Good Governance: Responsible Sourcing at International Paper
Originally published in International Paper's 2021 Sustainability Report
International Paper relies on the daily actions and personal accountability of each of our employees and business partners for our success. We instill trust and respect, the underpinnings of our reputation, through sound governance practices.
Responsible Sourcing
Our global network of more than 80,000 suppliers are critical to our business success and to the implementation of our Vision 2030 strategy. We seek out suppliers who align with our commitment to our core values of safety, ethics and stewardship.
We embrace innovation and collaboration with our suppliers. We expect quality products and services that are competitive, sustainable and meet our stakeholders’ expectations. Our procurement efforts revolve around specific categories to fulfill International Paper’s business needs. Our Third Party Code of Conduct outlines our expectations regarding the workplace standards and business practices we require of our suppliers, along with their affiliates and others who are within their supply chain.
Our global sourcing organization operates robust systems to ensure supplier compliance and to assess, monitor and mitigate supplier risk and advance supply chain transparency:
- Adherence to our Third Party Code of Conduct is required by all suppliers and is built into contractual agreements. We screen potential suppliers for a wide variety of risks, including corruption risks.
- Our Human Rights Statement reflects our commitment to protect and advance human rights globally, and we seek to do business with suppliers who share our standards.
- Our Human Rights Policy provides guidance to employees, leadership and our Board of Directors on understanding the importance of human rights and our impact on human rights in our global operations.
- Our Global Fiber Procurement Policy outlines our approach to responsible fiber sourcing and forest certification.
- We assess and monitor key suppliers representing approximately 12% of our annual spend on environmental, social and ethical criteria using a third-party survey platform, Supply Shift. We perform onsite audits when needed in partnership with third parties or with internal resources. We reserve the right to terminate a relationship with a supplier whose values, policies or practices do not align with our expectations.
Environmental, Social and Corporate Governance
Environmental, social and governance considerations (ESG) are incorporated into our everyday processes to help ensure that we track, analyze and address risks, and operate responsibly and sustainably.
At the management level, responsibility for our Global Citizenship Strategy and Leadership rests with our CEO and Senior Lead Team. Our Environment, Health and Safety Council, Stewardship Council (formerly the Global Citizenship Council) and Chief Sustainability Officer report to them on strategic implementation and progress. Other engaged Councils include Enterprise Risk Management and Reputation Management
We have established a governance model to direct the implementation and monitoring of our sustainability risks and opportunities, as well as our Vision 2030 strategy.
Climate risks
Identifying climate-related risks and opportunities for our company and the communities where we operate is important for International Paper. This year, to better understand our climate risks and resiliency management, and determine the best way to monitor, measure and address those risks, we reported pursuant to the Task Force on Climate-related Financial Disclosures (TCFD) recommendations for the first time.
TCFD is an industry-led organization that provides a framework for companies to analyze and report on climate-related risks, and to provide decision-useful information to investors on their exposure to financial risks related to climate. We intend to continue to report against this framework on an annual basis.
We also respond to CDP’s Climate Change, Forest and Water Security questionnaires to transparently disclose our risks and opportunities in those core areas of sustainability. Learn more about how we address these risks in the Sustainable Operations and TCFD Index sections of this report and see our 10-K for more information.
About International Paper
International Paper (NYSE: IP) is a leading global supplier of renewable fiber-based products. We produce corrugated packaging products that protect and promote goods, and enable worldwide commerce, and pulp for diapers, tissue and other personal care products that promote health and wellness. Headquartered in Memphis, Tenn., we employ approximately 38,000 colleagues globally. We serve customers worldwide, with manufacturing operations in North America, Latin America, North Africa and Europe. Net sales for 2021 were $19.4 billion. See how we’re building a better future for people, the planet, and our company at internationalpaper.com/Vision-2030.
