SUSTAINABILITY REPORT 2019

Delivering Solutions by Nature CONTENTS: Circular economy and Welcome to our 2019 value creation Page 2 sustainability report 01 Innovation by nature Page 6

02 We are a values-based business, invested in the Stronger by nature future and committed to doing good by both people and place. Page 14 We design and deliver packaging Our values drive us forward on a sustainable path solutions to protect to create value for our people, the partners we work our customers’ 03 products, so they Future focused with, the customers we supply and the communities arrive as intended. by nature and environments in which we operate. Page 24 This sustainability report is built around the four key values that enable us to be a stable, successful

04 business committed to delivering solutions by nature: Our market pulp Partnership by nature innovation, built on strength, future focused and is made from Page 32 the long, high- trusted partners. density fibres of radiata pine. 2019 results Page 44 Oji Fibre Solutions at a glance At Oji Fibre Solutions, we pride Our products are used every day in It is because of the products WE ARE A SPECIALIST IN: ourselves on our commitment households and businesses across we make that the majority of to be a future focused company. New Zealand and Australia and in Oji Fibre Solutions’ manufacturing 30+ countries around the world. operations have been considered MARKET PULP Being forward-looking also means essential during the response We produce kraft market pulps our behaviour must be sustainable. They include: to the COVID-19 pandemic. ideal for use in boards, tissues and This translates to our day-to-day • cardboard boxes used specialty products. activities: using our knowledge, in supermarkets to keep our expertise, and our passion, we produce fresh CONTAINERBOARD harness the strength of sustainably We produce kraft and recycled • paper bags or boxes for managed radiata pine plantations containerboards ideal for conversion product deliveries into packaging products. and recycled paper to deliver solutions by nature. • products such as coffee filters, tissues, and nappies that contain PACKAGING We are a business built on natural, We provide smart packaging solutions wood pulp renewable and low-carbon resources. such as cardboard boxes, multi-wall • cellulose fibre-reinforced cement paper bags, specialty boards and Our 1,835 people and our contractors boards used in buildings paper cups. apply their skills and experience to produce quality kraft pulp, paper • pine perfume bases used PAPER RECYCLING and fibre packaging products. in disinfectant Fullcircle, our paper recovery service, collects waste paper from across • chemicals used in water treatment New Zealand for transformation plants or swimming pools. into new paper products at our mills.

LOGISTICS Lodestar, our integrated logistics service, provides shipping and domestic transport solutions to deliver Oji Fibre Solutions’ and external customers’ products to global markets. Sustainability Report 2019 1 341,911 GJ 1.64 9 Oji Fibre Solutions’ generated total injury rate manufacturing (6% reduction sites FSC® & on 2018) PEFC™ Chain of Custody circular economy and certified3 5+ million 30+ value creation in 2019 seedlings planted number of since 2007 markets in which we are operational

2019 INPUTS: 2019 OUTPUTS: OUTCOMES

Our values drive us forward on a sustainable path 3,485,451t 559,903t to create long-term value for our people, the partners of virgin wood fibre of market pulp we work with, the customers we supply, and the (logs and chips) communities and environments in which we operate. t t 376,490 Built on 228,400 of containerboard Innovation of paper products that Strength have been produced internally or purchased externally1 211,023t of packaging products Future Trusted 191,884t Focused Partner of recovered fibre 34,531t t of chemicals 7, 295 and by-products Our most direct contribution to the United Nations of purchased Sustainable Development Goals is to: market pulp2 53% 53,692Ml diversion rate of wastes of water from landfill

78.8% tCO -e/t renewable energy 0.279 2 emission intensity 73.4% from biomass 5.4% 3 from geothermal steam packaging awards 1,835 employees

We start with Residuals of the We design and deliver wood residuals digesting process are packaging solutions to from sustainably put to use as biofuel protect our customers’ managed forests. products, so they arrive Forest Wood chip Pulp Paper Corrugator Box Customer as intended. 1 Paper products include internally produced and We make pulp from externally purchased paper, containerboard, radiata pine wrapping and cores. Recycling 2 All externally purchased market pulp is FSC® certified. Recovery boiler and evaporator 3 Certified sites as at mid-2020. 2 Oji Fibre Solutions Sustainability Report 2019 3 From From our CEO our Chairman

The groundwork laid over the last These certifications provide a third As a solutions focused company, These investments are coupled two years by Oji Fibre Solutions party endorsement that the forests the business is always seeking new with equally important but smaller has put the company in a good where our raw products come ways to strengthen its position as a scale investments to modernise position to manage the tightened from and the supply chain to the supply partner to its customer base. packaging operations across the international pulp and paper market customer is sustainably managed. With the backing of Oji Holdings business and to deliver safety, in 2019, and the impacts of the As a result, our customers and Corporation, the parent company of environmental and efficiency global COVID-19 pandemic. in turn their consumers can take Oji Fibre Solutions, we have invested improvements. We continue Over this period, more so than comfort from this additional layer in the business to uplift capacity to look for further opportunities ever, our vertical integration is a of assurance. across the network of facilities to serve the Australian and New Zealand markets. core strength enabling the business In 2019, our ongoing focus on within New Zealand and Australia. to adapt and change in response to health and safety delivered good In 2019, Oji Fibre Solutions In 2019, in conjunction with various challenging external circumstances, results. The Safety Case required announced plans to develop a in-mill improvements to reduce while continuing to deliver for under New Zealand legislation for $100+ million greenfield packaging water use at Kinleith Mill, the our customers. While there are Kinleith Mill was accepted with facility in Christchurch. This new site business started the process of many examples in this report of no conditions. Completing the will be the business’s South Island planning for and consulting with how we do this, I am particularly transformation of Tasman Mill in hub delivering improved product the community about a new waste proud of the business’s response the third quarter of 2019 reduced quality, transport efficiencies water treatment plant at the mill. Dr Jon Ryder to the changing demands of the the amount of certain chemicals Hiroyuki Isono and safety and environmental When completed the project will primary produce season. We strive held on-site, resulting in the safety allow for wastewater from the mill Chief Executive Officer (CEO) Director and Chairman benefits. Once completed in 2021, to bring the skills and talents of classification of the mill being the business will be even better to be treated to a standard that Oji Fibre Solutions Oji Fibre Solutions our relationship managers and our significantly improved. positioned to partner the South meets international best practice. integrated supply chain together Transforming the Tasman Mill Island primary sector. As part of Oji Holdings’ global to deliver on time, every time. Director of the Board has also delivered environmental Oji Holdings Corporation This development adds to the network, Oji Fibre Solutions can I am incredibly proud of the way in improvements. In 2019, we achieved significant capital investments in leverage its scale to better manage which my team of 1,835 employees a 20% reduction in greenhouse the business over the last five years. today, while focusing on the future has responded, dug deep and gas emission intensity at the These include the transformation and investing for long-term success. partnered with our customers mill compared to 2018 results. of Tasman Mill completed in 2019, to ensure continuity of supply. By eliminating coal and increasing and investments to grow Oji Fibre In 2019, our stakeholders continued the use of geothermal steam, 89% Solutions' presence in the Australian' to be interested in the opportunities of the mill’s energy requirements market through our two new “We are proud to be of the bio-circular economy to are now met by renewable sources. “This year, packaging facilities of Cardboard part of the bio-circular deliver renewable and recyclable Another benefit was achieving our Oji Fibre Solutions Carton Solutions and the 5 Green alternatives to fossil fuel based pristine river clarity target mid-way Star rated facility at Yatala. economy delivering products. We continue to work through 2019, sixteen years ahead has taken several of the regulatory schedule. With the addition of the Yatala solutions by nature.” with customers to find solutions strides forward on its site, Oji Fibre Solutions is better manufactured from renewable and Our values, integrated supply sustainability journey.” able to service the Queensland sustainably sourced wood fibre. chain and dedicated teams across primary sector. Recognising these As a further demonstration of the business continue to provide opportunities, the business is our commitment to responsible strong foundations on which we continuing to invest in the facility sourcing, we extended PEFC™ can deliver solutions by nature and and to recruit additional professional and FSC® certification to all to face the future with optimism. and production staff to the site. our mill operations in 2019 and over the course of 2020 will be certifying all our facilities.

4 Oji Fibre Solutions Sustainability Report 2019 5 At Oji Fibre Solutions we are investing to be more Delivering a greenfields efficient and to benefit our customers, our employees packaging facility 01 and the communities in which we are located. in Christchurch. Innovation by nature Innovation is an important part of how we are delivering solutions by nature. We are natural problem solvers, and by thinking in new ways and striving to improve, we are building a more sustainable business.

We are always seeking to raise the standard of our products and services, and to ensure the success of our customers’ brands.

6 Oji Fibre Solutions Sustainability Report 2019 7 $63m $70m $30m transformation new box plant in Yatala, hygiene hall Investing in a of the Tasman Mill, Queensland, formally upgraded at Paper completed in 2019 opened in 2018 Bag, Auckland, completed in 2016

sustainable future $100m+ $100m+ $20m new box plant in new wastewater new rotary die-cutter Christchurch to be treatment plant at and flexo-folder gluer opened in 2021 Kinleith Mill in 2021–2023 at Yatala in 2021

Delivering a $100 million+ We invited original equipment 1 3 Other ways we are investing Numerous smaller-scale investments manufacturers from around the in a sustainable future modernise our operations and drive Greenfields Packaging globe to work with us to ensure our innovation potential, particularly Investment in the new Christchurch Facility in Christchurch, we have the most modern and at our packaging facilities. Notable packaging facility follows several safe equipment available. The new technology investments in 2019 New Zealand. large-scale investments in machines will have finer product have included: As a solutions focused company, New Zealand and Australia over tolerances, deliver better print we are always looking at new ways the last four years. • a state-of-the-art rotary quality, and will be more efficient. die-cutter and new strapping we can support our customers By investing in our sites and our We have made decisions about line was installed at Packaging as we strive to be more efficient processes we continue to improve the equipment from our current Northern in Auckland, providing and sustainable. our performance and to create Christchurch facility that is increased safety, efficiency and In November 2019, we announced shared value. Other recent appropriate to transfer to the product quality our investment decision to purchase investments include: new site. For example, this seven hectares in Christchurch for a • a new laminator was introduced includes a flexo-folder gluer • $63m transformation of the purpose-built, corrugated-box plant. at our Cardboard Carton that will be fitted with the same Tasman Mill, completed in 2019 Solutions facility in Melbourne. When completed in 2021, this site state-of-the-art material handling • $70m new box plant in Yatala, This new and modern machine will be the South Island hub for equipment as the new machines. Queensland, formally opened is a good fit for our flatbed die- Oji Fibre Solutions’ operations and We are confident that this in 2018 cutter. With better registration will include additional storage and 2 4 investment will benefit our and the ability to run at higher loading facilities. It will produce • Purchase of Cardboard Carton customers, our employees speeds than previously, the result sustainable packaging products for Solutions speciality packaging and the community. is more efficient production with the South Island’s primary sector. plant in Melbourne in 2017 less waste The site layout and buildings are • $30m upgrade of the hygiene hall • a new steam boiler was installed being designed to provide for at the Paper Bag plant, Auckland at our Lansvale packaging facility safer, more efficient operations completed in 2016. in Queensland. This more efficient and effective maintenance. In 2019, we also commenced and more sustainable boiler is conversations with the local delivering energy, water, CO2-e community about our proposed and safety benefits “The new Christchurch facility will replace multi-million dollar upgrade to the Kinleith Mill wastewater • a skywalk with prepress storage the existing Shands Road operation with treatment system. was completed at the Yatala packaging facility in Queensland, a purpose-built facility with state-of-the-art to provide for easy circulation box-making equipment. By investing in the and more efficient storage. best available equipment, we will improve We are continuing to invest in our Yatala facility. In 2021, we will be product quality and productivity, deliver enhancing it with a new rotary environmental improvements and provide die-cutter and a flexo-folder gluer. a safer operation than is possible in the current facility.” Grant Fitzgibbon Chief Operating Officer, Packaging 1 The Fosber S-Line Corrugator is a 3 The Bahmüller Turbox BTX 1700 Specialty 370m/min, 2.5m wide, double wall line Gluer with PowerPacker is a 250m/min with dual cut-off knives and fitted with machine fitted with a MUK robotic the revolutionary Link M3 splicers load-building station 2 The work-in-progress and other conveyor 4 New hygiene hall at Oji Fibre Solutions' lines are automated and fitted with full Paper Bag plant in Auckland load-tracking systems

8 Oji Fibre Solutions Sustainability Report 2019 9 Overcoming Innovating to complexity always deliver

Our award-winning retail- RJ’s Liquorice approached For retailers, preparing the display Being agile and Oji Fibre Solutions seeking to is easy. They simply take the pallet ready tray overcomes overcome a key challenge of retail- into store and once the stretch innovative in our traditional complexity ready packaging: how to deliver wrap is removed no further set processes enables us to and weaknesses. structural reliability and simple up is required. deliver when it counts. With an eye for assembly while ensuring shoppers creativity and In store, multiple layers of the Oji Fibre Solutions is proud to innovation, our have maximum access to the product product can be displayed at once. be a trusted partner supplying in-house design when it is presented in-store. Shoppers can access the product teams work with packaging to many of the fruit our customers The box we designed for RJ’s through the open front and top packhouses in New Zealand to meet their Liquorice has an open top and of the box. and Australia. individual needs open front, and is designed to and to showcase Our team’s unique design approach At the height of the fruit-picking handle confectionary exported their brand was awarded a bronze medal in season, our customers rely on us while ensuring from New Zealand to the United the food category of the 2019 to work alongside them, changing our packaging Kingdom. The added advantage of Australasian Packaging and Design direction when needed to deliver protects their the design is its ability to be loaded product. Awards (PIDA). on time, every time. All links in onto pallets to be delivered straight the chain — growers, packhouses, In early 2020 into supermarkets for display. PIDA recognition propelled our we took this a design to a truly international level, packaging providers and brand step further, with Many product boxes are designed securing its entry to the WorldStar owners — work together to our design team with double-strength corners that are Packaging Awards, the pre-eminent supply the freshest produce having some fun developing difficult to put together because the international award in packaging. in prime condition. outer flaps are folded up and over the tables for the The packhouses operate at speed Zespri Momentum inner flaps. Oji Fibre Solutions’ technical In 2020, the RJ’s retail-ready tray and at scale. During the 16-week conference. innovation team overcame this was announced as a winner in the kiwifruit season in New Zealand — challenge by creating a jigsaw shape food category. from early March to late May on the edges of the inner flaps; they — larger facilities pack around also altered the folding sequence to 3,200 trays of kiwifruit per hour. make the box easier to assemble. This The season is complex, and design innovation also made adding customer needs can change the stacking lugs straightforward. daily as crops ripen and the “As NZ’s largest packer of organic kiwifruit, weather changes. sustainable packaging is very important Our strengths support our to us. Heading into the season we were “I am really thrilled customers through the busy season: impressed with Oji Fibre Solutions’ ability for RJ's and my team paper production, packaging manufacture and supply, on-site to offer a truly local packaging solution. that our innovative tray making and quality service. We have found Oji Fibre Solutions to be a structural design At some of the larger packhouses we deliver die-cut blanks to save thoroughly reliable supplier through a very has been recognised space and employ local tray making challenging season and have enjoyed their by PIDA and the contractors to erect trays on-site. In these cases, an Oji Fibre Solutions’ customer focus and can-do attitude.” WorldStar Packaging local manager is also on-site maintaining the mobile erecting Mark Gardiner Awards.” Managing Director, machines, training our contractors Whitehall Fruitpackers Pete Cahill to assemble the trays safely and Creative Design and effectively, and integrating our team Innovation Manager seamlessly into the packhouse’s health and safety protocols. Photo: Apoorv Mehrotra, of Oji Fibre Solutions with Dr Carol Kilcullen-Lawrence, the former National President of the Australian Institute of Packaging, at the PIDA Awards

10 Oji Fibre Solutions Sustainability Report 2019 11 100% 47% 100% 100% natural New Zealand recycled recyclable and locally sourced made material domestically

How seeking a locally WOOP is a meal-delivery company A successful design solution that supplies semi-prepared meal-kits Just six weeks after our initial sourced and 100% natural to homes across New Zealand. The conversation with WOOP, our solution reinforces the company focuses on locally sourced customer had the confidence in our and 100% natural ingredients for circular economy. design to sign it off. The first orders health-conscious, ethical Kiwi's. were delivered in August 2019 and When WOOP reviewed its packaging, since then Oji Fibre Solutions has it looked for a sustainable outer- become the sole box supplier packaging solution. for WOOP. WOOP’s requirement for The final box is easy to form, and is design excellence cut from one sheet of containerboard “ The team at with friction tabs on the side walls The customer’s key criteria were Oji Fibre Solutions to ensure the box locks together to protect and keep WOOP’s well. It has been designed with were solution focused fresh produce chilled, to be 100% finger holes allowing final users to recyclable, and to have great easily flatten the box for disposal. and able to deliver a visual appeal. Our relationship now extends to design that not only Our design engineers worked with Fullcircle collecting end-of-life met the technical WOOP to understand the design boxes from WOOP to be recycled requirements and finalised the at our Penrose Mill. requirements but containerboard grades to be used in the box construction. The linerboard Together we are contributing to provided a uniquely provided by Oji Fibre Solutions is New Zealand’s circular economy. natural and made in New Zealand. WOOP design.” Design features In this design we use a combination William Lockie • 100% New Zealand made General Manager, of the HIGOLD™ kraft linerboard we • made from 47% recycled material Operations & Food Evangelist, manufacture at our Kinleith Mill and WOOP the ECOFLEX™ recycled medium • great visual appeal we manufacture at our Penrose Mill. The box includes 47% recycled • recyclable domestically material — a fact that is proudly • aligns with WOOP’s philosophy. displayed on the box. We collaborated with WOOP on field trials to fine-tune the design and to craft a box that hits the high notes for structural integrity, aesthetic appeal, costs and sustainability.

12 Oji Fibre Solutions Sustainability Report 2019 13 By extending our FSC® and PEFC™ certification 9 manufacturing sites are FSC® we can now offer our pulp, paper and packaging and PEFC™ customers the benefits of independently Chain of Custody 02 certified product. certified. Stronger by nature Continuing to build on our strong foundations is vital in ensuring we can continue to deliver solutions by nature. It’s about adding to the strength and sustainability of every part of our business, from source and product to process and people.

14 Oji Fibre Solutions Sustainability Report 2019 15 The Programme for the Endorsement of Forest Certification (PEFC™) and Commitment to the Forest Stewardship Council (FSC®) are recognised and respected around the world in the traceability and promotion of responsible forest sustainable fibre management. These standards are independently audited. For more information visit: PEFC.org and ic.FSC.org/en

Extending Chain of years and Programme for the systems function and collaborative What is Chain of Custody Endorsement of Forest Certification planning and implementation C FM certification? N Custody (CoC) E R O PEFC™ CoC certified for four years. sessions were held with site managers, T I This certification is voluntary and I F I AT certification to all warehouse managers, planners, C Since making the decision in early authenticates that a wood fibre SUSTAINABLE customer services and IT teams. FOREST our manufacturing sites. 2019 to extend certification from product has been manufactured in a RESOURCES Our commitment to sustainability these mills to our other sites, nine We are proud of the collaboration by manner that supports a broad range means we are dedicated to using of our manufacturing facilities are our teams from across the business of positive social, environmental only sustainable wood fibre to make now PEFC™ and FSC® CoC certified. to extend our certification across all and economic outcomes. manufacturing sites and offer our our products. December 2019 saw Oji Fibre Solutions Chain of custody refers to the customers the option to purchase In an international market where successfully expand PEFC™ and verification and tracking processes certified products. the legality of logging and the FSC® multi-site CoC certification which guarantee that a fibre issues of deforestation are a from the Kinleith and Tasman Mills Our goal is to certify our four product and its components have C CoC E N R O growing concern, there is increasing to include the Penrose Mill, and on specialty packaging facilities in maintained PEFC™ and FSC® T I I F I C AT demand for fibre-based products downstream to our Yatala, Lansvale the second half of 2020. At that certification standards at each to be independently certified and Noble Park packaging facilities point all our manufacturing sites stage, or each ‘chain-link’, to international standards. We in Australia. Our New Zealand will be CoC certified. of the journey from forest appreciate this certification provides packaging sites of Northern, Central By extending COC certification to end-consumer. our customers, and in turn their and Southern have been quickly to our packaging facilities, from In this way, certification provides consumers confidence that the raw added to our multi-site certification. mid-2020 we will be in a position for the fibre to be tracked from wood fibre inputs in their products Waste paper Mill These manufacturing facilities to sell certified packaging products, the point of harvest through to Wood chip, recovered paper, come from well-managed, legally have been audited for compliance as well as the certified pulp and the finished product delivered pulp, paper products harvested and sustainable forests. to PEFC™ and FSC® standards. To paper products we have been to our customers. Kinleith and Tasman Mills have been ensure the process ran smoothly, selling for many years. Forest Stewardship Council FSC® in preparation for the audit each site CoC certified for more than ten was trained on how the certification

C CoC 1 E N R O The Benefits of CoC Certification T I I F I C AT Social Environmental Economic • Safeguarding the social • Contributing to improved • Access to a growing market values of forests management of the for certified products • Improving working conditions, world’s forests • Third-party/independent health and safety requirements • Preservation of ecosystem verification of management Independently certified Plant for workers services practices and product origin products Corrugated containers, • Providing jobs, capacity • Contribution to water • Risk management through supply speciality boards building and training stewardship, clean air and chain transparency from forest • Community engagement carbon sequestration. to the product. and well-being.

C CoC E N R O “Achieving PEFC and FSC Chain of Custody T I I F I C AT certification across our manufacturing sites enables us to provide our customers with enhanced product assurances and to further

support their own sustainability values.” Customers, distribution, Sales, management Philip Millichamp consumers and logistics Group Manager, Environment & External Relations 1 Adapted from the WBCSD 2019 Forest Sector SGD Roadmap. 16 Oji Fibre Solutions Sustainability Report 2019 17 Adding value to sustainable fibre

CASCADING USE The long, high-density fibres The FSC® approved Centralised OF FOREST RESOURCES Virgin wood for our pulp in radiata pine grown in these National Risk Assessment for and paper mills comes plantations are sought after for New Zealand evaluates the risk from sustainably managed their strength qualities in a variety of sourcing wood fibre from R of end uses. unacceptable sources as low risk d ou exotic plantation forests oo SUSTAINABLY nd across the above five categories. r w MANAGED FOREST lo in the central North Island Our fibre procurement strategy te gs Nevertheless, we obtain as much e f is focused on pulp logs and chips m o TM ia r of New Zealand. wood as is practicable from PEFC d ti that would otherwise have limited ll m a b and/or FSC® certified forests, with e value. These wood supplies consist m r the balance meeting certification S of residuals from other parts of the

forest industry including lower- input requirements for mixed or controlled sources. value industrial logs, toplogs not suitable for use by a sawmill Raw timber The role of virgin fibre and chips sourced from sawmills. products Producing an effective paper We also use the lower quality package relies on a determination F residuals from sawmilling, forestry of the amount of recycled and activities and our own chipping and virgin fibre that is needed for debarking operations, which are not Sawmill optimal structural integrity. E suitable for pulp, as biomass fuel. residue The different characteristics of In this way, our operations promote paper are achieved in a number the efficient and complete use of of ways, including by varying renewable forestry resources. Timber the amount and type of recycled products Responsible Wood paper used. C Sourcing Policy For example, demand for paper products for packaging dairy, Our Responsible Wood Sourcing horticulture, meat and other food Policy adheres to the PEFC™ D products is weighted towards and FSC® goal of avoiding the higher virgin fibre and lower recycled procurement of wood fibre from content paper to withstand cool unacceptable sources, including store environments. any wood harvested: Typically, the fibres that make • illegally up what we know as ‘paper’ can • in violation of traditional Wood chip Processed timber C be recycled five to eight times. products and human rights Eventually they deteriorate to a point where they can no longer B • in forests in which high conservation values are be recycled, at which point many threatened by management of the fibres are ‘biodegraded’ A activities though waste systems into carbon dioxide and water. • in forests being converted from natural forest plantations or The addition of virgin fibre to non-forest use the total volume of paper products in circulation at any one time A BARK Used for bio-energy • from forests in which genetically maintains the quality of the SAWLOG 1 Used for timber products, modified trees are planted. B building furniture products being manufactured and the quality of the paper making C SLABWOOD Used for pulp and recycling processes overall. SAWLOG 2 Used for timber products, D building furniture Pulp By-products Woody E TOPLOG 1 Used for pulp and timber products and chemicals biomass fuel F TOPLOG 2 Used for pulp

18 Oji Fibre Solutions Sustainability Report 2019 19 21 25% 60% Upskilling to new graduates of managers of employees grow our strong and apprentices are female are waged and resilient workforce

Helping our people reach Initially focused on health and Our employees safety, operational effectiveness • 21 new graduates and apprentices their potential. and required compliance, we have Our 1,835 people are integral to our extended the myOjiFS content • 203 permanent new starters productivity and ongoing ability to to include several professional • 4.6% voluntary turnover meet our customers’ needs on time, development and leadership every time. modules. There are also dedicated • 17.5% of employees are female Our employees are hard-working, areas within the system to support • 25% of managers are female communities of practice among skilled and passionate about • 40% of employees are salaried what they do. Our commitment our professionals. • 60% of employees are waged. is to continue to support their We also support our employees professional development and with face-to-face training when Supporting the well-being well-being, and to ensure they work that is required, such as for of our employees in a safe and healthy environment. practical skills acquisition and initial qualification completion. Oji Fibre Solutions supports Through our in-house learning employees to be the best they management system, myOjiFS, can be, in their personal lives and we provide our employees with job at work. Our people are what make relevant learning opportunities and our organisation successful, and enable effective scheduling, delivery being happy and healthy in the and refreshing of instruction and workplace contributes to greater training in an engaging learning productivity and innovation. environment. Our aim for myOjiFS is to support our people to Through our well-being programme 2019 WHERE WEsystematically2019 WORK WHERE workWE WORK through their 2019 OUR AGE PROFILE2019 OUR AGE PROFILE “Flourish” we help our people to assigned learning modules at a time be ready and fit for work. Flourish’s that works for them. Employees can on-line resources and team select additional material of interest challenges provide strategies, tools to them. and support to enhance mental and physical well-being. In 2019, a total of 1,520 challenges were 2019 WHERE WE WORK 2019 2019WHERE OUR WE AGE WORK PROFILE 2019 OUR AGE PROFILE completed by our people, which is 2019: WHERE WE WORK 2019: OUR AGE PROFILE an increase of 80% on the number completed in 2018. We also make Flourish available to our employees’ 8% 2019 8%ENERGY CONSUMPTION USING RENEWABLE11.0% 11.0% immediate family. ENERGY TO MITIGATE GHG EMISSION pg23 2019 ENERGY CONSUMPTION USING RENEWABLE A confidential and independent ENERGY2019 ENERGYTO MITIGATE CONSUMPTION GHG EMISSION USING pg23 RENEWABLE 2019 ENERGY CONSUMPTION USING RENEWABLEENERGY TO MITIGATE GHG EMISSION pg23 counselling service is available 2019 ENERGY44% CONSUMPTION44% USING RENEWABLE for any employee to access in ENERGY31% TO MITIGATE31% GHG EMISSION pg23 43% 43% ENERGY TO MITIGATE GHG EMISSION pg23 person, on-line or by phone. Tools and advice to support well-being is 46% 46% Countries we work in 8% 8% 11.0% 11.0% also available through this service, New Zealand 1,514 people as is career, personal legal and 17% 17% financial advice. Australia 313 people 44% 44% 31% 43%31% 43% China, Hong Kong, Malaysia 8 people 5.4% 46% 46% Pulp and Packaging5.4% Under 30 30 to 50 Paper Australia years5.4% old years old 5.4% 5.4% 17% Packaging 15.8%Corporate Over5.4%17% 50 New5.4% Zealand years old 5.4% 5.4% 15.8% 5.4% 15.8% 15.8% 15.8% 73.4% Oji Fibre Solutions Sustainability Report 2019 20 73.4% 21 73.4% 73.4% 73.4% Focus on Key health and health & safety safety indicators

Our health and safety improvements, maintenance, We also sought in 2019 to roll Our quality and safety TARGET TARGET operations and emergency planning. out some of the lessons from the 2 aim is simple: to send WorkSafe’s acceptance means they process safety improvements at systems are applied Zero product safety incidents Zero serious injuries everyone safely home are satisfied with the progress we our mills to our other manufacturing across all aspects of This year we have achieved our Unfortunately one of our team every day. have made and that we can operate sites. This is an example of the our manufacturing, from target of zero product incidents. members experienced a serious a Major Hazard Facility safely. ongoing collaboration amongst injury to their hand while at work To help achieve this aim, we sourcing raw materials health and safety professionals TARGET this year. Additional preventative are constantly looking at how Since the Safety Case was to share knowledge and learnings to manufacture to measures have been implemented we can improve our health and approved, we have launched a across our business units. 50% reduction in Lost-time to manage the manual handling safety systems and processes. dedicated website to provide the product delivery. 3 Injury Rate (LTIR) and 50% risk that resulted in the injury. One notable achievement in 2019 communities at and surrounding Underpinning the work we have reduction in Total Injury Rate Following a period of recuperation was the introduction of an updated Kinleith Mill with up to date done on systems and processes are TIR & LTIR Results 4 (TIR) from 2017 levels before the injured person has returned safety management system for information on any issues that our people. All our people have an the end of 2020 impact public health and safety. important role in managing risks to full-time work. the company, which drew on the In 2019, our key indicators of Through this website we can quickly and workplace health and safety. good foundations it had in place, LTIR and TIR improved again. get messages out to the emergency Their strong and positive culture is and has enhanced this to reflect These results compare very response services and the supported by five simple mantras. the specific environment we favourably with sector averages. operate in and current legislative wider community. and best practice expectations. In recent years we have had a particular focus on process safety. TIR & LTIR RESULTS We are proud to have made Don’t walk changes at the Tasman Mill to past a 3.0 reduce the amounts of certain problem potentially hazardous chemicals 2.5 held on-site, with the result that 2.0 the mill is no longer classified as an Upper Tier, Major Hazard 1.5 Facility1. This is official recognition Safety from WorkSafe under the relevant starts Think safe; 1.0 regulations that the mill has been and ends act safer 0.5 made safer by these changes. with me Good health and We were also very pleased that the safety performance 0 Safety Case for our Kinleith Mill was is simply part 2015 2018 2019 accepted by WorkSafe NZ in 2019 with no conditions. A Safety Case of what we do. is a requirement for Upper Tier Major Targeting 50% reduction Total Injury Rate from 2017 levels by 2020 YE Update for 2020: Keeping essential workers safe during Covid-19 Hazard Facilities and is essentially Targeting 50% reduction Lost-Time Rate from 2017 levels by 2020 YE the written demonstration of our The business moved quickly to put safety management systems. For in place additional health and safety measures to help us to protect our Kinleith Mill, the approved Safety Make the Take 5 to workers and to reduce the risk of Case represents real investments safe way the spread of Covid-19. Site protocols in safety training, process the right stay alive during this time included physical way distancing, increased cleaning, 2 A product safety incident occurs where a defective health screening and contact-tracing product causes an injury to a person or material damage to property; leads to an end-consumer measures. As part of our well-being recall because it could cause such injury or programme, we provided advice damage; or is the subject of a formal safety and guidance to people on stress notification to the authorities. management and reminded them 3 Frequency rate of accidents resulting in lost of the counselling services available work time = (Lost-time injuries/total work time) * 200,000. during this uncertain time. 4 Frequency rate of accidents resulting in injury = (Lost-time injuries + restricted work injuries 1 Major Hazard Facilities are defined by New Zealand + medically treated injuries/total work time) * Health and Safety legislation 200,000.

22 Oji Fibre Solutions Sustainability Report 2019 23 Oji Fibre Solutions operates at scale to recover Fullcircle recovers used papers and recycle paper. We are using our knowledge from across and experience to help our customers and the New Zealand. community achieve greater circularity, renewability 03 and a sustainable future. Future focused by nature In a changing world, we remain focused on what will sustain our future. Adapting to change, progressing towards our goals and acting responsibly means we can deliver solutions by nature long into the future.

We look towards the future, and welcome change. Sustainability is core to our operations.

24 Oji Fibre Solutions Sustainability Report 2019 25 267,140t 14 of recovered recovered paper fibre collected baling sites Generating by Fullcircle nationwide in New Zealand new value 2 191,884t Materials of recovered fibre Recovery Facilities remanufactured in Wellington by our mills and Dunedin

How we are generating In 2019, work commenced to extend the FSC® and PEFC™ Chain of new value from recovered Custody (CoC) certifications held and recycled fibre. by Oji Fibre Solutions to include The emergence of a circular Oji Fibre Solutions is the only Penrose Mill. The mill is now CoC bio-economy business in New Zealand operating certified for recycled fibre and is The dual concept of the circular at scale to recover used paper and selling 100% recycled FSC® certified paper to a variety of customers bio-economy brings together cardboard to recycle it into new the principles of efficiency and packaging products. in New Zealand and overseas. closed loop usage of resources Kinleith Mill also reprocesses to achieve circularity, whereby Our paper recovery service, Fullcircle, bio-industries can provide recovered paper, including clippings is a key link in the integrated solutions consumers with products made we offer customers. from our packaging sites and from natural, renewable resources. cardboard recovered by Fullcircle. Fullcircle closes the loop in our Wood fibre products are renewable, This is regularly used as an input reusable and require less energy to circular economy by working closely to various paper grades recycle than many other materials. with communities and businesses manufactured at the mill. In addition, trees absorb carbon across New Zealand to recover dioxide (CO ) from the atmosphere By closing the used paper 2 reusable paper, cardboard and as they grow and together with containerboards. Once collected the resource loop we are well placed wood based products store carbon. to support our paper and packaging recovered material is baled at one After harvest, CO2 continues to customers’ requests for quality of our 14 baling plants prior to being be stored in the wood products, products made from renewable including paper. transported to our Kinleith and resources with optimised recycled Penrose paper mills to be recycled. In practice, the circular bio-economy content and to deliver an end-of-life is about driving the move from In the cities of Dunedin and recycling solution. fossil-based materials towards Wellington, Fullcircle operates renewable alternatives and more We are also proud to underpin sustainable consumption. Materials Recovery Facilities, where the country’s ability to sustainably we sort household recyclables Oji Fibre Solutions is proud to manage used paper and cardboard harness the strength of natural, such as cardboard, glass and by turning these resources into renewable resources and to plastics. We recycle the recovered new products. recycle these throughout our paper and cardboard and work value chain. with other recyclers to close the Changes in the recycling loop for non-fibre recyclables. market continued In 2019, Fullcircle collected to challenge in 2019 267,140 tonnes of recovered paper Used paper and cardboard that could Similarly, the New Zealand and The growing concern around some Our four decades of knowledge and cardboard. 191,884 tonnes was not be recycled domestically by Australia Governments have types of waste is an opportunity and experience in recovering, remanufactured into paper products Oji Fibre Solutions or other local introduced initiatives to promote to promote the benefits of recycling and manufacturing “Consumers’ awareness at our Penrose and Kinleith mills recyclers has traditionally been recycling and find solutions the bio-circular economy of paper packaging, is being of sustainability has and a small amount was used exported to be recycled internationally. for recyclable material collected in and paper-based products. applied to help the community by other local manufacturers. and our customers advance really helped highlight Prior to 2018, China was the largest excess of domestic recycling capacity. Fullcircle has been assisting the In total, 72% of the fibre collected their renewability, circularity importer and recycler of household Ministry for the Environment’s the benefits of paper.” by Fullcircle was recycled within Oji Fibre Solutions is supportive and sustainability goals. and other recovered materials. China’s (MfE's) National Resource Recovery New Zealand. of tighter international controls on Matthew​ Hitchings concern at the volume of waste Project since 2018 with policy limiting the cross-contamination Manager, Fullcircle The recovered paper reprocessed generated from cross-contaminated of recyclables as the logical and practical discussion about at our Penrose Mill is used to recyclables has resulted in tighter ways in which New Zealand can move from a linear — take, make, produce 100% recycled paper. quality specifications being applied improve resource recovery rates. waste — economy to a circular one. The majority of this is then used to these materials. Other countries For example, MfE’s investigation by our packaging plants in have been quick to follow China’s We know there are many of a country-wide container return New Zealand and Australia example, accepting only those opportunities to promote circularity, scheme is also an opportunity to as the middle (fluted) layer recyclables with low rates and respond to stakeholder interest promote separation of recyclables in corrugated board. of contamination. about the sustainability of products. at source to reduce contamination.

26 Oji Fibre Solutions Sustainability Report 2019 27 ~20% 53% Targeting emission of wastes intensity diverted improvement at from landfill zero Tasman Mill 341,910 GJ 78.8% of power renewable generated energy

Our aim is to achieve TARGET • A 21% decrease on 2018 results The three-year, $63 million project in waste to landfill from our to transform the Tasman Mill was zero environmental Zero non-compliance packaging sites in Australia due mostly completed by mid-2019 burden. with environmental laws to an improved source separation and resulted in emissions reducing 1 and regulations How do our kraft mills system at most sites and working by more than 8,300tCO2-e between Inspired by the aspiration of produce energy? our parent company, Oji Holdings’, Each year we strive to achieve zero with an industrial composting 2018 and 2019. During the same non-compliance with New Zealand facility to take wastewater sludge The kraft pulp process separates period emissions intensity at to act in harmony with nature lignin, the material that binds the and Australian environmental laws. from our Yatala site Tasman Mill improved from and society to achieve zero fibres, from the wood and produces environmental burden, four Oji Fibre Solutions holds more • A 27% reduction on 2018 results black liquor as a by-product. 0.272t to 0.219tCO2-e (almost 20%). years ago we adopted three than 40 environmental consents in waste to landfill from our This is used as biofuel in the We transformed the Tasman Mill production process and is environmental targets to provide for our milling and packaging Christchurch site due to the 2018 by refocusing the pulp product operations covering conditions supplemented by wood wastes, direction on our journey to become conversion of the coal-fired boiler such as bark. The Tasman Mill 2019 ENERGYmix and substantiallyCONSUMPTION changing USING the RENEWABLE a more sustainable business. such as water withdrawal to a cleaner burning option. also GHGdraws INTENSITY geothermal 2015 steam – 2019 mill’s energy systems. See our case TCO2-E/T TOTAL PRODUCTION pg 23 ENERGY TO MITIGATE GHG EMISSION pg23 and discharge, air quality and from a local bore owned and study about how we did this at environmental monitoring. operated by Ngāti Tūwharetoa TARGET Geothermal Assets. climateleaderscoalition.org.nz In 2019, four incidents failed our strict compliance criteria. 6% reduction in GHG emission “Transforming Tasman All related to limit violations and intensity from 2015 levels 2019 ENERGY CONSUMPTION USING RENEWABLE before the end of 20203 ENERGY TO MITIGATE GHG EMISSION pg23 Mill has improved were quickly rectified. There were no warnings or sanctions from Close to 75% of total energy GHG INTENSITY 2015–2019 2019 ENERGY CONSUMPTION environmental regulatory authorities and no consumption in 2019 was from Using renewable energy outcomes and environmental impacts. renewable sources. Most of this to mitigate GHG emissions was from biomass at our pulp mills. 0.30 decreased TARGET 0.29 Greenhouse gas intensity across 0.291 0.28 0.287 5.4% the business has continued to 0.287 2019 ENERGY CONSUMPTION USING RENEWABLE greenhouse gas 30% (dry basis) reduction 0.279 5.4% in waste to landfill from decrease since 2017 tracking 0.27 ENERGY TO MITIGATE GHG EMISSION pg23 emissions. We are 0.270 2015 levels before the towards our target. In 2019 emission 0.26 15.8% 4 2 intensity was 0.279tCO2-e per 0.25 very pleased to end of 2020 0.254 tCO2-e/t total production total tCO2-e/t tonne of product (down almost 0.24 2019 ENERGY5.4% CONSUMPTION USING RENEWABLE have driven down Oji Fibre Solutions continues to be 2019 ENERGY CONSUMPTION USING RENEWABLE 2.8% compared to 2018). Projects 0.23 ENERGY5.4% TO MITIGATE GHG EMISSION pg23 an important part of New Zealand’s contributing to 2019 reductions ENERGY TO MITIGATE GHG EMISSION pg23 emissions from the 0.22 recycling industry, collecting around include: 15.8% 73.4% mill by 8,300tCO2-e one half of the country’s waste paper Waste Streams0.21 (tonnes) pg 23 • The 2018 coal boiler conversion and reprocessing about one third 0.20 in 2019.” into new products. We also play at our Christchurch site, where 2015 2016 2017 2018 2019 TARGET 2020 emissions decreased by 493tCO2e Terry Skiffington a big part in using wastes from (18%) compared to 2018 73.4% Chief Operating Officer, the forestry industry. 5.4% Pulp and Paper • The boiler conversion from Waste Streams (tonnes) pg 23 2 Biomass: Fossil5.4% fuels: In 2019, 53% of the waste generated WASTE STREAMS kraft black liquor, natural gas, by our manufacturing sites was diesel to gas at our Yatala site wood residues waste fuel oil, Waste Streams (tonnes) pg 23 15.8%fuel oil, coal, diesel diverted away from landfill. The in mid-2019 120,000 Waste Streams (tonnes) pg 23 Electricity Geothermal steam amount sent to landfill remains • A more efficient gas boiler 5.4% above our plan. installed at our Noble Park site tonnes 5.4% 5.4% 24,149 22,982 5.4% 1 A non-compliance with environmental laws and/ 80,000 19,448 21,075 19,925 or regulations is defined as an event resulting in a The increase in waste to landfill • A 12% decrease in emissions at 15.8% 73.4% limit violation, or warning, fine or other sanction during 2019 was a result of our Lansvale site, partly driven 33,173 30,190 15.8% from the regulator. 26,900 30,225 29,317 operational challenges at our 120,000 2 Waste to landfill targets exclude new sites of Yatala by converting factory lighting 40,000 largest pulp and paper facilities in and Cardboard Carton Solutions facilities. In 2019, from fluorescent lights to 44,700 46,566 combined these sites recorded 61 tonnes of waste 41,165 40,175 40,776 New Zealand. However, there were 120,000 24,149 to landfill and achieved 98% waste diversion rate. LED lights 22,982 73.4% 80,000 19,448 0 21,075 19,925120,000 3 GHG emission intensity is defined as tCO2-e direct improvements in managing waste 73.4% • Transitioning hoists from LPG to 2015 2016 2017 2018 2019 (Scope 1) and indirect (Scope 2) emissions per at many of the smaller sites across 33,173 30,190 24,149 22,982 26,900 30,225 29,317 21,075 tonne of total output. Total output includes market electricity across the Packaging 80,000 19,448 19,925 24,149 22,982 pulp, containerboard, fibre-based packaging our business, including: 40,000 80,000 19,448 21,075 19,925 products, chemicals and by-products. New Zealand network of facilities. Waste to landfill To recycle To compost 33,173 30,190 26,900 30,225 29,31746,566 4 Carbon dioxide equivalent emissions. 41,165 40,175 40,776 44,700 33,173 30,190 40,000 26,900 30,225 29,317 0 40,000 44,700 46,566 Oji Fibre Solutions Sustainability2015 Report2016 2019 41,1652017 40,1752018 40,7762019 28 41,165 40,175 40,776 44,700 46,566 29 0 2015 0 2016 2017 2018 2019 2015 2016 2017 2018 2019 Managing the Upgrading the water we use water treatment plant at Kinleith Mill

Our operations have TARGET by 2035; the point at which it is In 2019, we announced The plan to commission a state- accommodate the new treatment considered to be inconspicuous. of-the-art wastewater treatment plant by reducing loads and water a responsibility to use, Water colour reduction our plans to futureproof plant continues at Kinleith Mill use. Once the resource consents This target was achieved in treat and monitor water target achieved and we are on track to replace the are granted, we plan to begin the mid-2019, sixteen years ahead the mill’s wastewater Oji Fibre Solutions co-manages relevant resource consents for the design and construction phase of in accordance with of schedule. Oji Fibre Solutions management and the wastewater treatment plant at mill. When completed the project a new high-tech activated sludge has made several improvements environmental consents, Tasman Mill with the neighbouring treatment systems. will allow us to treat wastewater to system and tertiary treatment plant in recent years to contribute to this trade waste permits operationPROGRESS Norske OF TASMAN Skog Mill. MILL POND COLOUR a standard that meets international at a site to the south of the mill. but the most significant has been PERFORMANCE VS CONSENT best practice. and local regulations. The regulated target for colour the bleach plant closure, part of We continued to talk to the All major processes in our mills of the water discharged from the the $63 million Mill transformation This project is being driven by our local community and Tangata use and reuse water — from log treatment plant is less than 10 project, which was mostly parent company, Oji Holdings, as Whenua about the project, debarking, chip washing to pulp tonnes per day (Pt-Co Equivalent) completed in mid-2019. part of their aspiration to reduce including discussions about washing and screening and in the the environmental burden of their options for rehabilitating paper machines. Water is also used operations across the globe. the old treatment infrastructure, and we hope this engagement to generate steam for process heat TASMAN MILL COLOUR DISCHARGE CONSENT We have already begun to make Target achieved 16 years ahead of schedule carries on into the future. and on-site power generation. improvements within the mill to In addition to water being used 35 Waste Streams (tonnes) pg 23 when we make pulp and paper, 30 our packaging plants alsoWaste use itStreams (tonnes) pg 23 when we make corrugated board 25 THE WATER CYCLE and packaging. Water is used in Precipitation several processes, including to 20 make steam to heat the corrugator 15 apo-transpiratio rollers, to make the starch that Ev n bonds the layers of containerboard 10 120,000 d gr together, and as a component 2019 WATER SOURCE -o an ound w run ate ALL MANUFACTURING5 OPERATIONS er r r in the printing process. 120,000 at ec Av. 30-day moving pond out colour (T/D) pond out colour moving 30-day Av. 24,149 22,982 w ha ce rg 80,000 19,448 21,075 19,925 a e Our two largest sites, Kinleith 0 rf u 2010 2018 201924,149 202222,982TARGET33,173 2034 30,190 S and Tasman Mills, operate primary 21,075 26,900 30,225 29,317 2019 ENERGY80,000 CONSUMPTION19,448 USING RENEWABLE19,925 and secondary water treatment 40,000 ENERGY TO MITIGATEConsent GHG EMISSION pg23Out colour 33,173 30,190 systems before discharging into 26,900 30,225 29,317 colour limits 41,165performance 40,175 40,776 44,700 46,566 local rivers. At Kinleith this is solely40,000 FORESTS WATER CYCLE managed by Oji Fibre Solutions. 0 44,700 46,566 41,165 40,175 2015 40,776 2016 2017 2018 2019 Water in wood Surface water At Tasman this is co-managed 2019: WATER SOURCES 0 All manufacturing operations Ground water with the neighbouring operation, 2015 2016 2017 2018 2019 Municipal water Norske Skog Tasman. The discharge of treated process 2019 ENERGY1% CONSUMPTION USING RENEWABLE water by these mills is governed ENERGY TO MITIGATE GHG EMISSION pg23 22% by strict resource consent 2019 ENERGY CONSUMPTION USING RENEWABLE r m e requirements by the Waikato a t ENERGY TO MITIGATE GHG EMISSION pg23 e a t t S w n and Bay of Plenty Regional e 5.4% t e s m Councils. Monitoring reports are 5.4% a t w a e s r regularly provided to the councils s t ce Other water inputs o r for compliance with a range 15.8%of r te Non-fibre P a 77% w parameters. These reports are also raw material MANUFACTURING te as made available to Tangata Whenua, Water in products W the mills’ community consultation Products groups and to the general public 73.4% via the councils or on request. 5.4% Surface water Ground5.4% water Municipal supply 5.4% 15.8% 5.4% Oji Fibre Solutions Sustainability Report 2019 30 15.8% 31

73.4%

73.4% At Oji Fibre Solutions we strive to develop 12 local community strong and mutually beneficial relationships initiatives with our customers, the communities in which provided long-term 04 we are located and our suppliers. support. Partnership by nature True partnership brings opportunity, drives growth, and most importantly, ensures strength and stability. By building on the trust we have earned and working together with our partners, our people and our communities, we are able to deliver better solutions by nature.

32 Oji Fibre Solutions Sustainability Report 2019 33 $80,000 $234,000 contributed to provided to Engaging in the Graeme Dingle community our communities Foundation initiatives

We act as a trusted 1 Fill a box RemarkIT partner in our This initiative aims to spread In 2019, we entered a new communities. kindness and to help alleviate stress partnership with RemarkIT during the Christmas season. Each Solutions and the Digital Wings We are proud of being purposeful Graeme Dingle Foundation Duffy Books in Homes year the Levin community rallies programme to repurpose our and consistent in our community Oji Fibre Solutions is a proud Duffy Books in Homes’ vision is to around families in need though ‘end-of-life’ IT equipment. This relationships. By doing so we work supporter of the Graeme Dingle inspire a love of books in children, this local project by donating is now being reused or recycled, alongside our charity partners Foundation’s Kiwi Can and Stars so they become adults who inspire items to fill a box. The boxes are with much of the viable equipment to promote shared knowledge, programmes in Tokoroa, the a love of reading. They do this then delivered to families the week donated to charities and community understanding and provide community in which our Kinleith Mill by creating and enhancing the before Christmas, which is usually groups across New Zealand. In 2019, certainty of support. is based. In 2019, we supported desire of children to read through a surprise to the family receiving Digital Wings supported 129 new We are also proud to engage in 1,436 local young people aged book ownership. We sponsor the them. As a large employer in the charities and diverted 155 tonnes our local communities by doing 5-18 to build their resilience, programme in four schools close local area, Oji Fibre Solutions is of potential e-waste to reuse. what we do best; providing confidence and belief in their own to our mills in the central North proud to have lent our support cardboard packaging solutions with potential — setting them up with Island of New Zealand: David Henry to this initiative, to help those in great presentation to selected a platform to launch from when School, Tainui Full Primary School need, by providing our A4 file grass-roots initiatives. they leave school. and Strathmore School in Tokoroa boxes to those coordinating and Kawerau South School in the collection. Kawerau. Though our sponsorship, the children at these schools received more than 1,250 new books of their choice in 2019.

2 1 School Savvy CQ pre-loved uniform and basic OUR COMMUNITY INVESTMENTS IN 2019 stationery supplies for After opening our state-of-the-art redistribution, but they needed distribution centre in Bundaberg, a sustainable collection solution Queensland in 2019 we got behind to place around the region. the local community by supporting We were happy to lend our School Savvy CQ, an annual back to core skills and expertise to school resources initiative the wider community by aimed at children and families providing collection boxes. who need financial assistance. School Savvy CQ collect WELLBEING 7% COMMUNITY 3% COMMUNITY EDUCATION 41% EDUCATION SPORT 5% SPORT ENVIRONMENT 44% “Collection bins donated by Oji Fibre Solutions were very professional and highly visible. This kind donation enabled School Savvy TOTAL $234,000 to help 555 children in Bundaberg and 1 Children from Tokoroa involved in the 519 children in the Rockhampton region.” Graeme Dingle Foundation 2 Anna from Centacare CQ with Colleen Maija Stewart from Capricorn Educational Resources Coordinator, Business Development, CentraCare CQ

1 Excludes commercial sponsorships.

34 Oji Fibre Solutions Sustainability Report 2019 35 Supplier Code Taking the pulse of Conduct of our partners

Ensuring those we work At the end of 2019, we launched • Prioritise workplace health and A step forward in our Supplier Code of Conduct, safety and provide secure, safe with uphold the same which is included in our contracts and healthy work sites working together toward with suppliers. It formalises our values and standards. • Manage their business in an sustainable business. expectation that our suppliers At Oji Fibre Solutions, we recognise environmentally responsible At Oji Fibre Solutions we believe uphold our values and standards our good reputation depends on manner that working collaboratively with a our relationships with our suppliers, of operation and share our drive wide cross-section of stakeholders • Commit to open communication as well as managing the impacts for sustainable outcomes. is the best way to share knowledge and positive relationships with of our supply chain. As a significant In the Code, we state the minimum and experience, to raise awareness the local communities in which player in the fibre industry, we can obligations we expect our suppliers about the challenges and potential they operate. use our purchasing power to meet in doing business with us. of the industry, and to accelerate to improve economic, social Suppliers must: The Supplier Code of Conduct is our sustainable journey. and governance outcomes, an integral part of our procurement • Comply with all applicable laws In late 2019, we commenced and contracting process and is and encourage suppliers to consultation with stakeholders from • Undertake ethical business being implemented in contracts continuously improve. across our value chain about the practices with all new suppliers. A staged issues that matter most to them approach is being taken to rolling • Avoid the procurement of wood and which Oji Fibre Solutions has out the Code to existing suppliers. from unacceptable sources an impact on. The full Supplier Code of Conduct • Protect human rights and This confirmed the importance of is available on our website. labour standards supply chain security, fibre sourcing and recycling and the approach we take to manage our environmental Our memberships include: and social impacts. This materiality assessment Australian Forest Products Paper Forum provided rich insights, and coupled Association (AFPA) New Zealand with our experience in early 2020 SEDEX (Supplier of operating as an essential service Australian Packaging during the COVID-19 pandemic, is Covenant Organisation Ethical Data Exchange) (APCO) helping to shape our sustainability Sustainable Business agenda for 2021 and beyond. Bioenergy Association Council (SBC)

Business Leaders’ Health Technical Association & Safety Forum (ZeroHarm) of the Australian and New Zealand Pulp and Business New Zealand Paper Industry (Appita)

Climate Leaders Coalition The Charted Institute of Logistics and Transport “We have long held the expectation that Employers and Manufactures our suppliers be ethical and environmentally Association (EMA) WasteMINZ and socially responsible, and so it’s a really Forest Owners Association Wood Council of New Zealand positive step to record this in our Supplier Gen Less Code of Conduct to confirm our commitment Wood Processors & Major Electricity Manufacturers Association to a sustainable supply chain.” Users Group (WPMA) of New Zealand Simon Codling General Counsel Packaging NZ Zero Waste Network

36 Oji Fibre Solutions Sustainability Report 2019 37 Our governance Our certifications and ownership and standards

Meet the At Oji Fibre Solutions our leadership We and our partners benefit Demonstrating our team has deep experience of the from the continuity of leadership Oji Fibre Solutions’ pulp, paper and packaging industry delivered by this philosophy. We commitment to conduct Leadership Team gained within the company, across also have the benefit of being part business ethically and Australasia and further afield. We of Oji Holdings Group and accessing legally and in compliance believe in developing, nurturing the skills and experience of a wider Environmental Quality and bringing talent through the network of employees seconded with recognised industry standards. Forest Stewardship Council® Chain ISO 9001:2015 certified at our business’s many operating units. to the business to learn and develop. of Custody (CoC) certification for mill sites as follows: pulp at both the Kinleith and Tasman • Kinleith for the design, Mills, for paper at Kinleith Mill and development and dispatch Penrose Mill, and for packaging at of paper, and the final drying, six packaging manufacturing sites: baling and dispatch of pulp Northern, Central, Southern, Yatala, Lansvale and Noble Park. • Tasman for the final drying, unitising and dispatch of pulp Programme for the Endorsement of Forest Certification Chain of • Penrose for the manufacture Custody (COC) certification for and supply of paper. pulp at both Kinleith and Tasman ISO 9001:2015-certified Quality Mills, for paper at Kinleith Mill and Management Systems at all our Penrose Mill, and for packaging at New Zealand packaging sites six packaging manufacturing sites: and in Australia as follows: Northern, Central, Southern, • Lansvale, Noble Park and Yatala, Lansvale and Noble Park. Yatala manufacturing sites ISO 14001:2015-certified • Foodservice Packaging for the Environmental Management manufacture of paper containers System at Tasman Mill. for food and beverage for food Leadership team, left to right: service applications. Simon Codling, General Counsel; Karl Klinge, Chief Financial Officer;Grant Wilcock, Vice President Paper Sales & Marketing; Dr Jon Ryder, Chief Executive Officer;Grant Fitzgibbon, Chief Operating Officer — Packaging;Hiroyuki Isono, Director and Chairman; Mike Meiring, Vice President Pulp Sales & Marketing; Terry Skiffington, Chief Operating Officer — Pulp & Paper; Shunsuke Okubo, General Manager — Group Management Coordination Office

Oji Fibre Solutions is a strong, promoting innovation for the Our ownership Food Safety Health & Safety integrated fibre solutions business prosperity of future generations. ISO 22000:2018-certified Food AS/NZS 4801:2001 Occupational that benefits from Oji Holdings Beyond the Boundaries expresses Safety Management System at Health and Safety Management Corporation and INCJ, Ltd ownership. Oji Holdings’ commitment to Packaging New Zealand's Northern, System at Packaging Australia Oji Holdings Corporation is one of actively go beyond the ‘boundaries’ Central, Southern and Paper Bag Lansvale, Noble Park and Yatala the largest companies in the global of business domains, countries, manufacturing sites: packaging manufacturing sites. pulp, paper and packaging sector. and the respective capabilities of Based in Japan, it has operations individuals with the aim of positively Hazard Analysis and Critical Control Accredited Employer at tertiary across the Asia-Pacific region, contributing to society, the world Point (HACCP) compliance at level of the Accident Compensation Europe and the Americas, with and the future. Northern, Central, Southern, Paper Corporation (ACC) Partnership more than 36,000 employees Bag and Foodservice Packaging Programme in New Zealand. on a consolidated basis. manufacturing sites. At Paper Bag, HACCP applies to hygiene bag INCJ, Ltd operates under the specifications for the manufacture Japanese Industrial Competitiveness of multi-ply bags for the dairy Enhancement Act and engages and food industry under a in ‘value up’ initiatives aimed at Food Safety System.

38 Oji Fibre Solutions Sustainability Report 2019 39 Our Our products services

Market Pulp Containerboard Packaging Fullcircle Logistics • We sell our products to 30+ countries We apply our skill and experience We produce kraft and recycled Oji Fibre Solutions packaging Fullcircle is New Zealand’s only Lodestar has expertise in to provide world-class kraft market fibre-based containerboards business is one of Australasia’s paper recovery and recycling providing a comprehensive • Approx. 70,000 containers pulps for use in various boards in a wide range of weights. largest fibre-based manufacturers. service that transforms waste paper logistics service incorporating (teu) managed across multiple and specialty products. Customers These are ideal for conversion into We specialise in converting quality into paper board and packaging end-to-end cargo management. shipping lines trust us to deliver uniform quality high-quality packaging products. containerboards into fit-for-purpose products for use in the local Third-party customers can now • 3 open hatch bulk charters products on time, every time. packaging solutions that meet our packaging industry. access Lodestar’s shipping operated, of 38,000 DWT each customers individual needs. is a bleached radiata is a premium Fullcircle uses purpose-built services through our joint venture • 3.4m tonnes of export cargo under pine kraft pulp valued by customers light shade, high-strength liner Cardboard Packaging vehicles to service our customers. Bearing360 Ltd, which provides management within New Zealand: for its consistency, strength, for performance packaging with At our six corrugating facilities The most common vehicles are tailored logistics solutions for rail, road and coastal bulk and brightness. Produced superior visual appeal. throughout New Zealand and front-loading and rear-loading export and import businesses. • 46,000sqm storage facility at at Kinleith Mill, HI WHITE™ has a Australia we manufacture a trucks. These safely lift wheelie Services include road and rail the Port of Tauranga for paper strong reputation with Asia-Pacific comprehensive selection of bins and large metal cages is a high-strength transportation, product handling and forest products, giving papermakers for its suitability in cardboard products for the use in carry paper, cardboard, film and white liner that delivers strong and storage, container packing and strategic access to export applications such as coated and a wide range of industries including other recyclables. The range of branding through its smooth, coastal and international shipping terminals and container yards. uncoated printing and writing white surface. horticulture, dairy, meat, seafood equipment options can be seen of containers and break bulk. papers, bleached paperboard, liquid and industrial manufacturing. at ojifs.com/fullcircle packaging board, filter papers and is a high- Paper Bag We are proud of this service tissue products. performance medium for use At our Auckland paper bag facility, and consider it a major point of is a wood pulp used in in high-humidity cool store we specialise in complex multi-ply difference in the New Zealand the production of high-quality fibre environments. bags where product integrity and recycling market. efficient distribution are critical, cement-based building boards. It has is a fully recycled supported by high-quality graphics been developed by Oji Fibre Solutions medium made at Penrose Mill and options of traceability through and is manufactured solely at Tasman for use in standard packaging QR coding. Our product range Mill on a dedicated pulp line and dryer. environments. includes bags for dairy, cement, Tasman Paper Grade is a range of flour and sugar industries, from Unbleached Kraft Pulp (UKP) kraft-top liners made at Kinleith Mill, 5kg sizes through to 50kg This is a premium natural kraft pulp which blends virgin wood fibre industrial bags. manufactured from 100% radiata on the surface for colour and pine, delivering high-strength and Specialty Boards and consistency and recovered medium-fibre coarseness fibre. It Cardboard Carton Solutions fibre as the balance material. is ideal for container paper board At these two dedicated facilities grades and brown kraft papers. we manufacture custom-made corrugated and solid fibre packaging, including heavy-duty packaging, frozen and chilled products packaging, point-of-sale “We are continuing to broaden our product displays, solid fibre slip-sheets and bulk bins. portfolio for specialty UKP and are currently Paper Cups focused on the development of a premium We manufacture paper cups electrical grade.” for a wide range of beverage and other products that benefit Mike Meiring from being presented in Vice President, Pulp Sales & Marketing well-designed packaging.

40 Oji Fibre Solutions Sustainability Report 2019 41 We are proud to have a strong base in 2 1 1 10 25 regional New Zealand and Australia and to kraft pulp mills: kraft paper recycled paper converting plants distribution Our global make our products available internationally. Kinleith and machine: Kinleith machine: throughout centres Tasman Penrose Australia and The fibre strength and consistent quality of New Zealand reach our pulp, paper and packaging products are sought after by customers across the globe. 30+ 14 60+ 3 markets recovered fibre moveable sales offices internationally baling sites in box-erecting in Hong Kong, New Zealand machines Jinan and Kuala Lumpur

ICELAND

LITHUANIA NETHERLANDS

BELGIUM GERMANY

JAPAN UNITED STATES SOUTH KOREA CHINA

PAKISTAN Jinan SAUDI ARABIA TAIWAN UNITED BANGLADESH ARAB EMIRATES INDIA Hong Kong

THAILAND VIETNAM CAMBODIA PHILIPPINES NIGERIA SRI LANKA MALAYSIA COLOMBIA SINGAPORE Penrose Kuala Lumpur INDONESIA FIJI Northern Paper Bag BRAZIL Specialty Boards Yatala Tasman Foodservice Packaging AUSTRALIA CHILE NEW Kinleith ZEALAND SOUTH AFRICA URUGUAY Lansvale Central ARGENTINA Noble Park

KEY Cardboard Carton Solutions Mill Southern Corrugated Box Facility Other Converting Facility Sales Oce Operating Markets

42 Oji Fibre Solutions Sustainability Report 2019 43 2019 results

Oji Fibre Oji Fibre Oji Fibre Kinleith Tasman Penrose Packaging Packaging Oji Fibre Oji Fibre Oji Fibre Solutions Solutions Solutions Mill Mill Mill NZ Aus1 Solutions Solutions Solutions Production data 2017 20181 2019 2019 2019 2019 2019 2019 Employee data 2017 2018 2019 Units Total employees12 1,831 1,846 1,835

PRODUCTION OUTPUTS2 BUSINESS UNIT

Market pulp and containerboard products tonne 928,664 905,715 936,393 547,743 303,563 85,087 0 0 Pulp and Paper 870 859 816 Fibre-based packaging products tonne 187,543 214,285 211,023 0 0 0 134,668 76,355 Packaging Australia 306 316 313 Chemicals and by-products3 tonne 35,786 33,944 34,531 19,118 15,413 0 0 0 Packaging New Zealand 530 545 565 Total outputs2 tonne 1,151,993 1,153,944 1,181,947 566,861 318,976 85,087 134,668 76,355 Corporate 125 126 141

RAW MATERIALS INPUTS LOCATION OF EMPLOYEES

Virgin wood (logs and chips) tonne 3,563,251 3,499,356 3,485,451 2,152,649 1,332,802 0 0 0 New Zealand 1,517 1,521 1,514 Market pulp tonne 8,058 7,455 7,295 7,295 0 0 0 0 Australia 306 316 313 Fibre inputs Recovered fibre tonne 205,605 190,298 191,884 90,447 0 101,437 0 0 China, Hong Kong, Malaysia 8 9 8

Paper, containerboard, wrapping, cores tonne 204,205 215,505 228,400 12,091 0 230 132,539 83,540 AGE PROFILE tonne Total fibre 3,981,119 3,912,614 3,913,030 2,262,482 1,332,802 101,667 132,539 83,540 Under 30 years old 10.4% 11.7% 10.9% Other significant inputs (approximate)4 tonne 114,609 97,091 111,452 64,336 36,091 742 8,744 1,539 30 to 50 years old 46.1% 44.5% 46.2% Over 50 years old 43.5% 43.8% 42.9%

Environmental data GENDER

ENERGY CONSUMPTION Female 17.0% 17.5% 17.5%

Biomass: kraft black liquor, wood residues GJ 21,088,935 20,333,015 20,345,672 13,677,981 6,667,691 0 0 0 Male 83.0% 82.5% 82.5% Direct sources Fossil fuels5: natural gas, waste fuel NEW STARTERS AND TURNOVER GJ 4,646,002 4,390,835 4,389,752 2,975,636 786,183 459,765 92,822 75,346 oil, fuel oil, coal, diesel, petrol, LPG New graduates & apprentices 23 22 21 Electricity GJ 1,587,752 1,628,989 1,488,943 1,039,354 226,008 147,404 45,964 30,213 Permanent new starters 257 231 203 Indirect sources Steam GJ 0 0 0 0 0 0 0 0 (purchased) Voluntary turnover 13.9% 12.4% 4.6% Geothermal steam GJ 1,734,418 1,730,799 1,508,031 0 1,508,031 0 0 0 Total energy consumption GJ 29,057,106 28,083,638 27,732,398 17,692,971 9,187,913 607,169 138,786 105,559 Electricity generation (fuels included above) GJ 358,429 314,616 341,911 250,891 91,020 0 0 0 Health, safety & wellness data Serious injuries13 0 1 1 WATER WITHDRAWAL Lost-time injury rate14 1.09 0.82 0.78 Municipal supply Ml 344 354 434 0 42 327 33 32 Total injury rate15 2.64 1.74 1.64 Surface water Ml 41,995 40,171 41,627 20,691 20,936 0 0 0 Ground water Ml 11,764 12,194 11,631 11,155 0 476 0 0 Product safety incidents16 0 0 0 Total withdrawal Ml 54,103 52,719 53,692 31,846 20,978 803 33 32 EMISSIONS TO AIR

5,6 Scope 1 (direct) emissions (CO2-e) tonne 279,308 267,971 264,206 177,998 51,745 24,932 5,475 4,056

Scope 2 (indirect) emissions (CO2-e) tonne 56,123 63,630 65,938 33,945 18,269 4,814 1,501 7,409

5,6 Total Scope 1 and 2 emissions (CO2-e) tonne 335,431 331,601 330,145 211,943 70,014 29,747 6,976 11,465 A zero (0) in the table signifies the parameter is 6 Includes CH4 and N2O emissions from combustion 12 All employees. Including permanent, causal either not applicable or not material. ‘N/A’ signifies of biomass. and fixed-term employees. Biomass CO emissions7 tonne 1,884,677 1,834,460 1,831,689 1,213,337 618,352 0 0 0 2 that the parameter is not available. 7 Biomass-derived CO2 is reported separately 13 Serious Injuries. A serious injury is defined 8 WASTE 1 Data includes new Yatala and Cardboard Carton for information only, in accordance with the as any condition that results in a person being Solutions sites from 2018. GHG Protocol. permanently disabled or requiring immediate To landfill (approximate) dry tonne 40,175 40,776 46,628 25,076 10,387 9,545 1,357 263 2 Outputs are gross, i.e. includes internal transfers 8 Solid wastes are reported on a ‘dry solids’ basis in-patient hospitalisation. To recycle dry tonne 29,317 33,173 30,190 372 148 0 18,931 10,739 between sites. for all manufacturing facilities; waste to landfill 3 Chemicals include: liquid chlorine, sodium is deposited in facilities owned by Oji Fibre 14 Lost-time Injury Rate (LTIR). Frequency rate of To compost/vermicompost dry tonne 19,925 24,149 22,982 16,196 6,763 0 0 23 hypochlorite and hydrochloric acid. By-products Solutions or licensed third parties. accidents resulting in lost work time = (Lost-time injuries/total work time) * 200,000. Hazardous waste (incl. EPA, Victoria) tonne 195 178 61 6 1 0 0 54 include: crude tall oil and crude sulphate turpentine. 9 Discharges listed for Tasman Mill include those 4 Other significant inputs include: from neighbouring newsprint mill owned and 15 Total Injury Rate (TIR). Frequency rate of accidents 9,10 operated by Norske Skog Tasman due to shared DISCHARGE TO WATER Kinleith Mill: Alum, bale wire, burnt lime, caustic resulting in injury = (Lost-time injuries + restricted soda, calcium carbonate, clay, hydrogen peroxide, effluent treatment infrastructure. work injuries + medically treated injuries/total Volume Ml 57,323 54,786 64,560 30,101 34,154 305 N/A N/A oxygen, paper size, salt, starch, sulphuric acid. 10 Volume estimated for Tasman Mill and excludes work time) * 200,000. contributions from Norske Skog Tasman newsprint Municipal Municipal Tasman Mill: Bale wire, burnt lime, caustic soda, Treatment 1° & 2° 1° & 2° N/A mill and stormwater. 16 Product Safety Incidents. A product safety treatment treatment hydrogen peroxide, lime rock, magnesium incident occurs where a defective product (i) sulphate, oxygen, salt, saltcake, sulphuric acid. 11 Measurements made at point of discharge to causes an injury to a person or material damage Waikato Tarawera Municipal Municipal Municipal trade waste system. Discharge to  Penrose Mill: Starch. to property, (ii) leads to an end-of-consumer recall Market pulp tonnages are expressed on an ‘air dry’ or River River sewer sewer sewer  Packaging NZ: Starch, adhesives, plastic film, inks. 90/10 basis, under which pulp weights are derived by because it could cause such injury or damage, 11 Total Suspended Solids (TSS) tonne 1,383 718 319 N/A N/A  Packaging Aus: Starch, adhesives, coatings, inks. normalisation to 90% dry pulp solids, 10% moisture or (iii) is the subject of a formal safety notification 5 Direct emissions from on-site stationary and to the authorities. Biochemical Oxygen Demand (BOD)11 tonne 575 528 882 N/A N/A content, which is standard for the industry. mobile (vehicular) combustion of fossil fuels.

44 Oji Fibre Solutions Sustainability Report 2019 45 About this report

This Sustainability Data Report is our fifth report This report references topic-specific disclosures from the GRI Sustainability as Oji Fibre Solutions Reporting Standard 2016: and continues previous 301-1 Materials used by weight or volume environmental and 302-1 Energy consumption within the organisation sustainability reporting, 303-1 Water withdrawal by source since 2007, under 305-1 Direct (Scope 1) GHG emissions different ownership. 305-2 Energy indirect (Scope 2) GHG emissions 305-4 GHG emission intensity Scope 306-2 Waste by type and disposal method Data in this report is for the 2019 calendar year. 307-1 Non-compliance with environmental laws and regulations Environmental performance data 401-1 New employee hires and turnover is for the manufacturing sites 405-1 Diversity of governance bodies and employees. of Oji Fibre Solutions, defined as Kinleith Mill, Tasman Mill, As a result of shared wastewater treatment infrastructure, certain effluent Penrose Mill, Packaging Australia data presented for Tasman Mill includes those from the neighbouring and Packaging New Zealand. operation owned and operated by Norske Skog Tasman. These are Environmental performance identified in the notes to the data tables. data is not presented for the service-focused corporate offices, Fullcircle and Lodestar operations. People and health and safety data is for all manufacturing sites and the service-focused operations.

Reporting standards Greenhouse gas (GHG) emission are reported according to the GHG Protocol published by the World Resources institute and the World Business Council for Sustainable Development. We have referred to Integrated Reporting guiding principles and the Global Reporting Initiative (GRI) Sustainability Reporting Standard for guidance in the production of this report.

1 The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard ghgprotocol.org/standards/corporate-standard 2 Global Reporting initiative (GRI) Sustainability Reporting Standard globalreporting.org and principles integratedreporting.org

46 Oji Fibre Solutions CONTACT At Oji Fibre Solutions we welcome your input. For more information or to provide feedback, please email: Jen Cook, Sustainability Manager [email protected] Oji Fibre Solutions Private Bag 92004, Victoria Street West Auckland 1142, New Zealand linkedin.com/company/ oji-fibre-solutions

DISCLAIMER This report has been compiled by Oji Fibre Solutions (NZ) Limited (‘Oji Fibre Solutions’) for general information purposes. Oji Fibre Solutions has taken care in compiling this report and believes the information it contains to be correct, but does not warrant the completeness or accuracy of the information or any opinion or statement contained in this report. ojifs.com