2020 Corporate Social Responsibility Report Monadnock Paper Mills, Inc.
3
17
Monadnock in Early Spring
4 7
16 Labor Relations
Letter from Chairman and Chief Executive Officer
About Monadnock
8 Leadership 2020
15 9 Making The Grades 10
Trail Map The Journey through R Report Monadnock’s 2020 CS
Third-Party Certification/Verification
Celebrating our First Responders
Corporate Responsibility
Our Mission and Our Promise
13 18
Paper 11 Making Since 1819
12 Sustainability-Oriented Innovation
Voluntary Programs
19
Quality Management System (ISO 9001:2015)
20
Responsible Supply Chain Management
24 Variables Affecting Environmental Improvement Objectives
26 EMS Business Context
22
What Gets Measured Gets Managed
29
25 EMS Sustainability Objectives
27
Environmental Management System (ISO 14001:2015)
The Green Team
28
Community
21
Conservation
31 Thanks to MPM, the Bald Eagles Have Landed (and Continue to Land) at New Hampshire’s Powder Mill Pond
Cloud-topped and splendid, dominating all The little lesser hills which compass thee, Thou standest, bright with April’s buoyancy, Yet holding Winter in some shaded wall Of stern, steep rock; and startled by the call Of Spring, thy trees flush with expectancy And cast a cloud of crimson, silently, Above thy snowy crevices where fall
Monadnock in
Early Spring 5
Amy Lowell – 1874-192
3
Pale shrivelled oak leaves, while the snow beneath Melts at their phantom touch. Another year Is quick with import. Such each year has been. Unmoved thou watchest all, and all bequeath Some jewel to thy diadem of power, Thou pledge of greater majesty unseen.
Letter from Chairman and Chief Executive Officer Richard G. Verney Nothing could have prepared any of us for the appearance
There are strategic implications of being a specialty paper mill.
and consequences of COVID-19 in 2020. I want to express
We rely on a wide range of supply chain partners to craft our
my sympathy to all who are affected by the pandemic and
portfolio of well over 100 paper grades for markets worldwide.
sincerely hope to see the world heal very soon.
We continue to adapt through daily disruptions across the breadth of our business.
I’ve been reflecting on what made it possible for us to navigate the unknowns and what it will take to prosper through 2021
During the height of economic uncertainty, we remained firm
and beyond. Over the past year, my primary focus was on
in our belief that investing in new product innovation needed
protecting the well-being of our people and keeping the paper
to continue. As a privately held company, we can afford to
supply chain open to markets deemed critical and necessary
take the long-term view that these investments are crucial
in a distressed global economy. From our deep roots in the
to meeting emerging marketplace needs and ensuring our
Bennington, New Hampshire, community to the support
long-term viability.
of dedicated employees, we will continue to persevere amid unprecedented unpredictability.
4
These reflections have left me feeling oddly optimistic. Part of
Crafting extraordinary solutions for a sustainable world
weathering the current storm and preparing for the next one
exemplifies who we are and what we do. With more than 200
(and after two centuries, we have endured and survived more
years of experience in papermaking, and as a family-owned
than our fair share of storms) is that we continue to invest. We
and -operated business, I realize that our foundation in
invest in our people, in our technology and in our partnerships.
corporate social responsibility was – and is – our North Star.
Quarterly results are important; the next quarter-century
Richard G. Verney, Chairman and Chief Executive Officer
even more so. We will continue to challenge ourselves to reduce our environmental impacts, substitute materials, reduce demand on natural resources and reuse whatever we can, while providing a safe and healthy place to live and work – not only for this generation but also for future generations.
5
About Monadnock Monadnock is a family-owned and -operated business with 200 years of experience in papermaking. We provide a diverse range of paper products, including technical/specialty papers, premium printing and packaging papers for leading brands worldwide. We work as a true partner with our customers and our technical expertise and agility result in products that lead the market in innovation and quality. With a passion for the environment and ingenuity, we turn ideas into reality. Monadnock has always believed in being a good citizen not just in the corporate arena, but also to the people with whom and the communities in which we live and work. While economic resources make a great deal of difference to charitable organizations, our actions also can have a significant — and sometimes longer-lasting — impact. When our local schools, parks and recreation departments, town councils and citizens can benefit from our actions, we have an opportunity. When we take advantage of those opportunities — by finding ways to reuse or repurpose materials and improve, honor and educate our community — our success is mutually beneficial.
7
Leadership 2
020
Richard G. V ern
Chairman an d
ey
Chief Executi ve
Officer
Andrew Man n
Chief Financi al
s
Vice Presiden t, Sa
les and Marke
Bill Peterson
Vice Presiden t, Human Res ou
rces
Vice Presiden t, Research and Develop ment
ld
Vice Presiden t, Manufactu ring
Lisa Taylor
Officer
Dr. Rajan Iye r
Bob McDona
ting
Julie Branne n
Director, Sust
ainability So
lutions
Brian Maloy
Manager, En vironmental Serv
ices
8
Making the Grades What we make and how we make it matters. We work continuously with suppliers to find better chemistry and more efficient equipment and energy options. Monadnock maintains that renewable fiber-based alternatives to plastic can be cost efficient, environmentally sensitive and beautiful. All Monadnock papers are manufactured carbon neutral and made with 100% renewable electricity. In response to consumer demands, we are offering more papers made from post-consumer waste recycled fiber, cotton, hemp, Kona fiber from reclaimed coffee bean bags and a host of other fibers.
9
Our Mission We will consistently meet the needs of our global customers for high-performance papers for the technical/specialty, packaging and printing markets. We support our mission with the continuous rapid development of new value-added products, high levels of customer service and continuous operational improvement. We accomplish our mission with an uncompromising commitment to the health of our employees, the environment and the communities in which we operate.
Our Promise To deliver responsibly made materials to solve critical needs and challenges faced by global organizations and build a better world together. 10
Making Paper Since 1819 Monadnock is a family-owned and -operated business with 200 years of experience in papermaking.
11
Sustainability-Oriented Innovation Socially and environmentally responsible investments in technology, processes and products deliver value to our customers and the surrounding community.
12
Corporate Responsibility Our top priority is our people. We endeavor to foster an atmosphere of trust, respect, cooperation and a mutual commitment to excellence. This enables individuals and our organization to survive and thrive. We will leverage the power of our differences and enable our employees to connect and collaborate. We want them to feel safe, to have a voice and to offer them the opportunity to grow.
In all our relationships, Monadnock Paper Mills is committed to the highest level of ethics and values. Our core values are:
Safety – Safety is a core business value. We will strive to
Quality – We will strive to ensure that our workmanship
promote excellence in safety and health to ensure a safe work
is the best in the industry.
environment for all employees, subcontractors, suppliers and the community in which we work.
Customers – We will respect our customers and strive to exceed their expectations in every aspect of
Integrity – We will always practice the highest standards of
our business relationships.
honesty and integrity in every aspect of our business and our
13
relationships. This means that Monadnock Paper Mills, Inc.
People – Our employees are our most valuable asset.
will treat employees, customers, suppliers, subcontractors
We will continually foster trust, respect, cooperation and
and the general public with honesty, integrity and fairness.
a mutual commitment to excellence with all our employees.
The Environment – We are committed to full
Accountability – We will promote this policy by taking
compliance with all federal, state and local environmental
timely, constructive action to correct mistakes or behavior
laws, requirements and guidelines. Not only is environmental
that is inconsistent with this Code of Business Ethics and our
compliance legally necessary, but also it is an important
Code of Conduct.
component of our obligation to the community in which we do business and to ourselves. It is essential that each
Honesty – We will be truthful, accurate and forthcoming
employee involved with regulated air emissions, water
in our dealings with fellow employees, customers, suppliers,
discharges, hazardous materials or other regulated pollutants
governmental agencies and the general public.
knows and complies with all applicable environmental laws, requirements and guidelines.
Corporate Citizenship – We will be good corporate citizens by making social responsibility and respect for applicable laws and regulations an integral part of our business activities and relationships.
14
Celebrating Our First Responders There are 25 Monadnock employees who participate in our first-responder program. They are highly trained and certified in lifesaving CPR and first aid to respond to emergencies within Monadnock as well as the surrounding community.
Dave Burnham, Maintenance
Ian Hamilton, Coater
Josh Brown, Stores
Dana Coburn II, Maintenance
Justin Nickerson, Finishing
Brian Maloy, Environmental
Chris McGuire, Maintenance
Dave Holland, Finishing
Mike Butler, Environmental
James McGuire, Maintenance
Julie Brannen, Sales
Steve Jones, Technical
Andrew Waycotte, Maintenance
Melissa Gregoire, Finishing
Rich Beahm, Quality
Mark Poland, Coater
Scott Martel, Finishing
Tammie Blanchette, Manufacturing
Randy Fournier, Machine Room
Jeff Gauthier, Finishing
Christine Mason, Manufacturing
George Ingalls, Machine Room
Josh Rochford, Finishing
James Fischer, Machine Room
Peter Noddin, Human Resources
Labor Relations We respect the right to bargain collectively and our common goal of a safe and productive work environment. Monadnock’s production employees are affiliated with United Steelworkers AFL-CIO-CLC and its Local Union No. 4-0472.
16
Mt. Monadnock from above Dublin Lake
Voluntary Programs Monadnock is a longtime supporter of the EPA’s self-reporting environmental impact reduction programs. We continue to participate, share our progress and educate our stakeholders about the value of these tools.
EPA SmartWay Transport Partner Since 2010 The SmartWay program helps companies advance supply chain sustainability by measuring, benchmarking and improving freight transportation efficiency to mitigate adverse effects on the environment and public health. For 20 years, Monadnock has committed to using SmartWay carriers as often as possible.
EPA WasteWise Partner Since 2002 In 2002, Monadnock entered baseline data to begin tracking different materials in its waste stream and setting annual goals for using more recycled materials, increasing recycling and diverting materials from the landfill. See the metrics under the EMS section of this report.
EPA Green Power Leader Since 2007 This EPA program is helping to advance the American green power industry. Monadnock is an EPA Green Power Partner manufacturing with renewable electricity through investments in Green-e certified renewable energy projects (RECs). Today, 100% of Monadnock’s electrical requirement is satisfied with renewable wind-powered electricity.
% Smartway Transport Carriers 2018
73.9%
2019
74.8%
2020
82.6%
Environmental Paper Network (EPN) Power User Since 2014 Monadnock is committed to taking a leadership role in accelerating the sustainable production of paper. We support the EPN paper calculator as a Power User. This independent, non-profit initiative is the preeminent tool for quantifying the benefits of sustainable paper sourcing. Monadnock makes this tool available at www.mpm.com/impact.
New Hampshire Businesses for Social Responsibility Since 2006 New Hampshire Businesses for Social Responsibility convenes, inspires and supports businesses and their community stakeholders to build a more sustainable and prosperous state for all. Monadnock has actively participated with the NHBSR community and is a member of their Cornerstone Hall of Fame. 18
Quality Management System (ISO 9001:2015) Monadnock operates under a third-party certified Quality Management System (QMS). The QMS provides a framework for operational excellence and continuous improvement. Our quality commitment is supported by a corporate Quality Policy. www.mpm.com/quality
19
Responsible Supply Chain Management Monadnock strives to work with vendors and suppliers who treat their employees with dignity and respect, adhere to applicable laws and regulations, and make their products in an environmentally sustainable manner. Monadnock’s supply chain partners adhere to third-party requirements for chain-of-custody, product safety and responsible environmental practices. Monadnock maintains material composition reports (Safety Data Sheets) to satisfy requirements for product chemical restrictions imposed by regulations and laws. All raw materials are reviewed and approved by Monadnock’s manager, environmental services, for their environmental impact. All fiber purchased by Monadnock is responsibly sourced from third-party certified suppliers.
20
Environmental Management System (ISO 14001:2015) Environmental management is integrated in Monadnock’s business operations strategy and administered through a third-party certified ISO 14001 EMS. Monadnock is recognized as a sustainable innovator committed to environmental impact reductions. www.mpm.com/sustainability
21
® initiative ic t s a l -p un
ars, we produced ye e re th st pa e th r ve O wable fiber 16,469,619 lbs. of rene replaced materials that directly chain. plastic in the supply
EMS Business Context Employees Community Legislators
Customers Suppliers/Converters Regulators
Health and safety of all stakeholders.
Ethical business conduct.
Resource and energy conservation. Emission and waste reductions. Effluent.
Maintain a record of compliance with regulations and standards.
Invest in research to reduce waste and to efficiently use natural resources.
Choose materials with minimal environmental impacts in design and development of new products.
Provide environmentally sustainable products and services to our customers.
Educate and promote social and environmental awareness.
Encourage legislators and officials to develop sound environmental policy and regulations.
Moderate Importance High Importance
Stakeholders
Moderate Impact
High Impact
Variables Affecting Environmental Improvement Objectives Impact reduction activities vary dramatically in scope and necessary
In a good year, Monadnock can generate over 50% of its
resources. Annually, we review priorities and focus our attention on
electrical requirement from this on-site, clean, renewable,
projects that have the potential to yield the most significant results.
low-impact system of impoundment, dams and turbines.
That is why you see different objectives from year to year.
Hydroelectric generation is dependent on rainfall. While we continue to upgrade and improve these facilities, it is
The reality in a specialty/technical paper mill is that, in some
rain that drives the turbines that feed us electricity.
markets, production runs are getting shorter. Increased grade changes and a highly variable product mix on paper
In 2020, COVID-19 had a tremendous impact on the retail
machines require more resources across the operation.
and hospitality sector – a market we serve with a wide range
While we have minimal control over what our customers
of plastic-replacement products like stored-value gift and
want and when they want it, we continue to drive efficiency
loyalty cards and durable signage. While product development
and conservation solutions under our ISO 14001 EMS.
efforts continued, sales and environmental results were
We schedule production to optimize running efficiencies
negatively impacted.
and minimize environmental impacts.
24
did you know?
e Mt. Monadnock is on of the most climbed rld. mountains in the wo
EMS Sustainability Objectives Science-Based Targets Each year, we review the context of our operations and prioritize impact reduction projects to achieve the best outcomes.
Reduce Energy Use – electrical usage from the grid and thermal energy through efficiency projects and equipment upgrades.
Reduce Water Use – through process improvements, material substitutions and new technology.
Minimize Waste – through investments in monitoring technology; broke reduction teams targeting opportunities for yield improvements on the paper machines and the coater.
Introduce new sustainable products and promote incremental growth of existing sustainable products.
Plastic/Vinyl/PVC/Styrene replacements – durable/rigid signage, gift cards, wallcoverings.
High post-consumer waste recycled content and alternative fiber products – new 100% PCW and alternative fiber papers and packaging.
Enhance outreach/communications with stakeholders – through public relations, public forums, trade organizations, website and print communications.
Targets
25
YEAR
2018
2019
2020
Mill Water, Gallons Per Gross Ton of Production
6,500
6,400
6,100
Oil, Gallons Per Gross Ton of Production
50
50
50
New Sustainable Products
Durable Tag
Astrolite PC 100 Velvet
Envi PC 100 Board
Outreach Frequency
8 Activities
10 Activities
12 Activities
What Gets Measured Gets Managed
YEAR
2018
2019
2020
Electrical: kWH Used Per Gross Ton of Production
652
599
631*
Thermal: Oil Consumed YTD, Gallons Per Ton
52.5
52.5
52.9*
Total On-Site Hydroelectric Power Produced, kWH
6,399,600
4,507,800
4,561,000
Total On-Site Steam Power Produced, kWH
428,400
322,800
309,200
6,913
6,769
6,973
Trash to Landfill Tons
42.5
52.8
45.2
Trash Recycled/Diverted Tons
597.4
626.2
618.9
12,500
12,500
10,500
12.16%
9.79%
12.23%
ENERGY
WATER Mill Water Use, Gallon Per Gross Ton of Production
EMISSIONS CO2eq Offset with VERs Metric Tons RECYCLED FIBER Percentage PWC to Gross Tons Produced
EPN PCW IMPACT REDUCTIONS (papercalculator.org) Waste Avoided (Pounds)
160,000
160,000
170,000
BTUs Not Consumed (MM
20,700
19,200
21,000
Trees Still Standing
16,440,000
15,240,000
16,640,000
GHG CO2 Not Produced (Pounds)
21,300,000
19,800,000
21,500,000
Wastewater Not Produced (Gal)
4,000,000
3,700,000
4,000,000
Retail Plastic Replacement Initiative (Pounds)
4,729,982
6,312,918
5,426,719*
Sustainable Product Development
Astrolite pc 100® Velvet
Envi® pc 100 Performance Board
Envi® pc 100 Card Envi® Durable Tag
Community Outreach & Education (frequency)
8
10
12
* Reduced operations resulting from the COVID pandemic in 2020 adversely affected progress in environmental impact reductions and budgeted sales of products to the retail sector.
WASTE
26
The ongoing success of Monadnock’s sustainability initiatives is attributed to a company-wide effort fully supported by Monadnock’s executive management and spearheaded by the “Green Team.” Composed of members from across all functional areas of the company, the team identifies opportunities for environmental impact reductions and reports the results across the company to promote transparency and awareness.
Green Team projects have yielded the following impact reductions:
27
YEAR
2018
2019
2020
Saved kWH
88,062
105,502
112,000
Saved Oil, Gallon
33,174
23,950
51,405
Relative CO2eq Pounds Avoided
824,244
595,063
1,277,212
Community | We believe we have an obligation to do good. Monadnock and its employees continue their support of civic organizations; drug and alcohol abuse prevention programs; local schools, museums, conservation programs and historical societies; local family service organizations, community resource and rehabilitative programs; and the arts and music. Monadnock will continue to support these institutions and foster engagement in the communities where we all live and work.
28
Conservation The Bruce Edes Memorial Forest Trail Bennington, New Hampshire 43.001715, -71.9262 2.2-mile Loop, Easy Nestled between Route 202 and the Contoocook River, this 34-acre forest land was donated by Monadnock Paper Mills to the Town of Bennington. In 2005, the forest was dedicated in honor of longtime employee and community leader Bruce Edes and his love of nature. Bruce worked tirelessly with the Bennington Conservation Commission to protect and preserve this special place. 29
Go
C ont o o c
out
R
Antrim R oad
N
31
2/ 0 2 e
ld
oo kR
iver
Pierce
ad Ro Hill
W - White Trail
R - Red Trail
To 202/31
Y - Yellow Trail
ead Trailh
Street
School
Cr os sS
Starr ett Road
B - Blue Trail G - Green Trail - Rail Trail - Bench
t re et
Road im r t An
Rt 47
30
Thanks to MPM, the Bald Eagles Have Landed (and Continue to Land) at New Hampshire’s Powder Mill Pond 31
New Hampshire’s Powder Mill Pond is the site of the last upstream dam on the Contoocook River that is owned and operated by Monadnock Paper Mills. The holding basin provides upward of 50% of the company’s power-generation needs every year while offering refuge to a host of wildlife, including one emblematic of Monadnock’s more than 200-year history as a great U.S. company: the American bald eagle.
32
Powder Mill Pond was designated as a sport fish and wildlife
up from just one in 1991. (After historic and alarming low
site by the New Hampshire Fish and Game Department in 1991,
numbers in the 1970s, there are now approximately 316,000
the agency stocks and oversees the 435-acre restoration area.
bald eagles in the continental U.S., according to the U.S. Fish
It’s enjoyed by hundreds of boaters, kayakers and anglers and
and Wildlife Service.)
117 species of birds – in addition to that all-American symbol of renewal and resilience.
“Bald eagles are territorial and nest in the same area year after year, so one of our jobs is to ID which nest sites have potential
Monadnock closely monitors the dams and pond levels to protect
threats and try to mitigate those threats,” says Martin. “Back in
this rich and beautiful habitat, with NH Audubon assisting the
2016, we ID’d a new mating site in a giant pine tree above a busy
Fish and Game Department in its statewide efforts to protect
campsite at Powder Mill Pond. We said to ourselves ‘Who owns
the bald eagles’ mating sites.
this, and do they know the eagles are here?’”
“Speaking as a wildlife biologist, the company has been nothing
Fortunately for NH Audubon, not to mention the eagles,
but cooperative on this project,” said Chris Martin, a senior
when Martin discovered Monadnock was the owner, he was
biologist with NH Audubon. “It’s a good endorsement from
justifiably optimistic. The organization already had worked
the wildlife community of what their entire operation is like.”
with the company on a Hawk Watch site. He requested a meeting with CEO and Chairman Richard Verney, and the
Martin should know: He is NH Audubon’s expert on managing
response was enthusiastic and immediate.
and maintaining bald eagles across the state for three decades.
33
The organization’s partnership with the Fish and Game Depart-
“He said, ‘Shut down the campsite right now and let’s keep those
ment has resulted in 76 documented nesting pair sites in 2020,
eagles safe.’ And that was that,” Martin recalls with a chuckle.
According to Martin, the Fish and Game Department closes the campsite and installs warning signs during breeding season, which lasts from April until, fittingly enough, the Fourth of July. On average, bald eagles gestate for five weeks before hatching and spend 12 weeks in the nest until reaching adulthood. “We close down these breeding-site locations wherever we can, not because humans knowingly harm the eagles,” says Martin. “It’s due to the fact that all of that human activity distracts the eagles from tending to the eggs and to the hatchlings. Bald eagles produce only one to three eggs per nest, and only a small percentage make it to adulthood. Increasing the odds is what we’re trying to do.” And with Monadnock’s help, the numbers continue to be on the upswing. One might even say they are soaring. For more information, visit: www.nhaudubon.org www.wildlife.state.nh.us
Third-Party Certification/Verification
ISO 9001:2015 Certified Quality Management System
Forest Stewardship Council Certified FSC® C018866
ISO 14001:2015 Certified Environmental Management
GHG Clean Projects Protocol –
System
Verified Emission Reductions for 100% Carbon Neutral Manufacturing
Green-e Certified – 100% Renewable Wind-Powered Electricity 17
Made with the Environment in Mind
Manufactured with third-party Green-e certified wind power Renewable Energy (RECs). www.green-e.org.
Forest Stewardship Council® Certified. All Monadnock virgin fiber papers are manufactured with elemental chlorine-free pulps.
Manufactured carbon neutral with verified emission reductions certified under the GHG Clean Projects Protocol.
The recycled fiber in Monadnock papers is processed chlorine-free.
Monadnock Paper Mills, Inc. Customer Service 800.221.2159 | Sample Room 877.877.2098 | samples@mpm.com | www.mpm.com
Certified ISO 9001 Quality Management System.
Certified ISO 14001 Environmental Management System.
Made in the USA.