www.mondibp.com www.mondibp.com MONDI BUSINESS PAPER AusTria S·E·A·T reporT SOCIO-ECONOMIC ASSESSMENT TOOLBOX REPORT 2007 2 SOCIO-ECONOMIC ASSESSMENT TOOLBOX REPORT | TaBLE OF CONTENTS TabLE OF ConTenTS 1 INTRODUCTION 3 1.1 OBJECTIVES 3 1.2 STRUCTURE OF THIS REPORT 3 1.3 SEAT ASSESSMENT TEAM 3 1.4 ACKNOWLEDGEMENTS 2 OBJECTIVES AND APPROACH 4 3 OVERVIEW OF THE OPERATION AND SOCIAL MANAGEMENT SYSTEMS 5 3.1 BASIC INFORMATION ON THE OPERATION 5 3.2. EXISTING SOCIAL MANAGEMENT SYSTEMS 8 3.3 COMMUNITY ENGAGEMENT 11 4 OVERVIEW OF LOCAL AND NEIGHBOURING COMMUNITIES 13 4.1 THE REGION OF LOWER AUSTRIA 13 4.2 THE DISTRICT OF AMSTETTEN 13 5 IMPACTS IDENTIFIED BY MBP AT 15 5.1 INTRODUCTION 15 5.2 EMPLOYMENT 15 5.3 HUMAN CAPITAL AND SKILLS DEVELOPMENT 15 5.4 TAXES AND ROYALTIES 16 5.5 VALUE ADDED 16 5.6 INVESTMENTS IN THE MILL 16 5.7 LOCAL PROCUREMENT SPEND 17 5.8 COMMUNITY SUPPORT & FACILITIES 17 6 KEY ISSUES RAISED BY STAKEHOLDERS 19 6.1 INTRODUCTION 19 6.2 OVERALL FINDINGS 19 6.3 GENERAL STAKEHOLDER FEEDBACK 20 6.4 EMPLOYEE FEEDBACK 22 6.5 OPPORTUNITIES FOR IMPROVEMENT 22 7 MANAGEMENT RESPONSES TO ISSUES RAISED 23 8 MONITORING AND INDICATORS 25 8.1 MONITORING OF THE MANAGEMENT RESPONSES 25 8.2 LOCAL KEY PERFORMANCE INDICATORS 26 9 CONTACT PERSON DETAILS FOR FURTHER INFORMATION 27 SOCIO-ECONOMIC ASSESSMENT TOOLBOX REPORT | INTRODUCTION 3 1 INTRODUCTION 1.1 OBJECTIVES • Section 4 provides a description of local and neigh- bouring communities; This report presents the findings of a Socio- • Section 5 details impacts that MBP AT has on the Economic Assessment Toolbox (SEAT) assessment surrounding community; of MONDI BUSINESS PAPER Austria (MBP AT), the • Section 6 identifies and discusses key issues raised MONDI BUSINESS PAPER Group’s operation in Lower by stakeholders during the consultation process; Austria. The SEAT process was developed by Anglo • Section 7 provides an outline of strategic challenges, American plc, MONDI’s parent company, to help opera- opportunities for improvement and recommended tions identify and manage their social and economic actions, as suggested by the SEAT team, and manage- impact on local communities. ment responses to the issues raised by stakeholders; • Section 8 discusses the various indicators that were The SEAT process was carried out at the MBP AT mill from developed from the rapid assessment process, and how July to October 2006, including a stakeholder consultation they can be used in monitoring the operation’s social and in October. The consultation had four main objectives: economic performance; and • Section 9 outlines the additional activities that need • To gain an understanding of current and past social to be undertaken in order to complete the rapid and environmental performance of the Hausmening assessment process. and Kematen MBP AT mills; • To gain a clear view on current issues within the com- munities around the mills; 1.3 SEAT ASSESSMENT TEAM • To review and assess management stakeholder per- ceptions of the operation; and The preparatory work and consultation for the SEAT • To identify opportunities for improvement and develop assessment was carried out by the following team: priorities for the future. • Karl Grill, MBP AT Managing Director • Gerhard Schwiegk, MBP AT Financial Director 1.2 STRUCTURE OF THIS REPORT • Rudolf Beyrer, Environmental Manager • Horst Brunbauer, Head of the Trade Union This document reports on the results of the assessment • Roswitha Ebner, Assistant to the Financial Director and is structured as follows: • Bianca Greil, Project Assistant • Susanne Grote, Project Assistant • Section 2 sets out the approach and objectives of the • Christoph Hinger, PTL Process Manager assessment process, in particular identifying how the • Wolfgang Kasser, HR Director approach was applied at MONDI BUSINESS PAPER AT; • Stephanie Klotz, MBP Holding Assistant SD Manager • Section 3 provides an overview of the operation, • Birgit Matejka, Assistant to the Managing Director including information on the existing social manage- • Martin Süß, Occupational Health Manager ment system; • Karl Wadsak, Pulp Mill Engineering • Martin Zehetgruber, HR Manager 1.4 ACKNOWLEDGEMENTS The SEAT assessment team would like to express its gratitude to the MBP AT employees, business partners and the community representatives who took the time to participate in the consultation process, as well as the mill management, who were highly supportive of the process. The SEAT study would not have been possible without their kind assistance. The SEAT Team 4 SOCIO-ECONOMIC ASSESSMENT TOOLBOX REPORT | OBJECTIVES AND APPROACH 2 OBJECTIVES AND APPROACH The approach taken for the assessment was in line with The objectives of the SEAT process at MBP AT are: the five key steps outlined in the SEAT process. These are defined in Box 2.1. • to identify and prioritise the key social and economic impacts that must be addressed at MONDI BUSINESS PAPER AT; • to assess the effectiveness and suitability of existing initiatives, identify any shortcomings and where THE SEAT PROCESS improvements can be made; • to assess whether the operation is in line with ‘best Step 1: Define Objectives of the SEAT Process practice’ requirements on social performance; and Step 2: Profile the Kematen and Hausmening Operations • to gather and collate data for corporate social report- and Neighbouring Communities, and Identify ing purposes, as well as development of indicators Key Issues that are relevant to local conditions. Step 3: Evaluate Social and Economic Impacts Step 4: Provide Guidance on Management Responses Consultation with internal and external stakeholders, to Key Issues such as MONDI BUSINESS PAPER AT staff and com- Step 5: Reporting to Stakeholders munity representatives was essential to meeting the objectives of the assessment. 53 individuals representing 11 different stakeholder groups were consulted. A sum- mary of the stakeholders consulted is given in Box 2.2. Box 2.1 Key Steps in the SEAT Process Stakeholders Consulted • Mayors of neighbouring towns and villages of Amstetten, Allhartsberg, Kematen, Neuhofen, Winklarn • Leader of the Amstetten District Council • Employees • Representatives of the Employment Office (AMS) in Amstetten and Waidhofen a.d. Ybbs • Representatives of the Amstetten Police Department • Representatives of the MONDI BUSINESS PAPER Health Insurance • Contractors, business partners, and neighbouring companies including EAS, EMAT, Pfaffeneder, Scherz, Unikristall, Schorn Automation, and Maschinenring • Representatives of local Red Cross • Director of the hospital in Waidhofen a.d. Ybbs • Representatives of local schools and technical colleges • Representative of local and national NGOs including Lebenshilfe NÖ, Greenpeace and BSG Box 2.2 Stakeholders Consulted SOCIO-ECONOMIC ASSESSMENT TOOLBOX REPORT | OVERVIEW OF THE OPERATION AND SOCIAL MANAGEMENT SYSTEMS 5 3 OVERVIEW OF THE OPERATION AND SOCIAL MANAGEMENT SYSTEMS 3.1 BASIC INFORMATION ON THE Successful collaboration with a leading photocopy OPERATION machine producer in 1966 heralded the company’s development into one of the most important manu- The roots of the MONDI BUSINESS PAPER Group can facturers of copy paper in Europe. Subsequent coopera- be traced back to 1793, when Ignaz Theodor von tion with nearly all of the well-known manufacturers of Pachner was granted permission to “set up a paper mill photo-copy machines led to specialisation in the produc- for special quality paper hitherto imported from abroad”. tion of copy paper. In the 200 years since its foundation, His first paper mill, set up in the vicinity of Vienna, gradu- the company has developed itself into a leading ally became the biggest paper producer in the Austro- brand name in the paper industry. It has come to repre- Hungarian monarchy. Around 1870, NEUSIEDLER papers sent high-quality products, leading international know- were being delivered around the world; in addition to the how, consistent innovations and an ecological awareness crown lands of the monarchy, Germany, Spain, England, that sets international trends. Scandinavia, South America and Australia were counted among the most important purchasers. At the end of the 1990’s, gradual expansion began with the support of the new owner MONDI – a subsidiary After 1920, the operation in Thresienthal and the paper company of the Anglo American Industrial Corporation and pulp operation in Kematen were added – the current active in the pulp and paper industry. locations of MONDI BUSINESS PAPER Austria. MONDI BUSINESS PAPER Austria, Hausmening 6 SOCIO-ECONOMIC ASSESSMENT TOOLBOX REPORT | OVERVIEW OF THE OPERATION AND SOCIAL MANAGEMENT SYSTEMS MONDI BUSINESS PAPER Austria, Kematen The renaming of NEUSIEDLER to MONDI BUSINESS PAPER followed in 2004 as a manifestation of its full integration into the MONDI Group. MONDI BUSINESS PAPER Austria today primarily produces the Group’s speciality papers. This includes the colour ranges as well as Color Copy, the leading paper for colour laser printing on the European market. Additionally, chlorine-free bleached TCF long-fibre pulp is produced at the Ybbstaler Zellstoff GmbH. MONDI BUSINESS PAPER Holding The Holding of MONDI BUSINESS PAPER is also located in Hausmening, Austria. All central functions are steered by Compe- tence Centers, which guarantee optimal support for the operations and efficiency in corporate management. PUSHING THE LIMITS, the corporate vision of MONDI BUSINESS PAPER was brought to life at the Holding and focuses on five key topics: Customer and People Focus, 3.1. Site