Environmental Report - saica.com · Cover: Winning photograph in Saica Group’s 1st Environmental...

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Environmental Report 2015-2016 The road to 2020

Transcript of Environmental Report - saica.com · Cover: Winning photograph in Saica Group’s 1st Environmental...

Environmental Report2015-2016

The road to 2020

Cover: Winning photograph in Saica Group’s 1st Environmental Photography Contest.

Sergio Moreno, Supply Chain Transport Services CoordinatorSaica Paper Corporate, Spain.

Environmental Report 2015-2016

Editor-in-chief:Natalia Alcubierre, Environment Group Director

Coordination:Alberto Tainta, Communication Saica Group OfficerSaul De Llobet, Environmental Group Technician

Saica GroupSan Juan de la Peña, 14450015 Zaragoza (Spain)T+34 976 103 100T+34 976 103 110www.saica.com

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Environmental Report 2015-2016

First runner-up:Andrés Lopez, ElectricalMaintenance TechnicianSaica Paper El Burgo de Ebro, Spain.

Second runner-up:Vitor Silveira, IT Support & OperationsSaica Pack, Portugal.

Third runner-up:Mark Hall, Wet End AssistantSaica Paper Partington, UK.

Runners up in Saica Group’s 1st Environmental Photography Contest

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01P6 Interview with the Chairman

02P8 Saica at a glance

P8 KPIs for 2016

03P10 Driving the circular economy

P11 Saica’s circular business strategy P11 Our commitment to promoting the circular economy P14 Transparency in the way we work P16 Our work with other organisations

04P18 Our value proposition

P18 Saica Natur P20 Saica Paper P22 Saica Pack P25 Saica Flex P26 Initiatives, awards and recognitions in the 2015-2016 period

Contents

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Saica Environmental Report 2015-2016

05P28 Environmental aspects

P29 Raw materials P35 Energy P41 Water P47 Greenhouse gas emissions P52 Waste

06P58 Certificates

07P62 Appendices P62 Certification tables P64 Environmental aspects tablesP64 Glossary

“Many natural resources are finite. It is vital that we find an environmentally and economically sustainable way to use them.”

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What are the foundations of Saica’s business strategy?In its 70 years in business, Saica has always operated sustainably, striving for innovation in the design and manufacture of packaging, the production of high performance paper, end-to-end management and waste-to-value solutions.

Saica works with its clients to help them achieve their goals and has a strong relationship with its surroundings, including both local communities and the environment. We take a pragmatic approach to implementing any improvements that are positive for our clients and in turn for the group itself, always with the minimum possible environmental impact at all times.

How does Saica create value for society?Saica is one of the foremost companies in the field of paper manufacturing, spearheading the efficient use of resources and working with an integrated, circular economy-based business philosophy.

Saica Natur seeks solutions for the management of our clients’ waste, to help them work towards the European Commission’s Zero Waste target.

Saica Paper processes almost three million tonnes of paper for recycling every year, transforming waste into the raw material required to manufacture recycled paper. It also converts foreign or unwanted materials from the paper pulp preparation process to value through energy recovery plants, generating power and avoiding the need to send these waste products to landfill.

Saica Pack designs innovative solutions in the field of cardboard packaging to respond to emerging needs such as e-commerce and automation, as well as optimising wrapping and packaging lines to generate resource savings and enhanced productivity and service.

As part of our commitment to innovation, we recently embarked upon a new journey in our contribution to the packaging sector through our Natur Cycle Plus plant. Thanks to our innovative low density polyethylene recycling technology, we can provide pellets made from post-consumer recycled materials to film manufacturers. Using these pellets, they create spools for the manufacturing of flexible packaging with a reduced environmental footprint.

Finally, our latest addition, Saica Flex, will allow us to offer a comprehensive range of value-added packaging solutions. We now combine the analysis and design of corrugated cardboard packaging with flexible packaging, allowing us to offer our clients the best possible solutions.

What advantages does the circular economy offer Saica?The circular economy is a hot topic at the moment and the European Union is working hard to promote this model. The principles underlying the circular economy have been an inherent part of Saica’s identity right from the outset.

Building our business based on the principles of the circular economy has made us more competitive, optimising circular recycling and reuse of increasingly scarce resources and leading us to harness new business opportunities.

We manufacture paper, converting waste into a resource. We generate energy efficiently through our cogeneration plants and biogas engines, minimising our CO2 emissions. We optimise the water consumption of each and every one of our paper machines and we recycle or recover energy from the waste produced in the paper manufacturing process. Many natural resources are finite, so it is vital that we find an environmentally and economically sustainable way to use them.

How do Saica’s values – “We care”, “We value”, “We challenge” – underpin the sustainability of its operations?Sustainability at Saica begins with our values. We protect the future through the importance we place on the development of talent and of the communities in which we operate. We are utterly committed to using the best available technologies and to reducing, reusing and recycling raw materials and waste within a circular economy.

We look at sustainability as a challenge to be worked towards in partnership with our stakeholders, seeking solutions right from the inception of a new product or manufacturing process with a view to continuously driving down its impact on the environment and ensuring that the future of generations to come is never jeopardised. At Saica, the key to sustainability is to work with people and teams that share these values.

Interview with the Chairman

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In 2015, at the COP21 climate change conference in Paris, the international community agreed to limit global temperature increase to between 1.5 and 2ºC. How important is that agreement for the environment and the economy?The Paris agreement was one of the biggest ever landmarks in the fight against climate change. The document, which is legally binding, is a historical milestone that will drive the transition of the global economy towards a low-carbon model.

Capping the temperature increase at 2ºC – beyond which experts say the consequences of the associated impact could be catastrophic – is a major achievement in the united global fight for a sustainable future. The agreement also provides for additional efforts to limit the increase to 1.5ºC, with a view to minimising the losses and damages stemming from climate change and securing the involvement of even more communities.

What implications does this agreement have for the paper sector and for Saica specifically?The business sector as a whole and the paper sector in particular have a duty to get on board with this commitment and participate actively in making it a reality. Some of the ways we can do that are by promoting renewable energies over fossil fuels, developing circular economy models that reincorporate waste into the manufacturing process as raw materials, and optimising manufacturing processes for wrapping and packaging to reduce the associated environmental impact.

Saica is committed to cutting its use of fossil fuels, promoting a circular economy by recovering energy from non-recyclable waste and thereby sourcing new ways to convert waste to valuable resources.

The new Venizel biomass energy recovery plant, set to begin operations in 2018, will add value to our manufacturing process by replacing fossil fuels with biomass waste originating from wood conversion industries and unwanted materials from the paper pulp production process from the plant itself, as well as the biogas generated at our water treatment plant. Replacing fossil fuels will allow us to slash greenhouse gas emissions by over 45,000 tonnes per year.

The years 2015 and 2016 were extremely important for Saica. What were the main achievements?Absolutely. Over these two years Saica helped a range of clients find solutions to improve their business management and reduce their environmental footprint.

Our work with Alcampo to improve the segregation of organic waste helped our client take a major step towards obtaining its Zero Waste goal. In addition, our design of alternative systems to plastic bags for home deliveries, such as the Retailer Fruit Case, helped give Carrefour a competitive edge in the field of home delivery of fresh products.

Another major achievement was the agreement reached with the European Investment Bank (EIB) for a project at our plant in El Burgo de Ebro. This initiative will allow Saica to maintain its

position at the forefront of the paper sector by developing new qualities of paper originating from paper for recycling, with comparable characteristics to virgin fibres. This revolution is set to become a reality in the next few months.

One final highlight: Saica Pack UK picked up the accolade for Most Sustainable Supplier at the prestigious Nestlé awards, thanks to its innovative approach to packaging production.

What can we expect from Saica in 2017?At Saica, we use a continuous improvement model and, with a view to achieving Zero Waste, we will continue to work on fully harnessing our waste recycling and recovering, increasing our use of renewable energy and rolling out new technology solutions to ensure a more efficient use of all resources.

Saica will continue to provide environmental services to help our clients manage their waste, collecting the waste generated, transforming it into secondary raw materials and closing the loop with the design and manufacture of innovative paper and packaging.

Ramón AlejandroChairman, Saica

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Saica at a glance

Production

Environmental performance

112 plants:Natur: 49 plantsPack: 47 plants

Paper: 4 plantsFlex: 12 plants

4 business areas

Consolidated sales of €2.563 bn in 2016

9,303 employees

Annual growth rate of 12% in 1997-2016 period

Operations in 9 countries

2,055 GWh of energy sold by Saica Paper

2,739,288 tonnes of waste recovered by Saica Natur

2.3% production increaseat Saica Paper

2,534,650 tonnes of paper sold by Saica Paper

3.5% rise in production at Saica Pack

2,475,000 million m2 sold by Saica Pack

15,000t LDPE recycled by Saica Natur

8,400 GWhof energy used1

Saica begins manufacturing paper

87% recovery rate at Saica Paper2

16,714,183 m3

water used1

98% recovery rate at Saica Pack2

1,573,408 t CO2 in emissions (Scope 1 + 2)

The company Close to our clients

A brief history of Saica

1943

Use of cogeneration integrated for energy production

1987

Energy recovery plant set up in El Burgo de Ebro

2011

Saica begins plastic recycling through Natur Cycle Plus

2015

Business diversi�cation: creation of Saica Natur and Saica Pack

1975

Saica Paper begins manufacturing low grammage paper

2000

Saica Paper UK launch

2012

Saica Flex begins manufacturing �exible packaging

2015

2014

Saica Natur

Saica Paper

Saica Pack

Saica Flex

49plants

4plants

47plants

12plants

Italy3 plants

France14 plants

UK & Ireland30 plants

The Netherlands2 plants

Luxembourg1 plant

Turkey1 plant

Spain and Portugal61 plants

Our activity by numbers

Workforce growth Group sales

Saica Natur

• Team: 1,589 • Revenues: €209 M• Sales: 2,739,288 t• Spain, Portugal, France and the

UK

Saica Paper

• Team: 872 • Revenues: €787 M• Sales: 2,534,650 t 2,055 GWh• Spain, France and the UK

Saica Pack

• Team: 5,684 • Revenues: €1,283 M• Sales: 2,475 Mm2 • Spain, Portugal, France, Italy,

the UK, Ireland and Turkey

Saica Flex

• Team: 1,158 • Sales: €284 M• Spain, Italy, Luxembourg,

the UK, Ireland and the Netherlands

2016

+6%€2.563 bn

Group sales in

2016

Saica Flex€284 M

Saica Pack€1,283 M Saica Natur

€209 M

Saica Paper€787 M

8,755 9,303

KPIs for 2016

1 The figures for the Flex area are not included in the Environmental Performance section2 Recovery rates based on volume of waste generated by the division

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Saica Environmental Report 2015-2016

Production

Environmental performance

112 plants:Natur: 49 plantsPack: 47 plants

Paper: 4 plantsFlex: 12 plants

4 business areas

Consolidated sales of €2.563 bn in 2016

9,303 employees

Annual growth rate of 12% in 1997-2016 period

Operations in 9 countries

2,055 GWh of energy sold by Saica Paper

2,739,288 tonnes of waste recovered by Saica Natur

2.3% production increaseat Saica Paper

2,534,650 tonnes of paper sold by Saica Paper

3.5% rise in production at Saica Pack

2,475,000 million m2 sold by Saica Pack

15,000t LDPE recycled by Saica Natur

8,400 GWhof energy used1

Saica begins manufacturing paper

87% recovery rate at Saica Paper2

16,714,183 m3

water used1

98% recovery rate at Saica Pack2

1,573,408 t CO2 in emissions (Scope 1 + 2)

The company Close to our clients

A brief history of Saica

1943

Use of cogeneration integrated for energy production

1987

Energy recovery plant set up in El Burgo de Ebro

2011

Saica begins plastic recycling through Natur Cycle Plus

2015

Business diversi�cation: creation of Saica Natur and Saica Pack

1975

Saica Paper begins manufacturing low grammage paper

2000

Saica Paper UK launch

2012

Saica Flex begins manufacturing �exible packaging

2015

2014

Saica Natur

Saica Paper

Saica Pack

Saica Flex

49plants

4plants

47plants

12plants

Italy3 plants

France14 plants

UK & Ireland30 plants

The Netherlands2 plants

Luxembourg1 plant

Turkey1 plant

Spain and Portugal61 plants

Our activity by numbers

Workforce growth Group sales

Saica Natur

• Team: 1,589 • Revenues: €209 M• Sales: 2,739,288 t• Spain, Portugal, France and the

UK

Saica Paper

• Team: 872 • Revenues: €787 M• Sales: 2,534,650 t 2,055 GWh• Spain, France and the UK

Saica Pack

• Team: 5,684 • Revenues: €1,283 M• Sales: 2,475 Mm2 • Spain, Portugal, France, Italy,

the UK, Ireland and Turkey

Saica Flex

• Team: 1,158 • Sales: €284 M• Spain, Italy, Luxembourg,

the UK, Ireland and the Netherlands

2016

+6%€2.563 bn

Group sales in

2016

Saica Flex€284 M

Saica Pack€1,283 M Saica Natur

€209 M

Saica Paper€787 M

8,755 9,303

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Europe 2020 is the EU’s current 10-year growth strategy. The strategy seeks to support a social market economy that promotes knowledge and innovation, boosting both employment levels and social and territorial cohesion, as well as ensuring a more efficient use of resources.

At Saica, we want to ensure our production model is closely aligned with the principles underlying the Europe 2020 initiative: smart, sustainable and inclusive.

The circular economy plays a crucial role in this model. We seek to use resources as sustainably as possible and look at waste products as secondary raw materials that can be reintegrated into the production cycle.

This circular approach requires, among other factors, the cooperation and involvement of the various players in the production cycle to provide products that are more easily recycled, improve waste collection and transport, underpin the market for secondary raw materials and even innovate on processes by working with other sectors and clients.

Since we started out back in 1943, at Saica we have always sought to apply these principles, minimising the impact of our activity on our surroundings and seeking new ways to add value for our stakeholders, and for our clients in particular, by offering tailor-made, sustainable solutions.

Our vertical integration model, which was born of our desire to maximise resource performance, has allowed us to expand our business model and place the circular economy at the core of our long-term strategy, diversifying our services and opening up new markets.

Driving the circular economy

We want our production model to be smart, sustainable and inclusive, and we want the circular economy to play a key role

Consumers

Natur Cycle Plusrecycles

Pelletproduction

Saica Naturrecovers

Filmproduction

(clients)

Saica Naturrecovers

Saica Packproduces

Saica Paperrecycles

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Saica Environmental Report 2015-2016

Saica’s circular business strategySaica applies a circular business strategy across all of its divisions.

At Saica Natur, we strive for Zero Waste, always seeking ways to recover paper, cardboard, plastic and organic waste, among others, and designing the most effective solutions possible for their reuse and conversion to value.

At our Saica Paper mills, we use the paper and cardboard waste collected by Saica Natur as a raw material for the manufacture of our recycled papers.

In turn, at Saica Pack, we transform the recycled paper manufactured by Saica Paper into the corrugated cardboard packaging solutions our clients need.

Beyond paper, Saica has expanded its circular business strategy to other materials used in the manufacturing of packaging. At our Natur Cycle Plus facilities, low-density polyethylene (LDPE) waste recovered by Saica Natur is converted into recycled pellets that can replace virgin material.

As part of our diversification strategy, we acquired the Spanish group Polibol-Bolfor in 2015 to create Saica Flex. This division manufactures and develops flexible packaging for the food sector, among others, and allows us to offer an integrated, value-added range of services to our clients.

Within the framework of this strategy, in 2016 Saica acquired three groups that specialise in flexible packaging, allowing us to expand the range of packaging solutions we offer our clients and position ourselves in new markets. The first acquisition was Italy’s Centroplast, which is based in both Meldola (Italy) and Luxembourg. This was followed by Ireland’s Americk Packaging, which has a total of six plants throughout the UK and Ireland, and finally, the two plants in the Netherlands.

The acquisitions undertaken by Saica in 2016 represent a major milestone in underpinning our future growth in the Flex business area and the expansion of our circular economy model to other sectors

Consumers

Natur Cycle Plusrecycles

Pelletproduction

Saica Naturrecovers

Filmproduction

(clients)

Saica Naturrecovers

Saica Packproduces

Saica Paperrecycles

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To ensure the effective integration of the circular economy throughout the value chain, at Saica we work with our clients and suppliers to help them contribute to sustainable development and the circular model. This allows us to achieve full alignment between our clients’ needs and Saica’s circular economy services, providing sustainable solutions for the manufacturing of paper and recycled paper and cardboard packaging, waste recycling to generate secondary raw materials, and waste-to-value services.

Since we began operating over 70 years ago, we have always been deeply committed to paper recycling, given our position as a paper manufacturing leader, and have always strived to minimise the use of natural resources, such as water, energy and raw materials, as well as our impact on our surroundings. Today, we process almost 3 million tonnes of paper a year, transforming a waste product into our core raw material.

When there is no viable recycling option available, we recover energy from waste products, generating steam and electricity, which allows us to pare back our own energy needs and feed around 260.4 GWh per year into the grid. We were pioneers in this cogeneration strategy, and we are subsequently at the forefront of energy recovery from waste products, underscoring our commitment to long-term, sustainable development.

Driving the circular economy

Paperplant

Electricitygrid

Non-hazardouswaste

Energy recoveryplant

Electricityand/or steam

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Saica Environmental Report 2015-2016

At Saica, as well as contributing to the circular economy through our business activity, we also work hard on other initiatives, as outlined in the sections below:

Improving our performance in sustainability and setting future targets to reduce our impact on our core environmental areas.

Enhancing transparency.

Working with universities and other organisations on projects to promote sustainability in the sector and in the design of new packaging solutions.

Since we started out, Saica has always been committed to recycling paper. Since then, we have been at the forefront of sustainability in our processes, spearheading technologies such as cogeneration and waste-to-value

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Our commitments

2020 goals

Key milestones 2015-2016

Products and raw materials

• Calculate the environmental impact of our products using LCA.

• Natur Cycle Plus: Maintain EuCertPlast certification.

• Saica Pack obtained FSC Recycled certificate.

• LDPE waste recovered to produce recycled pellets.

Further information on raw materials on page 29

Energy

• Pare back the Group’s consumption of fossil fuels and increase renewable energy use.

• Increase renewable energy use by 25% against 2015 levels.

• Cut the use of natural gas by 3% against 2015 levels.

• Fuel oil no longer used at our facilities.

• Increased use of biofuels by 13% against 2014 usage.

Further information on energy on page 35

Water

• Reduce the pollutant load discharged at Saica Paper.

• Reduce tonnes of N and P discharged by 20% against 2015 levels.3

• Reduce tonnes of TSS discharged by 10% against 2015 levels.3

• Participated in CDP Water with a Scoring of B in 2015.

Further information on water on page 41

Greenhouse gas emissions

• Reduce Group-wide greenhouse gas emissions.

• Cut absolute CO2 emissions by 3% against 2015 levels.3

• Cut NOx emissions at Saica Paper by 50% against 2015 levels.3

• Calculation of Scope 3 emissions at Saica Paper.

• Tool to calculate Scope 3 emissions for Saica Natur clients.

• Reduced group-wide CO2 emissions (Scope 1 + 2) by 0.9% against 2014 levels.

Further information on greenhouse gas emissions on page 47

Waste

• Achieve Zero Waste.

• Achieve Zero Waste at all Group plants.

• Increased recovery rate by 1% to 89.7% at Saica Paper and Saica Pack in 2016

Further information on waste on page 53

Our commitment to promoting the circular economyTo allow us to implement our circular business strategy, we have outlined a series of future commitments based on the five core environmental aspects that are impacted by our activity: products and raw materials, energy, water, greenhouse gas emissions and waste.

These commitments are detailed in the table below, as are the goals we have set for 2020 to ensure we meet them. It also features the key milestones achieved in the management of each of the five aspects over the last two years, to show the progress we have made over the period:

Driving the circular economy

3 - N = Nitrogen, P = Phosphorus, TSS = Total Suspended Solids

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What does the initiative involve? Information reported

SEDEX. Sedex, the Supplier Ethical Data Exchange, is a nonprofit organisation that shares ethical, responsible business practices in global supply chains. It thereby helps to mitigate risk, protect companies’ reputations and improve supply chain practices. Its system requires the company to complete an extensive self-assessment questionnaire.

ECOVADIS. EcoVadis provides supplier sustainability ratings to ensure that quality and integrity levels are upheld across the global supply chain. Through its ratings, EcoVadis supports companies as they work towards becoming responsible players with enhanced credibility, confidentiality and data management.

ECODESK. Ecodesk helps companies create a responsible business by managing sustainability data, identifying risks and ensuring regulatory compliance. Ecodesk allows for the calculation of the supply chain carbon footprint, analysing environmental risks and the use of prohibited substances, as well as providing for greater control of corporate governance by integrating social performance metrics.

CDP. The Carbon Disclosure Project (CDP) requests information on the management of the risks and opportunities involved in climate change and water. The increasing commitment by companies to reporting this information is leading major multinationals and their suppliers to use CDP to ensure sustainable supply chain management through the CDP Supply Chain Programme.

Saica Pack is registered on the Sedex platform to allow consumers, clients and suppliers to check how we implement and comply with sustainability standards in fields such as workplace health and safety, environment and business ethics.

Since 2013, Saica has been assessed by EcoVadis, gauging its practices in the field of business responsibility with a view to aligning our sustainability criteria with those of our clients.

Saica’s participation in the Ecodesk platform evidences our commitment to transparency with clients regarding our progress and outcomes in the field of sustainability. Saica shares its data with clients.

Risk management is a crucial component of our activity. We monitor all variables with a potential impact on our business, and we send the data to our stakeholders on an annual basis by participating in the CDP Climate Change Supply Chain and Water Supply Chain initiative.

Transparency in the way we workIn response to our growth as a company and external demand for data on sustainability, Saica has made a commitment to increase transparency around our performance in promoting a circular economy. The company currently voluntarily communicates key information on sustainability through the Sedex, Ecovadis, Ecodesk and CDP platforms and initiatives, as well as publishing this Environmental Report.

The company voluntarily communicates key information on sustainability through the Sedex, Ecovadis, Ecodesk and CDP platforms and initiatives

Saica Environmental Report 2015-2016

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Driving the circular economy

Our work with other organisations

Since 2013, Saica and the Universidad de Zaragoza have been running the “Saica Sustainable Solutions Professorship” to promote and incentivise research projects in the field of energy sustainability and its application in the industrial sector.

Since 2015, this Professorship has presented an annual award recognising exceptional students who show strong motivation to work in the field of energy sustainability and its application in the industrial sector. The winners receive a financial award and a paid internship to allow them to undertake their final Master’s assignment on a technical project at Saica’s facilities.

In 2015, Saica also worked with the ELISAVA Barcelona School of Design offering students of the Design and Engineering in Industrial Design degrees the opportunity to propose new designs for clothing and footwear packaging aimed at e-commerce clients. The students rose to the challenge, designing fresh, creative, innovative solutions.

In addition to the ELISAVA initiative, Saica also works on similar projects with the Faculty of Fine Arts at Madrid’s Universidad Complutense in Spain and Sheffield Hallam University in the UK. These initiatives allow students to carry out a project which is specifically tailored to our industry, learning to analyse the market’s needs and tailor their solutions to client demands, whilst seeking to curb the environmental impact right from the outset of the product design phase.

“The emerging E-commerce market will be a key driver of growth in the corrugated cardboard packaging sector, so it is important that we design new products to respond to our clients’ needs, whilst driving down the environmental impact across the entire value chain.” Miguel Angel MartínezCommercial & Marketing Saica Pack Director

Saica Environmental Report 2015-2016

Photograph awarded third prize in theSaica Group’s 1st Environmental Photography Contest.Karen Gilbert, QSE Manager Saica Paper Partington, UK.

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Saica Natur strives to minimise our clients’ environmental footprint, providing tailored waste management solutions to optimise cots and help achieve Zero Waste, as well as preventing the need to send waste

to landfill. We add value at every stage in the process and uphold our commitments of transparency, quality and safety.

Our value proposition

Saica Natur

Adding value for our clients

Reduce environmental footprint

Optimisation Otheradded value

Minimise waste sent to land�ll Financial return Safety

• Carbon footprint• Innovation• Alternative sustainable solutions

• Maximise revenues• Minimise costs

• Information �ows• Transparency• Convenience

zerowaste

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Innovation is the driving force behind everything we do. We embrace the challenges our clients set for us and apply the principles of the circular economy to optimise their waste management systems, reduce their environmental footprint, streamline their costs and provide value-added solutions, specifically tailored to their needs.

In 2015, we opened our Natur Cycle Plus plant, where we recycle LDPE to manufacture recycled pellets. Thanks to the outstanding quality of these pellets, our clients have reached the highest ever levels of virgin material substitution in the sector to date. This allows them to expand the environmental benefits of using recycled materials for purposes that were previously limited to virgin materials, helping to slash their carbon footprint and the environmental impact of flexible packaging.

Thanks to the excellent properties of the material manufactured, our clients have managed to use our recycled pellets for purposes for which they previously only used virgin materials, such as heavy mass acoustic insulation layers, which are used in the automotive sector to improve noise levels in vehicle interiors.

“We opened Natur Cycle Plus in March 2015 to allow us to make headway in the circular economy model that defines our business philosophy, maximising the performance of natural resources, cutting environmental impact while providing providing innovative, end-to-end solutions.

Through effective vertical integration with Saica Natur, we started collecting and recovering plastic waste internally, gaining access to the market for recycled plastic pellets and converting our clients’ low density polyethylene (LDPE) to value.” Luis PellejerNatur Cycle Plus Manager

Saica Environmental Report 2015-2016

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Saica Paper provides an extensive range of different quality recycled papers for corrugated cardboard, offering a reliable service that can handle large order volumes with an output of over 2.5 million tonnes of paper a year.

In a constantly-changing market where e-commerce plays an increasingly significant role, our clients have new needs and expectations that require us to keep innovating and improving supply models to offer an optimal, premium quality service. We are always developing new ways of working and implementing innovative information systems in the supply chain.

Our value proposition

Saica Paper

Responding to our clients’ needs

Brown liner

• Saikraft SK• Duo Saica DS• Interliner IL• Duoplus Saica DPS

Fluting

• Hidroplus Saica HPS• Hidro Saica• Saica Medium SM

White liner

• Saikraft blanco SKB• Test blanco Saica TBS• Blanco liner Saica BLS

Services

• Cardboard composition optimisation

• Audit and advisory• Technical support

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Saica Paper also signed an agreement in 2016 with the European Investment Bank (EIB) to undertake an R&D and innovation project at our plant in El Burgo de Ebro, allowing Saica to cement its position as a paper sector leader.

The project involves remodelling two production lines, furthering our progress towards a circular economy model and developing a new paper variety with comparable mechanical and aesthetic characteristics to virgin fibre papers. The project will also boost local employment by creating almost 120 new permanent jobs, both direct and indirect, and up to five times as many temporary positions during the construction and commissioning phases.

To respond to new requirements and supply models, we have created specialist offices in each market where every client has a specific liaison contact to meet all their needs:

Cardboard composition optimisation service

Audit and advisory services

Technical support service

To create the most efficient box possible, you need the most appropriate papers. We offer clients our vast experience in the recycled paper for corrugated cardboard sector, as well as the benefits of our R&D lab, to optimise the composition and design of cardboard. This allows us to generate financial savings for clients, cut losses in their production processes and improve the performance of the end product.

The technical advisory centre designs plans for optimal paper use by our clients, harnessing gains in efficiency and machine runnability. Our experts calculate the ideal machinery conditions to ensure the optimal use of papers in the client’s production processes.

Always ready to lend a hand, our technical support service is available to resolve internal issues with the use of any of our products, as well as external issues. Saica Group’s R&D&I department provides our clients with access to our team of experts in designing solutions for the paper and cardboard sectors, as well as access to our cutting-edge technology and our test and measurement equipment.

Saica Environmental Report 2015-2016

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At Saica Pack, we take a client-centric approach, fostering long-term partnerships and relationships. By understanding our clients’ short and medium term goals, we can work towards aligning our interests and offering them the best possible outcomes.

To do that, we rely on sector-leading technology and treatments, as well as a team of highly qualified professionals who design end-to-end solutions to add value to our clients’ packaging.

At Saica Pack, we are always striving to improve package functionality, protecting the product from a range of adverse environmental conditions. We develop treatments to tackle moisture and contain grease in the food sector, flame-retardant solutions to protect files and trade fair exhibitions, anti-static solutions for products exposed to static electricity and anti-abrasive solutions for fragile products that could be damaged in transportation.

Our value proposition

Saica Pack

Innovating to respond to sector challenges:

We are always innovating to create recycled cardboard packaging with the best properties on the market, by focusing on efficiency, effectiveness and sustainability.

This constant innovation led us to create P-Flute structure packaging, achieving 32% thinner corrugated cardboard than the previous B-Flute structure with no loss of compression strength. This new structure has allowed us to optimise

our packaging systems and raise capacity per pallet by 30%. This in turn has given rise to increased capacity per vehicle and a reduction in the storage space required, as well as cutting raw material use, which is a major environmental advantage. The new configuration also increases the printable surface, which adds value for our clients.

We boast sector-leading technology and treatments, as well as a team of highly qualified professionals

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Our goal is to be the most creative, professional, productive technical team in our field, upholding the most exacting standards of excellence at all times. Saica Pack’s National Development Centres were created to help us achieve that. These centres allow us to maintain constant, direct links with our clients and share the latest advances and technologies in the sector, with a view to developing the optimal packaging solutions for their products.

Innovation has always been one of Saica’s key principles and values. That is why our technical office creates tailor-made solutions for our clients every day, proposing new ideas and new products, as well as suggesting potential improvements to the quality of our own operations and the efficiency of our processes, because this innovation has an impact on our clients’ degree of satisfaction with the Saica experience.

We also work with the top European technology institutes and boast cutting-edge technology developed by Saica Pack to offer our clients expert packaging advice based on advanced simulation transport tests, which allow us to measure the resistance of packaging in a logistics chain.

Increasingly, our clients want packaging designs that are fully aligned with their product and that ensure optimal logistics processes throughout the supply chain. That’s why we formed Saica Creative, where we use the latest design technology to create packaging solutions which are totally tailored to the conditions stipulated by our clients, both in terms of the inner part of the packaging, which protects the product, and of the external graphics.

Innovation means creating tailor-made solutions for our clients every day, proposing new ideas and products and improving the quality and efficiency of our operations

Packaging Development

Technical Services

Saica Creative

Project Management

Customer Mechanisation

Supply Chain

Saica Environmental Report 2015-2016

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Finally, our Customer Experience Centre immerses the client in a creative environment to work with our experts on packaging designs in real time. Our clients are provided with samples of the finished product after just one or two sessions, rather than standard timeframes spanning weeks or even months.

We also have our own supermarket, where the flooring, lighting and shelves allow us to create an exact replica of how our clients’ products will be displayed in a real environment, offering a unique perspective of on-shelf product positioning.

Responding swiftly to our clients’ needs

Our client, International Cookware, needed to package and transport almost 2 million jugs using open dividers. The open packaging (die-cut panels) that had been used previously had caused numerous breakages and posed a risk of accidents during the unloading process.

Our technical team designed a new packaging model which prevented contact between the jugs. Combined with an anti-moisture system, this completely eliminated breakages and generated savings of 30% for our client on total packaging costs.

New solutions for the transport of Fresh Food

Saica Pack has developed a new packaging for the home delivery of fruits and vegetables, together with the Sustainable Development department of Carrefour.

These new boxes maintain the reliability of the product because it incorporates an interior food contact treatment. In addition, they have a series of vents that prevent moisture and condensation and allows a constant ventilation of the product.

The packaging is easy and quick to assemble, protects the product from damage during handling and maintains the brand's image thanks to the die-cut design of its logo on the different faces. For the consumer this represents an environmental improvement as it can be recycled in the blue container. Furthermore it has the advantage that it can be used for other things at home. With this new development, Saica Pack and Carrefour go a step further in the use of recycled, recyclable and biodegradable packaging.

“Thanks to the quick response from the sales and technical offices at Saica Pack Lamirande, we were able to find a solution to our problems… and much more” Laurent ProtPackaging Development ManagerInternational Cookware

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Saica Environmental Report 2015-2016Our value proposition

At Saica, we want to go one step further towards our goal of offering our clients the broadest range of packaging solutions, and that includes flexible packaging. Diversifying into this market has allowed us to expand into food contact packaging solutions and to provide a comprehensive range of value-added solutions. We now consider both corrugated cardboard and flexible solutions in the analysis and design of our packaging products, which allows us to better respond to our clients’ needs.

We strive to improve our clients’ positions in the market, providing advice and working together on the development of the ideal materials and printing techniques for their products, including rotogravure, flexography, laminates and rewinding. We work in a flexible, fast-paced environment

to offer the greatest possible added value for our clients’ products and to guarantee supply levels. Environmental and sustainability criteria are a crucial part of any development in the Flex area, and factors such as reducing raw material use and recyclability are also taken into account when it comes to choosing the materials to be used.

We create flexible packaging for a broad range of food products, including dried, fresh and frozen products, snacks, sweets, ice-cream, dairy products, cereals, dried foods and fish, meat and vegetable products. We also provide packaging solutions for cleaning products, cosmetics, drinks and pharmaceuticals, among others, while applying our philosophy of “For every need, there is a packaging solution” at all times.

Saica Flex

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Flexostar Awards

Our Beaune plant won a Flexostar Award in 2015 for its box design for Alpina Savoie in the category of Corrugated Cardboard post printing – uncoated. The Flexostar Awards, held by the French Association of Flexo Printing, recognise the best flexo printing projects in the fields of paper and cardboard packaging, films and labels.

Starpack Awards

In 2016, Saica received a number of accolades at the UK Starpack Awards, which recognises technological innovation and design in the field of packaging.

The packaging designed for Hogan’s Cider, which offers protection for three different-sized glass bottles, won a Starpack Gold Award.

The design by Saica Pack UK for the Automower Husqvarna lawnmower received the Starpack Silver Award. This packaging complies with demanding support and protection requirements whilst optimising cardboard use, reducing material costs and reducing die cut waste by 40%.

Worldstar Awards

The Worldstar Awards are presented by the World Packaging Organisation (WPO), a non-profit international federation of packaging institutes, associations, corporations and organisations.

Our plant in Viana, Spain, was awarded first prize for its Saica eWine packaging, designed to protect bottles of wine delivered via e-commerce.

Saica Pack UK won the silver award for its new packaging solution for the Husqvarna lawnmower, thanks to its superior quality printing.

Our value proposition

Initiatives, awards and recognitions in the 2015-2016 periodSaica Pack’s cutting-edge approach to designing and manufacturing products in response to our clients’ needs has earned us a range of accolades in the last two years:

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Saica Environmental Report 2015-2016

LiderPack Awards

In 2016, the project to replace plastic bags with corrugated cardboard boxes for Carrefour’s fruit and vegetable home deliveries won the LiderPack award for packaging and point-of-sale advertising. The packaging bears the distributor’s logo and is a major step forward in Carrefour’s sustainability efforts.

Packaging Awards

The design for MM Flowers’ online delivery pack won the award for Best Packaging at the 2015 Packaging Awards in the UK. The pack was designed for home delivery of flowers with a premium, elegant, aesthetic appearance while complying with the demanding strength requirements. Thus ensuring it can withstand the transportation process in good condition and protect the client’s brand image and reputation.

Environmental aspects

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Saica Environmental Report 2015-2016

“Thanks to its vertically integrated structure, Saica recovers waste, transforms it into secondary raw materials and recycles it to provide its clients with recycled – and recyclable – packs and packaging.

Despite the fact that secondary raw materials originate from waste recovery, they are considered, at the core of our group, as valuable resources which are necessary for the manufacturing of premium quality recycled products.”

Guillermo VallésPurchasing ManagerSaica Paper

Management approach

Growing concerns over resource scarcity, efficient resource use and our impact on the environment are driving a change in global production strategies, steering them towards circular models.

The European Commission underscored its commitment to this change when it adopted the Circular Economy Package. This initiative outlines targets for the recovery of construction and demolition waste, establishes criteria to promote recovery and recycling by manufacturers and promotes industrial symbiosis, whereby waste products from one industry are converted into raw materials for another.

This shift towards a circular economy model promises major direct and indirect profits for the European economy. It is expected to generate total benefits of 1.8 trillion euros by 2030, stemming mainly from resource savings and other indirect benefits linked to extending the service life of resources.4

Against this backdrop, optimising the use of our raw materials is crucial. Resources are increasingly scarce, which is why we seek to minimise the impact of our procurement on the environment, giving rise to substantial savings throughout our value chain. With that in mind, we focus our efforts around four key areas:

• Researching into new ways of reusing and recovering waste.• Promoting raw material recovery using the most advanced transport

and equipment.• Monitoring the quality of input materials to reduce losses.• Working with clients to reduce the volume and weight of their

packaging.

Raw materials

4 - Growth within: A circular economy vision for a competitive Europe - Ellen MacArthur Foundation.

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At Saica, we are constantly seeking new ways to recover and reuse waste. These strategies have allowed us to maximise the amount of paper recovered for recycling, obtain fuel for our energy recovery plants, and generate raw materials for our LDPE recycling centre to produce recycled pellets.

For the recovery of raw materials, our Saica Natur centres use the most advanced transport and selection equipment on the market, including screenings, trommel drums and optical sorters, to ensure accurate material separation for better recycling. Rigour in the separation process allows us not only to increase the recyclability of the waste we use as raw materials for our processes, but also to drive down the environmental impact of the other processes in the production chain.

Once it has been received at our paper plants, the material – which has already been transformed by Natur into a secondary raw material – undergoes rigorous quality control in order to reduce losses caused by non-paper and unwanted materials, and in turn, cut down on rejects in the paper pulp preparation process.

Saica Paper was the first recycled paper maker in the world to systematically measure the quality, in terms of moisture and unwanted material levels, of every batch of raw material entering its paper mills. In 1992, it invested in specific apparatus to extract samples from the interior of the bales of raw material for subsequent analysis and, in 2009, it became the first paper manufacturer to automate this measurement process.

Based on the results of this measurement process, we work with our raw material suppliers on continuous quality improvements, which allow for more efficient, better quality recycling with a smaller environmental impact.

We also work with our clients to cut the volume and weight of their packaging, and reduce losses and breakages in their packaging, transport and storage processes, generating savings in material use throughout the entire value chain.

Invest in improving the quality of raw materials to enhance process efficiency: Our continuous improvement processes, such as Project Fibre, have allowed us to pare back pulper rejects by 0.5% and non-paper components by 1.1% in comparison with 2014 quantities.

Continue to cut our consumption of natural resources: We work with our clients to optimise our production processes and their packaging lines to reduce rejects and offcuts.

Minimise the impact of our activity on our surroundings: Our procurement system requires our suppliers to comply with a series of environmental criteria. Saica also undertakes various initiatives to optimise the use of chemical products and reuse process water, among others.

Promote the use of secondary raw materials: At Saica Pack, we have increased the use of recycled paper by 6.9% compared with 2014, and the Paper division has increased the volume of paper for recycling by 2.1%. What’s more, Natur Cycle Plus is set to manufacture 15,000t of recycled LDPE pellets.

OUR RAW MATERIAL COMMITMENTS FOR 2015-2016

Saica Paper was the first recycled paper maker in the world to systematically measure the quality of the raw materials delivered to its plants

Environmental aspects

Raw materials

P • 31

Performance indicatorsOur most noteworthy actions to promote the use of paper for recycling as a raw material have taken place at Saica Paper, resulting in a 2.1% increase. In 2016, Saica Paper used a total of 2.84 million tonnes of paper for recycling5 at its plants in Spain, France and the UK.

At Saica Pack, we have increased the use of paper in packaging production by 7.2%, mainly as a result of the increase in the design and production of new cardboard wrapping and packaging solutions. This growth raised our total paper use to 1,393,573 tonnes.

To manufacture our packaging solutions, we seek to minimise the use of virgin fibre papers and opt instead for recycled paper. In 2016, 91% of our consumption at Saica Pack was recycled paper, equivalent to a volume of 1,265,321 tonnes.

By region, the use of recycled paper in the manufacturing of wrapping and packaging in Spain and France is over 93%, and stands at over 91% in Italy and Portugal.

Our approach, which features a circular production system in which waste is reintegrated into the production cycle as a secondary raw material, means that 85% of the paper used by Saica Pack originates from Saica Paper’s machines. What’s more, the fact that 100% of the paper manufactured by Saica Paper is certified as FSC recycled or 100% PEFC certified means we can guarantee the sustainability of supply at Saica Pack.

Our circular economy strategy is further underpinned by the launch of

Thanks to our initiatives to promote efficiency in the use of raw materials and the circular economy, 100% of raw material at Saica Paper and 91% at Saica Pack is from recycled sources

200 0

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600

800

1,000

1,200

1,400 1,183

2014

1,222

2015

1,265

2016

2,075 2,109 2,136

248 255 266 458 442 439

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2014 2015 2016

■ Spain ■ France ■ UK

■ Diesel ■ Biogas ■ Waste

■ Electricity ■ Natural gas ■ Total

■ Saica1 ■ Saica 2 ■ Saica 3 ■ Saica 4

■ Saica Venizel ■ Saica Partington

■ Saica1 ■ Saica 2 ■ Saica 3 ■ Saica 4

■ Saica Venizel ■ Saica Partington

2, 841 2, 806 2,781

8,112 8,623 8,403

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2014 2015 2016

5,519 5,776 5,686

0

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2,000

3,000

4,000

5,000

6,000

7,000

2014 2015 2016

300

320

340

360

380

400

420

440

460

2014 2015 2016

Saica 1 Saica 2 Saica 3 Saica 4 Saica Venizel Saica Partington Total Saica

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4,0

6,0

8,0

10,0

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2,0

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6,0

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10,0

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200 0

400

600

800

1,000

1,200

1,400 1,183

2014

1,222

2015

1,265

2016

2,075 2,109 2,136

248 255 266 458 442 439

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2014 2015 2016

■ Spain ■ France ■ UK

■ Diesel ■ Biogas ■ Waste

■ Electricity ■ Natural gas ■ Total

■ Saica1 ■ Saica 2 ■ Saica 3 ■ Saica 4

■ Saica Venizel ■ Saica Partington

■ Saica1 ■ Saica 2 ■ Saica 3 ■ Saica 4

■ Saica Venizel ■ Saica Partington

2, 841 2, 806 2,781

8,112 8,623 8,403

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2014 2015 2016

5,519 5,776 5,686

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2014 2015 2016

300

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460

2014 2015 2016

Saica 1 Saica 2 Saica 3 Saica 4 Saica Venizel Saica Partington Total Saica

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4,0

6,0

8,0

10,0

2014 2015 2016 0,0

2,0

4,0

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5 - Figures for paper for recycling, normalised value: 10% moisture and 1% unwanted materials.

Consumption of paper for recycling at Saica Paper[Thousands of t]5

Consumption of paper for recycling at Saica Pack[Thousands of t]

Saica Environmental Report 2015-2016

P • 32

Natur Cycle Plus, which will use cutting-edge technology to transform LDPE waste into a premium quality secondary raw material. A total of 15,000 tonnes of recycled LDPE pellets will be used every year by our customers as a raw material for the manufacture of flexible packaging. This allows us to contribute to cutting back on the use of virgin raw materials and at the same time, continuing to innovate in the field of product recyclability.

At Saica Flex, in addition to the advantages already offered by flexible packaging versus heavier alternatives like glass and metal, we will develop blended solutions that allow us to integrate recycled materials into any product we can. Flexible packaging is the most broadly-used packaging type in the market given its aesthetic characteristics, its product conservation capacity and the reduction in packing and logistics costs.

“Flexible packaging allows for a substantial reduction in weight versus other traditional materials like glass and metal, significantly reducing the resources required for manufacturing and transport.”

Raúl SanzOperations Manager Saica Flex Iberia

Environmental aspects

Raw materials

P • 33

Saica Environmental Report 2015-2016

Key projects

Improving to packaging ines of our customers

Dawn Meats is one of the principal meat processors in Ireland and the UK, and is the supplier of choice to a range of leading supermarkets, food service and manufacturing businesses throughout Europe and the rest of the World

Saica Pack, with much experience in the development of packaging systems for fresh food, developed an erecting system for the optimisation of one their main packs, which gave a 35% saving in the board area of the pack, improving the productivity of their packaging lines, decreasing pallet intake numbers and resulting in a stronger pack which improved presentation to their customers.

New design to reduce weight and optimise transportation

Fileni is one of Italy’s largest producers of poultry and rabbit meat products, and its success strategy is based on the outstanding quality of its products.

At Saica Pack, we worked closely with our client to design new boxes which would reduce its environmental footprint and optimise its packaging process. The new box design provided for a reduction in the use of raw materials, cutting their weight by 22% and facilitating transport.

The new design allowed for an increase in the capacity for transportation by lorry of the boxes of almost 10% and a reduction of 40% in lorry traffic, which helped reduce emissions related to transport, optimise logistics and distribution and lower our clients’ costs.

This design earned Saica Pack a nomination for the 2015 Oscar Imballaggio awards, which recognise the best packaging designed and marketed in Italy; we were the only company to be nominated for a corrugated cardboard product.

Environmental aspects

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Saica Environmental Report 2015-2016

“Over 30 years ago, Saica began using cogeneration plants, a source of clean, efficient energy that combine the production of heat and electricity in a single system, using less fuel and reducing losses in energy transmission.

This pioneering approach to deploying best available technology (BAT) continues to be the mainstay of our energy strategy.”

Zaira de la VegaDeputy Manager Waste to Energy PlantSaica Paper El Burgo de Ebro

Management approach

Growing concern over climate change and the future increase in energy access costs are bringing about a transformation in global production models, and driving a need for companies to reinvent themselves and innovate to promote a more responsible use of resources and energy.

In developed countries, it is broadly accepted that we need to save energy by improving energy efficiency. However, it is developing nations that will be the main drivers of global growth in energy demand, which is set to rise by over 50% by 2030 and reach 70% by 2040.

The European Union has set itself the goal of decoupling economic growth and resource use, promoting energy efficiency and supporting a shift towards an economy with low carbon emissions through increased renewable energy use. In Europe, renewable energies should account for 20% of energy output by 2020, and 27% by 2030.

At Saica, we seek to ensure better energy use by enhancing the efficiency of our processes and using clean fuels. Our production process requires substantial energy input, so it is vital that we use that energy responsibly and efficiently. Working on that premise, every day we are more competitive, robust and resilient.

Five years ago, technological innovation and substantial investment allowed us to begin recovering energy from non-hazardous waste generated through paper manufacturing, later including external refuse-derived fuel (RDF). By recovering energy from this waste, we were able to generate electricity to feed into the grid in Spain, and to create steam for our production process in the UK.

Energy

P • 36

The use of non-hazardous waste products as fuel in paper manufacturing was a major milestone in our circular economy model and our Zero Waste policy. Over 480,000 tonnes of waste a year is transformed into fuel, which avoids the need to send it to landfill and saves 750 GWh in natural gas. 6

Saica undertakes exhaustive monitoring and control of energy use, which allows us to identify potential areas for savings and to optimise our processes instantly, as we have our own energy management system. Between 2015 and 2016, in accordance with the EU Energy Efficiency Directive (2012/27/EU), we performed energy audits at the Saica facilities that use the most energy. This helped us identify areas for improvement at our facilities in Spain, France, Ireland, Italy, Portugal and the UK.

Monitoring energy use at every stage of our production processes and boasting a team of technicians and experts in energy management means we can work at maximum efficiency levels at all times, which means we offer our clients products with a very limited environmental footprint.

Continue to cut our consumption of natural resources: We installed new natural gas boilers and burners at our Saica Pack facilities (Ashbourne, Thrapston, Ellesmere Port, Lamirande, Viana, Seville, Toulouse and Eskisehir) and at Saica Paper in Venizel, increasing efficiency and completely eliminating the use of fuel oil. We also implemented a series of energy efficiency improvements, including the use of low-pressure steam and circuit optimisation, eliminating our use of fossil fuels.

Minimise the impact of our activity on our surroundings: By developing energy recovery solutions, we continue to take a two-pronged approach to paring down our environmental footprint: we avoid sending non-recyclable materials to landfill and use them as fuel for electricity and steam generation, rather than using fossil fuels.

Further develop our integrated business model: We harness non-recyclable waste, such as the RDF generated at the Saica Natur plants, waste from Saica Paper processes and the biogas generated at our process water treatment plants, and convert them into steam (140 GWh) and electricity (356 GWh), thus avoiding the need to send them to landfill.

OUR ENERGY COMMITMENTS FOR 2015-2016

At Saica, we strive to make the best possible use of energy by enhancing the efficiency of our processes and using clean fuels

Environmental aspects

6 - Values expressed in LCV (Lower Calorific Value).

Energy

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Saica Environmental Report 2015-2016

Performance indicatorsSaica’s energy consumption stood at just over 8,400 GWh in 2016, down 2.6% on 2015 consumption.

Natural gas and electricity are our main energy sources, in addition to waste from paper production, refuse-derived fuel (RDF) sourced from our activity at Saica Natur and biogas generated through the treatment of process waters.

The natural gas used at our cogeneration plants to produce steam and electricity, and in our boilers to generate heat and steam for production processes, is Saica’s main source of energy, accounting for 5,686 GWhi in 2016. Natural gas is a very efficient fuel with a high calorific value, which helps keep Saica’s products competitive. Our natural gas consumption was down 1.6% year on year in 2016, despite the increase in production levels at our Paper and Pack facilities.

Some of this natural gas is used to generate electricity. Our energy output, including self-consumption and sales to the grid, has increased to 2,168 GWh, up 3.6% against 2014 levels. This improved energy production is thanks to the increase registered at our cogeneration plants in Spain, which generated an additional output of almost 5.5% over the period, allowing us to feed a total of 1,907 GWH into the grid.

After natural gas, our largest energy source is electricity. In 2016, Saica consumed 1,200 GWh, but most of this energy was generated at our own plants.

The Saica Paper division, which accounts for 80% of our electricity consumption, managed to cut its energy consumption per tonne produced slightly from 390 to 388 kWh/t between 2014 and 2016. Our philosophy of continuously optimising processes poses a major challenge for our energy department. In addition to the best available technologies (BAT) implemented over the years, we continue to strive to minimise our energy consumption and maximise our productivity. 200

0

400

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1,000

1,200

1,400 1,183

2014

1,222

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1,265

2016

2,075 2,109 2,136

248 255 266 458 442 439

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500

1,000

1,500

2,000

2,500

3,000

3,500

2014 2015 2016

■ Spain ■ France ■ UK

■ Diesel ■ Biogas ■ Waste

■ Electricity ■ Natural gas ■ Total

■ Saica1 ■ Saica 2 ■ Saica 3 ■ Saica 4

■ Saica Venizel ■ Saica Partington

■ Saica1 ■ Saica 2 ■ Saica 3 ■ Saica 4

■ Saica Venizel ■ Saica Partington

2, 841 2, 806 2,781

8,112 8,623 8,403

0

1,000

2,000

3,000

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5,000

6,000

7,000

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2014 2015 2016

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2014 2015 2016

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Saica 1 Saica 2 Saica 3 Saica 4 Saica Venizel Saica Partington Total Saica

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4,0

6,0

8,0

10,0

2014 2015 2016 0,0

2,0

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10,0

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200 0

400

600

800

1,000

1,200

1,400 1,183

2014

1,222

2015

1,265

2016

2,075 2,109 2,136

248 255 266 458 442 439

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2014 2015 2016

■ Spain ■ France ■ UK

■ Diesel ■ Biogas ■ Waste

■ Electricity ■ Natural gas ■ Total

■ Saica1 ■ Saica 2 ■ Saica 3 ■ Saica 4

■ Saica Venizel ■ Saica Partington

■ Saica1 ■ Saica 2 ■ Saica 3 ■ Saica 4

■ Saica Venizel ■ Saica Partington

2, 841 2, 806 2,781

8,112 8,623 8,403

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2014 2015 2016

5,519 5,776 5,686

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2014 2015 2016

300

320

340

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380

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420

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460

2014 2015 2016

Saica 1 Saica 2 Saica 3 Saica 4 Saica Venizel Saica Partington Total Saica

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4,0

6,0

8,0

10,0

2014 2015 2016 0,0

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Energy consumption: total and by energy source [GWhi] Total consumption of Natural gas [GWhi]

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As for the Saica Natur division, the commissioning of our new Natur Cycle Plus facilities meant a substantial 61.1% increase in the division’s total electricity use in the period. This new facility accounted for 40% of the consumption of the Natur business area in 2016; it is far more energy intensive than the other Natur services, as it is a production plant rather than a waste separation facility.

At Saica Pack, one of the major milestones in 2016 was the dismantling of Saica’s very last fuel-oil boiler. This improvement, as well as boosting energy efficiency at the Saica Pack Ashbourne plant, also saves 664 tonnes in CO2 emissions.

Finally, energy recovery from paper production process waste, with a 66% biomass content, as well as the use of RDF produced at our Saica Natur plants, has allowed for a saving of 750 GWh7 in energy from fossil fuels, which is equivalent to the annual consumption of over 210,000 homes8.

It is also important to highlight that all resources used at the energy recovery plants originate from the Saica Paper and Natur facilities, underpinning the company’s core philosophy of resource use and the circular economy.

Biogas combustion allowed us to generate 48 GWh of electricity, part of which was consumed by the Saica Paper plants and part of which was fed into the grid, based on a model that clearly reflects the integration of the circular economy concept into our day-to-day operations.

Environmental aspects

200 0

400

600

800

1,000

1,200

1,400 1,183

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1,222

2015

1,265

2016

2,075 2,109 2,136

248 255 266 458 442 439

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2014 2015 2016

■ Spain ■ France ■ UK

■ Diesel ■ Biogas ■ Waste

■ Electricity ■ Natural gas ■ Total

■ Saica1 ■ Saica 2 ■ Saica 3 ■ Saica 4

■ Saica Venizel ■ Saica Partington

■ Saica1 ■ Saica 2 ■ Saica 3 ■ Saica 4

■ Saica Venizel ■ Saica Partington

2, 841 2, 806 2,781

8,112 8,623 8,403

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2014 2015 2016

5,519 5,776 5,686

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1,000

2,000

3,000

4,000

5,000

6,000

7,000

2014 2015 2016

300

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400

420

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460

2014 2015 2016

Saica 1 Saica 2 Saica 3 Saica 4 Saica Venizel Saica Partington Total Saica

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Breakdown of electricity consumption at Saica Paper [kWh/t]

7 - Equivalent natural gas consumption.8 - Based on an average energy use per home of 3,487 kWh. Spanish Institute for Energy Diversification and Saving (Instituto para la Diversificación y el Ahorro de Energía, IDAE).

Energy

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Saica Environmental Report 2015-2016

Key project

New biomass energy recovery plant in France

In line with the commitments that emerged from COP21 in Paris, France has passed its National Low-Carbon Strategy, including a commitment to cut greenhouse gas emissions by 40% by 2030 and 75% by 2050 against 1990 levels. To effectively transition towards a low-carbon economy, it has also outlined a target reduction of 24% by 2028 for industry through the integration of the circular economy, energy efficiency and renewable energies.

Our new biomass energy recovery plant at Saica Paper Venizel will produce steam for paper manufacturing and will contribute directly to the achievement of France’s targets.

The new plant is set to be commissioned in 2018. Prior to that, two new natural gas boilers will be installed to enhance the efficiency of the current system and act as back-up as required.

The biomass energy recovery plant will bring about a major change in the factory’s energy supply, cutting its natural gas requirements by 92% compared with current levels, and with an average efficiency of over 75%, it will also contribute to both economic and environmental sustainability.

In 2016, 24% of non-hazardous waste generated at the facilities was sent to landfill, in the absence of a viable alternative. Once it is up and running, the plant will convert this non-recyclable waste to value, along with the 75,000 tonnes of waste from the wood transformation process, generating savings of 300 GWh in natural gas consumption.

Environmental aspects

Photograph awarded second prize in theSaica Group’s 1st Environmental Photography Contest. Jesús Echevarría, Raw Material Supervisor Saica Natur El Burgo de Ebro, Spain.

P • 40

P • 41

Saica Environmental Report 2015-2016

“As well as being essential for our production process, water is a increasingly scarce resource that must be used responsibly if we are to ensure its availability and quality for future generations.

Saica uses a continuous improvement approach to ensure its water use is as efficient as possible, protecting water quality and respecting its natural life cycle. To that end, Saica rolls out responsible practices throughout the value chain of products and services.”

Karen Gilbert Environmental, Safety and QualityManager Saica Paper UK

Management approach

Every year, the World Economic Forum puts out a study of global risks called The Global Risks Report. This study evaluates the likelihood of occurrence and the impact level of a large variety of global risks of an economic, environmental, political, social and technological nature.

For the third year running, water has made it into the top three risks, given the increased likelihood and impact levels of extreme weather events, such as heat waves, droughts and floods. The report actually demonstrates that there is a cluster of interconnected environmental risks – including extreme weather events, climate change and water crises – that has featured consistently among the top global risks over the last seven years.

Should the water-related risks – such as an increase in water stress – materialise, it could, according to the World Bank, generate GDP losses of up to 6% in countries with water scarcity, and a drop of up to two-thirds in water availability in cities, as a result of the impact of climate change and competition from energy generation and agriculture.

Saica always uses cutting-edge technology to make paper and corrugated cardboard and for effluent treatment, allowing for increasingly responsible water use. We use best available technologies, employ highly qualified technicians, reuse substantial amounts of treated water and invest in R&D and innovation projects aimed at the continuous optimisation of our processes.

Water

We strive to cut the water footprint of our products, ensuring sustainable water use

P • 42

At our water treatment facilities in particular, we are constantly implementing improvements, optimising biological processes to secure water discharge levels better than the required standards, enhancing the efficiency of our anaerobic digestion processes, optimising the amount of additives used in the process and maximising water reuse at the various stages of the production process.

Our experts strive to drive down the water footprint of our products by ensuring sustainable water use and identifying and managing the risks associated with water availability, which have increased in recent years.

At Saica, we analyse both our production facilities and distribution and storage centres to assess vulnerability to flooding.

As a result, we have put in place contingency plans to prevent disruptions in production and the provision of services to our clients, as well as a response strategy for each plant involving improvements identified through the assessment process.

In 2015 and 2016 we implemented a range of improvements to process water treatment in the Pack division, including initiatives in Valencia, Cantabria and Amposta, among others. In Eskişehir, A Coruña and Barcelona, new treatment facilities were built and in Doullens, we improved the containment system for coloured water and installed an osmosis system for wastewater from the boiler.

At the Saica Paper mill in Venizel we launched the first phase of an improvement project, installing hydrocarbon separators and overhauling the rainwater network. At Saica Paper El Burgo de Ebro, we created a new connection to the Aragon Imperial Canal, to guarantee the supply of water of sufficient quantity and quality in the event of a drought. This measure guarantees the continuity of paper machine operations.

Continue to cut our consumption of natural resources:Reusing process water and recovering steam at our Paper and Pack plants allows us not only to reduce our energy and water consumption, but also to continuously re-harness this increasingly scarce resource. At Natur Cycle Plus, we reuse water from recycled pellet manufacturing, recirculating 83% of all process water.

Minimise the impact of our activity on our surroundings:By rolling out BATs, working tirelessly to improve our water discharge levels, expanding and improving our current facilities, and creating new lines of activity and rolling out plans to drive down COD and TSS pollutant loads, for example at Partington and Venizel. What’s more, between 2015 and 2016 Saica Pack invested almost 1 million euros in implementing continuous improvements to process water treatment at our plants.

OUR WATER COMMITMENTS FOR 2015-2016:

Environmental aspects

For the second year running, Saica took part in this initiative, which seeks to raise awareness of strategies for managing the water-related risks and opportunities identified by the world’s largest companies. For the first time this year, the scores obtained by the companies involved were made public. Saica improved its position against last year and secured a B qualification, positioning it substantially above the sector average and very close to the scores obtained by its largest clients.

Water

P • 43

Performance indicatorsIn 2016, the Saica Group used 16,714,183 m3 of water, and that usage has remained virtually unchanged throughout the 2014-2016 period. In fact, Saica has improved its efficiency in terms of water use, holding water consumption levels steady whilst increasing production across all divisions.

The production process to manufacture recycled paper is highly water intensive, which is why Saica Paper accounts for over 95% of the Group’s total consumption.

Despite the increase in production, Saica Paper has kept its water use steady, cutting its ratio of water consumption to production by 2.5% against 2014 levels to 6.3 m3/t. The figures put out by the paper sector association ASPAPEL show that the ratio of water consumption to paper production at Saica is 20% lower than the sector average in Spain.9

We have improved our efficiency in terms of water use, with our consumption figures remaining stable despite increases in production across all divisions

In the Saica Pack area, we secured a 6.1% reduction against 2015 water usage to stand at 567,900 m3, thanks to major optimisation measures at plants including Doullens in France and Eskişehir in Turkey. These measures helped drive down our water consumption to production ratio to 0.21 m3/1,000 m2 of cardboard manufactured. The Saica Pack division mainly uses water to generate steam in natural gas boilers to run the corrugator.

Following the launch of our Natur Cycle Plus plant, water use in the Saica Natur division has increased substantially to 198,274 m3.

We implemented a recirculation system during the design phase which allows the plant – which has a flow rate of 120 m3/h – to recirculate 83% of its water. Since it began operations in 2015, the plant has accounted for over 85% of the division’s water use.

In the paper sector, the quality of raw material inputs and the format and features of the paper to be manufactured are the main drivers behind fluctuations in the volumes and discharge parameters of treated process water.

200 0

400

600

800

1,000

1,200

1,400 1,183

2014

1,222

2015

1,265

2016

2,075 2,109 2,136

248 255 266 458 442 439

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2014 2015 2016

■ Spain ■ France ■ UK

■ Diesel ■ Biogas ■ Waste

■ Electricity ■ Natural gas ■ Total

■ Saica1 ■ Saica 2 ■ Saica 3 ■ Saica 4

■ Saica Venizel ■ Saica Partington

■ Saica1 ■ Saica 2 ■ Saica 3 ■ Saica 4

■ Saica Venizel ■ Saica Partington

2, 841 2, 806 2,781

8,112 8,623 8,403

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2014 2015 2016

5,519 5,776 5,686

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2014 2015 2016

300

320

340

360

380

400

420

440

460

2014 2015 2016

Saica 1 Saica 2 Saica 3 Saica 4 Saica Venizel Saica Partington Total Saica

0,0

2,0

4,0

6,0

8,0

10,0

2014 2015 2016 0,0

2,0

4,0

6,0

8,0

10,0

2014 2015 2016

Breakdown of water consumption at Saica Paper [m3/t]

Saica Environmental Report 2015-2016

9 - Water consumption to production ratio of 8 m3/t. 2016 Sustainability Report, ASPAPEL.

P • 44

Effective waste classification upon input at the source improves the quality of recyclable raw materials and cuts water use throughout the production process, helping to drive down environmental impact

In 2016, wastewater discharged by Saica Paper fell by 3% against 2015 levels. This cut is equivalent to over 413,000 m3 and has helped drive the water discharge to production ratio down from 5.5 to 5.3 m3/t. This is a particularly impressive achievement given the weight of the Paper division within the Group’s overall water discharge volume.

By making improvements to our biological water treatment processes, we have managed to cut our Chemical Oxygen Demand (COD) discharge rates by 5% against 2014 figures to 2,200 tonnes per year, whilst also driving down our ratio of COD to production by 7% throughout the Saica Paper division.

During 2015 and 2016, however, there were certain alterations to the water treatment processes at Venizel and Partington which led to a 29% increase in our Total Suspended Solids (TSS) discharge for the period. In the fourth quarter of 2016, the action plans rolled out at our facilities returned the division’s discharge levels to normal, at 0.33 kg TSS/t.

Environmental aspects

200 0

400

600

800

1,000

1,200

1,400 1,183

2014

1,222

2015

1,265

2016

2,075 2,109 2,136

248 255 266 458 442 439

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2014 2015 2016

■ Spain ■ France ■ UK

■ Diesel ■ Biogas ■ Waste

■ Electricity ■ Natural gas ■ Total

■ Saica1 ■ Saica 2 ■ Saica 3 ■ Saica 4

■ Saica Venizel ■ Saica Partington

■ Saica1 ■ Saica 2 ■ Saica 3 ■ Saica 4

■ Saica Venizel ■ Saica Partington

2, 841 2, 806 2,781

8,112 8,623 8,403

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2014 2015 2016

5,519 5,776 5,686

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2014 2015 2016

300

320

340

360

380

400

420

440

460

2014 2015 2016

Saica 1 Saica 2 Saica 3 Saica 4 Saica Venizel Saica Partington Total Saica

0,0

2,0

4,0

6,0

8,0

10,0

2014 2015 2016 0,0

2,0

4,0

6,0

8,0

10,0

2014 2015 2016

2014 2015 2016 2014 2015 2016

Saica 1 Saica 2 Saica 3 Saica 4 Saica Venizel Saica Partington

Saica 1 Saica 2 Saica 3 Saica 4 Saica Venizel Saica Partington

0.0

1.0

2.0

0.00

0.50

1.00

0 200,000 400,000 600,000 800,000

1,000,000 1,200,000 1,400,000 1,600,000

2014 2015 2016 2014 2015 2016

1,613,092 1,587,003 1,573,408

83C 90CB

53C 60C D

1,039,413

83,582

4,261

4,046

189,070

1,532

2,586

203,913

6,100

3,967

2,767

28,505

1,656

2,008

200,000 400,000 600,000 800,000 1,000,000

España

Francia

Portugal

Italia

Reino Unido

Irlanda

Turquia

■ Natur Scope 2 ■ Paper Scope 1 ■ Paper Scope 2

■ Pack Scope 1 ■ Pack Scope 2

■ Saica ■ Supply Chain Average

■ Scope 2 ■ Scope 1

2014 2015 2016 2014 2015 2016

Saica 1 Saica 2 Saica 3 Saica 4 Saica Venizel Saica Partington

Saica 1 Saica 2 Saica 3 Saica 4 Saica Venizel Saica Partington

0.0

1.0

2.0

0.00

0.50

1.00

0 200,000 400,000 600,000 800,000

1,000,000 1,200,000 1,400,000 1,600,000

2014 2015 2016 2014 2015 2016

1,613,092 1,587,003 1,573,408

83C 90CB

53C 60C D

1,039,413

83,582

4,261

4,046

189,070

1,532

2,586

203,913

6,100

3,967

2,767

28,505

1,656

2,008

200,000 400,000 600,000 800,000 1,000,000

España

Francia

Portugal

Italia

Reino Unido

Irlanda

Turquia

■ Natur Scope 2 ■ Paper Scope 1 ■ Paper Scope 2

■ Pack Scope 1 ■ Pack Scope 2

■ Saica ■ Supply Chain Average

■ Scope 2 ■ Scope 1

Breakdown of water discharge at Saica Paper [m3/t]

COD discharge levels for Saica Paper [kg O2/t] TSS discharge levels for Saica Paper [kg/t]

Water

P • 45

Saica Environmental Report 2015-2016

Key project

New water treatment plant inEl Burgo de Ebro

In 2017, a new water treatment plant is set to open in El Burgo de Ebro, in addition to the existing facilities which treat all discharged water from the three paper machines and process it for discharge in accordance with established water discharge limits.

This extension will see the integration of two new aerobic biological treatment reactors with secondary settlement, with a hydraulic capacity of between 320 and 420 m3/h and a combined treatment capacity of 13.2 t/day of COD. Another anaerobic biological treatment line will also be installed with a capacity of 45 t/day of COD, as well as an additional biogas blower featuring a biochemical desulphurisation system with a capacity of 1,000 Nm3/h.

This expansion project will require an investment of almost 10 million euros, and will adapt the plant to the more stringent EU discharge regulations and to potential changes in the quality of paper for recycling.

Nadia Hag-Omer KerrEffluent Treatment Plants Managerin Saica Paper

Environmental aspects

P • 46

P • 47

Saica Environmental Report 2015-2016

“Saica works tirelessly to minimise its emissions of NOx and CO2, which are the main drivers behind our impact on the atmosphere.

We carry out exhaustive monitoring at all our plants, implementing best available technology (BAT) and continuous measurement systems at our energy recovery plants”.

Luis Miguel GilEnergy Services Manager

Management approach

The European Union’s Roadmap for moving to a competitive low carbon economy in 2050 states that by 2050, the region must cut its emissions by 80% against 1990 levels.

This target is in line with the commitment adopted by European leaders in 2009 to cut emissions by 80-95% by 2050, and with the COP21 Paris agreement.

To reach this goal, the EU will need to make sustained progress towards a low-carbon economy, in which clean technologies have a key role to play in all sectors of the economy and especially in the most energy-intensive industries.

At Saica, continuous improvements to the energy efficiency of our operations and the use of cleaner fuels not only allows us to conserve natural resources, but also to minimise greenhouse gas emissions and contribute to global targets in the fight against climate change.

Saica took significant measures in 2015 and 2016, installing new natural gas boilers at a number of Saica Pack plants – Thrapston, Ellesmere Port, Lamirande, Viana, Seville, Toulouse and Eskisehir – as well as at Saica Paper Venizel, and replacing the company’s last fuel oil boiler at Saica Pack Ashbourne.

Greenhouse gas emissions

P • 48

Installing new natural gas boilers has allowed us to increase the average efficiency of our steam production, adapt our heat generation to the rising needs of our plants, comply with new regulatory requirements and remove the most polluting, inefficient fuels – such as fuel oil - from our portfolio. In 2016, 100% of Saica’s boilers ran on natural gas, waste and/or biogas.

In 2017, as part of our commitment to minimising our environmental footprint, we will be modifying the gas turbines at the Paper cogeneration plants in Zaragoza and El Burgo de Ebro to install new burners with low NOx and DLN (Dry Low NOx) emissions. This technology will allow us to cut our emissions of these pollutants by 90%, complying with the new requirements of the European Industrial Emissions Directive.

Another measure we have taken to reduce our impact on the atmosphere is the use of alternative fuels. Our energy recovery plants feature a gas treatment system and use the non-hazardous waste from the paper manufacturing process, with a biomass content of up to 66%. We also obtain biogas at our water treatment plants, which we use in our energy plants instead of fossil fuels.

In addition to the measures taken at our plants, Saica has developed a series of initiatives aimed at driving down the impact of our transport activity, including the European Modular System (EMS) pilot project, the development of a tool to calculate the emissions linked to the transport and treatment of our clients’ waste and ongoing cooperation with our logistics suppliers to calculate the emissions generated by transporting Saica Paper products.

Minimise the impact of our activity on our surroundings:By installing low NOx emission burners, replacing old boilers with new, more efficient models and replacing fuel oil with other fuels, we have managed to reduce back direct and indirect emissions from our activity by 0.86% against 2014 levels.

Work on improving the sustainability of our logistics chain:We carried out a pilot programme for the use of longer and heavier vehicles (LHVs) of up to 60 tonnes and 25.5m in length within the framework of the EMS (European Modular System), thereby avoiding almost 33,380 kg in CO2 emissions.

Help our clients measure and manage their environmental footprint:By developing a tool to calculate the emissions stemming from the transport and treatment of our clients’ waste (indirect emissions – scope 3), we have helped our value chain identify environmental impacts and any opportunities to cut emissions. It also allows us to identify potential internal improvements in the management of waste transport routes.

OUR GREENHOUSE GAS COMMITMENTS FOR 2015-2016

Saica took significant measures in 2015 and 2016 which allowed us to substantially reduce our impact on the atmosphere

Environmental aspects

Greenhouse gas emissions

P • 49

Performance indicatorsThe main greenhouse gas emitted is CO2, followed by NOx. Limiting or reducing these emissions is a crucial factor both in the design of new facilities and the renovation of existing ones.

In 2016, we cut our greenhouse gas (GHG) emissions by 0.86% against 2014 levels, despite increases in paper production (+2.29%), gross electricity output (+3.60%) and cardboard production (+3.46%) over the same period.

At the end of the year, our carbon footprint stood at 1,573,408 tonnes, of which 84% were scope 1 10 emissions from the use of fossil fuels and 16% were scope 2 emissions from electricity consumption.

By divisions, most of our greenhouse gas emissions – 91.4% – were from Saica Paper, which accounts for the majority of the Group’s energy and resource consumption. In 2016, Saica Paper’s emissions were cut by 2.8% year on year.

However, our most noteworthy achievement was the reduction of the emission factor associated with paper production compared with 2015. This was cut to a ratio of 0.324 tCO2/t, while the emission factor associated with electricity generation stood at 0.323 tCO2 per MWh produced.

Our emissions ratio in the Pack division fell by 3.7% or 0.048 tCO2/1000 m2 over the period, despite the upturn in production levels.

2014 2015 2016 2014 2015 2016

Saica 1 Saica 2 Saica 3 Saica 4 Saica Venizel Saica Partington

Saica 1 Saica 2 Saica 3 Saica 4 Saica Venizel Saica Partington

0.0

1.0

2.0

0.00

0.50

1.00

0 200,000 400,000 600,000 800,000

1,000,000 1,200,000 1,400,000 1,600,000

2014 2015 2016 2014 2015 2016

1,613,092 1,587,003 1,573,408

83C 90CB

53C 60C D

1,039,413

83,582

4,261

4,046

189,070

1,532

2,586

203,913

6,100

3,967

2,767

28,505

1,656

2,008

200,000 400,000 600,000 800,000 1,000,000

España

Francia

Portugal

Italia

Reino Unido

Irlanda

Turquia

■ Natur Scope 2 ■ Paper Scope 1 ■ Paper Scope 2

■ Pack Scope 1 ■ Pack Scope 2

■ Saica ■ Supply Chain Average

■ Scope 2 ■ Scope 1

2014 2015 2016 2014 2015 2016

Saica 1 Saica 2 Saica 3 Saica 4 Saica Venizel Saica Partington

Saica 1 Saica 2 Saica 3 Saica 4 Saica Venizel Saica Partington

0.0

1.0

2.0

0.00

0.50

1.00

0 200,000 400,000 600,000 800,000

1,000,000 1,200,000 1,400,000 1,600,000

2014 2015 2016 2014 2015 2016

1,613,092 1,587,003 1,573,408

83C 90CB

53C 60C D

1,039,413

83,582

4,261

4,046

189,070

1,532

2,586

203,913

6,100

3,967

2,767

28,505

1,656

2,008

200,000 400,000 600,000 800,000 1,000,000

España

Francia

Portugal

Italia

Reino Unido

Irlanda

Turquia

■ Natur Scope 2 ■ Paper Scope 1 ■ Paper Scope 2

■ Pack Scope 1 ■ Pack Scope 2

■ Saica ■ Supply Chain Average

■ Scope 2 ■ Scope 1

Carbon footprint by divisions [tCO2]

CDP Climate Change Scoring

For the fifth year running, Saica has fulfilled its commitments in terms of climate change reporting by responding to the CDP Climate Change Supply Chain questionnaire.

Saica publishes its contributions against climate change, as well as working with its clients towards their own reduction targets as a key member of the supply chain.

In the latest edition of the questionnaire, over 4,300 companies responded to their clients’ requests within the Supply Chain programme, and reported on climate change management, risks, opportunities, targets and reduction plans. Saica improved on its own performance and achieved a Management level score for the first time ever with a B qualification.

10 - The Greenhouse Gas (GHG) Protocol Corporate categorises direct and indirect corporate greenhouse gas emissions into three scopes, and requires companies to calculate and report all scope 1 emissions (direct GHG emissions from sources that are owned or controlled by the reporting entity) and scope 2 emissions (indirect GHG emissions from consumption of purchased electricity).

Saica Environmental Report 2015-2016

P • 50

Emissions from the consumption of fossil fuels rose by 7%, and emissions from electricity consumption fell by 9%. The division’s total emissions held steady over the period at 129,164 tonnes of CO2, equivalent to 8.2% of Saica’s total emissions.

Finally, at Saica Natur, the only emissions deemed significant are greenhouse gases from electricity consumption at our facilities and by the waste transport and separation systems at the collection plants.

Total CO2 emissions stood at 5,974 tonnes. Despite the launch of operations at the Natur Cycle Plus plant, which increased emissions by 2,362 tonnes, the Natur division still accounts for less than 0.5% of company-wide emissions.

As well as CO2, our other main emissions are CO, NOx and SO2. In 2016, Saica emitted 303 tonnes of CO, 1,999 tonnes of NOx and 125 tonnes of SO2 into the atmosphere. Our NOx emissions in particular are expected to fall considerably in 2017, thanks to the installation of new low NOx burners at Saica Paper.

At Saica, we also want to look more closely at the calculation and management of our scope 3 emissions. To that end, in the 2015-2016 period, in cooperation with our logistics providers, we began calculating the emissions from the transportation of our raw materials (bales of paper for recycling) and our products (reels of recycled paper).

Environmental aspects

2014 2015 2016 2014 2015 2016

Saica 1 Saica 2 Saica 3 Saica 4 Saica Venizel Saica Partington

Saica 1 Saica 2 Saica 3 Saica 4 Saica Venizel Saica Partington

0,0

1,0

2,0

0,00

0,50

1,00

0 200,000 400,000 600,000 800,000

1,000,000 1,200,000 1,400,000 1,600,000

2014 2015 2016 2014 2015 2016

1,613,092 1,587,003 1,573,408

83C 90CB

53C 60C D

1,039,413

83,582

4,261

4,046

189,070

1,532

2,586

203,913

6,100

3,967

2,767

28,505

1,656

2,008

200,000 100,000 1,000,000

Spain

France

Portugal

Italy

UK

Ireland

Turkey

■ Natur Alcance 2 ■ Paper Alcance 1 ■ Paper Alcance 2

■ Pack Alcance 1 ■ Pack Alcance 2

■ Saica ■ Supply Chain Average

■ Scope 2 ■ Scope 1

200,000 1,000,000

■ Alcance 2 ■ Alcance 1

1,039,413 83,582

4,261

4,046

189,070

1,532

2,586

203,913

6,100

3,967

2,767

28,505

1,656

2,008

España

Francia

Portugal

Italia

Reino Unido

Irlanda

Turquia

Saica emissions by region [tCO2]

Greenhouse gas emissions

P • 51

Key projects

Carbon footprint calculation tool for our clients

Our work with the Aragón Technology Institute ITAINNOVA gave rise in 2015 to a tool to allow for the calculation of the emissions from our clients’ waste management.

This initiative allowed us to go one step further towards sustainable management of our supply chain, helping our clients look more closely at their scope 311 carbon footprint and allowing us to identify inefficiencies, areas for improvement and opportunities to reduce emissions in waste collection and treatment.

The application calculates the emissions generated from the moment the waste is created by the client to the moment of delivery to the first management facility other than Saica Natur (including transport, separation and treatment, etc.).

Based on the tonnes of waste managed by the client and the type of waste management undertaken, we can work out the direct emissions from fuel consumption and the indirect emissions from the energy use involved in waste treatment at both the client’s facilities and at Saica Natur. The tool can calculate emissions from the main waste products generated by our clients: paper and cardboard, plastic, wood, pallets, refuse, inert waste and scrap metal.

European Modular System (EMS) pilot project

In 2016, Saica launched the European Modular System (EMS) pilot project for road freight transport using longer and heavier vehicles (LHVs) with net loads of up to 39.3 tonnes, a capacity of almost 50% more than the vehicles currently used, which represent a huge opportunity to optimise road transport.

The pilot project carried out between September and December 2016 involved a total of 166 trips between Saica Paper El Burgo de Ebro and Saica Natur Paterna. Switching the vehicles used allowed for a saving of over 55,000 km.

Based on the emission factor of EMS vehicles (31.7 grCO2/t.km) against EURO VI lorries (39.97 grCO2/t.km), the pilot project generated savings of 33,380 kg de CO2. In 2017, this pilot project will be rolled out to a further eight routes, with up to 14 trips a day and a transport target of 70,000 tonnes, which will allow us to cut both the total number of trips and GHG emissions.

Going forward, the savings generated by the use of LHVs, coupled with route optimisation and the use of reverse logistics, which avoids empty running, will help us substantially reduce emissions from transportation.

11- The Greenhouse Gas (GHG) Protocol Corporate categorises direct and indirect corporate greenhouse gas emissions into three scopes. Scope 3 reporting is optional and comprises all indirect emissions not included in Scope 2 from supply chain sources that are not owned or controlled by the company (e.g. materials suppliers, logistics operators, waste management, franchisees and clients).

Saica Environmental Report 2015-2016

Environmental aspects

P • 52

P • 53

Saica Environmental Report 2015-2016

“Saica is a pioneer in converting waste to value. Since the outset, the company has always used recovered paper fibre rather than virgin fibre, and harnessed non-recoverable waste from paper production to generate the energy needed to run its facilities.

In recent years, Saica has also debuted in the market for low density polyethylene (LDPE) recycling. Thanks to the 2015 commissioning of Natur Cycle Plus, the company now recycles 15,000 tonnes of LDPE a year and transforms it into recycled pellets, a raw material for the manufacturing of industrial and flexible packaging.”

Ricardo CañavateDirector of Other Materials andBusiness Development.

Management approach

To safeguard sustainability in the future, we must work towards an economy that uses resources responsibly and ensures they are treated as raw materials, ensuring that no waste that could potentially be recycled or used for energy recovery is sent to landfill.

The circular economy is a restorative, regenerative model that can help achieve this goal. This model, underpinned by innovation throughout the system, seeks to redefine products and services to avoid both the generation of waste and negative environmental impacts. The circular economy model can build economic, natural and social capital, generating benefits for the companies that apply it, their value chains, society and the environment as a whole.

In response to this goal, in 2015 the European Union adopted its Circular Economy Package, setting out a series of waste reduction and recycling goals for the year 2030, including:

• Reducing waste sent to landfill to 10% of the current volume.• Recycling 75% of packaging waste.• Recycling 65% of municipal waste.

The package features initiatives to “close the loop” of product lifecycles, from the extraction of raw materials, to their management as waste products and their possible reintegration into the market as secondary raw materials.

Waste

P • 54

Currently in Europe, a total of 240 tonnes of waste per year is sent to landfill. Under the new guidelines, most of this waste will be reused or recycled, and in the absence of other alternatives, it will be used for energy recovery, in accordance with the EU’s waste hierarchy.

Saica uses best available technologies for the recovery and recycling of its own waste. We seek solutions to avoid the need to send our waste to landfill, analysing our process flows with a view to ensuring a circular business model. Last year, we successfully converted 89.65% of the waste generated at our Saica Paper and Saica Pack plants to value, by using them as secondary raw materials and fuel, or for agricultural purposes.

However, our greatest achievements have stemmed from supporting our clients in their efforts to reach the European Union’s Zero Waste targets, constantly researching the best ways to add value to the materials they manage, whether that be paper, cardboard, plastic, organic or inert materials, and moving ever closer to a circular economy.

Minimise the impact of our activity on our surroundings:We continue to move towards our goal of Zero Waste by designing new alternatives for the management of waste products and rejected materials from our manufacturing process. Saica recovers energy from over 400,000 t of non-hazardous waste from the paper manufacturing process and uses 210,000 tonnes of slurry from process water treatment for agricultural purposes.

Design new ways of re-purposing waste and converting it to value: We have worked with our clients to develop new management systems to help them hit their Zero Waste targets and sought to enhance the recyclability of our own products. We have also expanded our range of services thanks to Natur Cycle Plus, where we create recycled pellets and re-purpose our clients’ flexible packaging waste products, and the future Venizel plant, where we will make use of biomass from wood transformation waste products.

Increase the recovery rate of managed waste: We have enhanced the recyclability of our products and offered new provisioning and waste management services to our clients. At Alcampo, we managed to reintegrate materials that were previously sent to landfill into the circle, achieving Zero Waste at 11 centres in Madrid.

Promote innovative environmental solutions: We look at waste management as one single workflow. We provide clients like Alcampo with innovative solutions for collection and transport, develop new technologies for recovery and transformation into raw materials and invest in seeking new applications for waste otherwise destined for landfill.

OUR WASTE COMMITMENTS FOR 2015-2016

Environmental aspects

Waste

P • 55

Performance indicatorsFrom 2014 to 2016, the waste generated at Saica Paper and Saica Pack increased by 5.8% to 950,105 tonnes. However, this hike was accompanied by an increase in the volume of waste recovered, meaning that we have been able to optimise the way we use our resources and raw materials.

The recovery rate for waste generated at Saica Paper and Saica Pack now stands at 89.65%, up 1% on 2015. This recovered waste is reintegrated into the production cycle in the form of secondary raw materials or energy, or used for agricultural purposes.

By upgrading our facilities, we have obtained a waste recovery rate at Saica Pack of up to 98%, as well as making substantial progress in minimising the amount of waste generated. Between 2014 and 2016, we were extremely successful in driving down our hazardous waste generation by over 6.4% and keeping non-hazardous waste generation steady despite the increase in production levels.

In the Paper division, despite an increase in the total waste generated in relation to 2014 due to the poorer quality of paper for recycling, the

recovery rate was increased to 87%. The waste generated in 2016 totalled 707,145 tonnes of non-hazardous waste and 7,496 tonnes of hazardous waste.

By launching our non-hazardous waste energy recovery plants and constantly seeking new ways to convert our waste to value, we have managed to recover 621,157 tonnes of waste, cutting the amount of waste sent to landfill to just 13% of the total.

898 899 950

0 100 200 300 400 500 600 700 800 900

1000

2014 2015 2016

96.8% 98.0%

90% 91% 92% 93% 94% 95% 96% 97% 98% 99%

100%

2015 2016

0

200

400

600

800

7

657

2014

8

683

2015

7

707

2016

85.9% 86.2% 86.9%

80% 81% 82% 83% 84% 85% 86% 87% 88%

2014 2015 2016

■ Hazardous waste ■ Non-hazardous waste

68%

91%

96%

72%

90%

0% 20% 40% 60% 80% 100%

■ ISO 9001 ■ ISO 14001

■ FSC ■ PEFC ■ BRC

898 899 950

0 100 200 300 400 500 600 700 800 900

1000

2014 2015 2016

96.8% 98.0%

90% 91% 92% 93% 94% 95% 96% 97% 98% 99%

100%

2015 2016

0

200

400

600

800

7

657

2014

8

683

2015

7

707

2016

85.9% 86.2% 86.9%

80% 81% 82% 83% 84% 85% 86% 87% 88%

2014 2015 2016

■ Hazardous waste ■ Non-hazardous waste

68%

91%

96%

72%

90%

0% 20% 40% 60% 80% 100%

■ ISO 9001 ■ ISO 14001

■ FSC ■ PEFC ■ BRC

Total waste generated [Thousands of tonnes] Waste generated – Saica Paper [Thousands of tonnes]

Saica Environmental Report 2015-2016

In 2016, we recovered 89.65% of the waste generated at Saica Paper and Saica Pack, either reintegrating it into the production cycle as secondary raw materials and energy, or using it for agricultural purposes

P • 56

At Saica Paper, we recover waste by using over 210,000 tonnes of slurry from our process water treatment plants for agricultural purposes, which accounts for 30% of the total, and by recovering energy at our plants from over 400,000 tonnes of non-hazardous waste from the paper manufacturing process.

Saica Natur, the division that provides environmental solutions for our clients, handles the vast majority of waste management, innovating to improve the recyclability and reusability of waste products, transforming them into new raw materials and researching new possible applications.

Through partnerships with two private companies and with the Polytechnic University of Catalonia, Saica undertakes research into possible uses for ash from the energy recovery plants in El Burgo de Ebro and Partington, with a view to putting this waste to use from a technical/industrial perspective whilst safeguarding the environment and complying with the law in both countries.

At Saica Natur, we contribute to the creation of a circular economy by sending 2,739,288 tonnes of waste for recovery, minimising our clients’ environmental footprint. The recovered waste, mainly non-hazardous waste comprised of paper and cardboard, was sent, among other destinations, to Saica Paper, where it was used to manufacture recycled paper, rather than being sent to landfill.

Environmental aspects

898 899 950

0 100 200 300 400 500 600 700 800 900

1000

2014 2015 2016

96.8% 98.0%

90% 91% 92% 93% 94% 95% 96% 97% 98% 99%

100%

2015 2016

0

200

400

600

800

7

657

2014

8

683

2015

7

707

2016

85.9% 86.2% 86.9%

80% 81% 82% 83% 84% 85% 86% 87% 88%

2014 2015 2016

■ Hazardous waste ■ Non-hazardous waste

68%

91%

96%

72%

90%

0% 20% 40% 60% 80% 100%

■ ISO 9001 ■ ISO 14001

■ FSC ■ PEFC ■ BRC

898 899 950

0 100 200 300 400 500 600 700 800 900

1000

2014 2015 2016

96.8% 98.0%

90% 91% 92% 93% 94% 95% 96% 97% 98% 99%

100%

2015 2016

0

200

400

600

800

7

657

2014

8

683

2015

7

707

2016

85.9% 86.2% 86.9%

80% 81% 82% 83% 84% 85% 86% 87% 88%

2014 2015 2016

■ Hazardous waste ■ Non-hazardous waste

68%

91%

96%

72%

90%

0% 20% 40% 60% 80% 100%

■ ISO 9001 ■ ISO 14001

■ FSC ■ PEFC ■ BRC

Waste recovery – Saica Paper [%] Waste recovery – Saica Pack [%]

We contribute to the creation of a circular economy by sending 2,739,288 tonnes of waste for recovery, minimising our clients’ environmental footprint.

Waste

P • 57

Saica Environmental Report 2015-2016

Key project

Waste management services

At Auchan Retail Spain, we strive for Zero Waste, with a view to making the circular economy concept a reality. This allows us to substantially reduce the waste we send to landfill by transforming it into secondary raw materials and/or energy. That way, we help to reduce the consumption of new natural resources and avoid polluting the land, water and atmosphere.

We achieved Zero Waste at 11 Alcampo hypermarkets in the Region of Madrid in the final quarter of 2016.

This outcome would not have been possible if it weren’t for our partnership with Saica Natur, through which we have been working on a co-innovation and co-construction process since 2003. Cardboard is transformed into recycled paper to make new boxes, LDPE is transformed into pellets that can be reused in our packaging, inert waste is converted into RDF (refuse-derived fuel) for subsequent energy recovery and organic refuse is converted into both compost and energy.

Our Zero Waste target will contribute to the achievement of the 17 global goals of the UN’s 2030 Agenda to end poverty, protect the planet and ensure prosperity for everyone.

Yolanda FernándezHead of CSR,Auchan Retail Spain

P • 58

Certifications

“Saica’s philosophy, which is rooted in excellence in the management of our operations, drives us to develop highly efficient, decisive management models.

At all Saica’s divisions, our teams strive to achieve the utmost efficiency, whilst maintaining the flexibility and capacity to adapt required in the sectors in which we operate.

Our understanding of how we believe our business should work, and the fact that we operate in accordance with global management principles, means that adopting international standards makes perfect sense for Saica; they are a public

demonstration of our commitment to the best management practices.

Validation from third parties adds greater value still to the process, as it proves that our business practices comply with the most stringent international standards in the fields of quality, the environment, food safety and chain of custody.”

Pedro GascónManaging Director Group

Management approach

Continue to secure certifications for environmental management at our centres:International standard certifications guarantee our clients that our management practices are in line with the most prominent international standards in the fields of quality, the environment, sustainable forest

management and food safety. In 2016, 90% of Saica facilities had ISO 9001 certification; while 72% of facilities had achieved ISO 14001 certification.

OUR CERTIFICATIONS COMMITMENT FOR 2015-2016

P • 59

Performance indicatorsAt Saica, we operate in accordance with internationally recognised standards, designing goals and action plans that support our continuous improvement philosophy.

We monitor our activities constantly, we strive to ensure we are using optimal processes and we secure certifications for our facilities in line with international environmental and quality standards. This also ensures that we have a respectful, sustainable supply chain, which has a positive impact both on the company itself and on its surroundings.

The certification of our plants also allows us to monitor our risks more effectively, guaranteeing our clients certain quality standards and more transparent, rigorous processes. That is why we secure various different certifications for both our own facilities and activities, and for those of our suppliers.

Quality management

The ISO 9001 standard guarantees that Saica is constantly improving the quality of its products and services.

Currently, 90% of our plants are ISO 9001 certified. At Saica Paper, all of our plants have been ISO 9001 certified since 2014. At Saica Pack, 100% are currently certified, thanks to the renewal and re-certification processes. At Saica Natur, we have secured certification for 43 out of 48 plants, a rate of 90%, and at Saica Flex, we began our first year of operations with 57% of all plants certified.

Environmental management

To guarantee optimal, systematic environmental management throughout our manufacturing process, we integrated the ISO 14001 standard into our system.

In our Paper division, which has the highest environmental impact due to its intensive consumption of both energy and raw materials, 100% of our plants are ISO 14001 certified, making the division a company-wide benchmark in the implementation of environmental management best practices. At Saica Natur, we have secured certification for 90% of our plants, whilst at Saica Pack, 64% of facilities are currently certified and we are working hard to increase that proportion. At Saica Flex, 29% of our plants have ISO 14001 certification.

898 899 950

0 100 200 300 400 500 600 700 800 900

1000

2014 2015 2016

96.8% 98.0%

90% 91% 92% 93% 94% 95% 96% 97% 98% 99%

100%

2015 2016

0

200

400

600

800

7

657

2014

8

683

2015

7

707

2016

85.9% 86.2% 86.9%

80% 81% 82% 83% 84% 85% 86% 87% 88%

2014 2015 2016

■ Hazardous waste ■ Non-hazardous waste

68%

91%

96%

72%

90%

0% 20% 40% 60% 80% 100%

■ ISO 9001 ■ ISO 14001

■ FSC ■ PEFC ■ BRC

Saica plant Certification [%]

Saica Environmental Report 2015-2016

P • 60

Sustainable forest management

At Saica Paper, we only manufacture recycled paper. Our Saica Pack division consumes up to 9.2% of paper made from virgin fibre for the manufacturing of cardboard and packaging.

To ensure the raw materials for our products come from sustainable origins with environmentally-respectful forest management, we keep our processes PEFC and FSC certified.

Both systems guarantee that the company does not impact on the world’s forests and that our products stem from traceable origins and responsibly-managed forests that provide environmental, social and economic benefits.

Saica Paper keeps all its plants FSC and PEFC certified. Saica Pack has secured FSC certification for 96% of its plants and PEFC certification for 89%. The Pack division has obtained FSC Mix, FSC Recycled (in early 2017) and 100% PEFC certifications.

Food contact management

In the Pack division, which offers innovative, market-leading cardboard food packaging solutions, we also hold BRC food safety certification, which ensures that suppliers guarantee the food safety of their products.

The British Retail Consortium (BRC) standard is a fundamental requirement for many supermarkets in the UK, as well as for global food service providers and food buyers. The standard was developed to satisfy the need for a framework to standardise quality and food safety requirements. This certification, which is specific to the agri-food business, is only applicable to food manufacturers and food packaging providers. In our Pack division, 60% of our plants have BRC certification, as do 100% of our Saica Flex flexible packaging plants.

For Saica and for our clients, it is crucial that we keep these standards in place at our plants to guarantee a reliable, sustainable production process, which is why we undertake careful monitoring of all our facilities and their certifications.

Safety management

Saica has aligned its workplace Health and Safety system in accordance with the OHSAS 18001 standard and in line with the company’s “Zero Accidents” target, which is our commitment to safety in the Saica workplace. This commitment involves promoting safety in order to reduce accidents in the workplace, both for employees and for suppliers. In 2016, 51% of our Pack plants boasted this certification standard, reinforcing our model for the management and control of risks in the workplace.

100% of the paper manufactured by Saica Paper is FSC Recycled and 100% PEFC certified

77% of the paper bought by Saica Pack is FSC Mix, FSC Recycled and 100% PEFC certified

Certifications

P • 61

Key projects

EuCertPlast certification for 100% of our recycled plastic

In April 2016, we secured EuCertPlast certification at our Natur Cycle Plus plant, in accordance with European standard EN15343:2007.

EuCertPlast is a European certification initiative for post-consumer plastic recyclers which guarantees that plastic waste is recycled sustainably.

The initiative seeks to promote plastic recycling that adheres to a series of shared standards for the sector as a whole, focusing particularly on the traceability process and evaluation of conformity, and on the recycled plastic content of the pellets manufactured. At Natur Cycle Plus, 100% of the plastic recycled is EuCertPlast Post-Consumer and 100% of the composition of the pellets manufactured at Natur Cycle Plus complies with the standard.

Natur Cycle Plus clients can now use the Blue Angel label

Our plastic transformation clients that use at least 85% rLDPE produced at Natur Cycle Plus in their films, packaging products or bags can now use the Blue Angel label on their products, which certifies that they are particularly environmentally-friendly products.

The Blue Angel label is an environmental certification rolled out by the German government for the protection of people and the environment. It is an independent certification system with highly exacting standards and a track record of over 35 years as a hallmark for products that protect the environment.

Saica Environmental Report 2015-2016

P • 62

Appendices

Certification tables

Saica Paper Quality Environmental Sustainable forest Sustainable forest management management management management Plant ISO 9001 ISO 14001 FSC PEFC Saica 1 • • • •Spain Saica 2 • • • • Saica 3 • • • • Saica 4 • • • •France Venizel • • • •UK Partington • • • •

Saica Pack Quality Environmental Forest Sustainable forest Food safety Management management management management management management of health & safety in the work place Plant ISO 9001 ISO 14001 FSC PEFC BRC OHSAS 18001 A Coruña • • • • • Amposta • • • • • Sevilla • • • • • Alfajarín • • • • Alcobendas • • Sant Sadurní • • • • Spain Barcelona • • • • • El Prat • • • • • Meco • • • • • Velilla • • • • Valencia • • • • • Cantabria • • • • • Viana • • • • • Lisboa • • • •

Portugal Ovar • • • • • •

Cartonarte • • • • Marinha Grande • • •

Italy Badia • • • Santa Maria Hoe • • • Beaulac • • • • • • Beaune • • • • • • Doullens • • • • • Lamirande • • • • • • Laval • • • • • France Saint Junien • • • • • Toulouse • • • • Venizel • • • • • Besançon • • • Merignac • • • Tours • • • Ellesmere Port • • • • • Hartlepool • • • • • • Wigan • • • • • Telford • • • • • Peterlee • • • • • • Newport • • • • • • Thatcham • • • • •UK Thrapston • • • • • Edinburgh • • • • • • Milngavie • • • • • • Grangemouth • • • • Warrenpoint • • • • • • Lurgan • • • • Exeter • • • • Oxford • • • •Ireland Ashbourne • • • • •Turkey Eskisehir •

Saica Environmental Report 2015-2016

P • 63

Saica Natur Quality Environmental Management Sustainable management management of health & safety plastic in the work place management Plant ISO 9001 ISO 14001 OHSAS 18001 Eucertplast Sant Fost • • Northern Catalonia Celrá • • Terrassa • • Central Catalonia Zona Franca • • Tarragona • • Esparraguera • • Badalona • • Balearic Islands Palma de Mallorca • • Ibiza • • Alicante • • The Levante- Murcia Murcia • • Paterna • • Aragón Zaragoza • • Natur Cycle Plus • La Rioja • • Navarra-La Rioja Soria • • Pamplona • • Santander • • Burgos • • Castilla- Cantabria Asturias • • León • • Spain and Valladolid • • Portugal Vitoria • • Guipúzcoa • • Amorebieta • • Basque Country Deusto • • Vigo • • Betanzos • • Padrón • • San Martín de la Vega • • Central Spain Villaverde • • Meco • • Jerez • • Málaga Southern Spain Cáceres Sevilla • • Almendralejo Alcochete • • Portugal Oporto • • Sintra • • France France St Girons • • Tarnos • • Croy • • • Scotland Dundee Kirkcaldy • • • UK Doncaster • • • North of England Audenshaw • • • Manchester • • •

Saica Flex Quality Environmental Management Food safety management management of health & safety management in the work place Plant ISO 9001 ISO 14001 OHSAS 18001 BRCSpain Madrid • Zaragoza • •Luxembourg Luxembourg • •Italy Meldola • • • • Etten Leur • • •Netherlands Zaandam • Amsterdam n.a. 1 Dublin • • Enniskillen • • • • Buxton •UK Wigan • • Deeside • Swavesy • Haverhill • • •1 - n.a.: Not applicable.

P • 64

Appendices

Environmental aspects tables

2 - Figures for paper for recycling, normalised value: 10% moisture and 1% unwanted materials.

Raw materials

Virgin fibre [t] Recycled paper [t] Total [t]

Spain n.a. 2,135,869 2,135,869Saica Paper2 France n.a. 266,245 266,245 UK n.a. 438,743 438,743

Spain 34,234 460,934 495,168 Portugal 8,657 91,417 100,074Saica Pack Italy 6,512 69,794 76,306 France 18,964 296,955 315,919 UK and Ireland 58,541 322,551 381,092 Turkey 1,344 23,670 25,014

Energy

Fuel consumption 2014 2015 2016

Natural gas [MWh] 5,180,380 5,420,193 5,317,171Saica Paper Biofuels [MWh] 875,827 1,036,619 996,972 Other fossil fuels [MWh] 548,825 627,551 518,008

Saica Pack Natural gas [MWh] 338,686 356,123 368,573 Other fossil fuels [MWh] 7,571 2,521 692

Electricity consumption 2014 2015 2016

Generated [GWh] 2,092 2,248 2,168Saica Paper Supplied to grid [GWh] 1,839 1,985 1,907 Consumed [GWh] 1,075 1,073 1,086

Saica Pack Consumed [GWh] 178 184 192

Saica Natur Consumed [GWh] 14 20 23

Water 2014 2015 2016

Saica Paper Intake [m3] 15,988,534 16,104,106 15,948,008 Discharge [m3] 13,142,364 13,770,037 13,357,000

Saica Pack Intake [m3] 601,082 604,706 567,901

Saica Natur Intake [m3] 19,927 157,061 198,274 Discharged COD [t] 2,336 2,477 2,222Saica Paper Discharged TSS [t] 655 803 847 Discharged N [t] 207 244 160 Discharged P [t] 22 24 16

Saica Environmental Report 2015-2016

P • 65

Greenhouse gas emissions

CO2 emisions 2014 2015 2016Saica Paper

Spain 998,931 1,068,265 1,017,081 Scope 1 CO2 emissions [t] France 64,142 65,044 64,591 UK 163,265 165,475 167,420 Spain 214,088 171,377 181,755Scope 2 CO2 emissions [t] France 8,400 6,663 4,336 UK 4,034 3,546 3,087

Saica Pack Spain 21,020 21,388 22,332 Portugal 4,354 4,391 4,261 Scope 1 CO2 emissions [t] Italy 3,205 3,310 4,046 France 17,659 18,765 18,991 UK and Ireland 21,258 22,961 23,182 Turkey 2,968 2,594 2,586

Spain 19,017 15,541 16,786 Portugal 3,326 3,736 3,666 Scope 2 CO2 emissions [t] Italy 2,955 2,285 2,767 France 3,068 2,583 1,753 UK and Ireland 28,799 28,372 26,785 Turkey 1,832 1,847 2,008

Saica Natur Spain 3,501 4,337 5,372Scope 2 CO2 emissions [t] Portugal 217 293 301 France 24 19 11 UK and Ireland 940 300 290

Other emissions 2014 2015 2016

NO emissions [t] 1,695 1,972 1,999CO emissions [t] 92 191 303SO emissions [t] n.a.3 34 125

Waste Non-hazardous [t] Hazardous [t] % recovered

Spain 597,630 274 87.8Saica Paper France 48,561 141 76.2 UK 60,954 7,081 87.2

Spain 85,028 519 97.5 Portugal 19,842 168 97.9Saica Pack Italy 10,532 2 93.7 France 55,989 244 98.9 UK and Ireland 59,592 390 98.4 Turkey 3,141 16 98.4

3 - n.a. Not available.

P • 66

Appendices

Glossary

LCA Life-cycle analysis MWh Megawatt hoursBRC British Retail Consortium N NitrogenCDP Carbon Disclosure Project NDC National Development CentresRDF Refuse-derived fuel NOx Nitrogen OxidesDLN Dry low NOx OHSAS Occupational Health and Safety Assessment SeriesCOD Chemical Oxygen Demand P PhosphorusEMS European Modular System LCV Lower Calorific ValueFSC Forest Stewardship Council PEFC Programme for the Endorsement of Forest CertificationGHG Greenhouse Gases ERP Energy Recovery PlantGWh Gigawatt hours rLDPE Recycled low-density polyethyleneISO International Organisation for Standardization SO2 Sulfur dioxideLDPE Low-density polyethylene TSS Total Suspended Solids€M Millions of euros EU European Union €bn Billions of euros BAT Best available technology

Saica Environmental Report 2015-2016

Saica GroupSan Juan de la Peña, 14450015 Zaragoza (Spain)

T+34 976 103 100T+34 976 103 110

www.saica.com