2022 Corporate Social Responsibility Report

Rooted

in Resilience

2022 Corporate Social Responsibility Report

Letter From Chairman & CEO

Fifth, despite everything – including a lack of snow and rain that impacted our hydro power generation – we improved our sustainability profile in tangible, measurable, and concrete ways. We not only achieved an excellent waste diversion rate of 98.6%, we increased our use of PCW fiber by 58% and earned a coveted Gold rating in the EcoVadis Corporate Social Responsibility (CSR) assessment, placing us among the top 8% of the 90,000 companies that are rated by EcoVadis. This is a 30% increase from our silver rating from the company’s 2015 assessment.

As we assess 2022 in its totality, our success was rooted in resilience. Looking ahead, no doubt there will be more suspenseful events that aren’t on anyone’s radar. The beauty of a durable and creative workforce, transparent customer communication, and expanded partnerships, will help us successfully deal with whatever 2023 brings – we’re ready.

Richard Verney, Chairman and CEO

Dear Friends, As we reflect on 2022, I can’t help but recall one of Oscar Wilde’s most memorable tongue-firmly-planted-in-cheek quotes:

Post-Covid uncertainty, supply chain and labor challenges, rampant inflation, a disruptive

“

and energy that keep us strong and healthy no matter the suspenseful vagaries of the

ground war in Europe shutting down gas pipelines – all these certainly provided the suspense. What’s remarkable is that this is juxtaposed against new partnerships, growth, and sustainability gains. While we hope all this high-stakes suspense will abate, what will never cease is the fact that Monadnock will persevere, as we have for more than 200 years.

For we are rooted in resilience. Roots that run long and deep, providing the vital nutrients larger climate.

The suspense is terrible.

I hope it will last.

”

Beyond the metaphor, what did this resilience look like, on the ground, in 2022?

First and always, our people proved yet again that they are the foundation to everything we’ve been able to achieve. Skilled, passionate, dedicated professionals who develop new and even more sustainably-advantaged substrates, craft our signature materials in our labs and on the mill floor, articulate and convey our unique selling proposition to the market, enlarge our partnerships and outreach – I owe this incredible team continued and well-earned thanks. Without them, it’s game over.

Second, to customers old and new, our gratitude. Working in close concert and with utmost transparency, we were able to meet their demands despite the logistical, supply chain, and raw material shortages that upended global commerce. Our roots run deep with our valued supply partners, and they proved resilient again. In fact, we were able to grow our sales by nearly 10% over 2021.

Third, expanding our partnership network with leading paper merchants, printers, and packaging companies. Specifically, we have chosen to work with new partners to better service the changing needs of our downstream clients in the marketplace.

Fourth, we expanded and deepened our collaboration with a growing network of industry and trade association partners to provide better visibility and understanding of how sustainable materials responsibly made can provide beauty without compromise.

This increased visibility with organizations such as Sustainable Brands and the Sustainable Green Printing Partnership helps further our mission. These new roots, carefully tended, complement the years of groundwork preceding them.

Fifth, despite everything – including a lack of snow and rain that impacted our hydro power generation – we improved our sustainability profile in tangible, measurable, and concrete ways. We not only achieved an excellent waste diversion rate of 98.6%, we increased our use of PCW fiber by 58% and earned a coveted Gold rating in the EcoVadis Corporate Social Responsibility (CSR) assessment, placing us among the top 8% of the 90,000 companies that are rated by EcoVadis. This is a 30% increase from our silver rating from the company’s 2015 assessment.

As we assess 2022 in its totality, our success was rooted in resilience. Looking ahead, no doubt there will be more suspenseful events that aren’t on anyone’s radar. The beauty of a durable and creative workforce, transparent customer communication, and expanded partnerships, will help us successfully deal with whatever 2023 brings – we’re ready.

Richard Verney, Chairman and CEO

Third Party Certification & Verification iso 9001

green-e®

Monadnock operates under the strict

All our products are made with Green-e

requirements of a third-party certified

certified 100% renewable wind-powered

ISO Quality Management System.

electricity through investment in

iso 14001 Monadnock operates under the

third-party verified renewable energy projects (RECs).

certified ISO 14001 Environmental

carbon neutral manufacturing

Management System.

Monadnock products are manufactured

strict requirements of a third-party

fsc® c018866 The FSC label ensures the responsible use of forest resources that are managed to meet the social, economic, and ecological needs of present and future generations.

carbon neutral through the investment in Emission Reductions (VERs) certified under the GHG Clean Projects Protocol.

Environmental Policy 2022 We are committed to responsible stewardship of the environment by •

Promoting environmental awareness among our customers, suppliers, converters, employees, and local residents.

•

Choosing materials with minimal environmental impacts during the design and development of new products.

•

Providing environmentally sustainable products and services to our customers.

•

•

Maintaining our record of compliance with environmental regulations and standards.

Encouraging legislators and state officials to develop sound environmental policies and regulations.

•

Committing to continuous improvement in pollution prevention and in reducing environmental impacts identified in our 14001 Environmental Management System.

•

Continuing to invest in research to determine innovative ways to reduce waste and to efficiently use natural resources.

Partnerships sustainable green printing (sgp) partnership – platinum patron In 2022, Monadnock elevated its support of SGP as a Platinum Patron. The organization certifies sustainability best practices for printing and packaging companies. SGP is successfully aligning with brands in pursuit of a more accountable supply chain.

They are driving substantial quantifiable change in energy efficiency, waste reduction and recycling, environmental compliance, responsible labor practices, improved process efficiencies, and operational excellence. We are pleased to support this critical mission.

sustainable brands In 2022, Monadnock joined Sustainable Brands to leverage this powerful platform that tackles environmental and social challenges that will drive innovation, business, and brand value. We will continue to learn from and collaborate with global brands and service providers in our mission to prosper, and provide value to our stakeholders.

ISO 14001 Objectives electricity

water consumption

Completed conversion of six v-belt drives

Sand filter upgrade on paper machine

on equipment. We expect to achieve a

#2 was completed in August, 2022. We

5% improvement in efficiency for each

expected to yield a 3% improvement

motor with a total savings of 60,000 kWh

over 2021. We missed our water goal by

per year that will be realized in 2023. We

.93%. Product mix, including a significant

achieved a 4.63% reduction in electricity

increase in coater production, contributed

use overall. We attained efficiencies

to an increase in water use, exceeding our

through increased production.

goal of 6,300 gallons per ton of production.

waste reduction

oil consumption

Diverted 98.6% of our waste away from

There was no change in oil consumption.

landfill for recycling. Despite a 10%

Heating controls, boiler improvements,

increase in production, our trash to

steam trap repairs and condensate pipe

landfill was reduced by 11% over 2021

insulation projects with an expected

with an excellent diversion rate of 98.6%.

savings of 2,925 MM BTUs were not completed in 2022. Savings to be

A Zero Waste company is often defined by a minimum 90% diversion rate.

realized in 2023.

ecovadis We completed the assessment improving our rating from Silver to Gold reaching the top 8th percentile.

recycled fiber While we didn’t set a goal for this metric, we were able to satisfy the increased demand for products made with 100% post-consumer waste recycled fiber, representing an increase of 58% over 2021.

Un-Plastic Timeline 1997

ultraform backlit poster

2010

plastic alternative In 2010, we unveiled Envi Wallgraphics,

Monadnock embarked on its Un-Plastic

our first renewable fiber-based alternative

mission in 1997 with Ultraform®

to PVC for digital wallcoverings. Today,

Backlit Poster. Ultraform was launched

digital wallcovering is the fastest growing

to replace PVC and styrene used in

segment in the wallpaper space.

retail and hospitality backlit and frontlit signage. Our unique ability to craft

Also in 2010, we developed a durable tag

paper with superb fiber formation and

for the horticulture market to replace

durability made this stock a perfect

HIPS and PVC for plant tags and pot

alternative for these high-performance

wraps, further capitalizing on our ability

applications.

to produce well formed, durable and

2008

printable papers.

duraprint

2011

In 2008, we launched Duraprint,

envi card

a durable, printable substrate for

Soon after, in 2011, we launched Envi Card,

turned-edge covering applications

a drop-in replacement for PVC and PLA

like entertainment, electronic device,

gift cards. Monadnock engineered a card

and cosmetic gift set packaging.

material that satisfied all the performance,

The unique qualities of this beautiful

aesthetic, economic and environmental

printing paper preclude the need

requirements set forth by the customer.

for a film-laminated structure.

This disruptive innovation, driven by brands, created a wave of change in the stored-value card supply chain requiring a shift in production methods. Best of all, this material is third-party verified for recyclability in the curbside mix paper waste bin.

2015

2020

In 2015, we developed a paper

In 2020, we launched ENVIsual, a range

alternative to plastics used in grocery

of poster board stocks to replace PVC

shelf channel merchandising. This

and styrene in rigid and durable retail

unique durable material innovation

and hospitality signage. This material

was driven by a sustainable grocery

was engineered for superior performance

chain with a mission to reduce

throughout the supply chain, and it is

plastics in its stores.

recyclable in the curbside mix waste

2019

paper bin.

shelf channel

hemp fiber

envisual

2022

In 2019, we developed a hemp fiber

pcw closures

blend product to replace plastic for

And in 2022, we collaborated with a global

the ubiquitous drinking straw.

brand to develop a paper-based, 100% post-consumer waste recycled bag closure.

Metrics

2020

2021

2022

2021-22

Electrical: kWH Used Per Ton of Production

631

576

552

-4.16%

Thermal: Oil Consumed YTD Gallons Per Ton

53

51

51

-

Total On-Site Hydroelectric Power Produced kWH

4,561,000

6,654,500

4,400,900

-34%

Mill Water Use Per Gross Ton

6,973

6,421

6,481

0.93%

4,166,720

6,713,844

10,602,512

58%

Waste Avoided (Pounds)

170,000

270,000

430,000

59%

BTUs Not Consumed (MM)

21,000

33,800

53,200

57%

Pounds of Wood Saved

16,640,000

26,800,000

42,400,000

58%

GHG CO2 Not Produced (Pounds)

21,500,000

41,062,038

55,000,000

34%

Wastewater Not Produced (Gal)

4,000,000

6,400,000

10,000,000

56%

Trash to Landfill Tons Actual

45.2

54.74

48.70

-11%

Trash Recycled Tons Actual

618.9

624

886.58

42% -

Mixed Paper Tons

1,922

2,099

2,559.00

22%

Waste Recovery

2,540.9

2,723

3,445.28

30%

Diversion Rate

98.3%

98%

98.6%

-

PCW Fiber Consumption Pounds EPN PAPERCALCULATOR.ORG

98.6%

Waste Diversion Rate in 2022

42,400,000

58%

Pounds of Wood Saved in 2022

Increase in PCW Use from 2021

Accomplishments EcoVadis Gold Rating This achievement places Monadnock in the top 8% of the 90,000+ companies ranked by EcoVadis. We achieved a 30% improvement in performance level since earning a silver rating in our assessment in 2015.

Through our years of sustainability leadership, we know that it’s a hard-fought journey where the gains are well worth it – for our employees, communities, and our customers.

Highlights of the assessment follow: environment The report lauds the company’s policies

labor & human rights

on environmental impacts including

The company’s comprehensive policy

materials, chemicals, and waste, as well

covering employee health and safety,

as energy consumption and GHGs;

working conditions, conflicts and

management of water efficiency and

resolutions was highlighted.

on-site wastewater treatment facilities; generation of renewable electricity; ISO 14001 Environmental Management System; and demonstration of consistent reporting practices across a broad range of environmental impacts including

sustainable procurement The report also singled out the company’s sustainable procurement policies on

water, energy, waste, and recycling.

supplier environmental practices and

ethics

by its FSC certification.

Monadnock’s policies on the majority of ethics criteria and its whistleblower procedures for stakeholders were acknowledged.

responsible sourcing as demonstrated

AIMCAL Sustainability Award The award recognizes equipment, materials, or processes that reduce environmental impact, minimize energy usage or waste, and/or increase recycling for work completed in 2021.

Monadnock’s Envi pc 100 Card was recognized with an award for its innovative approach to sustainability. This card is crafted from 100% post-consumer-recycled (PCR) fiber stock.

It’s designed as an eco-friendly alternative to materials like polyvinyl chloride, polylactic acid, virgin-fiber solid bleached sulfate, and mixed virgin/recycled fiber cards. Ideal for gift, membership, and loyalty cards, the Envi pc 100 Card stands out in efforts to reduce environmental impact, minimize energy usage or waste, and promote recycling.

EPA Region 1 Environmental Merit Award – Business This Business category award recognizes companies that are leaving indelible marks protecting and improving the environment and public health for the people of New England. Monadnock has long supported the EPA and participates in several voluntary programs that enable us to track and quantify our environmental impacts and goals for improvement.

NHTOA – New Hampshire Outstanding Forestry Award The award, presented by the New Hampshire Timberland Owners Association (NHTOA), recognizes superior business management, efficiency, productivity, the quality and marketing of a New Hampshire-based industry (sawmill, wood energy, secondary manufacturer, pulp and paper, etc.) for work completed in 2021.

Community Monadnock Worksource, a non-profit agency, provides and fosters work experiences for individuals with physical or intellectual challenges. For well over 20 years, we have collaborated with Worksource to offer their disabled clients employment opportunities. Our Worksource friends enrich our lives every day, providing important support to our teams with a willingness to get the job done. We celebrate, respect and value everything they bring to our workplace each week.

Monadnock participated in the Toys for Tots program during the 2022 holiday season. We were pleased to deliver 87 gifts to make a lot of little ones smile on Christmas Day. We are grateful for the generous spirit demonstrated by so many Monadnock employees to make this toy drive a success.

looking ahead Our roots are strong. We are proud of our achievements in 2022 and will build on that success. We will continue our sustainable innovation journey to deliver even more Un-Plastic solutions to our customers.

The challenges we face in 2023 are a little different than those experienced over the past few years. The bottlenecks in the supply chain have diminished and raw materials are more readily available than during the pandemic. Costs are not easing as quickly as they rose and finished goods inventories are high across the country. Lastly, energy costs have risen to alarming levels.

The “great retirement” impacted the depth on our bench and finding skilled workers continues to be difficult. We have made progress onboarding great new talent across the organization.

The EcoVadis assessment is a powerful tool that will help us to continuously improve what we make, how we make it, and how we can further engage with our supply chain partners in a responsible way. Our commitment to sustainability continues and we appreciate this gold seal of approval and, more importantly, the roadmap it provides for the future.

rooted in the community We are alive and well, relevant, and steadfast in our mission as steward, partner, and neighbor crafting sustainable specialty papers for brands worldwide. Resilience isn’t developed overnight.

It’s years in the making.

In the words of Phillip Knowles, who worked at the Mill between 1919-1969: “I would like to say a few words about the mill whistle. Most factories today do not have whistles. But we have always had one here. The original mill whistle was a small one. I ran across it one day in the old machinery shed and as I remember it was only about a foot and a half long and about 6" in diameter. I think the present one was installed about 1910. It is about 12" in diameter and 3 ft. long. They used to blow 2 blasts at 5:30 am – one at 7:00 am – one at 12:00 noon and once at 1:00 pm and again at 6:00 pm. My folks told me that when it was first used all the cats and dogs ran for cover every time it was blown. It has 3 separated sections or reeds and is tuned to the minor chord of G. I think that Mr. Pierce got the idea of such a whistle from the ocean liner on which he used to take frequent trips to England.

At the end of World War I, it was used to celebrate the Armistice and at the end of World War II it was also blown to mark the end of that war. I remember that at the end of the 2nd World War we were holding an impromptu celebration up town in the square and we had a Metropolitan opera singer, a Miss Doris Doe in town, and she was trying to sing the “Battle Hymn of the Republic” and at the same time the mill whistle was blowing in staccato blasts and she got quite upset about the whole thing and finally gave up in disgust. I believe this whistle can be heard 10 miles away if the wind is in the right direction.”

The mill whistle still blows three times a day, 7:00 am, 12:00 noon, and 5:00 pm. It’s a sign that Monadnock remains rooted in the Bennington community.

looking ahead Our roots are strong. We are proud of our achievements in 2022 and will build on that success. We will continue our sustainable innovation journey to deliver even more Un-Plastic solutions to our customers.

The challenges we face in 2023 are a little different than those experienced over the past few years. The bottlenecks in the supply chain have diminished and raw materials are more readily available than during the pandemic. Costs are not easing as quickly as they rose and finished goods inventories are high across the country. Lastly, energy costs have risen to alarming levels.

The “great retirement” impacted the depth on our bench and finding skilled workers continues to be difficult. We have made progress onboarding great new talent across the organization.

The EcoVadis assessment is a powerful tool that will help us to continuously improve what we make, how we make it, and how we can further engage with our supply chain partners in a responsible way. Our commitment to sustainability continues and we appreciate this gold seal of approval and, more importantly, the roadmap it provides for the future.

Monadnock Astrolite, ENVIsual, Ultraform, and Duraprint are trademarks of Monadnock Paper Mills, Inc. All trademarks and copyrights are the property of their respective owners.

Monadnock Paper Mills, Inc. 117 Antrim Road Bennington, New Hampshire 03442-4205 Sample Room 877.877.2098 www.mpm.com

Please keep, share or recycle.

production notes: Printed on an HP Indigo 12000 on Monadnock Astrolite pc 100 Velvet 80 lb. Cover and 80 lb. Text.

Printed in March 2024 by Shawmut Communications, a Sustainable Green Printing Partnership (SGP) Certified printer.