Mondi

-5.07%

increased wood price

Scarcity of wood due to increased government scrutiny of and actions against companies that use illegally sourced wood

•Lack of water due to increased government restrictions on water usage in areas where heavy pollution leads to declining water availability

• Increased scrutiny by purchasers and nongovernmental organizations of unsustainable forest management practices

• Competition for fiber as raw material for various end-uses (e.g., power generation, biofuels, paper pulp, cellulose products)

1. Lack of sufficient resources and materials: Since Mondi is attempting to increase recycling, the company needs an adequate supply of recycled materials to produce end-products. If resources become scarce, Mondi may struggle to operate its business.

2. Difficulties in tracking the materials: Recycling materials can be difficult to trace and identify, as the sources and types they are made from can be hard to track. If Mondi fails to identify the materials accurately, the products may fail to meet regulatory standards or fail to pass quality checks, resulting in financial losses.

3. Economic issues: Recycling initiatives are expensive, and Mondi needs to be sure that the effort is worth the cost. If the costs outweigh the benefits, the initiative may not be successful.

4. Supply chain lack of coordination and efficiency: Mondi needs to ensure that the waste and products created from recycled materials is managed in an environmentally responsible and efficient way. If Mondi's suppliers and contractors are not able to coordinate with each other or keep up with increasing demand, there may be delays in order completion and a decrease in customer satisfaction.