Climate Change Data

Environmental Metrics

ESG Focus Areas

• People
• Customers
• Trust

Environmental Achievements

• Improved energy efficiency by replacing fixed speed with variable speed electrical drives in several mills.
• Increased capacity for biogenic fuel types and replaced coal with lower-emitting fuels like natural gas in several mills.
• Built an enclosure over the wastewater treatment lagoon at Tomahawk medium mill to capture methane gas for fuel, reducing GHG emissions.
• Upgraded recovery boiler and turbine generator assets at Counce & Valdosta mills to increase biogenic energy use and reduce fossil fuel consumption.
• Recycled approximately 295,000 metric tons of corrugated scrap.

Social Achievements

• Launched a pilot program to reduce overtime by 9% between 2017 and 2019 in collaboration with the United Steelworkers.
• Expanded training programs, averaging 10.5 hours per employee in 2019.
• Increased certified corrugated product supplied by ten times from 2016 to 2019.
• Achieved GFSI conformance across all full-line corrugating operations.

Governance Achievements

• Maintained a robust environmental management system ensuring compliance with all applicable laws and regulations.
• Implemented a comprehensive food safety management system, achieving GFSI certification across all full-line packaging plants.

Climate Goals & Targets

Environmental Challenges

• Extreme heat and humidity potentially reducing working hours.
• Growing global demand challenging available resources.
• Increasing demands for transparency into business operations.
• Increased accountability for business actions.

Mitigation Strategies

• Investing in energy efficiency and renewable energy sources.
• Commitment to sustainable and responsible sourcing of renewable raw materials.
• Implementing a robust product stewardship process.
• Working collaboratively with stakeholders to address concerns.

Supply Chain Management

Supplier Audits: Risk-based approach; details not specified.

Responsible Procurement

• Due Diligence System to avoid controversial sources.
• Supplier agreements incorporating social responsibility and sustainability expectations.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, extreme heat and humidity

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Growing demand for sustainable packaging solutions.

Reporting Standards

Frameworks Used: GRI Standards: Core Option, SASB

Certifications: SFI, PEFC, FSC, FSSC 22000

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Recyclable and renewable packaging solutions.

Awards & Recognition

• Increased standing with JUST Capital
• Named one of America’s Most Responsible Companies by Newsweek
• Listed as one of the World’s Most Admired Companies by Fortune magazine

Environmental Metrics

ESG Focus Areas

• People
• Customers
• Trust
• Climate Change
• Energy
• Emissions
• Raw Material Sourcing
• Biodiversity
• Water and Effluents
• Waste
• Procurement Practices
• Occupational Health and Safety
• Employment
• Labor Relations
• Diversity, Equity and Inclusion
• Community Outreach
• Economic Performance
• Consumer Health and Safety

Environmental Achievements

• Reduced greenhouse gas emissions intensity by 25% (exceeded industry target)
• Increased purchased energy efficiency by 31% (exceeded industry target)
• Increased fiber procurement from certified forestlands and certified fiber sourcing programs
• Reduced recordable incident rate by 27% (exceeded industry target)
• Recycled approximately 302,000 metric tons of corrugated scrap
• Achieved GFSI conformance across all full-line corrugating operations

Social Achievements

• Launched a new careers microsite with employment branding videos
• Reduced overtime by 4.4% between 2017 and 2020 (at 26 plants)
• Established a Diversity, Equity and Inclusion Council
• Implemented a Pandemic Relief Policy covering employees affected by COVID-19
• Provided over $1.5 million in employee and community assistance in response to Hurricane Laura

Governance Achievements

• Formed a Sustainability Committee to provide oversight for all environmental, health and safety, and sustainability matters

Climate Goals & Targets

Environmental Challenges

• Increasing competition for labor
• Impacts of climate change (extreme weather events, supply chain disruptions)
• Land use changes due to sprawl
• Competition from the wood pellet industry
• COVID-19 pandemic

Mitigation Strategies

• Working to attract diverse talent by embracing an inclusive work environment
• Developing a framework for identifying opportunities to lower emissions
• Piloting and validating a carbon model for the DeRidder containerboard mill
• Assessing practices and introducing goals for other material environmental and social topics
• Implementing a Pandemic Relief Policy
• Leveraging the network of box plants to continue supplying customers during emergencies
• Investing in energy improvements (e.g., methane gas capture, turbine generator installation)

Supply Chain Management

Supplier Audits: Risk-based approach

Responsible Procurement

• Due diligence system in conformance with SFI and PEFC standards
• Inclusion of social responsibility and sustainability expectations in supplier agreements

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core Option, SASB

Certifications: SFI, PEFC, FSC, FSSC 22000

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Avoided nearly 500,000 metric tons of CO2e in 2021 compared to 2011 by switching from coal to natural gas.
• Increased capacity for biogenic fuel types at several mills.
• Captured methane gas at Tomahawk mill, generating 108,500 GJ of carbon-neutral energy per year.
• Increased electrical self-generation at International Falls mill by 595,000 GJ per year.
• Substantially increased energy efficiency at Counce and Valdosta mills through recovery boiler and turbine generator upgrades.
• Installed a bubbling fluidized bed boiler at Filer City mill, adding 888,000 GJ of biogenic, carbon-neutral energy and utilizing used tires as fuel.

Social Achievements

• Established a Diversity, Equity and Inclusion Council.
• Launched PCA University, an e-learning platform with thousands of assets available to employees.
• Achieved GFSI conformance across all full-line corrugating operations.
• Maintained GFSI conformance throughout 2020 despite the COVID-19 pandemic.
• Improved employee engagement survey process and selected a new strategic partner for 2022.

Governance Achievements

• Established a Corporate Sustainability and ESG department.
• Formalized a set of Sustainable Business Principles.
• Board of Directors formed a Sustainability Committee providing oversight for ESG matters.

Climate Goals & Targets

Environmental Challenges

• Reducing fossil fuel consumption at mills and box plants.
• Diverting waste from landfills.
• Optimizing the carbon benefits of sustainable forestry.
• Decreasing water consumption.
• Maintaining high recycling rates for corrugated containers, especially in residential programs.

Mitigation Strategies

• Focusing on maximizing resource efficiency, optimizing carbon benefits of sustainable forestry, reducing waste to landfills, and energizing operations with clean power.
• Developing CO2 emissions models for each mill and identifying quick-win projects to lower emissions.
• Establishing a new capital approval process to include scope 1 and scope 2 emissions.
• Creating a new corporate role dedicated to decarbonization efforts.
• Developing a carbon reduction roadmap.
• Implementing water reduction projects across mills, aiming for a 6% reduction in annual water withdrawal.

Supply Chain Management

Supplier Audits: All suppliers evaluated by due diligence system and risk assessment.

Responsible Procurement

• Sustainable Forestry Policy for all wood suppliers.
• Due diligence system in conformance with SFI and PEFC standards.
• Avoidance of controversial sources (conflict timber, illegally harvested wood, etc.).

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core Option

Certifications: FSSC 22000 (food safety), SFI, PEFC, FSC

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Aspen brand office papers with specified post-consumer recycled content.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Employee Well-being, health & safety
• Diversity, equity & inclusion
• Responsible procurement & supply chains
• Energy management & transition to carbon-neutral energy
• Water & wastewater management
• Product responsibility
• Waste & hazardous materials management
• Community relations

Environmental Achievements

• Achieved a 35% reduction in scopes 1 and 2 emissions from a 2021 baseline (market-based inventory).
• Reduced fossil fuel consumption by 10% from a 2021 baseline.
• Supported 800,000 MWh/year of carbon-pollution-free electricity generation.
• Increased corrugated recycling rate from 54.5% in 1993 to 91.4% in 2021.
• Increased paper recycling rate from 38.7% in 1993 to 68.0% in 2021.

Social Achievements

• Launched PCA University, an online learning platform with 10,987 courses completed by 2,353 employees.
• Maintained a strong safety culture, with overall employee engagement in line with other U.S. manufacturing companies.
• Established a Diversity, Equity and Inclusion (DE&I) Council.
• Achieved GFSI conformance across all full-line corrugating operations.

Governance Achievements

• Established a Corporate Sustainability and ESG department.
• Board Sustainability Committee met five times in 2022.

Climate Goals & Targets

Environmental Challenges

• Cost and availability of EACs.
• Emergence of mandatory climate reporting standards.
• Continued development and emergence of carbon capture utilization and storage technologies.
• Uncertainty in tax and regulatory incentives for carbon reduction technologies.

Mitigation Strategies

• Conducting a pre-feasibility study for a carbon capture plant.
• Continuing due diligence work in selecting technology and storage partners.
• Working to reduce scopes 1 and 2 emissions by enhancing circular economy principles.
• Collaborating to improve recycling rates of products.

Supply Chain Management

Supplier Audits: Annual evaluation of suppliers for sustainable forestry certificates (FSC, SFI, PEFC).

Responsible Procurement

• Sustainable Forestry Policy
• Due diligence system in conformance with SFI and PEFC standards
• Compliance with the Lacey Act, Endangered Species Act, Clean Water Act, Canadian Environmental Protection Act, Species at Risk Act, and EUTR.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Carbon capture and storage technologies

Reporting Standards

Frameworks Used: GRI, Greenhouse Gas Protocol

Certifications: SFI, PEFC, FSC, FSSC 22000

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• ASPEN® brand office papers with specified post-consumer recycled content

Awards & Recognition

• PPSA Executive Eagle Safety Performance Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Forest Management
• Product Stewardship
• Health and Safety
• Diversity, Equity and Inclusion
• Employee Engagement
• Responsible Procurement
• Water Stewardship
• Waste Management

Environmental Achievements

• Reduced fossil fuel consumption by switching from coal to natural gas.
• Increased biogenic fuel use in mills.
• Improved energy efficiency in mills through various investments.
• Increased recycling rates of corrugated products.
• Achieved a 1.1% reduction in water withdrawal intensity.
• Increased the number of PCA facilities achieving Stormwater No Exposure Certification (NEC) status.

Social Achievements

• Launched PCA University, an online learning platform.
• Implemented a robust Occupational Health and Safety (OHS) management system.
• Improved employee engagement scores.
• Established a Diversity, Equity and Inclusion (DE&I) Council.
• Expanded ProjectUP community engagement program.

Governance Achievements

• Implemented an internal price on carbon to evaluate major mill capital projects.
• Continued to provide ethics and compliance training to employees.
• Conducted a cybersecurity maturity assessment.

Climate Goals & Targets

Environmental Challenges

• Achieving further reductions in water withdrawal intensity.
• Uncertainty regarding the cost and availability of energy attribute certificates (EACs).
• Uncertainty in regulatory frameworks for carbon emissions reduction.
• Uncertainty in the emergence and development of carbon capture utilization and storage technologies.
• Uncertainty in future tax and regulatory incentives for carbon reduction technologies.

Mitigation Strategies

• Investing in energy attribute certificates (EACs) to support carbon-pollution-free electricity generation.
• Exploring and planning for biogenic carbon capture and storage (CCS) technologies.
• Continuously working to reduce scopes 1 and 2 emissions through operational efficiency and renewable energy.
• Collaborating with industry partners to improve recycling rates.
• Implementing water reduction projects.

Supply Chain Management

Supplier Audits: Annual evaluation of suppliers for sustainable forestry certificates.

Responsible Procurement

• Supplier Code of Conduct based on PCA's Code of Ethics and Business Conduct.
• ESG criteria considered in supplier procurement and onboarding.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products
• Carbon capture and storage (CCS)

Reporting Standards

Frameworks Used: GRI Universal Standards, SASB, TCFD

Certifications: SFI, FSC, PEFC, FSSC 22000

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Fiber-optimized, performance-based packaging solutions

Awards & Recognition

• Not disclosed