Sustainability Oversight: Guiding International Paper’s ESG Commitments

NORTHAMPTON, MA / ACCESSWIRE / August 8, 2024 / International Paper Company

Originally published in International Paper's 2023 Sustainability Report

International Paper has an integrated board and executive-level governance structure to oversee and set the tone on Environment, Social and Governance (ESG) topics across our businesses. The full board periodically reviews components of our sustainability strategy and performance including material ESG developments and issues.

Within our Board of Directors, the Public Policy and Environment Committee (PPE) has oversight over environmental topics as well as public policy, legal, and health and safety issues or risks that could affect the Company. The Audit and Finance Committee (A&F) reviews processes and controls for external reporting, and the Management Development and Compensation Committee (MDCC) approves CEO stewardship-focused objectives and evaluates performance related to compensation.

At the management level, our CEO and Senior Leadership Team are responsible for corporate sustainability strategy and leadership, with functionspecific councils reporting to them.

Our Stewardship Council is made up of representatives from areas across our businesses and functional teams. In addition, the Manufacturing Council, Environment, Health and Safety Council and the Global Diversity and Inclusion Council guide implementation of the related Vision 2030 goals and assess progress against them.

In support of the Stewardship Council, the Renewable Solutions Steering Team, Global Certification and Sustainability Task Team and the Energy and GHG Steering Team develop the tactics needed to further advance implementation of our Vision 2030 goals and targets.

Our Chief Sustainability Officer leads our Sustainability Team and is ultimately responsible for the development and execution of our sustainability strategy. In turn, the Sustainability Team coordinates activities across IP businesses and functional areas to deliver on our Vision 2030 targets.

Rewarding our ESG performance

The purpose of our incentive plans is to drive improved financial performance and results for the short- and long-term success of the company. We work to achieve our Vision 2030 goals because we believe it's the right thing to do.

Our Annual Incentive Plan (AIP), considers performance against our sustainability targets when applying the individual performance modifier for members of the Senior Leadership Team, corporate officers and their direct reports. We believe performance in this area enables the achievement of our Vision 2030 goals. We currently consider metrics in the following areas when determining their individual payout under AIP: