SUSTAINABILITY VISION, PILLARS AND METRICS

Novolex Sustainability Pillars

The Novolex vision for sustainability is to innovate more sustainable choices for our customers, operate responsibly and invest in our people and communities. We bring this vision to life every day through our ongoing focus on efficiency in our operations, and external engagement with customers, suppliers, communities and other industry partners.

As we continue the Novolex sustainability journey, we look for additional metrics with which to measure our performance, strive to improve our data collection methods and, where appropriate, develop targets to focus initiatives across our business. Since the publication of our first sustainability report in 2018, we have established various key performance indicators (KPIs) to monitor our progress and enhance our success in all aspects of sustainability. We have aligned our reported metrics to each sustainability pillar, as depicted in the visual to the right.

Taking on a leadership role within the packaging industry by providing customers and their consumers with sustainable product solutions

Strive for low-impact manufacturing and integration of sustainability into operations excellence

Support our employees, their families and communities, and the consumers who use our products

METRICS, KPI s AND TARGETS

◆ Percentage of raw materials from renewable, P CR or bio-based sources

◆ Percentage of PCR in procured resin and fiber

◆ Percentage of certified fiber

◆ Percentage of revenue from products that are reusable, compostable or recyclable

◆ Double PCR Recycling in North Vernon b y 2024

◆ Reduce GHG emissions from energy use i n manufacturing by 30% per ton of p roduction by 2030

◆ S ignificant air emissions

◆ Waste management and footprint

◆ Safety: Total Recordable Incident Rate

◆ Percentage of females and minorities in le adership positions

◆ E mployee demographics across operations

New Metrics

For the second consecutive year we are publishing data on the end-of-life profile of products in accordance with a notable circular economy indicator, SASB: 410a.2, which measures the percentage of revenue generated from products that can be recycled, composted or reused. In addition, this year we improved measurement of waste generated in operations in accordance with GRI 305-3 across our global manufacturing footprint and now include that KPI under the “Operations” sustainability pillar. We’ve also made progress in expanding our “People” metrics, working extensively across different corporate functions to enhance disclosures on safety as well as diversity, equity and inclusion (DEI).