Month: August 2023

Originally published in International Paper’s 2022 Sustainability Report

Circularity wraps around everything we do at International Paper, from the renewable resources we rely on for our raw materials, to the products we make that can be recycled over and over. Integrating renewable solutions into our everyday operations is critical to our strategy of building a better world.

Our progress toward Vision 2030 

We’re committed to advancing circularity across our value chain, using renewable and recycled fiber to create innovative products that are 100% reusable, recyclable or compostable — the key to a sustainable, low-carbon future.

Goal: Accelerate the transition to a lowcarbon economy through innovative fiber-based products

Target: Advance circular solutions throughout our value chain and create innovative products that are 100% reusable, recyclable or compostable 

We think about the entire life cycle of our products. A core component of our circularity strategy, our products enjoy multiple lives through repeated cycles of reuse, recovery and recycling, and byproducts of our manufacturing process are put to good use.

2022 Impact: 93.5% of International Paper pulp and packaging products are recyclable, reusable or compostable – including 93.5% recyclability of our NA products and 100% recyclability of our EMEA products

87% of projects support renewable solutions in the pulp innovation pipeline

48% of waste has been diverted from landfill for a beneficial use

What is circularity?

A welcome departure from the linear, take-makewaste production model in which a product is used once and discarded, the circular economy is an economic system based on recovering, recycling and reusing products and materials. The key principles of the system include:

Designing out waste and pollutionKeeping products and materials in useRegenerating natural systems

Our embrace of circularity is evident in our manufacturing processes, where we optimize resources by 1) designing out waste and pollution and 2) maximizing our use and reuse of all materials, resources, byproducts and residuals.

Circularity at IP 

To achieve our renewable solutions goal, we’ve implemented a four-pillared strategy to help guide how we think about our impact across our value chain and identify implementation tactics within each of our businesses that advance circular solutions. Those pillars are:

Sourcing sustainable raw materialsUsing circular manufacturing processesCollaborating on solutionsCreating innovative products

We’re committed to advancing circular solutions across our value chain, helping to lead the transition to a low-carbon, circular economy.

About International Paper

International Paper (NYSE: IP) is a global producer of planet-friendly packaging, pulp and other fiber-based products, and one of North America’s largest recyclers. Headquartered in Memphis, Tenn., we employ approximately 39,000 colleagues globally who are committed to creating what’s next. We serve customers worldwide, with manufacturing operations in North America, Latin America, North Africa and Europe. Net sales for 2022 were $21.2 billion. Additional information can be found by visiting InternationalPaper.com.

About International Paper – EMEA

In Europe, Middle East & Africa (EMEA), International Paper focuses on the production and marketing of fiber-based packaging and pulp, employing approximately 4,200 people. As a leading supplier of high-quality corrugated containers for a multitude of applications, we serve customers throughout the region from our network of two recycled containerboard mills and 23 box plants in France, Italy, Morocco, Portugal and Spain. Pulp production is centered in Gdansk, Poland. Other products available from International Paper in the region include Kraft linerboard and recycled containerboard, as well as pulp.

Read more

There is a growing emphasis on the environmental, social, and governance (ESG) practices of corporations around the world. To assess and compare companies’ sustainability performance, specialized organizations known as ESG raters and rankers have emerged. These organizations collect data from various sources and employ their own methodologies to evaluate companies based on ESG criteria.

The importance of ESG raters and rankers lies in their ability to provide third-party evaluations of companies’ management over ESG risks and opportunities that could inform investors’ and other stakeholders’ decision-making processes in business engagement.

ESG scores designated from raters and rankers aid companies in referencing external recognitions to showcase their effectiveness in ESG management, which helps alleviate stakeholder concerns over ESG issues, highlight sustainability practices, and offer a competitive advantage. Being well-informed about ESG raters and rankers is crucial for companies seeking to navigate the ESG landscape and pursue opportunities in developing and/or expanding their ESG programs and communications.

What Are ESG Raters and Rankers? 

ESG raters and rankers are specialized organizations that assess companies based on their ESG practices and assign them ESG scores or rankings. These organizations collect data from a variety of sources, including corporate disclosures, public records, and third-party data providers and media, to evaluate companies’ sustainability performance.

There are several prominent ESG raters and rankers in the market, such as MSCI, Sustainalytics, ISS ESG, and CDP (formerly Carbon Disclosure Project). Each rater/ranker employs their own methodology and criteria to evaluate companies, focusing on a wide array of ESG factors like carbon emissions, diversity and inclusion, labor practices, corporate governance, and supply chain sustainability.

What Is the Difference Between an ESG Rating and an ESG Ranking? 

ESG rating and ESG ranking are two approaches to assessing and comparing companies’ environmental, social, and governance performance. While they share similarities, there are differences between the two.

ESG rating

ESG ratings provide a comprehensive evaluation of a company’s ESG performance, allowing stakeholders to compare and benchmark companies within an industry or across sectors. Ratings often follow a standardized methodology and can be provided by specialized ESG rating agencies, financial services firms, or investment research institutions.

The output of an ESG rating is typically a score or grade (e.g., on a scale of 1 to 100 or a letter grade), reflecting the overall ESG performance of a company. Ratings may also include individual scores or assessments for different ESG categories.

ESG ranking

ESG rankings involve comparing companies’ ESG performance and positioning them in a hierarchical order based on their relative ESG scores or ratings, creating a snapshot of benchmarked companies’ ESG practices. Rankings are focused on providing a simplified view of how companies perform against one another rather than presenting detailed results of ESG scores or grades.

ESG rankings are often presented in the form of league tables or lists, where companies are ranked from the highest to the lowest in terms of their ESG performance. These rankings allow stakeholders to quickly identify leaders and laggards within an industry or sector.

Benefits of Engaging with ESG Raters and Rankers 

ESG ratings provide a platform for companies to communicate their sustainability efforts to stakeholders based on third-party assessment results, enhancing the credibility of their disclosures. 

ESG ratings also play a vital role in investment decision-making. A strong ESG rating can attract investors who prioritize sustainable businesses, leading to increased access to capital and potentially lower borrowing costs.

Companies that put work into earning a strong ESG rating can differentiate themselves from their peers by showcasing their superior sustainability performance. This can attract customers who prefer sustainable products/services and help attract and retain top talent.

Pitfalls To Watch Out For When Working With ESG Raters and Rankers 

While engaging with ESG raters and rankers has its advantages, companies should be aware of potential pitfalls.

Different raters and rankers adopt varying methodologies and assessment scopes, resulting in inconsistencies and discrepancies in ratings and making it challenging to benchmark companies within an industry from one single rating/ranking source. Companies need to understand the methodologies used by each rater/ranker and how they align with their own sustainability management and communication objectives.

Despite varying rating and raking schemes, companies should provide accurate and valid ESG information that is material to their businesses in order to be accurately assessed by raters and rankers.

Approaching ESG Reporting with an Eye to Rankings 

Robust ESG reporting—providing high-quality, decision-useful ESG information and data on an organization’s sustainability performance—can help improve third-party ESG ratings and ranking. To optimize ESG reporting, companies should consider the following approaches.

Data accuracy and relevance

Companies should work to ensure their ESG data is accurate, reliable, and aligned with recognized reporting frameworks such as the Global Reporting Initiative (GRI) or the Sustainability Accounting Standards Board (SASB). Relevant data points of company-specific material ESG topics should be prioritized to ensure the availability of meaningful information for ESG raters/rankers’ evaluations.

Stakeholder engagement

Engaging with stakeholders is crucial in identifying material ESG issues and demonstrating a commitment to addressing them. Regular communication and collaboration with stakeholders can provide valuable insights and help align a company’s ESG management and disclosure practices with stakeholder expectations.

Continuous improvement

ESG management and disclosure is an ongoing journey. Companies should consider setting meaningful ESG targets, tracking progress, and implementing initiatives to improve performance over time. Regularly reviewing and updating sustainability strategies demonstrates a commitment to continuous improvement.

The Emerging Role of AI in ESG Ratings 

AI is playing an increasingly important role in ESG rating processes. AI-powered algorithms can analyze vast amounts of structured and unstructured data, including financial reports, news articles, social media sentiment, and satellite imagery. These algorithms can identify patterns, assess risks, and provide real-time insights into a company’s ESG performance.

AI-driven ESG rating models aim to enhance the accuracy and efficiency of assessments. However, challenges related to data quality, biases in algorithms, and transparency in the rating process still need to be addressed. In preparation for the increasing adoption of AI-driven ESG ratings, it is recommended that companies ensure machine-readable ESG disclosures and data to support AI-based ESG assessments.

Working Toward Your Own ESG Rating 

Engaging with ESG raters and rankers allows companies to communicate their sustainability efforts, appeal to socially responsible investors, and differentiate themselves in the market. By approaching ESG reporting with accuracy, investing in stakeholder engagement, and maintaining a commitment to continuous improvement, companies can optimize their ratings and rankings and strengthen their sustainability practices.

Learn more about Antea Group’s ESG advisory services.

About Antea Group

Antea®Group is an environment, health, safety, and sustainability consulting firm. By combining strategic thinking with technical expertise, we do more than effectively solve client challenges; we deliver sustainable results for a better future. We work in partnership with and advise many of the world’s most sustainable companies to address ESG-business challenges in a way that fits their pace and unique objectives. Our consultants equip organizations to better understand threats, capture opportunities and find their position of strength. Lastly, we maintain a global perspective on ESG issues through not only our work with multinational clients, but also through our sister organizations in Europe, Asia, and Latin America and as a founding member of the Inogen Alliance. Learn more at us.anteagroup.com. 

Edison International’s support is both meaningful and impactful in the success of our veterans. We are grateful to receive a generous grant that allowed us to reach even more women veterans with our services and also have the support of SCE employees in providing our women veterans with vital support and skills needed to transition to the civilian sector. Through our partnership with SCE and our donors, we collectively impacted over 1,200 women veterans and children this year.”

JODIE M. GRENIER | Foundation For Women Warriors CEO and Marine Corps Veteran

As part of our mission to create a more inclusive company and society, in 2020 we established 10 commitments that focus on employees, suppliers, our broader charitable giving and the community. We began implementing these commitments in 2021 — starting by focusing on our Black colleagues and community. In 2022, we expanded the reach of our commitments. Below are a few noteworthy successes:

Talent Development Accelerator 

This 18-month program matches high-potential leaders with officerlevel Talent Champions. The role of a Talent Champion is to provide mentorship, advocacy and increased visibility to participants with the objective of enhancing their leadership capabilities and career development opportunities. We initially piloted this program in 2021, targeting high-potential Black managers. In 2022, we widened the program to a broader community of underrepresented talent — welcoming our second cohort, with plans for a third cohort in 2023.

Long-term success of the Talent Accelerator Program will be evaluated based on several measures, including feedback collected from participants and Talent Champions; alignment of this Program with Edison International’s overall DEI goals; stakeholder interest in expanding the Talent Accelerator Program to a broader participant base; and, ultimately, participant career progress through lateral and promotional movement.

Allyship Commitments 

The annual allyship charitable commitments are deeply invested in time, energy, funding and cooperation with community partners to bring about meaningful growth, opportunity and demonstrated values in the Edison International commitment to DEI. What began as a response to building and supporting the community in racial equity has continued in partnership to help cultivate and sustain organizational and community resiliency. We collaborate with Southern California Grantmakers, Inland Empire Community Foundation and Orange County Community Foundation to fund the Black Equity Collective, Black Equity Initiative — Inland Empire and the African American Alliance Fund — all organizations dedicated to promoting the advancement and empowerment of Black communities. In 2022, Edison International increased our contributions to these coalitions for a total of $130,000 combined. These contributions are intended to benefit many organizations as they partake in the capacity-building and infrastructure strengthening to be successful in uniting community efforts toward racial equity.

We have grown our allyship purview, extending to other communities as well. The newest allyship partner is Tomorrow’s Talent, which is helping attract local students from traditionally marginalized communities to the nationally recognized cybersecurity program in California at Cal State San Bernardino. In partnership with Making Hope Happen Foundation, Tomorrow’s Talent is also connecting students to high-demand jobs by local employers, including Edison International, to keep regional workforce talent local. In addition, we increased support for seven allyship partners that included the Foundation for Women Warriors, the only veteran-serving organization solely focused on female veterans.

Career Counseling 

Since the launch of our one-on-one career coaching program for nonrepresented employees3 in November 2020, 760 employees have completed more than 2,400 coaching sessions. In 2022, SCE also held four speed-coaching events for nearly 200 employees to facilitate their individual exploration for a meaningful career. A total of 65 career webinars and workshops were held with over 3,000 attendees. A special speed-coaching event and career workshops were held specifically for people managers as well — to support their teams’ development and help them have better career conversations. In addition to the career counseling DEI commitment, SCE also invests in executive coaching to help leaders realize their untapped personal and professional potential through individualized and team coaching. As a result of professional coaching, leaders set better goals, take more action, make better decisions and more fully use their strengths. Our results indicate that coaching increases the likelihood of landing a job for a competitive position. Additionally, individuals who participated in career coaching experienced increased internal mobility with greater participation in development assignments or permanent role changes in the organization.

Lineworker Scholarship Program

We are focused on building a workforce that reflects the diverse area we serve. In 2021, in partnership with International Brotherhood of Electrical Workers Local 47, we launched the Lineworker Scholarship Program. This four-year, $1 million scholarship program awards up to $25,000 per recipient to provide tuition, tools and support services to complete required training at the Los Angeles TradeTechnical College. Graduates qualify for an entry-level groundman/groundwoman position at SCE once they complete the Powerline Mechanic Certificate program, obtain a Class A driver’s license and complete SCE preemployment requirements.

The first cohort of scholars all obtained their Powerline Mechanic certificate, and five have since been hired at SCE. Several others are engaged in various stages of pre-employment requirements. We welcomed our second cohort into the program in 2022, continuing our focus on attracting Black candidates — an underrepresented group in the profession in comparison to the population in our service area. This cohort was comprised of 12 scholars, including our first female scholar.

In 2022, we also launched our SCE Lineworker Navigator Program, a one-on-one mentorship that pairs each new lineworker with an experienced employee. This six-month program was designed to support new lineworkers by creating a positive onboarding experience and reinforcing safety best practices. We also aim to increase long-term retention by helping new hires to build one of the most critical components to their success: teamwork.

Everybody wants to be happy and successful at work. I cultivate curiosity by helping others develop agency through greater self-awareness, career exploration and planning. It is the greatest gift to witness people take charge of their career.”

JOCELYN CHAN | Senior Advisor, Career Planning & Development, SCE

Finding Purpose from Opportunity 

Vincent Barney’s interest in the lineworker profession first started nearly 15 years ago when he saw a friend thriving in the profession — fulfilled by his career and providing for his family. His friend encouraged Vincent to pursue a career as a lineworker, but Vincent felt he couldn’t afford to get the education needed to make this profession a reality. Vincent had supported himself since age 17, and his education had been largely pursued online, while also maintaining a job at an airline.

Experiencing a power outage in his neighborhood further reignited his desire to work in this field, as he witnessed crews working around the clock to restore power. When Vincent heard about Edison International’s lineworker scholarship, he applied — and to his surprise, he was accepted into the program. Finally, there was a direct path to the career he wanted, and he was ready to apply himself to the coursework and testing, and attend school in person. Per Vincent, “You can’t learn how to climb a pole online!” After graduating from the program, he joined SCE as a full-time employee in 2022.

Vincent finds the job just as fulfilling as he imagined: “When you drive past a pole you helped repair or replace, it has your handprint on it, and there’s a satisfaction in that. What you did helped a hospital maintain power, or a nursing home or a school. They might never see your face or shake your hand, but you have that personal pat on the back.”

View the full Edison International 2022 Diversity, Equity & Inclusion Report.