Sustainability

Mpact’s values commit us to being resolute, trustworthy and responsible in everything we do.

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Environmental responsibility

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 594 million kg of material for recycling in 2023 (2022: 700 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

Materials used in our manufacturing operations include pulp, logs, pine chips, and plastic polymers, as well as recycled fibre . We buy raw materials from responsible sources and paper fibre sources are certified to the Forest Stewardship Council (FSC) standards.

The Plastics business uses a range of virgin polymers in its production range depending on the nature of the product and client specifications. Where possible, we purchase virgin polymers from local suppliers.

An increasing percentage of the high-density polyethylene used in the manufacture of crates, wheelie bins, and pallets in the Bins and Crates (Mpact Plastic Containers) unit comes from on-site recycling, with recycling capabilities expanded through the new Castleview production and Brits recycling facilities.

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.

Energy and carbon emission targets for 2027 form an integral part of management’s key performance areas in the future. 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.

We have developed five-year water management plans requiring our operations to interrogate their water use practices and seek efficiencies. In 2023, our endeavours to curtail water usage, coupled with efficient production, led to a reduction in water use by 6.21% per saleable tonne compared to the 2019 baseline, for manufacturing operations.

Total metered wastewater discharged by the Group in 2023 decreased to 2,610Mℓ (2022: 2,949Mℓ) and specific wastewater discharge for the manufacturing operations decreased by 3.57% to 3.34kℓ per tonne of product (2022: 3.46kℓ/t).