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Single Page Print Version SUSTAINABILITY REPORT 2019 Delivering Solutions by Nature CONTENTS: Circular economy and 2019 value creation Page 2 01 Innovation by nature Page 6 02 Stronger by nature Page 14 03 Future focused by nature Page 24 04 Partnership by nature Page 32 2019 results Page 44 WE ARE A SPECIALIST IN: MARKET PULP We produce kraft market pulps ideal for use in boards, tissues and specialty products. CONTAINERBOARD We produce kraft and recycled containerboards ideal for conversion into packaging products. PACKAGING We provide smart packaging solutions such as cardboard boxes, multi-wall paper bags, specialty boards and paper cups. PAPER RECYCLING Fullcircle, our paper recovery service, collects waste paper from across New Zealand for transformation into new paper products at our mills. LOGISTICS Lodestar, our integrated logistics service, provides shipping and domestic transport solutions to deliver Oji Fibre Solutions’ and external customers’ products to global markets. Welcome to our sustainability report We are a values-based business, invested in the future and committed to doing good by both people and place. We design and deliver packaging Our values drive us forward on a sustainable path solutions to protect to create value for our people, the partners we work our customers’ products, so they with, the customers we supply and the communities arrive as intended. and environments in which we operate. This sustainability report is built around the four key values that enable us to be a stable, successful business committed to delivering solutions by nature: Our market pulp innovation, built on strength, future focused and is made from the long, high- trusted partners. density fibres of radiata pine. Oji Fibre Solutions at a glance At Oji Fibre Solutions, we pride Our products are used every day in It is because of the products ourselves on our commitment households and businesses across we make that the majority of to be a future focused company. New Zealand and Australia and in Oji Fibre Solutions’ manufacturing operations have been considered Being forward-looking also means 30+ countries around the world. essential during the response our behaviour must be sustainable. They include: to the COVID-19 pandemic. This translates to our day-to-day • cardboard boxes used activities: using our knowledge, in supermarkets to keep our expertise, and our passion, we produce fresh harness the strength of sustainably • paper bags or boxes for managed radiata pine plantations product deliveries and recycled paper to deliver solutions by nature. • products such as coffee filters, tissues, and nappies that contain We are a business built on natural, wood pulp renewable and low-carbon resources. Our 1,835 people and our contractors • cellulose fibre-reinforced cement apply their skills and experience boards used in buildings to produce quality kraft pulp, paper • pine perfume bases used and fibre packaging products. in disinfectant • chemicals used in water treatment plants or swimming pools. Sustainability Report 2019 1 Oji Fibre Solutions’ circular economy and value creation in 2019 2019 INPUTS: 3,485,451t of virgin wood fibre (logs and chips) 228,400t of paper products that have been produced internally or purchased externally1 191,884t of recovered fibre 7, 295 t of purchased market pulp2 53,692Ml of water 78.8% renewable energy 73.4% from biomass 5.4% from geothermal steam 1,835 employees We start with Residuals of the wood residuals digesting process are from sustainably put to use as biofuel managed forests. Forest Wood chip Pulp 1 Paper products include internally produced and We make pulp from externally purchased paper, containerboard, radiata pine wrapping and cores. 2 All externally purchased market pulp is FSC® certified. Recovery boiler and evaporator 3 Certified sites as at mid-2020. 2 Oji Fibre Solutions 341,911 GJ 1.64 9 generated total injury rate manufacturing (6% reduction sites FSC® & on 2018) PEFC™ Chain of Custody certified3 5+ million 30+ seedlings planted number of since 2007 markets in which we are operational 2019 OUTPUTS: OUTCOMES Our values drive us forward on a sustainable path 559,903t to create long-term value for our people, the partners of market pulp we work with, the customers we supply, and the communities and environments in which we operate. t 376,490 Built on Innovation of containerboard Strength 211,023t of packaging products Future Trusted Focused Partner 34,531t of chemicals and by-products Our most direct contribution to the United Nations Sustainable Development Goals is to: 53% diversion rate of wastes from landfill 0.279 tCO2-e/t emission intensity 3 packaging awards We design and deliver packaging solutions to protect our customers’ products, so they arrive Paper Corrugator Box Customer as intended. Recycling Sustainability Report 2019 3 From our CEO The groundwork laid over the last These certifications provide a third two years by Oji Fibre Solutions party endorsement that the forests has put the company in a good where our raw products come position to manage the tightened from and the supply chain to the international pulp and paper market customer is sustainably managed. in 2019, and the impacts of the As a result, our customers and global COVID-19 pandemic. in turn their consumers can take Over this period, more so than comfort from this additional layer ever, our vertical integration is a of assurance. core strength enabling the business In 2019, our ongoing focus on to adapt and change in response to health and safety delivered good challenging external circumstances, results. The Safety Case required while continuing to deliver for under New Zealand legislation for our customers. While there are Kinleith Mill was accepted with many examples in this report of no conditions. Completing the how we do this, I am particularly transformation of Tasman Mill in proud of the business’s response the third quarter of 2019 reduced Dr Jon Ryder to the changing demands of the the amount of certain chemicals primary produce season. We strive held on-site, resulting in the safety Chief Executive Officer (CEO) to bring the skills and talents of classification of the mill being Oji Fibre Solutions our relationship managers and our significantly improved. integrated supply chain together Transforming the Tasman Mill to deliver on time, every time. has also delivered environmental I am incredibly proud of the way in improvements. In 2019, we achieved which my team of 1,835 employees a 20% reduction in greenhouse has responded, dug deep and gas emission intensity at the partnered with our customers mill compared to 2018 results. to ensure continuity of supply. By eliminating coal and increasing In 2019, our stakeholders continued the use of geothermal steam, 89% to be interested in the opportunities of the mill’s energy requirements “ We are proud to be of the bio-circular economy to are now met by renewable sources. part of the bio-circular deliver renewable and recyclable Another benefit was achieving our alternatives to fossil fuel based pristine river clarity target mid-way economy delivering products. We continue to work through 2019, sixteen years ahead solutions by nature.” with customers to find solutions of the regulatory schedule. manufactured from renewable and Our values, integrated supply sustainably sourced wood fibre. chain and dedicated teams across As a further demonstration of the business continue to provide our commitment to responsible strong foundations on which we sourcing, we extended PEFC™ can deliver solutions by nature and and FSC® certification to all to face the future with optimism. our mill operations in 2019 and over the course of 2020 will be certifying all our facilities. 4 Oji Fibre Solutions From our Chairman As a solutions focused company, These investments are coupled the business is always seeking new with equally important but smaller ways to strengthen its position as a scale investments to modernise supply partner to its customer base. packaging operations across the With the backing of Oji Holdings business and to deliver safety, Corporation, the parent company of environmental and efficiency Oji Fibre Solutions, we have invested improvements. We continue in the business to uplift capacity to look for further opportunities across the network of facilities to serve the Australian and within New Zealand and Australia. New Zealand markets. In 2019, Oji Fibre Solutions In 2019, in conjunction with various announced plans to develop a in-mill improvements to reduce $100+ million greenfield packaging water use at Kinleith Mill, the facility in Christchurch. This new site business started the process of will be the business’s South Island planning for and consulting with hub delivering improved product the community about a new waste quality, transport efficiencies water treatment plant at the mill. Hiroyuki Isono and safety and environmental When completed the project will allow for wastewater from the mill Director and Chairman benefits. Once completed in 2021, the business will be even better to be treated to a standard that Oji Fibre Solutions positioned to partner the South meets international best practice. Director of the Board Island primary sector. As part of Oji Holdings’ global Oji Holdings Corporation This development adds to the network, Oji Fibre Solutions can significant capital investments in leverage its scale to better manage the business over the last five years. today, while focusing on the future These include the transformation and investing for long-term success. of Tasman Mill completed in 2019, and investments to grow Oji Fibre Solutions' presence in the Australian' market through our two new “ This year, packaging facilities of Cardboard Oji Fibre Solutions Carton Solutions and the 5 Green Star rated facility at Yatala. has taken several With the addition of the Yatala strides forward on its site, Oji Fibre Solutions is better sustainability journey.” able to service the Queensland primary sector. Recognising these opportunities, the business is continuing to invest in the facility and to recruit additional professional and production staff to the site.
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