22.11.2011

To our stakeholders:

I am pleased to confirm that Pyroll reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,


Hannu Vakkari

CEO

Pyroll respects its employees´ labour agreements and freedom of association. Labour rights actualize trough legislation, collective agreements and local agreements. These obligate the employer and the negotiations are done as equal partners with the employees.

In the area of labour Pyroll implemented for example the following actions during 2011:
- Training for all the superiors
- A meeting for the company trustees and top management
- Pilot documentary of updated maintenance documents for the machinery, safety data sheets and guidelines for introduction to work

Training for all the superiors

During 2011 Pyroll organized training for all its superiors.
The training consisted of six modules. Each of them dealed with several important issues.
1. Training superiors for their role
- Pyroll´s strategy and goals
- Goals for the work of the superiors
- The responsibilities and authorization of the superiors
- Superior´s responsibility of safety at work
2. Management of people
- Management of persons
- Management of goals
- Giving feedback
- Encouraging people
- Listening to people
- Development
3. Managing change
- The difficulty to cope with changes
- Managing change and conflict situations
- Communication in a changing environment
- Communication of a superior
4. Supporting well-being at work
- Supporting work ability
- Managing absence from work
5. Time management
- What takes your time at work?
- Prioritization
6. Coping with the workload
- The importance of rest
- The importance of nutrition
- Controlling stress
- Fysical tests
- Doing things together
The goal of this training is to improve the knowledge and quality of the work of the superiors and thereby improve the well-being of the whole personnel. The training was carried out during the autumn 2011.

A meeting for the company trustees and top management

The goal of this meeting was to increase openness, information about the company and labour rights and promote good spirit in the organization. The emphasis of the meeting was on a two hour panel discussion where the top management gave a presentation of the company situation followed by an open discussion and questions.

Pilot documentary of updated maintenance documents for the machinery, safety data sheets and guidelines for introduction to work

The maintenance documents for the machinery, safety data sheets and guidelines for introduction to work where updated regarding one of Pyroll´s plants, Pyroll Tampere. The corresponding documents will be updated in all Pyroll’s plants following the same model. These documents are of high importance when it comes to the safety of the employees.

The performance will be evaluated by an employee survey carried out by an independent research institute. A survey of this kind was first done in spring 2011 to evaluate the starting point. The measurement will take place in spring 2013 by carrying out the same survey and comparing the results.

The main principle of Pyroll´s environmental policy is to reduce the environmental load. Our aim is to reduce the environmental impact of paper converting and packaging production. We improve our actions to reduce waste, the use of aluminium plates and emissions from solvents. We improve the utilization of waste materials and constantly develop environmentally friendly production methods. We are reducing the environmental impacts by investments, by improving product planning and by developing production methods. We actively inform our partners about our steps for environmental protection, and we follow and obey the laws about environmental protection. We continuously train our employees to act in a responsible way in all their actions.

In the area of environmental issues, Pyroll’s most important action in 2011 was:

Coordinating the plastic waste of Pyroll and its partners for recycling
The goal of this project is to improve the sustainable use of the plastic waste materials from Pyroll and its partners and to create standards to increase their recycling or reuse. The waste from Pyroll´s plants producing plastic packages is already largely recycled, and the emphasis of the project is thus to increase the recycling of the plastic waste from Pyroll´s other plants and Pyroll’s partners. The aim is to recycle or reuse as much plastic waste as it is reasonable by environmental and economical standards.

Description of the project
1. Pyroll’s own plants
- Find out if the plants generate plastic waste, how much, and were it is transported
- Choose the plants which produce enough plastic waste (5 t/a or more) for making it environmentally reasonable to transport it to reuse
2. Partners
- Pyroll’s sales organization contacts customers who are potentially interested to cooperate in the project
- Find out how much these partners generate plastic waste and whether it is environmentally sustainable to recycle it
- Find out the possibilities to cooperate with other potential partners
3. Standards of activities
- Create and choose standards of activities for different kinds of collection and transportation options
- Create a pricing model for the waste
4. Evaluation
- According to the indicators and goals

Another important action was that Pyroll moved to electronic processing of purchase invoices.

For most plastics, to produce 1 kg of the product, means an environmental footprint of about 1,7 kg CO2. This means that every recycled kilogram of plastic saves 1,7 kg CO2. At the end of the year, Pyroll calculates how much it has increased the recycling of plastics.