International Paper: International Paper : 2024 Climate Report (ISSB)

2024 Climate Report Aligned with ISSB IFRS S2 guidelines Introduction At International Paper, we recognize the impact of climate change on people and our planet. We are committed to addressing the challenges of climate change to protect our communities, the environment and our business. As we transition to a low-carbon economy, we recognize the importance of embedding climate-related considerations throughout our value chain. International Paper (IP) supports the 2015 Paris Agreement and recognizes the importance of global policy action limiting global temperature increase to well below 2°C above pre-industrial levels, with a pursuit to limit it to 1.5°C. We support science-aligned and market-based policies to promote effective global and national climate policies. Our climate strategy will continue to evolve, informed by developments in science, technology and regulation. Similarly, our approach to emission reductions will be iterative as methodologies, frameworks and climate data improve over time. The latest science, underscored by the climate impacts experienced in 2024-the hottest year on record-makes it clear that urgent and decisive action is critical to mitigating the worst effects of climate change. This urgency demands that all of us, including businesses and governments, take bold steps to reduce our collective greenhouse gas emissions (GHG) emissions. As a leading producer of sustainable packaging solutions, we recognize commercial opportunities within the expanding low-carbon circular bioeconomy. Our forest-based products contribute to climate solutions by serving as sustainable alternatives to high-carbon materials, sequestering carbon from the atmosphere through forest growth and retaining that carbon throughout their lifecycle. Corrugated boxes play a critical role in this system, achieving exceptionally high recycling rates, which further reduces waste and enhances the circularity of our products. In 2022, we aligned our annual sustainability reporting with the recommendations of the Task Force on Climate-Related Financial Disclosure (TCFD), which developed a structured framework to help companies disclose climate-related risks and opportunities in governance, strategy, risk management, and metrics and targets. With the establishment of the International Sustainability Standards Board (ISSB), which took over the TCFD's mandate in 2023, we are continuing to enhance the transparency of our climate-related financial disclosures under the ISSB International Financial Reporting Standards (IFRS) S2 Climate Standard. This standard provides a consistent global benchmark for companies reporting on climate-related risks, resilience, and emissions reduction strategies. This 2024 ISSB S2 Report builds on our commitment to responsible climate action. It provides detailed information, as of December 31, 2024, on our climate-related risks and opportunities across IP operations and our approach to identifying and managing these risks. This report is accompanied by our annual Sustainability Report and CDP (formerly known as Carbon Disclosure Project) disclosure, which offer additional information on our environmental performance and progress. Governance Governance processes, controls and procedures to monitor, manage and oversee climate-related risks and opportunities. Board's oversight of climate-related risks and opportunities In 2024, our company underwent significant transitions, including the announcement of a new Chief Executive Officer (CEO) and a comprehensive organizational restructuring. These changes aimed to enhance operational efficiency and strategic alignment across our business segments. Key elements of this restructuring included: • Rearranging organizational structures to better align with our strategic priorities. • Evaluating strategic options for our Global Cellulose Fibers business segment to optimize its market positioning and operational effectiveness. • Consolidating enterprise resources under our packaging business to drive synergies and improve resource utilization. As part of this transformation, we are in process of adjusting our governance structure. For the first three quarters of 2024, governance adhered to the framework outlined in the rest of the governance section. We are actively developing a revised governance framework to better integrate sustainability and climate-related risks into decision-making at all levels of the organization. We are committed to providing a comprehensive update on these structures in our next disclosure as they are finalized and operationalized. IP has an integrated Board of Directors (Board) and executive-level governance structure that oversees sustainability and Environmental, Social and Governance (ESG) topics, including climate change. The Board has primary oversight of IP's enterprise risk management (ERM) program, which includes climate-related risks and opportunities. The Board reviews long-term resiliency and climate-related risks and opportunities when guiding corporate strategy. Our Board also conducts periodic reviews of components of the sustainability strategy and performance and reviews material key sustainability-related developments and issues. They receive updates on sustainability issues at its regular meetings and briefings on identified risks and opportunities from our Chief Sustainability Officer (CSO) and additional members of management. Our standing committees share responsibility on sustainability as described below: Audit and Finance Committee (A&F Committee) • Reviews processes and controls for external reporting of sustainability and social impact data and metrics. • Reviews related disclosures in Annual Report on Form 10-K and other sustainability reports. The A&F Committee assists the Board in its oversight of IP's financial reporting process as well as the implementation and maintenance of effective controls to prevent, deter and detect fraud by management. The A&F Committee coordinates the risk oversight role exercised by the Board's standing committees and management, and receives updates on ERM processes twice per year, which includes consideration of climate-related risks. Additionally, our A&F Committee reviews our internal audit reports to ensure readiness for climate-related developments in ESG reporting. In 2024, the A&F Committee met six times and had a 100% attendance rate. Our Chief Financial Officer (CFO) updates the A&F Committee twice annually on key enterprise risks. Public Policy and Environment Committee (PPE Committee) • Reviews sustainability and social impact policies, plans and performance to ensure commitments to stewardship. • Stays current on emerging climate-related public policy issues and risks. In 2024, the PPE committee met four times and had a 100% attendance rate. Our CSO, in collaboration with the corporate controller and general counsel, delivers a sustainability reporting update to the committee twice a year. Updates include progress on our science-based target and opportunities to advance progress. Our Board believes diversity of backgrounds, tenures and skills enhances the quality of its deliberations and decisions, including those pertaining to climate-related issues. Dr. Kathryn D. Sullivan, Board member and chair of the PPE Committee, is a climate scientist and former Administrator of the National Oceanic and Atmospheric Administration, who brings experience in natural resource conservation. Anders Gustafsson, Board member and chair of the A&F Committee, has knowledge of environmental and sustainability issues, combined with experience at a global leader in the Automatic Identification and Data Capture industry, which consists of mobile computing, data capture, radio frequency identification devices, barcode printing, and other workflow automation products and services. The skills and experiences of our Board members provide valuable perspectives on climate-related issues relevant to our business. Management's role in assessing and managing climate-related risks and opportunities Ownership and governance of sustainability matters is embedded in the organization from the top down. Our CEO and Executive Leadership Team (ELT) are responsible for corporate strategy and leadership including incorporation of our sustainability goals and standards into our daily operations and long-term business strategy. Our ELT reports directly to the CEO and is comprised of senior vice presidents who oversee critical functions and business units within the company. The ELT evaluates sustainability issues based on input from function-specific councils and receives several sustainability updates throughout the year from our CSO. The CSO, who reports to the Chief People and Strategy Officer, leads IP's sustainability team and is responsible for shaping our sustainability strategy. This includes driving progress toward our Science Based Targets initiative (SBTi)-approved GHG reduction goal. The sustainability team, with support from technology, is responsible for aggregating, monitoring and reporting environmental metrics as climate issues evolve. Our sustainability team performs ongoing research and risk identification which helps our business teams implement appropriate tactics to achieve our goals. We leverage expertise and best practice guidance from trusted consultants and forest sector groups including the National Council on Air and Stream Improvement (NCASI) and the World Business Council for Sustainable Development (WBCSD). At the facility level, mill or plant management is responsible for managing day-to-day identification, understanding and mitigation of risks. Our Disclosure Committee assists with evaluating materiality, determining disclosure obligations, reviewing disclosures required under Security and Exchange Commission rules and helping to ensure IP's disclosure controls and procedures are properly implemented. The Disclosure Committee is comprised of subject matter experts from legal