Pulp NonfictionPaper Choices and Sustainability

in the Paper Industry***

Michael PeekVP Sales Northeast

New Leaf Paper Experience

• Sustainability is a core business value.

• Informs all aspects of the business: strategy, product design, marketing, operations, sales, etc.

• New Leaf Paper committed to being the market leader.

Strategic advantage of sustainability

• Strategic advantage of market leadership in commitment to sustainability.

• Shift from vendor to partner – work toward common goals.

• Brand value – customers tell our story.

• Commitment – customers and employees.

Ancient Forests and the Paper Industry

• 80% of the world’s large tracts of ancient forests have already been logged.

• 76 countries have lost all of their original forest cover

• 1/3 of all trees logged are used for paper production

• Global paper consumption is expected to double in the next 15 years

“Where is the market?”

“Where is the supply?”

Supply Side Challenge

Billions invested over two centuries.

Existing infrastructure.

Economies of scale drive existing system.

Low margin business.

Demanding marketplace.

Demand Side Challenge

Demanding marketplace.

Requires options that are readily available.

Accustomed to a very high level of service, high quality, and low cost.

The Chicken or the Egg

Evolution of a sustainable paper industry.

Paper decisions today determine mill design tomorrow.

100% Commitment to sustainability is the foundation.

New Leaf Paper

and

New Leaf Paper Mission Statement

Our goal is to inspire ~ through our success ~ a fundamental shift toward environmental responsibility in the paper industry.

We supply paper with the greatest environmental benefit while meeting the business needs of our customers.

Pulp Nonfiction: Paper Mill of the Future• Designed to rely on a large percentage of

post-consumer waste or ag byproduct.• Certified sustainable virgin fibers.• Clean chemistry, chlorine free bleaching• Located near urban centers.• Mimic natural systems. There is no waste

in nature.

Sustainable Mill Design Today: Dalum PapirInputs

– 70% of fiber from its own de-inking plant. – Near Urban Forest– FSC Certified sustainable virgin fiber.

Processes - Clean chemistry. Chlorine-free mill.By-Products & Emissions

– No waste, 100% recovery.– Useful by-products: energy, cement, compost.– Cleaner water.

Cost effective, esthetically competitive.– Aveda, Gaiam, HP, Ikea, HP, Seeds of Change

Inputs: The Medium is the Message• Post-consumer waste

– Waste is a terrible thing to waste

• Printed pre-consumer waste– Vital to support sustainable mill design –

integrated de-inking

• Sustainably harvested virgin fiber– FSC certified wood, Non-wood farmed

fibers.

• Future fiber… Agricultural byproduct– Flax straw, rice straw, corn stalks…

Sustainable ForestryFSC certification = most reliable indicator of

sustainable forestry.– Standards include input from all stakeholders.– Independent system. – Requires independent third party certification.– Chain of Custidy certification - forest to end user.

FSC availability is on the rise.

Processes: BleachingChlorine Gas (Cl2)

Most damaging, almost entirely discontinued.

Chlorine Compounds (ClO2) = ECF (Elemental Chlorine Free)

Some ECF systems are better than others.

Chlorine Free (H2O2 H20 + O2)= PCF (Processed Chlorine Free)

Most environmentally responsible. Included recycled fiber.

= TCF (Totally Chlorine Free)Same process at PCF, only for virgin pulp.

Sustainable Mill Design in the FutureBioRefinery Model• Reconceive the paper mill as a biorefinery.• Maximize usage of raw material.• Environmental and economic win.

Minimills• Close to fiber source and market – vast reduction in

energy usage.

Agricultural Residue as Fiber Source• Significant source of fiber in Asia and South America.• Bagasse, flax straw, cereal straws.• Effluent treatment challenges being overcome.• New technology to pulp at small scale, near source.

Pulp Nonfiction: Our Vision of a Sustainable Paper IndustryPaper mill design is the key

– Integrate principles of sustainability

– Waste equals food. There is no “away.”

Inputs, processes, by-products & emissions

Environmental commitment from all players

– End user, printer, distributor, mill, NGO, government

Partnership with shared values

Transparency – build trust.

Market LeadershipNew Leaf Paper has the best track record in the development of market leading environmental papers.

• New Leaf Everest - First 100% post-consumer high quality letterhead paper – 1997.• New Leaf Reincarnation - First 100% recycled coated paper, first processed chlorine free

coated paper, highest PCW content – 1998.

• New Leaf EcoMatte FSC – First matte coated FSC certified paper – 2001.

• New Leaf EcoBook100 – First 100% PCW, PCF book paper – 2001.

• New Leaf Opaque 100 - First 100% PCW, PCF opaque – 2003.

• Primavera Gloss – First high-end gloss coated paper with 40% PCW, PCF.

• Sakura 100 – First gloss coated paper in the U.S. with 100% PCW, PCF.

ENVIRONMENTAL BENEFITS STATEMENTHarry Potter and the Order of the Phoenix

Congratulations! By using environmentally responsible paper, Raincoast Books has saved the following resources:

29,640 Trees

633,557 Kilograms of solid waste

47,007,044 Litres of water

20,248 BTUs of electricity195.0 Years of electric power required by the average U.S. home

1,215,443 Kilograms of greenhouse gases3,900,000 Kilometers equivalent driving the average American car

Environmental benefits are calculated based on research done by the Environmental Defense Fund and the other members of the Paper Task Force who studied the environmental impacts of the paper industry. Contact the EDF for a copy of their report and the latest updates on their data. Trees saved calculation based on trees with a 10” diameter. Actual diameter of trees cut for pulp range from 6” up to very large, old growth trees. Home energy use equivalent provided by Pacific Gas and Electric Co., San Francisco. Hazardous Air Pollutants (HAPs), Volatile Organic Compounds (VOCs), and Absorbable Organic Compounds (AOX). Landfill space saved based on American Paper Institute, Inc. publication, Paper Recycling and its Role in Solid Waste Management.

Pulp Non-Fiction -Buying Environmentally Friendly Paper is Good Business

Environmentally friendly paper is competitive.Most cost within 10% of virgin paper made in North America.

Better value proposition.

Readily available across North America.

Paper decisions today drive mill design tomorrow.Design a sustainable future.