aust4192-sustainability-report-2011-web

Contents
Message from Jim Henneberry,
Chief Executive Officer 2
Message from Shaun Scallan, General Manager,
Corporate Social Responsibility 4
Sustainable Paper – the Choice 5
About this Report 6
Australian Paper – an Overview 7
Stakeholder Engagement and Material Issues 10
Future Fibre Strategy 13
Governance 15
Sustainability Goals and Targets 17
Environment 20
People 34
Economic 47
Glossary 49
GRI Content Index 50
GRI Application Level Check 52
This report and the information contained in this report is for the sole purpose of informing the public about Australian Paper’s efforts and achievements
in operating sustainably. It is to be read as a whole. Except where it has specifically consented in writing, Australian Paper does not consent to, or
warrant the use of, or reliance on this report or the information in it, for any other purpose.
contents

Our
People,
the fibre
of our
business.
Jim Henneberry
Chief Executive Officer
Australian Paper
2011 has been a challenging year for Australian Paper.
As most local companies in the manufacturing sector
have seen, Australia’s strong currency has proved to
be a major obstacle. Our company has been under
intense competitive pressure from imported papers
and our export markets have also been significantly
impacted. Despite these difficulties, the steps we have
taken in recent years to improve the sustainability of our
operations has strengthened our position in a difficult
marketplace.
In adverse market conditions, we have turned
challenges into opportunities by incorporating a
risk management approach. We have responded to
marketplace requirements. Our strategy this past year
has been to ‘think local’, ‘act local’ and continue to
improve efficiencies throughout the business. We’ve
been ‘operating smarter’.
2 a message from the CEO

We have a domestic market keen to buy Australian
made product. The opportunity is here for us to
truly consolidate our position as a proud and iconic
Australian company that customers want to support.
Australian Paper has, after all, clocked up over 140 years
of operation in its various forms. The acquisition of
the assets of local manufacturer Australian Envelopes
after they entered voluntary receivership in July 2011
provided us with a growth opportunity. We have
ensured the future of envelope manufacturing in
Australia and have further strengthened our position
in the marketplace. Australian Paper now has the
largest envelope manufacturing facility in the country.
Australian Paper will continue to look for growth
opportunities in the market to strengthen our economic
position in the marketplace.
A necessary consolidation of our stationery
manufacturing operation also took place, with the
closure of the Regency Park stationery manufacturing
plant in South Australia and relocation to Preston
in Victoria. Increased carbon neutral product has
been well received by customers across the board
and we are pleased to note that we achieved our five
year Forest Stewardship Council®
re-certification.
Our Preston manufacturing plant achieved Australian
Forestry Standard Chain of Custody certification which
now extends our certified product range to include
locally manufactured envelopes. Australian Paper
continues to be the largest industrial producer of base
load renewable energy in Victoria. We have also seen
improvements in safety with a cultural embrace of our
Zero Harm strategy at our Maryvale mill.
An invigorated response to external stakeholder
engagement through our Future Fibre Strategy, launched
in June, has also been essential in finding out what our
stakeholders expect from Australian Paper in terms of
sourcing an acceptable long term fibre supply.
Any shifts in fibre supply strategy need to be carefully
studied as what is determined today will still remain the
fibre sourcing solution over the next 30 years.
The Future Fibre Strategy will also include an increase in
plantation fibre to address the shortfall in our long term
requirements. This shortfall is due to the impact of fire
on our existing plantation supplier and the inability of
our 2007 Management Investment Scheme agreement
with Macquarie Investment to establish sufficient
plantations local to our Maryvale mill.
The strategy included a detailed study which explored
the feasibility of plantation supply from Western Victoria.
A small portion of this resource has proven to be viable
and the first deliveries of these additional plantation
volumes are anticipated for early 2012.
Continued engagement with diverse stakeholder groups
around future fibre sourcing will help us to continue
to balance our economic, social and environmental
performance and build mutually beneficial relationships.
In 2012, we will conduct a feasibility study into the
development of a major recycling plant at our Maryvale
mill. We want to ensure that increased customer
demand for recycled product can be met through local
manufacturing rather than imported sources. The
development of this plan would divert large amounts
of paper from landfill and provide further regional
employment in the Latrobe Valley.
In some areas, such as in water reduction, we haven’t
achieved the goals we set in the last reporting year. Our
partnership with the Gippsland Water Factory was set to
commence in 2011, however due to significant rainfall
in the period following the time of approval, the intake
of recycled water was not required. What truly became
evident in 2011 is that Australian Paper’s integration with
Nippon Paper Industries (NPI) in 2009 has improved
efficiencies across our operations. Through the adoption
of Japanese manufacturing best practice processes
at our Australian locations, our fixed costs have
significantly reduced.
Co-operation and support from our friends at NPI
has continued despite the devastating impacts of
the Japanese earthquake and tsunami in March 2011
on Japanese operations. We greatly appreciate NPIs
continued commitment to Australian Paper which has
become core to our sustainability as a business.
In 2012, Australian Paper will seek to maximise further
opportunities in the marketplace, through increased
distribution of product and expanding our range of
environmentally preferable products. We will also
continue to increase our production of renewable
energy and aim to further reduce our energy use and
waste per tonne of pulp and paper production across
our sites. While 2011 proved to be a challenging year for
Australian Paper, I firmly believe that we can continue to
turn challenges into opportunities. I’d like to encourage
the Australian manufacturing sector to demonstrate
that through innovation and the adoption of best
practice processes, Australian businesses can be smart,
sustainable and here for the long term.
Jim Henneberry.
a message from the CEO 3
AUSTRALIAN PAPER sustainability report 2011

More focus is given to highlighting our governance, risk
and compliance approach to business, which we believe
will also benefit other companies in the manufacturing
sector. A greater focus is also given to our people –
those who our CEO Jim Henneberry referred to as ‘the
fibre of our business’ in 2010. Greater engagement with
our internal stakeholders in 2011 gave us insight into
what really matters to them about the way we operate
our business and how we communicate with them.
Continuous improvement projects developed and
implemented by our staff demonstrate what we can
achieve as team members with shared objectives and
how we can remain a sustainable and viable business
in Australia.
With our second and future GRI reports, we intend to
increase the focus on how our business runs and better
articulate where we’re going. Put simply, we’re providing
more information to our stakeholders and encouraging
feedback so that we know what is expected of us.
We’re a corporate citizen – we believe a good one, and
our 2011 Sustainability Report aims to communicate this.
We welcome your thoughts.
Shaun Scallan.
The creation of my role in March 2011 marked a
concerted effort by the executive team to take
responsibility for sustainability throughout Australian
Paper. We recognised that we needed to communicate
our sustainability story in a way that shows that we are
accountable for our actions. The result of this of course
was the publication of our 2010 Sustainability Report
– our first report aligned with the Global Reporting
Initiative (GRI) framework.
It was important for Australian Paper to lay the
groundwork for future sustainability reporting using a
transparent and credible mechanism such as the GRI
framework. Last year’s achievement in publishing our
first report has also proved stimulating for our internal
and external stakeholders. Interest in our sustainability
practices is gaining momentum throughout our
operations and beyond.
For our 2011 report we have chosen to move from a
Level C report to a Level B report – hoping to broaden
our story as a business and to communicate our
strategic direction more effectively. It was the natural
next step in our sustainability reporting journey.
Message from Shaun Scallan,
General Manager, Corporate
Social Responsibility
Shaun Scallan
General Manager
Corporate Social Responsibility
Australian Paper
4 a message from the General Manager, Corporate Social Responsibility

sustainable paper
– the choice
Paper Company % Certified Fibre*
Australian Paper 85%
UPM Kymmene 78% (see: www.upm.com)
Stora Enso 66% (see: www.storaenso.com)
Mondi 61% (see: mondi.com)
Resolute Forest
Products
35% (see: resolutefp.com)
International
Paper
30% (see: www.internationalpaper.com)
Domtar 28% (see: Domtar.com)
* Certified fibre figures show the combined percentage of PEFC and FSC®
certified fibre and were sourced in June 2012 from publicly available
information
The procurement of sustainable paper products should
be defined by authentic sustainability criteria that
address key issues relating to environmental, social and
economic outcomes. Chain of Custody certification
allows fibre to be tracked through the supply chain to
its source. By incorporating a robust sustainable paper
procurement framework, businesses and individuals can
make a sustainable choice.
A growing number of businesses and individuals
understand the complexities of the sustainability criteria
in paper selection. However, we have some work to
do to raise awareness of the buying choices available
to Australian consumers. We see one of our roles as
educating businesses and individuals in their choice of
paper as there are far reaching environmental, social and
economic implications of their purchasing decisions.
In 2010-2011, Australia had a trade deficit of around $1.9
billion in paper products. This provides a strong signal
that a very large proportion of paper and paper products
available in Australia is imported – $110 million of this
deficit comprises commonly used white cut ream office
paper (see: www.industryedge.com.au).
Clearly this is negatively impacting our economy, and
impacting Australia’s opportunities to grow domestic
manufacturing and to increase local employment in the
paper manufacturing sector.
Many consumers may also not be aware that imported
paper flooding our market is often from countries
with controversial environmental and social practices.
Sustainability criteria such as the fibre source,
land acquisition and the treatment of traditional
landowners and factory workers may be difficult to
trace. Governance and transparency mechanisms are
often unclear.
Australian Paper is a proud Australian manufacturer.
Traceability of our products is clear, process to
determine low risk and certification of our fibre supply
is robust and we take seriously our responsibility to
support and work with our local communities.
Our commitment to PEFC and FSC® certified fibre
also benchmarks strongly against leading paper
manufacturers worldwide.
www.onpaper.com.au
sustainable paper – the choice 5

about this report
External assurance has not been sought for this
report, as Australian Paper undertakes assurance
activities around energy and emissions, and financial
data to ensure that data collection and reporting
methodologies and procedures are in accordance with
industry best practice.
This report provides an overview of Australian Paper’s
sustainability performance for the 2011 calendar year.
The Global Reporting Initiative’s ‘Guidance for Defining
Report Content’ document shaped the report structure
and content. Our next planned report will be our 2012
sustainability report, to be published in 2013.
Report Boundary
The report boundary has been extended from our
2010 report. Environmental data for this year includes
energy and greenhouse gas emissions for our Preston
manufacturing facilities. In 2010, we included this
information for our mills only. All other environmental
data represents activity at our Maryvale mill in Victoria,
and Shoalhaven mill in New South Wales unless
otherwise stated.
All information covers our Australian based divisions
only. Reporting on overseas divisions of Australian Paper
is beyond the report boundary. We do not anticipate
reporting overseas information in the foreseeable future.
There are no further limitations on scope or boundary.
Australian Paper’s 2011 Sustainability Report is the
second aligned with the Global Reporting Initiative’s
(GRI) sustainability reporting framework. We have
compiled this report in accordance with the GRI’s Level
B reporting requirements and the report has received a
GRI Application Level Check.
We progressed from a Level C to a Level B report
as part of our continuous improvement processes
and to provide greater detail of our environmental,
social and economic impacts throughout the
organisation and beyond. Moving to a greater level of
disclosure was influenced by a number of factors: our
stakeholders asked us to provide more information,
access to additional information available around
material issues at Australian Paper and any risk
associated with additional disclosure. Encouraged by
the overwhelmingly positive response to our 2010
sustainability report, our Risk Management team
approved the evolution of our report from a Level C to a
Level B for 2011.
The scope of our report has not changed greatly since
our last report in 2010, as although more in-depth
stakeholder engagement was undertaken in this
reporting year to determine material issues, we found
that according to stakeholder feedback most issues
remained the same. Greater focus has however been
given to fibre sourcing through discussion around
our Future Fibre Strategy and also to reporting on
more employee focused data as was the request by
internal stakeholders.
Restatements have occurred in some parts of the
environmental, social and economic sections of
the report as some historical data was inadvertently
reported incorrectly in 2010. Data has been corrected
and notated wherever restatements are required. Data
gathering processes in this area have been streamlined
to ensure correct reporting in this and future years.
No errors occurred that would significantly change
trends in environmental or social performance. Data
measurement models and techniques are described
throughout the report.
6 about this report

australian paper
– an overview
Our Product
Categories
Australian Paper manufactures and supplies a wide
range of papers for many end uses, from office paper
to invoices and statements, book and publication
papers, food wrappers and bags, paper for carton liners,
envelopes, coloured papers and boards. Watermarked
and embossed security and cheque papers are
manufactured and we convert stationery and envelope
products. We also manufacture certified pulp to use
in the production of our printing, communication and
packaging papers. Pulp is also sold to other businesses
such as tissue manufacturers.
Our Sales Volume
• 668,749 tonnes
Head Office
• Company head office is located in Melbourne,
Victoria.
Our Markets
• Primary:
— Australia and New Zealand business to consumer
and business-to-business markets
• Secondary:
— Australian Paper brands are exported through
our Paper Products Marketing (PPM) division
to over 70 countries in Asia, North America,
Latin America, Europe, Middle East, the Indian
subcontinent, Europe, Africa and Papua New
Guinea. PPM supplies 463,000 tonnes of paper,
including Australian Paper product to over 75
countries from more than 100 suppliers from
Australia, New Zealand, Asia, Japan, China, USA,
Europe and Brazil.
Our Pulp and Paper
Production
australian paper – an overview 7
totalpulpandpaper(‘000)
600
500
400
300
200
100
0
our paper and pulp production
918,458
2008
933,441
2007
920,698
2009
1,039,706
2011
986,937
2010
paper pulp

Our Company
Structure
Paper Australia Pty Ltd, trading as Australian Paper is
wholly owned by Nippon Paper Industries Co. Ltd.,
incorporated in Japan. Paper Australia Pty Ltd. wholly
owns and operates the Australian Office division in
Australia. Foreign entities listed below are all subsidiaries
of Paper Australia Pty Ltd., and operate Paper Products
Marketing (PPM).
Significant subsidiaries
and their divisions
Country of
incorporation
Ownership
Interest
Paper Australia Pty Ltd
• Australian Office Australia 100%
Paper Products Marketing
Pty Ltd
Australia 100%
Taiwan Ltd
Taiwan 80%
Hong Kong Ltd
Hong Kong 100%
Pty Ltd
Malaysia 100%
Singapore Pte Ltd
Singapore 100%
USA Inc.
USA 100%
PPM Frohlen-Reddeman
GmbH
Germany 100%
Our Brands
Australian Paper manufactured and owned brands are:
Our Operations
Australian Paper’s domestic operations comprise a
number of business units, each with its own capability
spanning manufacturing, production, printing, and sales
and marketing. Australian Paper’s mills are located in
Maryvale, Victoria and Shoalhaven in New South Wales.
Our envelope and stationery manufacturing is located
at Preston in Melbourne. Sales and marketing operations
are primarily located in Melbourne, and additional sales
offices are located in Queensland, New South Wales,
ACT, South Australia and Western Australia. Overprinting
machines are also located in Queensland, New South
Wales, and Western Australia.
Company Ownership
Australian Paper is an Australian Proprietary Company,
limited by shares and registered with the Australian
Securities and Investments Commission (ASIC). Nippon
Paper Industries Co. Ltd is the sole shareholder.
Our People
• 1368 employees Australia wide as at December 2011
Australian Paper
Australian Paper
Print
Offset
Web
Specialty
Transactional
Mail Security
Kraft liner board
Sack and
bag papers
Office Papers
Stationery
Envelopes
Integrated
Pulp and Paper
operation
Speciality and
Security Papers
Australian Paper
Packaging
Australian
Office
Maryvale
Mill
Shoalhaven
Mill
Export Sales
and
Global Paper
Trading
Paper Products
Marketing Group
(PPM)
8 australian paper – an overview

• Australian Forest Products Association (AFPA)
• Australian Industry Group
Our partnerships
• Monash University
• Swinburne University
• Australian Institute of Management
Awards
Safety
Australian Paper Maryvale mill received the Safety
Scheme of the Year Award from Manufacturer’s Monthly
magazine for the ‘Refresher Training Toolbox 24/7’
scheme launched in 2010.
The Victorian Association of Forest Industries (VAFI)
presented Maryvale mill with the Occupational Health
and Safety Award for best practice in OHS processes
and results.
Community
Maryvale mill was also the recipient of VAFI’s Local
Community Engagement Award, for ongoing outreach
efforts with the local Latrobe Valley community.
Corporate Social Responsibility
Australian Office received Corporate Express Australia’s
inaugural award for Corporate Social Responsibility
Supplier of the Year in recognition of Australian
Office’s proactive approach to further improve the
environmental credentials of Corporate Express’ Own
Brand copy paper as they transitioned from EXP to
Staples Carbon Neutral Copy Paper. The product is
certified to AFS, PEFC and NCOS. As Corporate Express
customers move from EXP products to Staples Carbon
Neutral, this will reduce carbon emissions equivalent to
taking 16,500 cars off the road each year.
Our Certifications
Products
• Australian Forestry Standard (AFS)
• Programme for the Endorsement of Forest
Certification (PEFC)
• Forest Stewardship Council®
• National Carbon Offset Standard (NCOS)
• Environmental Choice New Zealand
Sites
• Australian Forestry Standard (AFS) Chain of Custody
• Forest Stewardship Council® Chain of Custody
• ISO 14001 – environmental management (Maryvale
and Shoalhaven mills)
• NATA certified onsite laboratory at Maryvale mill
• ISO 9001 – quality management (all operations)
• AS 4801 – safety (Maryvale mill)
* Additional to our own certifications, we look for our suppliers to have
either certified product or fibre that meets the AFS/PEFC and FSC®
requirements.
Our Licences
• Environment Protection Authority (Maryvale and
Shoalhaven mills)
• Major Hazardous Facility (MHF) at Maryvale mill
• Australian Made, Australian Grown
Our Memberships
• FSC®
Australia
• AFS Limited
• WWF’s Global Forest and Trade Network (GFTN)
• Victorian Association of Forest Industries (VAFI)
• Timber Communities Australia (TCA)
• Standards Review Committee – Australian
Forestry Standard
australian paper – an overview 9

stakeholderengagement
andmaterialissues
• Develop and build working partnerships with
stakeholder groups
• Mitigate risk to our business and products
• Manage our reputation by providing open channels
of communication, and
• Explore innovative approaches to achieve
common goals.
We communicate with our stakeholders through
numerous methods such as our ongoing monthly
Community Consultative Committee (CCC) in
the Latrobe Valley in Victoria, annual community
consultation group at Shoalhaven, New South Wales,
face-to-face discussions, multi-stakeholder forums,
surveys, website, road shows, communications materials
and others.
Maryvale’s CCC provides feedback on environmental
improvement opportunities to ensure Australian Paper
activities are aligned with community expectation.
In 2011, a collaborative engagement workshop was
held with Australian Paper and EPA Victoria to further
improve responses to community complaints and
to look at ways to encourage direct communication
between the public and the Maryvale mill.
The majority of our stakeholder engagement activities
in 2011 centred on the review of Australian Paper’s
current fibre sources with a view to shaping our Future
Fibre Strategy to align with stakeholder expectations
where possible.
A number of formal engagement activities took place
including multiple face-to-face discussions with many
stakeholders, to ensure we were hearing as many voices
as possible. Australian Paper and these groups discussed
in detail, strategic planning and day-to-day aspects
of ours and our supplier operations, to effectively
and transparently communicate our plans and seek
stakeholder input and feedback.
Ongoing communications with our key stakeholder
groups is an essential part of our business and provides
an important platform from which we make informed
business decisions, shape our future strategies and
determine which issues are material and should be
reported on. Engaging with our stakeholders provides
us with an opportunity to better negotiate working
relationships, evaluate the potential impacts of our
business decisions and understand activities undertaken
by various stakeholder groups. Engagement also
helps us to achieve balanced economic, social and
environmental outcomes.
2011 saw a more formalised approach to stakeholder
engagement than in previous years. We took the time to
capture issues and concerns from numerous individuals
and organisations about our products and operations,
allowing us to group the issues by stakeholder group,
and prioritise material issues for action.
Through this process, our stakeholder groups were
identified as:
• Nippon Paper Industries (NPI) – our parent company
• Employees
• Customers
• Suppliers
• Federal, state and local government
• Non-Governmental Organisations (NGOs), including
Environmental Non-Governmental Organisations
(ENGOs)
• Unions
• Local communities, and
• Industry associations and groups.
With continued stakeholder engagement, Australian
Paper aims to:
• Understand the needs and wants of stakeholders
• Achieve the best possible outcome for all parties
involved, where possible
• Engage in open and transparent communications
10 stakeholder engagement and material issues

Key topics raised in the Future Fibre Strategy review included:
Issue Stakeholder
group
How we
engaged
What we heard Our response Resulting stakeholder
driven goals and targets
Environment ENGOs Directly
through
meetings and
also through
the Global
Forest Trade
Network
Preference for Western
Victorian plantation
fibre to replace
native regrowth fibre
supplies
We commissioned the
Poyry report to provide a
detailed analysis of fibre
sourcing options in Western
Victoria. Feedback on the
Poyry report was provided
Future Fibre Strategy
rollout
Concern about
Leadbeater’s possum
habitat from wood
production and fire
impact
Australian Paper instigated
a review of VicForests and
DSE practices. Site visits
were focused around the
protection of biodiversity
and water. We also asked
for ENGO engagement
for Future Fibre Strategy
development
Concern about illegal
logging
Australian Paper continues
to support GFTN principles
We will continue to
report annually against
the GFTN Trade Action
Plan 2011-2013
Would like stronger
certification for forest
management in
Australia
We engaged with ENGOs
on a review of AS4708 and
joined the standards review
committee
We will continue to
support strong protection
for biodiversity and
improved stakeholder
engagement through the
Timber Industry Action
Plan and Australian
Forestry Standard
State
Government
Meetings
and direct
engagement
The state government
is committed to
the protection of
biodiversity including
rare, threatened and
endangered species
We discussed directly
and wrote to the state
government to encourage
communications on
threatened species research
already underway
We will support events to
engage our stakeholders
with forest science
experts
Social Timber
Communities
Australia
Meetings
and direct
engagement
Concern about the
future of the timber
industry, particularly
with relation to
jobs availability and
security in timber
communities
We engaged with state
government and the
union to establish industry
support for continued
operations
We aim to gain industry
support from state and
federal government
Union Meetings Concern about job
security for members
Local
Government
– regional
Victoria
Meetings
and through
Timber
Towns
Concern about the
impact of the Ethical
Paper campaign on
the viability of the
forestry industry
and impact on local
communities
We provided factual
information on issues
of concern through our
information portal – Ethical
Paper – the Facts
We aim to ensure that
Municipal Association
Victoria (MAV) is
adequately informed of
the facts available related
to this campaign
Local
Government
– across
Victoria
Email and
invitation to
stakeholder
events
MAV members were
being encouraged to
support the Ethical
Paper campaign
(continued overleaf)
stakeholder engagement and material issues 11

Issue Stakeholder
group
How we
engaged
What we heard Our response Resulting stakeholder
driven goals and targets
Economic Government
– local, state
and federal
Directly
through
meetings
Concern about the
economic impacts
throughout the
local community
if jobs were lost as
a consequence of
a downturn in the
industry
We identified and
communicated these
impacts to the state and
federal government
Identify and develop
opportunities for
Australian Paper to
successfully continue
operations in regional
Victoria with industry
support from state and
federal government
Suppliers Directly
through
meetings
Concern for the
impact of supplier
economic viability if
they cannot source
sufficient wood
through various
impacts and decisions
rollout
Major
customers
Combined
meetings
with
customers
and ENGOs
Buying sustainable
products is important
We are committed to
sourcing certified wood
and communicating
sustainability information of
our products
rollout
Buying price
competitive and
Australian products is
important
We are committed to using
Australian fibre sources and
manufacturing locally
Products must be
price competitive
Locally manufactured
product will be
competitively priced if
we have available and
competitively priced fibre
sources
Support for recycled
paper and carbon
neutral product
We have broadened our
carbon neutral offering,
and hope to increase our
recycled product range
Carbon neutral products
will continue to provide a
significant portion of our
offerings, and a de-inked
pulp facility feasibility
study will be completed
in 2012
Australian Paper
brand reputation
is important for
customers to continue
to buy
We are committed
to transparent
communications with
our stakeholder groups in
coming years and have
undertaken major work
with industry bodies
We will continue with
focused stakeholder
engagement in coming
years
Clarification required
about the differences
between FSC®
and
PFEC/AFS certification
We are committed to both
standards and believe that
both standards can be
improved
Continue to maintain
FSC®
and AFS Chain of
Custody certification
As we progress with our stakeholder engagement,
we expect that our key stakeholder groups will look
to the Australian Paper sustainability report as a
transparent representation of our activities. We also look
to be guided by our stakeholders to determine future
material issues.
In 2012 we will:
• Develop a stakeholder engagement policy to provide
an ongoing framework for our engagement activities
• Develop formal internal stakeholder engagement
processes to reach out to more staff and employees
to receive feedback on our sustainability activities
and sustainability reporting
• Provide an online feedback mechanism to which
stakeholders can respond to our sustainability report.
Internal stakeholder feedback was sought through an
online survey to gauge opinions on our first GRI aligned
sustainability report released in 2011. The survey gave us
insight into employees’ awareness of Australian Paper’s
sustainability performance, further issues deemed
material for future reports, employee perception of our
company as a sustainable and responsible company,
and recommendations for improvement for the report
and the business. A number of environmental, social and
economic topics in this report are included as a direct
result of internal stakeholder feedback. Suggestions
for improvements in how we communicate our
sustainability report have also been taken on board.
Sustainability report briefings were also held with staff
and employees and information disseminated in the
weeks prior to publication.
Key topics raised in the Future Fibre Strategy review included (continued):
12 stakeholder engagement and material issues

future fibre strategy
Utilisation of existing
and other plantation
sources
The findings of the Poyry report did not reduce
Australian Paper’s need for additional plantation
and recycled fibre sources to meet long term fibre
requirements. As a result, in September, we announced
our plan to increase plantation inputs by maximising
usage from existing suppliers, utilising investment
plantations in Central Gippsland and accessing some of
the closest parts of the Western Victorian plantations.
Investigations are also being undertaken into the
feasibility of using other plantation sources. We are
completing trials to increase our plantation supply
yields and are negotiating to take additional volumes
from a new Victorian supplier. We are also looking
carefully at the creation of new plantations close to
our Maryvale mill.
Announced in June 2011, Australian Paper’s Future Fibre
Strategy details a 30 year planning window to our fibre
sourcing plans.
The strategy’s direction was informed by an extensive
stakeholder engagement program which reviewed
Australian Paper’s current fibre sources. As a result
of this engagement, we were able to shape the most
environmentally, social and economically viable long
term fibre sourcing strategy.
The review included discussion on the potential for
future fibre sourcing including plantation timber from
Western Victoria, other plantation sources, sustainably
managed wood from regrowth state forestry operations
and recycled fibre.
Investigating
plantation timber
sources from Western
Victoria
Plantations in Western Victoria were established
for the export woodchip market and were located
approximately 500km from Maryvale mill.
In response to a study written by the National Institute
of Economic and Industry Research (NIEIR), Australian
Paper commissioned an independent report from
global forestry experts Poyry Management Consulting
to investigate the viability of sourcing plantation timber
from Western Victoria to replace wood currently
sourced from managed regrowth.
The Poyry report ‘Review of Issues affecting the
Transition of Victoria’s Hardwood Processing Industry
from Native Forest to Plantations’ found that on a
large scale, sourcing plantation timber from Western
Victoria could not occur without significant long term
Government subsidy as the additional cost of delivering
wood to the Maryvale mill compared to that of managed
regrowth operations would be $31 million per year. (For
the full report: www.onpaper.com.au).
future fibre strategy 13

Sustainably managed
wood from regrowth
state forestry
operations
The harvesting of sustainably managed regrowth for
sawn timber produces significant quantities of low
grade residual wood which is ideal for paper making.
Australian Paper is one of the outlets for this wood
which would otherwise be left on site to rot or be burnt,
or sent overseas as woodchips. Australian Paper sources
this wood from VicForests and local sawmills.
The Victorian government estimates that certified,
sustainably harvested regrowth timber generates
approximately 11,000 jobs in forestry and downstream
processing, the majority of which are in regional areas.
Recycled fibre
Australian Paper is the only Australian manufacturer of
office, packaging and printing papers and supplies the
majority of the recycled paper sold in Australia each
year. The high grade de-inked recycled pulp used by
Australian Paper in recycled office and printing papers is
manufactured from local wastepaper at Amcor’s Fairfield
Mill in Victoria.
Due to the anticipated closure of the Fairfield plant from
mid 2012, Australian Paper will conduct a Feasibility
Study for a large recycled pulp facility at our Maryvale
Mill. Based on the size of the Fairfield plant, this facility
would more than triple Australian Paper’s usage of
de-inked recycled fibre and would significantly expand
the Australian market for recycled office and printing
papers. This plant would divert around 80,000 tonnes of
waste paper per annum from Australian landfill and also
support local employment opportunities.
The potential for a significant expansion in recycled
supply is a key component of Australian Paper’s Future
Fibre Strategy and an announcement on the recycled
feasibility study is expected in the third quarter of 2012.
14 future fibre strategy

governance
Board Charter and Risk Management Framework. Risk
Compliance Committee and OHSE Committee member
composition is decided by the Executive Committee on
the recommendation of subcommittee members.
Remuneration arrangements for Australian based
executives and directors are determined against
the same merits as all other Australian Paper staff
employees. Japanese director remuneration is
determined by NPI.
NPI directly assesses the board’s economic,
environmental and social performance.
Risk Management
Australian Paper has established an enterprise-wide
risk management process, consistent with the risk
management principles, framework and process of ISO
31000 Risk Management Principles and Guidelines. The
risk management governance structure is set out in and
governed by the Board Charter and Risk Management
Policy. Committee members are responsible for
reporting areas of risk within their business area.
Other senior managers involved in operational matters
are responsible for:
• Implementation of the risk management framework
and guidelines within their respective areas of
responsibility
• Reporting on the status of the risk register as part of
the annual planning and review cycle
• Ensuring compliance with the process requirements
for the risk assessment of new projects and contracts,
and
• Conducting an annual review, teaming up with senior
functional heads of risk.
Risk groups include group issues (financial, insurance,
legal and strategy), operational issues (mills and sales/
marketing), systems issues, human resources issues and
safety, health, environment and community.
Paper Australia Pty Ltd, trading as Australian Paper is a
private company. Financial reports are communicated to
parent company Nippon Paper Industries Co Ltd (NPI).
An appointed auditor audits our accounts each year,
and financial statements are lodged with the Australian
Securities and Investment Commission (ASIC) as
required by the Corporations Act (2001).
Our board
The Australian board of directors is elected by our
shareholder NPI and includes Australian Paper’s
Chief Executive Officer, Chief Financial Officer, NPI
Representative Director and NPI Tokyo based directors.
The Australian board of directors is comprised of five
males, and a female secretary.
Each director completes a declaration and consent to
become a director in which the director declares their
interests and makes a standing order under section 192
of the Corporations Act.
A chairman is elected at each board meeting, held three
to four times per year. Each board meeting provides
an opportunity for any director to give notice of any
conflict of interest.
Australian Paper’s Board Charter deals with the process
to be applied for the handling of any conflict of interest.
There are no independent directors, as non-executive
directors are employed by NPI or Paper Australia Pty Ltd.
Our Committees
An Executive Committee is a delegated subset of the
Board and is comprised of two executive directors
and one NPI representative director. An Occupational
Health, Safety and Environment Committee reports to
the Executive Committee and the Risk and Compliance
Committee. The structure, scope and reporting regime
for all committees, including member accountabilities
and responsibilities is set out in Australian Paper’s
governance 15

Code of ethics
Our code of ethics commits Australian Paper to the
following actions. We:
• Strive to be a safe, positive, preferred place to work
where high standards are upheld
• Commit to improve our own individual and team
performances, and to build our organisational
capability
• Uphold the highest level of integrity in meeting
customer and shareholder needs and expectations
• Ensure fair and transparent decision making where
our employees can be heard
• Accept that the best solutions may come from
different levels of the organisation
• Commit to being a highly regarded corporate
citizen, caring for the environment and positively
working with our local communities and broad
range of stakeholders.
Communicating with
our employees
Our senior managers, including the CEO and NPI
Representative Director, address and update staff
and employees on the state of business including
production, financial performance, market related
updates, external factors impacting on the business, and
major initiatives and actions taken in order to build a
sustainable business. Communications are undertaken
on a regular basis. Briefings are also provided for trade
union officials who represent our employees.
Communication of risks and recommended actions
is the responsibility of the individual to whom a risk
is allocated for review and is comprised mostly of
members of the relevant committee. The committee
members are also responsible for providing updates to
the committee when it meets.
The Risk and Compliance Committee usually meets
quarterly. Summary findings are reported to the
Executive Committee, Internal Audit and Board.
16 governance
Audit:
J-SOX
NPI Co Ltd
Executive
Committee
Board of
Directors
Risk and
Compliance
Committee
Internal Audit
Function
Occupational
Health, Safety
Environment
Committee

sustainability goals
and targets
Progress on 2011 sustainability goals and targets
Goals Targets Progress Commentary
Yes No In
progress
Environment
Uphold FSC®
fibre certification
Complete a full 5 year FSC®
re-certification audit
X
Review long
term future fibre
sourcing options
Consult a broad range of stakeholders
and invite participation in Future Fibre
Review
X
Review and implement Future Fibre
Strategy
X
Reduce water
use at Maryvale
mill
Gippsland Water Factory to supply
Maryvale mill with eight mega litres
of recycled water per day for use in
industrial processes from May 2011
X Approval for the project was received in
September, and increased demand on
Gippsland Water’s resources over the
summer period delayed provision of
recycled water
Achieve a 1% reduction in water use X Total water use increased by 4.3% due to
an increase in production
Reduce carbon
emissions
Reduce carbon emissions by 1% X Restatement required – target incorrectly
identified in 2010. Target should be a 1%
reduction of energy per tonne of pulp and
paper
1% reduction in energy per tonne of
pulp and paper
X Achieved a 0.562% decrease
Reduce waste at
Shoalhaven mill
Roll out a composting program where
recovered paper solids are converted to
compost
X
Reduce waste at
Maryvale mill
Introduce bins to the machine floor to
reduce metal waste
X
Introduce bins to recycle plastic,
aluminium, paper, stainless steel and
co-mingled metals
X
Introduce bins to the canteen area and
kitchens
X Will commence in 2012
Investigate battery recycling programs
for Maryvale
X
Look for innovative, alternative uses for
waste across operations
X Fibre Finders Project at Shoalhaven mill
Grits and dregs recycling proposal at
Maryvale mill
(continued overleaf)
sustainability goals and targets 17

Goals Targets Progress Commentary
Yes No In
progress
Safety
Increased
management
control and
improvement
of behavioural
safety at
Maryvale mill
Implementation of the Zero Harm OHS
Strategic Plan 2011-2015
X The strategic plan is tracking well
Improve safety
and reduce
safety risk at
Shoalhaven mill
Achieve separation of people and
mobile equipment where practicable
X To be completed in 2012
Implement a permit to work system X
Review working at heights and
complete upgrades to the paper
machine
X
Complete safe lifting upgrades X
Complete a joint investigation action
plan
X
Implement a cardinal rules, fair
treatment model and safety charter
X Cardinal rules and fair treatment model
has been completed. Safety charter in
progress
Implement a drug and alcohol policy X Will be completed in 2012
Improve safety
and reduce
safety risk at
Australian Office
Achieve WorkCover self insurance X Will be completed in 2012
Implement extra guarding on
machinery
X
Prepare for and implement new national
OHS legislation including compliance
codes
X Will commence in 2012 as legislation was
delayed
Implement individual site training plans X
Reduce noise on machines X Commenced in 2011 and will continue in
2012
Continuous Improvement
Implement
continuous
improvement
measures at
Australian Office
Continue the 5S lean manufacturing
process
X Will continue throughout 2012
Health and Wellbeing
Improve
employee
development
program at
Australian Office
Focus on employee development
program
X Developed a training matrix for all staff
and developed training plans for lead team
and high potentials as part of succession
planning
Improve the
health and
wellbeing of
Australian Office
staff
Hold seminars in conjunction with
WorkSafe in 2011 around programs on
diabetes
X Only a small number of employees were
identified as high risk. These employees
then contacted their own doctors.
Hold seminars through the QUIT Stop
Smoking campaign and reduce the
incidence of smoking onsite
X Cancelled – no plans to carry this into
2012
Progress on 2011 sustainability goals and targets (continued)
18 sustainability goals and targets

our sustainability goals
and targets for 2012
Goals Targets
Environment
Increase recycled fibre
options as part of the
• Conduct a feasibility study of whether a recycling
plant could be built at Maryvale mill
• Conduct a feasibility study to determine whether
developing a de-inked Pulp plant in Melbourne to
increase recycled fibre sources is feasible
Improve waste
management
• Work with suppliers to determine whether we
can collect data on both the type and volume of
waste being recycled
• Work with Monash University to find a regional
solution to reduce solid waste at Maryvale landfill
Improve energy
efficiency
• Continue to look for ways to improve energy efficiencies throughout our operations
Monitor wetlands • Carry out ongoing monitoring and management of the billabong and surrounding wetlands
Ongoing odour
management
• Finalise and submit the odour management plan
to the EPA
• Continue to monitor and report NOx and SOx – a
mandatory requirement of our operating licences
Stakeholder Engagement
Further develop
stakeholder
engagement policy and
processes
• Develop a stakeholder engagement policy
to provide an ongoing framework for our
engagement activities
• Provide an online feedback mechanism to
which staff and employees can respond to our
sustainability report
• Develop formal internal stakeholder
engagement processes to reach out to more
staff and employees to receive feedback on
our sustainability activities and sustainability
reporting
Safety
Improve safety and
reduce safety risk at
Maryvale mill
• Implement a contractor safety management
system and plant improvement plans
• Conduct Personal Protective Equipment and
Manual Handling risk reviews
• Develop an alcohol and drugs policy designed to
support and inform employees about managing
alcohol and drugs with relation to the workplace
• Undertake Major Hazardous Facility Licence
renewal with WorkSafe
• Undertake safety specific contractor inspections
• Develop an area traffic management plan
• Review dangerous goods management processes
• Roll out an emergency management plan
• Review leading indicators
• Continue WASP and Take 5 Steps behavioural
safety programs
Improve safety and
Australian Office
• Review and implement National OHS Legislation
against current systems
• Continue hazard risk reduction on machinery,
manual handling and noise
• Commence electrical safety review project
• Achieve additional OHS support by employing an
additional OHS professional
Improve safety and
Shoalhaven mill
• Finalise traffic management plan
• Implement a drug and alcohol policy
• Commence employee and contractor induction
program
• Finalise and implement the new permit to work
process
• Commence TPM Improvement and area based
teams in the finishing department
Maximise human
resource effectiveness
• Hire additional ex-Australian Envelopes staff to
fully support our increase in skilled staff in paper
converting
• See further consolidation in our head office, sales
and manufacturing operations to improve our
fixed cost base
• Continue with targeted employee development
opportunities
• Continue with our range of health and wellbeing
initiatives
Employee Development
Continue with
employee development
at Australian Office
• Further develop succession planning model
Improve training and
succession plans
• Create a talent council made up of senior executives to oversee Australian Paper’s training and
succession plans
sustainability goals and targets 19

Fibre sources 21
Biodiversity 23
Water 24
Water treatment 25
Energy and Greenhouse Gas Emissions 26
Transition to National Carbon Offset Standard 28
Waste and Recycling 28
Innovation in Packaging 31
Air Emissions 31
Improving Transport Efficiency through Rail 32
Responsible Product Labelling 33
Environ
ment

Our five year FSC® re-certification audit involved three
separate physical audits between September 2010
and July 2011, resulting in the renewal of our Chain of
Custody certification in August 2011.
Since 2008, Australian Paper has also been Chain of
Custody certified to the Australian Forestry Standard
which is the only forestry standard that is recognised by
Standards Australia. The AFS is globally endorsed by the
Programme for the Endorsement of Forest Certification
(PEFC); the world’s largest forest certification organisation.
Chain of Custody certification under the Australian
Forestry Standard and FSC®
means that Australian Paper’s
manufactured products can be tracked clearly from the
origin of the wood source, through the processing phase,
and finally, to the end product, ensuring confidence
in the responsible management of the entire paper
manufacturing and distribution process..
The proportion of fibre input sources remained relatively
unchanged in the last reporting year, with the greatest
inputs being plantation fibre and fibre sourced from
managed regrowth forests in Victoria. Waste paper
and de-inked pulp together comprise around 9% of our
fibre source and in 2011, 52,894 tonnes was used in our
recycled products.
Almost two thirds of our fibre is from hardwood and
softwood plantations, primarily grown in the Gippsland
region in Victoria. From early 2012 we also expect to
source additional plantation fibre from the closest parts
of Western Victoria.
Sustainably managed regrowth forests in the Central
Highlands of Victoria provide our second largest fibre
source. This wood is sourced from VicForests – a state
government owned enterprise. VicForests, together with
the Victorian government’s Department of Sustainability
and Environment (DSE) and Department of Primary
Industries (DPI), is responsible for protecting, conserving
and managing areas approved for timber harvesting.
VicForests abides by the mandatory legislative
requirements and codes of practice set by all tiers of
government and was an early adopter of voluntary
forest certification. VicForests operations are certified to
the Australian Forestry Standard (AFS).
While 2011 was a challenging year, our environmental
governance framework has provided a structure
for resilience. Moving beyond the requirements of
Australian Paper’s environmental policy to ensure the
‘effective use of energy, water and materials’, we have
implemented innovative and effective ways as part
of our continuous improvement commitment and to
reduce risk.
We intend to maintain this momentum in the coming
years and firmly endure as a successful example
of environmental innovation in the Australian
manufacturing sector.
As a result of our continuous improvement projects,
we have:
• reduced waste to landfill and subsequently minimised
cost – a key measure of sustainability
• re-engineered waste so that it is useful either in our
manufacturing processes or for other uses including
compost
• significantly increased our renewable energy
production using black liquor
• improved effluent treatment and
• decreased odour complaints.
Fibre sources
Sustainable fibre sourcing remains a focus for Australian
Paper. Our Future Fibre Strategy outlines plans to
increase plantation and recycled fibre from the current
ratio of almost two thirds.
Australian Paper is one of the foundation members of
FSC® Australia and has been FSC® Chain of Custody
certified since 2006. FSC® certificates are valid for
five years and annual surveillance audits are conducted
to verify continued compliance.
environment
environment 21

Key facts
• 86% virgin fibre is from certified sources
• 13% is sourced from saw mill waste
• 3% is sourced from private landholders
• 85% of fibre sourced was Australian Forestry
Standard certified
• 47% is FSC®
certified.
Is plantation wood more
sustainable than managed
regrowth wood?
The broader issue of whether plantation wood
is more sustainable than wood from managed
forests is complex. Most major office paper
manufacturers in Europe and North America do
not place an emphasis on plantation sources and
source the majority of their fibre from managed
natural forests, choosing to focus on certification
as the material issue. In this way the whole tree
can be utilised with high grade wood being used
for sawn timber and low grade wood being used
for paper manufacturing. The trees are then
regrown using local seed to maintain biodiversity.
Certainly from an FSC®
perspective, the emphasis
is on the responsible management of natural
forests for wood production. By area, only 8.4%
of FSC®
certified forests worldwide are plantations.
63.5% of FSC®
certified forests worldwide are
natural forests and 28.1% are a mixture of natural
forests and plantations (see: www.fsc.org).
22 environment
fibre inputs
imported pulps
managed regrowth*
*including sawmill waste
de-inked pulp
waste paper
plantation*
47%
262,960
tonnes
37%
210,911
tonnes
7%
37,177
tonnes
3%
17,456
tonnes
6%
35,438
tonnes
tonnes
600,000
500,000
400,000
300,000
200,000
100,000
0
total fibre source
waste paper de-inkedwood imported pulp
2007
504,404
38,238
11,740
63,581
390,845
515,073
32,442
15,447
50,746
416,438
2008
489,905
33,403
14,971
32,399
409,132
2009
536,456
36,968
19,061
30,084
450,343
2010
563,942
35,438
17,456
37,177
473,871
2011
1,700,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
wood purchased
cubicmetres
2008
1,476,586
2009
1,454,784
2010
1,591,907
2011
1,674,684
2007
1,413,411

Biodiversity
Australian Paper’s ethos is to encourage our fibre
suppliers to protect the biodiversity found in
Victoria’s forests.
Australian Paper works with managed regrowth wood
supplier VicForests to ensure that Victoria’s uniquely
diverse forest fauna species are protected through
the stringent management of commercial forestry
practices. VicForests values forest biodiversity and all
operations comply with the legislative framework that
governs sustainable timber harvesting in Victoria. Our
suppliers adopt the precautionary principle where there
is the threat of serious or irreversible damage to the
environment, in addition to a range of instruments to
protect biodiversity.
This framework protects a range of environmental
values present in our forests and requires various
measures to be put in place when harvesting operations
are undertaken. These measures can include:
• Retaining habitat trees to allow for nesting
• Retaining seed trees to help regenerate the forest
• Retain buffer zones alongside rivers, creeks and other
key environmental features, and
• Retaining additional protection zones where
no harvesting is permitted or where harvesting
operations are modified.
This legislation also requires the protection of threatened
species and their habitat including Leadbeater’s Possum,
listed as endangered on the IUCN Red List.
Victoria has 4.8 million hectares of National Park and
conservation reserves which protect habitat for rare and
threatened species.
Additional measures are also used to protect species
and potential habitat in our state forests, including
an assessment of all areas prior to harvesting. This
process commonly involves the exclusion of forest from
harvesting. Specific fauna surveys are also undertaken
in forest deemed likely to contain rare or threatened
species. If a threatened species is detected during a pre-
harvest survey, harvesting operations are managed to
ensure habitat for the species is adequately protected.
Methods adopted within the pre-harvest surveys are
well known and commonly used and tested research
techniques. Survey methods continue to be updated and
refined ensuring an adaptive approach to threatened
species management.
Special Management Zone Plans have been created by
VicForests to appropriately manage operations in areas
where rare or threatened species have been recorded.
These Special Management Zone Plans may result in the
exclusion of harvesting in some areas and modifications
to harvesting operations in others to ensure adequate
suitable habitat is protected. Survey results are
forwarded to DSE for addition in the Victorian Wildlife
Atlas to improve our understanding of how native fauna
is utilising our forests.
In the future, VicForests will:
• Continue to investigate the role of regenerating
forests as a source of habitat for native fauna
• Ensure communication channels are developed and
maintained between DSE and VicForests and other
research institutes to ensure a co-operative approach
for the management of target species
• Continue to review its survey methodology to ensure
it remains adaptive and best placed to manage
biodiversity in Victoria’s State forests.
Key facts:
• Around 6% of Victoria’s 7.8 million hectares of
native forest is available and suitable for wood
production
• VicForests harvests around 5,000 hectares each
year which is less than 0.07% of the total forest
• All harvested areas are fully regenerated with the
original mix of local species
environment 23

Water
Although we have been fortunate that drought
conditions of previous years have subsided, we
recognise that conserving and managing water
is important to prepare for the unknown. Paper
manufacturing is a water intensive activity and our
responsibility is to ensure that our water usage and
water quality is effectively managed throughout our
operations. Our goals are to:
• Reduce our total raw water intake from Moondarra
Dam in Victoria and the Shoalhaven River in New
South Wales
• Reuse water where possible
• Use recycled water when that option becomes
available
• Meet or exceed all legislated water requirements.
Water Use
In the last reporting year, Australian Paper set a target
of reducing water across mill operations by 1%. Despite
our best efforts, total water use at Australian Paper
mills increased by 4.3% in 2011 due to an increase
in production. Water use per tonne of pulp and
paper however, has slightly decreased as a result of
implementing operational efficiencies. We maintain our
commitment to the EPA to source less than our total
water limit of 33,000 mega litres per annum inclusively
at our mills.
Australian Paper’s partnership with the Gippsland Water
Factory to treat Maryvale mill’s trade waste associated
with odour successfully commenced in the reporting
year. Victoria’s Department of Health also provided
approval in September 2011 for the Gippsland Water
Factory waste treatment plant to supply recycled water
to the mill.
However, during this period, Gippsland Water’s storages
were at capacity due to significant levels of rainfall and
the production of recycled water was not required.
When available, we anticipate that the water factory will
supply the mill with up to eight mega litres of recycled
water per day for use in the mill’s industrial processes.
Note:
• 2010 data corrections are included
• Data is for Maryvale and Shoalhaven mills only
• An error occurred in the data presented on water use in our 2010
sustainability report due to the use of internal reports produced through
different operational areas at our mills. To improve the reporting process for
our sustainability reports, from this year custodian data sourced from our
water supplier is included as the total water use figure. Operational area data
continues to be collected for continuous improvement purposes.
Billabong Management Plan
We reported in 2010 that mercury contamination was
detected at Maryvale mill’s billabong. The billabong is
located at the north east of the site adjacent to the Latrobe
River and is situated on the Latrobe river floodplain. We are
continuing to monitor the billabong and there have been
no significant changes in water conditions.
Although mercury concentration levels were found to
be within Australian and New Zealand Conservation
Council guidelines, Australian Paper has committed
to minimising the impact on the ecosystem by
implementing a billabong management plan using the
Index of Wetland Condition (IWC).
24 environment
2007
totalMlwater
27,000
26,000
25,000
24,000
23,000
22,000
water use
total water kl/t
2008
kl/tonnepulpandpaper
2009 2010 2011
23,11022,889 23,322 23,413 24,431
maryvale pulp mill upgrade
27.0
26.0
25.0
24.0
23.0
22.0

In 2012, we will:
• Carry out ongoing monitoring and management of
the billabong and surrounding wetland.
Water treatment
Effluent Management
Effluent management at our mills has continued to
be successful, with no major spills into waterways
occurring during the reporting year. Biological oxygen
demand (BOD) loading from river and sewer outlets at
our mills for 2011 were 1.75 kg per tonne of pulp and
paper. Calculations provided in 2010 included river
outlets only. Chemical oxygen demand (COD) was 9.83
kg per tonne of pulp and paper. From 2012, we will
report on COD figures instead of BOD as EPA licence
conditions and reporting requirements have changed
and no longer require recording of BOD.
The IWC framework, developed by Victoria’s
Department of Sustainability and Environment provides
a series of indicators to measure aspects of the
billabong’s soil condition, water properties and quality,
and wetland catchment (see: www.dse.vic.gov.au).
By incorporating the framework into Maryvale mill’s
billabong management plan, we will be able to
determine whether any significant changes to the
wetlands are the effects of natural or human-induced
activities.
Implementing the management plan will also ensure
that we have a best practice approach to managing
and preserving ecosystem health within and around
the billabong.
The billabong management plan also outlines an
ongoing monitoring program, review of alternative
remediation strategies and a schedule to provide regular
feedback to the Community Consultative Committee.
Case study: Waste water
temperature control reduces water
and energy use at Maryvale mill
With the start-up of the new Gippsland Water Factory,
Maryvale mill needed to reduce the temperature of trade
waste water for processing from less than 42 degrees
Celsius to less than 40 degrees to meet the new
processing requirements.
While the mill had always cooled trade waste water for
processing, an upgrade of the main sewer pump was
needed to meet these new requirements.
Prior to implementing the waste water temperature
controls, trade waste was cooled by dilution with
additional cooling water. This not only increased the
volume of waste water being sent to the Gippsland
Water Factory, but also increased the mill’s total water
usage and subsequently increased energy costs due to
the cooling of water. In the summer months, up to four
mega litres of water per day was added to cool the trade
waste water.
Three opportunities to reduce temperature, water
use and energy use were identified through auditing
process streams:
1. One stream of very hot and clean water from the
batch mill evacuation cyclone previously used in
processing was diverted out of the trade waste
system into the waste water system. A five cubic
metre tank, pump, 160 metres of piping, and
associated instrumentation were fitted
2. A small section of piping was redirected and an
additional stream of acid effluent added into the heat
exchange so that heat could then be used to warm
another water stream in the system (less steam was
used as a result). The heat exchanger was originally
bypassed by this effluent stream because of concerns
about scale build up in the heat exchanger. Scale
build up is being monitored, and a spare plate pack is
now on hand to facilitate changing as required
3. The bleach plant acid heat exchanger was expanded
to increase cooling capacity. Extra plates, with
associated piping modifications, were installed.
This heat was again used to warm the warm water
system, reducing steam use requirements.
The outcome of this project was:
• A reduction in trade waste temperature of up to
6.8 degrees
• A reduction of energy use and expenditure, and
• A reduction of up to four mega litres of water use per
day in summer months.
environment 25

Purchased electricity accounts for 5% of our total energy
use – equating to 42% of our carbon emissions output.
While this is the first time that direct and indirect energy
usage has featured in our sustainability report, historical
data collated shows that direct energy consumption has
fallen by 4%. This is due to efficiencies achieved through
the increased recovery of black liquor solids. Indirect
energy consumption has increased by around 16% in
2011 due to various factors, including the larger than
usual increase of paper machine downtime. Greenhouse
gas emissions trends are reflected in these figures.
Carbon emissions per tonne of pulp and paper produced
has remained relatively stable.
Improvements in effluent
treatment at Shoalhaven
The decision was made to recommission a biological
tank (part of the effluent treatment plant) to deliver a
long term reduction in BOD concentration and load.
This resulted from exceeding the BOD licence limit in
2010, Shoalhaven mill needed to improve the effluent
management processes. Within two months, an average
of 30% reduction in BOD was evident.
Energy and
Greenhouse Gas
Emissions
Pulp and paper manufacturing is an energy intensive
process. Australian Paper derives energy from renewable
energy and direct energy sources from fossil fuels such
as natural gas, liquefied petroleum gas (LPG), diesel and
petrol. We also purchase electricity, an indirect energy
source, to operate manufacturing, processing and office
sites located around Australia.
Significant progress was made in increasing renewable
black liquor biofuel energy production at Australian
Paper’s Maryvale mill during the reporting year. A 13%
increase in black liquor production since 2010 was the
result of the upgrade of existing evaporating systems at
the mill.
The upgrade has enabled us to produce black liquor
at a higher solids concentration than was previously
possible. This renewable energy source accounts for
49% of our total energy use at our manufacturing sites
and was Australian Paper’s primary source of energy in
2011. Maryvale mill is the largest industrial generator of
base load renewable energy in Victoria.
Note:
• 2007 and 2008 data for black liquor solids reported in the 2010
sustainability report were underestimated and have been correctly
recalculated for this report using the Australian Government’s National
Greenhouse Accounts Factors workbooks
• Black liquor is produced only at our Maryvale mill.
26 environment
tonnes(‘000)
700
600
500
400
300
200
100
0
black liquor solids – biofuel production
502,372
2007
504,816
Maryvale pulp mill upgrade
2008
598,739
2009
587,874
2010
664,165
2011

Note: Data for Maryvale and Shoalhaven mills only.
In 2012, we will:
• Continue to look for ways to improve energy
efficiencies throughout our operations.
Note:
• Data for Maryvale and Shoalhaven mills only
• CO2e – figures reported in the 2010 sustainability report were
underestimated and have been correctly recalculated for this report
using the Australian Government’s National Greenhouse Accounts
Factors workbooks.
environment 27
GJ(‘000)
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
energy use
total energy ‘direct’renewable energy total energy ‘indirect’
Preston data included
for 2010 and 2011
2008
6,229,413
7,897,714
768,434
2007
6,259,718
8,123,963
788,069
2009
7,424,364
7,905,869
717,315
2010
7,289,638
7,778,797
731,300
2011
8,235,646
7,465,525
852,361
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
CO2-e emissions by energy source
tonnesCO2-epertonneofpulppaper
gas electricity
0.726
0.289
0.437
2008
0.717
0.292
0.425
2007
0.708
0.269
0.439
2009
0.632
0.265
0..367
2011
0.642
0.239
0.403
2010
sources 0.01 tonnes CO2-e per tonne of pulp paper have not been
included in the graph and are provided below
2008 2009 2010 2011
black liquor 0.004 0.005 0.005 0.005
coal 0.002 0.000 0.000 0.000
other 0.004 0.010 0.004 0.004
note:
CO2
-etonnes(‘000)
500
400
300
200
100
0
direct and indirect greenhouse gas emissions
direct emissions indirect emissions
2008
411,276
265,433
2007
434,930
272,282
2009
411,185
247,583
2010
404,602
243,312
Preston data included
for 2010 and 2011
389,156
282,963
2011
Note: 2010 and 2011 data includes usage by Maryvale mill,
Shoalhaven mill and Australian Office manufacturing operations
in Preston, Melbourne.
CO2
-epertonne
0.78
0.76
0.74
0.72
0.70
0.68
0.66
0.64
0.62
0.60
CO2
-e per tonne of pulp and paper 2011
2008
0.74
2007
0.76
2009
0.72
2010
0.65
2011
0.64

In recognition of successfully transitioning to the NCOS
standard, Mark Dreyfus QC MP, Parliamentary Secretary
for Climate Change and Energy Efficiency visited the
Maryvale mill to award Australian Paper carbon neutral
certification for our range of premium carbon neutral
paper, including Reflex Carbon Neutral and our full range
of carbon neutral office paper, printing and publishing
grades. The award covered both the Maryvale and
Shoalhaven mills.
Waste and Recycling
Waste paper recycling depot, Maryvale Mill, regional Victoria.
We are committed to managing waste responsibly
and use a defined waste hierarchy to minimise waste.
As with most manufacturing processes, generation of
waste is unavoidable, however, what we can do is try to
minimise waste generated, and reuse and recycle the
many different types of waste associated with paper
manufacturing processes. Innovative ways of reducing
waste to landfill by transforming it into other useful
materials has been part of our continuous improvement
process in recent years. In 2011, total waste to landfill
volume decreased by around 8% at our Maryvale and
Shoalhaven mills, continuing a downward trend since
2007. This result is even more impressive given our
production volumes increased over this time.
Transition to
National Carbon
Offset Standard
In 2011, we successfully transitioned from the Federal
government’s Greenhouse Friendly program to the
National Carbon Offset Standard (NCOS).
This transition allows Australian Paper to continue to
manufacture and sell a wide range of 100% certified carbon
neutral products in accordance with the NCOS standard.
Australian Paper purchases carbon offsets, also known as
abatements, from internationally qualified offset schemes
such as Verified Carbon Standards and Gold Standards.
These schemes are approved by NCOS who also verify
Australian Paper’s purchase of carbon offsets each year.
These offsets are additional to those committed to by
Australia’s national emissions reduction targets under the
Kyoto Protocol. In the reporting year, Australian Paper
invested in greenhouse gas reduction projects from
around the world such as switching high carbon intensity
fuels for a lower intensity (biomass), hydro power, wind
power and converting landfill gases to generate electricity.
In 2011 we saw a slight reduction in CO2-e per tonne of
paper manufactured from 2010, however an increase in
sales of certified carbon neutral grades meant that the
total amount of offsets purchased to achieve zero net
emissions also increased to 41,140 tonnes.
Shaun Scallan, General Manager, Corporate Social Responsibility and
Mark Dreyfus QC MP Parliamentary Secretary for Climate Change and
Energy Efficiency.
28 environment

Solid Waste Reduction at
Maryvale mill
2011 saw the rollout of a solid waste reduction
management plan at our Maryvale mill. The recycling
initiative is part of a longer term solid waste reduction
plan that also includes the recycling of wood fibre waste
into compost material as part of the PineGro initiative,
and also the recycling of other solid inorganic materials
from the paper manufacturing process.
The objectives of the management plan are to:
• Reduce the overall amount of consumer and
industrial waste generated throughout the mill going
to landfill by recycling
• Engage with mill employees and communicate the
value of recycling onsite
• Encourage participation by employees and build a
sense of ownership around the initiative.
Consumer waste (materials brought into the mill)
included glass, paper, plastics, aluminium and stainless
steel, and industrial waste (waste generated in the
manufacturing process) included metal offcuts from the
machine floor and plastic packaging materials.
Information about the solid waste recycling initiative
was communicated to employees through meetings,
notices and newsletters.
The initiative was rolled out in three phases throughout
the three key areas of Maryvale mill:
Phase 1 – Production Areas
Four different coloured 240 litre plastic wheelie bins were
introduced into the production areas of the mill. Each
bin is clearly labelled with the respective waste type to
educate staff members on how the waste is separated, and
encourage the correct separation of waste.
Phase 2 – Machine Floor
Larger tipper bins and skip bins were set up to collect
industrial waste such as metal offcuts and mixed metals.
Waste Hierarchy
Avoidance
Reuse
Recycling
Recovery of energy
Treatment
Containment
Disposal
Note: Data for Maryvale and Shoalhaven mills only
Key waste streams generated across Australian Paper
mills and manufacturing divisions are:
Waste type Disposal
method
Total
(tonnes)
Recovered fibre waste, sludge
(RPS), pine wood fine and bark,
eucalyptus wood fines and bark,
effluent solids recovery sludge
and sewer and secondary sludge
Composting 44,721
Mixed metals, paper, cardboard,
LDPE, co-mingled and plastics
Recycling 3,333
Mixed waste Landfill 34,477
Black liquor solids Recovery 664,164
environment 29
cubicmetres(m³)
120,000
100,000
80,000
60,000
40,000
20,000
0
waste to landfill
total m³/t
m³/tonneofpulpandpaper
2010
37,295
2011
34,316
2008
84,524
2009
37,437
0.140
0.120
0.100
0.80
0.60
0.40
0.20
0.00
2007
96,303

To improve fibre recovery rate, the cyclone process was
reconfigured simply by changing the separation method,
resulting in more effective separation of dirt from fibre
than the traditional four stage cyclone process.
The rejected fibre is recovered and tested to determine
whether the waste product is suitable for composting.
A certificate of compliance is issued by the mill manager
and sent to a third party to be converted into locally
manufactured compost. Approximately 861 tonnes of
fibre waste material was sent to composting in 2011.
Fibre loss from this production area has dropped from
an average of 0.27 tonnes per day over the previous 18
months, to 0.07 tonnes per day over the 9 month period
to December 2011.
Forming board and foil boxes have also been replaced,
allowing more fibre to be retained during the orientation
and formation of paper.
Shoalhaven mill reached the 3% reduction target six
months ahead of schedule.
Exploring innovative waste to
landfill solutions at Maryvale mill
In 2011, Maryvale investigated alternative solutions
to landfill for grits and dregs, a by-product of our
waste stream.
When lime is mixed with green liquor in a lime kiln,
‘grits’ are produced. Maryvale mill explored the option
of using grits as a road stabilisation product, however,
technical results were inconclusive and the project was
economically unviable.
Maryvale mill also investigated the option of grinding
grits and returning them into the manufacturing process
to capture still useful residual lime. This innovative
project is currently in the works approval development
stage with the Environment Protection Authority. Should
the project be approved, a significant reduction in raw
material inputs, and subsequent high recycling rates of
grits will contribute to our ongoing mission to reduce
waste to landfill.
Phase 3 – Offices and
Administrative Areas
Smaller bins were introduced into the offices and
administrative areas of the mill. Each of these bins
are labelled with visual aids and instructions that
correspond with the labels and instructions on the
larger 240 litre wheelie bins. Staff members voluntarily
empty the smaller bins into the larger bins.
Key Outcomes
As well as a reduction in solid waste going to landfill,
feedback from staff has been positive and greater
employee engagement has been evident with
employees negotiating the location of bins and
improvement of bin labels over time.
In 2012, we will:
• Work with suppliers to determine whether we can
collect data on both the type and volume of waste
being recycled. Currently only the volume of waste
to landfill is calculated. Collecting data such as waste
type and volume will aid in benchmarking and
provide a better method of waste management so
that accurate future targets for solid waste reduction
can be set.
Over time, Australian Paper’s Maryvale mill hopes to
introduce recycling of up to 20 types of waste generated,
including batteries, rubber, wood, and e-waste.
Fibre Finders Project at
Shoalhaven Mill
As part of parent company Nippon Paper Industries’ (NPI)
continuous improvement plan, a review of Shoalhaven
mill’s fibre recovery process was undertaken in 2011, and
a target was set to reduce fibre loss from 5% to 3% by June
2012. The aim of the Fibre Finders project was to increase
fibre recovery rate throughout the Shoalhaven mill.
Separation and cleaning of stock prior to fibres
entering the paper machine was identified as an area
for improvement.
30 environment

Extensive trialling was undertaken within the mill and
the supply chain, including the transporting of product
with the new wrapper to Queensland and back to
Victoria, to test how heat and humidity would impact
the altered technical specifications. A 2.8% reduction in
wrapper size was achieved, which translated to a saving
of 35 tonnes per annum of raw materials used in 2011.
Improving our envelope
packaging
The Australian Office division instigated a project to
improve and reduce the amount of packaging across a
range of highest selling envelopes manufactured at our
Preston manufacturing facility.
The project involved an assessment of current envelope
and packaging dimensions to identify potentially too
much air space which could not only compromise the
product and packaging due to inadequate containment
and strength of the cartons but also offer an opportunity
to reduce the amount of packaging materials required.
A smaller carton has been considered as a potential
replacement which reduces the footprint of the
packaging, raw materials, movement and potentially the
amount of damaged goods (products and cartons).
Air Emissions
Australian Paper is required to report on air emissions to
the Federal Government’s Department of Sustainability,
Environment, Population and Communities. An
annual report is submitted to relevant State authorities
for verification and then forwarded to Australian
Government for annual publication.
Oxides of nitrogen (NOx) and sulphur (SOx) are
produced as a by-product of combusting fossil fuels at
our Maryvale and Shoalhaven mills and can sometimes
cause odour. These air emissions are monitored and
calculated using a guide and sector specific manuals
provided by the Government.
Additionally, the mill is looking for ways to reduce waste
to landfill by washing ‘dregs’. Dregs are the by-product
of insoluble unburned carbon and inorganic impurities
contained in green liquor and are removed in a series
of clarification tanks. This by-product may be suitable
for composting.
The project is currently in the design phase and different
washing options are being evaluated.
In 2012, we will:
• Work with Monash University to find a regional
solution to reduce solid waste at Maryvale landfill.
The university will investigate the possibility of
combining specific by-products from local mining
activities and waste from Maryvale to develop
a buffering component that may assist in the
prevention of leaking metals used by industry.
This project will further reduce waste to landfill.
Progress on these projects will be reported on in 2012.
Innovation in
packaging
As a signatory to the Australian Packaging Covenant,
Australian Paper is constantly investigating ways to
reduce the footprint or weight of packaging and to
reduce waste.
We outsource production of two major packaging
components (cartons and wrappers) to Australian
suppliers and partner with them to ensure that the ideal
packaging outcomes for our products are achieved.
Two significant improvements in packaging were
achieved to improve the sustainability of our envelope
and office paper manufacturing in the reporting year.
Wrapper surface area
reduction project
Australian Office saw an opportunity to reduce the
amount of raw materials used in the packaging of
Australian Paper A4 manufactured copy paper.
environment 31

Improving Transport
Efficiency through Rail
L to R: Jim Henneberry, the Hon Peter Ryan MP, Russell Northe MP,
Cr Sharon Gibson, Deputy Mayor of Latrobe City.
Australian Paper looks for the most efficient and
sustainable ways to minimise impacts on the environment
in transporting products around the country.
The construction of a new 15 metre single span concrete
bridge was undertaken to replace a deteriorated wooden
trestle bridge so that a greater volume of paper could be
transported via rail rather than relying on heavy vehicle
transport on local roads. A 5.7 kilometre rail spur line
linking the Maryvale mill to the main Victorian regional
rail line at Morwell has been operational since the
1930’s. Given the critical role rail plays in the overall
uplift and movement of paper volumes from the
mill, the installation of the new bridge was timed to
coincide with a major Maryvale maintenance shut in
February 2011.
Odour complaints occur when certain atmospheric
conditions combine such as the absence of wind
distribution and rainfall occurrence, which makes
odour detectable in surrounding areas. 2011 saw a 34%
decrease in odour complaints from 2010 at our Maryvale
mill. As part of our engagement with the EPA, we have
committed to undertaking odour modelling, measuring
and abatement activities for diffuse odours across the
mill. Pleased with our commitment, the EPA requested
an odour management plan to provide further detail of
our planned activities.
Australian Paper commenced planning preparation
for the odour management plan in late 2011. The plan
lays out processes to measure odours across the entire
Maryvale site and develop a modelling technique
to determine odour impact on the surrounding
Traralgon area.
As part of our partnership with Monash University,
a student from Monash University has been invited
to work on the odour management plan and senior
management has committed to funding allocation
following approval of the plan by the EPA.
In 2012 we will:
• Finalise and submit the odour management plan
to the EPA
• Continue to monitor and report NOx and SOx –
a mandatory requirement of our operating licence
32 environment
tonnes
800
700
600
500
400
300
200
100
0
NOx and SOx
NOx SOx
683 335
Note: Maryvale and Shoalhaven mills data for 2011 only
Note: Maryvale mill data only
100
80
60
40
20
0
external odour complaints
2007
32
2008
73
2009
20
2010
29
2011
19
complaintsperyear

Packaging design is coordinated with the brand
management teams and includes a review by our Legal
Counsel for any new products or significant consumer
design alterations. This ensures compliance with the
variety of consumer packaging regulations and relevant
certification or licensed logos featured. Great care is
taken to deliver clear messages to our consumers and
business customers.
Television advertising is approved by the Advertising
Standards Board and any communications around the
FSC® is reviewed by the FSC®.
Sales and marketing staff undertake Trade Practices
training every two years to ensure compliance
with legislation.
Product technical information sheets are available for
all food and industrial paper and packaging products.
Australian Paper’s packaging grades undergo regular
testing in an accredited third party laboratory to verify
conformance with USFDA and/or European Regulation
requirements.
Internal systems to manage changes in packaging
are constantly in transition to ensure that customer
expectations are met.
The rail line is integral to transporting paper products
to the Melbourne Export Wharves, Brisbane, far north
Queensland and Perth. Construction of the new bridge
ensured the ongoing availability of approximately
300 train round trips every year between Maryvale
and Melbourne and prevents the need for up to 24,000
additional truck movements on our roads every year.
Had the rail bridge not been upgraded, heavy vehicle
transport would have provided an unsustainable
transport alternative.
The project was supported by Regional Development
Victoria.
The key outcomes of this project are:
• An increase in rail usage by the mill
• An increase in rail volumes transported (200 kt
in 2010 to 250 kt in 2011 – increased production
required increased rail volumes)
• A reduction in potential heavy vehicle transport on
local roads
• A reduction in greenhouse gas emissions
Key facts:
• The existing rail operations emit ~1,634 tonnes
of carbon emissions. If this task was conducted
using road transport, carbon emissions would
be ~4,906 tonnes.
• Rail is ~33% more energy efficient than road
transport
• The rail operation uses less energy and
produces less greenhouse gas emissions than
road transportation
Responsible Product
Labelling
Australian Office employs a full time Packaging
Development Manager within the marketing function,
with the expertise and skill set required to effectively
liaise with internal functional teams and external
suppliers involved in our robust artwork design and new
packaging development process.
environment 33

Employment terms and conditions 36
Our Workforce 36
Safety 38
Our Safety Performance 38
Development and Training 42
Continuous Improvement at our Mills 43
Employee Benefits 44
Employee Rights 44
Health and Wellbeing 44
Supporting the Community 45
People

We have maintained our formal graduate and
apprenticeship programs, and also explored
opportunities available from closer relationships with
tertiary institutions.
Australian Paper has continued its commitment to
the health and wellbeing of our employees and has
maintained an umbrella of workplace initiatives across
all operations.
Two significant changes occurred at our Australian
Paper’s Australian Office division in 2011. The first
was the closure of Australian Office’s stationery
manufacturing facility in Regency Park, South
Australia and subsequent consolidation of the
manufacturing operation to our Preston manufacturing
site in Melbourne.
The second was the acquisition of the assets and stocks
of local envelope manufacturer Australian Envelopes
which saw Australian Office absorb a portion of the
company’s production capabilities and customers,
significantly expanding our envelope manufacturing
volume. Australian Office also employed 32 Australian
Envelopes employees in 2011, which has proved
extremely beneficial in terms of retaining significant
skills and experience in envelope manufacturing.
An additional 40 employees were hired in 2011 in the
production, overprint, warehousing and sales functions
to meet the associated increase in envelope production
and sales as a result of the acquisition of Australian
Envelopes assets and stocks.
Australian Office worked with unions to achieve the
best possible outcome for the 48 staff affected by
the closure of our Regency Park, Adelaide stationery
operations. Staff were assisted through the provision
of retrenchment payments, outplacement services,
financial advice, government assistance support,
superannuation advice, and assistance in finding work
with other local employers. Regency Park staff were
given two months notification of the closure and
provided with an opportunity to move interstate to the
Australian Office operations in Melbourne. Australian
Office also liaised with local government to seek
guidance on job retraining options.
In this difficult time for the Australian manufacturing
sector, we recognise the very talented people we
have across the business. Innovative ideas are being
generated because our employees have found ways to
be more efficient and work smarter. They have asked
“How can I do things better, more efficiently and more
cost effectively?”, and have consequently responded
with new ideas and processes.
These actions have made a difference to us. Australian
Paper has a loyal employee base with many employees
having worked for the organisation in excess of 30 years.
We formally recognise our employees’ years of service
milestones and are grateful for their ongoing effort
and loyalty.
30 Years Service Australian Paper Employees – 2011.
Top row: Neil Geoffery Webb, Craig Mcdonald, Mark Bonnor, Peter
Freeman, Darren Trehan. Middle Row: Max Pattinson, Eddy Shankland,
Terry Spector, Don Prout. Bottom Row: Gerard Rutjens, David Plant, Peter
Henry, Jeff Curtis, Geoff Dorling, Stephen Russell, Neil Donald Webb.
In 2011, Australian Paper has focused on keeping
costs down across the board. Our investment in
employee development has been more focused than in
previous years.
With all vacant positions, the focus has been on how
we maximise the value derived from recruiting for
that position.
The impact of the mining boom and the reluctance of
many experienced candidates to move to a regional
location has meant that we have been consistently
challenged in the retention and recruitment of engineering
and trades related roles to our Maryvale mill.
people
people 35

Non staff employees are covered by collective
bargaining agreements which are usually negotiated for
a period of two to three years.
Conditions covered by our collective bargaining
agreements include wages and allowances,
superannuation, leave, hours of work including shift
work and overtime, redeployment and redundancy,
consultation arrangements around the introduction of
major changes in the workplace, procedures to manage
discipline and grievances or disputes, termination of
employment arrangements, and union right of entry,
amongst other conditions. In the case of significant
operational changes, our policy is to advise all
employees of any major workplace changes as soon as
is practicable after the decision has been made.
81% of Maryvale and Shoalhaven mill staff are covered
by collective agreements (871.7 and 73 employees
respectively). 45% or 125 Australian Office employees
are covered by collective agreements. Traditionally
staff in trades related roles are covered by this type
of agreement.
Staff contracts are in place for remaining non-trades
related roles.
Our Workforce
Our workforce is comprised predominantly of full time
workers, with part time and casual workers making up
less than 1% of the total employment type respectively.
All of our part time and casual staff are female.
Staff and employees in both regional and urban areas
are selected based on their job suitability. Around four
out of ten senior management roles in the Maryvale
Leadership team are filled by long term local employees,
and some of the team who relocated to Maryvale are
now regarded as part of the local community. All of
Shoalhaven mill’s senior management team are filled by
local employees.
Critical in transitioning staff from Regency Park and
Australian Envelopes into the Australian Office Preston
operations was initiating and maintaining a high level of
direct communication with all existing and new staff to
help new employees assimilate to a new environment
and ensure a harmonious positive culture.
In 2012 we will:
• Hire additional ex-Australian Envelopes staff
to fully support our increase in skilled staff in
paper converting
• See further consolidation in our head office, sales
and manufacturing operations to improve our fixed
cost base
• Continue with targeted employee development
opportunities
• Continue with our range of health and
wellbeing initiatives.
Employment terms
and conditions
Staff members are financially rewarded in accordance
with fair and equitable principles applied uniformly
across Australian Paper. Staff remuneration reflects the
knowledge, skills and experience the individual brings to
the role and the overall impact their position has on our
business. Remuneration is based on well established job
evaluation principles, and reflects a competitive market
remuneration level. Remuneration for staff is reviewed
annually.
Australian Paper recognises the legitimate freedom of
association rights of our employees to be represented
by the trade union of their choice. As per the provisions
of the Fair Work Act, all employees are advised of the
intention of Australian Paper to enter into negotiations
for an enterprise bargaining agreement and of their right
to be represented by a bargaining representative of their
choice. A registered trade union is the default bargaining
representative of any employee who is a member, unless
that member elects to be represented by someone else.
The obligation on Australian Paper and a bargaining
representative is to bargain in good faith.
36 people

people 37
Note: 48 members of Australian Office staff turnover due
to Regency Park closure
500
400
350
300
250
200
150
100
50
0
900
800
700
600
500
400
300
200
100
0
1200
1100
1000
900
800
700
600
500
400
300
200
100
0
1200
1100
1000
900
800
700
600
500
400
300
200
100
0
60
55
50
45
40
35
30
25
20
15
10
5
0
70
60
55
50
45
40
35
30
25
20
15
10
5
0
position type by gender
employees by region and gender
employment type
new hires
employee turnover by gender
no.ofemployeesno.ofemployeesno.ofemployees
no.ofemployeesno.ofemployees
executives
staff
contract
collective
agreement
NSW
australian
paper head
office
australian
paper head
office
maryvale
mill
maryvale
mill
shoalhaven
mill
shoalhaven
mill
australian
office
australian
office
managers
QLD
profes-
sional
SA
administra-
tion
VIC
sales
staff
WA
service
staff
53
1
16
2
46
9
98
2
4
3
15
2
3
5
6
32
16
30
59
192
2
11
10
10
1107
882 343
43
51
19
21
109
48
95
67
16
941
male female
male female
male
female
male
female
male
female
no.ofemployees
(servicestaffonly)

Formal agreements ensuring the best health and safety
conditions for our employees identified in our 2010
report are current and continue with the Construction,
Forestry, Mining and Energy Union (CFMEU),
Australian Manufacturing Workers Union (AMWU),
Communications, Electrical and Plumbing Union (CEPU)
and the National Union of Workers (NUW).
No fatalities occurred at Australian Paper in the
reporting year.
Safety
Our management approach to safety applies to all
Australian Paper activities and operations, whether
at our Maryvale and Shoalhaven mills, our Australian
Office manufacturing and warehousing facilities or
our customer service centres. Core to our strategy to
improve safety across the business are our efforts to:
• Promote a zero tolerance to injury, no matter
how minor
• Embed safety in the operational culture
• Ensure that all employees are educated on safe work
practices and comply with all relevant policies
• Ensure that all levels of management understand,
respect and act in a manner that recognises their
accountability for ownership and implementation of
our safety systems
• Systematically transfer knowledge gained in one area
of business to another where the same knowledge
and experience can be learnt from
• Establish a systems-driven proactive approach to
replace prescriptive reactionary approaches
• Regularly provide a robust and objective analysis of
site safety systems
• Demonstrate that onsite staff exposed to hazards
understand the nature of those hazards and know
how to effectively implement corresponding
control measures.
Our Safety
Performance
Australian Paper’s safety performance has continued
to improve in 2011, with reductions in both Lost Time
Injury Frequency Rate (LTIFR) and Medically Treated
Injury Frequency Rate (MTIFR). All Australian Paper
employees are represented in formal joint management-
worker health and safety committees that help monitor
and advise on occupational health and safety programs.
Every employee has access to attend or have
representatives (HSR) to attend the committee or Safety
Cells, including employees contractors and suppliers.
Note:
• LTIFR/MTIFR figures presented in the 2010 report were calculated
incorrectly and have been amended accordingly in the above table
• Data represents Maryvale and Shoalhaven mills, and Preston
manufacturing operations
• Calculation of MTIFR is:
[(MTIs + LTIs) ÷ hours worked] × 1,000,000
• Data does not include contractor injuries
Safety at Maryvale mill
The mill’s LTIFR remained relatively unchanged from
2010, although MTIFR was below target and down by
26%. The mill’s first aid injury frequency rate decreased
by 7% and 12 month average daily injury rate decreased
by 10%. 56.7% of days (207 days) in 2011 were injury free.
38 people
30
25
20
15
10
5
0
ltifr mtifr
losthours
mtifr ltifr
2007
25.0
21.3
4.7
2008
24.8
19.9
4.9
2009
24.4
18.4
6.0
2010
22.7
16.4
6.3
2011
19.5
13.7
5.8

aust4192-sustainability-report-2011-web

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