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PaperWorks Sustainability Report

CEO’s Letter
As I take the helm at PaperWorks, I am enthused by the opportunity that lies before us. Driven to become the industry’s top supplier of recycled board and innovative packaging solutions, we have an opportunity to redefine leadership within our industry.

PaperWorks is an amalgamation of four companies and two mills, all with previously different operating practices and growth strategies. Despite our former differences, we have always shared common values and goals: an efficient and sustainable company that respects our environment, community, and heritage while offering a safe workplace. These core values continue to drive us forward as PaperWorks Industries, Inc.

The objective of our first sustainability report is to show our evolution in terms of driving efficiency across our company. I strongly believe that sustainability and efficiency go hand-in-hand. The reduction of waste and energy, for example, are core to both manufacturing and sustainability. This report is not only an account of our results in terms of sustainability, it is a testimony of the values and goals that are common to all personnel. It encompasses our organization’s value system and gives an insight into where we came from, where we are, and where we want to go.

2011 was a year of integration and growth for our company. Throughout this report, you will see that some of the metrics were not tracked by our legacy companies in 2010. In 2011, we worked diligently to integrate legacy companies, standardize reporting, and centralize policies and programs; going forward, you will see more consistent reporting as we have implemented a corporate-wide sustainability reporting system. Along with the challenges of integration, we made some significant accomplishments: completing two large-scale, energy efficiency upgrades; winning the Paperboard Packaging Council’s Eco-Award for innovative packaging (HolobriteTM process); launching new safety initiatives and standardizing benefits for all employees. The economy also proved a challenge in 2011. While we reported more new growth in 2011 than in previous years, existing sales from long-standing customers dropped, we closed our London, ON, Canada facility, and our mills faced slowdowns. These realities impacted our sustainability goals relative to sales.

Identifying performance improvements requires a commitment from all employees and stakeholders. Metrics available in this report are a result of exchanges with our customers, employees and industry associations. For example, we have taken part in P&G’s sustainability scorecard program since its inception. This program has helped us direct efficiency goals in our site-based sustainability performances. The successful integration of their objectives into our metrics resulted in being recognized as one of only 17 suppliers worldwide to receive excellence in sustainable performance as it relates to the P&G Supplier Scorecard. As we continue to track and report our annual sustainability performance, we will continue to dialog with our stakeholders to understand what metrics are key to them and in such, uncover additional opportunities for sustainable growth within our company.

When effectively integrated, sustainability drives innovation and operational efficiency. This report summarizes where we came from, where we are, and areas of opportunity, and gives us a vision of where we need to go in the future. I hope you will take the time to carefully read this document and share your thoughts to help us drive a company that is committed to improving in all matters of sustainability, teamwork and efficiency; a company that continues to progress while leaving a positive legacy for generations to come.

Comments or questions regarding this report can be directed to:

Mark Staton
President and CEO

This report, covering our performance for 2010-2011, is PaperWorks Industries’ first annual sustainability report. This report will provide a framework for future public reporting by our organization and measure our performance against our sustainability goals and objectives. Data comes from invoices and regulatory reporting inserted monthly into our “real-time” sustainability tracking software to drive continuous improvement.

Our Sustainability Director was responsible for collecting data and drafting this report. A committee of representatives from our executive team reviewed and provided guidance on the final report. Unless otherwise noted, data used in this report is from our wholly owned U.S. and Canadian operations and business units.

Regardless of acquisitions in 2010, we have done our best to standardize data between facilities. Facilities lost1 due to acquisition activities have been excluded from this report even though they may have been active for a short time during this period.

PaperWorks Packaging supports the efforts of the Global Reporting Initiative (GRI)2 to standardize sustainability reporting globally. We self-declare that this report meets the GRI Indicator protocols at application level C.

At PaperWorks, we take pride in manufacturing a product that is by its very nature sustainable, and we are constantly looking for environmentally friendly ways to improve our processes. The recent acquisition of our packaging plants and paper conversion facilities allows us to perform closed loop manufacturing. Converting plants purchase board from our facilities and other vendors, and then return any excess board waste back to paper mills at the end of the day.

The paper industry has one of the best recycling rates of any recyclable prod uct (70% across Canada and the U.S.). Consumers rank (a) use of recycled products and (b) ease of recycling as the top criteria they loo k for in assessing sustainable packaging.
Source: EcoFocus Worldwide 2011.

Sustainability Success Story –Holobrite
DESIGN FOR RECYCLING”: The PaperWorks Packaging Group is trained to work with customers to design packaging that is more readily recyclable. This helps drive further sustainable package performance and ensures we use our natural resources more efficiently. As an integrated packaging provider, we have a reputation for designing packaging with recyclability in mind. Our Holobrite process provides customers seeking the high-end look of holographic imaging with a sustainable alternative with the same look at less cost.

Working with P&G, we applied our Holobrite process on their Crest toothpaste box to provide a shimmer that reflects and refracts light similar to a traditional holographic PET laminated board. Spot-applying saved time and reduced costs by limiting the players in the supply chain and dropping the package weight by an estimated 6%. The savings on shipping alone led to a 9.5% reduction in overall carbon emissions. In addition, the new carton is fully recyclable, unlike paperboard cartons containing polyester film laminations.

By considering the end of life of our cartons, we create a more sustainable alternative for our customers and establish a closed loop cycle between our operations. Many companies use relative measures so they can normalize data to reflect any changes in the operating practices of the company. If we only measured absolute emissions, then any new acquisitions or increased production would reflect an increase in emissions without being able to explain the operational change.

Using both absolute and relative readings allows us to track whether we are successfully decreasing energy demand at our sites despite increases/decreases in production. Even though our overall energy demand decreased between 2010 and 2011, we are disappointed to report that our relative score saw a slight increase, an indication that we consumed more energy per dollar sold. It is therefore clear that we need to further reduce energy consumption to defray any future fluctuations. This result will only drive further efforts toward improving our onsite energy consumption.

The United States is the only developed nation without an Extended Producer Responsibility (EPR) program for packaging. Under the current economic climate we’re seeing more interest at the federal, state and local levels to explore legislation for packagingbased EPR programs. While it has been argued that EPR is an additional tax that will be passed along to the consumer, recently the debate has started to evolve toward an understanding that a well-designed EPR program is not a tax per se, but rather an incentive to figure out how to get valuable material back and remove volatility from the supply chain. As recycled board mill operators, EPR could be beneficial toward ensuring that we obtain a steady and reliable stream of input materials. On the other hand, as converters, we understand a fee based on packaging could impact both our customers’ and our own margins.

Through our involvement with AMERIPEN, PaperWorks is co-leading an effort to understand international programs and their success in increasing recycling rates, access to quality recycled materials for repurposing, and incentives for sustainable design. By encouraging dialog to explore beyond the economic aspects of legislation, we believe we can work collaboratively toward finding a solution that works best for all stakeholders.

Founded in 2008, PaperWorks Industries, Inc. is a leading North American integrated fullservice packaging provider. Through a series of strategic acquisitions, the company now has more than 1,600 employees across 16 North American manufacturing locations with annual sales in excess of US$600 million. PaperWorks Industries is a privately held enterprise owned by Sun Capital Partners. Its headquarters are located in Philadelphia, PA.

Our packaging division is considered in the top 10 suppliers of folding cartons and a leading innovator in the production of both commodity and specialized folding cartons. Our sheeting facilities provide quick-turn sheeting, rewinding and cutting operations to commercial printers and packaging companies. Our mills offer high-quality coated and uncoated recycled paperboard, manufacturing close to 300,000 tons a year for predominately consumer packaged products. Currently, we are the largest recycled boxboard supplier to the non-integrated open market.

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Global Green News: Green Projects Get a $47.6 million Lift from EU

Global Green News: Green Projects Get a .6 million Lift from EU

A total of 35 million euros or .6 million will be invested into the E.U.’s eco-innovation program. According to E.U., the eco-innovation will include new products, manufacturing methods, services, management, and business processes that lessen impact on the environment and maximize use of resources available.

According to the European Commission, the fund will be assisting start-up projects in green business, sustainable building products, materials recycling, and the food and drink sector in entering the market.

Around 45 to 50 new green projects are expected to receive assistance from the fund.  The projects will be selected based on their market duplication potential, originality of processes, and participation to European environmental policies.

Green businesses, according to global green news, are said to take around 2.5 percent of the E.U.’s gross domestic product.

For materials recycling, the E.U. is on the look-out for projects that have environment-friendly design, green sorting methods, and innovations that increase effectiveness of the recycling business.

Green building projects that will be approved by the E.U., on the other hand, should concentrate on using products and processes that lessen use of resources and which has less waste product and carbon.

For the food and drink area, E.U. hopes to see projects that use packaging processes and materials that can optimize raw material use and lessen the impact on the environment.  E.U. is also looking for those that offer processing that can boost material recycling and recovery and can push better water management of systems for the supply chain.

To qualify for the E.U. fund, green business and smart purchasing projects should give replacement materials that offer higher efficiency and should have innovative production processes.

The eco-innovation program will only be accepting applications until September 9.

For the duration of 2008 to 2013, the E.U. is setting aside 200 million euros for the eco-innovation project.  A total of 44 projects have already been supported by the program.  Green projects include using bamboo plantations as water purifies for use in bathing and household washing; substituting traditional paper labels with modern laser technologies; and transforming used tires into insulation instruments.

European commissioner for the environment Janez Potočnik says the eco-innovation program will prove that helping the environment is good for the business, as global green news show that various products and services in the market are now showing how environmental protection can go hand in hand with aggressive industry growth.


Ashly Sun is a seasoned writer, having travelled around the world, largely putting all her experiences and the sights and sounds she has come across to paper.  She now writes extensively about topics related to green news, mostly on renewable energy, but also on a variety of related topics as well.  When not travelling around the world, she is based in Central Hong Kong, taking in the myriad colours, flavours, and scents of the melting pot that Hong Kong is known for.

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