Pan Pac issues first sustainability report

Forest products company 'walking the talk' on sustainability.

Added one year ago

By Brenda Newth

Pan Pac issues first sustainability report

Two years in the making, earlier this month Pan Pac Forest Products released its first sustainability report, outlining the company’s sustainability performance and goals to 2030. The company aims to grow turnover by 50% (from 2022 levels) to reach $750 million per annum and be the biggest business of its kind in Australasia.

Managing Director Tony Clifford says the intention is to publish progress on Pan Pac’s sustainability goals on a regular basis.

“We believe it is important to be transparent about the way we do business and the areas in which we need to do better. We know we have to lift our performance and we are embarking on a journey of improvement.”

Pan Pac is keenly aware of the legacy it is leaving for future generations, recognising that to grow sustainably, it needs to protect and add value to natural resources and develop deeper partnerships with iwi and other stakeholders.

In 2020, Pan Pac began work on developing a sustainability framework, which coincided with strategic planning towards its 2030 goals. Gap analysis of existing procedures, policies and projects highlighted sustainable initiatives that were already underway that could be replicated across other sites, as well as opportunities for improvement, which were categorised into short-term and long-term actions.

The company then identified what mattered most to stakeholders, including: staff, contractors, customers, suppliers, iwi, community representatives, local government and shareholder Oji Holdings. The feedback enabled Pan Pac to identify and prioritise initiatives in line with stakeholder expectations.

Currently there are 16 focus areas, aligned to the United Nations’ sustainable development goals, with health and safety the top priority. The other focus areas are:

2. Water pollution	6. Effective resource utilisation	10. Technology and innovation	14. Contribution to the local economy
3. Sustainable forest management	7. Employee wellbeing	11. Biodiversity management and inclusion	15. Reducing greenhouse gas emissions
4. Positive organisational culture and leadership	8. Water conservation practices	12. Reducing fossil fuel energy consumption	16. Protecting assets and supply chain
5. Waste management	9. Soil management	13. Employee work/life balance

Clifford says that Pan Pac’s Sustainable Development Goal (SDG) leadership examples and ability to influence others in its sphere of business are probably the best ways to have the biggest impact on the environment.

He says that Pan Pac has made significant contributions to help protect and restore biodiversity. “We are much more than just a company that grows radiata pine. We manage thousands of hectares of native forest and are doing a lot of work to ensure our operations lead to a net benefit for biodiversity.”

Pan Pac monitors native flora and fauna, and manages pest management through bait stations and trapping, on a significant scale. During winter 2022 the company planted more than 20,000 native trees with a majority of these supporting the restoration of its new QEII block (Pākuratahi Bush) which is one of the best examples of a Titoki/Totara forest in Hawke’s Bay.

There has also been significant progress in the treatment levels of Pan Pac’s treated water discharge, says Clifford.

“That required significant investment in a secondary treatment plant and ongoing expenses of running that plant.”

Reducing diesel use will be a big challenge for Pan Pac, and the company is investigating alternative technologies.

“Currently there is no feasible technology available to replace fossil fuels in heavy transport,” says Clifford.

“We are engaging with leading edge hydrogen research technology companies to ensure we are able to take early advantages if that technology proves feasible.”

Freshwater management is also an area of focus. Clifford says Pan Pac needs to make its production processes as efficient as possible in terms of water consumption.

“There are additional pressures in this space because of climate change and increasing periods of drought.”

So far Pan Pac’s Sustainability Report has been well received by its stakeholders, with Clifford “looking forward to sharing more of Pan Pac’s journey and progress towards its goals”.

To read the report, visit panpac.co.nz/sustainability