CEO MESSAGE

The story of Novolex is one of continuous growth, change and family.

Our business and the industries in which we participate are evolving, and so too must the nature of our environmental, social and governance (ESG) initiatives. We have been on this journey for 15 years and I am pleased to report our progress developing more sustainable products, expanding recycling, providing safe and inclusive workplaces, and more.

In 2022, we continued to press ahead with our ambitious commitment to reduce greenhouse gas emissions from operations 30% by 2030. In addition, we invested $10 million in our recycling facility that specializes in processing post-consumer recycled polyethylene films. Products made with post-consumer content use less virgin material and are just one of the ways we’re providing more sustainable packaging solutions.

We continued our efforts to develop new products that have one or more sustainability attributes— either due to the materials that were used or ways in which the product can be disposed of after use. Notably, our innovation teams introduced a record number of compostable products which, in addition to supporting zero waste strategies and our customers’ sustainability goals, can also fuel the growth of commercial composting facilities that accept these items.

Growth in sustainable packaging must be combined with sound policy so that products and infrastructure work together to reduce food and plastic waste going to landfills. I’m extremely proud that Novolex can bring our expertise both as a manufacturer and recycler to multiple industry forums that work to shape policy and support the future direction of our industry. We will continue to engage in legislative activities focused on Extended Producer Responsibility (EPR) and other important regulation. The past year was foundational for EPR in North America, and the years ahead will be key to shaping circular systems.

Our people—the Novolex family—are what make our business successful from colleagues at work on the production floor to those in management. In 2022, we introduced new initiatives to deliver on our commitment to provide safe workplaces as well as a work environment that promotes diversity, equity and inclusion. We also launched the Novolex Broad-based Employee Award Plan. Provided at no cost to employees, the plan provides eligible employees at every level of the company an opportunity to participate in the growth and success of Novolex.

Together with the 10,000 members of our Novolex family and our customers, suppliers, and other stakeholders, we will continue developing meaningful