9

4.4 Mechanisms for shareholders and employees to provide recommendations to the highest governance body

Full 9

4.14 Stakeholder groups engaged by the organisation

Full 6

4.15 Basis for identification and selection of stakeholders

Full 6

GRI content index

AUSTRALIAN PAPER SUSTAINAbILITy REPoRT 2010

48 GRI application level check

GRI application level check

production notesPaper

This report has been printed on Saxton Bright White Vellum:

text 140gsm/covers 300gsm. Saxton is made from elemental

chlorine free pulp sourced from responsible sources.

It is manufactured by an ISO 14001 certified mill. Saxton

is Certified Carbon Neutral by the Department of Climate

Change & Energy Efficiency’s National Carbon Offset

Standard (NCOS), an Australian Government Initiative.

Printing

Printed with vegetable based inks by Mystique. Mystique

is ISO 14001 Certified and Certified Carbon Neutral by the

Australian Government’s NCOS Standard – as such, this

report in it’s entirety, including all printing processes and

embellishments, is carbon neutral.

Design

Design, production and typesetting by OMG! Creative.

OMG! Creative have reduced carbon emissions by adopting an

environmental policy that was created out of the Greenhouse

Challenge Plus program. They are audited by Equilibrium,

use 100% renewable energy and have offset emissions which

cannot be eliminated through Climate Positive.

Finishing

This report’s binding has been singer sewn with unbleached

cotton, a process which uses no glues or solvents and enables

the pages to be more easily separated for recycling. The cover

has been embellished with a multi-level full relief emboss, a

mechanical technique which adds no extra inks, coatings or

foils into the recycling process.

Global Reporting Initiative (GRI)

Advisory and Copywriting

GrI advisory and copywriting by ZOOiD – GrI Certified

Training Partner and Organisational Stakeholder.

contact details

Australian Paper

307 Ferntree Gully Road

Mt Waverley, Vic, 3149

Telephone: 03 8540 2300

email: [email protected]

web: www.australianpaper.com.au

Contact person:

Shaun Scallan

GM, Corporate Social Responsibility

Australian Paper

Australian Paper usesNational CarbonOffset Standardcertified SaxtonCarbon Neutral paper

An Australian Government Initiative