Everything we do counts

Notes on sustainability and the you print on 2 in ourenvironmental performance. to achieve continuous improvement sustainability ofourproducts and by toensure This bookletexplains thework . magazines toproduce publication largest recycler ofnewspapers and paper.and directory grades andalsosuppliesmagazine largest suppliers ofnewspaper Norske Skog isoneoftheworld’s Sustainability andthepaperyouprinton We arealsooneoftheworld’s Australasian > Australasian millshave achieved a > AllmillsareISO14001certified > Endproductscanberecycled > AllmillsutilisetheChainofCustody > from Allwood originates > be confident: Using Norske Skog paperyou can by 25%by 2020comparedto2006 reduce totalgreenhouse emissions since 1990 emissions pertonneofproduction 25% reductioningreenhouse gas packaging back into newspaper grades or system toverify fibresource waste sources sustainably managedforests or mills will as a minimum

Everything we do counts 1 Contents

2 Everything we do counts ...... 5 3 Our current performance demonstrates Sustainable forest practices ...... 7 Best practice manufacturing ...... 11 our environmental commitment and creates Responsible water use ...... 15 Reducing our carbon footprint ...... 17

the basis for a sustainable future Recovered paper ...... 21 do counts Everything we Norske Skog’s commitment Working together ...... 25 For more information ...... 28 Everything we do counts Sustainability arises from many actions

4 Everything we do counts towards a Sustainability is about working 5 Meeting the needs of the present generation sustainable future. closely with key stakeholders.

without compromising the ability of future > Environmentally responsible forest > Working with our customers and practices suppliers to identify emerging

generations to meet their own needs > Reducing energy use and our issues and set new performance do counts Everything we Brundtland Commission (Established by UN General Assembly) carbon footprint goals > Responsible water use > Working with Government and > Best practice manufacturing the broader community to provide > Recycling what we produce innovative solutions > Modifying existing products and > Openly communicating: developing new products with lower • The challenges we face environmental impact. • Our achievements • What we are doing to ensure the We are committed to continuously sustainability of our industry improving our performance across all > Listening to stakeholders’ feedback these activities. and learning from them. Sustainable forest practice Sustainable forest practices

6 All wood used by Norske Skog Certification 7 Forest management certification originates from sustainably managed forest resources or Forest management certification There is an ongoing program to for 75% of Australasian wood from waste sources including and Chain of Custody support the increase certification and within 4 recycled fibre. achievement of sustainable forestry. years the aim is to achieve 75%

supply within four years certification. do counts Everything we Sustainable forest management There are two major global However all suppliers meet State Norske Skog Australian % Certification means maintaining their biodiversity, certification systems and National laws and practices 100 productivity, regeneration capacity and > FSC (Forest Stewardship Council) and therefore all wood comes from vitality to fulfil long term ecological, > PEFC (Programme for the sustainably managed forests. 80 economic and social functions. Endorsement of Forest 60 Certification). The Australian Forest Standard (AFS) is part of PEFC. 40

20 Norske Skog and our suppliers use both these systems to provide 0 transparency and ensure good stewardship. Over 50% of Norske 2001 2002 2003 2004 2005 2006 2007 2008 2009 20010 20011 20012 Skog’s wood supplies are already certified. Chain of custody certification is in place at all mills

8 Chain of Custody (CoC) is the Boyer moves to 9 process for tracking wood fibre plantation only from the forest to the consumer.

> It is proof that the finished paper The Boyer Mill has started a Closing the eucalypt pulping

originated from a responsibly $50m capital project that will operation has a number of do counts Everything we managed forest increase supply of softwood flow-on benefits for the > It reinforces transparency along the (radiata pine) pulp and close environment: supply chain and provides public down regrowth eucalypt > The volume of organic credibility pulping. matter requiring oxygen for > Albury, Boyer and Tasman mills all breakdown is significantly have the CoC certification system When this project is complete at reduced in operation. the end of 2009 > Reduced effluent flow > Regrowth eucalypt will no > Reduced colour impact on longer be used at Boyer effluent > Plantation radiata pine will be > Reduced mill wide chemical the sole wood fibre used. usage > Reduction in direct greenhouse gas emissions. Best practice manufacturing Best practice makes good sense environmentally and financially 11 10 To maintain competitiveness Environment Index • Waste to landfill All Australasian mills we must continuously improve • Total energy use performance and adopt best Norske Skog has developed its > A further 25% reduction in the E- operate an environmental practice solutions. Best practice own environment index to drive index is targeted by 2010. manufacturing also provides performance and focus our activity on

management system improved environmental outcomes. key environmental areas. Regional E-Index do counts Everything we It is additional to any statutory 3.00 ISO 14001 is a certifiable and operating licence conditions. 2.80 internationally acknowledged system 2.60 > Certification means our The ‘Norske Skog E-Index’ 2.40 management systems are 2.20 independently audited against a > Relates present performance to 2.00 formal standard Best Available Technology, BAT 1.80 > All stakeholders can have > Covers the following key areas of 1.60 confidence that we are meeting an environmental performance and 1.40 internationally recognised standard impact: 1.20 > A key element of the system • Water consumption 1.00 2003 2007 2010 is a commitment to continuous • Quality of treated effluent Target improvement. discharges • Air emissions of nitrogen oxides We Reduce, Reuse and Recycle

12 The efficient use of resources and Boyer Effluent 13 careful waste management are very Treatment important to our business. Upgrade > All waste streams are tracked > There is a documented procedure The Boyer Mill has recently installed a do counts Everything we to address all areas of waste new state of the art effluent treatment management plant at a cost of A$14m. > We recycle scrap metal, cores etc. > Biosolids from the effluent Any organic material requires oxygen if treatment plant at Albury are used it is to decay. The Secondary Effluent as a soil conditioner Treatment mimics the natural process > Wood waste is used as compost using live bacteria that eat the organic > Very little material goes to landfill. material. By careful selection of the bacteria and sophisticated monitoring of their habitat the process accelerates the natural biological process – and all this in a continuously operating controlled environment before the treated water goes back into the river. Responsible water use Responsible water use

14 Less water used means less The challenge of the Murray 15 The Albury Mill is at World’s process water requiring treatment. Best Practice for water use > Less water used also means more Over recent years inflows to > The Albury Mill is the lowest highly concentrated process water the Murray Catchment have water user within Norske Skog

> Our effluent treatment systems been at record low levels. globally do counts Everything we Water use efficiency 2007 have been upgraded to handle > High Security water allocations > We are working closely with 70 the smaller volume of more highly (including the Albury Mill) were the NSW Government on a 60 concentrated process water cut by 50% in 2006 range of options including third

50 > The end result is a win-win: > The Albury Mill is at World’s party reuse of treated process • Lower water use Best Practice in terms of water and green offsets. m3 40 tonne • Better quality of treated water water use per tonne of paper 30 discharged. produced – less than 10 ML 20 Albury Although both Boyer and Tasman per day 10 mills are located in regions where the 0 volume of water used has not been an Norske Skog Mills global issue both mills have been active in reducing it’s use. Between 1985 and 2008 both mills reduced their water use by approximately 60%. Reducing our carbon footprint 25% greenhouse gas reduction goal by 2020

16 Norske Skog’s global greenhouse 25% reduction target in Australasia 17 We will reduce our energy use and gas reduction goal is to reduce total emissions by 25% by 2020 > Australasia will as a minimum target greenhouse emissions through a mix of compared to 2006. the 25% global reduction > This is a significant challenge

continuous improvement, new technology This Includes because is a ‘high’ emitter do counts Everything we > Direct emissions from the of greenhouse gases due to its and ‘step change’ investments production of pulp and paper reliance on coal as a major energy > Indirect emissions from purchased source energy > Nearly 70% of our Australasian The goal represents a global reduction emissions result from using of 850,000 tonnes by 2020. purchased energy. The Albury Mill uses electricity from the NSW grid CO2 Emissions Intensity which is heavily reliant on coal Australasian mills have achieved a > The Boyer and Tasman mills have 25% reduction in greenhouse gases access to hydro electricity and in emissions per tonne since 1990 the case of Tasman, geothermal steam as well. These are renewable Tonnes CO2 / tonne paper energy sources with low carbon 1990 2007 emissions. 1.6 1.2 Maximising our environmental dollars globally

18 Norske Skog will spend its geothermal 19 environmental dollars where they power station will achieve the greatest impact on a global basis. The $300 million Kawerau > Kawerau geothermal field is

Greenhouse gas emission targets and project is the largest geothermal considered world class. The do counts Everything we reduction initiatives will vary between development in New Zealand Kawerau steam field also mills due to differences in in more than 20 years. Output supplies steam for industrial > Energy sources significantly increases national use and some small scale > Raw materials generation capacity and generation > Product mix meets one-third of residential > The new power station is sited > Historical investments and industrial demand in the on Norske Skog Tasman land > New investment opportunities. Eastern – enough > The is the largest power for 90,000 homes. electricity user in the region, the scheme will supply 85% > The Tasman Mill is unique in of power used by Tasman, the world with 100% of steam replacing power currently used to produce pulp and drawn from the New Zealand dry the paper coming from grid. geothermal steam Recovered paper Recovered paper 21

20 Australia and New Zealand are Norske Skog is one of the world’s largest major collectors and recyclers of recyclers of newspapers and magazines old newspapers and magazines. > Australia’s recovery rate of 76% is > Packaging in Australia and New > The desire to recycle fibre back into

to produce publication papers at world’s best practice. The New Zealand is another major user of it’s original end-use may not always do counts Everything we Zealand recovery rate is estimated recovered paper be the most sensible environmental to be over 70% > In both Australia and New Zealand solution – particularly when a > Norske Skog and it’s Australian some of the old newspapers and ‘local’ is sourcing waste publisher customers have worked magazines that are collected or by-products from a sustainably together through the Publisher’s are exported to Asia. Exporting managed forest. For example National Environment Bureau recovered paper from Australia and transporting recovered paper long (PNEB) for many years to maximise New Zealand is environmentally distances generates it’s own carbon newspaper and magazine recycling sensible as some countries do not emissions. > Norske Skog’s recycling plant at have plantations or other sources Albury recycles 160,000 tonnes of of fibre old newspapers and magazines each year Inorganic

fillers

7 %

SustainabilityRoundwood is a balance between using new fibre and recycled fibre and sawmill

chips

40 %

22 Half our global raw material input The key to sustainability is to furniture would increase > Recovered paper volumes in 23 is recovered paper. Recovered ensure that paper recovery is > Australia and New Zealand have New Zealand are not sufficient to paper 49 % maximised, that the paper collected world class recovery rates and support a recycling facility Purchased Globally approximately half our raw Recovered paper 53%pulp 4 % is reused and that we use fibre from this recovered paper is recycled > All old newspapers collected in material inputs consist of recovered both sustainably managed forest locally into a variety of end uses or New Zealand currently are being

paper. The balance is a blend of resources and waste sources. exported to countries that have reused either in New Zealand or do counts Everything we on-site produced pulp (much of little or no wood fibre. offshore. Forest residues, this being sourced from forest and sawmill chips Using recovered paper in isolation is industry waste) and purchased pulp. 44% not sustainable – the fibres eventually Why is there no recycling plant in break down and cannot be used. New Zealand? > Much of our wood fibre is by- Purchased product or from waste sources: > The Tasman mill is strategically pulp 4% • Forest thinnings located to take advantage of forest • Tops of trees used for sawn waste lumber > Transport of this waste to the mill is • Sawmill chips highly efficient > If this material was not utilised by > Around 60% of the paper produced our mills it would impact the viability at Tasman is exported to Australia of the entire forest industry – the where it eventually becomes part of cost of timber for housing and the recovered paper stream Working together Working together

24 Lighter weight paper makes a Continuing the 25 Decisions you make difference downward trend impact our carbon footprint > Reducing the basis weight of > Lower basis weights can directly Over the last 10 years over 200,000 paper is a quick win in softening help your business achieve your tonnes per annum of 45gsm paper

our environmental footprint. That’s sustainability targets: consumed in Australia and New do counts Everything we because lighter paper requires: • Fewer resources used during Zealand has been converted to 42gsm. • Less fibre printing and distribution On average this represents • Fewer raw materials and • Reduced warehouse space and > 16,000 tonnes per year less C02 chemicals handling emitted during manufacture • Less energy to produce And all this without compromising > 560 less truck deliveries per year > A lower basis weight allows us to print quality or pressroom > 13,400 less rolls to be handled, fit more linear meters per roll and performance. stored, moved at press sites. therefore transport more paper per shipment: The challenge is to identify and average basis weight • Fewer trucks on the road seize other joint opportunities. 45 • Fewer greenhouse gas 44 emissions 43 gsm 42 2000 2001 2002 2003 2004 2005 2006 2007 Managing the challenges

26 Environmental challenges Our aim is to continue to stay 27 continue to appear ahead of the game, identify the and evolve. emerging issues and provide innovative solutions.

These are important issues for > Norske Skog enjoys good relations > We are an active participant in do counts Everything we the community and our business. with all spheres and levels of key industry and professional Solutions are often complex and in government and with the local associations: turn uncover fresh challenges communities in which it operates. • Pacific Area Newspaper > Norske Skog, with our customers, We pride ourselves on: Publishers Association have successfully managed each • A proven track record of • Publishers National Environment of these challenges and developed delivering positive outcomes Bureau solutions by working together to: • A professional approach • Newspaper Publishers • Present a unified front to • Meeting regularly with Association of New Zealand Government Government Ministers and • New Zealand Paper Forum • Devise innovative short term officials • Australian Plantations, Products solutions while appropriate long • Hosting site visits and and Paper Industry Council (A3P) term arrangements are put in community open days. • Australian Pulp and Paper place. Industry Technical Association (APPITA). 28 +61 393416407 Recycling Division, Melbourne +64 95243400 Auckland Sales, MarketingandLogistics, +61 292831444 Sydney Sales, MarketingandLogistics, information Who tocontactfor further +64 73233512 Environment Manager Tasman Mill +61 362610464 Environment Manager Boyer Mill +61 260583288 Environment Manager Albury Mill

This booklet is printed on Envi Recycled Carbon Neutral Paper – containing 50% recycled and 50% sustainable forest wood fibre

Everything we do counts 31