AustroCel Sustainability Program

AustroCel is fully committed to reducing greenhouse gases and air pollutants by taking a holistic view of the carbon footprint and using energy sparingly, while continuously increasing our efficiency through measures and certifications.

We closely monitor our CO₂ footprint, from raw materials and suppliers to the mobility of our employees and transportation routes. Our philosophy is characterized by efficiency and resource saving in the use of energy. This includes measures such as plant optimization, targeted shutdowns of power systems and the use of efficient lighting systems.

At AustroCel, water is a key production factor: We secure our fresh water supply through our location in a water-rich region and continuously optimize wastewater treatment.

For a pulp production facility like AustroCel, water is a key issue. It is needed not only as process and cooling water, but also as an energy source in the form of steam. Pure freshwater is particularly essential for the production of high-quality dissolving pulp.

Our geographical location in a water-rich region ensures a continuous supply of fresh water. At the same time, we have made significant efforts over the past decades to continuously improve wastewater treatment. The two-stage biological wastewater treatment plant meets European state-of-the-art technology and is one of the largest plants of its kind in Austria.

Another important aspect is the integration of the wastewater treatment plant into the company's energy cycles. Up to three-quarters of the wastewater load is converted to value-added biogas, which is used to generate green electricity and district heating for numerous households. The collected sewage sludge is also thermally utilized as an energy source.

AustroCel focuses on the circular economy and cascading wood recycling by converting pulp residues into valuable products and acting as a model for sustainable industrial processes through innovative partnerships and the largest wood-based bioethanol plant.

The goal is to prioritize material recycling over thermal recycling and gradually achieve a closed-loop recycling. The key to this is the conversion of pulp industry residues into valuable materials for other sectors. Through collaboration between research and development and production, we continuously research ways to reduce resource consumption. Innovative solutions are developed and implemented in cooperation with external partners.

An outstanding example is the construction of the largest wood-based bioethanol plant, which represents a significant milestone in the field of the circular economy. The circular economy is one of our most important core competencies and a key driver for the company's future development. The circular economy concept is at the heart of every project.

We are a biorefinery that converts biological residues into new products. We utilize our full potential to conserve resources and close cycles. Our goal is to set a precedent for sustainable industrial processes. Our employees contribute their specialist knowledge and expertise to the successful development of new solutions.

Our sustainable procurement combines safety, profitability, environmental awareness, and social responsibility by sourcing wood from sustainably managed forests, thereby supporting ecological diversity and the local economy.

Sustainable procurement is an important component of our commitment to social and environmental responsibility. Our procurement policy is based on the pillars of safety, profitability, sustainability, and people and culture. These pillars enable a holistic procurement strategy that supports environmental and social goals. The main components of our production are wood and caustic soda, which account for approximately 75% of our procurement volume.

We source wood from near-natural, sustainably managed forests, with approximately 85% being PEFC-certified and sourced within a 200-kilometer radius. This minimizes transport distances and supports the local economy. We avoid wood from primary forests as well as protected or endangered forests to protect ecological diversity.

These measures provide long-term economic benefits, reduce the risk of reputational and compliance issues, and optimize operating costs. In this way, we ensure that our business practices are ethically and environmentally sound and promote long-term success.

At AustroCel, safety is our top priority: Our "Safety First" concept ensures that every employee returns home healthy and unharmed, while a consistent safety organization and individual responsibility ensure the highest protection standards within the company.

With our "Safety First" concept, safety is one of the highest priorities in AustroCel's corporate strategy. The focus of occupational safety is to ensure that our employees return home healthy and unharmed, just as they arrived at work in the morning. At AustroCel, this means not only meeting legal requirements but also ensuring that each individual takes individual responsibility for themselves and their colleagues.

This responsibility extends from the company's management, represented by the CEO and COO, to each individual employee. Our safety organization is consistent and ensures the highest level of safety within our company.

A safe work environment not only creates better, but also more efficient working conditions. Employees and their health are always the focus of our line managers' attention.

AustroCel places great value on stable employment relationships and extensive training and development opportunities to attract highly qualified specialists, promote their satisfaction, and retain them long-term.

The topics of "stable employment relationships" and "training and development" encompass various aspects of the working environment and development opportunities for employees at AustroCel.

The key points include:

• Securing jobs through a profitable and "green" corporate strategy

• Promoting satisfaction through high occupational safety standards and healthy working conditions, including flexitime and a five-shift model

• Diverse training and advancement opportunities, such as a qualification matrix, competency model for the wood yard, junior management programs, and trainee programs

Investments in training and development enable us to attract highly qualified managers and specialists and retain them long-term. The various training programs promote the personal development of employees and strengthen their commitment to the company.

Increased external and internal communication has been conducted, for example, via social media, company presentations, school fairs, and regional events. Employees are continuously informed through town hall meetings, internal communications, and notice boards. Anniversaries and milestone birthdays are celebrated with celebrations and shared breakfasts.

At the heart of our corporate strategy is safety, which we ensure through reliable performance, transparent processes, and collaborative communication to build stable customer relationships and trust.

Safety is a value we uphold not only internally, but also in all the products we supply to our customers. We strive to build stable customer relationships and believe that trust is the foundation for this.

We build this trust through consistently reliable performance, transparent processes, and collaborative communication. We strive to be a reliable supplier.

This means that our customers must be able to rely 100 % on the quality and safety of the products we supply.

Compliance and ethical conduct are the foundation of our business activities. We strictly adhere to legal regulations and internal policies and expect the same from our suppliers.

In the spirit of compliance, we strictly adhere to legal regulations and internal policies, particularly our Code of Conduct as a central guideline. We also expect our suppliers to adhere to a Supplier Code of Conduct that ensures ecological and social responsibility along their supply chain. Ethical behavior such as honesty, fairness, transparency, and mutual respect form the foundation of our business relationships, both internally and externally. Our compliance management provides the framework for responsible action and supports our employees in meeting these standards.

Compliance serves to prevent risks and avert damage and protects the company, management, and employees from liability, including the associated financial and reputational losses. Furthermore, compliance increases trust in the company, its competitiveness, its success, and its attractiveness to employees and business partners. These are essential factors for ensuring long-term employer security. We are also unequivocally committed to ESG goals and assume responsibility beyond our own business activities.

Our economic success is based on safety, profitability, sustainability, people, and culture. We set clear priorities and pursue a systemic approach to promote growth and inclusion.

We build our economic success on four pillars:

• Safety

  Safety is defined as the company's highest value, which clearly defines the behavior and options for action for all stakeholders. We analyze all safety-related investments and pursue their implementation according to a priority system. We also practice a systemic approach ("Asset Integrity Strategy") to improve the asset base and ensure that process and safety risks are reduced.

• Profitability through a Contribution Margin Focus

  Accelerated transformation from a high-quality, but market-vulnerable, mass producer to a diversified specialty pulp manufacturer and biorefinery – with a clear focus on contribution margin, including complexity.

• Sustainability

  Transition from an initiative-based to a strategic approach, considering the transformation or diversification of the existing business model into a circular model. Transparency, facts, and no greenwashing.

• People and Culture

  People and culture contribute to competitiveness. Our value system is therefore continuously evolving in response to societal changes and demands. We will support people from other regions to work in our company (national and international, men and women).