Climate Change Data

Kruger Products Inc.

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:330,252 tCO2e/year
Scope 1 Emissions:253,234 tCO2e/year
Scope 2 Emissions:77,018 tCO2e/year
Scope 3 Emissions:617,739 tCO2e/year
Renewable Energy Share:4%
Total Energy Consumption:8,302,262 GJ/year
Water Consumption:19,286,793 m3/year
Waste Generated:102,700 tons/year

ESG Focus Areas

  • Climate Change
  • Water Management
  • Waste Management
  • Responsible Sourcing
  • Plastics & Packaging
  • Occupational Health & Safety
  • Diversity, Equity & Inclusion
  • Employee Training & Development
  • Community Engagement & Investment

Environmental Achievements

  • Reduced Scope 1 and 2 emissions intensity by 26% vs. 2015 baseline
  • Reduced water usage intensity by 31% vs. 2015 baseline
  • Achieved 100% third-party certified fibres in products
  • Sherbrooke cogeneration system reduced GHG emissions by nearly 15,000 MT

Social Achievements

  • Achieved a 0.86 OSHA Total Incident Rate (TIR), improving from 1.37 in 2022
  • Introduced Employee Development Month
  • Continued support of breast cancer research through Cashmere Collection
  • Launched Kruger Big Assist supporting local hockey programs

Governance Achievements

  • Board integrated climate risks and opportunities into risk oversight responsibilities
  • Updated Code of Ethics approved by the Board

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050
Medium-term Goals:
  • Reduce virgin plastic packaging intensities in branded products by 50% by 2030 from a 2020 baseline
Short-term Goals:
  • Reduce Scope 1 and Scope 2 emissions intensity by 35% by 2030 from a 2015 baseline
  • Reduce water consumption intensities by 35% by 2030 from a 2015 baseline
  • Achieve a 0.74 TIR by 2025

Environmental Challenges

  • Virgin plastic packaging intensity increased by 8.5% from 2020 to 2023
  • Waste diversion decreased due to changes in downstream partnerships
  • Scope 3 emissions account for roughly 65% of total emissions
Mitigation Strategies
  • Developing strategies to reverse the increase in virgin plastic packaging, including using 25% PCR plastic in 2024
  • Working to onboard new partners in 2024 to accept fibre end product for soil amendment
  • Tracking Scope 3 emissions from 11 sources to identify reduction opportunities

Supply Chain Management

Responsible Procurement
  • 100% third-party certified fibres
  • Supplier Code of Conduct
  • EcoVadis platform for ESG monitoring (starting 2024)
  • Compliance with Bill S-211 (Fighting Against Forced Labour and Child Labour in Supply Chains Act)

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
  • Wildfires
  • Heat stress
Transition Risks
  • Carbon pricing mechanisms
  • Fuel and transportation costs
  • Supply chain disruptions
  • Mandates on and regulation of existing products and services
Opportunities
  • New technologies
  • Plastic packaging
  • Resource efficiency

Reporting Standards

Frameworks Used: GRI Universal Standards (2021), SASB Household & Personal Products Standard, SASB Pulp & Paper Products Standard, TCFD

Certifications: FSC, SFI, PEFC, ISO 50001 (Gatineau, Crabtree, New Westminster plants)

Third-party Assurance: PwC (limited assurance for absolute Scopes 1 and 2 emissions)

Sustainable Products & Innovation

  • Bonterra brand (100% recycled fibre, plastic-free packaging)

Awards & Recognition

  • Canada’s Best 50 Corporate Citizens (Corporate Knights)
  • Canada’s Best Managed Companies
  • Forbes Canada’s Best Employers
  • Greater Toronto Area Top Employer