MM Group on CDP Supplier Engagement Leaderboard

In the dynamic world of global commerce, where innovation is key and raw material strategies are vital, MM Group has carved out a distinctive path as a leader in sustainability.

The company’s recent recognition by CDP with a triple ‘A’ score for its transparency and performance in climate change, forests, and water security is a testament to its unwavering commitment to the environment. The accolade places MM Group among an elite group of just ten companies worldwide, out of over 21,000 evaluated in 2023.

Climate Scenarios Spark Sustainable Action

For decades, MM Group has closely observed the increasing frequency of forest fires around the world as they pose a significant risk to the supply chain. This concern prompted the company to take proactive steps to enhance the resilience of their raw material supply chain. By collaborating with scientific experts to gain sound data-based knowledge, MM rapidly expanded and optimised its quantitative climate risk analyses.

2021 was one of the worst years for forest fires since the turn of the century, causing an alarming 9.3 million hectares of tree cover loss globally.¹

Recognizing the broader implications of climate-related challenges, MM Group management saw an opportunity to not only safeguard the company's operations but also to build a comprehensive database of environmental performance metrics across the organisation. It is this pooled data that has been an invaluable part of the company’s recent recognition by CDP with a triple ‘A’ score for its transparency and performance in climate change, forests, and water security.

What is CDP?
CDP is a not-for-profit charity that runs the global environmental disclosure system. Over 700 Capital Market Signatories representing more than US$142 trillion in assets requested companies disclose through CDP on climate change, forests and water security.

The Future is Transparent

From the outset, MM Group's journey toward sustainability recognized the importance of transparency in building trust with its stakeholders and driving meaningful environmental change. By participating in CDP's comprehensive disclosure programs, MM Group laid the foundation for an ESG strategy that prioritizes accountability and continuous improvement.

The CDP (formerly the Carbon Disclosure Project) employs a meticulous and independent methodology to assess companies. Scores ranging from A to D- are based on the comprehensiveness of disclosure, awareness, and management of environmental risks, and the implementation of best practices. By utilizing the CDP disclosure framework, MM Group ensures that all relevant environmental information is accessible to stakeholders.

“Outstanding sustainability ratings are not only good for the planet, but they are also good for business. Our partners and customers value the comprehensive data we can provide for each one of our products.”
Felix Forster
Corporate Sustainability Manager, MM Group

Sustainability Bonus for Decarbonisation

MM Group set out to enhance its corporate sustainability programme, focusing on areas where it can make the most significant impact. Central to this strategy is the company's commitment to environmental sustainability include targets for decarbonisation.

Taking ambitious action to reduce direct and indirect greenhouse gas (GHG) emissions, the MM Group set itself a decarbonisation target that meets the requirements of the Science Based Target Initiative (SBTi), including the target of reducing Scope 1 and 2 emissions by 50.4% and reducing Scope 3 emissions by 58.1% per unit of value added by 2031 based on the values from 2019.

To achieve this, the company launched the MM Sustainability Bonus. Sustainability KPIs are an integral part of MM Group’s compensation policy for all management with personnel responsibilities. The bonus is based on a point system for various performance categories (e.g. decarbonisation) and made up of two components: a mill-specific CO2 reduction target and a qualitative part that includes tasks in energy management and project ideas that lead to a CO2 reduction.

_~576,000 tonnes 
Reduction of Scope 1 and 2 emissions in 2023 based on the values from 2019

The introduction of the MM Sustainability Bonus resulted in several internal measures and investments made to improve energy efficiency and use renewable energy (e.g. PV systems, purchased green electricity). The Management Board and the Supervisory Board are regularly informed about the performance of the plants in monthly CO2 emission reports.

36 of 71 MM Group sites purchased green electricity in 2023 or will switch to green electricity in 2024 (compared to 11 plants in 2022).

Leveraging Sustainability for Competitive Advantage

For MM Group, sustainability initiatives go beyond ESG requirements – it is a strategic advantage. Third-party validation of its environmental efforts through CDP scores enhances MM Group's credentials in tenders and proposals, attracting customers and partners who prioritize sustainability.

The emissions from supply chains are on average 11.4 times greater than a corporation’s own operational emissions according to CDP.

Investors, too, are taking notice. MM Group's high CDP scores and transparent reporting have attracted investment from shareholders who value environmental performance. This alignment between sustainability and business strategy ensures that MM Group is well-positioned for long-term success.

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References:

^{1 World Resources Institute.}