Dcument subtitle= Verdana Heading 12 0/0 single Cnfederatin f Eurpean Paper Industries (CEPI) Auditr s reprt n the limited review perfrmed n a selectin f cre indicatrs published in the dcument 2017 Annual Statistics, 2016 Envirnment Statistics and the mst imprtant figures summarized in the Key Statistics f the Cnfederatin f Eurpean Delitte Bedrijfsrevisren / Reviseurs d Entreprises
Auditr s reprt n the limited review perfrmed n a selectin f cre indicatrs published in the dcument 2017 Annual Statistics, Auditr s reprt n the limited review perfrmed n a selectin f cre indicatrs published in the dcument 2017 Annual Statistics, 2016 Envirnment Statistics and the mst imprtant figures summarized in the Key Statistics f the Cnfederatin f Eurpean T the bard f directrs, We have been engaged by the Cnfederatin f Eurpean Paper Industries ( CEPI ) t issue a limited assurance statement n the data quality rating methd CEPI applies n a selectin f cre indicatrs published in the 2017 CEPI annual statistics reprt, 2016 Envirnment Statistics reprt and the Key Statistics Reprt, being a summarizing public reprt in which the mst relevant indicatrs are published. The cre indicatrs cvered by ur assurance statement and the detailed data quality rating made by CEPI can be retrieved in Appendix 1 and 2 t ur Assurance Statement. The data quality rating methd applied by CEPI is based n Prduct Ftprint Categry Rules (PFCR) fr paper, develped by the Eurpean Cmmissin s DG Envirnment (see Appendix 2 t ur Assurance Statement). Limitatins in ur scpe The scpe f ur assurance engagement as described abve des nt include an assessment f the selected indicatrs nr the reliability f the underlying data prvided t CEPI by the CEPI member assciatins, frm individual cmpanies r based n estimates prvided by paper industry cnsultants. Management s Respnsibility The management f CEPI is respnsible fr the preparatin f the indicatrs and their data quality assessment based n the infrmatin received directly frm the CEPI member assciatins, frm individual cmpanies r based n estimates prvided by paper industry cnsultants. The Auditr s Respnsibility As defined by the Internatinal Federatin f Accuntants ( IFAC ), ur review was designed t btain a limited level f assurance. Prcedures t btain limited level f assurance are less extensive in relatin t bth the risk assessment prcedures, including an understanding f internal cntrl, and the prcedures perfrmed in respnse t the assessed risks, than thse fr a reasnable level f assurance and therefre less assurance is prvided. Our respnsibility is, based n ur limited assurance review prcedures, t express an independent cnclusin n the data quality rating methd applied by CEPI. Our assurance reprt has been made in accrdance with the terms f ur engagement letter and the internatinal standard as defined in ISAE 3000 (Internatinal Standard fr Assurance Engagements, December 2003). With respect t independence rules, these are defined by the respective legal and regulatry texts as well as by the prfessinal cde f ethics, issued by the IFAC. Nature and scpe f ur engagement We planned and perfrmed the prcedures deemed necessary fr expressing a limited assurance n the fact that the data quality rating methd applied by CEPI is nt materially misstated. A limited assurance engagement prvides less assurance than an audit. We perfrmed the fllwing prcedures t supprt ur cnclusin: Obtaining an understanding f the data quality rating frmula and assessment f the suitability f the applied methdlgy by CEPI. CEPI cnsiders separately the Data Delivery Quality Rating (DDQR) t assess the quality f data delivery by the Natinal Assciatins twards CEPI, as well as the Data Quality Rating (DQR) t assess the quality f the statistical data itself. Bth rating methds have been explained in further detail in Appendix 2 t this Assurance Statement. Challenging the data quality rating made by CEPI at cnslidated level. Bth DDQR and DQR methds have been challenged thrughut ur prcedures. The DDQR ratings are based n fur criteria: 1
Auditr s reprt n the limited review perfrmed n a selectin f cre indicatrs published in the dcument 2017 Annual Statistics, Cmpleteness (C), has been checked by verifying if all the figures have been sent by the Natinal Assciatins and whether the apprpriate actin has been taken in case f a lack f figures frm a Natinal Assciatin. Time-related representativeness (TiR), has been checked by verifying if the received figures related t the apprpriate reprting year and if, in case f extraplatin, the crrect quality assumptin has been systematically perfrmed. Gegraphical representativeness (GR), has been checked by reviewing the weighing factr used fr the varius members accrding t the CEPI assumptin. Parameter uncertainty (P2), has been checked by verifying the cnslidatin f the figures sent by the Natinal Assciatins in the CEPI reprting and, in case f difference r assessment by CEPI, by checking the impact n the data delivery quality rating perfrmed by CEPI. The DQR ratings are based n the fllwing criteria as they are defined : Parameter uncertainty (P1), has been checked by verifying the cnslidatin f the figures sent by the Natinal Assciatins in the CEPI reprting and, in case f mdificatin by CEPI, by checking the impact n the data quality rating perfrmed by CEPI. Assessing the adequacy f the dcumentatin and "audit trail". Cnducting interviews with 4 selected CEPI Natinal Assciatins, mainly fr the purpse f assessing their Data Quality Rating Methd applied and verifying whether the CEPI methdlgy was prperly fllwed. Cnducting interviews with CEPI respnsible cmpany staff, mainly fr the purpse f assessing the understanding f the data quality rating methdlgy and assumptins made by CEPI. Cnclusin Based n ur limited review fr the cre indicatrs in scpe as detailed in Appendix 1, nthing has cme t ur attentin that causes us t believe that the data quality rating methd perfrmed by CEPI, based n the Eurpean methdlgy fr the calculatin f envirnmental ftprints f prducts, has nt been dne in line with the defined CEPI prcedures. Zaventem, 29 June 2018. The auditr, Delitte Bedrijfsrevisren/Reviseurs d Enterprises BV.v.v.e. CVBA / SC s.f.d. SCRL Represented by Pierre-Hugues Bnnefy Luchthaven Natinaal 1J, 1930 Zaventem, Belgium Appendix 1: Overview cre indicatrs in scpe with their DDQR and DQR rating Appendix 2: CEPI data quality rating methdlgy 2
Auditr s reprt n the limited review perfrmed n a selectin f cre indicatrs published in the dcument 2017 Annual Statistics, Appendix 1: Overview cre indicatrs in scpe with their DQR and DDQR rating DQR DDQR Industry Structure (2017) Number f cmpanies 2,0 Very Gd Quality 1,5 Very Gd Quality Number f pulp mills 1,0 Excellent Quality 1,3 Very Gd Quality Number f P&B mills 1,0 Excellent Quality 1,5 Very Gd Quality Number f paper machines 2,0 Very Gd Quality 2,3 Gd Quality Paper & bard capacity 3,0 Gd Quality 2,8 Gd Quality Pulp capacity 2,0 Very Gd Quality 2,3 Gd Quality Paper & bard prductin 1,0 Excellent Quality 1,0 Excellent Quality Market pulp prductin 1,0 Excellent Quality 1,5 Very Gd Quality Paper & bard cnsumptin 2,0 Very Gd Quality 1,8 Very Gd Quality Pulp cnsumptin 1,0 Excellent Quality 1,0 Excellent Quality Paper & bard exprts 2,0 Very Gd Quality 1,5 Very Gd Quality Pulp exprts 1,0 Excellent Quality 1,0 Excellent Quality Paper & bard imprts 2,0 Very Gd Quality 1,5 Very Gd Quality Pulp imprts 2,0 Very Gd Quality 1,3 Very Gd Quality Emplyment 3,0 Gd Quality 2,5 Gd Quality Turnver 3,0 Gd Quality 3,5 Fair Quality Raw Materials (2017) Wd cnsumptin 1,0 Excellent Quality 1,5 Very Gd Quality Cllectin f Paper fr Recycling 3,0 Gd Quality 1,5 Very Gd Quality Utilisatin f Paper fr Recycling 1,0 Excellent Quality 1,0 Excellent Quality Utilisatin f Paper fr Recycling by sectr 2,0 Very Gd Quality 1,5 Very Gd Quality Exprts f Paper fr Recycling 3,0 Gd Quality 1,5 Very Gd Quality Imprts f Paper fr Recycling 3,0 Gd Quality 1,5 Very Gd Quality Nn-fibrus materials cnsumptin 3,0 Gd Quality 3,0 Gd Quality Envirnmental data (2016) Fuels cnsumptin 1,0 Excellent Quality 1,3 Very Gd Quality Electricity cnsumptin 2,0 Very Gd Quality 1,8 Very Gd Quality Electricity prductin frm CHP 3,0 Gd Quality 2,8 Gd Quality Bimass Utilisatin 1,0 Excellent Quality 1,3 Very Gd Quality SO2 Emissins 4,0 Fair Quality 2,0 Very Gd Quality NOx Emissins 2,0 Very Gd Quality 1,5 Very Gd Quality Water intake 2,0 Very Gd Quality 1,5 Very Gd Quality COD Emissins 2,0 Very Gd Quality 1,5 Very Gd Quality AOX Emissins 2,0 Very Gd Quality 1,8 Very Gd Quality Residues Landfilled 3,0 Gd Quality 2,3 Gd Quality EMS certificatin 1,0 Excellent Quality 2,0 Very Gd Quality Scial data (2016) Accidents 1,0 Excellent Quality 1,0 Excellent Quality DQR = Data Quality Rating DDQR = Data Delivery Quality Rating 3
Auditr s reprt n the limited review perfrmed n a selectin f cre indicatrs published in the dcument 2017 Annual Statistics, Appendix 2: CEPI data quality rating methdlgy The Eurpean methdlgy fr the calculatin f envirnmental ftprints f prducts has been altered t be used as a quality assessment tl n a larger variety f indicatrs than nly envirnmental ftprint indicatrs. CEPI has decided t remve the fllwing tw parameters: (i) Technlgical representativeness and (ii) the Methdlgical apprpriateness and t split the data quality rating methdlgy in 1) Data Deliver Quality (DDQR: assessment f the quality f data delivery by the Natinal Assciatins twards CEPI) and 2) Data Quality Rating (DQR: assessment f the quality f the statistical data published twards stakehlders). CEPI data delivery quality rating frmula: GR + TiR + C + P2 DDQR = 4 C - Cmpleteness The cmpleteness is calculated as fllws: figures that have nt been received by the Natinal Assciatins are deleted frm the ttal t btain a ttal B. The percentage f this ttal B cmpared t the ttal is cnsidered: 90% =1 80% and < 90% = 2 70% and < 80% = 3 50% and < 70% = 4 TiR - Time related representativeness Annual figures reprted t CEPI by the Natinal Assciatins are ne year ld. When a figure is estimated by CEPI r the Natinal Assciatin, the age f the basis year fr estimatin is cnsidered (2 years, 3 years, etc...). A ttal B is calculated by multiplying fr each cuntry the data figure received with the "year number". The rati between ttal B and ttal is cnsidered: 1 =1 2 and > 1 = 2 3 and > 2 = 3 4 and > 3 = 4 > 4 = 5 GR - Gegraphical representativeness The gegraphical representativeness is calculated as fllws: gegraphical representativeness is cnsidering paper & bard prductin + market pulp prductin fr each cuntry. Paper & bard prductin + market pulp prductin f cuntries withut any figure received is deleted frm the ttal t btain a ttal B. The percentage f this ttal B cmpared t the ttal is cnsidered: 95% =1 85% and < 95% = 2 75% and < 85% = 3 50% and < 75% = 4 4
Auditr s reprt n the limited review perfrmed n a selectin f cre indicatrs published in the dcument 2017 Annual Statistics, P2 - Parameter uncertainty Thrugh a survey, the Natinal Assciatins have prvided CEPI with a "reliability factr" fr each cre data: (1) high - (2) satisfactry - (3) can be further imprved - (4) lw (5) n data received, indicating the quality f data reprted by the Prducers t the Natinal Assciatins. Figures t be estimated r verruled by CEPI are given factr (5) by default. A ttal B is calculated by multiplying fr each cuntry the data figure received with a specific percentage fr each factr: (1) = 100% - (2) = 75% - (3) = 50% (4) = 25% and (5) = 10%. The percentage f this ttal B cmpared t the ttal is cnsidered: 90% =1 80% and < 90% = 2 70% and < 80% = 3 50% and < 70% = 4 CEPI data quality rating frmula: DQR = P1 P1 Parameter uncertainty Thrugh a survey, the Natinal Assciatins have prvided CEPI with a "reliability factr" fr each cre data: (1) high - (2) satisfactry - (3) can be further imprved - (4) lw, indicating the quality f data reprted by the Prducers t the Natinal Assciatins. T ensure the 'P1' parameter is used here t measure Data Quality twards stakehlders, in case CEPI decided t estimate itself r verrule the figure received frm the Natinal Assciatins t make it mre qualitative, CEPI makes itself an assessment f a "reliability factr" fr the data they enter: (1) high - (2) satisfactry - (3) can be further imprved - (4) lw. Scres (1) - (4) shuld be attributed based n the reliability f the surce. Crrespnding guidance has been drawn up: (1) Nt pssible in case CEPI needs t cmplete r estimate the data itself based n alternative surces. (2) The data has nt been estimated by CEPI itself but has been fund thrugh thers surces (Cmpanies data, Eurstat, RISI mill database) and refers t the current year. (3) The data has been estimated by CEPI based n data received frm the Natinal Assciatins relating t the last 3 years OR based n relevant data fund thrugh ther surces n the previus year, AND takes int accunt the trends in prductin and ther KPls within the cuntry. (4) The data has been estimated by CEPI based n data received frm the Natinal Assciatins which is lder than relating t the last 3 years OR based n relevant data fund thrugh ther surces which is lder than the previus year OR the data f previus year(s) received frm the Natinal Assciatins has just been re-used withut investigating trends in prductin and ther KPls OR any ther estimatin r data has been used. A ttal B is calculated by multiplying fr each cuntry the data figure received with a specific percentage fr each factr: (1) = 100% - (2) = 75% - (3) = 50% and (4) = 25% The percentage f this ttal B cmpared t the ttal is cnsidered: 90% =1 80% and < 90% = 2 70% and < 80% = 3 50% and < 70% = 4 In this apprach 'P1' is used differently than 'P2' fr Data Deliver Quality. It prvides a real indicatin f the quality f data reprted twards stakehlders and takes int accunt partly time-related representativeness (TiR) (scre depends partly n recentness f data) and gegraphical representativeness (GR) (scre per cuntry is multiplied with the data figure replied by the cuntry). 5