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1OurSustainabilityProgressReportNatureofMonadnockThePaperMills WhoAreWe......................................................................3SettingGoalsandCommunicatingPerormance...........4Environment......................................................................6Energy................................................................................8Emissions..........................................................................10WaterConsumption.........................................................12SolidWaste........................................................................14ProductsandProcess.......................................................16OurPeopleOurCommunity..........................................18LookingtotheFuture......................................................20AwardsandRecognition..................................................22CertifcationsandPartnerships......................................23Contents Monadnockisafamily-ownedand-operatedbusinesswithnearly200yearsofexperienceinpapermaking.ToputthatintoperspectiveourdoorsopenedshortlyaftertheWarof1812underthepresidencyofJamesMonroeandduringthereignofKingGeorgeIII.TodayMonadnockisastrongcompanyandisdedicatedtocorporatesocialresponsibility.Eachemployeeunderstandsourmutualcommitmenttoworkasacommunityandweremainnimblefocusedandprogressive.Webelievethatsociallyandenvironmentallyresponsibleinvestmentsintechnologyprocessesandproductswilldelivervaluetoourcustomersandourcommunity.Acrossalllevelsoftheorganizationwebelievetheresalottobesaidfordoingtherightthingsimplybecauseitstherightthingtodo.WhilepapermakingisconsolidatingworldwideMonadnockisexperiencinggrowthinnewmar-ketsandsurpassingmostofourenvironmentalimpactreductiongoals.HowdowereduceimpactswhileincreasingproductionWedoitbyworkingsmarterndingnewefcienciesinoldprocessesencouraginginnovationacrossourorganizationandcollaboratingwithoursupplychainpartners.Wewillcontinuetochallengeourselvestoreduceourenvironmentalimpactssubstitutematerialsreducedemandonnaturalresourcesandreusewhateverwecanwhileprovidingasafeandhealthyplacetoliveandworknotonlyforthisgenerationbutforfuturegenerations.Thisishowwedenesustainability.ThepurposeofourSustainabilityProgressReportistoinformandengageourcustomerssalesprospectssuppliersandemployeesinadeeperconversationabouthowwecanworktogetherinanincreasinglysustainableway.Thisisourstoryoftransparencycollaborationandinnovation.RichardG.VerneyChairmanandChiefExecutiveOfcer3WhoAreWeALetterfromRichardG.VerneyChairmanandChiefExecutiveOfcer 4 5Historyhastaughtusthatwhatgetsmeasuredgetsmanagedandusuallygetsbetter.Withthisinmindwehavesetgoalsinourpursuitofsustainability.Belowisanoverviewofthegoalsweareactivelyworkingtoachieve.Ourprogresstowardthesegoalsisgovernedbyourcommitmenttocontinuousimprovementformalizedunderourthird-partycertiedISO9001QualityManagementSystemandISO14001EnvironmentalManagementSystem.TheseISOstandardshelpMonadnockmanagemonitorandcontinuouslyimproveperformance.MonadnocksEnvironmentalImprovementGoalsReduceelectricityconsumptionby2annuallyReduceCOequivalentemissionsby2annuallyReducewaterusageby2annuallyReducesolidwastetoalandfllby5annuallyWhilethesegoalsmaynotappearaggressiveMonadnockhasbeenatthisforwellover40years.Thereisverylittlelow-hangingfruitremainingandweworkdiligentlytoexceedourimpact-reductiongoals.SettingGoalsandCommunicatingPerformance EnvironmentMonadnockislocatedalongthebanksofthepristineContoocookRiverinBenningtonNewHampshire.Sinceweliveworkandraiseourchildrenhereitisourcollectiveresponsibilitytopreservethisbeautifulplaceforgenerationstocome.TheRiverDesignatedbyNewHampshirestatelawforprotectionandpreservationtheContoocookRiverprovidescleanshablewatersandextensivewildlifehabitat.PowderMillPondisthesiteofthelastdamupstreamownedandoperat-edbyMonadnock.NewHampshireFishandGamestocksandoverseesthis435-acresportshingandwildliferestorationarea.Hundredsofboaterskayakersandanglersvisittheareaeachyear.Atleast117speciesofbirdsaredependentupontheContoocookRiver.Monadnockcloselymonitorsthedamsandpondlevelstoprotectthisrichandbeautifulhabitat.Ourrelationshipwiththeriverissymbi-oticWeharnesslow-impacthydropowerfromtheriverandinexchangeweactasstewardstopreserveandimprovethequalityofthewater.TheGreenTeamMonadnockhasestablishedaGreenTeammadeupofmembersfromacrossthecompany.TheteamreportsdirectlytoChairmanandCEORichardVerney.Ledbyourmanagerofenvironmentalservicestheteammembersidentifyopportunitiesforenvironmentalimpactreductionsandsharetheresultsacrossalllevelsofthecompanytopromotetransparencyandawareness.Wearefullyinvestedinworkingtocreateagreenhealthyandprosperousfuture.56 7 EnergyHydropowerMonadnockshydrofacilitieswhichincludethreedamsalongtheContoocookRivergenerateupto5ofourannualelectricityrequirement.Witha90-plusefciencyratehydropowerisoneofthemostefcientcleanrenewableenergysources.WithagrantprovidedbytheNewHampshirePublicUtilitiesCommissionwehavemadeseveralimprovementstoourhydroelectricfacilitieshelpingusproduceanadditional400000kWhofon-sitelow-impactcleanrenewablehydroelectricpowerannually. WindPowerRenewableEnergyCerticatesRECsThebalanceofourelectricityrequire-mentmustbepurchased.Weoffsetthepurchasedelectricitywiththird-partyGreen-ecertiedwindpowerRenewableEnergyCerticatesorRECs.Wehavechosentosupportthedevelopmentofcleanrenewableelectricitytoreduceourcountrysdependenceonfossilfuels.With100ofourelectricityderivedfromcleanrenewablesourcesMonadnockhasbecomealeaderingreenenergyusageinNewHampshireandbeyond.AsaresultMonadnockisrecognizedasanEPA100GreenPowerPartner.Monadnocksentireproductportfolioofgraphicartspackagingandtechnicalspe-cialtypapersismanufacturedwithGreen-ecertiedrenewableelectricityrepresentingasignicantincreaseinourcommitmenttorenewableelectricitythroughon-sitegenerationandsupportofnewrenewableenergysources.RECPurchasemgwHGoal100RenewableElectricityAccomplishment270increaseinourcommitmenttoGreen-ecertiedrenewableelectricityfrom30to100production92921211212Yearbaseline-5-2-1ReductioninelectricityusefrompreviousyearGoalReduceelectricityconsumptionby2annuallyAccomplishment7reductioninelectricityconsumptionoverthelastthreeyears 9Emissions Monadnockproducesupto5ofitselectricalrequirementwithon-sitelow-impacthydropoweranemis-sion-freecleangreenpowersource.ThebalanceofourelectricalrequirementisoffsetwithGreen-eRECs.Weoffsettheemissionsresultingfromouron-siteconsumptionofpurchasedelectricitywithVeriedEmissionReductionsVERsthatarecertiedbytheClimateActionReserveProtocol.Thermalenergyisusedtoproducethesteamthatpowersdryersonourpapermachines.Monadnockburnslow-sulfurfueloilandisexploringtheuseofbiofuelsandalternativetechnologiesforproducingthermalpower.Theenvironmentalimpactsofgreenhousegasemissionsarecleartheypollutetheairwebreatheproduceacidrainanddiminishozone.WecommittooffsettingemissionsfromourthermalenergygenerationbypurchasingVERscertiedbytheClimateActionReserveProtocol.AsaresultMonadnocksentireproductportfolioofgraphicartspackagingandtechnicalspecialtypapersismanufacturedcarbonneutral.Therearenetzeroemis-sionsrelatedtoMonadnocksuseofelectricityandthermalenergy.Wealsoreduceemissionsbymovingfreightthesmartway.MonadnockisanEPASmartWayTransportPartner.Wechoosetransportpartnersthatarecommittedtoemissionreductionswhenmovingourproducttoourcustomers.Wealsoprovideeducationalmaterialstodriversanddiscourageidlingatourfacilities.VERPurchaseGoalManufactureCarbonNeutralAccomplishment206increaseinourcommitmenttoemissionreductionsGoalReduceCOequivalentemissionsby2annuallyAccomplishmentReductioninCOequivalentemissionsby15overthelastthreeyearsEmissionsfromfueloilconsumption.CalculationsbasedonEPAeGRIDandwww.carbonfund.org.2921211212YearbaselineReductioninCO2emissionsfrompreviousyear--2-611 12WaterConsumption ConsumptionThepapermakingprocessrequireswaterapreciousnaturalresourcethatwemanageverycarefully.MonadnockworkswiththeNewHampshireStateGroundwaterCommissionandlocalofcialstoestablishsoundgroundwaterpoliciestoensurewatersupplyforourcommunitytodayandwellintothefuture.OurGreenTeamhasidentiedandimple-mentedefciencyprojectsthathelpedusachievea16reductioninwateruseoverthelastthreeyears2009to2012.InnovationsEquipmentupgradesandprocessimprovementsinpipingandcontrolsReusingwhitewaterinlieuoffreshwaterinthemanufacturingprocessWastewaterMonadnockoperatesitsownwastewaterpuricationfacility.WearerequiredbytheEnvironmentalProtectionAgencyandthestateofNewHampshiretoprovideahighqualityoftreatedefuent.Weexceedthestatesstringentstandardsforwaterquality.Allwastewaterfrommanufacturingisprocessedattheon-sitetreatmentfacili-ty.Waterdischargedfromthetreatmentfacilityiscleanerthantheriverwaterintowhichitiseventuallyreleased.13GoalReducewateruseby2annuallyAccomplishment16reductioninwateruseoverthelastthreeyearsReductioninwaterusefrompreviousyear2921211212Yearbaseline-1-1-6 14SolidWaste 15Monadnockhasafacility-wideprogramtodivertasmuchwastefromlandllsaspossible.Wecollectandsortpapermetalplasticandwoodforreuseandorrecycling.Wasteisamajorfocusforourcurrentimpact-reductiongoalsunderourISO14001EnvironmentalManagementSystem.In2012Monadnockexperiencedasigni-cantincreaseinproductioninaveryshortperiodoftime.Ourresourcesformanag-ingwasterelatedtothatproductionwerenotsufcientlyscaledtohandlethenewproductionlevels.InnovationsinSolidWasteReductionShortpaperberSPFthebyproductfromthewastewatertreatmentplantwasoncesenttolandlls.Todaythissafenutrient-richmaterialisbeneciallyreusedinthecommunityasasoilamendmentmanufacturedtopsoiltocaplandllscompostandanimalbedding.IncollaborationwithanotherpapermanufacturerMonadnockimplementedaprocessforcleaningthewatertreatmentholdingponds.Historicallythisoperationwasdoneevery10to12yearsandthelargevolumeofmaterialdredgedfromthepondswastruckedtoalandll.Todayasledcrawlsalongthebottomofthepondscontinuouslypullingoutsettlednutri-ent-richmaterialandaddingittotheshortpaperber.ThisinnovationhassavedMonadnock1.5millionindredgingcostsandreducedsolidwasteshippedtothelandllby3000000pounds.SPFisregulatedunderNewHampshiresSludgeQualityCerticationProgram.Asyoucanseeourlandllwasteincreasedin2012by16.Wecandobetterwithmoreoversightandbettersorting.GoalReducesolidwastetoalandfllby5annuallyAccomplishment6reductioninsolidwasteoverthelastthreeyearsReductioninsolidwastefrompreviousyear2921211212Yearbaseline--116 Weworkwiththeworldsleadingbrandstocraftpapersforcommercialprintingpackagingandtechnicalspecialtyapplica-tions.Monadnockiscommittedtoresponsibleenvironmentalstewardshipdigniedlaborpracticesandinvestmentinourlocalcommunity.Monadnockmaintainsthatber-basedalternativestoplasticcanbecost-efcientenvironmentallysensitiveandbeautiful.ProudlyallofMonadnocksproductsaremanufacturedcarbonneutralusing100renewableelectricityunderathird-partycertiedISO14001EnvironmentalManagementSystem.SourcingRawMaterialsAllrawmaterialsarereviewedandapprovedbyMonadnocksenvironmentalmanagerforenvironmentalimpact.AllberpurchasedbyMonadnockisresponsiblysourcedfromthird-partycertiedsuppliers.From2009to2012MonadnockincreasedtheuseofFSCcertiedpost-consumerwasteberby21.ProductsandProcessMakingtheGrades16 17 18OurPeopleOurCommunity 19CommunityImpactIfourbusinessdoeswellwebelievewehaveanobligationtodogood.HereisaselectionofjustsomeoftheorganizationswehavesupportedinrecentyearsCivicorganizationsincludingLionsClubandRotaryClubDrugandalcoholabusepreventionprogramsLocalschoolsmuseumsandhistoricalsocietiesLocalfamilyservicecommunityresourceandrehabilitativeprogramsLocalartsfestivalsandconcertsMonadnockhasalwaysbelievedinbeingagoodcitizennotjustinthecorporatearenabuttothepeoplewithwhomandthecommunitiesinwhichweliveandwork.Whileeconomicresourcesmakeagreatdealofdifferencetocharitableorga-nizationsouractionsalsocanhaveasig-nicantandsometimeslonger-lastingimpact.Whenourlocalschoolsparksandrecreationdepartmentstowncouncilsandcitizenscanbenetfromouractionswehaveanopportunity.Whenwetakeadvantageofthoseopportunitiesbyndingwaystoreuseorrepurposematerialsandimprovehonorandeducateourcommunityoursuccessismutuallybenecial.ForMonadnockresponsibilityisculturalnotapremiumliability.Itsnotaphiloso-phyweadheretosowecanslapalabeloracerticationonaproductandleaveitatthat.Weareaunionizedfacilityandouremployeesareournestasset.ItisnotuncommontoseethreegenerationsfromasinglefamilyworkingatMonadnock.Weprovidelong-termstablewell-payingjobpositionstoalmost200ofourlocalresidents.MonadnocksSafetyManagerexecutesfacility-wideprogramstopreventorcontrolemployeeexposuretoworkplacehazards.Employeesareengagedtoidentifypotentialemergencysituationsandaretrainedtoexecuteemergencyresponseprocedures.MonadnockprovidesoccupationalhealthandsafetytrainingthatincludesCPRAEDandreextinguisheruseskillsthathavevaluefarbeyondthewallsofourfacilities.Weholdannualwellnessfairstoeducateandfosterahealthyworkforce.MonadnocksSustainabilityFairattractsnumerousbusinessesdoingwellbydoinggood.Employeesandthecommunityatlargearewelcometolearnmoreaboutsustainablesolutionsrangingfromcom-postingalternativeenergyride-sharingandthemanyproductsthataremadelocally. 2Sustainabilityisinournatureitspermanent.Asyoucanseefromourprogressreportwestillhaveworktodoandwewillupdateyouperiodicallyonourperformanceasnewinformationbecomesavailable.Wehavelearnedsomuchfromourjourney.Nowwearemorethanpapermakerssharingourknowledgeandexperienceswithourpartnersandcustomersisjustasimportant.DoyouhavequestionsaboutForestSteward-shipCouncilcerticationestablishinganISO14001EnvironmentalManagementSystemoranyoftheotherinitiativeswehavelaidoutforyouhereOrifyouhavetipsyouwouldliketoshareaboutyoursustainabilityjourneywedlovetohearaboutthem.VisitourTwitterpagetwitter.commonadnockpaperandstarttheconversation.LookingtotheFutureWheredowegofromhere 21Werelookingforthatnextgreatsustainableinnovationwhereyouandyourcustomershaveaneedandwithoutcompromiseinperformanceaestheticseconomicsortheenvironmentwecollaboratewithyoutodevelopasolution.Giveusacallwereuptothechallenge. AwardsandRecognitionNewHampshireBusinessesforSocialResponsibilityCornerstoneHallofFameEstablishedin2013theCornerstoneAwardHallofFamerecognizespriorwinnerswhore-applyandnishasatop-threenalist.InducteesarehonoredintheHallofFameforthreeyearsatwhichpointtheymayapplytorenewtheirHallofFamestatus.NewHampshireGovernorsAwardforPollutionPreventionEstablishedin1994theGovernorsAwardforPollutionPreventionrecognizesNewHampshirebusinessesandorganizationsthathavesuccess-fullyreducedoreliminatedwastesatthesource.PastAwardwinnersincludeavarietyofNHmanufacturersamunicipalityahospitalevenapostalserviceoperation.EnvironmentalProtectionAgencyEnvironmentalMeritAwardTheEnvironmentalMeritAwardsrecognizeindividualsandorganizationswhoseworkhasprotectedorimprovedtheenvironmentindistinctiveways.EnvironmentalProtectionAgency100GreenPowerLeaderGreenPowerLeadershipAwardsservetorecognizetheleadingactionsoforganizationsprogramssuppliersandindividualsthatsignicantlyadvancethedevelopmentofgreenpowersources.22 ForestStewardshipCouncilFSCandtheRainforestAllianceAllMonadnockprintingandpackagingpapersareForestStewardshipCouncilFSCcertiedFSCC018866www.fsc.org.TheFSClabelonMonadnockproductsensuresresponsibleuseofforestresourcesascertiedbytheRainforestAlliance.TheRainforestAllianceauditsMonadnocktoensurethatthecompanycomplieswithFSCstandards.TheRainforestAllianceistheinternationalgoldstandardforcredibilityinauditingenvironmentallyandsociallyresponsibleforestry.ByparticipatinginthisprogramMo-nadnockmeetsrigorousstandardsthatconservebiodiversityandprovidesustainablelivelihoods.EPASmartWayMonadnockisanEPASmartWayTransportPartner.Wechoosetransportpartnersthatarecommittedtoemissionreductionswhenmovingourproducttoourcustomers.Wealsoprovideeducationalmaterialstodriversanddiscourageidlingatourfacilities.ISO140012004andISO90012008Allpapersaremanufacturedunderthestrictrequirementsofathird-partyISO140012004certiedEnvironmentalManagementSystem.Allpapersaremanufacturedunderthestrictrequirementsofathird-partyISO90012008certiedQualityManagementSystem.Green-eMonadnocksupportsthedevelopmentofcleansourcesofrenewableelectricityandcleanairbypurchasingGreen-ecertiedwindpowerRenewableEnergyCerticatesRECs.Monadnockutilizeson-sitelow-impacthydroelectricpowerandGreen-ecertiedrenewableelectricity.www.green-e.org.CertifcationsandPartnerships23 AbouttheArtistKimWebsterCunninghamisaprintmakerandsculptorwholivesinHancockNewHampshire.ThelandscapeandanimalsoftheMonadnockRegionherhomesince1979areaconstantsourceofinspiration.MonadnockmNADnokprominentNHmountainhighpointonewhostandsaloneAlgonquinPrintedwithstandard4cprocessonespotcolorandoverallsatinaqueouscoating.CoverEnvi100SuperVellum80lb.Cover.InteriorAstrolite10080lb.Text.2013MonadnockPaperMillsInc.MonadnockPaperMillsInc.117AntrimRoadBenningtonNewHampshire03442-4205603.588.3311CustomerService800.221.2159SampleRoom877.877.2098www.mpm.com