Sustainability Oversight: Guiding International Paper’s ESG Commitments
Rhea-AI Summary
International Paper has established a comprehensive ESG governance structure to oversee and guide its sustainability commitments. The Board of Directors, through specialized committees, oversees various aspects of ESG strategy and performance. Key committees include:
- Public Policy and Environment Committee (PPE): Oversees environmental topics, public policy, legal, and health and safety issues.
- Audit and Finance Committee (A&F): Reviews processes for external reporting.
- Management Development and Compensation Committee (MDCC): Approves CEO stewardship objectives and evaluates performance.
At the management level, the CEO and Senior Leadership Team are responsible for corporate sustainability strategy. The company has established various councils and teams to implement Vision 2030 goals. The Chief Sustainability Officer leads the Sustainability Team, coordinating activities across the company.
International Paper considers ESG performance in its incentive plans, including metrics for Health & Safety, Environment & Sustainability, Human Capital & Culture, Governance, and Diversity & Inclusion. The company engages with diverse stakeholders to gain insights and guide its sustainability efforts.
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News Market Reaction
On the day this news was published, IP gained 1.29%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
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:
Health & Safety
Environment & Sustainability
Human Capital & Culture
Governance
Diversity & Inclusion
International Paper's stewardship value is also a driver of long-term shareowner value. This is measured in our Long-Term Incentive Plan through the Total Shareholder Return metric, which determines
ESG governance
Full board
Periodic review of components of sustainability strategy and performance
Review material ESG-related developments and issues
A&F
Review processes and controls for external reporting of sustainability and social impact data and metrics
Review related disclosures in Sustainability Report and Form 10-K
Governance
Review and reassess adequacy of, and oversee compliance with Corporate Governance Guidelines
Seek Board candidates with diverse backgrounds
PPE
Review sustainability and social impact policies, plans and performance to continuously improve and comply with commitment to stewardship
Review environmental policies, plans, performance and social impact
MDCC
Approve CEO ESG-focused objectives, evaluate performance
Consider ESG factors in Senior Vice President (SVP) compensation and overall compensation plan
Review related disclosures in CD&A
Stakeholder engagement
Our operations impact a wide range of stakeholders, from employees and local communities, to customers and shareholders. Engaging with these diverse groups allows us to gain valuable insights, understand their expectations and address their concerns. By fostering open and constructive dialogue, we can identify material issues, prioritize emerging global issues and industry trends, and gain vital information to guide our sustainability efforts and strategies (see page 99).
About International Paper
International Paper (NYSE: IP) is a global producer of sustainable packaging, pulp and other fiber-based products, and one of the world's largest recyclers. Headquartered in Memphis, Tenn., we employ approximately 39,000 colleagues globally who are committed to creating what's next. We serve customers worldwide, with manufacturing operations in North America, Latin America, North Africa and Europe. Net sales for 2023 were
About International Paper - EMEA
In Europe, Middle East & Africa (EMEA), International Paper focuses on the production and marketing of fiber-based packaging and specialty pulp, employing approximately 4,400 people. As a leading supplier of high-quality corrugated containers for a multitude of applications, we serve customers throughout the region from our network of two recycled containerboard mills and 23 box plants in France, Italy, Morocco, Portugal and Spain. Specialty pulp is made in Gdansk, Poland. Other products available from International Paper in the region include a variety of Kraft linerboard and other pulp products.
Contact Info:
Spokesperson: International Paper Company
Website: https://www.3blmedia.com/profiles/international-paper-company
Email: info@3blmedia.com
SOURCE: International Paper Company
View the original press release on accesswire.com
FAQ
How does International Paper's board oversee ESG matters?
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