This Is Norske Skog in Words and Numbers

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This is Norske Skog in words and numbers.

Norske Skog is a leading Norwegian industrial company which focu- ses on these core areas: printing paper for newspapers and maga- zines, bleached sulphate pulp, and wood-based building materials. The Group has about 5,800 employees, and its operating income in 1996 was NOK 13,265 million. 78% of its income came from export markets, primarily in Europe, but also in the US and the Far East. The Group operates 23 companies in Norway, one mill in Austria and one in France. Its activities are organized in fourAreas: Paper, Fibre, Building Materials and Resources. In printing paper, Norske Skog is one of the world's leading suppliers, with capacity of 2.3 million tonnes in a market that totals about 50 million tonnes. Norske Skog is the third largest manufactu- rer of printing paper in Europe, and the world's fifth largest newsprint producer. The pulp sold by the Group is used in the production of printing paper, fine paper and tissue. Norske Skog Bygg AS is Norway's largest producer of building materials: sawn timber for building purposes, board for the building and furniture industries, and flooring products. Since its foundation in 1962, Norske Skog has grown rapidly through mergers with other companies, and major investments in new mills, both in Norway and abroad. Since 1990 the Group has increased its printing paper capacity by one million tonnes, or just over 70%. Norske Skog has a sound financial basis, with total assets of NOK 16,623 million, and an equity capital ratio of 45,9%. The Group has about 18,000 shareholders. The largest shareholder groups are forest owners' associations in Norway, funds, financial institutions and private individuals. Norske Skog's goal is to continue its development as an international industrial group. The Group will strive for long-term profit- ability and must be able to compete with the leaders in its product and market areas. Norske Skog shall be known for high standards in all environmental matters.

Production capacities 1997 Paper Building materials *) Newsprint 1,505,000 t Sawn timber 590,000 m3 Magazine paper 760,000 t Particle board 350,000 m3 Special grades 35,000 t High-pressure laminates 4,000,000 m2 Total paper capacity 2,300,000 t Parquet ﬂooring 1,500,000 m2

Fibre Resources **) Sulphate pulp 365,000 t Total property area 180,000 hectares Chemithermomechanical pulp (CTMP) 90,000 t Of which productive forest area 81,000 hectares Total capacity market pulp 455,000 t With sustainable annual timber yield of ***) 102,000 m3 Mean annual electricity output (hydropower) 415 GWh

*) This activity also includes eight units for trading in building materials and further treatment of sawn timber. **) This activity also includes procurement of round timber, waste paper and energy and management of the Group's property. ***) The amount which can be harvested annually, without reducing future harvesting.

1 Group President and CEO Jan Reinås: The forest industry is based on renewable natural resources. That is our great strength and great challenge.

Open, objective environmental reporting is a part of Norske Skog's environmental policy. The Group's environmental policy embraces the whole life cycle of our products, from raw material, via production, transport, recycling and waste treat-

Photo: Anne Nordseth ment. That is reflected in this report. It is vital that we adopt an overall view in our environmental work. The environmental effects of an activity or a product cannot be seriously evaluated unless one approaches it in this way. It is in this perspective that we must also evaluate the possibilities of the forest industry. We manufacture recyclable products based on renewable raw materials which will not be exhausted, if we manage them sensibly. We are not just talking about a cradle to grave life cycle, but a life cycle from cradle to cradle, in which the raw materials and most of the energy sources we use renew themselves and can be used over again. This is our industry's great strength - and great challenge. A high environmental standard is important to Norske Skog. We have a responsibility to ope- rate our activity with the smallest possible negative impact on the environment. But the environment also has a commercial aspect. Our customers, employees, investors and insurance companies are giving steadily increasing weight to environmental standards and environmental policy. In order to manage better, and to satisfy the demand for information to our market and the public, we must be able to document our environmental efforts. Norske Skog aims to achieve this through environmental certification and environmental management systems, with EMAS and ISO 14001 as tools. In the course of 1996 the Skogn, Hurum and Bruck paper mills were ISO-certified and/or EMAS-approved, and others will follow in 1997. Our policy is that all the relevant units in the Group should meet EMAS standards. In the forest sector, Norske Skog is playing an active part in the drive to develop environmental standards and documentation systems for sustainable forestry, among other things through the “Living Forests” project. This is an area attracting keen international attention. As part of our quality assurance in the environment field, this year's environmental report has - for the first time - been verified by an external auditing firm, with special competence in this discipline.

Jan Reinås 2 Nature’s variety – an important factor for our existence. Photo: Farbbild-Service

3 The life cycle concept. Our virtuous circle: The raw materials are renewable, the products can be used without danger to health or the environment, and they can become a source of bioenergy when they can no longer be used or recycled.

The forest industry's activity is linked to nature's own cycle. new wood. Thus the cycle is completed. The binding of

This provides a unique opportunity to develop this industry CO2 by the forest also helps reduce the so-called “green- in the direction of a sustainable activity. house effect”. Our activity processes renewable raw materials from the The forest industry in Norway enjoys, in addition, forest. The sun's energy and photosynthesis produces wood another signiﬁcant environmental advantage connected with and oxygen, in an everlasting process. The forest industry uses nature's cycle. The activity is to a large extent based on the wood to produce building products and paper, while the clean, renewable hydro power, in addition to the bioenergy forest is renewed through planting and natural regeneration. recovered from bark and other production waste. The natural cycle gives the forest industry fundamental advantages. Of course, however, this activity is not without negative effects on the environment. Forestry affects the CARBON DIOXIDE balance of nature and the forest's biodiversity. Emissions

Business Graphics TTHEHE FFORESTOREST CCYCLEYCLE from production processes and transport cause pollution. Waste generated by production and consumption can add to ENERGY RECOVERY environmental problems. The effects of all this can be made apparent through life cycle analysis which evaluate the environmental impact PAPER RECYCLING of products from the raw material stage through recycling and destruction. Research institutions are currently undertaking such analysis in connection with Norske Skog’s activities. This forms part of a large cycle. At the same time, the This environmental report products have a cycle of their own. Used paper and timber will take a closer look at various can be recycled into new products, or used to produce bio- environmental effects arising energy through incineration in energy recovery plants. Bio- from Norske Skog’s activity at

energy is so-called CO2-neutral energy, as long as forest all stages of the life cycle. growth exceeds harvesting. When CO2 (carbon dioxide) is released from wood products through burning or decay, it is d absorbed by the forest and used in photosynthesis to produce

4 Environmental challenges. This is a report about some of what we have done and achieved. Let us not forget, nevertheless, that many environmental challenges remain.

Presentation of this report use of renewable, non-polluting energy sources such as Norske Skog’s environmental policy has been defined under hydropower and bioenergy. eight headings (page 6), and embraces the life cycle of our Discharges products. This environmental report is presented in the same Our discharges have been sharply reduced during recent way. It covers the concrete content related to each individual years, and the Group will continue its efforts to reduce them. point of policy for 1996, in terms of measures, results, prob- Discharge statistics often provide a good picture of the gene- lems and examples. ral environmental standard at individual plants, and such statistics will continue to be one of the government’s most Content of the report important tools for monitoring industrial activity. The possi- The report covers all relevant production units belonging to ble effects of discharges are mainly linked to the production the Group, as well as subsidiaries which are consolidated of pulp and paper – not much to the production of building into Norske Skog’s accounts. Most of these units are in materials. This is reflected in this environmental report. Norway, but about a quarter of the Group's paper production is located in France and Austria. The specific figures and Environmental Management data in the report are concentrated on Norske Skog's activity In view of the Group’s goal that all relevant units should be – that is, the Group’s own production, own forestry, own EMAS-approved, considerable resources will be devoted to research and so forth. However, the report also deals with this at our plants during the coming period. Environmental other areas clearly relevant to Norske Skog. Examples of work within Norske Skog is organized along direct lines of this are forestry and transport which provide raw materials responsibility, linked to environmental management sys- and services to Norske Skog. The report does not comprise tems. Important environmental conditions are reported – in subjects related to health and safety. the same way as economic matters and other management parameters – in a direct line to the Group’s central manage- Our greatest challenges ment and Board. Norske Skog’s activities are wide-ranging, and environmental reporting must be concentrated on the circumstances Economy and Market which have the greatest environmental impact within the It is difficult to gain a complete overview of all the econo- various stages of the life cycle. The report does not comprise mic consequences of environmental measures. Direct invest- subjects related to health and safety ments and operational costs are specified in the report, but many other factors are harder to put a number on. Raw materials and energy The company's strategy calls for Norske Skog to be a Where forestry and raw materials are concerned, a major supplier to the most discriminating parts of the market. goal is the development of sustainable forestry methods which Those customers who are most discriminating as balance commercial, ecological and social interests. Forest regards quality and service are also those certification, and the preservation of biodiversity, are key who demand the highest environmental issues. Norske Skog is deeply involved in this debate, and in standards. A high environmental standard the drive to develop standards and criteria in these fields. is therefore important to the achievement Some of the Group’s activities are energy-intensive. of Norske Skog’s marketing goals. Norske Skog's goal is to be a leader, internationally, in the 5 L Environmental policy.

Purpose Production discharges Norske Skog shall be known for its high standards in all Norske Skog shall: ● environmental matters, and in the utilization of natural work towards continued reductions of discharges into air resources related to its operations. and water, with discharge-free plants being the ultimate objective. Strategy ● utilize and handle waste and by-products in an environ- The forest industry has a number of premises for living up to mentally and economically responsible manner. requirements for sustainable operations. This is part of the Products basis for Norske Skog’s corporate philosophy and embraces Norske Skog shall: the product’s life-cycle, from the use of raw materials and ● base its operations on products which can be made, used, energy, through production and use, to the stage where the recycled and destroyed without harming health or the products are recycled or destroyed in a manner that is not environment. harmful to health or the environment. Research and Development Forestry - raw materials Norske Skog shall: Norske Skog shall: ● carry out research and development in environmental ● assume environmental responsibility with respect to the matters. utilization of raw materials in its production processes, by ● support initiatives for the development of technologies imposing requirements on all its suppliers. which contribute to further reductions of discharges from ● through co-operation with its wood suppliers, impose its plants. requirements and provide support for the development of ● enhance environmental awareness among all of its sustainable forestry practices which take into consider- employees. ation both economic utilization of resources, and eco- Organization logical, biological diversity, and recreational issues – all Norske Skog shall: in connection with the operation of its own forests. ● through its line organization, ensure that all of its plants ● work with recycled paper as a raw material when it is set objectives and impose requirements in accordance proper to do so from an environmental, commercial, with Norske Skog’s environmental policy. technical and economic viewpoint. ● prepare annual environmental action plans at all of its Energy Nplants. Norske Skog shall: ● enhance environmental awareness among all of its ● be among the leaders in the international forestry sector employees. with respect to the utilization of renewable, non-polluting Information energy resources. Norske Skog shall: ● actively promote energy conservation. ● demonstrate openness in environmental matters. Transport ● work to ensure that all types of environmental require- Norske Skog shall: ments are imposed on an as objective and proper basis ● allow environmental considerations to be a major factor as possible. when selecting transport solutions for raw materials and ● prepare an annual environmental report in addition to the end-products. company’s annual report.

6 Nowadays it is more important than ever to rely on renewable resources. Photo: Farbbild-Service

7 Forestry and raw materials. Promoting sustainable forestry, which takes account of economical, ecological and recreational interests, is one of our most important challenges.

Wood and wood fibre from the forest is the raw material for all of Norske Skog’s products. Even waste paper, from which the wood fibres are recovered after use, originates from the forest. Photo: Erik Sandersen Norske Skog gets most of its wood supplies from the countries in which it Standing volume of wood, operates, and from Norway800 Mill. m3 Sweden. As far as 700 quantity is concerned, there is no doubt that 600 forestry in these coun- 500 tries is conducted on a coniferous forest protection plan. The final choice of new

400 long-term, sustainable protected areas has not yet been made. basis. Forest growth, Norske Skog’s policy is to abstain from buying wood 300 1925 1950 1975 2000 each year, is substan- from areas which the authorities are considering for future Source: Norwegian Institute of Land Inventory tially higher than protection. Nor does Norske Skog buy wood which has been harvesting. harvested in contravention of other conservation regulations. In Norway, the volume of standing wood has doubled Guarantees in this connection, as well as other environmen- since 1920. tal requirements, were incorporated in contracts with timber suppliers during 1996. This work will continue. Sustainable forestry Forests are, however, much more than wood. The forest is Living Forests the biotope of a large number of plants and animals, and an Norske Skog participates actively in efforts to promote sus- important place of recreation for people. Sustainable forestry tainable forestry. In Norway, these efforts have been organ- must take account of these factors, so that profitable produc- ized through the Living Forests project. This project is very tion of wood can be combined with consideration for biodi- broadly based, with participation by forest-owner organiza- versity, outdoor recreation and social conditions. Biodiver- tions, the forest industry, the trade unions, the environmental sity is defined as the natural diversity of genes, species and and forestry authorities, the environmental movement, recre- ecosystems. ational and consumer organizations. One of the project’s Modern, environmentally-aware forestry aims to preserve chief tasks is to define criteria, standards and guidelines for this diversity. In recent years, there have been significant sustainable forestry in Norway. This work is very compre- changes in the way the forests are managed. Greater emphasis hensive, and much has been done during 1995 and 1996. The is now given to considering local conditions, and multiple goal is to complete the definition of standards during 1997. use aspects. Protecting certain selected forest areas of special envi- Certification ronmental value is a part of sustainable forestry. In Norway, National standards for sustainable forestry can be combined the Parliament voted in the spring of 1996 to extend the with international forest certification systems to document

8 Forestry – raw materials Norske Skog shall:

● assume environmental responsibility with respect to the utilization of raw materials in its production processes, by imposing requirements on all its suppliers.

● through co-operation for customers and consumers that our products are based on Consumption of with its wood suppliers, raw materials impose requirements and wood from well managed forests. provide support for the In 1996 Norske Skog used about development of sustaina- Internationally, different forest certification systems are ble forestry practices which 6.5 million cubic metres of round take into consideration being developed, among others in connection with ISO, the both economical utilization timber and chips. All the parts of of resources, and ecologi- EU's environmental management system (EMAS) and the cal, biological diversity, and the timber logs are utilized in the recreational issues - all in Forest Stewardship Council (FSC). The systems may, if connection with the opera- wanted, be combined. Through the Living Forests project production of sawn timber, particle tion of its own forests. board, floors, pulp, paper and biofuel. ● work with recycled these options are being kept open, so that Norwegian for- paper as a raw material Of the coniferous timber, 73% when it is proper to do so estry can be adapted to the certification systems which prove from an environmental, came from Norway and 6% from commercial, technical and relevant. economical viewpoint. Forest owners and the forest industries in the Nordic area France and Austria. Imports came are harmonizing their certification efforts through the Nordic mainly from Sweden (66%), and in Forest Certification Project. smaller amounts from Denmark, Germany, Ireland and the Baltic countries. Own forests Some 375,000 cubic metres of eucalyptus wood was im- Norske Skog buys most of its wood from small, private forest ported for Norske Skog Tofte. Eucalyptus is a fast-growing owners who manage their forests in combination with agri- tree which is grown on plantations and used as raw material culture. This is the most characteristic form of ownership in for short-fibre pulp. None of the eucalyptus imported by all the countries in which the Group has production facilities. Tofte comes from natural forests or tropical rain forests areas. Norske Skog itself owns 81,000 hectares of productive forest in Norway and Sweden. In 1996, 87,000 cu.m. of tim- Waste paper ber was harvested from our own forests, compared with In 1996 Norske Skog used 293,000 tonnes of waste paper, 102,000 cu.m. in 1995. compared with 122,000 tonnes in 1995. Waste paper is used In the operation of our own forests great emphasis is laid as raw material for producing newsprint, magazine paper, on environmental considerations. Registration of areas with fluting and special paper at four mills in Norway, Austria special environmental features (“key biotopes”) has been and France. Norske Skog Bruck is among the world leaders carried out in the forests in south Norway and Sweden, and in utilizing waste paper in the production of coated magazine has been started in mid-Norway. Such areas are usually paper (LWC). At Norske Skog Hurum, used beverage car- exempted from harvesting. tons collected from Norwegian households are used to pro- In the winter of 1996 wood was harvested in two areas, duce envelope paper and office cardboard. in the Group's forests in Namdalen, which contained vulne- The Norwegian Ministry of the Environment and rable varieties of lichen. The harvesting did not contravene Norske Skog concluded an agreement in 1996 under which existing laws, but Norske Skog has nevertheless expressed Norske Skog assumes increased responsibility for finding its regret about the incident and taken precautions to avoid markets for waste paper similar cases in future. Training courses are held to teach our collected in Norway. own forest workers and hired contractors about biodiversity.

9 z Energy. More than 80% of the energy consumed at Energy Norske Skog shall: Norske Skog mills is based on renewable energy ● be among the leaders in sources which do not pollute the environment. the international forestry sector with respect to the utilization of renewable, non-polluting energy resources.

● actively promote energy conservation. The forest industry is an energy-intensive industry. Con- as well as black liquor from Norske sumption of energy at the Group's mills totalled 10,300 GWh Skog Tofte. The black liquor from in 1996; of this, 8,750 GWh was used by the mills in Norway. Tofte is incinerated in a soda boiler, where chemicals are recovered and which produces highly valuable thermal “..Norway’s largest producer energy, which is used in processing. Together with bark- of bioenergy by far ...” burning, these facilities make Tofte self-sufficient in energy. Norske Skog is by far the largest producer of bioenergy Norske Skog covers nearly half of its total energy needs in Norway and its bioenergy output is set to increase further from its own production and heat recovery. In 1995 the com- in the near future. In 1996, Norske Skog Saugbrugs started pany’s own production accounted for a total of 6,400 GWh. up Norway's largest biofuel boiler, the particle board mill at Of that, 5,100 GWh was thermal energy and 1,300 GWh Braskereidfoss will start up a new bioboiler in 1997, and electricity. Norske Skog Skogn will have a new, large bioboiler in operation in 1998. When all these new facilities are set in opera- Electricity tion, Norske Skog’s mills will in total have an annual gross The largest consumers of electricity are the printing paper production capacity large enough to heat more than 200,000 mills. They account for more than 80% of the Group's total detached houses. usage. The Group has Recovery of electricity to meet about The production of mechanical pulp for the manufacture of 75% of its elec- printing paper is the most energy-intensive phase of process-

Photo: Erik Sandersen tricity require- ing at the paper mills. More than half of the electricity used ments from in the pulping process is recovered in the form of steam. In external suppli- 1996, 1,500 GWh of thermal energy was recovered, and this ers. All electrici- covered about 50% of the total consumption of thermal ener- ty produced in gy at these mills. Norway comes from clean and renewable waterpower. Fossil fuel Energy consumption At Norske Skog Bruck energy supplies are based on the The Group's oil consump- by sources in 1996 company's own gas-ﬁred generating plant, with surplus heat tion in 1996 was 63,000 from the production of electricity being used as process heat. tonnes. Norske Skog This gives a very high utilization of the energy content of the Bruck used 113 million 3 gas. A signiﬁcant part of the electricity used at Norske Skog Nm of gas and 6,244 ton- Golbey comes from nuclear power plants. nes of coal, and Sande used 12,000 tonnes of Thermal energy from biofuel coal. In total, 1,850 GWh Electricity 51% Total production of thermal energy reached 5,100 GWh in was produced from fossil Recovered 12% 1996. Most of this thermal energy is produced from biofuel fuels. Bioenergy 26% Fossil fuels 11% which comes from the mills in the form of sludge and bark,

10 Transport. Every second, every day, all through the Transport Norske Skog shall: year, raw materials are being moved from the forest to ● allow environmental the mills, semi-manufactures are moving from one plant considerations to be a major factor when selecting transport solutions for to another, and finished goods are being transported to raw materials and end- customers in Norway and abroad. By road, rail and sea. products.

Every year, Norske Skog buys transport services worth nearly all freight traffic carried by the Norwegian State Railways NOK two billion. Transport costs account for ca 20% of the (NSB), excluding the ore carried on the Ofot rail line. How- Group's total operating costs. In all, some 10 million tonnes ever, the Group would like to see rail taking even a larger of goods are moved to and from our plants every year. share of the total, both for economic reasons, and to contri- The choice of transport solution depends on several fac- bute to a better environment. The rail transport for Norske tors - not least of them being the mills’ location. Other Skog corresponds to 40,000-45,000 rail freight carloads per important factors are customers’ wishes, commercial and year, and that equals no less than 200 road trailers every day environmental considerations. Reloading is time-consuming for a whole year. and costly, Norway is a long country, north to south, with great dis- Transport to/from the plants in and is there- tances between destinations. At the same time, the distances Norway (%) fore avoided to the main European markets are often large. Transport Road Sea Rail Total Timber 60 30 10 100 as much as costs are, in consequence, high. In addition, poor roads and Paper/Pulp 33 61 6 100 possible. varying road standards make transport costs higher than Sawn timber 55 15 30 100 Great efforts necessary. Road transport in Norway is, for example, 50% are made to dearer than in Sweden, because the Swedes permit lorries of ﬁnd the most rational and cost-effective transport routes. up to 60 tonnes total weight, compared with maximum 50 Customers’ wishes are important to all suppliers. In addi- tonnes in Norway. In fact, the poor standard of Norwegian tion to customers' special requirements regarding time of roads means that the average load carried is well below the delivery, some customers are also specifying - for environ- permitted 50-tonne limit. Our opinion is that this has mental reasons - how they should be delivered. We note this environmental, as well as economic, in particular from German customers. Some German custo- disadvantages. mers prefer Norske Skog as a supplier because we can deli- ver by rail. Norske Skog is today by far the largest user of freight transport by rail in Norway, and accounts for about 20% of p

11 Discharges. Since 1990 the most important discharges have been reduced by between 55% and 95%.

Discharges to water Demand) is a measure of the amount of oxygen consumed in The most important discharges from the pulp and paper the breaking down process. industry are the discharges to water from the mills. This Chlorine dioxide is used to bleach chemical pulp at waste water contains solid and dissolved organic and inorga- Norske Skog Tofte, producing relatively small amounts of nic substances. The undissolved substances (suspended chlorinated compounds. Up to mid-1992, Tofte used chlorine solids) consist of ﬁbre and particles of bark, as well as - in for bleaching, and the amount and composition of chlorin- some cases - inorganic compounds that are not easily dissol- ated compounds in the mill's waste water was considerably ved. The dissolved compounds consist mainly of wood larger, and different in character, from what it is now. material dissolved during processing, plus possible remnants Although the waste water today contains small amounts of of chemicals added during processing. these compounds, they no longer contain highly chlorinated toxic components. «..discharge-free mills is our From some mills, phosphorous is a component of waste ultimate objective...» water that can be important, and is consequently regulated by the authorities. Too much phosphorous can cause algae The composition of the waste water depends on the produc- blooms (eutrophication), particularly in lakes that are heavily tion process, bleaching method, etc. When organic material polluted by other sources. Follum and Saugbrugs are the two is broken down into CO and water, oxygen is consumed 2 Norske Skog mills which are subject to phosphorous dis- from the water. The COD parameter (Chemical Oxygen charge regulations.

Emissions to air

Emissions to air consist primarily of dust and SO2 (sulphur dioxide). All mills either already have, or are currently installing, equipment for ﬁltering out dust from exhaust

gases. Emissions of SO2 are found mainly at the mills which use sulphur in pulp production (Tofte and Sande). SO2 emissions have an acidifying effect, but the emissions from Norske Skog’s mills are relatively small, and well below permitted limits.

Combustion of fossil fuel creates SO2 and NOx emissions, both of which have an acidifying effect. However, the emissions from Norske Skog’s mills are small because the consumption of fossil fuels is low. Photo: Glenn Røkeberg

12 Discharges Norske Skog shall:

● work towards continued reductions of discharges into air and water, with discharge-free plants being the ultimate objective. ● utilize and handle waste and by-products in an environmentally and economically responsible manner.

Production and discharges in 1996 Norske Skog Follum had diffi- In 1996 there was a general reduction in output at all our culties during first-half 1996 in pulp and paper mills. Production of chemical pulp fell by 8% keeping within its discharge limits for suspended solids and and of CTMP by 33%. However, because of the take-over of phosphorus. The mill's biological waste water treatment Norske Skog Bruck from 01.01.1996, the Group’s total plant was being run in, during the year, and conditions gra- paper production increased by 18%. dually improved as the year advanced. By the end of the In the Area Building Materials, output of all products year, these discharges had been brought well within per- except parquet flooring was higher than a year earlier. Sawn mitted limits. timber was up by 12%, board by 4% and laminated products As regards emissions to air, there were small changes by 8%. Production of parquet flooring fell by 12%. from a year earlier. All our mills kept within the limits laid In 1996, we saw a marked decline in discharges of dis- down by the Environmental Authorities. solved organic substances - measured both as absolute dis- The diagram below shows changes in discharges to water charge figures (tonnes/day) and in relative figures (kg/tonne of the three most important discharge components, reckoned of product), 21% and 24%, respectively. There were only in terms of specific figures. The discharge level for chlorina- small changes in discharges of suspended solids and chlor- ted organic substances stands at 3% of its 1990 level, while inated organic substances. the corresponding levels for dissolved organic substances Apart from Sande Paper Mill and Norske Skog Follum, and suspended solids are 33% and 43%, respectively. all the Group’s mills kept within permitted discharge limits An overview of dischar- in 1996. Sande Paper Mill had problems, during the first half ges by the individual mills is of the year, in keeping within its discharge limits for both given in a separate chapter at suspended and dissolved organic substances, because the the end of this report. capacity of its waste treatment plant was inadequate. The problems were elimi- Discharges 1990 - 1996 nated when the mill's % 100 new waste treatment facility started up in 80 the second half of the 60 year. 40 c 20

0 90 91 92 93 94 95 96

COD = Dissolved organic substances SS = Suspended solids AOX = Chlorinated organic material

13 Products. A high environmental standard must be Products Norske Skog shall: a feature of our products. ● base its operations on products which can be made, used, recycled and destroyed without harming health or the environment.

All Norske Skog's products are made of wood or wood fibre. relative to their weight. Low weight means lower transport The products are largely necessary commodities used for requirements. transmission of information (printing paper) and building Wood also has very good insulating qualities. It insulates (sawn timber, flooring, board). Produced pulp not used by 400 times better than steel and 12 times better than brick. our own mills is sold as raw material for making printing This significantly reduces the need for heating in wooden paper, packaging, and household and hygiene products. buildings. Wood materials are also energy-efficient to produce (see diagram). “Wood insulates 400 times more Wood materials have excellent characteristics as regards effectively than steel and 12 times more the indoor climate. Wooden floors are much healthier than effectively than brick” carpets for allergy or asthma sufferers. Laminated board has in the past had a negative environmental reputation because Proper use of these products does not damage health or the of its formaldehyde content. This problem was solved long environment. Additives used in our production of pulp and ago, and all Norske Skog boards satisfies the most stringent paper are virtual- international requirements. In 1993, Norske Skog's particle ly non-toxic. The board became the first building material to be awarded the most important Nordic Swan environmental approval mark. additives and Pressure-impregnated materials account for about 2% of

Photo: Thue & Friis ﬁllers used by Norske Skog’s production of sawn timber. These materials Norske Skog are are treated with anti-rot chemicals, and are not dangerous in clay, dyes and normal use. After use, however, they must be deposited at an bleaching chemi- approved waste facility. cals. Norske Skog does not use chlorine gas Energy used to produce 1 cubic metre of for bleaching. various construction materials (kWh) Paper products are user-friendly, and after use they can Aluminium 150,000 be recycled or used for the production of energy. Paper bio- 141,500 degrades naturally, but if it decays in waste deposits without 120,000 adequate oxygen supply, this can create methane gas which contributes to the greenhouse effect. 90,000

Steel Building materials of wood have very good environmen- 60,000 46,000 tal characteristics. Most competing materials are based on oil 30,000 or other non-renewable resources, while wood is a renew- Wood Concrete 350 700 able material. In relation to its weight, wood is one of the 0 strongest materials in existence. Materials made of Nordic (Source: STEP/EUROFORTECH, 1994: sawn timber are 16 times lighter than steel, but 47% stronger, Environmental aspects of timber)

14 Waste. Minimising waste and recovery - key Waste Norske Skog shall: concepts in our waste policy. ● utilize and handle waste and by-products in an environmentally and economically responsible manner.

Waste production Waste disposal In the manufacture of pulp and paper, different types and Of the total waste generated, more than 60% is incinerated to amounts of waste are generated. Sludge from waste water produce energy. Total energy production from sludge and treatment plants accounts for the largest volume of waste. bark in 1996 reached 1,160 GWh, or about 20% of all heat The volume of sludge has increased signiﬁcantly during energy produced at our plants. Twentyfour per cent of waste recent years, as our plants have started operating new treat- was deposited; of this, a third was ash and other waste not ment facilities. Other waste products are production waste easily burned. Other methods of disposal included mixing such as bark, wood waste, packaging, sweepings from tim- with soil (sludge and ash), as an additive for cement produc- ber sites, ash from incineration, and some hazardous waste tion (ash), while some bark and wood waste was sold. such as oil waste, solvents etc. Hazardous waste was delivered to an approved recipient for Norske Skog’s general strategy for dealing with waste is destruction, apart from some waste oil, from our own plant, primarily to keep production of waste as low as possible, by which was incinerated in our implementing measures at the point where waste arises. own boilers, with the permission Waste disposal 1996 Thereafter, sorting of waste must be carried out, so that as of the environmental authorities. much as possible of the waste can be recycled or recovered - The drive to reduce the pro- to produce energy, for example. Efforts must be made to duction of waste will continue, deal with what remains in other ways. The goal is to maxi- and efforts are being made to mise recycling/re-use and to minimise depositing. establish and streamline sorting Total production of waste in 1996 was 680,000 tonnes, of at source at our mills. The which 55% was sludge from waste water treatment plants. amount of waste deposited is Incineration 61% expected to fall signiﬁcantly in Own dump 20% Agriculture 11% 1997, owing to the new biofuel Public dump 4% boilers which began operating Cement industry 3% Sales 1% Breakdown on the waste amounts in 1996. Waste Amount 1996 (tonnes) Sludge (35% dry matter) 373,500 Bark 208,400 Ash 48,400 Other production waste 49,100 Hazardous waste 223

15 Research. Today, scientists are developing the Research and Development basis for a cleaner tomorrow. Norske Skog shall:

● carry out research and development in environmental matters.

● support initiatives for the development of technologies which contribute to further reductions of Norske Skog’s unit for research and development – Norske a computer model is now being discharges from its plants. ● help develop further Skog Teknikk, consists of five departments within the areas prepared. knowledge about the possible effects of its operati- of mechanical pulp, paper, fibre, process management and The next phase of the project is ons on the environment. environment. Norske Skog Teknikk’s projects are carried to ascertain the standard of quality out in close co-operation with the mills. Its research budget which the recycled water must in 1996 totalled NOK 31 million, and the budget of the envi- meet, and to adapt cleansing methods in order to achieve this ronment department was NOK 5.5 million. Norske Skog standard. In this connection wet oxidisation - the incinera- also contributes NOK 10 million to the more basic research tion of organic waste at high temperature and under high which is carried pressure - has proved highly suitable. Suspended organic out at the Pulp and substances, in particular, are efficiently removed, and the Paper Research method permits recovery of process chemicals. Institute (PFI). The industry Biomass for agricultural use faces increasingly Nutrient-rich biomass (sludge) is produced by the biological strict requirements waste water treatment plants. It contains both nitrogen and regarding resource phosphorus, which are potentially valuable as agricultural use and discharges. nutrients. Experiments in greenhouses and outdoors have The ultimate goal shown this to be true. Increased harvests have been recorded is therefore to achi- after the sludge was mixed with the soil. In 1996, large-scale eve industrial production without discharges to the external experiments were conducted. Sections of a field were enri- environment, and with acceptable treatment and re-use of ched with differing quantities of biomass, before grain was waste. Norske Skog's environmental research has this as its sown. The experiments showed that four tonnes of dry slud- final goal. Below are described three main projects worked ge per dekar gave the same yield as a normal dose of com- on during 1996. plete fertiliser. The biomass is of high quality, and meets the government standards for the use of organic waste. Effluent-free paper production By the end of 1998, a system shall have been worked out for Optimalisation of biological treatment plants. producing newsprint/magazine paper without discharges to Microorganisms play a crucial role in the biological proces- water, and with a minimum of waste production. The project ses which cleanse waste water. It is a challenge to ascertain is being carried out in collaboration with Kværner Water the factors which have the greatest influence on their perfor- Systems, and is being partly funded by the authorities (SFT). mance. In co-operation with other Norwegian firms we have To achieve effluent-free paper production, water use been able, in the space of two years, to produce a tool that must first be reduced to a minimum. Thereafter, the water can perform this task. Through experiment planning and data used must be cleaned sufficiently so that it can be used analysis, the factors which are most important for optimali- again. The water flows throughout the entire production sing operation have been identified and ranked, in the plants process in a magazine paper mill have been mapped and studied. The results show that each treatmant plant is unique, physically and chemically characterized. Based on this work, and must be separately optimalised.

16 «Everything is water, if you look long enough» (Robert Creeley) Photo: Farbbild-Service

17 Organization. We organize the Group with a view Organization Norske Skog shall: to meeting environmental requirements. ● through its line organization, ensure that all of its plants set objectives and impose requirements in accordance with Norske Skog’s environmental policy

● Prepare annual environmental action plans at all of its plants The ultimate environmental responsibility lies with the tion, which is optional, is to fore- ● enhance environmental Group's President and CEO. This responsibility consists of stall, reduce and as far as possible awareness among all of its employees defining the Group's overall, long-term goals, and of ensu- remove pollution, by ensuring that ring that they are followed up and co-ordinated. the company draws up and imple- ments environmental goals and “Environment is a part of the total efficient systems of environmental line responsibility” management. EMAS set standards for EU- ECO-MANAGE- regular environmental reporting and MENT AND The most important environmental work is, and always will AUDIT the implementation of regular SCHEME be, that which is carried out operatively, in the line organi- environmental audits. zation. If the Group is to achieve its goals, environmental An international standard for responsibility must be an important and integrated part of the environmental management systems – other responsibilities involved in the line organization. ISO 14001, took effect from To define goals, and to follow up and co-ordinate the August 21, 1996. This standard can be efforts to achieve these goals, all of our larger units have adapted to all types of organizations, people, at management level, with special responsibility for and describes how an organization the environment. should work to fulfill environmental ISO 14001 Environment management systems management requirements. If environmental efforts are to be reliable and efficient, it is Our standpoint regarding EMAS and ISO 14001 important to establish routines and systems which ensure Norske Skog’s management agreed in 1995 that all relevant that environmental considerations become a natural part of units should, over time, meet the requirements of the EMAS daily operation. All units have today built up quality assu- regulation, and recommended, at the same time, that ISO rance systems which meet official standards concerning 14001 should be selected as an environmental management health, environment and safety, in accordance with the regu- system. In April 1996, Norske Skog Skogn thus became one lation for internal control. This regulation states that the per- of the first in Norway to be approved as son responsible for an activity must ensure that legislation an EMAS plant; at the same time, as the setting standards for health, environment and safety are sys- first in Norway and one of the first in the tematically followed up. world, it achieved ISO 14001 certifica- Special environmental management and environmental tion. Since then, Norske Skog Hurum audit standards - with particular focus on the external envi- has also been EMAS-approved and ronment - have been drawn up within the EU and ISO, the ISO 14001 certified, and Norske Skog international standardization organization. The EU regula- Bruck has been ISO 14001 certified. tion concerning environmental management and environ- Additional plants will follow mental audit - the EMAS system - was made applicable to f during 1997. Norway from June 2, 1995. EMAS is the abbreviation for Eco-Management and Audit Scheme. The aim of the regula-

18 Information. The world around us provides a Information Norske Skog shall: positive spur towards increasingly high standards. ● demonstrate openness in environmental matters.

● work to ensure that all types of environmental requirements are imposed on an as objective and proper basis as possible.

● prepare an annual envi- The world around us is interested in environmental issues. impacts which affect employees ronmental report in addition to the company’s Customers, environmental organizations, the press, employ- and the population in the district annual report. ees, the authorities, investors, local communities and the around the plants. general public want to be informed about the environmental Norske Skog’s policy decision that all relevant units impact and environmental characteristics of activities and should be environmentally certified through EMAS, and products. This represents, in many ways, a positive spur eventually ISO 14001, has implications for our environmen- towards constant improvements, while at the same time it tal information. Detailed public environmental reports are gives us a responsibility for providing information. Norske one of the requirements for EMAS approval. EMAS regi- Skog's goal is to provide open and sober information, which stration will thus help improve the environmental informa- should contribute to increasing people’s knowledge about tion provided by the individual plants. the company’s activities. The Group’s annual environmental report is an important “..we ourselves must provide information about both favourable and unfavourable part of this information. Norske Skog published its first environmental circumstances...” environmental report in 1990, as one of the first companies in Norway, and in the international forest industry, to do so. It is the company's policy that the mills themselves In addition to the Group’s report, the largest mills should issue both positive and negative environmental infor- publish their own environmental reports, about local mation – for instance, about accidents or production conditions resulting in discharges. There are several examples of this having happened in 1996, but there are also cases in where the information was insufficient or provided too late. This will be tightened up. Direct dialogue is also a part of Norske Skog's environmental communication. At different levels we are in regular contact with the authorities, suppliers, customers and environmental organizations regarding environmental questions. d

19 Environmental investments and operating costs. A brief survey of our environmental efforts today; what we are doing and what it costs.

Definitions in connection with the operation and maintenance of Environmental investments and environment-related opera- deposits. ting costs are not an unambiguous, well-defined concept. Those costs which we have listed as environmental costs Our largest investments in 1996 therefore represent our best judgement, on the basis of what In total, Norske Skog invested just over NOK 170 million in we ourselves regard as costs undertaken mainly in order to environmental measures in 1996. This represents about 15% achieve environmental improvements. On the investment of the Group's total investments in 1996. The largest investments related to waste treatment. At Photo: Glenn Røkeberg Norske Skog Saugbrugs, a new biofuel boiler was started up in July 1996. The boiler, which has a capacity of 70 MW, is the largest industrial biofuel boiler for energy recovery in Norway. It will incinerate all organic waste produced at the plant, in addition to purchased biofuel. This investment has put an end to all depositing of organic waste, as well as reducing consumption of fossil fuels. At Soknabruket, a new boiler has been installed, and at Våler Skurlag, an existing boiler has been extensively rebuilt. These investments were needed in order to deal with the bark and wood waste produced at these two sawmills. At Fibo-Trespo, too, a new boiler has been installed. side, this mainly covers costs relating to the construction of Exhaust gas from paper impregnation will be piped to this new waste water treatment plants, to the rebuilding and boiler and utilized as combustion air, thereby sharply redu- modification of existing treatment plants, to procurement of cing emissions of solvents. equipment for waste handling, noise abatement measures, Other major investments are the building of a third bioenergy saving, environmental monitoring equipment and reactor to treat waste water at Sande Paper Mill, the rebuild- environment-related rehabilitation. ing of the exhaust gas treatment plant at Norske Skog Bruck During the five years 1992-1996 Norske Skog invested and the initiation of work on a new bio- NOK 675 million in environmental improvement measures. logical waste water treatment About half of this was spent on biological waste water treat- plant at Norske Skog Skogn. ment plants. When this treatment plant Main outlays on the operating costs side are for chemi- starts up in the end of 1997, all of cals for waste treatment plants and sludge dewatering, treat- our printing paper mills will have ment plant maintenance and wages paid to environmental been equipped with such plants. staff and operatives at the treatment plants. Also included is This will be a milestone in expenditure on experiments and studies - for instance, to Norske Skog’s environmental map the environmental situation connected with a particular work. plant, environment-related taxes and duties, and expenditure J 20 Planned environmental investments Environmental investments Simultaneously with the construction of the new biological 1995 1996 1000 NOK 1000 NOK waste water treatment plant in Skogn, a new biofuel boiler will Norske Skog Skogn 0 15,577 also be built. This will have enough capacity to burn all organic Norske Skog Follum 43,000 1,000 Norske Skog Saugbrugs 63,705 107,620 waste produced on the site. The boiler has been budgeted at Norske Skog Golbey 0 0 NOK 167 million. Norske Skog Bruck - 6,300 Sande Paper Mill 6,100 8,131 At Norske Skog Follum, during the first half of this year, a Norske Skog Hurum 1,375 4,115 drier will be be installed to dry sludge from the waste water treat- Norske Skog Tofte 1,442 605 Norske Skog Folla 27,213 2,785 ment plant. It will cost about NOK 20 million, and is needed to Sawn timber 6,355 17,047 facilitate the incineration of all sludge produced in the mill. Board 432 115 Parquet 0 0 Much of the sludge is currently deposited at a dump. Laminated products 2,100 8,095 Total 151,722 171,390 Operating costs Environment-related Environment-related operating costs in 1996 totalled NOK 106 operating costs million. This is an increase of 36% from the previous year, if 1995 1996 1000 NOK 1000 NOK Norske Skog Bruck is included. 1996 is the first year in which Norske Skog Skogn 8,427 11,707 Bruck has been included in the accounts. If this mill is exclu- Norske Skog Follum 15,400 22,500 Norske Skog Saugbrugs 17,584 7,280 ded, the increase amounts to 11%. Norske Skog Golbey 14,497 19,654 Norske Skog Bruck - 19,463 Sande Paper Mill 13,700 16,428 Norske Skog Hurum 560 560 Norske Skog Tofte 4,401 3,225 Environment-related operating costs, Norske Skog Folla 875 2,440 broken down by type of cost Sawn timber 227 110 Board 916 1,252 Parquet 375 380 Laminated products 1,167 910 Total 78,129 105,909

Accumulated environmental investment costs 1990-1996 (Purchase price) mill.NOK

1,500 Paper Chemicals 43% Fibre Wages 16% 1,200 Building Materials Maintenance 17% Other 24% 900

600

300

0 90 91 92 93 94 95 96

21 Discharges/emissions.

Discharges to water 1996 Area Paper Water COD SS Phosphorous consumption (tonnes/day) (tonnes/day) (kg/day) (m3/day) Discharges Limit Discharges Limit Discharges Limit Norske Skog Skogn 18,145 57.7 71.0 4.1 5.5 52.6 - Norske Skog Follum 18,050 19.2/17.6 30.0/22.0 3.7/2.4 3.0/2.5 16.2 12.0 Norske Skog Saugbrugs 28,200 6.6 25.0 0.8 3.2 13.0 18.0 Norske Skog Golbey 9,076 1.5 3.0 0.1 0.8 - - Norske Skog Bruck 11,455 1.8 2.9 0.2 0.4 12.0 - Sande Paper Mill 6,000 21.0 20.0 2.5 1.9 73.0 - Norske Skog Hurum 5,551 0.8 - 0.4 0.5 0.5 -

Area Fibre Water COD SS AOX consumption (tonnes/day) (tonnes/day) (tonnes/day) (m3/day) Discharges Limit Discharges Limit Discharges Limit Norske Skog Tofte 30,000 24.4 70.0 2.0 4.0 0.15 2.0 Norske Skog Folla 5,382 8.0 18.0 0.1 0.5 - -

Emissions to air 1996

Area Paper Dust SO2 mg/Nm3 tonnes/year Emissions Limit Emissions Limit Norske Skog Skogn 10.0 50 - - Norske Skog Follum 20.0 50 - - Norske Skog Saugbrugs 43.5/7.2 100/30 - - Norske Skog Golbey 8.5 30 14.9 - Norske Skog Bruck 47.0 100 - - Sande Paper Mill 20.0 30 - - Norske Skog Hurum - - - -

Area Fibre Dust SO2 mg/Nm3 tonnes/year Emissions Limit Emissions Limit Norske Skog Tofte 78.0 150.0 405.0 1,750.0 Norske Skog Folla Not measured 200.0 - -

Area Building Materials Dust SO2 mg/Nm3 tonnes/year Emissions Limit Emissions Limit Van Severen - - - - Numedal 180 194 - - Soknabruket 107 200 - - Våler 110 200 - - Langmoen Tre 100 250 - 44.0 Østerdalsbruket - - - - Telemarksbruket - - - - Agnes 140/96 150/100 - - Kvam 121 150 - 35.0 Braskereidfoss 86 150 - 12.0 Langmoen Parkett 1 50 - - Fibo Trespo 5 - - 87.6

COD (Dissolved organic substances) – a measure of how much oxygen is consumed in breaking down the organic substances into CO2 and water. SS (Suspended solids) –include particulate organic and inorganic substances. AOX (Chlorinated organic material) – a measure of how much chlorine is bound to organic molecules. SO2 – Sulphurdioxide.

22 Inspections.

In Norway it is the State Pollution Control Authority (SFT) Acute incidents which supervises and monitors developments connected Sande Paper Mill experienced two incidents in 1996 related with the mills' external environment. Supervision is under- to the external environment. The Chief of Police in Sande taken partly via the mills' own reports to the SFT and partly received a complaint, on January 22, about unpleasant by inspections undertaken at the mills. odours from the mill. The complaint came from neighbours. The size of a mill, and its discharge potential, determine No definite cause was found. how often it is inspected. On August 18 the mill had an acute discharge of process The table below gives an overview of the mills which water which was much larger than normal. The incident was were inspected during 1996. It also lists any infringement of immediately reported to the SFT. laws and regulations which may have been noted during Norske Skog Follum received several complaints in 1996 these inspections. All such infringements have been rectified about odours and noise from the biological treatment plant, or have been cleared up with the SFT. and about odours from the deposit. Steps have been taken to In addition to the SFT inspections, the mills have their reduce these problems. own inspections, carried out by special audit teams. These On 29.04 there was an accidental discharge of impregna- inspections are made to ensure that the systems required by ting fluid at Langmoen Tre, in Brumundal. Some of the fluid the internal control regulation, ISO 14001 and EMAS, have escaped from the collection systems, and a maximum of 500 been set up and are being adhered to. litres flowed into a storm drain and from there into Lake Norske Skog Golbey was inspected three times in 1996 Mjøsa. The incident was reported to the Chief of Police in by the local “water police” (without prior notice) and three Ringsaker, and to the SFT. Technical improvements have times by the water authorities. No infringements were found been carried out, and routines have been revised. during any of the inspections. In response to a request from the SFT, a survey has been Norske Skog Bruck had its tanks and waste treatment made of the soil pollution resulting from timber impreg- plant inspected three times during 1996. No infringements nation at the old Kongsberg Bruk sawmill, now closed down. were found during any of the inspections. Norske Skog has started work to ascertain whether impregnation activity in the past has led to pollution of the soil at other sawmills. Today, all impregnating fluids are collected in systems and delivered to approved collection facilities.

Production unit Date of inspection Remarks Norske Skog Skogn 16.04.96 No infringements. Norske Skog Follum 17.–21.06.96 Deficiencies in internal control system. Basin volume too small to prevent flash discharges. Norske Skog Saugbrugs 01.02.96 Called to mill in connection with odour emission from deposit. 03.–10.06.96 Poor quality assurance of data reported to SFT. Inadequate supervision of oil waste incinerated in own plant. Sande Paper Mill 10.04.96 Called to mill in connection with odour emission. Norske Skog Tofte 13.11.96 No infringements. Norske Skog Folla 30.04.96 Deposit was not locked and cut-off ditch was partly refilled. Oil tanks inadequately protected against accidental spills. Timber cleaning plant not locked.

23 Tables.

Table 1 Table 2 Production Raw materials consumption 1996 Wood Chips 1995 1996 (m3) (m3) Norske Skog Skogn (tonnes) 494,100 483,490 Norske Skog Skogn 861,852 307,057 Norske Skog Follum (tonnes) 327,300 298,500 Norske Skog Follum 515,000 222,500 Norske Skog Saugbrugs (tonnes) 522,700 458,265 Norske Skog Saugbrugs 542,310 94,905 Norske Skog Golbey (tonnes) 228,000 223,209 Norske Skog Golbey 119,845 124,952 Norske Skog Bruck (tonnes) - 279,837 Norske Skog Bruck 161,020 - Sande Paper Mill (tonnes) 79,700 61,874 Sande Paper Mill 107,000 - Norske Skog Hurum (tonnes) 30,900 28,917 Norske Skog Hurum - - Norske Skog Tofte (tonnes) 355,700 326,277 Norske Skog Tofte 1,144,000 292,000 Norske Skog Folla (tonnes) 89,100 60,376 Norske Skog Folla 148,376 68,000 Sawn timber (m3) 512,200 556,905 Sawn timber 1,210,644 - Boards (m3) 334,100 346,843 Boards 55,000 466,000 Parquet (m2) 1,160,000 1,247,000 Laminated products - - Laminated products (m2) 2,299,600 2,476,544 Total 4,865,047 1,575,414

Table 3 Table 4 Waste paper consumption 1996 Energy consumption 1996 White Brown Total Electricity Thermal energy (tonnes) (tonnes) (GWh) (GWh) (GWh) Norske Skog Golbey 150,411 Norske Skog Skogn 2,224 1,539 685 Norske Skog Bruck 124,567 Norske Skog Follum 1,458 935 523 Sande Paper Mill 15,000 Norske Skog Saugbrugs 2,029 1,227 802 Norske Skog Hurum 3,475 Norske Skog Golbey 753 434 319 Total 278,453 15,000 Norske Skog Bruck 780 437 343 Sande Paper Mill 201 88 113 Norske Skog Hurum 106 36 70 Norske Skog Tofte 1,970 226 1,744 Norske Skog Folla 198 140 58 Sawn timber 237 61 176 Boards 280 75 205 Parquet 95 95 0 Laminated products 50 14 36 Total 10,405 5,307 5,098

Table 5 Waste production 1996 Sludge (dry) Bark Ash Other Hazardous waste (tonnes) (tonnes) (tonnes) (tonnes) (tonnes) Norske Skog Skogn 6,900 53,300 5,800 5,000 3 Norske Skog Follum 18,000 23,400 6,000 7,000 42 Norske Skog Saugbrugs 19,100 29,600 3,900 7,500 10 Norske Skog Golbey 29,000 11,500 7,700 5,100 30 Norske Skog Bruck 29,000 29,100 14,300 3,300 55 Sande Paper Mill 22,000 2,600 6,000 - 5 Norske Skog Hurum - - - 750 5 Norske Skog Tofte - 32,500 2,500 12,400 50 Norske Skog Folla 6,300 15,500 500 1,750 6 Sawn timber 200 9,900 1,700 1,000 - Boards - 1,000 - 2,950 8 Laminated products - - - 2,350 9 Total 130,500 208,400 48,400 49,100 223

24 Auditor’s report.

To the readers of the Environmental Report For further information about Norske Skog and environmental matters, We have reviewed the basis of the “Norske Skogindustrier ASA Environmental Report 1996”. The report is the responsibility of and has the following people may be contacted: been approved by the Board of Directors.

We have performed the procedures set out below, which were agreed with Rune Andersen, Norske Skogindustrier ASA management: Corporate Environmental Manager 1. Assess whether the environmental issues presented in the Environmental Tel.: +47 67 59 90 00 Report includes those external environmental impacts that, in our opinion, Fax: +47 67 59 91 92 are material at Group level. e-mail: [email protected] 2. Assess the procedures used to collect information on material environmental impacts from those production units included in the Environmental Petter Haugan, Report. Corporate Communications Manager 3. Assess whether the information obtained from the production units has Tel.: +47 74 08 70 00 been compiled correctly and presented appropriately. Fax: +47 74 08 71 00 4 Assess whether the information in the Environmental Report is con- e-mail: [email protected] sistent with relevant information in the 1996 annual accounts for Norske Skogindustrier ASA.

5. Assess the disclosure in the Environmental Report of environmental investments and costs.

We were not engaged to assess the information collected from the production units.

Conclusion

In our opinion the Norske Skogindustrier ASA Environmental Report 1996 is based on information collected with due care from the production units. The information in the Environmental Report is presented in an appropriate manner and it is our opinion that the report discloses information on environmental issues that is material at Group level.

Oslo, March 12, 1997

Deloitte & Touche Statsautoriseret Revisionsaktieselskab

Preben J. Sørensen State Authorised Public Accountant

25 Table of contents.

This is Norske Skog p. 1 Preface p. 2 The life cycle concept p. 4 Environmental challenges p. 5 Environmental policy p. 6 Forestry and raw materials p. 8 Energy p.10 Transport p.11 Discharges p.12 Products p.14 Waste p.15 Research p.16 Organization p.18 Information p.19 Environmental investments and operating costs p.20 Discharges from the Group's plants p.22 Inspections p.23 Tables p.24 Auditor’s report p.25

The information in this environmental report is based on data supplied by many production plants. Although great efforts have been made to ensure that the information is not incomplete or misleading, some uncertainty may be attached to the statistical material. Norske Skogindustrier ASA Environmental Report 1996

Norske Skog shall be known for its high standards in all environmental matters, and in the utilization of natural resources related to its operations. Norske Skogindustrier ASA

Head Office N-7620 Skogn Tel.: +47 74 08 70 00 Fax: +47 74 08 71 00

Corporate Center Vollsveien 9-11 N-1324 Lysaker Tel.: +47 67 59 90 00 Fax: +47 67 59 91 81 http://www.norskeskog.no

Papir 150 gr Caravelle. Preparation: Norske Skog Teknikk · Arr.: Trondheim Reklamebyrå Print: Lade Offset.