Sustainability Report 2015 - Optigroup · Papyrus is a leading European merchant in paper, facility...

Sustainability Report 2015Papyrus Holding AB

Sustainab

ility Report 2015 Pap

yrus Hold

ing A

B

CONTENTS

THIS IS PAPYRUS 3

CEO’S STATEMENT 4

CREATING VALUE 6

MARKET AND TRENDS 7

SUSTAINABILITY AND ETHICAL STRATEGY

8

PAPYRUS SUSTAINABILITY AGENDA 8

Customers – Promoting sustainable products and services

9

People – Having engaged employees in safe workplaces

12

Sourcing – Safeguarding sustain-ability in the supplier chain

13

Operation – Securing a more environmentally friendly operation

15

Business conduct – Doing business with high ethical standards

17

SUSTAINABILITY FACTS AND FIGURES 20

Environmental 20

Social responsibility and governance

21

ABOUT THIS REPORT 22

Report profile 22

Materiality and sustainability priorities

22

Stakeholder engagement 23

Sustainability governance 24

Management approach 25

GRI INDEX 26

CONTACT 29

Papyrus is currently represented in 20 countries across Europe, employs 1,900 people and supports more than 65,000 customers.

20PAPYRUS IS REPRESENTED

IN 20 COUNTRIES ACROSS EUROPE

Papyrus Sustainability Report 2015 1

Sustainability is integrated in our business

“ We will continue to make sustainability an integral part of how we operate throughout our business. CEO statement, Peter Sandberg, page 4.

CUSTOMERS – PROMOTING SUSTAINABLE PRODUCTS AND SERVICES In 2015, Papyrus share of FSC/PEFC-certified products represented 64 percent of total paper sales volume from stock.

PEOPLE – HAVING ENGAGED EMPLOYEES I SAFE WORKPLACES Since 2014, Papyrus has run general leadership training involving all leaders at Papyrus.

SOURCING – SAFEGUARDING SUSTAINABILITY IN THE SUPPLIER CHAIN Close to 100 percent of purchased paper volumes are sourced from paper manufacturers and paper mills that are FSC/PEFC certified. FSC/PEFC certified companies are obliged to meet the requirements of the ILO Declaration on Fundamental Principles and Rights at Work.

OPERATION – SECURING A MORE ENVIRONMENTALLY FRIENDLY OPERATION The transport and logistical operation in Switzerland and the Netherlands are carbon neutral as verified by independent CO2 audits in accordance with greenhouse protocol.

BUSINESS CONDUCT – DOING BUSINESS WITH HIGH ETHICAL STANDARDS In 2015, a competition Law training was completed by 450 targeted employees.

FSC/PEFC-certified products, %

64

Papyrus volume share of FSC/PEFC-certified products sold from stock reached 64 percent Age 30–50: 55%

Age distribution, %

Age <30: 8%

Age >50: 37%

Appraisal discussion, %

97

97 percent of Papyrus employees with a completed performance dialogue

2 Papyrus Sustainability Report 2015

This is Papyrus

Papyrus operates in two separate areas of business, Graphical and Business paper, accounting for 88 percent of sales, and Papyrus Supplies, representing 12 percent of sales.

Graphical and Business paper business areaPapyrus is a leading supplier of paper to the European graphical industry and a major distributor of office paper across Europe. The business area offers a broad range of coated and uncoated papers for the printing industry together with graph-ical board, substrates for digital printing machines and a comprehensive range of paper specialities with a corresponding range of matching envelopes. Papyrus is also a leading provider of office paper, covering all printout requirements and copying needs.

A leading European merchantPapyrus is a leading European merchant in paper, facility management supplies and industrial packaging, with net sales of EUR 1,542 million in 2015 and some 1,900 employees. Papyrus supports more than 65,000 customers in 20 countries across Europe by providing products and services that enhance efficiency and contribute to a more successful business.

In 2015, Papyrus delivered 1.5 million tonnes of paper, ranking the company number two in Europe and number one in Continental Europe in terms of market position.

Papyrus Supplies business areaThe Papyrus Supplies business fulfils the increasing need for efficient supply chain management among more than 16,000 customers in the private sector and in the manufacturing and service industries in the Nordic countries. Papyrus Supplies offers an impressive assortment of clean-ing, hygiene and industrial packaging products delivered when and where they are needed.

Papyrus Supplies is the market leader in industrial packaging and facility manage-ment supplies in the Nordic countries with the capacity to serve international cus-tomers across borders in a consistent and well-coordinated manner.

THIS IS PAPYRUS

Comprehensive product rangeThe Papyrus product range is carefully selected. The company gathers an exten-sive collection of products from leading manufacturers and makes these products available from a single source. Customers benefit from a high level of reliability as well as time and cost savings thanks to leading services, efficient outsourcing solutions and high-precision deliveries from Papyrus.

Committed to quality and sustainabilityPapyrus offers the products and service level that best meet the customers’ needs in terms of function, quality and sustaina-bility considerations. The product range is constantly adjusted to ensure the best buying options for customers. In addition, Papyrus has strict environmental policies and criteria for selecting suppliers and products.

Industry

Denmark

Finland

Norway

Sweden

Belgium

France

Luxembourg

Netherlands

Denmark

Norway

Sweden

Estonia

Finland

Latvia

Lithuania

Czech Rep

Hungary

Italy

Poland

Romania

Slovakia

Austria

Germany

Switzerland

Graphical and Business paper Papyrus Supplies

Public Sector & Service

Western Cluster

Central Cluster

Industrial Packaging

Facility Supplies

Denmark

Finland

Latvia

Norway

Sweden

Switzerland

Denmark

Estonia

Finland

Latvia

Norway

Sweden

Croatia

Czech Rep

Hungary

Italy

Lithuania

Poland

Romania

Slovakia

Slovenia

Austria

Germany

Belgium

France

Luxembourg

Netherlands

Switzerland

Graphical and Business paper Papyrus Suppliers

Business Paper

Specialities Paper

Graphical Paper

Marketing & Supply Finance & IT

Sales Supply Chain


Management board

Central Cluster

Austria

Germany

Western Cluster

Belgium

France

Luxembourg

The Netherlands

Switzerland

Nordic and South Eastern Cluster

Denmark

Estonia

Finland

Latvia

Norway

Sweden

Croatia

Czech Rep.

Hungary

Italy

Lithuania

Poland

Romania

Slovakia

Slovenia

Graphical and Business paper

Human Resources Logistics


Steering Board

Papyrus SuppliesManagement Team

Denmark

Finland

Norway

Sweden

Denmark

Finland

Norway

Sweden

Papyrus Supplies

Industry Public Sector and Service

Marketing and Supply Finance

Nordic Cluster

South Eastern Cluster

A RELIABLE PARTNER FOR 65,000 CUSTOMERS

Papyrus operates in two separate business areas to ensure time and cost savings for customers, and the reliability on which their businesses depend.

Graphical and Business paper deals with specialist distribution of paper to the graphical industry.

Papyrus Supplies serves corpora-tions and public institutions with facility management supplies and industrial packaging products.


This is Papyrus

Key figures

EUR thousands 2015 2014 2013 2012 2011

Net sales 1,541,797 1,566,794 1,604,344 1,726,463 1,887,304

EBITDA excluding restructuring and divestments 48,351 57,013 50,014 48,246 48,434

EBITDA excluding restructuring and divestments, % 3.1 3.6 3.1 2.8 2.6

EBIT 34,012 36,988 22,984 21,241 16,893

Cash flow from operating activities 34,435 86,407 68,641 49,925 50,448

Average number of employees 1,863 1,925 2,113 2,372 2,591

Sales per employee 828 814 759 728 728

Deliveries, 1,000 tonnes 1,533 1,570 1,544 1,632 1,770

Sourcing and procure-ment from leading manufacturers

Cost and time-saving solutions for customers

Fine-meshed service- oriented European distribution network

One-stop shop, application expertise and in-depth industry knowledge

Strategically located warehouses across Europe

THE PAPYRUS VALUE CHAIN – SAVING COSTS AND TIME FOR CUSTOMERS

Primary brands Description

Papyrus®, Papyrus® Supplies, Supplies Direct™ Company brands

Balance®, DigiGold®, DigiJet®, Focus®, Luxo®, Multi™, Opti®, Plano®, Rainbow®, Recy®, Sky®, Specials®, Triplestar®

Key Group-wide product brands

OWNERS OF PAPYRUS

Papyrus is 51-percent owned by Altor (Altor Fund II) and 49-percent owned by Triton (Triton II Fund). Altor is a family of private equity funds with a focus on investing in and developing medium-sized companies anchored in the Nordic region. The Triton funds invest in and support the positive devel-opment of medium-sized businesses headquartered in Northern Europe.For further information: www.altor.com, www.triton-partners.com

PAPYRUS OFFERS ITS OWN PAPER BRANDS, WHICH ARE AMONG THE BEST PRODUCTS IN THEIR CATEGORIES, FOR ANY PRINT APPLICATION

To build and maintain the trust of customers, shareholders, employees and the general public, Papyrus maintains a one-company approach. This means that it operates according to the same values, code of conduct, sound business ethics and policies in all regions.

Efficient logistics across EuropeLogistics is a core competency that ena-bles Papyrus to keep its promises to cus-tomers and ensure just-in-time deliveries. Papyrus has developed a fine-tuned distri-bution network consisting of leading sys-tems for logistics management, warehous-ing and delivery. Papyrus can ensure the

same service levels and product portfolio wherever customers are located thanks to 40 warehouses and cross-dock platforms strategically located across Europe. These systems are designed to work together in harmony with every order to ensure total control throughout the logistics flow.

Simplifying for customers through e-servicePapyrus e-Shop offers a 24/7/365 e-shop in 15 countries on a shared platform, pro-viding market coverage that represents more than 95 percent of sales. This ensures easy ordering and purchasing, as well as easy access to product information, stock

levels, statistics, reports and documentation of business transactions. In 2015, 27 percent of all orders were placed via an electronic channel.

With the Papyrus toolbox for Electronic Data Interchange (EDI) and system-to-system solutions, the systems of partner customers can be integrated with the Papyrus SAP IT platform to automatically transfer purchase orders, order acknowledgements, invoices and payments. Papyrus also offers inte-grated e-commerce solutions for many of the leading calculation software tools avail-able to the printer community.


CEO’s statement

Dear stakeholder,

In 2015, Papyrus continued to deliver on its strategy and its ability to improve performance and streamline operations, enabling us to strengthen our position as the leading paper merchant in continental Europe.

To build upon these successes, we will continue to address our customers’ needs. What has become increasingly clear to us over the past few years is that the concept of sustainability plays a key role in our ability to meet the needs of our customers and other stakeholders effectively. This is not only a question of environmental issues, but also includes broader issues such as how business ethics and responsi-bility are emphasised throughout Papyrus organisation, understanding how we can become an employer of choice and estab-lishing our role as a preferred partner to our customers and business partners.

Responsibility and good corporate citi-zenship are fundamental to the sustaina-bility of Papyrus business and our ability to create long-term value for stakeholders. We take a systematic approach at every stage of our operations, from purchasing to sales and delivery.

Our approach to managing sustainabil-ity within Papyrus has become more advanced over the years. As we continue to deepen our understanding of how our company has an impact on climate change, we are also considering how other factors, such as megatrends, increased transparency and stakeholder engagement could influence our business.

We have defined the most important sustainability issues for us to focus on, and these issues can be grouped into five focus areas: Customers, People, Sourcing, Oper-ation and Business conduct.

Sustainability as an integral part of our business

We work actively to increase sustainabil-ity in our value chain and strive to provide transparent sustainability performance reporting in line with recognised and credible systems, so that customers and other stakeholders are clear about what we want to accomplish.

This year we published our first Sustain-ability Report according to the G4 guide-lines of the Global Reporting Initiative. In 2016, we will go a step further in our

corporate sustainability initiatives. The programme established by Papyrus Senior Executive Team will continue to be the standard-bearer for our activities and is the central point from which our efforts are coordinated. We will continue to make sustainability an integral part of how we operate throughout our business.

Peter SandbergPresident & CEO

As we continue to develop our business sustainability plays a key role in our ambition to meet the needs of our customers and create long-term value for us and for our stakeholders.

“....responsibility and good corporate citizenship are fundamental to the sustainability of papyrus businesses and our ability to create long-term value top stakeholders.


Creating value

Human • 1,897 employees at year-end• Employer turnover rate 13%• Average training 1.3 hours/

employee

Financial • Debt/equity• Working capital

Energy usage• Buildings 91.1 TJ• Distribution 90.1 TJ

Infrastructure• 40 warehouses and

cross-docking platforms in 20 countries

• Strong supplier network

Intellectual• Brands• Competences• Service concepts

Social/relationship• Safety• Customer relations• Community relations• Supplier relations• Investor relations

1Sourcing

and procurement from leading

manufacturers

INPUTS BUSINESS MODEL OUTPUTS

Distribution of products• Commercial printing paper• Office paper• Paper specialities • Cleaning and hygiene

products• Packaging products

Services• Paper consultancy• Technical support• E-services (e-Shop, EDI and

system-to-system solutions)• Packaging design• Logistical services• Paper management

Emissions • CO2 from distribution and

warehousing

2Warehouses

strategically located across Europe

3One stop shop,

application expertise and in-depth industry

knowledge

4Fine-meshed

service-oriented European distribution

network

5Cost and

timesaving solutions to customers

IMPACT

Financial• Value creation to customers

and stakeholders• Wages and benefits

to employees• Taxes to public sector• Payments to suppliers• Interest to creditors• Capital expenditure

Social• Indirect and direct

employment• Human right impacts• Engagement with local

communities• Absentee rate 4.0% of

theoretical working hours• Accidents at workplace 12.7

per 1 million working hours• Suppliers to comply with

Papyrus Code of Conduct

Environmental• Environmental labelling• Promoting of sustainable

products• 64% of paper stock sales

FSC/PEFC certified products• Close to 100 percent of

purchased paper volumes sourced from FSC/PEFC certified paper manufacturers and paper mills

• CO2 emissions impact climate change

Papyrus is committed to manage and develop its business in a sustainable manner. Balancing economic, environmental and social responsibilities is necessary for maintaining a sustainable business operation The objective of Papyrus is to add value for stakeholders by continuously improving the business system and transforming this into profitability.

Papyrus in the value chainThe role of Papyrus in the value chain is largely to balance the needs of manufacturers and customers. Manufacturers of paper, packaging products and business consumables need to standardise their product portfolio and adjust their production planning to generate higher productivity and efficiency, resulting in longer lead times and a lower level of flexibility. Customers, on the other hand, demand a one-stop shop merchant with a broad range, offering smaller, just-in-time deliveries and the ability to develop customised supply solutions and time-saving service concepts. This leads to operational cost efficiency and simplified administration for Papyrus customers.

Creating value

Saving costs and time for customers


Market and trends

Market and trends

The challenging economic climate in recent years has accelerated the speed at which new technologies are penetrating more traditional media channels, as com-panies look for different ways to optimise their expenses. However, financially strong paper merchants that can continue to improve their own operations have the potential to grow profitably – even in a structurally declining market such as the prevailing one.

Megatrends impacting Papyrus futureThe market in which Papyrus operates is impacted by financial developments and other megatrends influencing the future.

Climate changeThe effect of climate change, along with population growth and changing con-sumption patterns, is putting increasing pressure on natural resources. The world needs to produce more food and energy, while simultaneously protecting fragile ecosystems.

Products promoted by Papyrus are to a large extent based on renewable and recy-clable materials. Papyrus contributes to an environmentally responsible way of using wood resources by offering products and

applications based on fibres from sustaina-ble sources, as well as by recycling paper. In Europe regeneration of forest exceeds the logging. This means that sustainably managed forests can be the best defence against global warming, as trees bind car-bon dioxide through photosynthesis. Wood fibres, can also be reused up to seven times, to take one example.

• Paper is based on wood, a fully renewable and sustainable resource.

• Forest certification such as FSC and PEFC ensures wood comes from well-managed forests.

• Paper production is not a major cause of deforestation globally. Responsible wood, pulp and paper production ensures forests grow healthily.

• The European paper industry is a lead-ing recycler. In 2013, 72 percent of paper consumed in Europe was recycled.

• European forests are today 30 percent larger than in 1950. The annual increase of forest cover in Europe is equivalent to more than 1.5 million football pitches

Digital revolutionThe growing use of IT solutions opens up potential for supply chain improvements and new cost-efficient on-demand ser-

The market for printed media has been facing a decline since its peak in 2007 due to the rise of new technologies, changes in media consumption and the economic situation in Europe. Against this background, Papyrus is adopting a focused and streamlined business model, resulting in long-term benefits for both Papyrus and its customers

vices from Papyrus. Although the demand for paper is structurally declining in a changing media landscape, printed prod-ucts can compete with digital formats effectively. When combined with digital media, print is a highly effective force for any campaign and for any brand.

Print mainly uses sustainable materials. From an environmental perspective, digi-tal alternatives to paper are not necessarily more sustainable once energy demands coming from data centres and households to run IT equipment are taken into account. E-waste is the fastest growing component of the municipal solid waste stream, and the amount of electronic products discarded globally has accelerated.

• Electronic waste is now the fastest growing component of the municipal waste stream. The amount of electronic products discarded globally has sky-rocketed recently, with 20–50 million tonnes generated every year.

• In Europe, e-waste is increasing at 3–5 percent a year, almost three times faster than the total waste stream. (Source Greenpeace, The e-waste problem.)

8 Papyrus Annual Review 2014

Sustainability and ethical strategy

Papyrus sustainability agenda

Responsibility and good corporate citizenship are fundamental to the sustainability of the business of Papyrus and its ability to create long-term value for all stakeholders. With regard to sustainability, Papyrus takes a systematic approach at every stage of its operations, from purchasing to sales and delivery.

Based on a materiality analysis, which is an assessment of the most significant sustainability issues for the company and its stakeholders, Papyrus has identified five sustainability focus areas.

CUSTOMERSPromoting sustainable products and services.

PEOPLE Having committed employees in safe workplaces

SOURCING Safeguarding sustainability in the supplier chain.

OPERATION Securing a more environmentally friendly operation.

BUSINESS CONDUCT Doing business with high ethical standards.

Papyrus uses sustainability as an umbrella term to describe responsible business operations that encompass economic, environmental and social responsibility. Increasing sustainability in the value chain of which the company is part is a priority, and Papyrus strives to report sustainability performance transparently in line with recognised and credible systems, so that customers and other stakeholders are clear about what the company wants to accomplish. By meeting the expectations

of customers and other stakeholders, Papyrus aims to be known for the respon-sibility it takes in the field of sustainability.

Acting as the link between manufactur-ers and users, Papyrus considers itself to have a special responsibility when it comes to sustainability. In the company’s role as a buyer and seller of paper, packag-ing products and facility supplies, Papyrus is dedicated to work closely with produc-ers. In its role as a business partner to cus-tomers, it is the job of Papyrus to create

transparency in areas that matter most to buyers and to provide them with all the necessary information. Overall, the objec-tive as an intermediary is clear: to push environmental and social issues further up the agenda – encouraging producers and buyers to manufacture and use sustainable products. In so doing, Papyrus must not neglect its role as a merchant, and must do its part to contribute to environmen-tally friendly solutions in the value chain in order to minimise its carbon footprint.

The focus areas cover the most important sustainability issues for the company:


Xxxxxxx xxxxxx

In its ongoing dialogue with customers, Papyrus provides transparent and objective information about the company’s offering to help customers make well-informed pur-chase decisions in all areas, including those connected to sustainability.

Labelling for increased transparencyCare for the environment has increasingly become a very important product feature in many industries, not least in paper manufacturing and paper merchanting. Over the years, a number of certificates and labels have been created to represent different aspects of environmentally and socially responsible manufacturing. The environmental labels used in the paper industry are trustworthy and offer clear

Promoting sustainable products and servicesPapyrus is represented in 20 European countries and supports more than 65,000 customers. The aim is to offer products and services that customers require in terms of function, quality and sustainability-related considerations.

CUSTOMERS

guidance. Papyrus recognises that estab-lished standards contribute significantly to protecting the environment and the sus-tainable use of our natural resources. Reg-istered Papyrus e-shop customers can take advantage of product information and environmental labelling of products, as well as access to detailed environmental purchasing statistics.

Accepted environmental labels offer a high level of reliability when selecting products. However, that does not mean that products without environmental labels are a cause for concern. Papyrus checks the origin and production meth-ods of all paper brands it offers, and eco-logical information is also available for paper without environmental labels. Many

types of paper meet all the criteria of cer-tain labels but have not undergone the certification process.

Papyrus only accepts trustworthy labels and it is important for the company to clar-ify the individual significance of the estab-lished label schemes in a transparent way. Papyrus respects the validity of ISO 14001 and EMAS for audited environmental man-agement systems, FSC and PEFC for chain of custody, and Nordic Swan, EU Ecolabel and Blauer Engel as holistic life cycle labels.

In 2015, Papyrus share of FSC/PEFC cer-tified products represented 64 percent of Papyrus total paper sales volume from stock. The number of FSC/PEFC certified articles on stock represented 78 percent of all stocked paper items.


Forest manage-ment and

fibresRecycled

fibres Chain of Custody

Social aspects Chemicals Energy Emissions Water Waste


NO

RDIC ECOLABEL

Compliance with REACHThe European Regulation 1907/2006 concerning Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) came into force in June 2007. REACH addresses the production and use of chemical substances and their potential impacts on both public health and safety and the protection of the environment. Papyrus fulfils all requirements of REACH

and supports the objective to further improve the European Union’s chemical regulatory system.

REACH also addresses the use of chemi-cal substances of very high concern (SVHC), where the regulation provides an information duty if a substance on the REACH Candidate List is contained in a concentration higher than 0.1 percent based on the article weight. To Papyrus

Especially distinctive aspect

ENVIRONMENTAL LABELS AND QUALITY MARKS

best knowledge, in the report year 2015 none of the substances on the candidate list is used in products or within the com-pany, and the firm goal is to abolish all new substrates in use entering this list. The same applies for products restricted according to the RoHS directive (restric-tion of the use of certain hazardous substances in electrical and electronic equipment).

FR/011/002



97%MORE THAN 97 PERCENT

OF EMPLOYEES COMPLETED AN APPRAISAL

DISCUSSION IN 2015

FSC – THE FOREST STEWARDSHIP COUNCIL

The Forest Stewardship Council (FSC) is an international non-governmental organ-isation (NGO) which has set up, operated and further developed the first global system for certifying responsible forestry management. The FSC also issues the quality seal via which wood and wood products involved in downstream process-ing and the chain of custody are recognised.

The FSC is supported and financed by environmental organisations, social organisations and business partners of the wood and paper sector. The FSC works towards environmentally sound, socially responsible and economically viable man-agement of forests and promotes the marketing of wood produced under sound ecological and social principles. The type and manner of forestry management is assessed while taking national variations into account. Forestry management, pro-cessing and the chain of custody are all subject to strict controls by independent certification bodies.

All Papyrus companies have chain of custody certification in accordance with FSC and PEFC

PEFC – PROGRAMME FOR THE ENDORSEMENT OF FOREST CERTIFICATION SCHEMES

The PEFC organisation promotes sustainable forest management while maintain-ing owner interests. Established by the European timber industry and forest own-ers, PEFC functions today as an umbrella organisation for the mutual recognition of different national and regional certification programmes in Europe and over-seas. The tracking process of products through all stages of production and distri-bution is monitored (chain of custody). Monitoring and certification is carried out by independent certification bodies.

• Papyrus innovation and development work is geared towards value-added products and services with a sustainable environ-mental performance.

• Extensive environmental labelling of products as well as customer-unique environmental statistics are accessible online via Papyrus e-Shop.

• In 2015, Papyrus share of FSC/PEFC-certified products repre-sented 64 percent of Papyrus total paper sales volume from stock.

• The number of FSC/PEFC-certified articles on stock represented 78 percent of all stocked paper items.

• Papyrus is committed to providing customers with up-to-date informa-tion needed to control risks and ensure that chemicals are safely managed. Safety Data Sheets for cleaning products purchased from Papyrus are available online via the Papyrus e-Shop.

INCREASED CUSTOMER SATISFACTION

Papyrus regularly conducts customer surveys to improve its current position and generate activities that enhance interaction with customers. From a long-term perspective, the surveys provide input for strategic decisions and actions. In the short term, they provide insight into the hands-on improvements that can be made to daily processes. The surveys also enable benchmarking between companies and facilitate the sharing of best practices.

In 2015, the customer survey covered Benelux, France, Switzerland and Eastern Europe. In the previous year, the survey targeted customers in Germany and the Nordic countries. The comparable overall customer satisfaction rating increased from 85 to 86 percent for the Group with an improved Ambassador Score (NPS).


Competencies and skills are continuously developed in order to implement the strategy and drive sustainable growth in the future. Different tools and methods are used for personal development, such as on-the-job learning, learning from oth-ers and participation in training sessions.

Together with e-learnings, Group-wide training sessions and seminars are organ-ised within structured programmes to complement local initiatives. Structured programmes include development pro-grammes for some 30 nominated leaders and specialists. Since 2014, Papyrus has also run general leadership training involv-ing all leaders at Papyrus. During 2015, new online training courses were deployed covering topics such as prod-ucts, competition law, managers as com-municators and the value of print.

Aiming for a sound work environmentThe work environment is a strategic issue for Papyrus. The aim is to create a physi-cally, mentally and socially sound and

Having engaged employees in safe workplaces

Papyrus has some 1,900 employees from a wide variety of professions. Their assignments range from purchasing to customer service, and they are supported by an effective IT and supply chain system. All of this takes place in an international arena, as Papyrus is represented in 20 countries across Europe.

PEOPLE

rewarding workplace for all employees. Preventive measures are taken to eliminate the risk of occupational injury and work-related illness. Continuous training is con-ducted to prevent accidents at the work-place. Preventive measures are taken to eliminate the risk of occupational injury and work-related illness.

In 2015, the number of hours lost due to accidents at the workplace declined by 4 percentage points to 8.1 hours per one million working hours. Total absentee rate at Papyrus was 4.0 percent compared with 3.6 percent in the preceding year.

Strength through diversityDiversity is recognised as a strength and will improve Papyrus competitive position. Papyrus requires diversity in terms of such factors such as age, gender, language and background, as variation contributes to new ideas, smarter ways of working and a higher level of flexibility when it comes to adapting to new needs and demands from customers.

Papyrus underlines the issue of gender equality so that both current and future managers at Papyrus can work towards a more even gender distribution by achiev-ing a better balance in the recruitment process. The share of female employees in the Group was 33 percent in 2015.

Performance dialoguePapyrus places great emphasis on being an attractive employer and providing an environment in which employees enjoy working together to deliver business suc-cess and where development is a top pri-ority, at both an individual and organisa-tional level. Papyrus deploys an appraisal discussion process called the Papyrus Per-formance Management Process (PPMp). The appraisal discussion is one of many important tools to promote the desired development at an individual level and for the team as a whole. In 2015, 97 percent of employees participated in individual appraisal discussions.


Accordingly, Papyrus never engages in spot buying of paper from unaudited suppliers or unknown origins. For poten-tial suppliers, the company has strict intake processes where environmental performance and social responsibility are part of the assessment.

Business partners and suppliers are required to share the principles expressed in Papyrus Code of Conduct. Papyrus is committed to the ten principles of the UN Global Compact, whose universally accepted principles highlight respect for human and labour rights, environmental responsibility and anti-corruption and also form the basis for Papyrus Code of Conduct.

FSC certifications ensures qualityIn 2003, Papyrus was the first European merchant to receive FSC certification. Today, all Papyrus companies have chain of custody certification, which enables the Group to guarantee the origin of the raw material of the paper product. By the end of 2014, the integration of all Papyrus

Safeguarding sustainability in the supplier chain

Papyrus is committed to offering its customers socially and environmentally sound products. Environ-mental performance and social responsibility thus represent key factors for Papyrus in the selection of products and suppliers.

SOURCING

companies into a single, shared FSC and PEFC multi-site was finalised.

FSC/PEFC-certified companies are obliged to meet the requirements relating to health, labour and safety issues accord-ing to the ILO Declaration on Fundamen-tal Principles and Rights at Work, 1998. FSC/PEFC covers more than direct suppli-ers, since the audits and assessments conducted by independent certification bodies include the complete supply chain upstream (chain of custody).

Evaluation of suppliersSuppliers to Papyrus are evaluated on quality, the environment, human rights, health and safety, work environment and finances, with the focus varying depend-ing on the business area. Responsibility for carrying out supplier evaluations rests with the respective sourcing department of Graphical and Business paper and Papyrus Supplies. The vast majority of Papyrus suppliers are located in Europe and the European suppliers have been

EUTR

The European Union Timber Regulation (EUTR) prohibits the placing of illegally harvested timber on the European market as part of an effort to tackle the problem of illegal logging across the world. It sets out requirements that companies within the European Union (EU) must meet to minimise the risk of illegal timber being traded. More specifically, the Regulation requires companies plac-ing timber products such as paper and board on the European market to implement a Due Diligence Sys-tem (DDS). Papyrus has implemented the procedures accordingly and meets the compliance obligations.


SUSTAINABILITY IN THE SUPPLIER CHAIN

• Business partners and suppliers are required to share the principles expressed in Papyrus Code of Conduct

• Suppliers are required to comply with legal requirements in all countries where they operate

• Paper manufacturers are expected to operate in compliance with established environ-mental management systems (e.g. EMAS or ISO 14001).

• Preference is given to products that are produced with reduced ecological footprint.• Suppliers are encouraged to develop and to use environmentally friendly technolo-

gies.• The sale of paper products from credibly certified fibre (e.g. FSC) is supported.• Products from illegal logging and uncertain sources are never accepted.• Papyrus commits to the use of certified products, recycled products or products with

recycled content


tions. In 2015, 84 percent of the total procurement expenditure was covered by suppliers with a written agreement. Papyrus Supplies had a few new suppliers during the year that will be followed up during 2016. Over the next few years, Papyrus Supplies intends to enhance the processes and improve the ability to hold suppliers accountable to agreed commitments.

deemed to comply with the UN’s recom-mendations on human rights, environ-mental legislation and social responsibility standards on the basis of the professional conduct observed.

During the year, the procurement departments evaluated relevant new sup-pliers regarding collective agreements. The Graphical and Business paper business area had no new suppliers. In total, 98 percent of the suppliers to the Graphical and Business paper business area have been evaluated on labour practices crite-ria, child labour or forced/compulsory labour, human rights criteria and environ-mental criteria. In addition, close to 100 percent of purchased paper volumes are sourced from paper manufacturers and paper mills that are FSC/PEFC certified. As a result of evaluations carried out, the business area has not identified any indi-cation of violation of applicable criteria or need for changes to the established sup-plier intake process.

At the Papyrus Supplies business area, agreements including the Code of Con-duct and any applicable criteria are used as standard in all new supplier negotia-

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Papyrus complies with national legislation requirements that set the minimum stand-ard for the company’s environmental per-formance and conduct. In fact, Papyrus strives to go further than legislative requirements whenever possible, support-ing a proactive and precautionary approach to environmental challenges.

Reduced environmental impactTransport of goods is predominantly car-ried out by road from transhipment points to customers, leading to emissions of fossil carbon dioxide, particulates and sub-stances such as NOx and SOx. The princi-ple is to prioritise transport solutions with low emissions where the opportunity is available. When procuring new transport, all suppliers are expected to produce documentation of their environmental impact. Initiatives are continuously taken to reduce the environmental impact of Papyrus activities. For example, the Group’s vehicle fleet in Sweden has been

Securing a more environmentally friendly operation Papyrus environmental ambitions cover all aspects of the product lifecycle, including manufacturers, suppliers and customers. Through continuous improvements, Papyrus strives to minimise and prevent a negative impact on the environment.

OPERATION

running on biodiesel fuel for more than ten years. Papyrus recycles and reuses whatever possible – the reuse of pallets is just one example of this approach.

The transport and logistical operations of Papyrus in Switzerland and the Nether-lands are carbon neutral as verified by independent CO2 audits, according to greenhouse gas protocol rules. Measures to reduce emissions are implemented on an annual basis and the remaining emis-sions are offset via an approved Gold Standard project.

By promoting products and applica-tions based on fibres from sustainable sources as well as recycling paper, Papyrus contributes to an environmentally respon-sible way of using wood resources. In Europe, the regeneration of forest exceeds the logging rate, meaning that sustainably managed forests can be the best defence in fighting global warming, since trees bind carbon dioxide through photosyn-thesis.

Sustainable forest managementPapyrus is aware of its important role in the promotion of products from certified forest management, since wood from renewable forest management has a neu-tral CO2 balance, making it a unique eco-logical raw material.

The Global Forest & Trade Network (GFTN) is the WWF’s initiative to eliminate illegal logging and drive improvements in forest management while transforming the global marketplace into a force for saving the world’s valuable and threatened forests. First established in 1991, it is the world’s longest-running and largest forest and trade programme of its kind – providing assistance to hundreds of companies in many countries. Papyrus Deutschland GmbH is the only European paper mer-chant to be a member of the GFTN, and thus fulfils the strict conditions of responsi-ble paper sourcing. The purchasing policy that follows the GFTN’s recommendation applies to all Papyrus markets.



Strict environmental standards in the European paper industryEuropean paper manufacturers comply with strict environmental standards, continuously enhancing the balance between environmental responsibility and energy use. The industry also assumes responsibility for purchasing of raw materials. In addition, ISO environmental certification is an established practice. All parties involved in the production and supply of paper are working continuously to improve the situation further. While there may remain a lack of consensus on certain issues, all involved agree that for the paper industry to continue to flourish, production strategies must reflect the responsibilities of the sector.

The European paper industry is a lead-ing recycler. In 2013, 72 percent of paper consumed in Europe was recycled. This achievement is remarkable, considering that the current paper consumption is at the same level as 1998 but the amount recycled is 1.5 times higher. Furthermore, wood fibres can be reused up to seven times. (Source: CEPI).

CARBON FOOTPRINT

• Papyrus actively promotes the use of raw materials from responsibly managed forests and recycled papers by way of transparent infor-mation, and cooperates exclusively with trusted suppliers.

• Initiatives are continuously taken to responsibly reduce the carbon foot-print (greenhouse gas emissions) related to Papyrus activities.

• The vehicle fleet in Sweden has been running on biodiesel fuel for more than ten years.

• The transport and logistical opera-tions in Switzerland and the Neth-erlands are carbon neutral as veri-fied by independent CO2 audits in accordance with greenhouse protocols.

• Since 1990, CO2 emissions from the production of 1 tonne of paper have been reduced by 45 percent (source: CEPI).

Today, European paper mills source 56 percent of their primary energy through eco-friendly, almost carbon neutral bio-mass. The paper sector is the largest industrial producer of bioenergy, generat-ing 20 percent of the biomass-based energy in Europe (source: CEPI). This is extremely important for Papyrus, which is why the use of biomass is emphasised in the company’s environmental policy. Since 1990, CO2 emission from the pro-duction of 1 tonne of paper have been reduced by 45 percent (source: CEPI). However, carbon emissions are only one of many factors when considering the environmental compatibility of paper. Accordingly, Papyrus also actively pro-motes the use of raw materials from responsibly managed forests as an impor-tant vehicle to prevent further climate change.

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Group policies alongside the company’s core values support the enforcement of fair and ethical conduct in the company’s day-to-day business and set the standard of conduct required of management and employees to ensure that the affairs are managed in the most ethical manner. Papyrus performs an annual Corporate Governance Certification Process to ensure that the Papyrus Group Policies are up-to-date and subject to an annual review.

Setting high ethical business standards enables the company to deliver high-quality products and services to the market. Papyrus Code of Ethics goes beyond our employees, and suppliers are required to uphold the same level of ethics in their dealings with Papyrus.

Doing business with high ethical standards

Papyrus is committed to fair and ethical business practices. The company’s Code of Ethics, together with other Group policies, form the basis of sustainability activities at Papyrus that are aimed at building and maintaining a relationship of trust with customers, shareholders, employees, suppliers and the general public.

BUSINESS CONDUCT

GLOBAL COMPACT

Papyrus is committed to the ten principles of the UN Global Com-pact. The declaration’s universally accepted principles highlight the respect for human and labour rights, environmental responsibility and anti-corruption and also form the basis of the Papyrus Code of Conduct.

Papyrus works continuously to ensure fair and ethical business practices and pro-vides training programmes that address compliance and ethics. The company’s ethics training sessions target an employ-ee’s specific job function and related busi-ness risk. Newly hired employees are required to complete relevant courses as part of their introduction programme and refresher training courses are offered on a regular basis. In 2015, a Competition Law training course was completed by 450 tar-geted employees.



CODE OF ETHICS

The Papyrus Code of Ethics contains all of the company’s major policies and principles that define the Group-wide approach to important topics.

Business Practice Policy Brings together the key elements for maintaining ethical business practices and a responsible operation in important topics such as corruption, bribery, fraud, anti-money laundering and competition law.

Communications Policy and Guidelines

Defines the company s communication principles. Communication characterised by creditability, transparency and responsibility, as well as proactive and open dialogue.

Competition Law Compliance Programme

Sets out the approach to free and fair competition at Papyrus.

Environmental Policy Forms the principals for the company s environmental work.

Occupational Health and Safety Policy

Defines the principals for activities related to workplace health and safety.

THE CORE VALUES OF PAPYRUS

The core values of Papyrus form the basis of its operations, the manner in which employees interact with customers and each other, and the selection of strategies the company employs to fulfil its mission.

TRUSTWORTHYProving reliability by delivering on promises. Customers should trust Papyrus and feel confident every time they do business with the company.

FRIENDLYHaving respect for individuals, promoting cooperation and giving credit for achievements. This friendly approach is built on a positive attitude, an open mind, a smile and a can-do attitude.

PROFESSIONALA commitment to continuous improvements, generating financial results, being cost-conscious and following through on plans and decisions. Demonstrating a mind for business and the ability to go from one-offs to repeat business.

RESPONSIVEAn eagerness to listen and respond quickly, based on a commit-ment to serve customers in the best way possible. Identifying needs and recommending solutions.

INSPIRINGContinuously innovating the offering to lead developments in the industry and encourage customers and colleagues to try new solutions and technologies.

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BALANCE PUREBalancePure® is the paper used in this Sustainability Report. BalancePure® is an uncoated high white offset and pre-print paper, made of 100 percent recycled fibres. BalancePure® is pro-cessed chlorine-free, carries the EU eco-label and is FSC-certified. In other words, the paper is perfect for printed materials when a sustainable and envi-ronmental approach is the priority.

Applications: Corporate identity systems (stationary), direct mails, brochures, leaflets, catalogues.


Sustainability facts and figures


EnvironmentalEnergy and emissions

Environmental compliance 2015

Compliance with local and environmental codes and standards (% compliance in annual audit) 100%

Energy and CO2 greenhouse gas emissions from buildings 2015

Energy usage from oil, terajoule (TJ) 5.0

Energy usage from gas, terajoule (TJ) 47.0

Energy usage from district heating , terajoule (TJ) 3.4

Energy usage from electricity, terajoule (TJ) 35.7

Total energy usage in buildings, terajoule (TJ) 91.1

Scope 1 – Direct carbon emissions, tonnes CO2 equivalent1) 2,744

Scope 2 – Indirect carbon emissions, tonnes CO2 equivalent2) 2,883

Energy and CO2 greenhouse gas emissions from own distribution of goods 2015

Energy usage from biofuel, terajoule (TJ) 0.9

Energy usage from diesel, terajoule (TJ) 89.2

Total energy usage in own distribution of goods, terajoule (TJ) 90.1

Scope 1 – Direct carbon emissions, tonnes CO2 equivalent1) 6,183

CO2 emissions are calculated by multiplying activity data by emission factors for electricity and other fuels from Defra.1) Emissions from operations that are owned or controlled by the organisation as defined by the Greenhouse Gas Protocol.2) Emissions that result from the generation of purchased or acquired electricity, heating, cooling, and steam consumed by the organisa-

tion as defined by the Greenhouse Gas Protocol.

Water and waste managementPapyrus has no manufacturing and water usage is principally confined to workplace cleaning and for hygiene purposes. Waste is princi-pally confined to warehouse operations and the workplace.

Papyrus is working to increase recycling and recovery of materials and equipment where this leads to an environmental benefit. The materials Papyrus uses as transport packaging are mainly made of paper, cardboard or corrugated, in other words recyclable materials. When plastic is used, it mainly consists of polyethylene (PE), which is also a recyclable material. Composite packaging occurs only as an exception and then only where it is necessary for the functionality of the product.

Environmental labelling

FSC/PEFC 2015

Share of FSC/PEFC certified products of total paper sales volume from stock, % 64

Share of FSC/PEFC certified articles of total number of stocked paper articles, % 78



Social responsibility and governance

Key personnel data 2015

Number of employees1) 1,897

Women, % 33

Men, %, 67

Age <30, % 8

Age 30–50, % 55

Age >50, % 37

Employee turnover rate, % 13

Diversity by groups 2015

Senior Executive Team

Total count 14

Women, % 7

Men, %, 93

Age <30, % 0

Age 30–50, % 71

Age >50, % 29

Managers2)

Total count 260

Women, % 21

Men, %, 79

Age <30, % 3

Age 30–50, % 64

Age >50, % 33

Safety and well-being data 2015

Absentee rate, %3) 4.0

Accidents at workplace4) 12.7

Lost-time accidents5) 8.1

Work-related fatalities, no. of cases 0

Employee survey response rate, %6) 83

Training and education 2015

Appraisal discussion completion of employees, % 97

Average training hours of white collar 1.3

1) Full-time equivalent (FTE) on December 31 2) Manager with directly reporting employees3) Sickness and accident-related absence in % of theoretical working hours4) Accidents at the workplace per one million working hours5) Hours lost due to accidents at the workplace per one million working hours6) The biennial employee survey performed in 2014


About this report

About this report

Report profilePapyrus uses sustainability as an umbrella term to describe responsible business operations that encompass economic, environmental and social responsibility. This 2015 Sustainability Report describes Papyrus actions and the resulting out-comes from 2015 that are considered to be material to the business. Key individu-als representing a broad range of func-tions at the company participated in iden-tifying relevant topics for the report.

This report was prepared in accordance with the Global Reporting Initiative G4 Guidelines Core option, which defines guidelines for the report’s content.

This is Papyrus first sustainability report, meaning there are no restatements of data from previous reports and the boundaries for the report have not changed from pre-vious years. The coverage of indicators cat-egorised under those aspects deemed rele-vant was reported to the fullest extent possible depending on data availability.

In all cases, data in this report relates to the 2015 calendar year unless otherwise stated.

The scope of the report covers Papyrus operations in the markets where the com-pany is present unless otherwise noted. It includes activities occurring at all facilities,

owned and leased, where Papyrus has operational control.

This report and the data contained herein have not been externally verified.

Together with the Papyrus Annual Report and the Papyrus Annual Review, Papyrus Sustainability Report forms the Group’s reporting for the year 2015.

FeedbackFeedback on this report and on the company’s sustainability performance is welcomed. Please send comments to: [email protected] or [email protected].

The scope of this report is based on an assessment of material issues. The analysis of what is considered to be most impor-tant to Papyrus in terms of the company’s sustainability work was carried out inter-nally by the company s analysis group.

Materiality and sustainability prioritiesThis identified the relative relevancy and boundaries of the entire range of aspects within the G4 framework. The first analy-sis is based on the assumption that all material aspects are of importance for the entire company.

The most material aspects were selected through a process of identifica-tion, prioritisation and validation. These are grouped into five focus areas for sus-tainability: Customers, People, Sourcing, Operation and Business conduct. The 17 material aspects identified also form the basis of the content of this report.

High

• Emissions (Scope 1)5

• Emissions (Scope 2)5

• Child labour2

• Freedom of association4

• Forced or compulsory labour2

• Economic performance3

• Supplier environmental assessment2

• Anti-competitive behaviour3

• Anti-corruption3

• Supplier human rights assessments2

• Supplier assessment for labour practices2

• Product & service labelling1

• Employment4

Medium• Occupational health & safety4

• Diversity4

• Transport5

• Training & education4

Low

Low Medium High

BUSINESS IMPACT

IMP

OR

TAN

CE

TO

OU

R

STA

KEH

OLD

ERS

Focus areas: 1 Customer, 2 Sourcing, 3 Business conduct, 4 People, 5 Operation


About this report

The company’s analysis group has carried out an internal materiality analysis of the company’s stakeholder groups with the purpose of pinpointing priorities in the sustainability reporting and ongoing sustainability work. Key stakeholders were selected based on their ability to impact Papyrus sustainability performance and where Papyrus sustainability performance significantly impacts stakeholders.

Stakeholder engagement

Stakeholder group Key topic and concerns Engagement

Customers • General requirements for sustainable corporate governance and Code of Ethics

• Environmental impact of products• Sustainability in the supplier chain • Finances• Environmental issues, such as CO2 emissions• Working conditions, such as safety in the

workplace• Human rights and child labour in the

supplier chain, EUTR

• Customer satisfaction surveys and feedbacks• Face-to-face meetings• Website, newsletter• Annual financial reports• Sustainability report• Environmental product declarations• Environmental labelling (e.g. FSC, PEFC and

Nordic Swan)

Employees • Finances• Business model description • Business ethics and operative culture• Skills development• Terms of employment, working conditions

and safety• Diversity• Company’s focus on sustainability and

environmental impact

• Papyrus performance management process• Appraisal discussions• Skills development and training programmes• Training on the work environment and safety• Employee survey• Employer branding initiatives• Code of Ethics and Group policies

Suppliers • Sustainability of the business and long-term economic development

• Code of Conduct• Human and labour rights (UN, ILO) • Environmental impact• Safety in the workplace

• Face-to-face meetings• Supplier performance evaluation• Environmental certifications (ISO, EMAS)• Environmental labelling and environmental

statistics• Joint improvements of projects and service

level agreements • KPI monitoring• FSC/PEFC certificates

Government, communities and NGOs

• Compliance with laws and regulations• Transparent communication• Prompt information and open dialogue

• Certificates for operations• One-on-one meetings

Investors • Business model and strategy• Financial performance and strategic

transformation• Long-term value creation • Corporate governance• Risks• Future outlook

• Result briefings• Financial reports• One-on-one meetings

Membership, certificates and industry associations

• Forest Stewardship Council (FSC)• Programme for the Endorsement of the

Forest Certification schemes (PEFC)• WWF, The Global Forest & Trade Network

(GFTN)• European Paper Merchants Association

(EUGROPA)• Two Sides

• Certificates• Sustainability support• Industry support


About this report

Sustainability governance

Business ethics and responsibility are emphasised throughout Papyrus corpo-rate governance, starting from the Board of Directors, the CEO and Papyrus Senior Executive Team (SET). The CEO, together with the members of the SET, is ultimately responsible for Papyrus Sustainability and Ethical strategies and their related policies and key performance indicators, as well as the evaluation and monitoring of their implementation.

Governance on sustainability and ethicsThe CEO is in charge of the strategic development agenda and day-to-day management of the company in accord-ance with the instructions issued by the Board. The SET is a governance body that operates at management level under the CEO. The SET is responsible for supervi-sion of Papyrus sustainability work and ethical business conduct, as well as the company’s contributions to sustainable development.

The SET regularly reviews Papyrus strat-egy on sustainability, business ethics and legal compliance, and oversees their implementation in accordance with Papy-rus corporate governance structure. This work involves:• Identifying issues for development• Implementing policies on business

practices, including Papyrus Code of Ethics

• Compliance-related processes and tools• Legal and regulatory business practices

Actions related to major law compliance and ethics issues are supervised by the Board of Directors. In the event of other serious misconduct concerning employees in key positions or leading posts, these can be reported anonymously in accord-ance to the established whistleblowing procedure, easy accessible via the company’s intranet.

The person responsible for Papyrus environmental issues at managerial level is the Vice President Marketing & Supply, while an Environmental Manager is respon-sible for the Group’s operational work on environmental issues and processes.

Compliance Papyrus is committed to fair and ethical business practices. Papyrus Code of Ethics, together with other Group policies, forms the basis of sustainability activities at Papyrus, which are aimed at building and maintaining a relationship of trust with customers, shareholders, employees, sup-pliers and the general public.

Papyrus expects its management and employees to adhere to the corporate pol-icies of Papyrus in their work. The country management of each of the Papyrus enti-ties is responsible for monitoring and enforcing the company’s policies, as well as ensuring operations’ compliance with national laws and local legal requirements. Any violation of these polices, principles and guidelines will be closely examined and necessary action will be taken.

The Group’s legal function is responsi-ble for the supervision of the business from a legal perspective. The function is also responsible for the annual Corporate Governance Certification Process that ensures that Papyrus Group Policies are up-to-date and subject to an annual review.

Together with country-specific manage-ment teams, the SET is to review and con-firm their understanding of Group poli-cies. To ensure responsible business operations, these policies are then imple-mented through tailored procedures in the relevant business units.

IncidentsAt Papyrus, there is a formal complaint procedure in relation to any breach of the Code of Ethics, Group policies, laws and regulations, which employees can use to report suspected misconduct and compli-ance violation. This is done via an anony-mous whistleblowing tool available on the company’s intranet. The company’s legal department assists all employees with matters relating to ethical and lawful behaviour.

There were no incidents of corruption during the reporting period, and the com-pany has not been involved in any pro-ceedings arising from anti-competitive behaviour or violations of antitrust law.

PAPYRUS CORPORATE GOVERNANCE CERTIFICATION PROCESS

Papyrus performs an annual Corpo-rate Governance Certification Process to ensure that the Papyrus Group Policies are up-to-date and subject to an annual review. Senior managers are to review and confirm their understanding of, and responsibility for, Group Policies annually by:• Signing and submitting confirma-

tion of compliance, including descriptions of any infringement or breach of policies known as of that date

• Taking appropriate and necessary steps to ensure that the organisa-tion reporting to them is aware of applicable policies and is notified if any changes are made to them

• Ensuring appropriate integration of Group Policies into local rules, guidelines and processes

• Ensuring adherence to Group Poli-cies and the local rules, guidelines and processes into which they have been integrated


About this report

Management approach

Papyrus works in a structured manner on the focus areas and material aspects identified. The table below presents the major topics, ambitions and boundaries for each area, together with the associated tools and policies.

Focus area Aspect Key topic and ambitions Tools and policies Responsibility

Customer Product and service labelling

• Maintain outstanding competence in prod-ucts, logistics and customer operations

• With open and transparent communica-tion, meet the expectations from custom-ers and stakeholder

• Training programmes and Learning Manage-ment systems

• On-demand availability of product information, environmental statistics and data safety sheets via Papyrus e-Shop

• Regular monitoring and follow up of Key Perfor-mance Indicators (KPIs)

• Country management• Operations

Sourcing Supplier assessment for labour practicesChild labourForced compulsory labourSupplier human rights assessment

• Manufacturers to comply with legal requirements in all countries where they operate

• Paper to be sourced from manufacturers and paper mills that are FSC/PEFC certified

• Paper producers to operate in compliance with established environmental manage-ment systems

• Never source products from illegal logging and uncertain sources. Papyrus to prioritise products that are produced using reduced energy consumption and lower CO2 emissions.

• Manufacturers to develop and to use environmentally friendly technologies.

• Joint projects in supply chain improve-ments

• Sourcing policy and supplier intake process

• Code of Conduct• Sourcing KPIs• Performance and moni-

toring tools

• Sourcing departments of Graphical and business paper and Papyrus Supplies

Business conduct

Economic perfor-manceAnti-corruptionAnti-competitive behaviour

• Monitoring and enforcing the Papyrus Group policies

• Ensuring compliance of operations with national laws and local legal requirements

• Papyrus Group policies• Papyrus annual corpo-

rate governance certifi-cation process

• Whistleblowing service

• CEO• Senior Executive Team• Country management • Legal, General Counsel• Operations

People EmploymentOccupational health and safetyTraining and educationDiversity and equal opportunityFreedom of associa-tion and collective bargaining

• Employee well-being• Accident-free workplaces

• Papyrus Performance Management process (PPMp), a Group-wide appraisal discussion process

• Papyrus Employee Per-formance Portal (EPP)

• Training programmes• Learning Management

Systems (LMS)

• Senior Executive Team• Country management• Operations• HR community

Operation EnergyEmissionsTransportEnvironmental assessment

• Responsibly reduce carbon footprint• Work towards sustainable use of natural

resources in the supply chain• Promote FSC and PEFC paper, which means

products from credibly certified fibre

• Senior Executive Team• Environmental

manager• Country management• Operations


GRI index

GRI indexThe 2015 Sustainability Report has been prepared in accordance with the Global Reporting Initiative (GRI) G4 guidelines, Core option. Material indica-tors have been selected based on a materiality analysis, conducted in 2015. The table specifies where information on the GRI indicators can be found.

INDICATOR GENERAL STANDARD DISCLOSURES MORE INFORMATION

STRATEGY AND ANALYSIS

G4-1 Statement from the CEO SR p. 4 and AR “Interview with CEO”

ORGANIZATIONAL PROFILE

G4-3 Organisation name SR cover pages

G4-4 Main events, brands, products or services provided by the organisation SR p. 2–3

G4-5 Location of headquarters Papyrus headquarters is located in Gothenburg, Sweden

G4-6 Operating countries and areas of major operations SR p. 2

G4-7 Nature of ownership and legal form SR p. 3

G4-8 Markets served and types of customer SR p. 2–3

G4-9 Size and scale of your organisation SR p. 2–3

G4-10 Size of your workforce SR p. 2–3

G4-11 Collective Bargaining Agreements Papyrus employees are free to associate with or join any union. Papyrus applies country-specific collective bargaining agreements and conforms to the country- specific laws and agreements in terms of the employment.

G4-12 Supply Chain SR p. 6

G4-13 Significant Changes No significant changes

G4-14 Precautionary Approach SR p. 17

G4-15 External Initiatives SR p. 17

G4-16 Memberships SR p. 23

IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES

G4-17 Covered Entities SR p. 2–3

G4-18 Report Content SR p. 22

G4-19 Material Aspects SR p. 22In total, 17 indicators were identi-fied as material in our materiality analysis.

G4-20 Aspect Boundary (Internal) SR p. 21

G4-21 Aspect Boundary (External) SR p. 21

G4-22 Restatements SR p. 21

G4-23 Significant Changes (Scope and Boundary) SR p. 21

STAKEHOLDER ENGAGEMENT

G4-24 Stakeholder groups engaged by the organisation SR p. 23

G4-25 Process for identifying with stakeholder groups SR p. 23

G4-26 Process for engaging with stakeholders SR p. 23

G4-27 Issues identified during stakeholder engagement SR p. 23

AR Papyrus Annual Review and Annual ReportSR Papyrus Sustainability Report


GRI index

REPORT PROFILE

G4-28 Reporting period SR p. 22

G4-29 Date of most recent previous report SR p. 22

G4-30 Reporting cycle SR p. 22

G4-31 Main contact for details relating to this report SR p. 22

G4-32 Report Level SR p. 22

G4-33 External Assurance SR p. 22

GOVERNANCE

G4-34 Governance Structure SR p. 24–25

ETHICS AND INTEGRITY

G4-56 Organisational Values SR p. 17–18, 24

INDICATOR SPECIFIC STANDARD DISCLOSURE MORE INFORMATION

G4-DMA Generic Disclosures on Management Approach SR p. 8, 24–25

ECONOMIC

ECONOMIC PERFORMANCE

G4-EC1 Direct economic value generated and distributed SR p. 3 and AR

ENVIRONMENTAL

ENERGY

G4-EN3 Energy consumption within the organisation SR p. 15–16, 20

EMISSIONS

G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1) SR p. 20

G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2) SR p. 20

TRANSPORT

G4-EN30 Significant environmental impacts of transporting products and other goods and materials for the organisation’s operations, and transporting members of the workforce

SR p. 20

ENVIRONMENTAL ASSESSMENT

G4-EN32 Percentage of new suppliers that were screened using environmental criteria SR p. 13–14

SOCIAL

SUB-CATEGORY: LABOUR PRACTICES AND DECENT WORK

EMPLOYMENT

G4-LA1 Total number and rates of new employee hires and employee turnover by age group, gender and region

SR p. 21

OCCUPATIONAL HEALTH AND SAFETY

G4-LA6 Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender

SR p. 21

TRAINING AND EDUCATION

G4-LA9 Average hours of training per year per employee by gender, and by employee category

SR p. 21


GRI index

G4-LA10 Programmes for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings

SR p. 12 and AR “Papyrus employees”

G4-LA11 Percentage of employees receiving regular performance and career development reviews, by gender and by employee category

SR p. 21

DIVERSITY AND EQUAL OPPORTUNITY

G4-LA12 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership

SR p. 21

SUPPLIER ASSESSMENT FOR LABOUR PRACTICES

G4-LA14 Percentage of new suppliers that were screened using labour practices criteria SR p. 13–14

SUB-CATEGORY: HUMAN RIGHTS

FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING

G4-HR4 Operations and suppliers identified in which the right to exercise freedom of associ-ation and collective bargaining may be violated or at significant risk, and measures taken to support these rights

SR p. 13–14

CHILD LABOUR

G4-HR5 Operations and suppliers identified as having a significant risk for incidents of child labour, and measures taken to contribute to effective abolition of child labour

SR p. 13–14

FORCED COMPULSORY LABOUR

G4-HR6 Operations and suppliers identified as having a significant risk for incidents of forced or compulsory labour, and measures to contribute to the elimination of all forms of forced or compulsory labour

SR p. 13–14

SUPPLIER HUMAN RIGHTS ASSESSMENT

G4-HR10 Percentage of new suppliers that were screened using human rights criteria SR p. 13–14

SUB-CATEGORY: SOCIETY

ANTI-CORRUPTION

G4-SO4 Communication and training on anti-corruption policies and procedures SR p. 17, 24

G4-SO5 Confirmed incidents of corruption and actions taken SR p. 24

ANTI-COMPETITIVE BEHAVIOUR

G4-SO7 Total number of legal actions for anti-competitive behaviour, anti-trust, and monop-oly practices and their outcomes

SR p. 24

SUB-CATEGORY: PRODUCT RESPONSIBILITY

PRODUCT AND SERVICE LABELLING

G4-PR3 Type of product and service information required by the organisation’s procedures for product and service information and labelling, and percentage of significant products and service categories subject to such information requirements

SR p. 9–11

G4-PR5 Results of surveys measuring customer satisfaction SR p. 10

Contact

Contact

Head OfficePapyrus ABP.O. Box 1004SE-431 26 MölndalSwedenPhone: +46 1051 70 000

Graphical and Business paper

AustriaPapyrus Deutschland GmbH & Co. KGNiederlassung München Hürderstraße 5DE-85551 Kirchheim – Heimstetten GermanyPhone: +49 89 61565-0

BelgiumPapyrus Belgium Papier nv/saInternationalelaan 55 b 33BE-1070 BrusselsBelgiumPhone: +32 2 529 85 11

Czech RepublicPapyrus Bohemia s. r. o.K Hrušovu 292/4 CZ-102 23 Praha 10 Czech RepublicPhone: +420 272 114 540

DenmarkPapyrus A/SOldenburg Allé 1DK-2630 TaastrupDenmarkPhone: +45 7022 3838

EstoniaPapyrus ASSõpruse pst 145EE-13417 TallinnEstoniaPhone: +372 6 788 670

FinlandPapyrus Finland OyKoivuvaarankuja 2FI-01640 VantaaFinlandPhone: +358 2077 49 49

FranceGroupe Papyrus France S.A.S.Les Diamants – Bat B41 rue DelizyFR-93500 PantinFrancePhone: +33 1 49 42 36 00

GermanyPapyrus Deutschland GmbH & Co. KGGehrnstraße 7-11DE-76275 EttlingenGermanyPhone: +49 7243 73 0

HungaryPapyrus Hungária Zrt.Könyves Kálmán körút 11/c.HU-1097 BudapestHungaryPhone: +361 452 98 00

ItalyPapyrus S.r.l.Via P. Vassanelli, 32 IT-37012 Bussolengo – VR ItalyPhone: +39 045 8630811

LatviaPapyrus SIADzelzavas iela 120s-13LV-1021 RigaLatviaPhone: +371 67 31 30 22

LithuaniaUAB Papyrus Lietuva R. Kalantos St. 59LT-52304 KaunasLithuaniaPhone: +370 37 400 330

NetherlandsPapyrus Groep Nederland bv P.O. Box 62NL-6500 AB NijmegenNetherlandsPhone: +31 88 65 65 222

NorwayPapyrus Norge ASP.O. Box 114 TveitaNO-0617 OsloNorwayPhone: +47 22 90 45 00

PolandPapyrus Sp. z o.o.Ul. Wołoska 5PL-02-675 WarszawaPolandPhone: +48 22 449 02 00

RomaniaPapyrus Romania SRLBdul. Timisoara Nr. 90RO-061334 BucharestRomaniaPhone: +40 372 462 400

SlovakiaPapyrus Bohemia s. r. o.Prague GateTürkova 2319/5bCZ-149 00 Praha 4Czech RepublicPhone: +420 272 114 540

SwedenPapyrus Sverige ABP.O. Box 1004SE-431 26 MölndalSwedenPhone: +46 1051 70000

SwitzerlandPapyrus Schweiz AGZürcherstrasse 68CH-8800 ThalwilSwitzerlandPhone: +41 58 580 58 00

Papyrus Supplies

DenmarkPapyrus Supplies A/SOldenburg Allé 1DK-2630 TaastrupDenmarkPhone: +45 7022 3838

NorwayPapyrus SuppliesGneisveien 30NO-2020 SkedsmokorsetNorwayPhone: +47 6400 2400

SwedenPapyrus Supplies ABP.O. Box 1004SE-431 26 MölndalSwedenPhone: +46 1051 70000

FinlandPapyrus Supplies OyKonalantie 47BFI-00390 HelsinkiFinlandPhone: + 358 400 241 452

SolbergPrint: Göteborgstryckeriet

Head OfficePapyrus ABP.O. Box 1004SE-431 26 MölndalSwedenPhone: +46 1051 70 000Fax: +46 31 706 09 87

www.papyrus.com

Sustainab

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