To promote awareness of our environmental focus among employees, this year the Group introduced a new mascot known as Mpilo, the isiZulu word for “life”.
At Mpact, our business model is firmly rooted in the principles of the circular economy. The Group’s operations reflect the principles of the circular economy, which are integrated into how we operate. As the largest paper and plastics packaging and recycling company in the region, responsible environmental management is core to our strategy to create value.
Our manufacturing process necessitates the use of energy and water, and results in atmospheric emissions, including carbon emissions, as well as the production of waste and wastewater, all of which we actively manage.
By gathering paper, plastics, and other recyclable materials via Mpact Recycling, the Group plays a crucial environmental role that effectively minimises landfill waste and generates employment opportunities through the collection process. Our Recycling business recovered 639 million kg of material for recycling in 2025 (2024: 588 million kg). The reduction is due to contraction in the corrugating papers market due to the constrained economy and negative effects of weather patterns on some of our fruit producing customers.
Responsible Sourcing
Responsible Fibre Sourcing
The Group’s paper mills and corrugated plants source wood fibre and reclaimed material from responsible and verified sources. Selected operations are certified according to the Forest Stewardship Council (FSC®) Chain of Custody standard, which ensures that wood-based materials used in our products originate from responsibly managed forests and controlled sources. FSC® certification supports traceability throughout the supply chain and promotes responsible forest management.
FSC® License Code – Mpact Paper: FSC-C004834
FSC® License Code – Mpact Corrugating: FSC-C133590
Responsible Polymer Sourcing
The Plastics business uses a range of virgin and recycled polymers in the manufacture of its products, depending on product requirements and customer specifications. Where possible, polymer materials are sourced from responsible suppliers, and an increasing portion of high-density polyethylene used in the manufacture of crates, wheelie bins and pallets is derived from internal recycling streams. Recycling capabilities continue to expand through dedicated recycling facilities, supporting the responsible use of plastic materials and the reduction of waste.
Energy, carbon emissions and climate change
Mpact acknowledges the increasing prevalence of climate-related extreme weather events, which affects Mpact’s operations directly through droughts, floods, storms, and increased temperatures. It also is having an increasingly significant impact on our large agricultural customer base.
The targets were derived using a bottom-up approach that included an assessment of peer practices, market expectations, “science-based targets” for CO2e emissions, and what is achievable with our current projects and plans.
The work completed to date, along with the gains in efficiencies driven through our five-year energy plans, and good production rates, led to pleasing energy and CO2e reductions in 2023 of 9.35% and 11.43% per saleable tonne respectively, against the 2019 baseline, from our manufacturing operations.
The energy management plans align with our statutory Greenhouse Gas (GHG) Pollution Prevention plans, and our operations have built energy management systems that address both fossil fuel and electrical energy efficiency.
Water
Water is a key input in our manufacturing operations and water quality and availability are recognised as key risks. Investment drivers include drought tolerance and flood resistance. New or upgraded plants include an emphasis on improving water use efficiency and we are focused on recycling process water wherever practicable.
The paper mills use about 95% of the water consumed by the Group. These mills have driven water efficiencies and recycling relentlessly to the point where there are indications of impacts on paper quality that are limiting further reductions through standard water-saving methods. Nonetheless, we continue to assess applicable technologies to improve water efficiency further at all operations. Water supply and quality are concerns across South Africa and are included as such in our Group Risk Register. Droughts and floods in recent years, as well as the revelation of the 2023 Blue Drop, Green Drop, and No Drop reports on South Africa’s water infrastructure, as well as water supply challenges in Gauteng, have driven increased focus on water quality and quantity. Some operations have installed rainwater harvesting and/or boreholes for emergency supply. Increasingly, operations are also providing safe drinking water on their sites to alleviate the risk of water-borne disease outbreaks, especially in areas shown by the Blue Drop report to be deficient in providing safe drinking water. Total water consumption for 2025 increased by 2.4% to 4,346Mℓ (2024: 4,244Mℓ). Specific water usage for manufacturing sites, however, decreased by 3.14% to 5.32kℓ/t of production (2024: 5.49kℓ/t). Wastewater Total metered wastewater discharged by the Group in 2025 increased to 2,974Mℓ (2024: 2,651Mℓ), and specific wastewater 20 discharge for the manufacturing operations decreased by 0.36% to 3.46kℓ/t (2024: 3.47kℓ/t).
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Improving water usage and ensuring security of supply
Read more: Improving water usage and ensuring security of supplySince 2012 our water efficiencies have resulted in a steady decline in both the use of water and in wastewater output, primarily due to the extensive programme of investing in new equipment and equipment refurbishments across our Paper and Plastics businesses.