2012 - packaging | solutions...engagement with stakeholders we consider open and transparent...
TRANSCRIPT
sustainable development RepoRt 2012
CONTENTS
2 SmurfitKappaataGlance
4 PackagingExpertise
5 Highlights
6 LetterfromourCEO
8 CorporateGovernance
10 EngagementwithStakeholders
12 Materiality
13 Strategy
15 OurCommitmentandApproach toSustainableDevelopment
17 KeyRisksandChallenges
20 SustainableDevelopment Commitments
26 Environment
44 SocialDevelopment
66 SustainabilityinourBusiness
76 DataTables
85 AbouttheReport
86 GRIGuidelines
91 BusinessintheCommunityIreland
92 UnitedNationsGlobalCompact
93 IndependentAssuranceReport
94 Glossary
ThefirstsectionoftheReportsummarises ourpolicyonengagementwithstakeholders,materiality,ouroverallapproachtosustainability,andourlongtermcommitments.ThisisthenfollowedbythreemajorsectionscoveringEnvironment,SocialDevelopmentandSustainabilityinourBusiness.TheReportconcludeswithadetailedinformationsectionandaglossary oftechnicalterms.InpreparingthisReportwehavefollowedtheGlobalReportingInitiative(GRI)3.1guidelines.
Simone Angelini from Smurfit Kappa Vignate, Italy.Cover image: Volker Funk (l.) and Mirja Thimm, both working at our Brühl plant in Germany.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT20122
MexicoEnergy and CO2 Cerro Gordo paper mill cuts GHG emissions by using less steam
ColombiaCommunity Involvement 50th Anniversary Fundación Smurfit Cartón de Colombia supporting local communities
ArgentinaWater Treatment A new water treatment plant commissioned in our Bernal paper mill
VenezuelaCommunity InvolvementOur forestry workers volunteer as local fire brigade
SMURfITKAPPAATAGLANCETotally focused on packaging: Withsalesin2012ofover€7.3billion,SmurfitKappaisoneofthelargestintegratedmanufacturersofpaper-basedpackagingproducts.followingtheacquisitionofOrangeCountyContainerGroupinlate2012,SmurfitKappanowhas348facilitiesin32countriesinEuropeandNorthandSouthAmerica(the“Americas”),wheretheGroupalsoownsandmanagesforests. Itmanufactures,distributesandsellscontainerboard,corrugatedcontainersandotherpaper-basedpackagingproductsandmaterialssuchassolidboard,sackpaperandbag-in-box.
SmurfitKappaisfullydedicatedtothesustainablesupplyofpaper-basedpackagingsolutionsandhasnoownershipofsignificantbusinessesoutsidethisfieldofexpertise.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012 3SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012
Russia Supplier commitment Sustainability an important ingredient in Russian partnership
Germany Training and Development Over 1,100 employees have now participated in the German sales training programme
A wORld Of SuSTAiNABiliTy
BelgiumProduct Innovation The smart dashboard box
SpainHealth and Safety Mengibar paper mill initiated an extensive programme to raise awareness on health and safety at home
ItalyCommunity Involvement fundraising campaign at Panaro
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PACKAGINGExPERTISETheimagebelowillustratestheproductlifecyclestartingwithvirginandrecoveredfibresbeingprocessedthroughthemillstobecomepaperandboard;thenontotheboxconvertingplantswheretheybecomepackaging;thenenteringthesupplychaintotheeventualuser.Therecycling processbeginswhentheusedpackagingiscollected, sortedandthenreturnedtothemills forreprocessing.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012 5SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012
HiGHliGHTSCHAIn OF CUSTODy CERTIFICATIOnEurope.february2013successfulcompletionofathreeyearfSC®and/orPEfCcertificationprogramme forEuropeanconvertingoperationsreachingourobjectivetocertifyallconvertingplantsinEuropefor whichacertificationisrelevant.
Latin America. AllMexicanoperationsreceivedChainofCustodycertificationsunderfSC;thesamecertificationswerealsoreceivedforourintegratedconvertingoperationsinArgentina.
Certified Packaging. ThecompletionoftheEuropeancertificationprogramme(seeabove)alsoledtoover 90%ofallGroupconvertingoperationsbeingcertifiedtherebyachievingtheGroup’sfirstlongtermcommitmentonsustainabilitytwoyearsaheadofschedule.
CO2 REDUCTIOn Year-on-year,absolutefossilCO2 emissionsforthetotalGroupwerereducedby1.8%. OurglobalmillsystemreduceditsfossilCO2 emissionsby3.1%pertonneofpaperandboardproduced.
COD DISCHARGE REDUCTIOn Year-on-year,absoluteCODdischargesforthetotalGroupwerereducedby1.7%.Globally,ourmillsystemreduceditsCODdischargesby4.7%pertonneofpaperandboardproduced.
InVESTMEnTS In THE EnVIROnMEnTCO2 Reduction.
nInstallationofanewshoepressinourCerroGordopapermill,MexicoCityinJanuary2012.
nRebuildofbiomassboilerinourNavarrapapermillinSpainandsubsequentstart-upinSeptember2012.
nCommissioningofanewCHPinstallationinourBarranquillapapermillinColombiainOctober2012.
nCompletionofanewlimekilninourCalipapermillinColombiainMarch2013.
COD Water Discharges.CommissioningofanewwatertreatmentplantinourBernalpapermillin ArgentinainMay2012.
CODE OF BUSInESS COnDUCT Revisedcodeapprovedandawarenesscampaigninitiated.
SUSTAInABlE PACKAGInG PackExperttoolextendedwithenvironmentalparameters,enablingcustomerstomeasureandcomparetheenvironmentalimpactsoftheirsupplychainmanagement.
ACqUISITIOnS OrangeCountyContainerGroup(“OCCG”)wasacquiredinDecember2012,markingourfirstsizeableacquisitionsinceSmurfitKappawasformedin2005.OCCGisaChainofCustodycertifiedGroupactivemainlyinnorthernMexicoandthesouthernUSAdeliveringcontainerboardandconvertedcorrugatedproductstothesamerangeofcustomersasSmurfitKappa.
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LETTERfROMOURCEO
iNTROduCTiON By GARy McGANN IampleasedtointroduceSmurfitKappa’ssixthannualSustainableDevelopmentReport.Asisshowninthisreport,SmurfitKappaisfundamentallycommittedtosustainabilityandsocialresponsibilityinitsinteractionwithitscustomers,suppliers,employees,thecommunitiesinwhichitisprivilegedtodobusinessandinrelationtoitsimpactonthebroaderenvironment.Sustainabilityhasbecomeakeybusinessdriverand isaplatformfordifferentiationinthemarket.
Asinrecentyears,economicconditionscontinuetobechallenging.Nevertheless,in2012andcontinuingin2013,wehaveshownourcommitmenttosustainabilitybynotonlymakingsignificantinvestmentsintheenvironmentbutalsobyreachingthefirsttargetofourlongtermsustainabilitycommitments.In2013,wewillcontinuethedrivetodemonstratetoourstakeholdersthatsustainabilityobjectivesareachievable,beneficialtoourbusinessandeconomicallyviable.Thebestwaytodothatisbycreatingeconomic,socialandenvironmentalwin-winsituationsforallstakeholdersinvolved. Asafurtherintroductiontothe2012SustainableDevelopmentReportIwouldliketohighlighta numberofdevelopments.
OuR ViSiON ON SuSTAiNABiliTyOverthepastyearwehaveworkedtosetoutourfundamentalviewsonsustainabilityinastrategicvisionstatement.In2010wemadefourmajorlongtermcommitmentsintheareaofsustainabilityand,asasecondstep,wehavenowdevelopedamorestrategicvisiononsustainabilitywhichwehavepublishedandentitled“TheSmurfitKappaVisiononSustainability”. Inthisstatementweexplainwhyweconsidersustainabilitytobeakeybusinessdriverandwhy
itisverynaturalforourbusiness.furthermore,weexplainwhySmurfitKappaiscommittedtosustainability,howwemakeourcommitmenttosustainabilitytangible,andwhatourobjectivesandtargetsareforthesevenkeysustainabilitybuildingblocksthatwehaveidentifiedforourbusiness.Thescopeofourlongtermobjectivesandtargetshasbeenwidenedtoinclude(besidesthecurrentlongtermcommitmentsinChainofCustodycertification,reductionoffossilCO2emissionsandreductioninCODdischarges)anumberofotherareasthatweconsiderimportantintheareaofsustainability.Theseareasarewastemanagement,waterusage,safetyatworkandourinvolvementinthelocalcommunitieswhereweoperateandwherewewishtomakeadifferenceforthelocalpopulation.Ourvisiononsustainabilityisadynamicone:asweprogressourviewswillevolveand,ifopportune,wewilladjustlongtermobjectivesandtargetsaccordingly.
ENGAGEMENT wiTH STAkEHOldERSWeconsideropenandtransparentcommunicationwithourstakeholderstobekeyinbuildingcredibilityontheissuesthatareimportanttoourbusiness.Wearethereforeincontinuousdialoguewiththedifferentstakeholdergroupsaswetrytodeepenourunderstandingofwhatsignificantstakeholdersconsidertobeimportantintheareaofsustainability.Manyofourcustomerswanttoengagewithusaboutissuesinthisareaonaregularandon-goingbasis.Themutualbenefitofthisdialogueisthatourcustomersvaluewhatourknowledgebringstotheirsupplychainsandweinturncantakeadvantageoftheirfeedbacktodriveoursustainabilityagendaforward.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012 7SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012
Wealsoanalysedthesustainabilityreportingofagroupof30stakeholders,bothcustomersandsuppliers,toascertainwhichissuestheydeemtobeimportantintheareaofsustainability.Overall,onecanconcludethatthereisabroadoverlapbetweentheissuesthatSmurfitKappaconsiderstobeimportantandtheissueslistedbythisgroupofstakeholders.Moredetailofthisanalysiscanbefoundonpage12ofthisreport.Inaddition, asinlastyear’sreport,wefeatureshortinterviewswithrepresentativesfromourstakeholderbasehighlightingsustainabilityaspectsthatareimportanttothem.
PROGRESS ON OuR lONG TERM SuSTAiNABlE dEVElOPMENT COMMiTMENTSIn2012,goodprogresswasmadeintherealisationofourlongtermsustainabledevelopmentcommitments.fromfebruary2013onwards,over90%ofourconvertingoperationsworldwideareChainofCustodycertifiedunderfSCand/orPEfC,reachingoneofourcommitmentsonthesustainableuseoffibres,twoyearsaheadofschedule.Wearealsoclosetoreachingourother2015targetsunderthiscommitment.
RelativefossilCO2emissionsbyourmillsystemwerereducedyear-on-yearbyover3%partlyresultingfromthecompletionofspecificinvestments.Ourproduction-relatedCODdischargesarenowmorethan25%lowerthanin2005,and5%lowerthanin2011.OurBoardofDirectorsapprovedarevisedCodeofBusinessConductreflectingourcommitmenttoconductourbusinesstothehighestethicalstandards.Acomprehensiveawarenesscampaignin17languageswillbeinitiatedwiththeultimateobjectiveofensuringthatallouremployees arefamiliarwiththenewCodeandbehaveaccordingly.
SuSTAiNABlE GROwTH NEEdS ‘lEVEl PlAyiNG fiEld’ TRAdiNG CONdiTiONSAswehavestatedinpreviousreports,SmurfitKappa isfullypreparedtoplayitsroleinmeetingthesocial,environmentalandeconomicchallengesthattheworld isfacinginordertodevelopamuchneededsustainablegrowthmodel.forustodeliverourpart,itisnecessarythattheEUandthevariousgovernmentsinthecountrieswhereweoperatecreatefairandpredictabletradingconditions.forexample,theEU’sEmissionTradingSystemisatacrossroads.Eventhoughwefullysupportitsobjectivetocurbclimatechange,wealsowouldarguethattheabsenceofinternationalagreementsonglobalETSsystemsincombinationwiththeincreasedavailabilityofcheapfuelssuchasshalegasintheUSA,shouldnotresultintheEUcontinuingoreventighteningpoliciesthatwill,ineffect,resultininequitabletradingconditionsforenergyintensiveindustriessuchasours.WewanttheEUtoguideitsMemberStatestowardsbecominglesscarbonintensive,focusingonrenewableenergyandresourceefficiencywhileatthesametimemaintainingtheprincipleofagloballevelplayingfield. Inotherpolicyinitiativesconcerningtheuseofrawmaterials,theEUhastheresponsibilitytoensurethatourindustryhasaccess,ataffordableandcompetitiveprices,towood,recoveredpaper,andthecapacitytosecureadequateenergyandwatersupplywithoutdistortivetaxesand/orsubsidies.Undersuchascenario,wewillcontinuetodeliverourshareofsustainablegrowthbringingprosperitytoourstakeholdercommunities.
Ihopeyouwillfindthecontentofour2012SustainableDevelopmentReportbothinterestingandinformative,andlookforwardtoanyfeedbackthatyoumayhave.
Gary McGann GROUPCHIEfExECUTIVEOffICER 21June2013
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TheBoardandManagementofSmurfitKappasupportthehigheststandardsofCorporateGovernanceandethicalbusinessconduct.Itisourviewthatacultureofhighstandardsofgovernancemustbepromotedfromthetopandmustbefosteredthroughoutthewholeorganisation.ThefollowingsectiondescribesinsummarytheGroup’sgovernanceatBoardlevelinsofarasitrelatestocorporatesocialresponsibility.ThefullCorporateGovernanceStatement,togetherwiththeDirectors’ReportandRemunerationReport,issetoutinthe 2012SKGAnnualReport.
SuSTAiNABiliTy GOVERNANCESustainabledevelopmentisacoreprincipleinallfacetsofSmurfitKappa’soperationsandactivities.TheBoardhasoverallresponsibilityforensuringthattheGroupplaysanappropriateroleinpromotingarealisticsustainabledevelopmentagendainthepaper-basedpackagingsector.ThedevelopmentandimplementationofSmurfitKappa’spoliciesinthisareaaresponsoredbytheGroupCEO.
Atexecutivemanagementlevel,aGroupSteeringCommitteesetsoutourstrategyandobjectivesforsustainabledevelopmentandreviewstheprogressmadeinmeetingourcommitments.ThiscommitteecomprisesthemostseniorexecutivesintheCompanyincludingthethreeexecutivedirectors(GroupCEO,GroupCOOandGroupCfO)andmanagementfromeachdivisionandfromtheGroupheadquarters.
TheGroupSteeringCommitteeissupportedby aSustainabilityWorkingGroupcomprisingkeyrepresentativesfromeachofthemainoperating divisionsinEuropeandtheAmericasaswellasGroupheadquarters.ThisGroup’staskistomonitortheachievementoftargetsacrossawiderangeofsustainabilityindicatorsandtopromotethethemeofsustainabledevelopmentinSmurfitKappa’sinterfacewithcustomers,suppliersandthegeneralenvironment.TheWorkingGroupisalsoresponsibleforthepreparationandproductionoftheAnnualSustainableDevelopmentReport.
ORGANiSATiON ANd REPORTiNGSustainabilityisembeddedintoouroperationsandreportingstructuresinvariousways.Thesustainabilityaspectsofourpackagingsolutionsandthebenefitstheycanbringtoourcustomersaretheprimemanagementresponsibilityofoursalesandmarketingteams,bothatcentralaswellasatlocallevel.Managingenvironmentalissuessuchasenergyandwater,andalsopeopleissuessuchashealthandsafetyandlocalcommunityinvolvement,aretheresponsibilityofthemanagement ofthelocaloperationsandthedivisionalmanagement towhomtheyreport.Reportingontheseaspectstakesplacethroughregularmonthlyand/orquarterlyreports tothevariousmanagementlevelsorthroughspecificreportingsuchasthereportingontheprogressmade onourlongtermsustainabledevelopmentcommitments.ABoardreportonoursustainabilityactivitiesincludingprogressoncertainindicatorsandtargetsispreparedtwiceayear.
COdE Of BuSiNESS CONduCT ANd GROuP POliCiESIn2012theBoardofDirectorsofSmurfitKappaapprovedarevisedCodeofBusinessConduct.Apartfromcoveringnewissuessuchasbriberyandanti-corruption,weworkedfromtheGroup’soriginalCodeofBusinessConduct,aswellasthevariousrelatedpoliciesandguidelines(e.g.EnvironmentalPolicyStatement,SocialCitizenPolicyStatement,ModelCode,etc.).Thenew Codeembedsthefundamentalprinciplesofallofthesepoliciesunderoneumbrellapolicycoveringhowweoperateethicallyasalargemultinational.TheCodewillalsobelinked,asapplicable,tothesedetailedpoliciesandguidelines.TheresultingCodeofBusinessConductandtheassociatedpoliciescoveringareasrelatedtoSmurfitKappa’smanagementandoperationsarebaseduponthefollowinginternationalconventionsandcodes:
1. InternationalLabourOrganisation(ILO)DeclarationonfundamentalPrinciplesandRightsatWork (coreconventions).
2. UNDeclarationonfundamentalHumanRights.
3. OECDGuidelinesforMultinationalEnterprises.
4. UNGlobalCompact.
CORPORATE GOVERNANCE
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012 9SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012
TheGroupensuresthatthekeycomponentsofinternalcontrolareinplacethroughtheimplementationofpoliciesandprogrammeswhichaimtodefineacceptablebusinesspractices,theresolutionofconflictsofinterestandtheexpectedstandardsofethicalbehaviour.WehavealsocreatedspecificpolicystatementsinkeyareasofsustainabilitythatareintegraltothedrivetoimproveSmurfitKappa’sperformance.ThesepolicystatementscoverEnvironment,Sustainableforestry,SustainableSourcing,SocialCitizenshipandHealthandSafetyissues.
AlloftheseCodesandpoliciesareavailableonourwebsitewww.smurfitkappa.com.
ETHiCAl STANdARdSOurCodeofBusinessConductprovidestheunderlyingmodusoperandiforeachandeveryemployeeineveryjurisdiction.Itsetsoutourpositioninrelationtocompliancewiththelaw,adherencetoethicalstandardsanditscommitmentstothosewithwhomitcomesincontact.
EachGroupcompanyanditsemployees,regardlessofgeographiclocation,arerequiredtoapplytheCodeandabidebytheparticularlawsandpracticesapplicabletotheirindustryand/orrequiredbythejurisdictioninwhichtheyoperate.
TheGroup’sCodeofBusinessConductmakesitclearthatpersonalandprofessionalintegrityistheresponsibilityofeachemployee.
ComplementingtheCodeofBusinessConductistheGoodfaithReportingPolicyStatement(‘WhistleblowerCode’)whichenablesemployeestoreportconcernsaboutpotentialwrongdoing.
TherevisedCodehasbeenpublishedonourwebsite andanawarenessprogrammehasbeeninitiatedin2012.Thiswillberolled-outGroupwideandincludesanappropriatetrainingprogrammeforcurrentand newlyrecruitedemployees.
AudiTSEachsignificantbusinessunitisthesubjectofanexternalandindependentfinancialauditconducted bytheGroup’sExternalAuditorsonanannualbasis.
Mostotherbusinessunitsarethesubjectoflocalstatutoryfinancialaudits.
OurInternalAuditDepartmenthasitsownextensiveworkprogrammeinthecontextoftheGroup’sfinancialRiskManagementSystem.Duringthecourseof2012,86detailedinternalfinancialandITauditswerecompleted.
Inadditiontotheseinternalaudits,alloperatingcountriesmustadheretotheGroup’sfinancialMonitoringPolicy.Thisincludescompletingriskassessmentanalysescoveringover50%oftheGroup’slargerfacilitiescarriedoutbyrelevantpersonnelfromwithineachcountry.
Thevariousauditsandanalysesincluderisksprimarilyrelatedtosignificantmaterialmisstatementoffinancialresults,deliberateorotherwise,arisingfromapoorcontrolframework.During2012,nosuchmisreportingwasidentified.
During2012,therewerenosignificantincidentsreportedwhichtheGroupconsideredtobenon-compliantwiththeCodeofBusinessConduct.
PuBliC POliCyAsamultinationalorganisation,ourbusinessesaresubjecttolegislationandrulesdeterminedbythejurisdictionsinwhichtheyoperate.
Inthatcontext,SmurfitKappaadoptspositionsonavarietyofmattersthatarerelevanttoitsbusiness,makingitsviewsknowntothepartiesconcerned,eitherdirectlyorthroughindustrybodiessuchastheConfederation ofEuropeanPaperIndustries(CEPI),theEuropeanfederationofCorrugatedBoardManufacturers(fEfCO)andtheEuropeanRoundTableofIndustrialists(ERT). ItalsoworkscloselywiththeIrishBusinessandEmployers’Confederation(IBEC)andequivalent bodiesinothercountries.
AtalltimesthoserepresentingtheviewsofSmurfitKappadosohavingdueregardtoitsCodeofBusinessConductandthelocallawsandregulationsapplyingtotheGroup’soperations.TherewerenosignificantcriticismsoftheGroupinthisrespectin2012.InlinewiththeGroup’sCodeofBusinessConductnofinancialcontributionsweremadetopoliticalpartiesin2012.NonationalgovernmentisadirectshareholderinSmurfitKappa.
COMPliANCEItisGrouppolicytocomplyatleastwiththeapplicablelawsandregulationsineachofthecountriesinwhichitoperatesandtoensurethatitsemployeesareawareofthisandconductthemselvesappropriately.NosignificantfineswereimposedontheGroupin2012inrespectofanybreachesofsuchlawsandregulations.
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ENGAGEMENTWITH STAKEHOLDERS
OuR STAkEHOldERSWeconsideracontinuous,openandconstructivedialoguewithourvariousstakeholdergroupsinallcountriesandareaswhereweoperatetobeofkeyimportance.Webelievethatfrequentinteractionwith ourstakeholdercommunitiesoffersusagreatopportunitytoimproveanddevelopourselvesinallaspectsofsustainability.Bydoingsoweaimtomeetand,wherepossible,exceedourstakeholders’expectations.Ourstakeholdersarecrucialtotherealisationofoursustainabilityobjectiveswhethertheirconcernsareenvironmental,socialoreconomic.
Weconsideranypersonorentitywithwhomweengagetobepartofourstakeholdercommunity.ThisrangesfromanysmalllocalcustomerorsuppliertolargemultinationalcompaniesorNGOs.Manystakeholderinteractionssuchasmeetings,fairs,communityvisits,publichearings,openhouseeventsorothereventsorganisedby,orfor,stakeholderstakeplaceatalocallevelwhereourteamsinteractonadailybasiswithcustomers,suppliers,employeesandlocalauthorities.Wealsoreceivestakeholderfeedbackthroughcustomersatisfactionsurveys,dialoguewithtradeunionsandemployeequestionnaires.
AllourstakeholderrelationsareguidedbyourCodeofBusinessConductandrelatedpolicystatementssettingouttheprinciplesthatallSmurfitKappaemployeesareobligedtofollowintheirrelationswithstakeholders.MoreinformationaboutthisCodeisgivenonpage9.
Thedifferentstakeholdergroupswerecognisearelistedoverleafandasummaryofhowweengagewiththemisprovided.Shortinterviewswithrepresentativesofdifferentstakeholdergroupsareincludedthroughout thereport.
MEMBERSHiPS iN ORGANiSATiONSAspartofourinteractionwithvariousstakeholdergroups,webelieveitisimportanttobeanactiveparticipant,amember,asignatoryortobeotherwisesupportiveofassociations,topicalinitiatives,advocacygroupsandinstitutionsthatrepresentorbringtogetherrelevantstakeholdergroups.Thevalueoftheseorganisationsforuscanbesignificant.Thisrangesfrom
representationtopolicymakersaspartofanindustrygrouptohavingaccesstorelevantindustrystatistics. Oureffortsinthatregardfocusonnationalandinternationalindustryassociationssuchas:
nCEPI,atGrouplevelandthroughvariousnationalpapermanufacturerassociations,
nfEfCO,atGrouplevelandthroughanumberofnationalcorrugatedmanufacturerassociations,
nCEPIContainerboard,
ntheInternationalCorrugatedCasesAssociation(ICCA)and,
ntheEuropeansackkraftmanufacturers’association(Eurokraft),
nACCCSA,AsociacióndeCorrugadoresdelCaribeCentroySurAmérica.
Besidescontributingtotheseassociationsthroughannualmembershipfees,severalseniorSmurfitKappaexecutivesareboardmembersofCEPI,CEPIContainerboardandfEfCO.Also,representativesofSmurfitKappaaretypicallyinvolvedasactiveparticipantsincommittees,issuegroupsandtaskforcesonspecifictopicsofinteresttotheseassociations.
SmurfitKappaisalsoactivelyinvolvedasamember of,participantinorasasignatorytoanumberoforganisationsactiveintheareaofenvironmentalreportingandsustainability.Theseinclude:
ntheCarbonDisclosureProject(CDP),
ntheSupplierEthicalDataExchange(Sedex),
ntheWaterfootprintNetwork(WfN)
ntheProgrammefortheEndorsementofforestCertification(PEfC)
ntheforestStewardshipCouncil®(fSC®,until2013viaourColombianorganisation,since2013alsofromourGroupoffice)
ntheWorldBusinessCouncilforSustainableDevelopment(viaitslocalchapterinColombia).
nTheUNGlobalCompact(seealsopage92).
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Customers Aswellasthenormalbusinessinteractionthatonewouldexpect,wearecontinuouslyintensifyingourengagementwithourcustomersandinturntheircustomers(e.g.retailers)onkeysustainabilityissues.Importantareasofinteractionaresustainablefibresourcing,carbonfootprintandsocialcompliance.Theseinteractionswithcustomerscouldbeintheformofworkingtogetheronspecificprojectsinsustainability,attendingcustomerconferencesorsupportingcustomerswiththeirspecificsustainabilityinitiatives.
Employees Ouremployeesarethekeytooursuccess.Weplacesignificantemphasisontheirsafety,healthandwell-being.Therearenumeroustrainingactivitiesforouremployeesrangingfromtrainingonthejobtoadvancedmanagementcourses,bothinternalaswellasexternal.Thereisextensiveinteractionbetweenourmanagementandrepresentativesofouremployeesthroughthevariousemployeerepresentativebodies.WerevisedourCodeofBusinessConductreflectinghowweconductourbusinessandtheimportantroleouremployees playinthat.
Investors Thereisanextensiveprogrammeinvolvingroadshowsandinvestordayswhereanalystsandinvestorshavetheopportunitytoengageindialoguewithsenioroperatingmanagement.One-on-onemeetings,telephoneconferences,andparticipationinindustry-relatedinvestorconferencesalsoformpartofourinvestorrelationsinitiative.
Suppliers Aswellastheusuallevelsofcommunication,therearespecificinitiativessuchasauditsandquestionnaires.ThereisspecificfocusonChainofCustodycertificationofourpapersuppliers.SupplierprogrammesareinplacethatrequireoursupplierstodeliverinconformitywithourSustainabilitySourcingPolicy.SmurfitKappa’soperationsarerequiredtosourceproductsandservicesfromlocalsupplierswherepossible,consistentwiththeneedtoensureappropriatequalityattherightpriceandsupportforsustainability.
nGOs Membershipsof,orparticipationsin,organisationslikeforestStewardshipCouncil(fSC),ProgrammefortheEndorsementofforestCertificationSchemes(PEfC),theSupplierEthicalDataExchange(Sedex),CarbonDisclosureProject(CDP)andWaterfootprintNetwork.Dialogue,bothdirectandindirect,(throughmembershiporganisations)andcooperation onspecifictopicssuchaswaterandCO2 sequestration.
local communities
Weengageinsocialprojectsandhealth,employmentandenvironmentalinitiativesinthecountriesinwhichweoperate.InLatinAmerica,inparticular,therearesomeextensiveprogrammesinvolvingsignificantexpenditureandouremployees’timeandexpertise. Theaimistoassistcommunitiesinself-help.TheSmurfitKappaGroupfoundationtargetssocialresponsibilityinitiativesinthosecountriesinwhichSmurfitKappaoperates.
Government and society
Membershipofindustryassociationsatnationalandinternationallevel,participationinforumsrelatedtobroaderbusinessissuesandsocietyingeneral
Membershipoforparticipationinsuchorganisationsisnotpassiveandcustomarilyinvolvesprovidingthemwithasignificantamountofinformationonouroperations,usuallyintheformofadetailedquestionnaire.
TheGroupCEOisamemberoftheEuropeanRoundTable,aforumofapproximately50chiefexecutivesand/orchairmenofmajormultinationalcompaniesof
Europeanparentagecoveringawiderangeofindustrialandtechnologicalsectors.
SmurfitKappa’ssubsidiarycompaniesarealsomembersofalargenumberofnationalindustryandbusinessassociationsinbothEuropeandLatinAmerica.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT201212
mateRiality
OurobjectivewhendeterminingmaterialityistoidentifythoseissuesofsignificanceforSmurfitKappa.Thesecanthenformthebasisofourworkinsustainability.
Inpreparingthisreport,weidentifiedrelevanttopicstakingintoconsiderationtheGlobalReportingInitiative(GRI)guidanceonmaterialityandcompleteness.WealsousedourownCodeofBusinessConduct,generaltrendsinthemarketplaceandregulatoryandcompliancedriversasinputfortopicidentification.Aswellasthenormalinteractionsonewouldexpect,wealsointerviewedrepresentativesfromthedifferentstakeholdergroups fortheirspecificinput.Theseinterviewscanbefoundthroughoutthereportandprovideexamplesofissuesthatareimportantforourstakeholdersasawhole.furthermore,weperformedananalysisofthetopics thatarematerialforagroupofrelevantstakeholders.
Theinputfromthedifferentstakeholdergroupswasparticularlyusefulinhelpingustorefinetheconceptofmaterialityandenabledustofocusonthesustainabilityissuesthatwebelieveourstakeholdersfindimportantforustobothworkandreporton.
Theseanalysesandinteractionsresultedinanextensivelistoftopicsthatcanbeclassifiedunderfourmainheadings:
I. environmental,II. social,III. economicandIV. general.
Individualtopicsweincludeundereachoftheseheadingsarehighlightedinthegraphbelow.
forthisyear’sreportwestudiedthematerialityanalysisofagroupof30companiesthatweconsiderimportantorrelevanttousincludingcustomers,suppliersandpeersandcompaniesthatinotherwaysarerelevanttous.Issuesthatarematerialforourcustomersand/orsuppliersareconsideredtobe(potentially)materialto usaswell.Asafirststepweanalysedhowmanyofthecompaniesperformedamaterialityanalysisandwethenanalysedthefrequencywithwhichmaterialissueswerementionedorhighlighted.Weconsideredthatthefrequencywithwhichatopic/issuewasmentionedas anindicatoroftheimportanceofthattopic/issuefor theinvestigatedgroupofcompanies.ThegraphbelowreflectsthatinterpretationwhilealsoindicatingthesignificanceoftheseissuestoSmurfitKappa.
Issuesasshownhereunderareplottedaccordingto theGRIguidelines.
Significance of Indicators for Smurfit Kappa
leve
l of
inte
rest
of
stak
ehol
ders
SocialTopics EconomictopicsGeneralTopics EnvironmentalTopics
TalentAttraction &Retention
WorkforceTraining &Development
EmployeeRelationsWasteManagement
Certification
foodContactandfoodSafety
RelationswithCustomers
ProductDevelopment&Innovation
StakeholderEngagement
Transparency
CompliancetoLaws
Business Ethics&Values
CorporateGovernance
WaterIntake &DischargeLandUse
Biodiversity
CommunityDevelopment &CommunityRelations
ClimateChange
HealthandSafety
EnvironmentalIncidents
EnergyUsage
Suppliers&Contractors
ChildLabour&forcedLabour
Non-discrimination&Diversity
Sustainableforestry
Emissionsdue toTransportation
RawMaterialAvailability
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012 13SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012
STRATEGy
TheGroup’sobjectiveistodeliversuperiorperformanceintermsofprofitabilityandreturnsoncapitalthroughthecycle,therebyenhancingshareholdervalue,andtobethemarketleaderinpaper-basedpackaging initschosenmarkets.Thisobjectiveisunderpinnedby afocusondeliveringsuperiorcustomersatisfaction,arelentlesspursuitofcostandoperatingefficiency,proactiveenvironmentalawareness,andacommitmenttothepersonaldevelopmentofemployeesandcontinuousimprovementintheareasofhealth andsafetyandcorporatesocialresponsibility.
THE GROuP’S OBjECTiVES ANd STRATEGiES ARE:ToprofitablybuildonitsmarketpositionsinEuropeandintheAmericasthroughselectivefocusedgrowth,including:
norganicgrowthfromincreasedmarketsharethroughconsolidating,andwhereappropriate,extendingitsleadershippositioninWesternEurope.ThiswillbeachievedbyleveragingtheGroup’srelationshipswithitscustomersacross itsbroadproductrangeandenhancingitsprofitabilitybymaximisingsynergiesandoptimisingthecostbase;and
nacquisitionandmergerbasedgrowthinareaswheremarketshareand/orcoveragefacilitatesit,particularlyinthehighergrowthmarketssuchasEasternEuropeandLatinAmerica.
Tofocusonenhancingitsoperationalexcellence, therebycontinuingtoimproveitscustomeroffering,bycontinuouslyupgradingitsproducts,processes,services,qualityanddeliveryinallmarketsby:
nleveragingtheGroup’sincreasinglyhighqualityassetbasethroughcontinuousimprovementprogrammes,transferofbestpractice,industrialengineering,innovationandtargetedcapitalinvestment;and
nincreasingtheproportionofadded-valueconvertingproductsintheoverallportfoliothroughtheuseoftheGroup’sdevelopmentandtechnologycentres,itsinnovationtoolsanditspan-Europeannetworkingreatervalueareassuchashighqualityprinting,displayandlitholamination;and
nensuringthatitsoperations,whetherintheconvertingormilldivisions,continuetobeclosetotheircustomersandhaveaclearmarketfocusratherthanbeingproductiondriven.
Tofocusoncashflowandappropriatereturnsoninvestmentinordertomaximiseshareholdervalue.
TosecureandretaintheoptimalbalancebetweendebtandequitycapitaltofacilitatetheGroup’sgrowthstrategyinacyclicalindustry,whilestrikingtheappropriatebalancebetweenriskandreturn.
Bert Mik - Smurfit Kappa Solid Board, Netherlands.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT201214
InDecember2012,SmurfitKappaacquiredOrangeCountyContainerGroup,whichisanintegratedpaperboardandpaper-basedpackagingmanufactureroperatingwithinnorthernMexicoandthesouthernUSA.Thecompany,whichhasbeenrenamedSmurfitKappaOrangeCounty(“SKOC”),producesrecycledlinerboardandcorrugatingmediumatitsfacilityinforney,Texasandawiderangeofcorrugatedandfoldingcartoncontainersandpoint-of-purchasedisplaysinanumberofconvertingoperationsinnorthernMexicoandCalifornia.SKOCalsooperatesrecoveredpapercentresinTexas,Oklahoma,andArkansas.
fromasustainabilityperspectiveSKOC’soperationsareChainofCustodycertifiedundertheforestStewardshipCouncil(fSC)andtheSustainableforestryInitiative(SfI).SKOC’sconvertingoperationsproducerecyclablepackagingsolutionsandhavepackagingonofferwithaspecialfocusonsustainabilityaspects.Itsforneypapermakingfacilityisoneofthelargestproducersof100%recycledcontainerboardintheUnitedStates,producingcurrentlyaround300,000tonnesofrecycledpaperontwopapermachinesperyear.
Theforneyfacilityoperatesawood-firedbiomassboilercombustingwoodchipsthatarebasedonwastewoodpurchasedfromthirdparties.Thewoodchipswouldotherwisebelandfilledortrenchburned.forneyalsohasaCHPonsite.Asignificantpartofforney’senergyconsumptionin2012wasbasedonrenewablesourcesandmorethan30%ofitselectricityneedsweregeneratedonsiteaswell.
Acquisition of Orange County Container Group further strengthens Smurfit Kappa’s position in Mexico and USA
Aerial view of the Forney paper mill, Texas, USA, part of the Orange County Container Group which was acquired by Smurfit Kappa at the end of 2012.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012 15SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012
Ourobjectiveistobeacustomer-oriented,market-ledcompanywherethesatisfactionofcustomers,thepersonaldevelopmentofemployeesandrespectfor ourlocalcommunitiesandtheenvironmentareseenasbeinginseparablefromtheaimofcreatingvalueforourshareholders.Weseesustainabilityasaplatformthatwillhelpustoreachourobjectives.Itisthereforeanintegralpartofouroperationsandpartofourdailybusinesslife.Inourview,sustainabilityisnotaboutcorporatealtruismbutmakesperfectbusinesssenseasitcanhelpusgrowourbusiness.
OuR COMMiTMENT ANd APPROACHSustainabilityforSmurfitKappaisaboutimprovingthequalityoflifetodayandinthefuture,forpeopleand forourplanet.Itiswhatwedoandalwayshavedone:sustainabilityisaboutsatisfyingcustomerswithcreativeandinnovativeproductsandservicesthatextendthelongevityofproducts,usingresourcesandmaterialsresponsiblythroughourforestryandrecyclingbusinesses,providingsafeworkingenvironments,caringforourpeople,workingtobenefitthelocalcommunitiesandprotectingourreputation.Wetakeourresponsibilitiesinsustainabilityseriouslyandcaredeeplyabouttheenvironment,ourpeopleandthecommunitieswherewework.
Theaboveimpliesaclearcommitmenttothethreeimportantsustainabilityelements:Planet, PeopleandProfit.Ourapproachtothesethreeelementsisasfollows:
nEnvironment–weoperateinanenvironmentallysoundmanner.
nPeople–wearesociallyconsciousandpro-active.
nBusiness–weremaineconomicallyviable,doingbusinessonanethicalbasis.
IndoingsowewillensurethatthesocialandnaturalenvironmentwithinwhichSmurfitKappaoperatesisrespectedandprotectedbothtodayandintothefuture.TheGroupprovidesdirectincometoapproximately41,000people(includingSKOC)andindirectly(viaitssuppliers)toatleastthesamenumber,anditcontinuestocarefullyuseandrecycleawiderangeofnaturalresources.
1. ENViRONMENTforthefirstimportantelement–Planet–wetakeaspecialinterestinsafeguardingtheenvironmentasourproductsarecomposedofmaterialsthatarenaturalresourcebased,recyclableandpredominantlymade fromrecycledmaterial.Wecommittodosonotonlyinoperatingourfacilitiesbut,atleastasimportantly,indesigninganddevelopingpackagingsolutionsforourcustomersthatimprovetheirenvironmentalperformance.
Packagingispartofthecomplexsystemofdeliveringproductsfromwheretheyareproducedtowheretheyareconsumed.Ourpackagingproductsareusedtocollect,store,transport,distribute,preserveandmarketgoods.Becauseofthesefunctionspaper-basedpackagingmakesapositiveenvironmentalimpactbypreventingproductsfrombecomingwaste.Researchsuggeststhatourproducts,ifproperlydesignedandapplied,candecreasethecarbonimpactofaspectsofourcustomers’supplychainsbyconsiderablymorethanthecarbonimpactourownproductshave.
Inourdrivetosafeguardtheenvironmentwearecommittedto:
nComplyingwithnationalandinternationalenvironmentallegislation.
nApplyingappropriateenvironmentalmanagementsystemsthroughouttheGroup.
nUsingnaturalresourcesasefficientlyaspossible.
nAchievingbestpracticeinenvironmentalmanagementthroughthefocusoncontinuousimprovementprogrammes.
nMeetingthereasonableexpectationsofstakeholdersconcerningenvironmentalperformance.
nDrivingtheentirepapersupplychaintoreduceitsenvironmentalimpact.
nSupportingourcustomerstoreducetheenvironmentalimpactoftheirsupplychains.
2. PEOPlEforthesecondsustainabilityelement–People –ourprimaryfocusisonthesafety,well-beinganddevelopmentofallouremployees.Wedosobypermanentlyinvestingintheirsafetyatworkthroughtrainingandsafetyequipment,byprovidingthemwithchallengingandsatisfyingjobsandbyofferingcareeropportunities.Ourotherkeyfocusisonthelocalcommunitieswherewehavetheprivilegetooperate.Ouroperatingfacilitiesarefrequentlylocatedincommunitieswhereweareseenasanimportantpartnerinthelocaleconomy,providingjobstoouremployeesandbusinessforlocalsuppliers.Ourmanagersareencouragedtherefore,toactivelyparticipateininitiativesat thelocalcommunitylevel.
OuR COMMiTMENT ANd APPROACH TO SuSTAiNABlE dEVElOPMENT
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT201216
AsaGroupwearecommittedto:
nEnsuringthatforhealthandsafetystandards,allouroperationscomplywithlocallegislationandwithbestinternationalpractice.
nApplyingtheprincipleofequalemploymentopportunities.
nManagingourbusinessinanethicalandequitablemannerandmeetingallofoursocialresponsibilities.
nEnsuringthatemployeesandsuppliersareawareoftheGroup’spolicyonsocialresponsibility.
nProtectingandadvancinghumanrights,particularlythoseoftheindigenouscommunitieswherewehaveoperations.
nPromotingandenhancingstrongrelationshipswiththecommunitieswithinwhichourbusinesseshavetheprivilegetooperate.
3. BuSiNESSforthethirdsustainabilityelement–Profit–wehaveaverysimplephilosophy.Weneedprofitablegrowthtorewardourstakeholdersandtocontinueourdriveforsustainability.Duetothenatureofourbusiness,weseemanyopportunitiestocombineboththeneedforprofitablegrowthwiththeopportunitytoadvancethevarioussustainabilityprinciples.Weconsidersustainabilitynaturaltoourbusinessandtobeakeybusinessdriver.Weseesustainabilityasadifferentiatingfactorinthemarketanditisanintegralpartofourbusinesscommitmentandproductoffering.
AsaGroupwearecommittedto:
nMeetingshareholders’andotherstakeholders’expectationswithregardtoprofitable,sustainablelongtermbusinessdevelopmentinthechanginglocalandglobaleconomies.
nWorkingcloselywithanddemonstratingleadershiptocustomersandotherstakeholderswhenitcomestodevelopingandprovidingpackagingsolutionswithreliablesustainabilitycredentials,takingaccountoffactorssuchaspackagingoptimisation,recyclabilityandChainofCustody.
nSupportingcustomers,suppliersandothersinthesupplychainontheirownsustainabledevelopmentprojects.
nProvidingpackagingsolutionsthatimproveourcustomers’environmentalfootprint,e.g.byminimisingcustomers’productwastageandoptimisingdistributionandtransportationrequirements.
nInvolvingouremployeesindevelopingmoresustainableandinnovativepackagingsolutionsbyrewardingandhonouringtheminaGroup-widecompetitionofInnovationandSustainabilityAwards.
Whendealingwiththeenvironmental,socialandbusinessaspectsoftheGroup’ssustainabilityprogrammes,wearecommittedto:
nAsaminimum,complyingwithallstatutory,regulatoryandlegalrequirements.
nMaintainingcodesofbusinessconductthatsupportourcorevaluesofintegrity,responsibilityandrespect,whenmanagingourbusinessactivities inalllocations.
Werecognisethatfactorssuchasethicalbehaviour,transparencyingovernancestandards,identificationofrisksandstakeholderengagementarefundamentalforthesustainablesuccessoftheGroup.OurobjectiveistocontinuouslyprogressSmurfitKappa’srecognitionasatrulyresponsiblecompanybyallstakeholdersandotherparties.Intheremainderofthisreportinformationisprovidedonhowwesubstantiateourcommitmentsandapproachtosustainability.
Our Commitment and Approach to Sustainable development [continued]
Rosario Nielsen from Smurfit Kappa Dyboflex in Denmark.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012 17SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012
Sustainabilityhasbecomeoneofourkeybusinessdrivers.Throughourpackagingsolutions,wenotonlyprovidemarketingandretailreadypackagingtoourcustomers,wealsohelptooptimisetheirsupplychainsandtominimisewastebysecuringthedurabilityofproducts.Thelattertwoarebothcriticalconsiderationsinaworldwherethesupplyofnaturalresourcesisfinite.Therefore,efficientandsustainableuseofresourcesisoneofourkeyobjectives.Thishelpstomitigateclimatechangeandlimits,asmuchaspossible,otherenvironmentalimpactsonairandwatersystems.fromourmaterialityidentification,weconcludedthatforstakeholdergroupssuchascustomers,suppliersandNGOs,theefficientandsustainableuseofnaturalresourcesisalsoakeyconsideration.
Themainresourcesweneedinourprocessesarewoodandrecoveredpaperasrawmaterials,andenergyandwaterforthemanufacturingprocessofpaperandboard.
Anothercriticalelementofourbusinessisthatourpackagingsolutionsarefitforuseinfoodcontactapplications.foodsafetyisthereforeakeyconcern forusaswell.
Inthisdynamicbusinessenvironment,risksandchallengesregardingtheissuesoffibreavailability,costofenergy,regulationconcerningCO2emissionsandfoodsafetyarethereforekeyissueswhichweandourindustryfaceasawhole.
1. fiBRE AVAilABiliTyfibresfromwoodandrecoveredpaperarethefundamentalrawmaterialsweneedandtheiravailabilityatcompetitivepricesiskeyforourbusinessandindustry.Sustainableforestryandwell-functioningpaperrecoverysystemsareofparamountimportanceforcompaniessuchasSmurfitKappa.
Variousfactorsinfluencethepotentialavailabilityoffibreforourbusiness.Thesefactorsrangefromtheneedforalowcarbon,resourceefficienteconomy,andthecostofenergytopoliciesadoptedbytheEUontheneedfortheuseofrenewableenergy.Alsomoregeneralfactorssuchaspopulationgrowth,changingconsumerpatternsandfoodscarcitycanalsohaveanimpact.
forecastedglobalpopulationgrowthandhigherstandardsoflivingdemandactiontosecurefutureavailabilityofsufficientquantitiesofwoodfibreforitsvariousapplications.Ourindustryfacesanumberofchallengesinthisrespect.Needforlandandwatertofeedanincreasingpopulationmaylimitlandavailabilityforgrowingwoodwhilenewapplicationsfortheuseofwoodfibresinthebiochemicalindustrymaylimitfibreavailabilityforpapermaking.Ontheotherhand,populationgrowth andtheinherentneedtodecreasefoodwaste,towhichpackagingispartofthesolution,willincreasethe demandfor(paper)packaging.
Ofparticularconcernisthepotentialeffectofthe2020EURenewableEnergyPolicytargetsontheavailabilityofourrawmaterials.Existingsubsidyschemesforwoodasarenewablefuelfeedstockareofconcern,asthisdrivesupthepriceofourrawmaterials,negativelyimpactingthecompetitivenessofourindustryincomparisonwithalternativepackagingmaterials.Westronglyfavourtheconceptofresourcehierarchy,withpolicysupportfor thehighestaddedvalueapplicationsforfibresuchasproducingpaperoverloweraddedvalueapplicationssuchasthermaluse.
AnotherreasonforadheringtothishierarchyisthefactthattheEuropeanpaperindustryisalreadythesinglelargestuserandproducerofbio-energy,withfurtheruntappedpotentialasisshownintheforestfibreIndustry2050Roadmaptoalowcarboneconomy ‘Unfoldthefuture’.
Ourriskconcerningwoodfibreavailabilityismitigated byourownershipofforestryinLatinAmericaandtherelationshipswehavewithkeysuppliersofwoodin bothEuropeandLatinAmerica.
Paperfibrescanberecycledbetweensixtoninetimesandtheuseofrecovered(paper)fibrestoproducenewpaperandboardisanimportantcontributortothesustainablenatureofourproducts.Recoveryofusedpaperisaglobalnecessityandnationalandinternationalpoliciesshouldstimulatesettingupwell-functioningpaperrecoverysystems.
Weexpectthatglobalcollectionrateswillcontinuetoincrease.InEurope,collectionrateshavereachedonaverageover70%,withthehighestadditionalpotentialforrecoveredpapercollectioninEasternEuropeancountries.AccordingtoResourceInformationSystemsInc.(RISI),aleadinginformationproviderfortheglobalforestproductsindustry,globaldemandforrecoveredpaperincreasedbyapproximately70milliontonnes(45%)inthelastdecade(2001-11).Morethan75%ofthatincrease(approximately60milliontonnes)originatesfromAsiancountries,suchasChinaandIndia,wheredemandforrecoveredpaperincreasesfast.TheseAsiancountriesdependtoalargeextentonrecoveredfibreimportsduetolackoforlagginglocalrecoverysystems,puttinganupwardpressureonglobalrecoveredpaperpricing.
Thequalityofrecoveredfibresisdeterioratingastheamountofrecycledpaperisgrowing.freshfibreinflowintothepaperproductionandrecyclingsystemisthereforeanecessity,whichisanotherreasonwhytheabovementionedhierarchyofbiomassuseisimportant. Toensurethefutureavailabilityofsuitablerecoveredpaper,governmentsandindustrycollectivelyneedtocontinuetheirdrivetoincreasecollectionrates.
kEy RiSkS ANd CHAllENGES
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT201218
key Risks and Challenges [continued]
Asforwoodfibres,itisalsooftheutmostimportancethatrecoveredpaperisfirstusedforproducingpaperandboardandonlyattheendofitslifecycleshouldfibres beusedasfuelforenergygeneration.
Ourriskconcerningrecoveredpaperavailabilityismitigatedbyourpositioninthesupplychain,throughourownrecoveredpaperoperationsandlongtermsupplyagreementswithkeysuppliers.
2. COST ANd SuPPly Of ENERGyEnergypoliciesmustfocusonsecurityofsupplyatcompetitivepriceswhilemitigatingenvironmentaleffects.Thedifferencesinthecostofenergyinvariouspartsoftheworldareofincreasingconcerntous.Ourprocessesarebytheirnatureenergyintensiveandthecostofenergythereforeisanimportantcompetitivefactorgloballyaswellasincomparisonwithalternativepackagingmaterials.Globally,energycostsaredropping.InEurope,energycostsarekeptathighlevelsduetopoliciesthataddsignificantlytothepriceofenergy itselfsuchascostsfortheuseofgrids,subsidiesforrenewablesandotherlevies,whichinanumberofcountrieshaveoutgrowntheproductioncostsofenergyitself.ThisisdirectlynegativelyimpactingthecompetitivepositionofEuropeanindustryingeneral.
Anotherconcernistheapparentshiftintheuseofcertaintypesofenergy.Thenearnucleardisaster,resultingfromthetsunamiinfukushimainJapaninMarch2011,hasmotivatedtheGermangovernmenttomoveawayfromtheuseofnuclearenergy.IncombinationwiththeshalegasdiscoveriesinCanadaandtheUnitedStates,theglobalenergy‘landscape’haschangedsignificantlyinarelativelyshortperiodoftime.Shalegasandshaleoilareexpectedtobringenergyself-sufficiencytoNorthAmericaintheforeseeablefuture.Ithasalreadyledtoadecreaseinenergycosts(notablynaturalgas)forUnitedStatesindustryandledtotheexportofcoalfromNorthAmericatoEurope.Thisdevelopmentismakingtheuse ofcoaleconomicallymoreattractiveinEuropewhileenvironmentallyithasagreaterimpactthantheuse ofnaturalgas.
WithinEuropethisdevelopmenthasled,incombinationwiththegrowinguseof(subsidised)renewableenergy, toasituationofovercapacityofenergysupply.Gasfiredpowerplants,includinggasfiredcombinedheatandpowerinstallations(CHP),can,incertainmarketconditions,nolongercompeteagainstsubsidisedrenewablesandtheuseof(imported)cheapcoal.ThisdevelopmentisofconsiderableconcerntousaswewhohavemadesignificantinvestmentsingasfiredCHPinstallationsonthebasisoftheirhighenergyefficiencyandtheirrelativeenvironmentalfriendliness.
ThesedevelopmentsarecreatingsignificantchallengesforouroperationsinEuropeinparticular.Tomitigateourrisksconcerningcostsandsupplyofenergy,wefocusoureffortsonfurtherincreasingenergyefficiencyandtheuseofbiomasswhereeconomicallyfeasible.WealsosupportourEuropeanindustryassociationCEPI,aswellastheERT,intheiradvocacyforcompetitivecostsofenergysupplyinEurope.
3. CliMATE POliCy iMPACTEuropehastakentheleadinaddressingtheimpactofCO2 emissionsonclimatechange.ApartfromAustralia,onlyEuropeancountrieshaveacceptedbindingcommitmentsforthesecondperiodoftheKyotoProtocol.Globalnegotiationsonafutureclimateregimeareduetostart in2015withaformalagreementanticipatedby2020.
SmurfitKappasupportsglobaleffortstocurbclimatechangeifandwhenagloballevelplayingfieldisestablished.WebelievethatEuropeanpoliciesregardingclimatechangeshouldnotbetightenedintheabsence ofinternationalagreements.ThecurrentETSIIIsystemisfunctioningwelleventhoughthepriceofcarbonisnotattheexpectedlevelsasforeseen.Inourview,thisispartlytheresultoftheinvestmentstheEuropeanindustryhasmadeinenergyefficient,non-fossilfuelledequipment.
WerecommendthattheEUgivesprioritytoprovidingguidancefortheperiodbeyond2020onhowitintends torealisetheobjectivesenvisagedinits‘Roadmapformovingtoalow-carboneconomyin2050’.Itisalsoofparamountimportancethatthebiomassusedbytheforestproductsindustryremainsuntouchedasbillions ofeuroshavebeeninvestedovertimeinbiomassboilersthatoperatemostlyonresidualssuchassawmilldust,bark,blackliquorandstumps.
WehavemadesignificantstepsinreducingourCO2 emissionsandhavebeeninstrumentalinsettingindustrybenchmarksthatarethebasisforfreeallocationofcarboncreditstoourindustryinthe2013-2020tradingperiod.GiventhealreadydisadvantageouspositionenergyintensiveindustriesinEuropehavevis-à-vistheircompetitorsinotherpartsoftheworld,webelievethattheso-called‘carbonleakage’statusofourindustryinEuropemustbemaintainedfortheremainderoftheETSIIIperiod.
Tomitigateourrisksconcerningclimatepoliciesimpact,wefocusoureffortsonreducingspecifictypesofenergyusageandwearealsoaimingtoreducegreenhousegasemissionsbyinvestinginmoreenergyefficientsystemssuchasCHPplants,alternativeenergyoptionssuchastheuseofbiomass,andbydrivingproductionefficiencies.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012 19SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012
4. wATERWateravailabilityandtheimpactofourwaterusage ontheenvironmentarekeyissuesforus.Sufficientavailabilityofgoodqualitywateratanaffordablecost isfundamentalforanindustrylikeours.freshwateravailabilityisclearlyagrowingconcernforcertainareasoftheworld.Althoughthevastmajorityofourfacilitiesarelocatedinareaswherefreshwateriscurrentlysufficientlyavailable,asaGroupwearecommitted toreduceourwaterusagewherefeasible.
Asaconsequenceofthegrowingconcernregardingfreshwateravailability,webelievewaterpolicymakerswillincreasetheirfocusontheconsumptionofwaterandthetreatmentofwastewater.Wetreatwastewaterasaresourcecontainingvaluethatshouldberecuperatedbeforethewaterisreleasedtothepublicwaterbodyincompliancewithlegislation.Wealreadyretrievevaluablebiogasfromwastewatersludgeandwearedevelopingourinsightsonhowtorecoverotherresourcesfromwastewaterflows.
Chemicalswillbere-evaluatedfortheirimpactonwastewaterflows.Limitationstoemissionstowatermayalreadyarisefromthefinalisationoftheso-calledBestAvailableTechnologiesReferencedocument(BREf)bytheEuropeanCommissionthisyear,withstricterlimitsonAOxandnutrientsinwastewaterflows.
Since2008thewaterintakeofourpaperandboardmillsystemhasdecreasedby10%pertonneofproduct.Although,aswithotherpaperproducers,weprocesslargevolumesofwater,thepaperindustrydoesnotactuallyconsumeasignificantvolumeofwater.Aftertreatmentinmodernwatertreatmentplants,over90%ofthewaterintakeisreturnedtothewatersystemsfromwhichitwasextracted.Wearethereforestronglycommittedtofindwaystofurtherimprovewaterusageefficiencyandtoimprovethequalityofthewaterreturnedtotheenvironment.Since2005wehaveachievedareduction ofover25%intheorganicload(COD)dischargedwiththeeffluents.Wearecommittedtocontinuingourambitiousprogrammeforreducingtheimpactofouractivitiesonwater.
Wealsosupportinitiativesthatdevelopmethodologies tocalculatewaterfootprintaccounting,waterfootprintimpactassessment,andwaterstewardshipstandards.WeareapartneroftheWaterfootprintNetwork(WfN)whichisafrontrunnerindevelopingsuchstandards.WearealsocloselymonitoringtheupcomingISOstandardonwaterfootprintingandtheworkoftheAllianceofWaterStewardshipandEuropeanWaterPartnersviaourindustryassociationCEPI.
5. fOOd CONTACT ANd fOOd SAfETyInouropinion,itcanbeobjectivelyproventhatpaper-basedpackagingisthemostsustainableformoftransportanddisplaypackagingforfoodproducts.Itisacleanandhygienicproductusedforonlyonedelivery.Thechallengeourindustryfacestomeetthestandardofsecuringsafeandhygienicproductsismademoredifficultbythefactthatwerepeatedlyrecycleourpapermaterialsintheinterestofenvironmentalsustainabilityandcostefficiencies.Asourrawmaterialismostlypost-consumerrecoveredpaper,itisimportantthatweensurethattherecycledproductsweproducecomplywiththeEuropeanRegulationonmaterialsthatcome intocontactwithfood.
SmurfitKappaisactivelycontinuingitseffortstofurtherincreasethesafetyofrecycledpackaging.SpecificallyforfoodpackagingSmurfitKappafollowsbothGoodManufacturingPracticeandhygienestandardssuchas:
nEuropeanfederationofCorrugatedBoardManufacturers(fEfCO)InternationalGoodManufacturingPracticeStandard.
nInternationalfeaturedStandardsIfSfoodversion5asitrelatestopackagingtogetherwiththeIfSPackagingGuidancedocumentfromJune2010.
nBritishRetailConsortium/InstituteofPackagingGlobalStandardforPackagingandPackagingMaterials.
nEN15593,EuropeanStandardinrespectofthemanagementofhygieneintheproductionofpackagingforfoodstuffs.
nISO22000,Internationalstandardforfoodsafetymanagementsystems.
WealsoengageactivelywithintheEuropeanpaperandpackagingassociations,CEPIandfEfCO,todevelopindustryinitiativesandtodefinebestpracticestobeappliedbothinEuropeandLatinAmerica.SmurfitKappahasanexperiencedinternalteamwhichisdedicatedtofoodcontactandfoodsafetyissues.
Barry Smith (l.) and Mark Winkler from Smurfit Kappa Yate, UK.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT201220
OURLONGTERMSUSTAINABLE DEVELOPMENTCOMMITMENTS
Oureffortsonsustainabilityarepartofajourneyofstrivingforcontinuousimprovement.Tomeasuretheprogresswearemakingonthatjourney,wehavedefinedspecifictangibleandmeasurabletargets withincertaintimeframes.
In2010,weadoptedfourlongtermcommitmentswithmeasurabletargetstostateourambitiontobealeadingsustainablecompanyandtoprovidepaper-basedpackagingsolutionsforourcustomersinanenvironmentallyandsociallyresponsiblemanner.
Theselongtermcommitmentsarerelatedto:
nSustainableuseoffibres
nReducingfossilCO2 emissions
nCleanwaterdischarge
nEthicalbusinessconduct
Inthissectionwedescribetheachievementstodate,activitiesin2012,andcurrentandfutureactivitiesrelatedtothesecommitments.
AsmentionedintheLetteroftheCEOonpages6 and7,wehaverecentlymadeourlongtermvisiononsustainabilitypublicinaseparatepublicationcalled‘TheSmurfitKappaVisiononSustainability’(http://www.smurfitkappa.com/Resources/Documents/The_Smurfit_Kappa_vision_on_sustainability_May_2013.pdf).Wehavewidenedthescopeofour longtermobjectivesandcommitmentstoinclude, inadditiontothecurrentlongtermcommitments, anumberofothersustainabledevelopmentissues thatweconsiderimportant.Theseissuesarewastemanagement,waterusage,safetyatworkandourinvolvementinthelocalcommunitieswhereweoperateandwhere,asavaluedcorporatecitizen,wewanttomakeadifferenceforthelocalpopulation.WeintendtoreportinournextSustainableDevelopmentReportontheprogresswearemakinginreachingourobjectivesandtargets.
1. SuSTAiNABlE uSE Of fiBRESThesustainableoriginofrawmaterialisoftheutmostimportanceforus.Sustainablefibreforusmeansfibresthatarecertifiedorareofanon-controversialorigin(seeglossaryonpage95).Wearefullycommittedto
thatprinciple,bothforourvirginfibresaswellas ourrecoveredfibresthatweuseasrawmaterial. Oursustainablymanagedplantedforestsarenot onlyproductive,theyalsosecurebiodiversity (pages30to32).
COMMiTMENT
By 2015:
1. All of our fibres produced or purchased will be from sustainable origin.
2. Over 90% of the paper and board produced will be certified Chain of Custody.
3. Over 90% of our converting operations will operate under a Chain of Custody certification.
Weaimtodeliverpackagingsolutionstoourcustomerscontainingonlycertifiedfibresand/orfibresofnon-controversialorigin.furthermore,atanypointintimeourproductsshouldmeetthecommitmentswemakeinourvariouspolicystatements(forestrypolicy,CodeofBusinessConduct,SocialCitizenshipetc.). Thisconcernsallfibresandfibre-basedproductsweuseormanufacture,whatevertheoriginortheform ofthefibres.
WoodandvirginpulpproducedorpurchasedarepreferablyChainofCustodycertifiedwiththeremainderofnon-controversialorigin.Atotalof55% ofthewoodusedintheSmurfitKappamillsystemforproducingvirginpaperorpulpiscurrentlyChainofCustodycertifiedunderthefSCand/orPEfCschemesand45%isofnon-controversialorigin.ThisstatusisverifiedbyathirdpartyunderthechainofcustodyschemefSCand/orPEfCwiththeexceptionofthe SanfelipemillinVenezuela,duetolocalconditions.
Inadditiontothecommitmentmentionedaboveourfinalaimisthatallthefibre-basedproductswedelivertoourcustomersareChainofCustodycertified.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012 21SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012
Achievements to datenOurColombianforestshavebeencertifiedfSC
since2003.
nThecompleteSmurfitKappapaperandboardmillsysteminEuropeisChainofCustodycertifiedundereitheroneorbothschemeswesupportinEurope(fSCandPEfC).Thisincludesmillsproducingvirginandrecycledcontainerboard,cartonandsolidboard,sackpaperandmachineglazedpapers.Thisissummarisedonpage32andfulldetailscanbe foundonourwebsite.
nInLatinAmerica,ourColombianmillsandconvertingoperationsareChainofCustodycertifiedunderfSC.
nInfebruary2013wereachedourlongtermcommitmenttooperateover90%ofourglobalsystemofconvertingoperationsunderaChainofCustodycertificationscheme.
nAllconvertingoperationsofColombia,MexicoandArgentinaareChainofCustodycertifiedunderfSC.
Activities and results in 2012nIn2012,considerableprogresswasmadeinthe
certificationprocessofconvertingoperationsinbothEuropeandLatinAmerica.Atotalof97newplantsbecameChainofCustodycertifiedduringthecourseoftheyearresultingin88%ofourglobalpackagingoperationsbeingChainofCustodycertifiedaccordingtoeitherfSCand/orPEfCattheendof2012(upfrom44%attheendof2011).
n WecompletedathreeyearcertificationprogrammeforourEuropeanconvertingoperationsinfebruary2013whenthelastofalldesignatedconvertingoperationsin19EuropeancountriesreachedChainofCustodycertifiedstatusundereitherafSCand/orPEfCscheme.
n During2012,allconvertingoperationsinMexico andintegratedconvertingoperationsinArgentinareachedChainofCustodycertifiedstatusunderfSC.
n InLatinAmerica,thethreeMexicanpapermillswereChainofCustodycertifiedunderfSCinfebruary2012.
n Attheendof2012,86%ofpaperandboardproducedinourGroupwascertifiedforfurtherlabellingChainofCustodyaccordingtoeitherPEfC orfSC,upfrom78%attheendof2011.
n Wecontinuedauditingoursupplierstoensurethatnowoodfibreoriginatesfromcontroversialsources.
Current and future activitiesnInfebruary2013wereachedalevelof92%Chainof
Custodycertifiedconvertingplants,enablingusandourcustomerstotracetheoriginofthefibresweuse.
nWeplantostartfSCcertificationactivitiesofourforestholdingsandcertainmanufacturingfacilities inVenezuelain2013.
nInourpublication‘TheSmurfitKappaVisiononSustainability’weintroducedfurthertargetsintheareaofchainofcustodycertification,committingto90%ofourpaperbasedpackagingbeinglabelled asChainofCustodycertifiedunderfSC,PEfCor SfIby2015.
nInMarch2013,thenewEUTimberRegulationbecameeffective.Wehavetakenactionwherenecessaryinourownsupplychainsothatwewill becompliantatalltimeswiththisnewregulation.ThisnewEURegulationisdesignedtopreventillegallyloggedwoodandproductsmadefrom suchwoodfromenteringtheEU.
Smurfit Kappa commitment no1: 100%ofwoodproducts fromsustainableorigin
SmurfitKappaOperations
SmurfitKappa Woodbasedproduct
Externalwood basedproduct
Smurfit Kappa commitment no2: Over90%ofSKpapers COCcertified
Smurfit Kappa commitment no3: Over90%ofSKconvertingoperationsCOCcertified
FoRestRy PAPERPRODUCTIONPULPPRODUCTION CONVERTING opeRations Wood Pulp Paper
Packagingsolutionstocustomers
purchased pulp
Recycled paper
Origin of Fibre CommitmentNo1 appliedtorawmaterial
purchased Wood
purchased paper
(pre-and-post consumer)
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT201222
Our long Term Sustainable development Commitments [continued]
nforovertwodecadeswehavebeenfocused onreducingCO2emissionsfromfossilfuelsrelativetoproduction.forexample,ourNettingsdorfermillinAustriaandourRoermondmillintheNetherlandshaverealisedover30%reductionsinCO2emissionspertonneofpaper.
n Between2005and2012,fossilCO2emissionspertonneofpaperandboardproducedhavedecreasedby15.2%.Thisisillustratedinthegraphonthispagewhichshowstheannualimprovementcomparedtothebaseyear2005.
Activities and results in 2012nIn2012,thetotalCO2 fossilemissionsofour
globalpaperandboardmillsystemdecreasedby3.1%comparedto2011.Thisemissioncomparisonisvolumeadjusted.Inthecourseof2012anumberofenergyrelatedinvestmentswerecompleted,resultinginanotheryearofgoodprogresstowardsreachingourobjectivefor2020.Detailsofsomeoftheseinvestmentsarediscussedbelow.
nInoursackkraftpapermillinNervióninSpain,theinvestmentinalargersteamturbinetoincreasetheproductionofbiomassbasedelectricityhasledtolessusageofelectricityfromthegrid.Theturbinebecameoperationalinthefirstquarterof2012andreductionofCO2 fossilemissionisestimatedtobe14,000tonnesperyear.
nInourkraftpapermillinNavarrainSpain,thebiomassboilerhasbeenrebuiltandisinoperationsinceOctober2012.Directfossil CO2 emissionsareestimatedtodecreaseby22,000tonnesonanannualbasisasaresult ofthisrebuild.
nInourrecycledpapermillinHoyainGermany amulti-yearinvestmentprojectisprogressing.Inafirstphase,thepapermachinewasupgradedin2011,reducingtheuseofenergy.Initialresultsafterthecompletionofthefirstphaseindicateareductionofapproximately7%offossilCO2 emissionspertonneofpaperproducedforthismill.
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FOSSIl CO2 EMISSIOn REDUCTIOn (basis 2005)
pertonneproducedproduct
2. CO2 EMiSSiONSClimatechangeand‘globalwarming’arewidelyseenassustainabilityissuesofhighpriority.Wealsoconsiderthemtobeamongthemostimportantsustainabilityissuesastheyarecloselyrelatedtoourbusiness.Energygenerationveryoftenalsoinvolvessignificantemissionsfromburningfossilfuels.ThereforeourfossilCO2 reductionprogrammeistoalargeextentdirectedatincreasingefficientenergyusageandincreasingtheuseofbiomasswherethatiseconomicallyviable.WehavetakeninitiativesbothinEuropeandLatinAmericatoaddressthissubject.WecontinuouslyinvestinprojectsthatshouldleadtohigherenergyefficiencyandreductionoffossilCO2 emissions.
COMMiTMENT
20% reduction in relative CO2 emissions from fossil fuels in our global paper and board mill system in 2020 compared to 2005 (CO2 emissions defined as direct and indirect CO2 emissions from fossil fuel relative to production).
Achievements to datenWehavebeenswitchingfromfossilfueltorenewable
energywherepossibleandeconomicallyfeasible(PiteåbiomassboilerinSwedeninstalledin2007,newblackliquorboilerinstalledatCaliinColombiain2008,biomassboilercommissionedatCelluloseduPininfrancein2010anduseofbiogasfromthenewand/orextendedwatertreatmentplantsinvariouspapermills).
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012 23SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012
nInourrecycledpapermillinCerroGordo,MexicoCity,ashoepresswasinstalledinthepresssectionofthePM-5increasingthedrynessofsheetsenteringthedryersectionandleadingtoanaveragereductioninnaturalgasconsumptionof14%pertonneofproductproducedonthismachine.Evenwithaproductionincreaseofmorethan4%,thisequatestoanannualisedabsolutereductionof4,300tonnesoffossil CO2 emissions,resultingalsoinlessemissions ofNOx.
nInourrecycledpapermillinBarranquillainColombiatheinstallationofonelargegasturbine,producingbothsteamandelectricityandreplacingolderunits,willleadtoanestimatedreductionoffossilCO2 emissionof13,000tonnesonanannualbasisoncetheunitisfullyoperational.
Current and future activitiesnInourkraftpapermillinCaliinColombiathe
installationofanew,moreefficientlimekilnwascompletedinthefirstquarterof2013.Thenewlimekilnwillusenaturalgasasfuelwhereasthepreviouslimekilnwasusingheavyfueloil.Theuseofmuch‘cleaner’naturalgasshouldreducefossilCO2 emissionsbyapproximately13,000tonnesperyear.
nInourrecycledpapermillinHoyainGermanythesecondphaseofamulti-yearinvestmentprojectiscurrentlyprogressing.ThissecondphasewillincludetheinstallationofanadditionalCHPunitwhichshouldleadto areductionoffossilCO2 emissions.Aftercompletionofthesecondphase,fossilCO2 emissionspertonneofpaperproducedareestimatedtobereduced(includingphaseI) byapproximately13%.
nInourrecycledpapermillinTownsendHookintheUKwewillreplacethetwoexistingpapermachinesbyonenewmachinewithaslightlyhigherproductioncapacity.ThismachinewillhaveanimprovedenergyefficiencycomparedtothetwoexistingpapermachinesandthereforesaveondirectfossilCO2emissions.Thestart-upofthismachineisplannedforQuarter4,2014.
n InourrecycledmillInRoermondintheNetherlands,aprojecthasbeenapprovedtomodifythePM-1intoamedium/lightweightpapermachineandtoincreaseitscapacity. Thechangestothemachinewillresultinmoreefficientuseofenergyandgeneraterelative CO2emissionreductions.
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pertonneproducedproduct
COD DISCHARGE REDUCTIOn (basis 2005)
3. wATERWaterisseenasasustainabilityissueofincreasingimportance.WaterisabundantlypresentonEarth:yet theavailabilityoffreshwaterislimitedandaccording tothefoodandAgricultureOrganisationoftheUNitisdecreasingandunequallydistributed.Waterisalsoacriticalresourceforthepaperandpackagingindustryandafterfibre,wateristhemostimportantnaturalresourceforourbusiness.Aswereturnapproximately90%ofthewaterwetakein,ourspecificcommitmentforwaterandourprimaryinvestmentfocusinthisareaisonthequalityofthewaterthatisreturnedtothepublicwaterbody.TheCODcontentisagoodindicatorforthequalityof thewaterreturned.
COMMiTMENT
Reduce the organic content discharged in the process water (COd) of our mill system by one third by 2020 compared to 2005. The reduction is relative to the organic discharge measured by COd, expressed per tonne of paper.
Achievements to datenInvestmentsinwatertreatmentplantstookplacein
anumberofpapermillssince2005:Alfad’Avignon,CelluloseduPinandRethelinfrance,MengibarandNavarrainSpain,HoyainGermany,RoermondintheNetherlands,SSKintheUK,AniainItalyandBernal inArgentina.
n Since2008ourLatinAmericanmillshavetakeninitiativesresultinginmorethan19%decreaseinwaterintakepertonneofproductproduced.
n Between2005and2012,CODcontentintheprocesswaterdischargedbyourglobalpaperandboardsystemhasdecreasedrelativetoproductionbyover25%.Thisisillustratedinthegraphabovewhichshowstheannualimprovementcomparedtothe baseyear2005.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT201224
Our long Term Sustainable development Commitments [continued]
Activities and results in 2012nIn2012,thetotalCODdischargeofallourpaperand
boardoperationsdecreasedby5%comparedto2011.
nInourrecycledpapermillinAniainItalytheanaerobicstageofthewatertreatmentwasextendedinJuly2012,leadingtoasignificantimprovementofthequalityofthewaterdischarged(seealsopages40and41).
nInourrecycledpapermillinBernalinArgentinathenewlyconstructedwatertreatmentplantwasstartedupinearly2012andisoperatingatfullcapacitysinceApril2012.CODdischargesattheBernalfacilitydecreasedbyover60%in2012comparedto2011.
nInourrecycledpapermillinCaracasinVenezuelabetterfibrerecoveryresultedinadecreaseofapproximatelyonethirdinthedischargeofCOD in2012comparedto2011.
nAttheendof2012,90%ofourpaperandboard isproducedinmillswherebestpracticesareimplemented.Bestpracticeforwatertreatmentincludesatleastonestepwithbiologicaltreatmentbeforedischarging.
Current and future activitiesnThereareseveralinvestmentsinwatertreatment
facilitiesinbothEuropeandLatinAmericawhicharebeingplannedforimplementationinthenextfewyears.
nWearecontinuingourprogrammeofbestpracticeinthetreatmentofourprocesswaterbothinEuropeandLatinAmerica.
4. COdE Of BuSiNESS CONduCTAsamultinationalGroup,overtheyearstheemployeebasehasgrownconsiderablynotonlyinsizebutalsoinculturalandsocialdiversity.Thisdiversitydemandsthedevelopmentandadherencetosharedcorevaluesandbusinessprinciplesintheareaofbusinesspractice,healthandsafety,employeerelations,humanrights,environmentandcommunityinvolvement.TheGroup’scommitmenttotheseprinciplesisconfirmedbyourCodeofBusinessConduct,towhichallofourcompaniesandemployeesalikemustadhere.
TheCodeofBusinessConductissupported,andfurtherexpandedupon,byanumberofpoliciesandstatementsdetailingtheGroup’scommitmenttoexcellenceinourrelationshipswithouremployees,shareholders,customersandsuppliers,andgovernmentalauthorities inthecountriesinwhichweoperate.
COMMiTMENT
To continuously emphasise the importance of the Code of Business Conduct to our employees and to integrate these principles into our day-to-day business dealings.
Achievements to datenEstablishedandimplementedanumberofGroup-
widepoliciesinareaslikeethicalbusinessbehaviour,finance,healthandsafety,environmentandsourcing.
nEstablishedaCodeofBusinessConduct,whichisapplicabletoallemployeesacrosstheGroup.
nAppointedaGroupComplianceOfficerwithanactivereportingroletotheGroupBoard(AuditCommittee).
nIntroducedaGoodfaithReportingPolicyStatement(‘WhistleblowerCode’),whichprovideschannelsforallemployeestoraiseconfidentiallyconcernsinrelationtoperceivedimproperactions.
nSigneduptotheUNGlobalCompactinitiative.
nAuditedourstrategicsuppliersontheircodeofconductprogrammesthroughourSustainabilitySourcingPolicy.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012 25SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012
Activities and results in 2012nASafetyOpinionSurveywascarriedoutinthefirst
halfof2012inallourEuropeanplantstomeasuresafetyconditionsandtoidentifyareasforimprovement.
nHavingbeenbenchmarkedagainstaninternationalpeergroupforbestpracticesandappropriatelyrevised,theCodeofBusinessConductwasapprovedbyourBoardofDirectors.ThenewCodeofBusinessConducthasbeenpublicisedontheGroup’sinternalandexternalwebsites.
nIn2012,aninternalcontrolquestionnairewascompletedacrossouroperations.TheGroup’sCodeofBusinessConductandGoodfaithReportingStatementhavebeendistributedtotheplantmanagementandsupportstaffineveryGroup facility,whichaccountsforabout30%oftheentireworkforce.AllplantgeneralmanagersandfinancialcontrollersconfirmedtheirunderstandingandadherencetotheCodeofBusinessConduct. ThisprocessrequiredwrittencertificationthatallemployeeshadbeenmadeawareoftheCodeofBusinessConductandWhistleblowerCodeand thatanyknownorsuspectedviolationshadbeenreportedappropriately.
nIn2012,anawarenesscampaignandtrainingprogrammewasundertakeninallourGermanoperations.
n EverylevelofmanagementthroughouttheGrouphasaresponsibilitytomonitorandenforcetheGroup’sguidelinesonCompetitionPolicy.Approximately900managingandsalesdirectors,salesmanagersandotherseniormanagementacrosstheGroupconfirmedtheirunderstandingoftheGroup’szerotolerancepolicywithregardtoanti-competitivebehaviour. Theprocessrequiredwrittencertificationfromeachmanagerthathe/shehadnotbeenengagedin, norwasawareof,anysuchactions.
nAnewGroupfoundationforCSRco-investmentactivitystarteditsinitiativesin2012andapprovedparticipationintwoprojectsinIrelandandone inColombia.
Current and future activitiesnTheCodeofBusinessConductisorwillbemade
availableintherespectivelanguagesonthevariousnationalwebsitesoftheGroup.
nfollowingagreementonthenewCodewiththerespectiveWorksCouncils,anawarenessprogrammewillbeimplementedgroup-wide.
Ida Ferrière, Christophe Camin and Joël Cazenave – Smurfit Kappa Cellulose du Pin, France.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT201226
enviRonment
Respectingthenaturalenvironmentinwhichweoperate ispartofouroverallmission.Theworldisfacedtoday withanumberofglobalenvironmentalchallengessuchasdeforestation,climatechange,energyconsumption,watershortagesandwaterqualityandbiodiversityloss.Wearedealingwiththeseissuesinourownoperationseveryday. Weareforestowners,usersofwoodandpaper,and inneedofsignificantamountsofenergyandwaterforourproductionprocess.Wearecommittedtooperateinanenvironmentallyprogressivemanner,whichisoneofourmainprinciplesunderlyingsustainability.Whileweaimtominimisetheimpactouractivitieshaveontheenvironmentasmuchaswecan,ourprinciplefocusisonthoseareaswhereouractivitiespotentiallyhavethelargestimpact.Theseareasaretheuseoffibresandtheuseofwood,theuseofenergyandfossilCO2emissionsandtheusageanddischargeofwater. Asforestownerswepracticesustainableforestrysupportingbiodiversity,asusersofwoodandpaperfibresweguaranteethesustainableoriginofourrawmaterialsandasusersofenergyandwaterweinvestcontinuouslyinmakingourprocessesmoreenergyandwaterefficient.
1. SuSTAiNABlE uSE Of fiBRESAlmostallofthepackagingproducedbySmurfitKappaismadefrompaper.Inthissectionweexplainhowourproductscontributetowardssustainability,howweusebothvirginandrecycledfibresandouroverallsustainableuseoffibres.
Efficientpackagingsolutionscontributesignificantlytothesustainabilityofthetotalsupplychainofgoods.Packagingnotonlyprotectsproductsduringtransit,itoftenhelpstopreservetheproduct,carriesimportantproductinformationforconsumersandprovidesmarketingopportunitiesforbothmanufacturersandretailers.
Paper-basedpackagingisaveryenvironmentallyfriendlyformofpackagingastherawmaterialcomesfromrenewablesourcesandtheendproductisfullyrecyclable.
AmajorpriorityofSmurfitKappaistoprovidecustomerswithsustainableandefficientpaperpackaging.Virginorrecycledpapersarethemostsustainablechoicedependingonuserrequirementsandthesupplychainspecifics.
Recycled pulp produced internally
Wood pulp produced internally
Purchased virgin pulp
Virgin paper purchased
Recycled paper purchased
1%
16%
6%
19%
58%
Fibre origin 2012All OPERATiONS
0
20
40
60
80
100
PlasticGlassMetallicPaper &Cardboard
8483
6969 72 68
3332
2009
2010
Packaging Recycling Rate in EU (%) 2010
Source: Eurostat
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012 27SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012
Dirk Schneider (l.) and Alexander Heidland (r.) from Smurfit Kappa Zülpich, Germany.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT201228
Environment [continued]
Aswoodfibresdegradeeverytimetheyarerecycled, afreshvirginfibreinflowintotherecyclingsystemisrequired.Thelengthofawoodfibreisshortenedduringeverycycleandafteracertainnumberofcycles,theoriginalfibreistotallydegraded.Therefore,virginfibre isconstantlyaddedtothesystemtocompensateforthelossofdegradedfibre,archivalstorageofpaper,andthelossthroughnormaluseanddisposalofcertainpaperproducts(e.g.tissues).
Paper-basedpackagingisalmosttotallyrenewableandrecyclable.TherecyclingrateforpaperandboardpackagingwithintheEU’s27memberstatesfor2010,whichisthelatestyearforwhichofficialEurostatstatisticsareavailable,was83.5%(seegraphpage26)thusshowingthatpaper-basedpackaginghasahigherrecyclingratethananyotherpackagingmaterial.
ChainofCustodycertificationwillhelpustoensurethatthenaturalresources,whichweneedanddependupon,areresponsiblymanagedandthatwecanprovideourcustomerswiththesustainablyproducedproductsthattheyrequire.
use of virgin fibresTypicalproductscontainingvirginfibresarewood, virginpulpandcertaincategoriesofpaperandboard.
Lessthan16%ofthewoodweusefortheproduction ofvirginfibresoriginatesfromourownforests.Wethereforeensure,togetherwithourexternalsuppliers,thatthesupplyofwoodisfromsustainableorigins andthatoursuppliersimplementstrictpoliciesformonitoringtheoriginofwoodfibresthusensuringtheprotectionofnaturalresourcesinthecountriesfromwhichwesourcethem.Thepoliciesinplacearebased onforestcertificationsystems.
Bothourownforestoperationsandourwoodpurchasingpracticesarebasedontheprinciplesofenvironmentallycompliantforestmanagementschemes.In2007, wecommittedtoaprogrammeofChainofCustodycertification,givinginitialprioritytoouroperations whichhandlewood.Wehaveextendedthismanagementsystemtoourentiremillsystem(bothvirginandrecycledpaperandboard)andtoourpackagingoperations.
WeareboththelargestproducerofvirgincontainerboardinEuropeaswellasinthosecountriesinLatinAmericawherewehavevirgincontainerboardproductionfacilities.69%ofthevirgincontainerboardusedforthemanufacturingofpackagingisproducedinternally:theremainderispurchasedfromthirdparties.Throughaverificationprogrammewithexternalsuppliersweensurethatthesupplyofvirginpaperiseithercertifiedorisof non-controversialorigin.
Thetargetsinourlongtermsustainabledevelopmentcommitmentrelatedtosustainableuseoffibresshow ourdrivetoapplytheprinciplesdescribedinthisarea.
OurSustainableforestrystatementandourSustainableSourcingpolicyareavailableatourwebsiteanddescribeourcodesofconductwithregardtoallsuppliesofwoodproducts,whethercomingfromourownforestsorpurchasedfromthirdpartysuppliers.
use of recycled fibresIn2012,forourmanufacturingoperationsinEurope,75%ofourfibrousrawmaterialscamefromrecycledfibres.Thisfigureequatedin2012forourmanufacturingoperationsinLatinAmericato67%.
Weconsumeover5.1milliontonnesofrecoveredpapereachyear.Ofthisfigure,4.3milliontonnesareinEuropeandmostofthisissuppliedthroughourownrecoveryandrecoveredpapersupplysystemwhichmakesustheclearindustryleaderinthisregard.Over70%ofourLatinAmericanneedsarealsocollectedwithinourownsystemorsecuredthroughcontractswiththirdpartysuppliers.Thepie-chartonpage26indicatesthesourceoffibresusedinouroperations.
Sustainable fibres - Our approachSmurfitKapparecognisesandutilisestheforestryStewardshipCouncil(fSC),theProgrammefortheEndorsementofforestCertification(PEfC)andtheSustainableforestInitiative(SfI),thethreemajorinternationalforestcertificationbodiestoqualifythewoodandthevirginfibrebasedproductswepurchase aswellasthepaper,boardandpackagingweproduce inouroperations.
TheChainofCustodycertificationprocesswehaveimplementedinouroperationsensuresthatassessmentsareperformedregularlybyindependentaccreditedorganisations,providingassurancethatthewoodandfibreswesourceexternallyoriginatefromsustainableandwellmanagedforestsandarelegitimatelysourced.Thiscertificationprocessisimportantforourownoperations,ourcustomersandoursuppliers.
OurultimateaimistoreachChainofCustodycertificationforallofourrelevantoperationsandforalltheproductswedelivertoourcustomers.Thisshowsourcommitmenttoasustainablemanagedsupplychainrangingfromsustainableforestmanagementpractices todeliveringChainofCustodycertifiedproductsto ourcustomers.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012 29SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012
Forestry
SmurfitKappaownsandmanagesapproximately105,000hectaresofforestsinColombiaandVenezuela.Theseplantationsprovideourmillsinbothcountrieswithalmostalloftheirvirginfibrerequirements.
Wemanageforestholdingsbasedonoursustainabledevelopmentprinciples,promotingeconomicgrowth,aresponsibleuseofnaturalresourcesandfosteringsocialequityintheregionswheretheforestplantationsarelocated.
SmurfitKappa’slargestforestplantationsareinColombia.Here,wehaveapproximately69,000hectares,including6,400hectaresinpartnershipswithprivatelandowners.Thisareacomprisesover44,000hectaresofcommercialplantations,approximately22,000hectaresofprotectednaturalforestandjustover3,000hectaresforinfrastructure.Ofthecommercialplantations,60%arepines,39%Eucalyptusand1%dedicatedtoforestryresearch.WeoperateourColombianforestholdingsunderamanagementsystemthathasbeencertifiedinaccordancewiththefSCsince2003.
InVenezuela,weownapproximately35,000hectaresinthreewesternstatesofthecountry.Ofthistotal,21,000hectaresarecommercialplantations,13,000hectaresarenaturalreservesandthebalanceisgivenovertoinfrastructure.Commercialplantationsinclude12,600hectaresofshortfibre(EucalyptusandGmelina)while6,400hectaresarelongfibrefrompine.Thebalanceisusedforresearchanddevelopmentsuchassilviculture,plantationmanagement,forestprotectionandforestryresearch.
TheforestplantationsinVenezuelahavenotyetbeencertifiedbutarewelladvancedintermsofbestpractice.WeplantostartfSCcertificationactivitiesofourforestholdings in2013.
ThemainspeciesharvestedinbothcountriesarevarietiesofEucalyptusandpine.
Duringtheplantationlifecycle,SmurfitKappaconformstothenumerousgovernmentallegal,technicalandenvironmentalregulations,forwhich,inmostcases,annualpermitrenewalsarerequired.
ENGAGEMENTWITHSTAKEHOLDERS
Russia: Sustainability important ingredient in Russian partnershipDmitry Zylev, GeneralDirectorofArkhangelsk
“ArkhangelskPulpandPaperMillhasprovidedtheRussiancorrugatedoperationsofSmurfitKappasincethe1990swithkraftlinerandfluting.Theserawmaterialsareusedfortheproductionofcorrugatedpackaging.Thelong-lastingrelationshipbetweenthetwocompaniesgoesbeyondtheproductlevelandalsoemphasisesthefocusoncorporatesustainability.
Arkhangelsk’smainactivitiesaretheloggingandtheprocessingofwoodintopulpandpaperproducts,suchascardboard,cellulose,andpaper.Arkhangelskisoneofthemainproducersofkraftliner inRussiaandanimportantsuppliertoSmurfitKappainRussia.
ArkhangelskissupportingSmurfitKappainitsendeavoursforsustainability.In2006,ArkhangelskwasthefirstamongRussia’spulpandpapercompaniestooperateunderthefSCtrademark. InMarch2013thescopeofthefSCcertificationwasexpandedtoincludealsokraftlinerandfluting.Inaddition,anumberofitswoodsuppliersareoperatingundermanagementsystemscompliantwithfSCrequirements.Arkhangelskaimstoreducetheadverseimpactontheenvironmentofitsactivitiesincludingthepreventionofpollution.ArkhangelskisamemberoftheEcologicallyResponsibleTimbermenofRussia,whichisapartoftheGlobalforestandTradeNetwork(GfTN),establishedundertheumbrellaoftheWWf.
Arkhangelskisalsoadheringtosustainablesocialprinciples. Asthelargestenterpriseinitsregionitisawareoftheexclusiveroleithastofulfilinboththesocialaswellastheeconomiclife ofitslocalcommunity.Itdoessobysupportingprogrammesthatshouldensureitsintegrationinthelocalandregionalcommunities.Arkhangelskalsoplaceslabourrelationsatthecore:employeesareemployedstrictlyincompliancewithregulations,withaveragepaywellabovetheaveragefortheregionandwithattentiontoandinvestmentsinoccupationalsafety.
ArkhangelskislookingforwardtocontinuingitscooperationwithSmurfitKappanotonlyasasupplierbutalsoinsharingthesameprinciplesonsustainability.”
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT201230
Environment [continued]
Paper and Board production
WiththeexceptionofourSanfelipemillinVenezuela, allourwoodhandlingoperationsareChainofCustodycertifiedbyfSCorPEfC.Theseincludeallourmillsproducingvirginfibresandourwoodsupplycompanies infranceandSpain.
OurcompletepaperandboardmillsysteminEuropeisChainofCustodycertifiedsinceearly2011.Thismillsystemconsistsofmillsproducingvirginandrecycledcontainerboard,cartonboard,solidboard,sackpaperandmachineglazedpapers.OurEuropeanmillsarecertifiedbothforfSCandPEfC.
CertificationofourpaperandboardmillsinLatinAmericaisprogressingwithfSCChainofCustodycertificationofallpapermillsinplaceinColombiasince2009andinMexicosinceMay2012.OurtwopapermillsinArgentinaaretobecertifiedbytheendof2013.
Packaging operations
ChainofCustodycertifiedpackagingguaranteesourcustomersthatonlysustainablefibresareusedintheirpackaging.forvirginpapers,thismeansthatfibresoriginatesolelyfromsustainablymanagedforestsand, forrecycledpaper,itmeansthatasignificantamountofpost-consumerrecoveredpaperisusedasrawmaterial.Theentiresupplychainistraceabletoprovethistoourcustomers.
In2009,weinitiatedaprogrammeinourpackagingoperationstosupplycustomerswithChainofCustodycertifiedproducts.Ourtargetistobeabletooffercertifiedpackagingtoallourcustomersfromallourpackagingproductionlocations.
Considerableprogresshasbeenmadeduring2012andinearly2013,wereachedalevelof92%ofourpackagingoperationsinEuropeandLatinAmericabeingChainofCustodycertifiedfSCand/orPEfC.Thissurpassedthetargetedlevelof90%inourlongtermsustainabledevelopmentcommitmentforthesustainableuseoffibres(pages20and21).
Overview of certification in place at end of 2012
Thetableonpage32givesadetailedoverviewofourpapercapacityoperatingunderChainofCustodycertificationpergradeofpapertogetherwiththenumberofconvertingoperationsalsounderChainofCustodycertification.
ThefirsttwosectionsofthetablegivethepercentageofourpaperorboardproductioncapacityoperatingwithChainofCustodycertificationwhilethelastcolumnreportstheexactpercentageofthepaperorboardthatcanbesoldasChainofCustodycertified.ThisinformationisprovidedbytypeofpaperandboardproducedinbothEuropeandLatinAmerica.
Thesepercentagesreflectthesituationattheendof2012.Tosimplifythecalculation,whereamillobtainedthecertificateduringtheyear,theannualproductionofthemillistakenintoaccountforcalculatingthepercentage.
Thethirdsectionofthetablerelatestothepackagingoperations.Herethenumberofsitesoperatingwith ChainofCustodycertificationisreportedandthesecondcolumngivesthepercentageofsiteswithChainofCustodycertification.
Suppliers
Tomakefurtherprogressinthecertificationofourproducts,in2012wecontinuedourverificationprogrammewithexternalpapersupplierstoensurethat,asaminimum,allvirginfibrescontainedinthesuppliedpapersorboardareofnon-controversialoriginandarepreferablyChainofCustodycertifiedunderPEfCand/orfSC.Thisverificationprocessincludesallourexternalpapersuppliersandisbasedonphysicalaudits.Attheendof2012,79%ofallourexternalvirginsupplies inEuropewerefSC,PEfCand/orSfIcertifiedorhavePEfCand/orfSCcontrolledwoodstatus.InMarch2013,thispercentageincreasedto95%.Theremaining5%ispurchasedthroughagentsthatarenotcertified.However,themajorityofthat5%hasacertifiedoriginwhilethebalanceisfromnon-controversialorigin.
BiodiversityInColombia,31%ofourtotalforestareaisprotectednaturalforest;inVenezuela37%ofourtotalforestarea isprotectednaturalforest.Theseprotectedpartsofourforestsarekeptasnaturalforestandarenotreplacedbyplantations,thusmaintainingbiodiversity,preservingwatershedsandhelpingtoconservenaturalhabitats.
TheguidingprinciplesoftheGroup’sforestrypolicyinLatinAmericaareto:
nDevelopcontinuouslyandsystematicallyresearchprogrammestopreserveandenhancesoilproductivity.
nIdentifyappropriatespeciesandforestrypracticesthatwillenableanincreaseinplantationyieldswhileprotectingtheenvironment.
nConservenaturalforestslocatedoncompanylands toensurethesustainabilityofforestdiversityandtherebycontributetotheprotectionofwatersourcesandhabitatoffloraandfauna.
InColombia,wearecontinuouslyinvestinginresearchprojects,frequentlyincooperationwithotherresearchinstitutesasthefollowingexamplesshow.
TogetherwiththeNationalCentreforCoffeeResearch(CENICAfÉ)weworkedonthepotentialcarbonsequestrationcapabilitiesofthepineandEucalyptusspeciesplantedbySmurfitKappa.The“3Cfix”(CartóndeColombiaCarbonfix)modelwasdevelopedandcarbonsequestrationfiguresareavailablesince2007.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012 31SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012
In2012,thecombinedgrowthofpinesandEucalyptusinourColombianplantationsabsorbedsome1.1milliontonnesofCO2 fromtheatmospheretherebyfixing300,000tonnesofcarbonwithinit.Thewoodharvestedinthesameperiodcontainedapproximately276,000tonnesofcarbon,givingapositivecarbonbalanceofover24,000tonnesofcarbonoritsequivalentof88,000tonnesofCO2.
Since1969,whenwebeganourforestryactivityinColombia,wehavecommittedtoprotectallnaturalforestslocatedinourexpandinglandholdings,respectingtheexistingbiodiversityinbothtypes offorests.
Inordertoeffectivelyprotectandpromoteconservation,since2009wehavebeenworkingwithtwolocaluniversities(CaucaandQuindío)onstudiesofthefloraandfaunapopulationsinourprotectednaturalforeststhatarewithinorsurroundtheplantedforests.Thesestudiesfocusonmammalsandbirds.
Apartfromtheobjectiveofidentifyingtheexistenceofthespecies,wefocusedondeterminingwhichspecieswerecategorisedasendangeredbyinternationalorganisationssuchastheInternationalUnionforConservationofNature(IUCN).
Attheendof2012,wecompletedasecondstudy ofourforestholdingsinQuindíotogetherwiththelocaluniversity.fournewendangeredspecieswereidentified.Attheendof2012andoverthepast fouryearswehaveidentified1616species:905areflora,631birdsand80mammals.Ofthese,26areendangeredtosomedegreeaccordingtoIUCNcategorisation:12speciesofflora,9birdsand5mammals.fromthisresearchitisclearthattheforestplantationsandtheneighbouringprotectednaturalforestformimportantwildlifecorridorswhichcontributetospeciesconservationintheAndeanecosystem.
Theresultsofthisstudywerepresentedinour 2012calendar,whichhada40,000unitprintrun andwassenttoallourstakeholders.Wehavealsopublishedthreehandbooksonthestudyfindings.Theobjectiveofthesehandbooksistopromotespeciesconservationthroughobservationandidentification.Thesehandbookshavebeendistributedtosurroundingcommunitiesandmanagersofourforestryfarms.
ENGAGEMENTWITHSTAKEHOLDERS
Colombia: universityGuillermo Vásquez Velásquez AssociateProfessor,forestHydrology andWatershedManagement NationalUniversityofColombia(MedellínCampus)
“Therelationshipbetweenplantationforestryandwaterresourceshasoftenbeenacontroversialone.Scientificresearchconductedovertimeneverseemstobeable tosatisfybothadvocatesandopponents,sincetheconditionssurroundingeachplantationaretoounique togeneralise.IntheColombianAndes,SmurfitKappamanages45,000hectaresofplantationforests.ThesecommercialforestsareoftensituatedclosetourbanconcentrationsandconsistoffastgrowingspecieslikePineandEucalyptustrees.Thelandscapeischaracterisedbyaveryhumidclimate,soilssusceptibletoerosionandsteepterrain.Morethan550watercoursesoriginateinSmurfitKappa’sareaofmanagement.Thesestreamssupplysmallfarmsandmedium-sizedmunicipalities withwater.Mountainwatershedsintheregionusedto beemployedforgrazingcattle,butnowtheyhavebeenconvertedforuseinforestplantations.InordertodeterminetheinfluenceofcommercialforestplantationswithregardtothehydrologicalresponseofsmallwatershedsintheColombianAndes,boththeforestrySciencesDepartmentoftheMedellinCampusoftheNationalUniversityofColombiaandtheforestResearchDepartmentofSmurfitKappainColombiaestablishedapartnershiptodeveloparesearchprogrammeinforesthydrology.Sinceitsinitiationin2011theresearchprogrammehasbeenvisitedbymanyinternationalexpertsinthisfieldandhasbroughttogetherresearchers,students,politicians,farmersandenvironmentalistsinterestedintheprotectiveeffectofplantationsonwaterresources.Asaresulttheprogrammenotonlycontributestopracticalenvironmentalsolutions,butitalsohelpsatanacademiclevelinthesearchforhydro-solidarityandsocialsustainabilityintheColombianAndes.”
Professor Vasquez checking a pluviometer (rain gauge) in one of the forestry areas being researched.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT201232
Environment [continued]
Additionally,in2012wehadmeetingswithbothemployeesandcustomers,toshareinformation aboutthewiderangeandsignificantimpactofoursustainabilityactions.Apartfromthesemeetingsthereisalsoafrequentdialoguewithotherstakeholdergroupsinterestedinouractionsrelatedtoforestryandbiodiversity.forestrystudiesareactivelypromoted,wehavebeeninvolvedinnumerouspublicationsonforestryresearchontopicsrelatedtosilviculture,treebreedingandforesthealthforEucalyptusaswellastropicalandsubtropicalpinesoverthepastdecades.
InEuropewehaveidentifiedwhichofouroperationsareeitherwithinorincloseproximitytolegallyprotectedareasorareasofhighbiodiversityvalue.Wearetakingnecessarystepstoensureboththeenvironmentalprotectionandthesustainabilityofthesesensitiveareas.
ElevenofourEuropeansitesarelocatedwithinoradjacenttoareasthatarepartoftheNatura2000whichisanecologynetworkofprotectedareasintheterritoryoftheEU.TheNatura2000networkhasbeencreatedthroughEUlegislationin1992protectingthemostthreatenedhabitatsandspeciesacrossEurope.
Tenothersitesareadjacenttoorwithinareasprotectedbynationalorlocallegislation.Additionally,fourofouroperationsdrawfromordischargewatertowatershedsthatareprotectedorclassifiedassensitive.
Thelistcontainingthenamesandlocationsofthesesitescanbedownloadedfromourwebsite.
SMuRfiT kAPPA MillS ANd CONVERTiNG PlANTS CERTifiEd CHAiN Of CuSTOdy uNdER PEfC OR fSC OVERViEw SMuRfiT kAPPA CERTifiCATiON AT ENd 2012
VIRGIn PAPER
Production Ktonnes
Production capacity with
CoC certification
% certified paper
EUROPE
Kraftlinerproducts 1,485 100% 79%
Othervirginpapers(sackpaper,MGpaper) 252 100% 41%
lATIn AMERICA
Kraftliner,printing&writingpaper,SCfluting 294 90% 90%
RECyClED PAPER & BOARD
Production Ktonnes
Production capacity with
CoC certification
% certified paper
EUROPE
Containerboard 2,934 100% 100%
Solidboard&cartonboard 869 100% 94%
lATIn AMERICA
Containerboard 640 69% 53%
Cartonboard 131 73% 28%
PACKAGInG
number of sites certified
Percentage site with CoC
Certification
EUROPE
Corrugatedpackaging 164 90%
Solidboardandcartonboardpackaging 9 100%
lATIn AMERICA
Corrugatedpackaging 19 70%
Cartonboardpackaging 2 67%
PaperSacks 4 80%
Thirty six years of forestry research at Smurfit kappa Cartón de Colombia
for36yearstheforestryResearchDepartment(“fRD”)hasbeenessentialforthedevelopmentoftheforestrydivisionofSKCC.Thisdepartmenthasevolvedinthreemainareas.
Tree breeding and genetic improvement research programme:ThefRDfocuseditsearlyeffortsontheintroductionandtestingofseveraltreespeciestosourcefibresforthecompanyproducts.Aseriesofprogenytestswereestablishedtocompareamongthedifferentspecies.Geneticimprovementisbasedonclonalforestryforeucalyptusinwhichthebesttreesareselectedandpropagatedthroughrootedcuttingsofthesametree;andfamilyforestryforpines,inwhichthebestseedlingsareobtainedthroughclosedoropenpolarisationoftheoutstandingtrees.Nogeneticmodificationpractices areused.
Silviculture and Productivity (S&P) research programme:Withtheacquisitionofthefirstfarms,newchallengesappearedsuchas,howmanytreestoplant,howtopreparetheland,whenandhowoftentocontroltheweedsandhowtosupplyadditionalnutrientstopreserveoramplifythegrowthpotentialobtainedthroughgeneticimprovement.
TheS&Presearchprogrammehasdevelopedthreecomputerisedapplications:(i)SMURFERC establishment,forcalculatingandoptimisingtheamountoffertiliserrequiredforplantingeachofthesixworkingspeciesinthe64differentsoilunitspresentinourlandholdings;(ii)SMURFERC maintenance,thatmakesitpossibletodetermine,throughfoliaranalysisatanearlystageinpineandeucalyptusplantations,thenutritionalstatusandgrowth,togeneratenutritionalmanagementsoptions;and(iii)CartóndeColombiaCarbonfixationProgrammeor3Cfix,anapplicationthatallowstheforestrydivisiontocalculate,withlocalgrowth-draincalculationsandphysiologicalindices,thecarbonfix andstocksoftheplantations,onayearlybasis.
Phytosanitary protection research programme:Asthenatureofourforestholdingschanged,thedifferentspeciesoftreewereexposedtoamorevariablesetofenvironmentalconditions.Overtime,variousdiseasesandpestsappeared,givingrisetoconcernsoverforestproductivityandfibrequality.Thephytosanitaryprotectionresearchprogrammewasstartedin1988 withtheaimofsolvingtheseproblems.Ithasthreemainworkingcomponents:training,prevention,anddisease &pestriskmanagement.
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2. EffiCiENT uSE Of ENERGy ANd CARBON MANAGEMENT
Towards a low carbon economyIn2011,theEUpublishedroadmapstowardsacompetitivelow-carboneconomyby2050anditsenergyroadmap.Togetherwithotherpolicydocuments,overtimethiswillleadtoanewEuropeanclimatechangeandenergypackage.TheoutcomewillbecrucialforSmurfitKappaandourindustryasouroperationsareaffectedbyallthese(future)policies.ItisclearthattheEUcanmeetitsobjectivesinthisareaonlyifthereissufficientbiomassavailability.CurrentlyourindustryisthelargestuserofbiomassinEurope.Ourproductsare,althoughtoalargeextentmadefromrecycledmaterial,ultimatelybiomassbased.Ourindustryisalsothelargestandmostefficientgeneratorofenergybasedonbiomass.Thisisrealisedthroughtheextensiveuseofbiomassboilersthataremainlyfuelledbybiomassresidualssuchas bark,sawdust,thinningsandstumps.Since2010we havemadesignificantinvestmentsinbiomassboilers inNavarrainSpain,andasteamturbineinNervióninSpain.Althoughmostoftheseboilersareconnectedtotheproductionofpulpandvirginfibrebasedpaper,inseveralcountriessuchasSpainandfrance,governmentsaresupportingenergyandfossilcarbonsavingprojectsconnectedtorecycledpapermills.SmurfitKappasupportsandactivelyparticipatesinsuchprojects.
90%ofourfuelconsumptionconsistsofeitherrenewablefuel(biomass)ortherelativelylowCO2-emittingfossilfuelnaturalgas.In2012,42%ofallenergyusedwasbiomassbased.
Combatting climate change
Investing in efficient energy generation
CombinedHeatandPowergeneration(CHP)isthemostefficientmethodofproducingelectricityandheat(steam).Ourindustryisverysuitedtoinstalltheseco-generationunitsgivenourneedforbothelectricityandsteam.In2012,theproportionofourenergycomingfromCHPinstallationswasunchangedfrom2011.ThisistheresultofpositiveeffectsfromtheinstallationofnewCHPinstallationsinafewmillsandthenegativeeffectsofcertainexistingCHPinstallationsthatoperatedforvariousreasonsbelowtheirperformancelevelof2011.
OurNavarramillinSpainwasoneofthepapermillswhereweinvestedin2012inaboiler.Thegratefiredbiomassboilerhasbeenrebuilttoabubblingfluidisedbedboiler,resultinginthepossibilityofgenerating100%ofthesteamcapacitybybiomassinsteadof50%beforethere-build.Thisre-buildalsoresultedintheidlingofarelativelysmallgasfiredboilerwhichmeansthatallsteamnowpassesthesteamturbinebeforebeingusedinthemill,therebyincreasingtheCHPratiofor thismill.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT201234
Environment [continued]
Anotherexampleistheinvestmentinalargerturbine inourrecycledpapermillinBarranquillainColombiareplacingtwosmallerones.Beforetheinvestment,electricitywasgeneratedbythesetwogasturbineswithoutrecoveringthewasteheat.Thenewturbine alsohasawasteheatrecoveryunitinstalledwithitandthereforetheamountofelectricitygeneratedthrough aCHPinstallationhassignificantlyincreased.
InourrecycledpapermillinBarbosa(Colombia)awasteheatrecoveryboilerhasbeeninstalled.Thisboiler,whichisnowoperatingasastand-aloneboiler,willbecomepartofaCHPunittherebyincreasingtheamountofelectricitygeneratedthroughaCHPinstallation.
OurrecycledpapermillinBirminghamintheUKinstalledamotorthatisfuelledbybiogasgeneratedintheon-sitewastewatertreatmentfacility.Themotoralsohasawasteheatrecoveryunitinstalledwithit.Previously,thebiogaswasburnedinasteamboiler.Thisalternativeuseofthebiogasresultedinmoreelectricitygeneratedby aCHPinstallationthanbefore.
Investing in energy reduction initiatives
In2011,weconcludedaninternalstudythatgenerated anoverviewofall(theoretical)possiblesavingsonenergyneedsandfossilCO2 emissionsperpapermill.InthatstudyallourEuropeanandLatinAmericanpapermillswereanalysed.for2013weplantoanalyseourboardmills aswell.ThelistofenergyandCO2 savingopportunitiesresultingfromthisstudyformsthebasisforenergyandCO2 reductionrelatedinvestmentsinthecomingyears.MostidentifiedprojectstoreduceenergyuseandfossilCO2 emissionsarepartoflargerinvestmentswhichwill beexecuteddependingontheireconomicfeasibility.
In2012,severalinitiativestoreducetheuseofenergywereapprovedand/orexecutedasthefollowing examplesshow.
Asshownonpage37,atourrecycledpapermillinHoya inGermany,wehaveinvestedinthepapermachinesince2011,notonlytoexpandthecapacitybutalsotoreduceenergyusage.forexample,afilmpresswasinstalledin2011,leadingtohigherenergyefficiency.Anothermodificationmadetothepapermachinein2012was theinstallationofaheatrecoverysysteminthehood,replacingsteambywasteheat.Lessenergyisnowneededtoevaporatethewatercontainedinthepaperduringproduction.
Anotherexampleofenergyreductionistheinstallationof ashoepressinoneofthepapermachinesatourrecycledpapermillInCerroGordoinMexico(seepage36).
In2012,theenergyintensityonapertonnebasisofourpaperandboardproductiondecreasedby3.5%comparedto2011.
Alsoinourconvertingoperationsmanyinitiativestoreduceenergyusagearetaken.Examplesofsuchinitiativescanbefoundonpage38.
Energy,CO2 emissionsandotherairemissionsrelateddataarereportedforallouroperations(includingdetailsforindividualmillsinEuropeandLatinAmerica)inthetablesonpages78to84.Thosetablesreportenergyconsumptionfortheproductionofthepaperorboardmanufacturedwhilethetwoinput/outputtablesonpage76(Europeanoperations)andonpage77(LatinAmericanoperations)reportthetotalenergyconsumptionofthesite,takingintoaccountthefuelsusedtoproduceelectricityand/orthermalenergysoldexternally.Themethodsappliedforcalculationsaswellasdetailsonspecificdefinitionsaregivenintheglossaryonpages94to96.
Investing in fossil CO2 emission reductions
OurtotalfossilCO2 emissions(directandindirect)decreasedin2012by63,000tonnescomparedto2011.Comparedto2009,ourtotalfossilCO2 emissionshavebeenreducedby218,000tonnesrepresentingadecreaseof6%.Thereductionin2012hasbeenachievedbyloweremissionsbythemillsystemsbothinEuropeand LatinAmerica.
ExamplesofmillsinEuropethatcontributedtothisreductionareHoyainGermany(heatrecoverysystem),NervióninSpain(installationofanewsteamturbine)andNettingsdorferinAustria(shiftfromtheuseofheavyfueloiltonaturalgasinthelimekiln).
forLatinAmerica,CO2 emissionreductionswereachievedbyCerroGordo(installationofashoepress),Barbosa(installationofa(wasteheat)boilerusingnaturalgasandreplacingcoal)andBarranquilla(installationofaCHP).
HistorictrendsinthefossilCO2 emissionsforbothEuropeandLatinAmericaareshowninthegraphsonnextpage.
Toreachthetargetof20%reductionoffossilCO2 emissionsrelativetoproductionby2020therearepotentialprojectsidentifiedintwomainareas.firstly,projectsthatwillreducetheneedandusageofsteaminthepapermachines,andsecondlythosethatwillbringmoreefficientuseoffossilfuels,mainlybyadditionalinvestmentsinCHPcapacity.ThesepotentialadditionalinvestmentsinCHPinstallationswilldecreaseCO2 emissionsinSmurfitKappaandwillalsocontribute toafurthershifttobiomassusageasfuel.
7%
42%
3%
48%
Natural Gas Coal
Other fossil fuels Biofuel
Direct fuel consumption 2012All OPERATiONS
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012 35SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012
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ENGAGEMENTWITHSTAKEHOLDERS
CdPFrances Way Co-ChiefOperatingOfficerProgrammes CarbonDisclosureProject(CDP)
“CDPisanindependentglobalcharitythatworkswithinvestors,companies,andgovernmentstodriveenvironmentalactionthatwilldeliverasustainableeconomy.Wewerefounded12yearsagowithafocus oncatalysingcorporatetransparencyfromtheworld’slargest500companiesontheircarbonemissionsandenergyuse.Asaresultnowmorethan4,100ofthelargestlistedcompaniesacrossmostofthemajoreconomiesdisclosetheirclimatechangeimpactsandstrategiesthroughCDP.Wealsohaveasupplychainprogrammetoallowmajormultinationalpurchasingorganisationstomanageclimaterisksacrosstheirglobalsupplychains.Besidesclimatechangewearenowalsoworkingonwaterandforestsprogrammes.Energy,water,climatechangeandforestsareintrinsicallylinked.Theimpactsoftheseissuesgobeyondthedirectoperationsofacompany.SmurfitKappahasbeenreportingtoCDPonclimatechangesince2008.In2012SmurfitKappa’semissionsreportingwasofgoodqualitywithbreakdownsprovidedbycountry,facilityandbusinessdivision,whichmakesitpossibletofocusonreducingthoseemissions.Emissionsreductionswereachievedthroughspecificreductionactivities.ClimatechangeisintegratedintothebusinessstrategyandthisisreflectedinSmurfitKappa’sabilitytoidentifyopportunitiesaswellasrisks.CDPsuggeststhatSmurfitKappashouldstrengthenitsemissionsreductiontargettoanabsolutetargetandconsiderawardingincentivesforstaffresponsibleformanagingtheseissues.ThenextchallengeshouldbefurtherreportingonScope3,especiallyemissionsfromsuppliers.DeforestationisakeyissueforSmurfitKappa’sbusinessmodelandensuringwoodisprocuredresponsiblyisachallengeSmurfitKappashould addressandreporton.”
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT201236
United Kingdom: New lightweight paper machine in Townsend Hook will reduce CO2 emissions
Weannouncedin2012thatwewillinstallamodern,fivemetrelightweightrecycledcontainerboardmachineattheTownsendHookmillinthe UnitedKingdom.
Byinvesting€115millionin2013and2014,the twoexistingpapermachineswillbereplacedbyonenew,stateoftheartpapermachine,increasingtheproductioncapacityofthemillby20,000tonnesto260,000tonnesperannum.Itisexpectedthatthis newenergyefficientpapermachinewillsave25,000tonnesperannumondirectCO2emissions.Thestart-upofthemachineisplannedforquarter4,2014and itsproductionisintendedtomeetthegrowingdemandforsustainable,lowerweight,highperformancepackagingpapers.Lowerweight,highperformancepackagingpaperscontributetooptimisingtheenvironmentalfootprint ofthesupplychainofourpackagingcustomers.
3D picture of the new building at Smurfit Kappa Townsend Hook which will house the new paper machine.
Mexico: Paper mill cuts GHG emissions by using less steam
OurCerroGordoMillislocatedinthemetropolitanareaofMexicoCity,oneofthemostpopulatedareasintheworld.Geographically,itissituatedinabasinwhichinhibitstherapiddispersionofairemissions.Industrialoperationsarethereforesubjecttostringentenvironmentalregulationsregardinggreenhousegasemissions.
Withinthisstrictregulatoryenvironment,theCerroGordomillrealisedasignificantfossilCO2 emissionreductionthroughaninvestmentinanewshoe-pressonitsPM5machineinJanuary2012.TheabsolutereductioninfossilCO2 emissionsfromthePM5isover4,300tonnesperyear.
TheMexicanmillproducesrecycledpaperforcorrugatedboxesandfoldingcartonforpackagingforalltypesofindustry.Thevariousgradesofrecycledpaperarenowproducedwithlesssteamthankstothenewshoe-press. Asaresult,thepaperenteringthedryingsectionofthepapermachineholdslessmoisturethusallowingincreasedproductionspeedandlowersteamconsumption.Lessusageofsteamtranslatesintosavingsonnaturalgasconsumption.InturnthisresultsinlessCO2 emissionsandreducesthecarbonfootprintoftheCerroGordoMill.
Colombia: Cali mill reduces CO2 emissions and improves energy efficiency
OurvirginpulpandpapermillinCalirecentlyreplacedtheexistinglimekilninwhichCalciumOxide(CaO)forthepulpproductionprocesswasproduced.Theoldlimekilnwasoperatingwellaboveitsdesigncapacityduetoseveralmodifications.Insteadof55tonnesofCaOperday,itproducedbetween130and150tonnes.Thisledtorelativelyhighfuelconsumption.
Thenewlimekilnisfiredwithnaturalgas,whereastheoldlimekilnwasusingheavyfueloil.Boththeefficiencyimprovementof60,000GJandtheuseofacleanerfuelwillleadtoadecrease ofapproximately13,000tonnesofdirectCO2 emissions.Productionisexpectedtoincreaseto160tonnesofCaOperday.Odoursarereducedbyburningnon-condensablegasesgeneratedintheprocess.Thenewlimekilnisalsoequippedwithanelectrostaticprecipitatorwhichreducesdustemissions.
The new shoe-press on PM5 machine at the Cerro Gordo paper mill, Mexico, helped to realise significant reduction in fossil CO2 emissions.
The new lime kiln at the Cali mill, Colombia led to a decrease of CO2 and dust emissions.
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Germany: Hoya ready for the future making paper with lower CO2 emissions
OurpaperandboardmillinHoya,Germanyhasbeentransformedmanytimessinceitbeganitsoperationsin1957. Themillproducescontainerboardandcoatedboardontwomachines.Bothmachinesuse100%recycledfibreastheirrawmaterialsource.Tokeeppacewithevermoredemandsonspeed,outputandefficiency,itrecentlycompleteda two-phasetransformationprojectofthecontainerboardmachine,thusmakingitreadytomeetfuturemarketdemands.
Theobjectiveoftheinvestmentsinphaseonewastosignificantlyincreasethespeedandtodecreasedowntimeandmaintenanceofthemachine.TheseinvestmentsincombinationwithanewenergyrecoverysysteminthehoodandfilmpresshavealsoledtoasignificantreductioninspecificenergyusageanddirectCO2 emissions.
Withthecompletionofthesecondphaseofthismulti-yearinvestmentprojectthecontainerboardmachineisnowabletoproducelowbasisweightpackagingpaper,allowingthepackagingoperationstooffersolutionstocustomerswithlessenvironmentalimpact.ExtendingthecurrentCombinedHeatandPowerplanttowardstheendof2013withanadditionalgasturbineandawasteheatrecoveryboilerwillminimisetheuseofelectricityfromthegridandhencedecreasesignificantlyindirectfossilCO2emissions.
The netherlands: Rofire – a first class secondary fuel
Weaimtominimise“sidestream” volumessenttolandfill.OurpapermillinRoermond,theNetherlandshasfoundanexcellentwaytocapturethevalueofsuchsidestreams.Themilluses100%recoveredpaperasrawmaterialtoproducerecycledpaper.Recoveredpapercontainsmainlypaperfibres,butalsopaperclips,staples,textile,ropes,woodandplastic,whichconstitute“sidestreams”ofextraneousmaterial.Themillusesprocessestoenhanceseparationofthesesidestreamsandthelocalcrewhasidentifiedusefulapplicationsforallstreamswitha99.5%successrate.
In2000,theRoermondmillinvestedin anon-sitefacilitytoconvertnon-useableorganicmaterialsintoafuelpelletwithahighcalorificvalue:Rofire.Thissecondaryfuelis50%bio-basedandcanbeusedasasubstituteforcoalinthelimestoneindustry,forexample,therebysaving20,000tonnesfossilCO2 emissionsannually.
The on-site facility at the Roermond paper mill in the Netherlands to convert otherwise unusable organic
materials into a high calorific fuel pellet: Rofire.
Inside our paper and board mill in Hoya, Germany.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT201238
ENViRONMENTAl iNiTiATiVES iN CONVERTiNG OPERATiONS
Most of our energy and water usage takes place in our global paper and board mill system. We operate a manifold number of converting operations that use, compared to our paper and board mills, relatively less energy and water. nevertheless, in these operations management is committed to be efficient in the use of energy and water discharge as is illustrated by the following examples:
Czech Republic: Sensor lights make sense
OurCorrugatedConvertingoperationinŽebrákintheCzechRepublicinvestigatedwhetherlightinginpartofitsbuildingscouldbeimproved.
Newsensorlightswereinstalled inoneoftheproductionhalls,cuttingbackonenergyusedwhilealsoreducingthegenerationofheatresultingfromtheoriginallightingsystem.Atotalofelevennewlightpanelsnowmakesurethattheenergyrequiredtolightthehallisreducedby50%.ThesensorlightsdirectlydecreasethecarbonfootprintofSmurfitKappaCzechandatthesametimeimprovethesafetysituation,sincethelightsproducefarlessheat.Soonotherhallswillalsobefittedwithsensorlights.
Colombia: Corrugated plants reduce use of energy
ThankstotheenvironmentalcommitmentofallourcorrugatedplantsinColombia,significantimprovementshavebeenachievedwithregardtosustainabilityissues.Thefocusoftheplantsonenergyreductionandalsochemicals,likeglue andink,hasbeenasuccessfulone.
IntheMedellínplantsteamcontrol valveswereinstalledinthedoublebackerachievinga20%decreaseofnaturalgasconsumptioncomparedto2011.Thechangesalsoimprovedproductqualityandreducedoperatingcosts.Similarly thecorrugatedplantinBogotáinstalled asystempoweredbyprocessorsintheboiler,whichreplacedthetraditionalmechanicalsystem.Themeasureoptimisestheair-fuelratio,improvescombustionefficiencyandreduces gasconsumptionandhenceemissions.furthermore,apumptorecovercondensatesfromthecorrugatorwasinstalled.Gasconsumptiondecreased by6%from2011to2012.
United Kingdom: Sustainable energy and electricity savings
OursheetfeedingplantsintheUKhavebeenreducingtheircarbonfootprintinrecentyearswhichismostevidentintheirenergyreductionprojects.In2008,theSheetfeedingsitessetafiveyeartargettoachievesavingsandreducecarbonemissionsthroughinnovation,efficiencyandemployeeengagementatitsthreemanufacturingplants.Theprocessbeganin2008usingasinglelocationasapilot,establishingbestpracticeandrollingitoutacrosstheregion.Thesuccessoftheapproachresultedinsignificantsavingsinenergyandwaterusage.Inthethreeyearsaftergolivetherewasareductionof24%ingasconsumptionand22%reductioninelectricityusage.Manyoftheseideasforimprovementhavenowbeen‘rolled-out’throughtheSmurfitKappaGroup.TheachievementoftheCarbonTrustStandardinSheetfeedingwasanotherfirstinadditiontothebusinessbeingthefirstsheetfeederintheUKtogainfSCandPEfCcertification.BuildingontheSheetfeedingcertification,SmurfitKappaUKbecamethefirstmajormulti-sitedpackagingcompanytobeawardedtheCarbonTruststandardintheUK.
ENERGy
Steam boiler at our corrugated plant Smurfit Kappa Turnhout, Belgium.
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ENViRONMENTAl iNiTiATiVES iN CONVERTiNG OPERATiONS
Colombia: Good practices boost sustainable performance
OurCorrugatedplantinBarranquilla hasaccomplishedsizeablereductions intheusageofwater(32%),theuseofelectricity(23%)andintheconsumptionofgas(30%)in2012comparedto2011.
TheprogrammeinBarranquillademonstratesthatgoodteamwork andproductionpracticescanboostproductivityandreducetheenvironmentalfootprintofacompanyatthesametime.Awarenessprogrammesforpersonnelincombinationwithefficiencychecksofvariouspartsof theproductionprocesshaveledtoemployeespro-activelytacklingenergyissues,thereplacementofnon-efficientmachineryandunnecessaryusageofelectricity,gasandwater.Simplemeasureslikeclosingmachinesections,switchingoffun-usedmachineryandimmediaterepairshadasignificanteffect.Continuousmonitoringwasvitaltoachievethesegoalsandisnecessarytoguaranteeasuccessfulcontinuation ofthisprogramme.
Mexico: water use efficiency and reuse in Culiacán
OurplantinCuliacánislocatedinanareawithasemi-aridclimate.Althoughannualrainfallisover600millimetres,thehighaverageannualtemperaturescausessignificantevaporation.Sustainablewatermanagementthereforeisanimportantissueattheplant.
Newinitiativeshaveimprovedtheefficiencyofwaterusageby48% in2012comparedto2011.Waterconsumptiondecreasedfrom1.19m3/tonnein2011to0.62m3/tonneofsaleableoutput.Processwaterdischargedwasreducedfrom0.32to0.18m3/tonnesaleableoutput.Thiswasrealisedbyclosingwaterjacketcircuits inthecorrugator’ssinglefacersandbyreusingwashwaterinstarchadhesivepreparationandthewashingofprintingplates.forthewatertreatmentprocessanelectrocoagulationprocesswasimplemented.Theuseofpotablewaterinsanitaryservices,insteadofusinguntreatedsuperficialwater,improvedhealthandsafetyconditionsanddecreasedthesanitarywaterdischarge.
Ireland: Smurfit kappa display on a mission to reduce emission
In2009,SmurfitKappaDisplayconcludedthattheireffluentdischargesneededto beadjustedtoreducetheamountofchemicalsenteringtheSouthDublinCountyCouncildrains.TohelpprotecttheenvironmenttheOperationsandHealthandSafetydepartmentsofthisSmurfitKappaplantresearchedthematter.
fortnightlysamplesweretakenfrom thedrainsandtestedtoidentifyanydischargesoverthepermittedlimits. Thefirsttensamplesin2010identifiedeightsuchcases,allcomingfromCOD andBOD.Eventuallytheprocessbywhichchemicalswerebeingusedwaschanged.Aneightstepprogrammewasinitiatedthatentailedmeasuressuchasinstallingnewequipment,raisingawarenessamongemployeesandreplacingtheinkwithamorebiodegradablealternative.Afterintroducingthesemeasuresin2012thesitemanagedtostaywithintherequiredeffluentlimits,toimproveefficiencyandenhancetheprotectionofthelocalenvironment.
wATER
Water treatment system at our folding carton plant Smurfit Kappa Baden Packaging in Weisenbach, Germany.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT201240
Environment [continued]
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Emission from transportInEurope,wecalculatedtheCO2 emissionsrelatedto thetransportofthemainrawmaterialstoourmillsandconvertingplants.Transportationofourrawmaterials andproductsismostlyoutsourcedtoexternalparties.
Thisincludestransportofwood,recoveredpapersandmarketpulpusedinourmills.Thetransportofrawmaterialstothesecondstageofthesupplychain(reelsofpaper,corrugatedboardsheets,solidboardsheets,plasticfilmsandotheritemstotheconvertingplants)isalsotakenintoaccount.
WhilethecalculationofCO2 emissionsforthetransport ofpaperreelsbetweenourownmillsandtheconvertingplants(representing71%oftotalvolume)isaccurate,webelievewehavemadeagoodestimateofemissionsforthetransportoftheremainingreelsofpapersuppliedtoourcorrugatedplantsbyexternalparties.
for2012,CO2 equivalentsfortransportofrawmaterialsamountedto212kTonnes.Thebreakdownbymode oftransportisshowninthegraphsabove.TheCO2 emissionfactorsbytransportmodeareextractedfrom theEuropeanReferenceLifeCycleDatabaseversionII(ELCD).Transportationfortheaboveactivitiesrepresents 6.2billiontonne-kilometresandthepie-chartdisplaysthesplitbytypeoftransport.54%ofourtransportneedsarecarriedoutbyroad,37%byseawiththebalancecarriedoutbytrain.
WehavenotbeenabletodoasimilarexerciseforLatinAmericaduetothestructureofoursupplierbase.Weareintheprocessofestablishingtheparametersofthejourneystoandfromourpapermills.
3. wATER MANAGEMENTWaterisavitalelementinourmanufacturingprocess. Asfreshwateravailabilityisagrowingglobalconcern, westrivetolimitwaterintakewherewecan,eventhoughthevastmajorityofourproductionlocationsarelocated inareaswithnoforeseenwaterscarcity.Wearealsocommittedtoreturnthewaterusedinourprocessesascleanaspossibletothepublicwatersystems.90%ofthewaterusedisactuallyreturnedtothesesystemsingoodconditionandmostoftheremainingwaterevaporatesand
returnsatalaterstageasprecipitationintotheglobal(fresh)watersystems.furthermore,ingeneral,thewaterwetakein,isusedmultipletimesbeforeitistreatedinourwatertreatmentfacilities.forexample,ofallwaterthatisinusebyapaperandboardmillatanypointintime,98%isbeingre-usedbeforebeingtreated.
Underpinningourcommitment,weinvestinthebestavailabletechniquestotreatthewaterbeforereturning ittothewatersource.Since2005,wehavemadeconsiderableeffortsandsizeableinvestmentsinupgradingitswatertreatmentfacilities.Oneofourlargestpapermills,ZülpichinGermany,isoperatinga100%closedloopprocesswatersystem.
water performanceOurglobalpaperandboardmillsystemused124millionm3 ofwaterin2012,over98%ofourtotalwaterintake.Thebalancewasusedinourglobalconvertingsystemwhichrequiresverylimitedamountsofwaterrelativetoproductionvolumes.Ourtotalintakeofwaterispracticallystablesince2010,butis10%lowercomparedto2008.Therearetworegions,whereouroperationsfacewaterscarcity.MexicoandthesouthernpartofSpain(Andalucía).Ourmillsinthoseregionsplacespecialattentiontolimitingtheirwaterintakeasmuchaspossible.forexample,ourrecycledmillinMonterrey,locatedinNortheastMexicoin asocalledsemi-aridclimateregion,initiatedaprogrammetwoyearsagotolessenitswaterintakeachievingadecreaseof40%inwaterintakepertonneofpaperproduced, seedetailsonpage43.
followinginvestmentsofover€31millioninwatertreatmentfacilitiessince2005,thequalityofwaterdischargedbyourglobalpaperandboardmillsystemhasimprovedonarelativebasisby25%.WeusetheCOD(ChemicalOxygenDemand)contentasmeasureforwaterquality.Comparedto2011,ourCODperformanceimprovedin2012by5%mainlyresultingfromthecommissioninginApril2012ofanewwatertreatmentfacilityinthepapermillinBernalinArgentina.ThenewfacilityallowedtherelativeCODcontentofBernaltodecreasebyover60%in2012comparedto2011.AnothersignificantimprovementwasrealisedinourpapermillinAniainItaly.Throughtheextensionofthewatertreatment
54%
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Distribution of transport of raw materials by mode of transport 2012EuROPEAN OPERATiONS
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012 41SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012
13%
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facility,AniareduceditsCODdischargeby18%in 2012comparedto2011.Otherpaperandboardmillsoperatedtheirwatertreatmentfacilitiesaccordingtoexpectedlevels.
ThetwootherindicatorsmeasuringtheorganiccontentofwaterdischargedareBOD(BiologicalOxygenDemand)andTSS(TotalSuspendedSolids).TheseindicatorsshowedthesameperformancetrendastheCODindicator.Theso-calledeutrophicationindicators(nitrogenandphosphorus)remainedstablein2012comparedto2011.
Ingeneral,thewaterthatwedischargefromourpaperandboardmillshasbeentreatedinwatertreatmentfacilitieson-site.Insomeinstanceswaterisbeingdischargedtocommunitywaterdischargefacilities.Ingeneral,afterthewateristreatedon-site,itisdischargedtothesurfacewatersystemssuchasrivers,lakes and/orsea.
Over50%ofthevolumeoftheprocesswaterdischargedbyourpaperandboardmillsystemisbiologicallytreated,approximately10%isdischargedtoexternalcommunitytreatmentfacilitiesandthebalancereceivesphysicaland/orchemicaltreatmentbeforebeingdischarged.
water dataThetreatmentoftheprocesswaterusedinthemillsiseithercarriedouton-site,asisthecaseofthemajority ofourmills,orissubcontractedtoanexternalthirdparty.forthelatter,inalldisclosuresrelatingtotheprocesswatercontent(COD,BOD,TSS),wereportlevelsinthewaterdischargedbythemillspriortothisexternaltreatment.
ToprovideacorrectoverviewoftheGroupperformanceforallwaterindicators,BODdischargedisestimatedforourpapermillinNervióninSpainbyusingCODdischargeincombinationwiththeratioCOD/BODobtainedfromasurveyperformedduring2012inthismill.
Waterrelateddataforallouroperations(includingdetailsforindividualmillsinEuropeandLatinAmerica)areshowninthetablesonpages76to83.
Cellulose du PinIn2012,ourCelluloseduPinkraftlinermilllocatedinBiganosinfrance,facedthecollapseofoneoftheblackliquorstoragetanksresultinginthereleaseofeffluentontothegroundsofthefacility.Immediateactionwasundertakentocontainthespillage.
Nophysicalinjurieswerereported,howeverlimitedpollutionofthenearbyriverwatersdidoccur.Thiswasdetectableonlyforashortperiodthankstothelimitedquantityofeffluent(approximately100m3ofblackliquor)thatspilledintotheriverwaters.Thisspillageresultedinarelativelimitedquantityofapproximately300kgofdeadfishcollected.Sitemanagementkeptinclosecontactwiththelocalauthorities.BrunoLafon,MayorofBiganos,stated:“Thedialoguewiththefactorymanagementwasconstructiveandtheireffortstoresolvetheproblemsthatresultedfromtheincidentwereextensive.”Toensureasafemillrestart,alltanksconcernedwereauditedbyathirdparty.Thisactionledtoasevenweekshutdownofthemill.AcommitteecomprisingSmurfitKapparepresentativesandlocalstakeholderswillmonitorthemill’soperationsbymeetingatleastonceperyear.Themillwillalsoinitiateandfundanindependentandpublicsurveyontheimpactoftheproductionactivitiesontheenvironment.Despiteuncertaintyastothecausesofthecollapseoftheblackliquortank,themillimmediatelycoveredthedirectfinanciallossesofsurroundingbusinessesaffectedbythespillage.
TheenvironmentaldatarelatedtoCelluloseduPinreportedonpage78areinclusiveofthewaterdischargesandthewastesgeneratedduringtheclean-upperiodfortheincident.Dataalsoincludethewaterdischargedwhichwasusedtoremovetheeffluentkeptintheon-siteemergencypondaftertheincident,incompliancewithCelluloseduPin’senvironmentalpermit.Atotalof5,063tonnesofliquidscontainingblackliquorresultingfromtheincidentwaseventuallyincineratedexternallyand isreportedashazardouswaste.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT201242
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Environment [continued]
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012 43SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012
Mexico: Monterrey Mill saves water in a water sensitive area
TheMexicancityofMonterreyisgeographicallylocatedinanareawhichhassufferedseveredroughtsinrecentyears.Asaresulttherearestrongpressuresonwaterresourcesandwaterusageisexpensive.TosavewaterourpapermillinMonterreyhasinitiatedatwo-yearprogrammewhichhasdecreasedthefreshwaterintakeneededtoproduceonetonneofpaperbyover40%.
Torealisethisreduction,changesweremadetothewatercircuitsandcleaningshowersofthepapermachinePM9.Themillhasalsoincreasedthereuseofprocessandprimarytreatedwater,thusincreasingtheclosureof thewatercircuitsanddecreasingfreshwaterusageforpreparationofprocesschemicals.Besidesthedecreasedwaterintake,watercostsdroppedby36%andthesaleableproductionincreasedbyalmost10%.
Italy: Ania paper mill upgrades water treatment plant
During2012ananaerobicreactorwithabiogasdesulphurisationunithasbeencommissionedandinstalledattheAniapapermillinTuscany,Italy.Comparedtothepreviousyearthemillachieved asignificantreductionof18%oftheChemicalOxygenDemand(COD)loadintheeffluent.
Accordingtotherecordsofthefirstfivemonths ofoperation,theAniamillobtainedanoverallreductionoffossilsourceenergyusageofabout100tonnesofoilequivalentpermonth.Thiswastheresultofmakinguseofthegeneratedbiogasburnedintheboilerhouseinsteadofnaturalgas,andalsoaconsequenceofareductionintheuse ofelectricityintherestofthewatertreatment plantareacomparedtotheprevioussituation.
Raggers of PM9 pulpers collect large amounts of strips of plastic and other materials, which require specialised recovery.
The anaerobic reactor with biogas desulphurisation was installed at the Ania paper mill in Italy during 2012.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT201244
SOCIALDEVELOPMENT
forthesecondsustainabilityelement–People–ourprimaryfocusisonouremployees.Ourownemployeesarethekeytooursuccessandtheyareattheheartofourbusiness.Weoperateinhighlycompetitivemarketsandwecannotsucceedwithoutahighlyskilled,welltrainedandcommittedemployeebase.Tooperateinaproductiveway,itisapre-requisitethatouremployeescanworksafely.Bydevelopingandempoweringourpeople,weaimtocreateaworkenvironmentinwhichtopperformanceandpersonalgrowthofouremployeesgohand-in-hand.
Toreachthesepre-requisitesandobjectivesweaimtobesociallyconsciousandpro-activeonsocialissueswithacommitmenttocontinuousimprovementintheareasofhealthandsafetyandfocusonthewell-beinganddevelopmentofouremployees.Safeguardinghumanandotherelementaryrightsthatgovernlabourrelationswithouremployeesalsoformakeyelementofoursocialresponsibility.
Involvementinlocalcommunitiesisanotherkeypriorityforus,asweareoftenseenasanimportantpartnerinthelocalsocietyandeconomy.Ourobjectiveistocontributepositivelytotheeconomicandsocialdevelopmentofthesecommunitieswhereweareprivilegedtooperate byprovidingjobsandrespondingtothecommunities’socialneeds.Westrivetobeanintegralpartofthecommunitieswherewearelocated,bysupportingcommunityactivitiesandcommunitysupportprogrammes.
1. HEAlTH ANd SAfETyOccupationalhealthandsafetyisoneofourkeysustainabilitypriorities.Weareaimingforzeroaccidentsandweareaddressingthevariousaspectsofhealthandwell-beingatwork.IncreasinglywearebroadeningoureffortstoalsomakepeopleawareofHealthandSafetyissuesoutsideworkandintheirprivatelives.Therefore,ourHealthandSafetyPolicy,designedinaccordancewiththeOHSAS18001HealthandSafetyManagementSystem,containsaDeclarationofIntentinwhichwecommittoconductourbusinessinaresponsiblemanner:takingcareofthehealth,safetyandwellbeingofeveryoneaffectedbyouractivities.
Keyelementsinensuringthatthiscommitmenthasbecomeandremainsaday-to-dayfocusinclude:
nHavingHealthandSafetyasanimportantagendaitemonallrelevantmanagementandemployeemeetings.
nHavingHealthandSafetyasakeyelementby whichallmanagersaremeasured.
nBenchmarkingofinternalHealthandSafetyperformancethroughmonthlymeasurements.
nSeekingimprovementsinourcurrentworkingpracticesinordertoreduceriskandhelptoprotectemployees,visitors,contractorsandthepublicfrominjuryandill-healthbycontinuouslyassessingourprocesses.
nTakingallpracticalstepstodevelopandmaintainanappropriatesafetyculturethroughoutSmurfitKappa.Thisincludes:
l CirculatingreportsofallsignificantaccidentstoeverymanufacturingplantGeneralManagerandonwardtoouremployees.Inthisway,experiencesaresharedinordertohelpthepreventionofsimilaraccidentselsewhereinSmurfitKappa.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012 45SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012
Bent Petersen, Bent Mærkmose , Bo Asmussen, Birgitte Dam and Jane Østergaard from Smurfit Kappa Denmark.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT201246
Social development [continued]
l ConductingcrossauditsinHealthandSafetyusingourownin-houseHealthandSafetycoordinators.
l ProvidingHealthandSafetybriefingsandtrainingsessionstoallnewemployees.
l ConstantlyreinforcingtoallemployeestheCompany’sexpectation,thatinthecourseoftheirwork,eachandeveryemployeewillfollowallsafetypolicies,useallrelevantsafetysystemsandcontinuallyseekoutwaystoimproveprocessestoensuretheHealthandSafetyofall.
formoreinformation,seetheHealthandSafetyPolicyStatementonourwebsite:www.smurfitkappa.com.
In2012,Group-wideinitiativesincluded:
nEmphasisonriskanalysisandhazardidentificationacrossourplantstructure:
l Manyofourplantshaveequipmentforwhichmaintenanceorcheckingactivitiesneedtobecarriedoutontheroofsoftheirbuildings.In2010,weinitiatedaprogrammetoequipourroofswithsafetyandsecuritydevicestosafeguardthesafetyofthoseperformingmaintenanceandcheckingactivities.Themajorityofourplantshavenowequippedtheirroofswithcollectiveprotectiontopermitaccesswithoutrestriction.
l Therestrictionofaccesstostores/warehouseswhenforklifttrucksareinuseisbeingimplementedinmanyofouroperations.Pedestriansareallowedtoaccesswarehousesonlyafterreceivingnotificationthatactivityoftheforkliftshasbeensuspended.Inaddition,allnewforklifttrucksarenowequippedwithspeedgovernors/speedlimitersandotherdevicestoreducetherisktoboththedriversthemselves andtopedestrians.Additionaldevicessuchasobstacledetectionor“bluelight”deviceshavebeeninstalledinordertoincreasethesafetylevelofouroperationswithforklifttrucks.
l Continuedemphasisisbeingplacedontheseparationofpedestrianpathwaysandvehicles,bothindoorandoutdoor.
l IntroductioninourplantsofGroup-widestandardsinrespectofsafety-relatedpaintingandsignagedesignanddisplay.
nThefirstBiennialSafetyOpinionSurveyheldinitiallyin2010,inbothEuropeandLatinAmerica,aimedatcollectingourownemployees’opinionsontheirperceptionofsafetyinsidetheirdepartmentand/orplant.Theresultsofthissurveyenabledustoidentifyopportunitiestofurtherimprovetheefficiencyofoursafetymanagement.Asecondsurveywascarriedoutin2012.Theresultswerebenchmarkedagainstthefirstsurveyfrom2010andshowedthat,atagloballevel,wewereimproving.Ouroperationsarenowidentifyingwhatadditionalactionsintheareaofsafetyshouldbetakentoreachafurtherimprovedlevelofsafetyandsafetyperceptioninour 2014survey.
n Continuedfocusonactivitiessuchasstandardisationoftheapproachtoriskanalysisinoperationsanda“STOP/THINK/GO”approachto/forassessingriskincertainsituations.
n Thereportingofnearmissesisnowpartofstandardreportinginourplants.Weconsiderthisakeydevelopmenttoachievefurthersafetyimprovements.Inaddition,ourGroupaccidentreportingtoolwasupgradedin2012,sothatthesenearmisseswouldalsobereportedcentrally,allowingustoshareinformationimmediatelythroughoutallofourfacilities.
nTheuseofE-Learningforsafetyiscurrentlybeingdevelopedasacomplementarytooltotraditionaltrainingofouremployeesandsubcontractors.
InadditiontotheseGroup-wideandRegionalinitiatives,individualplantshaveintroducedtheirownHealthandSafetyinitiativesduring2012suchashealthcheck-upsforemployeesandtheirfamilymembers,first-aidtrainingforemployees’familiesandsafetyriskassessmentsofemployees’houses.
Inaddition,employeesarebeingencouragedtobecomemoreconsciousoftheimportanceoftheirpersonalHealthandSafetyinawidercontextandtodevelopawarenessofrisksnotonlyduringworkinghoursandincommutingtoandfromtheworkplacebutalsointheirhomesandnon-workrelatedsocial/sportingactivities.
Inthisregard,wehavesupportedanumberofinitiativesacrossEuropeandLatinAmericafocussingonincreasingawarenessandfosteringappropriatebehaviourwithregardtosafety.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012 47SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012
SeveralcampaignshavebeenlaunchedbothinEuropeandinourLatinAmericanfacilitiestopromoteahealthylifestyleandthebenefits ofhealthchecks.
Thesafetyofpeopleonourpremisesisakeypriority.Wedevoteconsiderabletimeandeffortspromotinganawarenessofhealthandsafetysothatouremployeesandalsosubcontractedworkersfollowtheappropriateprocedures.Itiswithgreatregret,therefore,thatwereporttwofatalitiesofsubcontractworkersduring2012,oneinEurope(Spain)andoneinLatinAmerica(Venezuela).
InSpainthefatalaccidentoccurredwhenthesubcontractworker,whowasemployedbyoneofourcleaningcontractors,triedtoperformacleaningtaskonabeltconveyorsystemwhichhadnotbeenstopped.InVenezuelathesubcontractworkerwaspartofanelectricalcontractorcrew;theworktobeperformedwastoinitiatesomeelectricalconnectionsinanareathathadbeenisolated,unfortunatelythevictimapproachedtheincorrectelectricalpanel,whichwasfullyelectrifiedandsustainedfatalinjuries.
During2012,50%ofourEuropeanfacilitiesremainedfreeofanylost-timeaccidentsand22%ofthesefacilitieshavesucceededinmaintainingazerolost-timeaccidentrecordoverthelastthreeyears.forLatinAmericathesepercentagewere32%and7%respectively.
Overall,safetyperformanceofSmurfitKappaemployeesimprovedbymorethan10%regardingthenumberofaccidentsin2012comparedto2011,andthenumberoflostworkingdaysduetoaccidentsdecreasedbynearly20%.Alostworkingdayiscountedwhenanemployeemissesthenextregularworkingdayorshift.Inthegraphsonpage48severityandfrequencyratesaresplitbyregionandbyactivityforourownemployees.ConvertingalsoincludesSmurfitKappaNewsPress,EdCoandDLRSSecurityConcepts.
State of the art forklift truck designed and equipped to improve Health and Safety at the workplace.
ENGAGEMENTWITHSTAKEHOLDERS
Trucks lift Health and Safety level at the workplace
LeadingforklifttruckproducersHysterandLindebothhavealongpartnershiphistorywithSmurfitKappa. Theirstateoftheartforklifttrucksarenotonlyverydependableperformancemachines,thevehiclesarealsodesignedandequippedtoimproveHealthandSafetyattheworkplace.
RichardRoot,majoraccountsmanagerofHyster:“Duringthemostrecenttenderingprocess,SmurfitKappahasbeenparticularlyconscientiousintheconsiderationofmaterialshandlingequipmentandpro-activeinthestandardandoptionalfeaturesavailable.firstweidentifiedtheminimumliftcapacityandheightrequirements.Thenweformulatedthestandardisedfeaturesoneachmachineincludingareversealarm, aflashingbeacon,atractionspeedlimiter,passwordprotectedoperatoraccessandinternalmirrorstohelpreduceblindspots.Plantswerealsogiventhechoicetoaddoptionalfeaturestotailortheforklifttruckstotheirownspecificworkenvironment.”
InternationalkeyaccountmanagerRobertKovacsofLinde:“SmurfitKapparanksamongstthecompaniesintheindustrywiththemostprofessionalapproachwithregardtosafetyefforts.TheindustrywouldbebetteroffifSmurfitKappa’sstandardisedlistofminimalsafetyspecificationswascommonpractise.Unfortunately,weseldomreceivesuchadetailedsafetylistwhenmanagingsimilarinternationaltenders.Thelistcoversmostsafetyissues.WedokeepinclosecontactwithSmurfitKappa toinformthecompanywhennewsafetyfeaturesandtechnologiesbecomeavailabletoconstantlyhelpimproveSmurfitKappa’ssafetystandards.”
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT201248
Social development [continued]
2011 2012
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Social development [continued]
Employees from Smurfit Kappa Orange County’s Tijuana plant undergoing training at the Health and Safety Day.
Employees at the Smurfit Kappa Medellín corrugated plant in Colombia reviewing safety procedures.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012 49SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012
Annual Health and Safety Day
InApril2012,aSafetyDaywasorganisedinallourEuropeanplants.AnaddressbyTonySmurfit,theGroup’sChiefOperatingOfficer,highlightingtheimportanceofhealthandsafetyforemployees,wasscreenedinalloperations.Duringthedaymanyactivitieswereorganisedforandwithemployees,andallseniorexecutivesattendedatoperatingplantsontheSafetyDay.
TheSafetyDaywasaresoundingsuccess,drawingontheactiveparticipationandintenseinvolvementofmanagementandinteractionwithouremployees,andinmanycaseswiththeirfamilies.
AHealthandSafetyDaywillnowbeorganisedeveryyearinallourplantsinEuropeandtheAmericas.fortheHealthandSafetyDayin2013,avideowasproducedwiththehelpofthreeemployeeswhohadsufferedanaccidentatwork.Theysharedstoriesfromtheiraccidentandwhattheyhavelearnedfromtheseexperiences.Thevideowasshowntoallemployeesinordertohighlight theimportanceofalwaysputtingsafetyfirst.
Bill Barden (l.) - Get Set Training, explaining safe moving and handling with Chris Canavan - Smurfit Kappa Lurgan, Northern Ireland.
Tony Smurfit (front row left) with his colleagues attending the Health and Safety Day at Smurfit Kappa Lübeck, Germany.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT201250
Venezuela: Smurfit kappa Venezuela takes Customer Service to the next level
Workingtogetherwithacustomerisnotonlyacommercialendeavour.Itisaboutbuildingamutuallybeneficialrelationshipthatgoesmuchfurtherthanmarketperformance.forinstancethemilldivisionofSmurfitKappaVenezuelahasbeenverysuccessfulinhelpingitscustomersimprovetheirownHealthandSafetysituation.
feedbackofSouthAmericancustomershasbeenexcellent.Theyvaluethetime,effortandexpertiseSmurfitKappaVenezueladedicatestopromotingsafetyandeducation. Theprogrammehasbeenunderwayforalmostthreeyears andhasbecomeamonthlyroutine.Safetyisanimportant issuewithinSmurfitKappaVenezuelawhichisdemonstratedbytheregularsafetychecksattheworkplace,monthlysafetythemes,workshopsandtransportationsafetyevaluations. TheSalesandCustomerServiceDepartmenthasextended theSmurfitKappaphilosophyonsafetytoitscustomersbyofferingtrainingandexchangingbestpractices.Besidesdevelopingcloserrelationshipswithcustomers,themainobjectiveofthisinitiativeistofurtherimprovesafeworkingconditionsforSmurfitKappaVenezuela’scustomers.
Colombia: Smurfit kappa Health day in Colombia
OurmainproductionfacilityinColombiaisbasedontheoutskirtsofCaliinasmalltowncalledYumbo.On14July2012,themillwelcomed570peoplewhoparticipatedin theSmurfitKappaHealthDay.Thethemeoftheeventwas:‘Cartónatodocorazón’or‘Cartonwithallyourheart’.
ThishealthawarenessdaywasorganisedbyemployeesfromtheMedicalServicesdepartmentwhichhadvaluablesupportfromotherareassuchasHR,MarketingandCommunications,andtheforestryDivision.Theobjectiveofthiseventwastocreateawarenessamongemployeesandtheirfamiliesabouttheimportanceofhealthcareandwell-being.Inordertolearnhowtopromoteandliveahealthylifestyle,adults andchildrenparticipatedinphysicalactivitiesandsports.familiesenjoyedgames,theatrepresentationsandchallengingphysicalexercises.AttheHealthfair,stands werehostedbyinstitutionsandcompaniesproviding relevantinformationwhileallofthosewhoparticipatedhadtheopportunitytobuyproductsandcollectbrochuresandmanualsrelatedtohealth,physicalactivityandwellbeing.
Italy: Smurfit kappa italy helps employees to create safer homes
SafetyBridgeisthenameofauniqueconceptaimedatreducingrisksinthehomeenvironmentofemployees.WiththesupportofanItalianconsultantcompany,SmurfitKappaItalyhasadaptedandpromotedsuchariskanalysistoolsuccessfully.
Theideaissimpleandeffective:whynotusetheexpertiseSmurfitKappaItalyhasgainedprofessionallytohelpemployeesreducehazardoussituationsathome?Inshort,riskpreventionbytransferofknowledgeandtools.SafetyBridgestimulatesemployeestoassessthesafetyleveloftheirhomesbymakinguseofaquestionnaire.Employeesaretrainedtomakeaproperassessmentandreceivepersonalisedfeedback.BycreatingalinkbetweensafetyathomeandsafetyatworkSmurfitKappaItalywantstohelpemployeestorealisesaferhomeenvironmentsandatthesametimeimprovetheirsafetyawarenessandperceptionofrisksatwork.
Creating awareness among employees and their families about the importance of health care and well-being at the Smurfit Kappa Health Day held in Yumbo, Colombia.
Safety Bridge is the name of a unique concept aimed at reducing risks in the home environment of employees organised by Smurfit Kappa in Italy.
National and local customers value the time, effort and expertise that Smurfit Kappa in Venezuela dedicates to promote safety and education.
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Germany: Thinking out of the headbox improves safety
Cleaningtherazor-sharp,fivemetreswide,headboxlamellaofapapermachinewithahighpressurecleanerisnotwithoutriskasitislocatedinatight,hotandwetenvironment,thusincreasingtherisk ofinjuries.Afteranincidentwhereoneoftheircolleaguesincurredseriouscuts,HelmutLerche andKlausSchultzfromSmurfitKappaZülpich tookituponthemselvestopreventthisfromhappeningagain.
Thetwoemployeesmanagedtodevelopanaward-winningspecialtoolwhichcanbemountedattheendofahighpressurehose.Thisdeviceenablesoperatorstocleantheareaofthelamellainasafeway.Specialrollslockandguidethedevicealongthelamellawhilethewaterjetispositionedforoptimalcleaning.Theinventionimprovessafetyandensuresmachineefficiencyandproductqualitybyoptimisingthecleanlinessofthiscriticalpartof themachine.
Thisprojectearnedthe2012SpecialAwardofthe“GermanEmployers”liabilityinsuranceassociationforthesectorsof‘rawmaterialsandthechemicalindustry’.
Mexico: Safety takes centre stage in Mexico
Tocelebratefathers’Day,employeesandfamiliesof allthedifferentSmurfitKappaoperationsbasedin theMexicoCityMetropolitanareawereinvitedto atheatricalperformanceoftheplay‘PeterPan’. Asarecognition,prioritywasgiventoemployeeswith arecordof‘ZeroAccidents’duringtheiremploymentwithSmurfitKappa,tothoseemployeeswithanexemplarysickleaverecordandalsotopersonnel whohadcontributedwiththelargestnumberof creativeparticipationproposals.
fourperformanceswerebookedbySmurfitKappaMexicotoaccommodateallthefamilies.Theywerewelcomedbyhighlightingtheimportanceofsafetyandgivingrecognitiontothesafeparents.Thechildrenwereofferedtheopportunitytohavetheirfacespaintedwiththeirfavouriteanimalorcharacter,whilethefamilyenjoyedlunch.Attheendoftheplay,actorsandfamiliessangtheMañanitas,whichisacelebratorysong,tocelebratethesafeparents.
Helmut Lerche and Klaus Schultz - Smurfit Kappa Zülpich developed an award-winning special tool which can be mounted at the end of a high pressure hose. Smurfit Kappa employees and their families celebrating
Fathers’ Day in the Mexico City Metropolitan area with a performance of Peter Pan. Recognition was given to employees a) with a record of ‘Zero Accidents’, or b) with an exemplary sick leave record and c) also to employees with the largest number of creative participation proposals.
Spain: Health and Safety is a way of life in Andalucía
WhyisHealthandSafetyconductoftenrestrictedonlytotheworkplace?TheAndalucianSmurfitKappaplantsaskedthemselvesthisquestionandtogethertheycameupwithananswer.Theiropinion:HealthandSafetyshouldbeanintegralpartofthedailylifeofeveryoneresultinginbetterqualityoflifeforfamilies.
Toaccomplishthistheplantsinitiatedanextensiveawarenessprogrammeconsistingofpromotionalmedia,trainingandawarenessactivities,guidedtours,contestsforkidsandeducationaboutpersonalprotectionequipment.Allaspectswerelinkedtohomeriskprevention,safetyatschoolorpreventivemeasuresintheworkplace.Theproject,originallystartedbytheMengíbarMill,hasbeensuccessfullyextendedtotherest oftheAndalucianplantsinHuelva,CórdobaandAlmería.TheinitiativehasbeenrecognisedbytheAndalucianGovernmentanditspromotionalposterreceivedaninternationalaward.
Smurfit Kappa plants in Andalucía, Spain initiated an extensive programme to raise awareness on health and safety at home. The poster received an international award.
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Social development [continued]
2. SOCiAl CiTizENSHiP
Guiding principlesWearecommittedtomanagingrelationshipswithfellowemployees,businesspartnersandhostcommunitiesinasociallyresponsiblemanner.
Wecomplywiththeprinciplesexpressedinthe UnitedNationsDeclarationofHumanRightsandthefundamentalPrinciplesandRightsatWorkdeveloped bytheInternationalLabourOrganisationinallofthecountriesinwhichwehaveapresence.
InkeepingwiththisDeclarationandthesePrinciples:
nWeprohibitdiscriminationonthegroundsofrace,colour,gender,sexualorientation,age,religion,nationalorigin,disabilityorotherlegallyprotectedstatusinthecountriesinwhichweconductbusiness.Noissuesofdiscriminationinanyofthesecategorieswereidentifiedin2012.
nWesupportfreedomofassociation.Ouremployeeshavetherighttobecome(andremain)amemberofaTradeUnion,havetheirrepresentativesnegotiateandbargainontheirbehalfandassistthemingrievanceanddisciplinarymatters.
TheCollectiveAgreementscurrentlyapplyinginsome90%oftheGroup’ssitesaretheresultofeitherlocaland/ornationalnegotiationsinthecountriesconcernedinbothEuropeandLatinAmerica.
Wearenotawareofeithertheassociationorbargainingrightsofanyindividualorgroup(s)ofemployeesbeingdeniedtothemduringthecourse of2012.
nWeprohibitchildlabour.Wewillnotemploy,inanycapacity,anyonewhohasnoteitherreachedthemandatedschoolleavingageortheminimumagesetforemploymentinanycountryinwhichweoperate.Noissuesunderthisheadingwereidentifiedin2012.
nWetreatemployeeshumanely.Wedonotapproveofortolerateforcedlabourorphysicalabuse.Wedonottolerateanyotherformofabusivebehaviour,whetheritoriginatesfromwithinourbusiness(andisdirectedinternallyorexternally)oritssourceisanindividual(ororganisation)withwhom(orwithwhich)wehaveabusinessrelationship.Noissuesundereitherheadingwereidentifiedin2012.
nWecompensatefairlyandreviewwageandsalarylevelsatregularintervals.Whereappropriateweuseexpertmethodologiesandinputfromthecurrentjobholder,solelytakingthefunctionunderreviewintoaccount.Weensurethatpayratesineachcountryinwhichweoperatematchorexceedtheminimumstandardsetbyitsgovernmentorlegislature.
nWecelebratethewidevarietyofskills,abilities,backgrounds,experiencesandperspectivesrepresentedbyeveryemployeeinourGroup.Werespectemployeecontributions.Weoperateasameritocracy.Wepromoteonthebasisofsuitability,rewardfairly,encouragepersonalandprofessionaldevelopmentandpromoteeffectivecommunicationateverylevelofthebusiness.
Inthecontextoftheabove,weselect,andpromotepeople,solelyonthebasisofsuitabilityforthepositioninquestion.
Compensation and BenefitsTheGroupdoesnotdiscriminatebetweenmenandwomenintermsofsalary,benefitsoranyotherconsideration.TheGroupappliesthepolicyof‘samejob,samepay’.ThereisnoformalsystematGrouplevelthatallowsustomeasurethepreciseratioforremunerationbygender.
Whilethebasicsalaryofanindividualmanagermaybedifferentfromthatofacolleagueinanidenticalorsimilarrole,thedifferencewillgenerallybeareflectionofthedifferenceinexperience,sizeofthejob,performance,etc.andnotasaresultofnationalityoranyothersuchreason.
Incommonwithmanylargebusinesses,SmurfitKappaprovidesarangeofemployeebenefits.Some,suchas,maternityandpaternityleave,areprovidedunderthelegislationofthecountryinquestion.
Otheremployeebenefits,suchasPensionPlansand LifeInsurance,formanintegralpartoftheemployee’sremunerationpackageprovidedbytheGroupinvariouscountries.
Employee demographics and TurnoverAttheendof2012,theGrouphadsome41,000employees.Thisfigureincludesbothourownemployeesaswellascontractedlabour,andalsoincludes2,900employeesinSKOCthatwasacquiredin2012.fortheremainderofthissectiontheSKOCemployeesareexcludedasthatcompanywasacquiredonlyinDecember2012.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012 53SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012
Ascanbeseeninthegraphsabove,some43%ofouremployeesare40yearsofageorunder,withalmostathirdofthetotalbetweentheageof41and50years.
Asshownabove,approximately55%ofouremployeeshavebeenwithusfor11yearsormore.Morethan10%havebeenwithSmurfitKappaforover30years.Justunder70%ofourworkforceisinvolvedinproductionandmanufacturingactivitiescategorisedasdirectlabour,withthebalanceoftheemployeesengagedinmanagementactivitiesandinactivitiessuchassalesandmarketing,finance,humanresourcesandprocurement:allcategorisedasindirectlabouractivities.Approximately5%ofouremployeesareengagedunderatemporarycontract.
Almost82%ofourpeoplewereemployedintencountries(Germany,france,Mexico,Venezuela,Netherlands,UnitedKingdom,Colombia,Spain,Italy andSweden),withtheremaining18%oftheworkforceemployedintheremaining22countrieswerewehave aproductionand/orasalesandmarketingpresence. ThisdistributiongenerallyisinlinewithSmurfitKappa’sdistributionofactivities.
During2012,some17nationalitieswererepresentedatthemostseniorlevelsintheorganisation.Althoughwedonothaveapolicyofselectinglocalresidentsandit isourpolicytoselectthebestpersonavailableforanyposition,inpractice,byfarthegreaterproportionofsenioroperationalpositionsareheldbylocalmanagers(samenationalityasthecountrywheretheoperationislocated).Ingeneral,thecompositionoftheGroup’s
workforcetypicallyreflectslocalethnicdiversity,therebyenhancingthebondwithlocalcommunities.
In2012,16%ofallSmurfitKappaemployeeswerefemaleand84%weremale–seegraphabove.Ofallmanagementfunctions,16%areperformedbywomenversus84%bymen.Oftheindirectpositionsinareassuchassalesandmarketing,finance,humanresources,procurementandadministration,almost40%areoccupiedbywomen.
SmurfitKappa’spolicyistoincreasethelevelofparticipationofwomeninmanagementrolesinthecompany.Inthatcontextwearereviewingtheareasandroleswheretheretentionlevelandfurtheradvancementofwomenhasthegreatestpotentialforsuccess.
Inrelationtoreturntoworkandretentionratesafterparentalleavewedonotkeepcentralrecords.In2012,weanalysedthesituationintwocountries(PolandandSweden)andthestatisticsfortheyear2012areshownforillustrativepurposesinthetablebelow.
Poland
1. onparentalleave:10 (ofwhich1man)
2. returntoworkafterparentalleaveduring2012:10(retentionrate100%)
Sweden
1. onparentalleave13 (ofwhich5men)
2. returntoworkafterparentalleaveduring2012:8,ofwhich4men(retentionrate62%)
Female 16%60+ yrs 3% <20 yrs 1%
21-30 yrs 16%
30+ yrs10% <5 yrs
24%
5-10 yrs22%
11-20 yrs25%
21-30 yrs19%
31-40 yrs 26%
51-60 yrs 22%
41-50 yrs 32%
Male 84%
Female 16%
Male 84%
Total Employees by Age 2012
Female 16%60+ yrs 3% <20 yrs 1%
21-30 yrs 16%
30+ yrs10% <5 yrs
24%
5-10 yrs22%
11-20 yrs25%
21-30 yrs19%
31-40 yrs 26%
51-60 yrs 22%
41-50 yrs 32%
Male 84%
Female 16%
Male 84%
length of Service Total Employees 2012
Top 10 Countries Headcount 2012
0
1,000
2,000
3,000
4,000
5,000
6,000
SwedenItalySpainColombiaUnitedKingdom
NetherlandsVenezuelaMexicoFranceGermany
Female 16%60+ yrs 3% <20 yrs 1%
21-30 yrs 16%
30+ yrs10% <5 yrs
24%
5-10 yrs22%
11-20 yrs25%
21-30 yrs19%
31-40 yrs 26%
51-60 yrs 22%
41-50 yrs 32%
Male 84%
Female 16%
Male 84%
Management Gender 2012
Female 16%60+ yrs 3% <20 yrs 1%
21-30 yrs 16%
30+ yrs10% <5 yrs
24%
5-10 yrs22%
11-20 yrs25%
21-30 yrs19%
31-40 yrs 26%
51-60 yrs 22%
41-50 yrs 32%
Male 84%
Female 16%
Male 84%
Total Employee Gender 2012
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Social development [continued]
Attheendof2012,thetotalpercentageofemployeeturnoverintheorganisationhadincreasedfrom4.4%in2011to4.6%in2012.Retirementsaswellasthepursuitofothercareersorinterestswerethereasonsforthedepartureofmorethanhalfoftheemployeesin2012,whilerationalisationandredundanciesaccountedfor afurtheroneseventhofthedeparturesin2012.Therewere2,321newentrantstotheGroupduring2012,ofwhich63%inEuropeand37%intheAmericas.
Employee Training and developmentOurpeoplearethedrivingforcebehindourbusinessandSmurfitKappaiscommittedtothecontinuoustraininganddevelopmentofemployeesseekingtoachievetheirfullpotential.Apartfromourcommitmenttofacilitatethepersonaldevelopmentofouremployees,traininganddevelopmentneedstobeseentofurtherraisethestandardsofbusinessperformanceneededtocompeteasacompanyinthemarketsinwhichweoperate.Ourtraininganddevelopmentprogrammesfocusonareassuchasknowledgeofbestpractice,skilltransfer,andhealthandsafetycompliance.Theseprogrammesarecomplementedbyarangeofeffortsaimedensuringthatourbusinessethicsandstandardsarefullyunderstoodbyallemployeesandarereflectedintheirday-to-dayconduct.Theultimateaimofourtraininganddevelopmentprogrammesistohaveaworkforcethatis:
nPerformingwell
nHighlycommitted
nWorkingasateam
nConstantlylearning
nPromotedbasedonmerit.
In2012,theaveragenumberoftraininghours(includingtheentirerangeoflearninganddevelopmentinitiatives)was20hoursperemployee.
During2012,therewerenumeroustraininganddevelopmentactivities,bothcentrallyandlocally.Thetotaldirectexpenditureontraininganddevelopmentduringtheyearamountedtoapproximately€2.5million,withfurthersignificantindirectcosts.
Onacentrallevel,theAdvancedManagementDevelopment(AMD)Programmeisanexampleofadevelopmentactivitywhichhasevolvedovermore thanadecadethroughouttheGroupinEuropeand LatinAmericainconjunctionwiththeUCDSmurfitBusinessSchool.
Male Female
Number
0
50
100
150
200
ColombiaVenezuelaSwedenItalyNetherlandsSpainMexicoGermanyUnitedKingdom
France
Management Gender: Top 10 Countries 2012
Male Female
Number
0
1,000
2,000
3,000
4,000
5,000
SwedenItalySpainColombiaUnitedKingdom
NetherlandsVenezuelaMexicoFranceGermany
Total Employee Gender: Top 10 Countries 2012
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In2012,anewprogrammehasbeendevelopedand wasaddedtothecentralgroupprogrammeportfolio. TheGeneralandMillManager(GM)Programmeisthe firstofitskindinthecompanyandaimstoprovideparticipantswithbothinternalandexternalperspectivesonleadershipandprovidesinsightintotheircurrentapproach.TheprogrammeprovidesthenewGM’swiththevaluableopportunitytolearnnotjustfromtheseniormanagementteamandsubjectmatterexperts,butalsofromeachother.
Inadditiontotheseprogrammes,theworkingrelationshipwithtwoleadingEuropeanBusinessSchools(LondonBusinessSchoolandINSEAD)hasbeenfurtherstrengthened,providingexecutiveeducationforourSeniorExecutivestocontinuetheirlearninganddevelopment.
AnotherprogrammemanagedfromtheGroup’sheadoffice-andonewhichhasgainedgreatmomentumwithover350participantssinceitsintroductionin2007-istheEnglishImmersionProgramme.Nowanestablishedeventinourtraininganddevelopmentcalendar,itisfullyintegratedwithlocallanguageactivities,beite-learningorclassroom-basedlearning.ThiscustomisedprogrammebringstogetherindividualsfromvariousfunctionstoboosttheirconfidenceinusingbusinessEnglishintheirday-to-daywork.Duringthecourseof2012,afurther65participantswerecateredfor.
During2012,oneofourEuropeandivisionsconductedonaEuropeanlevel,a“360Degreefeedback”appraisalsystemandmadeuseofprofessionalexternalcoachingsupporttoprovidethoseexecutivesconcernedwithagreaterknowledgeoftheirstrengthsandtohighlightareasofdevelopment.
TheJuniorManagementTeamProgrammeconceptdevelopedinourpapermillinNettingsdorfer,Austria,hasbeensuccessfullytransferredandappliedtootherpartsofthebusiness,e.g.inourpapermillinPiteå,Sweden.Thisprogrammeprovidesanenvironmentforjuniormanagerstoexplorenewapproaches.
InourRoermondmillintheNetherlands,ouron-goingprogrammecalled“ProjectPaperTrain”,enablesexperiencedemployeestopassontheirknowledgetocolleagueswithlessexperience.Thisinitiativeisnowwellestablishedensuringthatvaluedknowledge/expertiseisnotlostovertime.
TheorganisationcurrentlyundertakesanannualPerformanceandDevelopmentReviewof90%ofitsmanagers.Typically,theseareconductedonaone-to-onebasisinvolvingtheindividualconcernedandhis/herimmediatemanager.Performancereviewsarealsoconductedwithnon-managerialemployees,currentlyapplyingtosome50%ofthiscategoryofpersonnel.
Carolina Atehortua from Smurfit Kappa in Colombia attending an internal training course.
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Social development [continued]
ENGAGEMENTWITHSTAKEHOLDERS
German Sales training programme: Sales Training Programme welcomes 1,100th participant
Boris Maschmann, CEOSmurfitKappaGermany
“Wefirstintroduced oursalestrainingprogrammein2007.Theideafortheprogrammewastoliftthegenerallevelofknow-how.Ourcompanystimulatesthepersonaldevelopmentofemployees.Aspotentialsneedsupporttodevelop,weoffertrainingprogrammesinmanydifferentareasofexpertise.Uptillnow wehavetrainedalmost1,100employees.Thetargetwastoestablish a“bestinclass”rateinoursalesactivitiestoensureaveryhighqualitylevelinourcustomerrelationship.Tostayontopwewillcontinuouslydevelopexistingandadditionaltrainingstocopewiththechangingdemandsofourenvironment–company,customersandemployees.“
Julia Kullmann, Keyaccountmanager SmurfitKappaSouthwest
“Iparticipatedintheprogrammeduringmytraineeshipandtookpartinallthesalesmodules.Iquicklygot toknowthecorporatephilosophy,learnedthebusinessfundamentalsandhowtodealwithcustomersandpeopleingeneral.Theseminarleaderscreatedarelaxedbutefficientatmospherewhichstimulatedthelearningexperience.Games wereimplemented intheprogrammein aninterestingandeducationalway.Ithinkitisveryimportanttogettrainedregularly andSmurfitKappafacilitatesthatvery well.Thevarietyof theprogrammeisremarkable.Ialreadyfoundsomeseminars Iaminterestedinforthefuture.”
Monika Schaper, Salesmanager SmurfitKappaHerzbergerWellpappe
“Between2003and2010Iattendedtrainingprogrammesthatcoveredawiderange oftopicslikehealthandsafety,andsalesandfinance.Iexperienced averyeffectivelearningmethodinapleasantatmosphere.Weparticipatedinvariousactivitiesandreadmanycasestudies.Wecompletednumerousquizzeswiththesupportofourcreativeandprofessionaltrainers.IntheendIfeelIgotalotofhelpfulsuggestionsformydailybusiness aswellasnewinsightsintomyrelationshipwithourcustomers andindealingwith ourownsalesteam. Myexpectationswereexceeded!Thistrainingisveryimportantforcontinuousimprovement.“
Torsten Antosik, Accountmanager SmurfitKappaBrühl
“Myexpectationwas toextendmyhorizon. Inthefourmodules IparticipatedinIexperiencedawellthoughtouttrainingset-up.Allsubjectsdiscussedwereclearandeasytoremember.Thetrainingprogrammeswerereallyhelpfulinmydailywork.Iusemanysmallpointerseachdayandstillremembermostofthetrainingcontent.Networkingwiththecolleaguesfromourotherplantsisanothergreatadvantage.Duringeachtrainingmoduleyouusuallyexchangeyourownprofessionalexperienceswiththeotherparticipants.In myopinionthetrainingpromotesworkingin ateamaswellassupportingthepersonalityofeachindividualparticipant.“
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GraduatesGraduateTraineeProgrammeswithinEuropeandLatinAmericacontinuetoprovideopportunitiesfortraineesjoiningtheGrouponcompletingtheiruniversityprogrammestokick-starttheircareers.Overthepastyearstheintakehasincreasedgraduallyandamounted toatotalof139in2012.
ManywhohavejoinedthecompanyasGraduateTraineeshavesuccessfullyprogressedtheircareerwithinthecompany.Wehaveseenthegreatcontributionthatgraduatesandstudentscanmaketoourbusiness,addingvalueandmaximisingtheirpotential,whilehelpingustobuildforthefuture.
Retired employeesOurretireeshaveaspecialrelationshipwithSmurfitKappawhichisgratefulfortheircontributiontoitsgrowthandsuccessovermanyyears.Todaythereareapproximately13,000pensionersfromSmurfitKappaandthereareavarietyofdifferentassociationsindifferentcountriesthatmanageahostofsocialactivitieswhichgreatlyhelptomaintainthebondsthepensionersenjoyedasworkingcolleagues.
Whilstmostoftheactivitiesaremanagedbythepensionerassociationsthemselves,thereisalsoon-goingGroupsupportatlocallevel.
internal communicationWevalueregular,timelyandefficientcommunicationwithouremployeesandtheirrepresentatives,conductedinanopenandconstructivemanner,toexchangeviewsonallmattersaffectingourbusiness.TopicsincludeHealthandSafety,workingconditions,termsandconditionsofemployment,theperformanceofthebusiness,thebusinessoutlook,investmentdecisions andacquisitionsanddisposals.
WearecommittedtoprovidingouremployeeswithregularupdatesontheoverallperformanceofSmurfitKappaandtheindividualbusinessunits,andonanyissuesthatmaypotentiallyhaveanimpactonthem. Indoingso,wemakeuseofappropriatemediawhichincludedepartmentalandfunctionmeetings,sitegeneralbriefingsandmanagement/employeerepresentativemeetingsatlocal,nationalandregionallevels.TheinternetandSmurfitKappa’sinternalintranetarealsousedextensively.
Mostofouroperationshaveinternalcommunicationsvianewsletters,announcementsandlocalintranetmessages,thesemediapromoteaconstantflowofnewsandemployeeinterchange.
European works CouncilSmurfitKapparecognisestherightofemployeestofreelyassociateandallSmurfitKappaemployeesarefreetojointradesunions.Inmanycountries,SmurfitKappaconductsformalemployeeconsultationprocesseswiththelocalWorksCouncils.
ByfarthelargestrepresentativegroupinSmurfitKappaEuropeistheEuropeanWorksCouncil(EWC),whichrepresentsabout80%ofouremployeesfromthe 21countriesinEuropewherewehaveoperations.
TheAgreement,renewedin2011,governingthefunctioning,rightsanddutiesoftheEWC,willremain inplacefortwomoreyearsuntil2015.
During2012andasperourAgreement,wehadour tworegularEWCforumsandthreeSelectCommitteemeetings.
TheEWCconsistsof30members,representingallemployees.Theprocedureforthenominationandselection/electionofitsmembersisinaccordancewithnationalregulationsandpracticeineachofthecountriesinvolved.AlthoughtheEWCisnotanegotiatingforum,itdoescomplementexistinglocalandnationalstructureswhereinformationdisseminationandconsultationoccurs.
Typically,thetopicscoveredatsuchmeetingsinclude:
nTheGroup’sfinancialstatus.
nProspectivedevelopments.
nRelocation,productioncurtailmentsorbusinessclosuresinanycountrywheretherearetransnationalimplications.
nEnvironmentalprotection.
nEmploymentopportunities.
nHealthandSafety.
Whenqueriesarisefromouremployeesand/ortheirrepresentativesormeetingsarerequested,ourpolicy istorespondinatimelymanner.
Whenadecisionistakentointroducechange,employeeconsultationtakesplacepromptly.Duringthecourseofsuchdiscussions,theimpactoftheproposedchanges,togetherwiththeimplementationplans,arediscussedwithemployeesandtheirrepresentatives.
Theoutcome,reflectinglocaland/ornationalcustomandpracticeorlegislation,willresultinoneormoreofthefollowing:severancepay,careercounselling,jobsearchworkshops,financialadvice(includingpension)andearlyretirementwhereappropriate.
Theperiodsofnotice,measuredintermsofthetimebetweentheinitialcommunicationstotheemployeesconcernedandtheintroductionofthechanges,rangefrom6weeksto24weeks.
Acquisition and procurement practicesAkeyaspectofduediligenceinanyacquisitionprocessinvolvingSmurfitKappaisanexaminationofthetargetorganisation’shumanresourcepoliciesandpractices,bothintermsoftheircompliancewithlocal,nationalandinternationallawsandintheirday-to-dayinterpretationandapplicationintheorganisation.
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Social development [continued]
Intheeventofanypotentiallyseriousissuearisingasaresult,suchaschildlabour,theacquisitionprocesswillbereviewedastotheappropriatenessofcontinuing withit.
Thereweretwoacquisitionsduringthecourseof2012andnosuchissuesarose.
SmurfitKappaiscommittedtotheprinciplesreflected inbothitsCodeofBusinessConductanditsSustainableSourcingPolicyStatementinallofitsdealingswithitssuppliersandcontractors.
InkeepingwiththeSustainableSourcingPolicyStatement,SmurfitKappaaimstoworkwithsupplierswhoshareitsdeclaredvaluesofgoodsocialcitizenshipinparticularinsuchareasascompliancewiththerelevantregulations,theprovisionofhealthyandsafeworkenvironmentsanddemonstrableadherencetohumanrightsinallitsaspects.
OfequalsignificancetoSmurfitKappaisthecommitmentofthesesamesuppliersandcontractorstosimilarsociallyresponsiblebehaviourintheconductoftheirownbusinesses.
StrategicsuppliersarebeingencouragedtojointheUNGlobalCompactinitiativeandtheSocialandEthicalDataExchange.Theyarealsobeingencouragedtodiscloserelevantdatainthisregard,eitherdirectlytoSmurfitKappaorthrougharecognisedorganisation.
Since2010,weauditkeysuppliersinrespectofanumberofindicatorsincludinghumanrights.
InEurope,aspartofarollingprogramme,justover80%ofoursignificantsuppliershavesofarbeenaudited,includingscreeningforhumanrights.Attheendof2011,16outofatotalof55strategicsuppliershadbeenaudited.During2012,30morestrategicsupplierswereaudited.Theremainingstrategicsuppliersareplannedtobeauditedin2013.Typically,eachauditresultsinalistofactionpointsforthesupplierofwhichtheresult isthenfurtherdiscussedwithourauditteamsafter sixmonths.
SmurfitKappa’sSustainableSourcingPolicyandSocialCitizenshipPolicyStatements,togetherwiththeCodeofBusinessConduct,canbedownloadedfromtheSmurfitKappawebsite.
Group AwardsThroughourSmurfitKappaAwardscompetitionsinbothEuropeandtheAmericasregions,westrivetostimulatetheambitionofourpeopleandourbusinessunitstoalwaysdobetter.Thevariousawardcompetitionsserveseveralpurposes.Thecoreobjectiveistoencourage,recogniseandrewardentrepreneurship,innovationandsuperiorperformance,whetheritisintheareaof
operations,innovation,safetyorsustainability.Theawardsarevisibletotheorganisation’sentireworkforceandthishelpsinsharingtheobjectivesoftheorganisation,creatinganaspirationalclimateandenforcingitspriorities.
InEurope,wehaveinternalcompetitionsforOverallPlantoftheYear,HealthandSafetyAwards,InnovationAwardsandSustainabilityAwards,eachwiththeirownobjectivesandpurposes.for2012,ourLitholaminatedprintedpackagingsolutionsoperationLithoPacinNybroinSwedenwasawardedOverallPlantoftheYearforitsexcellentandabovemarketperformance,vision,desiretoinnovateanditscommitmenttooutperformatthehighendoftheprintingmarket.
InHealthandSafety,theAwardsforExcellenceinSafetywereawardedtoourrecycledpapermillinMengibarinSpain,ourcorrugatedoperationinSoestintheNetherlandsandinWareninGermany.TheseoperationsachievedamultiyearrecordofworkingwithoutanylosttimeinjuriesoraccidentsandshowedtheircommitmenttocleanandtidyhousekeepingwhilehavingalocalmanagementteamthatdemonstratedcommitmenttoHealthandSafety.TheAwardforExcellenceinSafetyImprovementwasawardedtoourrecycledpapermill SSKinBirminghamandourcorrugatedoperationinDiss,bothintheUK,fortheirexcellentsafetyrecordandtheirrespectivesafetyimprovementprogrammes.
TheInnovationAwardsandtheSustainabilityAwards areEuropeancompetitionsspanningaperiodofapproximately18months.ThenextAwardswillbe presentedinSeptember2013.
IntheAmericasthereareinternalcompetitionsfortheAwardPlantoftheYearbyregion/countryandfortheAmericasasawhole.OurfoldingCartonoperationinMexicowasnamedOverallPlantoftheYearintheAmericasforitsexcellentcommercialandoperationalperformanceoveraperiodof7years.InArgentinaandChile,ourcorrugatedplantinChilewasawardedforitsresilienceaftertheearthquakein2010anditsoperationalrecoverysince.InColombia,ourcorrugatedoperationinBarranquillawasawardedforitsoperationalimprovementsanditsexcellentsafetyrecordofzeroaccidentsin2012.InMexico,ourGuanajuatocorrugatedoperationwasawardedforgoodoperationalperformanceandrecognitionsfromboththeMexicangovernmentfortheirsocialresponsibilityprogramaswellasfromanumberofimportantcustomers.InVenezuela,ourcorrugatedoperationinCaracaswasawardedforitssustainedgoodoperationalperformanceanditsgoodrelationswithitsemployeesdespitechallenginglocaleconomic,socialandpoliticalconditions.
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3. OuR iNVOlVEMENT iN THE COMMuNiTyCommunityinvolvementisakeycorporateresponsibilityalreadypractisedinmanylocationswherewehaveoperations.
Ourobjectiveistocontributepositivelytotheeconomicandsocialdevelopmentofthecommunitiesofourhostcountrieswhereweareprivilegedtooperate.Whileourbiggestcontributiontoourcommunitiesisinthejobswecreatethroughourinvestments,wearealsocommittedtorespondtothecommunities’socialneeds.Westrivetobeanintegralpartofthecommunitieswherewearelocated,bysupportingactivitiesandcommunitysupportprogrammesfocusingonareassuchaseducationandhealthprogrammesandareasofourspecificexpertise.
Wedothisintwofundamentalways,throughmakingfinancialcontributionsand/orbyvolunteering.
Inthecourseofourbusinesstransactions,wealsotakeintoaccounttheconcernsofthewidercommunity,includinginternational,nationalandlocalinterests.Eachplantmanagerisexpectedtorepresentthecompanyaspartofthelocalcommunityandplayapositivepartinitsdevelopment.
Itfallstoeachplantmanagertomaintainanactivedialoguewiththecommunitieslivingincloseproximitytohis/herfacility,respondinthefirstinstancetoanycomplaintsorissuesofconcernandinitiateappropriateremedialactionwherenecessaryandpossible.
Our COO, Tony Smurfit (front middle standing),
amid employees celebrating 150 years of paper making
at the Smurfit Kappa SSK mill in Birmingham,
United Kingdom. The SSK mill today plays a vital role in providing local
employment.
United Kingdom: 150 years of paper making in Birmingham
foundedbackin1862bythreeVictorianentrepreneurs,theSmurfitKappaSSKpapermilltodayplaysavitalroleinprovidinglocalemploymentaswellasreducingtheBirmingham’scarbonfootprint.Almost40,000tonnesofpaperandcardboard(recycledbyBirmingham’sresidentsintheirBirminghamCityCouncilkerbsidecollectionboxesorinSmurfitKappaRecyclingpaperbanks)istakentothepapermilleveryyearwhichisthenusedbythemillasarawmaterialtomakenewpackagingpapers.
SharonLea,StrategicDirectorforEnvironmentandCulture,BirminghamCityCouncil:“BeingabletorecycleBirminghampaperandcardboardinBirminghamwhilstcreatinglocaljobsforBirminghampeoplewasafantasticgoodnewsstoryfortheCityandthatrecyclingcontinuedtobeaveryimportantpartoftheCouncil’sstrategytofurtherreducetheamountofwastethatgoestolandfill.RecentinitiativesbetweentheCityCouncilandSmurfitKappaRecyclinghavetargetedBirminghamschoolstoprovideinformationandlocalrecyclingfacilitiestoyoungpeopleandworkisstartingtoencouragelocalbusinessestorecyclerecoveredpaperandcardboard.from1993,whenjust750tonnesofpaperwassegregatedforrecycling,therelationshipbetweenbothorganisationshadbecomeincreasinglyimportanttothelocaleconomyandhelpingtoreduceharmfulgreenhouseemissions.
Antonella Baldini, Mayor of Camposanto, Italy.
ENGAGEMENTWITHSTAKEHOLDERS
italy: fund raising campaign PanaroAntonella Baldini,MayorofCamposanto,Italy
“Inthenightof20May2012anearthquakecameintoourliveswithunprecedentedviolence.Weneverexpectedacatastropheofthiskind,butthefactthattheearthquakehadcausednovictimswasanewstartingpointforthe3,300inhabitantsoftheCityofCamposanto.Weimmediatelystartedtorestoreourbuildings,butitwasthesecondearthquakeof29Maythatliterallybroughtustoourknees.About230peoplefoundrefugeinanemergencycamp.AlmostallSmurfitKappaemployeessuffereddamagesfromearthquake:thehousesof61peoplewereseriouslydamagedand63morelightlyaffected.Despitethis,manyofthemvolunteeredtohelpothers.Peoplewentonworkinginspiteofthedamages.Themanagementteamfocusedonitspeoplefirst alsohelpingthemtocopefinanciallywiththiscatastrophe.Thecompanyhasdemonstratedgreatcommitmenttoourcommunitybyremaininginthetownandcontributingtoitsrebirth.IwanttothankSmurfitKappa,particularlytheplantmanager MorenoDonati,onbehalfofmyselfandthewholecommunity.Heneverfailedtohelpwherethe needwasurgent.Theplanofreconstructionwill belonganddifficult,butwemustviewthisterribleearthquakeasanopportunitytorebuildourcityevenbetterthanbefore.Wemustpassabetterfutureontoourchildren,thecitizensoftomorrow.”
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ENGAGEMENTWITHSTAKEHOLDERS
Colombia: “Smurfit kappa School has improved my standard of living”
SmurfitKappafullyrecognisestheresponsibilitythatcomeswithitsparticipationintheruralcommunitiessurroundingitsforestrylandbase.InconjunctionwiththeSmurfitKappaCartóndeColombiafoundation,SmurfitKappahelpstoimprovethelivingconditionofthecommunitieswithintheareaofinfluenceoftheforestryoperations.Inaddition,continuingeducationandtrainingprogrammesareheldforforestryworkers,withforestryskillsandhealthandsafetyatworkbeingthemostimportant.TheInstitutoTécnicoAgropecuarioyforestalSmurfitKappaCartóndeColombia(ITAf)providesformalhighschoolleveleducationtoteenagersofthecommunitiessurroundingtheSmurfitKappaforestryoperations.WilliamLopezisaformerstudentandWilsonObandoisthefatheroftwostudents.Theytellushoweducation,thatwasmadepossiblebySmurfitKappa,impactedtheirlives.
WilliamLopez:“Istudiedagriculture,livestockandforestrypracticesattheITAf.Itnotonlyhelpedmetoimprovetheproductionofourfamilyfarm,butalsotoraiseourcropqualityandtobecomemorecompetitive.WegrowPergaminocoffeethatisexported.AttheSmurfitKappaSchoolIlearnedaboutenvironmental,socialandeconomicsustainabilityissues.Iapplythatknowledgeonadailybasisatourfarmandvolunteer forsocialprojects.”
WilsonObando,fatheroftwoITAf-students:“Mytwo girlsarenowstudyingattheUniversity.Itisagreatexperience.Throughspecialloans,Iwasabletoexpandmyactivitieslikefarmingbeansandcoffeebeans,andoperatingabakeryandapaperandsuppliesshop.Thismadeitpossibletoearnenoughtofundtheeducation ofmydaughters.AccesstoITAfservices,liketrainingformeandmywife,hasimprovedmystandardofliving. AtITAfpeoplecareaboutusandmotivateus.”
Wilson Obando, father of two students at ITAF.
William Lopez, former student of ITAF.
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Colombia: Biofuel Briquettes open a world of opportunities
SmurfitKappainColombia,GasesdeOccidenteandthetrainingorganisation,CentrodeCapacitaciónDonBoscohavejoinedforcesonalocalprojectfortheproductionofbiofuelbriquettes.ByusingforestryresiduesfromlocaltreessuchaspineandEucalyptustreesandthestumpsofcoffeeplantsasrawmaterialforthesebiofuelbriquettesmultiplesustainabilityobjectiveswererealised.Theprojectgeneratesemploymentandincomeforthecommunity,preventsloggingofnaturalforestsandrecycleswasteproducts.Thebriquettesarealsoaninnovativeandenvironmentallyfriendlyfuelforheatingboilersandcookingstoves.Athirtycentimetresbriquettecangenerateheatforsixhours.
MostrawmaterialscomefromtheforestryplantationsofSmurfitKappaCartóndeColombia.Thecoffeestumpsaresuppliedbylocalfarmers.TheproductionplantforthebiofuelbriquettesislocatedinSantanderdeQuilichaoandthenecessarymachinerywasdonatedfromSwitzerland.
The netherlands: Putting books in their box - the library project
SmurfitKappaTWINCORRinHoogeveenfoundaverycreativeapproachtohelpitscommunity.Itwasaskedtosupportaninitiativeinwhichfivelocallibrariesclosedtheirdoorstoformonelargelibrary.
Thechallengewastoremoveandstoremorethan100,000booksandCD’sforaperiodoffiveweeks.InsteadofmakingafinancialcontributionSmurfitKappaTWINCORRaimedforapracticalsolutioninwhichthelocalcommunitywouldparticipateandeventuallywouldbestimulatedtovisitthenewlibrary.Incooperationwiththelibrarymanagementandsponsors,SmurfitKappaTWINCORRdeveloped10,000specialbook-likeboxes.LibrarycustomerscouldfilltheboxeswithbooksandCD’sandreturnthemtothenewlibraryfiveweekslater.Toinvolvetheyouthaswell,abook(box)coverdrawingcompetitionwasorganised.Togethertheseboxesformedahugewallaspartofanexhibitionat thenewlibrary.
Colombia: El Caracolí welcomes 108 new children
ElCaracolí,theCentreforIntegralEarlyChildhoodDevelopment,islocatedclosetoSmurfitKappaCaliinthemunicipalityofYumbo.Thecentrewhichoffershelptointotalapproximately150youngchildrenhasthesupportofthefundaciónSmurfitCartóndeColombiaandsomeotherinstitutions.
ElCaracolíseekstogenerateapositiveandessentialchangeinchildren,youngerthanfiveyearsofage,andtheirfamilies.ToachievethisElCaracolípromotesintegralcareandearlyeducationinlowincomecommunities.Companiesandpeoplecancontributetothe‘SeedsforElCaracolí’sothatmorechildrenwillhaveabetterfuture.EmployeesofSmurfitKappainColombiacanmakeadditionalcontributionstoElCaracolíbyjoiningtheinitiative‘ZeroWaste’.EachkilolessoffoodwastedfromthecafeteriasoftheCali,Bogotá,andMedellínplants,resultsinmorehealthyfoodfor thechildrenprovidedandsponsoredbySodexo,thecompanythatmanagesthecafeteriasinthoseplants.
Smurfit Kappa TWINCORR in the Netherlands aimed for a practical solution, special book-like boxes, in which the local community could participate and be encouraged to visit the new library.
Companies and people can contribute to the ‘Seeds for El Caracolí’ so that more children will have a better future.
Checking on the local project, for the production of biofuel briquettes, between Smurfit Kappa in Colombia, Gases de Occidente and training organisation Centro de Capacitación. From left to right: Paula Andrea Vivas - Centro de Capacitación, Arturo Gutierrez - Gases de Occidente, Bernardo Guzman - Smurfit Kappa Cartón de Colombia, and Fr. Germán Londoño - Don Bosco Centre.
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Germany: Smurfit kappa South Germany fights youth unemployment
About10%ofallyoungadultsinGermanycannotfindentryintovocationaltraining.Thankstothesystematicinvolvementofstakeholdersfromindustry,governmentandsocietyaspecialsixmonthsprogramme,named“Joblinge”,isabletohelpyoungpeoplestartacareer.
SmurfitKappaWellpappeZwiesel,partofSmurfitKappaSouthGermanywithintegratedcorrugatedplantsinPlattling,Neuburgandfeucht,supportstheprogrammethatwasinitiatedbyTheBostonConsultingGroupandtheEberhardvonKuenheimfoundationofBMWAG.Theresultsareremarkable:60%oftheyoungparticipantsmanagetoenteracompanytrainingprogramme.SmurfitKappaWellpappeZwieselisdedicatedtohelpfightthegrowingyouthunemploymentprobleminGermany.Theirfocusistosupporttheyoungadultstolearntotrusttheirowntalents,developnewskillsandsecureemployment,sothattheycanimprovetheirsocialcircumstances.
Ireland: Smurfit kappa charity cycle in aid of lauralynn, ireland’s first children’s hospice
SmurfitKappa’sGroupofficeinDublinorganisedamulti-daycharitycycleeventfromEdinburghtoDublininSeptember2012withallproceedsraisedgoingtowardsLauraLynn,Ireland’sonlychildren’shospice.
Thevolunteercyclistscompleteda50kmclimbfromEdinburghtoLanarkondayone,daytwoentaileda160kmcycletoStranraerandfinallytheycompletedthealmost400kmthatdividesEdinburghfromDublinwithacycleof180kmfromBelfasttoDublinwheretheywerejoinedandcheeredbyalargenumberofcolleaguesfromtheGroupheadofficecompletingasuccessfulevent.
Thejointeffortraisedover€52,000forLauraLynn,whoplantousepartofthismoneytobuildaMulti-SensoryGarden.LauraLynnhasbeendescribedasa‘homefromhome’thatcaresforchildrenandtheirfamilieslivingwithlife-limitingandlife-threateningconditions.LauraLynnstrivestoputlifeintoachild’sday,makingthemostoftheirshortandpreciouslives.SupportinginitiativessuchasLauraLynnishowSmurfitKappamakesitscommitmenttoinvestinlocalcommunitiestangible.
Venezuela: Control vegetation fires – extinguish community problems
TheVenezuelanforestryDivisionofSmurfitKappahasfoundanotherwaytohelpthecommunityaroundforestfarmsneartothetownofOspino.TwentyyearsagotheforestryDivisioninitiatedavegetationfirebrigadetocombatthefiresthatoccurduringthedryseasonfromDecembertoApril.
Thefire-fightersfromthe“forestProtectionCentre”areverymotivatedtogivetheirservicestothenearbycommunitiestoprotectpeopleandcrops.TheVenezuelanwesternplainsanditssavannahareverypronetowoodlandfires.During2012theSmurfitKappafirebrigadeassistedthelocalcommunitybyfighting81firesoutsideourownforests.Thesefirestypicallyoccurinnaturalforestsoronagriculturalland.
Richard Ellerbeck at work at Smurfit Kappa in Zwiesel, Germany. The systematic involvement of stakeholders with different backgrounds in a special six month programme, called Joblinge, is designed to help young people to start a career.
Smurfit Kappa’s Group head office in Dublin, Ireland organised a multi-day charity cycle event with all the proceeds raised going towards LauraLynn, Ireland’s only children’s hospice.
The Forestry Division of Smurfit Kappa in Venezuela assisted the local community by fighting 81 fires outside our own forests.
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Venezuela/Mexico: Building the future by renovating schools
In2012,SmurfitKappainVenezuelaandMexicosupportededucationbysponsoringtherenovationofsomeneighbouringschools.Supportrangedfromprovidingtools,expertiseorthefinancestorenovatefacilities.
ThesalesdepartmentofourValenciapapermill ofSmurfitKappainVenezuela,initiatedaself-financingprojecttohelpHighSchoolBolivariano,locatedclosetothemill.Twoclassroomswereremodelled,woodworkmaterialsandtoolsdonated,andSmurfitKappahelpedtheschooltoset-upaprogrammetoselltheirwoodworksotheycangenerateincomethemselveswithwhichmoreapprenticeshipprogrammescanbefinanced.AnotherexampleisSchoolVicenteGuerreroinMexicolocatednexttotheSmurfitKappaCerroGordopapermill.Morethan900students,parents,teachersandSmurfitKappaemployeescametogetherforafestiveopeningoftherefurbishedbathroomsthatweremadepossiblebySmurfitKappa.Theschoolitselfdidnothavethefinancestoundertaketheproject.
Argentina: Smurfit kappa in Sunchales cooperates with municipality in Quality of life project
SmurfitKappaSunchalestogetherwithanumberofotherlocalstakeholderssignedanagreementwiththemunicipalityofSunchalesaimedatimprovingthestandardoflivinginthecityandtheregion.
Throughthiscooperation,whichisinitiallyforaperiodofthreeyears,theinvolvedpartiescommitthemselvestocooperateonissueslikeelectricitysupply,thehandlingofcitywaste,transportation,logistics,andthedevelopmentofsustainableproductionareas.Effortswillbemadetorealiseanagri-foodindustrialpark,acogenerationpowerplant,alogisticalhuband atreatmentplantforsolidandliquidwaste.furthermorethepartieswillcooperateonadoptingcommonpoliciestoprotecttheenvironment,conservenaturalresources,promotesustainabledevelopmentandexchangeinformationonenvironmentalissues.Inadditionthepartieshaveagreedtopromotescientificresearchandthedevelopmentofcleantechnologies.
Italy: Solidarity in aftermath of major earthquake
InMay2012theregionaroundourplantinCamposantosulPanaro,closetoBolognaandModenainItaly,wasstruckbytwoearthquakesmeasuring6.0and5.8ontheRichterscale.Manypeoplediedorwereinjured.Churches,factoriesandhousescollapsed,leaving14,000peoplehomeless.
Toprovideimmediatehelptothosecolleagueswhosuffereddamagetotheirhomes,SmurfitKappaItalyorganisedafund-raisingcampaign.Atotalof€157,000wasraisedforSmurfitKappaemployeeswhowerevictimsoftheearthquake.ThissumwasachievedthroughaninitialdonationbySmurfitKappa’s1,300Italianemployeesofaround€60each.ThetotalemployeedonationwasthendoubledbySmurfitKappa.Two-thirdsofthetotalsumwasdividedamong15colleagueswhohadsufferedmajordamagetotheirhomes.Localauthoritieshadprepared“safe/unsafedeclarations”forthehousesinthearea,andtheseprovidedobjectivecriteriaforthefullytransparentprocessofdecidingwherethefundsweremostneeded.Theremainingone-thirdofthemoneywasgrantedto46employeeswhosehomeshadsufferedminordamage.
In 2012, Smurfit Kappa in Mexico (picture above) and Smurfit Kappa in Venezuela (top picture) supported education by sponsoring the renovation of some neighbouring schools. Support ranged from providing tools, expertise and the finances to renovate facilities.
“The Sunchales Municipality acknowledges the support from Smurfit Kappa for the programme called “a better life”. From left to right: Ezequiel Bolatti - Mayor of Sunchales and Gerardo Lattanzi - Plant Manager of the Smurfit Kappa Sunchales plant in Argentina.”
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Social development [continued]
Colombia - 50th Anniversary fundación Smurfit Cartón de ColombiaSustainabledevelopmentmanagementpracticeshavebeenanintegralpartofSmurfitKappainColombiasinceitsoperationsstartedin1944,longbeforethetermwasintroducedinthebusinessworld.forexample,50yearsagothecompanyfoundedfundaciónSmurfitCartón deColombia.
Thefoundationwasinitiallyestablishedtoimprovethelivingstandardsofthelocalpersonnelandtheirfamilies,andtohelptheirchildrengetaneducation.OvertheyearsthelatterhasbecomethemainfocusoffundaciónSmurfitCartóndeColombia.
development of local communityWhentheforestryDivisionwasestablishedin1969, thescopeofthefundaciónbroadened,alsoassumingresponsibilityforfacilitatingthedevelopmentandimprovementofcommunitieslocatedinproximity toitsplantations.
“Theeconomicstrengthofthefundaciónhasbeennoteworthy”,statesEdgarMuñoz,anattorneyandformeremployeeofSmurfitKappainColombia,whoactivelyparticipatedinthedevelopmentofthefundación. “InadditiontobeingashareholderinSmurfitKappaCartóndeColombia,wehavesecuredthecommitment ofdomesticandinternationalorganisationswithwhomwehaveimplementedprogrammesforfarmersand urbancommunities.”
Education, income Generation and Empowerment of CitizensEducationcontinuestobeoneoftheprioritiesforthefundación.Througheducationpeoplecantrulybecomepartoftheirsocietyandattainthesocialequitythecountryneeds.Itmakespeoplecompetitive,provideshelpfulsocialresponsibilityandreinforcesdemocraticvalues.formalandnon-formalstrategieshavebeenimplementedrangingfrombasichighschooleducation,touniversityscholarshipsandcontinuededucationforadults.
Thefundaciónalsocontributestowardstheeradicationofpovertybyimprovingtheincomeoftheneighbouringcommunities.TheIncomeGenerationprogrammestimulateslocalstart-upinitiativesrunbylocalcitizenswholearntoshowleadershipthroughtheseinitiatives. Itofferstechnicalassistanceandadvisoryservices,andpromotessocialandcommunitynetworks.Inthisway thefundaciónensureseffectiveuseofresourcesandmixesitwithsocialsupportmeasuresthatgenerateempowermentandautonomyinpeopleandGrassRootOrganisations;valuesthefundaciónwillcontinuetopursueinthecomingyears.
Colombia - 50th Anniversary fundación Smurfit Cartón de Colombia
lANdMARkS1959Educationalfundforchildreninmemoryof MDfrankC.Carder(deceased).
1962PredecessoroffundaciónSmurfitCartónde Colombia(non-profit)established.
1969forestryprogrammeinCaucaregion,foundationaware ofregionalsocialreality.
1984foundingofhighschoolsandmediumtechnicaleducationinstitutions.
1995Variouspartnershipsandestablishmentoffinancialindependencethroughownershipofcompanyshares.
2002Socialcontributionstoschoolsclosetocustomers andgrassrootsparticipation.
2003Continuededucationforforestryemployees, theirfamiliesandcommunities.
2004fOCUSfundandPublicPrivatePartnershipproject withcontributionofGTZ.
2008ProductivePartnershipstoimproveagriculturaltechnology.Wonaward.
2009SmurfitKappaSocialResponsibilityAwardfor PPPProjectfundedbyGTZ.
2010Co-foundingofElCaracolíIntegralEarlyChildhoodCentrefoundation.
2012Thefundacióncelebratesits50thanniversary.
From left to right: Oscar Rojas and Beatriz Eugenia Mejía - Fundación Smurfit Cartón de Colombia, Germán Jaramillo - Fundación Empresarial para el Desarrollo de Yumbo, María Eugenia Carvajal - wife of Cali mayor, Andrés Felipe Muñoz and Nicolás Pombo - Smurfit Kappa Cartón de Colombia.
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international - update on the Smurfit kappa foundationThefoundationwasestablishedinfebruary2011, whentheBoardofSmurfitKappaagreedtoestablisha€3millionfundand,overthesubsequentthreeyears,€500,000couldbeinvestedannuallytofinanceprojectsthatcamewithintheobjectivesofthefoundation.Theremainderofthefundsarenowinvestedandtheinterestwillcontinuetobeavailabletofundworthwhileprojects.
Thefoundationsupportsprojectsinthecountrieswherewehavetheprivilegetooperate,withtheinitialfocusonprojectsinvolvingyoungdisadvantagedchildren(some 7yearsofageandunder)intheareasofhealthandnutrition,basiccareandearlyeducation.Currentlythefoundationsupportsthreesuchprojects-twoinIrelandandoneinColombia.
OneoftheseistheEarlyLearningInitiative(ELI)attheNationalCollegeofIreland.Thisisacommunity-basededucationinitiativeinDublin’sinner-city.TheELIfocusesonhelpingmarginalisedcommunitiesthroughtheprovisionofinnovativeparentandchild-learningsupportprogrammes.ItsaimistowidentheparticipationineducationforallandtoallowchildrentotakeadvantageoftheIrisheducationsystemandhavethesameopportunitiesaschildrenfrommoreaffluentareas.
Thefoundationalsosupportsfledglings-EarlyYearsEducation&Care.Thisprojectisbasedinanunder-privilegedpartofDublinandprovideseducationand
after-schoolcaretochildreninthelocalarea.Thisserviceoffersparentsthechancetoreturntoeducationorworkandalsoprovidesemploymentinthelocalarea.Withthesupportofthefoundation,fledglingsplanstoopenfournewcentreseachyear,overthenextthreeyears.Thissocialenterpriseaimstobeself-sustainableby2016,transformingthelivesofhundredsofchildrenandfamiliesintheprocess.
InColombia,thefoundationsupportsElCaracolí,anearlychildhooddevelopmentcentrecreatedbythefundaciónSmurfitCartóndeColombiainclosecooperationwithotherfoundationsworkinginthecountry.ItislocatedinYumbo,ontheoutskirtsofCali,whereSmurfitKappa’smainproductionplantinColombiaisbased.Thecentreprovidesanintegratedprogrammewhichincludeseducation,nutritionandbasiccare.TheSmurfitKappafoundationhaspledgedtoprovidefundingforElCaracolítoconstructanewcentrefor300under-privilegedchildrenintheregion.
Thefoundationcreateditsownwebsitein2012: www.smurfitkappafoundation.com,providinginformationonthetypeofprojectsthefoundationisfocusingonandhowtoapplyforfunding.
Caracoli: the Foundation supports El Caracolí, an early childhood development centre created by the Smurfit Cartón de Colombia Fundación, in close cooperation with other foundations working in the country.
Early Learning Initiative: The ELI focuses on helping marginalised communities through the provision of innovative parent and child-learning support programmes.
Fledglings: The Foundation also supports Fledglings - Early Years Education & Care project that provides education and after-school care to children in the local area. The Irish Minister for Children and Youth Affairs, Frances Fitzgerald, is shown with some of the participants.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT201266
sustainability in ouR business
SmurfitKappaaimstomakethedifferenceinitskeyareaofexpertise:providingcreativeandinnovativepaper-basedpackagingsolutionsthatsupportourcustomers’growthanddevelopment.
Asacustomer-focusedinnovation-drivenintegratedcompanyourprincipleobjectiveistocreateeconomicvalueforourcustomersandotherstakeholderswhileactingresponsiblyinallaspectsofourbusiness.Weconsiderprofitablegrowthasapre-requisitetoadvanceourdriveforsustainability.Webelievethatwhenwecandevelopourbusinessinasustainablewayitwillalsoallowustoprovideourstakeholderswiththecontributiontheyarelookingfor.
Betterpackagingsolutionswillhelpourcustomersadvancetheirownbusiness,progressivedividendsandsharepricegrowthwillrewardinvestorsfortheirfinancialsupport,fairpay,otherbenefitsandpersonaldevelopmentwillcompensateouremployeesfortheircontributions,paymentsfordeliveredgoodsandserviceswillhelpsupplierstodeveloptheirproductsandtheirbusiness.
AsasignificantemployerinmanyofthecommunitiesandregionswhereSmurfitKappaoperateswestimulatetheeconomicdevelopmentofthesecommunities. Ourinvolvementinlocalcommunityprojectsthroughfinancialsupportorvolunteeringactivitiescontributestolocaleconomies.Ourtaxpaymentslocallyandtocountrygovernmentsfurthercontributetoeconomic,socialandenvironmentaldevelopmentinthecountriesinwhich weoperate.
Providingpaper-basedpackagingsolutionsisourcorebusiness.Packagingallowstheglobalpopulationtohaveaccesstoessentialproductssuchasfood,clothesormedicines.Wehelpmillionsofconsumerstominimisewastebysecuringthedurabilityofproductstheypurchase,whileprovidingthatsupportinamostsustainablewayasourpackagingsolutionsrelyonrenewablerawmaterialsandarefullyrecyclable.
1. OuR BuSiNESSSmurfitKappaisoneoftheworld’slargestintegratedmanufacturersofpaper-basedpackagingproducts,withoperationsprimarilyinEuropeandtheAmericas.Wemanufacture,distributeandsellcontainerboard,awidevarietyofcorrugatedpackagingandotherpaper-basedpackagingproductsandmaterialssuchassolidboard,bag-inbox,sackpaperandmachineglazedpaper.
In2012,theGroup’stotalrevenuewas€7,335million,generatinganoperatingprofitof€634millionandearningspershareof€1.08(pre-exceptional).Totalemployeewagesandotherbenefitsamountedto €1,818million.Approximately€4,000millionwaspaidtosuppliersforproductsandservicessuchasrawmaterials,energyandtransportationservices.fortheyear2012afinaldividendof20.5centspersharewasdeclaredandourcorporateincometaxamountedto€71million.
SmurfitKappa’sendcustomersprimarilyuseourpackagingproductstotransporttheirgoodsandasamarketing,displayandmerchandisingaid.Approximately60%ofourcorrugatedproductscustomersareinthefastmovingconsumergoodssectorcomprisingfood,beverageandhouseholdconsumables,theremainderbeingsplitacrossawiderangeofdifferentindustries.
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2012 financial Performance Overview
2012 €m
2011 €m
Revenue 7,335 7,357
EBITDAbeforeexceptionalitemsandshare-basedpaymentexpense(‘EBITDA’) 1,020 1,015
EBITDAmargin 13.9% 13.8%
Operatingprofit 634 590
Profitbeforeincometax 331 299
freecashflow 282 394
Netdebt 2,792 2,752
NetdebttoEBITDA 2.7x 2.7x
Basicearningspershare(cent) 111.2 93.0
Pre-exceptionalearningspershare(cent) 108.3 100.1
2. wORkiNG TOGETHER wiTH CuSTOMERSforSmurfitKappa,packagingisnotonlyaboutcollecting,storing,transporting,distributingpreservinggoodsandoptimisingsupplychains.Itisevenmoresoaboutenabling.Ourpackagingsolutionsenableourcustomerstomakethingshappen,toputtheirbusinessmodelstowork.Wearepartofthesupplychainofresponsibleandreputablecustomerswhoarecommittedtosustainability.Weareproudtobethepartnerofchoiceinourfieldofexpertiseformanyofthesecustomers.Ourcommitmenttosustainabilitywillstrengthenthepartnershipswehaveandhelptoformmore.Itwillputusinapositiontodevelopevenbetterandmoresustainablepackagingsolutionsforourcustomers,enablingthemtomeettheirowntargets andcommitments.
Increasingly,customersrequirepackagingtobesustainable,innovative,fitforpurpose,aswellascosteffective.SmurfitKappaworkscloselywithcustomerstomakesupplychainsmoresustainable.forexample,tocompletelyprotectthepackagedproductduringitstripthroughthesupplychain,wedeliver“right-weighted”packaging.Bytakingbothprimaryandsecondarypackagingrequirementsintoaccountourtransitpackagingoftenallowstheprimarypackagingtobeoptimisedleadingtoanoveralllowersustainabilityimpactofourcustomerssupplychain.Ourcreativedesignteamsexplorewhatispossibleinthemost openmindedway.
Workinginnovativelytogetherwithcustomersonpackagingdesignandsupplychainoptimisationhas twomainsustainabilityaspectstoit.
ENGAGEMENTWITHSTAKEHOLDERS
ireland: Sustainability and investors Barry Dixon,HeadofResearch,DavyResearch
Growth,returnsandvalueremainthekeycriteriafortheinvestmentcommunity.Atthispoint,CorporateSocialResponsibilityorsustainabilityisrelativelylowonthelist ofcriteriaemployedbymostinvestors.
Whatisemerginghoweverisanewsegmentontheinvestmentmarketwhosemainfocusistofindgrowth,returnsandvalueamongcompanieswhoaremoreenvironmentallyaware.Thuswehaveseentheemergenceofanumberofenvironmentalindices,suchasthefTSE4Goodseries,designedtomeasuretheperformanceofcompanies“thatmeetgloballyrecognisedcorporateresponsibilitystandards”.OrtheDowJonesseriesofSustainabilityindices.Equally,wehaveseentheemergenceofanumberofsustainability-focusedfundsandinvestmenthouses.Whilesmallcurrently,webelievethisisafastgrowingpartoftheinvestmentmarket.
Sowhatarepotentialenvironmentalinvestorslookingfor inadditiontothecorefinancialvaluationmetrics?Oftensustainabilityissuesfeedintofinancialmetrics,likethenumberofaccidentsatacompany.Thisreflectsthecorporationscaring(orotherwise)attitudetowardsitsworkforce,butaccident-relateddowntimealsoimpactsmarginsandreturns.Equally,energyefficiencyisacriticalfactorformanycompany’sprofitabilityinanenvironmentofsteadilyrisingfuelcosts andanimportantfactorforinvestors.
SmurfitKappaiswellpositionedtofurtherdevelopthistheme.Paper-basedpackagingisoneofthefewtrulyrenewablepackagingmedia.ThroughsignificantinvestmentsSmurfitKappaisactivelyimprovingtheproductionefficiencyofenergyandwaterintensivekraftliner.Thiswillhelpimprovemarginsandattractmanagersofsustainabilityfunds.
Thereisnodoubtinmymindthattheissueofsustainabilityandrespectfortheenvironmentwillcontinuetogrowinimportanceamongtheinvestmentcommunity.Partlydriven bygenuinealtruisticreasons,partlybecausesustainabilityaddstothebottomline.
Sustainability in our Business [continued]
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firstly,SmurfitKappacrediblyguaranteesitscustomersthatthepackagingitsuppliesisproducedsustainably,usingmaterialsfromsustainablesourcesandutilisingthecollectivedesignskillsofourglobalteamofdesigners.
Secondly,wealsofocusonhowourpackagingcanminimisethetotalsustainabilityimpactperunitofcustomerproductdeliveredtotheconsumer.AccordingtoastudydonebyINCPEN,theenergycomponentandhencetheCO2 impactofpackagingproductsislessthan5%inatypicalcustomer’ssupplychain.Thepackagingrelatedpositiveindirectimpact(lessdamage/destructionofthepackedproduct,optimisedlogistics,lesswaste,disposal,etc.)ismuchmoresignificantforthesustainabilityofacustomer’ssupplychain.
Itisinthesetwoaspects–packagingdesignandoptimisingourcustomerssupplychain–whereourpackagingcanmakethedeliveryofourcustomers’producttoconsumersmoresustainable.
InpracticethismeansthatformanycustomerswecarryoutevaluationswiththehelpoftheSmurfitKappaweb-basedsuiteofdesignsoftware,Innotools(PackExpert,Paper-to-Box,Innobook),seekingtooptimisethedirectandindirectimpactofourpackagingonsustainabilitythroughtheentiresupplychainofourcustomers.forexample,bychangingthepalletpatternorcasecount,itispossibletoincreasethequantityofproductsloadedonapallet,reducethenumberofroadtrips,andtherebyreducethe CO2 emissionsfromtransportation.
Customer satisfactionAsSmurfitKappastrivestobeacustomer-orientedandmarket-ledcompany,thesatisfactionofourcustomersisofutmostimportancetous.Besidesaimingtoprovideourcustomerswithoptimalpackagingsolutions,wealsowanttoensurethattheyaresatisfiedwithourproactiveapproachandservices.Inanumberofourmills,wehavea‘firsttimeright’monitoringsysteminplacemeasuringthepercentageofproductiondeliveredtothecustomer’ssatisfaction.
Inourconvertingoperations,majorcustomersperformroutinelyqualitychecksonourdeliveredproductsandalsoperformregularauditsonouroperationalprocessesandservices,andotherqualityrelatedperformanceindicators.Toensurecustomersatisfaction,eachcustomerisservedbydedicatedteamsofdesigners,salesandservicepeopleandthisimportantconsiderationisfrequentlydiscussedwitheverycustomer.
ENGAGEMENTWITHSTAKEHOLDERS
international: joint Responsible Sourcing Nestlé and Smurfit kappa
“Responsiblesourcingispartofthetop3prioritiesofNestléProcurement.SmurfitKappa,beingoneofNestlé’slonglastingandprominentcorrugatedboxsuppliers,hasbeenfullyengagedinresponsiblesourcingsince2010”,saysMrVincentQuilici,EuropeanLeadBuyerfromNestlé.
“TheaimoftheResponsibleSourcingAuditistodemonstratethatallofSmurfitKappa’sconversion plantscomplywithNestlé’sethicalandsustainabilityrequirements.ItalsoinvolvesassessmentwithregardtotheNestléResponsibleSourcingGuidelinesspecifyingrequirementsforpracticesthroughoutthesupplychain,suchasfibretraceabilityandmillmanagement.”
“Sincethebeginning,SmurfitKappahasbeenfullycommittedtosupportNestléinitsResponsibleSourcingapproach.Wehaveachievedgreatresultstogethersincetheinitiationoftheprogrammein2010uptothepresentin2012.Tocontinuethisjourneyandensurefurtherprogress,ajointthreeyearworkingplanhasbeenimplementedbyNestléandSmurfitKappa.Itismonitoredonamonthlybasis.”
“Lookingaheadofus,thefocusofourupcomingactivitieswillconcentrateontraceability,waterandenergyconsumption,ourcarbonfootprintandtheimpact onbiodiversity”,concludesMrQuilici.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT201270
Germany: flat pallets, high rewards
SixyearsagoinnovationprocessesatSmurfitKappaWellitWellpappenwerkinDelbrückinGermanyresultedinaspecialgluenamedadconnect.DuringthelastsixyearsthisproducthasenabledourGermanoperation torealisevarioussustainablepackagingsolutions,themostrecentonebeingtheadconnectpallet.
Adconnectpalletsaredeliveredtocustomersasflatsheetsofcorrugatedboard.Asaresultjustonetruckcantransportthesamenumberofpalletsthatusedtotakeeighttrucks.Customersneedfarlessstoragespaceandthepalletsareidealforrecycling,becausetheyonlyconsistofonematerial:recyclableboard.Assemblyiseasy,quickanddoesnotrequireanytools.Theareaswhichneedtobeinterconnectedarecoatedwiththeself-adhesiveglue,whichisactivatedbybeingpressedagainstanotherpartwithadconnect.Onceconnectedtheareasbecomeinseparable.Adconnectpalletsareuniqueandreducethecarbonfootprintofourcustomers.
UK: The ‘Aquashield’ Case saves catalogues from spoilage
HomeRetailGroupistheUK’sleadinghomeandgeneralmerchandiseretailer.HomeRetailGroupproducemillionsofArgoscatalogueseachyearfordistributionthroughouttheircustomerbase.Thecataloguesaregenerallystoredoutside inoftendampconditionsatthedistributionwarehousesandatstoreswhichresultinlargenumbersofcataloguesbeingwrittenoffeachyearduetowaterdamage.
TosolvethisproblemSmurfitKappaUKAbercarnworkedcloselywiththePackagingManagersatHomeRetailGroup todevelopacorrugatedsolutionwhichincorporatedan‘Aquashield’linerwhichiswaterproof,secure,durableand100%recyclable.Thenewwaterresistantliner,whichincludesa100%biodegradablePElayer,hashelpedto saveasignificantnumberofcataloguesfromthewastebineveryyearforHomeRetailGroup,therebyreducingcarbonemissionsinbothtransportandprintingprocesses.Aquashieldnotonlyprotectspaperproductsthroughout thesupplychain,italsoreducestheassemblytimeofthecataloguepallets,generatingsignificantcost-savings.
Belgium: The smart dashboard box
SmurfitKappaOlen,inBelgium,designedanewsustainablepackagingsolutionwithfarlessCO2emissionfortheircustomer4flow,byoptimisingthepackagingforMercedesBenzdashboardframes.
Thedashboardframeswereoriginallypackedinf0201packagingwithPE-foamandplastics.ThePE-foamisnotonlyexpensiveandnon-sustainable,italsomakesthepackagingratherbulkytherebylimitingthenumberofproductsthat canbeshippedinacontainer.SmurfitKappaOlenwasable toreplacethePE-foamandplasticcomponentswithfullyrecyclablematerial.Thisprovided4flowwithsustainablepackagingwithfarlessCO2emissionandasignificantcut inthecostsoflogistics.Topackagethesamequantityofdashboards4flownowachievesareductionofalmost 6,000boxesandsome180lesscontainershipments, savingMercedesBenzconsiderablecostsintransportation.
Adconnect pallets are delivered to clients as flat sheets of corrugated board. As a result, only one truck is needed to transport the same number of pallets that used to take eight trucks.
The new water resistant liner, which includes a 100% biodegradable PE layer, has helped to save a significant number of catalogues from the waste bin every year for Home Retail Group.
Smurfit Kappa in Olen, Belgium was able to replace the PE-foam and plastic components with fully recyclable material. This provided 4Flow with sustainable packaging resulting in far lower CO2 emissions and a significant cut in the costs of logistics.
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Ourmarketingcommunicationsareessentiallybusiness-to-businessbynature.Inthisregardweensureonacontinuousbasisthattheseareinlinewithallgenerallyacceptedethicalandculturalstandardssuchasavoidingprivacyintrusionordualstandards,notinfluencingvulnerableaudiencessuchaschildrenorportrayinggenderrolesinadisrespectfulway.AspartofourCodeofBusinessConduct,wevoluntarilyadheretotheOECDGuidelinesforMultinationalEnterpriseswhichexplicitlymentionsconsumerinterests.SmurfitKappahasnorecordedincidentsofnon-compliancewithregulationsorvoluntarycodesconcerningmarketingcommunications.
innovation in sustainable packaging solutionsAsamarket-focusedcompany,SmurfitKappaknowsinnovationisofstrategicimportanceinsecuringandretainingourcustomers’business.Innovativedesign isauniquesellingpointforSmurfitKappaandservestodifferentiateusinthemarketplace.Tofosterinnovation,wesharebestpracticeamongtheplantsanddivisionsinSmurfitKappausingourweb-basedtoolssuchasInnobook.WeholdInnovationAwardcompetitionstoassesstheeffectivenessandoriginalityofourjointdevelopmentswithcustomers.ThecompetitionsareheldinbothEuropeandLatinAmerica,withjudgingpanelsdrawnfromourkeycustomerbase.Thesemeasurespromotethepursuitofexcellenceindesignand,mostcrucially,aclosealignmentwiththeneedsofourcustomers.WeintroducedaSustainabilityAwardcompetitionin2012toshowourabilitytocombineinnovationandsustainabilityinthedesignanddevelopmentofhighqualitycustomerproducts. The2013InnovationandSustainabilityAwardswillbeannouncedinSeptemberofthisyearandwillbefeaturedinourSustainableDevelopmentReport2013.
Whenusingdesigninnovationasameansofdevelopingsustainablepackaging,wefocuswithourcustomersonthefollowingaspects:
nDesignpackagingsolutionsthatarebothefficientanduserfriendly.
nOptimisethesupplychain,includingpalletisation,transportation,warehousinganddistribution.
nDevelopfitforpurpose“right-weighted”packagingbasedonexperienceandempiricalmodellinginsteadofhistoricaldata.
nReducecomplexityinthepackagingportfoliotherebyachievinghigherproductivity,lessmaterialusageandlesswaste.
3. CONTRiBuTiON TO lOCAl ECONOMiESWefavourprocuringourproductsandservicesfromlocalsupplierswherepossible.Procurementofgoodsandservicesrepresentsthelargestsinglecategoryofexpenditure.In2012,theGrouppurchasedalmost €4billionofproductsandservicessuchasrawmaterials,energyandtransportation.Theprocurementofanumberofmajoritemsofexpenditurelikerecoveredpaper,paper,energy,chemicals,starchandinksiscoordinatedcentrallytoachieveeconomiesofscale.Still,asignificantpartoftheactualsupplierdeliveriesforthesecategoriescouldbeconsideredaslocaldeliveriesasmanyofthegoodsandservicesareprovidedtousfromsuppliers’productionlocationsinthesamegeographicalareaasouroperations.Duetotheirnature,theremaininggoodsandservicesaresourcedlocallybyouroperations.Intotalapproximately70%ofoursuppliers’deliveriescanbeclassifiedaslocal.Theseinteractionsbetweenouroperationsandlocaloperationsofsuppliersprovidesupportforlocaleconomies.
4. PROduCT RESPONSiBiliTy ANd PROduCT SAfETyAsabusiness-to-businesscompany,weproduceboththerawmaterialforpackagingandthepackagingitself.Mostpackagingproducedbyusisusedfordistribution,transportationandretaildisplaypurposes.
Wehavealwaysdemonstratedastrongcommitmenttoproductsafety.Notonlywillwecomplywithanylegislationonhealthandsafetyaspectsofourproducts,wealsohaveagreedtovoluntarycodesofconductwhich,amongothers,arebasedontheOECDGuidelinesforMultinationalEnterprises.
In2012,therewerenorecordedincidentsofnon-compliancewithregulationsorvoluntarycodesintheareaofproductsafetyandproductresponsibility.
Atallstagesinourproductionprocess,fromthedesignofourproducttoitsdeliverytothecustomer,weassessproductsafety.Asmanyofourproductsareusedastransportpackaging,productsafetymainlyensuresthatourproductsaresafeandeasytouseforthosehandlingandusingthem.Asignificantpartofourpackagingisintendedfortheagri-foodindustry.forthissector,theproductsafetyaspectsmainlyinvolveensuringthatfoodcanbesafelypackedinourproductswhetherthereisdirectorindirectcontactbetweenthepackagingandthefood.Allourproductsarethereforeassessedforhealthandsafetyconsiderations.
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Sustainability in our Business [continued]
OurProductSafetyDepartmentwassetuptomanagesuchissues,inparticularwithregardtopackagingindirectcontactwithfood.Thedepartmentisequippedwithalaboratorythatteststhepurityofourproducts(papers,boards,corrugatedandsolidboardpackaging). Itconductsresearchandimplementsdevelopmentprojectsintheareaoffoodcontact.WeregularlysubmitourproductstothesetofanalysesrecommendedbyvariousEuropeanandnationallegislationapplyingto ourproducts.ThisdepartmentisthirdpartyaccreditedaccordingtotheISO17025standard.
TheknowledgedevelopedherehasbeentransferredthroughoutallourproductionoperationsinbothEuropeandLatinAmerica.WefollowtheevolutionofregulationsinallcountriesandareactiveatEuropeanandnationalindustryassociationlevelwithregardtoproductsafetyissues.
Europeanregulationsthatapplytopackagingintendedforfoodcontacthavebeenrevisedandreinforcedoverrecentyears.AsrequiredbytheEuropeanregulationthatappliestopackagingintendedforfoodcontact,theimplementationofGoodManufacturingPractises(GMP)inpapermillsandconvertingoperationsproducingpackagingforfoodapplicationsismandatory.GMPthatfulfilstherequirementsofEUregulationhasbeenimplementedsince2007atallourEuropeanpaperandboardmills.SinceSeptember2012,allourEuropeanpaperandboardmillsarethirdpartycertified.79%arecertifiedaccordingtotheEuropeanstandardonthemanagementofhygieneintheproductionofpackagingforfoodstuffs(CEN-EN15593)andtheremaining21%arecertifiedaccordingtotheInternationalGoodManufacturingPracticeforCorrugatedandSolidBoardPackagingstandard(fEfCO/ESBOGMPStandard).
Inresponsetocustomerneeds,some54%ofourconvertingplantsnowhaveprocessesinplaceandarecertifiedbyoneofthefollowingrecognisedhygienecodesorstandards:ISO22000,CEN15593,BritishRetailConsortium(BRC),AmericanInstituteofBaking(AIB)orInternationalGoodManufacturingPracticeforCorrugatedandSolidBoardPackaging(fEfCO/ESBOGMPStandard).
Itisouraimtocertifyallourconvertingplantsforwhichthisisrelevant.
Asaresultofourcentralset-up,weareabletomonitorourprogressinperformancewithregardtobothsafetyandhygieneforfoodandthisinturnallowsustorespondtoanymarketconcerns.OurProductSafetydepartmentiskeepingaclosewatchforanyfoodsafetyalertissuedbytheEuropeanCommissionornationalauthorities.Ouranalysesandknowledgepermitustomodifyourpapersinresponsetothesealertsintheshortestpossibletime.
Inthecourseof2010someresearchindicatedthattracesofundesirablemineraloilcouldenterpackagedfoodpossiblyresultingfrommineraloilpresentintherecycledrawmaterialforpapermakingand/ortheinksusedforprintingthepackaging.Attheendof2011CEPI,togetherwithsomeothertradeassociations,publishedavoluntarycommitmentcallingonpaperandboardproducersandconverterstophaseouttheuseofmineraloilsinpaperadditivesandprintedinks.Severalpublicauthoritieshavereviewedthepublishedresearch.InMay2012, theBundesinstitutfürRisikobewertung(BfR,orGermanfederalInstituteforRiskAssessment)publishedananalyticalmethodformineraloilsanalysesfortesting bythevariousEuropeanlaboratories.
AccordingtotheBfR,theresearchisstillincomplete.Also,theUKfoodStandardsAgency’spositionisthatthereisnoconcernforconsumers’health.InJune2012,TheEuropeanfoodSafetyAuthority(EfSA)identifiedfoodpackagingasoneofthemanysourcesofmineral oilinfoodandsuggestedsettingupamonitoringprogrammetoidentifysourcesofmineraloilatvariousstagesoffoodproduction.EfSAalsosuggestedthatincaseswhereexposuretothesemineraloilscanbeattributedtopackaging,methodsshouldbedevelopedthatwouldeffectivelypreventmineraloilsfrommigratingfromthepackagingintothepackagedfood.
Althoughnoneoftheresearchandopinionssofarpublishedindicatesthatthereshouldbeanyconcernforconsumers’health,wearetogetherwiththeEuropeanindustryassociationCEPI,cooperatingwiththevariouspartiesinvolvedtodevelopadequatesolutionsfor thisissue.
Registration, Evaluation, Authorisation and Restriction of Chemicals: (REACH)WearemainlyaffectedbyREACHasdownstreamusers ofchemicalsandwethereforeliaisecloselywiththesuppliersofchemicalstoensurethattheyfulfiltheirobligationswithregardtoassurancesthatthechemicalsweintroduceinourproductsdonotcontainanySubstancesofVeryHighConcern(SVHC)inconcentrationsabovethelevelof0.1%.Ourcentralisedprocurementorganisationprovidesuswithanefficientwaytoaccomplishthistask.
TheoverarchingobjectiveofREACHistominimiseorbantheuseofSVHC,mostofwhicharealreadyidentifiedforthetonnagebandof1000.
Thesesubstanceswillbethoroughlyre-examinedandwillthenbeaddedtotheSVHCcandidatelistforfurthermeasures.TheSVHCcandidatelistisupdatedonceortwiceayear.
WhentheupdatedSVHC-listispublishedonECHA’swebsite,ourcustomersroutinelyrequestinformationwhetherourproductscontainSVHCsornot.Wehaveproceduresinplacethatenableustoissuesuchstatementscontinuously.
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5. RECOGNiTiONS
Spain - Global PPi Award for innovative Eco TrayThePPI(Pulp&PaperInternational)awardsaretheonlyglobalawardsdedicatedtorecognisingachievementsinthepulpandpapersector.SmurfitKappawonanawardinthe‘AdvancesandInnovationinSustainablePackaging’categoryfortheEcoTray,aspecialcorrugatedtraythatoffersa‘green’alternativetotraditionalpolystyreneandplastictrays.
TheexpertsatSmurfitKappadevelopedathermo-formedcorrugatedboardsolutionforthefruitandvegetablemarket,whichcanalsobeappliedinothersectors.TheEcoTrayis100%recyclable,optimisesstoragespaceandleadstosavingsonCO2 emissions.Moreover,asitissuitableforflexographicprint,highqualityprintandpre-print,itcanbecustomisedtofitthecustomer’swishesthusenablinganimprovedpoint-of-saleprofilefortheconsumer.
united kingdom - Recognition for raising awareness of responsible forestrySmurfitKappaUKhasbeenrecognisedforitsoutstandingcontributiontoraisingawarenessofresponsibleforestryfollowingitsnationwidesupportfortheforestStewardshipCouncil’sinternationalawarenessday.
fSCfriday,theinternationalawarenessday,isacelebrationoftheworld’sforestsandhelpstoraiseawarenessoftheimportanceofmanagingtheseforestsresponsibly,andtherolethatfSCplaysinthis.SmurfitKappawaschosentoreceivethefSCUKawardinrecognitionoftheeducationalandawarenessraisingactivitiesitundertookonfSCfriday2012andhasbeencommendedforitssuccessinreachingouttolocalcommunities.AnumberofSmurfitKappasitestookpartincelebratingfSCfriday,manyworkingwithlocalschoolsandcommunitiestoeducatethechildren ontheimportanceofresponsibleforestry.Internalcommunicationsandactivitieswerealsoorganisedtofurtherraiseawarenessamongourownemployees.
Ross Howat, Global Marketing Director from PPI Award sponsor Elektrokemiska AB assisted by PPI Award host Laura Esposto presented the Global PPI Award in the category ‘Advances and Innovation in Sustainable Packaging’ to Miguel Angel Franco, Smurfit Kappa Spain.
Charles Thwaites, Executive Director, Forest Stewardship Council UK (left), presents the FSC 2012 Outstanding Contribution Award to Mike Fadden, Smurfit Kappa Regional Director East.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT201274
Colombia – Smurfit kappa Colombia approved supplier for unileverInSeptember2012,representativesofUnilevervisitedtheSmurfitKappaColombiamanufacturingplantsinCali,MedellínandBogotáwiththeobjectiveofidentifyingsynergiesandtodiscusshowbothcompaniescouldmutuallybenefitfromthoseimprovementopportunities.
SmurfitKappaisaleaderintheproductionofcorrugatedpackaging,pulpandpaperinColombiaandwasverypleasedtohostthevisit.AsaresultofthevisitandbecauseofitssolidperformanceinColombia,UnileverhasacknowledgedSmurfitKappaasanapprovedsupplier.TheSmurfitKappacompanieswereabletomeettherequirementsregardingperformanceandcontinuousimprovementsdemandedbyUnileverduringtwelveconsecutivemonths.SmurfitKappainColombiahasaclearfocusoninnovationandquality,andalongtermstrategyonsustainability.Thecompanyisproudtobe anofficialpartnerofUnilever.
Colombia - Actively involved in good forest managementAccordingtotheforestryCertificationGuidelinesofWorldWildlifefund(WWf)inColombia,SmurfitKappainColombiawasactivelyinvolvedintheformulationoftheGenericIndicatorsforvoluntarycertificationofforestryplantationsandhasbeenworkingcloselywiththeforestStewardshipCouncil(fSC)nationalofficeinColombiaforovertenyears.WWfColombiamentionedSmurfitKappainColombiaasasuccessfulstoryonforestrycertificationinSouthAmerica.
Since1997SmurfitKappaCartóndeColombiahasbeenanactivememberofthefSCandin2003thefSClabelwasgrantedtoourforestplantationsinColombia.Wehaveoneofthefirstcompaniestoreceivesuchaccreditationforitsforestholdings.WehavebeeninstrumentalinhelpingthefSCnationalofficeoverthatperiod,throughregionalworkshopsintheharmonisationofindicatorsforvoluntarycertificationofforestryplantations,aswellasparticipatingduringtherevision ofStandardsandPrinciplesasamemberoffSC.OurplantationsinColombiameasureapproximately69,000hectares,withanannualnetgrowthofapproximately100,000cubicmetresin2012.
From left to right: Orlando Cañaveral – Unilever, José Joaquin González – Smurfit Kappa, Luis Fernando Gomez – Unilever, Laura Realpe – Unilever, Jorge Parra – Smurfit Kappa, Angela Aguilar – Smurfit Kappa, William Muñoz – Smurfit Kappa, Andres Arango – Smurfit Kappa.
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Colombia - Public recognition for environmental excellenceforthesecondyearinarowSmurfitKappaemployeesinBogotáreceivedpublicrecognitionfortheirsustainabilityeffortsandresultsincentralColombiafromtheenvironmentalauthoritieswhohandedthecompany aprestigiousaward.
SmurfitKappawasawardedthetrophyforitscontinuousimprovementsduringtheyear2012withregardtosustainabilityandforitsenvironmentalmanagementsystem.TostimulatesustainableeffortsthedistricthassetupanEnvironmentalExcellenceProgramme.TheMayorofBogotá,onbehalfoftheDistrictEnvironmentalDepartment,publiclyrecognisedSmurfitKappa’swinintheEnvironmentalExcellencecategoryandstatedthatthecompanyisaleaderinenvironmentalmanagementandenvironmentalperformanceinthedistrict.Thejuryevaluatedvariousaspectssuchas:environmentalmanagement,cleanerproductionandcorporatesocialresponsibility.
6. SuPPliER iNiTiATiVES
international - ink supplier Siegwerk colours the planet greenSiegwerkisaworld-leadingsupplierofprintingink forpackagingandpublicationpurposeswithitsheadquarterslocatedinSiegburg,Germany.Thecompanyrecentlyintroducedanewgenerationofsustainableinkproductsbasedoninnovativehybridtechnology.
Thebreakthroughwasrealisedafterextensiveresearchinapartnershipwithmajorchemicalcompanies.Siegwerkconcludedthatenvironmentalandeconomicadvantagescanverywellbeachievedthroughacombinationofrenewablematerialswithclassicalchemicalproductionand/orfossilproducts.Atotallynewpolymer,a‘hybrid’ ofbio-monomers,isutilisedasabinderwith‘standardoilderivate’acrylicmonomers.Thisallowstheformulationofpremiumqualityink.Toincreasetherenewable
contentofitsinkevenmore,withoutlosingperformanceorincreasingcosts,Siegwerkwillfurtherresearchitshybridtechnology.Itstrivestodemonstratethatwaterborneinkscanmaketheworldgreenerandstillperformsatisfactorilyforcommercialusage.
Wewelcomesuppliersthatcontinuouslysearchforanddevelopproductsthathelptomakeourpackagingsolutionsmoresustainable.
international - Sustainability key element in relationship with flint Group flintGroupisoneofourlargestinksuppliersinEuropeandhasbeenasupplierformanyyears.Thetwocompanieshavedevelopedalongtermconstructiverelationshipwithafocusonanumberofkeyaspectsofthesustainabilityagendalikeanti-corruption,labour,humanrightsandtheenvironment.
JanPaulVanderVelde,SeniorVicePresidentProcurement,Sustainability,RegulatoryandIT,flintGroup,elaborates:“fundamentally,webelievethatourpartnershiprevolvesaroundsharingbestpracticesandfindinga’betterway’together.WiththehelpofSmurfitKappawehavealreadyinitiatedaprogrammetodevelopanevengreaterrangeof“environmentallyfriendlier”inksandwhileIbelievethatthetwocompaniescanbothbeproudofwhatwehavealreadyachieved-Ialsobelievethatwehavegreaterachievementsaheadofusaswelooktoshareasustainablefutureforourindustry.”
“flintGrouphasadoptedtheUNGlobalCompactframeworkandaverymodernCodeofConduct.furthermore,itutilisestheDowJonesSustainabilityIndextoreportonitsprogressinanannualSustainabilityReport.ThiscombinationofflintGroup’sownmissionandguidingprinciples,adoptedbyallemployeesandalignedtotheworld’sleadingsustainabilitymodels,ensuresthatwe‘notonlydowhatwesay,butsaywhatwedo’.”
Smurfit Kappa employees (left to right): Hugo Romero, Luis Fernando González, Juan Pablo Perez, Maritza Ochoa, Sergio Segura, Alvaro Zambrano were presented with the prestigious award for recognition for Smurfit Kappa’s sustainability efforts and results in central Colombia.
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iNPuT/OuTPuT fOR 2012All EuROPEAN OPERATiONS
input outputWood and fibre Production
Wood(1) 4,690 kTonnesar Papers(Allgrades) 4,671 kTonnes
Marketvirginpulp 104 kTonnesar CorrugatedPackaging* 4,490 kTonnes
Otherpulp 21 kTonnesar BoardandlaminatedBoards* 869 kTonnes
RecoveredPaper 4,300 kTonnesar ConvertedBoard* 312 kTonnes
PaperorBoardpurchased 1,602 kTonnesar Sacks - kTonnes
Plasticfilms,otherplasticitem(BIB) 18 kTonnes Otherpackaging 17 kTonnes
Starch(alltypes) 255 kTonnesar
Inorganicrawmaterials 232 kTonnesar Direct emissions to air
Otherorganicrawmaterials 186 kTonnesar CO2fossil 1,827 kTonnes
CO2biogenic 3,169 kTonnes
Dustfromfuels 0.4 kTonnes
soxfromprocesses 0.6 kTonnes
noxfromprocesses 3.8 kTonnes
Energy Energy output
Energyfromfossilfuels 30,605 TJ Electricitytothirdparty 305 GWh
Energyfrombiofuels 5,229 TJ Thermalenergytothirdparty 226 TJ
Electricityfromgrid 1,707 GWh Biomasssold 2,040 TJ
Wastes
Hazardouswastes 10 kTonnes
Non-hazardouswastessenttolandfill 248 kTonnes
Non-hazardouswastesrecovered 292 kTonnes
Othernon-hazardouswastes 29 kTonnes
Water Discharges to water
Waterintake(2) 90 mm3 Waterreleased 82 mm3
COD 21 kTonnes
bod 7.6 kTonnes
TotalSuspendedSolids 3.7 kTonnes
n 0.5 kTonnes
p 0.07 kTonnes
kTonnesar:kiloTonnesasreceived(1)wood&sawmillchipsasdeliveredtothemill(2)waterintakeincludesrainwaterandwastewaterfromanotherorganisation
*partlyproducedwithSmurfitKappapaperorboard
Thetablereportstotalenergyconsumptionofthesite,takingintoaccountthefuelsusedtoproduceelectricityand/orthermalenergysoldexternally.Thisresultsindifferentfiguresfortheseparameterscomparedtothose onpages78to83.Thelatterpagesshowtheenergyconsumptionfortheproductionofthepaperorboardmanufactured.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012 77SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012
iNPuT/OuTPuT fOR 2012All lATiN AMERiCAN OPERATiONS
input outputWood and fibre Production
Wood(1) 1,000 kTonnesar Papers(Allgrades) 896 kTonnes
Marketvirginpulp 4.9 kTonnesar CorrugatedPackaging* 743 kTonnes
Otherpulp - kTonnesar BoardandlaminatedBoards* 168 kTonnes
RecoveredPaper 856 kTonnesar ConvertedBoard* 61 kTonnes
PaperorBoardpurchased 231 kTonnesar Sacks* 51 kTonnes
Plasticfilms,otherplasticitem(BIB) 1.9 kTonnes Otherpackaging 1.9 kTonnes
Starch(alltypes) 27 kTonnesar
Inorganicrawmaterials 94 kTonnesar Direct emissions to air
Otherorganicrawmaterials 39 kTonnesar CO2fossil 988 kTonnes
CO2biogenic 483 kTonnes
Dustfromfuels 0.2 kTonnes
soxfromprocesses 2.7 kTonnes
noxfromprocesses 0.9 kTonnes
Energy
Energyfromfossilfuels 14,832 TJ Energy output
Energyfrombiofuels - TJ Electricitytothirdparty - GWh
Electricityfromgrid 554 GWh Thermalenergytothirdparty - TJ
Biomasssold - TJ
Wastes
Hazardouswastes 2.5 kTonnes
Non-hazardouswastessenttolandfill 317 kTonnes
Non-hazardouswastesrecovered 31 kTonnes
Othernon-hazardouswastes 2.4 kTonnes
Water Discharges to water
Waterintake(2) 36 mm3 Waterreleased 32 mm3
COD 15 kTonnes
bod 3.9 kTonnes
TotalSuspendedSolids 4.0 kTonnes
n 0.2 kTonnes
p 0.02 kTonnes
kTonnesar:kiloTonnesasreceived(1)woodasdeliveredtothemill(2)waterintakeincludesrainwaterandwastewaterfromanotherorganisation
*partlyproducedwithSmurfitKappapaperorboard
Thetablereportstotalenergyconsumptionofthesite,takingintoaccountthefuelsusedtoproduceelectricityand/orthermalenergysoldexternally.Thisresultsindifferentfiguresfortheseparameterscomparedtothose onpages78to83.Thelatterpagesshowtheenergyconsumptionfortheproductionofthepaperorboardmanufactured.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT201278
EuROPEAN MillS 2012 ENViRONMENTAl dATA
Nettingsdorfer,
Austria
Navarra,Spain
CelluloseduPin,
france
Piteå,Sweden
Morava,Czech
Republic
CDHaupt,DE
Hoya,DE
Viersen,DE
Zülpich,DE
Mengibar,ES
AlfaD'Avignon,
FR Rethel,fR
Saillat,fR
Ania,IT
Roermond,NL
SSK,UK
TownsendHook,
UK
BadenKarton,
de
Herzberger,DE
OudePekela,NL
Hoogkerk,NL
Coevorden,NL
Nieuw
eschans,
nl
Nervión,ES
Tota
l Mil
ls
bkl,tl tl,mgpaper
bkl,wtkl,wttl
wtkl,bkl tl,fl fl,tl,sb,wttl
fl,tl,cart
fl,tl fl,tl fl,tl,wttl
tl tl fl,tl fl,tl tl,fl tl,fl fl,tl cart sb sb sb sb sb sackpaper
PRODUCTIOnPRODUCTIOn kTonnes 434 105 394 658 60 316 395 75 470 202 70 60 248 207 568 203 218 138 245 57 73 92 106 147 5,541
EnERGy Electricity Co&SelfGeneration GWh 155 58 322(1) 339 - 67 91 - 172 108 - - 59(1) 34 117 65 82(1) 61 76 16 - 12 29 110 1,974
Hydropower GWh 0.1 - - - 2.0 0.2 - - - - - - 1.5 - - - - 1.7 - - - - - - 5.5
NetGridsupply GWh 141 80 - 249 22 31 72 23 20 -(2) 30 21 60 41 35 0.3 8.8 -(2) 10 -(2) 14 13 -(2) 81 954
Totalelectricity GWh 296 139 322 588 24 98 163 23 192 108 30 21 120 75 152 66 91 63 87 16 14 24 29 192 2,933
Fuel usage
Biofuels TJ 3,687 1,989 7,819 9,987 17 40 67 - 256 - - 15 124 12 140 50 - - - - - - - 2,733 26,935
fossilfuels TJ 1,106 441 449 303 319 1,567 2,218 344 3,243 1,488 368 286 1,475 1,149 2,849 1,376 2,081 1,055 1,571 359 310 344 605 121 25,430
Totalfuels TJ 4,793(3) 2,429 8,269 10,290(3) 336 1,607 2,285 344 3,499 1,488 368 301 1,599 1,161 2,990 1,426 2,081 1,055(3) 1,571(3) 359 310 344 605 2,854 52,364
WATER WITHDRAWAl
Surface mm3 13 5.2 8.4 34 0.4 0.4 - - 2.0 1.6 0.7 - 1.9 1.5 2.2 - 1.2 1.5 3.4 0.0 0.3 0.3 0.4 2.6 80
Ground mm3 - - 0.9 - - 0.8 2.1 0.3 0.4 - - 0.5 - - - 0.9 0.3 - 0.0 0.2 - 0.2 - - 6.6
Grid mm3 0.05 0.01 0.02 0.10 - - 0.2 - 0.01 0.1 - 0.01 0.01 - 0.1 0.1 0.02 0.03 0.01 0.01 0.01 0.1 0.1 0.02 1.0
Totalwater(4) mm3 13 5.2 9.3 34 0.4 1.2 2.3 0.3 2.4 1.7 0.7 0.5 1.9 1.5 2.3 1.0 1.5 1.5 3.5 0.2 0.3 0.6 0.4 2.6 88
DISCHARGES
To air
CO2fossildirect kTonnes 63 28 27 26 18 88 124 19 261 84 21 16 84 64 161 78 117 59 88 20 18 20 34 7.8 1,528
CO2fossilindirect kTonnes 23 24 - 11 11 13 31 10 8.8 - 2.7 1.9 5.4 16 13 0.6 4.0 - 4.5 - 5.2 4.7 - 24 215
CO2biogenic kTonnes 396 221 900 1,191 1.3 3.5 5.6 - 22 4.7 1.0 1.2 18 0.9 11 4.6 4.6 - - - - - 0.6 338 3,124
Dust Tonnes 54 20 49 277 0.15 - 0.4 - 0.4 0.2 0.3 0.8 - - - - - - 0.45 - - - - 41 443
noxasNO2 Tonnes 234 109 603 785 10 50 95 6.4 262 381 17 28 86 77 130 128 374 32 72 21 6.0 16 40 174 3,735
soxasNO2 Tonnes 25 28 132 91 5.3 0.2 1.4 0.3 73 12 11 5.3 1.5 0.5 27 1.7 70 0.5 11 0.05 0.03 0.1 2.3 91 590
To water
Processwater mm3 5.3 2.8 8.8 13 0.3 0.4 1.7 0.3 - 1.4 0.6 0.4 1.6 1.2 1.7 0.6 1.2 1.3 1.3 0.2 0.2 0.1 0.3 1.9 47
Coolingwater mm3 7.1 2.2 - 21 - 0.4 0.02 - 1.3 - - - - - - - - 0.1 1.9 - - 0.3 - - 34
COD Tonnes 7,076 321 4,293 2,151 39 97 334 N/A - 229 74 48 954 125 316 1,026 161 161 175 25 35 868 51 795 19,355bod Tonnes 4,273 60 1,182 294 2.4 4.5 17 N/A - 18 10 5.1 252 9.1 10 460 7.3 10 13 0.7 1.6 379 2.2 189 7,200TotalSuspendedSolids Tonnes 457 75 593 572 4.1 2.6 - N/A - 90 17 6.4 398 22 24 916 40 12 22 4.1 4.7 22 4.9 71 3,358TotalN Tonnes 41 10 88 66 6.3 0.3 19 N/A - 43 2.7 2.6 87 23 31 23 4.4 0.8 1.8 1.1 2.0 3.8 1.7 9.5 468TotalP Tonnes 3.4 0.6 11 16 0.3 0.2 1.2 N/A - 2.7 3.3 0.5 15 1.8 3.0 11 0.3 0.1 0.3 0.1 0.3 0.2 0.2 0.8 72Solid wastes
Totalnon-hazardouswastes Tonnes 23,618 18,837 33,012 40,002 7,523 18,167 30,114 7,694 24,144 31,994 4,083 5,215 23,312 22,225 37,761 23,400 35,297 12,258 19,091 5,470 2,095 4,950 7,535 82,501 520,297
Landfill Tonnes 3,288 1,123 11,611 5,863 3,743 89 - - 11,821 31,857 4,079 1,532 20,279 12,274 602 21,909 26,686 - 79 - - - - 78,291 235,125
Recovery Tonnes 20,097 17,714 21,384 34,139 3,780 18,078 30,114 7,693 1,416 137 4.2 3,683 3,033 9,952 37,071 1,491 8,611 311 19,012 5,470 2,095 4,950 7,407 4,169 261,809
Other Tonnes 233 - 18 - - - - 0.2 10,907 - - - - - 89 - - 11,947 - - - - 128 41 23,363
Hazardouswastes Tonnes 136 31 5,294 235 1.5 80 90 2.4 42 15 4.7 7.2 6.8 9.0 21 37 64 231 14 8.3 3.3 20 10 65 6,429
bkl :brownkraftliner mg:machineglazed wtkl:whitetopkraftliner (1)CHPisoutsourced N/A:notavailable cart:cartonboard sb :solidboard wttl:whitetoptestliner (2)netelectricityexportedbyCHP fl :recycledflute tl :testliner water emissions in grey italics: external waste water treatment (3)partofheatexported (4)Totalwaterincludesrainwaterandwastewaterfromanotherorganisation Individual cell entries have been rounded. The figures in the total column may not tally due to rounding differences.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012 79SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012
Nettingsdorfer,
Austria
Navarra,Spain
CelluloseduPin,
france
Piteå,Sweden
Morava,Czech
Republic
CDHaupt,DE
Hoya,DE
Viersen,DE
Zülpich,DE
Mengibar,ES
AlfaD'Avignon,
FR Rethel,fR
Saillat,fR
Ania,IT
Roermond,NL
SSK,UK
TownsendHook,
UK
BadenKarton,
de
Herzberger,DE
OudePekela,NL
Hoogkerk,NL
Coevorden,NL
Nieuw
eschans,
nl
Nervión,ES
Tota
l Mil
ls
bkl,tl tl,mgpaper
bkl,wtkl,wttl
wtkl,bkl tl,fl fl,tl,sb,wttl
fl,tl,cart
fl,tl fl,tl fl,tl,wttl
tl tl fl,tl fl,tl tl,fl tl,fl fl,tl cart sb sb sb sb sb sackpaper
PRODUCTIOnPRODUCTIOn kTonnes 434 105 394 658 60 316 395 75 470 202 70 60 248 207 568 203 218 138 245 57 73 92 106 147 5,541
EnERGy Electricity Co&SelfGeneration GWh 155 58 322(1) 339 - 67 91 - 172 108 - - 59(1) 34 117 65 82(1) 61 76 16 - 12 29 110 1,974
Hydropower GWh 0.1 - - - 2.0 0.2 - - - - - - 1.5 - - - - 1.7 - - - - - - 5.5
NetGridsupply GWh 141 80 - 249 22 31 72 23 20 -(2) 30 21 60 41 35 0.3 8.8 -(2) 10 -(2) 14 13 -(2) 81 954
Totalelectricity GWh 296 139 322 588 24 98 163 23 192 108 30 21 120 75 152 66 91 63 87 16 14 24 29 192 2,933
Fuel usage
Biofuels TJ 3,687 1,989 7,819 9,987 17 40 67 - 256 - - 15 124 12 140 50 - - - - - - - 2,733 26,935
fossilfuels TJ 1,106 441 449 303 319 1,567 2,218 344 3,243 1,488 368 286 1,475 1,149 2,849 1,376 2,081 1,055 1,571 359 310 344 605 121 25,430
Totalfuels TJ 4,793(3) 2,429 8,269 10,290(3) 336 1,607 2,285 344 3,499 1,488 368 301 1,599 1,161 2,990 1,426 2,081 1,055(3) 1,571(3) 359 310 344 605 2,854 52,364
WATER WITHDRAWAl
Surface mm3 13 5.2 8.4 34 0.4 0.4 - - 2.0 1.6 0.7 - 1.9 1.5 2.2 - 1.2 1.5 3.4 0.0 0.3 0.3 0.4 2.6 80
Ground mm3 - - 0.9 - - 0.8 2.1 0.3 0.4 - - 0.5 - - - 0.9 0.3 - 0.0 0.2 - 0.2 - - 6.6
Grid mm3 0.05 0.01 0.02 0.10 - - 0.2 - 0.01 0.1 - 0.01 0.01 - 0.1 0.1 0.02 0.03 0.01 0.01 0.01 0.1 0.1 0.02 1.0
Totalwater(4) mm3 13 5.2 9.3 34 0.4 1.2 2.3 0.3 2.4 1.7 0.7 0.5 1.9 1.5 2.3 1.0 1.5 1.5 3.5 0.2 0.3 0.6 0.4 2.6 88
DISCHARGES
To air
CO2fossildirect kTonnes 63 28 27 26 18 88 124 19 261 84 21 16 84 64 161 78 117 59 88 20 18 20 34 7.8 1,528
CO2fossilindirect kTonnes 23 24 - 11 11 13 31 10 8.8 - 2.7 1.9 5.4 16 13 0.6 4.0 - 4.5 - 5.2 4.7 - 24 215
CO2biogenic kTonnes 396 221 900 1,191 1.3 3.5 5.6 - 22 4.7 1.0 1.2 18 0.9 11 4.6 4.6 - - - - - 0.6 338 3,124
Dust Tonnes 54 20 49 277 0.15 - 0.4 - 0.4 0.2 0.3 0.8 - - - - - - 0.45 - - - - 41 443
noxasNO2 Tonnes 234 109 603 785 10 50 95 6.4 262 381 17 28 86 77 130 128 374 32 72 21 6.0 16 40 174 3,735
soxasNO2 Tonnes 25 28 132 91 5.3 0.2 1.4 0.3 73 12 11 5.3 1.5 0.5 27 1.7 70 0.5 11 0.05 0.03 0.1 2.3 91 590
To water
Processwater mm3 5.3 2.8 8.8 13 0.3 0.4 1.7 0.3 - 1.4 0.6 0.4 1.6 1.2 1.7 0.6 1.2 1.3 1.3 0.2 0.2 0.1 0.3 1.9 47
Coolingwater mm3 7.1 2.2 - 21 - 0.4 0.02 - 1.3 - - - - - - - - 0.1 1.9 - - 0.3 - - 34
COD Tonnes 7,076 321 4,293 2,151 39 97 334 N/A - 229 74 48 954 125 316 1,026 161 161 175 25 35 868 51 795 19,355bod Tonnes 4,273 60 1,182 294 2.4 4.5 17 N/A - 18 10 5.1 252 9.1 10 460 7.3 10 13 0.7 1.6 379 2.2 189 7,200TotalSuspendedSolids Tonnes 457 75 593 572 4.1 2.6 - N/A - 90 17 6.4 398 22 24 916 40 12 22 4.1 4.7 22 4.9 71 3,358TotalN Tonnes 41 10 88 66 6.3 0.3 19 N/A - 43 2.7 2.6 87 23 31 23 4.4 0.8 1.8 1.1 2.0 3.8 1.7 9.5 468TotalP Tonnes 3.4 0.6 11 16 0.3 0.2 1.2 N/A - 2.7 3.3 0.5 15 1.8 3.0 11 0.3 0.1 0.3 0.1 0.3 0.2 0.2 0.8 72Solid wastes
Totalnon-hazardouswastes Tonnes 23,618 18,837 33,012 40,002 7,523 18,167 30,114 7,694 24,144 31,994 4,083 5,215 23,312 22,225 37,761 23,400 35,297 12,258 19,091 5,470 2,095 4,950 7,535 82,501 520,297
Landfill Tonnes 3,288 1,123 11,611 5,863 3,743 89 - - 11,821 31,857 4,079 1,532 20,279 12,274 602 21,909 26,686 - 79 - - - - 78,291 235,125
Recovery Tonnes 20,097 17,714 21,384 34,139 3,780 18,078 30,114 7,693 1,416 137 4.2 3,683 3,033 9,952 37,071 1,491 8,611 311 19,012 5,470 2,095 4,950 7,407 4,169 261,809
Other Tonnes 233 - 18 - - - - 0.2 10,907 - - - - - 89 - - 11,947 - - - - 128 41 23,363
Hazardouswastes Tonnes 136 31 5,294 235 1.5 80 90 2.4 42 15 4.7 7.2 6.8 9.0 21 37 64 231 14 8.3 3.3 20 10 65 6,429
bkl :brownkraftliner mg:machineglazed wtkl:whitetopkraftliner (1)CHPisoutsourced N/A:notavailable cart:cartonboard sb :solidboard wttl:whitetoptestliner (2)netelectricityexportedbyCHP fl :recycledflute tl :testliner water emissions in grey italics: external waste water treatment (3)partofheatexported (4)Totalwaterincludesrainwaterandwastewaterfromanotherorganisation Individual cell entries have been rounded. The figures in the total column may not tally due to rounding differences.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT201280
EuROPEAN OPERATiONS 2012
papeR & boaRd
mills
INTEGRATEDCORRUGATEDopeRations
otHeR PACKAGING
opeRations
otHeR opeRations
TOTAl OPERATIOnS
PRODUCTIOn
kTonnes 5,541 4,234 586 1,924
EnERGy
Electricity Co&SelfGeneration GWh 1,974 15 - - 1,988
Hydropower GWh 5.5 - - - 5.5
NetGridsupply GWh 954 489 81 2.8 1,526
Totalelectricity GWh 2,933 503 81 2.8 3,520
Fuel usage Biofuels TJ 26,935 138 - - 27,073
fossilfuels TJ 25,430 4,137 201 83 29,851
Totalfuels TJ 52,364 4,275 201 83 56,923
WATER WITHDRAWAl
Surface mm3 80 - 80
Ground mm3 6.6 0.4 0.01 7.0
Grid mm3 1.0 1.3 0.1 - 2.4
Totalwater(2) mm3 88 1.7 0.1 - 90
DISCHARGES
To air CO2fossildirect ktonnes 1,528 239 12 6.1 1,785
CO2fossilindirect ktonnes 215 151 27 1.2 394
CO2biogenic ktonnes 3,124 15 - - 3,139
Dust tonnes 443 4.5 0.2 0.01 448
noxasNO2 tonnes 3,735 95 3.9 4.1 3,837
soxasSO2 tonnes 590 53 2.8 3.8 649
To water Processwater mm3 47 0.6 0.1 - 47
Coolingwater mm3 34 0.1 - - 34
COD(1) tonnes 19,355 1,806 N/A N/A 21,160
bod(1) tonnes 7,200 397 N/A N/A 7,597
TotalSuspendedSolids(1) tonnes 3,358 350 N/A N/A 3,708
TotalN(1) tonnes 468 15 N/A N/A 483
TotalP(1) tonnes 72 0.6 N/A N/A 72
Solid wastes Totalnon-hazardouswastes tonnes 520,297 31,347 7,467 9,982 569,093
Landfill tonnes 235,125 9,912 1,336 1,885 248,258
Recovery tonnes 261,809 16,683 5,698 8,009 292,199
Other tonnes 23,363 4,753 433 88 28,636
Hazardouswastes tonnes 6,429 3,310 592 1.0 10,333
N/A:notavailable (1)sumofavailabledata(formillsdetailsarereportedintheindividualtables)(2)Totalwaterincludesrainwaterandwastewaterfromanotherorganisation.
Individual cell entries have been rounded. The figures in the total column may not tally due to rounding differences.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012 81SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012
lATiN AMERiCAN MillS 2012 ENViRONMENTAl dATA
Bernal,AR
Coronel
Suarez,AR
Cali,CO
Barranquilla,
CO Barbosa,CO
LosReyes,Mx
CerroGordo,
Mx
Monterrey,M
x
Caracas,VE
Valencia,VE
Sanfelipe,VE
Tota
l mil
ls
fl,tl fl,tl P&W,Sack
paper,cart,
virginpulp,tl,bkl,scfl,wttl,wtkl
tl,fl fl,wttl fl,cart,
tl,wttl
tl,cart,fl
fl,tl tl,cart,wttl
cart tl,scfl,fl
PRODUCTIOn
kTonnes 69 48 263 62 73 75 284 40 16 36 98 1,064
EnERGy
Electricity
Co&SelfGeneration GWh - - 242 31 - - - - 4.4 35 104 416
Hydropower GWh - - - - - - - - - - - -
NetGridsupply GWh 34 19 95 2.1 40 50 162 21 5.7 10 3.1 442
Totalelectricity GWh 34 19 337 33 40 50 162 21 10 46 107 858
Fuel usage
Biofuels TJ - - 4,422 - - - - - - - 441 4,864
fossilfuels TJ 470 230 5,605 920 384 535 1,172 202 209 1,084 2,995 13,804
Totalfuels TJ 470(1) 230 10,027 920 384 535 1,172(1) 202 209(1) 1,084 3,436 18,668
WATER WITHDRAWAl
Surface mm3 0.8 - 21 1.1 0.6 - 0.5 - - 24
Ground mm3 0.3 0.1 0.2 1.6 0.1 1.0 5.3 8.5
Grid mm3 - - - 0.01 - - - 0.04 0.3 0.1 - 0.5
Totalwater(2) mm3 0.8 0.3 24 1.1 0.6 0.3 1.6 0.1 0.8 1.1 5.3 36
DISCHARGES
To air
CO2fossildirect kTonnes 27 13 448 52 31 30 66 11 13 62 172 924
CO2fossilindirect kTonnes 12 6.7 17 0.4 7 23 74 10 1.1 2.1 0.6 152
CO2biogenic kTonnes 0.4 - 430 - - - - - - - 53 483
Dust Tonnes - - 187 8.9 0.9 0.7 1.9 - - 0.06 15 215
noxasNO2 Tonnes 15 13 248 72 22 30 51 4.8 47 92 230 825
soxasSO2 Tonnes 2.0 0.3 2,582 1.3 109 0.05 0.6 0.02 1.0 17 6.0 2,718
To water
Processwater mm3 0.7 0.2 24 1.0 0.3 0.2 0.7 0.06 0.8 0.6 3.5 32
Coolingwater mm3 - - - - - - - - - - - -
COD Tonnes 272 53 7,197 2,058 1,541 32 165 59 1,246 170 1,610 14,404
bod Tonnes 117 8.5 1,276 1,027 606 2.3 8.1 15 589 32 145 3,825
TotalSuspendedSolids Tonnes 59 5.8 2,168 657 95 2.4 21 19 724 50 228 4,029
TotalN Tonnes 4.8 1.6 166 11 3.7 1.0 4.2 3.1 12 3.2 15 226
TotalP Tonnes 0.5 0.1 11 0.2 0.2 0.4 2.5 0.2 1.3 0.4 1.5 18
Solid wastes
Totalnon-hazardouswastes Tonnes 6,462 6,272 218,615 2,690 6,926 1,998 44,417 6,271 853 9,103 38,124 341,732
Landfill Tonnes 6,348 6,272 216,694 2,616 5,398 1,888 19,162 5,966 816 8,943 37,987 312,091
Recovery Tonnes 112 - 1,406 72 1,521 111 25,255 305 37 159 137 29,116
Other Tonnes 1.9 - 515 1.5 6.7 - - - - - - 525
Hazardouswastes Tonnes 12 4.4 208 19 6.5 8.3 39 6.6 1.3 15 985 1,304
bkl :brownkraftliner P&W:printingandwritinggrade virginpulp:virginpulpsoldexternally cart:cartonboard scfl :semi-chemicalflute wtkl :whitetopkraftliner fl :recycledflute tl :testliner wttl :whitetoptestliner
Individual cell entries have been rounded. The figures in the total column may not tally due to rounding differences.
(1)partofheatexported(2)Totalwaterincludesrainwaterandwastewaterfromanotherorganisation.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT201282
lATiN AMERiCAN OPERATiONS 2012
papeR & boaRd mills
otHeR opeRations
TOTAl OPERATIOnS
PRODUCTIOn
kTonnes 1,064 2,434
EnERGy
Electricity
Co&SelfGeneration GWh 416 - 416
Hydropower GWh - - -
NetGridsupply GWh 442 113 554
Totalelectricity GWh 858 113 971
Fuel usage
Biofuels TJ 4,864 - 4,864
fossilfuels TJ 13,804 1,028 14,832
Totalfuels TJ 18,668 1,028 19,696
WATER WITHDRAWAl
Surface mm3 24 0.05 24
Ground mm3 8.5 0.3 8.8
Grid mm3 0.5 0.2 0.7
Totalwater(1) mm3 36 0.6 36
DISCHARGES
To air
CO2fossildirect ktonnes 924 64 988
CO2fossilindirect ktonnes 152 38 191
CO2biogenic ktonnes 483 - 483
Dust tonnes 215 1.8 217
noxasNO2 tonnes 825 26 851
soxasSO2 tonnes 2,718 27 2,745
To water
Processwater mm3 32 0.1 32
Coolingwater mm3 - 0.01 0.01
COD tonnes 14,404 100 14,504
bod tonnes 3,825 51 3,876
TotalSuspendedSolids tonnes 4,029 15 4,044
TotalN tonnes 226 2.4 228
TotalP tonnes 18 0.4 19
Solid wastes
Totalnon-hazardouswastes tonnes 341,732 8,258 349,991
Landfill tonnes 312,091 4,997 317,088
Recovery tonnes 29,116 1,397 30,513
Other tonnes 525 1,865 2,390
Hazardouswastes tonnes 1,304 1,176 2,480
Individual cell entries have been rounded. The figures in the total column may not tally due to rounding differences.
(1)Totalwaterincludesrainwaterandwastewaterfromanotherorganisation.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012 83SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012
TOTAl GROuP OPERATiONS
All operations
2012 2011 2010 2009
EnERGy
Electricity Co&SelfGeneration GWh 2,405 2,401 2,250 2,169
Hydropower GWh 5.5 5.5 8.3 11
NetGridsupply GWh 2,081 2,049 2,321 2,446
Totalelectricity GWh 4,491 4,456 4,580 4,626
Fuel usage Biofuels TJ 31,936 33,102 32,769 29,391
fossilfuels TJ 44,683 46,046 46,628 47,134
Totalfuels TJ 76,619 79,149 79,397 76,525
WATER WITHDRAWAl
Surface mm3 104 103 109 121
Ground mm3 16 15 15 16
Grid mm3 3.1 3.0 3.2 3.8
Totalwater(3) mm3 126 122 127 141
DISCHARGES
To air CO2fossildirect kTonnes 2,773 2,851 2,861 2,917
CO2fossilindirect kTonnes 584 568 658 658
CO2biogenic kTonnes 3,622 3,606 3,517 3,100
Dust Tonnes 665 699 772 1,004
noxasNO2 Tonnes 4,688 4,767 5,595 6,566
soxasSO2 Tonnes 3,395 3,893 3,691 3,832
To water Processwater mm3 79 78 82 96
Coolingwater mm3 34 32 33 32
COD(1) Tonnes 35,665 36,278 35,024 38,961
bod(1)(2) Tonnes 11,473 11,638 11,404 11,875
TotalSuspendedSolids(1) Tonnes 7,752 8,504 8,033 8,384
TotalN(1) Tonnes 711 643 653 420
TotalP(1) Tonnes 91 97 109 86
Solid wastes Totalnon-hazardouswastes Tonnes 919,084 906,389 888,775 918,692
Landfill Tonnes 565,345 525,854 453,239 453,498
Recovery Tonnes 322,712 329,880 377,493 337,529
Other Tonnes 31,026 50,655 58,043 127,666
Hazardouswastes Tonnes 12,813 10,717 12,448 10,289
(1)sumofavailabledata(formillsdetailsarereportedintheindividualtables)(2)NettingsdorferBOD’svaluesfromyears2011,2010and2009havebeenadjusted,withtheaccurateratio
COD/BODmeasuredin2012.(3)Totalwaterincludesrainwaterandwastewaterfromanotherorganisation.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT201284
MANAGEMENT SySTEMS CERTifiCATiON
fORESTRy forestManagement
wOOd SOuRCiNG ChainofCustodylatin America Europe
CO Colombiaforest FSC® es Centralforestal PEFC & FSCve Venezuelaforest FR ComptoirDuPinAquitaine PEFC & FSC
ExTERNAl PAPER SOuRCiNG ChainofCustodyEurope
EuropeanPaperSourcing(EPS) PEFC & FSC
EuROPEAN MillS
Virgin mills
QualityManagement
System
EnvironmentalManagement
System
HealthandSafetySystem
ChainofCustody
ISO 9001 ISO 14001 OHSAS 18001
at Nettingsdorfer • • PEFC & FSCes Navarra • • PEFC & FSC
Nervión • • PEFC & FSCFR CelluloseduPin • • • PEFC & FSCse Piteå • • PEFC & FSCRecycled millsCZ Morava • • • PEFC & FSCde BadenKarton • • • PEFC & FSC
CDHaupt • • • PEFC & FSC Herzberger • • • FSCHoya • • • PEFC & FSC Viersen • • • PEFC & FSC Zülpich • • • PEFC & FSC
es Mengibar • • PEFC & FSC FR Alfad’Avignon • • PEFC & FSC
Rethel • • PEFC & FSC Saillat • • • PEFC & FSC
it Ania • • PEFC & FSC nl sbmCoevorden • • • PEFC & FSC
sbmHoogkerk • • • PEFC & FSC sbmNieuweschans • • • PEFC & FSC sbmOudePekela • • • PEFC & FSC Roermond • • • PEFC & FSC
UK SSK • • • PEFC & FSC TownsendHook • • • PEFC & FSC
lATiN AMERiCAN MillSVirgin millsCO Cali • FSCve SanfelipeRecycled millsaR Bernal
CoronelSuarezCO Barbosa • FSC
Barranquilla • FSCMx CerroGordo • • FSC
LosReyes • • FSCMonterrey • • FSC
ve CaracasValencia feb2013
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012 85SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012
ABOuT THE REPORT
TheinformationinthisreportcoversalltheinternationalactivitiesoftheSmurfitKappaGroupforthecalendaryear2012andalsoincludessomeinformationforearly2013whenmentionedspecifically.Dataincludedarefortheyear2012only.
ThereportdescribesSmurfitKappa’svisionandactivitiesonsustainabilityintheenvironmental,economicandsocialareas.
Attheendof2012ouroperationsincluded348facilitiesin32countriesinEuropeandtheAmericas.Thisincludesasmallnumberofjointventuresandminorityholdings,noneofwhichismaterial.InformationfromallthoseoperationsisincludedinthisreportexceptforSmurfitKappaOrangeCounty(seebelow).forthiscompanydataareonlyincludedwhenspecificallymentionedintherelevantsectionofthereport.
Acquisitions and divestitures 2012InJanuary2012SmurfitKappaacquiredBaguin,abag-in-boxpackagingsolutionscompanyinBuenos Aires,Argentina.for2012,onlyenvironmentaldataofthiscompanyareincludedinthisreport.InDecember2012,weacquiredOrangeCountyContainerGroup, acorrugatedandcontainerboardmanufacturerwithoperationsinnorthernMexicoandthesouthernUnitedStates.ThiscompanywasthenrenamedSmurfitKappaOrangeCounty(“SKOC”).Therewerenodivestitures in2012.Apartfromtheacquisitionsmentioned,nosignificantchangesinthescope,boundaryandmeasurementmethodswereappliedtothereportcomparedtopreviousyears.
Topics, issues and targetsSmurfitKappafullyrecognisesthatsustainabledevelopmentembracessocialandbusinesssubjects aswellasenvironmentaltopics.Thesesubjectsandtopicshavebeenselectedonthebasisofinputfrom thevariousstakeholdergroups.SmurfitKappacollecteddatafromallitsmanufacturingoperationsthatwereoperationalattheendof2012withexceptionoftheSKOCasmentionedabove.
Whenquantifiedperformanceortargetsarementionedinthisreport,theyarerelatedtoproductionlevels. Otherinformationisreportedinabsolutefigures, unlessotherwisestated.
Reporting guidelines, data collectionAmongthevariousreferencesusedforthedevelopmentandidentificationofbaselinedataincludedinthisreportaretheG3.1SustainabilityReportingGuidelinesissuedbytheGlobalReportingInitiative(GRI),anindependentinstitutionwhosemissionistoprovideatrustedandcredibleframeworkforsustainabilityreporting.SmurfitKappaappliedtheGRIatanA+level.
Everyefforthasbeenmadetoprovidedatathatisasaccurateaspossible.DatarelatingtoenvironmentalmattersaregatheredthroughaGroup-wideITbased
reportingsystemimplementedinalloperationsofSmurfitKappa.
ThistoolisintegratedintotheGroup’sintranet,enablingsitestoreporttheirenvironmentaldataonlineaccordingtotheGRIguidelines.Astheinformationisstoredcentrally,thisallowsforeasierandfasterprocessing.
Wemakecontinuousefforttointroducenewfunctionalitytoallowtheindividualoperationstocomparetheirperformancewiththepreviousreportingperiods,toextractdataforfurtherandindividualprocessingoftheirowndata,andtoalertthemwheresignificantdeviationoccurs.Reportingprocedureshavebeenrevisedandfurtherstrengthenedduring2012.
In2012,wedevelopedspecificprotocolsforreportingenergyandairemissionsdataforcertainpaperand boardmills.Ourintentionistodevelopsuchprotocols forallotherpaperandboardmillsinthenexttwoyears.Intentionistodevelopprotocolsnotonlyforenergy databutforthereportingofallenvironmentalindicators,contributingtoourobjectivetoensurecontinuousconsistencyofreporteddataacrossourglobaloperationalsystem.
forthemostpart,dataisbasedonmeasuredor meteredquantities,oronbestestimatesbasedonindustryknowledgeandestablishedcalculation factors.CO2 emissioncalculationshavebeenbased onestablishedfuelconsumptionandspecificCO2 emissionfactors.Definitionsandcalculationsfortheperformanceindicatorscanbefoundintheglossary onpages94to96.
Wearemakingon-goingeffortstofurtherstandardisethedatagatheringsysteminSmurfitKappatoimprovedataqualityandconsistencyintheuseofGroupdefinitionsandscoperequirementsofourkeyindicators.
Werequestedanexternalassuranceprovider,KPMG,toprovidelimitedassuranceonthedataandthetextofthereport.TheassurancereportofKPMGcanbefoundonpage93.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT201286
RelationsHip to GRIGUIDELINES
GRI-G3.1 DESCRIPTION level oF REPORTING
SOURCE/COMMENT PAGE(S)
Profile
1.1 CEOStatementonrelevanceofsustainabilitytotheorganisationanditsstrategy
full sdR 6-7
1.2 Descriptionofkeyimpacts,risksandopportunities full sdR 17-19
Organisational Profile
2.1 Nameoftheorganisation full sdR Cover
2.2 Primarybrands,products,and/orservices full aR 3-5
2.3 Operationalstructureoftheorganisation full Website
2.4 Locationoforganisation’sheadquarters full sdR Insidebackcover
2.5 Countrieswheretheorganisationoperates full aR 3-5
2.6 Natureofownershipandlegalform full aR 114-115,117
2.7 Marketsserved full Website
2.8 Scaleofthereportingorganisation full aR 2-5
2.9 Significantchangesduringthereportingperiodinsize,structureandownership
full aR 113-114
2.10 Awardsreceivedinthereportingperiod full Website
Report Parameters
3.1 Reportingperiod(e.g.fiscal/calendaryear)forinformationprovided
full sdR 85
3.2 Dateofmostrecentpreviousreport(ifany) full sdR 6
3.3 Reportingcycle(annual,biennial,etc.) full sdR 6
3.4 Contactpointforquestionsregardingthereportoritscontents full sdR Insidebackcover
3.5 Processfordefiningreportcontent full sdR 85
3.6 Boundaryofthereport full sdR aR
85 3-5
3.7 Anyspecificlimitationsonthescopeorboundaryofthereport full sdR 85
3.8 Basisforreportingonjointventures,subsidiaries,etc. full sdR 85
3.9 Datameasurementtechniquesandthebasesofcalculations full sdR 34,85
3.10 Explanationofeffectofre-statementsofinformationprovidedpreviously
full sdR 83
3.11 Significantchangesinscope,boundary,ormeasurementmethods
full sdR 83
TheGlobalReportingInitiative(GRI)isalargeworldwidenetworkofexpertswhosemissionistoprovideglobalstandardsforsustainabilityreporting.
TheGRInetworkhasdevelopedaSustainabilityReportingframework,thecoreofwhichistheSustainabilityReportingGuidelines.TheGuidelinesconsistofprinciplesfordefiningreportcontentandensuringthequalityofreportedinformationaswellasstandarddisclosurescomprisingperformanceindicatorsandotherdisclosureitems.Theseguidelinesprovideaninternationallyrecognisedframeworkforvoluntaryreportingonanorganisation’seconomic,environmentalandsocialperformance.
TheindexbelowhasbeenpreparedusingthecurrentGRISustainabilityReportingGuidelines(versionG3.1)anditprovidesalistoftheGRIindicatorsreportedbySmurfitKappafor2012.AllcoreIndicatorshavebeenaddressedandareincludedinthetable.Theindexreferstoinformationinour2012SustainableDevelopment Report(SDR),our2012AnnualReport(AR),ourwebsite:www.smurfitkappa.comandtheCarbonDisclosureProjectwebsite.
Wedeclarethatour2012reportingappliestoaGRI“A+”applicationlevel.An“A”applicationlevelrequiresreportingonaspecifiedrangeofcriteria,onthemanagementapproachtodisclosuresforeachindicatorcategoryandaresponseoneachcoreG3.1indicator. Wehavesoughtassurancefromanexternalpartywhichexpandstheapplicationlevelto“A+”.
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012 87SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012
GRI-G3.1 DESCRIPTION level oF REPORTING
SOURCE/COMMENT PAGE(S)
3.12 TableidentifyingthelocationoftheStandardDisclosuresinthereport
full sdR 86-90
3.13 Policyandcurrentpracticeonseekingexternalassuranceforthereport
full sdR 86,93
Governance, Commitments, and Engagement
4.1 Governancestructureoftheorganisation full aR 38-44
4.2 IndicateifChairoftheBoardisalsoanexecutiveofficer full aR 40
4.3 TheBoardmembersthatareindependentand/ornon-executivemembers
full aR 38
4.4 WaysforshareholdersandemployeestoproviderecommendationsordirectiontotheBoard
full sdR aR
57 43
4.5 LinkbetweencompensationofBoardandmanagementwithSDRperformance
full aR 47
4.6 ProcessesinplacefortheBoardtoensureconflictsofinterestareavoided
full Website
4.7 ProcessfordeterminingthequalificationsandexpertiseoftheBoard
full aR 39
4.8 Internallydevelopedstatementsofmissionorvalues,codesofconduct,andprinciples
full sdR aR Website
8-9 13,38-43
4.9 ProceduresoftheBoardforoverseeingidentificationandmanagementofperformance
full aR 40
4.10 ProcessesforevaluatingtheBoard’sownSDRperformance full sdR aR
8 40
4.11 Explanationofwhetherandhowtheprecautionaryapproachorprincipleisaddressedbytheorganisation
full aR 43
4.12 Externallydevelopedeconomic,environmentalandsocialcharters&principles
full sdR 8
4.13 Membershipsinassociations full sdR 10-11
4.14 Listofstakeholdergroupsengagedbytheorganisation full sdR 11
4.15 Basisforidentificationandselectionofstakeholderswithwhomtoengage
full sdR 6,10,12
4.16 Approachestostakeholderengagement full sdR 10-12,16
4.17 Keytopicsandconcernsraisedthroughstakeholderengagement
full sdR 10-12
Economic Indicators
Disclosureonmanagementapproach full sdR aR
6,10-12 13,30-33,64-73
EC1 Directeconomicvaluegeneratedanddistributed full aR 74-76
EC2 financialimplicationsandotherrisksandopportunitiesfortheorganisation’sactivitiesduetoclimatechange
full CDP2012Investor Section5
EC3 Coverageoftheorganisation’sdefinedbenefitplanobligations full aR 70,72,93-97
EC4 Significantfinancialassistancereceivedfromgovernment full aR 58,69
EC6 Policy,practicesandproportionofspendingonlocally-basedsuppliersatsignificantlocationsofoperation
full sdR 11,70
EC7 Proceduresforlocalhiringandproportionofseniormanagementhiredfromthelocalcommunityatsignificantlocationsofoperation.
full sdR 53
EC8 Developmentandinfrastructureprovidedprimarilyforpublicbenefit
full SDR 59-64 Otherthanlocalcommunityinvolvement, noengagementbySmurfitKappa
Environmental Indicators
Disclosureonmanagementapproach full sdR 8,15-16,85
En1 Materialsusedbyweightorvolume full sdR 76-77
En2 Percentageofmaterialsusedthatarerecycledinputmaterials full sdR 28
En3 Directenergyconsumptionbyprimaryenergysource full sdR 34-35,76-83
En4 Indirectenergyconsumptionbyprimarysource full sdR 35,76-83
En5 Energysavedduetoconservationandefficiencyimprovements full sdR 34,38
En6 Energy-efficientorrenewableenergyproductsandservices full sdR 33-36,38
En8 Totalwaterwithdrawalbysource full sdR 41,76-83
En10 Percentageandtotalvolumeofwaterrecycledandreused full sdR 40,76-83
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT201288
GRI-G3.1 DESCRIPTION level oF REPORTING
SOURCE/COMMENT PAGE(S)
En11 Locationandsizeoflandbyprotectedareasandareasofhighbiodiversityvalue
full sdR Website
29-30
En12 Descriptionofsignificantimpactsofactivities,productsandservicesonbiodiversity
full sdR 30-33
En16 Totaldirectandindirectgreenhousegasemissionsbyweight full sdR 35,76-83
En17 Otherrelevantindirectgreenhousegasemissionsbyweight full sdR 40,76-83
En18 Initiativestoreducegreenhousegasemissionsandreductionsachieved
full sdR 36
En19 Emissionsofozone-depletingsubstancesbyweight full Wedonotaddanyozone-depletingsubstances(ODS),thathavebeenregulatedfollowingtheMontrealProtocol,toourproductsduringourmanufacturingprocesses.Consequently,ourproductsdonotemitanyODSduringtheirlifecycle.
En20 nox,SOxandothersignificantairemissionsbytypeandweight full sdR 76-83
En21 Totalwaterdischargebyqualityanddestination full sdR 40-42,76-83
En22 Totalweightofwastebytypeanddisposalmethod full sdR 76-83
En23 Totalnumberandvolumeofsignificantspills full SDR Onesignificantspilloccurredat 41 CelluloseduPin
En26 Initiativestomitigateenvironmentalimpactsofproductsandservices,andextentofimpactmitigation
full sdR 15-16,26-43
En27 Percentageofproductssoldandtheirpackagingmaterialsthatarereclaimedbycategory
full sdR 26
En28 Significantfinesandnon-monetarysanctionsfor non-compliancewithenvironmentallaw
full sdR 9
En29 Significantenvironmentalimpactfromtransport full sdR 40
labour Practice Indicators
Disclosureonmanagementapproach full sdR 12,44-58
lA1 Totalworkforcebyemploymenttypeandregion full sdR 52-54
lA2 Totalnumberandrateofemployeeturnoverbyagegroup,gender,andregion
full sdR 54
lA3 Benefitsprovidedtofull-timeemployees full sdR 52
lA4 Percentageofemployeescoveredbycollectivebargainingagreements
full sdR 52
lA5 Minimumnoticeperiod(s)regardingsignificantoperationalchanges
full sdR 57
lA7 Ratesofinjury,occupationaldiseases,lostdaysandabsenteeism,andnumberofwork-relatedfatalitiesbyregion
full sdR 47-48
lA8 Education,training,counselling,preventionandrisk-controlprogrammesinplacetoassistworkforcemembers,theirfamiliesorcommunitymembersregardingseriousdiseases
full sdR 46
lA10 Averagehoursoftrainingperyearperemployeebyemployeecategory
full sdR 54
lA11 Programmesforskillsmanagementandlifelonglearning full sdR 54-57
lA12 Employeesreceivingperformanceandcareerdevelopmentreviews
full sdR 55
lA13 Compositionofgovernancebodiesandbreakdownofemployeespercategoryaccordingtogender,agegroup,minoritygroupmembership,andotherindicatorsofdiversity
full aR sdR
38-39 52-54
lA14 Ratioofbasicsalaryofmentowomenbyemployeecategory full sdR Samejob,samepay
52
lA15 Returntoworkandretentionratesafterparentalleave,bygender(partialreporting)
Partial SDR 53
Detailedinformationnotcurrentlyavailable
Human Rights Indicators
Disclosureonmanagementapproach full sdR 12,52
HR1 Percentageandtotalnumberofsignificantinvestmentagreementsthatincludehumanrightsclausesorthathaveundergonehumanrightsscreening
full sdR 57-58
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012 89SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012
GRI-G3.1 DESCRIPTION level oF REPORTING
SOURCE/COMMENT PAGE(S)
HR2 Percentageofsignificantsuppliersandcontractorsthathaveundergonescreeningonhumanrightsandactionstaken
full SDR 58
Noformalassessmentsinplace.OurCodeofBusinessConductprovidestheprinciplestooperateforallouroperationsglobally.OurCodeofBusinessConductisbasedoninternationalconventionsandcodessuchasTheUNDeclarationoffundamentalHumanRightsandtheILODeclarationonfundamentalPrinciplesandRightsatwork(coreconventions).Approximately15%ofourproductionvolumeoriginatesfromcountriesconsideredhighorextremerisk(accordingtotheMaplecroftHumanRightsRiskIndex2013).Alsoforcountrieswithhighorextremerisk,ourCodeofBusinessConductisbasisfordoingbusiness.Therefore,weconsidertheriskthatouroperationsinthoseandothercountriesviolatehumanrightsaslow.
HR3 Totalhourstrainingonpoliciesandproceduresconcerninghumanrights
Notreported Wehavenosuchtrainingprogrammes.
EmployeesaremadeawareofrelevantpoliciesthroughawarenessprogrammesregardingCodeofBusinessConduct.
HR4 Totalnumberofincidentsofdiscriminationandactionstaken full sdR Website
52
HR5 Operationsandsignificantsuppliersidentifiedinwhichtherighttoexercisefreedomofassociationandcollectivebargainingmaybeatsignificantrisk,andactionstakentosupporttheserights
full sdR 52
HR6 Operationswithsignificantriskforincidentsofchildlabour,andmeasurestakentoeliminate
full sdR 52
HR7 Operationswithsignificantriskofforcedorcompulsorylabour,andmeasurestoeliminate
full sdR 52
HR8 Percentageofsecuritypersonneltrainedintheorganisation’spoliciesorproceduresconcerningaspectsofhumanrightsthatarerelevanttooperations
Notreported Notapplicable
HR9 Incidentsofviolationsinvolvingrightsofindigenouspeopleandactionstaken
full seecommentunderHR2
HR10 Percentageandnumberofoperationssubjecttohumanrightsreviews
full seecommentunderHR2
HR11 Numberofgrievancesrelatedtohumanrightsaddressedandresolved
full NosuchgrievanceswerereportedtoGroupandtherewerenosuchreportstolocaloperationseither.
Social
Disclosureonmanagementapproach full sdR 12,59
SO1 Percentageofoperationswithimplementedlocalcommunityengagement,impactassessments,anddevelopmentprogrammes.
Partial sdR 59-65
SO2 Percentageandtotalnumberofbusinessunitsanalysedforrisksrelatedtocorruption
Partial sdR 8-9
SO3 Percentageofemployeestrainedinorganisation’santi-corruptionpoliciesandprocedures
full sdR 8-9
SO4 Actionstakeninresponsetoincidentsofcorruption full sdR 8-9
SO5 Publicpolicypositionsandparticipationinpublicpolicydevelopmentandlobbying
full sdR 8-9
SO6 Totalvalueoffinancialandin-kindcontributionstopoliticalparties,politiciansandrelatedinstitutionsbycountry
full sdR 8-9
SO7 Totalnumberoflegalactionsforanti-competitivebehaviour,anti-trustandmonopolypracticesandtheiroutcomes
full sdR 8-9
SO8 Monetaryvalueofsignificantfinesandtotalnumberofnon-monetarysanctionsfornon-compliancewithlawsandregulations
full sdR 8-9
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT201290
GRI-G3.1 DESCRIPTION level oF REPORTING
SOURCE/COMMENT PAGE(S)
SO9 Operationswithsignificantpotentialoractualnegativeimpactonlocalcommunities
full Ingeneral,werecognisethatouroperationsareofeconomicsignificanceforthelocalcommunitiesinwhichtheyarelocated.Itisourpolicytobeactivelyinvolvedsociallyinourhostcommunities.Environmentally,ourpaperandboardmillsmaypose ariskofeffluentleakageswhich,iftheyoccur,maytemporarilyaffectlocalwaterstreamswithincreasedCOD/BODorTSSlevels.Ouroperationsdonotposeasignificantriskofemissionstoairofsubstancesthatmayaffecthumanhealth.Ouroperationsdonotpose arisktotheirhostcommunitiesregardingtheuseofnaturalresourceswiththepossibleexceptionofthoseareaswherewaterisscarce.
SO10 Preventionandmitigationmeasuresinoperationswithsignificantpotentialoractualnegativeimpactonlocalcommunities
full Ingeneral,bycomplyingwithlocalandinternationallaws,thereisnoneedforfurtherpreventionand/ormitigationmeasureswithregardtopotentialenvironmentalrisksthatcouldpossiblyimpacthostcommunities.
forthehandlingofthenegativeenvironmentalimpactoftheblackliquorspillageinfactureseepage41.
Inthosecaseswherealocaloperationdiscontinuesitsoperations,anynegativeeconomiceffectsonitshostcommunityaremitigatedbyactionsdescribedonpages80and81.
Product Responsibility Indicators
Disclosureonmanagementapproach full sdR 12,71
PR1 Lifecyclestagesinwhichhealthandsafetyimpactsofproductsandservicesareassessedforimprovement,andpercentageofsignificantproductsandservicescategoriessubjecttosuchprocedures
full sdR 72
PR2 Incidentsofnon-compliancewithregulationsandvoluntarycodesonHealthandSafetyimpactsofproductsandservicesduringtheirlifecycle,bytypeofoutcomes
full sdR 72
PR3 Typeofproductandserviceinformationrequiredbyprocedures,andpercentageofsignificantproductsandservicessubjecttosuchinformationrequirements
full sdR 72
PR4 Totalnumberofincidentsofnon-compliancewithregulationsandvoluntarycodesconcerningproductandserviceinformationandlabelling,bytypeofoutcomes
full sdR 72
PR5 Practicesrelatedtocustomersatisfaction,includingresultsofsurveysthatmeasurecustomersatisfaction
full sdR 69
PR6 Programmesforadherencetolaws,standards,andvoluntarycodesrelatedtomarketingcommunications,includingadvertising,promotion,andsponsorship
full sdR 69
PR7 Totalnumberofincidentsofnon-compliancewithregulationsandvoluntarycodesonmarketingcommunications,includingadvertising,promotionandsponsorshipbytypeofoutcomes
full sdR 69
PR8 Totalnumberofsubstantiatedcomplaintsregardingbreachesofcustomerprivacyandlossesofcustomerdata
full Nosubstantiatedcomplaintsidentified
PR9 Monetaryvalueofsignificantfinesfornon-compliancewithlawsandregulationsconcerningtheprovisionanduseofproductsandservices
full Nofinesand/orsubstantiatedclaimsfornon-compliancewithlawsorregulationsconcerningtheprovisionanduseofproductsandserviceswereidentified
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012 91SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT2012
BuSiNESS iN THE COMMuNiTy iRElANdExTERNAl COMMENTARy – SMuRfiT kAPPA SuSTAiNABiliTy dEVElOPMENT REPORT 2012
This,thesixthsustainabilityreportpublishedby SmurfitKappa,isaveryimpressive,clearandcomprehensivereport.
Asacompanydedicatedto“thesustainablesupplyofpaper-basedpackagingsolutions”,sustainabilityisnotonlyakeybusinessdriverforSmurfitKappa,butaplatformfordifferentiationinthemarket.Throughinnovativepackagingdesignandcustomersupplychainoptimisation,SmurfitKappahasbecomeakeyenablerinensuringthedeliveryofcustomers’producttoconsumersisoptimallysustainable.
SmurfitKappaproducesboththerawmaterialforpackagingandthepackingitself.Astrongcommitment tocontinuousimprovementhasresultedinsignificantstridesbeingmadeonthecompany’sownsustainabilityjourney.
Particularlyimpressiveisthefactthat90%ofconvertingoperationsworldwideareChainofCustodycertifiedunderfSCorPEfC–achieved2yearsaheadofschedule.Theapproachtoensurecompletetraceabilityinthesupplychainandcontinuousinvestmentinsustainableforestrymanagementisevidenceofleadershipintheirsector.Inaddition,wewhollyendorsethecompany’sengagementwithsupplierstoaligntheirpoliciesandobjectivesonsustainabilitywiththoseofSmurfitKappa.
Indeed,thevalueplacedonstakeholderengagementas awholestandsoutinthisreport.PracticalexamplesareprovidedonhowSmurfitKappaengagesonanongoingbasiswithcustomers,employees,localcommunitiesandNGOs(regardingenvironmentalimpact).Inputfromallgroupsisdrawnupontoaidthecompanyrefinetheissuesmostmaterialtothecompany.
Throughthenarrativeanddetaileddatasupplied,itisevidentthattremendouseffortisbeingmadeinalloperatinglocationstoachieveabalanceofeconomic,socialandenvironmentalaspects.Wecommendthe levelofdatadisclosedonenergy,waterandwastemanagement.
Theexampleofinnovationbeingdeliveredby SmurfitKappainColombia,inpartnershipwithlocalorganisations,onbiofuel,isworthyofspecificmention.
Thesectiondetailingtherisksandchallengesregardingtheissuesoffibreavailability,therisingcostofenergy,regulationconcerningCO2emissions,waterandfoodsafety,facedbybothSmurfitKappaandthepaperpackingindustryasawholeisarticulatedwell.Eachchallengeisdealtwithcomprehensivelyandfollowingonfromthedisclosureoftheachievementsmadetodate,welookforwardtoreadinginthecomingmonths,howSmurfitKappaiscontinuinginitsriskmanagementstrategy.
ThenewCodeofBusinessConduct2012andongoingawarenessprogrammeislikelytopaydividendstoo.Safetyatworkcontinuestobeapriorityalongsidestrongpracticesinplaceonemployeemanagementanddevelopment.
Asinpreviousyears,independentassuranceis providedbyKPMGonhowSmurfitKappahasapplied theGlobalReportingInitiative’sG3.1Guidelines.Ourrecommendationsmadelastyearwerefullytakenonboardwiththeuseofgraphsand‘ataglance’illustrations.
RecommendationsThe2012reportisverycomprehensiveandperhapssomewhatrepetitiveinplaces.WesuggestthatSmurfitKappaconsidermakinggreateruseofthecorporatewebsitetofeaturethemainelementsofthereport,dividedintosectionse.g.impactofSmurfitKappaat aglance;innovativepackagingdesignforcustomers;approachtoriskmanagement;engagementwithstakeholders;objectivesandtargetsforthecomingyear.
further,whileexcellentexamplesofpackagingdesignandcustomersupplychainoptimisationareincludedinthisreport,werecommendthatadditionalemphasisisgiventotheseinthenextiteration.
Onafinalnote,theextenttowhichsustainabilityisintegratedintotheSmurfitKappabusinessstrategy,operationsandactivitiessuggeststousthatthecompanyisreadyforthechallengeofanintegratedreport-wherefinancial,social&environmentaldata,approachandimpact-isdisclosedinonedocument.AccordingtotheGRI,“the future of corporate reporting is the integration of financial and sustainability strategy and results.”
InplacingsustainabilityattheheartofSmurfitKappa’sbusinessstrategyandindrivingongoing,continuousimprovement,bothinglobaloperationsandcommunications,aleadershipopportunityisavailable totheGroupinintegratedreporting,thatwewarmlyrecommendisseizedandactedupon.
Tina Roche ChiefExecutive BusinessintheCommunityIreland
SMURFIT KAPPASUSTAINABLEDEVELOPMENTREPORT201292
uN GlOBAl COMPACT
SmurfitKappabecameaparticipantintheUnitedNationsGlobalCompact,aworldwidecorporatecitizenshipinitiative,in2010.Thisisnowanetworkofmorethan10,000corporateparticipantsandotherstakeholdersfromover130countrieswhopromotetencoreprinciplesintheareasofhumanrights,labour,environmentandanti-corruption.Theseprinciplesarelistedinthetablebelow.
Asapartofthiscommitment,SmurfitKappawillreportontheCompany’scorporateresponsibilityactivitiesandperformanceinanannualCommunicationonProgress(COP),usingtheannualSustainableDevelopmentReportastheplatformforthiscommunication.
TheSustainableDevelopmentReportprovidesanumberofexamplesofongoingactivities,aswellasrelevantkeyperformanceindicators,whichillustrateSmurfitKappa’s
supportforthetenGlobalCompactprinciplesinitseverydaybusiness.MeasurementsofperformancerelatedtotheGlobalCompactprinciplesaregivenusingindicatorsprovidedbytheGlobalReportingInitiative(GRI),whereverfeasible.Inparticular,GRIperformanceindicatorsrelatingtohumanrights,labourandanti-corruptionprinciplesarepresentedintheSocialDevelopmentsectionwhileenvironmentalperformanceindicatorsreportedintheEnvironmentsection. AcompleteGRIindexcanbefoundonpages86to 90oftheReport.
ThefollowingtableshowshowourperformanceinrelationtoeachUNGlobalCompactprinciplecan bereportedusinganumberofGRIperformanceindicators.ThisisbasedonguidancedocumentspublishedbytheUNGlobalCompact.
UnGC principles GRI indicators
HumanRights
1 Businessesshouldsupportandrespecttheprotectionofinternationallyproclaimedhumanrights;and
HR1-11,LA5,LA7-8,13-15,PR8
2 Businessesshouldmakesurethattheyarenotcomplicitinhumanrightsabuses. HR1-11
labour
3 Businessesshouldupholdthefreedomofassociationandtheeffectiverecognitionoftherighttocollectivebargaining;
LA4-5
4 Businessesshouldupholdtheeliminationofallformsofforcedandcompulsorylabour; HR7
5 Businessesshouldupholdtheeffectiveabolitionofchildlabour;and HR6
6 Businessesshouldupholdtheeliminationofdiscriminationinrespectofemploymentandoccupation.
EC7,LA2,13-15,HR4
Environment
7 Businessesareaskedtosupportaprecautionaryapproachtoenvironmentalchallenges; EC2,EN18,26
8 Businessesshouldundertakeinitiativestopromotegreaterenvironmentalresponsibility;and EN1-29,PR3-4
9 Businessesshouldencouragethedevelopmentanddiffusionofenvironmentallyfriendlytechnologies.
EN2,5-6,10,EN18,26-27
Anti-corruption
10 Businessesshouldworkagainstcorruptioninallitsforms,includingextortionandbribery. SO2-4
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iNdEPENdENT ASSuRANCE REPORT TothereadersoftheSustainableDevelopmentReport2012ofSmurfitKappaGroupplc.
iNTROduCTiONWewereengagedbytheBoardofDirectorsofSmurfitKappaGroupplc(further:‘SmurfitKappa’)toprovideassuranceontheSustainableDevelopmentReport2012(further:‘theReport’).TheExecutiveDirectorsofSmurfitKappaareresponsibleforthepreparationoftheReport,includingtheidentificationofmaterialissues.Ourresponsibilityistoissueanassurancereportbasedontheengagementoutlinedbelow.
SCOPEOurassuranceengagementwasdesignedtoprovidelimitedassuranceonwhethertheReportispresentedfairly,inallmaterialrespects,inaccordancewiththeG3.1GuidelinesoftheGlobalReportingInitiative.
Wedonotprovideanyassuranceontheachievabilityoftheobjectives,targetsandexpectationsofSmurfitKappa.
Proceduresperformedtoobtainalimitedlevelofassuranceareaimedatdeterminingtheplausibilityofinformationandarelessextensivethanthoseforareasonablelevelofassurance.
REPORTiNG CRiTERiA ANd ASSuRANCE STANdARdSmurfitKappaappliestheSustainabilityReportingGuidelinesoftheGlobalReportingInitiative(G3.1)asdescribedinthesectionRelationshiptoGRIGuidelines.Itisimportanttoviewtheperformancedatainthecontext ofthesecriteria.
WeconductedourengagementinaccordancewiththeInternationalStandardonAssuranceEngagements(ISAE3000):AssuranceEngagementsotherthanAuditsorReviewsofHistoricalfinancialInformation,issuedbytheInternationalAuditingandAssuranceStandardsBoard.Thisstandardrequires,amongstothers,thattheassuranceteampossessesthespecificknowledge,skillsandprofessionalcompetenciesneededtoprovideassuranceonsustainabilityinformationandthattheycomplywiththerequirementsoftheCodeofEthicsforProfessionalAccountantsoftheInternationalfederationofAccountantstoensuretheirindependence.
wORk uNdERTAkENOurproceduresincludedthefollowing:
n Ariskanalysis,includingamediasearch,toidentifyrelevantsustainabilityissuesforSmurfitKappainthereportingperiod;
n Evaluatingthedesignandimplementationofthesystemsandprocessesforthecollection,processingandcontroloftheinformationintheReport,includingtheconsolidationofthedatafortheReport;
n Interviewswithrelevantstaffatcorporatelevelresponsibleforthesustainabilitystrategy,policies,communicationandmanagement,aswellasotherrelevantstaffatcorporatelevelresponsibleforprovidingtheinformationfortheReport;
n VisitstoproductionsitesinWrexenandDüsseldorf(Germany),NerviónandMengibar(Spain),Valencia(Venezuela)andCali(Colombia)toreviewthesourcedataandthedesignandimplementationofcontrolsproceduresatlocallevel;
n Evaluatinginternalandexternaldocumentation,basedonsampling,todeterminewhethertheinformationintheReportissupportedbysufficientevidence;
n Ananalyticalreviewofthedataandtrendexplanationssubmittedbyallproductionsitesforconsolidationatcorporatelevel.
CONCluSiONBasedontheproceduresperformed,asdescribedabove,nothinghascometoourattentiontoindicatethattheReportisnotfairlypresented,inallmaterialrespects,inaccordancewiththeG3.1GuidelinesoftheGlobalReportingInitiative.
Amstelveen,21June,2013
KPMGSustainability, partofKPMGAdvisoryN.V.
WimBartels,Partner
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GlOSSARy
BOD BiochemicalOxygenDemand(oneelementoftheCOD,unit:mgO2/litre)referstothelevelofoxygenuptakebymicro-organismsinasampleofwatermeasuredoveraperiodoffivedays.
Biodiversity Generaltermtodescribethevarietyoflifeforms(floraandfauna)inanecosystem.
Biofuels fuelscomingfrombiomass(woodrejects,bark,blackliquorproducedduringtheproductionofvirginpulps,pitchoil,biomasspartofmixedwastesandbiogasproducedduringtheanaerobictreatmentofwater).
Black liquor Residuefrompulpingthatcontainsorganiccompounds(likelignin).Thisresidueisburntinpapermillstoproduceenergy.
CDP TheCarbonDisclosureProjectisanindependentnot-for-profitorganisationholdingthelargestdatabaseofprimarycorporateclimatechangeinformationintheworld.
CEn ComitéEuropéendeNormalisation.TheEuropeanCommitteeforStandardisationismajorproviderofEuropeanstandardsandtechnicalspecifications.
CEPI CEPI,theConfederationofEuropeanPaperIndustries.Itisanon-profitorganisationrepresentingtheEuropeanpulpandpaperindustry.
Certified wood product Certificationisgiventocompaniesandlandownerstoverifythattheirforestrypracticesareconsistentwithrequirementslaiddowninthesestandards.Onlycertifiedwoodproductmightcarryalabel.Thelabelonwoodproductsguaranteesthatconsumerscantrustthesources.ActualcertificationiscarriedoutbyindependentcertificationorganisationsthatareaccreditedbyfSCorPEfCorSfItocarryout.
CHP CombinedHeatandPower:acombinationofaboilerandagasand/orsteamturbinethatsimultaneouslyproduceselectricityandthermalenergy(steam)byburningfuels.Thissystemisconsideredtobethemostefficienttechnologyinindustriesusingbothsteamandelectricity.Whenmillssellpartoftheirproducedsteamtoanexternalpartyorhavenetelectricityexport(sellingmoretoanexternalpartythanpurchasing),theconsumptionoffuelandemissionsreportedforthismillisadjustedtoreportonlythatpartusedtoproducepaper.Thisadjustmentisbasedonareferenceheatboilerwithanefficiencyof90%,whichisalsousedbyCEPIandtheEuropeanCommissionforEUETSbenchmarkcalculations.
CHP (outsourced) ACHPinstallation,belongingtoanexternalparty,locatedatornearaSmurfitKappasitefordeliveringelectricityandsteamtotheSmurfitKappaproductionfacility.AllfuelsandelectricityusedfortheproductionofpaperaswellasemissionsrelatedtothatareincludedinthefiguresfortheSmurfitKappaproductionfacility.
COD ChemicalOxygenDemandisthemostcommonlyusedtesttomeasuretheamountoforganiccompoundsinwater(unit:mgO2/litre).Theresultindicatesthelevelofallorganiccompoundsthatcanbeoxidisedbyastrongoxidisingagent.
CoC ChainofCustodyCertificationapplyingtowood/fibrematerialandproducts.ChainofCustodyisaninformationtrailaboutthepathtakenbyproductsfromtheforestor,inthecaseofrecycledmaterials,fromthereclamationsitetotheconsumerincludingeachstageofprocessing,transformation,manufacturing,anddistributionwhereprogresstothenextstageofthesupplychaininvolvesachangeofownership.
Co-generation ElectricitygeneratedbyaCHPsystembelongingtoourorganisationorfromaCHPoutsourced.
Containerboard Papersandboardsmainlyusedinthemanufactureofcorrugatedboard.Theyaremadefromvirginorrecoveredfibres.Includedarekraftliner,testliner,semi-chemicalflutingandrecycledfluting.
Corrugated board Structuredboardmadebyacorrugatorusuallyformedbygluingonewaveformedliner(calledfluting)inthemiddletotwoflat-facingsheetsofcontainerboard(kraftlinerortestliner)outside.
CO2 biogenic Carbondioxideemittedwhenburningbiofuels.ThisCO2 isconsideredtobecarbonneutralasitisremovedfromtheatmosphereandstoredinbiomasswithinashortperiodoftime.
CO2 fossil Carbondioxideemittedwhenburningfossilfuelsfortheproductionofpaper.Thecalculationismadeaccordingtointernationalguidelinesfromthecarboncontentofeachfuel(WR/WBSCDGHGprotocol).
CO2 indirect fossilcarbondioxidegenerated,externallytothesite,toproducetheelectricitypurchasedfromthegridbythecompany.Source:InternationalEnergyAgencyDataServices.2009:“CO2 emissionsfromfuelcombustion(2009Edition)”.
Carbon dioxide equivalent CO2-eq
Ametricmeasureusedtocomparetheemissionsfromvariousgreenhousegasesbasedupontheirclimatechangepotential(CCP).TheCO2-eqcarbondioxideequivalentforotheremissionsisderivedbymultiplyingtheamountoftheemissionbytheassociatedCCPfactor.
CSR CorporateSocialResponsibility:aconceptwherebyorganisationsconsidertheinterestsofsocietybytakingresponsibilityfortheimpactoftheiractivitiesoncustomers,suppliers,employees,shareholders,communitiesandtheenvironmentinallaspectsoftheiroperations.
Dust Particlescomingfromthecombustionoffuels.Dustemissionsaremeasuredmainlybythemills.Wheredustisnotmeasured(convertingplants),emissionsarecalculatedfromfuelconsumptionusingtheemissionfactorslistedintheEcoinventdatabaseversion2.1.
EBITDA Earningsbeforeinterest,taxes,depreciationandamortisation.
ElCD EuropeanReferenceLifeCycleDatabase.TheELCDhasbeendevelopedwithinthe“EuropeanPlatformonLifeCycleAssessment”thatisaprojectoftheEuropeanCommission,carriedoutbytheCommission’sJointResearchCentre,InstituteforEnvironmentandSustainability(JRC-IES).
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Environmental Management System
Asetofprocessesandpracticesthatenableanorganisationtoreduceitsenvironmentalimpactandincreaseitsoperatingefficiency.
Emissions Trading Scheme Aschemecalculatedtoallocategreenhousegasallowancesforalistofspecificactivities.
Fluting Thewavyformedmiddlelayerincorrugatedboard.
Fossil fuels fuelsoriginatingfromnaturalresources(gas,oil,coal,peatandlignite).
FSC TheforestryStewardshipCouncilisanindependent,non-governmental,organisationestablishedtopromotetheresponsiblemanagementoftheworld’sforeststhroughindependentthirdpartycertification.
Gigajoule Unitofenergythatgenerallyappliestofuel.1gigajoule(GJ)=onebillionjoules=109joules.
GRI TheGRI(GlobalReportingInitiative)reportingframeworkisthegenerallyacceptedframeworkforreportingonanorganisation’seconomic,environmentalandsocialperformance.Thesustainabilityreportingguidelinesgivethereportingprinciples,andthelistofperformanceindicators,foreachofthethreekeyareasthatshouldbedisclosedinasustainabilityreport.
Grid supply Electricitypurchasedfromanationaldistributionnetwork.
GWh Unitofenergy,generallyappliestoelectricity–1GWh(GigaWatthour)=1MillionKWh(KiloWatthour).
Hectare Aunitofarea.Onehectare(Ha)=10,000m2.Onehectare=2.471acres.
IlO InternationalLabourOrganisation.
Inorganic raw materials Rawmaterialusedformanufacturingourproductsthatarenotorganicsuchas:fillers,sodiumhydroxide,sodiumsulphateandcalciumoxide.
Innotools Innotoolsisauniquesoftwaresuitefordevelopingfit-for-purposepacking.Itcomprises:Innobook,aninternallibrarywithalmost5,000provendesignsolutionsusedextensivelybydesignersinSmurfitKappa;PackExpert,anadvancedstatisticalmodelusedtodeterminethepackagingperformanceinthecustomer’ssupplychain;andPaper-to-Box,asophisticatedsoftwaretoolusedtopredictboxperformancebasedonboarddesignandcomposition.
ISO 9001 Schemecertifiedbyindependentthirdpartythatensuresthattheoperationcertifiedappliesinternationallyrecognisedstandardsandproceduresofqualitymanagement.
ISO 14001 Schemecertifiedbyindependentthirdpartythatensuresthattheoperationcertifiedappliesinternationallyrecognisedstandardsandproceduresofenvironmentalmanagement.
ISO 17025 Thisinternationalstandardliststherequirementstoallowtheaccreditationbyauthorisedthirdpartyofatestinglaboratoryandtoverifyitsproficiency.
ISO 22000 Thisstandardspecifiesrequirementsforafoodsafetymanagementsystemwhereanorganisationinthefoodchainneedstodemonstrateitsabilitytocontrolfoodsafetyhazardsinordertoensurethatfoodissafeatthetimeofhumanconsumption.
kTonne OnekTonne=1,000tonnes,whereonetonne(metrictonne)=1,000kilograms.
Kraftliner Papermademainlyfromvirginwoodfibres.
Mm3 1millioncubicmetres.
MJ Megajoule,aunitofenergy.1megajoule(MJ)=1millionjoules=106joules.
MWh Unitofenergy,generallyappliestoelectricity–1MWh(MegaWatthour)=1,000KWh(KiloWatthour).
natura 2000 Natura2000isanecologicalnetworkofprotectedareasintheterritoryoftheEuropeanUnion.InMay1992,governmentsoftheEuropeanUnionadoptedlegislationdesignedtoprotectthemostseriouslythreatenedhabitatsandspeciesacrossEurope(theHabitatsDirective).
nGO ANon-GovernmentalOrganisation(NGO)isalegallyconstitutedorganisationcreatedbyprivatepersonsororganisationswithnoparticipationorrepresentationofanygovernment.
n (nitrogen) TotalNitrogenisthesumoforganicnitrogen,ammonia,NH3andammonium,NH4+dischargedwiththeprocesswater.
nOx Mixofnitrogenoxides(NOandNO2)calculatedasNO2 (nitrogendioxide)comingfromcombustionoffuels.Theycancontributetotheacidificationofsoilandwater.NOxemissionsaremeasuredmainlybythemills.WhereNOxisnotmeasured(convertingplants),emissionsarecalculatedfromfuelconsumptionusingtheemissionfactorslistedintheEcoinventdatabaseversion2.1.
non-Controversial origin Virginwoodorwoodfibrewhichhasbeenverifiedashavingalowprobabilityofincludingwoodfromanyofthefollowingcategories,inlinewithfSCandPEfCschemes:
a) Illegallyharvestedwood;b) Woodharvestedinviolationoftraditionalandcivilrights;c) Woodharvestedinforestsinwhichhighconservationvaluesarethreatenedbymanagementactivities;d) Woodharvestedinforestsbeingconvertedfromnaturalandseminaturalforesttoplantationsor
non-forestuse;e) Woodfromforestsinwhichgeneticallymodifiedtressareplanted
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OECD OrganisationforEconomicCo-operationandDevelopment.
Other organic raw materials
Rawmaterialsusedformanufacturingourproductsthatareorganicexcludingfibres,starchorplasticrawmaterialswhicharereportedindividually.Thiscategoryincludesoil,lubricantandorganicadditivessuchascolorantordyes.
PEFC ProgrammefortheEndorsementofforestCertification.PEfCisanindependent,non-governmentalorganisationwhichpromotessustainablymanagedforeststhroughindependentthirdpartycertification.
P (Phosphorous) Totalphosphorousisthesumofphosphorouscompoundsdischargedwiththeprocesswater.
PJ Petajoule,aunitofenergy.1petajoule=1,000terajoules=1015joules
Process water Quantityofwatercontainingorganiccompoundsreleasedtotheenvironment(river,sea)afterinternalwatertreatmentorreleasedtoanexternaltreatmentplant(municipalwatertreatment).Inallcases,levelsofpollutantsreleasedarereportedasoutputsofthecompanyeveninthecaseofoperationsthatsendprocesswatertoexternaltreatment.
Purchased pulp Pulpproducedbythirdpartycompaniesandpurchasedbyourmillstoproducepaperorboard(thepulpsaremainlybleached).
REACH REACHistheRegulationforRegistration,Evaluation,AuthorisationandRestrictionofChemicals.REACHappliestoallchemicals:notonlychemicalsusedinindustrialprocessesbutalsochemicalsinarticlessuchaspaperandpackaging.
Recovered paper Recoveredpaperreferstousedpaperandboardseparatelycollectedandclassifiedforthepurposeofrecyclingforuseasrawmaterialinthemanufactureofnewpaperandpaperboard.
Renewable energy Energycomingfromsourcesthatarenaturallyrenewable(e.g.biomass,hydropower).
Sludge Asolidwastethatisproducedduringwatertreatmentfrombiologicalactivity(mainlyaerobicstage).
Sedex Sedex,theSupplierEthicalDataExchange,isamembershipnot-for-profitorganisationforbusinessescommittedtocontinuousimprovementoftheethicalperformanceoftheirsupplychains.Sedexfocusesonfourpillars:LabourStandards,HealthandSafety,EnvironmentandBusinessIntegrity.
Solid Wastes Wastesareclassifiedasnon-hazardouswastesorhazardouswastesandarereportedseparately.Woodwastesandcorrugatedboardshavingsareexcluded.Allamountsofwastesarereportedinmassasdisposed.
Total non-hazardous wastes
Sumofallsolidnon-hazardouswastesthataregoingtolandfillorarerecoveredorcompriseotherwastes.Eachcategoryofnon-hazardouswastesisdefinedandreported.
Non-hazardous wastes Landfill
Partofthenon-hazardouswastesthataredisposedofineitherinternalorexternallandfillinaccordancewithnationallegislation.
Non-hazardous wastes Recovery
Partofnon-hazardouswastesthatarereusedorrecycledorcompostedorusedinagricultureorincineratedwithenergyrecovery.
Non-hazardous wastes Other
Partofnon-hazardouswastesthatdoesnotbelongtothetwopreviouscategories.Thisincludeswastesincineratedwithoutenergyrecoveryorwastesforwhichthefinaldisposalisuncertain.
Hazardous wastes Residuesofoilsandotherhazardouswastes(buildingwastescontainingasbestos,inkresidues,etc.).
SOx MixofsulphuroxidescalculatedasSO2 comingfromcombustionoffuels.Sulphurdioxidecontributestotheacidificationofsoilandwater.SOxemissionsaremeasuredmainlybythemills.WhereSOxisnotmeasured(convertingplants),emissionsarecalculatedfromfuelconsumptionusingtheemissionfactorslistedintheEcoinventdatabaseversion2.1.
SVHC SubstancesofVeryHighConcernaredefinedinArticle57ofREACHRegulation(EC)No1907/2006andincludesubstanceswhichareCarcinogenic,MutagenicortoxictoReproduction(CMR)orPersistent,BioaccumulativeandToxic(PBT)orveryPersistentandveryBioaccumulative(vPvB).
Testliner Papermanufacturedfromrecycledfibres.
TJ Terajoule,aunitofenergythatgenerallyappliestofuel.1terajoule=1,000gigajoules=1012joules.
Total Suspended Solids TotalSuspendedSolidsreferstothelevelofsmallsolidparticlesreleasedwithprocesswater.
Virgin fibre Pulpobtainedthroughachemicalprocessusedtoremoveligninfromwood.Asaresult,thefibrecanbeusedtoproducepaper.Theligninresidueandotherorganiccompoundsaresubsequentlycollectedandusedintheformationofblackliquor.
WFn WaterfootprintNetwork(WfN)isanon-profitinternationalnetwork.ThemissionoftheWfNistopromotethesustainable,fairandefficientuseoffreshwaterresourcesworldwide.
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