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Sustainability – a long tradition Future-oriented objectives

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					   S U S T A I N A B I L I T Y                                                                                           E D I T I O N


                                                          Corporate philosophy
                                                          Sustainability – a long tradition
                                                          As the largest manufacturer of coated recovered cartonboard throughout the world, and as the lead-
                                                          ing manufacturer of folding cartons in Europe, we have always concentrated on our core competen-
                                                          cies, with the clear objective of being the "best in business" in these areas, also in the future. Our
                                                          vision is to continue to grow with strong profitability in the long term and to assume a leading posi-
                                                          tion in new markets based on cost leadership and partnership with our successful customers. In this
                                                          regard, and in creating durable values, we orient ourselves on sustainable benefits for our
                                                          customers, shareholders and employees.
                                                          Responsible utilisation of resources                           bility in an integrative way, by taking into account
 Ladies and Gentlemen,                                    We primarily process renewable raw materials, and we use       the interests of investors and employees as well as those
                                                          state-of-the-art and high-performance technology, so that      of customers, suppliers and the environment.
 This special newsletter of the Mayr-Melnhof              we are sparing in the resources we use for manufacturing
 Group on the subject of sustainability gives             our high-quality cartonboard and folding cartons. After        Ethically respectful principles of action
                                                          production and use, these materials can be completely re-      To always transact our business as "honourable busi-
 you an overview of our strategies and solu-              cycled. This means that sustainability is an inherent part     nessmen" is the guideline for our activities, and it is the
 tions for sustainable business activities that           of the business activities of the Mayr-Melnhof Group.          basis of our claim to meet the ethical principles in the
 are achieved in close co-operation with all our                                                                         areas of legality, human rights and working standards
                                                          Harmony between economic and ecological responsibility         throughout our Group.
 stakeholders.                                            Competitiveness, with a high sense of responsibility, can
                                                          be combined with ecological and social criteria in the man-    Sustainability as a management task
                                                          ufacture of cartonboard and folding carton products while      The implementation of our sustainability strategy and an
 It would be pleasure if you would accompany
                                                          still being economically attractive. This is why we are con-   evaluation of the appropriateness of the corresponding
 us on a sustainability responsible course also           vinced that our company will be successful in the long         measures are tasks for management that are assumed by
 in the future.                                           term, meeting the interests of all stakeholders.               the management of the Group and by the management of
                                                                                                                         individual affiliated companies.
                                                          Best possible standards
 Wilhelm Hörmanseder                                      Our comprehensive objective, as market and cost leader,
                                                          is to sustainably establish the best possible standards
 CEO & Chairman of the Management Board                   throughout the Group and in all divisions of the enter-
                                                          prise. This means that we approach our social responsi-




Objectives of sustainability
Future-oriented objectives
The corporate culture of the Mayr-Melnhof Group has always been characterised by responsible
action. The enterprise has committed itself to the following sustainable objectives.




 Products                                                 Customer orientation
  We develop and sell functional, attractive and at the   With the objective of maintaining long-term and
  same time environmentally low-impact cartonboard        partner-like co-operation, we follow the principle of
  and packaging solutions of a high quality.              the highest level of professionalism in our customer
                                                          relations.
                                                                                                                         Products
                                                                                                                         We produce and sell modern cartonboard and packaging
                                                                                                                         solutions, with which we cover a need for functional, at-
                                                                                                                         tractive and at the same time environmentally low-impact
                                                                                                                         packaging, which is designed for an attractive presenta-
                                                                                                                         tion and the protection of consumer products. Thanks to
 Employees                                                Environmental protection                                       our constantly high product quality and production in a
                                                                                                                         network of production sites, we are able to guarantee our
  We continue to develop the technical and personal       We pursue an integrated approach in the protection of          customers optimum availability. User-oriented R&D – both
  skills of our employees, and we are committed to the    our environment and implement it through ongoing               for our products and our services – that we develop in
  principles of plurality and equality of opportunity.    optimisation of all environmentally relevant aspects           close co-operation with our customers has the objective of
                                                          and interests.                                                 minimising the consumption of raw materials and ad-
                                                                                                                         vancing the development of safe and modern products of
                                                                                                                         outstanding quality.
                                                                                                                         Continuation see page 2

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                                                              S U S T A I N A B I L I T Y           E D I T I O N



Continuation from page 1                                                                                                    Environmental protection
                                                                                                                            With the objective of advancing the environmental friend-
Customer orientation
                                                                                                                            liness of our products, we continuously monitor the
The highest degree of professionalism is the basic princi-
                                                                                                                            environmental effects of our activities, and we examine
ple in all our business relations with our customers.
                                                                                                                            and evaluate the possible influences of new products and
Cost-optimised pricing and adherence to delivery dead-
                                                                                                                            processes. In this way we meet the environmental regula-
lines, as well as competent advice and a systematic survey
                                                                                                                            tions that are in force, and we create potential for ongoing
and evaluation of customer satisfaction, are the basis of
                                                                                                                            improvements. The orientation towards state-of-the-art
the long-term co-operation that we strive for. Through the
                                                                                                                            technology that is practised throughout our Group
utilisation of modern IT-supported information systems,
                                                                                                                            ensures continued optimisation of all environmentally
and through an ongoing training of our sales team, we
                                                                                                                            relevant interests. Our activities for protecting the
continuously improve the quality and service of our sales
                                                                                                                            environment follow an integrated approach, which
process.
                                                                                                                            regularly includes downstream and upstream sectors,
                                                                                                                            such as sales, transport and logistics, whereby we give
                                                                                                                            preference to suppliers that also have committed them-
                                                                                                                            selves to sustainability.



                                                             Employees
                                                             Sustainable high performance and motivation of our
                                                             employees are of the essence for the long-term success
                                                             of our Company. That is why we demand and support the
                                                             systematic development of technical and personal skills
                                                             through our institutionalised education and training
                                                             system. In our performance-oriented and international
                                                             company culture, we have committed ourselves to the
                                                             principles of plurality and equality of opportunity which
                                                             includes responsibility with regard to each and every em-
                                                             ployee.

                                                             Vitality and health of each individual are an important
                                                             basis for a continuous ability to perform. This is why a
                                                             variety of measures have been implemented to assure
                                                             good working conditions, health and occupational safety.
                                                             We use flexible working time models for transferring more
                                                             individual responsibility to our employees. Responsible
                                                             involvement of our employees in the performance process
                                                             is one of our top priorities. Thus we apply success-
                                                             oriented compensation systems throughout our Group.
                                                             We strive for a constructive dialogue through co-opera-
                                                             tion with labour representatives within the Group; and the
                                                             establishment of works councils is assured at all sites.


Economic sustainability
Financial solidity
The focus of our corporate strategy is to remain sustainably profitable, to grow and to strengthen the
competitiveness of the Mayr-Melnhof Group, by concentrating on our core business and pursuing cost
leadership. Continuity, solidity and a high awareness of risks characterise the long-term approach of
the Group.
                                                                                                                            Production sites of the Mayr-Melnhof Group
                                                                                                                            • MM Karton, 8 mills
                                                                                                                            • MM Packaging, 28 production sites
                                                                                                                            • Headquarters in Vienna
Organisational structure                                     Capital structure
The performance of the Mayr-Melnhof Group is exclusively     The shareholder structure of the Group is characterised
concentrated on the production and marketing of carton-      by continuity. Approximately 65% of the shares are held by
board folding carton products, which are the core sectors    a core group of family shareholders, whereby the other
of our Group and have been subdivided into two opera-        35% is primarily held by institutional investors.
tive divisions, namely MM Karton and MM Packaging. Our
company headquarters are located in Vienna. In total, the
MM Division currently operates 36 production sites in        Sales of the Mayr-Melnhof Group by regions 2008
15 countries of Europe and the neighbouring regions:                               4%
8 cartonboard mills and 28 packaging companies. The                         4%
8,240 employees of the Mayr-Melnhof Group achieved a
sales revenue of 1.730 million Euro in 2008.

Overview of the Mayr-Melnhof Group,                          24%
values in millions of Euros
                                 2005       2006    2007
                                                                                                               68%
Sales                            1.455      1.516   1.737

Profit for the year                   95     107      116

Cash Earnings                         183     191    207
                                                                                                           Western Europe
Equity ratio                      57%        57%     61%
                                                                                                           Asia
Employees                       7.296       7.969   8.657                                                  Eastern Europe
                                                                                                           Other

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                                                              S U S T A I N A B I L I T Y          E D I T I O N




Corporate governance                                         the foodstuffs industry are documented by a hygiene            as economically justifiable, complemented through
The basic management standards of the Mayr-Melnhof           management system according to HACCP or BRC/IoP, with          appropriate safeguards and insurance programmes of the
Group have always observed the principles of proper          which we fulfil the high product standards in this             Group.
corporate governance, with the objective of ensuring         sensitive area.
responsible management and control of the company for
                                                             Regular re-certification processes document the ongoing        Active involvement in legislative and
providing added value.
                                                             improvement to higher standards and create the required        industrial commissions
Comprehensive and systematic transparency is ensured         transparency.                                                  By co-operating in commissions on legislation and
by us through the application of the Austrian Corporate                                                                     standardisation, we actively work on a standardisation of
Governance Codex (ÖCGK; www.corporate-gover-                                                                                future requirements for our products, so that we can meet
nance.at), to which the Mayr-Melnhof Karton AG has           Risk management                                                these new standards in a timely manner.
voluntarily committed itself since its introduction in the   Because of its international business activities, the
year 2002.                                                   Mayr-Melnhof Group is subject to a large variety of risks.     In defining tasks for basic research, we regularly
                                                             However, due to the broad geographical distribution            co-operate with international research institutions and
This Codex, which is subject to continuous development       of our production sites, the many sales segments and           universities on a project-oriented basis. We meet our
according to international capital market practice,          the flexible adaptation possibilities of our production, the   responsibility for maintaining the long-term competitive-
contains all relevant regulations of Austrian legislation    Group as a whole is never subject to individual product-       ness of our industry through an active involvement in the
and, in addition, the rules and recommended practices for    oriented or market-oriented risks.                             work of industrial associations at a European and a
a responsible corporate management, which are custom-                                                                       single-state level, whereby the objective is to design the
ary at an international level.                               The objective of the risk management system, which has         best possible framework conditions (CEPI, ECMA, ...).
                                                             been established throughout the Group, is to recognise
                                                             risks at an early stage, and to take those preventive          Anticorruption
The Corporate Governance Report of the Mayr-Melnhof                                                                         As honourable businessmen, we strictly oppose any form
Group is regularly published in the corresponding annual     measures that are required for an effective management
                                                             and protection of our Company. Risks are regularly and         of giving or accepting illegal gifts.
reports.
                                                             systematically identified for this purpose, are evaluated      Human rights
Management systems                                           as to their potential impact and are overcome on the basis     The company commits itself to respecting human rights
Through the utilisation of appropriate management            of a defined risk policy. Due to our long-term and             and it adheres to the principles of equality of opportunity
systems, especially in the areas of quality assurance,       undeviating focus on our core business areas, we dispose       and plurality.
environmental protection and workplace safety, we docu-      over an extremely solid basis for recognising potential
ment the ongoing optimisation processes of our individual    risks at an early stage, and for estimating their possible
companies within the Group.                                  consequences in an adequate manner.

This internal benchmarking within our group is designed      The prevention of dangers, for instance through regular
to implement "best practice" at each location. All sites     measures with regard to workplace safety, fire protection
producing folding cartons and cartonboard products for       and maintenance, has the highest priority and is, as far



Ecological responsibility
Sustainable resource management
Besides the product-technical and economic advantages, the utilisation of cartonboard in the world
of packaging also represents the most sustainable packaging solution from an ecological point of view.
It is based on the utilisation of renewable resources, showing the highest recycling rate and absolutely
lowest CO2 emission values, throughout the entire value-added chain.
By ensuring an efficient and responsible use of resources, we are making a substantial contribution to meeting our
sustainability objectives. The improvement measures that we take include all basic resources that are required for the
production of cartonboard and folding carton products, such as fibre, energy and water.




  Fibre                                                        Energy                                                       Water
  We use about 1.7 million tons of fibre raw materials per     We mainly utilise natural gas as a primary source of         By means of recycling systems, and through increases
  year for cartonboard production. Approximately 80%           energy. Plants for the co-generation of heat and power       in the efficiency of the production processes, the total
  of this material consists of recovered paper, and 20% of     in our cartonboard mills are highly efficient in             consumption of water is continuously reduced.
  virgin fibres that are obtained from sustainably             producing steam and electricity for cartonboard pro-
  cultivated and controlled forests.                           duction, through the use of natural gas.



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                                                                 S U S T A I N A B I L I T Y                                             E D I T I O N




Fibres



With a share of approximately 80% of the total fibre material that is used by MM Karton, recovered
paper is quantitatively the most important raw material for manufacturing cartonboard. The re-utili-
sation of paper is, as part of a cascaded utilisation of the renewable raw material wood, of great
ecological benefit, as it increases the life cycle of the material within the value-added chain by
several factors.

Besides energy savings during the preparation of the raw        of recovered paper is subject to strict quality assessment
material, the ecological advantage of the utilisation of        through the ISO quality management system imple-
recovered paper lies mainly in the preservation of our          mented by MM Karton.
natural resources.
                                                                Besides guaranteeing supply security, our procurement
MM Karton obtains its recovered paper exclusively from          department has been organised to ensure both an
certified sources in European urban centres. The quality        optimal sourcing and the highest quality control.




  The sustainability aspect of paper and cartonboard recycling has been strongly anchored in the pub-
  lic consciousness. Consumers are increasingly collecting paper and cartonboard products, thereby
  contributing to the implementation of the concept of a closed product cycle.

  The recycling of recovered paper is part of an established                                                                                                                         European declaration
  sustainability approach in our society, and it closes the     Millionen Tonnen
                                                                                                                                                                                     of the paper and cartonboard industry
                                                                70
  loop of the paper and cartonboard cycle. In the produc-                                                                                                    63,4%
                                                                                                                                                                     64,5%
                                                                                                                                                                             66,0%   The European paper and cartonboard industry is
  tion of paper and cartonboard, recovered paper is an                                                                                                                               committed to a sustainable development of the indus-
                                                                60
  important secondary raw material.                                                                                                                                                  try. In a voluntary commitment, the achievement of a
                                                                                                                            53,0%
                                                                                                                                                                                     recycling ratio of 66% has been adopted as an
                                                                50
  However, recovered paper cannot be recycled without                                           45,6%                                                                                objective by 2010.
  limitation. Depending on the quality of the paper/carton-     40 38,0%
  board and the recycling process, a fibre can be reused                                                                                                                             In addition to increasing the general recycling ratio,
  between four and six times. This is why it is always          30                                                                                                                   this declaration also documents the objective of
  necessary to add mechanical pulp to the recovered fibre.                                                                                                                           optimising the utilisation of recovered paper through-
                                                                20                                                                                                                   out the value-generation chain. An essential element
  As a consequence, sustainable production of cartonboard                                                                                                                            is the presentation of a package of measures that is
  is based on an effective combination of factors, including:   10                                                                                                                   designed to raise the quality of recovered paper and,
  • The utilisation of virgin fibre from renewable forests                                                                                                                           with that, to increase its importance as a valuable
     (essential for the start of the recycling loop) and;        0
                                                                     90    91   92    93   94     95    96   97   98   99    00     01   02   03   04   05   06      07      10      secondary raw material for the paper and cartonboard
  • The utilisation of recovered fibre, which supports a sus-        Utilisation + Net Trade    Recycling Rate
                                                                                                                                                                                     industry.
     tainable cultivation of forests and leads to reduced en-
     vironmental impact.                                             Recycling rate = percentage of recovered paper in relation to
                                                                     the overall paper consumption (Source: CEPI, "European dec-
                                                                     laration of the paper industry", 2007)




Approximatly 20% of the fibre raw material that is used by MM Karton for producing cartonboard consists of virgin
fibre (wood or pulp). Our objective is to obtain the entire quantity of fibre from certified forests. Currently, some 60%
of the utilised virgin fibre is certified, and approximately 40% originates from controlled sources that practice
sustainable forestry.

Due to the intensive co-operation with our suppliers, the       purchased and utilised wood and pulp originates from
amount of virgin fibre originating from certified forests       sustainable forestry, has been harvested according to
amounts to approximately 200,000 tons. This volume              the applicable legal regulations and has been purchased
corresponds to a share of approximatly 60% of the total         in correspondence with the principles and criteria of the
requirements of virgin fibre, about 50% is PEFC and 10%         corresponding standard.
is FSC. Direct purchases of wood come exclusively from
the immediate neighbourhood of the corresponding                Certifications within the Mayr-Melnhof Group
cartonboard mills, so that short transport distances are        The cartonboard mills in Baiersbronn (Germany) and
ensured.                                                        Eerbeek (the Netherlands) which use virgin fibre have
                                                                been certified according to FSC and PEFC. Both systems
PEFC and FSC certifications                                     were integrated into the existing quality management
PEFC (Programme for Endorsement of Forest Certification         system. Due to a limited availability of FSC certified
Schemes) and FSC (Forest Stewardship Council) are forest        virgin fibre in Middle and Western Europe, it is currently
certification schemes that are equally recognised by the        not possible to produce and sell more than a limited
international community, the companies, forests owners          quantity of FSC certified cartonboard.
and the respective governments. Today, 8% of the global
forest surface is certified, whereof PEFC has certified 5.5%,   The certification of other production sites is currently
i.e. nearly double the surface of FSC, and is clearly more      being evaluated. The non-certified production sites of
strongly represented in Middle and Western Europe.              MM Karton purchase virgin fibre also merely from
Cartonboard mills certified according to one of the two         sustainable forestry.
systems are able to provide consistent proof that all

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                                                               S U S T A I N A B I L I T Y             E D I T I O N



Chain of Custody
The "chain of custody" certification            Cartonboard Lifecycle
was derived from forestry standards
for the purpose of marketing forest
products that conform to the
certification criteria. It allows to
trace the flow of wood seamlessly
throughout the entire production
process.

In the "processing chain" of wood,
which reaches from the forest
to a finished product made of
cartonboard, all of the processors in
the added-value chain are included
for evaluation. A continuous
presentation of the "chain of
custody" can only be ensured if every
individual processor is certified.




Energy

MM Karton ensures ongoing optimisation of all production processes in its mills, with the objective
of achieving a sustainable increase in energy efficiency.


On the motto "e.fficiency", MM Karton has launched the
implementation of plans for a significant reduction of
                                                                                                                                                  -2%
specific energy consumption. Starting with the base year
2007, the objective of this initiative was to reduce energy
consumption by approximately 10% for each manufac-                                          -5%
tured ton of cartonboard.
                                                                                                                                                                           -12%
                                                                                                                                                              -10%
The identified measures include approximately 400                                                               -7,5%
individual projects. These cover all areas of cartonboard
                                                                                                                                                                                        -16%
production: from the initial processing of the raw
material, the operation of the board machine, to equip-
ment and the proprietary power stations and wastewater
treatment plants.

In the 200 individual projects that have been realised so             2006                 2007                 2008                 2000        2002         2004         2006        2007
far, it was possible to achieve significant savings in the    Development of the specific total energy consumption at the car-   Frohnleiten mill: Development of specific energy consumption,
areas of process optimisation, recycling of thermal energy    tonboard division of the Mayr-Melnhof Group (in kWh/to).           per ton of cartonboard produced (in MWh/to cartonboard).
and improvements in the piping of steam and condensa-
tion systems.


  e.fficiency of the energy supply,                             e.fficiency of stock preparation,
  MM Karton mill, Hirschwang                                    MM Karton mill, Neuss
  The projects that were launched at the Hirschwang             The ongoing investments that are a part of the
  mill are exemplary for the Group’s efforts to increase        "e.fficiency programme” include the modernisation of
  the efficiency of energy supply.                              raw material processing and the installation of washing
  • Thermal energy generation: Reduction in the use             jets (Ecomizers).
    of natural gas by 20%, through the utilisation of           • Modernisation of raw material processing:
    waste paper rejects sewage sludge and biomass as              Thanks to this modernisation measure, an increase in
    primary energy providers.                                     the recuperation of recovered fibres by several
  • Co-generation: The deployment of a steam turbine              thousand tons per year has been made possible. This
    makes it possible to cover the greater part of the            increased share at the same time leads to a signifi-
    heat requirements of the cartonboard manufactur-              cant reduction of rejects. An additional positive effect
    ing machine in a highly efficient manner. The                 of this modernisation measure, and a more efficient
    benefits of co-generation are exploited to a                  design of the process, is a reduction in energy
    maximum. 50-60% of the electricity requirements               consumption.
    are provided in this way.                                   • Installation of washing jets
  • Hydroelectric power: Three small hydroelectric power          Within the framework of further measures for raising
    plants produce a sustainable 10-15% of the                    efficiency, washing jets or “Ecomizers”, as they are
    electricity requirements.                                     called, were installed. With these “Ecomizers”, it is
                                                                  possible to recover the majority of those fibres that
                                                                  are part of the rejects of cleaning facilities.
                                                                A not insubstantial side-effect: This optimisation of the
                                                                production process has led to a reduction of freight
                                                                lorry traffic by nearly 1000 trips per year.




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                                                                 S U S T A I N A B I L I T Y          E D I T I O N




                                                                Water – a valuable resource

                                                                MM Karton has set itself the goal of reducing its total consumption of water sustainably by means of
                                                                continuous optimisation of water consumption throughout the production process.
                                                                Sustainable water usage                                      Water treatment
                                                                Water is a valuable commodity. Responsible use of the        Besides a reduction in the quantity of utilised fresh water,
                                                                resource water, as an essential operating component in       a further focus is on a sustainable reduction and
                                                                the production process, has highest priority for MM          improvement of the wastewater volumes. Significant
                                                                Karton. Water is used throughout the entire production       advances have been achieved in this area over the past
                                                                process: Starting with the dissolution of the recovered      few years.
                                                                paper and the conditioning of the fibre content, up to its
                                                                use as a cooling agent and the production of steam for       All the water, which is used several times during the
                                                                energy generation.                                           production process, is purified and conditioned in
                                                                                                                             high-technology wastewater treatment facilities before
                                                                The required fresh water is taken from nearby rivers and     leaving the factory. Only thereafter the water is fed into
                                                                extracted from the groundwater, or it is supplied by the     nearby rivers. Continuous surveys and evaluations of the
                                                                surrounding communities. With the objective of mini-         wastewater values are carried out by specially trained
                                                                mising the supply of fresh water, the most advanced          personnel of the factory, and by the regional environmen-
                                                                technologies are implemented for recycling the water         tal protection authorities. The data shows that the
                                                                within the factory and using it several times.               threshold values regularly fall below those that have been
                                                                                                                             defined in national water legislation.

                                                                  Careful utilisation of water                                 Sustainable water treatment,
                                                                  resources,                                                   MM Karton mill, Deisswil
                                                                  MM Karton mill, Frohnleiten                                  The installation of a biological phase in the proprietary
                                                                                                                               water treatment plant in the year 2005 has reduced
                                                                  The Frohnleiten mill                                         the freshwater consumption by one third. It was
                                                                  requires approximately                                       possible to reduce the freshwater volume from 15 l
                                                                  2.5 million m3 of fresh                                      per kg of cartonboard to 10 l/kg. The mill is making
                                                                  water each year for its                                      efforts to reduce this consumption still further in the
                                                                  production process. By                                       medium term.
                                                                  interlinking the process                                     The biological sludge that is produced in the bio-
                                                                  sequences and through                                        logical phase of the water treatment facility is trans-
                                                                  the use of state-of-the-                                     ferred to a communal waste disposal facility, where it
                                                                  art technologies, the use                                    is used for the generation of biogas.
                                                                  of water for industrial
                                                                  purposes was sustain-
                                                                  ably reduced in the years
                                                                  1997 to 2007, declining
                                                                  from 7.5 l to 5.2 l per kilo-
                                                                  gramme of cartonboard.




Transport and logistics
Lean logistics
We have established an efficient transport and logistics network for handling all of our business
processes throughout the entire supply chain. This has resulted in a minimisation of costs and in a
reduction of transport-generated emissions.
The "Lean Logistics" project is exemplary for the ongoing       transport companies and forwarders that work with the
optimisation processes throughout the Group. The                Mayr-Melnhof Group must observe our sustainability
primary focus is on efficient route planning, shorter trans-    standards.
port distances, an improvement in working processes and
the transfer of transports from the road to railways.           Road and railroad
Special attention in this regard is paid to a minimisation of   MM Karton is committed to expanding the utilisation of
traffic with suboptimal loads. All transport data is            railroad transport facilities. Due to local circumstances
collected for this purpose and evaluated with the objective     that apply both to our mills and our customers, it will,
of raising efficiency potentials.                               however, not be possible to achieve a 100% delivery via
                                                                railroad networks.
The specific requirements made on transport companies
that work for us is another focal point of this project: All


  Environmentally friendly loading optimisation, MM Karton mill, Gernsbach
  Optimisation of freight loading at the German Gernsbach cartonboard mill is a perfect example of the implementa-
  tion of the "Lean Logistics" project. An increase of 6% in the loading volume of departing freight lorries in compar-
  ison to the same period of 2006, meant a clear reduction in the number of lorries that were required for the transport
  of cartonboard.
  This leads to an extremely positive effect on the overall CO2 emissions.


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                                                                 S U S T A I N A B I L I T Y           E D I T I O N




Climate protection
A positive balance for the environment
The Mayr-Melnhof Group pro-actively supports measures for a sustained protection of the climate.
Investments in programmes for raising efficiency have reduced emissions significantly.
The adoption of programmes intended to counteract               do occur are monitored in line with legal regulations, and     the objective of distinctly reducing emission of the
climate change is one of the most important challenges for      these emissions lie clearly below the corresponding thres-     climatically relevant CO2 gas volumes. Every company that
all responsible groups in our society. The business world,      hold values.                                                   is not able to achieve the target objectives of the issued
the political authorities and science are promoting solutions                                                                  emissions certificate must purchase additional certificates.
that aim to prevent a further increase in greenhouse gas        Direct exhausts from cartonboard manufacturing machines
emissions. The point of departure lies primarily in             consist primarily of water vapour. MM Karton endeavours to     As of 31 December 2008, all of the emissions of the Group
measures that contribute to a more efficient utilisation of     utilise state-of-the-art technology for the continued          during the preceding period were covered by emissions
existing resources.                                             minimisation of exhaust emissions. Energy consumption in       certificates. Emissions certificates for the period 2008 to
                                                                the production process is evaluated continuously for this      2012 have already been issued. While these certificates are
Exhaust emissions                                               purpose.                                                       for a reduced volume of emissions, they will nevertheless
The manufacturing processes for cartonboard do not gen-                                                                        cover our requirements.
erate exhaust emissions that burden the environment.            Emissions certificates
Emissions are primarily generated during the combustion         The system for trading emissions certificates was
of fossil fuels for energy production. Those emissions that     established in the European Union in the year 2005, with


  Award of the Austrian „klima:aktiv“ certificate,
  MM Karton mill, Frohnleiten
  The climate protection programme that has been launched by the Austrian Federal Ministry for the Environment aims at
  supporting measures for reducing CO2 in the field of corporate mobility management and the building sector.
  In 2007 the MM cartonboard mill at Frohnleiten was awarded the "klima:aktiv" certificate for the acquisition of a "UNIMOG"
  rail-road vehicle, as an alternative to the deployment of the existing diesel locomotive.
  The objective of this investment was to achieve a significant reduction of noise levels and emissions by the use of the
  UNIMOG in comparison to the diesel locomotive, through low noise operation, shorter shunting path and a clear reduction
  in fuel consumption.




                                                                In the light of climate change and efforts at climate pro-    The Pro Carton approach: Binding for the Mayr-Melnhof




       C0
                                                                tection, companies strive to explain their ecological foot-   Group
                                                                print. A presentation of such a carbon footprint is           The Mayr-Melnhof Group is committed to observing the
                                                                designed to help consumers in evaluating the environ-         strict and scientifically founded guidelines of the Pro

         2                         in
                                           t
                                                                mental impact of the production process and the
                                                                products.
                                                                                                                              Carton standard, which has developed a joint and uni-
                                                                                                                              form approach for the calculation of the carbon foot-

                               tpr                                                                                            print, together with other paper, cartonboard and

                n          F oo                                 The calculation method                                        packaging manufacturers.

          Carbo
                                                                The approach for calculating the carbon footprint of car-
                                                                tonboard products starts with the raw materials (cra-
                                                                dle) and ends at the exit gate of the folding carton
                                                                manufacturer (gate).




                                                                                                                                                       Industry Carbon Figures by Pro Carton




                                                                      CO2 stocked in the forest in roots and
                                                                        trunks is at least neutral but some
                                                                      studies show the uptake to be higher




                                                     Carbon stored in                                     Fossile CO2 emissions from
                                                   cartonboard products                              cartonboard produced and converted
                                                        1474 kg/tons                                                1004 kg/tons




                                                                                            -7-
                                                                      S U S T A I N A B I L I T Y            E D I T I O N




Waste management

MM Karton acts according to the principle: Prevention before processing before disposal. This
principle has been taken into account in the waste management concepts of the factories, leading to
corresponding measures. The observation of these guidelines is monitored both by our mills and by
the competent environmental protection authorities.
During the production of cartonboard, a number of differ-            during cartonboard production consists of residues
ent types of waste occur: Part of this waste is incinerated          of fibre materials, and the sludge from recovered paper
and converted into energy for production, while other                processing as well as wastewater treatment.
components of the waste are recycled. Residual compo-
nents of waste are disposed of at external dumping                   Rejects and fibre sludge are transferred to a proprietary
grounds according to applicable regulations.                         facility for thermal residue processing that converts this
                                                                     material into energy for the cartonboard production
Quantitatively, the majority of the waste that occurs                process.



  Sustainable residue processing, MM Karton mill, Deisswil
  The strict legal regulations for collecting recovered paper that are in force in Switzerland, which also provide for a
  clear and clean separation, mean that only a very small volume of waste residues is generated by the processing of
  this material in comparison to other countries. The share of the volume of rejected substances lies at 2 to 3 percent
  of the available recovered paper volume. The disposal of such reject substances is carried out at a well-known paper
  mill in the neighbourhood. Here these residual substances are incinerated in a modern facility generating process
  steam.



                                                                     Focus on people
                                                                     Social responsibility
                                                                     Leadership based on commitment has always been an important management concept in our
                                                                     corporate culture that is characterised by trust and the expectation of top performance. Subsidiarity
                                                                     and openness are the fundamental principles of our organisation.
                                                                     The professional know-how and the efforts of our                       and training of our employees, as well as on increasingly
                                                                     employees will determine the long-term success of our                  effective recruitment of skilled personnel. The objective is
                                                                     group of companies. Within our HR programme, we have                   to safeguard our competitive strength and promote our
                                                                     strengthened the focus on future-oriented development                  long-term growth strategy in a sustainable manner.



Education                                                            Apprentice programme                                                   Health and occupational safety

In view of demographic developments and the increasing
lack of qualified technical personnel, we have realigned
the focus of our personnel development on guaranteeing               The start of a career, and guidance in the development of              The vitality and health of each individual is an important
framework conditions that will make it possible for our              further career opportunities, is seen as an integrated                 basis for a continuous ability to perform. This is why a
employees to fully develop their talents over the long term          process in the Mayr-Melnhof Group. We assume this task                 variety of measures have been implemented with a view to
and, with increasing competence, to assume more                      with the highest sense of responsibility for sustainable               ensure good working conditions, health and safety at the
responsible assignments within an international context.             support and development of our younger staff members                   workplace.
In this regard, promotion possibilities and international            at a professional level. The development of the highest
deployment within the Group are actively supported.                  technical competence, personal qualities and an ability to             Measures for the prevention of industrial accidents, which
                                                                     be active internationally, are the foundations on which we             lead to an increase in occupational safety, are a primary
                                                                     have built our international trainee programme.                        concern for the Mayr-Melnhof Group. Our objectives are:
                                                                                                                                            continuous reduction of the accident rate, the promotion
  MM Academy                                                                                                                                of safety consciousness through ongoing training of our
  The MM Academy, a group-wide institution for devel-                                                                                       employees, the availability of the necessary safety
  opment and training of technical and personal skills                                                                                      information and the demand on our suppliers to provide
  and high-level qualifications, was established for our                                                                                    safe services, which are substantiated by the submission
  employees in 2006. The educational offer of the                                                                                           of safety certificates.
  MM Academy is open to all employees of the Group.
  Besides specific technical know-how and languages,
  the focal points of our educational programme                                                                                                           Sustainabilty Contact
  include the further development of social and leader-                                                                                         For further details on sustainability items please
  ship skills. More than thousand employees receive                                                                                          contact our department for Corporate Communication.
  on several hundred training days each year, advanced                                                                                                       Tel +43 1 50136 91180 or
  training at the MM Academy.
                                                                                                                                                        sustainability@mayr-melnhof.com




                        Imprint
                        Publisher and Media Owner                                  Authors of     Eva Winterer                                   Graphic processing
                                      Mayr-Melnhof Karton Gesellschaft m.b.H.,     this edition   Stephan Sweerts-Sporck                                       24u – Nebosis & Reiss OEG, www.24u.at
                                      1041 Wien, Brahmsplatz 6, Österreich                        Erwin Gössler, Arthur Burkhalter               Printed by    Ernst Schausberger & Co Ges.m.b.H.,
                        Editor        Eva Winterer, Tel: +43 1 50136                              Hans Joachim Stahl, Christian König                          Gunskirchen
                                                                                   Picture        Mayr-Melnhof Karton Gesellschaft m.b.H.
                                                                                   Credits        www.fotolia.com



                                                                                                  -8-

				
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