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Full directors report - Mondi

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2.44 million hectares of land, of which<br />

380,000 hectares are plantations in<br />

South Africa and 2.06 million hectares<br />

are natural forests in Russia.<br />

In 2009, the Group employed an<br />

average of 31,000 people.<br />

Restructuring undertaken during the<br />

year in response to challenging<br />

market conditions resulted in the<br />

closure, sale, mothballing or<br />

downscaling of various operations,<br />

which in turn resulted in a decrease in<br />

employee numbers by around 10%.<br />

Our business is highly integrated,<br />

spanning the entire product life<br />

cycle, from the development and<br />

management of forests, to the<br />

production and marketing of a variety<br />

of sustainable paper and packaging<br />

products. Recycling also forms an<br />

integral part of our business. <strong>Mondi</strong><br />

considers the global threats posed<br />

by climate change and ecosystem<br />

degradation to be very serious and<br />

we acknowledge the role that we can<br />

play in counteracting these effects<br />

by reducing our carbon emissions<br />

and promoting the protection of<br />

ecosystems. Operating an efficient<br />

and effective business in a resourceconstrained<br />

world is one of our key<br />

objectives and involves partnerships<br />

with a wide range of stakeholders.<br />

Management approach<br />

Our approach to sustainability is<br />

supported by our broader business<br />

ethics and guided by our over-arching<br />

sustainable development policy. This<br />

in turn, is supported by seven sector<br />

policies on:<br />

• sustainable forestry;<br />

• environment;<br />

• climate change;<br />

• product stewardship;<br />

• corporate citizenship;<br />

• global employment; and<br />

• safety and occupational health.<br />

These policies are reviewed on a<br />

regular basis. They are available in a<br />

downloadable format from the<br />

Group’s website at<br />

www.mondigroup.com/sustainability.<br />

Our Sustainable Development<br />

Management System (SDMS),<br />

comprising policies, standards and<br />

performance requirements, is<br />

integrated within the Group’s core<br />

business processes to ensure that<br />

our commitments are met at every<br />

level. We have put in place the<br />

necessary resources and training to<br />

meet our objectives, and maintain<br />

pro-active, multi-stakeholder<br />

engagement with communities, nongovernmental<br />

organisations (NGOs),<br />

peers and other groups to improve<br />

our understanding of stakeholders’<br />

concerns and address our<br />

All our planted land in<br />

South Africa is FSC<br />

certified and in Russia<br />

we have certified some<br />

1.35 million hectares of<br />

our leased land<br />

environmental and social impacts.<br />

The DLC sustainable development<br />

committee, which guides policy,<br />

reviews performance and monitors<br />

progress made in implementing our<br />

strategy, is chaired by independent<br />

non-executive director, Colin<br />

Matthews. The committee met on six<br />

occasions in 2009, receiving regular<br />

<strong>report</strong>s from executive team<br />

members. Sustainability is also an<br />

agenda item at every meeting of the<br />

<strong>Mondi</strong> Boards.<br />

Our Group-level sustainable<br />

development function provides<br />

strategic guidance on sustainability<br />

issues and policy, compliance,<br />

international best practice and the<br />

integration of sustainability<br />

approaches across the Group. The<br />

function is also responsible for<br />

sustainability <strong>report</strong>ing. Operational<br />

line management is responsible for<br />

the day-to-day management of safety,<br />

health, environment, community<br />

matters, people processes and other<br />

sustainability issues.<br />

We also work with many international<br />

and local stakeholders, including the<br />

World Wide Fund for Nature (WWF) in<br />

Russia and South Africa; Silver Taiga in<br />

Russia; the Wildlife and Environment<br />

Society of South Africa (WESSA) and<br />

For further information please click on<br />

www.mondigroup.com/sustainability<br />

Directors’ <strong>report</strong><br />

Annual <strong>report</strong> and accounts 2009 <strong>Mondi</strong> Group 35

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