Full directors report - Mondi

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Material sustainability risk issues identified in 2009 continued Potential risk Mitigation measures Fatalities, serious injury and illness continued Ensuring performance standards that are well communicated, widely understood and part of daily life Keeping risk register of significant safety risk up to date Working within externally accredited safety management systems such as OHSAS 18001 Benchmarking our practices against recognised good international industry practice Aiming to be the safest company in our industry sector Climate change footprint Continued moderate inherent Deliver specific carbon dioxide reduction goal of 15% over 10 years against 2004 baseline risk as fossil fuel emissions Participate in annual carbon disclosure projects (CDP) with the aim of benchmarking reducing at a slower pace Evaluate opportunities to increase share of biomass in on-site energy generation (2009: 53%) Establish product carbon footprints (using a scientifically acceptable method) Land claims in South Africa Continued moderate inherent Mondi has developed an innovative win-win model and is working constructively with risk for loss of fibre supply Government and communities to develop claimant communities into sustainable forestry enterprises, thereby ensuring continued fibre supply Fire or explosion Continued high inherent risk Safety risks are managed through clear standards, a regular review of our hazard analysis and due to volumes of combustible a risk register of significant safety risks – in 2009 in our control of work and management of materials at plants and change were audited and reviewed warehouses and potential for In forestry, a dedicated fire safety resource and a modernisation of our fire fighting capabilities large wild fires in forestry has taken place Mechanisation of plantation forestry High inherent risk due to Social and environmental risks and challenges are addressed and mitigated on area level on a public perception of the case by case base change, loss of rural support The Food 4 Forests programme provides balanced, nutritious meals for forestry workers with and significant chronic the aim to reduce absenteeism and injuries due to lack of concentration and physical ill-health of current contractors endurance, and improve quality of life in South Africa The Mondi Mkhondo Development Programme offers people access to economic opportunities and social services Public health claims in South Africa Moderate inherent risk owing All Mondi operations comply with local emissions regulations to perceived health effects in The first phase of the odour reduction project in Richards Bay is expected to be completed in surrounding communities 2010 Environmental impact from loss of containment Moderate inherent risk for Ongoing programme of assessments of past disposal activities pulp manufacturing and previous landfill activities Annual report and accounts 2009 Mondi Group 37 Directors’ report
Sustainability review continued Creating economic value As a corporate taxpayer, major employer, investor and purchaser of goods and services, Mondi makes a significant contribution to the economies in which we operate. Key economic parameters for the year under review include: • E862 million relating to employees, including base wages, other related costs and any restructuring costs where applicable; • E3,861 million paid to suppliers, for goods and services; • Capital expenditure, including the purchase of intangible assets, of E522 million; • E190 million paid in taxes and related payments to host countries, including company tax, employee tax, royalties, import and export duties, transfer and sale duties; and • E48 million paid to shareholders, including minority interests, by way of dividends. Mondi – a fair and responsible employer Mondi is committed to the development and well-being of its employees and contractors. The Group’s health and safety policies and standards are fundamental to this commitment. Mondi’s goal is to achieve ‘Zero Harm’ in the workplace, 38 Annual report and accounts 2009 Mondi Group believing that an injury-free workplace is not only achievable but is imperative to the ongoing success of our business. The Group therefore undertakes significant initiatives on a continuing basis to achieve further improvements in safety and occupational health performance. The main focus of the Group’s diversity initiatives is in South Africa. Mondi is committed to meeting the requirements of the Broad-Based Black Economic Empowerment (BBBEE) Act’s charter and has taken active steps to this end. Applications for employment by disabled persons are fully considered. In the event of employees becoming disabled, every effort is made to ensure that their employment with the Group continues and that appropriate training is arranged. It is the policy of the Group that the training, career development and promotion of disabled persons should, as far as possible, be consistent with that of other employees. Mondi also places a strong emphasis on the training and development of employees and on employee communication, involvement, participation and respect for human rights. We invested some 2.24 million hours (2008: 1.55 million) on training and development during the year. In South Africa in particular, we focused on the recruitment, training, development and retention of previously disadvantaged South Africans and women. Reviews of the Group’s organisational structure and talent management processes have been conducted to maximise effectiveness and efficiency. The Group places considerable value on employee involvement and we have continued to keep our people informed about issues that impact them as employees and factors that affect the performance of the Group. This is achieved through formal and informal meetings and through a range of other internal communication channels, including publications and electronic communications. Employee representatives are consulted regularly on the range of matters affecting their current and future interests. In the UK, the Group operates a Share Incentive Plan and a Sharesave plan. We subscribe to the human rights principles advocated by the International Labour Organization (ILO),
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Full directors report - Mondi

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