Seeing the big picture

Georg Carlberg Vice President Environment

PANPA 2008 Our world is your world Global leader in publication

80% of our sales Skogn Follum Saugbrugs are newspaper Walsum grades Golbey Bruck Hebei 20% global Sing Buri capacity in MNI Australasia and (34%) 15% in Asia Pisa Albury Tasman Bio Bio Boyer

2 We all hear claims made against the industry

• Forest areas are diminishing wherever paper producers source wood • Not using paper saves trees • Recovered fibres are better than new fibres • We are a major polluter • We are not doing enough to reduce our carbon footprint

3 We all hear claims made against the paper industry

• Forest areas are diminishing wherever paper producers source wood • Not using paper saves trees • Recovered fibres are better than new fibres • We are a major polluter • We are not doing enough to reduce our carbon footprint

4 Our business – managing forests sustainably – In Australasia most of our wood is sourced from plantation forests – By 2010 100% from plantation forests – In all countries where we source wood from native forests the forest areas are increasing year by year

5 Our forest practices are transparent

▪ Forest management certification and Chain of Custody support the achievement of sustainable forestry • They provide transparency, traceability of fibre and encourage good stewardship

▪ Norske Skog regards the main global forest certification schemes as equally good • FSC (Forest Stewardship Council) • PEFC (Programme for the Endorsement of Forest

Certification).

• The Australian Forest Standard (AFS) is part of PEFC

6 We believe in certification ▪ Over 50% of Norske Skog’s wood supplies in Australasia are already certified ▪ By 2012 we aim to be 75% certified – All suppliers must meet State and National laws and practices ▪ By year’s end all Australasian mills will have Chain of Custody certification – the process for tracking wood fibre from forest to consumer

7 Bulk of our fibre resource is from waste

▪ From the forests in the form of thinnings ▪ From sawmills in the form of chips as a by-product ▪ From recycling of newspapers and magazines ▪ Our products help create and maintain a viable forest products industry

8 Virgin fibre is vital and sustainable

▪ The key to sustainability is to use fibres from both sustainably managed forests and recovered paper ▪ A supply chain based on 100% recovered paper is not ‘sustainable’ due to fibre loss – Global recycling loops only function because of the continuous supply of virgin fibres

▪ Mills will have a mix of fibre sources depending on local conditions

9 Over half our fibre is from recovered paper

Roundwood, sawmill chips Recovered 44% Paper 53%

Purchased pulp 3%

Norske Skog Global Fibre Supply 2007

10 Partnership encourages paper recovery

▪ Publishers National Environment Bureau in ▪ World best practice 74% in Australia ▪ 65% in

80 Newspaper % Recycling Rate – Australia 70 60 50 40 30 20 10 0

1989 1991 1993 1995 1997 1999 2001 2003 2005 11 Our goal – global best practice

All mills operate to ISO 14001 ▪ Independent, certifiable, international standard ▪ Requires a commitment to continuous improvement

12 All mills use the Norske Skog Environmental Index

▪ Performance measurement tool ▪ Relates present performance to Best Available Technology / Best Practice

– covers key areas: » Water consumption » Total energy use » Quality of treated effluent discharges » Air emissions of nitrogen oxides » Waste to landfill

13 The Australasian region is targeting a further 25% E-Index reduction by 2010

Regional E-Index 3.00 2.80 2.60 2.40 2.20 2.00 1.80 1.60 1.40 1.20 1.00 2003 2007 2010

14 Target Current initiatives ▪ Albury – world leader in water use efficiency – waste used as soil conditioner ▪ Boyer – secondary effluent treatment – new fibre processing line approved ▪ Tasman – wetland restoration

15 Our greenhouse gas reduction goal

16 We have a track record

▪ 15% reduction in total emissions between 1990 and 2006 ▪ 25% reduction in emissions per tonne of output between 1990 and 2006

CO2 Emissions Intensity Tonnes CO2 / tonne paper 1990 20072006 1.6 1.21.2

17 Bulk of Australasian emissions come from purchased electricity

Source % total emissions Purchased 62 electricity On site generated 32 heat

Transport 5

18 Greenhouse gas reduction options ▪ Reduce energy consumption ▪ Use alternative fuels and energy sources

19 World’s first geothermal powered paper mill – Enough power for 90,000 homes – Will supply ~85% of power used by Tasman – Replacing power currently drawn from the New Zealand grid

20 The forestry value chain is part of the climate change solution ▪ Renewable raw material ▪ Forests utilise and store CO2 ▪ Forest products are recyclable and store carbon ▪ At end of lifecycle wood fibres can produce bio-energy ▪ Biomass energy can replace fossil energy ▪ Sustainable forest management will avoid deforestation in tropical areas

21 Together paper supplier and publisher

▪ Promote printed media Common goal ▪ Fight myths about paper and print

▪ Inform and promote sustainable value chain concept ▪ Require high environmental standards How ? from the whole value chain ▪ Base our messages on credible and open information

22 Thank you