Mondi Group www.mondigroup.com Mondi ŚWIECIE S.A. SEAT Report 2020 This report is also available in Polish Contents SECTION 1 SECTION 4 continued Introduction Safety at work 14 Report structure 1 Social activities for employees 15 Background: Who we are and 1 Community engagement 15 why our SEATs are important Government and 17 business relations SECTION 2 Environmental footprint 17 Assessment objectives and management and methodology Energy and carbon footprint 18 Objectives 2 Waste management 19 Methodology 2 Air and water emissions 20 SEAT team 3 International certification 21 Key stakeholders 3 standards Acknowledgements 3 Wood supply 21 SECTION 3 SECTION 5 Overview of surroundings Results of the assessment Świecie on the map 4 General observations 22 The Świecie and Chełmno counties 5 SEAT Attendance and process 22 About Świecie county 5 Positive findings 22 About Chełmno county 5 Employment 22 The Świecie municipality and town 6 Contractors 22 Demographics 6 Community involvement 22 Trade and industry 7 Safety and health 23 Infrastructure 7 Communication 23 Transport and connectivity 7 Managing maintenance 23 shutdowns Schools 7 Environmental management 23 Challenges identified and 24 SECTION 4 stakeholders’ further comments About Mondi Świecie and expectations Introduction 8 Employment 24 Background: The history of 9 Contractors 30 Mondi Świecie Shutdowns 32 Social management systems 11 Communication 33 People development 11 Gender diversity 12 Annexure: Inventory of 36 recent projects makes us Employee survey 12 Cooperation with schools 12 Glossary of terms 41 Communication practices 13 Contact details OBC Mondi SECTION 1 Introduction Background: Who we are and certification bodies and regulators, as well as the media. This engagement happens at a global, why our SEATs are important national, regional and/or operational level, with report Structure Mondi is a leading global packaging and paper our approach being one of both informal and group, and is contributing to a better world by formal multi-stakeholder engagement and making innovative and sustainable solutions, dialogue, with regular and transparent reporting. This report presents the results of Mondi working with thousands of local and global Świecie S.A.’s second SEAT assessment. Mondi Socio-economic and environmental conditions Świecie S.A. 1 (hereafter referred to as ‘Mondi brands using paper where possible, plastic Świecie’ or simply ‘Świecie’) manufactures when useful. Our business is fully integrated form an important backdrop to Mondi’s containerboard products, and is part of the across the packaging and paper value chain contribution to the sustainable development of Group’s Corrugated Packaging business unit. – from managing forests and producing the regions that we operate in. pulp, paper and plastic films, to developing This report is available in English and Polish, Our formal and transparent assessments and manufacturing effective industrial and and reflects the issues raised by stakeholders of the impacts of our industrial activities on during the SEAT sessions, as well as related consumer packaging solutions. the socio-economic environment of host responses from the mill’s management. Sustainability is embedded in everything communities and regions are carried out The remainder of the report is divided into the we do. In 2019, Mondi had revenues of periodically. This process, known as the SEAT following sections: €7.27 billion and underlying EBITDA of (socio-economic assessment toolbox), is a Section 2: €1.66 billion. Mondi has a premium listing on series of face-to-face, open dialogues with Assessment objectives and methodology, the London Stock Exchange and a secondary our stakeholders, and is facilitated by an introduces Mondi’s SEAT (the tool, its listing on the Johannesburg Stock Exchange independent third party. The results of the methodology and its process) and confirms (JSE) Limited. Mondi is a FTSE 100 constituent, assessment are published in a detailed SEAT our objectives for conducting a SEAT in and has been included in the FTSE4Good report and distributed to stakeholders. communities where we operate. It also Index Series since 2008 and the FTSE/ JSE presents details on the SEAT team and the The SEAT approach was introduced in 2005. Responsible Investment Index Series since 2007. key stakeholders invited to participate. The intention was to support our pulp and Section 3: We have over 26,000 employees working across paper mills and forestry operations in creating open and transparent dialogue with their local Overview of surroundings, provides more than 100 operations in more than communities. Through the SEAT process we’re geographical context, with a brief overview of 30 countries around the world. With this scale of the region and the municipal area wherein the able to strengthen our understanding of where operation comes responsibility: our customers mill is located. It also highlights selected key our impacts are and what our stakeholders and the world need new solutions from us, economic and demographic statistics as well expect. In some locations, SEAT assessments namely high-quality paper and packaging as a map of the region. are also used to inform the preparation of that’s fit for purpose, competitively priced and stakeholder engagement plans. 12 of our Section 4: designed to be reused, recycled or composted. About Mondi Świecie, presents details of the 14 mills and forestry operations (over 85%) Mondi Group and of Mondi Świecie specifically. To deliver against this strategy, we recognise to date have done a SEAT assessment at least In addition to its more than 50 years of proud that there is a broad range of stakeholders who once. These operations are located in Russia, history, this section also reflects on the mill’s have an interest in Mondi and its activities, and South Africa, Poland, Slovakia, Bulgaria, Czech social management system, including its Republic, Sweden and Austria. approach to and performance in terms of on whom our operations and products have employee development and social activities, an impact. An important part of our approach gender diversity, education, communication to doing business is engaging actively with our This report is available in English and practices, safety and its engagement with the stakeholders, to better understand and respond Polish, and reflects the issues raised community. It also provides information about to their concerns. This includes shareholders, by stakeholders during the SEAT the mill’s environmental performance (in terms customers, employees, suppliers, governments, sessions, as well as related responses of energy and carbon, waste, air and water non-governmental organisations (NGOs), emissions, and certifications in place) and its from the mill’s management. academic institutions, local communities, approach to wood procurement. Section 5: 1 In addition to Mondi Świecie S.A., the town of Świecie is also home to Mondi Corrugated Świecie Sp. z o.o. (our corrugated solutions plant) and Mondi Bags Świecie Sp. z o.o. (manufacturing industrial bags products) Results of the assessment, reflects the issues raised and comments made by stakeholders during the SEAT sessions. It is divided into ‘positive findings’ (i.e. aspects that the mill has been commended for, in terms of its approach and/or performance) and ‘challenges identified’ (i.e. aspects where some stakeholders voiced concern or expressed their further expectations of the mill). Individual findings have been grouped into broader categories of issues (viz. employment, contractors, shutdowns, and communication), with management’s feedback and response provided for each finding. Through the Świecie Green Project, Mondi Świecie has become self-sufficient in terms of energy production The report concludes with an inventory of recent projects, a glossary of terms and All SEAT reports are available on our website at contact details of the SEAT team. www.mondigroup.com/SEATS Mondi Group Świecie S.A. SEAT Report 2020 1 SECTION 2 Assessment objectives and methodology Objectives The goal of any Mondi SEAT process is to obtain a thorough understanding of how our stakeholders perceive a mill or operation, and what the positive and negative impacts are of that operation on the surrounding communities and stakeholders. The Mondi Świecie SEAT is no exception, with our primary objectives having been: • To ensure a systematic and regular update of our understanding of the area’s socio- economic context. This includes appraisal of social, financial, political and environmental trends as well as of the community’s developments, needs and expectations. • To establish new and/or strengthen existing stakeholder relations and networks, and enhance our communication with all. • To assess our community initiatives and identify where improvements are needed through social agreements with the community. • To receive open feedback from our stakeholders, and improve awareness and perception of the mill in the community. Methodology Mondi began to use the SEAT process when it was part of Anglo American plc. Subsequently, and in collaboration with our sustainability partner, Environmental Resources Management Ltd. (ERM), we have reviewed and adjusted the SEAT methodology to better meet the needs of our forestry, packaging and paper products business. As with all recent Mondi SEATs, the Świecie SEAT process included the following key steps: • profiling our operations and the communities that we most directly impact; • engaging with all interest