The comments by Rob Viner, commercial director at the company, go against the campaign launched by the NAPM, which aims to promote a positive image of paper.

Viner said some approaches to environmental issues overlook the impact of paper and fail to acknowledge that the industry has any adverse affects.

While paper is relatively inexpensive, recyclable, biodegradable and renewable, global paper consumption is at "unsustainable levels", he said.

The top four paper consuming nations, the US, Japan, Germany and the UK, consume 50% of all the paper produced globally. Their demand is expected to increase by another 80% by 2010, from 1993 levels.

Viner said: "This is an unsustainable level because in environmental terms, the world cannot afford to go on increasing its demand for paper at the current rate.

"It is an awkward reality for paper makers and merchants to embrace. Our aim in the future is to provide only the paper that our customers really need."

NAPM's Two Sides campaign aims to dispel the "barrage of misleading information" that suggests paper production destroys forests, uses a lot of energy, or that it accelerates deforestation.

However, Viner said that paper does directly affect our environment by the use of energy, chemicals and water in the manufacturing process.

He added: "Through the production of wood pulp it also impacts on the world's forests and on climate change.

"After it is used, it will most probably end up as landfill or be incinerated because paper cannot be infinitely recycled."

He said merchants and mills have a critical role in helping paper consumers make informed choices.