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Global Citizenship Report 2016

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Global Citizenship Report 2016 2016 GLOBAL CITIZENSHIP REPORT CRE AT I N G V A L U E F OR A L L STAKEHOL DER S F OR G E N E R AT I O N S T O COME GIVEN TO CHARITABLE $17 Million CAUSES OF OUR FIBER IS THIRD-PARTY RESTATED WATER 34% CERTIFIED STEWARDSHIP GOAL EMPLOYEES IN MORE REDUCTION IN GHG THAN 24 COUNTRIES 19% EMISSIONS SINCE 2010 55,000 INCREASED JOINED THE GOAL: 30% REDUCTION IN AIR EMISSIONS BY 2020 NATURAL REDUCTION CAPITAL IN SERIOUS SAFETY COALITION INCIDENTS 39% SINCE 2010 CONTENTS About this Publication 2 CEO Message 4 2016 Highlights This report has been prepared in accordance with the GRI Standards: 6 Strategy Core option. GRI is a universally applicable, comparable framework that facilitates transparency and accuracy. 9 General Unless otherwise indicated, information is from the 2016 calendar Disclosures year, and data are accurate as of Dec. 31, 2016. 31 Specific Standard This GRI Report is supplemented by our 2016 Company Overview, Disclosures 2016 Annual Performance Summary and other information available at internationalpaper.com. We welcome suggestions and 59 Custom encourage open dialogue on opportunities to improve. Please email Content Index [email protected] to provide feedback or to request more information about topics covered in this report. 62 Glossary 68 Vision 2020 Goals Scorecard Global Reporting Initiative 2016 1 A Message from Mark Sutton Chairman and CEO Our vision is to be among the most successful, sustainable and responsible companies in the world. in esting PEO Throughout 2016, we collaborated with employees across nv PL I E the company to refine our vision to reflect our core values E and beliefs. This vision will guide our future. It reinforces C Im N how we strongly care about our employees and the pride p A r o we feel in our products that people depend on every day. M v R i n It defines how we operate safely and sustainably and O g F Sustaining o aligns all that we do to improve people’s lives, the R u E FORESTS r P planet and our company’s performance. It fortifies our P L d A commitment to deliberate improvement. e r i N p E s T n I Last year we developed The IP Way Forward, our framework to engage, align and inspire our 55,000 employees. We use this framework to drive In n S results, enrich our culture, attract the next generation ova CT tive PRODU of talent and strengthen our reputation as a responsible leader in the packaging, pulp and paper industry. THE IP WAY FORWARD 2 International Paper The IP Way Forward consists of fi ve Strategic Drivers. We have reduced greenhouse gas emissions by 19 percent, improved water effl uent quality by 28 percent and increased our certifi ed fi ber purchases Sustaining FORESTS by 31 percent over the 2010 baseline. Our entire business depends upon the sustainability of forests. We will continue to lead the world in responsible We also accelerated our efforts to mobilize our people, forest stewardship to ensure healthy and productive forest products and resources to address critical needs in the ecosystems for generations to come. communities where our employees live and work. Our efforts are focused on four Signature Causes for People (Education, Hunger, Health and Wellness and Disaster Relief) Investing in PEOPLE and four Signature Causes for the Planet (Forests, Water, We make sustainable investments to protect and improve the Air and Responsible Sourcing). Last year, we contributed lives of our employees and mobilize our people, products and more than $14 million to help address these causes. resources to address critical needs in the communities where our employees live and work. Our employees also contributed an additional $3 million for a total community engagement impact of $17 million in 2016. We are committed to helping ensure that our Improving our PLANET communities are also successful and sustainable and We tackle the toughest issues in our value chain, reduce plan to increase fi nancial contributions and employee our environmental footprint and promote the long-term volunteering in our communities. sustainability of natural capital. Innovative PRODUCTS ALIGNMENT We create innovative, sustainable and recyclable products Our business and sustainability strategies are built that help our customers achieve their objectives. on a foundation of global markets and associated opportunities and risks. Our strategies and goals are aligned with the United Nations’ Sustainable Development Inspired PERFORMANCE Goals and stakeholder expectations. We deliver long-term value for all stakeholders by establishing advantaged positions in attractive, fi ber-based market We employ an incredible business model—we transform segments with safe, effi cient manufacturing operations near renewable resources into recyclable products that people sustainable fi ber sources. depend on every day. This cycle begins with sourcing renewable fi ber from responsibly managed forests and at the end of use, our products are recycled into new products at a higher rate than any other base material. We generate VISION 2020 PROGRESS 70 percent of the energy in our global mill system from In 2016, we continued our progress toward our Vision 2020 carbon-neutral biomass. This business model enables us Goals. Our increased and widespread focus on using safety to create innovative products for our customers, deliver leading indicators to ensure safe working conditions and value for our shareowners, provide sustainable livelihoods safe behaviors is protecting and saving lives. We have for 55,000 employees and thousands of supply chain reduced serious injuries by nearly 50 percent since 2012. partners, and address critical needs in our communities. We will never fi nish working on safety. Above all, we care I’m proud of our commitment to sustaining forests, investing about our colleagues, visitors and neighbors and we will in people, improving our planet, creating innovative products continue to keep safety at the forefront to ensure that and delivering inspired performance. This commitment is everyone arrives home safely at the end of each day. fueling our progress and sustainable long-term growth. Every day, I’m inspired by our employees, who not only We also made good progress in reducing our impact on the helped shape our vision, but are engaged in its pursuit. planet. In 2016, we accelerated our air emissions reduction target from 10 percent to 30 percent. We re-framed our water-use goal to shift from water management to watershed stewardship, including stakeholder engagement and annual Mark Sutton facility assessments. Chairman and CEO, International Paper Global Reporting Initiative 2016 3 2016 Highlights Sustaining FORESTS Investing in PEOPLE Improving our PLANET Our entire business depends We make sustainable investments We tackle the toughest issues upon the sustainability of forests. to protect and improve the lives in our value chain, reduce We will continue to lead the of our employees and mobilize our environmental footprint world in responsible forest our people, products and resources and promote the long-term stewardship to ensure healthy to address critical needs in the sustainability of natural capital. and productive forest ecosystems communities where our employees for generations to come. live and work. HIGHLIGHTS HIGHLIGHTS HIGHLIGHTS • Earned the Forest • Completed 2016 without • Increased our air emissions Stewardship Council® (FSC®) a single loss of life goal from 10% reduction to Leadership Award for forest 30% reduction by 2020 • Forty-eight percent of our certifi cation commitment employees have worked with • Restated our water and program innovation International Paper for more management goal to now • Created two new Private Reserves than 10 years include water stewardship of Natural Heritage, protecting • Implemented Safety Leading • Achieved a 19% reduction land totaling 288 acres in Brazil Indicators, a collection of in Greenhouse Gas (GHG) • Increased the amount of certifi ed seven metrics that every site emissions and a 28% reduction land managed under our measures on a quarterly basis in other air emissions since 2010 Certifi ed Forest Management • 3,922 First Line Leaders • Provided nearly 1 billion LLC by more than 400% trained and developed in 2016 gallons of drinking water • Achieved 31% increase in to communities • Invested $14 million to third-party certifi ed fi ber purchases address critical needs in • Reduced wastewater discharges our communities of oxygen-depleting substances by 28% since 2010 4 International Paper Creating Innovative PRODUCTS Delivering Inspired PERFORMANCE We create innovative, sustainable and recyclable We deliver long-term value for all stakeholders products that help our customers achieve by establishing advantaged positions in their objectives. attractive, fi ber-based market segments with safe, effi cient manufacturing operations near sustainable fi ber sources. HIGHLIGHTS HIGHLIGHTS • With the acquisition of Weyerhaeuser’s pulp • Seventh consecutive year above business, we have best-in-class manufacturing cost-of-capital returns assets and capabilities, a valuable patent • Fifth consecutive year of dividend increase portfolio and an expanded innovation team that will help us improve and grow our Global • $170 million strategic capital investments Cellulose Fibers business in our containerboard mills in Prattville, Ala., and Springfi eld, Ore., to expand capabilities • Continued to develop sustainable solutions that and improve effi ciency meet our customers’ needs, such as ClimaBin™, an ultra-strong, water-resistant container that is • $160 million
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