MAKING PRODUCTSs1.q4cdn.com/.../doc_downloads/Company-Overview-2016.pdf29 Vision 2020 Goals MAKING PRODUCTS PEOPLE DEPENDON EVERY DAY North America Latin America India EMEA*/Russia

COMPANY OVERVIEW 2015

MAKING PRODUCTS PEOPLE DEPEND ON

EVERY DAY

COMPANY OVERVIEW 2015

PLANET

PERFORMANCE

PEOPLE

International Paper is a global leader in packaging, paper, and pulp. We use renewable resources responsibly to make recyclable products that people depend on every day. We are unified around shared commitments to strengthen our people and communities, provide solutions for our customers, and ensure the sustainability of our company and our planet.

Our fiber sourcing policies promote

healthy and productive forests

for generations to come

In 2015, 93% of our facilities operated without a

serious injury

$15.5 million donated to address critical community needs and improve

our planet

$22.4 billion net sales in 2015

CONTENTS 2 2015 Highlights

3 CEO Comments

4 Businesses

6 Performance

12 People

20 Planet

28 Awards & Recognitions

29 Vision 2020 Goals

MAKING PRODUCTS PEOPLE DEPEND ON

EVERY DAY

North America

Latin America

India

EMEA*/ Russia

Asia

$17.2 billion net sales




$1.3 billion** net sales

**Includes the net sales of the International Paper Sun joint venture through October 13, 2015, the effective date of the sale of our interest in the business

*Europe, Middle East, Africa

2015 GLOBAL HIGHLIGHTS

Global Headquarters: Memphis, Tenn.

We use renewable resources responsibly to make recyclable products people depend on every day.

55,000 employees globally

REVENUE BY BUSINESS

Industrial Packaging

Consumer Packaging

Paper and Pulp

65% 13% 22%

Manufacturing operations in

24 countries

Every International Paper job

supports 3.25 additional supplier industry jobs

Ethisphere Institute’s “World’s Most Ethical Companies®”

10 consecutive years

Fortune Magazine “World’s Most Admired Companies®” for the

For more information about International Paper, our products, and our global citizenship efforts, visit internationalpaper.com.

70 percent of the energy used in our global mill system is generated from renewable, carbon-neutral biomass

according to Economic Policy Institute

44,000 volunteer hours worked by employees around the globe in 2015

13th time

International Paper Company Overview 2015 2

WE DO THE RIGHT THINGS, IN THE RIGHT WAYS, FOR THE RIGHT REASONS—THIS IS THE IP WAY.The IP Way governs everything we do: from our relationships with people and communities, to our impact on the environment, to how we ensure our businesses will be successful for generations to come.In 2015, we built on this legacy of leadership, integrity, and continuous improvement in three key areas:

PERFORMANCEWe delivered a solid performance in a tough economic environment. We consider this a great reflection of the very strong portfolio of businesses that we’ve built and our focus on the things we control—meeting our customers’ needs, running safely and reliably, and controlling our spending. By investing in and strengthening our business and global workforce, we demonstrated that we can operate safely and sustainably, maintain leadership positions in attractive markets, and generate substantial free cash flow.

PEOPLEOur most important responsibility is to ensure the safety of our employees, contractors, and communities. I cannot emphasize that enough. Around the world, we are committed to providing a safe work environment, supporting and strengthening our workforce, and developing leaders at all levels. We also enhanced our global citizenship efforts, which means not only being a good neighbor and providing jobs in local communities, but also addressing critical community needs in the places where our employees live and work.

PLANETIn the last five years we have made significant progress toward our Vision 2020 Goals: we’ve reduced greenhouse gas emissions and waste to landfills, worked toward improving water quality and energy efficiency, and increased transparency in our supply chain. These projects not only improve our global environmental impact, but also help us reduce cost and mitigate risk. We will continue to improve our impact and promote the long-term sustainability of both natural capital and our business.

Looking ahead, I am confident our long-term strategy will continue to create value for our employees, customers, communities, shareowners, and our planet.

Mark Sutton | Chairman and CEO

We do business

THE IP WAY


4 | 5

BUSINESSES

International Paper is the world’s premier manufacturer of containerboard and corrugated packaging. Our containerboard mills, box plants, and converting operations across the globe allow us to sustainably meet the most challenging customer sales, shipping, storage, and display requirements.

Industrial packaging also includes our North American recycling business, which recovers, processes, and sells several million tons of corrugated packaging and paper annually.

International Paper’s global coated paperboard business is a premier producer of high-quality coated paperboard used for a wide variety of packaging and foodservice applications.In addition to coated paperboard, consumer packaging includes our foodservice business, which produces paper cups, food containers, and lids.

Our consumer packaging business collaborates with customers across a wide range of market segments to meet consumer-driven demand for high-quality, sustainable, and innovative products.

International Paper’s global papers businesses manufacture a wide variety of uncoated papers for commercial printing, imaging, and converting customers. Customers rely on our signature brands including Accent®, Chamex®, Hammermill®, Pol™, Reflection™, and Rey® to communicate, advertise, educate, and inform.

International Paper’s pulp business produces fluff pulp for absorbent hygiene products like baby diapers, feminine care, adult incontinence, and other non-woven products. These products serve diverse consumers who share a common need for confidence in the quality and convenience of personal hygiene products.

Customer segments:

• Beverages

• Fruit and vegetables

• Protein and processed foods

• Consumer and industrial goods

• Shipping and distribution

• eCommerce

Customer segments:

• Pharmaceuticals

• Health and beauty

• Packaged food

• General consumer goods

• Quick-service restaurants

Industrial Packaging Consumer Packaging Paper and Pulp

Customer segments:

• Consumers

• Schools

• Businesses

• Commercial printing

• Book publishing

• Advertising

• Direct mail, bills, and statements

• Office products

• Retail packaging and labeling applications

• Absorbent hygiene products

• Wipes, tabletop, and medical non-wovens

• Specialty coffee

• Grocery and convenience stores

• Hospitality


Our current investment to increase North American fluff pulp capacity will position International Paper to continue to meet the growing needs of our global customers.

We make renewable products that people depend on every day.

We are one of the largest recyclers of corrugated packaging and paper in the world.


DELIVERING VALUETO CUSTOMERS AND SHAREOWNERS

We invest to strengthen our global businesses so we can meet market demand and adapt to the changing needs of our customers and the markets we serve. As an industry leader, we will continue to maintain our focus on

execution, leadership, and delivering value, without ever sacrificing our responsibility to people and the planet. This focus creates long-term value for our customers and our shareowners.

7

PERFORMANCE

$5 BILLION NET SALES PAPER AND PULP

$2.9 BILLION NET SALESCONSUMER PACKAGING

$14.5 BILLION NET SALESINDUSTRIAL PACKAGING $22.4 billion

net sales

2015 FINANCIAL SUMMARYWe performed well despite a challenging global environment where demand for our products was mixed, the strong U.S. dollar hindered our ability to compete in export markets, the Brazilian economy was in recession, and China’s economy weakened significantly. Despite these challenges, we delivered:

Annualized Dividend Per Share

$1.76

$1.60

$1.402013

2014

2015

“Technology has enabled us to understand our processes to a greater degree; however, technology alone does not address all opportunities. The Manufacturing Excellence approach provides the methods and tools for effective collaboration of diverse, cross-functional teams to drive improvements. I am continually amazed at the creativity we achieve when we engage people using the ME tools.”

—Whitney Beall, Manufacturing Excellence Leadership Consultant ME Blackbelt Loveland, Ohio, 16 years with International Paper

STRONG MARGINS AND EARNINGS in North American Industrial Packaging

STRONG PERFORMANCE by Ilim joint venture

RECORD return on

invested capital

STRONG free cash

flow

BEST earnings per share

in 20 years

PERFORMANCEInternational Paper Company Overview 2015 8

A systematic approach to problem solving and achieving excellence

Manufacturing Excellence (ME) is the underlying principle that helps us to meet our objectives. Company-wide use of ME is the key to continuous, deliberate improvement and sustained year-over-year success.

MANUFACTURING EXCELLENCE

In a corrugated box plant, teams from our replenishment planning and deliberate improvement organizations worked with the plant manager and manufacturing manager to reduce holding rail cars, known as rail demurrage. With a goal of a 50 percent reduction in costs, the team used ME tools and processes to implement solutions that led to a 64 percent reduction in the first year, a savings of more than $150,000. This effort is being replicated across our box system.

Increasing customer satisfaction via Manufacturing Excellence

A team, lead by ME green belts, utilized systematic approaches to address an ink-smearing issue at one of our European Mills. The team worked with the customer to investigate, analyze, and provide solutions that significantly improved communication between International Paper and the customer, increased customer satisfaction, and saved International Paper $150,000 per year.

At one of our containerboard mills, we found that high truck turnaround time added $775,000 to the mill’s annual wood cost. The fiber supply and mill teams partnered to reduce waste using ME tools and processes. Using minimal capital, the team was able to identify and address bottlenecks, which resulted in a 30 percent reduction in turnaround time. Other mills are replicating the process improvements in an effort to generate similar time and cost savings.

Cost savings through improvement in truck turnaround time

Cross-functional teams work together to realize savings and create a model for others


LEADING THROUGH CUSTOMER-FOCUSED INNOVATIONAround the world, we work with our customers to provide innovative solutions to their unique challenges. This focus allows us to grow with our existing customers and continue to win new business.

DEMONSTRATING A STRONG COMMITMENT TO CUSTOMERS’ PRODUCT SAFETY NEEDSInternational Paper committed to certify all of its U.S. corrugated packaging plants that produce food containers to the Global Food Safety Initiative (GFSI) as measured against the IFS PACsecure Standard. This standard was developed to identify potential hazards associated with common packaging manufacturing processes. The GFSI certification addresses the requirements to assure food safety by applying the Hazard Analysis and Critical Control Points and Good Manufacturing Practice principles specific to food packaging. To earn the GFSI certification, International Paper container plants will be audited by an independent third-party team to certify that materials and processes used in manufacturing corrugated packaging are safe for the food industry.

CREATING INNOVATIVE FLUFF PULP PRODUCTSInternational Paper developed treated and semi-treated fluff pulp grades that were testedby several customers and launched early in 2016. This new Supersoft® Air™ fluff has unique characteristics that differentiate it from our competitors’ products.

MEETING PUBLISHERS’ NEEDS IN BRAZILInternational Paper Brazil understands a publisher’s need for a well-priced, thick printing paper, which gives their books wider spines and more visibility on bookstore shelves. The Brazilian publishing market is vital to the Printing and Conversion segment, representing 31 percent of International Paper’s volume in 2015. With Chambril Avena® paper, International Paper met customer demand and was able to attract new business.

DEVISING SOLUTIONS TO MEET SURGE IN DEMANDWhen one of our customers, a major U.S. fast food chain, offered a drink promotion that spiked demand for cups, our foodservice business responded. The collective effort across manufacturing, supply chain, customer service, and sales resulted in a quick solution to meet the demand surge, including rebalancing production, setting up alternate sizes, and collaborating with the customer to prioritize orders.


We take pride in our ability to adapt to the changing demands of our customers and the global markets we serve.

MOROCCO INDUSTRIAL PACKAGING TEAM WINNING BUSINESSThe North American fruit and vegetable market is one of the most important markets for Moroccan farmers, especially the citrus sector: 90,000 tonnes of clementines and oranges are exported annually. Traditionally, fruit growers used wooden packaging, but when one of our agricultural customers expressed a need for a solid, high-quality printed box, International Paper offered a complete solution: boxes, net covers, and printed upper and bottom protection pallets. As a result, customers are switching to the new boxes. This success will open doors for other new business in Canada and U.S.

NEW MOBILE APP FOR CUSTOMERS AND DISTRIBUTORSInternational Paper India‘s mobile app is the first of its kind in the Indian printing paper industry. The app provides access to the most up-to-date information on all International Paper products with real-time updates on new products and specification changes. The objective of the mobile app is to enable distributors, printers, and others to select the best product for each end use. The app includes a user-friendly paper selector and paper calculator, and features Reflection™, Hammermill®, HP, TruPrint Ultra®, and other grades.

ALASKA PLUS LIGHTWEIGHT COATED BOARD WITH UNPARALLELED BENEFITS Alaska® Plus™ is our new lightweight coated paperboard, targeted to growing demand for cost-competitive, environmentally sustainable packaging. Alaska Plus uses less raw materials and generates less waste, decreasing the environmental impact throughout the product’s life cycle. It also reduces cost through the value chain, starting with lower material costs all the way to reduced disposal. Alaska Plus features great stiffness, excellent strength and durability, as well as industry-leading quality for reliability on high-speed packing lines.


OUR PEOPLE & COMMUNITIESSTRENGTHENING

Everything begins with our commitment to the safety of our employees and communities. With safety as our foundation, we improve the well-being and professional growth of our

global workforce and support our communities through substantial financial contributions and employee volunteer efforts aimed at addressing critical community needs.

13

PEOPLE

PROMOTING EDUCATION

ADDRESSING HUNGER

SUPPORTING HEALTH AND

WELLNESS

EMPLOYEE VOLUNTEERING

contributed by employees to our signature giving programs and to other company fundraisers

$3.2 million

SAFETYAt International Paper, safety is a core value. All 55,000 employees share the same objective: ensuring that they and everyone around them arrive home safely at the end of each day. Nothing we do is worth the risk of an injury to an employee, contractor, or visitor.

Our safety mantra is clear: follow all of the rules, all of the time. All employees are expected to ensure that work conditions are safe and that they and everyone around them behave safely.

93%

60%decreasein total LIFE events since 2010

of International Paper global locations operated without a serious injury in 2015

Our LIFE Program LIFE stands for Life-Changing Injury and Fatality Elimination. Our LIFE program is designed to eliminate serious, life-changing injuries and fatalities.

LIFE focuses on recognizing and managing the five major safety risks: machine safeguarding, motorized equipment, falls, harmful substances and environments, and driver safety.

“Every day we watch each other, help each other, and even encourage each other when necessary. Safety is a way of life. We are extremely pleased to celebrate our 25-year safety milestone of no lost-time incidents. We now turn our attention to hitting the 30-year mark.”

—Ken Wall, Plant ManagerEdinburg, Texas, 10 years at International Paper

LIFE Events

2010 20142011 2012 2013 2015

EMPLOYEES CONTRACTORS

5752 56

45

2823

5

8

International Paper Safety Leadership Commitment

As a safety leader:

I know nothing is more important than safe operations.

I care about my colleagues.

I have an active safety mindset at all times. I observe and address potentially unsafe conditions.

I hold myself and others accountable for behaving safely.

11

11

Tracking of contractor LIFE events began in 2012

PEOPLE International Paper Company Overview 2015 14

Our top priority is the safety of every employee, whether at home or at work.

ETHICS AND COMPLIANCEWe believe our path to success is as important as the results we achieve. We are committed to doing the right things in the right ways for the right reasons. Our Code of Conduct lays the groundwork in the right ways for how we treat our customers, investors, suppliers, communities, and each other in our operations around the world. We expect our suppliers to adhere to the same ethical standards.

Our CORE Values

We are committed to doing what is in the best interest of our shareholders, the company, our communities, the planet, and each other.

COMMITMENT

OWNERSHIP

RESPECT

EXCELLENCE

We are each individually accountable for following the spirit as well as the letter of the laws that apply to International Paper.

We treat others and the planet with respect. We deal fairly with suppliers, customers, and other business partners.

We pride ourselves on operational excellence, and we exercise integrity when managing the information and assets that are at the heart of our business.


RECRUITING FUTURE LEADERS Across the company we have a variety of programs designed to attract and retain promising talent

Aimed at engineers across all fields, REACH provides new college graduates with a path for technical, professional, and personal development at International Paper.

As part of International Paper’s Supply Chain University, the LAUNCH program provides a broader perspective on International Paper’s supply chain and is designed to complement what new hires learn in their day-to-day roles.

The CORE program provides new hires in Information Technology with a structured, supportive environment to learn and develop their skills.

Through FORUM, new hires serving in finance roles receive professional development and career guidance. Emphasis is placed on leadership, skills development, career guidance, building relationships, and community consciousness.

“The LAUNCH program provided me with networking opportunities, formal training, and on-the-job learning to help build the skills and confidence I needed to excel during my first years with the company.”

—Kenneth Johnson, Global Sourcing AssociateMansfield, La., 18 months at International Paper

REACHRecruit Engage Align College Hires

Learning and Understanding for New Colleagues and Hires

Collegiate On-boarding and Rotational Experience

LAUNCH

CORE

FORUM


DEVELOPING EMPLOYEESWe help our employees grow in a number of ways, depending on each employee’s capabilities and interests, and the needs of the company. Our programs include:

• Leadership Institute: Provides interactive learning and growth opportunities for employeeswith exceptional promise. Since 2005, more than 2,900 employees have participated.

• International Paper Leadership II: Started in 2014, this eight-month program is designed formore-experienced leaders and combines on-the-job learning with formal leadership training.

Diversity and InclusionFostering a diverse and inclusive workforce is essential to the future of our company. When teams with different viewpoints and backgrounds work toward a common vision, we are able to create better solutions.

International Paper’s Leadership Institute offers 15 programs that address all aspects of leading teams

Educating on inclusive behaviors

Mentoring BoardsIn addition to diversity education, training, and forums on related topics, we have mentoring boards for African Americans, Hispanics and Latinos, and women to provide support and guidance.

Our mentoring boards guiding principles:

• Build on International Paper’s goal to maintain work environments that encourage meaningfulprofessional relationships and personal connections.

• Provide participants with career guidance, professional development, and personal growth information.

Building and leveraging diverse teams

Engaging and developing all talent

“More than just offering tools, International Paper provides programs and growth opportunities based on the needs of each employee. This helps employees grow within the company and shape their own careers.”

—Edilaine Mendes Dias, Human Resource AnalystLuis Antonio, Brazil, 7 years at International Paper


EMPLOYEE ENGAGEMENT We value the skills, strengths, and perspectives of all. Our goal is to create an inclusive culture that attracts and retains the best team members and enables them to learn, grow, and contribute to sustainable results. We know that engaged employees drive safe operations and improved business results. And when our results continue to improve, we all benefit from working for a better, safer, more-competitive company.

“Diversity is a fundamental aspect of our personal and professional lives. By working in all four of our Italian box plants and collaborating with colleagues from all across the EMEA region, I learned to appreciate differences. Diversity is the best opportunity we have to grow and learn from others.”

—Laura Zanellotti, EHS Regional Leader, EMEA Packaging ItalyBellusco, Italy, 6 years at International Paper

“In our daily meetings, we bring employee engagement to an individual level. We take into account the whole crew and have discussions that focus on how they are doing. We are like a family.”

—David Settlemeyer, Pulp Mill Bleach Plant Maintenance Riegelwood, N.C., 40 years at International Paper

“It’s part of who I am as a person. I grew up in an atmosphere where it wasn’t called volunteering—it’s just what you did. Through International Paper, I’m able to satisfy the part of me that wants to volunteer in the Memphis community.”

—Landon Richards, Packaging & Application Development, IT and Volunteer Champions for International Paper MemphisMemphis, Tenn., 15 years at International Paper


SUPPORTING OUR COMMUNITIESMore than employers, we are responsible neighbors, environmental stewards, and members of the community. We mobilize our people, products, and resources to improve the communities where we live and work.

International Paper volunteers filled 3,500 of our corrugated boxes donated by the company with food to feed families in need in Memphis, Tenn.

Signature Giving Programs

• United Way: $2.3 million donated byemployees, plus $1.3 million contributedby International Paper to fund the agenciesthat provide health and human services inour communities.

• Coins 4 Kids®: The International PaperFoundation and employees and theirspouses contributed $890,000 to theWorld Food Program. Our efforts providedmeals to17,000 school children in areasnear Nairobi, Kenya.

• Employee Relief Fund: $120,000 givento employees who were victims ofnatural disasters, hardships, or personalemergencies.

• Employee Time: In addition to theiroutstanding financial generosity, employeesvolunteered more than 44,000 hours.

OUR PRODUCTS IN ACTION

Our focus areas for critical community needs include:

EDUCATIONHEALTH AND WELLNESS

HUNGER AND DISASTER RELIEF

In Brazil, our Mogi Guaçu paper mill supported The Secretariat for the Environment of the State of São Paulo’s Institute of Botany by donating 20 boxes of Chamex® paper.

Employees from our Espaly, France, box plant filled and distributed breakfast boxes donated by International Paper to 8,000 local families, raising 40,000 Euros for the local Trisomy21 Association.

After historic flooding in South Carolina in October, International Paper donated 2,000 corrugated boxes to Harvest Hope Food Bank, $750,000 to the American Red Cross, and many employee volunteer hours to help individuals and communities in need.

Foundations Grants

CompanyContributionsEmployee

Giving

Foundations Grants

CompanyCompanyContributions

23%

56%

21%

$15.5 million given in 2015

“We depend on financial contributions to provide comfort and hope to people in need. We couldn’t do our work without the generosity of donors such as International Paper.”

—Brad Kieserman, Vice President of Red Cross Disaster Operations and Logistics

Every International Paper job supports 3.25 jobs outside the industry*:

• 60 percent in supplier industries(chemicals, trucking, logging, etc.)

• 40 percent in local communities where paperindustry workers spend their wages and ingovernment (teachers, policemen, etc.)

*according to Economic Policy Institute


OUR ENVIRONMENTAL IMPACTNatural resources are crucial to the future of our company and our planet. We work continuously to reduce

our environmental footprint and promote the long-term sustainability of natural capital by ensuring the responsible management of natural resources and improving all aspects of our value chain.

IMPROVING

20

97 PERCENT OF PULPING CHEMICALS ARE RECOVERED AND RE-USED IN THE KRAFT PULPING PROCESS

33 PERCENT CERTIFIED FIBER

70 PERCENT BIOMASS RENEWABLE ENERGY

International Paper supports

tens of millions of acres of working forests around the world

PLANET

RESPONSIBLE FORESTRYInternational Paper takes an active approach to responsible forest stewardship. Our actions create value for landowners, communities, customers, and ecosystems. We make a positive impact on the forests in our supply chain by providing an economic incentive for landowners to manage their forests responsibly. Our commitment to sourcing fiber from well-managed forests promotes healthy and productive forests for future generations.

100%of the fiber used to make our products meet the standards of our Global Fiber Procurement Policy

33% is third-party certified, up 28 percent since 2010

Forest CertificationInternational Paper is dedicated to sustainable forestry. We work with landowners and suppliers to advance credible third-party certification in order to grow our fiber sourcing from certified forests.

External CollaborationWe collaborate with other organizations and private landowners to promote sustainable forest management, combat illegal logging and deforestation, and support healthy working forests.

Global Responsible Forest Stewardship

Commitment

“International Paper spends a lot of time helping tree farmers by teaching proven agricultural practices, providing technical support, and improving the productivity of our land. These steps have gone a long way in improving our economic conditions and in building long-term valuable relationships.”

—Mr. Chiriki Pydi Naidu, Tree FarmerVillage: Theeda, District: VishakhapatnamState: Andhra Pradesh, Country: India

21 million tons of certified fiber breakdown

59%SFI®

6% PEFC

35% FSC®

Promoting Responsible Forestry on a Global ScaleWe are actively focused on preventing illegally harvested wood products from entering the United States and global marketplaces and will not accept fiber from illegally logged forests or from forests where high conservation values are threatened by management activities. ln 2015, we expanded our World Wildlife Fund (WWF) Global Forest and Trade Network agreement from two to five countries, including the U.S., Brazil, France, India, and Russia.

Global Fiber Procurement PolicyWe use new and recovered fiber for our packaging and paper products. We have a commitment to ensure our products contain wood fiber from responsibly managed and harvested forests.

PLANETInternational Paper Company Overview 2015 22

SUPPORTING RESPONSIBLE FORESTRY PRACTICESDuring the past five years, International Paper has contributed $7.5 million to Forestland Stewards, a collaboration with the National Fish and Wildlife Foundation to support sustainable forestry management by:

WATERWater is a critical resource for International Paper, the communities in which we operate, our customers, and our employees. As such, we are committed to water stewardship efforts around the world.

• Promoting clean water and biodiversity

• Expanding economic opportunities

1 million jobs are providedby forests in the U.S. South

• Improving management of private and publicforests for environmental and economic needs

• Restoring populations of at-risk wildlife andplant species

200,000 acres of forest habitatwere restored and enhanced

• Improving water and air quality throughhealthier forests

In the past year, we launched a program to quantify current and potential water-related risks for our operations. We developed a tool to not only evaluate those risks, but also assist in identifying key stewardship opportunities in the areas surrounding our operations. This program is part of a broader effort and commitment to a global water stewardship strategy.

“Water is vital to our paper production and we remain focused on using all natural resources wisely. Many people at our Pensacola mill and throughout International Paper worked together to improve our water footprint. Being recognized by The American Forest & Paper Association for water stewardship affirms our efforts are making a difference.”

—Kyle Moore, EHS ManagerTiconderoga, N.Y., (previously at Pensacola, Fla.), 22 years at International Paper

Developing an evaluation approach for our global operations

Integrating this water-risk evaluation approach into managing water quantity and quality

Integrating our water stewardship program into regular operation auditing activities

Engaging with stakeholders in our communities through collective action efforts to address water-related issues within each watershed

Key components of our water stewardship program include:


2%11%87%

Improving Water Quality

• In our Saillat Sur Vienne, France mill, we completed an oxygen delignification project that improvedthe efficiency of the manufacturing process and improved effluent quality by 30 percent.

• We completed our waste water treatment plant projects at our Bogalusa, La. containboard mill,and improved operating practices and spill control. The projects have improved water qualityby 38 percent.

• At our coated paperboard mill in Augusta, Ga., we enhanced wastewater equipment to improveeffluent quality and recover more fiber for beneficial use.

967 million gallons of drinkingwater provided to communities each year

Efficient Use of Water

93% of thewater used to manufacture our products is returned to the environment

We re-use water up to 10 times before we return it

Most of the remaining

7% evaporates

WORKING WITH LOCAL COMMUNITIES ON WATER NEEDS International Paper works with communities and local authorities to provide drinking water.

• We have four mills that supply drinking waterto their local communities: Texarkana, Texas;Riegelwood, N.C.; Rajahmundry, India; andSvetogorsk, Russia.

• Our mill in Pine Hill, Ala., supplies river waterto the city, which then provides drinking waterback to the mill and the community.

• In Kwidzyn, Poland, our mill sponsors thedrinking water treatment plant in the city.

Surface Water (River and Lake Water) Public Utility Water Ground Water


EMISSIONS AND ENERGY USEOur strategy for reducing air emissions is linked to our management of purchased energy. Reducing the purchased energy used to create our products not only reduces our costs, it also decreases resulting greenhouse gas and air pollutant emissions. Through continuous improvements in operations, equipment, and fuel diversity, we have achieved significant company-wide reductions over the past decade, and will continue to evaluate and implement improvement projects across our global operations.

4.7 percent improvementin energy efficiency since 2010

Our 16 percent reduction in GHG emissionsis equal to taking 500,000 cars off the road

Greenhouse Gas Emissions MM Metric tons CO2e

We are more than halfway to our goal of decreasingabsolute GHG emissions by 20 percent by 2020

2010

SCOPE 1/DIRECT SCOPE 2 /INDIRECT

2011 2012 2013 2014 2015

18 percent reductionin PM, SO2 and NOx since 2010

“We are on track to reach our target for reducing GHG emissions and have consistently beat our target for reducing particulate matter, nitrogen oxides, and sulphur dioxide. The great work by our mill and technology teams is instrumental to our success.”

—Madeline Golson, Air and GHG Goal Team LeadMemphis, Tenn., 5 years with International Paper

Reducing Emissions in SavannahIn February 2015, we equipped the Savannah mill power boiler with new burners to replace coal with cleaner burning natural gas, which reduced GHG emissions by 33 percent. The additional environmental benefits of this project include:

32% reduction in criteria airemissions (PM, SOx and NOx)

Reduction of 3,500 tons of previously landfilled ash

10.6 10.2 10.1 9.48.7 8.9

5.45.1 4.8 4.9

4.8 4.6


48%Landfilled

8%Used for energy

17% Land applied

27% Used for other beneficial means

WASTE AND REDUCTIONOur goal is to reduce manufacturing waste to landfills by 30 percent by 2020, and ultimately divert 100 percent of our residual materials from landfills. With improvements in the efficiency of our operations, we continue to reduce overall waste generated, while also finding new ways for residuals to be used. Effective waste management is important to achieve our goals for both world-class manufacturing and sustainability goals.

2015 Solid Waste/Residuals

• Wood byproducts are collected and sent to other companies to makesolvents, soaps, lubricants, and paint thinners, and other products.

• At our Rajahmundry mill in India, we make cement bricks from flyash, a byproduct of our energy generation process. This results in lesswaste to landfills, as well as an inexpensive construction material andjobs for 125 people.

• Resin acid, another wood byproduct, is used in adhesives and printinginks, and is the major component in rosin, which musicians use toimprove the grip of bows on string instruments.

• Our Cedar River, Iowa, containerboard mill provides wastewaterresiduals to local farmers who use it as an inexpensive fertilizer.

Examples of how we use waste/residuals for beneficial means:

11% reductionin solid waste/residuals to landfills since 2010

Improving Fiber Efficiency in Prattville In 2015 we made progress on our Fiber Recovery and Management Project at our Prattville, Ala., containerboard mill. This project which focuses on capturing 90 percent of lost fiber to the process, is expected to:

• Recover approximately 20,000 tons of fiber each year

• Divert 4,400 tons of waste from landfills each year


SUPPLY CHAIN An efficient and responsible supply chain is key to obtaining quality raw materials and services that support our operations and ensure we meet our customers’ needs. It’s also essential to the sustainability of our business.

Our Supply Chain Strategy

In 2015, we furthered our strategy to ensure a sustainable global supply chain by:

• Improving the processes that drive transparency and accountability

• Setting legal, ethical, and business expectations and monitoring compliance

• Improving collaboration, innovation, and deliberate improvement with suppliers

• Enhancing our strategic sourcing process to incorporate an improved initial risk review of suppliers

• Conducting significant training with our sourcing and procurement colleagues

• Initiating training for our suppliers and creating additional resource material for distribution to our supply chain

• Continuing risk review and assessment of our global procurement processes and strategic suppliers

See the 2015 GRI Index for more information at internationalpaper.com.

PLAN DO CHECK AND ADJUST

Establish expectations Assess suppliers Collaborate for success Monitor and adjust


AWARDS AND RECOGNITION

IDG’S COMPUTERWORLD FOR 2015 “100 BEST PLACES TO WORK IN IT 2015”

International Paper’s IT organization was named among the “100 Best Places to work in IT” and recognized for how we challenge our IT staffs while providing great benefits and compensation.

AMERICAN CHAMBER OF COMMERCE

CORPORATE SOCIAL RESPONSIBILITY AWARD

INSTITUTIONAL INVESTOR’S “MOST HONORED COMPANY 2016”

International Paper achieved the Institutional Investor

“Most Honored Company 2016” recognition in the Paper & Packaging Sector. Carol Roberts topped the list for Best CFO in the buy side and sell side categories.

The ABTCP-Brazilian Technical Association of pulp and paper recognized International Paper Brazil in the category of “Graphic Paper Manufacture.” This accolade is the most important award in the pulp and paper industry to honor and recognize the most respected manufacturers and suppliers by their customers in the market.

The American Chamber of Commerce recognized International Paper Russia for its strong program. The award is in recognition of their continued dedication to being a strong corporate citizen and to making an extremely positive and sustainable contribution to the local communities in which it operates.

INTERNATIONAL PAPER INDIA PARIVARTAN AWARD 2015

The Parivartan Award recognizes large corporations leading the charge on Sustainability in India as well as emerging innovators developing cutting edge solutions. International Paper India was recognized for its Farm Forestry Initiative and was picked as the winner in the category of

“Corporate Branding Actions for Sustainability.”

ETHISPHERE INSTITUTE’S “WORLD’S MOST ETHICAL COMPANIES 2016”

Ethisphere Institute recognized International Paper as one of the

“World’s Most Ethical Companies®” for the 10th consecutive year.

FORTUNE’S “WORLD’S MOST ADMIRED COMPANIES” 2016

FORTUNE magazine named International Paper as one of the “World’s Most Admired Companies®” for the 13th time in the last 14 years.

2015 AF&PA BETTER PRACTICES, BETTER PLANET 2020 SUSTAINABILITY AWARD

The Industrial Packaging’s Pensacola, Fla., containerboard mill was recognized as a leader in sustainability by the American Forest & Paper Association’s (AF&PA) with the Sustainability Award for Water Stewardship.

2015 ABTCP “DESTAQUES DO SETOR”

Award in the category “Graphic Paper Manufacturer”


VISION 2020 GOALS We recognize the importance of aligning our business with the needs of the world around us and we’re committed to continuous improvement and transparency around our sustainability goals. We set 12 voluntary goals with a 2010 baseline aimed at improving our impact on people and the planet, and are happy to share our progress.

To find about more about our Vision 2020 Goals, go to: internationalpaper.com

SAFETY

2020 GOAL: Measure and report on our charitable support for education, literacy and health and human services in the communities where we operate

FIBER CERTIFICATION

2020 GOAL: Reduce air emissions (PM, SO2, NOx) by 10%*

PEOPLE

PLANET

4.7% improvement

3% increase11% reduction

Mapped water use and risk by location, identified priority mills, and initiated programs to reduce water use

17% reduction

16% reduction

0.51% fiber loss from reporting mills

ORIGINAL 2020 GOAL: Increase third-party certified fiber by 15%

NEW GOAL SET IN 2014: Increase third-party certified fiber by 35%

AIR EMISSIONS

ENERGY EFFICIENCY

RECYCLINGSOLID WASTE

WATER USE

WATER QUALITY

GHG EMISSIONS

FIBER EFFICIENCY

SUPPLY CHAIN

60% reduction in serious safety incidents

COMMUNITY INVOLVEMENT

2020 GOAL: Injury-free workplace

$15.5 million donated to charitable organizations

28% increase

18% reduction2020 GOAL: Improve efficiency in purchased energy use by 15%*

2020 GOAL: Reduce fiber lost in the manufacturing process to less than 0.75%

2020 GOAL: Reduce GHG emissions by 20% (direct and indirect)*

NEW GOAL SET IN 2014: Establish processes promoting transparency, managing risk by monitoring, and identifying opportunities to collaborate with suppliers

ORIGINAL 2020 GOAL: Establish baseline supply chain performance and implement plans to improve by 2013

2020 GOAL: Reduce mill wastewater discharges of oxygen-depleting substances to receiving streams by 15%

ORIGINAL 2020 GOAL: Map water usage through our manufacturing locations by 2013; develop site-specific plans by 2015 to reduce use in strategic watershed areas by 2020

*Results do not include data from International Paper India

Established baseline supply chain performance and implemented plans to improve

2020 GOAL: Reduce manufacturing waste to landfills by 30% and ultimately to zero

2020 GOAL: Increase recovery of old corrugated containers by exploring new sources and diverting usable fiber from landfills by 15%

©2016 International Paper Company. All rights reserved. Accent, Alaska, Chambril Avena, Chamex, Coins 4 Kids, Hammermill, Rey, Suspersoft, and TruPrint Ultra are registered trademarks of International Paper Company or its affiliates. Pol and Reflection are trademarks of International Paper Company or its affiliates. Forest Stewardship Council, FSC and the FSC logo are trademarks of Forest Stewardship Council. PEFC and the PEFC logo are registered trademarks of the PEFC Council. SFI marks are registered marks owned by Sustainable Forestry Initiative Inc.

“World’s Most Ethical Companies” and “Ethisphere” names and marks are registered trademarks of Ethisphere LLC. FORTUNE and The World’s Most Admired Companies are registered trademarks of Time Inc. and are used under license. From FORTUNE Magazine, March 1, 2015 ©2016 Time Inc. Used under license. FORTUNE and Time Inc. are not affiliated with, and do not endorse products or services of, Licensee. All other product and company names are trademarks or registered trademarks of their respective holders.

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Documents

MAKING PRODUCTSs1.q4cdn.com/.../doc_downloads/Company-Overview-2016.pdf29 Vision 2020 Goals MAKING PRODUCTS PEOPLE DEPENDON EVERY DAY North America Latin America India EMEA*/Russia