We have a long-standing commitment to reducing our energy use and making our manufacturing sites as efficient as possible. Our long-term objective is to be highly energy efficient, and we try to use renewable energy where practical and cost effective. This is outlined in our energy management strategy.

Our total energy use has reduced over 9 percent since 2000 to 79.2 trillion British thermal units (Btu). In 2007, approximately 22 percent of the total energy consumed came from renewable sources. This includes spent liquor from our pulp operations and wood waste. Our world headquarters in Dallas, Texas, U.S. has entered into an agreement to purchase 100 percent of its power needs from electricity generated from landfill gas. The remaining landfill gas electricity from this project is supplied to our manufacturing facility in Paris, Texas.

We measure energy efficiency by calculating the energy used per metric ton of production. In 2007, energy efficiency improved by 1.8 percent to 15.5 million Btu (MBtu) per metric ton of production, compared with 15.8 MBtu per metric ton of production in 2006.

In 2007, 42 percent of facilities met their Vision 2010 energy-efficiency targets, a large improvement on 2006.

To track progress against our goals, every facility enters quarterly energy use data into our global sustainability database. Our energy services team gives priority to those facilities furthest from achieving their targets and supports regional energy coordinators in implementing energy-efficiency improvement plans.

Our North Atlantic Consumer Products team is engaged in a focused energy-efficiency effort. During 2007, we asked each mill to rate themselves using an Energy Best Practices Scorecard that focuses on energy-efficient production and utility equipment and energy-efficient mill operating practices. Mills also rated themselves using an Energy Management Audit that covers energy awareness, the promotion of ideas for conserving energy, energy project management, and overall energy management.

Key North Atlantic Consumer Products mills have submitted a four-year energy plan for 2007–2010 including current and planned energy projects to achieve further energy savings. During 2008, mill teams will continue to implement energy-saving best practices such as lighting efficiency improvements, modifying temperature and humidity controls and optimizing compressed air systems. Our mill in Paris, Texas, U.S. achieved significant energy use improvements. The facility installed controls to increase the efficiency of its air conditioning and heating. This allowed the team to more effectively control temperature and humidity during summer. The site also upgraded to more energy-efficient lighting and reduced the energy use of its compressed-air system by approximately 17 percent. The plant also purchases some renewable electricity generated from landfill gas. Our mill in LaGrange, Georgia, U.S. recently upgraded its lighting by installing energy-efficient T8 fluorescent fixtures. These changes resulted in a 61 percent reduction in energy consumption over the previous lighting fixtures (metal halide, high pressure sodium and T12 fluorescent). The power for lighting consumption in production areas will decrease by 33 percent. Occupancy sensors have been placed in offices, conference rooms and other less frequently used areas to automatically turn off the lights when the rooms are empty.