Climate Change Data

Environmental Metrics

ESG Focus Areas

• Renewable raw materials and recyclability
• Packaging safety
• Energy consumption and emissions in cartonboard production
• Water consumption in cartonboard production
• Waste from production
• Employee education and training
• Employee safety and health
• Socially acceptable working conditions for employees
• Local employment and income effects
• Compliance with regulations and requirements
• Anti-corruption and anti-competitive behavior

Environmental Achievements

• Significant reduction in energy costs, greenhouse gas emissions, and other emissions through systematic energy management.
• Completion of a new gas and steam power station at the Frohnleiten site in Austria, reducing NOx emissions and increasing efficiency.
• Increased use of hydroelectricity.
• Phasing out the de-inking process at the Eerbeek mill, eliminating reject material and disposal needs.
• Thermal utilization of wastewater sludge at the Hirschwang mill, reducing waste volume and gas consumption.
• Improvements in the quality of packaged items and a reduction in foils.

Social Achievements

• Numerous established programs for employee development, continuously optimized and systematically accompanying employees along their career paths.
• High level of continuity in employee numbers.
• Zero cases of child labor and forced labor reported.
• Zero legal actions against corruption or anti-competitive behavior.

Governance Achievements

• Compliance program subject to continuous further development.
• Implementation of an independent Compliance Officer responsible for compliance training and internal/external reporting.
• Strict adherence to laws and regulations in all countries of operation.
• Annual reporting on anti-corruption measures to the Supervisory Board.

Climate Goals & Targets

Environmental Challenges

• Significant increase in recovered paper prices in a highly competitive market.
• Potential risks of chemical discharge during production (minimized by safety measures and compliance with regulations).
• Potential risks of corruption, anti-competitive behavior, and human rights violations in non-European countries (addressed by Code of Conduct and complementary measures).

Mitigation Strategies

• Consistent price policy and systematic cost management.
• Strict safety regulations and measures to counter the risk of chemical discharge.
• Code of Conduct and complementary measures to address corruption, anti-competitive behavior, and human rights violations.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Independent verification of raw materials procurement and compliance with international environmental and social standards.
• Obtaining virgin fibers from sustainable sources.
• Expecting business partners to comply with legal regulations and industry standards.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards (Core option)

Certifications: ISO 9001, BRC Packaging, FSSC 22000, EN 15593, ECMA GMP, ISO 14001, EMAS, ISO 50001, PEFC™, FSC®

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• New products that have only been on the market for a few years account for around one fifth of MM Karton’s sales.

Awards & Recognition

• Top Company for Apprenticeships (Austria)
• Great Place to Start (Great Place to Work®)

Environmental Metrics

ESG Focus Areas

• Renewable raw materials and recyclability
• Ecological criteria in procurement
• Product safety
• Energy consumption and emissions in production
• Water consumption in production
• Waste in production
• Employee education and training
• Employee safety and health
• Socially acceptable working conditions for employees
• Compliance with regulations and requirements
• Anti-corruption and anti-competitive behavior

Environmental Achievements

• Reduced use of pulp and white grades of recovered paper in recycled fiber-based cartonboard.
• Improvements in fiber consumption through product-related and production-related adjustments (e.g., production in the Neuss mill in three instead of four layers), reduction of waste and reject material, and optimized sources of supply.
• Improvements in chemicals consumption through process modifications and the use of substitutes (e.g., discontinuation of de-inking at the Eerbeek site and wastewater treatment in the Baiersbronn mill).
• Commissioning of a new gas and steam power station at the Frohnleiten site to reduce NOx emissions and increase efficiency.
• Significant reduction in specific energy consumption through the 'e.fficiency' initiative.
• Additional measures to reduce the consumption of fresh water in production, modernizing or upgrading water treatment plants.

Social Achievements

• Provided basic and advanced training to around 4,000 participants in job-specific subjects in the “MM Academy”, including an increasing range of e-learning courses.
• Relaunched the career section on the Group's website and continued attendance at selected career and industry events.
• Collaboration with engineering and economics students in projects and case studies, including a new collaboration with the St. Pölten University of Applied Sciences.
• Reevaluating specific workloads, improving the working environment, and optimizing occupational safety, accident prevention, and reporting discipline.
• Resilience and resource mobilization training courses to help employees deal with stress and strain.

Governance Achievements

• Amendment of the internal compliance guideline regarding compliance-relevant information in the Company and related communication.
• Internal information campaign about compliance with the Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• Passing on higher input prices to customers, particularly for cartonboard.
• Potential risk of encroachment on local communities and ecosystems through illegal logging.
• Potential risk of product contamination, harm to consumers' health, and violations of regulations.
• Exhaust air emissions from energy production.
• Risk of water shortage in dry regions.
• Waste generation in production.
• Risk of occupational injuries and psychological stress for employees.
• Potential risks of human rights violations in countries outside Europe.
• Potential risks of corruption, anti-competitive behavior, and non-compliance with standards.

Mitigation Strategies

• Consistent rationalization measures in the plants to absorb pressure on margins.
• Chain-of-custody certification according to FSC® and PEFCTM standards for all cartonboard mills.
• High quality management standards and regular internal and external inspections.
• Continuous measures to reduce exhaust air emissions.
• Sustainable reduction in water use by optimizing production processes and recirculation.
• Waste management plan implemented by waste management officers, using authorized waste collectors and disposal firms.
• Active measures to promote employees’ health, including company doctors, training, and preventive check-ups.
• Compliance with applicable regulations concerning working time, appropriate remuneration, and human rights.
• Compliance program with protective measures in systems, regular monitoring, dual control, and guidelines (Code of Conduct).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Chain-of-custody certification (FSC®, PEFCTM)
• Strict quality standards for recovered paper (EN643)
• Certified sources for raw materials
• Verification of origin and quality
• High level of supply reliability

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Increase in costs of CO2 certificates
• Changing or stricter guidelines and regulations

Opportunities

• Advancing digitalization and automation raising efficiency in production processes, leading to cost savings.
• Developments in the transport sector contributing to fuel and personnel cost savings.
• Increased sales volumes due to urbanization, smaller households, and growing private consumption.

Reporting Standards

Frameworks Used: GRI Standards (Core option)

Certifications: FSC®, PEFCTM, ISO 9001, BRC Packaging, FSSC 22000, EN 15593, ECMA GMP, ISO 14001, EMAS, ISO 50001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• FOODCARTTM
• Fluorine-free barriers

Awards & Recognition

• Austrian quality seal “Top Company for Apprenticeships”
• “Great Place to Start” by Great Place to Work®
• TraineeNet’s award for “Explorer” and “Ranger” management programs

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Improved CO2 footprint of cartonboard by 9% compared to 2015 (old method)
• Increased use of renewable energy sources in cartonboard production
• Reduction in transport emissions through multimodal logistics concepts

Social Achievements

• Established Group function "Sustainability Management"
• Implemented comprehensive safety measures to reduce Covid-19 infections
• Provided position-specific training and further education to around 4,000 participants in the "MM Academy"

Governance Achievements

• Established a central function "Sustainability Management" reporting directly to the Management Board
• Independent audit of the consolidated non-financial report by PwC Wirtschaftsprüfung GmbH
• Supplemented the basis for variable remuneration of managers by criteria relating to occupational safety and climate protection (Management Board only)

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to Covid-19 pandemic
• Higher volatilities in the volume and prices of paper for recycling due to lockdowns
• Possible new regulatory requirements and technological limits to further optimization of energy consumption and emissions

Mitigation Strategies

• Pandemic management concepts to ensure employee safety and maintain operations
• Broad-based monitoring of goods and logistics and flexible planning
• Comprehensive energy-saving programs launched for all mills
• Increased use of biogas from water treatment, increased use of biomass for heating
• Conversion to LED lighting, investments in heat recovery and renewable energy forms

Supply Chain Management

Supplier Audits: >300 (MM Karton), >200 (MM Packaging)

Responsible Procurement

• Chain-of-Custody standard (CoC) for responsible resource management and use of sustainable raw materials
• FSC® and PEFCTM certifications for all cartonboard mills
• MM Group Code of Conduct for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes regarding raw materials, energy, and transportation

Opportunities

• Increased use of renewable energy
• Substitution of plastic packaging with sustainable cartonboard and paper solutions

Reporting Standards

Frameworks Used: GRI Standards

Certifications: FSC®, PEFCTM, ISO 9001, BRC Packaging, FSSC 22000, EN 15593, ECMA GMP, ISO 14001, EMAS, ISO 50001, OHSAS 18001, ISO 45001

Third-party Assurance: PwC Wirtschaftsprüfung GmbH

UN Sustainable Development Goals

• SDG 3, 4, 6, 7, 8, 12, 13, 15, 16

The report details how various initiatives contribute to these SDGs.

Sustainable Products & Innovation

• Recyclable packaging solutions made of cartonboard and paper

Awards & Recognition

• Not disclosed