Sustainability

All of our products are made using fiber from responsibly-managed forests.

Committed to sustainability performance

We have a strong legacy of prioritizing the sustainability of both the products we make and the way we make them. This positive impact is possible with the commitment of our employees, who continue to take our company to new levels of sustainability performance.

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CEO Message

From our President and Chief Executive Officer

I am proud that at Clearwater Paper we have a long history of prioritizing the sustainability of both the products we make and the way we make them. I look forward to working with all of our stakeholders to continue building on that strong legacy.

Starting with the products we make, the primary raw material in both our tissue and paperboard products is wood, which is a 100 percent renewable and commonly recycled resource. Our manufacturing locations, all of which are in the U.S., adhere to Forest Stewardship Council® Chain of Custody, Sustainable Forestry Initiative®, and Programme for the Endorsement of Forest Certification™ fiber sourcing standards. As a result, 100 percent of our products are made using fiber from responsibly managed forests.

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We design and manufacture products to minimize waste and use recycled sources of fiber wherever possible. We are committed to using resources efficiently and generating energy from renewable sources. We have successfully cut our intensities for greenhouse gas emissions by 9 percent, purchased energy by 10 percent, reduced waste-to-landfill by 74 percent, and decreased water consumption by 13 percent from our baseline.

In 2019 we undertook a comprehensive materiality assessment, with input from numerous stakeholders, which will inform our environmental priorities and goals for 2020 and beyond.

We could not realize this level of positive environmental impact without the commitment of our employees, who continue to take our company to new levels of sustainability performance. In turn, we are committed to creating a culture that prioritizes safety and wellness, collaboration and inclusion, and continual learning and personal development.

Thank you for your interest in and support for Clearwater Paper. We look forward to working with you to deliver further positive sustainability impact in the years ahead.

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Our Sustainability Commitment

Our products can provide more sustainable alternatives to products made from non-renewable resources. Wood, the primary raw material used in our products —in the form of chips, sawdust, pulp, woody biomass, and logs— is a 100 percent renewable and commonly recycled resource. We only procure wood and wood pulp from sustainable sources.

We believe in careful utilization of our limited natural resources and understand our role in conserving and protecting the planet’s air, water and land, and in managing climate change risk.

We also believe that the people components of employee safety, diversity, human rights, consumer protection and strong systems of internal procedures and controls help drive high performance for our stockholders, employees and communities.

Our Management Approach

Grounded In Our Core Values

The foundation of our sustainability management approach is built on our core values of character, collaboration, commitment and communication. Collaboration with our many stakeholders helps us to define focus areas that benefit the planet, local communities and our business for the long term. Our investors and stakeholders’ care about the long-term view regarding the sustainability of our products and how we produce them.

We support the principles of a circular economy and apply a management systems approach in each of our focus areas to support priorities and goals. We utilize Global Reporting Initiative (GRI) Reporting Principles as the framework for our reporting and are committed to sharing our ESG performance results and encourage open dialogue and feedback that helps make us better.

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Our Focus Areas

Collaboration with our many stakeholders helps us learn from others and define focus areas that benefit the planet, local communities and our business for the long term.

Aligned with our Core Values, we have integrated sustainability principles within our operations. Learn more about Clearwater Paper in each of the areas below.

GRI Information

Clearwater Paper supports the principles of a circular economy and applies a management systems approach to measurement and verification of the focus areas and corporate policies that support our priorities and goals. The Global Reporting Initiative (GRI) Reporting Principles provide the framework for our materiality assessment and disclosure reporting. We employ this rigorous reporting standard and report on progress toward our goals to evaluate our management approach and ensure continual learning and review. All material topics are covered by our general management approach, which requires measurement and verification, transparency, and continual improvement through rigorous and iterative review and reporting.

GRI Reporting Principles served as the basis of our materiality assessment, which was updated in 2019 and helped us determine the economic, environmental and social issues that are most relevant to our business and to our stakeholders.

These same topics are what were deemed “material” as they relate to our company and our key stakeholders. As part of the process, we engaged internal and external stakeholders, including customers, local communities, investors, news media, government, Clearwater Paper leadership, employees, prospective employees, non-governmental organizations, Clearwater Paper Board of Directors, industry experts, and fiber certification organizations. Stakeholders were selected by completing an assessment with the senior leadership team.

This process included a review of appropriate boundaries of the impact of our organization to select key stakeholders. Our stakeholder groups identified the top 20 topics that have an important impact on our business that are covered following GRI reporting principles.

Clearwater Paper utilizes the “core option” of the GRI Standard Sustainability Reporting Guidelines. This standard provides the framework to help determine what focus areas are important to share by utilizing input from our key stakeholders. The GRI content is provided throughout our website. See our GRI Index below to help locate information.

Our current focus areas that were defined with the help our many stakeholders are used to set our improvement goals. Achieving these goals inspires our employees to continue acting as responsible corporate citizens. It is our belief that sustainability is essential to long-term success and should be integrated within our business’ core strategy. This integration has enabled us to deliver on our sustainability commitments, while driving further growth and innovation. And, it strengthens the trust of our customers, employees, investors, partners and the communities we operate in. We are always interested in feedback to make us better. Comments can be provided at csr@clearwaterpaper.com

Stakeholder Assessment Results

GRI Index

GRI General Disclosures

Disclosure # Disclosure Title Topic Information
102-1 Name of the organization Clearwater Paper Corporation
102-2 a-b Activities, brands, products, and services Clearwater Paper is a provider of private label tissue and a world-class manufacturer of high-quality paperboard. For more details on products, see Tissue Products and Paperboard Products. We do not manufacture projects that are banned.
102-3 Location of headquarters Spokane, WA
102-4 Location of operations See Our Locations
102-5 Ownership and legal form Clearwater Paper Corporation is a publicly traded company listed on the New York Stock Exchange as CLW.
102-6 Markets served Clearwater Paper manufacturing facilities and all other assets are located within the continental U.S. Clearwater Paper sells and ships products to customers in many foreign countries including the U.S., Japan, South Korea, Canada and Australia, among others.
102-7 Scale of the organization See About Us
102-8 Information on employees and other workers

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.

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

102-9 Supply chain See Suppliers
102-10 Significant changes to the organization and its supply chain Our Lewiston, ID Pulp Optimization project (2017-2020) increased pulp production by 45,000 - 44,000 tons/year and our Shelby, NC expansion project increased paper production by 70,000 - 75,000 tons per year.
102-11 Precautionary Principle or approach

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.

102-12 External initiatives Clearwater Paper subscribes to the following associations: American Forest and Paper Association (AF&PA), Forest Stewardship Council (FSC®), Sustainable Forestry Initiative (SFI®), and Programme for the Endorsement of Forest Certification.
102-13 Membership of associations Clearwater Paper is a member of the following associations: American Forest and Paper Association (AF&PA), the Forest Stewardship Council (FSC®), the Sustainable Forestry Initiative (SFI®), Idaho Association of Commerce & Industry (IACI), National Council of Air and Stream Improvement (NCASI), the North Carolina Manufacturers Alliance, the Northwest Pulp and Paper Association and Industry, the Arkansas Forest and Paper Council, the Sustainable Packaging Coalition (including the How to Recycle Program), the Foodservice Packaging Institute, the Paper Cup Alliance, the Paper Recovery Alliance, and Programme for the Endorsement of Forest Certification.
102-14 Statement from senior decision-maker See CEO Letter
102-16 Values, principles, standards, and norms of behavior See About Us
102-18 Governance structure See Board of Directors and Leadership
102-40 List of stakeholder groups See GRI Information
102-41 Collective bargaining agreements Approximately 48 percent of Clearwater Paper’s workforce were covered by collective bargaining agreements in 2018, and 52 percent in 2017.
102-42 Identifying and selecting stakeholders See GRI Information
102-43 Approach to stakeholder engagement See GRI Information
102-44 Key topics and concerns raised See GRI Information
102-45 Entities included in the consolidated financial statements Data provided for 2016/2017 includes all information on operations. See Clearwater Paper’s Annual Reports for more information.
102-46 Defining report content and topic Boundaries See GRI Information
102-47 List of material topics See GRI Information
102-48 Restatements of information

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.

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.

102-49 Changes in reporting We have updated our materiality assessment and associated boundaries. See GRI Information.
102-50 Reporting period Data provided for 2017/2018 calendar years.
102-51 Date of most recent report The web-based report covers calendar years 2017/2018.
102-52 Reporting cycle Biennial
102-53 Contact point for questions regarding the report csr@clearwaterpaper.com
102-54 Claims of reporting in accordance with the GRI Standards This is web-based and has utilized the Global Reporting Initiative (GRI) Standard 2018.This report has been prepared in accordance with the GRI Standards: Core option.
102-55 GRI content index See GRI Information
102-56 External Assurance Clearwater Paper does not have a policy or practice to seek external assurance for this report.
103-1 Explanation of the material topic and its Boundary See GRI Information
103-2 The management approach and its components See GRI Information
103-3 Evaluation of the management approach See GRI Information
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GRI Material Topic Disclosures

Topic Disclosure Title Topic Disclosure # Topic Information
Anti-Corruption Management Approach 205 Corruption results in negative impacts such as poverty, damage to the environment, abuse of human rights, and undermining of the rule of law. Clearwater Paper has stringent ethics and compliance standards to ensure anti-corruption in every facet of our business.

See Code of Business Conducts and Ethics.

Confirmed incidents of corruption and actions taken 205-3 We had no alleged incidents of corruption.
ANTI-TRUST POLICIES Management Approach 206

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.

Legal actions for anti-competitive behavior, anti-trust, and monopoly practices 206-1 In 2017 and 2018 there were no legal actions or allegations as to anti-competitive behavior, anti-trust, or monopoly practices.
RAW & RECYCLED MAT'L Management Approach 301 See Sustainable Products and Responsible Sourcing focus areas.
Recycled input materials used 301-2 Clearwater Paper supports the principles of a circular economy in numerous ways, including through the use of recycled input materials. See our Sustainable Products and Responsible Sourcing focus areas. We currently do not have a reclaimed products program.
FIBER CERTIFICATIONS Management Approach 304

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.

Significant impacts of activities, products, and services on biodiversity 304-2 See Sustainable Products and Responsible Sourcing focus areas.
ENERGY USE Management Approach 302

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.

Energy consumption within the organization 302-1 See Energy Efficiency and Emission Reduction focus area.
WATER USE Management Approach 303

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.

Water withdrawal 303-3 See Land and Water Stewardship focus area.
Water discharge 303-4 See Land and Water Stewardship focus area.
Water consumption 303-5 See Land and Water Stewardship focus area.
GHG EMISSIONS Management Approach 305 GHG emissions reduction is critical to sustainability and future generations. We measure our performance in energy use and emissions to ensure alignment with our goals, regulatory requirements, and community interests.
See Energy Efficiency and Emissions Reduction focus area.
Direct (Scope 1) GHG emissions 305-1 See Energy Efficiency And Emissions Reduction focus area. GHG emissions are reported for all fossil fuel emissions. We are not including biogenic GHG emissions from biomass or other GHG emissions.
Energy indirect (Scope 2) GHG emissions 305-2 See Energy Efficiency and Emissions Reduction focus area.
ENV PROTEC & SUSTAIN COSTS Management Approach 302-1, 303-3, 303-4, 303-5, 305-1, and 305-2 See Our Approach, Water and Land Stewardship and Energy Efficiency And Emissions Reduction focus areas.
Overall Environmental Performance 302-1, 303-3, 303-4, 303-5, 305-1, and 305-2 We evaluate our overall environmental performance by monitoring and evaluating our performance across all material aspects of our operations, from water use and effluent discharge, compliance with regulatory requirements, and energy usage. See Our Approach, Water and Land Stewardship and Energy Efficiency And Emissions Reduction Focus Areas.
ENVIRON REG COMPLIANCE Management Approach 307

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.

Non-compliance with environmental laws and regulations 307-1 See Clearwater Paper’s Annual Reports.
EMPLOYEE RETENTION Management Approach 401

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.

New employee hires and employee turnover 401-1 See Diverse and Inclusive Workplace focus area.
EMPLOYEE BENEFITS Benefits provided to full-time employees that are not provided to temporary or part-time employees. 401-2

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.

LABOR & MNGMNT RELATIONSHIP Management Approach 402

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.

Minimum notice periods regarding operational changes 402-1 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.
OCCUPATIONAL H&S Management Approach 403

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.

Work-related injuries 403-9

At the end of 2018, our OSHA recordable incident rate for 2017 was 2.19 and 2018 was 2.19.

See Safe Workplace focus area.

EMPLOYEE TRAINING & EDUCATION Management Approach 404

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.

Programs for upgrading employee skills and transition assistance program 404-2 Clearwater Paper is dedicated to career growth and development of our employees. In addition to required annual Environmental, Health, Safety and Cultural Training, every employee is afforded the opportunity to pursue growth and development through on the job experiences as well as education. Based on the technical aspects of our manufacturing processes, every employee operating equipment goes through position specific skills training.
EO & EMPLOYEE DIVERSITY Management Approach 405

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.

Diversity of governance bodies and employees 405-1 See Diverse and Inclusive Workplace focus area and GRI Index General Disclosures.
NON-DISCRIMINATION Management Approach 406

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

Incidents of discrimination and corrective actions taken 406-1

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.

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.

LABOR & HUMAN RIGHTS REGS COMPLIANCE Management Approach 412

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.

Employee training on human rights policies or procedures 412-2 Our Human Rights Policy was released in January 2020. All employees will go through training in 2020.
PRODUCT LABELING SAFETY REGS COMPLIANCE Management Approach 417

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.

Incidents of non-compliance concerning product and service information and labeling. 417-2

See Sustainable Products and Responsible Sourcing focus areas.

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

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