NOVOLEX

2019 SUSTAINABILITY REPORT TABLE OF CONTENTS

02 CEO Message

04 About our Report

06 About Novolex

07 Markets Served and Our Products

07 Continuing Our Growth

08 Our Employees

09 Governance

10 Partnerships and Policy

14 Products

16 Product Lifecycle

17 Raw Material Sourcing

20 Products Made with Recycled Content

22 Reduction

24 Compostable Products

26 Operations

28 Emissions and Energy

The Novolex vision for sustainability is to 30 Waste Diversion and Recycling innovate more sustainable choices for our 34 Water Use customers, operate responsibly and invest in 34 Fuel Use for Fleets 35 Food and Product Safety our people and communities. We bring this vision to life every day through our ongoing 36 Investing in Our People and Communities focus on efficiency in our operations, as well as 38 Safety through partnerships with customers, suppliers, 39 Awards and Recognition 40 Ethics and Integrity communities and others in the industry to 41 Talent Development develop solutions that reduce the impact our 41 Introducing Novolex University products can have on the environment. 43 Community Engagement

45 SASB/GRI Disclosure Index initial findings reinforces the importance This is why Novolex looks forward to helping of recycled content, which we report as a to lead, innovate and participate in the percentage of total fiber and resin volumes. We policies and actions that will build the new CEO MESSAGE want not only to measure but also be transparent circular economy. For a system to work and about our raw material use and the steps we truly create a circular economy, we need are taking to reduce associated impacts. New parameters and consistent definitions that Our use of recycled and renewable raw disclosures in this year’s report include certified can be applied across industries, a model that fiber content and a more thorough inventory of encourages collection and recycling of readily materials, as well as our ability to partner with greenhouse gases from operations. recyclable materials, and robust markets for recycled content. With the benefits of Readers will also gain insight into the expanding customers to design products with a variety of packaging never more apparent, the current portfolio of more sustainable Novolex products. environment represents a pivotal time for raw Since our last report, we have brought to market functional and end-of-life characteristics, are material and packaging manufacturers, several industry-leading products, including our NGOs, brand owners, consumers and others Cutlerease® cutlery dispensing system, 50% rPET key reasons our customers rely on us to help to unify in support of policy solutions clamshells, 75% post-consumer recycled freezer that address our significant opportunities to paper, retail bags made with 75% recycled them achieve their sustainability goals. expand recycling infrastructure. content and a range of fiber-based, non- fluorinated oil- and grease-resistant products. Thank you to all who have shared their We also increased our use of renewable materials views in the preparation of this report and with the introduction of several new products are participating with us on this journey. Message from our Chairman and Chief Executive Officer made with molded fiber, sugar cane, wheat We look forward to continuing our work in Everywhere we do business, Novolex products help our customers, straw and bamboo. sustainability, together. consumers and communities. From small family-owned restaurants Using recycled content, alternative materials expanding their delivery and take-out business to global customers and certified fiber in our products represents seeking innovative and circular packaging, Novolex products our continuous commitment to improving the provide convenience, keep food safe and accessible, support sustainability of our products. However, these hygiene and do so much more. The functional and sustainability innovations must also be balanced with societal benefits of our products are vital to the long-term competitiveness health and safety needs and product end-of- of Novolex as well as a source of great pride for our 10,000 Stan Bikulege life concerns. The world’s experience with the employee families. COVID-19 pandemic has reminded us of the This year, we began our first companywide materiality assessment, importance of protective packaging. Products which represents an effort to strategically review and analyze once thought of as a convenience are gaining our most significant environmental, social and governance (ESG) new recognition for their essential contributions accomplishments and opportunities. This process considers our to safety and hygiene in support of our way of expanding portfolio as well as priorities held by a variety of internal life. At the same time, circularity and zero waste and external stakeholders. A common theme emerging from our have become the consensus goals for packaging. PAGE 2 PAGE 3 PAGE 5

Prior to the launch of our 2019 Sustainability Sustainability of our 2019 the launch to Prior partyReport, third a engaged conduct we to to assessment materiality comprehensive a reporting.further our Assessments prioritize some external and stakeholders internal of to due However, conducted. were stakeholders the the unforeseen by created circumstances pandemic, our in limited were we COVID-19 ability collect to sufficient external stakeholder thorough a feedback needed complete to report. this include it in time to in assessment progressThe still in and we is assessment look We expect 2020. in it later complete to forward the sharing results our in to next report. centered on an initial framework and vision vision and framework initial an on centered

.

LAST Report Sustainability YEAR’S inaugural 2018 selection of recommended disclosure topics topics selection disclosure recommended of metrics present this in are and accounting report, index an including of GRI met criteria Novolex.by In future reports, anticipate we reporting our further disclosures prioritizing reporting standards, widelybased accepted on is what GRI as as well as such and SASB, most meaningful in the current environment. feedbackFor on the report questions, or any please contact [email protected] In developing this report, we continue to be report,In developing this be to continue we guided widely by accepted sustainability the reporting These include standards. Sustainability Board Standards Accounting framework disclosure and the Global (SASB) framework. A (GRI) ReportingInitiative functions Operations, as such and Resources, Human Procurement who Innovation, capture the breadth of our sustainability and provide a vision for the future. initiatives created by the Novolex Sustainability Working Group. This year, in our second in report, annual the Novolex by Sustainabilitycreated This our Group. Working year, be to informed our continue subject by disclosures matter experts from different product segment for leaders responsible portfolios, brand corporate to individual and addition in categories

OPERATIONS Strive for low-impact manufacturing along chain the value PEOPLE Support their families employees, our and communities PRODUCTS Lead the industry by meeting customers' needs product solutions sustainable for more OURREPORT Each pillar has played a critical role in our a critical has our in played pillar role Each operating and acquisition strategy for several continues to and influence years how we operations. products our develop manage and ABOUT ABOUT sustainable products innovate Our to vision is for our customers, operate responsibly in our and people invest and local communities. The Novolex sustainability vision relies on three pillars:

PAGE 4 PAGE 7 waste. Our tamper-evident packaging maintains maintains packaging tamper-evident Our waste. the integrity of freshly prepared food for the to-go expanding rapidly food and delivery segments. Our protective packaging for medicine critical a plays items over-the-counter other and role in protecting products from degradation. In the food butter sector, processing wrap, confectionary freezer bags, and packaging and products, convenience other among provide products include industrial Our extend life. shelf support longevity barriers the that of protective construction. home in used insulation comprising base serve customer diverse a We 5,000over businesses ranging from small family-owned restaurants regional, to national customer Our customers. international and base includes leading foodservice distributors, grocery stores, service quick restaurants (“QSRs”), retailers institutions, government universities, and food processors, sanitation, as well as constructionand manufacturing companies.

growth story began with every nearly products aspect touch NOVOLEX MARKETS AND SERVED OUR PRODUCTS millions offering and customers life, our daily of efficiency, convenience, consumers their of and other benefits. hygiene safety, specialize We products with that customers our providing in preserve products protect the and wrap, hold, make. they ever-expanding an portfolio have We of products, including both traditional and compostable tableware cutlery, and drinkware busy for hygiene and convenience provide that bags shopping plastic paper Our and consumers. throughout grocery and stores retail at found are North service America. quick At restaurants, products hold packaging and wrap Novolex food quality whether maintain to and integrity, carried one in out of our or thousands eaten of foodservice customers’ outlets. Our can trash liners foodservice, hospitals, for sanitation provide need that industries other and janitorial lodging, efficiently,to and safely hygienically manage THE NOVOLEX CONTINUING OUR GROWTH OUR CONTINUING Hilex® Poly, our business that today continues continues today that our business Hilex® Poly, manufactureto and recycle plastic retail bags. Organic sales growth fueled has nine acquisitions on built our strengthsthat packaging in and enabling foodservice product technology, expand other to us sectors, into increase our product to our portfolio contribute and sustainability story. SpecialtyZenith acquisition Bag the ninth is our expansion Novolexby since began 2013. in addsAs to Zenith with previous acquisitions, the breadth and diversity of our product lines. A family-owned leader paper in food packaging, SpecialtyZenith Bag founded was 1945. in Its headquarters and manufacturing plant, located serves City in Calif, of Industry, customers multiple groceryin and food end processing markets with packaging for prepared sandwiches, wraps, deli and bakery items. suited for a range of of a range for suited products foodservice and

industries, with approximately 10,500 employees located across 61 manufacturing facilities and and facilities manufacturing 61 across located employees 10,500 approximately with industries, This Europe. in four and America North across located are 57 offices. Of these, administrative than more of portfolio product complementary and expansive an us offer to allows footprint and packaging the address us comprehensively to “SKUs,” enabling or products 50,000 unique customers. our of needs product foodservice Sustainability a cornerstone is of the Novolex years, brand For Novolex operated has and culture. two recycling specialize recycling in facilities that polyethylene films. Our recycling operations support a does sustainability to products, preferable commitment portfolio our and growing environmentally of not stop Our there. portfolio of brands a variety features of products made with certified fiber well as renewableas and recycled of our products In addition, many content. can be recycled, composted or reused. These offerings component represent of our growth a core strategy reason our a key and are customers rely on help us to them their achieve sustainability goals. packaging of provider a leading is Novolex ABOUT NOVOLEX

PAGE 6 PAGE 9

8,236 1,153 296 159 575 48 10,467 U.S. CANADA U.K. IRELAND MEXICO NETHERLANDSTHE TOTAL: The Senior Leadership Team is composed of composed is of The Senior Leadership Team members, and CEO, our Chairman including 10 and sustainability oversees the company’s activities, implemented are which multiple by functions the company. and across businesses a new position created of the company In 2019, Affairs whose Corporate President, Vice Senior responsibilities include oversight of sustainability and public related policy matters, and also appointed a dedicated Director, Sustainability who oversees sustainability-related reporting, The engagement. customer and communications Director also chairs the Novolex Sustainability supports which preparation the Group, Working sustainability annual of the company’s report of and incorporates the accomplishments Novolex family members aspects all across of the business.

TOTAL EMPLOYEETOTAL COUNT COUNTRY BY

is governed by a Board of Directors governed a Board is by of Directors NOVOLEX GOVERNANCE The and the Novolex Senior Leadership Team. composed was directors, of seven Board 2019 in Diversity a and CEO. is the Chairman including priority the for Novolex, improve to aim and we diversity of our Board. The Board meets quarterly andreviews sustainability-related the company’s objectives,strategy, policies and performance on a regular basis. There two are standing committees of the Board Committee – the Audit Novolex Committee. Compensation the and became a portfolio of The Carlyle company The Carlyle, majority one is owner, Group 2016. in largest and mostof the world’s diversified global investment firms,investment 374 managing four segments, across invest 10 that vehicles continents. six and industries core *estimate 2020 as March of

21% 29% OVER 55 UNDER 35 EMPLOYEE - DATA AGE 36-55 50% SALARY

19% HOURLY HOURLY UNION

EMPLOYEE CATEGORIES- ALL NOVOLEX 28% HOURLY NON-UNION HOURLY

53% manufacturing facilities and offices principal administrative located are six in MALE (34%) FEMALE (66%) MALE / FEMALE EMPLOYEE COMPOSITION THE 61 NOVOLEX 61 THE OUR EMPLOYEES OUR countries and employ nearly 10,500 Novolex family and employ nearly members.countries 10,500 In North America operate we in 27 states, two Canadian provinces and Mexico. In Europe we operate in Ireland, the Netherlands and states, two operate and we Ireland, Mexico. In Europe in the Netherlands27 Canadian provinces and Kingdom. United the

PAGE 8 PAGE 11

, a not-for-profit organization founded in in founded organization , a not-for-profit Novolex contributions to the circular economy report. this throughout referenced are WHAT IS THEWHAT CIRCULAR ECONOMY? growth to redefine aims economy A circular and pollution, keeping products and materials systems. natural regenerating and use in by looking beyond the current production model model production current the beyond by looking making earth, the from resources extracting of of disposing then and something into them producing focuseson economy A circular them. waste out benefits by designing society-wide , a recycling

ADDRESSING PLASTIC AROUNDWASTE THE WORLD the in debris as plastic such approach, a multilateral for call and borders extend beyond issues Some Waste Plastic to End Alliance the joined Novolex 2019, In oceans. that a world want members Alliance environment. the into flow waste the plastic of address to help 2019 everywhere communities that ecosystems the and resources natural our to protect waste plastic of is free and Alliance the support we is why which leadership, strong and action swift for calls This on. depend its mission. materials raw of suppliers – from chain value plastics the across businesses comprising Fifty companies ending of mission the behind united are and Alliance the joined – have goods finished of to manufacturers incubate and to fund billion $1.5 committed have members Together, environment. the in waste plastic enough. nearly is not This waste. plastic from value create and recover will that programs and projects of feasibility the demonstrate that solutions pilot and design help will work important this However, and banks development investors, private from support financial the secure and solutions truly scalable change. truly transformational to deliver needed governments We are proud members of RECOUP of members proud are We The of turn in is a member which nonprofit, partners of and Members Pact. UK Plastics of forefront the at are organizations these generating a fundamental change in the way and dispose re-use, use, produce, design, we reprocess plastics.

has grown, so has our so understanding grown, has has leading in constructive of the role play we change AS NOVOLEX Policy Novolex supports a variety of science- and fact-based public policies support that economy, the circular infrastructure,improve educate consumers and facilitate sustainable development within our communities. The organizations we work with include the American Institute for Packaging and the Environment (AMERIPEN), The organizations work with include the we American (AMERIPEN), for Institute Packaging and the Environment American Recyclable Californians for Recycling Bag Flexible Alliance, Plastic and Packaging the Environment, Association,Recycling Florida Partnership, Plastics Industry Association, American Forest and Paper Foodservice Waste, Plastic Packaging End Institute, Association, to Sustainable Alliance Packaging Coalition, Pack2Go Recoup Composting and others. Council, Europe, US These organizations, along with research diverse our to related goals common share who stakeholders involve relationships, other partnerships and collaboration. amplified are through voices individual product whose and base Partnerships and plan ahead,adequate of recycling the creation and composting infrastructure As look we 2019 back at and a common persistentremains need must be that on addressed reliance our reduce communities in to landfills and keep waste out the of environment. PARTNERSHIPS AND POLICY PARTNERSHIPS in both the reduce impactin industry our products and public forums. on the environment, To can have industry non-governmental academia, and government, communities, in stakeholders with engage we identify to organizationspragmatic, (NGOs) scalable economy. can solutions advance the that circular

PAGE 10 PAGE 13

. Part of the university’s Department of Food

Polymer and Food Protection Consortium Iowa State University State Iowa bio-based polymers, for performance characteristics compost in can waste inclusion streams. facilitate that Science and Human Nutrition, the Consortium’s world-class andScience Nutrition, Human the polymers, Consortium’s facilities testing assess including Commercial Composting numberWhile of governments, increasing an and embracing individuals companies are commercial composting, the processing infrastructure required divert to food scraps and compostable packaging from lag behindlandfills to demand. As continues a manufacturer of products made with compostable fibers and know scale we building a flourishing that criticalresin, is to economy. circular Solutions Towards Working Novolex participates industry in advocate for and that developcomposting infrastructure. coalitions We economically composters, facing contamination, commercial as focus issues such on the core addressing viableend markets and policy solutions. Some of these organizations Composting Council®, include the US Biodegradable Products Foodservice Institute, the Sustainable and Packaging Institute, Packaging Coalition state-basedmany composting organizations. Novolex at focusesInnovation extensively on products designing work with composting. for We commercial support the to Compostorganizations Manufacturing like (CMA) the development of field Alliance testing Ourprotocols. Eco-Products among was business the first supporters of CMA, working with composters test and confirmto its that products different at break down successfully types of commercial composting facilities. support also We broad efforts address product to functionality and food safety with a relationship through the

How2Recycle consumers labels guide on the best disposal option. some In cases, cannot a package mean can that be recycled must and be disposed in of the trash.

For this reason, many of our products reason, many this For label, a standardized use the How2Recycle® labeling system that recyclingclearly instructions communicates the public. to goods of the largest Along consumer with many manufacturers, grocers, packaging providers and others, Novolex a proud is member of the How2Recycle the recycling appropriate of our customers on display designation work with many program. to We Consumer understandingConsumer factors and education key are necessary believe of recycling. for We the success be for to labeled item an that it needs be “recyclable,” as to able be to collected, sorted, processed and sold for another use in manufacturing process. categories. productapplicable material Labeling Working Towards Solutions Solutions Towards Working beNovolex to part aims of the solution for recycling participate markets. industry in We focus forums on that standardsdesign labeling and – both consumer serve of which important as recovery steps improving in and partnered recycling in program,reducing have contamination we streams. years, our For through Bag-2-Bag® with retailers, grocers and waste haulers collect to and recycle plastic retail bags and other films. also We participate significantly end in marketspost-consumer for recycled recycled purchasing by (PCR) content for our use products. own in content more information For on Novolex and use of recycled purchases content, see pages 18-21. As a manufacturer of recyclable products the operator as well as of two plastic recycling facilities, Novolex possesses significant expertise expertise recycling use in that to want andwe supply chains, help shape to the future of recycling. In partnership policymakers, with communities, NGOs and the packaging industry, helpour goal develop to harmonized is recycling workable are solutions that the on scale a large and have economically remain to viablepotential come. for years to Recycling Markets Recycling Recyclers, Novolex, faced including significant cases, have years. the challenges current recent in In many economics of recycling hinderof progress the pace needed robust recycled create markets. to This content sufficient in of investment includes the lack detection and separation technologies necessary recover to from do post-consumer not fitmaterials waste that the traditional commodity of PET rigids. and classes HDPE needWe widescale recycling in collect to investment a broad range of readily recyclable why is which materials, Novolex participates industry in seek that understand associations to and apply standards for recycling.

PAGE 12 PAGE 15 PRODUCTS 01 PPROACH TO PRODUCT DEVELOPMENT OUR CUSTOMERS DEPEND ON HELP TO US A SOLVE VARIETY OF SPECIFIC CHALLENGES. WITH OUR BROAD PRODUCT OFFERING, NOVOLEX CAN OFFER CUSTOMERS A SINGLE POINT FOR OF ADDRESSING CONTACT A RANGE OF REQUIREMENTS. SUSTAINABILITY AND FUNCTIONAL IN PARTNERSHIPWITH OUR CUSTOMERS, WE STRIVE IDENTIFYTO AFFORD RAW MATERIALS BALANCE THAT BETWEEN SOCIETAL NEEDS, GREENHOUSE GASES AND PRODUCT DISPOSAL. EACH OF THESE CONSIDERATIONS ARE RECOGNIZED AS IMPORTANT COMPONENTS OF THE PRODUCT DEVELOPMENT APPROACH. A Products

PAGE 14 01 PAGE 17 PRODUCTS 01

to explore the potential to explore to to the potential WE CONTINUE WE RAW MATERIAL SOURCING MATERIAL RAW further reduce environmental impact by more with materials virgin-sourced replacing products. our in Using recycled content benefits,recycled many has content including the reducing and landfills from waste diverting need material. produce raw to for resources markets for recycled play Additionally, content an important role driving in circularity. theseFor reasons, Novolex reports post- a as recycledconsumer content (PCR) year’s In this percentage volume. of total and 2019 report, include both we 2018 recycled data for fiber content and resin updated methods theand accounting have for Our both materials. fiber metric now includes both recycled and certified fiber Our percentagesas volume. resin of total the 2018 metrics the same. remain However, recycled and post-industrial (PI) PCR content beenpercentages updated be have to method. accounting new our with consistent

Resin-based products, derived from oil and Resin-based products, and oil from derived among thenatural gas, lowest have carbon footprint breadth and of performance greatest many Like material. raw of any qualities products sell fossil from derived that companies significantlyfuels, material invest raw we in to design in optimization and, increasingly, support greater recyclability. Fiber-based products from draw renewableresources, widelyare recyclable when and clean dry, degrade conditions appropriate under and landfillsin or compost. global Increases in consideration fiber for demand necessitates of deforestation impact, and verification of responsible practices. sourcing Emerging represent of renewableclasses materials raw of product area exciting an development. and recovery constraints, supply However, composting infrastructure limitations require improvement of both the beginning- and end-of-life profiles of these products. Regarding emerging the many materials, raw one certain: is to thing Novolex continue will push the boundaries of the performance limits of these materials. DESIGN & MANUFACTURING SOURCING RAW MATERIAL RAW

PRODUCT USE & END-OF-LIFE & we take a holistic take view we lifecycle of the total of our products. This includes consideration AT NOVOLEX, PRODUCT LIFECYCLE of environmental, economicof environmental, and social impacts and benefits different across phases of the value – from andchain sourcing manufacturing product to use and disposal. When viewed this through our portfolio in material lens, raw each presents challenges and opportunities. derived Resins from molded fiber, as such fiber fuels, materials plant-based as fossil well as derived and resin from plants, different a have all profile society value to their of relative terms in and impact on the environment. Products derived fromtype each of the impact warrant assessment an may also of material of raw used manufacture the resources to as or such their supply the transportation chain materials methods our a similar facilities. example, to For recycledused create deliver materials to may materials raw for footprints manufacturing and sourcing the but counterparts, end-of-life virgin their profile as finished products products For vary. may of every type material raw and productupstream and class, downstream impacts must be considered, and no there one is perfect solution.

PAGE 16 PRODUCTS Resin Sourcing 01 In 2019, Novolex purchases of PCR increased in both total pounds and as a percentage of total resin volume. Together, recycled and certified content can play an important role in meeting our customers’ After rounding, our 2019 PCR volumes stand at 4% of total volume. PCR use in 2018 was also 4% of volume, sustainable fiber sourcing goals. In this year’s report, Novolex is reporting on both the percentage of not 6% as originally reported. This change in reported percentage accounts for an increase in overall volume, PCR and COC-certified virgin fiber volume. In 2019, 69% of our fiber volume was either PCR or certified as well as our new accounting methodology, which we applied to both our 2018 and 2019 reported numbers. content, an increase of 4% over 2018.

Looking ahead to our 2020 reporting year, we anticipate a challenging environment in recycling markets. For virgin fiber that is not COC-certified, we still take steps to ensure fiber comes from a responsible As 2020 began, we saw disruption due to COVID-19 in collection and processing of some recyclables, source. Over 99% of paper converted in Novolex manufacturing facilities is purchased from suppliers temporary stays on legislated use of recycled content in multiple states and a stark decrease in virgin that are certified to Forest Stewardship Council® (FSC®), Sustainable Forestry Initiative® (SFI®) or the resin pricing. The combination of all these factors are impacting customer preference and marketplace Programme for the Endorsement of Forest Certification™ (PEFC™) standards. Additionally, we regularly competitiveness of PCR. Looking beyond 2020’s extenuating circumstances, the next several years will conduct supplier assessments and audits to verify that non-certified fiber is sourced from areas not at prove important in demonstrating the future direction of North American recycled content markets. high risk for deforestation impacts.

2018 RESIN SOURCING 2019 RESIN SOURCING 2018 FIBER SOURCING 2019 FIBER SOURCING

17% COC-CERTIFIED FIBER 23% COC-CERTIFIED FIBER 4% PCR 4% PCR 35% VIRGIN FIBER 31% VIRGIN FIBER 20% PI 20% PI from certified suppliers from certified suppliers *46% RECYCLED CONTENT 76% VIRGIN 76% VIRGIN *48% RECYCLED CONTENT

*This figure may include 5% or less of non-PCR content *This figure may include 5% or less of non-PCR content

Fiber Sourcing

Our approach to responsible fiber sourcing focuses on reducing environmental impacts by using more recycled fiber. We prioritize the use of recycled fiber because of its potential to support circularity. In 2018 and 2019, the percentage of recycled fiber in our supply chain was nearly half our total procured fiber volume. While the overall percentage of recycled content in our portfolio decreased by 2%, this WHAT IS CHAIN OF was due to increases in overall volume. Our total pounds of purchased recycled fiber increased from CUSTODY CERTIFICATION? 2018 to 2019. Chain of Custody certification traces the path of When use of PCR material is not possible, for example in most direct food contact applications, we focus on procuring Chain of Custody (COC)-certified content traceable to the wood fiber original products from forests through the supply chain source. In 2019, 23% of virgin fiber purchases were COC-certified, representing an increase of 6% over back to its source and is considered the highest 2018. We are encouraged by innovations being pursued by paper mills that would enable PCR materials standard for sustainably sourced virgin fiber.

to meet U.S. Food and Drug Administration (“FDA”) food contact regulations. As these markets mature For more information on different forestry certification and more supply becomes available, we hope to have more opportunities to use PCR fiber in food programs, please visit Forest Stewardship Council (FSC®), contact applications. the Programme for the Endorsement of Forest Certification ™ ®

PAGE 18 (PEFC ) and Sustainable Forestry Initiative (SFI ). PAGE 19 PAGE 21 PRODUCTS 01

Albertsons and DublLIfe Albertsons DublLIfe and Novolex and Albertsons Companies In 2019, partnered transition to from traditional white prescription a new recycled bags to brown locations the United across bag 1,700+ at The the DublLife to States. switch kraft paper prescription bag expected is more than save to 5,000 trees annually. recycledMade the with new 100% content, pharmacy bags include 60% post-consumer Albertsons making recycled content, the firstCompanies pharmacy major to chain offer type this of bag. The fiber the new in bags certifiedis meet to the Forest Stewardship standards (FSC) Council for recycled content and Rainforestis Certified. Alliance The bags be will used Albertsons all at pharmacies,Companies Safeway, including Thumb, Jewel-Osco, Tom Acme, Vons, Shaw's, Randalls, United Supermarkets, Pavilions, Carrs. Albertsons and Haggen Market, Star Companies fully plans to transition its all pharmacy locations the recycled to bags by the end of 2020. the end of 2020.

post-consumer resin. Increasing use of Recycled Content two Novolex announced businesses their participation the Association in Recyclers’ of Plastic In 2019, Demand program. Champions The Demand expand to campaign Champions aims for the market recycled plastics supply and producing increasing driving more by high-quality investment, BlueStripe Cold Cups Eco-Products increased of rPET the amount 30%. to from 25% itsin Cups Cold Blue Stripe Reflections Renew Cutlery Made the USA, in Reflections Renew cutlery forks knives, product spoons. New and includes post-consumer 20% recycled feature now lines polystyrene. product awarded This was Foodservice Packaging the 2019 in place 2nd Manufacturing in Innovation Institute’s category. awards

Many Novolex retail bags, produce bags and can Many Novolex retail produce bags bags, can and liners with made recycled content. are an Below, image a plastic of retail with made bag 75% recycled content. Novolex manufactures a significant number of Novolex manufactures a significant number of products use that recycled fiber secondary in food freezerapplications. Below, paper with made 75% PCR. In 2019,In Novolex introduced products multiple in North America with made 25-50% rPET. PRODUCTS MADE WITH CONTENT RECYCLED

PAGE 20 PAGE 23 PRODUCTS 01

Bladder Film transport contain, Used to and dispense kinds, of many bladderliquids films also performance. Since and strength require standard thickness for Novolex 2015, bladder film been has reduced by nearly 30%. Stretch Hooder Film Automated stretch hooder systems require films degrees with high of strength for products of range a shipping and packaging – from corrugated kitchen to appliances Overboxes. the last years, several efforts seen our standard have area hooder this in film products usage material raw reduce by 20%. Shields® Films – Thinner films without films Thinner without – Films Shields® sacrificing performance product custom filmsIn our Shields® business, product engineers pursuit constant in of higher are optimize films to performance, thinner-gauge and carbon reduce material use of raw film “downgauging” 2017, Since footprint. thickness seen has significant improvement a rangeacross of products, by driven engineered technical improvements as well as new resin technology.

Tamper-evident containers with no tear containers strip Tamper-evident Souvenir cups cups Souvenir years,For Novolex manufactured has reusable dishwasher-safe, cups for our souvenir polypropylene, from Made customers. can that consumers for option an provide cups be used again and again. Small plastic packagingSmall components can be difficult help support recycle. non-bottle to To PET recycling where facilities exist, Novolex called package, tamper-evident a engineered packaging small reduces that Smart-Tab™, for Thewaste. tamper- allows feature design evident packaging be to sealed and opened extrawithout creating waste.

. Additionally, . Additionally, [1]

In response to shifting restaurant and In response shifting to restaurant and foodservicetrends, Novolex innovated extensivean of strawless line that lids a varietyaccommodate of beverage types. and Serving Utensils EcoSense® Plates, Trays a GreenUsing certified Circle®- recycled products EcoSense resin, least use at 20% and 60% plasticless material resin virgin less while maintaining performance Strawless lids these products are dishwasher safe and these products safe and dishwasher are providingmicrowaveable, greater reusability.

Novolex has worked to optimize the use of raw material in its facilities. More recently, that that its in facilities. material the optimize useof raw Novolex More worked to has recently,

FOR YEARS, [1] Uses[1] 20% less plastic and reduces carbon footprint by 50% compared to polystyrene counterparts. The Cutlerease system use can either traditional plastic or compostable cutlery. Cutlerease system dispensing releasesThe one Cutlerease® piece of plastic cutlery a time – handle first at box or contact– without creating with a tray, system waste This in reduces hygienic drawer. alternative an foodservice settings, providing sets packets contain to that of forks, knives and spoons. This system plastic helps prevent because landfills entering unnecessarily from only take thepatrons cutlery need. they REDUCTION work has taken on new significance as we have combined on taken these new significancework has efforts have we as or eliminate to with innovation reduce packaging where possible.

PAGE 22 PAGE 25 PRODUCTS 01

operators with a suite of compostable of options.operators a suite with New 2019, for EcoProducts foodservice is now ware select in retail outlets online. and available GreenStripe EcoProducts’ Greenstripe foodservice provides line

“Our commitment to innovation starts at the highest levels of leadership and with customers provide to order In organization. the throughout resonates choice, we stay on the leading edge of current research and pursue testing and certifications that advance our product innovation efforts. This can include potential on guidance industry emerging follow products that developing standards compostability tracking for evolving concern, chemicals of and Examplesmore. portfolio growing our include non-fluorinated of oil- and grease-resistant products as well as new products with various adhesives and standards the and meet International’s ASTM that barrier coatings water-based requirements compostability.” for (BPI) Biodegradable Products Institute’s

D h

compostable can liners. ® ADRIANNE TIPTON, P TIPTON, ADRIANNE BioTuf BioTuf Meat and Produce trays 2019, trays made in Launched produce and compostable meat freezer friendly.from are microwave and sugarcane safe Soak-proof PLA, with versions plastic. lined are a plant-based Senior Vice President, Innovation President, Vice Senior

EcoCraft Sandwich Bag Paper Wrap & Liner & Liner Paper Wrap ® certifications and field testing to determine and verify verify and to determine testing field and certifications EcoCraft category at the

with choice, Novolex launched recently additional also several with choice, molded fiber packaging, made molded fiber made packaging,

Insulated Sandwich Wrap TM ® compostability for many products. Standards include those issued by ASTM International – by ASTM – issued those International include Standards products. many for compostability ASTM D6400including ASTM pursue also and (for We D6868 bioplastics) items). (for fiber-based testing field in (BPI) Institute participate Products and Biodegradable by the issued certifications others. among Grove, (CMA) Cedar and Alliance Manufacturing Compost the with NOVOLEX RELIESNOVOLEX ON STANDARDS, TO PROVIDE CUSTOMERS non-fluorinated product categories with oil- and grease-resistance, some compostable. are of which from reclaimed sugarcane fiber, usespropriety compounds to achieve grease-resistance fluorinated conventional of use the without also meets Vanguard chemistry, known PFAS. as latest requirementsBPI’s for compostability certification effect into went that on Jan. 1, industry an first2020, product for this category. Vanguard Vanguard Vanguard 2019 Foodservice Awards. Packaging Our Vanguard line of molded fiber molded of line productsOur Vanguard won First the in InnovationPlace in Manufacturing COMPOSTABLE PRODUCTS Dubl Shield

PAGE 24 OPERATIONS02

Operations

A T NOVOLEX, WE TAKE PRIDE IN REDUCING OUR IMPACTS ON THE ENVIRONMENT ACROSS OUR

MANUFACTURING OPERATIONS. TO OPERATE SUSTAINABLY

WE IMPLEMENT A VARIETY OF STRATEGIES. THESE CAN

INCLUDE USING RECYCLED CONTENT, OPTIMIZING THE

USE OF RAW MATERIALS, INVESTING IN ENERGY EFFICIENCY

AND REDUCTION MEASURES, AND REDUCING THE AMOUNT

OF WASTE SENT TO LANDFILLS. WE ALSO ENCOURAGE

OUR EMPLOYEES TO SHARE IN THE RESPONSIBILITY FOR

REDUCING OUR ENVIRONMENTAL FOOTPRINT, CREATING

A CULTURE THAT VALUES AND DRIVES IMPROVEMENTS

IN OPERATIONAL SUSTAINABILITY. 02PAGE 26 PAGE 27 OPERATIONS

WATER CHILLER SYSTEM – CHELMSFORD, MASS.02 THE NOVOLEX ENVIRONMENTAL EMISSIONS AND ENERGY MANAGEMENT SYSTEM (EMS) sets out our In 2018, Novolex acquired The Waddington Group, standards for environmental performance NOVOLEX is committed to reducing our adding both injection molding and thermoforming contribution to global emissions. In 2019, we across the company. Our Director of technologies to Novolex manufacturing capabilities. Environmental Compliance oversees improved our data collection processes to Both thermoforming and injection molding use heat operational impacts across our diverse include the emissions data from all our global to manufacture products. In thermoforming, plastic operational portfolio. Working with our manufacturing operations. These improvements sheet is heated to a pliable forming temperature. local environmental, health and safety (EHS) were also applied to 2018 data as we continue In injection molding, both heating and cooling are managers, we work on a facility-by-facility to build a robust baseline inventory. Energy important parts of the manufacturing process. basis to identify operational impacts of our use is a significant driver of emissions at our sites, whether on air, water or waste, and manufacturing facilities, with most of our energy Injection molding uses heat to melt resin or pellet develop a plan to reduce any potentially use coming from natural gas and electricity. into a liquid, which then can be poured into molds negative impacts. Our plans are driven not only Recognizing the impact of our energy use, to make specific shapes. by relevant environmental regulations, such we continue to prioritize energy efficiency as emissions reporting, but also our voluntary improvements at our plants that enable us to Both heating and cooling require energy, which commitments related to non-hazardous continue reducing emissions. Examples of those makes efficiency in operations important. waste and greenhouse gas emissions. We investments are included below. Recognizing opportunities to improve chilled water train our EHS professionals at the site level to flow, retain temperature and reduce overall water monitor and manage these impacts, including use, Novolex engineers pursued an investment offering professional training courses on TOTAL ENERGY CONSUMPTION TOTAL GHG EMISSIONS to overhaul the water processing system in our environmental management. We maintain Chelmsford, Mass. facility by using chilled process regular communication between our sites and 3,500,000 400,000

E loops to pump cooled water through pipes to cool corporate-level EHS teams, with periodic visits 3,000,000 2 300,000 equipment and tools in the injection molding to each manufacturing location. 2,500,000 2,000,000 operation. Manufactured with a very precise 200,000 amount of raw material that reduces waste, All Novolex facilities comply with federal, 1,500,000 1,000,000 100,000 injection molded products are then cooled and state and local environmental regulations. GIGAJOULES 500,000 hardened into finished product. We regularly conduct audits – both METRIC TONS CO 0 0 internally and with third parties – of each 2018 2019 2018 2019 site to review compliance with regulations, Other regulated emissions evaluate programs and review processes. We DIRECT ENERGY INDIRECT ENERGY SCOPE 1 SCOPE 2 At Novolex, we have implemented environmental incorporate audit findings into our policies, GHG Emissions (Metric Tons of CO e) management systems processes to track permits regularly updating them to reflect best 2 SCOPE related to emissions such as volatile organic practices to reduce the environmental impacts 2019 2018 compounds (VOC), nitrogen oxides (NOx) and of our facilities. Total Scope 1 30,246 27,895 sulfur oxides (SOx). To track implementation of

MEETING CUSTOMER GOALS our environmental management systems, we In the coming years, Novolex plans to better Total Scope 2 280,226 279,416 conduct internal audits annually focused on understand and quantify our operational (Location-Based) We recognize that our customers have set compliance management. environmental impacts. In particular, as a Total Scope 2 ambitious sustainability goals. We engage 288,951 288,134 company that has grown through acquisitions, (Market-Based) We comply with federal and local regulations in we are working to establish best practices with our customers to identify areas where From 2018 to 2019, our Scope 1 emissions increased by 8% all the locations we operate in and continue to in data collection, monitoring and reporting we can help drive their environmental due to an increase in production. In 2019, our Scope 2 emissions evaluate measures to reduce emissions in our across the business. performance in a positive direction. remained relatively the same compared to 2018. In 2020, we operations. In the future and as stated above, will begin purchasing renewable energy to further reduce our PAGE 28 PAGE 29 emissions as a company. we endeavor to establish tracking and reporting methods for companywide data sets related to these emissions. PAGE 31 02 OPERATIONS

content and are certified by SCS certified by SCS are and content For the last several years, Home Depot Depot Home years, several last the For increase to partnered have Novolex and their in content recycled of amount the Depot retail Home bags. retail branded 30% recycled least at contain now bags Global Services. haulers, withour own post-industrial waste outs” from plastic handlestreams, “cut as such retail bags. of Use post-industrial content, helps Novolex use more post- cleaner, is which proprietary our in resin materials consumer blends. These blends of post-industrial and important are post-consumer materials for use thin-gaugein films because the higher quality of post-industrial streams helps address challenges material. post-consumer by brought The manufacturing technology exists use to recycled plastic in bags, 100% to up content Novolexand manufactured recently has bags or greater recycledcontaining 75% content. trade-offs there are However, with come that the increased use of recycled Bags with content. higher recycled made or from resin content, tan used bags, often gray, are bags results in that customers our with work to continue We blue. or packaging balance provide bagsto that design requirements and use of recycled plastics.

low-density PE products, along with traditional low-density products, traditional with PE along HD-centric streams. Our North facility Vernon uses and a wet dry filter to process out compound contaminants, and for thin-gauge use in processing material film post-consumer combine applications. We scrap bales sourced from retailers and waste Our North Ind. facility Vernon, historically has specialized molecular high in high- weight film recycling. (HDPE) density polyethylene with shifts packaging in design However, DropandOff” the rise of “Store labeling, the low-density of concentration film types has the facility processes not only increased. Today, post-consumer molecular but high HDPE weight low-densityalso and polyethylene linear (LDPE) such items low-density (LLDPE) polyethylene plastic HDPE retail film as as well bags as from dry newspapers, produce, cleaning, paper towel wrappers resealable bags and other over-wraps, and more. The shift the types in of products recycled Novolex at so innovation driven has can support we that number a growing of In our two recyclingfacilities, these processes vary streams. material different waste accommodate to

y

t

i

l i

Non-Stretch LD Non-Stretch o c a

n F

a g

w

n LD PE a i

l

h c Film Sources Film S y c e R

Stretch Wrap Stretch

r Newspaper Bags Newspaper e

n t

o n e

n

r C

e g

V

n

i h l

t c

r y Film Sources Film o

HD AND LD PE HD c N e

HD Plastic Bags R

facilities have incentives in place that aim to minimize manufacturing waste through manufacturing minimize to aim that place waste through in incentives facilities have Dry Cleaning Film Cleaning Dry Flexible filmsFlexible In our polyethylene films-based businesses, includes which retail bags, can liners and a range of specialty and custom films, leverage our complementary we operations waste sent reduce to to landfills our recycling using by turn post-industrial facilities to scrap fromone facility material raw into Reuseand recycling of films another. in serve further to the reduce already-low carbon footprint of flexible packaging. ALL NOVOLEXALL WASTE DIVERSION ANDRECYCLING DIVERSION WASTE

source reduction, reuse and recycling programs. We have implemented processes to ensure internal reduction,source internal implemented ensure reuse and recycling processes to have programs. We captured,waste streams are sorted and reused the manufacturing in process. These programs look different based the type. same remain material on the the – optimize useraw of The goals, however, waste. and minimize material raw

PAGE 30 OPERATIONS

BAG-2-BAG 02 Other waste streams

For years, Novolex has partnered with local retailers and grocers across the nation to install plastic bag drop- Managing hazardous waste is an important off sites for the Bag-2-Bag® program. Many municipal recycling facilities lack the proper equipment to efficiently part of our commitment to environmental collect and process plastic films. For this reason, some facilities (commonly referred to as “MRFs” or Material stewardship in our operations. Over the last Recovery Facilities) exclude plastic films from their collection programs, even though they are highly recyclable. three years, we have implemented programs, updated emergency procedures and provided Recognizing early the need for solutions, Novolex invested in vertically integrated plastic bag manufacturing environmental awareness training to Novolex and recycling plants that process materials collected through Bag-2-Bag. staff to reduce waste and prevent spills. We There are more than 18,000 locations across the U.S. and Canada that collect plastic film for recycling. prioritize waste management by increasing efficiency in our processes to reduce waste and recycle wherever possible. We also focus on Rigid plastics minimizing the generation of hazardous waste. In the Novolex rigid plastics businesses, For example, we use water-based inks for products are manufactured using two primary our food packaging products, where possible. processes: thermoforming and injection Novolex will continue to evaluate specific molding. Injection molding injects a precise projects that minimize waste and reduce the amount of liquid resin into a mold, producing potential for spills that could impact limited manufacturing waste. the environment.

Thermoforming uses a sheet of plastic that is fed into a machine that uses heat to form Over the past decade, Novolex has invested different shapes and depths. When designing in and installed multiple internal recycling a thermoforming process for production, lines so that we can capture, reprocess and Katie Bohm, Office Coordinator, and Ryan LaRock, several factors are considered, and engineers use engineered waste. This includes multiple Production Supervisor, stand in front of “clean” PCR scrap work to generate as many useable products "in-line" grinders that capture waste and feed at the Shawano recycling facility. from a single sheet as possible. However, it back into the sheet extruder automatically. thermoforming produces manufacturing Shawano, Wisc. "Off-line" reclaim grinders capture the waste when the borders of a sheet are not Our Shawano, Wisc. facility specializes in remaining waste for reprocessing. utilized as part of the product. This is known as Novolex Pellet Retention Program recycling linear low-density (LLD) “stretch “engineered waste,” and nearly all this material Novolex participates in Operation Clean wrap,” often sourced from distribution is reclaimed and reused. Sweep®, a voluntary plastics industry program centers. This material is considered post- designed to prevent pellet and flake loss into consumer material, even though it comes from the environment. commercial enterprises, because it has entered

the marketplace and been reclaimed and sold Using Operation Clean Sweep principles as back into the marketplace for recycling. The a foundation, Novolex has customized our Shawano facility also recycles post-industrial operations procedures and training programs. film. As a result, the facility’s 25 million pounds Using a team composed of representatives from of recycling capacity is roughly divided equally across our resin-based manufacturing facilities, between processing post-consumer and we developed a single standard for excellence post-industrial streams. Material recycled in Through years of process engineering and investments – the Novolex Pellet Retention Program – a in manufacturing, thermoforming operations focus on Shawano is increasingly manufactured into consistent process to monitor, manage and optimizing the use of raw material, capturing engineered resin for thicker bags, which includes some waste so it can be reused. This reduces our reliance on eliminate pellet loss to the environment. retail bags as well as can liners. virgin content. PAGE 32 PAGE 33 OPERATIONS WATER USE 02 WATER use is an important sustainability issue for many companies. Based on prior water assessments and FOOD AND PRODUCT SAFETY the nature of our products, we would expect to have low impacts from water use. Novolex is working to finalize the results of our material issues prioritization to better understand the importance of water to our THE NOVOLEX commitment to food and Most food safety GFSI standards require company and stakeholders. We have grown through acquisitions in the last few years and are working on product safety starts at the highest levels periodic testing of a defined crisis management developing capabilities to track water use across our portfolio. At this time, we are unable to report on total of leadership and resonates throughout the plan. As such, Novolex conducts mock crisis water withdrawn and consumed at all our global manufacturing sites in 2019. In the future, we will seek to organization, creating a culture of shared exercises annually to test our procedures further understand our water use and identify priorities for our more water-intensive operations, such as beliefs and practices. Since our last report, around emergency management and our two recycling facilities and injection molding operations. six additional plants that supply the food contingency planning. This is one of many processing and foodservice sectors received reasons we were well prepared to respond to Safe Quality Food (SQF) certification, the COVID-19 crisis. FUEL USE FOR FLEETS bringing our companywide total to 33 food As a critical infrastructure industry, we relied NOVOLEX relies on trucks to transfer materials safety-certified plants. Pooling on our existing, routine business practices between Novolex facilities and ship goods to Instead of small, less-than-truckload (LTL) These manufacturing centers produce food to continue to mitigate food safety risks. We customers. We are making a concerted effort to orders on multiple carriers, efforts to “pool,” packaging and comply with the food safety maintained production at many of our facilities reduce our Scope 3 emissions by streamlining or consolidate onto fewer trucks, helps achieve guidelines established by the Global Food in order to support the food supply and health shipments to reduce reliance on truck freight greater utilization of fleets. Our customer Safety Initiative (GFSI). Compliance with GFSI care sectors of the economy. We embrace that miles. Over the last two years, through evaluation service, shipping and sales teams work is achieved through certification to accredited obligation and recognize a commensurate of potential consolidation of distribution together to support our customers and save standards such as the Safe Quality Food (SQF) responsibility to protect the safety and well- and customer shipments, we have reduced freight miles, working to identify multiple small Program and the British Retail Consortium being of our employees. To reduce exposure unnecessary freight miles and improved speed orders that will reach similar geographies. Global Standards (BRCGS). GFSI-recognized to COVID-19 in our facilities, we introduced of service to customers. Our net CO emissions 2 Common point of origin standards are designed to meet industry, a variety of enhanced measures following from our internal transfer and customer When we receive international shipments, we customer and regulatory requirements for all guidance from public health organizations. shipments for 2019 are reported below and show aim to identify more efficient delivery locations sectors of the food supply chain. Our facilities Novolex has adopted a single, company- a favorable trend. Some of the efforts driving for customer shipments so we can streamline are monitored annually by accredited third- wide approach intended to maintain a high these improvements include: distribution to different sites or warehouses. By party auditors to verify compliance with all set of standards for minimizing exposure of ensuring we place products in the most optimal applicable standards. people and products to the virus wherever our Intermodal transfers point of origin, we are able to direct imported products are used. For intercompany shipments, we use intermodal items so that products end up closer to the transfers, or combinations of truck and rail, to end customer. reduce the amount of truck freight miles needed to transfer materials between sites. By using rail for large material transfers, we can use trucks only for the final miles of a delivery. TRACY BATES Director, Corporate Quality

EMISSIONS FROM FLEET “The world changed significantly in 2020 due to COVID-19. Each of our day-to-day E 2 200,000 lives has been impacted in many and varied ways. One thing has not changed even GHG Emissions (Metric Tons of CO e) amidst the crisis - Novolex's unwavering commitment to food and product safety.” 150,000 2 SCOPE

100,000 2019 2018

50,000 Fuel from Fleets 172,840 193,973 0 METRIC TONS CO PAGE 34 2018 2019 PAGE 35 PAGE 37 03 COMMUNITIES COMMUNITIES and

PEOPLE investing in our E BELIEVE INVESTING IN OUR PEOPLE AND OUR COMMUNITIES PROVIDES BETTER RESULTS FOR NOVOLEX NOVOLEX FOR BETTER RESULTS PROVIDES COMMUNITIES AND A POSITIVE IN IMPACT THE COMMUNITIES WHERE WE LIVE AND WORK. WE STRIVE PROVIDE TO OUR EMPLOYEES WITH A BEST-IN-CLASS SAFETY AS CULTURE, WELL AS OPPORTUNITIES DEVELOP TO NEW SKILLS AND ACCESS BENEFITS. OTHER AND COMPENSATION COMPETITIVE TO THESE BENEFITS INCLUDE AND HEALTH TO WELFARE ACCESS CARE FOR OUR NOVOLEX FAMILIES. AS MEMBERS OF THE COMMUNITIESIN WHICH WE WE OPERATE, SUPPORT DIRECTLY THAT ACTIVITIES EMPLOYEE ENCOURAGE AND CONTRIBUTE OUR TO COMMUNITIES AND OTHER CAUSES ARE IMPORTANT THAT NOVOLEX. TO W Communities AND

INVESTING IN OUR IN INVESTING People

PAGE 36 03 PAGE 39

03

COMMUNITIES COMMUNITIES and

PEOPLE

Bag business unit ® investing in our COLOR VARIATIONS COLOR professionals in 2019: Ivan OFFICIAL LOGOS OFFICIAL Novolex a Regional Environmental Health & who supports the Novolex Hilex business business Hilex Novolex the supports who supports the Novolex Duro

and industrial hygiene for Novolex. At the time of the award award the of time the At Novolex. for hygiene industrial and Laminations Specialty the managing was she 2019, in with results exceptional achieved had which unit, business 390-940 free. location injury each days an selects University Southern Columbia year, Each a pool from Year” the of Professional Safety “Outstanding to award the CSU created 300 than nominations. more of June. in annually observed Month, Safety National recognize CHERYL RATCLIFF, this for up” “runner as the selected was Manager, Safety in award 2019. NEXGEN LEADERS AWARDS Safety Health, Environmental, for Association National The and Sustainability Management (NAEM) presented NexGen to two Awards Leaders Marquez, Regional Environmental Health & Safety Manager, Manager, & Safety Health Environmental Regional Marquez, Manager. & Safety Health Environmental Pippin, Jennifer and MARQUEZ, MR. inspection safety a mobile of implementation the led unit, The locations. manufacturing Novolex all across system real- provides and inspections, clipboard eliminated system time data tracking and completion-submission verification. MS. PIPPIN 1 COLOR (BLACK) 1 COLOR REVERSED1 COLOR AWARDS AND RECOGNITION AWARDS Novolex was honored to receive the "Safety Company of the Year" designation from the Plastics Industry from Industry Plastics the designation Year" the "Safety the of to receive Company honored was Novolex safety outstanding with industry a plastics recognizes company award Association This 2019. in criterion A core environment. work a safe around revolves that a culture and performance prior year the in work a safe in improvements to measurable led that a safety of program account is a detailed award this for implementation. after environment their for facilities Novolex 15 recognized also program Statistics Awards Safety, and Association’s The (OSHA) Administration guidelines. Safety Health Occupational on and based safety achievements individual 1 COLOR 1 REVERSED2 COLOR

TIR RATE TIR 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00

2019 Industry TIR Rate 2018 2017 TIR Rate “In order to build a best-in-class operations culture, the emphasis on safety has to be embraced at every level of the organization. That’s what have we strived to do at Novolex. are grateful We to our Health and Safety team and the thousands of men and women in our Novolex family who work every today ensure safety is at the heart of everything do.” we NOVOLEX- INCIDENTSNOVOLEX- VS TIR RATE of Novolex facilities, keeping our employees safe is a top priority. Employees at of Novolex facilities, keeping our employees safe at priority. Employees a top is 2016 0

50

150 350 100 250 200 300 INCIDENTS BEN MASCARELLO Improved Total Injury Rates Recordable Total Improved ACROSS THE BREADTHTHE ACROSS SAFETY safety our positive continued we trend by companywide. zero injuries Our In 2019, achieve goal to is This TIR figure for accounts Injury (TIR) Rate bringing 1.7. oursuccessfully companywide to rate Total strong safety did not have the time of acquisition at progress madethat businesses with acquired track declined recordable total for injury by these have acquisitions, when rates records. accounting Even both our manufacturing and offices centers deserve and expect a safe working In order environment. to implemented industry-leading an have we promise, deliver on this workplace safety policy and program safety report improves We that performance our safety the company. across performance the Senior to on a weekly the Board and basis, to Directors of Leadership Team monthly. more than 60% since 2014. more 60% 2014. than since Chief Operating Officer, Novolex

PAGE 38 investing in our PEOPLE and COMMUNITIES03

ETHICS AND INTEGRITY

NOVOLEX understands that our reputation rests Supplier Expectations Ethics & Compliance Helpline If you suspect or have reason on the conduct of every member of the Novolex Responsible business practices and ethical As a further part of our commitment to to believe human rights abuses are family. We hold our employees and business conduct are fundamental to every aspect of our responsible and ethical business conduct in partners to the highest ethical standards and occurring, or have other concerns, please operations. As vital business partners, we expect our supply chain, we provide suppliers and weave this expectation through the fabric of our suppliers to abide by the same principles their employees access to the Novolex Ethics & contact the Novolex Ethics & Compliance our culture and everyday communications. The for responsible business conduct, while at the Compliance Helpline, an independent ethics and Helpline. To make a report through Novolex Employee Code of Conduct sets out same time providing us with the highest quality compliance resource that can be used to report seven guiding principles of ethical conduct and the Helpline and speak to a specialist products and services. potential violations of the Supplier Code of compliance for our business interactions. Every Conduct without fear of retribution. The Helpline 24/7/365 in multiple languages, call the employee must adhere to this code at all times The Novolex Supplier Code of Conduct provides utilizes an automated system that facilitates an toll-free number 1-888-852-6208, or and employees are required to review the code our suppliers with expectations for their efficient assessment and investigation process. on an annual basis. visit www.ethicspoint.com to make a behavior on a broad scope of activities. The Reports made through the Helpline can remain Code addresses the need for suppliers to adhere anonymous and confidential. report online. to all laws and regulations and adopt policies and practices that respect human rights, strive Seven Guiding Principles to reduce the impact of their operations on the of Ethical Conduct environment, promote the health and safety TALENT DEVELOPMENT of their employees, promote data security and prevent bribery and corruption, among NOVOLEX provides a wide range of on-the- 1 Obey the law other provisions. job training, development and career-entry support programs to continually strengthen and 2 Avoid conflicts of interest develop employees and provide enhanced career Human Rights opportunities for our Novolex family. Many of our 3 Keep accurate and honest records As an organization, we are committed to being programs have been successful in encouraging part of the solution to address inequality in employee retention and providing employees new DEANA PACCADOLMI NILSEN 4 Honor business obligations our supply chain. If we suspect human rights opportunities with the organization Director, Human Resource Programs abuses, or have reason to believe suppliers are not adhering to the requirements of our 5 “With Novolex University, many more Treat people with dignity and respect Introducing Novolex University Supplier Code of Conduct, we reserve the right employees will have the opportunity to investigate, including conducting third-party 6 Be a responsible global citizen In 2019, to further support our efforts, Novolex to participate in our comprehensive audits and requesting corrective actions until University was launched across our portfolio employee and leadership we are confident all concerns related to human of brands. We design Novolex University 7 Protect company information, development curriculum. It’s an rights have been appropriately addressed. Failure programs to enhance employee skills and job- assets and interests exciting step for Human Resources to satisfy Novolex can result in termination of a specific knowledge, as well as interpersonal and team leaders across the company supplier’s contract. To drive progress in this area, communication, leadership and other important to be able to provide resources in 2019, we initiated a self-assessment process competencies. Programs are conducted online that prepare our employees for for our largest 150 suppliers. This detailed annual and in-person depending on the curriculum the future.” verification process is an important step in and duration. ensuring suppliers comply with all Novolex expectations. PAGE 40 PAGE 41 investing in our PEOPLE and COMMUNITIES

COMMUNITY ENGAGEMENT 03

AT NOVOLEX, giving back to the local communities that support us is important at all our locations. We prioritize our philanthropic efforts at each location based on feedback from employees and, through these efforts, have donated to many different non-profit organizations, including the Special Olympics, Boy Scouts of America, local hospitals, cancer research institutes, food banks and more. In some instances, we donate Novolex products, such as utensils, plates and cups, to local nonprofits to distribute to those in need.

Move for Hunger

Move for Hunger is a national nonprofit organization that has created a sustainable way to reduce food waste and fight hunger. The organization mobilizes leaders of the moving, relocation and multifamily housing industries to provide their customers, clients Green411 and residents with the opportunity to donate As part of our commitment to sustainability, in their food when they move. Members of Move 2019 Novolex launched Green 411: Environmental for Hunger also organize community food Stewardship through Knowledge and Positive drives, participate in awareness campaigns and Action. This series, which is available to all create employee engagement programs. employees via their mobile device, is dedicated The Novolex Duro Bag division provides to teaching employees about sustainability. support to the organization by providing bags Every member of the Novolex family has an used for food collection. In 10 years, Move for opportunity to support recycling and other A Novolex Duro bag used to collect donated food. Hunger has delivered more than 17 million practices that benefit the environment as pounds of food to food banks across the U.S. well as serve as an example to others in their As part of the Novolex Running Crew, employees in dispersed and Canada, providing more than 14 million communities. At the same time, Green 411 Novolex hometowns come together to support and challenge each other to live a healthier lifestyle. meals to individuals in need. raises awareness among employees about the company’s initiatives to reduce our Second Chances environmental footprint and their individual Engaging Employees in Living Healthy contributions to help meet our goals. Novolex adds new meaning to the concept of Novolex believes in second chances. In long-distance running. Novolex employees one of our ongoing programs, Novolex is RETHINK: based in more than 60 plants, warehouses and partnering with the Women’s Division of administrative offices post information on the Department of Corrections in Indiana Novolex offers support to employee families their daily runs – and compete in virtual races to support its work-release program. For the – using a mobile app. Also in 2019, Novolex caring for children with special needs by last 18 months of their sentences, nonviolent inaugurated the Novolex Running Crew in providing free access to resources through the offenders are offered full-time positions which groups of experienced runners, joggers, Rethink program. Employees have access to at our bag manufacturing and recycling walkers along with first-time race participants 24/7 live support from a behavioral expert, center in Indiana. At the conclusion of their come together to train, encourage one another as well as a library of how-to videos, tips sentences, those women who have met our and have a great time on race day. and best practices. criteria have the opportunity to continue their employment with Novolex. Many of those who participate in the work-release

PAGE 42 program choose to move into the area to PAGE 43 become members of the community. PAGE 45

About Novolex About Novolex Hartsville, South Carolina About Novolex Markets Served and Our Products About Novolex Our Employees Sourcing Material Raw OurContinuing Growth About our Report; About Novolex Partnerships Policy and CEO Message Ethics and Integrity Ethics Helpline Compliance & Governance Governance Governance Governance Bikulege Stan CEO, and Chairman Governance Report our About Governance Governance Partnerships Policy and January-December 2019 Report our About Report our About Report our About Index Content Standards GRI Ethics and Integrity Supplier Expectations, Human Rights Operations Development Talent Engagement Community Report Location

Name organization the of Activities, brands, products, services headquarters of Location Location of operations servedMarkets Scale of the organization Information on employees and other workers Supply chain Significant changes to the organization and its supply chain External initiatives Membership associations of decision-maker senior from Statement behavior of norms and standards principles, Values, Mechanisms for advice and concerns about ethics structureGovernance Delegating authority topics social and environmental economic, on stakeholders Consulting Composition of the highest governance body and its committees Chair of the highest governance body Role of highest governance body in setting purpose, values and strategy Identifying and managing economic, environmental and social impacts Review of economic, environmental and social topics Highest governance body’s role sustainability in reporting List of stakeholder groups Reporting period Date of most recent report Reporting cycle Contact point for questions regarding the report GRI content index Management Approach: Ethics and integrity chain Supply Approach: Management Environment Approach: Management management Talent Approach: Management Engagement Community Approach: Management General Disclosures General Profile Organizational Strategy 102-14 andEthics Integrity 102-16 102-17 Governance 102-18 102-19 102-21 102-22 102-23 102-26 102-29 102-31 102-32 Engagement Stakeholder 102-40 102-50 102-51 102-52 102-53 102-55 103-1,2,3 103-1,2,3 103-1,2,3 103-1,2,3 103-1,2,3 102-1 102-2 102-3 102-4 102-6 102-7 102-8 102-9 102-10 102-12 102-13 GRI STANDARDS AND SASB CONTENT AND SASB INDEX GRI STANDARDS index readers assist will the locating GRIThis framework in content to relevant Novolex Standards disclosures otherwise unless noted. This index incorporates also applicable elements principlesfrom and of content 2016, with the associated Containers & Packaging disclosures Board (SASB) Standards the Sustainability Accountings Industry Standards.

Employees fromEmployees removed Jacksonville, in the Fla. Hilex plant trash from as effort beach a nearby part a cleanup of organized by the city’s Keep Jacksonville Beautiful Commission. As sponsors proud Jennings of County School, High the Hilex Recycling Center North in Vernon, students Ind. educates and the community plastic about Hilex’s through recycling bag the sponsorship Additionally, program. recycling Bag-2-Bag aims to promote opportunities job for students graduates. and

Alex’s Lemonade Stand Lemonade Alex’s was Foundation Stand Lemonade Alex’s the mission established continue to 2005 in Alex, of four-year-old while fighting who, her set a lemonade up battleown against cancer, stand help raise to money for “her doctors findto for a cure” childhood all cancers. In research, addition funding to innovative provides Foundation Stand Lemonade Alex’s emotional, financial and logistical support childhoodto the nation. cancer families across In 2019, the Novolex sales team raised $25,000 the Novolex sales raised team $25,000 In 2019, support to childhood cancer research.

PAGE 44 2018 3,178,186 GJ 82% 0% 0 GJ 2019 GJ 3,217,840 81% 0 % 0 GJ

Total Energy Consumption Total Electricity Grid Percentage Renewable Percentage Energy Self-Generated Total Ethics and Integrity Raw Material Sourcing Material Raw Sourcing Material Raw Sourcing Material Raw Sourcing Material Raw Sourcing Material Raw Product Lifecycle Emissions and Energy Emissions and Energy Emissions and Energy Emissions and Energy Emissions and Energy Emissions and Energy* * Represents transportation Emissions and Energy Safety Safety TIR. discloses Novolex Development Talent There are eight members of the Board of Directors as of there was one female In2020. 2019, Director, and as of July there 2020, are two female Directors. None Products Report Location Number of recalls issued, total units recalled Discussion of process to identify and manage emerging materials and chemicals of concern Promotion of worker health worker of Promotion of injuryTypes and rates of injury, occupational diseases, lost days and absenteeism, and number of work-related fatalities Programs for upgrading employee skills and transition assistance programs Diversity of governance bodies and employees Direct GHG emissions (Scope 1) Gross global Scope 1 emissions, percentage covered under emissions-limiting regulations Discussion of long-term and short-term strategy or plan to manage Scope 1 emissions, emissions reduction targets and an analysis of performance against those targets Energy indirect (Scope GHG 2) emissions Other indirect GHG (Scope 3) emissions Reduction of GHG emissions Materials used by weight or volume Recycled input materials used Reclaimed products and their packaging materials woodTotal fiber procured, percentage fromcertified sources Percentage recycled of raw materials from: content, (1) renewable(2) resources renewable and (3) and recycled content Discussion of strategies to reduce the environmental impact of lifecycle its throughout packaging organizationEnergy within the consumption energy Total consumed, percentage (2) (1) grid electricity, percentage(3) renewable total and self-generated (4) energy Communication training and about anti-corruption policies and procedures Energy Economic Anti-Corruption Product Safety Diversity and Equal Opportunity Training and Education and Training RT-CP-250a.1. RT-CP-250a.2. Occupational Health and Safety 405-1 Social 404-2 403-6 403-9 305-5 305-2 305-3 Emissions RT-CP-110a.2. 305-1 RT-CP-110a.1. 302-1 RT-CP-130a.1. RT-CP-410a.3. Materials 301-1 301-2 301-3 RT-CP-430a.1 RT-CP-410a.1. Environmental General Disclosures General 205-2 PAGE 46 Novolex® develops and manufactures diverse packaging and foodservice products that touch nearly every aspect of daily life for multiple industries ranging from grocery, food packaging, restaurant and retail to medical applications and building supplies. The Novolex family of brands provides customers with innovative paper and plastic solutions for their business needs today while investing in research and development to engineer more sustainable choices for the future.