Climate Change Data

Environmental Metrics

Social Achievements

• Film Products’ 2014 safety performance was world class, far better than the industry average.

Climate Goals & Targets

Environmental Challenges

• Operational issues in Film Products’ Cabo de Santo Agostinho, Brazil facility, which created supply constraints and adversely impacted production costs.
• Five-month delay in the start-up of our new flexible packaging line in the Cabo facility.
• Continued oversupply conditions in the global flexible packaging market.
• Loss of certain North American baby diaper elastic laminate volumes.

Mitigation Strategies

• Productivity improvements, cost reductions and gains from new surface protection films and new personal care products.
• Strong local team in place, the flexible packaging film operations have been stabilized, and the new line is ramping up ahead of expectations.
• Leadership is keenly focused on optimizing production and reducing costs.
• Shutdown of the film products’ manufacturing facility in Red Springs, North Carolina

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Forcefield Pearl™
• FlexAire™

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Negative sales trend in Personal Care business unit due to customer decisions to reduce purchases.
• Significant decline in performance of Flexible Packaging Films business unit (Terphane) due to operational and quality issues, tough recession in Brazil, and large excess global capacity in the industry.
• Underfunded defined benefit (pension) plan.

Mitigation Strategies

• Investing in people and technology to grow revenues in Personal Care, including increased R&D for new products.
• Operational improvements and new product launches in Flexible Packaging Films.
• Restructuring of domestic PE Films manufacturing facilities to reduce fixed manufacturing costs.
• Board approved project to expand extrusion capacity at Bonnell’s Niles plant.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Safety
• Talent Retention and Development
• Customer Relations
• Environmental Compliance

Environmental Achievements

• Substantial compliance with all applicable environmental laws, regulations and permits in the U.S. and other countries where it conducts business.

Social Achievements

• Outstanding safety performance over the past several years; 33% reduction since mid-2015 in the number of employees who responded “needs improvement” to a survey regarding Talent Retention and Talent Development.

Governance Achievements

• Completed a refinancing of its revolving credit facility; successfully recruited John Steitz to join the Board.

Climate Goals & Targets

Environmental Challenges

• Loss of substantial sales volume with top customers in polyethylene films business units; vulnerability to continued losses as customers seek lower-cost materials or alternative designs; declining earnings for four straight years; Bonnell’s vulnerability to economic cycles; dependence on relatively few customers in two polyethylene films business units; supply chain disruptions; need for improvement in talent retention and development; service and supply issues; cast house explosion.

Mitigation Strategies

• Increased product development investment; strengthened commercialization capability; broadened customer base; acquisition of Futura Industries; market diversification; diversifying customer base; developing new products; refinancing revolving credit facility; constantly improving safety practices and policies; addressing employee dissatisfaction through unspecified actions; added resources to improve manufacturing, sales, and service systems.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced water consumption by approximately 60% at its flexible packaging plant in Cabo de Santo Agostinho, Brazil through a closed-loop system.
• Reduced water usage by almost 6 million gallons in the first year and projects reduced potable water usage of 65 million gallons over the life of the project at its Pottsville, Pennsylvania films plant by installing a new above-ground piping system.
• Reduced wastewater discharge at its Newnan, Georgia aluminum plant through an internal wastewater treatment system employing reverse osmosis and filtration.

Social Achievements

• Not disclosed

Governance Achievements

• Board oversight of climate change-related risks is assigned to the Audit Committee of Tredegar’s Board of Directors.

Climate Goals & Targets

Environmental Challenges

• Flooding related to increased frequency of extreme weather events impacting facilities and supply chain.
• Supply chain disruptions due to extreme weather (e.g., Hurricane Harvey in 2017).
• Potential future water scarcity limiting water withdrawal from customary sources.
• Changing consumer habits related to plastic film products.
• Growing consumer demand for green buildings.

Mitigation Strategies

• Raised floor level of production areas at Carthage, Tennessee aluminum plant to protect against 50-year floods.
• Diversified resin suppliers to mitigate impact of future hurricane-related disruptions.
• Increased overall flood insurance to limit exposure to 100-year or 500-year floods.
• Developing eco-friendly films (Ecophane™ line).
• Offering specialized extruded aluminum shapes for green buildings (LEED® certification).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Diversification of resin suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Extreme weather events

Transition Risks

• Changing consumer habits
• Demand for green buildings

Opportunities

• Development of eco-friendly films
• Offering specialized aluminum extrusions for lightweight vehicles

Reporting Standards

Frameworks Used: SASB, TCFD

Certifications: ISO 14001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Ecophane™ line of sustainable polyester films
• Specialized extruded aluminum shapes for green buildings

Awards & Recognition

• Not disclosed