SUSTAINABILITY REPORT 2015
A COMPANY OF REAL FIBRE ABOUT THIS REPORT DATA This Environmental Sustainability Report is our Data are collected and presented in accordance first report as Oji Fibre Solutions and continues with the following GRI Core Environmental our previous environmental performance reporting Performance Indicators: (since 2007) under different ownership. EN1 Materials used by weight or volume EN3 Direct energy consumption by primary SCOPE energy source EN4 Indirect energy consumption by primary This report covers the calendar year 2015 and energy source includes environmental performance data for the EN8 Total water withdrawal by source manufacturing operations of Oji Fibre Solutions. EN16 Total direct and indirect greenhouse gas Manufacturing operations are defined as Kinleith emissions by weight (Scope 1 and Scope 2) Mill, Tasman Mill, Penrose Mill, Packaging AUS EN21 Total water discharge by quality and Packaging NZ. Environmental performance and destination data are not presented for the service-focused EN22 Total weight of waste by type and sectors: Corporate Offices, Fullcircle and Lodestar. disposal method People and safety data covers manufacturing Due to shared wastewater treatment infrastructure, operations and the service-focused sectors. People certain effluent data presented for the Tasman Mill data includes permanent full-time and part-time include those from the neighbouring newsprint employees only. operation owned and operated by Norske Skog Tasman. These are identified in the notes to the REPORTING STANDARDS data tables. Greenhouse gas (GHG) emissions are reported according to the GHG Protocol(1), published by the DATA TRENDS AND RESTATEMENTS World Resources Institute and the World Business No adjustments to the bases were required in 2015. Council for Sustainable Development. We have No restatements have been required or made for referred to the Global Reporting Initiative (GRI) previously reported data. Sustainability Reporting Guidelines(2) for guidance only in the production of this report. This report contains Standard Disclosures from the GRI Sustainability Reporting Guidelines.
(1) The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard www.ghgprotocol.org/standards/corporate-standard (2) Global Reporting Initiative (GRI). Sustainability Reporting Guidelines www.globalreporting.org Oji Fibre Solutions - SUSTAINABILITY REPORT 2015
We are...
YOUR TRUSTED PARTNER
PAGE 15: Relationships are at the heart of our business.
BUILT ON STRENGTH
PAGE 23: Our strength comes from softwood pinus radiata fibre.
FUTURE FOCUSED
PAGE 31: Our business, environment, people and the communities in which we operate.
INNOVATIVE
PAGE 43: Continually working to raise the standard of our service and products.
INTRODUCTION 1 Oji Fibre Solutions - SUSTAINABILITY REPORT 2015
A MESSAGE FROM THE CEO
The year 2015 was about continuing We continue to work as hard as we DR JON RYDER our integration into the Oji family. can to ensure all our people are CHIEF EXECUTIVE OFFICER (CEO) A key part of this was the launch safely home every day. Oji Fibre Solutions of our new name and identity, Of course, environmental issues defined by the four themes remain central to our identity. covered in this report: trusted For me, the highlight is our energy partner, built on strength, future information. In 2015, the year of a focused and innovation. I believe potentially significant international these words celebrate who we climate change agreement made are and the company we aspire between 195 counties in Paris, we to be. A company with fresh ideas can proudly report our energy use is and optimism, built on a strong 80% renewable – a strong basis for heritage and proud to take our a healthy low-carbon future. parent company’s forward-thinking principles of quality, innovation I hope you take the time to read and sustainability. this document. We believe it is important to share this information This year, our report has a broader with all our stakeholders. content, reflecting the issues we think are important. We have a new section on our people, including a report on our health and safety record. People are our most valuable resource, and their health and safety continues to be a priority for us. As a business with high-hazard work environments, we welcome the intent of reforms to New Zealand’s health and safety legislation introduced in 2015.
2 INTRODUCTION Oji Fibre Solutions - SUSTAINABILITY REPORT 2015
A MESSAGE FROM THE VICE PRESIDENT
MIKITO TERAUCHI This report presents sustainability The environmental challenge VICE PRESIDENT information for Oji Fibre Solutions from our parent company, Oji Fibre Solutions and complements the wider group Oji Holdings, is to continue sustainability report prepared to reduce emissions, strive to by Oji Holdings. Reporting this eliminate waste from landfill information is in line with Oji’s goal and to achieve full compliance to move ‘Beyond the Boundaries’ with all our regulatory obligations. as well as their aspiration for ‘zero At Oji Fibre Solutions we are environmental burden’. proud to take up that challenge. As part of the Oji Fibre Solutions The Oji Group Report can be found team, it is my wish that we build at www.ojiholdings.co.jp/english. on our existing success, our relationships with our customers and stakeholders, and develop into a leading performer. Leadership is not only about business performance. Needless to say, safety is the essential factor for the business. Quality, environmental performance and compliance are also very important.
INTRODUCTION 3 Oji Fibre Solutions - SUSTAINABILITY REPORT 2015
WE ARE WORKING FOR A SUSTAINABLE FUTURE
2015 300,817 HIGHLIGHTS TONNES recovered fibre collected by Fullcircle in 2015, 209,844 used in our mills.
MANUFACTURING OPERATIONS: 2015 ENERGY SOURCES KINLEITH
Energy from AND TASMAN biomass 75.1% MILLS % each generates a % % 80Renewable significant proportion 46 39 energy 2015 internal electricity 2015 internal electricity Energy from of their electricity generation generation geothermal steam requirements internally. KINLEITH MILL TASMAN MILL 4.9%
4 INTRODUCTION Oji Fibre Solutions - SUSTAINABILITY REPORT 2015
1,650 Products are sold to over EMPLOYEES Located in... – New Zealand: 1,407 – Australia: 235 – China, Hong Kong, Malaysia: 8 25COUNTRIES
PEFC™ AND FSC® % CERTIFICATION FEMALE EMPLOYEES achieved for Kinleith and 9% of and Tasman Mills. 17 our senior managers are female.
INTRODUCTION 5 Oji Fibre Solutions - SUSTAINABILITY REPORT 2015
WE ARE A NEW COMPANY WITH STRONG ROOTS
Oji Fibre Solutions is one of Australasia’s leading producers of market pulp, paper and fibre-based packaging. We are a company with fresh ideas, optimism and innovative thinking. One that is built on a solid heritage, with customers both old and new.
Our people are passionate, with a can-do approach and positive attitude. We are a company committed to delivering innovative, environmentally sustainable products that not only connect with the needs of our customers, but help make their lives better.
6 INTRODUCTION Oji Fibre Solutions - SUSTAINABILITY REPORT 2015
OUR BRAND YOUR TRUSTED PARTNER We are trusted by our communities, customers and stakeholders. VALUES Relationships are at the heart of our business. Our customers can trust our products to be reliable, high quality and safe because our people are the best at what they do. At Oji Fibre Solutions, we are: BUILT ON STRENGTH Our products are made from one of the strongest fibres in the world, New Zealand-grown pinus radiata. Combine that with our heritage, our connection with an inspirational global company and our great people and you get a very strong combination.
FUTURE FOCUSED We look towards the future and welcome change. We are proud to be a business built on renewable and low carbon resources. We aspire to zero environmental burden. We respect our communities. We aim to improve prosperity and wellbeing wherever we work. Our business is here for the long term.
INNOVATIVE The success of our customers, the standard of our products, the shape of the future. All these things depend upon our ability to innovate. We are proud to have a strong commitment to research and development.
INTRODUCTION 7 Oji Fibre Solutions - SUSTAINABILITY REPORT 2015
We are proud to take our parent company’s forward- WE ARE A thinking principles of quality, innovation and sustainability, COMPANY OF and apply them to our operations in New Zealand REAL FIBRE and Australia. We are a major manufacturer of kraft market pulp, containerboard and a wide range of packaging material. We supply to customers all over the world.
MARKET PULP PAPER RECYCLING We produce kraft market pulps at Fullcircle is our recycling service, our Kinleith and Tasman Mills for supplying recovered fibre to our mills. use in various boards, tissues and specialty products. LOGISTICS Lodestar is our logistics business, CONTAINERBOARD delivering shipping and domestic We produce kraft and recycled transport solutions to global markets. containerboards to be converted into packaging products.
PACKAGING Our eight converting sites provide smart packaging solutions – boxes, multiwall bags, specialty boards and paper cups.
8 INTRODUCTION Oji Fibre Solutions -- SUSTAINABILITYSUSTAINABILITY REPORT 2015
INTRODUCTION 9 Oji Fibre Solutions - SUSTAINABILITY REPORT 2015
OUR CUSTOMERS: RECOVERED VIRGIN Products are sold to over FIBRE: FIBRE: 25 countries. Industries 209,844 3,521,473 we service include: tonnes utilised tonnes. horticulture, at our mills. dairy, meat, seafood, beverage, construction and personal care.
RECOVE RED FIBRE S R R E U M WE ARE AN O O
T S INTEGRATED U LLCIRCL C FU E BUSINESS VIRGIN FIBRE
From virgin fibre to L O R S packaging product. M D A EST N A R O I C R U O K T E O A N T R T PU E A LP P IN E O P R A BO C ARD KA GI NG
3 PULP AND PAPER MILLS: Kinleith Mill, Tasman Mill, Penrose Mill. We use our pulp and Our mills containerboard use elemental as raw chlorine-free materials for (ECF) bleaching our packaging processes. products as 8 PACKAGING well as selling OPERATIONS them directly to in New Zealand customers. and Australia.
10 INTRODUCTION Oji Fibre Solutions - SUSTAINABILITY REPORT 2015
OUR LOCATIONS
• NEW ZEALAND Auckland Hamilton Mount Maunganui Rotorua Tokoroa Kawerau Levin Christchurch • AUSTRALIA Melbourne Sydney Brisbane • CHINA Shanghai • HONG KONG Hong Kong • MALAYSIA Kuala Lumpur INTRODUCTION 11 Oji Fibre Solutions - SUSTAINABILITY REPORT 2015
BEYOND THE BOUNDARIES
Beyond Boundaries The Oji Group is Signifies boundaries strongly committed to of all kinds – those transcending traditional between business and conventional domains, those Oji Group ‘Management Philosophy’ boundaries, moving between countries, proactively beyond those between • Creation of innovative values them to advance into individual employees • Contribution to future and the world the future. and their respective • Harmony with nature and society capabilities.
Oji Holdings and Innovation Network Corporation of Japan OUR NEW (INCJ) are our new owners. They bring history, expertise, OWNERS innovation and investment to Oji Fibre Solutions. OJI HOLDINGS Our largest shareholder, Oji Holdings, was founded in 1873, in Tokyo, Japan, and has grown to become one of the largest pulp and paper companies in the world. The Oji Group includes 158 consolidated subsidiaries in 17 countries worldwide across Asia, Australasia, Europe and the Americas. For more information go to www.ojiholdings.co.jp/english.
INNOVATION NETWORK CORPORATION OF JAPAN (INCJ) INCJ is a corporation sponsored by the Japanese Government and private enterprises aimed at promoting innovation and enhancing the value of businesses in Japan. INCJ provides financial, technological and management support to promote the creation of next-generation businesses through ‘open innovation’ achieved by increasing the flow of technology and expertise beyond the boundaries of existing organisational structures. INCJ has over 100 current investments. For more information go to www.incj.co.jp/english.
12 INTRODUCTION Oji Fibre Solutions - SUSTAINABILITY REPORT 2015
OJI GROUP ENVIRONMENTAL ASPIRATIONS • Limitless challenge to zero environmental burden – Zero emissions – Sustainable forest management/ paper recycling • Responsible raw materials procurement • Sustainable forest management
INTRODUCTION 13 Oji Fibre Solutions - SUSTAINABILITY REPORT 2015
CONTAINERBOARD
409,895 PACKAGING TONNES PRODUCTS 175,293 TONNES
MARKET PULP 530,309 TONNES OUR PRODUCTS Created for our customers by our people
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WE ARE YOUR TRUSTED PARTNER
Our customers can trust our products to be reliable, high quality and safe.
TRUSTED PARTNER 15 Oji Fibre Solutions - SUSTAINABILITY REPORT 2015
We produce a range of market kraft pulps, each of which has MARKET PULP particular attributes for our customers’ specialist end uses.
HI WHITE™ is a bleached radiata and is designed for tissue pine kraft pulp valued by customers products where both softness and for its consistency, strength strength are important qualities properties, bulk and brightness. for end consumers. Produced at both the Kinleith is a wood pulp used in and Tasman Mills, HI WHITE™ has a K25™ the production of high-quality strong reputation with Asia-Pacific cement-based building boards. paper-makers for suitability in Developed and manufactured over applications such as coated and many years at both the Kinleith uncoated printing and writing and Tasman Mills, these days it is papers, bleached paperboard, produced only at Tasman Mill on filter papers and tissue products. a dedicated pulp line and dryer. HI WHITE LCP™ brand of bleached Customers value the special fibre radiata pine kraft pulp is produced properties together with the very from specially selected woodchips. tightly controlled quality parameters It is produced at the Tasman Mill and product consistency.
“Relationships are at the heart of our business. Relationships are built on trust and we take that very seriously.” Mike Meiring Vice President Pulp Sales & Marketing
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“Customers trust us to deliver quality product, consistently. We do this because we have a great fibre to work with and because we have a great culture with committed people who’ve always put the customer first.” Phil Lawton Vice President Paper Sales & Marketing
CONTAINERBOARD We produce a range of kraft and recycled fibre-based containerboards for conversion into packaging products.
HI GOLD™ is a premium light Containerboard products from shade, high-strength liner for Kinleith Mill meet the requirements performance packaging with of US 21CFR176.170c for contact superior visual appeal. with dry, moist and fatty foodstuffs in applications requiring filling is a high-strength white GRAPHIX™ or pasteurising at temperatures liner that delivers quality graphics. below 212˚F (100˚C). Testing for CLIMATE™ is a high-performance heavy metals and a range of other medium for use in high-humidity, substances such as those covered cool-store environments. by EU Directive 2011/65/EU on the restriction of the use of certain ECOFLEX™ is a fully recycled hazardous substances in electrical medium for use in standard and electronic equipment (RoHS), packaging environments. and the European Parliament and ECOKRAFT™ is a kraft and recycled Council Directive 94/62/EC on liner for performance in standard packaging and packaging waste packaging conditions. also reconfirms our product safety.
TRUSTED PARTNER 17 Oji Fibre Solutions - SUSTAINABILITY REPORT 2015
We pride ourselves on providing smart packaging solutions PACKAGING for our customers.
CARDBOARD PACKAGING SPECIALTY BOARDS We produce a comprehensive selection Our specialty boards are used in of cardboard products for numerous the manufacture of heavy-duty industries including horticulture, packaging, packaging for frozen dairy, meat, beverage, seafood, and chilled products, point-of-sale reseller and industrial manufacturing. displays, solid fibre slipsheets and bulk bins. PAPER BAG We specialise in complex multi-ply PAPER CUPS bags where product integrity and We manufacture paper cups for efficient distribution are critical, a range of food and beverage supported by high-quality graphics. products and other products which Our product range includes bags for benefit from being presented in the dairy, cement, flour and sugar well-designed packaging. industries, from 5kg sizes through to 50kg industrial bags.
“This is an exciting time for Oji Fibre Solutions Paper Bag as we “As a team we take great pride near the completion of our major in providing quality packaging capital upgrade. This will give us products and service to all of the ability to offer a first-class our customers, to assist them to dairy packaging solution produced compete and win in the global in a state-of-the-art facility with business environment.” unparalleled levels of traceability.” Grant Fitzgibbon Tim Fahey General Manager General Manager Packaging NZ Paper Bag
“Our customers can trust that, every day, our people strive to provide products and services which differentiate our customers from their competition.” Nick Molloy General Manager Packaging AUS
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TRUSTED PARTNER 19 Oji Fibre Solutions - SUSTAINABILITY REPORT 2015
Oji Fibre Solutions actively participates in public WE discourse and engages with industry bodies. We also COLLABORATE make submissions to the Australian and New Zealand WITH THE WIDER Governments at both central and state or regional levels, where it is relevant to the business and in the interests INDUSTRY of our customers.
WE ARE ACTIVE MEMBERS OF: AUSTRALIAN PACKAGING COVENANT (APC): WOOD PROCESSORS & MANUFACTURERS ASSOCIATION The APC has been in effect from (WPMA) OF NEW ZEALAND: 1 July 2010. The covenant focuses on improved packaging design, The WPMA brings together all parts ‘away from home’ recycling, of New Zealand’s wood supply litter reduction and increased chain in one industry organisation engagement across the supply to give strength and unity to the chain through product stewardship. challenges facing the industry. OTHER MEMBERSHIPS INCLUDE: AUSTRALASIAN PULP AND PAPER INDUSTRY TECHNICAL • Wood Council of NZ Inc, ASSOCIATION (APPITA): • New Zealand Forest Owners Appita facilitates the network Association, of stakeholders to advance the • Packaging Council of technical capability and expertise New Zealand, of the Australian and New Zealand pulp and paper industry. • Major Electricity Users’ Group,
NEW ZEALAND PAPER FORUM: • The Chartered Institute of Logistics and Transport, The New Zealand Paper Forum was established with a mandate to • Bioenergy Association, represent the interests of all parts • New Zealand Forest Certification of the paper supply chain from Association. manufacturers and importers to printers, publishers and recyclers.
20 TRUSTED PARTNER Oji Fibre Solutions - SUSTAINABILITY REPORT 2015
OUR CERTIFICATIONS & STANDARDS • ISO 9001:2008-certified Quality Management Systems at all Oji Fibre Solutions manufacturing sites. • ISO 14001:2004-certified Environmental Management System at Tasman Mill. • Forest Stewardship Council® (FSC®) Chain of Custody certification for pulp at both the Kinleith and Tasman Mills, and for paper at Kinleith Mill. • Programme for the Endorsement of Forest Certification (PEFC™) Chain of Custody certification for pulp at both the Kinleith and Tasman Mills, and for paper at Kinleith Mill. • ISO 22000:2005-certified Food Safety Management System at Packaging NZ – Northern, Central and Southern. • Hazard Analysis and Critical Control Point (HACCP) compliance at Paper Bag and Foodservice Packaging. • We are an Accredited Employer at tertiary level of ACC’s Partnership Programme. • AS/NZS 4801:2001-certified Occupational Health and Safety Management System at Packaging AUS – Lansvale and Noble Park sites.
TRUSTED PARTNER 21 Oji Fibre Solutions - SUSTAINABILITY REPORT 2015
PAPER PRODUCTS(1)
MARKET PULP 195,660 TONNES 9,538 RECOVERED FIBRE TONNES 209,844 TONNES
VIRGIN WOOD
3,521,473 TONNES
OUR FIBRE INPUTS A company with strong roots
(1) Paper products include: Paper, containerboard, wrapping, cores.
22 BUILT ON STRENGTH Oji Fibre Solutions - SUSTAINABILITY REPORT 2015
WE ARE BUILT ON STRENGTH
Our strength comes from softwood pinus radiata fibre.
BUILT ON STRENGTH 23 Oji Fibre Solutions - SUSTAINABILITY REPORT 2015
OUR FIBRE TOPLOG 2 Used for pulp Oji Fibre Solutions requires all suppliers to be in compliance with relevant legislation and with the company’s wood- sourcing policy. TOPLOG 1 Used for pulp, Wood for our pulp and paper mills timber products comes from exotic plantation-grown forests in the North Island region of New Zealand. These wood supplies consist of residues from other parts of the forest industry, including low-value logs and sawmill waste such as slabwood and toplogs.
SLABWOOD Used for pulp
RESPONSIBLE SOURCING SAWLOG 2 OF VIRGIN FIBRE Used for timber products, building To provide surety of the furniture integrity of our products to our customers, our fibre is subject to a due diligence process to ensure it complies with international SLABWOOD illegal logging laws. Used for pulp
We obtain as much wood as is practicable from FSC® and/or PEFC™-certified forests, with the balance meeting the eligibility input SAWLOG 1 requirements for mixed sources. Used for timber products, building furniture
24 BUILT ON STRENGTH Oji Fibre Solutions - SUSTAINABILITY REPORT 2015
Kinleith and Tasman Mills have both FSC® and PEFC™ OUR Chain of Custody certification. This ensures the wood CERTIFICATIONS can be tracked from the point of harvest through to the finished product delivered to our customers.
FSC® and PEFC™ have set standards For more information on FSC® for forest management to protect and PEFC™ please refer to: environmental, social and economic https://ic.fsc.org/en values. Independent auditors certify that forests meet these standards. http://pefc.org/. Kinleith and Tasman Mills source as much of their wood as is practicable from FSC®-certified sources, with the balance meeting the standards to prevent the use of unacceptable material.
Our Wood Sourcing Policy adheres to the FSC® and WOOD PEFC™ goal of avoiding the procurement of wood fibre SOURCING from unacceptable wood sources, including: POLICY • Illegally harvested wood, • Wood harvested in forests being converted from natural and • Wood harvested in violation semi-natural forest plantations of traditional and civil rights, or non-forest use, • Wood harvested in forests in • Wood from forests in which which high conservation values genetically modified trees are threatened by management are planted. activities,
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26 BUILT ON STRENGTH Oji Fibre Solutions -- SUSTAINABILITYSUSTAINABILITY REPORT 2015
COMMON QUESTIONS
Does the use of virgin fibre Oji Fibre Solutions’ use of virgin fibre does not impact on native deplete native forests? forest. Our pulp and paper mills source wood from plantation- grown, introduced species of trees, purpose-grown in a tree-farming environment. These designated tree farms displace the felling of natural forests both in New Zealand and overseas.
Is 100% recycled fibre- Yes; 100% recycled fibre-based packaging can be suitable for based packaging suitable direct food contact, subject to for direct food contact? appropriate controls and testing. 100% recycled fibre-based packaging is currently used in a number of direct-contact applications by consumer product companies.
Do tree plantations mean No; Oji Fibre Solutions’ forestry suppliers have statutory obligations an end to biodiversity? and industry agreements to protect wildlife populations within their forest estates. Independent research has identified a wide range of rare and threatened species living within plantation-grown forests.
Can paper be made entirely Yes; some papers are manufactured using only recycled fibre. One from recycled fibre? example is the corrugating medium made at our Penrose Mill. Many papers contain both virgin and recycled fibres in varying proportions, managed according to end-use requirements. There are good reasons to use at least a proportion of virgin fibre in some papers. For example, selective use of stronger virgin fibres is managed to achieve desired strength-to-weight ratios of fibre-based packaging. Even if fibres were never to ‘wear out’, there will always be a need for virgin fibre for some end uses and to allow for supply-chain losses such as consumable paper products.
What is the relationship Trees absorb C02 as they grow. After harvest, they release emissions when between forest products wood products degrade or where and the carbon cycle? wood is burned as a fuel. If forests are managed sustainably there is a balance between absorption and emissions and the net impact is neutral. If areas of sustainable forests increase, the net effect is to reduce greenhouse concentrations and mitigate climate change.
BUILT ON STRENGTH 27 Oji Fibre Solutions - SUSTAINABILITY REPORT 2015
FULLCIRCLE 300,817 209,844 We operate New Zealand’s TONNES TONNES largest paper RECOVERED FIBRE RECOVERED FIBRE recycling business collected by utilised by Kinleith and Penrose Mills – Fullcircle. Fullcircle in 2015. for conversion into containerboard products in 2015.
The collection and recovery of reusable paper are valuable SOURCING phases of our operations. HIGH-QUALITY Fullcircle provides a range of Recycled fibre is used, for example, RECOVERED recycling services for businesses in our ECOFLEX™ medium and and households throughout New ECOKRAFT™ containerboard FIBRE Zealand. In 2015, 300,817 tonnes product, which we and other of recovered paper was collected, manufacturers convert further 209,844 tonnes of which was used into a range of packaging products. in the Kinleith and Penrose Mills Waste from our packaging sites for conversion into containerboard is also collected by Fullcircle and products. The balance was either returned to our paper mills for sold domestically for reuse by other manufacture into containerboard, businesses or exported. thereby continuing the fibre cycle.
28 BUILT ON STRENGTH Oji Fibre Solutions -- SUSTAINABILITYSUSTAINABILITY REPORT 2015
DID YOU KNOW?
• Paper and cardboard can be recycled many times, typically estimated at between five and eight cycles, after which the fibres making up paper ‘wear out’. • New (virgin) fibres need to be introduced into the paper-making process to make up for permanent removals and maintain the supply and performance of the finished products.
BUILT ON STRENGTH 29 Oji Fibre Solutions - SUSTAINABILITY REPORT 2015
TOTAL PRIMARY ENERGY SUPPLY It shouldn’t cost the earth
OJI FIBRE SOLUTIONS % 80.0 RENEWABLE ENERGY
NEW ZEALAND(1) % 39.5 RENEWABLE ENERGY
THE WORLD(3) %
AUSTRALIA(2) 13.8 RENEWABLE RENEWABLE % ENERGY ENERGY 5.9 (HYDRO, SOLAR, RENEWABLE WIND, BIOMASS, ENERGY GEOTHERMAL STEAM)
NON- RENEWABLE ENERGY (NATURAL OJI FIBRE GAS, COAL, OIL, SOLUTIONS NUCLEAR) % 20.0 NON- RENEWABLE ENERGY
NEW ZEALAND(1) % 60.5 NON- RENEWABLE ENERGY
THE WORLD(3) % 86.2 AUSTRALIA(2) NON- Sources: RENEWABLE (1) Energy in New Zealand 2015 (MBIE www.mbie.govt.nz) % (2) 2015 Australian Energy Update, August 2015 (Bureau of ENERGY Resources and Energy Economics: www.bree.gov.au) 94.1 (3) Key World Energy Statistics 2015 (International Energy NON- Agency: www.iea.org) RENEWABLE ENERGY
30 FUTURE FOCUSED Oji Fibre Solutions - SUSTAINABILITY REPORT 2015
WE ARE FUTURE FOCUSED
We take a long-term view of our business, our environment, our people and the communities in which we operate.
FUTURE FOCUSED 31 Oji Fibre Solutions - SUSTAINABILITY REPORT 2015
POWERING OUR OPERATIONS FROM SUSTAINABLE ENERGY SOURCES
Our energy % consumption 80 2015. RENEWABLE ENERGY Biomass, geothermal steam*
BIOMASS 75.1%
PURCHASED GEOTHERMAL STEAM 4.9%
PURCHASED ELECTRICITY 6.5%
PURCHASED STEAM 1.0% NATURAL GAS 10.5% OIL-BASED FUELS 1.7% COAL 0.3%
*Contribution from purchased electricity is not included
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356,691,333 KINLEITH AND kWh TASMAN MILLS total internal each generates a significant 46% 39% electricity generation. proportion of their electricity 2015 internal electricity 2015 internal electricity generation generation requirements internally. KINLEITH MILL TASMAN MILL
PURCHASED NEW ZEALAND (2015) (1)(2) AUSTRALIA (2013/14) (3) WORLD (2013) (4) Geothermal 16.8% Biomass 1.4% Geothermal/ 5.7% wind/solar/ ELECTRICITY Wind 5.4% Wind/solar 6.1% biomass/waste GENERATION BY Biomass 1.5% Hydro 7.4% Hydro 16.3% Hydro 56.3% Natural gas 21.9% Natural gas 21.7% ENERGY SOURCE Natural gas 15.6% Oil 2.0% Oil 4.4% Oil 0.1% Coal 61.2% Coal 41.3% We source 96.0% of our Coal 4.3% 14.9% Nuclear 10.6% of electricity generated total purchased electricity 80.0% from renewable energy 22.0% of electricity generated of electricity generated from New Zealand, with from renewable energy from renewable energy the remaining 4.0% from Australia.
Sources: (1) Data for 12 months ending 30/09/2015 (2) New Zealand Energy Quarterly; December Quarter 2015 (MBIE www.mbie.govt.nz) (3) 2015 Australian Energy Update, August 2015 (Bureau of Resources and Energy Economics: www.bree.gov.au) (4) Key World Energy Statistics 2015 (International Energy Agency: www.iea.org)
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Oji Fibre Solutions has always strived to use and manage RESPONSIBLE water in a responsible manner. In New Zealand, our mills MANAGEMENT have a responsibility to use, treat and monitor water in OF WATER accordance with their environmental consents under the Resource Management Act (RMA). RESOURCES Our operations are large users of WATER OUT: water. However, net consumption is Kinleith and Tasman Mills discharge only a small amount of the water we WATER IN: treated process water into take in; the majority is treated and local rivers. The discharges are MANUFACTURING OPERATIONS: returned to the source catchment. 2015 SOURCES OF WATER subject to strict resource consent requirements. They are regularly WATER USE: Surface water 80% monitored and reported for a (i.e. streams Water is used and reused in all our range of parameters including total and rivers) major process stages, from log suspended solids, biochemical Ground water 19% debarking to chip washing, pulp oxygen demand and colour. (i.e. aquifers) washing and screening, and in the paper machines. Water is also used Our other operations manage waste Municipal 1% for process cooling, equipment water to meet the standards required supply cleaning and general facilities for discharge into the council- operations, and to generate steam provided trade waste systems. for use in processes and on-site power generation.
Oji Fibre Solutions recognises that effluent colour discharges TASMAN MILL at Tasman Mill are an amenity concern for the local EFFLUENT community, so colour reduction is a continuing priority.
COLOUR Tasman Mill manages its wastewater The regulated target is 10 tonnes treatment infrastructure with the per day (Pt-Co Equivalent) by 2035, REDUCTION neighbouring newsprint operation, and we are currently ahead of our Norske Skog Tasman. We are target for 2018. In 2015, the 30-day PROGRAMME committed to a colour reduction average colour load was 14.3 tonnes programme with an ambitious per day (Pt-Co Equivalent), more target to reduce colour by two- than 42% lower than it was in 2007, thirds from 2010 levels by 2035. and well below the regulatory limit of 31 tonnes per day.
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WASTE % DIVERTED 49 % 209,844 waste diverted TONNES from landfill* UP 7 FROM 2014 recovered fibre utilised by Kinleith *This excludes wood waste and Penrose Mills for conversion into and landfill cover material containerboard products in 2015.
Oji Fibre Solutions is a major MANUFACTURING OPERATIONS: DIVERTING 2015 WASTE DESTINATIONS user and recycler of both its WASTE FROM own waste and waste from To recycle 36% customers and others. To compost 13% LANDFILL To landfill 51%
Hazardous waste 0.05%
Kinleith and Tasman Mills produce two wood-based BYPRODUCTS byproducts from the kraft pulping operations, which are sold for other industrial uses: crude tall oil, a precursor for a range of industrial chemicals and resins; and crude sulphate turpentine, for refining and use in the production of a wide range of chemicals from perfume bases to disinfectants.
BIOMASS – WOODWASTE The balance is comprised of Total woodwaste used for secondary waste residues energy is 465,227 tonnes, of from external sawmilling and which approximately a third is forestry activities. site- generated from our chipping and debarking operations.
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1.03 LOST TIME INJURY RATE (LTIR) 0FATALITIES frequency rate of accidents resulting in FY 2015 lost work time.(1)
OUR PEOPLE We are committed to the safety, health and wellbeing of every person who works with us. Our worksites are high- SAFELY HOME hazard work environments where the highest level of EVERY DAY industry safety performance is critical.
We welcome the new health and overall by making better lifestyle safety legislation and the raised choices. The Challenge begins and level of awareness this places on all ends with a Vital Body Scan with employers, including our partners, full Body Composition Analysis, to make sure that everyone who and includes a personalised gym works and contributes to the programme and personal trainer success of Oji Fibre Solutions goes once a month, fortnightly on-site home safely every day. yoga sessions, and on-site and online seminars on nutrition, sleep We believe that people perform and stress management. at their best when their individual health and wellbeing is supported. • Fit4Work: Getting a healthier lifestyle is tackled through a We are proud to offer award- Fit4Work programme which winning Wellness Programmes includes health monitoring, drugs and a selection of employee and alcohol and rehabilitation services in our workplaces. programmes; assisting in reducing WELLNESS PROGRAMMES: absenteeism and the health risk. • Wellness Challenge: Over 100 OUR EMPLOYEE SERVICES: employees sign up annually to • We offer an Employee Assistance this initiative with an employee- Programme through Stratos NZ. led committee at Kinleith Mill. • Speak Out Programme empowers The Wellness Challenge is not just our people to report safety issues. designed to inspire individuals to lose weight, but to become healthier
(1) LTIR (Lost time injuries/total work time) x 200,000 (2) TIR (Lost time injuries + restricted work injuries + medically treated injuries/total work time) x 200,000 36 FUTURE FOCUSED Oji Fibre Solutions -- SUSTAINABILITYSUSTAINABILITY REPORT 2015
DOWN % 2.14TOTAL INJURY RATE 27 frequency rate of accidents From 2014 resulting in injury.(2)
Where our people are located %
85.3NEW ZEALAND %
14.2AUSTRALIA %
0.5CHINA, HONG KONG & MALAYSIA
OUR Located in... - New Zealand: 1,407 CERTIFICATIONS: , - Australia: 235 1 650 - China, Hong Kong, • We are an Accredited Employer at tertiary level EMPLOYEES Malaysia: 8 of ACC’s Partnership Programme. • ISO 22000:2005-certified Food Safety Management System at Packaging NZ – Northern, Central and Southern. • AS/NZS 4801:2001–certified Occupational Health and Safety Management System at Packaging AUS – Lansvale and Noble Park sites. • Hazard Analysis and Critical Control Point (HACCP) compliance at Packaging NZ – Northern, Central, Southern and Specialty Board sites, Paper Bag and Foodservice Packaging.
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Our people are what differentiates us from our OUR PEOPLE competitors – they bring their great thinking, judgement IN PARTNERSHIP and commitment to work every day. When our people grow, our business grows. Together, we work to find the right development support for the individual and the sustained success of our business.
“High-performing IN 2015: businesses come from new graduates high-performing people. and apprentices. We value and recognise the momentum and 14 impact that our people permanent bring to the success of new starters. Oji Fibre Solutions.” 136 voluntary Sara Broadhurst % turnover. HR Director 6.38 37% Salaried 17% % OF TOTAL FEMALE EMPLOYEES EMPLOYEES
and 9% of our senior managers are female. 63% Waged
38 FUTURE FOCUSED Oji Fibre Solutions - SUSTAINABILITY REPORT 2015
Competenz:
293EMPLOYEES VOLUNTARILY SIGNED UP SO FAR
To meet the future needs of the business, we have promoted learning as integral to our organisation.
Oji Fibre Solutions has partnered These qualifications are currently with our industry training voluntary. We are promoting organisation, Competenz. We are this throughout the company to working together to build skills, encourage uptake. We recognise we and recognise skill levels in the are contributing to a broader success workplace through nationally for New Zealand as people will be recognised qualifications, the able to take those qualifications to National Qualification Framework. grow their careers with us, but also Current on-job skills, standard with other organisations. operating procedures (SOPs), We are proud to be an employer and health and safety inductions that supports our people to gain were mapped to the Level 2 Core additional qualifications and we Manufacturing qualification. know that our organisation is By completing the designated only successful when our people training, approximately 50% of are successful. our packaging production team in New Zealand will be awarded nationally recognised qualifications.
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Oji Fibre Solutions shares the Duffy Books in Homes vision COMMUNITY to inspire a love of books in children so they become PARTNERSHIP adults with a love of reading.
PROGRAMMES Prominent New Zealanders are Oji Fibre Solutions sponsors Duffy engaged to talk to children about Books in Homes in three schools in their achievements and goals. the Waikato region: David Henry and in They tell them “It’s cool to read, School Strathmore School Tokoroa, and . and cool to achieve” and make Kawerau South School a connection between success In 2015, our sponsorship provided and reading. the children at these schools Twice a year, special Role Model five new books of their choice, which assemblies are held where the children equates to over 3,200 books and are presented with their books. around 550 happy children. For more information, please refer to: www.booksinhomes.org.nz.
Oji Fibre Solutions proudly supports the development of the next generation of Waikato children by sponsoring the Graeme Dingle Foundation.
The Foundation is committed to ‘Positively Impact Young Lives’ and holds the vision that ‘every young person is connected and contributing to their community’. Over 1,000 Tokoroa children and young people, their families and community are supported by the Graeme Dingle Foundation Waikato programmes.
For more information, please refer to: www.dinglefoundation.org.nz.
Kiwi Can teaches life skills and Stars is a peer mentoring explores important values. programme matching Year 12 and It is delivered weekly by pairs 13 students with Year 9 students of trained Kiwi Can leaders. to support the transition of the The lessons contribute to greater younger group into their first year communication skills, develop of secondary school. It aims to resilience, integrity, respect and improve academic achievement social connectivity. for the younger students, and to offer leadership and development opportunities for the senior students.
40 FUTURE FOCUSED Oji Fibre Solutions -- SUSTAINABILITYSUSTAINABILITY REPORT 2015 KIWI CAN SCHOOLS WE SUPPORT:
• David Henry Primary • Mangakino School • Strathmore Primary • Tokoroa Central Primary • Tainui Primary • Whakamaru School
STARS SCHOOL WE SUPPORT:
• Tokoroa High
A PILOT COLLABORATION WITH THE PERRY OUTDOOR EDUCATION TRUST BASED ON STARS AND ADDING OUTDOOR EDUCATION:
• Forest View High
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FROM VIRGIN WOOD FIBRE To packaging product
42 INNOVATION Oji Fibre Solutions - SUSTAINABILITY REPORT 2015
WE ARE INNOVATIVE
A little imagination goes a long way.
INNOVATION 43 Oji Fibre Solutions - SUSTAINABILITY REPORT 2015
OJI FIBRE SOLUTIONS ARE CONTINUALLY WORKING TO RAISE THE STANDARD OF OUR SERVICE AND PRODUCTS.
Providing smart solutions to meet our customers’ requirements is a key focus. Considerable work is done to substitute traditional forms of packaging with fibre-based solutions.
44 INNOVATION Oji Fibre Solutions - SUSTAINABILITY REPORT 2015
A LITTLE IMAGINATION GOES A LONG WAY This rocket was made from 100% Oji Fibre Solutions product and our people.
INNOVATION 45 Oji Fibre Solutions - SUSTAINABILITY REPORT 2015
Most fibre-based packaging contains both virgin and COMPLEMENTARY recycled fibres in different proportions. Producing an FIBRES: VIRGIN effective product is not about choosing one or the other; AND RECOVERED instead, it is about deciding how much of each to use for the job required. FIBRE
Virgin fibres are important where The environmental benefits of high humidity is present, where using recycled fibre are realised high strength is needed or where only over the full lifecycle of the appearance and print quality are products. A product made with important. Recovered fibres may be recovered fibre may not necessarily a better choice in conditions with be environmentally superior than lower performance requirements. one made with responsible virgin Our ECOKRAFT™ range of kraft-top fibre. There are good reasons liners made at Kinleith Mill are an to use at least a proportion of example of a hybrid combination of virgin fibre in many papers; for virgin fibre on the surface for colour example if packaging fails, then and consistency, and recovered fibre any environmental gains achieved as the balance material. through using recycled fibre can be lost through spoilage of the packaged product.
46 INNOVATION Oji Fibre Solutions -- SUSTAINABILITYSUSTAINABILITY REPORT 2015
RECYCLED FIBRE CONTENT Our packaging products had an average of 52% recycled fibre content in 2015.
INNOVATION 47 Oji Fibre Solutions - SUSTAINABILITY REPORT 2015
Oji Fibre Solutions Paper Bag Our dairy bags manufactures bags for the provide superior rigidity, with $30 DAIRY, CEMENT, FLOUR, increased filling MILLION efficiency and investment in our SUGAR AND MANY reduced losses in Paper Bag facility. OTHER INDUSTRIES. the supply chain.
A $30 million investment in our Paper Bag facility will INVESTMENT extend the existing hygiene hall, upgrade all aspects IN BUSINESS of critical hygiene and install the latest generation of – PAPER BAG bag-making machinery, quality detection systems and leading-edge traceability technology. EXPANSION & When the project is finished late the standard in global dairy bag UPGRADE 2016, the plant will be the leading supply with the capacity to produce dairy bag manufacturing facility in over 100 million dairy bags and 60 the Southern Hemisphere, setting million industrial bags per annum.
48 INNOVATION Oji Fibre Solutions - SUSTAINABILITY REPORT 2015
KINLEITH MILL We produce dairy bags utilising containerboard from Kinleith Mill – a high-strength paper ideal for this purpose.
INNOVATION 49 Oji Fibre Solutions - SUSTAINABILITY REPORT 2015
OJI FIBRE SOLUTIONS DATA 2015: OJI FIBRE KINLEITH MILL TASMAN MILL PENROSE MILL PACKAGING PACKAGING SOLUTIONS NZ AUS ` UNIT ANNUAL TOTALS OUTPUTS(1) Market pulp and containerboard products tonne 940,204 588,196 268,476 83,532 0 0 Fibre-based packaging products tonne 175,293 0 0 0 116,636 58,657 Chemicals and byproducts(2) tonne 35,911 19,013 16,898 0 0 0 Total outputs(1) tonne 1,151,408 607,209 285,374 83,532 116,636 58,657
RAW MATERIALS Fibre inputs Virgin wood (logs and chips) tonne 3,521,473 2,243,871 1,277,602 0 0 0 Market pulp tonne 9,538 9,538 0 0 0 0 Recovered fibre tonne 209,844 108,546 0 101,298 0 0 Paper, containerboard, wrapping, cores tonne 195,660 2,153 0 219 128,156 65,132 Total fibre tonne 3,936,515 2,364,108 1,277,602 101,517 128,156 65,132 Other significant inputs (approximate)(3): tonne 118,453 70,296 36,800 658 8,883 1,816
ENERGY CONSUMPTION (GROSS/HHV) Direct sources Biomass: kraft black liquor, wood residues GJ 21,431,008 14,415,882 7,015,126 0 0 0 Fossil fuels(4): natural gas, waste oil fuel, GJ 3,561,501 2,477,814 769,363 133,007 108,020 73,297 fuel oil, coal, diesel, petrol, LPG Indirect sources (purchased) Electricity GJ 1,861,902 1,166,113 463,315 158,901 47,949 25,624 Steam GJ 287,070 0 0 287,070 0 0 Geothermal steam GJ 1,408,426 0 1,408,426 0 0 0 Total energy consumption GJ 28,549,907 18,059,809 9,656,230 578,978 155,969 98,921 Electricity generation (fuels included above) GJ 1,284,089 988,224 295,865 0 0 0
WATER TAKE
Municipal supply Ml 370 0 43 249 61 17
Surface water Ml 43,727 20,118 23,609 0 0 0
Ground water Ml 10,772 10,362 0 410 0 0
Total water take Ml 54,869 30,480 23,652 659 61 17
EMISSIONS TO AIR (5) Scope 1 (direct) emissions (C02-e) tonne 220,067 150,140 51,356 7,601 7,145 3,825
Scope 2 (indirect) emissions (C02-e) tonne 91,172 37,881 25,219 19,854 1,558 6,660 (5) Total Scope 1 and 2 emissions (C02-e) tonne 311,239 188,021 76,575 27,455 8,703 10,485
(6) Biomass C02 emissions tonne 2,011,646 1,345,313 666,333 0 0 0
WASTE (7) To landfill (approximate) dry tonne 38,932 22,661 6,524 8,589 928 230 To recycle dry tonne 27,008 1,545 48 0 18,406 7,009 To compost/vermicompost dry tonne 9,952 6,110 2,919 923 0 0 Hazardous waste (incl. EPA, Victoria) tonne 37.9 5.1 18.8 0 0 14.0
WATER DISCHARGES(8,9)
Volume Ml 55,722 31,073 24,086 563 N/A N/A Treatment 1° & 2° 1° & 2° Municipal Municipal Municipal treatment treatment treatment Discharge to Waikato Tarawera Municipal Municipal Municipal River River sewer sewer sewer Total Suspended Solids (TSS) tonne 808 874 587 (10) N/A N/A Biochemical Oxygen Demand (BOD) tonne 534 598 1,432(10) N/A N/A
A zero (0) in the table signifies the parameter is either not applicable or Packaging NZ: Starch, adhesives, plastic film, inks. (9) Volume estimated for Tasman Mill and excludes contributions from not material. ‘N/A’ signifies that the parameter is not available. Packaging AUS: Starch, adhesives, coatings, inks. Norske Skog Tasman newsprint mill and stormwater. (1) Outputs are gross; i.e. do not exclude internal transfers between sites. (4) Direct emissions from on-site stationary and mobile (vehicular) (10) Measurements made at point of discharge to trade waste system. (2) Chemicals include: liquid chlorine, sodium hypochlorite and combustion of fossil fuels. Market pulp tonnages are expressed on an ‘air dry’ or 90/10 basis, under hydrochloric acid, Byproducts include: crude tall oil and crude (5) Includes CH and N 0 emissions from combustion of biomass. which pulp weights are derived by normalisation to 90% dry pulp solids, sulphate turpentine. 4 2 10% moisture content, which is standard for the industry. (6) Biomass-derived C02 is reported separately for information in (3) Other significant inputs include: accordance with the GHG Protocol. Kinleith Mill: Alum, bale wire, burnt lime, caustic soda, calcium (7) Solid wastes are reported on ‘dry solids’ basis; waste to landfill is deposited carbonate, clay, hydrogen peroxide, oxygen, paper size, salt, starch, in facilities owned by Oji Fibre Solutions or licensed third parties. sulphuric acid. (8) Discharges listed for Tasman Mill include those from neighbouring Tasman Mill: Bale wire, burnt lime, caustic soda, hydrogen peroxide, newsprint mill owned and operated by Norske Skog Tasman due to lime rock, magnesium sulphate, oxygen, salt, saltcake, sulphuric acid. shared effluent treatment infrastructure. Penrose Mill: Starch. 50
CONTACT For more information or feedback: [email protected] Oji Fibre Solutions Private Bag 92004, Victoria Street West Auckland 1142, New Zealand ojifs.com
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 the 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