Sustainability

At the end of 2017, Clearwater Paper had approximately 3,300 employees (78 percent hourly and 22 percent salaried) across all operations. Women represented 17 percent of our total workforce.

At the end of 2018, Clearwater Paper had approximately 3,300 employees (78 percent hourly and 22 percent salaried) across all operations. Women represented 17 percent of our total workforce.

At the end of 2019, Clearwater Paper had 3,300 employees (78 percent hourly and 22 percent salaried) across all operations. Women represented 17 percent of our total workforce.

Region is not applicable as all company-owned operations are based in the U.S. Numbers are rounded to the nearest hundred.

Clearwater Paper has not formally adopted the precautionary principle.

Each year Clearwater Paper invests a substantial amount of resources to ensure we are constantly working towards our sustainability initiatives to reduce our environmental impact.

We are committed to operating a company that is both economically and environmentally sustainable and we continually consider the long-term effects of our work—from the use of raw materials to the everyday operations of our facilities. We strive to meet or exceed the complex and stringent environmental regulations that govern our facilities. We believe sustainability is a journey rather than a destination, and we are committed to minimizing our impact on the environment in a way that is consistently forward-thinking.

Baseline is the average of 2010 and 2011 of all facilities operating in 2017 and 2018 with the exception of the Shelby and Manchester facilities. The Shelby facility startup occurred in 2012 and its first full year of production in 2013 was used as baseline. Manchester Industries was incorporated into the baseline and included in reporting metrics utilizing 2017 data which was the first full year of operation under Clearwater ownership. Additionally, the Ladysmith facility was sold in 2018 and has been removed from the baseline. In 2019, the Paperboard Production was changed to net production to align with SASB Standards for all years.

The data contained in this report covers all of our manufacturing locations and include the most current annual data available. Data contained in this report may be adjustment resulting from additional data verification or changes to reporting methods.

See Code of Business Conducts and Ethics.

Anti-competitive behavior damages markets by negatively impacting competition. Anti-trust and monopoly practices can result in barriers to entry, which negatively impacts economies and stakeholders. Supporting high standards in business ethics and conduct facilitates the healthy markets and economies that support us and our stakeholders.

See Clearwater Paper’s Annual Reports and Code of Business Conduct and Ethics.

Using known-source material provides us with external assurance of supply chain integrity and preservation of biodiversity.

See Our Approach, Sustainable Products and Responsible Sourcing focus areas.

We track our energy use in order to meet our operational efficiency and greenhouse gas emissions reduction goals. Cost and production efficiency and reduction of environmental impact are continually improved through measurement and verification.

See Our Approach and Energy Efficiency and Emission Reduction focus areas.

Water is not only critical to our operations, but fundamental to preserving ecosystems and human health. We strive to manage our water use collaboratively, and we track our performance in consumption and water quality impacts for compliance and continual improvement.

See on our sustainabilty website Our Approach and Water and Land Stewardship focus area.

As part of our improvement goals, we will be conducting a water risk assessment. This risk assessment will, amongst other factors, evaluate the water stress rating of our water sources. We will share the results of our comprehensive water risk assessment once completed. We will also incorporate the water withdrawal sourcing in future reports.

Environmental regulatory compliance is one of our core principles and is tracked, measured, and verified through our Environmental, Safety, and Quality program. We strive to exceed regulatory requirements and hold ourselves to a higher standard through our approach to business ethics and compliance.

See Our Approach and Clearwater Paper’s Annual Reports.

We strive to retain employees by offering a market competitive compensation and benefits package, the ability to engage in meaningful work, and learn and develop in your career. We are also committed to fostering a safe work environment aligned with our core values.

See on our sustainability website Our Approach, Diverse and Inclusive Workplace focus area and Code of Business Conducts and Ethics.

Our comprehensive benefits package addresses our employees’ total wellbeing. Full time employees are eligible for medical, dental, vision, disability, income protection, as well as company and matching contributions in our 401(k) plans. Where our employees are represented by a Collective Bargaining Agreement; we provide them benefits as specified in their agreement.

See Diverse and Inclusive Workplace focus area.

We strive to maintain a diverse and inclusive workplace through our core values. This includes adhering to all requirements outlined in labor agreements and strictly following and reporting on our Code of Business Conduct and Ethics.

See Our Approach and Diverse and Inclusive Workplace focus area.

Maintaining a safe workplace is a priority and key focus of our organization. We encourage employee participation, manage and report incidents, and strive toward a zero reportable incident goal through continual improvement efforts in our health and safety management system.

See Our Approach and Safe Workplace focus area.

At the end of 2019, our OSHA recordable incident rate for 2018 was 2.19 and 2019 was 2.61.

See Safe Workplace focus area.

We strive to maintain a diverse and inclusive workplace through our core values. This includes adhering to all requirements outlined in labor agreements and strictly following and reporting on our Code of Business Conduct and Ethics.

See Our Approach and Diverse and Inclusive Workplace focus area.

We strive to maintain a diverse and inclusive workplace through our core values. We are committed to recruiting, promoting, and supporting a diverse workforce through equal opportunity.

See Our Approach, Diverse and Inclusive Workplace focus area and Code of Business Conducts and Ethics.

See Our Approach, Diverse and Inclusive Workplace focus area and Code of Business Conducts and Ethics.

During the reporting years 2017 to 2018 thirteen alleged incidents of discrimination were made, three of them via our hotline. All of them were investigated. One discrimination incident resulted in a settlement in 2017 and revising our record keeping practices to address an issue regarding GINA. As of the end of the 2018 reporting period there were four open matters. The other incidents were closed and were no longer subject to action at the end of the reporting period, three were closed in 2019, and the final one in 2020.

During the reporting year 2019, 6 alleged incidents of discrimination were made, 4 of them via our hotline. All of them were investigated. As of the end of the 2019 reporting period there was 1 open matter.

As part of our implementation of policies to avoid discrimination, Clearwater Paper provides a Code of Business Conducts and Ethics hotline for anonymous reporting concerns about ethics, regulatory compliance and other matters. The whistleblower hotline is independent, and available 24/7. All calls into the Code of Business Conduct and Ethics reporting lines are fully investigated with resolution. The Legal department ensures that management, at an appropriate level, is informed about reported issues and that reported risks are managed in an adequate way. Summary information on all reported issues and the status on all open items is provided to the Audit Committee of the company’s Board of Directors.

We are committed to complying with appropriate and applicable Federal, State, and Local reporting requirements as they relate to significant operational changes. Additionally where we have employees represented through Collective Bargaining Agreements, we remain dedicated to operating within the mutually agreed upon commitments.

See Our Approach and Human Rights Policy.

We sell high quality paper products and strictly adhere to all applicable regulatory requirements associated with our products. Although our products are not generally subject to specific safety labeling requirements, we use known-source input material to ensure quality and environmental stewardship.

See Our Approach and Clearwater Paper’s Annual Reports.

See Sustainable Products and Responsible Sourcing focus areas.

In 2017, 2018 and 2019 we had no incidents of non-compliance with product labeling and safety regulatory compliance.

TCFD Pillar

TCFD Disclosures

Clearwater Paper Disclosures

Governance

Board oversight of climate change

See Board Oversight Focus Area

Management’s role in assessing climate change risks and opportunities

See Board Oversight Focus Area

Strategy

Impact of climate risks and opportunities on strategy and financial planning

See the following Focus Areas:

• Sustainable Products
• Responsible Sourcing
• Energy Efficiency and Emission Reduction
• Water and Land Stewardship

Risk Management

Process for identifying and managing climate risks

See Board Oversight Focus Area

Metrics and Targets

Metrics used to address climate risks and opportunities

We track our impact on the environment in a number of areas, and we use this data to work toward continuous improvement. Metrics used and disclosed in our 2020 Sustainability Report are:

• Wood Source Type
• Wood Source Location
• Total Energy and Energy Intensity
• Energy Use by Source
• Electricity Use and Electricity Intensity
• Percentage Renewable Energy
• Total CO2e Emissions and Emissions Intensity
• Water Use and Water Intensity

Scope 1 and 2 GHG emissions

See Energy Efficiency and Emission Reduction Focus Area