Sustainability Overview

WhatMatters

Most

InternatIonal PaPer’s sustaInabIlIty Goals

Energy Efficiency15% improvement of energy efficiency in purchased energy use by 2020

GHG Emissions20% absolute reduction in global GHG emissions (Scope 1 and 2) associated with the production of our products by 2020

SafetyAccident-free workplace

Fiber Certification15% global increase in third-party certified fiber volume

Fiber EfficiencyReduce fiber loss in the manufacturing process by achieving world-class performance of less than 0.75% fiber loss

Air Emissions10% reduction in criteria pollutant emissions (SO2, NOX, PM) by aligning with our Energy Efficiency Initiatives by 2020

Water Quality15% reduction in mill wastewater discharges of oxygen depleting substances (BOD, COD) to receiving streams

Water Use Map water usage through our manufacturing locations by 2013; develop site specific plans by 2015 in strategic watershed areas to reduce use by 2020

Solid Waste15% increase in the recovery of Old Corrugated Containers (OCC) by exploring new sources and diverting useable fiber from the landfill

Assess options to reduce the generation and disposal of manufacturing waste from our processes by 2013; develop site specific plans by 2015 to support an enterprise reduction goal for 2020

Supply ChainEstablish baseline supply chain performance and implement plans to improve by 2013

PhilanthropyMeasure and report on our charitable support for education, literacy and health and human services in the communities where we operate

Setting improvement goals is essential to effective sustainability management. We are pleased to share our new voluntary goals. All goals are from a 2010 baseline.

1What matters most SuStainability Overview

International Paper has been committed to sustainability for more than 110 years because it makes good business sense and it is the right thing to do. The IP Way—our corporate

philosophy that describes our vision, mission and values—

embraces responsible business and promotes sustainability

in everything we do.

3What matters most SuStainability Overview2 internatiOnal PaPer

International Paper’s commitment to environmental,

social and economic goals has been at the core of

our company for more than 110 years; recently we

have begun assembling these collective efforts under

the umbrella of sustainability.

We now have 12 voluntary goals—listed on the inside

cover—that touch on all aspects of our contribution to

sustainable development. These 12 goals represent

our public commitment to continuous improvement

and that we will work to the same high standards

globally and promote a safe workplace and a healthy

natural environment. We understand that our global

presence helps us influence change for the good,

and we embrace that opportunity wholeheartedly.

We also took important steps in solidifying the

permanence of sustainability within our business

and across our company with the dedication of

additional resources that will encourage global

collaboration and allow us to discover opportunities

to impact change quickly, effectively and sustainably.

MessaGe FroM INterNatIoNaL PaPer ChaIrMaN aND Ceo aND VICe PresIDeNt oF eNVIroNMeNt, heaLth, saFetY aND sUstaINaBILItY

While these next few pages provide a glimpse into

Sustainability at International Paper, we invite you

to read our company’s complete 2011 sustainability

report that covers in greater detail our accomplish-

ments, partnerships, goals and challenges for 2012

and beyond.

It is an exciting time to be at International Paper. As

we and others have come to realize, sustainability

touches every aspect of our business and we

recognize the strides we make today will continue

to move us forward.

Sincerely,

David M. Kiser

Vice President of Environment,

Health, Safety and Sustainability,

International Paper

John V. Faraci

Chairman and

Chief Executive Officer,

International Paper

John V. Faraci

David M. Kiser

PaPer

Packaging

sustaInabIlIty at InternatIonal PaPer

DiStributiOn

5What matters most SuStainability Overview4 internatiOnal PaPer

International Paper’s commitment to sustainability includes environmental,

social and economic goals. This means that we are as concerned about safety, diversity in the workplace, ethics and fair labor practices, as we are about being good stewards of the forest.

In the following pages we will discuss a wide range of sustainability opportunities which focus on:

•OurGovernanceandEthicsPolicies •OurCommitmenttoSustainability

throughout the paper and packaging life cycle

•OurPeople •OurCommunities •OurVision,MissionandValues

We believe this continued focus on sustainability will help us achieve our vision of becoming one of the most

respected and successful companies in the world.

HigHligHtS• Named one of Ethisphere Institute’s World’s Most Ethical

Companies® for the sixth consecutive year • Investigated all reports through our HelpLine

• New ethics training offered

cHallengeS• Managing global risks and ensuring good governance

with our joint ventures

• Maintaining compliance with ever-increasing and more complex regulations

Good governance is the foundation of our company.

We insist on the highest ethical standards throughout our

operations, and encourage the same from our suppliers

and business partners. International Paper’s Board

of Directors upholds our company mission and ensures

effective organizational planning; focusing on strategy and risk

management while monitoring strategic initiatives.

IP Governance and ethIcs

’‘“We are guided by a single vision—to improve the

world, today and for generations to come. That’s not

a vision limited by borders, boundaries or time.

It applies worldwide.”

7What matters most SuStainability Overview6 internatiOnal PaPer

98

HigHligHtS• Met 71% of global energy requirements with

renewable biomass

• Set up an Energy Council to optimize results of energy efficiency projects and achieve sustainable competitive advantage

• Reduced water use by 8% compared with 2010

• Reduced waste sent to landfill by 27% compared with 2010

cHallengeS• Availability of certified fiber globally

• Lack of clarity from regulatory authorities on climate change and potential areas such as extended producer responsibility which can stifle intelligent investment

• Helping consumers make educated choices about the use of forest-based products

Our products are primarily made with wood fiber. It’s

natural that our commitment to sustainability begins with

the forest. But it doesn’t end there. From design and manufacturing in our own

operations to end use, recycling and disposal,

sustainability is integral to our approach at every phase

of the product life cycle.

sustaInabIlIty throuGhout the PaPer and

PackaGInG lIfe cycle

internatiOnal PaPer What matters most SuStainability Overview

internatiOnal PaPer10 What matters most SuStainability Overview 11

our PeoPle HigHligHtS• Successful working relationships with the United

Steelworkers (USW) and the International Brotherhood of Electrical Workers (IBEW) to promote health and safety among our manufacturing employees

• Total Incident Rate decreased to its lowest rate ever of 0.79

• Successful continuation of our LIFE safety initiative to eliminate life-changing injuries and fatalities

• The Chairman’s Diversity Council oversaw four key initiatives to promote diversity globally

cHallengeS• Increased competition for talent in growth markets

• An increasingly multi-generational workforce

Our employees are the foundation of our business.

They make the products that weave our world together and take personal responsibility for meeting customer and business

expectations. As a team, we pursue quality in everything we do and strive for an accident-

free workplace. Our multi-cultural workforce spans more than

24 countries and speaks more than 20 languages. While we celebrate our differences, we are unified around a culture of ethics focused on a common vision to be one of the most

respected and successful companies in the world.

1312 internatiOnal PaPer

our communIty

HigHligHtS• Donated more than $11 million worldwide to charitable

organizations

• Launched a partnership with Public Broadcasting Service (PBS) to create an online portal providing environmental education materials to teachers

• Expanded our Coins 4 Kids partnership with the World Food Program to reach even more hungry children

• Partnered with Iochpe Foundation in Brazil to offer at-risk teenagers specialized trade classes and ultimately a valid certificate of technical education

cHallengeS• Meeting community needs in a tough economy

• Expanding employee volunteering efforts globally

At International Paper we are proud of the things we make,

but the things we make are not what make us. While our biggest contribution to our communities is in the jobs we create through

our investments, we are also committed to being good

neighbors and we play an active role in keeping communities vibrant. We do this in two

fundamental ways: philanthropic giving and volunteering.

What matters most SuStainability Overview

15What matters most SuStainability Overview14 internatiOnal PaPer

the IP Way

the IP WayOur viSiOn: To be one of the most respected and

successful companies in the world

Our MiSSiOn: To improve the world, today and for

generations to come, by using renewable resources

to make products people depend on every day

Our valueS:

• leadership—We uphold the highest ethical standards

• results—We are passionate about results

• responsibility—We are committed to sustaining

our world

International Paper’s employees are dedicated and highly

motivated, and they treat each other with dignity and respect.

We want our global team to continue viewing International Paper as a great place to work,

so we are committed to providing a positive work environment in

which diversity, health and safety, and learning and development opportunities are paramount.

Making people a priority helpsus attract and retain the best

talent, maintaining the strengthof the company into the future.

16 internatiOnal PaPer

What makes International Paper is our commitment to bringing

things of substance to the world. That includes our products, to

be sure, but also our promise to do the right things, in the right way, for the right reasons. It’s

providing for families, enhancing communities, protecting our environment, and generating returns for those who invest

in us. The needs we are called to meet can and will

change, but the substance of International Paper—who we are and how we do things—

never will.

resPected comPany

2012 Excellence in GHG Management (Goal Achievement) Award Winner

HigHligHtS

• Named #1 in Forest and Paper Products Industry, FORTUNE “World’s Most Admired Companies®” 2012

• Named among Ethisphere Institute’s World’s Most Ethical Companies® for the sixth consecutive year

• Ranked 21st among the world’s 100 Best Corporate Citizens by Corporate Responsibility Magazine

• Recognized Among 40 Best Companies for Leaders in 2012 by CEO Magazine

• First Forest Products company to receive EPA Climate Leadership Award

• For the ninth consecutive year, named to the FTSE4Good ethical investment stock market indices

• Recognized by the United Nations and PR News as a leader in the fight against hunger with the Coins 4 Kids school feeding program

internationalpaper.com

©2012 international Paper company. all rights reserved. Printed in uSa. accent, carolina and ecotainer are registered trademarks of international Paper company. Forest Stewardship council is a trademark, FSc and the FSc logo are registered trademarks of Forest Stewardship council, a.c. PeFc and PeFc logo are registered trademarks of the PeFc council. Sustainable Forestry initiative and SFi are registered trademarks owned by Sustainable Forestry, inc. Fortune, “world’s Most admired companies” and logo are registered trademarks of time inc. and are used under license. Other company, organization, product, trade names, and service names used and displayed herein may be trademarks or service marks owned by their respective third parties. “world’s Most admired companies” content from Fortune magazine, March 19, 2012, ©2012 time inc. used under license. Fortune and time inc. are not affiliated with, and do not endorse products or services of international Paper company. any other third-party company or organization mentioned in this document is for informational purposes only and such third parties do not necessarily endorse the content herein and did not necessarily participate in the production of this document. international Paper is an equal Opportunity employer. M/F/D/v.

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